Reckoner

FY09

May 18, 2009

Dr. Reddy’s Laboratories Ltd.
www.drreddys.com
FY09

Business Update
Overall revenues at Rs. 69.4 billion ($1.4 billion) in FY09 as against Rs. 50 billion ($983 million) in FY08, representing
a growth of 39%.

Operating income is at Rs. 11.2 billion ($220 million) in FY09 as against Rs. 5.4 billion ($107 million) in FY08 after
adjusting for non cash impairment of intangibles and goodwill.

EBITDA at Rs. 14.5 billion ($285 mn) in FY09 as against Rs. 9.7 billion ($190 mn) in FY08, representing a growth of 50%,
higher than sales growth of 39%.

Key growth drivers:

Successful launch of the authorized generic version of GlaxoSmithKline’s Imitrex® (generic version:
sumatriptan succinate), in late November 2008.
Excluding revenues from Sumatriptan, YoY growth is at 24%, driven by the key markets of North America and Russia.
During the year, the company launched 116 new generic products, filed 110 new generic product registrations and
filed 55 DMFs globally.
Global Generics
Revenues from Global Generics business at Rs. 49.8 billion ($979 million) in FY09 as against Rs. 33.0 billion ($649 million) in
FY08. YoY growth of 51% driven by Sumatriptan and key markets of North America and Russia.
Revenues from North America at Rs. 19.8 billion ($390 million) in FY09 as against Rs. 8.0 billion ($158 million) in FY08.
Excluding revenues from Sumatriptan, the growth of 58% in North America was driven by high volume growth across
existing top products and acquisition of Shreveport facility.
Revenue from Shreveport facility at Rs. 1.7 billion ($33 million) in FY09.
Revenues from Europe at Rs. 11.9 billion ($234 mn) in FY09 as against Rs. 10.2 billion ($201 mn) in FY08, representing a growth of 16%.
Revenues from betapharm increase by 20% to Rs. 9.9 billion ($194 mn) in FY09 from Rs. 8.2 billion ($161 mn) in FY08.
This increase was on account of volume growth in existing products and one-off seasonal vaccine sales in Q2 FY09
Revenues from Rest of Europe remain flat at Rs. 1.9 billion ($39 million) in FY09.
During the year, the company launched 25 new products and filed 11 dossiers across Europe.
Revenues from Russia & Other CIS markets at Rs. 7.6 billion ($150 million) in FY09 as against Rs. 5.5 billion ($109 million) in
FY08, representing a growth of 38%.
Revenues in Russia increase to Rs. 5.8 billion ($114 million) in FY09 as against Rs. 4.1 billion ($80 million) in FY08. YoY
growth of 43% driven by key brands of Omez, Nise, Ketorol, Cetrine and Bion.
Revenues in Other CIS markets increase to Rs. 1.8 billion ($36 million) in FY09 as against Rs. 1.5 billion ($29 million) in
FY08. YoY growth of 25%.
Revenues in India increase to Rs. 8.5 billion ($167 million) in FY09 from Rs. 8.1 billion ($158 million), representing a growth of 5%.
36 new products launched during the year.

Pharmaceutical Services & Active Ingredients (PSAI)

Revenues from this segment increase to Rs. 18.8 billion ($369 million) in FY09 as against Rs. 16.6 billion ($327 million) in FY08.
YoY growth of 13% driven by growth in North America and RoW markets as well as benefit by depreciation of rupee against the dollar.
Revenue from the business & facility acquired from Dow Pharma at Rs. 1.0 billion ($20 million)in FY09.
During the year, 55 DMFs were filed globally (21 in US, 19 in Europe, 5 in Canada and 10 in RoW). Cumulative DMFs filed till date at 351.

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Financial Updates
All figures in millions, except EPS
All dollar figures based on convenience translation rate of 1USD = Rs 50.87

Dr. Reddy’s Laboratories Ltd. and Subsidiaries

Unaudited Condensed Consolitated Interim Income Statement
FY09 FY08
Particulars ($) (Rs.) % ($) (Rs.) % Growth%
Revenue 1,365 69,441 100 983 50,006 100 39
Cost of Revenues 648 32,941 47 484 24,598 49 34
Gross Profit 718 36,500 53 499 25,408 51 44
Operating Expenses
Selling, general & administrative expenses(a) 413 21,020 30 331 16,835 34 25
Reserach and development expenses, net 79 4,037 6 69 3,533 7 14
Write down of intangible assets 62 3,167 5 59 3,011 6 -
Write down of goodwill 213 10,856 16 2 90 0 -
Other (income)/expenses, net 5 253 0 (8) (402) (1) -
Total Operating Expenses 773 39,333 57 453 23,067 46 71
Results from operating activities (56) (2,833) (4) 46 2,341 5 -
Finance income(b) (9) (482) (1) (31) (1,601) (3) (70)
Finance expenses(c) 33 1,668 2 21 1,080 2 54
Finance expenses, net 23 1,186 2 (10) (521) (1) -
Share of profit/ (loss) of equity accounted 0 24 0 0 2 0 1,100
investees
Profit before income tax (79) (3,995) (6) 56 2,864 6 -
Income tax expense (23) (1,173) (2) 19 972 2 -
Profit for the period (102) (5,168) (7) 75 3,836 8 -
Attributable to:
Equity holders of the company (102) (5,168) (7) 76 3,846 8 -
Minority interest 0 0 0 (0) (10) (0) -
Profit for the period (102) (5,168) (7) 75 3,836 8 -

Weighted average no. of shares o/s 169 169

Diluted EPS (0.6) (30.7) 0.4 22.8
Exchange rate 50.87 50.87

(a) Includes amortization charges of Rs. 1,503 million in FY09 and Rs. 1,588 million in FY08.
(b) Includes forex gain of Rs. 739 million in FY08.
(c) Includes forex loss of Rs. 634 million in FY09.

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Financial Updates
Key Balance Sheet Items (in millions)
As on 31st Mar 09 As on 31st Mar 08
($) (Rs.) ($) (Rs.)

Cash and cash equivalents 110 5,603 146 7,421

Investments (current & non-current) 10 530 93 4,753
Trade and other receivables 282 14,368 134 6,823
Inventories 260 13,226 219 11,133
Property, plant and equipment 410 20,881 330 16,765
Loans and borrowings (current & non-current) 387 19,701 380 19,352
Trade accounts payable 118 5,987 107 5,427
Total Equity 827 42,045 931 47,350

Income Statement Highlights

Gross profit increase by 44% to Rs. 36.5 billion ($718 million) in FY09 as against Rs. 25.4 billion ($499 million) in FY08. Gross
profit margins on total revenues at 53% as against 51% in FY08, largely driven by attractive margins on sumatriptan.
Selling, General & Administration (SG&A) expenses increase to Rs. 21.0 billion ($413 million) in FY09 from Rs. 16.8 billion
($331 million) in FY08.
SG&A expenses as a % to sales is at 30% in FY09 as against 34% in FY08.
The absolute increase is in line with a higher sales growth and coupled with a higher impact of currency on expenses
outside India; however, it was offset by control measures to optimize spending on expenses such as travel, General &
Administration expenses and others.
Other operating expenses of Rs. 253 million in FY09 includes Rs. 921 million as damages on account of the German court up-
holding the validity of the olanzapine patent.
R&D investments at 6% of total revenues in FY09 as against 7% in FY08. YoY growth of 14%.
Finance costs (net) are at Rs. 1.2 billion in FY09 as against Finance income (net) at Rs. 521 million in FY08. The increase is
mainly on account of :
Net forex loss of Rs. 634 million in FY09 as against net forex gain of Rs. 739 million in FY08.
Net interest expense of Rs. 687 million in FY09 as against net interest expense of Rs. 329 million in FY08.
PAT adjusted for one time exceptions is at Rs. 8.5 billion ($167 million) as against Rs. 4.5 billion ($88 million) in FY08.
Adjusted EPS of Rs. 50.3 ($1.0) in FY09 as against adjusted EPS of Rs. 26.6 ($0.5), representing a growth of 89%.
Cash profit in FY09 at Rs. 11.7 billion ($229 million) as against Rs. 7.9 billion ($154 million) in FY08, representing a growth of 48%.
Capital expenditure for FY09 is at Rs. 4.4 billion ($87 million).

Revenue Mix by Geography (in millions)

FY09 FY09 as a FY08 FY08 as a Growth

$ INR % $ INR % %

North America 472 24,012 35 224 11,374 23 111

Europe 355 18,047 26 312 15,863 32 14
India 225 11,460 17 212 10,772 22 6
Russia & other CIS 150 7,623 11 109 5,526 11 38
Others 163 8,299 12 127 6,470 13 28
TOTAL 1,365 69,441 100 9
83 50,006 100 39

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Financial Update
Revenue Mix by Segment (in millions)

FY09 FY09 as a FY08 FY08 as a Growth

$ INR % $ INR % %

Global Generics 979 49,790 72 649 33,023 66 51

North America 390 19,843 40 158 8,024 24 147
Europe 234 11,886 24 201 10,216 31 16
India 167 8,478 17 158 8,060 24 05
Russia & other CIS 150 7,623 15 109 5,526 17 38
Others 39 1,959 04 24 1,197 04 64
PSAI (Pharmaceutical Services & Active Ingredients) 369 18,758 27 327 16,622 33 13
North America 76 3,875 21 66 3,350 20 16
Europe 121 6,160 33 111 5,647 34 09
India 47 2,383 13 46 2,352 14 01
Others 125 6,340 34 104 5,273 32 20
Proprietary Products 06 294 00 01 39 00 651
Others 12 599 01 06 321 01 86
Total 1,365 69,441 100 983 50,006 100 39

Rs. Crs
Consolidated Revenue
RoW Rs. 6,944 Crs. g=Growth
196 g --> 39%
g=64% Rs. Crs
Russia & CIS Global Generics
762 g=38% Rs. 4,979 Crs.
g=20% Row=634
India g-->51%
848 g=5%
Others g=1% India=238
Europe Rs. 89 Crs.
1,189 g=16%
g=9% Europe=616
PSAI
Rs. 1,876 Crs.
North America g-->13%
1,984 g=147% g=16% North America=388
Global Generics PSAI

Key P&L Items for FY09

Revenue Gross Margins

Rs. 6,944 Crs Rs. 3,650 Crs

YoY growth --> 39% 53% to sales
YoY growth--> 44%

EBITDA Cash Profit*

Rs. 1,451 Crs Rs. 1,166 Crs

21% to sales 17% to sales
YoY growth --> 50% YoY growth --> 26%
*Cash Profit = Net Profit + Non cash expenses
(depreciation + amortization + impairment)

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Q4 FY09 Highlights
Overall revenues at Rs. 19.8 billion ($390 million) in Q4 FY09 as against Rs. 13.2 billion ($261 million) in Q4 FY08,
representing a growth of 50%.
The growth was majorly driven by the successful launch of the authorized generic version of GlaxoSmithKline’s
Imitrex® (generic version: sumatriptan succinate), in late November 2008.
Excluding revenues from Sumatriptan, the YoY growth is at 23%.
Operating income at Rs. 4.6 billion ($90 million) in Q4 FY09 as against Rs. 1.4 billion ($28 million) in Q4 FY08 after adjusting
for non-cash impairment.
EBITDA at Rs. 5.5 billion ($108 million) in Q4 FY09 as against Rs. 2.6 billion ($51 million) in Q4 FY08, representing a growth
of 113%.
Revenues from Global Generics business at Rs. 14.7 billion ($288 million) in Q4 FY09 as against Rs. 8.7 billion ($172 million)
in Q4 FY08. YoY growth of 68% driven by sumatriptan and key markets of North America and Russia.
Excluding revenues from Sumatriptan, the growth of 44% in North America was driven by new product launches
like Divalproex, Levetiracetam and acquisition of the Shreveport facility.
Revenue growth of 88% in Russia driven by key brands of Omez, Nise, Ketorol and Cetrine.
Revenues from Pharmaceutical Services & Active Ingredients (PSAI) increase by 11% to Rs. 4.9 billion ($96 million) in Q4 FY09
as against Rs. 4.4 billion ($86 million) in Q4 FY08.

Revenue Mix by Segment (in millions)

Q4FY09 Q4 FY09 as a Q4 FY08 Q4 FY08 as a Growth

$ INR % $ INR % %

Global Generics 288 14,670 73 172 8,744 66 68

North America 142 7,205 49 48 2,466 28 192
Europe 61 3,096 21 57 2,905 33 07
India 41 2,072 14 39 1,993 23 04
Russia & other CIS 36 1,834 13 21 1,055 12 74
Others 09 462 03 06 325 04 42
PSAI (Pharmaceutical Services & Active Ingredients) 96 4,859 24 86 4,373 33 11
North America 16 833 17 09 441 10 89
Europe 42 2,153 44 34 1,730 40 24
India 11 572 12 11 548 13 04
Others 26 1,302 27 33 1,654 38 (21)
Proprietary Products 03 177 01 00 04 00 4,356
Others 03 145 01 03 132 01 10
Total 390 19,851 100 261 13,253 100 50

Revenue Mix by Geography (in millions)

Q4 FY09 Q4 FY09 as a Q4 FY08 Q4 FY08 as a Growth

$ INR % $ INR % %

North America 161 8,215 41 57 2,908 22 183

Europe 103 5,249 26 91 4,636 35 13
India 55 2,789 14 53 2,675 20 4
Russia & other CIS 36 1,834 9 21 1,055 8 74
Others 35 1,763 9 39 1,979 15 (11)
TOTAL 390 19,851 100 261 13,253 100 50

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Driving Sustainable Long-term growth

FY09 Guidance Achievement
Revenue Guidance --> 25% Growth Gross Margin Guidance --> ~50% Levels Gross Margin
(% to Sales)
Revenue (Rs. Crs) 54.3%
55.8%
g=39% FY09 -------------------------------------------- 52.6%

49.8% 49.3%
5,001 6,944

Q1FY09 Q2FY09 Q3FY09 Q4FY09

FY08 FY09

R&D Margin Guidance --> 7% of Sales Guidance --> Improved Profitability

7.0% R&D Margin (% to Sales)
PAT* (% to Sales)

FY09 -------------------------------------------- 5.8% 12.3%

5.6% 5.7% 9.0%

5.1%
Q1FY09 Q2FY09 Q3FY09 Q4FY09 FY08 FY09

* Adjusted for one time exceptions

Consistent Growth Momentum (For Last Eight Quarters)

Rs. Crs Rs. Crs
Revenue Adjusted PAT*
g--50%
g--49%
g--25% g--30%

1,198 1,245 1,232 1,325 1,504 1,615 1,840 1,985

135 80 70 100 132 146 302 328
Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09

* Adjusted for Forex, one time write downs and tax benefits

Global Launches & Filings in FY09

ANDAs ANDS Dossiers Dossiers DMFs New North

Filings Europe India RoW Specialty
= =
110 20 + 03 + (Europe) + (RoW) + 55 Launches America + 25 + 36 + 39 + 02
118 16
11 76

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Quick Facts - FY09

Global Generics - Key Markets
North America
Revenues at Rs 19.8 bn ($390 mn) in FY09
Successful launch of the AG version of GSK’s
Imitrex®
Current market share ~ 50%
Revenues excluding sumatriptan grew by 58% in
1,984 Rs. Crs.
rupee terms and 24% in dollar terms
16 new product launched. Received 23 ANDA
147% 719 Sumatriptan approvals.
Total No of ANDAs filed till date: 144
Filed 20 ANDAs ; 69 pending approval (30 are
168 Acquisition Para IVs and 18 are FTFs) addressing innovator
sales of $46 bn
Top Products Settled Desloratadine --> IMS $50 mn
802 1,097
. Sumatriptan AG Base Favorable summary judgment ruling in the
. Fexofenadine Business Omeprazole Mg OTC litigation
. Glimepiride Fondaparinux ANDA filed under ‘GIVE’
. Oxaprozin FY08 FY09
. Ondansetron
. Meprobamate
. Divalproex
. Simvastatin
. Finasteride
. Ciprofloxacin
. Tizanadine

India
Growth flat --> change in supply chain model to a
replenishment based model
Sub-industry growth because of lack of adequate new
product launches and change in supply chain model 5% Rs. Crs.
Launched 36 new products
New product launches in the last 36 months contributed Top Brands
14% of total revenues Omez .
Action Plan: 806 848 Nise .
To capitalize on our brand equity strength with Stamlo .
GPs/ CPs Stamlo Beta .
FY08 FY09
To address the issue of penetration in potential Atocor .
areas like rural and northern regions. Razo .
To address portfolio width gap. Omez-DSR .
Reditux .
Mintop .
Enam .

Dr. Reddy’s Laboratories Ltd.

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FY09

Quick Facts - FY09

Global Generics - Key Markets
Germany

High volume growth in existing products offset by price

declines
betapharm volume growth --> 16.5%
Market volume growth --> 3.2%
AOK Tender : Among Top 3 in contracts
8 products/33 contracts (~ 18% of AOK volumes)
Filed 8 dossiers and launched 10 new product
Rs. Crs.
Olanzapine damages --> Rs. 92 crs. 20%
Restructuring the organization to meet the requiremets of the
new market model
German business model: High volume, low margins
Strategy to focus on absolute profitability 819 985 Top Brands
Simvastatin .
Alendron .
FY08 FY09
Oxycodon .
Omeprazol .
Tramadol .
Ramipril & HCT .
Venlafaxin .
Ibuprofen .
Ramipril .
Gabapentin .

Russia
Revenues in Russia increases to Rs 5.8 bn
Rouble growth of 35% led by key brands of Omez,
Nise, Ketorol and Bion
Omez, Nise and Ketorol > $25million each
Rs. Crs.
Fastest growing international branded generic com-
43% pany by volumes (Source: Pharmexpert MAT Mar 09)
Dr. Reddy’s volume growth --> 11.2%
Industry’s volume growth --> (0.2%)
Top 4 brands rank #1 in respective segments
Top Brands 9 brands in the Top 3 ranks
406 580
OTC and hospital segment contribute 27% to total
. Omez
revenues
. Ciprolet FY08 FY09 Top-4 distributors > 80% of our revenues
. Nise
Revenues from Russia & CIS region crossed $150 mn
. Enam
. Ketorol
. Exifine
. Cetrine

Dr. Reddy’s Laboratories Ltd.

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FY09

Key Company Updates

Dr. Reddy’s acquired Dowpharma’s Small Molecules business associ-
ated with Dow’s Mirfield and Cambridge, UK Sites

The site at Mirfield is a manufacturing facility whereas the one at Cambridge

is an R&D facility. This acquisition brings strengths in industrial synthesis of
complex prostaglandins and carbohydrate chemistry. The proprietary chiral
and biocatalysis technology at the Cambridge site and the scale up capabil-
ity in the Mirfield site adds significant value to Dr. Reddy’s existing R&D and
commercial infrastructure and positions it as a leading provider of Custom
Pharmaceutical Services globally.

We acquired BASF’s Pharmaceutical Contract Manufacturing Business and related facility at Shreveport, Louisiana, USA.

This business involved the contract manufacturing of generic prescription and over-the-counter products for branded and
generic companies in the US. The facility is designed to manufacture solid, semi-solid and liquid dosage forms. It also provides
Dr. Reddy’s with an additional platform to further expand its portfolio of prescription generics, OTC capabilities and product
portfolio and the ability to supply generic products to US government agencies.
Dr. Reddy’s established its Generics business in Italy through acquisition of Jet Generici Srl.

Dr. Reddy’s acquired Jet Generici Srl, a company engaged in the sale of generic finished dosages in Italy. The acquisition provided
access to an essential product portfolio, a pipeline of registration applications, a sales and marketing organization and helped
Dr. Reddy’s establish its business in the third largest pharmaceutical market in Europe.
Dr Reddy’s launched ‘Atocor-R’ – combination of Atorvastatin and
Ramipril in India

It was the first such combination to be approved by DCGI and had completed a
multi-centre clinical trial data on Indian patients.

PromiusTM Pharma – Dr. Reddy’s US Specialty business was launched

Located in Bridgewater, NJ, PromiusTM Pharma will initially focus on the branded dermatology market, and is based on a platform of
strategic licensing initiatives and internal product development activities undertaken over the last several years. Since its launch Promius
has introduced two products in the market: EPICERAM® skin barrier emulsion and Scytera™ (coal tar) Foam 2%
We entered the respiratory inhalers market in India with launch of ‘CombihaleTM’
& ‘RedihalerTM’

‘Combihale™’ is a combination of a steroid and a long acting bronchodilator. It is used in

the treatment of asthma. It is available along with ‘RedihalerTM’, a dry powder inhalation
device that was designed in-house.

Dr. Reddy’s launched the authorized generic version of Imitrex® Tablets

We launched the authorized generic version of GlaxoSmith-Kline’s Imitrex® (sumatriptan succinate)

tablets in 25mg, 50mg, and 100mg strengths in the United States thus becoming the first company to
do so in the US market.

Dr. Reddy’s Laboratories Ltd.

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FY09

Key Company Updates

betapharm received preliminary results on AOK tender in Germany

betapharm AG was offered 8 products in different regions of Germany covering the AOK-
insured persons in the preliminary result of the tender by the Allgemeine Ortskranken-
kassen (AOK). The tender results established betapharm’s competitiveness in the tender
segment of the market in Germany.

Dr. Reddy’s announced settlement of Clarinex® (Desloratadine) ANDA patent litigation with Schering Corporation
and Sepracor Inc.

We entered into agreements with Schering and Sepracor which will allow us to manufacture and market generic versions of the
CLARINEX-D®-12 Hour and CLARINEX-D® -24 Hour products, with six months marketing exclusivity, and the CLARINEX® REDIT-
ABS® product, with six months marketing co-exclusivity, starting in 2012. Dr. Reddy’s will also market a generic version of the
CLARINEX® 5 milligram tablet six months after the launch of the first generic version of that product.

Dr Reddy’s announced the appointment of Umang Vohra as the new Chief Financial Officer (CFO)

Dr. Reddy’s realigned its Global Generics geography portfolio

We realigned our Global Generics finished dosages strategy to focus on certain key geographies and would gradually exit some of
the very small distributor driven markets. In addition to the US, India, Russia & CIS and Germany where our operations are already
very large contributing to approx 90% of the Global Generics revenues, we will continue operations in 10-15 markets where our
finished dosages sales are growing significantly.

Dr. Reddy’s crossed $150 million revenue milestone in Russia & CIS region

We entered the Russian market in 1992 and today are the largest Indian Pharmaceutical company in Russia. Dr. Reddy’s is the
fastest growing international branded generic company by volume.

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Recognitions
Dr Reddy’s was ranked the Dr. Reddy’s Foundation received
Best Workplace in the the Economic Times’ Corpo-
biotech pharmaceutical rate Citizen Award for 2007-
industry in India in a study 08. This award was in recogni-
conducted by The Ecnomic tion for DRF’s “contribution to
Times and the Great Place the public good through commit-
to Work Institute. ment to critical social causes that
influence the lives and livelihood
Dr. Reddy’s was awarded the Gold Shield in the category of thousands of needy Indians.
‘Manufacturing and Trading Enterprises’ of the ICAI Awards
for Excellence in Financial Reporting.

Dr. Reddy’s UK was awarded the Unichem Generics Sup-

plier for 2008. This prestigious award was presented by the
industry’s biggest UK wholesaler / retailer.

Dr. Reddy’s North America Generic Team was honored at

the HDMA Annual Leadership Forum in Washington DC by
its customers as the BEST company in class with sales under
$100 M USD to wholesalers and distributors in the US.

Dr. Reddy’s won the EPCES Export Awards for outstanding

Dr. Reddy’s won the ‘Company with Best CSR & Sustain-
ability Practices 2008’ award at the 9th International Con-
ference on Corporate Governance & Sustainability organized
by The Asian Centre for Corporate Governance & Sustain-
ability and the Indian Merchants Chamber
export performance during the year 2006-07. Our company
was adjudged the best EOU (Non SSI Category: Chemicals &
Allied Products, Drugs & Pharmaceuticals & Allied Products).
The award was conferred by the Export Promotion Council for
EOUs and SEZs, Ministry of Commerce & Industry, Govern-
ment of India.
Public Relations Society of India conferred three awards on
Dr. Reddy’s for the best all India House Journal, Websites and
Photography.

The award for ‘NASSCOM - CNBC IT USER AWARD 2008

for the Pharmaceutical Vertical’ was conferred on our com-
pany at the NASSCOM-CNBC IT USER AWARDS 2008

Dr. Reddy’s won five awards at the annual Public Relations

Council of India (PRCI) Corporate Collateral Awards competi-
tion along with the Overall Excellence Award for Communica-
tions Collaterals.

Dr. Reddy’s received five coveted awards in the field of Human RedituxTM was conferred the ‘Product of the Year 2008’ by
Resources at the World HRD Congress. the Indian biotechnology magazine BioSpectrum.

Dr. Reddy’s Laboratories Ltd.

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FY09

Social Initiatives

Primary class at Pudami School

Set up in 1996, the Dr. Reddy’s Foundation makes an important contribution to sustainable social development through its
pioneering programs in the areas of education and livelihood creation. Working in partnership with various state governments
in India, DRF’s Livelihood Advancement Business School (LABS) and neighbourhood schools program reach out to thousands of
underprivileged youth.

DR. REDDY’S FOUNDATION

The activities of Dr. Reddy’s Foundation (DRF) span two broad areas of social intervention:
Livelihoods: Create, implement and disseminate sustainable and replicable livelihood models through partnerships.
Education: Provide learning opportunities for those who have never been to school, or have dropped out of it;
while improving quality of education across schools.
Livelihoods Update

Livelihood Advancement Business School (LABS): A total of 46,473 livelihoods were generated by LABS in 2008-09 taking the
total no to over 1, 85,000 since inception.

New LABS Partnerships were forged in the year with the following:
Michael & Susan Dell Foundation
Indira Kranthi Patham -Urban (UPADHI)
Asha LABS with Tata Teleservices
Self Help Groups, West Bengal
Employment Generation & Marketing Mission (EGMM, Government of AP), IKP (Indira Kranthi Patham) LABS

Exploring New Livelihood Options: Based on market needs analyses, new LABS curricula have been developed in the follow-
ing domains: Retailing, Telecom Sales, Rural Marketing, Direct Selling, Banking, Financial Services & Insurance, Housekeeping,
Security Services, Bengali Cuisine, Chinese Cuisine and Bakery & Confectionery.

Dr. Reddy’s Laboratories Ltd.

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FY09

Social Initiatives
Education Update
Yuva Youth Learning Centers: Helps students prepare for the Class X Board exam. Also provides career counseling and
job-related training.
Transit Education Centers: Schools for children of migrant construction workers in Andhra Pradesh. Nearly 4000 children
have been enrolled so far, with 120 teachers engaged in teaching them.
Altius, the Advancement School, Hyderabad: Altius helps graduates and diploma holders access various career
advancement opportunities by providing them requisite employability skills.
Pudami Neighbourhood Schools: These schools address the rising demand for english-medium education from
marginalized / lower-income communities.
Kallam Anji Reddy Vidyalaya, Hyderabad: The Kallam Anji Reddy Vidyalaya has a current strength of over 1500 students.
The school offers instruction in both English and Telugu medium.
Kallam Anji Reddy Vocational Junior College, Hyderabad: Offers five 2-year vocational courses at the Intermediate level

DR. REDDY’S FOUNDATION FOR HEALTH EDUCATION (DRFHE)

Conducts programs like Post Graduate Certificate in Healthcare
Management and Certificate Program in Cancer Counseling.
Students passing out from these courses assist healthcare
professionals and doctors in providing better care to patients.

Life at Your Doorstep: Palliative care initiative that helps terminally

ill patients and their families better manage serious illness

Photo: A training session at the DRFHE’s Patient Assistance Programme

Dr. Reddy’s Foundation won the ET Corporate Citizenship Award 2007-08

Dr. Reddy’s Foundation (DRF) won the Economic Times
Corporate Citizen Award at the Economic Times Corporate
Excellence Awards 2007-2008. This award was in recog-
nition of DRF’s “contribution to the public good through
commitment to critical social causes that influence the lives
and livelihood of thousands of needy Indians.”

A jury comprising global business leaders such as Pepsi Chair-

man & CEO Indra Nooyi, AV Birla Group Chairman Kumar
Mangalam Birla, Wipro Chairman Azim Premji, Standard
Chartered Group CEO Peter Sands, among others, chose Dr.
Reddy’s not only because of its CSR record, but also because
the company’s core business philosophy contributes to society.

Special mention was made of DRF’s Livelihood Advancement

Photo: Founder Chairman, Dr. K Anji Reddy receiving the award from the
honorable Prime Minister of India, Dr. Manmohan Singh
Business School (LABS) program, which has helped more than
1.85 lakh youth till date and has become a model for both
NGOs and private companies. This award demonstrated how
far Dr. Reddy’s has come in its journey to build a sustainable
and highly respected company.

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

Manufacturing Bandwidth and R&D Capabilities

Pharmaceutical Services & Active Ingredients

Manufacturing Bandwidth
Product Development
6 FDA-approved plants in INDIA Integrated Product development Capa-
1 Cytotoxic facility bilities that includes API development,
1 FDA-approved plant in Mexico Formulations development and analytical
1 FDA-approved plant in Mirfield, UK development skills.
3 Technology development centers One Integrated Product development
(2 in Hyderabad, INDIA; 1 in Cambridge, UK) facility in Hyderbad, INDIA.

Global Generics
6 Formulation plants in INDIA
(1 USFDA inspected)
1 USFDA inspected plant in USA
R&D Capabilities
New Chemical Entities
Two Research centers
Conducts research in the areas of
metabolic, cardiovascular, anti-bacte-
rials, and pain & inflammation.

Biologics
Biologics development center
GMP production
E coli and mammalian cell platforms

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com
FY09

General Information
About Dr. Reddy’s
Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is an emerging global pharmaceutical company.
As a fully integrated pharmaceutical company, our purpose is to provide affordable and innovative medicines through our three core busi-
nesses of:
- Pharmaceutical Services and Active Ingredients: comprising of Active Pharmaceutical Ingredients and Custom Pharmaceutical Services
- Global Generics, which includes branded and unbranded generics
- Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated Formulations, and Generic Biopharmaceuticals.

Our products are marketed globally, with a focus on India, US, Europe and Russia. Dr. Reddy’s conducts NCE research in the areas of meta-
bolic disorders, cardiovascular indications, anti-infectives and inflammation.

Safe Harbor
This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-
looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying as-
sumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified
by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects” and similar
expressions. Risks and uncertainties that could affect us include, without limitation:

General economic and business conditions in India

The ability to successfully implement our strategy, our research and development efforts, growth and expansion plans and techn
logical changes
Changes in the value of the Rupee and other currency changes
Changes in the Indian and international interest rates
Allocations of funds by the Government
Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry
Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry
Changes in political conditions in India

Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes
may vary materially from those indicated in the applicable forward-looking statements. Any forward-looking statement or information
contained in this presentation speaks only as of the date of the statement.

We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the
statement or information is made or to account for unanticipated events.

Contact Information
Media Relations Investor Relations
Mythili Mamidanna Kedar Upadhyay
Ph: +91-40-66511620 Ph: +91-40-66834297
Fax: +91-40-23731955 Fax: +91-40-23731955
Email: mythilim@drreddys.com Email: kedaru@drreddys.com

Rajan S Raghavender R
Ph: +91-40-66511725 Ph: +91-40-66511529
Email: rajans@drreddys.com Email: raghavenderr@drreddys.com
Milan Kalawadia
Ph: +1 - 9082034931
Email: mkalawadia@drreddys.com

Dr. Reddy’s Laboratories Ltd.

www.drreddys.com