This is the India Growth Story!

In a rapidly growing nation, whose health care needs are growing by leaps and bounds, hospitals, pharma companies, diagnostics, insurance, etc, are the need of the hour and provide an immediate and exciting investment opportunity.

Change in disease profile, change in product mix, increase in geographical penetration, focus on rural areas and increase in field force are leading to strong above industry growth for top Indian pharma companies.

What is the potential? In India

Pharma sales are growing at 14% CAGR over 18 years; yet Indias drug consumption per capita is among the lowest in the world. Drug consumption volumes are 8-12x lower than in the US and Japan About half the population consumes significantly below even the Indian average. Drug prices in India are cheaper than anywhere else! Rising income levels and increasing share of healthcare in consumption should drive strong demand for pharmaceuticals! Constantly improving medical infrastructure increases exposure and consumption! HUGE SCOPE for catch-up and growth!

Indian Pharma industry one of the fastest growing

Indian Pharmaceutical industry (including exports):

Currently: US$ 16bn (Rs.73,000 crore) By 2015: ~US$ 50bn (Rs. 2.2 lakh crore)

Indian domestic market alone:

By 2015: 10th largest pharma market By 2020: US$ 30bn

PHARMA COMPANIES ARE ON THE BALL

HUGE ROOM FOR

FURTHER GROWTHThe Domestic Market

Growth in Indian Pharma market

Riseof Generics
Emerging markets are likely to grow at a faster pace (12-13% CAGR) than the regulated markets (3-5% CAGR) The overall global generic market, which stands at US$87bn as on CY2008 is likely to grow to US$135bn by 2013 (CAGR of 9%)
Generic Industry Growth Estimates Generic Penetration In Key Markets

Estimated to witness a CAGR of 9% to US$ 135bn in 2013. An ageing population, rising healthcare spendingandincreasingacceptanceforgenericsarekeygrowthdrivers

Improving Infrastructure -Doctor penetration

More doctors = More prescriptions!

Key determinants of pharmaceutical industry

Demand drivers Higher incidence of chronic diseases Demographics, lifestyle and increasing diagnoses and treatment rates Early diagnosis Better prescription compliance

Government focus on inclusive growth is

helping improve health infrastructure

in rural India.

Government support Under NRHM Govt. scheme: Central allocation

Year on year spending on maintaining infrastructure

Expanding reach to grow the market

Growth for most Indian companies has been driven by larger field-forces, and yet, the largest cover only the top 20-25% of the doctors in India. Drug volumes per doctor in India are very low, but changing rapidly Drug consumption per capita is among the lowest in the world; half of India consumes much lower than the national average Poor medical infrastructure has been a constraint on drug consumption in India: government measures to improve rural infrastructure, and rising number of doctors is helping correct this This growth opportunity is so huge that it is likely to bring in structural changes in pricing and reach of healthcare

Top pharma company revenues

Revenues of top pharma companies have grown by over

2.5 times
in just 5 years

Advantage INDIA

Low cost Per Capita Income crosses $1000! Regulated markets

13th BIGGEST pharma market in the world

2nd HIGHEST population LARGEST pediatric and geriatric population most attractive segment

Advantage INDIA

MOST number of FDA approved plants (~80) after USA. Lots of NEW DRUG trials ongoing in Indian labs New Chemical Entity (NCE) research is in various stages of trials. BLOCKBUSTER DRUG EXCEEDING $1 BILLION COULD BE JUST AROUND THE CORNER! Psychological factor! As Indians get richer they will never skimp on expenditure for Health!

HUGE ROOM FOR

FURTHER GROWTHThe Global Perspective

Advantage INDIA

Geography-wise Distribution of Sales

The opportunity is NOW

Ride the wave of the growing Pharma market Benefit from the positive inflows to hospitals, diagnostic centres etc. Take advantage of overall growth to the total healthcare space Grab the opportunity while it is HOT!

Stock up on Healthcare!

Portfolio Rs 100 invested in April04 is worth Rs 602 in March 11 S&P CNX 500 Rs 100 invested in April04 is work Rs 307 in March11

Key Indices

MORE

RESILIENCEDefensive

Resilient Not affected by commodity prices Resistant to domestic inflation Has defensive traits while posting healthy growth

The incremental value of Indian Healthcare Market doubled this year a phenomenal increase given the global macroeconomic slowdown.
Doubly attractive, since it offers upside and protects the downside.

Resilient Both healthcare and consumer staples trade at 23x P/E But growth expectations from pharma are much higher.

Could be a good play on Indian consumption growth

INTRODUCING

Will invest in pharma, hospitals, diagnostic centres, health insurance companies, wellness clinics etc; the complete healthcare space

Fund Facts
3-year Closed-end product Minimum application amount: Rs 1,000,000 Benchmark: S&P CNX 500 Equity and Equity Related Instruments 80% to 100% Cash and Cash Equivalent 0 to 20% Cap Curve Across curve

Suitability
Have a high-risk appetite & understand risks Have a sizeable allocation to equity in their portfolio Seek an aggressive equity scheme that could boost overall portfolio returns over the long term Have an investment horizon of at least three years

Risks
Changes in regulatory framework, government policy on ownership Savings patterns and deployment of such savings Levels and trends in capital market activity Concentration risk Political uncertainty

Benefits
Proprietary risk-return estimates model Disciplined execution of the mandate / model without deviations Robust Risk Management

Sundaram Portfolio Management Services belongs to the highlyrespected Sundaram Mutual Fund The parent organization of the Asset Management Company Sundaram Finance is an institution with high ethical standards,decades of proven competence, and national as well as global expertise Access to the same research that tracks hundreds of companies for the mutual fund Leverage same top quality systems and the dedicated set-up for trading

Ineffect,yougetthebenefitofourwelloiledassetmanagement machinerywithadecadeofexperienceinIndia,combinedwith theattentivenessofateamdedicatedtoyou.

Key take-aways

High demand, rising profits Infrastructure boom Govt. support More reach High growth High resilience

HUGE OPPORTUNITY

Disclaimer
General Disclaimer: This document is issued by Sundaram Asset Management Portfolio Managers registered with the Securities and Exchange Board of India in India. This document is produced for information purposes only. It does not constitute a prospectus or offer document or an offer or solicitation to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management Portfolio Managers believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram Asset Management Portfolio Managers neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive it and Sundaram Asset Management Portfolio Managers is not soliciting any action based on this document. In the discharge of its functions, Sundaram Asset Management may use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. Copies of the Disclosure Document may be obtained from the offices of Sundaram AMC Ltd. and its authorized distributors or downloaded from www.sundarammutual.com. For details about the Portfolio Management Services and performance, please refer the Disclosure Document available online and at the offices of the AMC. Securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the portfolios will be achieved. As with any securities investment, the value of the portfolio can go up or down depending on the factors and forces affecting the capital markets. Past performance of the portfolio Manager may not be indicative of the performance in the future. Sundaram Asset Management Company is not responsible or liable for losses resulting form the operations of the portfolios. The value of the portfolios offered in this document may be affected by changes in the general market conditions, factors and forces affecting capital markets in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures. The liquidity of the portfolio investments are inherently restricted by trading volumes in the securities in which it invests. Investors in the portfolios are not being offered any guaranteed returns.

I can tell this prescription is a phony. The doctors signature is legible.

Government support

You are completely free to carry out whatever research you want, so long as you come to these conclusions.

Heres how it works: First we discover the drug and identify the market, then we invent the disease.