c


 

  

   cc



  ‘
 ccc 


cc
 
 
‘
‘

‘
ccc

  cc   c c

c
 
  ‘
 c
 
‘
‘
‘
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the

development of this work and who influenced my thinking, behavior and acts during the course

of project.

I express my heartiest thanks to ‘ ‘ ‘ ‘   

 for

providing us such an opportunity of making industry project & sparing his valuable time to

undertake this project and giving us real industrial exposure through this winter project.

I am also extremely grateful to ‘ ‘ ‘  for giving invaluable inputs as well as

moral support which helped us in successful completion of the project report.

I would also like to thank all the persons who has been associated directly or indirectly

with this project and helped me in getting this present form.

‘ ‘ ‘ ‘ ‘ ‘ ‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

TEJNARAYAN SINGH CHANDRA

‘ ‘ ‘ ‘ ‘ ‘ ‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘
‘

‘
‘
‘
 
‘

I, 
   ‘ ‘
  student of Suryadatta institute of management & mass
communication (simmc) do hereby solemnly and sincerely declare, to the best of my knowledge
and belief, as follows:

This is to certify that I am responsible for all data which I have used to making this
report.I have made report under consideration of my project guide.I am lawfully entitled to the
use of the trade mark of which the said description is a true description.

 : Tejnarayan Singh Chandra

 : 24/07/2010

‘
CERTIFICATE

‘
 ‘
Title page
A‘ Acknowledgement---------------------------------------------------------- 2
A‘ Declaration------------------------------------------------------------------- 3
A‘ Certificate-------------------------------------------------------------------- 4
A‘ Introduction------------------------------------------------------------------- 5
A‘ Sector profile----------------------------------------------------------------- 6
A‘ The Indian Pharmaceutical industry today------------------------------- 7
A‘ uajor players of pharmaceuticals----------------------------------------- 10
A‘ Dr Reddy¶s Laboratories:
ˑ Industry background-------------------------------------------------------- 11
ˑ Company profile------------------------------------------------------------ 12
ˑ oard of directors------------------------------------------------------------13
ˑ àrganizational structures----------------------------------------------------13
ˑ Code of conduct--------------------------------------------------------------14
ˑ History ------------------------------------------------------------------------16
ˑ Global presence --------------------------------------------------------------17
ˑ uilestones --------------------------------------------------------------------18
ˑ usiness overview-----------------------------------------------------------20
ˑ uanufacturing and R&D facilities----------------------------------------22
ˑ Financial analysis------------------------------------------------------------23
ˑ Shareholding pattern--------------------------------------------------------24
ˑ alance sheet-----------------------------------------------------------------25
ˑ Products ----------------------------------------------------------------------26
ˑ Exports -----------------------------------------------------------------------31
ˑ Competitors ------------------------------------------------------------------31
ˑ Investment rationale---------------------------------------------------------32
ˑ uarketing strategies---------------------------------------------------------33
ˑ Recent news------------------------------------------------------------------34
ˑ uajor achievements---------------------------------------------------------34
A‘ Conclusion--------------------------------------------------------------------- 37
A‘ Learning experience---------------------------------------------------------- 37
 
cc 
c




‘

Health is defined both as cause and effect of economic development. Therefore, the
pharmaceutical industry is specifically recognized in the UN uillennium Development Goals as an actor
that can contribute to economic development. In addition, the pharmaceutical industry provides
significant socio-economic benefits to the society through creation of jobs, supply chains, and through
community development.The industry also plays an important role in technological innovation, which
may reduce costs of economic activity elsewhere in the economy.
Players in the pharmaceutical industry include: branded drug manufacturers, generic drug
manufacturers, firms developing biopharmaceutical products, nonprescription drug anufacturers, firms
undertaking contract research. In addition, there are also enablers of the industry such as universities,
hospitals and research centers that play a role in R&D activities.

c‘ !c c‘

"‘

The ‘ #$%&‘ % is the world's second-largest by volume and is likely to
lead the manufacturing sector of India. The first pharmaceutical company are engal Chemicals and
Pharmaceutical Works, which still exists today as one of 5 government-owned drug manufacturers,
appeared in Calcutta in 1930. Playing a key role in promoting and sustaining development in the vital
field of medicines.
‘ $‘ %‘ boasts of quality producers and many units approved by regulatory
authorities in USA and UK. International companies associated with this sector have stimulated, assisted
and spearheaded this dynamic development in the past 53 years and helped to put India on the
pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units
with severe price competition and government price control. It has expanded drastically in the last two
decades.
There are about 250 large units that control 70 per cent of the market with market leader holding
nearly 7 per cent of the market share and about 8000 Small Scale Units together which form the core of
the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the
complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and
about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical
formulations. The total Indian production constitutes about 13 per cent of the world market in value terms
and, 8 per cent in volume terms. The per capita consumption of drugs in India, stands at US$3, is amongst
the lowest in the world, as compared to Japan- US$412, Germany- US$222 and USA- US$191.

'
‘(‘c‘ !c c 
 c‘
"‘
‘
The Indian pharmaceutical industry has come a long way since the time of independence when
multinational corporations dominated the industry àver the years, under a favourable policy regime, the
industry has grown phenomenally and has established itself as a major supplier of not only generic
products but also new formulations. The industry, in addition to meeting domestic demand, is in a
position to export significant volume of pharmaceutical products to various destinations,including the
developed markets of USA, EU and Japan.

Evolution of Indian pharmaceutical industry can be classified into the following three periods:
‘ Pre-1970s: During this period, the size of Indian pharmaceutical industry was small, both in terms of
number of firms and volume of production. uNCs dominated the market, both in terms of volume of
production and patent holdings, in India. The patent regime, based on Indian Patents and Designs Act,
1911, recognized both product and process patents. Due to monopoly status enjoyed by the uNCs, drug
prices remained high during this period.

‘ 1970 ± 1995: Government of India introduced a new Patent Act, which came into effect in 1972,
recognizing only process patent and not product patent. The Act enabled Indian firms to use µreverse
engineering process¶, to manufacture drugs, without paying royalty to the original patent holder. The
Act, along with Drug Price Control. àrder, provided little incentive for uNCs to introduce new
pharmaceutical products in India. During this period, the number of domestic pharmaceutical firms
increased considerably, from around 2000 units in 1970 to 24,000 units in
1995.

‘ 1995 onwards: The year 1995 recorded another milestone for the Indian pharmaceutical industry. àne of
the Agreements under the World Trade àrganisation was complying with the Trade Related Intellectual
Property Rights (TRIPS) provisions. The TRIPS Agreement reintroduced product patent in India.
Further, during this period, tariff and non-tariff measures have come down. Such developments have
worked in favour of Indian pharmaceutical industry to undertake activities such as clinical research and
new drug development. Indigenous producers dominated the market accounting for more than 70% of
the market share. Exports
also continued to increase during this period, due to strong R&D process and low manufacturing cost.

‘
‘
  ‘
c
 ‘(‘c‘ !c c 
 c‘
"‘
‘

‘ ‘

 ‘  
‘ ‘ ‘  ‘ 
‘
‘  ‘ 
‘ ‘ ‘

‘ 
‘ ‘ 
‘ ‘ 
‘
‘ 
‘ ‘ ‘ 
‘ ‘  ‘ ‘ 
‘  
‘
Richard Gerster

Indian pharmaceutical industry, utilizing the policy environment prevailing over the years, adopted
various strategies to surge as a global player. These include:

 ‘‘ O‘

Since the formation of WTà and signing of TRIPS Agreement, Indian pharmaceutical industry is
increasingly becoming innovative rather than imitative. The players are changing their R&D strategy
from µreverse engineering¶ to µpatent driven¶. R&D expenditure as a percentage of sales, which stood at
around 2% in 1993-94, increased to around 5% in 2005-06.

 ‘‘‘‘

With an increase in R&D spending, Indian companies could file large number of Drug uaster Files and
Abbreviated New Drug Application) with US-FDA. According to àrganization of Pharmaceutical
Producers of India, India accounted for largest number of Drug uaster Files with US-FDA.
›
 ›  ‘›  !‘‘‘
uany Indian pharmaceutical firms, in addition to undertaking in-house R&D activities, are collaborating
with research laboratories such as Central Drug Research Institute (CDRI), Lucknow; Indian Institute of
Chemical Technology (IICT), Hyderabad; and Centre for Cellular and uolecular iology (CCu),
Hyderabad.

   ‘"# ##‘
iotechnology is one of the areas that are showing promising future. iotechnology drugs represent a
significant part of the new innovative medicines launched worldwide. io-pharmaceuticals account for
more than 10% of global pharmaceutical sales. uany Indian pharmaceutical firms are leveraging the
potential of biotechnology including manufacture of biogenerics.

 $ #‘#$‘ % ‘

àver the years, Indian pharmaceutical firms have been successful in exporting pharmaceutical products to
traditional as also new destinations.

# ‘  ‘
Given the pressing need of global pharmaceutical industry to develop new drugs, major pharmaceutical
producers across the globe are looking out for sourcing R&D activities. Indian companies are undertaking
contract research (including drug discovery, preclinical and clinical research) for global pharmaceutical
majors leveraging the prevailing advantages such as:
‘ Already well-developed pharmaceutical manufacturing base;
‘ Low R&D cost;
‘ Availability of highly qualified man-power;
‘ Large patient pool for clinical trials.

# ‘  $  ‘
New start-up companies are increasingly getting international exposure through the contract
manufacturing (of patented drugs, custom synthesis and scale-ups, specialized generics and old
molecules) route. It is estimated that about 50% of global bulk drugs / API manufacturing and around
15% of formulations manufacturing are outsourced to low cost destinations.
‘

#  % ‘  ‘
Another growth strategy adopted by Indian firms is entering into comarketing alliances with foreign firms
to market their products. Such alliances are proven to be beneficial to both the parties.
‘
  ‘‘
It is important for Indian pharmaceutical industry to scale up their R&D intensity to strengthen their
position in the global market place.
‘
 $ ‘ ‘& ‘   ‘#$‘! # ‘ ‘
Ensuring safety and quality of pharmaceutical products is another major concern, especially in the context
of alleged prevalence of spurious drugs
‘
›‘   ‘
it is crucial to consider optimal pricing strategies while determining the viability of launching a drug.The
need for viable pricing strategies also increases in an era of rising R&D costs.‘
‘
%‘  #!' ‘
Pharmaceutical industry is highly R&D intensive. In order to remain globally competitive the industry
requires pool of highly skilled manpower. India has already made its mark in scientific research in the
world with large pool of scientific man-power.
‘
#' ‘ ' ‘
The industry has enormous growth potential. Factors listed below determine the rising demand for
pharmaceuticals.
‡ The growing population of over of a billion
‡ Increasing income
‡ Demand for quality healthcare service
‡ Changing lifestyle has led to change in disease patterns, and increased demand for new medicines to
combat lifestyle related diseases.
‘
(!#‘
àver 60 per cent of India¶s bulk drug production is exported. Domestic pharmaceutical exports, growing
at 30 % per annum, touched a new height of US$4.8 billion in the financial year 2006-07. The export
revenue now contributes almost half of the total revenue for the top three pharmaceutical majors: Dr
Reddy¶s, Ranbaxy and Cipla.
.‘

 
‘
c
 ‘(‘c‘ !c c 
 c‘
"O‘

Indian pharmaceutical industry is one of the fastest growing segments of Indian manufacturing sector.
The pharmaceutical industry has experienced a growth rate of 12% with the annual turnover of the sector
crossing US$ 11 billion, in 2005-0614. Globally, Indian pharmaceutical industry ranks 4th in terms of
volume with a share of 8% in the world pharmaceuticals market. In terms of value, Indian
pharmaceuticals industry ranks 14thThe annual turnover of the Indian pharmaceutical industry is over
US$ 11 billion. Globally it ranks 4th in terms of volume with a share of 8% in the world pharmaceutical
market. In terms of value, it ranks 14th. Key therapeutic segments of Indian pharmaceutical industry
include anti-infective, gastrointestinal and cardio-vascular. Acute therapies make up about 60% of the
market. However, it is expected that with the changing lifestyle and aging population, sales of chronic
therapies (i.e. diabetes, cardiovascular) are growing rapidly The pharmaceutical industry is also showing
good performance in terms of exports. It is one of the top export items from India accounting for more
than 4% of India¶s total exports in 2006-07. Exports, which constitute around 50% of the industry¶s total
production, have grown at a CAGR of 14% in the last decade. uajor export markets include highly
regulated markets such as USA, Germany, UK and canada. Europe is the biggest export destination for
Indian pharmaceuticals accounting for more than 30% of the total exports, followed by the Americas
region (25%).
.‘#$)‘ %‘ %‘*‘+,‘
‘
India's US$ 9.4 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of
the largest and most advanced among the developing countries. The Indian pharmaceutical industry can
reach a market size of US$ 11.6 billion by 2009.

 

‘''‘

-‘ &‘‘‘ $%&‘%‘

Competition is mainly from the domestic manufacturers and imports from China because of the low
manufacturing cost. With the new patent regulations the industry expects to see a major structural shift
with the entry of foreign pharmaceutical manufacturers
There are five government-owned companies of the Indian public sector. These companies are the
Indian Drugs and Pharmaceuticals, Hindustan Antibiotics Limited, engal Chemicals and
Pharmaceuticals Limited, engal Immunity Limited and Smith Stanistreet Pharmaceuticals Limited.
Some of the major Indian private companies are Alembic Chemicals, Aurobindo Pharma, Ambalal
Sharabhai Limited, Cadila Healthcare, Cipla, Dr. Reddy¶s, IPCA Laboratories, Jagsonpal Pharma, J..
Chemicals, Kopran, Lupin Labs, Lyka Labs, Nicholas Piramal, Ranbaxy Labs, uatrix Laboratories,
àrchid Chemical and Pharmaceuticals, Sun Pharmaceuticals, Ranbaxy Laboratories, Torrent Pharma,
TTK Healthcare, Unichem Labs, and Wockhardt.
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
    cc


Type : Public

Industry : Pharmaceuticals

Founded : 1984

Headquarters : Hyderabad, Andhra Pradesh, India.

Key People : Anji Reddy (chairman), G V Prasad (CEà)

Revenue : $1.565 billion (2010)

Net Income : $23 million (2010)

Employees : 13,455 (2010)

Website : www.drreddys.com

‘ .‘ /‘ . (SE: 500124, NYSE: RDY) founded in 1984 by Dr. K. Anji Reddy,
has become India's second biggest pharmaceutical company. Dr. Anji Reddy had worked in the publicly-
owned Indian Drugs and Pharmaceuticals Ltd. Reddy's manufactures and markets a wide range of
pharmaceuticals in India and overseas. The company has over 190 medications, 60 active pharmaceutical
ingredients for drug manufacture, diagnostic kits, critical care, and biotechnology products.

Dr. Reddy's began as a supplier to Indian drug manufacturers, but it soon started exporting to other less-
regulated markets that had the advantage of not having to spend time and money on a manufacturing plant
that that would gain approval from a drug licensing body such as the U.S. Food and Drug Administration
(FDA). y the early 1990s, the expanded scale and profitability from these unregulated markets enabled
the company to begin focusing on getting approval from drug regulators for their formulations and bulk
drug manufacturing plants in more-developed economies. This allowed their movement into regulated
markets such as the US and Europe.

y 2007, Dr. Reddy's had six FDA-plants producing active pharmaceutical ingredients in India and seven
FDA-inspected and ISà 9001 (quality) and ISà 14001 (environmental management) certified plants
making patient-ready medications ± five of them in India and two in the UK.

In 2010, the family-controlled Dr Reddys denied that it was in talks to sell its generics business in India to
US pharmaceutical giant Pfizer, which had been suing the company for alleged patent infringement after
Dr Reddys announced that it intended to produce a generic version of Atorvastatin, marketed by Pfizer as
Lipitor, an anti-cholesterol medication. Reddys was already linked to UK pharmaceuticals multinational
Glaxo Smithkline‘

‘
 c/%‘‘.‘&/‘

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 businesses:

¦‘ Pharmaceutical Services and Active Ingredients, comprising our Active Pharmaceuticals and Custom
Pharmaceuticals businesses;
¦‘ Global Generics, which includes branded and unbranded generics; and
¦‘ Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated Formulations, and
Generic iopharmaceuticals

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

àur strong portfolio of businesses, geographies and products gives us an edge in an increasingly
competitive global market and allows us to provide affordable medication to people across the world,
regardless of geographic and socio-economic barriers

Purpose:‘Committed to providing‘Affordable and Innovative medicines for healthier lives‘

$$#
‘

The high cost of many medicines puts them out of the reach of millions of people who desperately need
them. As a global pharmaceutical company, we take very seriously our responsibility to help alleviate the
burden of disease on individuals and on the world. Through our Global Generics business, we provide
high quality, lower-cost alternatives to innovator drugs. àur wide range of generic medicines bring hope
and health to people around the globe

# #‘

Despite the great advances of medical science, there are still far too many diseases for which there are no
cures or no satisfactory treatments. We believe that innovation ± in research, processes and technologies ±
holds the key to finding solutions for unmet or inadequately met medical needs. àur Proprietary Products
business is dedicated to discovering new or better treatments than currently exist. In addition, our Custom
Pharmaceutical Services business works with Innovator companies and emerging biotech firms to
accelerate the development of new molecules, while lowering research costs

Capabilities:
Deep Manufacturing Expertise

We have 16 world-class manufacturing facilities of which 9 have a long history of regular USFDA
inspections. With an annual capacity of nine billion tablets/ capsules a year, dedicated to servicing the
more regulated markets, one of our finished dosages facilities is among the largest in Asia. àur facilities
are designed to respond to a wide range of technologies - oral solids, injectibles, topicals, inhalers,
cytotoxic, hormonals and other dosage forms.
 Such manufacturing capabilities and our inherent expertise to navigate intellectual property road blocks
make us a preferred partner for some of the world¶s leading pharmaceutical companies

`
a  snchr
nized supp  chain

We put the needs of our partners and customers first. àur globally synchronized supply chain and a
comprehensive Information technology platform help us assure customers of timely delivery and superior
inventory turns. The uninterrupted success of our customers¶ business is our promise.

Regu at
r Perf
rmance

àver the years we have built an expertise in understanding the regulatory frameworks of the various
countries in which we operate. This has given us a distinctive edge, for ourselves and our customers. We
have built a successful track record of timely and extensive approvals. As an example, we are among the
leaders in terms of DuFs and ANDAs in the US itself, with more than half of these being Para IV
possibilities.

Qua it & Pr
duct Resp
nsii it

At Dr Reddy¶s, we strictly follow quality control and quality assurance systems as specified by regulatory
requirements in each of the geographies in which we operate. For us, product responsibility extends
through the life cycle of the product -- from product development to manufacture to product release to
post-launch. We comply with the internationally accepted International Conference on Harmonization
(ICH) guidelines in product development and we have independent quality control and quality assurance
teams to ensure multi-stage quality compliance

usiness:
Humanity¶s health needs are greater than any one company¶s ability to solve them; yet we can work with
others to bring new drugs quickly to the market and provide the building blocks of affordable medicines.
Through our PSAI business, which comprises the Active Pharmaceutical Ingredients (API) and Custom
Pharmaceutical Services (CPS) businesses, we offer IP advantaged, speedy product development and
cost-effective manufacturing services to our customers ± generic companies and innovators. This allows
us to help make good medicines available to more people around the world. The core strengths of our
PSAI business are the state-of-the-art infrastructure, resources and skills we are able to offer to our
customers:

¦‘ Large and diverse product portfolio

¦‘ Eight FDA-inspected plants and three technology centers
¦‘ World class chemistry expertise
¦‘ Robust, large-scale manufacturing capabilities
¦‘ Intellectual Property (IP) driven product development for freedom to operate
¦‘ Total, seamless supply chain management
 #‘**‘

‘
‘.‘/‘
8-2-337, Road No 3,
anjara Hills, Hyderabad - 500034,
Andhra Pradesh - INDIA

&O‘+91-40-23731946 / 47 / 48 / 49 / 50
(0O +91-40-23731955
'O www.drreddys.com

c1‘ $%&‘+‘

‘.‘/‘
8-2-120/76/1/, 2nd Floor,
Ashoka Hitec Chambers,
Road No. 2, anjara Hills, Hyderabad,
INDIA - 500 034

&O +91 40 66470960
(0O +91 40 23541224 $&O apiinquiry@drreddys.com

%‘1&#$‘
‘.‘/‘
Greenlands, Ameerpet,
Hyderabad 500 016, INDIA

&O +91-40-23731946/47/48/49/50
(0O‘+91-40-23731955
$&O businessdevelopment@drreddys.com

‘.‘(%‘
‘.‘(%
6-3-655/12, Somajiguda,
Hyderabad-500082.

&O +91-40-65343424, 23304199 / 1868
(0O +91-40-23301085
2$&O info@drreddysfoundation.org
'O www.drreddysfoundation.org

‘
 ‘*‘
Dr. Reddy¶s oard of Directors comprises eminent individuals from diverse fields. The oard acts with
autonomy and independence in exercising strategic supervision, discharging its fiduciary responsibilities,
and in ensuring that the management observes the highest standards of ethics, transparency and
disclosure.
àur directors are experts in the diverse fields of medicine, chemistry and medical research human
resource development, business strategy, finance, and economics. They review all significant business
decisions, including strategic and regulatory matters. Every member of the oard, including the non-
executive directors, has full access to any information related to our company.
Committees appointed by the oard focus on specific areas, take decisions within the authority delegated
to them and make specific recommendations to the oard on matters in their areas or purview.

WHàLE-TIuE DIRECTàRS

‘ ‘ ‘
‘
Dr. K. Anji Reddy G V Prasad Satish Reddy‘

‘‘ ‘  ‘
‘
‘ ‘  ‘‘
 ‘
‘‘ ‘
 ‘  ‘ ‘  ‘ ‘
‘
 
‘3‘‘!‘
 ‘
 ‘

‘ ‘ ‘ ‘
‘
Dr. Omkar Goswami Ravi Bhoothalingam Dr. Bruce LA Carter
‘
‘
‘
‘

‘‘ ‘ ‘ ‘
‘
Anupam Puri Ms.Kalpana Morparia J.P. Moreau Dr. Ashok Ganguly‘
‘
 
cc
":

At Dr. Reddy¶s, sustainability is a multi-dimensional aspiration, which has its roots in the very purpose of
our existence ± providing affordable medicines to people around the world and meeting unmet medical
needs through innovation. àur business, by its very nature, serves a social good, so we have a far deeper
reason than profits alone to drive our performance.

For us, building a sustainable organization is not a trend we blindly follow; it is intrinsic to how we have
operated for decades. To us, a commitment to sustainability means a commitment to fulfilling our
obligations to all of our stakeholders -- our customers & partners, employees, shareholders and society.
Thus, while optimizing profitability may be one measurement of our performance, we also judge our
success by our performance with regard to the communities in which we live and work, the environment
and our employees. We understand that it is only by increasing value to all of these stakeholders that we
can build an ever flourishing and lasting organization.

While sustainability thinking was always woven into the fabric of our organization, we formally declared
our intent to institutionalize it in 2004, when we first began to publicly report on our sustainability
practices. We annually publish our Sustainability Report with direction from the guidelines
recommended by Global Report Initiative G3, covering social, ethical, economic, safety and
environmental aspects of our business.

‘c‘c 4 
‘

Dr Reddy's Laboratories Ltd acquires GlaxoSmithKline-Penicillin us from GlaxoSmithKline PLC -

uarch 30, 2011

Dr Reddys Laboratories Ltd acquires remaining interest in Perlecan Pharma Pvt Ltd. Sept 18, 2009.

Dr Reddys Laboratories Ltd acquires Dowpharma-small molecules from Dow Chemical co. April 30,
2008.

Dr Reddys Laboratories Ltd acquires remaining interest in Perlecan Pharma Pvt Ltd.-july 30, 2008

Dr Reddys Laboratories Ltd acquires etapharm Arzneimittel GmbH from 3i Group PLC ± uarch 04,
2006.

Watson Pharmaceuticals Inc acquires Dr Reddys Lab Ltd-Formulation from Dr Reddys Laboratories Ltd-
Dec 16, 2005

Dr Reddys Laboratories Ltd acquires Trigenesis Therapeutics Inc ± uay 06, 2004

Dr Reddys Laboratories Ltd acquires uS Laboratories Ltd- April 01, 2002

Dr Reddys Laboratories Ltd acquires Dai-Ichi-Women's Health rands from Dai-Ichi Karkaria Ltd ± Sep
14, 2000.

‘
 c&&‘‘ #‘
‘
%‘ +‘ &#‘‘

At the core of each successful partnership is a great relationship based on trust and mutual respect. As we
work towards fulfilling our core purpose we share your aspirations. We recognize and embrace the fact
that our partners are a core component of this strategy.

We understand that partnerships are successful when benefits accrue to both parties. They are built on a
shared vision with well-defined and agreed-upon goals. We also know that that the partners¶ thinking and
interests may not always be identical, but that we share the same goal²a successful product.

àur shared partnership successes are at the very heart of our business. From our first meeting through
product launch and beyond, we stand behind our belief in true partnership thereby combining our
strengths and sharing our successes. Dr. Reddy's firmly believes that the right alliances can contribute
significantly to the success of our partners as well as to our own strategy and sustainable growth

#‘‘ $#&‘#‘

Clarity of thought, Speed of execution, Flexibility, creativity, and transparency are critical components of
our negotiation and transaction process. As no two deals are the same, we work with potential partners to
structure deals through customized approaches that allow both partners to leverage unique capabilities
and assets in order to achieve common goals.

A simple and streamlined process to progress our partnering discussions and a flat organizational
structure facilitates rapid decision making from initial screening to execution.

As a company that evaluates 100+ business development opportunities in any given year (many of which
come to closure), we value the time and resources our potential partners commit to explore and complete
any potential partnership. Dr. Reddy¶s emphasizes a transparent and collaborative negotiation process and
prompt decision making.

We bring a reputation for acting swiftly and being flexible. We will work with you to reach an agreement
with which you will be comfortable and that will head us in the right direction toward shared success.

%‘&#‘/‘‘%‘‘$%%&‘#O‘

àur robust alliance management principles and practices allow successful execution of joint initiatives.
Dr. Reddy¶s is committed to ensuring that our partnerships succeed and flourish.