1. SUN PHARMACEUTICALS INDUSTRIES
ECONOMY INDUSTRY COMPANY A
Economic Indicators Size and Dynamics Competitive Position N
A
Social Indicators Industry Life Cycle Distinctive Edge L
Investment Scenario Demand Drivers Segmental Analysis Y
S
Stock Market Analysis External Factors Financial Analysis I
S
Sovereign Rating Future Outlook Growth Prospects
(Presented By: Piyush Jain 26C)
Fast Facts#1: Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments

2. ECONOMY ANALYSIS
I. ECONOMIC INDICATORS
GDP Growth Rate (in %) CPI Index The Global
12.00 (in %) Competitiveness Report
9.60 14.97
10.00
8.00
9.30 8.40 20.00 2010-11
5.50 15.00
6.00 8.40 7.00 Doing Business in India
6.70 6.90 10.00
4.00 3.20
5.00
2.00 • Overall rank 51st
0.00
0.00 among 139 countries.
2005
2001
2002
2003
2004
2006
2007
2008
2009
2010
2011
2012
FY FY FY FY FY FY FY
07 08 09 10 11 12 13 • 4th in Market Size
• Lower GDP growth rate in FY 13 *Data from www.inflation.eu.
due to deficient monsoon and • Inflation high due to rising • 39th in Innovation
worsening Euro Zone outlook food and fuel prices
* FY 07-12 from Ministry of Finance and • Resulting Higher cost of Man, • 17th in Sound Financial
FY 13 from CRISIL Machine and Material Market
II. SOCIAL INDICATORS: HUMAN DEVELOPMENT INDEX
• India ranks a low 134 among 187 countries in terms of HDI which assesses long-
term progress in health, education and income indicators.(*UNDP Website)
• Though India has been among high growth nations it fall short of HDI standard mainly
on account of poor social indicators specifically Healthcare and Education
HDI rank HDI Life expectancy at birth Expected years of schooling GNI per capita (USD)
134 0.547 65.4 10.3 3,468
Fast Facts#2: Sun Pharma was listed on the main stock exchanges in India in 1994

3. III. INVESTMENT SCENARIO
• AS per UNCTAD's World Investment
Prospects Survey 2010-12, India is the
2nd most attractive destination for FDI
• Amount of FDI reducing due to
slowdown and crisis in developed
economies, Uncertain Economic Climate
(GAAR and Retrospective Tax
Amendmend), Policy Paralysis on reforms
*In USD Million. Hindu Business Line Feb 24, 2012.
IV. STOCK MARKET ANALYSIS
• Volatile Market condition over last one
year; witnessed periods of Bull and Bear
runs; becoming range bound in last
month or so
• BSE SENSEX
Aug 10, 2011: 17130.51
Aug 10, 2012: 17,557.74
High : 18,428.61
Low : 15,175.08 *BSE SENSEX Aug 10, 2011 to Aug 10, 2012 (Yahoo Finance)
V. SOVEREIGN RATING
• Standard and Poor’s & Fitch recently scaled down India’s rating credit rating outlook from
‘stable' (BBB+) to ‘negative' (BBB-) with a warning of a downgrade if there is no
improvement in the fiscal situation and political climate
• BBB- is considered as lowest investment grade by market participants.(* S&P Website)
Fast Facts#3: 1st API mfging plant was built in Panoli in 1995 to tap vast International opportunity

4. INDUSTRY ANALYSIS
I. SIZE AND DYNAMICS
GLOBAL INDIA
• Global pharma market is expected to grow • Rank 10th in terms of value and 3rd in
by 5-7% and reach US$ terms of volume
1.1 trillion by 2014 • Current Size US$ 12.3 Million
• US pharma market will reach anywhere expected to touch US$ 74 Million in
between US$ 320 and 350 billion by sales by 2020
2015 & European markets to reach up to • Branded generic forms 70-80% of
US$ 160 billion by 2015 market
• Pharmerging countries will contribute • Formulations market valued at Rs.
28% to global market spending by 2015; 48,200 crore (CAGR 14-15%)
expected to double their spending on • Exports branded generics in large
medicines to $285-315 billion by 2015, volumes, which are expected to grow at
compared with $151 billion in 2010 a CAGR of 21-23% during 2009-2014
• IMS Health * Sun Pharma Annual Report 2010-11, India Brand
Equity Forum (www.ibef.org), ICRA Report
II. INDUSTRY LIFE CYCLE
• Indian Pharmaceutical Industry is growing
at 14% per annum (* Planning Commission)
• Industry Life cycle depicts the relation
between sales volume of industry and
maturity level of industry
• In terms of Industry Life Cycle it is in
Growth stage
Fast Facts#4: In 1997, headquarters shifted to Mumbai, India's commercial capital.

5. III. DEMAND DRIVERS
Rising Household Increasing Prevalence Improving Healthcare Rising Penetration
Income Levels of Lifestyle Related Infrastructure/ in Smaller Towns
Diseases Delivery Systems and Rural Areas
IV. EXTERNAL FACTORS
TECHNOLOGY SOCIAL CHANGES AND DEMOGRAPHY
• Quality of the filings have to be • Increasing per capita income and standard
significantly improved for Complex living of people expanding market for Pharma
Molecules, Non-orals and Para IV/FTFs companies
forming increasing share of their pipeline • Changing lifestyle and demography giving push
• Patent expiration also poses a challenge to to chronic segments like cardiovascular,
improve technical capabilities anti-diabetic, neurology, psychiatry
FOREIGN INFLUENCES GOVERNMENT
• Effect on domestic Industry: MNCs have • Increasing focus by Governments to reduce
become aggressive with launch of product healthcare costs continue to exert pressure
patent regime & strong growth prospects on innovator companies which supports
making industry highly competitive outsourcing to low-cost nations
• Opportunity in Foreign Market: In US • Indian Budget 2012-13: Excise Duty
(With ~$100 billion worth patent expiries increased to 6% from 5% on formulations and
over the next 5 years), Europe (Price to 12% from 10% on bulk drugs; Impact
Erosion is a concern though) and Japan neutral since companies are likely to pass
(Generic concentration to be increased to hikes to consumers
30% from 23% in 2012)
V. FUTURE OUTLOOK
FAVOURABLE Benefitting from healthy growth in the domestic formulations business and
steady growth expected in the U.S/Europe generics space on back of patent expiries
Fast Facts#5: 1ST International acquisition with an initial of $7.5 million in Caraco, Detroit

6. COMPANY ANALYSIS
I. COMPETITIVE POSITION
• 5th Largest Indian Pharma Company by prescription sales (IMS ORG Stockist Audit, March. 2012)
II. DISTINCTIVE EDGE
• Integrated Product Development: Vertically integrated network across four
continents enabling high quality, low cost and a quick market entry across the
geographies
• Market Leadership: In Seven Therapy Segment largely in the fast-growing chronic
segments
• Revenue Growth: Over the past five years, the company’s revenues growth at a CAGR
of 19.1% ahead of the underlying market growth
• Success with Acquisition: Successful turnaround of 16 high potential yet under
performing businesses
III. SEGMENTAL ANALYSIS
International APIs,
Generics, 14% 7%
DIVERSIFIED Others, Neuro-
Psychiatry,
India Branded
PRESENCE 27%
28%
Generics , 36% ACROSS
COUNTRIES
AND Gastroente
US CHRONIC rology, Cardiology,
15% 19%
Formulations, SEGMENT
43%
Diabetolog
y, 11%
Fast Facts# Acquired Taro Pharmaceuticals in sept 2010 doubling US business esp in Dermatology
6:

7. IV. FINANCIAL ANALYSIS
STRONG EBITDA MARGIN HEALTHY R&D/SALES RATIO
8.50%
6.60%
7.80%
5.80%
5.60%
2007-08 2008-09 2009-10 2010-11 2011-12
FAVOURABLE FINANCIAL LEVERAGE BALANCED STAKEHOLDER VALUE
07- 08- 09- 10- 11- 07- 08- 09- 10- 11-
08 09 10 11 12 08 09 10 11 12
DEBT/EQ .03 .03 .02 .04 .02 ROCE 35.5 31.5 19.5 23.6 30.4
Diluted 14.4 17.6 13 17.5 25 RONW 38.3 30.2 18.2 21 23.9
EPS (Rs)
V. GROWTH PROSPECTS
• Looking to enhance its presence in other markets especially Europe, Latin America,
Russia and CIS
• As on December 2011, the company had 389 ANDA filings with 148 pending approval
Fast Facts#7:Mfging Plants 23; Employees 12000; Research Centre 4; International Sales 60%