INTRODUCTION TO RANBAXY COMPANY PROFILE A company empowered by one mission to place itself on the world map.

An enterprise propelled by one force-that synergizes its energies to charter unexplored markets. Organizations fuelled by one dream-to transform competition into opportunity. Ranbaxy Laboratories Ltd. was incorporated in June 1961, in the name of M/S LEPITIT RANBAXY LABORATORIES LTD and it commenced its business in MARCH 1962, in technical and financial collaboration with an international company named LEPTIT SPA, MILAN, ITALY. Ranbaxy Laboratories Pvt. Ltd. merged with Leptit Ranbaxy Laboratories Pvt. Ltd. in 1962 Ranbaxy and company also merged with this company in 1966. The collaboration arrangement with M/S LEPTIT was terminated in 1966; after which Indian nationals acquired the entire share capital of the company. Therefore the word Leptit was removed from the name of the company. The name is known as RANBAXY LABORATORIES LIMITED. In 1973 the company issued shares to the general public and became a fully fledged PUBLIC LIMITED COMPANY. Today, Ranbaxy has emerged as a Leading Pharmaceutical Company on the Indian firmament, with the second largest market share and enjoys an enviable reputation for its high standard of ethics and quality around its core strength of anti-infective, it has produced new brands in emerging therapeutic areas like cardiovascular, central nervous system and nutritional. Supporting this expansion, the company has invested in world class manufacturing infrastructure that leverages Indias comparative cost advantage and skilled manpower, while delivering international quality.

The companys drive for Internationalism is guided by the well planned brand strategy that covers some of the world emerging markets like China, cis, Central Europe and Latin America . Its position today is in league of the Top Ten Pharmaceutical companies of three world an decent ranking as the eleventh largest company in the international generics space is the resounding endorsement of its strategic mind. It is clear that for a long time, the dominant share of revenues of the company would continue to come from the ever expanding global generics market. Hence the intent of Ranbaxy mission is to achieve a sustained growth rate through the continuous pursuit of innovation phase one trials for pervasion, a compound for treating prosthetic males have been completed. Phase 1 trials with clafrinast, an asthma compound are an important step towards research based value creation. This company also had success with Ciplofloxacine, an ingenious form, created through the novel drug delivery systems research. As the demand of the bulk drugs inside the country and abroad was increasingly rapidly a new, plant was set up at Toansa near Ropar in 1987. This was a higher capacity plant designed to cater to the present and future needs, initially antibiotics like Ampicillin, Trihydrate and Doxycycline were manufactured. Later, on the other drugs like Cephalexin monohydrate and Ranitidine were also prepared. The plant at Toansa was designed to meet the stringent standards set by the Food and Drug Administration (FDA) of U.S.A. This plant has been approved by FDA and this will open up American and other newer markets for Ranbaxys products. At present Ranbaxy have four plants for the manufacture of bulk drugs two at Mohali, one at Dewas (M.P) AND Another at Toansa near ROPAR. At present, Ranbaxy is the second most Indian company engaged in the manufacturing of Pharmaceuticals, Bulk Drugs and Fine Chemicals. RANBAXYs vast range of highly pure laboratory reagent and chemicals enjoy a place of pride in the market. IT trends, has rebuilt As a step towards leveraging information for value creation using its information backbone around an ERP application, along the focus on reengineering several business processes around the internet and has putting place business solutions that challenge existing ways of doing Business. The undying spirit of the companys

human assets and their intensive competitive and entrepreneurial energy has played a great part in transforming the company into a multicultural and multiracial team. Today, Ranbaxy is the largest exporter accounting for 12% of the industry exports pharmaceutical substance and dosages forms to over 50 countries with the internationals sales comprising of 45% of the total turnover.

VISION: GARUDA

During the year 2002, the company has evolved a 10-year vision till 2012, for sustaining significant growth consistent with its mission to be an international research based Pharmaceutical Company, under the rubric Vision Garuda, with increasing emphasis on Novel Drug Delivery Systems Research (DDR).

In licensing and out licensing, relationship with other important pharmaceutical entities, expansion of manufacturing facilities both in India and strategic overseas locations, revamping of organizational structures to cater to the wider and more dispersed span of operations, and streamlining and standardizing the business processes throughout the global organization, are other areas that receive focus and attention of management on priority. Mission To become a Research based International pharmaceutical company Vision-2012 Achieve significant business in Proprietary prescription products By 2012 With a strong presence in developed markets Aspirations-2012 Aspire to be a$5 billion company Become a Top 5 global generics player

Significant income from Proprietary products

OPERATING JOINT VENTURES AND SUBSIDIARIES BRAZIL CHINA : : Ranbaxy S.P. Medicamentos Ltd. Ranbaxy (Guangzhou China) Ltd.

EGYPT GERMANY HONG KONG INDIA

: : : :

Ranbaxy Egypt Ltd. Basics Gmb H. Ranbaxy (Hong Kong) Ltd. Rexcel pharmaceuticals Ltd., Solus pharmaceuticals Ltd., Vidyut Travel Services ltd.

IRELAND MALAYSIA NETHERLANDS

: : :

Ranbaxy Ireland Ltd. Ranbaxy (Malaysia) Sdn. Bhd. Ranbaxy Pharmaceuticals B.V.

NIGERIA PANAMA POLAND SOUTH AFRICA THAILAND

: : : : :

Ranbaxy Nigeria Ltd. Ranbaxy Panama SA. Ranbaxy Poland Sp. Zo. Ranbaxy (SA) (Pty.) Ltd. Unichem pharmaceuticals LTD., Unichem Distributors Ltd. Part, Ranbaxy Unichem CO.Ltd.

U.K USA

: :

Ranbaxy (UK) Ltd Ranbaxy pharmaceuticals Inc. Ohm Laboratories Inc.,

Ranbaxy Schein Pharma, LLC VIETNAM : Ranbaxy Vietnam Company Ltd.

ALLIED BUSINESSES Ranbaxy Animal Health The Animal Health division saw an encouraging growth despite the prevailing poor market conditions. The division grew at twice the growth rate recorded in the industry. On the basis of having a vast dome satiated animal population, the livestock, poultry business and pets business are among the fastest growing sectors in India. A vast infrastructure of veterinary colleges, agricultural institutes, technologists and researchers are helping farmers to source healthy, cost effective products. In conjunction with the present scenario, the AHC division of Ranbaxy Laboratories Limited has introduced several latest generation products.

Ranbaxy Fine Chemicals Limited (RFCL) The division ranked 4th in the industry and captured 11% market share. RANKEM is established as a powerful brand, RFCL's brand for its range of Reagents is now synonymous with excellence in reagents and fine chemicals in the country. The focus of business remains on developing extensive customer relations; enhancing service levels and enriching the product mix

with the help of a qualified and competent marketing and sales team

Diagnostics The diagnostics division has

aggressively focused on market expansion activities based on strategy of reliability, quality products and efficient service. Introduction of products in Point of Care markets has expanded market presence and over the next 1 2 years this segment will see considerable expansion in line with world trends. The Dade Behring segment has increased its installation base by 60% in leading hospitals and laboratories. Plans are afoot for the introduction of more parameters for the Point of Care market and the launch of Special Chemistries, a range of drug assays, plus an entry into automated microbiology in both the Base and Dade Behring business areas.

The company has also witnessed significant milestones in the area of Novel Drug Delivery Systems (NDDS). The company has entered into strategic business arrangements with companies such as Bayer AG, Glaxo-Wellcome, Eli-Lilly etc. for production and co-marketing operations. Many innovative developments have been taking place in recent times. The

companys research team is capable of developing one NDDS product every 12 to 18 months. Also, two new products: Roletra-D and Altiva-D, will soon be launched in India. In order to expand and promote global growth, the company opened several new markets during the year, notably in Brazil, where 25 filings were undertaken in a span of 2-3 months. The company has planned to build and protect intellectual property with the help of IPC, which addresses all matters pertaining to patents. CQA supervises the implementation of standard operating procedures (SOP) and ensures compliance to corporate quality assurance policy in all technological operations of the organization. The company is committed to invest 6% of the sales in R and D by 2003, of which 7% of the expenditure will be earmarked for research on New Drug Discovery and Novel Drug Delivery Systems. There will be continuous emphasis on augmenting R and D performance and productivity with advanced scientific and technological tools.

VALUES OF RANBAXY LABORATORIES LIMITED 1. Achieving customer satisfaction is fundamental to their business. 2. Practice dignity and equity in relationships and provide opportunities for people to realize their full potential. 3. Ensure profitable growth and enhance wealth of shareholders. 4. Foster mutually beneficial relationships with all their business partners. 5. Manage their operations with concern for safety and environment. 6. Be a responsible corporate citizen.

OBJECTIVES OF RANBAXY LABORATORIES LTD. 1. 2. 3. 4. 5. 6. To be a leader in the Pharmaceutical industry. To be a profitable company with a steady growth in earnings. To set an example as a socially responsible company. To diversify in health care related areas. To strive for excellence and continuous improvement in all spheres. To improve the quality of life of people by providing better services and quality products.

Environment, Health and Safety [EHS] Caring for the Environment is a core corporate value and as a part of this commitment. The Company enunciated its EHS policy in 1993. The Companys EHS policy provides for the creation of a safe and healthy workplace and a clean environment for employees and the community. It aims at higher international standards

in plant design, equipment selection, maintenance and operations. The policy seeks to manufacture products safely and in an environmentally responsible manner. The implementation of the EHS Policy is ensured by institutionalizing a robust EHS Management system, adequately supported by well defined organizational structure. As a part of EHS processes at the corporate level, besides laying down guidelines on systems, policy and training, the corporate EHS office monitors compliance, maintains and disseminates information on laws and regulations. EHS performance review meetings are held on regular basis to monitor the progress against agreed EHS improvement plans. Close cooperation between all units and individuals is the key to maintaining high standards of environment protection and safety in all the plants. The key processes at location level comprise of regular safety surveillance, inspections & audits, Permit to work system for operational / maintenance safety, Fire prevention & protection activities, operation of the ETP/Incinerator, disposal activities related to hazardous wastes, regular monitoring of the environment internally and also through approved laboratories. Monthly reports address EHS initiatives, compliance & various records under the statutory requirement, training of employees including contract employees on EHS awareness, interaction with the residential associations/nearby community etc., celebration of National safety day, fire day, Environment day etc. for EHS awareness among employees. The manufacturing facilities for bulk drugs and dosage forms comply with the stringent requirements of Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP) and are approved by International health and regulatory Agencies like FDA - USA, MCA UK, WHO etc. These practices and approvals ensure that an effective framework is always in place, not only for manufacture of high quality products, but also for effective use of resources and reduction of wastes as well as high safety & hygiene standards. Ranbaxy has made significant improvements in process safety of the existing manufacturing facilities by providing extensive instrumented safety protection systems. The intended safety features are incorporated in the basic design of the new projects.

Investments have been made on process improvements as well as effluent treatment plant up-gradation using the latest membrane based technology, multi-effect thermal evaporation system and state-of-the-art Incinerator. These investments have helped to reduce discharges of contaminants into the environment. With the facilities installed at Toansa for recycling of the treated effluent, the site has achieved the status of zero discharge site. The Company also engages with the concerned authorities and industry in devising responsible laws, regulations and standards and thus making safety, occupational health & environmental information and expertise available to its employees and the community at large. Ranbaxy has made EHS concerns and practices a necessary factor in appraising its employee performance. The Company also accords a very high priority to hygiene monitoring at work place and health assessment of all employees at site. The plant and processes are continuously upgraded to improve hygiene and health standards. Necessary training is imparted to the employees to enhance their awareness towards health related matters. Safety knowledge of the employees is constantly updated through various external and in-house training programs, including special training programs by overseas experts & consultants. Moving up the value chain, the company identified Consumer Healthcare as its new business area in the year 2001. Ranbaxy Global Consumer Healthcare (RGCH) was launched in October 2002 with a portfolio of 4 switch brands: Revital, Pepfiz, Gesdyp & Garlic Pearls. Since these brands were already popular amongst consumers and represented the leading common ailment categories like VMS (Vitamins & Minerals Supplement), this portfolio was carefully created for the introduction of RGCH to the Indian market. Subsequently in 2004, RGCH launched its first herbal range of products through New Age Herbals (NAH) with products offering remedy in categories of Cough & Cold (Olesan Oil & Cough Syrups) and Appetite Stimulant (Eat Ease). VARIOUS DIVISIONS OF RANBAXY LABORATORIES LTD. 1. Chemical Division

2. 3. 4. 5. 6. 7. 8. 9.

Diagnostic Division Stan care Division Curradia Division International Division Pharmaceutical Division Technical Division Corporate Division Animal Health Care Division

DIVISIONS IN VARIOUS GEOGRAPHICAL AREAS 1. India and Middle East 2. Europe, CIS and Africa 3. Asia Pacific and Latin America 4. North America

JOINT VENTURE OF THE COMPANY.

2000

Ranbaxy files IND Application for Asthma Molecule- RBx4638, after successful completion of pre-clinical studies.Ranbaxy acquires Bayers Generics business (trading under the Name of Basics) in Germany. Ranbaxy forays into Brazil, the largest pharmaceutical market in South America and achieves global sales of U.S. $ 2.5 million in this market.

2001

Ranbaxy took a significant step forward in Vietnam by initiating the Setting up of a new manufacturing facility with an investment of U.S. $ 10 million. Ranbaxy achieved a turnover of U.S. $ 502 million for the year 2002 and moved closer to achieving a target of 1 billion dollar by 2004.

2002

Receives approval from FDA to market Midazolam Hydrochloride Syrup 2 Mg base/ ml. Ranbaxy receives and approval from FDA to manufacture Suspension, Terazosin and market + Cefpodoxime Capsules and Proxetil for Oral Us, Oral Lisinopril Hydrochlorothiazide Tablets

Hydrochloride

Amoxcillin

suspension USP.Heralding the companys entry into the Indian OTC market. 2003 Ranbaxy received the economic times award for corporate excellence-for the company for year.ranbaxy signed an agreement toacquire RPG(aventis) SA along with its fully owned subsidiary,OPIH SARL,in france

2004

Ranbaxy launched its first range of herbal projects.

2005

Acquisition of additional stake in Ranbaxy Farmaceutica Ltda., Brazil Ranbaxy announced the acquisition of Be-Tabs Pharmaceuticals (Pty) Limited

2008

Acquired by the Japanese giant, the $9.62 billion Daiichi Sankyo, ranked No. 3 in Japan

BRIEF INTRO OF RANBAXY PLANTS IN INDIA In the chemical division, various bulk drugs are manufactured. The chemical division had three units in Punjab. One is located at Toansa, two are located at Mohali and one unit is located at Dewas near Indore in Madhya Pradesh, where Ciprofloxacine is manufactured. In the plant of the chemical division, various drugs like Antibiotics, Anti-malarial, Antibacterial and Anti-ulcer are manufactured. One of the older plants of Ranbaxy was closed after the accident in June 2003.the second one is still working. The 1991, the Toansa plant started functioning in 1992 and the Dewas plant started functioning in 1999. Various plant heads independently manage all these plants. In each unit, separate facilities with respect to the manufacture of drugs, along with their manufacturing areas have been provided. This is required to reduce the chances of any cross contamination under the drug laws and to comply with good manufacturing practices. At Mohali plant, separate blocks have been provided for the preparation of each drug .The Toansa, Mohali and Dewas plants are planned in such a way that their system, facilities, manufacturing practices and standards meet the requirements of FDA. Mohali Plant also mainly in the manufacturing of Active Pharmaceutical Ingredients (API). The Plant is divided into two plant areas A8 and A9.

HE VARIOUS DEPARTMENTS

Human Resource Department The basic function of the human resource department in the modern corporate world is knowledge management. The HR department strives to maintain cohesiveness among employees. It also ensures interdepartmental cooperation in achieving targets. The appraisal system is also taken care by this department. The HR department delves deep into the employees psyche to analyze the positives and negatives of each employee, so that a proper system of delegation and / or empowerment can be evolved. Finance Department The finance department takes care of the regular financial needs of the company it ensures proper allocation of funds and takes care of the working capital requirements. It verifies capital raised by different departments and sends them for approval to the higher authorities. Stores Department The function of this department is to provide adequate and proper storage and preservation of various items to meet the demand of various other departments by proper issues and maintaining accounts of consumption. It also keeps a track of stock accumulation and abnormal consumption. Erection and Fabrication Department As the name suggests, this department identifies new projects and helps in erecting them. This department also undertakes major modifications of equipment.

ERP Department ERP department helps to integrate the entire enterprise starting from the supplier to the customer, covering financial and human resources. This will enable the enterprise to increase

productivity by reducing costs. It also ensures a single solution to the information needs of the whole organization. Production Department As a part of their ongoing commitment to produce hi-tech quality drugs and pharmaceuticals that take care of the specific needs of markets around the world, Ranbaxy Laboratories Limited has increased the investment in the production department. It is the most important department of the company and has the following objectives: 1. Improving volume of production. 2. Reducing rejection rate. 3. Maintaining rework rate. Engineering Department This department undertakes building, construction and maintenance. Maintaining service facilities such as water, gas, heating, ventilation, air conditioning, painting and plumbing are some of the other areas dealt by this department. This department also helps in maintaining electrical equipments such as generators, transformers, telephone system and electrical installation. Purchase Department The purchase department provides material to the factory without which the wheels of machines cannot move. The various functions performed by this department include: Securing good vendor performance, including prompt deliveries of supplies of acceptable qualities. 1. To develop satisfactory sources of supply and maintaining good relationships with the suppliers. 2. To pay reasonably low prices.

Quality Control/Quality Assurance Department The purpose of QC & QA departments is to ensure that the desired quality standard is achieved. It also ensures that the processing or fabrication of material conforms to the specific characteristics selected, to assure that the resulting product will in fact perform its intended function. PRODUCT REVIEW Ranbaxys therapeutic width covers five of the top six categories including Antiinfective, Gastrointestinal, Nutritionals, Cardiovascular, Central Nervous System, Respiratory, Dermatological and others. While anti-infective contribute 56% of the total sales, Ranbaxys other brands like Simvotin and Storvas in the cardiovascular segment, Serlift in CNS and Revital and Riconia in Nutritionals, are on their way to success in multiple markets. During Jan - Dec 2000, amongst the top products of Ranbaxy, Sporidex (Cephalexin) was the Number 1 brand, closely followed by Cifran (Ciprofloxacin).

Anti - Infectives Anti- infective has been the main driver of Ranbaxys sales. The important brands in this category are Cifran (Ciprofloxacin), Sporidex (Ciphalexin), Enhancin (Amoxyclav), Crixan (Clarithromycin), Vercef (Cefaclor), Oframax (Ceftriaxone), Cepodem (Cefpodoxime Proxetil), Zanocin (Ofloxacin), Ceroxim (Cefuroxime Axetil), and Loxof (Levofloxacin). Cifran (Ciprofloxacin) is the key brand in the anti- infective portfolio, with estimated sales of US $ 32 Mn, currently being marketed in 15 countries. Development of Ciprofloxacin once a day has been an important landmark achieved by Ranbaxy. The product has been licensed to Bayer. Cifran continues to be a dominant player in the quinolones market in India, China and Russia. Sporidex is another leading brand in Ranbaxys product portfolio with worldwide annual sales of US $ 35 Mn. It is available in eight different dosage forms including capsules, dry

powder for suspension, redimix, dispersible tablets, paediatric drops, soft gelatin capsules, sachet and advanced formulation for twice-daily administration. It is currently marketed in 15 countries. In India, Sporidex is the leading brand with a market share of 36% of the Cephalexin segment. Keflor is available in seven different dosage forms and is the third-largest selling brand for Ranbaxy worldwide. The dosage forms list includes capsules, dry syrup, modified release tablets, dispersible tablets, drops and redimix. Enhancin is expected to be the leading product in Ranbaxys product portfolio with estimated sales of US $ 45 Mn by the year 2005. The product will be rolled out to about 20 important markets during this period. Zanocin, with approximate sales of US $ 10 Mn, is the seventh-largest contributor to Ranbaxys total sales. Cepodem is currently available in three different countries outside India, and will be rolled out to 13 different countries in the near future. Cardiovasculars Cardiovascular is projected to be the second-best category for Ranbaxy. Statins have been the key drivers for this segment. The sale of Simvastatin has grown substantially in the past few years, a trend that is likely to continue in the future. In India, Simvotin (Simvastatin) is the market leader in the cholesterol reducer segment. Another leading brand in this category is Storvas (Atorvastatin). Storvas has been one of the fastest-ever to enter the top-300 brands list of the Indian pharma industry. Other global cardiovascular brands are Covance (Losartan) and Caslot (Carvedilol). Central Nervous System The Central Nervous Segment is one of the important focus areas identified by Ranbaxy, with Serlift being the key brand. In India, Serlift is number 1 amongst Sertraline brands. New product introductions will be drivers of growth in this category. Gastrointestinal

Currently, gastrointestinal drugs are the second-largest category for Ranbaxy. The key brands in this category include Histac and Romesac. The current annual sales of Ranitidine are estimated to be around US $ 16 Mn and the product is marketed in more than 20 countries.

Rheumatologicals The first generation Cox-2 inhibitors principally drive worldwide growth in rheumatology. This category is estimated to grow exponentially for Ranbaxy, with brands like Celecoxib. This year, Rofibax (Rofecoxib) introduced in India, has established itself as a leader in the Cox-2 inhibitor category and has overtaken all Celecoxib brands. It has been identified as a key Global brand for the future. Nutritonals Nutritionals have been a major contributor to Ranbaxys sales. Two of the important products in this category are Revital and Riconia. With annual sales estimated at about US $ 10 Mn, Revital contributes a significant share of total sales. It is a leading brand in India and has done exceedingly well in some parts of the world as an OTC product. Dermatologicals The dermatology category is mainly driven by India region and is likely to show a good growth pattern in the future. Some of the key brands doing well in this segment are Mobizox, Silverex, Moisturex, etc.