BECG

PROJECT ON
RANBAXY

Submitted to Submitted by

Prof.K.C.Prakash Group 4

Ankush goel 09BSHYD0132

Ashmeet singh 09BSHYD0184

Gaurav mathur 09BSHYD0289

Kunal Bhatia 09BSHYD0402

Rahul lunkad 09BSHYD0413

Table of contents
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i) Company profile 3
ii) Major players 5
iii) Ethical standards of company 6
iv) CSR 7
v) Karmayog CSR rating 13
vi) Corporate Governance 13
vii) Awards received 21
viii) Financial statement 22
ix) References 25

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COMPANY PROFILE

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

History:

Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese
company Shionogi. The name Ranbaxy is a portmanteau word from the names of its first
owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins
Ranbir Singh and Gurbax Singh. After Bhai Mohan Singh's son Parvinder Singh joined the
company in 1967, the company saw a significant transformation in its business and scale.

In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and
now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.

Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical

developers, though a significant percentage of their products are off-patent drugs that are
manufactured and distributed without licensing from the original manufacturer because the
patents on such drugs have expired.

On 10 June 2008, Japan's Daiichi Sankyo Co. agreed to take a majority (50.1%) stake in Ranbaxy,
with a deal valued at about $4.6 billion. Ranbaxy's Malvinder Singh will remain CEO after the
transaction. Malvinder Singh also said that this was a strategical deal and not a sell out.

On June 11, 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion. In
November 2008, Daiichi-Sankyo completed the takeover of the company from the founding
Singh family in a deal worth $4.6 billion by acquiring a 63.92% stake in Ranbaxy.

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The addition of Ranbaxy Laboratories extends Daiichi-Sankyo's operations - already comprising
businesses in 21 countries. The combined company is worth about $30 billion

KeyDates:
1962: Ranjit Singh and Gurbux Singh incorporated Ranbaxy to market pharmaceuticals in
Amritsar, India, and borrow funding from moneylender Bhai Mohan Singh.
1966: Bhai Mohan Singh took over Ranbaxy in lieu of repayment of the loan.
1967: His son Dr. Parvinder Singh joined the company, which begin producing generic drugs.
1969: Calmpose, a Valium generic, was launched, becoming the company's first success.
1973: Ranbaxy went public and built a new API chemicals facility in Mohali.
1987: The company builds a state-of-the-art API facility in Toansa in preparation for entry into
the U.S. market.
1993: A joint venture was launched in China; a new research-driven NCE and NDDS strategy was
launched.
1994: The company opened a new research and development facility in Gurgaon, India.
1995: The company acquired Ohm Laboratories in the United States and builds a new FDA-
approved production facility.
1998: Ranbaxy begins marketing its own branded drugs in the United States; the company
launches clinical trials on the first in-house developed molecule.
2000: Ranbaxy acquired Basics, Bayer's generics business in Germany; the company entered
Brazil.
2003: Ranbaxy successfully completed the first NCE phase I clinical trial; the company acquired
RPG (Aventis) in France, becoming the leading generics manufacturer for that market.
2005: The company launches a new $100 million production facility in Brazil.2008: Daiichi-
Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion

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COMPETITION

The following is a comparative analysis of Ranbaxy’s competitors:

COMPANY MARKET CAP SALES NET PROFIT TOTAL ASSETS

Sun Pharma 36,907.11 3,861.55 1,265.29 5,175.02

Cipla 24,701.88 5,624.91 1,081.49 5,919.16
Dr Reddys Labs 22,650.95 4,553.21 846.08 6,477.80
Ranbaxy Labs 20,231.96 4,782.76 571.98 7,482.99
Lupin 16,647.04 3,708.51 648.93 3,437.36
GlaxoSmithKline 15,868.69 1,892.96 512.29 1,764.57
Cadila Health 12,728.19 1,945.72 265.91 2,216.20
Piramal Health 10,386.91 2,666.21 443.22 2,161.59
Divis Labs 9,996.17 1,203.49 421.26 1,574.92
Glenmark 7,773.31 856.11 217.93 2,291.33

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ETHICAL STANDARDS FOLLOWED BY THE COMPANY

 Achieving customer satisfaction is fundamental to our business

 Provide products and services of the highest quality

 Practice dignity and equity in relationship and provide opportunities for our people to
realize their full potential

 Ensure profitable growth and enhance wealth of the shareholders

 Foster mutually beneficial relations with all our business partners

 Manage our operations with high concern for safety and environment

 Be a responsible corporate citizen

The code of conduct document is a comprehensive compendium of ethical codes, which will
guide Ranbaxy corporate practices. It lays down specific guidelines for all employees in various
operational areas. These include business ethics, employment policies, equal employment
opportunities, sexual harassment, health, safety & environment. The Code also seeks to
prevent fraud and prescribes a due re-dress mechanism. To ensure that the Code is followed in
letter and spirit, the Company has established a Code Compliance Cell. The Cell ensures that the
Code is respected and appropriate action is taken to address violations, if any. The Code
Compliance Cell is proposed to operate at three levels viz. regional/country/plant to ensure
complete compliance. It is the responsibility of each Manager to ensure that the code is
adhered to.

Adhering to its firm commitment to ethical business conduct and corporate social
responsibility, Ranbaxy voluntarily discontinued its generic composition of an Arthritis drug,
Valdecoxib, following US FDA's cautionary views on innovator Pfizer's brand, Bextra, in the US.
The US FDA expressed its view that the overall risk versus benefit profile of the drug was
unfavorable. Ranbaxy was the first to launch this drug in India and also the first to discontinue it
from the market, without waiting for any formal directions from the government in this regard.

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The Company's prompt action was in line with its philosophy of being a responsible corporate
citizen.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Commitment and Public Service is deeply embedded into the cultural fabric of
Ranbaxy. Over the years serious efforts have been directed towards making a meaningful
contribution to uplifting and transforming the lives of the underprivileged. The Company is also
extremely conscious of its duty and responsibility towards the environment. Ranbaxy makes
sincere efforts to promote good health, social development and better environment, through
various Company programs that contribute to sustainable, all round growth.

In 1978, in the wake of the grim health scenario in India, Ranbaxy realised the urgency to reach
out to the underprivileged sections of society that had little or no access to basic healthcare.
The Company took a conscious decision to contribute towards the national objective “Health
For All”. Towards this end, the “Ranbaxy Rural Development Trust” was set up and the first well
equipped mobile healthcare van was introduced, in certain underserved areas of Punjab. As the
programme grew, the Ranbaxy Community Healthcare Society (RCHS), an independent body,
was created, that is devoted to the health of the disadvantaged. Today, multiple well equipped
mobile healthcare vans and an urban family welfare centre, run by Ranbaxy, benefit over 2 lakh
people, in certain identified areas in the states of Punjab, Haryana, Himachal Pradesh, Madhya
Pradesh and Delhi. The programme is based on an integrated approach of preventive,
promotive and curative services, covering areas of maternal child health, family planning,
reproductive health, adolescent health, health education including AIDS awareness.

Ranbaxy has entered into a Public Private Partnership (PPP) with the Punjab State Government,
to deliver healthcare services in identified districts of Punjab.

SERVICES PROVIDED

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  Maternal &Child health
o Antenatal Care
o Immunization – (Tuberculosis, Diptheria, Polio, Whooping Cough, Tetanus &
Measles)
o Growth Monitoring
o Safe Motherhood
o Post natal care
o Family Planning
o Sterilization (Referral and follow up)
o Provision of Family Planning Methods (Copper T, Oral Pills, Condoms)

 Prevention and Treatment of Sexually Transmitted Diseases & Reproductive Tract

Infections
 Health Education including AIDS awareness

RANBAXY SCIENCE FOUNDATION
Ranbaxy Laboratories Limited incorporated Ranbaxy Research Foundation in 1985 and was later
reconstituted as a separate society as Ranbaxy Science Foundation and registered under the
Societies Act in May 1994 with an implicit mission of giving impetus to research activity and
help in reviving India’s great scientific tradition. The Foundation instituted Ranbaxy Research
Awards to recognize original outstanding contributions in the fields of Medical and
Pharmaceutical Sciences. Every year the Foundation invites nominations for 4 awards – 3
Awards for Rs. 1, 00,000/- each in the fields of Medical Sciences in Basic. Applied and Clinical
and 1 Awards of Rs. 1,00,000/- in the field of Pharmaceutical Sciences. So far 104 scientists have
been honoured by the Foundation.

Ranbaxy Science foundation (RSF) is a non profit organization dedicated to promote scientific
endeavours in the country by encouraging, rewarding and channeling national and international

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knowledge and expertise on subjects connected with treatment of diseases afflicting mankind.
To achieve these objectives, the Foundation conducts Round Table Conferences on topics
concerning public health and symposia on topics at the cutting edge of research in medical
sciences to explore the latest in the selected area of specialty and its potential application for
the benefit of mankind.

Being committed to recognising and furthering excellence, the Foundation has also initiated
“Research Scholarship Awards for the Young Scientists” with an aim to stimulate their interest
in research.
Late Prof. V. Ramalingaswami, was the founder Chairman of the Foundation.
Dr. Nitya Anand a renowned pharmaceutical scientist is currently the Chairman of the Ranbaxy
Science Foundation.

ENVIRONMENT, HEALTH AND SAFETY 

Ranbaxy is fully committed to achieve Environment, Health & Safety (EHS) excellence and
conduct its activities in the most responsible manner. Over the years, importance of EHS has
been stressed and extensively promoted as a corporate culture within Ranbaxy. It is also clearly
reflected and well defined into Ranbaxy’s value statements of “Managing our operations with
high concern for safety and environment” and “Be a responsible corporate citizen”.

Thinking and working responsibly so that the employees, the community at large, and the
environment including the natural resources, are protected leaving minimal environmental
footprints, is integral to Ranbaxy’s EHS philosophy. On the road to EHS excellence, Ranbaxy has
adopted a top down approach and embraced the principles and codes of best EHS practices
into its redefined world class EHS Management System.

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EHS GUIDING PRINCIPLES 
The EHS Management System is developed on the framework of six Guiding Principles.

 Management and EHS improvements

 Process and Equipment EHS
 Employee/Contractor Occupational Health and safety
 Pollution Prevention
 Community awareness and Emergency Response
 Product Stewardship

ANTI MALARIA PROJECT

Background

Malaria is one of the most persistent and deadly diseases, claiming the lives of more than one
million people every year. The majority of its victims are children under the age of five and
pregnant women in developing countries.

Malaria is a major public health problem in more than 90 countries inhabited by more than 2.4
billion people – 40% of the world’s population. The disease is estimated to kill a child every 30
seconds and to cause up to 600 million new infections worldwide annually.

Concerns in the Existing Treatments for Malaria

There are more people dying of malaria today than 30 years ago. The main cause of the
resurgence is drug resistance.

 Rising resistance to anti-malarial drugs

 Universal Chloroquine resistance to Plasmodium falciparum 

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  Development of resistance not only compromises the efficacy of existing anti-malarial
drugs but also threatens to pre-maturely terminate the useful therapeutic life of new
anti-malarial drugs
 Lack of effective, affordable and appropriate treatment options

Ranbaxy's Anti-Malaria collaborative research program on Track

Ranbaxy has been working on the anti-malaria research project since May 2003. Although anti-
malarial drugs have a large market, it is a market with very limited resources. Together with the
challenges of drug resistance, poor health systems, lack of affordable, safe and convenient
treatment options, malaria treatment represents one of the largest unmet medical needs.
Ranbaxy is developing a synthetic peroxide anti-malarial drug in order to address this unmet
need. The company has commenced Phase-III clinical trials for its anti-malarial new drug,
Arterolane + PQP in India, Bangladesh and Thailand.

The Company is committed to developing a drug that is not only safe and effective, but also
affordable to people in India, Africa and other disease endemic countries.

Based in a malaria endemic country, Ranbaxy deeply identifies with the continuing crisis that
pandemics like malaria are causing in developing countries. The Company has therefore
committed its expertise in R&D to work towards a breakthrough in the treatment of this
important disease.

ANTI HIV/AIDS
Ranbaxy comprehensive anti-HIV portfolio comprises Bio-Equivalent Anti-Retrovirals (ARVs) and
Anti-Infectives for Opportunistic infections Ranbaxy, in its endeavor to make ARVs accessible to
patients around the world, is leveraging its global network of offices, affiliates, joint ventures
and alliances. With Ranbaxy products being marketed in over 125 countries and ground

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operations in 46 countries, Ranbaxy provides pre & post sales support to institutions, NGOs,
and Ministries of Health, making Ranbaxy ARVs available in their respective treatment
programs Several humanitarian and government programmes have sourced ARVs from
Ranbaxy. Some of them being MoH-Nigeria, MSF in various countries, MDM-Cambodia, MEDS
in Kenya, etc. In Zambia, the Ministry of Health has lauded Ranbaxy's initiative in making
available quality ARVs at reasonable prices in that country. In Latin America, Ranbaxy's ARVs
have been registered in Brazil, Peru, Venezuela and Guatemala among other countries. In South
East Asia, ARVs are being marketed in Vietnam, Cambodia and Myanmar already. Besides,
regulatory filings are on in several countries in these regions.

Encouraged by the positive response to its efforts to make quality anti-HIV generics, Ranbaxy is
committed to working on all possible fronts and seeking partnerships to improve access to
these medicines. Ranbaxy offers a complete basket of pharmaceuticals for several first line
HAART regimens. The current portfolio is the largest range of bio-equivalent generic ARVs
available from a single company. These products are manufactured at Ranbaxy's WHO
prequalified and USFDA approved facilities.

 Several Ranbaxy ARVs approved by USFDA and WHO

 First Asian pharmaceutical company to get approval for a generic ARV from USFDA
 Over 250 approvals of ARVs across 40 countries, with 130 more in pipeline
 Only company using both WHO & USFDA approved API supplier
 Bioequivalence studies conducted at leading CROs in North America
 All ARVs comply with Zone IV and Zone II stability requirements
 Leading supplier of ARVs to global NGOs, Institutions & Government programs
 Ranbaxy's ARVs have catered to treatment programs in over 50 countries globally
 Ranbaxy's quality FDCs reduce pill burden and improve patient compliance

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CSR RATINGS GIVEN BY KNOWN ORGANIZATIONS

Karmayog CSR ratings

2007 2008 2009

2 2 2

CORPORATE GOVERNANCE

At Ranbaxy Laboratories Ltd., the Board of Directors, management and employees are
committed to upholding high standards of corporate governance and business ethics. They
firmly believe that timely disclosures, transparent accounting policies, rigorous internal control
systems and a strong and independent Board go a long way in preserving shareholder trust
while maximizing long-term shareholder value.

The Securities and Exchange Board of India (SEBI) through Clause 49 of the listing agreement
with the stock exchange regulates corporate governance for listed companies. Ranbaxy is in full
compliance with Clause 49.

BOARD OF DIRECTORS

Ranbaxy’s Board of Directors comprises of eminent individuals from diverse fields. The Board
acts with autonomy and independence in exercising strategic supervision, discharging its
fiduciary responsibilities, and ensures that the Management observes the highest standards of
ethics, transparency and disclosure. They review all significant business decisions, including
strategic and regulatory matters. Every member of the Board, including the non-executive
directors, has full access to any information related to the company.

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 Dr. Tsutomu Une Mr. Arun Sawhney Mr. Takashi Shoda
Chairman Managing Director Non Executive &
Non Executive & Non Independent Director
Non Independent Director

Dr. Anthony H. Wild Mr. Rajesh V. Shah Mr. Akihiro Watanabe

Independent Director Independent Director Independent Director

Mr. Percy K. Shroff
Independent Director

DIRECTORS’ CODE OF CONDUCT

• A Director must act honestly, in good faith and in the best interests of the Company as a
whole.

• A Director has a duty to perform the functions of office and exercise the powers attached to
that office with a degree of care and diligence that a reasonable person would exercise if they
were a Director in the same circumstances.

• A Director should consider matters before the Board having regard to:

 Any possible material personal interest he or she may have in the subject matter;
 The amount of information appropriate to properly consider the subject matter; and
 What is in the best interests of the Company.

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• A Director must recognize that, in acting as a Director of the Company his or her dominant
purpose or object must be to serve the interests of the members of the Company as a whole,
not the interests of any particular group of Directors or stakeholders or the Director’s personal
or commercial interests. In circumstances of insolvency or near insolvency, the duty to act in
the best interests of members is overridden by a duty to act in the best interests of creditors.

• A Director must not make improper use of information acquired as a Director to gain a
personal advantage or to cause determent to the Company.

• A Director must not place himself or herself in a position where there is a reasonable
possibility of conflict between his or her personal or business interests, the interests of any
associated person, or his or her duties to any other company, on the one hand, and the
interests of the Company or his or her duties to the Company, on the other hand. The action
which a Director will be required to take if he or she is faced with an actual or potential conflict
of interest or duties in relation to a particular matter being considered by the Board will depend
on the nature and circumstances of the conflict and may include any of the following:

 Fully and frankly informing the Board about the circumstances giving rise to the conflict;
 Abstaining from voting on any motion relating to the matter and absenting himself or
herself from all board deliberations relating to the matter; or
 Resigning from the Board.

If a Director believes that he may have a conflict of interest or duty in relation to a particular
matter, the Director should consult with the Chairman.

• A Director must bring an enquiring, open and independent mind to Board meetings, listen to
the debate on each issue raised, consider the arguments for and against each motion and reach
a decision that he or she believes, to be in the best interests of the Company as a whole.

• An opportunity must be provided for a Director to put his or her views on issues before the
Board or a Committee on which he or she sits. While Directors must treat each other with
courtesy and observe the other rules in this Code, Directors should be able to engage in
vigorous debate on matters of principle.
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• A Director must not disclose the content of discussion at Board meetings or Committee
meetings outside appropriate and reasonable circles within the Company with a legitimate
interest in the subject of the disclosures, unless that disclosure has been authorized by the
Company, or is required by law.

• A Director generally must not engage in conduct, or make any public statement likely to
prejudice the Company’s business or likely to harm, defame or otherwise bring discredit upon
or denigrate the Company, fellow Directors or staff. A Director may make such a statement only
if the Director believes in good faith that it is in the best interests of the Company as a whole to
make such a statement.

Committees appointed by the Board focus on specific areas and take informed decisions within
the framework of delegated authority, and make specific recommendations to the Board on
matters in their areas or purview. All decisions and recommendations of the committees are
placed before the Board for information or for approval.

BOARD LEVEL
COMMITTEES

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 AUDIT COMMITTEE SHAREHOLDERS'/INVESTO SCIENCE COMMITTEE
RS' GRIEVANCE AND
Mr. Akihiro Watanabe Dr. Tsutomu Une
SHARE TRANSFER
COMMITTEE Dr. Anthony H. Wild
Dr. Tsutomu Une
Dr. Tsutomu Une
Dr. Anthony H. Wild Mr. Takashi Shoda
Mr. Percy K. Shroff
Mr. Percy K. Shroff
Mr. Atul Sobti
Mr. Rajesh V. Shah

COMPENSATION COMMITTEE

Dr. Tsutomu Une

Dr. Anthony H. Wild

Mr. Percy K. Shroff

Mr. Rajesh V. Shah

Mr. Atul Sobti

AUDIT COMMITTEE

The Audit Committee has been constituted as per Section 292A of the Companies Act, 1956 and
the guidelines set out in the Listing Agreements with the Stock Exchanges. The terms of
reference include -  
 
 * Overseeing financial reporting processes. 
  * Reviewing periodic financial results, financial statements and adequacy of internal control
systems. 
  * Approving internal audit plans and reviewing efficacy of the function. 
  * Discussion and review of periodic audit reports. 
 * Discussions with external auditors about the scope of audit including the observations of the

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auditors. 
 * Recommend to the Board appointment of the statutory auditors and fixation of audit fees. 
 * Reviewing with the management, the statement of uses / application of funds raised through
an issue (public, rights, preferential issue of securities etc.) 
 * Reviewing with the management the performance of statutory and internal auditors.  

COMPENSATION COMMITTEE

The Compensation Committee has been constituted as per the provisions set out in the SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. The
terms of reference include -  
 
 * Administration and superintendence of Employee Stock Option Schemes (ESOS).  
 * Formulation of the detailed terms and conditions of the ESOS. 
 * Grant of stock options. 
 * Recommendation for fixation and periodic revision of compensation of the Managing
Director and Executive Directors to the Board for approval and review and approve
compensation policy (including performance bonus, incentives, perquisites and benefits) for
senior management personnel.

SHAREHOLDERS'/INVESTORS' GRIEVANCE AND SHARE TRANSFER COMMITTEE

 The Shareholders'/Investors' Grievance and Share Transfer Committee has been constituted as
per the provisions set out in the Listing Agreement. The terms of reference include - 
 
 * Approve transfers, transmissions, issue of duplicate certificates, transpositions, change of
names etc. and to do all such acts, deeds, matters and things as connected therein. 

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 * Review complaints of the shareholders and action taken by the Company. 

SCIENCE COMMITTEE

Terms of Reference of Science Committee include - 

  * Approval of focus areas of research, especially New Drug Discovery Research (NDDR) and
Novel Drug Delivery Systems (NDDS); and 
 * Monitoring progress of NDDR and NDDS. 

MANAGEMENT COMMITTEE: Dissolved.

INFORMATION TO SHAREHOLDERS

The Company regularly intimates unaudited as well as audited financial results to the Stock Exchanges
immediately after these are taken on record by the Board. These financial results are displayed on the
website of the Company www.ranbaxy.com. Further in compliance of Clause 52 of the Listing
Agreement, the above information and other communication sent to Stock Exchanges have also been
filed under Corporate Filing and Dissemination System (CFDS) and are available at website,
www.corpfiling.co.in. 
 
 The official news releases and the presentations made to the investors/analysts are also displayed on
the Company's website.  

WHISTLE BLOWER POLICY

 
 The Company has laid down a Code of Conduct for all its employees across the organization. The Code
of Conduct of the Company lays down that the employees shall promptly report any concern or breach
and suggests not to hesitate in reporting a violation or raising a policy concern to the Code Compliance
Cell or concerned superior. The Code provides that the Company shall support and protect employees
for doing so. The Company does not have a Whistle Blower Policy. 

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AWARDS AND RECOGNITIONS

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  Ranbaxy received the prestigious Frost & Sullivan Award 2004 for Customer Value in
recognition for its sustained and consistent efforts, to bring about an easy access for
Anti-retroviral to millions of people suffering from HIV/AIDS in the developing countries
at affordable prices.

 In recognition of the Lowest Average Weighted Frequency Rate, the manufacturing

facilities at Toansa received the 'National Safety Award' as a runner up for the year.

 Ranbaxy's Toansa location also won the 'National Award for Excellence' in Energy
Management as an 'Excellent Energy Efficiency Unit' for the year 2004.

 Ranbaxy's Toansa plant bagged the prestigious 'Greentech Environment Excellence

Silver Award' in the pharmacy sector for the year 2003-04, given away by the Greentech
Foundation, a Non Governmental organization.

 Ranbaxy (Guangzhou China) Limited (RGCL) was conferred with 'Yangcheng Friendship
Award', the top felicitation for foreign investments, for its contribution to Guangzhou's
(Yangcheng's) local economy and the development of society.

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FINANCIAL STATEMENT OF RANBAXY
Ranbaxy achieves $ 1 billion revenue and $ 282 mn pat for h1’2010. after record q1 sales, q2
growth at 22%

The Board of Directors of Ranbaxy Laboratories Limited (RLL) at their meeting held today, took
on record the unaudited results for the quarter ended June 30, 2010 (the “Quarter”). 

Key Financial Highlights

Financial Performance for the half year ended June 30, 2010 (H1’10)

 Consolidated sales were at USD 999 Mn (Rs 45,931 Mn), a growth of 42% over H1’09.
[H1’09: USD 682 Mn (Rs. 33,537 Mn)].
 Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) was USD 313 Mn
(Rs. 14,410 Mn), a margin of 31% to sales. [H1’09: USD 2 Mn (Rs. 106 Mn)].
 Profit after tax was USD 282 Mn (Rs. 12,951 Mn), a margin of 28%. [H1’09: loss of USD
(14) Mn, (Rs. (679) Mn)]. Operational PAT, i.e. PAT excluding forex and exceptional items
was USD 205 Mn (Rs. 9,442 Mn). [H1’09: USD (13) Mn (Rs. (639) Mn)].

Commenting on the business results for the Quarter, Mr. Atul Sobti, CEO and Managing
Director, Ranbaxy, said, “The Company delivered another quarter of good growth as a result of
our effort to maximize First-to-File opportunities in the USA, and a healthy operational
performance led by key geographies. The transfer of New Drug Discovery Research assets to
Daiichi Sankyo will provide a sharper focus to our R&D effort, in our core area of generics.  This
is in line with our commitment to optimize synergies through the Hybrid Business Model.” Mr.
Sobti further added, “I am proud to share that Ranbaxy has stepped into its 50th year of
incorporation. I would like to take this opportunity to thank all stakeholders for reposing their
confidence, and being part of this enriching journey.”

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Key Highlights/Developments

 The Company’s operating margins improved during the Quarter vis-à-vis corresponding
previous quarter, on account of sales of First-to-File (FTF) products in the USA, and
balanced growth across markets.
 Most markets/businesses grew during the Quarter with robust growth across some of
the Company’s key markets/ businesses, including USA; Europe, led by Romania; CIS led
by Russia, and India.
 To sharpen its focus on generics, the Company reached an agreement to transfer its
New Drug Discovery Research assets, to Daiichi Sankyo India Pharma Pvt Ltd (DSIN).
 Ranbaxy launched Atorvastatin in Canada and South Africa. The launch in Canada, was
under the Company’s global settlement with Pfizer®. In South Africa, Ranbaxy was the
first to launch a generic version in the market.
 Valacyclovir, an FTF product in the USA, achieved a peak market share of 74% before the
end of exclusivity during the Quarter.
 The Company introduced Daiichi Sankyo’s innovative anti-platelet drug Prasita™
(Prasugrel), in India. During the Quarter, Ranbaxy launched 31 new products in India,
including 3 in-licensed products.
 During the Quarter, emerging markets recorded sales of USD 230 Mn, a growth of 6%,
and contributed about 50% to global sales. Sales in developed markets amounted to
USD 203 Mn, a growth of 63%.
 North America region recorded sales of USD 160 Mn (Rs. 7,376 Mn) for the Quarter, a
growth of 100%.
 Europe recorded sales of USD 69 Mn (Rs. 3,195 Mn), a growth of 15% during the
Quarter.
 India sales were at Rs. 4,487 Mn (USD 98 Mn), almost at the same level as previous
corresponding quarter.Continuing its healthy performance, the Consumer Healthcare
business recorded a growth of 24% during H1’10 and attained No. 1 rank in its
represented market during the Quarter.

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  The Africa region achieved sales of USD 39 Mn (Rs. 1,774 Mn), a growth of 6% during
the Quarter. For H1’10, sales were at USD 77 Mn (Rs. 3,544 Mn), up 16% from the
previous year.
 Rest of the World sales were at USD 45 Mn (Rs. 2,072), a de-growth of 11%. For H1’10,
sales were at USD 83 Mn (Rs. 3,849 Mn), a de-growth of 10%. This was largely on
account of divestment of certain businesses in China and Japan. Growth, excluding
divested businesses, was 8% for the Quarter.

 No company functions in an isolated environment. The final flavour of our Corporate

Citizenship will be significantly defined by how well we pursue causes that are beyond
our immediate business concerns. It is a matter of pride that your Company is well
recognised for performance in the complex world of global pharma and has earned
accolades from diverse quarters for itself and the Country. Somewhat less known, are
our efforts in Community Health and our support of research through the Ranbaxy
Science Foundation. In the coming years, we hope to further enhance these efforts and
extend such contributions to other areas as well.

References

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1) http://www.karmayog.org/csr2009/index.aspx?pageIndex=4

2) www.ranbaxy.com

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