Emcure Pharmaceuticals Ltd

It gives me great pleasure to inform you that Emcure has done well across all areas in FY10. As a result, sales have grown by 25% over the previous year. At the same time, we have consciously monitored our spending. Given our track record, I am again very optimistic and bullish about the New Year. Domestic Market

We continued to improve our MAT ORG IMS ranking and now feature among the top 15 companies. We had several new launches this year that did very well- especially, Infen, Proxym, Explode, Sevcar, Emfolic DHA. Overall, we maintained our leadership in our strong segments such as gynaec, cardio vascular and nephrology and increased our focus on high growth segment such as pain management, wellness, oncology and gastro. We continue to enjoy tremendous credibility and respect with the physician community due to our focus on technology and quality. Export Market

In the export markets, we had a great year with exponential growth. The sales were driven by a good mix of own technologically differentiated products as well as CRAMS business. With 95 new registrations, we have expanded our reach to 20 new countries. Our strategy is focus on niche and profitable segments with differentiated products like chiral molecules, biosimilars, oncology and nephrology. We take immense pride in the fact that for CRAMS, we have partnered with the top branded and generic companies. Our Subsidiaries

Zuventus continues to be a brand builder and maintain its share of the highly competitive cephalosporin market , and will also now focus on the chronic segments. Emcure USA continues to make breakthroughs with its focus on research and innovation. We got approval for a couple of niche and profitable ANDAs this year. Gennova has added to our pride significantly by its foray into the malaria vaccine research program in association with Bill and Melinda Gates Foundation. We now have Prof. Ganguly on the Board of Gennova and with his able guidance; we hope to introduce several more innovative products in the coming years. Elaxim continues to do very well Employee focus and CSR

As a company, employee welfare and growth continues to be a focus area. We want to make sure that all our Emcureans have a challenging work environment as well as pride in being associated with a technology driven company. We continued our CSR programs in HIV, anaemia. In addition, we have participated in several health camps and significantly contributed to national calamities like Bihar floods. Future Outlook

Emcure is poised to take a big leap. We expect to increase our exports significantly and to continue our profitable growth in domestic markets. We are also excited about our new facilities, Oncology and Jammu, coming into operation this year. We will continue our focus on execution. We want to make sure that everyone associated with Emcure---whether it is our employees, physician community, shareholders and other associates---continue to be passionate and excited about our vision---to be a technologically driven company that provides affordable and quality healthcare.

Emcure’s Vision is to manufacture innovative, high-tech products, which will satisfy the needs of customers. To this we are firmly committed. Technology and R&D play a vital role in all our endeavors. All our policies are market driven with the customer being the focal point. Emcure is committed to create brand equity by promoting top class products.

In order to achieve this Vision, we undertake to create value for all the constituents we serve: our customers, consumers and the community. Emcure creates value by executing a comprehensive business strategy guided by the following key beliefs :

• Emcure will strive to develop novel products and offer sound advice to doctors and patients.
• The company will display strong social responsibility and lead as a model corporate citizen

Non - Executive Directors:

• Mr. Humayun Dhanrajgir - Chairman
• Mr. Shreekant Bapat
• Mr. Berjis Desai
• Dr. Mahendra Patel
• Mr. Akhil Gupta
• Mr. Marvin Samson

Executive Directors:

• Mr. Satish Mehta
• Mr. Arun Kumar Khanna
• Mr. Mahesh Shah, Director - Technical
• Dr. Mukund Gurjar

Technical excellence and manufacturing excellence have been a thrust area at Emcure. Emcure’s operations started from the first manufacturing facility that was set up in 1983 and over the last two decades, Emcure has set up multiple manufacturing facilities for manufacturing own brands as well as key brands for major multinationals in India. Continuous interaction and association with MNC principals has resulted in the cross-fertilisation of technology and global systems into the organisation. This coupled with a strong work ethic has helped Emcure create a reputation as a high quality supplier to the Pharma industry. Technical skills and quality standards at Emcure are benchmarked with global norms. Currently Emcure has embarked on creating world class facilities to cater to the needs of the global markets. The Company has set up R&D and manufacturing facilities for APIs, formulations and for bio-pharmaceuticals. Emcure is today an integrated pharmaceutical entity having the capabilities to research, develop and supply finished formulations to the most demanding needs of the global regulated markets.

Formulation:

Emcure has excellent capabilities in formulation manufacturing with particular strengths to research, develop and supply finished formulations to the most demanding needs of the global markets. Emcure is today one of the largest contract manufacturers of tablets, capsules, liquids, ointments and creams in India and manufactures the key brands for some of the largest MNCs in India. Association with our principals has lasted many years and has grown over time. Emcure has multiple formulation manufacturing facilities in close proximity to each other and a well established supply chain as well as vendor development systems that have been institutionalised over the years. All of Emcure's facilities are WHO GMP certified and ISO 9001 accredited for systems. These facilities are regularly audited by global audit teams of principals and have repeatedly measured up to their standards.

API:

Emcure is building its pipeline of Chiral and achiral APIs. Our API research team constantly seeks to cross the frontiers in developing non-infringing routes for APIs in therapeutic segments like cardiovascular diseases and haematinics. API R&D infrastructure comprises process development laboratories, complete analytical equipment, microbiological facilities, kg scale facilities and pilot plant for scale up and commercial manufacture. Emcure has an R&D cum pilot scale facility at Pune which houses facilities for design, synthesis and scale up / manufacture of API intermediates and APIs.

Biogenerics:

Emcure has ventured into the field of Biotechnology and is developing a range of recombinant human bio-generics. Emcure has set up a world class facility capable of handling mammalian and bacteria/ yeast based cell lines along with facilities for upstream and downstream processing of biogenerics. Work is in progress to add value to the bio-generics through technologies such as PEGyllation. Final formulation of the bio-generics will be carried out at Emcure’s injectable facility with the option of offering the finished product either as prefilled syringes, vials or ampoules.

We at Emcure, see Social Initiatives as an integral component of Corporate Social Responsibility. Our investments in the community have gone beyond the adhoc disbursement of funds, to planned programs in areas of healthcare, education and environment. This quarter we have engaged in the following CSR activities:

• Emcure Celebrates World AIDS Day 2010
• Medical Van
• Diwali Fair
• Blood Donation Camp
• Childrens day collection drive
• Christmas party at orphanage
• TAAL, the Corporate Social Responsibility (CSR)
• Nirmalya
• CSR - NGO
• Cancer Patients Diwali party
• Childrens day drive
• Dental Camp
• Art Based Therapy
• Project Bicycle
• TAAL
• Other initiatives