Integrated Supply Chain Management

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PLETHICO PHARMACEUTICALS LIMITED

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Agenda

1. Company Overview
2. Expansion Project Status
3. Growth Strategy
4. Journey Ahead
5. Summary

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Company Overview
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Background - Company

• Plethico was incorporated in 1991 to undertake
  manufacture of Formulations and undertake focused
  marketing of ethical/ prescriptions market.
• Focused on innovation and pioneered introduction
  of
• Doxycycline based unique anti-biotic
  formulation
• Co-trimoxazole based unique anti-bacterial
  formulation
• Introduced for the first time in India, novel
  ayurvedic / herbal preparation (Single Herb
  Fenugreek extract)
• Adopted the Branded Generic model for marketing
  formulations in India abroad.

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Background - Company

• TODAY The company has made its presence felt
  Internationally in niche segments like
• Herbal Nutraceuticals preparations including
  Food supplements
• OTC / Consumer Products
• NDDS

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Background - Company

• Operations in 45 countries including India
• Export targets at the semi-regulated /
  un-regulated markets of
• Eastern Europe (including the Common Wealth of
  Independent States (CIS))
• The African nations
• THIRD FRONT
• South East Asian (SEA) nations
• Gulf Co-operation Council (GCC)
• Latin American Countries (LAC)
• Over 300 sales representatives and front
  line-managers are employed across markets
  including 143 in India.

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A TRULY GLOBAL REACH
Turkmenistan Ukraine Uzbekistan Tajikistan Kyrgyzs
tan Azerbaijan Latvia Lithuania
Russia Kazakhstan Moldova Georgia
Slovakia
Kuwait Yemen Dubai
Vietnam Papua New Guinea Malaysia Cambodia Philipp
ines
Caribbean
Cameroon Sierra Leone
Sudan Uganda Kenya Ethiopia Eritrea South
Africa Nigeria
El Salvador Nicaragua Costa Rica Panama Guatemala
Sri Lanka
Ivory Coast DR Congo Benin
Peru Chile Ecuador Colombia Venezuela
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Shareholding Structure as on 30th June, 2006
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Sales Turnover 30.6.06 USD 48.88 Million
(_at_1INR 45.5)(9 Months unaudited results)
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Annual Sales Turnover 30.9.06 (E) USD 68.13
Million (_at_ 1 INR 45.5)
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Key Financial Indicators
The Company had sold off its Domestic division
(Ethical Allopathic division) to M/s Shreya Life
Science Pvt Ltd in October 2003. The
extraordinary income of Rs 698.50 Mn is included
in Profit Before Tax (PBT) for FY 2004.
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Key Financial Indicators
Note The Equity Capital Structure till 30th
September was INR 76 Million, which was
subsequently increased by issuing Bonus Shares
and raising the same to INR 304 Million. So,
Comparability post this period will have to be
made, keeping this point in mind. The update
reflects the pre- issue capital as the IPO took
place in April 06. (Figs in Blue are Annualised)
CAGR of Networth for 2001-2005 is 30.0
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Expansion Project Status
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Expansion Project
Project S.No. Particulars Amount (INR in Millions) Earmarked Expected date of Completion Status
I Acquisition of unit at Jammu (Phase I) , Organic Farming (Phase II), Expansion of Capacity (Phase III) 309 June 06 (Ph.I) Aug 06 (Ph.II) June 07 (Ph. III) Currently focusing on Sikkim for unit. (Ph.I III clubbed) Land for Organic farming bought.
II Up gradation of Kalaria Plant, Indore to comply with UK MHRA requirements 257 Dec 06 Work is on in full swing
III RD centre at Manglia, Indore 132 Feb 07 Equipments have been ordered
IV Acquisition of a Brand/ Company in OTC sector 280 June 06 Scouting is on for Indian Brands also evaluating Foreign Brands. High valuations being sought.
V Corporate House 194 June 07 Currently on Hold. Management perception prop. prices will correct.
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Growth Strategy
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Growth Strategy

• INVESTMENT STRATEGY The Company has invested in
  future growth by building a two pronged
  investment footprint.
• Organic growth footprint - Build robust
  facilities nurture brands.
• Inorganic Growth footprint - Invest
  strategically into strong setups
• Marketing Distribution outfit (called MD
  Strategy)
• Manufacturing cum MD outfit (Called MMD
  Strategy).

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Growth Strategy (Contd)

• The Company has implemented the MD strategy for
  consolidation growth in the Common Wealth of
  Independent States (CIS) in the following
  Countries. The stake held by the Company is as
  under
• Kazakhstan 75
• Kyrgyzstan 75
• Moldova 63
• Russia 51
• Ukraine 51
• Azerbaijan 51
• NOTE Total amount invested is approx USD 26
  Million till date. It has completed all the
  requisite formalities in 4 Countries. For Russia
  Ukraine all formalities are expected to be
  completed latest by Dec 06.

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Growth Strategy (Contd)

• The Company has implemented the MMD strategy for
  consolidation growth in Africa
• Kenya Plethico Africa Ltd - via joint venture
  for setting up world class manufacturing unit
  with liquid and ointment plant, allowing access
  to 17 COMESA Countries (Common Market For Eastern
  Southern Africa)
• This unit is expected to cater to the World Bank
  supported Tender Market in Africa as a African
  entity and also undertake manufacture of Ethical
  formulations for Kenyan markets to begin with.
• The Marketing Distribution outfit will have two
  wings one the Ethical division and second the
  OTC division
• Plethico (India) is interested in marketing its
  Herbal Nutraceutical formulations through the
  OTC division.

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Growth Strategy (Contd)

• BACKWARD INTEGRATION
• EXECUTED
• Backward Integration by installation of State of
  the art
• Klockner Hansell GMBH machinery for
  manufacturing Lozenges
• Aoki Japan machine for PET bottles.
• CURRENTLY WORKING ON
• Entry into regulated markets with herbal products
  via Organic Farming in Jammu.

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Growth Strategy (Contd)

1. INCREASED FOCUS ON HERBALS NUTRACEUTICALS.

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Growth Strategy (Contd)

1. OTHER INITIATIVES.

• Entry into regulated markets of UK/ Europe.
• Innovative products like NDDS for diabetes and
  cancer patients.
• Focussed approach to Lat Am, GCC and SEA
  countries.
• Pan India reach through confectionary, foot care
  and oral care products in OTC India.
• Domestic reach
• field force to increase from 100 to 500 over 2
  years
• Strategic shift to Sikkim to cater to IT planning
  till 2022.
• Fillip to operations through manufacturing JV in
  Kenya.

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Journey Ahead
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The Journey Ahead..

1. Compliance with UK MHRA requirements at Kalaria,
   MP, India site.
2. Acquire a Company with few Brands in Europe / UK,
   having a strong distribution setup in place. This
   unit will seek manufacture of these brands in
   Kalaria plant, which will be in Approvable
   status.
3. This will trigger an Inspection at Kalaria. (We
   expect approvals by March 08.)
4. Kalaria unit will be earmarked for Regulated
   Countries.
5. Kandla Manglia unit will be earmarked Semi /
   unregulated Countries.
6. November 08 may see Plethico back in the Ethical
   market in the Lifestyle drug segment.
7. Explore Inorganic growth opportunities at all
   points of time.

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Summary
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Summary

• Non infringing model of Business
• State of art manufacturing units in Indore
  possessing capability of manufacturing all
  possible dosage forms.
• Strong formulation development technique
  including NDDS like effervescent tablets.
• Strong MD tie up in Russia, CIS Cambodia
• Strong management team and motivated workforce
• Foray into Backward Integration for cultivating
  essential critical herbs for captive consumption
  thus enabling high end finger printing technology
  for herbal formulations
• Strong system oriented company
• Product list exceeding 400, transcending more
  than 39 therapeutic categories exporting to more
  than 45 countries across the globe

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• THANK YOU

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PLETHICO PHARMACEUTICALS LIMITED
QA