In January 2015, acquired Coldstream Laboratories Inc, a US-based CDMO, specialised in

manufacturing of cytotoxic injectable products

In August 2016, acquired Ash Stevens Inc, a US-based CDMO, specialised in manufacture of
HPAPIs
In October 2016, acquired five injectable anaesthesia and pain management products from
Janssen Pharmaceutica NV
In March 2017, acquired a portfolio of intrathecal spasticity and pain management drugs
from Mallinckrodt LLC

Global Pharma

Strong portfolio of differentiated branded generic products, API generics and vitamins
Provides end-to-end contract development and manufacturing capabilities across APIs and
formulations
Large distribution network in 110+ countries
13 manufacturing facilities in North America, Europe and Asia - all key sites are periodically
approved by USFDA
Strong presence in the US, Europe, India and Japan
Only global company with all four generations of inhalation anaesthesia products

Indian Pharma

Strong brand portfolio with 6 brands among the top 100 brands of India
Wide distribution network reaching 420,000 outlets across 2,000 towns with 20,000+
population
Asset-light model with third-party manufacturing
JV with Allergan - India leader in ophthalmology

strong focus on customer centricity, quality and compliance

During the year, we added two niche differentiated product portfolios in our Global Pharma
products business.

acquired a portfolio of five branded products in the injectable anaesthesia and pain management
area from Janssen and a portfolio of intrathecal spasticity and two pain management products under
development from Mallinckrodt LLC.

plan to launch first generic version of Desflurane, the latest generation inhalation anaesthesia
product, in FY2018.

During the year, we acquired the Ash Stevens facility at Michigan, US, which specialises in
manufacturing of High Potency APIs (HPAPIs).

Our recent capacity expansion at Grangemouth and discovery services facility is witnessing
commercial success. We also expanded capacity at our API plants to handle higher volumes and the
Phase I expansion of our injectables capacity at Lexington is nearing completion. The team is working
towards further expanding its capacity in Lexington.

The India Consumer Product business expanded its geographical presence to 4.2 Lakh outlets across
2,000 towns of India.

During the year, we acquired four consumer product brands from Pfizer. We also launched new
brands such as Stop AllerG All day, Quikkool-D, Polycrol Paan, Tetmosol Total and i-Pill Daily. All
three acquisitions done in past two years (i.e. product portfolios from MSD, Pfizer and Littles) have
been successfully integrated and have surpassed their erstwhile annual sales within 8 months of
their launch

Its 13 development & manufacturing units are located across North America, the UK and India

PELs leading capabilities in drug product development and manufacturing, along with the ability to
seamlessly blend operations across geographies with flexible scheduling to reduce delivery
timelines, has resulted in an integrated offering. It is Attractive to both big pharma and biotech.

Implementation of Shop Floor Transformation Programme at the Bethlehem and Digwal plant
locations. In each location people are trained on how to identify and analyse problems to visualise
and implement creative solutions. As a result of these efforts, yield, throughput, and quality
parameters in Sevoflurane and Isoflurane API and bottling efforts improved further. These initiatives
enabled the Company to sustain gross margins, despite a declining price environment.

Implementation of new continuous manufacturing process for important bottleneck steps of the
Sevoflurane process, which were previously made in batch manufacturing mode. Once fully
operational, the new line will provide multiple benefits, including enhanced capacity, better yield,
lower production costs, higher automation, and lower cycle time.

Implementation of a new bottle filling technology at Digwal improved the speed, capacity of filling
and filling accuracy, which reduced variation and product wastage.

Launched Polycrol (antacid) in Paan flavour, a unique flavour that caters to the nuanced palate of
Indian consumers and provides quick relief from acidity. It is tasty, non-chalky and an alternative to
the pink mint based antacids sold in the market. Polycrol is one of the leading antacid brands in
Eastern India and is known for its strong efficacy to solve acidity in minutes.

Future

1. Leverage significant capital invested into core infrastructure in the global pharma and India
consumer segments
2. Global Pharma- Creating its own niche by moving up the value chain into differentiated
branded generics products and services

The Pharma business revenue increased by 14% in FY2017 to ` 3,972.9 Crores1 vis--vis ` 3,485.9
Crores1 for FY2016, on account of both organic and inorganic initiatives during the year. PEL
acquired injectable anaesthesia and pain management products from Janssen Pharmaceutica NV;
intrathecal spasticity and pain management products from Mallinckrodt LLC; HPAPI facility of Ash
Stevens Inc.; and four over-thecounter (OTC) brands from Pfizer India

The pharma vertical is divided into two large businesses: the global pharma business that sells
pharma products and services globally; and the India consumer products business that sells OTC
products in India.

1. Global Pharma: Global Pharma business sells pharma products and services globally.

a. The pharma products include a strong portfolio of niche differentiated branded generic products
that are difficult to manufacture, sell or distribute.

b. The pharma services include end-to-end manufacturing and service delivering capabilities both for
APIs and formulations including niche capabilities in handling cytotoxic injectables, high potency
APIs, antibody drug conjugates and so on.
2. India Consumer Products: The Companys Consumer Products business is primarily an India-
centric over-the-counter (OTC) business with a strong brand portfolio. Most of its brands feature
among the top two in their respective markets and product categories.

In the last two years, the Pharma segment efficiently deployed around half a billion dollar of capital
for future growth through various organic as well as inorganic initiatives.

In the Global Pharma business, the Company has:

1. A strong product portfolio of niche differentiated branded generic products that are difficult
to manufacture, sell or distribute;
2. End-to-end development and manufacturing capabilities both for APIs and Formulations,
including niche capabilities in handling cytotoxic injectable, high potency APIs (HPAPI), anti-
body drug conjugates, inhalation and intravenous anaesthesia and so on;
3. Manufacturing facilities located both in the East and West of the world, most of the which
are US FDA approved;
4. A large global distribution network reaching over 110 countries, through dedicated sales
force and distributors; and
5. A strong presence in key geographies of North America, Europe, India and Japan.