Prepared by

Abhimanyu Katoch
Mohd. Javed Alam
Sumenendra P Singh
Vipin Kumar
Sandeep Arora
JAIPURIA INSTITUTE OF MANAGEMENT NOIDA
 Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is an
emerging global pharmaceutical company. As a fully integrated
pharmaceutical company, the purpose is to provide affordable and
innovative medicines through their three core businesses:
 Pharmaceutical Services and Active Ingredients (PSAI), comprising
our Active Pharmaceuticals and Custom Pharmaceuticals
businesses;
 Global Generics, which includes branded and unbranded generics;
and
 Proprietary Products, which includes New Chemical Entities
(NCEs), Differentiated Formulations, and Generic
Biopharmaceuticals

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 Dr Reddy’s products are marketed globally, with a focus on India,
US, Europe and Russia. Dr. Reddy's conducts NCE research in the
areas of metabolic disorders, cardiovascular indications, anti-
infectives and inflammation.

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 Dr Reddy’s are:

 Among the leading global pharmaceutical companies from India

 5th largest branded generic player in Germany
 Ranked 7th in the retail segment in Russia, the largest player from
India
 Among the Top Ten generic companies in India
 Among the Top 3 Active Pharmaceutical players globally

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 Top 3 Abbreviated New Drug Application (ANDA) and Drug Master
File (DMF) pipeline in the USA
 Among the largest players in the Custom Pharmaceutical Services
(CPS) segment
 4th on Environment & Social Governance Index, India
 Best Workplace in Pharma & Biotech - Great Place to Work 2008
and 2009
 The fastest path to USD 1 billion in revenues amongst Indian
Pharma companies

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Sustainability Framework

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 Taking the responsibility seriously to aid in reducing the burden of
disease on individuals and the world, they are:

 Generating solutions to make medicines affordable

 Innovating at every stage of their processes
 Ensuring each of their businesses address affordability in various
innovative ways

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 Diverse product pipeline promising affordability, patient comfort,
improved access and new technology.
 Sparsh (patient assistance program) was extended to more than
120 Cancer Physicians across India benefiting over 1500 cancer
patients.
 The US Food & Drug Administration (FDA) granted them 23 final
Abbreviated New Drug Application (ANDA) approvals and four
tentative ANDA approvals in FY 2009
 Alliance with Glaxo SmithKline (GSK) to enable them develop and
market over 100 products across an extensive number of emerging
markets
 Rural market focus: Initialted in three states of Andhara Pradesh,
Maharastra and Uttar Pradesh to reach 180000 doctors and 40000
retailers.

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 Dr Reddy need to design products, processes and plants so that they have a
sensible environmental footprint from Day One. They also need to minimize
and manage the adverse impact of their existing footprint through innovative
options for treatment, recycling and safe disposal.

 Green Chemistry: Dr. Reddy’s Centre of Excellence for Process

Engineering contributes to Sustainability through “Green Chemistry” – the
design of chemical products and processes that reduce or eliminate the use
and generation of hazardous substances. This ensures not only environment
friendly products and processes, but also contributes to the health and safety of
employees involved in manufacturing

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 5% reduction in specific Green House Gases (GHG) emissions over 2007-08
 Reduction of 18.7% in total quantity of Hazardous Waste over 2007-08
 Fifth Waste Water Recycling Facility (WWRF) was commissioned in the
Biologics Development Centre (BDC)
 Rain water harvesting facility is nearing completion in the Bachupally campus
 Initiation of Solvent Recovery System (SRS) project across all 4 Hyderabad-
based Chemical Technical Operations (CTO) units
 Safe Disposal of Organic Residue to Cement Industry
 Completion of Energy Conservation Audits across 12 of our locations by The
Energy Research Institute and identified potential to reduce GHG emissions
by 7%.

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 Dr Reddy’s employees work as One Team, collectively ideating,
innovating and interacting, to fulfill the purpose of providing
affordable and innovative medicines for healthier lives. To enable
them in this pursuit, they offer a conducive working environment
that taps one’s potential while offering freedom to question, innovate
and find that ‘better way’.

Measures

 Global workforce: 10,000+

 Women in workforce: 8%
 Launched Leadership Academy
 Introduced 9 box performance potential framework for
talent management

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 Wider pool of managers covered for 360 feedback
 Average training man-day's per employee: 2.79
 7 out of 12 manufacturing facilities had zero Loss Time Accident
(LTA)
 Frequency rate for LTA: 0.36
 Incidence rate for LTA: 0.73
 Safety training man hours: 47543
 12 new safety guidelines released

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 Dr Reddy make certain there is ‘No scope for error in anything they
do’ by addressing:
 Quality Management
 Regulatory Compliance
 Product Safety requirements
 Stringent procedures for packaging & promotional materials and
processes to support patient safety goals

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 Quality support has been extended and a dedicated team was set
up to support alternate vendor development processes
 1035 man days of training was provided to trainee sales
representatives
 All Active Pharmaceutical Ingredients (API) manufacturing units
and two of Formulations facilities have been inspected and certified
by the US FDA
 The latest version of ARIS GLOBAL, a sophisticated Safety
database that helps them accomplish Good Pharmacovigilance
practices, has been implemented

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 Dr Reddy encourage its Business Partners to conduct their business in
a responsible manner. They minimize their environmental impact by:
 Purchasing green products / services
 Streamlining our sourcing processes to achieve resource conservation
and reduction of our carbon footprint

 Measures
 Data bank in SHE infosite where Business Partners can be sent
alerts regarding their license status
 Over 22 safety audits were carried out and 60 observation points
closed
 Commenced process of Risk Analysis for intermediates being
outsourced to their Strategic Business Partners (SBP)
 Vendor labs and Use Test labs have been created exclusively to
provide dedicated support for quality and analytical processes for
their Strategic Business Partners

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 Dr Reddy focus on two main areas for sustainable community
engagement. To progress and provide for the community around
them:
 Introduced a variety of initiatives to enhance healthcare and
education in areas near their manufacturing units. Through “The
Powerof 10 ”, their employees’ contributions provide assistance to
Naandi Foundation, one of India’s largest social sector
organizations.

 To benefit individuals and society at large: Invest in and support

non-profit organizations like Dr. Reddy’s Foundation (DRF) and
Center for Social Initiative and Management (CSIM).

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 The Power of 10 contribution by employees and Company: Rs. 4.15
million
 Livelihood Advancement Business School (LABS) generated over
46,473 livelihoods in 2008-09
 Education centers ranging from Pudami Primaries to Transit
Education Centers had over 11,450 beneficiaries

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 There are 10 members of the Dr Reddy’s Board of Directors.
( 7 of these directors are independent directors )
 At Dr. Reddy's, Board of Directors, management and employees are committed
to upholding high standards of corporate governance and business ethics.
 We 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.
 Dr. Reddy's Board of Directors comprises eminent individuals from diverse fields.
 Committees appointed by the Board focus on specific areas, take decisions
within the authority delegated to them and make specific recommendations to the
Board on matters in their areas or purview.
 The Management Council is the top tier of our company's management structure.

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 As a value-based, socially responsible organization, Dr. Reddy's is
bound to the highest ethical standards in our operations and our
behavior.
 Our internal control systems are regularly checked by both external
and internal auditors, who have access to all records and
information about our company
 We have established several systems and procedures to
disseminate relevant information to our stakeholders, including
shareholders, analysts, suppliers, customers, employees and the
society at large.

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 Johnson & Johnson (NYSE: JNJ) is a global American
pharmaceutical, medical devices and consumer packaged
goods manufacturer founded in 1886. Its common stock is
a component of the Dow John Industrial Average and the
company is listed among the Fortune 500.

 The corporation's headquarters is located in New

Brunswick, New Jersey, United States. Its consumer division
is located in Skillman, New Jersey. The corporation includes
some 250 subsidiary companies with operations in over 57
countries. Its products are sold in over 175 countries. J&J
had worldwide pharmaceutical sales of $24.6 billion for the
full-year 2008.

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 Johnson & Johnson is:

 The world’s premier consumer health company

 The world’s largest and most diverse medical devices and
diagnostics company
 The world’s fourth-largest biologics company
 And the world’s seventh-largest pharmaceuticals company

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Sustainability Framework

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 Integrated Pfizer Consumer Healthcare in the Consumer group of
companies, generating new platforms for growth.
 Created new compliance officers in their three business segments
and a central corporate compliance committee.
 Launched a corporate blog to engage more directly with consumers,
employees and other stakeholders.
 Achieved a tobacco free environment at 98% of their workplaces
worldwide
 Enrolled entire R&D community in LINK, a knowledge management
system that enables rapid collaboration across the entire company.
 Expanded current pathways for the anonymous reporting of ethical
concerns to include a new confidential website.

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 Signed a royalty-free license agreement with Africa’s largest
pharmaceutical manufacturer to register, package and distribute
HIV/AIDS antiroviral drug PREZISTA at a price that will not exceed
$3per day- the lowest price in the world.
 Launched the ACCESS2WELLNESS website, a single entry point
into available US assistance to help the uninsured gain access to the
prescriptions they need.
 Implemented a retail pharmacy card through their Patient Assistance
Foundation to speed access and enhance continuity of care in US.
 Marked the fifth year of Campaign for Nursing Future that work to
alleviate the nursing shortage in the US.

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 Reduced facility carbon dioxide emission by 12.7% on an absolute
basis.
 Opened two more solar power installations, bringing to 10 the no.
of such installations.
 Reduced hazardous waste by 4% and non-hazardous waste by 6%
in the past two years.
 Increased by 18% in 18 month, the amount of products shipped by
rail instead of truck in the US and Canada.
 Decreased water consumption by 6% in the past two years.

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 Johnson & Johnson and its operating companies give charitable
contribution in the form of cash and non-cash donations to non
profit groups and programs around the world. The company’s
affords focus on:
 Saving and improving the lives of women and children.
 Building the skill of people who serve community needs, primarily
through education, and
 Preventing diseases and reducing stigma and disability in
underserved communities.

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 There are 12 members of the Johnson & Johnson Board of Directors.
 10 of these directors are independent directors under the standard of
the NYSE.
 Directors meets independently several times in a year, and have full
and open access to all the officers and employees of the company.
 The values embodied in Our Credo guide the actions of the
people of the Johnson & Johnson Family of Companies at all
levels and in all parts of the world. These Credo values extend
to our accounting and financial reporting. Our management is
responsible for timely, accurate, reliable and objective financial
statements and related information.

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 Focused towards rural market in
India.
 5% reduction in GHG emission.
 18.7% reduction in hazardous
waste.
 Have rain water harvesting
facility.
 Patient assistance program-
SPARSH.
 “Affordability” in cancer care.
Dr Reddy Lab
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 Worked to provide medicine for
people suffering AIDS/HIV
prone .
 95% of operating companies
have biodiversity plan.
 Has committed to comply with
the “Montreal Protocol on
Substance that Deplete the
Ozone layer”
 16% absolute reduction in water
use from 2000 to 2005.
 10% reduction in hazardous and
non-hazardous waste.
Johnson & Johnson
NOIDA
 8% of the total workforce
are women.
 There is one lady in the
BOD’s.
 Reducing infant mortality
rate in China.
 Supporting more Solar
Energy.
 Restoring forest.
 There are three lady
member in the BOD’s.

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THANK YOU

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