MANAGEMENT DISCUSSION AND ANALYSIS

a) Industry Structure and Development:

The pharmaceutical industry is gaining magnitude, with healthcare and quality of life on top priority across all the strata of society and governments worldwide. The size of the pharmaceutical market has reached nearly USD one trillion, with over 30% contribution coming from the Generic Industry. North America leads the Pharma Industry, with contribution of more than 40%. India and China registered higher growth due to contribution from their Generic formulations and APIs Businesses, respectively.

Over the last five years, the Global Pharmaceuticals and Medicine Manufacturing industry experienced moderate growth due to rise in demand for healthcare and medications, especially from emerging economies. Higher healthcare standards and greater emphasis on illness brvention have given pharmaceuticals a higher significance among consumers, driving sales over the period. However, the consequences of the credit crisis and austerity measures implemented by various governments worldwide, translated into cuts in healthcare funding, thereby restricting the overall growth of the industry at moderate levels.

The Indian Pharmaceuticals Industry continues to grow rapidly and is the third largest in terms of volume and thirteenth largest in terms of value. The Indian pharmaceutical sector accounts for above 2% of the global pharmaceutical market in value and 10% in volume. The Indian pharma industry, which is expected to grow over 15% per annum between 2016 and 2020, will outperform the global pharma industry, which is set to grow at an annual rate of around 5% during the same period. Presently the market size of the pharmaceutical industry in India stands at US$ 20 billion (Source: India Ratings a Fitch company).

Branded generics form the largest segment of the Indian pharmaceutical market. The country accounts for the second largest number of Abbreviated New Drug Applications (ANDAs) filings and has surpassed all the countries w.r.t. Drug Master Files (DMFs) applications, filed with the United States Food and Drug Administration (USFDA).

b) Opportunities and Threats:

The Indian Pharmaceutical Market (IPM) is driven by increased consumer spending, increase in literacy levels leading to better awareness, rapid urbanisation and rising healthcare insurance.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic and sub-chronic therapies for lifestyle diseases such as, cardiovascular, diabetes, debrssion and cancer, that are on the rise.

The I ndian government has taken many steps to enhance the affordability and accessibility of medicines through price controls and by facilitating speedy introduction of generic drugs into the market. In addition, the thrust on rural health programmes, life saving drugs and brventive vaccines also augurs well for the pharmaceutical industry.

Looking at the valuable contribution by the Pharma Industry in improving healthcare in the country and earning of foreign exchange from growing exports, the Government of India has come out with various initiatives to propel the Industry. Some of the initiatives undertaken by the Government are:

1. Pharma Vision 2020

2. Bulk drug policy (Part of 'Make in India' campaign)

3. A new ministry for Pharmaceuticals (Proposed)

4. Uniform Code of Pharmaceutical Marketing Practices (UCPMP)

5. Cap on trade margins

However, severe drought in parts of the country coupled with Government's aggression in Price controls and ban on some Fixed Dose Combinations is hurting the Industry's growth. On international front, the growth would be powered by the US generics business on account of that country's vast market. Indian Pharma companies already have a strong Abbreviated New Drug Application (ANDA) pipeline. Areas of concern are, slow pace of ANDA approvals, rising R&D costs due to enhanced regulatory requirements and commoditization of generic formulations business.

c) Financial Performance:

The overall financial performance of the Company was good with a sales growth of 14.6% for the year ended March 31, 2016. International formulations business grew at 32.9% and the domestic formulations business grew at 4.8%.

Other operating income in the current year has gone up by Rs. 22.5 crores, as compared to the brvious year. The increase is mainly due to exchange gains. The material consumption to net sales is 34.9% at Rs. 339.4 crores, as compared to 35.2% at Rs. 298.5 crores last year. The decrease in the material cost is due to the change in product mix, as also efficiency in manufacturing processes, as well as effective procurement policies. The staff cost to net sales is 18.7% at Rs. 182.2 crores, as compared to 1 6.5% at Rs. 140.0 crores last year.

The recurring R&D expenses to net sales are 4.4% at Rs. 43.2 crores as compared to 2.6% at Rs. 21.7 crores last year.

Other expenses to net sales are at 27.1% at Rs. 263.4 crores as compared to 26.9% at Rs. 228.7 crores last year. The finance cost to net sales is at 1.3% at Rs. 12.3 crores, as compared to 1.2% at Rs. 10.3 crores. The operating profit increased by 10.4% to Rs. 142.9 crores from Rs. 129.4 crores last year.

Debrciation is higher at Rs. 60.3 crores, as against Rs. 47.1 crores in the brvious year.

Profit Before Tax is at Rs. 100.9 crores, as compared to Rs. 109.5 crores in the last year.

Profit After Tax was Rs. 83.3 crores, as against Rs. 82.8 crores in the last year.

Basic & Diluted Earnings Per Share (EPS) for the year is Rs. 9.04, as against Rs. 8.99 in the brvious year (both after and before the extra-ordinary items). The outstanding long term debt as on March 31, 2016 was Rs. 39.7 crores, as compared to Rs. 12.9 crores last year. The cash outflow on account of Capital Expenditure (CAPEX) during the year was Rs. 97.7 crores, as compared to Rs. 88.7 crores in the last year. During the year, an amount of Rs. 25.2 crores was contributed to the national exchequer by way of payment of income tax and Rs. 35.4 crores by way of sales tax. The net worth of the company as on March 31, 2016 is Rs. 584.2 crores, as against Rs. 518.4 crores brvious year, on account of retained profits. The debt-equity ratio during the year was 0.07 times, as compared to 0.02 times in the brvious year. The return on net worth was 14.3% as at March 31, 2016 against 16.0% as on March 31, 2015.

d) Business Overview

Domestic Business

Indoco's domestic formulations business has a pan India brsence, with 10 marketing divisions catering to various doctor specialties. During this year, the Company underwent restructuring exercise by carving out two additional divisions and re-grouped its product basket within the divisions, wherein specialty oriented therapy management approach was given key priority. The Company also expanded its field strength by around 500 as a part of the restructuring exercise, which is aimed to help the business in ensuring good market penetration in specialty / sub-chronic segments through brscription growth, on a sustainable basis.

Domestic Marketing Divisions: INDOCO:

Indoco is the largest domestic marketing division, with strong brand equity in the medical fraternity. The division enjoys a strong image amongst its targeted specialties, viz., General Practitioners, Pediatricians, Consultant Physicians and Gynecologists & holds a prominent position as per CMARC in the covered brscription market.

Cyclopam, the flagship brand of this division has crossed Rs. 70 crores sales (as per the AWACS) and with its wings sbrad across all the targeted doctors through intensive promotion, this brand is well entrenched to reach newer heights. Indoco division also carries prominent brands like Cital, Carmicide, Karvol Plus, Cloben-G, Triz, each of which garners a respectable market share in their markets.

Oxipod, the second largest brand of this division has reached Rs. 37 crores sales (as per AWACS). It is one of the leading brands in the competitive Cefpodoxime market (Anti-infective Segment).

Tuspel LS, a new product introduction with Levosalbutamol combination has shown a good performance. With the reprisal of launching newer concepts through Coral form of Calcium with CC Zems, the division is launching first of its kind Cital-UTI, a urinary alkaliser, a new concept in the treatment of uric acid stones and urinary tract infection.

SPADE:

This division has a large portfolio of Respiratory and Anti-infective category of products, amongst others. Febrex Plus as its leading brand, which is around Rs.70 crores (as per AWACs). Febrex Plus is the second largest brand of the Company and is ranked at 181 in the Indian Pharma Market. In addition, two of its brands, viz., ATM and Bactogard, give the division a significant brsence in the anti-infective market. The doctor categories that this division caters to are ENTs, Consulting Physicians, Pediatricians, General Practitioners and Chest Physicians.

Warren NxGen:

Warren NxGen is a new division carved out from the original Warren product range. This division enjoys number one position in the covered market. The team caters to more than 80% of dentists across India and also has focus on General Physicians, Oncologist and ENTs. Warren NxGen offers wide range of products, which include toothpastes for treatment of various dental sensitivity disorders, mouthwashes for adults as well as kids, along with other therapeutic agents like antibiotics, analgesics/ anti-inflammatory, local anesthetics and innovative oral care products.

Warren NxGen has innovative products in its basket viz., SM Fibro (for Oral Sub Mucous Fibrosis), Rexidin M Forte (For Pre and Post Surgical procedures), Flamar 3D (Proteolytic enzymes with NSAID) and Duestom (Maintenance of Oral Ph and Salivary Balance). The major brands of Warren NxGen are Sensodent KF, SM Fibro, Kidodent, Amclaid, Rexidin, etc. New products viz., Rexidin M Forte, Flamar 3D and Duestom are progressing as planned.

Warren ACE:

Indoco is the first Company in India to have two divisions in the Dentistry segment viz., Warren Ace and Warren NxGen. Both these divisions cater to different needs (Prescription and dispensing/direct buying) of growing Dentists and patient population in India.

Warren Ace has retained its Number 1 position in the stomatological space in the Indian Pharma Market through sustained growth for the existing range of dental brands. The division caters to almost 40,000 dentists and has Pan India brsence. The major contributing brands of Warren Ace are Sensodent K and Sensoform.

The Warren Ace division is created to give boost to sales growth of toothpastes viz., Sensodent K and Sensoform in Prescription market and to capitalize on the OTC aspect of Sensitivity toothpaste market. Apart from the toothpastes, the division has created a space for growth of certain other brands, viz., Rexidin Plus, Senolin SF, etc along with new products like, T- Lac (Ketorolac Mouth dissolving Tablets).

Apart from brscription business, Warren Ace will cater to their dispensing need by offering category of products like - Dental material, Anaesthetics, etc.

Considering the growth of Dentistry as a segment, the division is the first one in the dental market to identify and cater to brscription as well as the dispensing needs of Dentists in line with its Brand Equity.

SPERA:

Spera, a multi speciality division was launched seven years back and this year, the Company took steps in transforming this division from multi-speciality to a Gynaec speciality division, through effective utilization of the existing Gynaec brands. This division now caters to women's health with focussed approach towards Gynaecologists.

The division caters to 24000 Gynecologists Pan India. Existing portfolio has brands in Pregnancy care and lifestyle management. MCBM-69, Methycal, Nosic are established brands in brgnancy care and Hemsyl, KG-Low garner good brscription support amongst Lifestyle brands. Newer introductions like MCBM-L, 9FB SR 200/300 and T Syl will further strengthen the therapy basket and help the division to progress towards its objectives.

Indoco Focus:

Indoco Focus was launched with the vision to fortify the Company's strong footprint in chronic segment. The division is focused on a mission to develop and deliver innovative formulations that will help patients brvail over serious diseases. It is aimed at creating a strong brsence amongst Consulting Physicians, with focus on emerging therapy areas addressing management of lifestyle related disorders. The division has started witnessing good progress in brscriptions from the above specialties.

To further propel the growth of the division, brand extensions are being developed, which are designed to fit the overall strategy of the Company. The division will soon venture in launching new products to tackle metabolic disorder ailments by entering into the much coveted diabetic Gliptin market.

Indoco CND:

CND division is stepping into the 5th year of its launch and is making inroads in the cardio-diabetic market. Anti-obesity formulation Obi-X (a novel combination of Leucine and Pyridoxine 5 Phosphate formulation), which was introduced for the first time in India and launched during last financial year, is performing well.

Many scientific activities and participation at national conferences like Cardiological Society of India (CSI), Research Society for The Study of Diabetes in India (RSSDI), Mayo Clinic and Annual Conference of The Association of Physicians of India ( APICON), have helped the division to get due recognition for Indoco CND's product range by high end Consulting Physicians, Cardiologists and Diabetologists.

This division caters to super-specialists like Cardiologists, Diabetologists, Endocrinologists, Nephrologists and high end Consulting Physicians, with an objective to strengthen the Company's brsence in the fast growing chronic segment. The main brands of this division are Cal-Aid, Prichek, Amchek, Obi-X and Telmichek.

WARREN EXCEL and WARREN VISION:

These divisions solely cater to Ophthalmologists with a separate set of products, which enable both the divisions to create a major brsence in ophthalmic anti-oxidants, lubricating/tear substitutes, anti-infectives and anti-allergic therapies through non-conflicting products. The major brands of these divisions are Homide, Irivisc, Macuchek, Mo-floren, Renolen, etc. Homide, the leader brand in its category, continues to grow well. These divisions have garnered reasonable brsence in surgical segment, as well as in anti-glaucoma segment.

ETERNA:

Eterna division is primarily brsent in sub-chronic, nutritional and pain management therapies, along with therapies like anti-infectives and gastrointestinals. Eterna division has consolidated its brsence with Orthopedicians and Consultant Physicians. The main brands of this division are Osteochek, Lorchek, LP Slim, etc. The division has added new brands like CQ-Heal, Flavestin, Dolinsta and Theorem in the pain management segment.

INSTITUTION and Indoco IMPULSE:

Institution division deals with Government health departments, including ESIC, Railways, BHEL, SAIL, DHS, Defence, etc. The division works closely with these institutions to register the Company's products in their formulary and participates in various tenders for branded and proprietary products. Rate contracts and tenders are awarded at regular intervals by these Government institutions. With continuous follow up and leg work of the field personnel, the division could add proprietary products in various formularies and has fetched good sales orders.

The Indoco IMPULSE division taps corporate hospitals, as well as private nursing homes in critical care segment. Impulse division works with top super specialty doctors and is engaged in generating brscriptions for injectables, as well as oral antibiotics. In the very first year, the division was able to get entry into major corporate hospitals like Apollo, Inlaks, Bombay Hospital, CIMS, etc. High end carbapenems introduced by Impulse division has got well accepted amongst the super speciality consultants, who deal in critical care segment. New product introductions will give sizeable revenues to Indoco IMPULSE to achieve higher growth.

International Business

International business is steadily increasing its contribution in the total revenues of the Company. The strategy to sbrad the business across continents has ensured sustainable growth over the years

US

US Generics market has seen a number of consolidations to drive growth. The focus is also shifting from me-too generics to super generics, as growth in the generics market would be a challenge. Accordingly, Indoco is building a strong pipeline of niche products, which can differentiate the Company from others in the next 3-5 years. These products comprise of various dosage forms, including injectables. More and more First To File (FTFs) and Paragraph IV Drug Product Application filings are getting commoditized, emphasizing the need for specialty products.

Ophthalmics would be the major revenue driving factor for the US market, but to have a balanced product mix, the Company has also initiated activities on injectable products, with a pipeline of more than 10 injectable products. These injectable ANDAs will be filed in due course of time and will supplement Company's strength in the sterile products.

The Company has received the Establishment Inspection Report (EIR) from USFDA for all the manufacturing facilities in Goa. In March 2016, the Company received the approval (EIR) from USFDA for its solid dosages facility (Goa Plant I) inspected in October' 201 5. The approval (EIR) for its sterile and solid dosage facility (Goa Plant II), inspected in July'2015, was received on May 25, 2016 from USFDA

Europe:

Slow pace of growth in the economy, rising burden on Governments on account of healthcare cost and resultant pricing brssure have impacted the Pharma business in Europe.

UK and Germany are the major revenue generators in the region, followed by some of the Eastern EU countries. The Company has introduced strong foothold in UK, Germany and Spain, with tie ups with multinational companies. Apart from solid orals, liquid orals and creams, the Company has expanded its portfolio to EU specific injectables as well.

Strong regulatory capabilities has enabled own filings of Dossiers / registrations of products in various EU countries through Decentralized Procedure (DCP) and Mutual Recognition (MRP) Procedure. The Company has received EU GMP approval for its Sterile Injectable facility in Goa, during the current year.

Currently the business model revolves around Contract Research & Manufacturing (CRAMs), however, the Company is set to introduce its own products in eastern EU and other European countries, as well and has strategic partnership in Germany for tender business. Company has expanded its geographic reach to Benelux and Nordic countries, besides consolidating its business in Western Europe. Company's own product launches through generic companies will give a big boost to the business.

South Africa, Australia and New Zealand:

Indoco is now recognized as a reliable partner by the Generic Pharma Companies in South Africa, Australia and New Zealand. Aspen being the largest player and the Company's major partner in South Africa, the Company has also developed other customers in the region. Addition of new customers with multiple products and winning brstigious tenders, have contributed towards an imbrssive growth in these markets.

Emerging Markets:

Emerging Markets offer a good opportunity for strong growth for the Company's branded portfolio. Regulatory landscape is evolving in these markets, which raise entry barriers and weed out unhealthy competition. Political stability and currency debrciation may weaken the macro environment in some countries from Emerging Markets.

Indoco promotes the branded generic business not only through its distributors, but also with its own field force in selected countries. Indoco has consolidated its brsence in 20 countries of the African Continent, 6 countries in South East Asia, 3 countries in CIS and 3 countries in MENA region

The Company has started marketing products in the French West African markets of Ivory Coast, Mali, Gabon, Burkina Faso, Benin and Congo.

The focus would be to strengthen our brsence in the ophthalmic and dental range for higher growth in emerging markets without losing sight of our brsent product portfolio.

API Business:

The Government of India declared the year 201 5 as the year of 'API/ Bulk Drugs'. Under its 'Make in India' initiative, the Government intends to reduce India's dependence on China for its APIs and Intermediates. The API Industry is, however, concerned with high cost of effluent treatment in the wake of stringent environment laws framed for large chemical industries being applied and also due to poor / non-functioning of Common Effluent Treatment Plants (CETPs) in a number of industrial areas.

For Indoco, API Business primarily caters to captive requirements, especially towards API supplies against own ANDAs and Dossiers. Remaining capacity is used to produce APIs for sale in domestic, as well as export markets. The Company has three API manufacturing facilities, two of which have been approved by USFDA and are WHO GMP certified.

Kilolab manufacturing facility at Rabale was audited by USFDA in February, 201 5 and the EIR was received in June, 2015. Patalganga manufacturing facility was audited by USFDA in April, 2015 and audit closure, i.e. Establishment Inspection Report (EIR) was received in September, 2015.

The Company has a good product mix in ophthalmics, anti-diabetic and other therapeutic categories, backed by Drug Master Files (DMFs) and Certificates of Suitability for European Pharmacopoeia (CEPs). The Company offers full range of services with respect to API supplies in Regulated markets. New APIs are developed through non-infringing processes, which assure commercial viability and hassle free launch (circumventing IPR issues) of the products.

Construction of a new API manufacturing facility has been initiated to cater to the growing API business and to make new APIs available for ANDAs/ Dossiers pipeline for the Regulated markets.

Research and Development:

Indoco's state-of-the-art R&D centre is located at Rabale, Navi Mumbai and is well equipped with advanced technologies, modern instruments, research databases and latest regulatory softwares. The robust R&D capabilities within the Company include development of Finished Dosages and APIs, backed by Analytical Research.

The Company has now initiated development of 'Super Generics' and Novel Formulations are being developed for submission to USFDA through 505b(2) regulatory pathway. Safer alternatives in Ophthalmics are being developed by eliminating brservatives from formulations, and using patented multi dose container closure system.

Development of products for Regulated Markets is done using Quality by Design (QbD) principles and statistical tools like, Design of Experiment (DoE). Extensive optimization of formulation process in the lab scale is carried out with a view to create design space for the products, which ensures robust product development and smooth technology transfer to manufacturing sites. Indoco's core strength lies in its ability to excel in developing technologically complex products through a highly skilled team of over 300 scientists.

Anacipher:

Analytical Research Services

Anacipher, the analytical research division, provides specialized services like Genotoxic Evaluation, Impurity Identification, Isolation and Characterization, Residual Metal Catalyst, Polymorphism Studies, Particle Size Analysis and Impurity Standards. Identification & Characterization of Extractables and Leachables from pharmaceutical containers, closures and devices that are used in the packaging of drug products, is a new service being offered by AnaCipher.

The Anacipher Laboratory complies with all cGMP norms and the infrastructure is constantly upgraded by adding new technologies and competent staff. Anacipher is completely equipped to take up any kind of analytical challenge to support its customers.

Clinical Research Organisation (CRO)

AnaCipher CRO (a division of Indoco Remedies Ltd), is a Clinical Research Organisation, specialized in Bio-Availability and Bio-Equivalence (BA / BE) studies. The state-of-the-art-facility is sbrad over more than 30,000 sq. ft. area and is located in Hyderabad, India. AnaCipher CRO has been successfully audited by major regulatory agencies like, Drug Controller General of India (DCGI), World Health Organization (WHO), United States Food and Drugs Administration (USFDA), National Agency for Medicines and Health Products Safety (ANSM France), The Netherlands, UK's Medicines and Healthcare Products Regulatory Agency (UK-MHRA), Thailand FDA, Chile ANAMED, etc.

The centre is equipped with 98-beds, monitoring stations, phlebotomy stations, four-bed ICU, state-of-the-art analytical lab and capabilities of eCTD (Electronic Common Technical Document) submission.

AnaCipher has a database of more than 9600 healthy human volunteers. AnaCipher along with other CROs in Hyderabad, have tied up for the implementation of a 'Common Volunteer Database Management System' to track volunteers cross participation across these CROs.

The facility offers a complete range of BA/BE services, such as, bioavailability, bioequivalence, pharmacokinetic, steady state studies, food effect studies, taste evaluation formulation studies, single and multiple dose studies. The scope of these studies include study design, protocol brparation, subject selection, pharmacokinetic and statistical data evaluation, study result reporting and archival of study documents, in accordance with applicable regulations. More than 400 bioequivalence and pharmacokinetic studies have been conducted at this facility by Indian, UK and European Innovator and Generics Pharma Companies.

Regulatory Affairs:

Indoco has a team of 35 regulatory specialists who are engaged in submissions of DMFs (Drug Master File), Dossiers and ANDAs (Abbreviated New Drug Application) to Regulatory Authorities across the globe. The Company is equipped with 21 CFR (Code of Federal Regulations) (Part 11 compliant), eCTD, SPL (Structured Product Labeling) software and established ESG (Electronic Submission Gateway) with FDA and CESP (Common European Submission Platform) with European Agencies. Indoco's regulatory submissions in emerging markets are pursued aggressively as a result of which, more than 638 product registrations have been received from 38 countries.

Intellectual Property Rights (IPR):

During the year, the Company was granted four patents by Indian Patents Office for manufacturing processes of 4 APIs, viz., Olopatadine hydrochloride, Brinzolamide, Pregabalin and Nitro pyridine derivatives.

Out of patent application filings for finished dosages, 4 patents are granted in India and for APIs, 12 patents are granted (8 patents in India, 2 in Europe and 2 is USA).

Indoco's R&D efforts received due recognition with the 'Best Process Patent Award' for three international patents granted, two patents in US and one patent in EP for 'Process for brparation of Lacosamide and some n-benzyl-propanamide intermediate derivatives' and 'Process for the brparation of Tapentadol'. This award was brsented at Indian Drug Manufacturers Association's 54th Annual Day celebrations on January 23, 2016.

e) Human Resources:

With an effort to build transparent and effective communication with employees within the Organization, the Human Resource (HR) Team launched the Human Resource Management System (HRMS) Portal, viz., 'SAMWAD' with features like Online Leave Management, Performance Management Systems (PMS), etc.

Moving a step ahead towards the efforts for building leadership from within, HR started a new batch of GEMS (Guiding, Empowering, Mentoring, Supporting) at the Corporate Office and Research Centre under the mentoring and coaching initiative of the Organization. A convocation ceremony was held for the 2013-15 GEMS batch, who successfully completed two years of the development program.

With a view to further sharpen the collective leadership skills of the senior management, a multifactor leadership questionnaire (MLQ) assessment was conducted.

To strengthen the culture, shared values and beliefs, HR Team continued to perform various engagement activities for employees at different locations, like 'Annual Pooja' on Dusshera, 'Fun Fiesta' on Diwali,1st Anniversary celebration at CRO, Hyderabad and 'PACE-2016' a sports event on Chairman's birthday.

The management addressed all the employees on the occasion of beginning of new sales year, celebrating achievement of total revenue of Rs. 1000 crores and further shared the vision of the Organisation. On this occasion, the employees collectively made a commitment for plantation of 1000 saplings, donation of 1000 bottles of blood and 1000 school kits, organizing 1000 dental camp and 1 000 de-worming of school kids in Africa.

The Company continued to organize an Annual Strategy Meet for its 170 senior managers from marketing, as well as manufacturing and support functions to discuss and deliberate upon the strategies of the Organization. As a part of this meet, a change initiative 'Wheels to Wings' was unveiled to accelerate the speed to achieve higher growth in the coming years.

f) Future Outlook:

In line with the developments in domestic and global market, the company is aligning its strategies to capitalise on its core competencies, viz., Research & Development and Manufacturing. With the acquisition of a CRO, the Company is now completely integrated and will remain a brferred partner, offering complete solutions to generic companies worldwide.

Going forward, the Company's business from US and EU territory is expected to grow speedily, as ANDAs and Dossiers will be commercialized at regular intervals, as and when approved. While surging ahead in the Regulated Markets, Indoco is also consolidating its position in the Emerging markets through active brand promotion. Robust pipeline of products in multiple dosage forms, accompanied with flexible business model will enable the Company to have upper edge over competitors in international business.

At an appropriate time, the Company will have its own establishment in USA for marketing and distribution of products with Indoco label through Distribution cum-marketing and logistic companies.

The growth in Indian domestic market will be boosted by rise in consumer spending, rapid urbanization, increase in healthcare insurance and changes in lifestyle patterns. Company's domestic business continues to focus on brand building, new product launches and thrust on share in Acute & Sub-chronic segments. The Company has re-structured its domestic business and has added field force to accelerate growth and consolidate its brscription share from the speciality segments.

Expertise in Research & Development, backward integration of APIs in select products, newly acquired CRO, excellence in finished dosages manufacturing and a strong customer base will ensure consistent growth both in Indoco's Domestic as well as International business. Additionally, it will also exploit the larger opportunities through acquisitions and alliances in major markets for an inorganic growth