MIRA INFORM REPORT

Report Date :

29.08.2008

IDENTIFICATION DETAILS

Name :	TORRENT PHARMACEUTICALS LIMITED

Registered Office :	Torrent House, Near Dinesh Hall, Off Ashram Road, Ahmedabad – 380 009, Gujarat

Country :	India

Financials as on :	31-03-2008

Date of Incorporation :	15.07.1972

Com. Reg. No.:	2126

CIN No.: [Company Identification No.]	L24230GJ1972PLC002126

Tan. No.:	AHMT00474F

Pan No.:	AAACT5456A

Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

Line of Business :	Manufacturing and Marketing of Pharmaceutical formulations viz. Tablets, Capsules, Liquids, Injections, Vials, Ointments, Bulk Drugs and others and Medical Electronic Equipments.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 29000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company and a part of Torrent Group. The company is progressing well. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. business is active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual trade terms and conditions. The company can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office/ Corporate office :	Torrent House, Near Dinesh Hall, Off Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26585090/26583060
Fax No.:	91-79-26582100
E-mail :	info@torrentpharma.com, maheshagarwal@torrentpharma.com
Website :	http://www.torrentpharma.com

Factory 1 :	Indrad Plant: Village Indrad, Taluka Kadi, District Mehsana-382721, Gujarat, India
Tel. No.:	91-2764-233671-75, 233678-80
Fax No.:	91-2764-233676
E-Mail :	tplplant@icenet.net

Factory 2 :	Village Bhud and Makhnu Majra, Baddi, Tehsil Nalagarh, District: Solan, Himachal Pradesh
Tel. No.:	91-1795-246821
Fax No.:	91-1795-247159

Factory 3 :	Baddi Plant : Village Bhud, Makhnu Majra, Tehsil- Nalgarh, District- Solan, Himachal Pradesh, India
Tel. No.:	91-1795-246821
Fax No.:	91-1795-247159

R & D Facility :	Torrent Research Centre, Near Kanoria Hospital, Village Bhat, District Gandhinagar - 382428, Gujarat, India
Tel. No.:	91-79-23269124/23969100
Fax No.:	91-79-23269135/23969135/ 23969124-34
E-Mail :	trc@torrentpharma.com

Regional Offices:	Located at: New Delhi Mumbai Bangalore Kolkata Chennai Hyderabad

DIRECTORS

Name :	Mr. Sudhir Mehta
Designation :	Executive Chairman

Name :	Mr. Kiran Karnik
Designation :	Director

Name :	Mr. S. H. Bhojani
Designation :	Director

Name :	Dr. Prasanna Chandra
Designation :	Director

Name :	Mr. Mihir Thakore
Designation :	Non Executive and Independent Director (w.e.f. 23.10.2002)

Name :	Mr. Sanjay S. Lalbhai
Designation :	Director (w.e.f. 23.01.2003)

Name :	Mr. Markand Bhatt
Designation :	Director

Name :	Dr. C. Dutt
Designation :	Director (Research & Development)

Name :	Mr. Samir Mehta
Designation :	Managing Director

Name :	Prof. S Ramnarayan
Designation :	Director

Name :	Mr. Samir Mehta
Designation :	Managing Director

OTHER PERSONNEL:

Name :	Mr. Parthiv Parikh
Designation :	Company Secretary

Name :	Mr. Mahesh Agrawal
Designation :	GM (Legal) and Company Secretary

Audit Committee :	Dr. Prasanna Chandra, Chairman Mr. S. H. Bhojani Mr. Kiran Karnik Mr. Mihir Thakore

Securities Transfer and Investors Grievance Committee:	Sudhir Mehta, Chairman Markand Bhatt Samir Mehta

KEY EXECUTIVES

Name :	GM (Legal) and Company
Designation :	Secretary

MAJOR SHAREHOLDERS

AS on 31.03.2008

Category	No. of shares		Total Shares	% of shareholding
	Electronic	Physical
Promoters' Group	62688528	--	62688528	74.09
Mutual Funds and UTI	2401812	1600	2403412	2.84
Banks, FIs and Insurance Companies	1156956	1200	1158156	1.37
Foreign Institutional Investors/NRIs/OCBs	10600400	--	10600400	12.53
Other Bodies Corporate	1091154	9460	1100614	1.30
Indian Public	5901549	758701	6660250	7.87
Total	83840399	770961	84611360	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Pharmaceutical formulations viz. Tablets, Capsules, Liquids, Injections, Vials, Ointments, Bulk Drugs and others and Medical Electronic Equipments.

Products :

Generic Names of Three Principal Products of the company are as under:

Item Code No. (ITC Code)	300431.01
Product Description	Insulin

Item Code No. (ITC Code)	300490.89
Product Description	Alprazolam

Item Code No. (ITC Code)	300490.89
Product Description	Diltiazem HCL

Item Code No. (ITC Code)	300490.81
Product Description	Lamotrigine

Item Code No. (ITC Code)	300490.49
Product Description	Domperidone

Imports :

Products :

Raw materials, consumables stores, capital goods and medical electronic equipments

Countries :

Europe and Far East

Terms :

Purchasing :

L/C, D/A and D/P

PRODUCTION STATUS

The company’s production status for the year 31.03.2005 was as under :

Class of Goods	Units	Installed Capacity		Actual Production
		31.03.2006	31.03.2005	31.03.2006	31.03.2005
Formulations Tablets	Millions / ‘000 Nos	9400	5,000	2704104	1,904,668
Capsules	Million/’000 Nos	480	260	277166	146,952
Suspension/Liquid	Ltr.	1	--	496823	379,477
Injection /Vials	Million /Ltr.	26	20	58696	44,270
Vials / Cartidges	Nos	--	--	15743958	12,521,229
Ointment	Kg	--	--	16345	10,505
Bulk Drugs	Kg	18000	10,000	8828	9,279

GENERAL INFORMATION

Suppliers :

v Creative Printers Private Limited

v Dot Graphics Private Limited

v Faipack Private Limited

v Gujarat Printpack Publications Limited

v Kruti Print Packs

v Maulik Plastic Industries

v Non Stop Print N Pack

v Parikh Engineering Private Limited

v Patel Printing Press Private Limited

v Patwa & Sons

v Shree Rangam Packaging Private Limited

v Swastic Offset

v Unique Offsets

v Vapi Engineering Aids Private Limited

v Wellpack Papers & Containers Private Limited

Customers :

v Amishi Drugs & Chemicals

v Bharat Rubber Works

v Creative Printers Private Limited

v Dot Graphics Private Limited

v Kruti Print Pack

v Maulik Plastic Industries

v Parikh Packaging Private Limited

v Shree Rangam Packaging Private Limited

v Shreenath Packaging Private Limited

v Shree Kamlesh Art Printery

v Unique Offset

v Vishna Polypack

v Vasu Containers

No. of Employees :

500

Bankers :

v Bank of Baroda, Ahmedabad, Gujarat

v Corporation Bank, Ahmedabad, Gujarat

v Canara Bank, Ahmedabad, Gujarat

v State Bank of India, Ahmedabad, Gujarat

v Oriental Bank of Commerce, Ahmedabad, Gujarat

v Punjab National Bank, Ahmedabad, Gujarat

v UTI Bank Limited, Ahmedabad, Gujarat

Facilities :

PARTICULARS

31.03.2008

Rs. in millions

SECURED LOANS

Term Loan from Banks

2147.131

Term Loan from Financial Institutions

835.000

Short Term Loans from Banks

384.329

TOTAL

3366.460

Notes:

1) The Loans are secured by:

a) First equitable mortgage of immovable fixed assets and hypothecation of moveable fixed assets, present and future, located at formulation manufacturing facilities, village Indrad, research facilities, village Bhat, and corporate office, Ahmedabad, all in Gujarat, on pari passu basis.

b) First Equitable mortgage of immovable fixed assets ad hypothecation of moveable fixed assets, present and future, located at formulation manufacturing facilities in Baddi, Himachal Pradesh.

C) Hypothecation of inventories and book debts.

2) The future annual repayment obligations on principal amount, for the above long term loans are as under:

2008-09	Rs. 709.200 Millions
2009-10	Rs. 631.000 Millions
2010-11	Rs. 279.000 Millions
2011-12	Rs. 824.300 Millions
2012-13	Rs. 269.300 Millions
2013-14	Rs. 269.300 Millions
Total	Rs. 2982.100 Millions

UNSECURED LOAN	31.03.2008 Rs. In Millions
Long Term Loan from Department of Science and Technology	Rs. 49.600
Short Term Loan from a Financial Institution	--
Total	Rs. 49.600


Banking Relations :	Good

Auditors :	C. C. Chokshi and Company Chartered Accountants

Membership :	v Confederation of Indian Industry

Associates/Subsidiaries :	v Ahmedabad Electricity Company Limited v Gujarat Lease & Finance Limited v Gujarat Torrent Energy Corporation Limited v Surat Electricity Company Limited v Torrent Cables Limited v Torrent Exports Limited v Torrent Gujarat Bio-Tech Limited v Torrent Investments Private Limited v Torrent Leasing and Finance Limited v Tsunami Tours and Travels Private Limited v Tsunami Pharmaceutical Private Limited v Torrel Cosmetics Private Limited v Zeal Pharmachem India Private Limited v Zeal Drug and Chemicals v Torrent Scitech India Private Limited v Sanofi-Torrent (India) Limited (upto 14.02.2002) SUBSIDIARIES v TPL Finance Limited v Torrent Do Brazil Ltda., Brazil v Zao Torrent Pharma, Russia

Collaboration :	v William Harvey Research Institute, U.K. v Charterhouse Therapeutics Limited, U.K. v National Chemical Laboratory, Pune, Maharashtra v Centre for Cellular and Molecular Biology, Hyderabad, Andhra Pradesh v Centre for Biotechnology, New Delhi v Anna University, Chennai, Tamilnadu

Holding/ Parent Company :	v Torrent Private Limited

CAPITAL STRUCTURE

As on 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.5/- each	Rs. 750.000 millions
2,500,000	Preference Shares	Rs.100/- each	Rs. 250.000 millions
	TOTAL		Rs. 1000.000 millions

Issued & Subscribed :

No. of Shares	Type	Value	Amount
84625360	Equity Shares	Rs. 5/- each	Rs. 423.127 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
84611360	Equity Shares	Rs. 5/- each	Rs. 423.057 millions
	Add: Amount originally paid up on 14000 Equity Shares forfeited		Rs. 0.035 million
	TOTAL		Rs. 423.092 millions

Note:

70980592 Equity Shares of Rs. 5 each were allotted as fully paid up bonus shares; out of which 42305680 shares were allotted by way of capitalization from Capital Redemption Reserve and 28674912 Equity Shares were allotted by way of capitalization from General Reserve.
1244768 Equity Shares of Rs. 5 each were allotted without payment being received in cash pursuant to the scheme of amalgamation.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		423.092	423.092	423.092
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5429.441	4220.724	3402.148
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5852.533	4643.816	3825.240
LOAN FUNDS
1] Secured Loans		3366.460	2639.751	2440.850
2] Unsecured Loans		49.600	150.000	0.000
TOTAL BORROWING		3416.060	2789.751	2440.850
DEFERRED TAX LIABILITIES		694.692	633.059	554.876

TOTAL		9963.285	8066.626	6820.966

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		4475.142	4031.191	3515.701
Capital work-in-progress		549.624	287.722	339.297
Advance for capital expenditure		236.346	110.122	0.000

INVESTMENT		1580.474	949.686	737.749
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1665.302	1858.855	1633.645
	Sundry Debtors	1984.772	1656.118	1111.015
	Cash & Bank Balances	976.714	102.463	609.613
	Other Current Assets	189.820	146.285	121.991
	Loans & Advances	701.377	492.724	360.974
Total Current Assets		5517.985	4256.445	3837.238
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1897.279	1414.305	1289.979
	Provisions	499.007	154.235	319.040
Total Current Liabilities		2396.286	1568.540	1609.019
Net Current Assets		3121.699	2687.905	2228.219

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		9963.285	8066.626	6820.966

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006

Sales Turnover		9959.049	8829.007	6919.698
Other Income		46.469	23.714	13.030
Total Income		10005.518	8852.721	6932.728

Profit/(Loss) Before Tax		1658.348	1241.036	909.781
Provision for Taxation		103.162	111.442	170.878
Profit/(Loss) After Tax		1555.186	1129.594	738.903

Earnings in Foreign Currency :
	Export Earnings	2221.753	1645.553	1344.249
	Licence Income	105.719	91.148	0.000
	Other Earnings	0.000	0.000	38.233
Total Earnings		2327.472	1736.701	1382.482

Imports :
	Raw Materials	1383.685	1043.684	1109.236
	Stores & Spares	48.501	50.690	38.511
	Capital Goods	151.551	100.923	114.409
Total Imports		1583.737	1195.297	1262.156

Expenditures :
	Manufacturing Expenses	2211.880	2197.173	1751.250
	Research and Development Expenses	914.051	739.576	0.000
	Raw Material Consumed	2848.701	2680.161	2686.664
	Purchase of Traded Goods	508.371	762.012	0.000
	Increase/(Decrease) in Finished Goods	204.479	[307.815]	(43.005)
	Employees Cost	1148.232	1106.667	0.000
	Salaries, Wages, Bonus, etc.	0.000	0.000	772.626
	Depreciation & Amortization	327.449	302.425	236.585
	Net Borrowing Cost	184.007	131.486	0.000
	Other Expenditure	0.000	7919.5	564.244
Total Expenditure		8347.170	7611.685	5968.364

QURARTERLY RESULTS

PARTICULARS			31.06.2008 1^st Quarter
Sales Turnover			2874.000
Other Income			9.100
Total Income			2883.100
Total Expenditure			2216.900
Operating Profit			666.200
Interest			55.700
Gross Profit			610.500
Depreciation			79.000
Tax			16.400
Reported PAT			515.100

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.59	0.62	0.63
Long Term Debt-Equity Ratio	0.58	0.60	0.59
Current Ratio	1.78	1.78	1.48
TURNOVER RATIOS
Fixed Assets	1.71	1.77	1.88
Inventory	5.62	5.10	4.77
Debtors	5.44	6.44	8.62
Interest Cover Ratio	8.95	7.10	10.42
Operating Profit Margin(%)	22.16	19.62	15.67
Profit Before Interest And Tax Margin(%)	18.86	16.22	12.46
Cash Profit Margin(%)	19.01	16.08	12.16
Adjusted Net Profit Margin(%)	15.71	12.69	8.94
Return On Capital Employed(%)	22.36	21.09	15.57
Return On Net Worth(%)	29.63	26.68	18.20

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was incorporated on 15^th July, 1972 at Ahmedabad in Gujarat having Company Registration Number 2126.

It was originally incorporated as a private limited liability company by Mr. Rajnikant C. Patel and his family members. It was taken over by Mr. Uttamlal Mehta of the Torrent group in June 1982.

On 28^th June, 1989 the company became a deemed public company and by a special resolution passed on 25^th July, 1992 at the Annual General Meeting, the company became public limited company. Torrent Laboratories Limited was amalgamated with the Company with effect from 1st April 1992 by an Order of Honourable High Court of Gujarat, dated 22nd December 1992.

In February 1994, the company came out with a public issue to set up manufacturing units, a new R and D centre, modernisation of manufacturing facilities and to augment long-term working capital. The company manufactures formulations in diverse product groups including Cardio-Vascular, Psychotropic, Anti-Diabetic, etc. At present, it is one of the top five pharmaceutical companies in India. Bulk drugs manufactured by the company include Atenolol, Cirpofloxacin, Norfloxacin, ect. The company has alliances with Novo-Nordisk, Denmark, for the manufacture of Insulin, Elf Sanofi, France, for Cardio-Vascular Drugs, Sanofi Disgnostic, France, for HIV Kits, Hepatitis Test Kits and Elisa readers.

In 1988, Torrent Medi-Systems (TMSL) was amalgamated with the company and in 1992, another group company, Torrent Laboratories Limited (TLL) was amalgamated with it. In 1994-95, India infusion (IFF) was merged with company. During 1998-99, the company discontinued manufacturing activities at its Vatva and Rajpur plants.

Recently, the company made a debut in therapeutic area of diabetics by introducing Enselin (Rosiglitazone) and Eurepa (Repaglanide). In addition, Vasoprin (ISMN), Topcef (Cefexime), Slenfig (Sibutramine), Deplatt (Clopidogrel), Venlift (Venlafaxime) are some of the other notable new products introduced during the year.

In February, 2001, it has launched De Platt (Clopidogrel), the drug for treating heart attack and stroke. De Platt is the first brand of clopidogrel to be launched in India. De Platt is used for prevention of lethal blood clots in bloood vessels. Torrent Do Brasil Limited a as small pharmaceutical company which was acquired by the company in 2001-02, has become a wholly owned subsidiary of the company. During 2001-02, the company has introduced 31 new products. The company has upgraded its Bulk Drug Plant at a cost of Rs. 130.000 millions and the commercial operations is expected to start by June, 2003.

The company entered into European market by incorporating subsidiary viz. Torrent Pharma GmbH.

BUSINESS

Subject is engaged in Manufacturing and Marketing of Pharmaceutical formulations viz. Tablets, Capsules, Liquids, Injections, Vials, Ointments, Bulk Drugs and others and Medical Electronic Equipments.

The company manufactures formulations in diverse product groups including cardio-vascular, psychotropic, anti-diabetic, etc. Bulk drugs manufactured by company include atenolol and ciprofloxacin, etc.

The company has alliances with Novo- Nordisk, Denmark, for the manufacture of insulin; Elf Sanofi, France, for cardio-vascular drugs; Sanofi Diagnostic, France, for HIV kits, hepatitis test kits and Elisa readers.

The company made a debut in therapeutic area of diabetics by introducing Enselin (Rosiglitazone) and Eurea (Repaglanide). In addition Vasoprin (ISMN), Topcef (Cefexime), Slenfig (Sibutramine), Deplatt (Clopidogrel), Venlift (Venlafaxime) are some of the other notable new products introduced during the year.

During the year, equity shares of the Company of face value Rs.10 each were sub-divided into two new equity shares of Rs.5 each and bonus shares were issued on post-split basis in the ratio of one bonus share for every existing share held.

The Board has recommended a dividend of Rs.2.50 per equity share on the expanded capital post issuance of bonus shares (50 % on fully paid up face value of Rs.5) (previous year Rs.8 per equity share, 80% on fully paid up face value of Rs.10), amounting to Rs.211.500 millions (previous year Rs. 169.200 millions). The tax on distributed profits payable on this dividend is Rs.29.700 millions (previous year Rs.23.800 millions) making the aggregate distribution Rs.241.200 millions (previous year Rs. 193.000 millions). The distributed profits are 37% (previous year 36%) of the net profits for the year. The proposed dividend would be tax free in the hands of the shareholders.

The sales and operating income increased to Rs. 9959.000 Millions from Rs.8829.000 Millions in the previous ear yielding a growth of 12.80%. The export turnover aggregated to Rs. 2359.100 Millions registering a growth rate of 16.97%. The operating profit for the year under review increased to Rs.2164.800 Millions as against Rs. 1674.900 Millions in the previous year registering a growth of 29.25%. The profits after tax for the year under review increased to Rs. 1555.200 Millions as against Rs. 1129.600 Millions in the previous year registering a growth of 37.70%. The earnings per share for the year was Rs. 183.800 Millions as against Rs. 133.500 Milliohns in the previous year.

CONSOLIDATED NUMBERS:

The consolidated sales of the Company and its subsidiaries was Rs. 13123.000 Millions for 2007-08 (previous year Rs. 12633.300 Millions). The consolidated net profit was Rs. 1346.800 Millions (previous year Rs. 935.100 Millions) registering a growth of 44%. The consolidated profit was less than the stand-alone profit of the Company mainly due to unrealized profits in inventories supplied to subsidiaries and losses in Heumann.

CAPITAL AND BORROWINGS:

During the year, there was no change in the equity share capital of the Company.

The total outstanding long term loans from banks / financial institution / others as on 31st March, 08 is Rs. 3031.700 Millions (previous year Rs. 2459.000 Millions). The Net worth stands at Rs. 5852.500 Millions as at 31st March, 08 representing an increase of Rs. 1208.700 Millions on account of retained earnings.

The Gross Fixed Assets increased by Rs. 1078.000 Millions representing capital expenditure on land acquisition for new projects, expansion of formulation manufacturing facility, expansion of Research and Development facility and other maintenance capital expenditure. Long term investments increased by Rs. 275.800 Millions mainly on account of increase in investments in subsidiaries and strategic investment to get a foothold in identified markets. The above activities were funded mainly from the term loans and internal accruals.

The Company had cash and cash equivalents aggregating to Rs. 1331.700 Millions as on 31st March, 08 as against Rs. 102.500 Millions as on 31st March, 08. This increase is largely on account of significant increase in cash generated from operating activities. The Company has sufficient financial
flexibility, in terms of available committed facilities from banks / financial institution to finance the future growth plans and capitalize on emerging opportunities.

SUBSIDIARIES:

Brief review of the important subsidiaries is given below.

ZAO TORRENT PHARMA (ZAO TP), RUSSIA:

ZAO Torrent Pharma, the wholly owned subsidiary of the Company in Russia, is essentially an importing nd distributing company, sourcing its entire requirement from the Company. For the year 2007-08 ZAO TP achieved revenue of RRU 304.58 million (Rs. 490.400 Millions), an increase of 11.60% from RRU 258.51 million (Rs. 439.500 Millions) for the previous year. Net loss after tax for the year was at RRU 4.23 million (Rs. 9.700 Millions) as against a net loss after tax of RRU 40.58 million (Rs. 70.000 Millions) for the previous year. At consolidated level, for the year 2007-08, the Russia and CIS operations of the Company registered revenue of Rs. 618.700 Millions (previous year Rs. 589.100 Millions).

TORRENT PHARMA GMBH (TPG), GERMANY:

During the year, TPG earned revenues of euro 2.98 million (Rs.170.200 Millions) as compared with euro 2.460 million (Rs. 143.800 Millions) for the previous year. Net profit for the year was at euro 0.67 million (Rs.38.400 Millions) as against a profit of euro 0.12 million (Rs. 11.100 Millions) for the previous year. At a consolidated level, for the year 2007-08, the European operations (other than Heumann) earned revenue of Rs.821.400 Millions as against revenue in the previous year of Rs.541.200 Millions.

HEUMANN PHARMA GMBH and CO GENERICA KG (HEUMANN), GERMANY:

Heumann posted revenues of euro 38.15 million (Rs. 2177.400 Millions) for the financial year 2007-08 as compared with euro 46.560 million (Rs. 2718.200 Millions) for the previous year. Net loss for the year was euro 3.480 million (Rs. 201.400 Millions) as against a net loss of euro 3.860 million (Rs. 203.400 Millions) for the previous year. At a consolidated level for the year 2007-08, Heumann earned revenue of Rs. 2229.800 Millions as against Rs2761.000 Millions in the previous year.

TORRENT do BRASIL LTDA. (TDBL), BRAZIL:

During the year, TdBL achieved revenues of Reais 81.390 million (Rs. 1771.100 Millions), as compared with Reais 79.510 million (Rs. 1668.900 Millions) in the previous year, registering a growth of 6.10%.

TdBL earned a net profit after tax of Reais 3.690million (Rs. 86.800 Millions), as compared to a net profit after tax of Reais 3.430 million (Rs. 85.500 Millions) in the previous year. At a consolidated level, the Brazilian operations earned revenue of Rs. 1789.700 Millions compared with Rs. 1677.400 Millions in the previous year.

Torrent Pharma Philippines Inc. (TPPI) and Torrent Pharma Inc. (TPI) were formed to develop business in Philippines and North America. These companies have commenced selling operations and are likely to have significant business potential. Torrent Australasia Pty. Limited, Laboratorios Torrent S.A. de C.V. and Torrent Pharma Japan Company Limited are at their formative stages and have not commenced any revenue generating activities.

INSURANCE:

The Company's plant, property, equipments and stocks are adequately insured against major risks. After taking into account all the relevant factors, including the risk benefit trade-off, the Company has consciously decided not to take insurance cover for loss of profit under the Consequential Loss (Fire) Policy. The Company also has appropriate liability insurance covers particularly for product liability and clinical trials.

DIRECTORS:

Markand Bhatt, Sanjay Lalbhai and Prof. S. Ramnarayan1 are liable to retire by rotation at the ensuing Annual General Meeting and being eligible have been proposed for re-appointment. The details of their re-appointment together with nature of their expertise in specific functional areas and names of the companies in which they hold office of a Director and/or the Chairman/Membership of committees of the Board, are provided in the notice of the ensuing Annual General Meeting.

1 - Prof. S. Ramnarayan resigned from the Board w.e.f. 7th May, 08 after the date of this report.

CORPORATE GOVERNANCE:

As required by clause 49 of the listing agreement, a separate report on corporate governance forms part of the Annual Report. A report from the statutory auditors of the Company regarding compliance of conditions of corporate governance forms a part of this report as Annex 3.

AUDITORS:

The Auditors, C.C. Chokshi and Company, Chartered Accountants retire at the ensuing Annual General Meeting and are eligible for re-appointment as Auditors.

CONTINGENT LIABILITIES:

a) Claims Against the Company not acknowledged as debts	31.03.2008
Disputed demand of Income Tax for which an appeal has been preferred	71.220
Disputed ESI Liability	21.805
Disputed legal Cases for supply of goods and services	0.178
Disputed Demand of Excise and Services Tax	0.844
Disputed Demand of Local Sales Tax and C.S.T	1.831
	95.878
b) the company has issued guarantees aggregating USD 8.100 Millions (Previous year USD 9.000 Millions) and EURO 7.500 Millions (Previous year EURO 5.000 Million) to secure lines of credit to its wholly owned subsidiaries. The outstanding amount of borrowing by the subsidiaries as on balance sheet date, converted at closing exchange rate is	181.975
c) uncalled liability on party paid shares of Torrent Australasia Pty, Limited, a wholly owned subsidiary.	20.690

To The Shareholders

Caveat:

Shareholders are cautioned that certain data and information external to the Company is included in this ection. Though these data and information are based on sources believed to be reliable, no representation is made on their accuracy or comprehensiveness. Further, though utmost care has been taken to ensure that the opinions expressed by the management herein contain their perceptions on most of the important trends having a material impact on the Company's operations, no representation is made that the following presents an exhaustive coverage on and of all issues related to the same. The opinions expressed by the management may contain certain forward-looking statements in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views expressed herein. Shareholders are hence cautioned not to place undue reliance on these statements, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this section, consequent to new information, future events, or otherwise.

NOTE:

Except stated otherwise, all figures, percentages, analysis, views and opinions are on consolidated financials of Torrent Pharmaceuticals Limited and its wholly owned subsidiaries and their businesses (jointly referred as Torrent or Company, hereinafter).

OVERVIEW:

Torrent is one of the leading pharmaceutical companies having presence in Indian and global markets. The Company's revenues are mainly from manufacture and sale of branded as well as unbranded generic pharmaceutical products. A further break down of pharmaceutical sales can be done as Domestic formulations (comprising branded pharmaceutical formulations sold in the domestic market), Contract manufacturing (mainly comprising of sourcing, manufacturing and supplying insulin formulations under the third-party brand name) and International operations (comprising sales outside India of branded and unbranded-generic pharmaceutical formulations).

The operating costs primarily comprise raw and packing materials, purchase of finished goods, staff cost, selling and marketing expenses, manufacturing overheads, research and development expenses and general overheads. The Company undertakes new drug discovery research, the expenses of which are included as part of research and development expenses.

PERFORMANCE SNAPSHOT:

The year was marked by consolidation of Company's operations to have profitable revenue streams sustainable over the future years. Selling and manufacturing efficiencies led to a healthy profit growth of 44%

Total operating revenues for the year reported a growth of 4%. The sales growth was weighed by a de-growth in Heumann business (Germany) due to severe price erosions and shift of volumes to segment in which Company was not present. Excluding Heumann, the Company's consolidated revenues grew by 11%.

Domestic Branded Formulation:

The Domestic Branded Formulations turnover for the year was Rs. 581 crores, registering a growth of 7% over the previous year. The revenue growth was mainly driven by Cardio Vascular, Anti Diabetic, Neuro-Psychiatry and Gastro management portfolios. Top 10 brands contributed to 41% of the total domestic formulation sales as against 44% during previous year.

As per ORG IMS data set for the financial year 2007-08, the Company registered a growth of 22.60% (previous year 13.20%) against a market growth of 14.80%. The table below sets forth the growth rates in therapeutic segments in which the Company has presence:

New Products:

New products have been a consistent growth driver of the market. The year witnessed introduction of a slew of new molecules and new combinations of existing products The Company continued its prominent position in various segments by introducing new molecules and also line extensions of existing brands. During the year, 52 (as compared to 49 in the previous year) new products were launched in the market. The Company continues to build market shares in new products launched in the previous years. The Company will continue to strengthen existing therapies through new product introductions with sharper focus as also expand into new therapies.

International Operations:

International generic opportunity is the future growth engine. Blockbuster drugs going off patent continue to offer significant opportunity over the next few years. Introduction of generics has been a significant factor in helping Governments in developed markets, to control the healthcare costs. This trend is also picking up in new geographies throwing up increasing opportunities for generics. Semi-regulated markets also offer an attractive opportunity, with higher margins. The size of the semi-regulated markets across Latin America, Asia, Eastern Europe and Africa is expected to expand at attractive rates as economic growth drives a boom in healthcare spend. Most of these markets are branded generics markets, thus, offering better margins. Over the last few years, the Company has, therefore, developed a strategy and built infrastructure and capabilities focused on tapping these lucrative opportunities. The manufacturing facilities are upgraded to meet stringent quality assurance standards of the highly regulated developed countries; at the same time maintaining the competitive cost advantage. Torrent Research Center (TRC), the research and development facility, is upgraded to develop international generic versions of selected molecules in the required time frame and prepare the necessary regulatory dossiers for obtaining timely marketing approval in regulated markets. Going forward these processes will be further strengthened to sustain the growth.

Guided by the above-mentioned overall strategy, the current international operations are focused on five thrust areas: Brazil and Latin America, Russia and CIS countries, Europe, North America and Rest of the World comprising of less regulated countries of Africa and Asia. The Company's position in Brazil has considerably strengthened over the years with the region having reached a turnover of Rs 1771.100 Millions growing at 6.20%. The Company consolidated its operations in Brazil by streamlining trade channel inventory and credit norms to its distributors. While the above measures resulted in a temporary dip in primary sales growth, the secondary sales grew at a healthy 19.10% (Source IMS Feb 08). Sales in Russia and CIS market reached Rs 590.200 Millions, growing by 3%.

Europe registered a growth of 63% and with the sales at Rs 635.100 Millions. This market has started providing the growth momentum to the international business. 3 new products were introduced during the year and the Company has a strong pipeline of 40 molecules for launch in the coming years. During the year the Company successfully entered the highly competitive US market with launch of Citalopram and recording a sales of Rs 18.400 Millions. As at March 08, the product portfolio comprises of 4 approved ANDAs, 11 ANDAs under approval and 35 ANDAs under development. Considerable investments have been made in product development for US market and the healthy product pipeline is expected to yield significant revenue growth in the coming years.

Heumann Pharma GmbH and Co Generica KG (Heumann), the wholly owned subsidiary operating in Germany posted sales of Rs. 2042.500 Millions (Euro 35.8 million) and incurred a net loss of Rs. 201.400 Millions(euro 3.5 million). The German market witnessed significant changes owing to the ongoing healthcare reforms in the Country. Prescription of doctors is fast losing relevance and relationship building with pharmacies and entering into contracts with insurance companies is gaining importance. In response to these changes, Heumann did away with its doctor field force, restructured the head office set up in tune with this and has positioned itself in line with the new growth drivers. The restructuring has resulted into significant reduction of fixed costs with leading to a low breakeven sales level. Successful shifting of product manufacture to India will result in reduction in cost of goods sold in the second half of this year leading to margin expansion.

MANUFACTURING:

To cater to the growing needs of the domestic markets, a capacity expansion of 30% in tablet formulations was undertaken at Baddi plant. The project is nearing completion and would be ready for commercial production early next year. The project execution for the new vial-filled injectible formulation manufacturing facility with a capacity of 29.000 Millions vials per annum at Chatral is progressing as per schedule and is expected to commence commercial production during financial year 2009-10.

With a view to augment the manufacturing capability for its international operations, the Company has acquired lease hold land at Pharmez SEZ, at taluka Sanand; district Ahmedabad. The Company has received permission of the Kandla SEZ authority to set up a facility at the SEZ.

During the year the Company effected site transfer of 48 products of Heumann, Germany from various high cost European manufacturing locations. This will help to reduce the manufacturing cost and improve margins in German operations. The Company commenced manufacturing activities for production for US market at its USFDA approved facilities at Chatral.

Both the manufacturing facilities at Baddi and Chatral, undertake cost reduction initiatives on an ongoing basis. In this regard, measures are being taken to continuously upgrade the manufacturing facilities. An important cost reduction program undertaken during the year was in the area of solvent recovery wherein significant savings are expected in solvent usage in the manufacturing process of the API Plant.

RESEARCH AND DEVELOPMENT:

Discovery Research:

The Company is currently working on 7 in-house New Chemical Entities (NCE) projects within the areas of Diabetes and its related complications, obesity and cardiovascular disorders. The Company has cumulatively filed 307 patents for NCEs from these and earlier projects in all major markets of which 139 patents have been granted / accepted so far.

The Advanced Glycosylation End-Products (AGE) program has completed Phase-I clinical trial in UK and India. Company believes that its AGE Program has attractive development potential in diabetic heart failure and certain long-term complications arising out of AGE formation, accordingly the clinical developments have been initiated. Out of the other 6 projects, 3 projects are in advanced pre-clinical stage and rest 3 are in discovery stage.

A soft loan of Rs. 99.200 Millions has been sanctioned by the Department of Science and Technology, Government of India, under Drug and Pharmaceuticals Research Program of which an amount of Rs. 49.600 Millions was received.

Developmental Research:

The Company is having a healthy product pipeline for development for offering in European and U.S. markets on their patent expiry. During the year, the company completed development for 9 molecules for the EU market and 9 molecules for U.S. market.

Substantial new product development is being conducted for other regulated and semi-regulated international generic markets and also for the Indian market.

The Company continues to invest significant resources in R and D, the R and D expenditure during the year was up by 26% to Rs. 971.600 Millions from Rs.770.100 Millions in the previous year.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Indian Pharmaceutical Market:

Overview:

The domestic formulations market has been witnessing double digit growth in recent years with Indian companies continuing to dominate the market. Population growth, increased healthcare access, increasing affordability and other epidemiology factors are some of the key factors which point to continuing record growth levels. Manufacturing operations are largely concentrated in excise free zones and compete with low cost of manufacture.

During the financial year, the domestic pharmaceutical market experienced a growth rate of 14.80% (previous year 14.30%), largely driven by volume and new product introductions. As per ORG-IMS data base, the estimated size of the domestic market for FY 2007-08 was Rs. 320950.000 Millions.

Despite the implementation of patent regime new drugs essentially patented prior to 1995 continue to be launched at the same pace as the preceding years. New products continue to be the key revenue driver. Over the coming years, patented products are expected to constitute about 10% of the overall pharmaceutical market.

Anti-diabetic, anti-infectives, Neuro/CNS, gastrointestinal and cardiology are some of the therapeutic categories which grew faster than the rest. Over the next few years, the therapy mix will gradually move in favour of specialty and super specialty therapies, however, mass therapies such as anti-infective and gastro intestinal drugs will continue with their share of the mark.

Currently the Tier II cities (population less than 1 lac) and rural markets contribute to about 40% of the total market size. Demand in these markets is expected to grow much faster than the rest of the market.

Given the above developments, the critical success factors for the pharma companies would be differentiated product introductions, expanding the geographical reach by expanded sales and marketing network and aggressive sales promotion.

Regulatory Scenario:

DPCO : Currently, the prices of 74 drugs are controlled as per the mandate issued by the Drug Price Control Order, 1995. The draft of the National Pharmaceutical Policy is under discussion between the Industry and the government.

Patent Law : India recognized product patents from 1st January 2005. The new patent law does not permit introduction of new molecules patented after 1st January, 1995 by adopting a re-engineered process. The law has provided for a reasonable transition to generic companies in respect of products already in the domestic market before 1st January, 2005. Generic companies may continue manufacture and marketing of such products by paying reasonable royalty to the patent-holder after patent is granted. In the longer term, generic companies will not be able to introduce new molecules before expiry of the patent. This is expected to prolong the life of existing brands and slow down the pace of new drugs introductions.

Drug Law : During the year, the Central Drug Regulatory Authority (Drug Controller General of India) reviewed the rationality of fixed dose combinations (FDCs) available in the market. Based on the review the DCGI issued directives for withdrawal of certain FDCs. These and other factors indicate towards a more stringent drug regulatory environment leading to increased compliance costs and facility up-gradation costs for the industry in general.

International Market:

Key global generic markets approximately grew by 4%. USA is the largest generic market which put together with Europe account for 78% of the total global pharma market. Generic business is growing in these markets owing to the Governments encouraging genericisation. Generic substitution is actively encouraged in many countries in European markets as it helps bring down the prices of medicines. Generic penetration in European markets is still low indicating significant opportunities for generic players in the future. Over the horizon of 3-5 years a sizeable amount of molecules in the above regulated markets are going off patent. They offer a substantial opportunity for generic players, especially those with low cost development and manufacturing capabilities.

Emerging markets like Latin America, Russia, CIS, Eastern European countries are growing at double digit rates. These markets offer attractive pricing whereas competition is less intensive. Indian companies have been increasingly focusing on Global markets with a view to expand their geographical reach and their exports have been growing in excess of 20% in the past few years.

OPPORTUNITIES AND OUTLOOK:

The Indian pharmaceutical industry is going through major structural changes as seen above. These changes pose many challenges and opportunities to companies operating in this environment. In this context, the Company has identified the following growth initiatives:

Domestic:

* Accelerate growth through increasing doctor coverage, product exposure to new medical specialties, increased product focus, territorial expansion, new product introductions, new therapeutic areas and building strong sales operations systems.

* Growth from emerging market segments like organized buyer groups, pharmacy chains and corporate hospitals.

* Leverage on the strong franchise, specialised sales force and distribution built in the domestic market by in-licensing of molecules.

* Product and assets acquisition opportunities.

* Use of information technology for efficient customer servicing and improved sales productivity.

International Operations:

* Expiry of patents on a large number of products in developed countries coupled with government support for generics opens up a large market opportunity suitable to Company's current competence. The Company continues to make significant investments in developed markets to tap the huge business potential in these markets.

* Aggressive expansion in doctor and territorial coverage coupled with new products launch in Brazil and Russia / CIS to build on the current base. Higher healthcare funding promised by the Governments to increase the current per-capita spends on healthcare is expected to drive the growth in these markets.

* Build on the success of Brazil and expand Latin American operations by entering into new markets like Mexico.

* Aggressively tap unexploited opportunities in the rest of the world markets by extending the domestic market product portfolio in semi-regulated markets and by extending the EU and US market product portfolio in regulated markets of Asia and Africa.

* Select new markets, new therapeutic areas and acquisitions for future growth.

Research and Development:

* Collaborative research.

* Development of New Drug Delivery Systems (NDDS) to create differentiated products and market exclusivity in commodity generics market.

* Selective New Chemical Entity (NCE) research, primarily with respect to metabolic complications.

THREATS, RISKS AND CONCERNS:

Discovery research:

The key risks are high rate of failure and long duration of a discovery project coupled with significant upfront costs to be incurred before results are known. The Company today may not have resources to carry through a discovery project to final commercial stage. These risks are sought to be mitigated by seeking suitable alliances with partners at appropriate stage to share the risks and rewards of the project.

The expanded bio-equivalence facility will be used for safety and efficacy studies for the generic products meant for the regulated markets and the facility has to undergo the regulatory approvals. There may be a risk associated with studies conducted if the regulatory approvals are delayed.

Torrent's premier discovery molecule AGE Breaker has shown positive results in pre-clinical toxicity studies and in Phase-I clinical trials, showing good safety margins in human volunteers. The positive results have built confidence to take the risk associated with Phase-II clinical trials aimed towards showing efficacy in diabetic patients.

Product liability risks:

These risks are sought to be managed by appropriate laboratory and clinical studies for each new product, compliance with Good Manufacturing Practices and independent quality assurance system. The Company also has an insurance cover for product liability.

Attrition rate:

The Company faces high attrition levels, particularly in sales force, R and D technical staff and production technical staff. This disrupts the smooth working of the Company, inter-alia, leading to disruption and delays in projects, loss of customers and sales, and increase in the cost of recruitment and training. The Company pro-actively manages this phenomenon through various measures including aggressive and timely recruitments, industry compatible remuneration / incentive system and strengthening of the human resources function.

New product risk:

New product development and launch involves substantial expenditure, which may not be recovered due to several factors including development uncertainties, increased competition, regulatory delays, lower than anticipated price realizations, delay in market launch and marketing failure. The Company manages the risk through careful market research for selection of new products, detailed project planning and monitoring.

Domestic Market:

Price control:

The domestic market is subject to price control under DPCO, 1995. In the event Government reduces the prices of Company's products under DPCO or introduces price control on products currently not subject to such control, the profit margins could be significantly affected. The Company manages its product portfolio so as to move away, reduce and minimize the product weightage of drugs under price control.

INTERNAL CONTROL SYSTEM:

The Company has a reasonable system of internal control comprising authority levels and powers, supervision, checks and balances, policies and procedures. The system is reviewed and updated on an on-going basis. The Company continuously upgrades its internal control systems by measures such as strengthening of IT infrastructure and use of external management assurance services. The Company has in place a well defined internal audit system whereby an internal audit is performed across locations of the Company and the results of the audit findings are reviewed by the Audit Committee.

Fixed Assets:

Freehold Land
Leasehold Land
Buildings
Plant and Machineries
Electrical Installations
Furniture and Fixtures
Office and Factory Appliances
Vehicles
Computer Software

Website Details :

Company Profile:

These words sum up the efforts of the Torrent group, which integrates people, processes and potential towards the betterment of mankind.

It all began with the toil of one enterprising individual, Shri. U N Mehta, when he ventured on his own to create history in the Indian pharmaceutical industry by implementing successfully the concept of niche marketing. His journey, characterised by ups and downs, reached a milestone in 1970, with the launch of Trinicalm Plus, an effective tranquilizer in the niche segment, central nervous system (CNS).

The foundations for Torrent were laid when 'Trinity Laboratories' began operations under the able guidance of Shri Mehta whose efforts are worthy of emulation.

'Trinity' was renamed 'Torrent' and with this not only did the company get a new name, it also focused on establishing its own manufacturing facilities in the early 80s. Torrent augmented its efforts with the expansion of its manufacturing capacity, emphasis on marketing and creating business opportunities through focus on exports. Torrent Pharmaceuticals Limited recorded a quantum leap in the year 1994. It has also been rated India's ninth best company among capital intensive companies in terms of ROCE in a study by ETIG-BCG in 2001.

In recognition of the consistent performance Torrent Pharmaceuticals Limited has been receiving accolades from various quarters, such as the President's award for highest pharmaceuticals exports of Rs. 1570 million in 1991-92. The Company that had a humble beginning has now grown to become one of the leading players in pharmaceuticals.

It has ambitious plans for the years ahead. The emphasis is on Post-2005 opportunities with greater focus on the international market, in particular the lucrative North American market.

Corporate Profile

The flagship company of Torrent group, Torrent Pharmaceuticals Limited, is a dominant player in the therapeutic areas of cardiovascular (CV) and central nervous system (CNS) and has achieved significant presence in gastro-intestinal, diabetology, anti-infective and pain management segments.

To cater to new niche segments and sharpen its focus among customers, Torrent Pharma has six marketing divisions, each catering to defined therapeutic segment. A 2300 strong field force caters to around 2,00,000 doctors across the country, which makes it rank fifth in terms of market reach.

Torrent Pharma’s competitive advantage as a manufacturer stems from its world-class manufacturing facilities. Its manufacturing facilities at Indrad, Gujarat, comply with WHO, cGMP, MHRA and TGA norms and have received ISO 9001, ISO 14001 and OHSAS 18001 (Occupational Health and Safety Management System) and ISO/IEC- 17025 certifications.

With a view to cater to its growth requirements, Torrent Pharma commissioned a new formulations manufacturing facility at Baddi, Himachal Pradesh, in November 2005. The facility has a capacity to manufacture 3600 million tablets, 400 million capsules and 18 million Oral Liquid bottles, per annum and would cater to the domestic formulations requirement.

Torrent has a modern and well-equipped state-of-the-art R and D Centre, built with an investment of US $ 40 million. It is manned by more than 525 highly qualified scientists, with a combined experience of over 2500 scientific man-years in Drug Discovery and Development. Torrent Pharma has earmarked 9% of sales year-after-year for R and D advancement.

In the International operations arena, Torrent Pharma exports to more than 50 countries around the world with over 1000 product registrations. The international business has been broadly divided into five zones- USA, Latin America, Russia and CIS, Western Europe and CEE and Rest of the World (ROW). For its export excellence in International Business, Torrent Pharma has won several prestigious export awards.

Torrent Pharma is now gearing up to enter the advanced highly regulated international markets. Torrent Pharma has incorporated Zao Torrent Pharma in Russia, Torrent Do Brasil Limiteda in Brazil, Torrent Pharma GmbH in Germany, Torrent Pharma Inc. in USA and Torrent Pharma Philippines Inc. in Philippines. These wholly owned subsidiaries will become a springboard for entry into several regulated and less regulated international markets.

Message from Chairman:

"To embark on a journey of success one needs the tools of preparedness, foresight and strategy. These lead to the path of growth and high quality operation. It is imperative to combine these three forces in an industry, where every drop of medicine and every capsule acts like a pivot tilting the pan balance of life in favour of fitness and wellbeing.

Realising the responsibility on the shoulders of each member of Torrent Pharmaceuticals Limited, they endeavour to be one of the most competitive companies in the industry with emphasis on efficiency in operations, reliability for customers and thrust on discovery and development of New Chemical Entities.

As the human existence is challenged by incomprehensible diseases and ailments, they attempt to reach the core of scientific processes to unearth their remedy.

They are an organisation that combines scientific, financial, managerial and operational skills and resources to rejuvenate the life. As them research assets, business infrastructure and human capital integrates to flower a robust performance to provide an impetus to the Indian pharmaceutical industry as whole.

They are a company, which was cradled by the most arduous and sincere entrepreneur in the country, benefited with the support of the flourishing economy of the state and the presence of a diligent citizenry eager to attain success.

Gearing up for the future, they have the key success factors necessary to withstand the winds of change. The encouragement provided to build a highly skilled and creative research and development team, which is reinforced by the state-of-the-art infrastructure. Their well-recognised market presence with a strong product portfolio, which is being marked up with newer brands. Streamlined and efficient manufacturing capabilities, which boosts of technical prowess, high quality production and cost effectiveness. Also a well monitored marketing and distribution network, which is aimed at attaining brand equity among their wide-reaching customer base.

The success and eminence of Torrent Pharmaceuticals Limited began as the dream of one man extended to be transformed into the dream of many. They strive to accomplish their dreams and goals to bring greater effulgence in the future."

Board of Directors ::

Mr. Sudhir Mehta - Chairman ::

Born in the year 1954, Mr. Sudhir Mehta obtained his Bachelors' Degree in 1974. Soon after he took a plunge into the business arena to assist his father, the legendary U N Mehta. Known to possess a pro-active and aggressive approach to business, his gutsy nature and conviction have led to Torrent Pharma's success in the exports markets, particularly Russia. His drive to excel is deeply rooted in his commitment to investors.

As Chairman, Torrent Group, Sudhir Mehta has taken calculated risks that have, time and again, borne rewards for the Group. His other directorships include Torrent Private Limited, Torrent Power Limited, Arvind Mills Limited, Torrent Power Grid Limited, Torrent Pipavav Generation Limited, and Torrent Energy Limited

Mr. Markand Bhatt ::

Born in the year 1946, Mr. Markand Bhatt, a PGDM from Indian Institute of Management, Ahmedabad, after a brief professional career with reputed organizations, practised as a Management Consultant for over two decades and was associated with various premier government organizations and private groups such as Torrent, Nirma, Raymond Woollen Mills, etc. What started as a client-consultant relationship with Torrent Group, culminated in his being associated full time with the Group from the early nineties.

As Managing Director of Gujarat Torrent Energy Corporation Limited (GTEC), Mr. Bhatt was instrumental in the successful implementation of the 655 MW dual fuel Combined Cycle Power Project, within budgeted costs and estimated time frames at a cost of Rs.22470.000 Millions. GTEC was divested in 1999 for strategic reasons under his leadership. Mr. Bhatt, who became the Group Chief Executive Officer of the Torrent Group in 1999, was actively involved in the consolidation phase (1999-2003) of the Torrent Group.

His other directorships include Torrent Power Limited, Torrent Pipavav Generation Limited, and Torrent Energy Limited

Mr. S. H. Bhojani ::

Born in the year 1943, Mr. S.H. Bhojani obtained his Bachelors Degree in Science (B.Sc.) and Masters Degree in Law (L.L.M.) with specialization in International Law, Company Law, Labour Law and Banking Law. He has been associated with the Company since 2001. Mr. Bhojani started his career in 1969 with Bharat Bijli Limited as an Assistant Company Secretary. Over the last 3 decades, he has worked with renowned companies like Bombay Suburban Electric Supply Limited, now Reliance Energy Limited, Crompton Greaves Limited and finally with ICICI Limited, now ICICI Bank Limited His innings with ICICI spanned 28 years, starting as a legal officer and eventually rising to the rank of Deputy Managing Director. He has the distinction of being the first ever legal professional to become a director on the Board of any bank or financial institution. He retired from ICICI in April 2001 and is presently practicing as partner in the renowned legal firm M/s Amarchand and Mangaldas and Suresh A Shroff and Company

His other directorships include National Commodity and Derivatives Exchange Limited, and National Collateral Management Services Limited

Dr. Prasanna Chandra ::

Born in the year 1946, Dr. Prasanna Chandra is an MBA and Ph.D. a Doctorate in Finance, with over three and half decades of teaching and training experience at various institutions in India and abroad. He has been associated with the Company since 2001 as Director. Dr. Chandra has authored several books, served on the boards of reputed organisations, and has been a consultant to many companies. He has received several honours, including the Best Teacher Award from the Association of Indian Management Schools.

Mr. Kiran Karnik ::

Born in year 1947, Mr. Kiran Karnik holds a Bachelors' Degree (Hons.) in Physics. He obtained his Post-Graduate Diploma in Management from Indian Institute of Management, Ahmedabad. He has been associated with the Company since year 2001. He has worked with world-renowned institutions, beginning with Atomic Energy Commission and thereafter with ISRO and Consortium for Educational Communication and Discovery Communications. He has been a Consultant for the United Nations and its sister organizations. He has played a pioneering role in the area of educational and development communications, using advanced space-based technology to take education and development to remote and rural areas of India. He is currently serving as President of National Association of Software and Service Companies (NASSCOM), India.

His other directorships include Emaar MGF Land Limited

Mr. Sanjay Lalbhai ::

Born in the year 1954, Mr. Sanjay Lalbhai holds a Bachelors' degree in science from Gujarat University and Master's degree in Management Studies from the University of Bombay. He is associated with the Company since 2003. He is one of those renowned entrepreneurs who have managed to put Ahmedabad on the global map in the context of its successful textile industry, as Managing Director of the Arvind Mills Limited, a large integrated textile mill.

His other directorships include Arvind Mills Limited, Arvind Spinning Limited, Mauritius, Amol Dicalite Limited, Arvind Worldwide Inc., USA, Arvind Worldwide (Mauritius) Inc., and Arvind Overseas Mauritius Limited

Mr. Mihir Thakore ::

Born in the year 1955, Mr. Mihir Thakore is a leading practitioner of law in Ahmedabad and holds a Bachelors' degree in Commerce and Law. He has had a long standing association with the Company and the Group as its legal counsel and since year 2002 he has been associated with the Company as director. Mr. Thakore's career spans over a period of more than two and half decades. He was appointed as Senior Standing Counsel for the Income Tax Department in the year 1990. He was designated as Senior Advocate in the year 1995. He was also imparting his immense knowledge and experience to students in the post graduate centre of one of the leading law college in Ahmedabad.

Dr. Chaitanya Dutt ::

Born in the year 1950, Dr. Chaitanya Dutt holds an MD in Medicine. He practiced as a consulting physician before joining the company in 1982. Since then he has been associated with the Company. His rich experience spans areas of Pharma R and D, clinical research, manufacturing, quality assurance, etc. He is one of the key professionals in the top management team of the Company. He has been instrumental in setting up the Torrent Research Centre (TRC), the research wing of the Company. Under his prudent guidance and leadership, TRC has achieved tremendous progress in the areas of discovery research as well as development work on formulations.

Mr. Samir Mehta - Managing Director ::

Born in the year 1963, Mr. Samir Mehta, a commerce graduate, holds an MBA degree from the B.K. School of Business Management, Ahmedabad. He has been associated with the company since 1986 as director and since 1989 as Managing Director. His rich experience spans all areas of operations such as finance, human resources, manufacturing, marketing, etc. To a substantial degree, the sustained performance of the Company is a result of the exemplary leadership of Mr. Samir Mehta, who has been associated with the Company since its early days. He has ably tackled the external environment and has been responsible for setting the guiding policies and principles. His foresight has been significantly responsible for nurturing the Company from its childhood to a mature adult stage.

His other directorships include Torrent Private Limited, Torrent Power Limited, Torrent Pipavav Generations Limited, and Torrent Energy Limited

Milestones

2006	The API and formulations manufacturing facilities located at Indrad (Gujarat, India) got US FDA approval
2006	Entered into an in-licensing deal with Tasly of China to market its Cardiotonic pill in India
2006	Torrent Pharma Japan Company, Limited incorporated in Japan
2005	Torrent Australasia Pty Limited incorporated in Australia
2005	New manufacturing unit at Baddi, Himachal Pradesh, set up to cater to domestic formulations market. Torrent Pharma signed an agreement with Novo Nordisk India to establish a new, dedicated formulation and packaging facility for Insulin, exclusively for Novo Nordisk. Acquired Heumann Pharma GmbH and Co Generica KG, a Pfizer group company, in Germany. Two new marketing divisions- AXON and NEURON set up to cater to neuropsychiatry segment. Entered into a research collaboration with AstraZeneca for developing novel anti-hypertensive drug.
2004	Torrent Pharma Philippines Inc. set up. Torrent Pharma’s manufacturing facility at Indrad received MHRA (UK) and TGA (Australia) approvals Restructuring of marketing divisions and addition of new division, Delta.
2003	Brazilian Sanitary Surveillance Agency accredited Torrent’s R and D Centre with ANVISA, authorizing it to conduct Bioequivalance Studies. IDMA Quality Excellence Award Gold Trophy for its formulations and API facilities. Torrent Pharma Inc. set up in USA. GMP Certification received from European Union by Torrent Pharmaceuticals Manufacturing Plant MCC South Africa approval received by Torrent Pharmaceuticals manufacturing plant.
2002	Acquisition of a small Brazilian company, renamed "Torrent do Brasil Ltda." Discovered and patented AGE (Advanced Glycosylation End-products) molecule. Torrent Pharma’s manufacturing facilities certified with ISO 14001:1996. Torrent Pharma’s manufacturing facilities accredited with OHSAS 18001:1999. Torrent’s R and D Centre received ISO/IEC 17025:1999 for its facilities by National Accreditation Board for Testing and Calibration Laboratories (NABL). Addition of a new marketing division, MIND
2001	Torrent Pharma’s manufacturing facilities received ISO 9001:2000 Certificate. IDMA Quality Excellence Award Gold Trophy for its formulation facility. Torrent Pharma ranked in the top 10 Indian Companies in terms of Return on Capital Employed (ET - BCG Study Feb - 2001).
1999	Restructuring of Torrent Pharmaceuticals Limited through formation of three new divisions – Prima, Vista, Psycan.
1998	Torrent Exports renamed as Torrent Limited as part of restructuring and consolidation exercise.
1997	India Infusions Limited merged with Torrent Pharmaceuticals Limited.
1996	State-of-the-art R and D Centre commissioned. Torrent Pharmaceuticals Limited acquires pharma related investments and business of Torrent Exports Limited.
1995	Torrent Gujarat Biotech Limited plant commissioned.
1989	Second manufacturing plant of Torrent. Pharmaceuticals Limited at Chhatral.
1983	First Export Order
1980	First major manufacturing facility of Torrent Pharmaceuticals Limited at Vatva.
1971	Trinity Laboratories renamed as Torrent Pharmaceuticals Limited.
1959	Mr. U.N.Mehta started pharma operations.

Awards ::

2002-03

Torrent Pharma bagged the Gold Trophy for IDMA Quality Excellence Award 2003 for both Formulations and API manufacturing facilities

2001-02

Torrent Pharmaceuticals bagged the 'Best Suppliers' award by the Sri Lankan State Pharmaceutical Corporation.

Torrent Pharma bagged the Gold Trophy
for IDMA Quality Excellence Award for its Formulations facility and Silver Trophy for
its API manufacturing facility

2000-01

Torrent Pharma bagged the Gold Trophy for IDMA Quality Excellence Award for its Formulations facility

1999-00

GCCI Export Appreciation Award.

Torrent Pharma bagged the Gold Trophy
for IDMA Quality Excellence Award for its Formulations facility.

1996-97

Corporate Business Man of the year Award to Shri U.N.Mehta.

1992-93

Torrent Pharmaceuticals Limited received IDMA Quality Excellence Award.

1991-92

Torrent Exports Limited received Export Award from Govt. of Gujarat.

Torrent Exports Limited received National Export Award.

1990-91

Torrent Exports Limited received Export Award from Govt. of Gujarat.

Pride of Asia International award for excellence in Pharmaceuticals Products by international Friendship.

1989-90

Torrent Exports Limited received Chemexcil Trishul Award for highest Pharma Exports.

Torrent Pharmaceuticals Limited received IDMA Quality Excellence Award.

1988-89