Sreelakshmi24’s Blog

Bajaj Allianz, one of India’s leading insurer offering general and life insurance products , has announced a strategic investment of INR 50 crore ($10 million) in SKS Microfinance, India’s largest microfinance institution. .

The equity deal claimed to be the first-ever investment by an insurance company in an Indian microfinance institution (MFI) and signals an important step in the evolution of SKS Microfinance, one of the fastest-growing MFIs in the world.

Announcing this milestone, SKS Microfinance Founder and Chairperson Dr. Vikram Akula said, “An investment in SKS by a mainstream investor such as Bajaj Allianz is a vote of confidence in the company and in microfinance. Investment from a leading private insurer gives SKS greater stability and credibility, as well as a stronger capital base to extend our reach to serve more poor customers.”

MFIs traditionally start off as non-profit organizations and then convert to non-banking finance companies in order to achieve scale. In the initial phase, they attract financing from development banks followed by venture capital and private equity funds. Investment from Bajaj Allianz, marks the next phase in the evolution of microfinance as a safe and mainstream asset class.

SKS Microfinance and Bajaj Allianz Life Insurance partnered in April 2008 to launch India’s first micro-insurance product for the rural poor.

“We are happy with SKS and its unique business model that makes it an ideal vehicle for serving customers at the bottom of the pyramid. It is also in line with our objective of providing security and protection to the most disadvantaged sections of the society through micro-insurance products,” said Kamesh Goyal, Country Manager, Allianz & CEO Bajaj Allianz Life Insurance. Mr Goyal added that the investment follows rigorous due diligence which has created confidence that the investment would generate shareholder value and help build a secure society.

With this investment, SKS Microfinance will further improve its Capital Adequacy Ratio requirements. In recent months, SKS Microfinance has introduced a range of mainstream financial instruments into microfinance. It has issued Non-Convertible Debentures worth INR 250 million that were fully subscribed by YES Bank and also completed a rated pool securitization deal worth INR 1 billion (the pool was rated P1+  by Crisil signifying  ’highest safety’). SKS also issued Commercial Papers worth INR 250 Million and tied up with Standard Chartered to raise Rs 750 million from the Debt Capital Market and became the first MFI to list its debt security raising the bar on ‘accountability”.

SKS Microfinance currently has a membership base of 4.5 million households and has cumulatively disbursed loans worth over Rs. 8,000 crore.  It has a staff strength of 14,249 across 1,439 branches in 19 Indian states.

The Dun & Bradstreet Composite Business Optimism Index for Q2 2009 fell to a new low of 93.8, after touching 95.7 in Q1 2009. As compared to the previous quarter, the Composite Optimism Index declined by around 2%. However, the pace of contraction is lower as compared to the previous quarter; in Q1 2009 the Composite Optimism Index fell by 31% (q-o-q). On a y-o-y basis, the BOI for Q2 2009 recorded a decrease of 39% as against a decline of 43% in Q1 2009. Based on the responses received, it was observed that five out of the six optimism indices – namely, volume of sales, net profits, selling prices, new orders, and employee levels have registered a decline as compared to the previous quarter. Only one out of the six optimism indices – inventory levels – increased by seven percentage point as compared to the previous quarter. 

“While the BOI shows marginal improvement, sentiment continues to be dampened. Less than expected growth in GDP numbers is likely to have dented corporate confidence. Decline in industrial production for two consecutive months (Dec & Jan) and in exports for five months in a row (Oct-Jan) remains a cause for concern. However, 52% of BOI survey respondents expecting an increase in New Orders is a positive sign.”, said Kaushal Sampat, Chief Operating Officer, Dun & Bradstreet – India.”Going forward, the outcome of the forthcoming parliamentary elections and stability of the ensuing Government will play a key role in determining business expectations over the next quarter. The rapidly evolving dynamics of the global economy over the coming months will continue to have an impact on domestic business sentiment” he added.

Demand conditions are expected to remain subdued during Q2 2009. While about 50% of the respondents anticipate an increase in sales volume, as many as 27% of the respondents expect the sales volume to decline in Q2 2009. The resultant Optimism for Volume of Sales remained unchanged at 23% (this is the lowest value since Q1 2002) compared to the previous quarter. However, the resultant Optimism for Volume of Sales has declined by as much as 40 percentage points as compared to Q2 2008.

Profit expectations of the Indian corporate sector continued to taper further with as many as 28% of the respondents anticipating a fall in their net profits in the forthcoming quarter. Approximately 46% of the respondents expect an increase in profits during Q2 2009, while as many as 26% expect no change in profits. The resultant Optimism for Net Profits declined by around 5 percentage points compared to the previous quarter and stands at 18% (a 27 quarter low).

With moderating demand conditions, lowering input costs and the extension of excise duty cuts beyond 31-Mar-09, as many as 78% of the respondents expect the selling prices of their products to decline or remain unchanged in Q2 2009. While about 22% of the respondents expect selling prices of their products to increase, about 26% expect to witness a decline in their selling prices during Q2 2009. The resultant Optimism for Selling Prices stands at -4%, the lowest value registered since Q1 2002.

Approximately 52% of the respondents expect their order book position to improve (an increase of 4 percentage points from the previous quarter), while around 27% anticipate a decrease in the number of new orders during Q2 2009. The resultant Optimism for New Orders stands at 25% (a 27 quarter low) marginally lower compared to 26% in the previous quarter.

While about 34% of the respondents expect their level of stock to increase, around 48% expect to witness no change in their inventory levels during the Apr-Jun 09 quarter. Approximately 18% expect their level of stock to decline during Q2 2009 as compared to 22% during the previous quarter. The resultant Optimism for Inventory Levels stands at 16% an increase of around 7 percentage points as compared to Q1 2009.

The majority of respondents anticipate no change in the size of the workforce employed during Q2 2009. Approximately 65% of the respondents intend to keep the number of employees unchanged. While 24% of the respondents expect an increase in the number of employees, 11% expect a decline. The resultant Optimism for Employees stands at 13% for the Apr-Jun 09 quarter, a decrease of around 8 percentage points as compared to the previous quarter.

For more information see boi-q2-apr09-final

The British Midlands is a UK government-funded organisation, that comprises two of the nine UK-based regional development agencies East Midlands Development Agency (EMDA) and Advantage West Midlands (AWM) who work together to offer support to all international businesses looking to invest in the British Midlands region. The British Midlands region, which is the largest commercial centre outside London, has always been a favoured investment destination for Indian engineering, manufacturing and automotive companies. India is among the top ten countries to have invested into the UK in the last couple of years. At present there are over 50 Indian-owned companies in the British Midlands region and this is expected to double in the next few years.

The benefits of investing in British Midlands

• UK’s primary manufacturing region with a GDP of $ 176 billion which is 15% of GDP is the British Midlands
• Proximity to the city of London
• 25% cheaper than London with same quality of skill sets and standard of living
• Strategic location for access to Europe’s 400 million inhabitants
• Property rates – 28% less than that of London
• Excellent linkages – air, water, road and rail transportation – 180 plus flights to Europe, US and Middle East
• Excellent Research facilities with 17 world class universities
• Largest freight hub outside London in UK
• Largest concentration of Indian population in the region in UK

The region has expertise in the following sectors which enables it to be the primary manufacturing region in the UK:

Engineering Cluster in The British Midlands

The Engineering Sector in The British Midlands is part of the Transportation technologies cluster. This broad cluster includes many sub-clusters such as Automotive and Performance Engineering, Railways and Aerospace.

Credentials in Automotive and Performance Engineering Cluster

About 900 automotive companies (1/3rd of UK) are in The British Midlands. 51% of all UK car production takes place in The British Midlands. 25% of all motorsport companies in UK are based in the British Midlands, including engine manufacturers, race and rally preparation companies, and race car construction teams. 40% of all Formula One engines are made in the British Midlands. The region’s racing circuits include Silverstone (the UK’s premier motorsport venue and home to Formula 1), Donington Park, Mallory Park, Rockingham Motor Speedway and Santa Pod Raceway (the UK’s leading drag racing venue) and the British Midlands has established an international reputation in motorsport engineering and technology.

Europe’s largest road distribution centre, Magna Park, is located here, along with three dedicated rail freight terminals providing intermodal road and rail transportation and customs facilities.

Mile-long trains can travel from Eurohub in Corby direct to Paris.

Credentials in Railways

Over 1000 companies are directly involved in the rail industry. Derbyshire is the focal point for the UK rail industry. It is uniquely placed to offer virtually all of the skills needed to design, build and run a modern transportation network. University of Birmingham has a dedicated Railway Research Centre, involved in industry-wide research to improve the safety and efficiency of rail travel.

Credentials in Aerospace

There are more than 600 aerospace companies located here. The British Midlands is home to nearly 27% of all suppliers to the UK aerospace industry and contributes over 43% of the value of the country’s supplies. The region’s long association with the aerospace industry began with the development of the jet engine, RADAR and the Spitfire Credentials in Research & Development Credentials. Motor Industry Research Association, Europe’s leading independent automotive research, design and development centre houses test facilities in the region.

It has 26 test laboratories and 50 m of test tracks, used by over 800 companies worldwide. It has conducted research for MG (Lola Le Mans cars), Rob Beere Racing, T-Cars formula, Peugeot Rally and Prodrive’s Subaru team.

Coventry is a magnet for companies carrying out R&D for the automotive industry – Lotus, Corus and Lear have all established major bases here. The Ford College in Loughborough is a ground-breaking initiative which is benchmarking standards of professionalism for the auto dealerships industry. The Motorsport Industry Association has over 220 members, who do over $ 960 m of motorsport business worldwide. QinetiQ, the largest research and development organization in Western Europe, has 8,000 scientists in the region. Toyota has established its own Training Centre on a 1.2 acre site within the grounds of Nottingham Trent University.

Loughborough University and Warwick University offer leading edge research, development and test facilities specific to the motorsports industry. The British Midlands is internationally acknowledged as a world centre of automotive technology innovation. Its expertise extends across design, fabrication, engine technology, transmission, electronic systems, components and chassis. The Rolls Royce University Technology Centre in Birmingham carries out ground-breaking research and development work on titanium based materials for the aerospace industry. The Rolls Royce University Technology Centre in Nottingham researches advanced aero engine technologies. Research at Warwick Manufacturing Group has led to numerous breakthroughs and innovations for the aerospace industry. Warwick is a partner in ENHANCE (Enhanced Aeronautical Concurrent Engineering) which aims to reduce the time-to-market and cost of development of aeronautical products.

Apart from this, the region has 17 universities that produce 7,000 engineering and technology graduates annually.

For more details visit: www.thebritishmidlands.com

iSOFT, an IBA Health Group Company (ASX: IBA), Australia’s largest listed health information technology company announced its release of first-half yearly results ending on 31 December, 2008. iSOFT follows the financial year from July to June.

For the half year ended 31 December 2008, the total revenue of iSOFT on a standalone basis, stood at A$275.4 (US$176.7) million, up by 168% from the first half yearly revenue of A$102.8 (US$66) million. The company’s net profit for the first six months increased to A$10.3 (US$6.6) million, compared to a loss of A$1.1 (US$0.7) million in the previous corresponding period. Underlying EBITDA was A$67.5 (US$43.3) million, up 161% from A$25.8 (US$16.6) million.

Executive Chairman and CEO of iSOFT, Gary Cohen said: “We have achieved profitable revenue growth in the first half, driven by solid recurring revenues across all our geographies. We are continuing to benefit from global investment in health IT by governments worldwide, and the computerisation of healthcare records”.

“We have been able to sustain continual all round business growth considering both financials as well as human resource factors”, said Mr. S Govind, Managing Director, iSOFT. “iSOFT’s business proposition arises from our experience and deep understanding of the healthcare vertical which generally faces minimal impact while other industries might be affected by the turbulent economies”.

iSOFT Financial Highlights: H1-09 VS H1-08:

iSOFT Financial Highlights – 12 Months YTD

Fortis Healthcare Ltd., one of India’s leading chain of private hospitals with a network of 26 hospitals (including 11 satellite and heart command centres)* with a capacity of ~ 3000 beds, today announced its unaudited consolidated results for the 3^rd quarter and 9 months ended 31^st December 2008.

Quarter ended 31^st December 2008 (Q3 FY09)

• For the third quarter, the Company reported 33% growth in operating revenue as compared to corresponding quarter in the last fiscal. Aggressive strategies adopted to increase number of facilities and specialties across Fortis network have lead to the buoyant growth.
  
• EBIDTA margins for the quarter stood at 18%, up from 15% in the corresponding quarter. On absolute basis the EBIDTA grew by 47%.
  
• The net profit stood at Rs 5.1 Crore as compared to a loss of Rs 6.8 Crore in the corresponding quarter last year. On a trailing quarter basis, the net profit before exceptional items grew by 38%.
  
• Escorts Delhi completed 20 years in providing tertiary care in the field of Cardiac Sciences. Earlier during the financial year, Escorts was awarded “Super Brand” status by Super Brand India, as acknowledgement of its strong brand equity.
  

Commenting on the results, Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare Ltd., said, “A continuous strong focus on delivering consistent quality care and operating efficiencies across the network is leading to a higher level of patient trust and FORTIS brand recognition. This brand recognition has also led us to expand our network aggressively”.

9 Months ended 31^st December 2008 (9MFY09)

• Operating revenues of the company grew by 22% over the corresponding period to Rs 458 Crore. All the hospitals recorded increase in revenues ranging from 13% to 53%, with notable performance by Amritsar, Mohali, Noida and Escorts Delhi.
  
• For the same period, the operating revenues for the entire network hospitals stood at Rs 542 Crore, registering a growth of 24%.
  
• EBIDTA grew by 77% from Rs 47 Crore to Rs 83 Crore. EBIDTA margins for the period stood at 17%, up from 12% for the corresponding period.
  
• Growth in revenues together with expanded gross margins and optimization of operating costs has resulted into a net profit of Rs 16 Crore as compared to a loss of Rs 45.6 Crore in the corresponding period last year.
  

The company, in line with its vision to become a globally respected Healthcare Organization, continues to add new hospitals to its network in an aggressive manner. Fortis Clinique Darne a 120 bedded hospital in Mauritius, the first international foray of the Company is expected to provide firsthand experience of managing healthcare delivery in developed market and will go a long way in attracting Medical Value Travel to India.

Consequent to acquisition of majority stake, Fortis Hospital Seshadripuram has started to re-position its medical program in order to add new specialties and elevate the level of medical care. This is Fortis’s second venture in South. With the strategy to expand its network rapidly and to strengthen presence in west, Fortis recently took over the operation and management of a 200 bedded hospital (now known as Fortis Modi Hospital) in Kota.

The overall performance for the period has been encouraging and tracking as per plan with most of the hospitals constantly setting new milestones in terms of operating and financial parameters. The continuous endeavour to deliver high quality medical care coupled with patient centric approach shall remain the core foundation for strengthening the FORTIS Brand

The Muthoot Group, A Muthoot M George Enterprise, today announced the opening of their 1000th branch at Vazhakkala, Kochi, Kerala. The 122 year old Rs. 20,000 crores business conglomerate today has diverse interests in 16 business verticals ranging from Financial Services, Infrastructure & Housing, Information Technology, Power Generation, Hospitality to Healthcare & Education. The group has a presence in 20 states across the country and international presence in the UK and UAE.

Speaking on the occasion Mr. M. G. George Muthoot, Chairman, The Muthoot Group, A Muthoot M George Enterprise, said “It is a matter of extreme pride for us to have grown from 450 to 1000 branches in a span of less than three years. With every new branch, and with the addition of every new Muthoot customer, we re-iterate our commitment to ensuring trustworthy flawless services coupled with our unblemished track record of 122 years. We aim to operationalize 1500 branches by the end of FY 2010.” “Our steadfast resilience and complete dedication towards our customers spread across India and even overseas has provided us the zeal to innovate constantly and to offer customer-centric products & services,” he added.

Mr. M. G. George Muthoot, Chairman, The Muthoot Group, A Muthoot M George Enterprise addressing the media at the opening of the group’s 1000th Branch

The group established in the year 1887 by Mr. Ninan Mathai Muthoot, whose ‘2 elephants in unison’ logo denotes strength & stability, The Muthoot Group, A Muthoot M George Enterprise firmly believes in its values of honesty, integrity and determination.

The financial services division of the Group, Muthoot Finance was established in 1939 under the leadership of Mr. M. George Muthoot. It offers multiple services including retail gold finance, deposits, money transfer, insurance, precious metals and foreign exchange to name a few. Muthoot Finance has served over 250 million customers and has a customer footfall of around 30,000 every day seeking retail gold finance. The vast branch network of Muthoot Finance enables the Group to cross and up-sell various products and services of the other verticals of the Group.

Muthoot Finance is the pioneer in ‘Retail Gold Finance’ and is the largest player in this segment worldwide. In continuation of its tradition in revolutionizing the retail gold finance, it has conceptualized ‘5-Minute Gold Power Loans’. This is the fastest and the most hassle-free way to avail loans at the most attractive rates against Gold.

The Muthoot Group, A Muthoot M George Enterprise is actively looking at opportunities for inorganic growth in healthcare, travel related services and entertainment. The Hospitality division of the group has plans of launching a 7-Star Deluxe Hotel in Kochi amongst its other plans for the current fiscal. The Group has also launched its global arm “Muthoot Global“, which mainly deals in Wealth Management, Cash Transfer & Gifting and has a presence in the UK and UAE and plans to expand the network and diversify its foreign operations in the immediate future to more shores outside the country.

For more information, please visit www.muthootgroup.com

iSOFT, an IBA Health Group company, announced that it has signed contracts with two major hospital groups in the Netherlands totalling US $ 11.3 million.

In the largest deal, Erasmus MC (medical centre) in Rotterdam has renewed its contract for iSOFT’s hospital information systems for a further five years. The US $ 8.24 million contract includes licenses, maintenance and support. Erasmus MC is the university hospital of Rotterdam and the country’s largest medical school with 1,500 students.

Hospital Diaconessenhuis Leiden, a major teaching hospital in Leiden, has also renewed its contract for iSOFT’s hospital information systems and support in a three-year agreement worth US $ 3.06 million. During the contract period, Hospital Diaconessenhuis Leiden will work with iSOFT to improve the efficiency and effectiveness of patients’ treatment.

Gary Cohen, IBA’s Executive Chairman and CEO, said: “We are now seeing the benefits of our renewed commitment to servicing our customers in the Netherlands since the acquisition of iSOFT 15 months ago. We are winning their confidence, and expect more customers to follow.”

Dr J G Den Hollander, the Diaconessenhuis Leiden Hospital’s Director of Operations, said: “iSOFT is a proven supplier providing trusted software applications, reliable support and trouble-free service. iSOFT’s systems help us to improve the quality of information for clinical staff and quality of care for patients. These are also fundamental to improving efficiency and effectiveness while driving down costs.”

Peter Herrmann, Managing Director of iSOFT Central Europe, said: “Our technologies not only create connections between existing systems, they create value by adding new functionality, and they’re also designed to integrate perfectly with developing technologies over the coming years. That’s the winning combination we provide – products that are both highly efficient and future-proof.”

India Value Fund presented the VC Circle conference titled “Funding Strategies for 2009” in Kolkata to bring together a large number of delegates representing Venture capital investors/PE Professional/Entrepreneurs/Late stage, growth capital & large companies/Investment bankers &advisers/Corporate professionals/policy makers/firms seeking capital.

Mr. George Thomas, Partner, India Value Fund and one of the speakers at the conference said, “IVF is delighted to be associated with such a prestigious forum, which is aligned with IVF’s belief that there is huge and untapped potential for private equity and venture capital in powerhouses of entrepreneurship like the city of Kolkata.”

He added, “In the current market situation when the stock markets are at a two year low and the US and European markets have been in turmoil, fund raising in the current environment has gotten tough, but not impossible. The deals may have come down, but they are indeed happening. There are funds still sitting with cash and looking for deals in this market. So it’s not the time for inaction, but action. It’s not the end of the road, but just a sharp turn which you need to navigate carefully. The forum attempted to discuss all this and much more.”

The topics for discussion at the forum included:

• Masterclass on the basics of PE/VC fund raising: Term sheet, valuation, negotiation, due diligence
  
• Private equity in Eastern India
  
• Funding Strategies For 2009 – The outlook for private equity and venture capital in the current year
  
• Private equity and family run businesses: Matching the expectations
  
• Outlook for key sectors: Educations, Healthcare & Logistics, Technology/Cleantech – challenges and prospects
  

There were a total of 14 panellists at the forum, all of whom were distinguished PE and VC partners and entrepreneurs

Pharma Major, Lupin Limited, yesterday reported revenues of Rs. 9719 mn for the quarter ended December 2008, a rise of 32 % from revenues of Rs. 7381 mn in the corresponding period last year.

International market revenues at Rs. 6505 mn, recorded a rise of 48%. Of these, Formulation Business in Advanced Markets constituted 77% at Rs. 4990 mn.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) were Rs. 1761 mn (Rs. 1477 mn*) a rise of 19%. After Interest and Finance charges of Rs. 146 mn (Rs. 101 mn) and Depreciation of Rs. 219 mn (Rs.175 mn), Profit before Tax grew by 16% to Rs. 1396 mn (Rs. 1202 mn*). Provision for taxation including Fringe Benefit Tax was Rs. 219 mn (Rs. 201 mn*)

Net profit for the quarter was at Rs. 1165 mn. Increase in Net Profit for quarter over the corresponding quarter in the previous year (adjusted for IP income) works out to 16%.

For like representation IP income of Rs 1127 mn for the corresponding quarter of the previous year has been excluded to make the quarters comparable on an operational basis.

Commenting on the Company’s business results, Dr. Kamal Sharma, Managing Director, Lupin, said,”The past ten quarters have been noteworthy. We have continued to outpace and outperform across business segments and markets consistently having steadily consolidated our footprint globally. Recent launches, product approvals and patent settlements, substantial growth in filings, and more importantly – growth in market shares – are an affirmation of the success of our “Strategic Approach” & the effectiveness of our “Go to market” programs. Our strengths in Research & Development and the quality of our Intellectual property is a testimony to Lupin’s vision & commitment to developing and delivering quality & cost-effective drugs for everybody.”

Operational Summary

• Growth in overall Sales in the U.S – Continued Market Leadership in 7 of the 20 products in the market.
  
• Litigation Settlement with Schering-Plough Corporation for Desloratadine®
  
• Hormosan AOK Tender win
  
• Substantial Growth in Filings with two potential First to Files.
  
• Domestic Formulations Business at Rs. 2791 mn – outpaces and outperforms the market with a growth of 27% on net sales basis. (Industry growth as per IMS MAT Nov 08 – 10.3%)
  

Advanced markets

The Company’s Advanced markets formulation business in USA and Europe clocked in sales of Rs 3405 mn during the Q3, 2008-09, ( Q3 2007-08: Rs 2297 mn) reporting a growth of 48%

USA

LPI has garnered a steady growth in prescriptions for generics as well as branded formulations during the quarter. The company achieved market leadership in 7 of the 20 products in the US markets (IMS Sept 08).

Lupin also settled all ongoing Hatch-Waxman litigation relating to Desloratadine tablets, the generic version of Schering-Plough’s “Clarinex”® tablets during the quarter. As per the terms of the settlement, Lupin Ltd. will be licensed under the relevant Desloratadine patents, and free to commercially launch its generic Desloratadine product, on July 1, 2012, or earlier in certain circumstances. Schering-Plough’s Clarinex® tablets had U.S. sales of $329 million for the year 2007-MAT June 2008, according to IMS Health.

Europe

Lupin further consolidated its market position in Europe by completing its acquisition of Hormosan Pharma GmbH (Hormosan), a German generics company specialized in the supply of pharmaceutical products for the Central Nervous System (CNS).

Lupin also reported its first strategic win in the German market through Hormosan in the very first three months post-acquisition – having received information on the results of the Allgemeine Ortskrankenkassen (AOK) Tender, pursuant to § 130a SGB V. Hormosan has been offered 1 products in all 5 regions of Germany covering all AOK-insured persons. The AOK tender process is currently under judicial review.

Hormosan has a strong brand identity in the German generics market through its strong patient compliance message, essential for patients within the CNS sector.

Emerging Markets:

The Formulations revenues from emerging markets including India reported a growth of 24% recording sales of Rs 3236 Mn during Q3, 2008-09 (Rs 2605 Mn, 2007-08)

API revenues from emerging markets (including India) were at Rs 1328 Mn. The Company’s CRAMS business through the new entity Novodigm is progressing well, reporting sales of Rs 125 mn for the third quarter. .

Domestic Market: India:

Company’s domestic formulations business in the third quarter registered gross Sales of Rs. 2791, registering a growth of 27% at the net sales level. For better representation, the sales arising from deemed exports of Rs. 104 mn (Rs.93 mn), and formerly recorded under domestic sales have not been classified along with the domestic formulations business. This growth was driven by the good performance in the CVS, Diabetes, CNS, Asthma and Gastro Segments. The divisions catering to branded segments continued to outpace the industry growing over 29%. Lupin has maintained its leadership in Anti-TB segment and has secured a double digit market share in the anti-asthma market riding high on the strengths of its offerings in this segment.

Other World Markets

The RoW Markets reported sales of Rs 445 Mn for the third quarter recording a growth of 40%.

Japan

Kyowa, the Company’s subsidiary in Japan posted robust sales at Rs 1319 mn registering a growth of 21% over the corresponding period of previous year. The recently launched Amlodipine “Amel” continues to maintain majority market share and Risperidone “Amel”, which was launched last year, continued market leadership in unit terms.

South Africa

Lupin also completed and consolidate its acquisition of a majority stake in Pharma Dynamics (PD) in South Africa. Pharma Dynamics is the fastest growing generic companies in South Africa (over 33% growth for Quarter 3 – 08-09) with a clear leadership in the cardiovascular segment.

PD ranks at number 6 amongst generic companies and is currently growing at 33% per annum as per IMS. The South African Generics Market is currently valued at close to 800 Million USD and growing rapidly.

Research & Development

Progress on Approvals & Filings

Lupin also filed Seven ANDAs filed in the quarter, taking the cumulative ANDA filings total to 76. The company has received 32 approvals to date including Levetiracetam, which has already been launched. Four (4) DMF filings have been made in the quarter, taking the total to 79. The company also filed four (4) MAAs with the European regulatory authorities.

Two (2) Potential first to files were filed in the quarter. Furthermore, litigation was initiated against Lupin on filing the generic versions of Fortamet ER (Metformin extended release tablets) and Antara (Fenofibrate tablets) during the quarter. The company believes that it is the first to file on both. The total tally of first to files stands at eight (8).

About Lupin Limited

Headquartered in Mumbai, India, Lupin Limited is an innovation led transnational pharmaceutical company producing a wide range of quality, affordable generic and branded formulations and APIs for the developed and developing markets of the world.

The Company has secured global leadership position in Anti-TB and Cephalosporins and has a significant presence in the areas of Cardiovasculars (prils and statins), Diabetology, Asthma and NSAIDs. The Company’s R&D endeavors have resulted in significant progress in its NCE program. The Company’s foray into Advanced Drug Delivery Systems has resulted in the development of platform technologies that are being used to develop value-added generic pharmaceuticals.

Currently positioned amongst the top six pharmaceutical companies of India, the Company is committed to achieve sustainable earnings and growth for all its stakeholders.

For the financial year ended March 2008, the Lupin’s Revenues and Profit after Tax were Rs.27,730 million (US$ 694 million) and Rs.4,083 million (US$ 102 million) respectively.

For further information please contact:

Lupin Limited:

Shamsher Gorawara

Head – Corporate Communications

Ph: 9820338555

Email: shamshergorawara@lupinpharma.com

The existing board of members of Emergency Management and Research Institute, Dr. Jayaprakash Narayan, National Co-ordinator, Lok Satta, Mr. K. Krishnam Raju, Chairman, Suchitra Group, and Prof. Raj Reddy, Carnegie Mellon University, after the resignation of other members including Dr. A.P.J. Abdul Kalam as Chairman Emeritus yesterday issued a joint statement saying that they will stand by the cause of EMRI under the current difficult circumstances. Mr. Rajat Gupta, Chairman, ISB Board is out of the country but he continues to be a member of the EMRI board.

The following is the text of the joint statement:

The unfortunate developments in the Satyam Computers have created a difficult situation for the non-profit organisation EMRI which was founded by the family of Sri Ramalinga Raju. In recent days, Dr Abdul Kalam, Chairman Emeritus and five other directors have resigned from the Governing Board of EMRI.

Under the circumstances, the easiest course of action for the remaining members of the Board is to quit as directors, and let events take their own course. All of us are purely honorary members, and we have never accepted any remuneration or sitting fee. We have been giving time to EMRI as a labour of love, and in the belief and knowledge that the pioneering work done by EMRI is vital to provide emergency relief and save lives and limbs. EMRI’s chief contribution to India is to raise awareness and help to establish a nation-wide, safe, reliable high quality emergency relief system that a modern, civilized society deserves and needs.

Therefore, we, the remaining members of the Board have decided to continue to serve on the Board and help EMRI carry out its responsibilities. If the Governments at the union/ state levels feel that the emergency relief can be best provided by taking over EMRI under the laws of the land, we will do everything possible to facilitate such a transition. Meanwhile, we will do everything possible to raise resources to fulfil EMRI’s obligations and continue and expand the excellent work that is being done. We believe that the baby should not be thrown out with the bath water, and the acts of commission or omission of founders of EMRI in other organizations should not undermine public interest in the vital area of emergency relief and management.

We also believe that all financial and operational details of EMRI, including the MOU’s entered into with various state governments should be made public so that people can judge for themselves the work being done. Accordingly, the chief executive has been requested by us to make available all information public, especially every bit of information related to public money received from any agency / state/ union government.

We are also in the process of appointing an independent agency to go into all financial and operational details of EMRI, so that the Board and the public are assured that highest ethical standards are observed in managing the EMRI.

We urge all sections of the public to extend support to the Members of the Governing Board in fulfilling the mission of EMRI undaunted by the problems that have cropped up outside this non-profit organisation.