Strategic Overview

N O R M A L I S E D N E T P R O F I T * (I N ` C R) A N D M A R K E T C A P (I N ` C R)
N E T P R O F I T M A R G I N (%)

Management Discussion & Analysis

15%
15%

44,002
1,551

14%
1,252

32,825
8%
905

10,549
421

-6% -11%

9,465

17,885
15,029
-501
-227

Board & Management Profiles

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

C S R—U N I Q U E B E N E F I C I A R I E S E H S — Y- O -Y I N C R E A S E I N E H S

Statutory Reports
A D D E D A N N U A L LY (I N M I L L I O N S) T R A I N I N G M A N H O U R S (%)
21.6

49
14.4

21
9.5

14

Financial Statements
6.0

12
4.0
2.1

4.0

7.0

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Notes:
1. FY2016, FY2017 and FY2018 results have been prepared based on IND AS, prior periods are IND GAAP
*Excluding exceptional items

Annual Report 2017-18 | 19

Key Milestones in the
Last 30 Years

2002
1996 Acquired pharma
In-licensing business of ICI
2006
agreement with India Limited,
Acquired Morpeth
FHL Roche, Basel giving us entry in
(UK) facility from
1991 Inhalation
Pfizer Inc
Commissioned Acquired Anaesthetics -
manufacturing Boehringer Halothane
facilities at Mannheim
Pithampur 2005
Acquired Avecia Pharmaceuticals (UK) —
Gave access to:
2000
• Grangemouth (Scotland) – for ADCs
Acquired Rhone
1993 • Torcan (Canada) – For APIs
Poulenc India
1988 Acquired Roche
Piramal Group India operations Acquired Inhalation Anaesthetics
enters the business of Rhodia Organique, UK —
Pharma space Entered JV Distribution network across 58 countries
with Allergan and manufacturing technology for
— Ophthalmic Halothane and Isoflurane and Bethlehem
product manufacturing site

P H A S E 1: F Y 1 9 8 8 P H A S E 2:
AND EARLIER F Y 1 9 8 9 - F Y 2011

`6 Cr `1,643 Cr
MCAP (AS ON MCAP (AS ON
J U N E 30, 1988) M A R C H 31, 2000)

20 | Piramal Enterprises Limited

 2014
Entered strategic alliance
with CPPIB

Acquired ~20% stake in 2018

Shriram Capital Limited and Raised upto
~10% stake in Shriram City `2,000 Cr through
Union Finance Rights Issue
2016
2012
Acquired 4
Increased Closing Loan Book `2,861 Cr Closing Loan Book
brands from
Sevoflurane of `42,168 Cr
Pfizer in May
production at Sold stake in Vodafone for
2016
Bethlehem `8,900 Cr Merged Piramal
Capital and
Closing Loan
Entered Entered strategic alliance Piramal Finance
Book of
Healthcare Insight with APG with Piramal
`13,338 Cr
& Analytics Housing Finance;
business by Integrated Real Estate PE renamed as
2010 Acquired Ash
acquiring DRG (Indiareit) and lending arms Piramal Capital
Become the 3rd Stevens Inc, a
and Housing
largest player in US based CDMO
Started Special Mr Ajay Piramal Finance
the Industry with for High Potency
Situations became Chairman of
market share APIs (HPAPIs)
investment arm Shriram Capital Limited
of 4.4% with
a turnover of 2017
Closing Loan Book
`2,000 Cr Acquired product portfolio
of `350 Cr 2015
from Mallinckrodt LLC
Acquired
Acquired i-pill 2013 (intrathecal spasticity and pain
Coldstream
Acquired Caladryl management)
2011 and expanded
from Valeant
Entered Financial capacity and
Pharmaceuticals Acquired product
2009 Services by capability
portfolio from Janssen
Acquired Minrad Inc., US — acquiring Indiareit
Acquired ~10% Pharmaceuticals (injectable
Gave access to: Launched QUEST
stake in Shriram anaesthesia and pain
• Sevoflurane & Desflurane Acquired stake in initiative towards
Transport Finance management)
Vodafone India for creating a quality
Acquired Rxelite Inc., US — `5,864 Cr culture
Closing Loan Book Entered retail financing with
Gave direct presence in the
of `2,016 Cr launch of Housing Finance
region Sold Domestic Acquired baby
business
Formulations care brand Little's
business to
Launched Emerging Corporate
Abbott for Closing Loan Book
Lending vertical
US$3.8 Bn (9X of `4,766 Cr
sales and 30X
Closing Loan Book of
EBITDA valuation) Acquired five
`24,975 Cr
brands in the
gastrointestinal
Raised ~`4,996 Cr through
segment
QIP of CCDs

P H A S E 3: P H A S E 4: L O O K I N G
F Y2012 – F Y2018 INTO THE FUTURE

`8,712 Cr `9,465 Cr `44,002 Cr

MCAP (AS ON MCAP (AS ON MCAP (AS ON
M A R C H 3 1 , 2 01 1 ) M A R C H 31, 2014) M A R C H 31, 2018)

Annual Report 2017-18 | 21

30-year Journey
of Piramal Enterprises
Prior to 1988, the Group was
involved in Textile and other
businesses. Since the acquisition
of Nicholas Laboratories in 1988,
the company reinvented itself
multiple times, constantly evolved
and grew, with a clear objective of
consistently creating significant value
for all its stakeholders.
The entry into pharmaceuticals was a contrarian move by the
Group. This was because at that time, most global pharmaceutical
companies were exiting India due to its challenging business
environment and unfriendly patent regime.

In the last 30 years, PEL has undergone multiple rounds of

transformation, which has helped it grow manifold and stand
strong in the ever-changing economic environment. The Company
had entered the pharma industry, grew from 48th rank in 1988 to
one of the Top 3 pharma players by 2010 and sold the Domestic
Formulations business for a record valuation; and later also
entered the financial services business. Today, apart from growing
the remaining Pharma businesses, the Company has also created
a large, diversified and high quality financial services platform.
Thus, Piramal Enterprises has today emerged as one of the large,
well-established and diversified conglomerates of India.

22 | Piramal Enterprises Limited

 6 Cr
P H A S E 1: F Y 1988 A N D E A R L I E R
Exited Textile business and entered Pharma `

Strategic Overview
• In the early 1980s Mr. Ajay Piramal took the leadership of
M C A P ( A S O N J U N E 30, 1988)
the Piramal Group

19 Cr
• Entered the Pharma space through the acquisition of
Nicholas Laboratories in 1988
• Nicholas Piramal was ranked 48th in the industry `
R E V E N U E ( F Y 1988)

`1 Cr
PAT ( F Y 1 9 8 8 )

Management Discussion & Analysis

Board & Management Profiles
Statutory Reports
Financial Statements

Annual Report 2017-18 | 23

 8,712 Cr
P H A S E 2: F Y 1989- F Y 2011
Created one of the leading `
Indian Pharma companies M C A P ( A S O N M A R C H 31, 2011)

3,624 Cr
• Series of M&As, JVs and alliances and various organic initiatives to grow
Pharma business
• Sold the Domestic Formulations business to Abbott in 2010 for US$3.8 Billion `
at 9x Sales and 30x EBITDA R E V E N U E ( F Y 2011)
• Grew and sold Diagnostic Services to Super Religare Laboratories

`482 Cr
• Series of acquisitions and organic initiatives enabled the Company to grow
Domestic Formulations OTC, Pharma Solutions, Critical Care and Diagnostics
Services businesses
PAT ( F Y 2 0 1 1 )

FY2011 CORPORATE STRUCTURE: PIRAMAL HEALTHCARE

PHARMA CRITICAL DOMESTIC

SOLUTIONS CARE FORMULATIONS

`1,021 Cr ` 388 Cr ` 2,000 Cr 1

REVENUE REVENUE REVENUE

DIAGNOSTIC
OTC
India NCE SERVICES
196 Cr
`
R&D BASED OUT OF
MUMBAI `206 Cr 1
REVENUE
REVENUE

Continued Business Exited Business

Remaining healthcare businesses contributed 40% Sold Domestic Formulations business

of revenues in FY2010 for US$3.8 billion (@30x EBITDA and 9x
Sales) to Abbott
Sold Diagnostic Services business for
`600 Cr to Super Religare Labs
3,624

REVENUE 2 (In ` Cr) NET PROFIT 2 (In ` Cr) 482

28% 32%
21-year CAGR 21-year CAGR
1,367

116
535

57
103

10
19

FY1989 FY1993 FY1998 FY2003 FY2010 FY1989 FY1993 FY1998 FY2003 FY2010

Note:
1. Revenue for Domestic Formulations and Diagnostic Services have been taken for FY2010
2. Revenue and Net Profit numbers are based on IND GAAP

24 | Piramal Enterprises Limited

 44,002 Cr
P H A S E 3: F Y 2012 – F Y 2018
Built a strong Financial Services business `

Strategic Overview
and scaled up the balance Pharma business M C A P ( A S O N M A R C H 31, 2018)

10,639 Cr
• Created an end-to-end Real Estate developer financing model and a sector agnostic
Corporate Finance Group platform
• Acquired stakes in Shriram Group `
• Strengthened retail financing by launching Housing Finance R E V E N U E ( F Y 2018)
• Launched Emerging Corporate Lending for mid-sized and emerging businesses

`1,551 Cr
• Scaled up the remaining Global Pharma and India Consumer Products business
• Entered US-based Healthcare Insight & Analytics business by acquiring DRG
• Sold ~11% stake in Vodafone for `8,900 Crore, generating an IRR of 19%
N O R M A L I S E D PAT * ( F Y 2018)

Management Discussion & Analysis

FY2018 CORPORATE STRUCTURE: PIRAMAL ENTERPRISES

HEALTHCARE INSIGHT
FINANCIAL SERVICES PHARMA
& ANALYTICS
RE Whosale Lending Global Pharma Decision Resources Group
Loan Book `31,833 Cr Revenue `3,976 Cr Revenue `1,209 Cr
Corporate Finance Group India Consumer Products
Loan Book `8,209 Cr Revenue `346 Cr

Board & Management Profiles

Emerging Corporate Lending
Loan Book `916 Cr
Housing Finance
Loan Book `1,210 Cr
Alternative AUM
Loan Book `7,620 Cr
Investments in Shriram
Invested `4,583 Cr
India Resurgence Fund
(for Distressed Assets)

Statutory Reports
REVENUE 1 (In ` Cr) NORMALISED NET PROFIT 1,2,3 (In ` Cr)
10,639

1,551
1,252

29% 55%
8,547

6-year CAGR 5-year CAGR

905
6,381

421
5,123
4,503

112
3,544
2,352

Financial Statements
-227

-501

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Notes:
1) FY2016, FY2017 and FY2018 results have been prepared based on IND AS, prior periods are IND GAAP
2) FY2015 net profit excludes exceptional gain on sale of 11% stake in Vodafone India partly offset by the amount written down on account of scaling back of our investments in NCE research.
3) FY2018 normalised net profit excludes synergies on account of merger of subsidiaries in Financial services segment
*Excluding exceptional items
Annual Report 2017-18 | 25
P H A S E 4: L O O K I N G I N T O T H E F U T U R E
Future strategy
Post raising a billion dollar, below is our business-wise future strategy:

FINANCIAL SERVICES
Creating a large and well-diversified Financial Services business of
India, consistently generating strong risk-adjusted returns, while
maintaining a high focus on asset quality

Further explore Continue to Grow products such as Continue to diversify Loan Scale up HFC by
opportunity to grow real estate commercial and residential Book through focus on leveraging the
grow in retail Loan Book construction finance and Corporate Finance Group Company’s strong
by launching LRD in real estate developer (non-Real Estate) and relationships with
relevant, financing and moving Emerging Corporate Lending developers and
innovative and down the risk curve while space Brickex network
customised maintaining our ROEs
solutions

PHARMA
Creating a large, differentiated and profitable Global Pharma business
with high focus on quality

GLOBAL PHARMA

Leverage significant Continue to move up the Increase focus on Further improve Improve
capital invested into core value chain by focusing offering end-to- distribution margins through
infrastructure in the global on differentiated branded end integrated economics by differentiated
pharma and India consumer generics products solutions to leveraging our offerings, addition
segments customers to global distribution of niche and
reduce time-to- channels and complex products,
market for product tapping new operating leverage
launches markets to grow and higher capacity
further rapidly utilisation

HEALTHCARE INSIGHT Transforming to grow and improve

& ANALYTICS
profitability

Drive revenue growth
through broadening of
large addressable market
into payer/provider space
in addition to our core life
sciences customer base
Continue to transform our
customer offering towards
high-end value-added
insights and solutions by
leveraging proprietary data
and analytics tools
Focus on “Build Focus on the creation of
Once, Sell Many” syndicated products based
products and on highly successful bespoke
accelerate launch analytics and consulting
of new products services

26 | Piramal Enterprises Limited

 Strategic Overview
Maintain focus on Continue to Optimise liability franchise: Continue to enhance technology usage

Management Discussion & Analysis

asset quality while look for strong • Further deepen and diversify to improve efficiency through:
continuing to partners to ensure funding sources • Use of data & analytics for better
deliver higher risk long-term patient • Target credit rating improvement decision-making
adjusted ROEs capital for steady • Automation of systems and processes
business growth to improve Turnaround Time (TAT)
• Analysing data of asset monitoring
teams to automate the process of
getting early warning signals

Creating a rapidly growing and profitable

Board & Management Profiles

India Consumer Products business focusing on niche
areas of routine disruptions
INDIA CONSUMER PRODUCTS

Continue to Expand organically Continue to Improve margins Tap e-commerce, Improve media
focus on quality to improve develop and by leveraging rural, exports effectiveness
and regulatory capacities and acquire new brands India-wide sales and alternate by using digital
compliance capabilities and products distribution opportunities aggressively to
framework network with the reduce cost of

Statutory Reports
Niche inorganic addition of new communication
opportunities products reach
continue to remain a
driver for growth

Selectively enter Further invest in Improve margins

Financial Statements

new high-growth developing our by leveraging our

markets consulting skills India base
and talent pool

Annual Report 2017-18 | 27

Integrated Value-creation Model
PEL Capital Inputs PEL's Value-adding
F I N A N C I A L C A P I TA L
Activities
• Total Equity of `26,445 Cr; Total Assets of `72,683 Cr
FINANCIAL SERVICES
• Raised ~`7,000 Cr through QIP of CCDs and Rights Issue during
• Internally developed systems
FY2018
and processes
• FS: Invested `42,168 Cr (on B/S); Equity in Loan Book and AUM
• Provides customised innovative lending
business is `9,725 Cr; Invested in Shriram `4,583 Cr
solutions to meet customers’ needs
• Invested `7,054 Cr in Pharma; `5,000 Cr in DRG
• Provides value-added services
like robust asset monitoring
M A N U FA C T U R E D C A P I TA L
and strategic planning
• FS: End-to-end real estate developer financing model (including
• Brickex - in-house real estate distribution
housing finance); Sector agnostic corporate lending platform;
arm, providing market intelligence
22 financial products
and independent perspective on deals
• Pharma: 13 global manufacturing facilities; End-to-end manufacturing
capabilities for APIs and Formulations; Strong product portfolio of
niche differentiated branded generic products; Consumer product
brands with presence in 4.2 Lakh outlets Supported by
• DRG: 18 global offices across North America, Europe and Asia having a
range of products in four major products/ services categories
Values-Driven
I N T E L L E C T U A L C A P I TA L Culture
• FS: External industry/sector experts on the Investment committee; (Page 30)
Real estate development knowledge
• Pharma: Integrated offerings across the entire drug lifecycle;
Global R&D pool of 450 scientists, including 100 PhDs
Innovation
• DRG: 100 Terabyte data repository, including healthcare claims,
Culture
outcomes, formulary and insurance coverage;
(Page 36)
H U M A N C A P I TA L
• 6,843 employees worldwide
• Diversified employee base across 20 nationalities
Robust Corporate
S O C I A L & R E L AT I O N S H I P C A P I TA L Governance
• FS: Relationship with 120+ developers (Page 34)
• Strong partnership with APG, Bain Capital Credit, CPPIB, Ivanhoe
Cambridge (CDPQ)
• Pharma: Strong relations with Allergan and large Pharma players; Building Trusted
serving seven of Top 10 global pharma companies, along with Partnerships
various other customers (Page 33)
• HIA: Serving 45 of Top 50 Pharma companies; 10+ years of
relationships with Top 10 customers
• Esteemed institutional investors invested in PEL

N AT U R A L C A P I TA L
• Adopted ‘CORE’ (Creating Optimal and Responsible Environment)
initiative to drive sustainable development for energy usage
efficiency, water conservation and waste reuse and recycle
• Lending to renewable energy sector through the Financial Services
platform
Note: FS – Financial Services; DRG – Data Research Group

28 | Piramal Enterprises Limited

 Strategic Overview
Creating Value for
All Stakeholders
PHARMA
S H A R E H O L D E R S (Page 40)
• Provides high-quality, high-efficacy branded
•  `452 Cr1 Annual Dividend; `5,680 Cr1 returned to
generics
shareholders since FY2011
• Provides end-to-end integrated world-class
• 40% Annualised return in last 5 years; 29% Annualised
manufacturing capabilities at competitive costs
return in last 30 years
• Unblemished track record of quality and
compliance across our facilities

Management Discussion & Analysis

E M P L O Y E E S (Page 38)
HIA
• SUMMIT, ASCEND, IGNITE – leadership development
• Best-in-class, decision support platform in the
programmes
healthcare information services space
• Delivered 14,000+ learning solutions
• Provides indispensable insights through a variety
• 100% PoSH (Prevention of Sexual Harassment)
of high value-added data and analytics
compliant
• Employee wellbeing - Flexi Work Hour Policy, Flexi-
Pay, Crèche facilities, and flexible maternal and
paternal leaves

Efficient C U S T O M E R S (Page 39)

Capital Allocation • 87% Customer Satisfaction Index score in FY2018

Board & Management Profiles

(Page 31) (83% in FY2017)
• Net Promoter Score (NPS) of 65 for FY2018 (FY2017 –
34) indicates customer loyalty. High NPS means higher
likelihood of customer recommending PEL as a service
provider

E N V I R O N M E N T (Page 108)
Constantly Building • Waste reuse and recycle rate increased by 12%
Businesses • Water Conservation – Over 14% savings
(Page 32) • Electricity Conservation – Over 2% savings
• GHG - CO2 emission reduction – 1.1% reductions

Statutory Reports
S O C I E T Y (Page 41)
• 9.6 Crores beneficiaries impacted (including revisits)
• Over 41,000 Employee Social Impact
Value
volunteering hours
Accretive M&As
• 52,614 schools impacted with our
(Page 33)
education initiatives
• Water Initiatives – Achieved benchmark of 5 Lakh
beneficiaries served daily in March 2018
Note: 1. Excludes any dividend payout upon conversions of CCDs and related Rights till
book closure date

While Managing Key Risks

Financial Statements

• Successfully completed 31 USFDA site inspections

since 2011
• GNPA below 1% since last nine quarters
• Risk, Quality and Legal teams are independent
and report directly to the Board members

Annual Report 2017-18 | 29

Values-driven Culture

At Piramal Group, our core values of Knowledge, Action, Care and Impact are integral to our guiding philosophy.
These values represent our core beliefs and define us at the individual as well as at the organisational levels.
We encourage a deep understanding of these values and believe in institutionalising them across the organisation to
build a distinctive culture.

BUSINESS E THIC S, INTEGRIT Y TENURED LEADERSHIP ALIGNMENT WITH MINORIT Y

A N D C O R P O R AT E G O V E R N A N C E • Professional management SHAREHOLDER INTERESTS
• 31 USFDA Inspections cleared since team • Largest effective promoter
2011 • Experienced leadership with shareholding among Financial
• High asset quality — GNPA1 of 0.3% domain expertise Institutions
in FY2018 • No equity investments of
• Reputed and experienced Board Promoters outside of
Piramal Group
• No inter-group lending to
Piramal Realty
• ESOP programme funded by
Promoters since 1996

Knowledge
SHRIRAM - SHARED VISION
• Retail exposure
Action PA R T N E R S H I P S
• Long-term partnerships
through investments
in Shriram Group
Care with financial and operational
partners
• Opportunity to invest
in Shriram Group emerged due to
Impact • Pharma business developed
through relationships
matching set of values • Long-standing relationships with
• Mr. Ajay Piramal is global partners, including Allergan
the Chairman of (JV since 1996) and Bain
Shriram Capital (JV for distressed debt)

Note:
1. Based on 90 days past due (DPD)

30 | Piramal Enterprises Limited

Efficient Capital Allocation

Strategic Overview
We have successfully transformed our organisation multiple times on our strength of efficient allocation of capital
across the business portfolio. Ever since we commenced our journey, we have always remained committed towards
efficient capital allocation, while undertaking controlled risks, to consistently generate higher profitability and deliver
superior shareholder returns.

Management Discussion & Analysis

Demonstrated track record for delivering value through focus on operating
excellence, timely investments as well as disciplined exits

CAPITAL ALLOCATION

Invested K42,168 Cr ~K7,054 Cr K4,583 Cr invested in ~K5,000 Cr invested K5,680 Cr of

(on B/S) and invested in Pharma Shriram Group in Healthcare Insight capital returned

Board & Management Profiles

K7,620 Cr (off B/S) & Analytics to shareholders
in FS since 2010

• 6-year Loan • 7-year Revenue • Around 16% • Around 20% • Buyback of

Book CAGR: CAGR: 16% annualised return appreciation in K2,508 Cr
122% • FY2018 Global on Shriram USD (relative • Annual dividends
• FY2018 ROE: Pharma EBITDA Transport Finance to INR) since of K2,568 Cr1 and
19% Margin: 22% and Shriram City investment Special dividend of
• FY2018 GNPA • Eight acquisitions Union Finance • Peers trading K604 Cr
ratio: 0.3% in last three years at attractive • FY2018 Dividend
valuations in US Payout — 29%

Statutory Reports
Note: 1. Excludes any dividend payout upon conversions of CCDs & related Rights till book closure date

8
BUSINESSES
3
NEW BUSINESSES
>50
A C Q U I S I T I O N S H AV E B E E N
>90%
O F O U R K E Y C A P I TA L
Financial Statements

S U C C E S S F U L LY IN BUILDING M A D E B Y T H E C O M PA N Y A L L O C AT I O N D E C I S I O N
B U I LT A C R O S S UP PHASE T I L L D AT E . M O S T O F TURNED OUT TO BE
M U LT I P L E S E C T O R S THESE ACQUISITIONS SUCCESSFUL OVER THE
WERE SUCCESSFUL P R E C E D I N G 30 Y E A R S

Annual Report 2017-18 | 31

Constantly Building Businesses
PEL has always been very agile in taking decisions and executing it well, whether it is adapting to the changing times/trends in the macro
environment (sale of Domestic Formulations to Abbott), exploring new business avenues (entering Financial Services business in 2011 post
Abbott Sale), working alongside global cultures (acquiring the Boston-based company, DRG) or adopting global standards in work (Pharma
business having 13 manufacturing facilities across the globe) in its journey of last three decades. The Company has been able to foresee
the macro trends and take actions well in advance keeping in mind the best interest of all its stakeholders. The Company fosters building
businesses and diversifying through a culture of entrepreneurship and open exchange of ideas. This has enabled it to successfully build
eight businesses across multiple sectors. Additionally now, three new businesses are in build-up phase.

Moving
Global Pharma Services
up the value chain

Organically building Developing an

Building emerging
retail housing in-house stressed
corporate lending
finance business asset fund

Expanding DRG business Transforming

Further scaled up
Significantly growing to also address the inhalation
the Real Estate
the consumer products evolving needs of the anaesthesia
Developer financing
business payers and providers to hospital generic
through diversification
markets products business

Transforming the
Building a robust DRG delivery model
CSR model from large, static
that constantly creates research reports to M&A —Inorganic
replicable solutions digitally-delivered, growth engine
through innovations modular content that
and partnerships enables clients to obtain
'just in time' answers

Significantly expanding
the scope of corporate
financing platform

New business
Additional business driver
Expanding/Transforming business
32 | Piramal Enterprises Limited
Building Trusted Partnerships

Strategic Overview
PEL, since its inception, has practised and maintained the highest standards of ethics, integrity and corporate governance in each
of its business dealings. This gets reflected through the fact that the Company today is considered as one of the most preferred
partners in India by leading organisations across the globe. Our strong corporate reputation and high trust factor has not only
enabled us to develop esteemed partnerships, but also accelerated our efforts towards sustainable value creation for our
shareholders.

Management Discussion & Analysis

APG Bain Capital Credit Ivanhoe Cambridge CPPIB
Total AUM - €474 Billion Total AUM - US$37 Billion Total AUM - C$60 Billion Total AUM - C$317 Billion
Alliance Partner Alliance Partner Distressed Alliance Partner Alliance Partner
Infrastructure Financing Asset Investing Real Estate Financing Real Estate Financing
(Real estate subsidiary of
CDPQ AUM of
US$298 Billion)

Board & Management Profiles

Vodafone Shriram Group Allergan Abbott
Market Cap - US$80 Billion Total AUM - US$18.7 Billion Market Cap - US$56 Billion Market Cap - US$104 Billion
PEL had invested in PEL had invested in JV Partner Acquirer — Domestic
Vodafone India Shriram Group Formulations Business

Note: Market Capitalisation data as on April 27, 2018. Source: Bloomberg Markets

NORGES BANK

VA N G U A R D ABERDEEN

Statutory Reports
JUPITER ASSET MANAGEMENT BLACKROCK

SOCIETE GENERALE S TAT E S T R E E T G L O B A L A D V I S O R S

C A P I TA L G R O U P MASTER TRUST

CDPQ T O P I N S T I T U T I O N A L I N V E S T O R S I N T H E C O M PA N Y GIC
Financial Statements

LIC OF INDIA FIDELITY

LEGAL & GENERAL UNIVERSITY OF CALIFORNIA

WELLINGTON MANAGEMENT E A S T B R I D G E C A P I TA L

THE PEOPLE’S BANK OF CHINA MYRIAD

ABU DHABI INVESTMENT AUTHORITY (ADIA)

Annual Report 2017-18 | 33
Board and Governance
Board of Directors

Sitting
A J AY P I R A M A L
Chairman
Chairman, Shriram Capital Limited
Non-Executive Director of Tata Sons Limited
Co-Chair, India-UK CEO Forum

Upper row (Left to right)

S RAMADORAI DR R MASHELKAR P R O F G O V E R D H A N M E H TA D E E PA K M S AT W A L E K A R
Former Vice Chairman, Eminent Scientist Eminent Scientist Former MD & CEO,
Tata Consultancy Services Former DG, CSIR Former Director, IISc HDFC Standard Life

S I D D H A R T H (B O B B Y ) M E H TA KEKI DADISETH
Former President & CEO, Former Chairman,
Transunion Hindustan Unilever Limited

Bottom row (Left to right)

N VA G H U L NANDINI PIRAMAL D R S W AT I P I R A M A L G A U TA M B A N E R J E E
Former Chairman, Executive Director Vice Chairperson Senior MD, Blackstone Group
ICICI Bank Limited Leads CPD, HR, Risk & Quality Eminent Scientist Chairman, Blackstone Singapore
MBA, Stanford

V I J AY S H A H ANAND PIRAMAL
Executive Director Non-Executive Director
Turnaround Businesses Heads Piramal Realty
25+ years with Group MBA, Harvard Independent Director
34 | Piramal Enterprises Limited
Governance and Review Mechanism
BOARD OF DIREC TORS

Strategic Overview
BOARD SUB-COMMIT TEE

FINANCIAL SERVICES PHARMA HEALTHCARE INSIGHT & ANALYTICS

Five Investment Committees for Real Estate
Lending, RE Fund Management, Corporate Pharma Operations Board Healthcare Insight &
Finance Transactions, Emerging Corporate Analytics Board
Lending and Housing Finance

Management Discussion & Analysis

• Executive Directors • Executive Directors • Independent Directors
• Independent Directors • Key Business CEOs • Business CEO
• Financial Services CEO • External Experts • External Experts
• External Experts
• Business Vertical Heads

Management Team
Khushru Jijina Peter DeYoung Vivek Sharma
MD, CEO, CEO,

Board & Management Profiles

Piramal Capital & Piramal Critical Care Piramal Pharma
Housing Finance Experience: Solutions
Experience: 15 years, Experience:
30+ years, 5 years with 25+ years,
17+ years with Piramal Piramal Group 7 years with
Group Piramal Group

Rallis (Tata Group) Blackstone, McKinsey & Company THL Partner, Motorola, AMD
CA BSc Engg - Princeton; MBA - Stanford CA, CPA, MBA

Vivek Valsaraj Jon Sandler MANAGEMENT ADVISORS

Statutory Reports
CFO, CEO, DRG
Piramal Enterprises Experience: Nitin Nohria
Limited 31+ years,
Experience: 6+ years with Dean, Harvard
28+ years, Piramal Group Business School
17+ years with Piramal Experience:
Group
25+ years as
Harvard faculty

Wockhardt Ltd, Kesseler Group, MAC Group Ph.D in Management - Sloan School,
Bharat Bijlee Ltd. BA, MBA - HBS MIT, IITB
CMA

Kedar Rajadnye Shantanu Nalavadi Shikhar Ghosh

Financial Statements

COO, MD, Distressed Asset Professor, Harvard

India Consumer Fund Business School
Products Experience: Experience:
Experience: 27 years, 35+ years
20+ years, 2 years with
14+ years with Piramal Piramal Group
Group

MBA - HBS

Hindustan Unilever New Silk Route Advisors

HBS, JBIMS CA
Prior Affiliation Qualification
Annual Report 2017-18 | 35
Innovation Culture
PEL, through its constant innovation culture, had created the third largest pharma company of India.
Continuing with this approach, the Company again created a unique real estate developer financing
platform that is changing the way the industry operates in this space.

PHARMA MODEL

F Y 1988 F Y2010 A N D F Y2011

Acquired Nicholas 3rd largest player in the Industry with a market
Laboratories; Ranked 48th in share of 4.4% in Domestic Formulations and with a
the industry with a turnover turnover of `2,000 Cr in FY2010
of `6 Cr
Sold Domestic Formulations business to Abbott
for US$ 3.8 bn (9X sales and 30X EBITDA valuation)
in FY2011
Built state-of-the-
art formulations
manufacturing
JV with Ambalal
Acquired facility at Baddi
Sarabhai
Boehringer
Enterprises and
Mannheim
later acquired it

Launched 32 Created the

new products/ largest field
extensions force in India

Acquired bulk
drug division
Acquired pharma Created 3rd largest domestic of Sumitra
business of
ICI India Limited Pharma Company of India Pharmaceuticals,
including Digwal
facility

Acquired Roche Commissioned

India Pithampur Plant

In-licensing
Acquired Rhone agreement with
Poulenc India Consolidated FHL Roche,
4 acquired plants' Basel
manufacturing
activities at Pithampur
and integrated
distribution

36 | Piramal Enterprises Limited

It is this continuous focus on innovation that has shaped PEL to be what it
is today. At PEL, change is the only constant.

FINANCIAL SERVICES MODEL

F Y 2 012 F Y2018
Entered Financial Created end-to-end real estate developer financing platform with a loan book of `31,833 Cr
Services through
Indiareit. Loan book of
`350 Cr in FY2012
Asset Monitoring
(enables Developers
to complete projects Brickex
Independent on time)
Risk Management (enables developers
Team to increase sales)

Construction
Finance—
Independent Legal Commercial
Team (For construction
of commercial
projects)

Construction
Ability to take Finance—
over, compete and Residential
finish the project (For construction
(if required) of residential
projects)

Created the 2nd largest real estate developer

financing platform of India Strategic planning
(Value added
Strong Relations with services to
120+ Developers developers to plan
long term growth
strategy)

Housing Finance
Private Equity
(Providing housing
(Primarily for land
loans to home
purchase)
buyers)

Lease Rental
Independent
Discounting (Lease
external experts
rental discounting Mezzanine on Investment
for commercial Lending (Post committee
projects) land purchase till
commencement
of construction)

Annual Report 2017-18 | 37

Delivering to Our Employees
PEL’s focus is on becoming an ‘Employer of
Choice’ through consistent efforts to nurture
the spirit of entrepreneurship and overall
employee wellbeing through policies such as
Flexi Work Hour Policy, Flexi-Pay, Crèche facilities,
and flexible maternal and paternal leaves. In alignment with
our core Value of ‘Knowledge’, the one of its kind MOOC policy
(Massive Open Online Courses) enables employees to avail
online learning solutions for their professional development
from renowned academic institutions.
In FY2018, performance management and goal
setting became completely an online process
on ‘My Piramal’, PEL’s HR Management System.
The new system enables vertical and horizontal
alignment of goals, enabling a seamless goal
cascading process. It provides employees an option of eliciting
online stakeholder feedback to have a holistic performance
evaluation process and work towards further improving
their performance.

Young talent initiatives like Launchpad, Future
Leaders Program and Business Management
Trainee programmes enable the creation
of a high quality leadership pipeline for
key functional and strategic roles in the
organisation. It also provides an opportunity for
the employees to better understand their work environment
and culture to progress well in their career path in the
Company.
The Piramal Learning University continues
to nurture a world-class integrated learning
ecosystem at PEL by exponentially increasing
its scale and reach with a state-of-the-art
learning facility at Mumbai. The academy drives functional and
behavioral excellence, customised learning journeys for every
learner and a robust technology-enabled virtual campus.

Focus on ‘growing our own leaders’, enabling
the employees to realise their full potential
through world-class leadership development
programmes, such as ASCEND, SUMMIT
and IGNITE for various levels. Programmes
are conducted in partnership with global experts (McKinsey
and Aon Hewitt) to strengthen our leadership pipeline by
identifying high-potential employees and providing them
differentiated development opportunities, including
cross-functional and cross-business projects.
PEL strongly believes that sustained business
can be delivered only if our employee base is
as diverse as our customer base. Diversity can
be based on ethnicity, gender, country and
thinking styles, among others. It’s also been a
constant endeavour to create a safe and inclusive work culture,
beginning this journey by becoming 100% PoSH (Prevention
of Sexual Harassment) compliant. Our ‘Zero tolerance policy’
towards sexual harassment has led us to have a robust redressal
mechanism with 14 Internal Complaints Committee panels and
an Apex committee in India.

“The HR function today is playing a far more proactive, forward-looking role in driving our
ambitious growth plans. Our investments in building our employer brand are beginning to reap
rich returns as we enhance our connect with millennials on premium graduate and postgraduate
campuses. We are also supporting business growth through agile, on-demand hiring and robust
on-boarding practices. We continue to invest in developing our top talent through our signature
leadership development experiences such as IGNITE, ASCEND and SUMMIT. We now have
technology-enabled goals and performance management processes through MyPiramal, thus
bringing in strong alignment to our organisational goals. The Piramal Learning University also
continues to deliver measurable impact through focused capability-building via its Leadership and
Functional Academies, as well as its Virtual Campus.”
NANDINI PIRAMAL
Executive Director, PEL

38 | Piramal Enterprises Limited