Granules inks outsourcing deal with Matchland Pty, Australia

Mumbai, 5th March 2007: Granules India Ltd; a leading pharmaceutical formulation intermediates company with complete vertical integration, today announced that it has entered into an outsourcing agreement with Matchland Pty Ltd, (trading as New Products Development). Under the agreement, New Products Development will outsource its finished dosage manufacturing requirement to Granules India for the Australian market.

Five products have been identified for the initial manufacturing and this list is expected to grow as the relationship progresses. The agreement is in the nature of a partnership wherein, New Products Development will compensate Granules for all the costs incurred in manufacturing and will also provide a transparent profit margin. This would be New Products Development's first Outsourcing Agreement with any Indian Company and it effectively complements Granules strategy of expansion into lesser explored markets like Australia and New Zealand.

Commenting on the deal, Mr. C. Krishna Prasad, Managing Director said, "We are planning to use our TGA approved pilot manufacturing capabilities to kickstart the manufacturing as soon as possible."

Granules recently approved the allotment of 14.9 per cent stake to US-based Ridgeback Capital Investment LLC. The company will issue 22, 11, 200 equity shares of Rs.10/- each fully paid-up at Rs.105.50 per share (including premium) to Ridgeback Capital or their affiliates on a preferential basis.

About New Products Development

Established in 1988, New Products Development has grown to become a major provider in the pharmaceutical contract manufacturing industry, and is licensed by the Therapeutic Goods Administration (TGA) to manufacture non-sterile therapeutic goods for human use. New Products Development is an independent contract manufacturer with the capacity and capability to manufacture and pack unscheduled medicinal products in tablet, capsule and powder dosage form.

About Granules India Ltd.,

(BSE: 532482, NSE: GRANULES, Reuters: GRAN.BO)

Granules India Ltd. is a fully integrated pharmaceutical formulations manufacturer with the world's largest 'granulation' capacity. The company manufactures several strategic Active Pharmaceutical Ingredients (APIs) and multiple Pharmaceutical Formulation Intermediates (PFIs), which are distributed in 35 countries. It is foraying into manufacturing of tablets with a capacity of 6 billion tablets per annum. This facility will strengthen its presence in the pharma outsourcing space as it will have capabilities of offering a wide range of products beginning from APIs to finished dosages (coated/uncoated). Please visit us on https://bsmedia.business-standard.comgranulesindia.com.