Piramal Life Sciences

I am pleased to address you in the first annual report of Piramal Life
 Sciences Limited since listing of the company.
 
 Pursuant to the composite scheme of Arrangement sanctioned by the
 Honble Bombay High Court, the New Chemical Entity (NCE) Research unit
 of Piramal Healthcare Limited was demerged to the Company w.e.f. 1st
 April 2007. Our vision is to discover, develop and commercialize
 innovative drugs to address still unmet medical needs to reduce the
 burden of disease.
 
 The Piramal Group, has derived insight and strength from Indian culture
 and philosophy. Our path is guided by our core values: Gyana Yoga
 (knowledge and learning), Karma Yoga (dynamic action and
 entrepreneurial spirit) and Bhakti Yoga (care and compassion), which
 are embodied in our new visual identity, our logo - the Cyan Mudra. We
 are confident that our new corporate identity and our values Knowledge,
 Action and Care, will spur us to democratize healthcare and empower the
 community and in return create value for our shareholders going
 forward.
 
 The pharmaceutical industry globally is at a very exciting juncture
 with biotechnology and genetic engineering opening up new avenues.
 Pharmaceutical leaders are not significantly increasing the number of
 New Chemical Entities (NCEs) in their pipelines preferring instead to
 requisition Research and Development (R&D) boutiques that work at
 creating new molecular designs. On the other hand, the volume and
 complexity of work in the international markets that is required to
 bring an NCE to approval is increasing steadily. PLSL seeks to leverage
 on the tremendous scientific knowledge pool of India with the end
 objective of being able to provide affordable medicines to millions of
 patients across the globe.
 
 Financial year 2007-08 marked steady performance for our Company. Two
 additional candidates: NPB-001-05 -a Phytopharmaceutical in Oncology
 and P-1201-07 -the candidate from our first collaboration with Eli
 Lilly in Metabolic Disorders have moved into clinical trials. Today, we
 have a pipeline of 15 drug candidates with 5 of them in clinical
 trials. Our lead molecule P-276 in Oncology continues to progress well
 and is currently undergoing Phase I/II studies in India, Canada and
 USA.
 
 During the year we signed two new collaboration agreements with global
 pharmaceutical leaders.  We signed an agreement with Merck and Co.,
 Inc. to discover and develop new drugs for two targets in Oncology
 segment provided by Merck. We signed a second drug development
 agreement with Eli Lilly & Company, USA. The new alliance generally
 follows the framework established by the earlier agreement between PLSL
 and Eli Lilly and continues the rationale of seeking to increase
 productivity in drug development by synergising the unique strengths of
 both companies and equitably sharing risk and reward.
 
 NCE Research is a long gestation activity. It takes 8-10 years from
 lead identification to commercial launch of a drug. It is a unique
 business model. With a pipeline of 15 candidates including 5 in
 clinical trials, our NCE Research unit has come a long way since its
 acquisition of the India R&D center from Hoechst in 1998. Our Companys
 accomplishments are a result of the dedication and commitment of its
 employees, partners, customers and shareholders.
 
 I thank you for the belief and confidence that you have reposed in our
 innovative R&D business. With your support and encouragement, I am
 confident that our Company will achieve great success in the coming
 years.
 
 Warm regards,
 
 Ajay G. Piramal
 Chairman
 
 Date : 31st May, 2008