Sun Global Operations (SGO)

Supply Chain Breakfast

July 2015 Benny KlenerSenior Vice President Head Global Operations

SUN GLOBAL OPERATIONS - SGO 2

Born in Belgium – Moved to Israel 34 years ago Married, 2 daughters (23 & 25 years old) Hobbies include skiing, tennis, scuba diving, hiking 1986 B.Sc. in Chemistry & Biochemistry (Jerusalem) 1986 -2013 Teva until end of June – 27 years

July 2013 Joined Sun

Microbiology lab, Injectable Dept. Head, QA Plant Head Plant Manager (Israel, UK , Netherlands) Exec. Dir, Quality Israel Operations (OSD & Sterile) Exec. Dir Global Sterile & Respi OPS integrationVP Global Strategic Resources (Work with India)VP IL and EU OPS ( OSD, Sterile, Respi ) : ~ 5500 FTE’s, $6.5B turnover manufactured

Some info …. As we get started

3SUN GLOBAL OPERATIONS - SGO

39 150

4 11000

30 30,000

Markets

SKUs

Employees

Plants

Sales(B$)

Doses(B)

Sun Pharma at a glance

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 4

Sun Pharma at a glance5th Largest Global Specialty Generic Company

Ranked 5th in US / Largest Indian Pharma Company in US

US

No. 1 Pharma Company in India

India

Largest Indian Pharma Company in Emerging Markets

Emerging Markets

Expanding presence in Europe

Europe

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 5

Formulation Plant API Plant Formulation & API Plant

Global Manufacturing Footprint

AhmednagarMaduranthakam

Jammu

Bangladesh Plant

Sikkim Plant

HalolKarkhadi

AnkleshwarPanoli

Silvassa

Dadra

Ontario (Canada)

Aurora

TennesseeBrayn

Iztapalapa(Mexico)

Wilmington M.A.

PhiladelphiaCranbury

Goiânia (Brazil)

Tiszavasvari(Hungary)

Haifa (Israel)

ToansaMalanpurDewasPaontaGoa

MohaliBatamandiBaddi-2Baddi-1

New Jersey(US) Cashel (Ireland)

Lagos (Nigeria)Be-Tabs,South Africa)

Kuala Lumpur(Malaysia)

Cluj (Romania)

Rio de Janeiro(Brazil)

Casablanca (Morocco)

Giza, (Egypt)

Ranbaxy’s Manufacturing FacilitiesSun Pharma’s Manufacturing facilities

(US)

(India)

(India)

Billerica, MA

SUN GLOBAL OPERATIONS - SGO 6

SUN MD

Dilip Shanghvi Supply Chain,Planning & Monitoring

Ofer Peleg

EH&S Harish Verma

Global Engineering & Capex Projects

Anish Sanghvi

Network Strategy, Operational excellence Amit Kohli

Material Procurement Hiren Desai

Capex Procurement Mahesh Kadam

Finance Business PartnerSandeep Mehandroo

HR Business PartnerDevesh Srivastava

Halol 1,Halol 2 Dadra UTLMohaliGoa

SilvassaDewasPoantaBangladesh, MalaysiaJammu, Samba

Sikkim I, SikkimIIBaddi , SolrexBata MandiGuwahati*

Global MSTG TBD

BramptonDaryl

Lesueur

HaifaItamar

Karsenti

Sun Global OperationsBenny Klener

SUN USA & TARO CEO

Kal Sundaram

AmericasSunil Mehta

India 1Sampad

Bhattacharya

India 2Ashwani Malhotra

India 3 Prakash Naik

Europe + AfricaMihaly Kaszas

* Under construction

Global SGO organisation

SUN GLOBAL OPERATIONS - SGO 7

Going Forward : Preserve and Create value 5 Areas of Priority

Preserve &

Create Value

Areas of expansion

Cost

Supply

Quality & Complianc

e

People& Culture

Preserve &

Create Value

Areas of expansion

Cost

SupplyProcesse

s

Quality & Complianc

e

People&

Culture

8SUN GLOBAL OPERATIONS - SGO

The company is undergoing a transformation: from 2 markets focus

(India, US) to a global operation

SC supportin

g processe

s

Adapting processes

and managemen

t routines

Renovating cultural

processes

The company’s rapid growth required design and implementation of core processes and routines in

order to create a process driven company (instead of being personnel

knowledge driven)

Automation of the

supporting tools

Design and implement

SC processes

Core processes were manual and unstructured and due to Sun’s rapid growth (globalization and SKUs wise),

not having structured well defined mechanism might result in business damage and harm the companies’ growth trend

Supply Chain’s Challenges

9

1. Scoping→ Identifing gaps in the SC’s current

performance and organizational alignment to its strategic goals

12

2. Diagnostic & Recommendations→ Core processes→ Organizational infrastructure:

org’ chart, KPIs, management routins, end 2 end visibility

→ IT Systems→ Network optimization

3

3. Detailed Design→Core processes→Organizational chart →R&R and job definitions→Management routines→IT systems

4

4. Implementation →Implementation of an End to End SC strategy→Focuse on 3 main processes –

S&OP, Production Plan, API S&OP→Implementing management routines for

piloted processes→Generating a SC tool

5

5. IT Solution→Tools evaluation for

supporting core processes →Implementing a BI tool

supporting SC’s processes

SUN GLOBAL OPERATIONS - SGO

Tefen’s Project Roadmap

10

Speaking in uniformed “Organizational language “1

Detailed design management routines including meetings agenda and participants4

Detailed design organizational infrastructure (KPIs, R&R, etc.) including the organization’s focus and readiness

5

Full roll out of core improved processes and routines6

IT-Examination and implementation of MRP module, Capacity model and production plan tool

8

Consolidated supply chain formatand a BI web tool support for the format

7

Vision of an End-to-end Supply Chain2

Detailed design for all core supply chain processes3

Project’s Deliverables