Kolkata: Mr Amit Dasgupta, Ambassador-designate of India to the Philippines, on Monday said that India should explore investment and business opportunities in the Philippines.
Information technology, education, transportation, telecommunication and tourism could be some of the key areas for co-operation between the two countries, Mr Dasgupta said at an interactive session organised by the Confederation of Indian Industry here on Monday .
He also deliberated and interacted on business and investment opportunities in New South Wales and Australia.
“The global economy is going through a stressful and difficult period and every country is facing the stress. In such a situation, what is most required for India to tackle the economic downturn is to discover new markets and strengthen existing markets and focus on creation of wealth,” he said.
Success in my Habit
Tuesday, July 17, 2012
Indian Biotech Industry's five year growth at 19%: E&Y
Hyderabad: The biotechnology industry in India is at a critical juncture. While the industry has been growing at a CAGR of 19% rate over the last five years, it has concurrently been facing diverse challenges that have prevented the industry from transcending to the next level, says a report by the global audit and advisory firm Ernst & Young.
The industry size stood at US$4 billion for FY 2010 - 2011. The biopharmaceutical industry constitutes 60% of the biotech industry in India and grew at 21% y-o-y to reach US$2.3 billion in 2010-11, which is approximately 15% of the Indian pharmaceutical industry in value terms. Vaccines, insulin, erythropoietin and monoclonal antibodies have been the mainstay of the biopharma segment.
The E&Y report, while noting the significant growth of the industry, highlights the reasons that are hindering further growth of the industry in India. According to it, within the domestic market, companies have not been able to launch new products at a pace that they would have liked.
Dealing with multiple regulatory bodies typically results in serious delays. Parallely, companies focused on innovation have not been able to make a sizeable impact on the industry. Many of them are facing funding constraints as the investor community has shied away from investing in early stage ventures, said the report.
Ajit Mahadevan, Partner, Ernst & Young said, "India is already facing stiff competition from China, Korea, Singapore, and more recently Malaysia, in terms of attracting investments from MNCs. This has been enabled due to better technological and scientific competence, better infrastructure, tax and duty exemptions, and easier regulatory procedures as compared to India. Thus, there is strong call for action for the government to act swiftly to carry out regulatory reforms, develop infrastructure and provide more incentives to the biotech industry to remain competitive and spur growth in the industry."
The report also calls for more action on part of the industry to come up with a concerted action plan to utilize the available infrastructure and resources more efficiently and focus on innovation to take the biotech industry to new heights.
The government, on its part, has introduced several schemes to fund biotech start-ups. As an incentive for in house R&D, the government also provides 200% weighted tax deduction, which has been extended till 2017 in this year's budget. In terms of infrastructure, several biotech parks have been set up in India in the last five years with public private partnerships.
The industry, however, believes that most of biotech parks are more congenial to biotech services and diagnostics firms rather than pure-play biotech manufacturing companies. To support bio-manufacturing activities, they want the government to evaluate the feasibility of making available land at subsidized rates, uninterrupted power at competitive prices, good quality water supply and effluent treatment facilities to improve the efficiency and productivity of pharmaceutical companies.
Globally, the biotech industry achieved revenues of US$83.4 billion in 2011, a 10% increase from 2010 on a normalized basis.
The industry size stood at US$4 billion for FY 2010 - 2011. The biopharmaceutical industry constitutes 60% of the biotech industry in India and grew at 21% y-o-y to reach US$2.3 billion in 2010-11, which is approximately 15% of the Indian pharmaceutical industry in value terms. Vaccines, insulin, erythropoietin and monoclonal antibodies have been the mainstay of the biopharma segment.
The E&Y report, while noting the significant growth of the industry, highlights the reasons that are hindering further growth of the industry in India. According to it, within the domestic market, companies have not been able to launch new products at a pace that they would have liked.
Dealing with multiple regulatory bodies typically results in serious delays. Parallely, companies focused on innovation have not been able to make a sizeable impact on the industry. Many of them are facing funding constraints as the investor community has shied away from investing in early stage ventures, said the report.
Ajit Mahadevan, Partner, Ernst & Young said, "India is already facing stiff competition from China, Korea, Singapore, and more recently Malaysia, in terms of attracting investments from MNCs. This has been enabled due to better technological and scientific competence, better infrastructure, tax and duty exemptions, and easier regulatory procedures as compared to India. Thus, there is strong call for action for the government to act swiftly to carry out regulatory reforms, develop infrastructure and provide more incentives to the biotech industry to remain competitive and spur growth in the industry."
The report also calls for more action on part of the industry to come up with a concerted action plan to utilize the available infrastructure and resources more efficiently and focus on innovation to take the biotech industry to new heights.
The government, on its part, has introduced several schemes to fund biotech start-ups. As an incentive for in house R&D, the government also provides 200% weighted tax deduction, which has been extended till 2017 in this year's budget. In terms of infrastructure, several biotech parks have been set up in India in the last five years with public private partnerships.
The industry, however, believes that most of biotech parks are more congenial to biotech services and diagnostics firms rather than pure-play biotech manufacturing companies. To support bio-manufacturing activities, they want the government to evaluate the feasibility of making available land at subsidized rates, uninterrupted power at competitive prices, good quality water supply and effluent treatment facilities to improve the efficiency and productivity of pharmaceutical companies.
Globally, the biotech industry achieved revenues of US$83.4 billion in 2011, a 10% increase from 2010 on a normalized basis.
Monday, July 16, 2012
Global frozen yogurt player Yogurberry to expand operations in India
New Delhi: Korea-based frozen yogurt maker Yogurberry said it will set up seven fresh stores in the country by end of next year and another 100 over the next five years. "The expansion plan will begin with new stores in Chennai and Bangalore, and additional stores in cities like Delhi-NCR and Mumbai," a company official said. After setting up stores in metros, the yogurt-maker said it will expand to tier-2 and tier-3 cities.
The South Korean firm has set up its operations in India through Dubai-based franchise operator - Synergy Holdings - as its master franchise. An official at Synergy Holdings said the franchisee plans to invest Rs 50 crore in the current financial year to expand operations.
To expand its presence in specific regions, Yogurberry has tied up with Raasha Leisure & Entertainment as its area franchisee for north and east, and Tack Food & Beverages for the west.
Synergy Holdings partner Pawan Batavia said in a statement: "Consumers in metros are looking for healthier, quick alternatives to replace traditional meals, with exposure to concepts such as low-fat and probiotic foods increasing."
To cater to Indian taste buds, Yogurberry has tweaked its menu and launched products like yogurt sundaes and smoothies based on local tastes and toppings.
According to research consultancy firm Technopak Advisors, the global frozen yogurt market is estimated at close to US$75 billion growing at a CAGR of 15- 18%. In India, Technopak estimates that over the next three years, the category will grow to US$5 billion.
The South Korean firm has set up its operations in India through Dubai-based franchise operator - Synergy Holdings - as its master franchise. An official at Synergy Holdings said the franchisee plans to invest Rs 50 crore in the current financial year to expand operations.
To expand its presence in specific regions, Yogurberry has tied up with Raasha Leisure & Entertainment as its area franchisee for north and east, and Tack Food & Beverages for the west.
Synergy Holdings partner Pawan Batavia said in a statement: "Consumers in metros are looking for healthier, quick alternatives to replace traditional meals, with exposure to concepts such as low-fat and probiotic foods increasing."
To cater to Indian taste buds, Yogurberry has tweaked its menu and launched products like yogurt sundaes and smoothies based on local tastes and toppings.
According to research consultancy firm Technopak Advisors, the global frozen yogurt market is estimated at close to US$75 billion growing at a CAGR of 15- 18%. In India, Technopak estimates that over the next three years, the category will grow to US$5 billion.
Natco takes on Bristol Myers Squibb with blood cancer generic drug
Hyderabad: Hyderabad based Natco Pharma has done it again. After successfully taking on global drug giant Bayer over renal cancer drug Nexavar, Natco Pharma has now taken on another drug giant Bristol Myers Squibb.
In what could have the makings of yet another patents battle, the Hyderabad-based generic drug maker has launched a cheaper generic version of Bristol Myers Squibb's blood cancer drug Sprycel at a fraction of the innovator pricing.
Natco launched Dasatinib in June this year at a pricing of Rs 9,000 for a month's supply as against BMS pricing of around Rs 1.6 lakh for a month's supply of Sprycel after it bagged a marketing licence from the Uttarakhand state drug regulator to sell a generic version of the drug.
Incidentally, Natco is already embroiled in a legal battle with BMS over the same drug since 2009 after it had approached the Indian drug regulator Drug Controller General of India (DCGI) for an export licence for Dasatinib.
But this time around, Natco was able to launch Dasatinib because the Indian Drugs and Cosmetics Act empowers state regulators to grant approval to new drug versions after four years of the grant of the first patent.
BMS had already won a patent suit over Sprycel against another Hyderabad-based drug maker Hetero Drugs that had in 2009 sought the DCGI approval.
It may be recalled that in March this year, Natco had won a path-breaking compulsory licence from the Indian Controller General of Patents for selling Sorafenib, a generic version of Bayer's Nexavar, at a price of Rs 8800 for a month's dosage.
In what could have the makings of yet another patents battle, the Hyderabad-based generic drug maker has launched a cheaper generic version of Bristol Myers Squibb's blood cancer drug Sprycel at a fraction of the innovator pricing.
Natco launched Dasatinib in June this year at a pricing of Rs 9,000 for a month's supply as against BMS pricing of around Rs 1.6 lakh for a month's supply of Sprycel after it bagged a marketing licence from the Uttarakhand state drug regulator to sell a generic version of the drug.
Incidentally, Natco is already embroiled in a legal battle with BMS over the same drug since 2009 after it had approached the Indian drug regulator Drug Controller General of India (DCGI) for an export licence for Dasatinib.
But this time around, Natco was able to launch Dasatinib because the Indian Drugs and Cosmetics Act empowers state regulators to grant approval to new drug versions after four years of the grant of the first patent.
BMS had already won a patent suit over Sprycel against another Hyderabad-based drug maker Hetero Drugs that had in 2009 sought the DCGI approval.
It may be recalled that in March this year, Natco had won a path-breaking compulsory licence from the Indian Controller General of Patents for selling Sorafenib, a generic version of Bayer's Nexavar, at a price of Rs 8800 for a month's dosage.
Coal India to invest Rs 7,500 cr on rail infrastructure in 3 States
Kolkata: Public sector miner Coal India Ltd has lined up an investment of Rs 7,500 crore to develop railway tracks and related infrastructure to evacuate coal from Chhattisgarh, Jharkhand and Odisha.
These would help the company to evacuate around 100 million tonnes (mt) of additional coal from each of the States.
“The investments would be made in the next three-four years. Coal India would fund the projects and Railways would be laying the tracks and own them. This gives us the opportunity to transport coal. The additional money that we are investing would be recovered through a mechanism,” Coal India Chairman and Managing Director, Mr S. Narsing Rao, told newspersons at the company’s head office.
Non-availability of transportation though Railways has been preventing the company from extracting coal from mines, the demand for which has surged from power plants.
The miner is not able to transport more than 2-3 mt of coal through roads. Therefore, the remaining reserves remain unexplored. Most of the mines in these States have the capacity to produce around 10 mt.
The Coal Secretary, Mr S.K. Srivastava, and the Railway Board Chairman, Mr Vinay Mittal, met the Chhattisgarh Chief Minister, Mr Raman Singh, early this month to discuss a roadmap for laying rail tracks connecting different mines in the State.
“The Railways are taking this seriously. And if it takes off, we can open more mines, and more coal can be extracted and evacuated. Today, we are stuck with unrealised potential in Chhattisgarh, Odisha and Jharkhand,” Mr Rao said.
Nearly 58 mt coal is stuck as Coal India is not being able to evacuate. “We have liquidated 12 mt in past three months,” he added.
“Today, there is gap of 45 mt between approved production and output. This is because I cannot evacuate the coal. In Mahanadi coalfields, 42-43 mt are unrealised,” Mr Rao said.
Coal India had cash reserves of Rs 58,202.78 crore as on March 30. It has lined up a capital expenditure of close to Rs 30,000 crore during the 12th Plan.
These would help the company to evacuate around 100 million tonnes (mt) of additional coal from each of the States.
“The investments would be made in the next three-four years. Coal India would fund the projects and Railways would be laying the tracks and own them. This gives us the opportunity to transport coal. The additional money that we are investing would be recovered through a mechanism,” Coal India Chairman and Managing Director, Mr S. Narsing Rao, told newspersons at the company’s head office.
Non-availability of transportation though Railways has been preventing the company from extracting coal from mines, the demand for which has surged from power plants.
The miner is not able to transport more than 2-3 mt of coal through roads. Therefore, the remaining reserves remain unexplored. Most of the mines in these States have the capacity to produce around 10 mt.
The Coal Secretary, Mr S.K. Srivastava, and the Railway Board Chairman, Mr Vinay Mittal, met the Chhattisgarh Chief Minister, Mr Raman Singh, early this month to discuss a roadmap for laying rail tracks connecting different mines in the State.
“The Railways are taking this seriously. And if it takes off, we can open more mines, and more coal can be extracted and evacuated. Today, we are stuck with unrealised potential in Chhattisgarh, Odisha and Jharkhand,” Mr Rao said.
Nearly 58 mt coal is stuck as Coal India is not being able to evacuate. “We have liquidated 12 mt in past three months,” he added.
“Today, there is gap of 45 mt between approved production and output. This is because I cannot evacuate the coal. In Mahanadi coalfields, 42-43 mt are unrealised,” Mr Rao said.
Coal India had cash reserves of Rs 58,202.78 crore as on March 30. It has lined up a capital expenditure of close to Rs 30,000 crore during the 12th Plan.
Gujarat, Germany to set up business centre
Ahmedabad: A German Indian business centre (GIBC) has been proposed in the state to facilitate business opportunities between Germany and Gujarat for setting up of offices, technology transfers and joint ventures.
The centre will facilitate investment between companies in Germany and Gujarat. Among other activities, GIBC will facilitate acquisition of German companies for Gujarat companies along with taking care of due diligence. The centre will also scout for and register technology partners in both countries.
"Germany is the largest trading partner of India in the European Union (EU). Despite the financial challenges in EU, trade is increasing between the two. The proposed GIBC in Gujarat will act as a bridge between Gujarat and Germany," said Jagat Shah, founder, Global Network, an international trade consulting firm based in Ahmedabad.
GIBC's focus will be on sectors like energy including renewable, automotive, life sciences, engineering, laser optics, ICT, innovation, research and education.
Other activities of GIBC will include facilitating education, innovation and research in cutting edge sectors while also exposing Gujarat and German companies to the culture and business etiquette of each other.
The centre will provide information to German companies on procedures to set up business in Gujarat and vice versa. GIBC will also arrange sector wise, monthly video conference meets between companies in Gujarat and Germany.
For the Vibrant Gujarat Global Investors' Summit 2013, GIBC will bring a delegation from Germany with a focus on education and business.
The centre is also in the process of finalizing a monthly newsletter to be circulated in Gujarat and Germany.
As a pre-event towards establishing GIBC, a sensitization event will be held in Ahmedabad on Saturday, where Wolfgang Holtgen, director of GIBC from Germany will be presenting the opportunities available to Gujarat based companies for doing business in Germany.
The centre will facilitate investment between companies in Germany and Gujarat. Among other activities, GIBC will facilitate acquisition of German companies for Gujarat companies along with taking care of due diligence. The centre will also scout for and register technology partners in both countries.
"Germany is the largest trading partner of India in the European Union (EU). Despite the financial challenges in EU, trade is increasing between the two. The proposed GIBC in Gujarat will act as a bridge between Gujarat and Germany," said Jagat Shah, founder, Global Network, an international trade consulting firm based in Ahmedabad.
GIBC's focus will be on sectors like energy including renewable, automotive, life sciences, engineering, laser optics, ICT, innovation, research and education.
Other activities of GIBC will include facilitating education, innovation and research in cutting edge sectors while also exposing Gujarat and German companies to the culture and business etiquette of each other.
The centre will provide information to German companies on procedures to set up business in Gujarat and vice versa. GIBC will also arrange sector wise, monthly video conference meets between companies in Gujarat and Germany.
For the Vibrant Gujarat Global Investors' Summit 2013, GIBC will bring a delegation from Germany with a focus on education and business.
The centre is also in the process of finalizing a monthly newsletter to be circulated in Gujarat and Germany.
As a pre-event towards establishing GIBC, a sensitization event will be held in Ahmedabad on Saturday, where Wolfgang Holtgen, director of GIBC from Germany will be presenting the opportunities available to Gujarat based companies for doing business in Germany.
India, China lead growth of global economy: Standard Chartered
New Delhi: Emerging economies India and China are leading the global economy on a '32-62-72' growth path, according to Gerard Lyons, Chief Economist, Standard Chartered Bank. "Despite the crisis in the West, the world economy continues to grow, led by the likes of China and India," as per Lyons.
Lyons used the numeric phrase '32-62-72' for evolving economic size of the world. Explaining the phrase, the Chief Economist said the global economy had increased from US$ 32 trillion in 2000 to just under US$ 62 trillion on the eve of the crisis and, in nominal terms, it is set to reach US$ 72 trillion at the end of this year.
"The shift in the balance of power continues to make the global economy bigger and, in doing so, provides markets for countries and firms in the West to sell into," according to an internal publication of the bank titled, Standard Chartered Asia Focus.
While Lyons acknowledged the contributions made by emerging countries such as India and China in the growth of world economy, he also stressed on the need to implement reforms and to move up the value curve in the developing economies.
Lyons used the numeric phrase '32-62-72' for evolving economic size of the world. Explaining the phrase, the Chief Economist said the global economy had increased from US$ 32 trillion in 2000 to just under US$ 62 trillion on the eve of the crisis and, in nominal terms, it is set to reach US$ 72 trillion at the end of this year.
"The shift in the balance of power continues to make the global economy bigger and, in doing so, provides markets for countries and firms in the West to sell into," according to an internal publication of the bank titled, Standard Chartered Asia Focus.
While Lyons acknowledged the contributions made by emerging countries such as India and China in the growth of world economy, he also stressed on the need to implement reforms and to move up the value curve in the developing economies.
Saturday, July 14, 2012
US-based CritiTech sets up joint venture with Finoso Pharma
Hyderabad: US-based drug development player CritiTech Inc, which is focused on super critical fluid technology, has joined hands with Hyderabad-based formulation development services company Finoso Pharma Pvt Ltd to set up a 50:50 joint venture - Finotech Pharma.
The joint venture (JV) company, which will have its business office in the US, is being set up with an initial investment of $1 million. Finotech Pharma will provide alternative API size reduction technology and particle design services to pharma companies to meet their R&D and early clinical trial supply needs. These particles are used in a range of formulated products that can be delivered through oral dosage forms, intravenous suspensions and inhalation.
As part of the JV agreement, Finoso Pharma will be contributing its existing facility and its 30 scientists based out of Hyderabad, while CritiTech will provide specialized fine particle production equipment, new techonologies, technical expertise and business and marketing support.
The two companies will be jointly working to develop products for oncology, lung diseases, pain management, neurotic segment as well as other therapeutic areas and hope to generate revenues largely from royalties on the final patented product and API development processing fee. The JV hopes to develop atleast three molecules each year.
"This joint venture is a strategic opportunity for both the companies. By combining our experience in the domestic and international product development market with CritiTech's technology and expertise, our clients will recieve a higher level of service and new drug delivery options for their products,"" said Finoso Pharma managing director Kumar Kurumaddali said.
"CritiTech is pleased to be expanding the access to its technology in India to address emerging needs and improve access to technology that enables different drug delivery options,"" CritiTech CEO Dr David Johnston said.
The joint venture (JV) company, which will have its business office in the US, is being set up with an initial investment of $1 million. Finotech Pharma will provide alternative API size reduction technology and particle design services to pharma companies to meet their R&D and early clinical trial supply needs. These particles are used in a range of formulated products that can be delivered through oral dosage forms, intravenous suspensions and inhalation.
As part of the JV agreement, Finoso Pharma will be contributing its existing facility and its 30 scientists based out of Hyderabad, while CritiTech will provide specialized fine particle production equipment, new techonologies, technical expertise and business and marketing support.
The two companies will be jointly working to develop products for oncology, lung diseases, pain management, neurotic segment as well as other therapeutic areas and hope to generate revenues largely from royalties on the final patented product and API development processing fee. The JV hopes to develop atleast three molecules each year.
"This joint venture is a strategic opportunity for both the companies. By combining our experience in the domestic and international product development market with CritiTech's technology and expertise, our clients will recieve a higher level of service and new drug delivery options for their products,"" said Finoso Pharma managing director Kumar Kurumaddali said.
"CritiTech is pleased to be expanding the access to its technology in India to address emerging needs and improve access to technology that enables different drug delivery options,"" CritiTech CEO Dr David Johnston said.
Carl Zeiss opens development unit in Bangalore
Carl Zeiss has been present in India since1998,butlargely as a sales and service business. The company manufactures an array of products ranging from prescription spectacle lenses to diagnostic and surgical equipments that are used in the fields of ophthalmology, neuro-surgery and cancer treatment, and in camera lenses. It also manufactures precision measurement tools that are used in the auto, aerospace, and power sectors, besides manufacturing equipments required for the manufacture of integrated chips.
Speaking exclusively to TOI before inaugurating the company'sBangalorecampus, Michael Kaschke, president and CEO of Carl Zeiss AG, said, "The investment into developing the infrastructure at our campus is Rs 30 crore." He added that the company's total investment in India, which includes acquisition of assets, is 25 million euro over the past 8 years. The R&D, which has the abbreviated name CARIn ( Center for Applications and Research in India), will focus on the medical technology sector andlooktodevelop medical equipments tailored to the Indian market requirements.
"In ophthalmology,thereis an 80% chance that a doctor in India would be using Zeiss equipment," said Kaschke. The company won't be manufacturing medical equipments in India,butthe medicalequipment portfolio contributes a high percentage to its India revenueof Rs 600crore.
"I foresee that in India, by 2015-16, we will have 1,000 employees (from 300 at present) and our revenues would cross Rs 1,000 crore," said Kaschke, and added, "India is evolving into a strategic business segmentof theZeissGroup."
On the manufacturing front, the company has established an assembly line that would assemble precision measurement tools. But the biggest space allocation at the company's Electronics City campus would be for the setting up of a prescription spectacle lens manufacturing facility.The manufacturing facility will have an installed capacity to produce 2,000 lenses a day, which could be scaled up to produce12,000lenses per day. V Srinivasan, MD, Carl Zeiss India, said, "Some 500 million people needeye glasses in India. But the addressable market, meaning, people who can afford to buy them is only 125 million."
System to monitor PPP projects okayed
New Delhi: To ensure timely completion of projects undertaken in public-private partnership (PPP) mode, the government on Thursday decided to set up an institutional mechanism to oversee contract performance during the construction stage. The mechanism will also monitor a project in the post-construction usage stage. It will have a two-tier system — Projects Monitoring Unit and Performance Review Unit . Later, Planning Commission Deputy Chairman Montek Singh Ahluwalia said he wanted to make these reports public. Adding: “I am in favour of putting these in public domain. I will get the Prime Minister's approval.”
Other clearances
The Cabinet on Thursday approved the Modified Special Incentive Package Scheme for the electronics sector under which, the government will provide up to Rs 10,000 crore in benefits to the industry over the next five years for promoting production of electronics components. It also approved a Rs 648-crore project in Uttar Pradesh for widening the Rai Bareli-Jaunpur highway section.
Other clearances
The Cabinet on Thursday approved the Modified Special Incentive Package Scheme for the electronics sector under which, the government will provide up to Rs 10,000 crore in benefits to the industry over the next five years for promoting production of electronics components. It also approved a Rs 648-crore project in Uttar Pradesh for widening the Rai Bareli-Jaunpur highway section.
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