New Delhi: Mankind Pharma is set for a major turnaround over the next two to three years. The Rs 2,000-crore company, best known for its consumer brands like Prega News, Manforce, Unwanted-72 and Kaloree-1, is now eyeing the market for diabetes and cardiovascular drugs to record growth in both turnover and profit.
Mankind Pharma, India’s seventh-largest drug maker, aims to rise to the second or third position over three to four years, says chief executive and Chairman R C Juneja. “We are planning to launch 15-16 products in the chronic therapy segment this financial year. Currently, our profit margins are very low compared to the industry, primarily because most of our products are in the low-margin segments, and these are priced low. Introducing drugs in the chronic segment would not only contribute to the turnover, but also boost profit,” he told Business Standard.
The acute segment includes diseases that usually last for a short duration and require therapies like anti-infectives, pain-killers or analgesics. The chronic segment includes diseases that are recurring in nature and include lifestyle diseases. It includes therapies anti-diabetics, cardiovascular, cancer etc.
The company is targeting a growth of 28-30 per cent this financial year, which would raise its turnover to about Rs 2,500 crore, Juneja said. Driven by robust growth in the consumer brand segment, the company’s pharmaceutical business has been growing about 18 per cent annually, compared with the industry average of 13-14 per cent. However, the company’s net profit margins, growing at 12-13 per cent, are slightly below the industry average of about 20 per cent. The chronic segment foray would help boost this, Juneja adds.
Ashish Mehra, managing director, Strategic Decisions Group, says Mankind’s entry into chronic therapy is essential for it to expand beyond small town to big cities. “It started with acute therapy in rural areas, and then moved to towns. Now, when it wishes to enter big cities, there are big players dominating the market. These companies are already strong in the acute segment. So, to compete with these, Mankind needs to tap the chronic segment,” he said.
A source close to the company said Mankind also planned to divest stake in its personal care business, which primarily comprises products like ‘Adiction’ deodorant and ‘Don’t Worry’ sanitary napkins. The move would help the company concentrate on the pharmaceuticals and the over-the-counter (OTC) businesses, he said.
Juneja, however, said this was a “tentative plan”. “We have decided to watch for a year and then take a final call,” he added. For now, the company is not adding any product to the segment.
Analysts say the personal care business could be a roadblock to the company’s ambitious plans and this could be a reason why it is considering selling the business.
Sanjiv D Kaul, Managing Director, ChrysCapital, which holds 11 per cent stake in the company, agrees. “After pharmaceuticals and OTC, personal care was an obvious move. This was also complemented by the company’s huge sales network. However, it does not want to be diverted from its aim of becoming a leading pharmaceutical company. So, at some point it may divest the personal care business,” he says.
Currently, Mankind has a sales force of about 7,000, and the company is steadily increasing this number. “We would hire about 700 people by March,” says Juneja. “We would record growth only by introducing new products and strengthening sales and marketing,” he adds.
Juneja started his career in 1975 as a medical representative with Lupin. In 1984, he, along with two of his brothers, decided to start a formulation business called Bestochem. In 1995, Juneja and his brother, Rajeev, set up Mankind Pharma. Rajeev Juneja now looks after the company’s marketing division.
“I started the company with merely Rs 5,00,000 and no loan,” says Juneja. His son, Arjun Juneja, has now joined the company’s operations team.
Unlike its counterparts, Mankind started by focusing on rural areas, tier-II and tier-III cities. “They understood the DNA of the Indian pharmaceutical market very well. That is why their business model is very unique. At a time when no pharmaceutical company saw value at the bottom of the pyramid, Mankind started from the outskirts, and gradually moved to the centre. They created the market there and later, others joined the bandwagon,” says Kaul.
However, some feel the transition to selling products in the chronic segment in big cities may not be easy, and the company may have to put in place a stronger and more effective strategy. “So far, Mankind has opted for a price-penetration strategy. They launched most of their products with very low prices compared to others, acquiring a significant market share. But gradually, they increased prices. However, this strategy may not work for essential products in the chronic segment,” said a sector analyst. He added the company would have to develop innovative therapies, backed with science and quality, to capture the chronic market.
While the company has received offers from major multinational companies for its pharmaceutical business, Juneja asserts there was absolutely no reason or plan to sell, even if the valuation was huge. “I do not want to leave money for my kids. I would like to leave an asset which they can run and serve the country with,” he says.
The company has 10 manufacturing plants in the country. Recently, it built a research and development centre in Manesar.
Success in my Habit
Friday, July 20, 2012
Saint-Gobain plans solar energy solutions
Chennai: Saint-Gobain India is looking at supplying solar systems here, backed by the group’s solar energy equipment production facilities in Europe.
A division of the company, Saint-Gobain Solar Solutions, will offer and set up rooftop solar photovoltaic systems of a wide range of capacities, according to Mr S. Eisenhower, Director-Operations, Saint Gobain India.
The Indian subsidiary of the multinational Saint-Gobain will import the solar modules from group company Avancis Solar in Torgau, Germany. The facility makes thin film photovoltaic modules.
In recent years, the factory’s capacity has increased from about 30 MW to over 200 MW and is growing, he said.
The factory is being expanded to produce about 300 MW of solar modules annually.
Mr Eisenhower was speaking to Business Line on the sidelines of a seminar on renewable energy on Tuesday.
A company official said the solar division is in talks with integrators – people assembling solar energy rooftop equipment – to offer the Avancis range of modules. The company hopes to build a network of integrators who will use the modules, besides acting as a distribution chain. Saint-Gobain sees particular potential in the hospitality and healthcare segment, where there is keen interest for solar photovoltaic and solar powered-steam generation applications.
The policy environment for distributed energy generation capacity is slowly falling in place, with support for solar power generation as a part of renewable energy options. Also, grid power shortage in many States is driving residential and industrial consumers to set up backup power.
The company is also a major supplier of components the for solar power generation capacities being set up under the Jawaharlal Nehru National Urban Renewal Mission.
It manufactures curved mirrors for solar concentrators and flat mirrors used in solar thermal applications. It has supplied mirrors to power over 150 MW of such applications under the scheme, the official said.
A division of the company, Saint-Gobain Solar Solutions, will offer and set up rooftop solar photovoltaic systems of a wide range of capacities, according to Mr S. Eisenhower, Director-Operations, Saint Gobain India.
The Indian subsidiary of the multinational Saint-Gobain will import the solar modules from group company Avancis Solar in Torgau, Germany. The facility makes thin film photovoltaic modules.
In recent years, the factory’s capacity has increased from about 30 MW to over 200 MW and is growing, he said.
The factory is being expanded to produce about 300 MW of solar modules annually.
Mr Eisenhower was speaking to Business Line on the sidelines of a seminar on renewable energy on Tuesday.
A company official said the solar division is in talks with integrators – people assembling solar energy rooftop equipment – to offer the Avancis range of modules. The company hopes to build a network of integrators who will use the modules, besides acting as a distribution chain. Saint-Gobain sees particular potential in the hospitality and healthcare segment, where there is keen interest for solar photovoltaic and solar powered-steam generation applications.
The policy environment for distributed energy generation capacity is slowly falling in place, with support for solar power generation as a part of renewable energy options. Also, grid power shortage in many States is driving residential and industrial consumers to set up backup power.
The company is also a major supplier of components the for solar power generation capacities being set up under the Jawaharlal Nehru National Urban Renewal Mission.
It manufactures curved mirrors for solar concentrators and flat mirrors used in solar thermal applications. It has supplied mirrors to power over 150 MW of such applications under the scheme, the official said.
Madhucon arm commissions second unit in Nellore
Hyderabad: Simhapuri Energy, a subsidiary of Madhucon Projects Ltd, has commenced commercial operations of the second unit of 150 MW in Nellore district of Andhra Pradesh. With this, the first phase of 300 MW has gone on stream.
The diversified Hyderabad-based infrastructure holding company, Madhucon is implementing 1,920-MW thermal power plant with a total outlay of Rs 11,270 crore. The company expects to complete phase II of 300 MW by November-December.
Seventy per cent of the capacity will be supplied to Power Trading Corporation under tolling agreement and the balance goes towards merchant power. Once both the phases are implemented, they are expected to contribute about Rs 600 crore to the company’s revenue.
The company has long-term imported coal supply pact for the plant located close to the Krishnapatnam port.
Madhucon's subsidiary PT Madhucon Sriwijaya Power in Indonesia has signed a power purchase agreement with PT PLN (Persero) for supply of power for 25 years from its proposed 300 MW mine mouth coal plant to be set up in south Sumatra. The company hopes to tie up funds for the Rs 2,100 crore Indonesia project by the year end.
COAL mines
The company’s coal subsidiary PT Madhucon Indonesia has rights for three coal mines. One of the mines located at Diwas in South Sumatra has commenced commercial production with an output of 25,000 tonnes a month.
The diversified Hyderabad-based infrastructure holding company, Madhucon is implementing 1,920-MW thermal power plant with a total outlay of Rs 11,270 crore. The company expects to complete phase II of 300 MW by November-December.
Seventy per cent of the capacity will be supplied to Power Trading Corporation under tolling agreement and the balance goes towards merchant power. Once both the phases are implemented, they are expected to contribute about Rs 600 crore to the company’s revenue.
The company has long-term imported coal supply pact for the plant located close to the Krishnapatnam port.
Madhucon's subsidiary PT Madhucon Sriwijaya Power in Indonesia has signed a power purchase agreement with PT PLN (Persero) for supply of power for 25 years from its proposed 300 MW mine mouth coal plant to be set up in south Sumatra. The company hopes to tie up funds for the Rs 2,100 crore Indonesia project by the year end.
COAL mines
The company’s coal subsidiary PT Madhucon Indonesia has rights for three coal mines. One of the mines located at Diwas in South Sumatra has commenced commercial production with an output of 25,000 tonnes a month.
Maharashtra tops in number of foreign tourist visits
Mumbai: Maharashtra topped the list in number of foreign tourist visits, followed by Tamil Nadu and New Delhi. While Maharashtra received nearly 4.8 million tourists, Tamil Nadu welcomed 3.4 million people and New Delhi played host to 2.2 million foreigners, according to the latest report from the Union Ministry of Tourism.
The statistics released by the Ministry for 2011, says the number of Foreign Tourist Visits (FTVs) to Indian states/union territories was 19.5 million as compared to 17.9 million in 2010 and 14.4 million in 2009. This year, the number of FTVs registered a growth of 8.85 percent over 2010 as compared to a growth of 24.6 percent in 2010 over 2009. It is the third consecutive year where the number of foreign tourist visitors has increased.
"Our campaign Maharashtra Unlimited has been successful in reaching out to the globe. We lay emphasis on leisure tours, beach tours, rural tourism and heritage tourism among others. As Maharashtra is an all season-destination our next goal is to reach the topmost slot in the country in terms of domestic tourists' arrival," said Chhagan Bhujbal, Minister of Tourism.
The report said, the contribution of top 10 States was about 90.1 per cent to the total number of foreign tourists visits in the country for 2011.
The percentage shares of top 5 States were Maharashtra 24.7 per cent, Tamil Nadu 17.3 per cent, Delhi 11.1 per cent, Uttar Pradesh 9.7 per cent and Rajasthan 6.9 per cent.
The statistics released by the Ministry for 2011, says the number of Foreign Tourist Visits (FTVs) to Indian states/union territories was 19.5 million as compared to 17.9 million in 2010 and 14.4 million in 2009. This year, the number of FTVs registered a growth of 8.85 percent over 2010 as compared to a growth of 24.6 percent in 2010 over 2009. It is the third consecutive year where the number of foreign tourist visitors has increased.
"Our campaign Maharashtra Unlimited has been successful in reaching out to the globe. We lay emphasis on leisure tours, beach tours, rural tourism and heritage tourism among others. As Maharashtra is an all season-destination our next goal is to reach the topmost slot in the country in terms of domestic tourists' arrival," said Chhagan Bhujbal, Minister of Tourism.
The report said, the contribution of top 10 States was about 90.1 per cent to the total number of foreign tourists visits in the country for 2011.
The percentage shares of top 5 States were Maharashtra 24.7 per cent, Tamil Nadu 17.3 per cent, Delhi 11.1 per cent, Uttar Pradesh 9.7 per cent and Rajasthan 6.9 per cent.
Electronics manufacturing units get Rs 30k-cr worth incentives and subsidies
New Delhi: India has set aside Rs 30,000 crore worth of incentives and subsidies to encourage firms to set up electronics manufacturing units in the country. Startups interested in creation of apps for mobile phones, tablets and other electronic hardware will also benefit, as a package of Rs 10,000 crore is in the offing for them.
"About Rs 20,000 crore has already been approved. While the rest has been put forth for approval by the Cabinet for startups interested in IP creation, as an electronic development fund," J Satyanarayana, who took over this year as the new IT secretary, at department of electronics and IT told ET.
The fund will also be used for providing incentives to the tune of 20-25% as subsidy for capital expenditure incurred. Firms such as Nokia, Samsung, LG, Dell, Lenovo, who are already manufacturing in India, will also benefit from the new fund.
Government has also drafted a marketing plan to encourage 'Made in India' electronics in the global market.
"We will visit global trade fairs and exhibitions and invite component and electronic makers in Korea, Taiwan, China, Japan, Germany and US, to locate units in India," Satyanarayana added.
A delegation of Ministry officials is visiting a trade fair in Germany next month to scout for potential candidates. The Union Cabinet last month approved Rs 10,000 crore, as financial support for the development of electronic manufacturing clusters.
"About Rs 20,000 crore has already been approved. While the rest has been put forth for approval by the Cabinet for startups interested in IP creation, as an electronic development fund," J Satyanarayana, who took over this year as the new IT secretary, at department of electronics and IT told ET.
The fund will also be used for providing incentives to the tune of 20-25% as subsidy for capital expenditure incurred. Firms such as Nokia, Samsung, LG, Dell, Lenovo, who are already manufacturing in India, will also benefit from the new fund.
Government has also drafted a marketing plan to encourage 'Made in India' electronics in the global market.
"We will visit global trade fairs and exhibitions and invite component and electronic makers in Korea, Taiwan, China, Japan, Germany and US, to locate units in India," Satyanarayana added.
A delegation of Ministry officials is visiting a trade fair in Germany next month to scout for potential candidates. The Union Cabinet last month approved Rs 10,000 crore, as financial support for the development of electronic manufacturing clusters.
Tuesday, July 17, 2012
Ramky Infra to invest Rs 1,000-cr in industrial park
Hyderabad: Ramky Infrastructure Ltd is planning to replicate the Pharma City near Visakhapatnam with a multi-product industrial park near Hyderabad.
This time around, the company is handling the land acquisition directly. Earlier, the company had acquired the land allocated by Andhra Pradesh Industrial Infrastructure Corporation.
The Hyderabad-based Rs 6,000-crore diversified infrastructure and waste management solutions provider, Ramky group, plans to invest up to Rs 1,000 crore in the 2,000-acre park at Choutuppal on the busy Hyderabad-Vijayawada highway 60 km from here.
The Executive Director of Ramky Infrastructure, Mr M.Goutham Reddy, told Business Line, “The park will encourage projects from the textile, biochemical and other sectors offering them an integrated infrastructure. They would just have to come in and commence work.”
“Thus far, we have acquired over 1,000 acres and expect to complete the acquisition of the rest soon. We are looking at developing the project beginning this year end”, he said.
“We are not considering it as a Special Economic Zone. The entire land we have acquired is through direct purchase and we hope to invest about Rs 250 crore,” he explained.
The company is planning to phase out the development of the industrial park over 5-6 years, with the first phase coming up on a 2,000-acre site within 2-3 years.
IPO Move
“We are finalising the initial public offer for Ramky Enviro Engineers Ltd (REEL), a Ramky Group company engaged in management of environment offering services,” Mr Reddy said.
The company, known for NIMBY (not in my backyard) projects, is planning capital market entry to part fund its expansion and diversification plans.
“Consultants have been entrusted with the task to finalise the structure and the details to enter the market are being frozen. The market has to be conducive and must have appetite,” he said.
This time around, the company is handling the land acquisition directly. Earlier, the company had acquired the land allocated by Andhra Pradesh Industrial Infrastructure Corporation.
The Hyderabad-based Rs 6,000-crore diversified infrastructure and waste management solutions provider, Ramky group, plans to invest up to Rs 1,000 crore in the 2,000-acre park at Choutuppal on the busy Hyderabad-Vijayawada highway 60 km from here.
The Executive Director of Ramky Infrastructure, Mr M.Goutham Reddy, told Business Line, “The park will encourage projects from the textile, biochemical and other sectors offering them an integrated infrastructure. They would just have to come in and commence work.”
“Thus far, we have acquired over 1,000 acres and expect to complete the acquisition of the rest soon. We are looking at developing the project beginning this year end”, he said.
“We are not considering it as a Special Economic Zone. The entire land we have acquired is through direct purchase and we hope to invest about Rs 250 crore,” he explained.
The company is planning to phase out the development of the industrial park over 5-6 years, with the first phase coming up on a 2,000-acre site within 2-3 years.
IPO Move
“We are finalising the initial public offer for Ramky Enviro Engineers Ltd (REEL), a Ramky Group company engaged in management of environment offering services,” Mr Reddy said.
The company, known for NIMBY (not in my backyard) projects, is planning capital market entry to part fund its expansion and diversification plans.
“Consultants have been entrusted with the task to finalise the structure and the details to enter the market are being frozen. The market has to be conducive and must have appetite,” he said.
Gujarat Pipavav Port to invest Rs 1,097 cr on capacity expansion
Ahmedabad: Gujarat Pipavav Port Ltd (GPPL) on Monday said it plans to invest Rs 1,097 crore on expansion of Pipavav Port in Gujarat and has also concluded a capital-raising exercise of Rs 350 crore through Qualified Institutional Placement (QIP) and a preferential issue to its promoter, mainly to prepay the existing loan.
The company is proposing an expansion of the infrastructure facilities at APM Terminals at Pipavav in Gujarat to increase capacity and enhance operational efficiencies. “We propose to increase capacity for container cargo to about 1.5 million TEUs and the capacity for bulk cargo to 10 million tonnes,” said Mr Prakash Tulsiani, Managing Director.
The proposed expansion plans for container cargo include a new container berth of 348 meters to provide a contiguous berth of 735 meters to enable the port to simultaneously handle two post-Panamax vessels, dredging in berth pockets, three new post-Panamax cranes, increasing the yard capacity to 1.5 million TEUs and 10 new Rubber Tyred Gantry Cranes, besides internal roads.
For bulk cargo the plans include construction of a new container berth to enable the port to dedicate the existing multi-purpose berth exclusively for bulk cargo services, additional berth extension by 110 meters to provide a contiguous berth of 800 meters, dredging, new Gottwald crane, and a dedicated conveyor system for coal.
These proposed expansion activities for bulk cargo services will be undertaken based on customer requirements by entering into commercial arrangements with the customers.
The QIP was of 3.41 crore shares at a price of Rs 58.45 per share aggregating Rs 199.48 crore to institutional investors. The preferential issue was of 2.58 crore shares to the company’s promoter, APM Terminals Mauritius Ltd, at a price of Rs 58.45 per share, aggregating to Rs 150.52 crore. The promoter’s shareholding in the company has been maintained at 43.01 per cent post the QIP and the preferential issuance.
Kotak Mahindra Capital Company Ltd and IDFC Capital Ltd acted as the book-running lead managers for the company’s first QIP, said Mr Hariharan Iyer, CFO, GPPL/APM Terminals Pipavav.
Those allotted shares included institutions such as Bajaj Life Insurance, SBI Life Insurance, Franklin Templeton, Kotak Mahindra, Vanguard International Explorer Fund, Schroder Asia Pacific Fund PLC and Jardine Fleming.
The funds raised will be largely used to prepay the existing loan in order to strengthen the company’s balance sheet and to facilitate funding options for its expansion plans.
Gujarat Pipavav Port Ltd is the developer and operator of APM Terminals Pipavav located in Gujarat. The promoters, APM Terminals, bought a majority stake in the company in 2005, and the port began marketing its services to clients based in North-West India. In 2010, the company launched its IPO and improved cargo volumes, the number of clients, road and rail connectivity and storage facilities. The port is part of an international network of ports and terminals belonging to APM Terminals, which is part of the AP Moller-Maersk group.
The company is proposing an expansion of the infrastructure facilities at APM Terminals at Pipavav in Gujarat to increase capacity and enhance operational efficiencies. “We propose to increase capacity for container cargo to about 1.5 million TEUs and the capacity for bulk cargo to 10 million tonnes,” said Mr Prakash Tulsiani, Managing Director.
The proposed expansion plans for container cargo include a new container berth of 348 meters to provide a contiguous berth of 735 meters to enable the port to simultaneously handle two post-Panamax vessels, dredging in berth pockets, three new post-Panamax cranes, increasing the yard capacity to 1.5 million TEUs and 10 new Rubber Tyred Gantry Cranes, besides internal roads.
For bulk cargo the plans include construction of a new container berth to enable the port to dedicate the existing multi-purpose berth exclusively for bulk cargo services, additional berth extension by 110 meters to provide a contiguous berth of 800 meters, dredging, new Gottwald crane, and a dedicated conveyor system for coal.
These proposed expansion activities for bulk cargo services will be undertaken based on customer requirements by entering into commercial arrangements with the customers.
The QIP was of 3.41 crore shares at a price of Rs 58.45 per share aggregating Rs 199.48 crore to institutional investors. The preferential issue was of 2.58 crore shares to the company’s promoter, APM Terminals Mauritius Ltd, at a price of Rs 58.45 per share, aggregating to Rs 150.52 crore. The promoter’s shareholding in the company has been maintained at 43.01 per cent post the QIP and the preferential issuance.
Kotak Mahindra Capital Company Ltd and IDFC Capital Ltd acted as the book-running lead managers for the company’s first QIP, said Mr Hariharan Iyer, CFO, GPPL/APM Terminals Pipavav.
Those allotted shares included institutions such as Bajaj Life Insurance, SBI Life Insurance, Franklin Templeton, Kotak Mahindra, Vanguard International Explorer Fund, Schroder Asia Pacific Fund PLC and Jardine Fleming.
The funds raised will be largely used to prepay the existing loan in order to strengthen the company’s balance sheet and to facilitate funding options for its expansion plans.
Gujarat Pipavav Port Ltd is the developer and operator of APM Terminals Pipavav located in Gujarat. The promoters, APM Terminals, bought a majority stake in the company in 2005, and the port began marketing its services to clients based in North-West India. In 2010, the company launched its IPO and improved cargo volumes, the number of clients, road and rail connectivity and storage facilities. The port is part of an international network of ports and terminals belonging to APM Terminals, which is part of the AP Moller-Maersk group.
CBSE agrees to introduce financial education in school curriculum
Kolkata: The Central Board of Secondary Education or CBSE is likely to take the lead in introducing financial education in its post primary level curriculum after taking a leaf out of Reserve Bank of India's financial literacy goal.
RBI recognises that basic knowledge about monetary aspects play a key role in financial inclusion and inclusive growth. Imparting financial education among the masses at the early stage of a life cycle can make a real difference in a country where many do not get the opportunity to study beyond school level.
"This is truer in case of girl students. One must keep it in mind that for such students, this could be the last opportunity in life to get formal inputs on financial education," RBI said in a draft guidelines on financial education released on Monday..
In step with this goal, CBSE has formed a panel to facilitate this integration.
"Financial education is important life skill. Therefore, our educational system should equip students with these necessary life skills, without which, education will be incomplete," RBI said in the draft National Strategy for Financial Education.
The banking watchdog wants integration of financial education into school curriculum instead of introduction of a separate subject.
RBI recognises that basic knowledge about monetary aspects play a key role in financial inclusion and inclusive growth. Imparting financial education among the masses at the early stage of a life cycle can make a real difference in a country where many do not get the opportunity to study beyond school level.
"This is truer in case of girl students. One must keep it in mind that for such students, this could be the last opportunity in life to get formal inputs on financial education," RBI said in a draft guidelines on financial education released on Monday..
In step with this goal, CBSE has formed a panel to facilitate this integration.
"Financial education is important life skill. Therefore, our educational system should equip students with these necessary life skills, without which, education will be incomplete," RBI said in the draft National Strategy for Financial Education.
The banking watchdog wants integration of financial education into school curriculum instead of introduction of a separate subject.
India must explore investment potential in Philippines
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.
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.
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.
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