expansion of business in nepal
DESCRIPTION
This presentation is about expansion of pharmaceutical industry in Nepal. while the company have a headquarter in Switzerland and operating in more than 150 countriesTRANSCRIPT
IN THE NAME OF ALLAH THE MOST BENEFICENT AND THE MOST MERIFUL
Presenter
Arslan Ahmed
EXPANSION OF BUSINESSProject of International Business & WTO
Content Layout
Selected Country Country advantages Our Company Destination Country (Nepal) Why Nepal Mode of Expansion Theory of FDI Q&A Session
Selected Country
Switzerland
About Switzerland
Capital: Bern Cantons: 23 Area-Total: 41,285 km2 (133rd) Water (%): 4.2 Population: 8,014,000 GDP: 632.2 billion USD Largest City: Zurich Dialing code: 41 Currency: Swiss franc Official languages: German, French , Romansh , Italian Government: Federal republic, Directorial system Neighbors Austria, Liechtenstein, France, Italy, & Germany
Country Advantages
Top pharmaceutical companies(Medicament)
Swiss Watches Swiss chocolate Swiss is also popular for
its Secretive banking Sector
It’s also popular for Hospitality Sector
Tourism industry Direct Democracy Location (land
locked) Hydropower Agriculture
Products
Comparative Advantage Absolute Advantage
Selected Comparative & Absolute Advantage
Pharmaceutical: It contributes to 5.7% of the GDP Contributes to 30% of the
exportations Employs about 135'000 people Some popular pharmaceutical
companies are: Novartis (Sandoz), Hoffmann-La
Roche, Basilea Pharmaceutica, Actelion andStraumann, Merck Serono (Serono), Ferring Pharmaceuticals, Debiopharm, Nycomed, Janssen-Cilag, Galderma,Mondobiotech, Naari, Weleda, Octapharma and Frewitt.
Agricultural Products: Produces about 60% of the food
consumed Switzerland is subsidizing more
than 70% of its agriculture compared to 35% in the EU.
90 to 100% of potatoes, pork, veal, cattle and most milkproducts, are produced in the country
8.1 % of the total Swiss workforce was employed in the sector
Number of organic farms increased by 3.3 percent between 2009 and 2011.
Selected Comparative advantage
Selected Absolute Advantage
Our Company
Hoffman La-Roche: Founded in 1896, headquartered in Basel,
Switzerland Roche is the world’s largest biotech company Represented in over 150 countries Number of employees 82,089 Employee growth +2% Sales rise 4% to 45.5 billion Swiss francs due
to oncology sales, clinical laboratories business Core EPS 10% higher at 13.62 Swiss francs
Contd’
Board proposes dividend increase of 8% to 7.35 Swiss francs, the 26th consecutive year of growth
Outlook for 2013 sales to grow in line with previous year, core earnings per share targeted to grow ahead of sales. Roche expects to further increase dividend.
Operating free cash flow rises 10% to 15.4 billion Swiss francs
Destination Country
Nepal
Nepal
Officially the ”Federal Democratic Republic of Nepal” with capital Kathmandu
landlocked sovereign state located in South Asia With an area of 147,181 square kilometers
(56,827 sq mi) Population of approximately 30 million 41st most populous country Religion:
Hindu 80.6% Buddhist 10.7%, Muslim 4.2%, Kirant 3.6%, other 0.9%
Why Nepal?
2,335 foreign investment projects with a total investment of approximately $2.76 billion.
Available labor force 18 million in 2012 A decade long Nepalese Civil War has come
to an end Government brought constitutionals reforms
to attract the FDI Population is growing fast Disease prevalence is higher in Nepal than it
is in other South Asian countries
Contd’
Our company has presence in its neighboring countries Such As China & India
Nepal is in the list of countries with least medical facilities
Risk of major Infectious diseases is very high. Disease prevalence is higher in Nepal than it is in other South Asian countries
Already have an experience and knowledge of South Asian Region
Government decided to spent 7% of GDP on health instead of 5% previously
Less competition
Mode of Expansion
Direct Export: Reasons:
Manufacturing facility in India and China Better understanding of Region Customer satisfaction Greater protection of patents and copyrights It suits us as the volume of our product is small To avoid intermediaries To get benefits from government policies To minimize the cost of product
Theory Of FDI
Seekers of Advantage: Markets
Bigger market with population of 30 million Easy to approach Potential market as Disease prevalence is higher
than any other South Asian country Tax exemptions:
Income tax is exempt for a period of 7 years in the case of national priority industries.
Industries which provide direct employment to 1000 persons or more shall be entitled to an additional 2 year exemption from income tax.
Question & Answer Session