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A
Global Study Country report
On
Yemen
Submitted to:
Gujarat Technological University
Guided By:
Dr. N. M. Munshi
Prof. S. A. Munshi
Prof. L. T. Dharmwani
Prepared By:
MBA Second Year Students
Group 11-20, Batch: 2011-2012
Through
N. R. Vekaria Institute of Business Management
Studies,Junagadh.
2
INDEX
SR.NO. TOPIC PAGE NO.
1. OVERVIEW OF YEMEN 3 – 20
2. INTRODUCTION OF SECTOR 21 – 26
3 STUDY ON HEALTHCARE SECTOR 27 – 52
4 STUDY ON INFRASTRUCTURE
SECTOR 53 – 79
5 STUDY ON PHARMACEUTICAL
SECTOR 80 – 109
6 CONCLUSION 110 - 113
3
Overview Of
Yemen
4
1. Demographic profile of Yemen
Religion
Religion in Yemen consists primarily of two principals
Islamic religious groups; 53% of the Muslim population is Sunniand 45% is Shi'a
according to the UNHCR. Sunnis are primarily Shafi'i but also include significant groups
of Malikis and Hanbalis. Shi'is are primarily Zaidis and also have significant minorities of
Twelver Shias and Musta'ali Western Isma'ili Shias (see Shia Population of the Middle
East).
5
Health care
Despite the significant progress Yemen has made to expand and improve its health
care system over the past decade, the system remains severely underdeveloped. Total
expenditures on health care in 2004 constituted 5% of gross domestic product. In that
same year, the per capita expenditure for health care was very low compared with other
Middle Eastern countries—US$34 per capita according to the World Health
Organization. According to the World Bank, the number of doctors in Yemen rose by an
average of more than 7% between 1995 and 2000, but as of 2004 there were still only
three doctors per 10,000 persons. In 2005 Yemen had only 6.1 hospital beds available
per 10,000 persons. Health care services are particularly scarce in rural areas; only
25% of rural areas are covered by health services, compared with 80% of urban areas.
Most childhood deaths are caused by illnesses for which vaccines exist or that are
otherwise preventable. According to 2009 estimates, life expectancy in Yemen is 63.27
years.
Languages
Yemen is one of the main homelands of the South Semitic family of languages, which
includes the non-Arabic language of the ancient Hemiari. Its modern Yemeni
descendants are closely related to the modern Semitic languages of Eritrea and
Ethiopia. However, only a small remnant of those languages exists in modern Yemen,
notably on the island of Socotra and in the back hills of the Hadhramaut coastal region.
Modern South Arabian languages spoken in Yemen include Mehri, with 70,643
speakers, Soqotri, with an estimated 43,000 speakers in the Socotra archipelago (2004
census) .
6
Culture
Yemen is a culturally rich country with influence from many civilizations, such as the
early civilization of Sheba.
Education
In the strategic vision for the next 25 years since 2000, the government has committed
to bring significant changes in the education system, thereby reducing illiteracy to less
than 10% by 2025 Although Yemen’s government provides for universal, compulsory,
free education for children ages six through 15, the U.S. Department of State reports
that compulsory attendance is not enforced. The government developed the National
Basic Education Development Strategy in 2003 that aimed at providing education to
95% of Yemeni children between the ages of six and 14 years and also at decreasing
the gap between males and females in urban and rural areas.[
A seven year project to improve gender equity and the quality and efficiency of
secondary education, focusing on girls in rural areas, was approved by the World Bank
in March 2008. Following this, Yemen has increased its education spending from 4.5 %
of GDP in 1995 to 9.6 % in 2005.
7
2. Economic overview of Yemen
Economy of Yemen
100 Yemeni Rial Note
Currency Yemeni rial (YER)
Fiscal year Calendar year
Trade organizations GAFTA
Statistics
GDP $60.48 billion (2008 est.)
GDP growth 3.2% (2008 est.)
GDP per capita $2,600 (2008 est.)
GDP by sector agriculture: 9.4%, industry: 52.4%,
services: 38.1% (2008 est.)
Inflation (CPI) 18% (2008 est.)
Population 45.2% (2003)
8
below poverty line
Gini index 37.7 (2005)
Labour force 6.494 million (2008 est.)
Labour force
by occupation
most people are employed in
agriculture and herding; services,
construction, industry, and
commerce account for less than
one-fourth of the labor force
Unemployment 35% (2003 est.)
Main industries crude oil production and petroleum
refining; small-scale production of
cotton textiles and leather goods;
food processing; handicrafts; small
aluminum products factory;
cement; commercial ship repair
Ease of Doing
Business Rank
105th[1]
External
Exports $9.234 billion f.o.b. (2008 est.)
Export goods crude oil, coffee, dried and salted
fish
Main export partners China 23.3%, India 20.4%,
Thailand 19.1%, Japan 7.2%,
9
United Arab Emirates 5%, United
States 4.2% (2007)
Imports $9.215 billion f.o.b. (2008 est.)
Import goods food and live animals, machinery
and equipment, chemicals
Main import partners United Arab Emirates 15.1%, China
11.6%, United States 7.8%, Saudi
Arabia 7.1%, Kuwait 5.3%,
Germany 4.8% (2007)
Gross external debt $6.472 billion (31 December 2008
est.)
Public finances
Public debt 31.8% of GDP (2008 est.)
Revenues $9.097 billion (2008 est.)
Expenses $10.55 billion (2008 est.)
Economic aid recipient: $2.3 billion (2003-07
disbursements)
10
OVERVIEW OF INDUSTRY, TRADE AND COMMERCE
1) Industry
Oil production in Yemen is shrinking rapidly and is expected to drop
below 250,000 b/d by 2014. Meanwhile, Liquefied Natural Gas
(LNG) production has been increasing since its first shipment to
South Korea in November 2009, but not enough to compensate for
the fall in oil production. In 2009 oil accounted for over 85% of
export earnings and an estimated 70% of government revenues.
This leaves the economy highly vulnerable to fluctuations in the
international prices of oil and gas. The country's oil reserves are,
relatively limited and could be depleted within 10 years. Gas
revenues are set to total $30-50 billion from 2008 to 2028, and
recent discoveries of zinc will expend the extractive sector in
Yemen.
2) Trade
The economy of Yemen is highly dependent on oil, which
represents almost 70% of the government's income. The country
registered an economic growth of around 8% in 2010, due to the
beginning of the activity of exporting gas. Growth estimates for
2011 are of 3.5%. In addition to the….
11
3) commerce
Yemen’s financial adjustment and structural reform programme agreed
with the IMF and the World Bank will remain the basis for economic
policy during 2001. The Government is improving social safety net
arrangements in order to curb the hardship that would arise from
reform actions.
Civil service reform is one of the most politically important aspects of
the reform programme that Yemen has agreed with IMF. The current
plan calls for a 20 percent cut in the overall number of civil servants by
2003. With unemployment estimated at between 20 percent and 40
percent, the Government is facing considerable resistance to the
reform. As a measure to ease the difficulties, the reform programme
calls for a creation of a civil service fund, which will, for a limited time,
continue to pay the wages of redundant employees. Yemen’s real GDP
growth estimated at 4.9 percent in 2001 is expected to decline to 4.0
percent in 2002 as oil-production and export growth rates fall back
from recent highs.
A new government was formed in April 2001. It is expected that the
new government will continue its efforts for the implementation of
economic reforms and structural adjustment programmes. The
parliamentary election due in April 2001 is postponed until 2003,
extending the life of parliament from four to six years.
12
DIFFERENT ECONOMIC SECTOR
1) Micro Finance Sector
Some countries in the Arab region are experiencing security and political unrest due
to the successive revolutions Naturally all sectors of the state are affected, and
each sector must take some precautionary steps to get to safety. Since the
microfinance sector mainly deals with low-income people who don’t have access to
financial services from traditional sources, this sector is one of the most vulnerable
to damages during periods of security and political unrest.
In Yemen, the microfinance sector in 2010 has made significant progress, with the
number of active clients increasing by 100% in one year to reach over 60,000
projects, serving approximately 300,000 citizens. MFIs, including Al-Amal Bank,
welcomed this progress, and drew up plans for 2011, in order to reach even more
active clients.
13
2) Music Sector
The Yemen Music House provides Yemenis wit h an outlet for musical
expression
If you talk to the average student at a Yemeni university, you’ll find that they study a
predictable variety of subjects: English, engineering, medicine, business administration
or accounting. This list is understandable; most students attend university hoping to
learn skills that will lead to gainful employment, which is understandably a priority given
the economic difficulties of life in Yemen. But in the midst of such practicality, it’s clear
that something gets lost. The study and value of the arts is on the decline in Yemen,
and has been for some time. In the words of the American poet Amy Lowell, “Art is the
desire of a man to express himself, to record the reactions of his personality to the world
helivesin.”.
3) Water Sector
Water supply projects aim at increasing the access of the local population to
hygienically safe drinking water while improved sanitation lessens the health risk for the
population in the project area. Ultimately, all measures aim at improving the health of
the people and thus at contributing to poverty reduction.
14
Together with academic research institutions, we aim at gaining a deeper
understanding of these causal links by using robust, quantitative-based methods
and applying those to the municipal water sector in the Republic of Yemen,
where Financial Cooperation has been engaged for many years. The Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) and local institutions in the
partner country are also involved in this impact assessment which aims at
collecting information on how decentralisation and corporate governance in the
water sector affect project impacts.
Overview of business and trade at international lev el
Over the past several decades, Yemen has relied more and more on imports, but,
despite periodic peaks in the amount of imports, Yemen's oil exports have kept its trade
balance positive. In 2000, exports stood at US$4.2 billion, while imports were worth
US$2.7 billion. In addition to legitimate trade, the smuggling of firearms, alcohol, and
consumer goods to and from Saudi Arabia is rampant on the Red Sea. Yemen imports
a wide variety of goods, except oil and oil products. Neighboring Gulf countries, mainly
Saudi Arabia and the United Arab Emirates, supply the majority of Yemen's imports,
followed by France, the United States, and Italy.
Oil accounts for over 85 percent of total sales abroad. Non
processed agricultural products, mostly foods. Given its weak industrial base, oil is
expected to remain the country's major export. Sales
expected to surge, but the prospects for that eventuality are far from certain. Yemen
exports the majority of its oil to Asia, especially Thailand, China, South Korea, and
Singapore.
15
Overview of business and trade at international lev el
Over the past several decades, Yemen has relied more and more on imports, but,
despite periodic peaks in the amount of imports, Yemen's oil exports have kept its trade
balance positive. In 2000, exports stood at US$4.2 billion, while imports were worth
2.7 billion. In addition to legitimate trade, the smuggling of firearms, alcohol, and
to and from Saudi Arabia is rampant on the Red Sea. Yemen imports
a wide variety of goods, except oil and oil products. Neighboring Gulf countries, mainly
Saudi Arabia and the United Arab Emirates, supply the majority of Yemen's imports,
, the United States, and Italy.
Oil accounts for over 85 percent of total sales abroad. Non-oil exports include semi
processed agricultural products, mostly foods. Given its weak industrial base, oil is
expected to remain the country's major export. Sales of liquefied natural gas are
expected to surge, but the prospects for that eventuality are far from certain. Yemen
exports the majority of its oil to Asia, especially Thailand, China, South Korea, and
Overview of business and trade at international lev el
Over the past several decades, Yemen has relied more and more on imports, but,
despite periodic peaks in the amount of imports, Yemen's oil exports have kept its trade
balance positive. In 2000, exports stood at US$4.2 billion, while imports were worth
2.7 billion. In addition to legitimate trade, the smuggling of firearms, alcohol, and
to and from Saudi Arabia is rampant on the Red Sea. Yemen imports
a wide variety of goods, except oil and oil products. Neighboring Gulf countries, mainly
Saudi Arabia and the United Arab Emirates, supply the majority of Yemen's imports,
oil exports include semi-
processed agricultural products, mostly foods. Given its weak industrial base, oil is
of liquefied natural gas are
expected to surge, but the prospects for that eventuality are far from certain. Yemen
exports the majority of its oil to Asia, especially Thailand, China, South Korea, and
16
Taxes on international trade (% of revenue) in Yeme n
Taxes on international trade include import duties, export duties, profits of export or
import monopolies, exchange profits, and exchange taxes. This page includes a
historical data chart, news and forecast for Taxes on international trade (% of revenue)
in Yemen. Yemen is a low income country located in the Arabian Peninsula. The nation
is highly dependent on declining oil resources which account for 25% of GDP and 70%
of government revenue. Agriculture is the main source of revenue for 50% of the
population. Yet, soil erosion, sand dune encroachment, deforestation and scarcity of
water are hampering the growth in this sector. In 2009, the first liquefied natural gas
plant which provides some hope for the future.
PRESENT TRADE RELATION AND BUSINESS VOLUME OF
DIFFERENT PRODUCT WITH INDIA
Present Trade Relation
The foreign policies of India and Yemen have much in common. Both are committed to
non-alignment, international peace, combating international terrorism and creation of a
zone of peace in the Indian Ocean. Both India and Yemen are important members of
the Indian Ocean Rim - Association for Regional Cooperation (IORARC), with Yemen
being the Chair and India, the Vice Chair. The chairmanship of IOR-ARC would be
passed on to India during September 2011. Yemen has been an ardent supporter of
India in the international fora, particularly the United Nations. It has supported India’s
candidature for the Non-Permanent Seat in the UN Security Council for the period 2011-
2012. Yemen has also voiced support in favour of India in its quest for a Permanent
Seat in the expanded UNSC in future. On its part, India affirmed its strong support to the
17
democracy, unity and stability in Yemen and supported Yemen’s attempt for accession
to the World Trade Organisation.
Saudi Arabia is the one of largest suppliers of oil to India. India's booming Construction
industry also receives that added fillip and rising affluence has created greater demand
for goods and services thereby boosting Indian industrial growth. Saudi Arabia has
contributed aid to India after the Gujarat earthquake in 1990s.
Business volume of different products with India
Health care in India
In the greater India, the hospitals are run by government, charitable trusts and by
private organizations. The government hospitals in rural areas are called the (PHC)s
primary health centre. Major hospitals are located in district head quarters or major
cities. Apart from the modern system of medicine, traditional and indigenous medicinal
systems like Ayurvedic and Unani systems are in practice throughout the country. The
Modern System of Medicine is regulated by the Medical Council of India, whereas the
Alternative systems recognised by Government of India are regulated by the
Department of AYUSH (an acronym for Ayurveda, Yoga, Unani, Siddha & Homeopathy)
under the Ministry of Health, Government of India. PHCs are non-existent in most
places, due to poor pay and scarcity of resources. Patients generally prefer private
health clinics. These days some of the major corporate hospitals are attracting patients
from neighboring countries such as Pakistan, countries in the Middle East and some
European countries by providing quality treatment at low cost. In 2005, India spent 5%
of GDP on health care, or US$36 per capita.
18
PESTLE ANALYSIS OF YEMEN
1) POLITICAL
Yemen is among the relatively freer countries of the Middle East (emphasis on
relatively). On paper at least, its president is popularly elected to seven-year
terms. But President Ali Abdullah Saleh, in power since 1978, is effectively the
nation's dictator. The 301 members of Yemen's lower House of Representatives
are popularly elected to six-year terms. The 111 members of its upper Shura
Council are appointed, as is the prime minister. Following the 2006 local council
elections, international observers judge the process fair, open and competitive.
19
2) ECONOMIC
Gross Domestic Product (GDP) (2003E): $11 billion
Real GDP Growth Rate (2003E): 4.0% (2004F): 4.2%
Consumer Price Inflation (2003E): 10.8% (2004F): 14.5%
Unemployment Rate (2003E): 35.0%
Merchandise Exports (2003E): $4.0 billion
Merchandise Imports (2003E): $3.4 billion
Total Foreign Debt (2003E): $6.9 billion
Current Account Balance (2003E): 3.0% of GDP
3) SOCIAL
The government and its security forces, often considered to suffer from rampant
corruption, have been responsible for torture, inhumane treatment, and extrajudicial
executions. There are arbitrary arrests of citizens, especially in the south, as well as
arbitrary searches of homes. Prolonged pretrial detention is a serious problem, and
judicial corruption, inefficiency, and executive interference undermine due process.
Freedom of speech, the press, and religion are all restricted.
4) LEGAL
Labor laws are very strong in Austria and the labor organizations play vital role in
business. One of Yemen’s foremost attractions as a business location is its business-
friendly tax system. Profits are taxed with a standard tax rate of 25 percent - a
strong showing even in comparison to the new EU member states. A levy such as trade
or net worth taxes (the norm in other European countries) does not exist in Austria.
5) ENVIROMENT
For a long time after the war (world war), reconstruction and supporting the industrial
development were the only priorities to Austrians. Only in the late seventies,
environmental movements gained momentum and the general awareness of pollution
20
and other issues increased. Later, a Green party formed and a number of environmental
laws were released to protect the nature of the nation.
6) TECHNICAL & OTHER FACTORS
Climate change and natural catastrophes increasingly influence business location
decisions. it is important to monitor advances in technology and consider adopting new
technologies that can increase your marketing capabilities.
In this Global Country Report we have given priority to three major sector. Such as,
1. Health care Sector
2. Infrastructure Sector
3. Pharmaceutical Sector
21
Introduction
Of
Sector
22
INTRODUCTION OF HEALTHCARE SECTOR
The health care industry, or medical industry, is a sector within the economic
system that provides goods and services to treat patients
with curative, preventive, rehabilitative, palliative, or, at times, unnecessary care. The
modern health care sector is divided into many sub-sectors, and depends
on interdisciplinary teams of trained professionals and paraprofessionals to meet health
needs of individuals and populations.
The health care industry is one of the world's largest and fastest-growing
industries. Consuming over 10 percent of gross domestic product (GDP) of most
developed nations, health care can form an enormous part of a country's economy.
For purposes of finance and management, the health care industry is typically divided
into several areas. As a basic framework for defining the sector, the United
Nations International Standard Industrial Classification (ISIC) categorizes the health
care industry as generally consisting of:
1. hospital activities;
2. medical and dental practice activities;
3. "Other human health activities".
23
This third class involves activities of, or under the supervision of, nurses, midwives,
physiotherapists, scientific or diagnostic laboratories, pathology clinics, residential
health facilities, or other allied health professions, e.g. in the field of optometry,
hydrotherapy, medical massage, yoga therapy, music therapy, occupational therapy,
speech therapy, chiropody, homeopathy, chiropractics, acupuncture, etc.
The Global Industry Classification Standard and the Industry Classification
Benchmark further distinguish the industry as two main groups:
I. Health care equipment and services; and
II. Pharmaceuticals, biotechnology and related life sciences.
Health care equipment and services comprise companies and entities that provide
medical equipment, medical supplies, and health care services, such as hospitals,
home health care providers, and nursing homes. The second industry group comprises
sectors companies that produce biotechnology, pharmaceuticals, and miscellaneous
scientific services.
Other approaches to defining the scope of the health care industry tend to adopt a
broader definition, also including other key actions related to health, such as education
and training of health professionals, regulation and management of health services
delivery, provision of traditional and complementary medicines, and administration
of health insurance.
4. Hospital activities;
5. Medical and dental practice activities;
6. "Other human health activities".
This third class involves activities of, or under the supervision of, nurses, midwives,
physiotherapists, scientific or diagnostic laboratories, pathology clinics, residential
health facilities, or other allied health professions, e.g. in the field of optometry,
hydrotherapy, medical massage, yoga therapy, music therapy, occupational therapy,
speech therapy, chiropody, homeopathy, chiropractics, acupuncture, etc.
24
The Global Industry Classification Standard and the Industry Classification
Benchmark further distinguish the industry as two main groups:
III. Health care equipment and services; and
IV. Pharmaceuticals, biotechnology and related life sciences.
Health care equipment and services comprise companies and entities that provide
medical equipment, medical supplies, and health care services, such as hospitals,
home health care providers, and nursing homes. The second industry group comprises
sectors companies that produce biotechnology, pharmaceuticals, and miscellaneous
scientific services.
Other approaches to defining the scope of the health care industry tend to adopt a
broader definition, also including other key actions related to health, such as education
and training of health professionals, regulation and management of health services
delivery, provision of traditional and complementary medicines, and administration
of health insurance.
25
Introduction of Infrastructure sector
Infrastructure is basic physical and organizational structures needed for the operation of
a society or enterprise, or the services and facilities necessary for an economy to
function. It can be generally defined as the set of interconnected structural elements
that provide framework supporting an entire structure of development. It is an important
term for judging a country or region's development.
The term typically refers to the technical structures that support a society, such as
roads, water supply, sewers, electrical grids, telecommunications, and so forth, and can
be defined as "the physical components of interrelated systems providing commodities
and services essential to enable, sustain, or enhance societal living conditions."
Viewed functionally, infrastructure facilitates the production of goods and services, and
also the distribution of finished products to markets, as well as basic social services
such as schools and hospitals; for example, roads enable the transport of raw materials
to a factory. In military parlance, the term refers to the buildings and permanent
installations necessary for the support, redeployment, and operation of military forces.
26
Introduction of Pharmaceutical industry
The pharmaceutical industry is characterized by a high level of concentration with
multinational companies dominating the industry. Pharmaceutical drugs are used for the
benefit of human and animal health. Innovators in pharmaceutical R&D of new drugs
have not only controlled life threatening diseases and improved the quality of life and
productivity, but have also increased the average life expectancy during the past few
decades. The pharmaceutical industry is an important sector in the worldwide economy.
Around 70% of pharmaceutical drugs are consumed as the solid oral dosage type, that
is tablets and capsules and the majority of the constituents of a dosage form are
particulate in nature. These constituents are the Active Pharmaceutical Ingredients
(APIs) and the excipients. The particle size properties of pharmaceutical APIs and
excipients are very important characteristics for these solid oral dosage formulations.
During formulation development stages, in vitro tests are used to determine the profiles
of solid dosage forms. This allows assessment of the interactive effects of these
properties on the bioavailability of the API in the human body, and helps predict
therapeutic efficiency. In general, while large particle size helps optimize flow during the
granulation process of solid dose forms, a smaller particle size of APIs contained in
tablets or capsules is known to enhance dissolution and absorption.
27
Sector And Company Specific Study
28
Study on
Health-Care
Sector
STRUCTURE OF HEALTHCARE SECTOR
29
STRUCTURE OF HEALTHCARE SECTOR
Primary Health
Care
Secondary Health
Care
Tertiary health
care
STRUCTURE OF HEALTHCARE SECTOR
Primary Health
Secondary Health
Tertiary health
30
A. Primary Health Care Primary care is usually the first point of contact for a patient. Primary care is typically
provided by general practitioners/family doctors, dentists, pharmacists, midwives, etc. It
is where most preventative health can be achieved and where early diagnosis can be
possible, which may prevent more expensive hospital treatment being required.
By its nature, primary care involves communicating with patients, developing personal
connections with patients, going out into the community, using outreach programs for
promoting good health and preventative strategies, and more. As such, it can often be
extremely cost-effective.
B. Secondary Health Care
In most countries this is usually when a primary care person such as a doctor refers a
patient to a specialist.
Secondary care providers typically do not have the type of continuous contact with
patients that primary care providers do, but help address more complex conditions.
C. Tertiary Health Care
This is specialized consultive care, often hospital care.
People often talk about building schools and hospitals, especially when it comes to aid
and charity for poorer regions and countries. While hospitals are no doubt important,
they give politicians and organizations more credence as they offer visible and tangible
results.
31
However, sometimes strengthening and improving primary care can often provide more
effective health care. While this may be better for recipients, especially in poorer
countries, it is also harder to measure and so often gets neglected.
The WHO, in the above-noted report, has tried to reiterate the importance of primary
health care in health care systems.
32
ROLE OF THE HEALTH SECTOR IN YEMEN
Reform of the health sector in order to create efficient and equitable health services has
meant defining new strategies. The implementation of some of these strategies will exist
within the public health care provision system, and some will exist outside it in the
private and NGO sectors, but be more strongly regulated by government than
previously In addition, reform strategies require that there be a matching of service
provision by government with budgetary realities. Given the current low budgetary
support for the health sector, and even with increased support in the future, it is clear
that the reform will necessarily have to limit the size of the government’s health care
provision system. As such, the present idea of building up a comprehensive facility
based e public health service delivery system will need to be abandoned. Devising
alternative strategies which make more efficient use of existing facilities and manpower,
and matching the needs of the population with strategies which can meet these needs
most cost-effectively will be encouraged at the national, governorate and district level.
33
• Realistically redefining the limits of the public health service provision system
• Developing policies for encouraging and regulating alternative health care providers
i.e. a Safe private and NGO health sector
• Rationalizing the budget with effective and efficient reform strategies
• To provide basic, limited curative health services on a cost sharing basis with the
public, especially targeting the poor
• To provide basic preventive services such as EPI, nutrition, and health education for
the entire population
• To engage in communicable disease control programs for the entire population,
especially
INTRODUCTION OF APOLLO HEALTH CARE
Type
Industry
Founded
Headquarters
Key people
Revenue
Employees
Website
34
INTRODUCTION OF APOLLO HEALTH CARE
Apollo Hospitals
Public
Industry Healthcare
Founded 1983
Headquarters Chennai, India
Key people Prathap C. Reddy, Founder and Chairman Preetha Reddy , Managing Director
Revenue 9.566 billion
Employees Morethan 10,000
Website www.apollohospitals.com
INTRODUCTION OF APOLLO HEALTH CARE
, Managing
www.apollohospitals.com
35
Apollo Hospitals is a major hospital chain based in Chennai, India. It was founded by
Dr Prathap C. Reddy in 1983. Apollo is a private healthcare provider in Asia with
hospitals in India, Sri Lanka, Bangladesh, Ghana, Nigeria, Republic of
Mauritius, Qatar,Oman andKuwait
Several of the group's hospitals have been among the first in India to receive a form
of international healthcare accreditation, in their case by the America-based Joint
Commission International (JCI). The Hyderabad hospital was the first in the world,
outside the US, to receive JCI's Disease- or Condition-Specific Care Certification in
addition to general accreditation when it received this for its Acute Stroketreatment in
2006. However, they have not as yet acquired international accreditation from
any hospital accreditation group from outside of the USA.
The group has developed services in telemedicine, after starting a pilot project in 2000
in Dr Pratap C. Reddy's own home village. It is now the largest telemedicine provider in
India with 71 centers
Another venture of the group is Apollo Health Street, a global healthcare services
company. It offers business processes outsourcing and IT services internationally,
operating out of three countries - the United States, the United Kingdom, and India. The
success of Apollo Hospitals has made it the topic for Harvard Business School case
study.
New logo of Apollo healthcare
36
Group Companies of Apollo Hospitals
Apollo Health Street Limited: It is a global healthcare services company that offers
business process outsourcing and IT services. IT division of Apollo is based on Java
.dotnet & SQL Language development. Apollo Pharmacies: It is the largest retail
pharmacy chain in India with over 1000 retail outlets in India. Apollo Pharmacies is
moving towards offering e-prescription based services to the end user and the doctor.
Apollo Health & Lifestyle Limited: Apollo Health & Lifestyle Limited (AHLL) is
engaged in establishing a network of clinics in India and neighboring countries.
MedVarsity Online Limited (MOL): MedVarsity Online Limited is promoted
by Apollo Hospitals and NIIT Ltd. MedVarsity has developed over 1500 hours of medical
content that is accessible to the medical community anytime and anywhere
37
.
Apollo Telemedicine Enterprises Limited (ATEL) : Apollo Telemedicine Enterprises
Limited has developed the 'Apollo Telemedicine Network' that allows the participant
sites to collaborate with institutions in the country and abroad and provides their
clientele access to better healthcare in areas not adequately served by the medical
community.
Family Health Plan Limited (FHP): The Company deals in the healthcare insurance
sector and is the largest Third Party Administrator (TPA) in Asia.
Equipment World: Equipment World sources and selects medical equipment,
catalogues and provides advice and services on technology, techno-commercial issues.
Keimed.com Limited: Keimed.com Limited is a unified national pharmaceutical
procurement and supply chain management company for a wide range of medical
goods, consumables, drugs, surgical, health and personal care products.
38
FUNCTIONS OF APOLLO HEALTHCARE
We all know "prevention is better than cure". This is where Apollo hospitals comes into
the picture by recognizing the importance and need for preventive health care.
39
AEMOGRAMHaemoglobin
MCHC,MCV,MCH,ESR
DLC
Platelet count
BIOCHEMICAL PARAMETERS
Blood sugar
Uric Acid
Lipid Profile
LIVER FUNCTION TESTSTotal protein
Globulin
SGPT
GENERAL TESTSBlood Grouping & RH Typing
Stool examination
ECG
X-Ray
KIDNEY ASSESSMENTS.Urea
S.Creatinine
Complete urine Analysis
40
Business activities of Apollo health care
1.The Apollo Hospitals Group2. Multi Specialty Hospital3.Apollo Clinics
4.Telemedicine and E-Health5.Healthcare HR Staffing6. Education
7.Apollo Pharmacies8.Healthcare Consultancy, Projects and Management9. Hospital Information Systems
10. Health Insurance11. Third Party Insurance Administration12. Clinical Trials
BUSINESS
ACTIVITIES
41
COMPARATIVE POSITION OF HEALTH CARE SECTOR OF YEMEN WITH INDIA & GUJRAT
Gujarat forms an area that housed the regions of the Indus Valley civilization
and Harappan sites. Around 50 Harappan sites are found in Gujarat. Lothal, Rangpur,
Amri, Lakhabaval, Rozdi etc. are some of these sites. This makes it an important
territory that reveals the history of India. The Dravidian tribes were said to be the
original inhabitants of this region. Even before the Aryan occupation of Gujarat, it is said
to have had trade contracts with Sumer, the Persian Gulf in about 1000-750BC. Rock
edicts in the Girnar hills indicate that Ashoka extended his domain into Gujarat. It was
during the Mauryan rule that this region witnessed the influence of Buddhism. The
Mauryans also promoted trade and helped in spread of its culture. In about 150BC the
Bactarian Greeks under Meander is said to have instilled their rule. Till 40AD they are
said to have had trade contracts with Rome. From about AD130-390 the Scythians
ruled it. After 300AD the Guptas established their reign which lasted till 460AD. The
Vallabhi established their sway in between . After the death of Harshvardhana, the
Gujjars controlled it till 746AD. The Solankis ruled over Gujarat till 1143. Gujarat
attained its greatest territorial extent under the Solanki dynasty, from the 9th century.
Muhammud of Ghazni attacked Somnath in Gujarat leading to the downfall of the
Solankis. The conquest of Ala-ud-din Khilji king of Delhi in 1288 also influenced the
conditions in Gujarat. The Sultans of Delhi had their sway over Gujarat from 1298-
1392AD. Ahmad Shah I, the first independent Muslim ruler of Gujarat founded
Ahmadabad in 1411. Then the Mughals ruled for about 2 centuries till the Marathas
terminated their rule in the mid 18th century. It was during the18th century that Gujarat
was divided among number of chiefs. From 1803-1827 the British set up their
administration. The British East India company first head quarters in India was at Surat.
It was later moved to Bombay. Finally on May1,1960, the state of Gujarat was formed
from the north and west portions of Bombay state, the remainder being renamed the
state of Maharashtra.
The state of Gujarat has an area of 196,024 sq. km. and a population of
50.67 million. There are 25 districts, 170 blocks and 18539 villages. The State has
42
population density of 258 per sq. km. (as against the national average of 312). The
decadal growth rate of the state is 22.66% (against 21.54% for the country) and the
population of the state continues to grow at a much faster rate than the national rate.
HEALTH INDICATORS OF GUJARAT & INDIA
The Total Fertility Rate of the State is 2.5. The Infant Mortality Rate is 50 and
Maternal Mortality Ratio is 160 (SRS 2004 - 06) which are lower than the National
average. The Sex Ratio in the State is 920 (as compared to 933 for the country).
Comparative figures of major health and demographic indicators are as follows :
Demographic, Socio-economic and Health profile of Y emen as compared to India
& Gujarat state figures
Sr.
No. Item Gujarat India Yemen
1 Total population (Census 2001) (in
million) 50.67 1028.61 892.91
2 Decadal Growth (Census 2001) (%) 22.66 21.54 18.06
3 Crude Birth Rate (SRS 2008) 22.6 22.8 20.8
4 Crude Death Rate (SRS 2008) 6.9 7.4 5.4
5 Total Fertility Rate (SRS 2008) 2.5 2.6 1.5
6 Infant Mortality Rate (SRS 2008) 50 53 45
7 Maternal Mortality Ratio (SRS 2004 -
2006) 160 254 196
8 Sex Ratio (Census 2001) 920 933 945
9 Population below Poverty line (%) 14.07 26.10 29.07
10 Schedule Caste population (in
million) 3.59 166.64 154.66
11 Female Literacy Rate (Census 2001)
(%) 57.8 53.7 65.01
43
Health Infrastructure of Gujarat
Particulars Required In position Shortfall
Sub-centre 7263 7274 -
Primary Health Centre 1172 1073 99
Community Health Centre 293 273 20
Multipurpose worker (Female)/ANM at Sub
Centres & PHCs
8347 7060 1287
Health Worker (Male) MPW(M) at Sub
Centres
7274 4456 2818
Health Assistant (Female)/LHV at PHCs 1073 267 806
Health Assistant (Male) at PHCs 1073 2421 -
Doctor at PHCs 1073 1019 54
Obstetricians & Gynaecologists at CHCs 273 6 267
Physicians at CHCs 273 0 273
Paediatricians at CHCs 273 6 267
Total specialists at CHCs 1092 81 1011
Radiographers 273 124 149
Pharmacist 1346 781 565
Laboratory Technicians 1346 897 449
Nurse/Midwife 2984 1585 1399
44
HealthCare System in Yemen & India (Gujarat)
The Indian HealthCare system is a three-tire structure which focuses on delivering care
at the individual level. This structure is designed according to the population norms.
Sub Center
Primary
HealthCareCenter
(PHC)
Community
Health Center
(CHC)
45
1. Sub Center
The Sub Center is the closest to the common man and becomes the first point of
contact in the three tire system.
• Each Sub Center is managed by an Auxiliary Nurse Midwife (ANM) and one Male
Health Worker.
• One Female Health Assistant and One Male Health Assistant manage 6 Sub
Centers.
2. Primary HealthCare Center (PHC)
Primary HealthCare Center’s form the second tire in the system (Secondary Care) and
each PHC is a hub for 6 Sub-Center’s. A PHC typically has a 4-6 beds for addressing
immediate and basic Health Care necessities.
3. Community Health Center (CHC)
• A CHC has 1 Surgeon, 1 Physician, 1 Gynecologist and 1 Pediatrician along with
21 Paramedical Staff.
• CHC is a 30 bed facility.
• 1 CHC for 4 PHC’s.
46
PRESENT POSITION & TREND OF BUSINESS OF APOLLO HEALTH CARE
The Healthcare sector, in India, is at an inflection point and is poised for rapid growth in
the medium term. However, Indian healthcare expenditure is still amongst the lowest
globally and there are significant challenges to be addressed both in terms of
accessibility of healthcare service and quality of patient care. While this represents
significant opportunity for the private sector, the Government can also play an important
role in facilitating this evolution.
Current Position of Apollo Healthcare in India
The Indian Healthcare sector currently represents a USD 40 Billion industry1. A break-
up of the sector as of 2009 is provided:
Hospitals
50%
Pharma
25%
Diagnostics
10%
insurance &
Medical
Equipments
15%
Sales
47
.
Current Position
of Apollo Health
Care
Product/ services Apollo Hospital
Sales contribution (EXPORT) 76.4%
Sales contribution (IMPORT) 77.9%
Product / service offering Healthcare delivery services
including consultancy
and hospital-based pharmacies
Market position Largest private healthcare service
provider in the country with a
network of 3,279 owned beds,
2,197beds through
subsidiaries/JVs/associates and
2,588managed beds
Industry growth
expectations
Healthcare delivery industry to
grow at a five-year
CAGR of 12% to Rs 3,500 bn by
FY15. Lack of
government spending especially
in tertiary and
secondary care will lead to higher
growth of private
players who are increasingly
looking to tap
opportunities in this space
Sales growth 24.0%
Drivers of growth for Apollo Healthcare Sector
A combination of demographic and economic factors is expected to bring about
increased healthcare coverage in India which is expected to drive the growth of the
sector.
Demographic factors:
1. Increase in Population
in 2009-2010 to 1.4 billion by 20264.
2. Shift in demographics
and an expected increase of geriatric population from current 96 million to around
168 million by 2026. This represents
for preventive, curative and geriatric care opportunities.
Demographic
factors
Economic
factors
48
Drivers of growth for Apollo Healthcare Sector
combination of demographic and economic factors is expected to bring about
increased healthcare coverage in India which is expected to drive the growth of the
Increase in Population : Expected increase in population from
2010 to 1.4 billion by 20264.
Shift in demographics : 60 percent of the population in the younger age bracket
and an expected increase of geriatric population from current 96 million to around
168 million by 2026. This represents a huge patient base and creates a market
for preventive, curative and geriatric care opportunities.
• Increase in Population
• Shift in demographics
• Rise in disposable income
• Rising Literacy
Demographic
factors
• Tax benefits
• Medical Tourism
• Insurance coverageEconomic
factors
Drivers of growth for Apollo Healthcare Sector
combination of demographic and economic factors is expected to bring about
increased healthcare coverage in India which is expected to drive the growth of the
: Expected increase in population from about 1.1 billion
: 60 percent of the population in the younger age bracket
and an expected increase of geriatric population from current 96 million to around
a huge patient base and creates a market
49
3. Rise in disposable income : Households in the above INR 200,000 per annum
bracket can benefit from an increase in disposable income from 14 percent in
2009-2010E to 26 percent in 2014-2015P making healthcare more affordable.
4. Rising Literacy : Growing general awareness, patient preferences and better
utilization of institutionalized care as a result of increase in literacy rates.
Economic factors:
1. Tax benefits : Lower direct taxes, higher depreciation on medical equipment,
income tax exemption for 5 years to hospitals in rural areas, etc. are being
provided by the Government to the sector.
2. Medical Tourism : India emerging as a major medical tourist destination with
medical tourism market expected to reach USD 2 billion by 20129.
3. Insurance coverage : Increase in health insurance coverage with a number of
private players and foreign players entering the market to cater to increased
demand. The sector is expected to see and increase in the penetration from the
current 10 percent-15 percent to almost 50 percent at a CAGR of 24 percent. At
an institutional level, insurance penetration is likely to continue to increase from 5
percent to 15 percent to 20 percent. In tertiary care this is almost as high as 40
percent-55 percent with the inclusion of employer paid coverage.
TREND OF APOLLO HEALTH CARE BUSINESS:
The demographic transition
• Improvements in health (with
consequent in-creases in life
expectancy) and declining
fertility in all the DMCs mean
that the proportion of elderly
will rapidly increase in the
coming years. The
proportion of the population
that is over 60 years old will
increase from 7.5 percent in
1990 to almost 12 percent in
2020, and the absolute
number will increase from
200 million to 455 million.
This rapid increase has
important implications for the
health policies of the Bank
and its DMCs. Much of the
disease burden among the
elderly results from chronic,
no communicable diseases
that are difficult and
expensive to treat..
50
TREND OF APOLLO HEALTH CARE BUSINESS:
Urbanization
•Over the next three
decades, the urban
population of the region is
expected to increase
dramatically from 1.2 billion
in 1995 to 2.5 billion in 2025
and more than 400 million
will reside in cities of 10
million or more. Available
data from household surveys
indicate that, on average,
urban populations enjoy
better health status than
those in rural areas.
•Technological
the
exciting
on
tremendous
the
improve
populations
one
successes
developing
last 20
advent
and maternal
In the
measles
coverage
84
resulting
lives
year.
Technological
Technological advances in
last few years and
exciting new developments
the horizon provide
tremendous opportunities for
DMCs to significantly
improve the health of their
populations. For example,
of the outstanding
successes in public health in
developing countries in the
20 years has been the
advent of widespread child
maternal immunization.
the region as a whole,
measles immunization
coverage in 1995 reached
percent of children,
resulting in almost 500,000
being saved every
51
Business Opportunity in future
Apollo health care opportunity in future includes:
THE OUTSIZED OPPORTUNITY IN HEALTHCARE
The healthcare sector is estimated to be $ 65 billion, reaching $100 billion by 2015
It is growing at around 20 per cent a year
Outpatient treatment accounts for around 74 per cent of private out-of-pocket
expenditures. Over 50 per cent of outpatient spend is on acute infectious disease.
Medicines account for 72 per cent of the total private out-of-pocket expenditures.
Healthcare majors such as Max Helathcare and Manipal Group have targeted the
primary care industry as well as diagnostics. Now, Apollo joins the pack
APOLLO'S PLAN
Over the next 3 years Apollo plans to set up 200 clinics with an investment of
around Rs 300 crore.
The investment will be made by Apollo Health and Lifestyle, a 100 % subsidiary of
Apollo
The initiative will target the middle and upper class segments. Clinics will be set up
in neighborhoods, malls and SEZs
All clinics will cater to primary health care, while fielding specialty doctors like ENT,
gynecologist and others.
Upto 20 doctors can be consulted in a given clinic
Apollo is looking at at least 10 % of its revenues from these clinics in 5 years
52
And also establishment of Gynecologist Apollo healthcare have many opportunities that
is define as under:
Business
Service provider:
Primary, secondary & tertiary care
Services:
Hospital management, Agriculture, Healthcare
business
Opportunities
Training & Education:
Doctors, Nurses,
Clinical Researcher
Materials:
Medicines, Disposables, Surgical
products
In Future
Devices:
Medical & Service Equipments
Biotechnology:
R&D, contract manufacturing
53
Study on Infrastructure
Sector
54
STRUCTURE OF INDIAN INFRASTRUCTURE
Today public-private partnership has emerged as a vital tool to build, manage & operate
infrastructure services efficiently. The economic reform initiatives in India have raised
the annual growth rate to 5-6%. This has exerted the pressure on the existing
infrastructure that is already saturated. It is evident that to sustain and accelerate higher
economic growth rate in the county, India needs to build, upgrade and modernize its
infrastructure urgently.
STRUCTURE OF RELIANCE INFRASTRUCTURE
Reliance Infrastructure Ltd
corporate headquarters is situated in
Infrastructure Limited is India’s leading utility
value chain of power business i.e. Generation, Transmission, Distribution, Engineering,
procurement & construction (EPC) and Trading and the largest infrastructure company
by developing projects in all high growth area
Highways, Metro Rails, Airports and Speciality Real Estate.
These are the structure of Reliance Infrastructure
55
STRUCTURE OF RELIANCE INFRASTRUCTURE
Reliance Infrastructure Ltd ., company is headed by Anil Ambani
corporate headquarters is situated in Mumbai. RIL founded in the year 2002.Reliance
Infrastructure Limited is India’s leading utility company having presence in across the
value chain of power business i.e. Generation, Transmission, Distribution, Engineering,
procurement & construction (EPC) and Trading and the largest infrastructure company
by developing projects in all high growth areas in infrastructure sector i.e. Roads,
Highways, Metro Rails, Airports and Speciality Real Estate.
structure of Reliance Infrastructure :
INFRASTRUCTURE
ROADS
METROS
AIRPORTS
CEMENTS
REAL ESTATE & SEZ
STRUCTURE OF RELIANCE INFRASTRUCTURE
Anil Ambani. The company's
. RIL founded in the year 2002.Reliance
company having presence in across the
value chain of power business i.e. Generation, Transmission, Distribution, Engineering,
procurement & construction (EPC) and Trading and the largest infrastructure company
s in infrastructure sector i.e. Roads,
INFRASTRUCTURE
REAL ESTATE & SEZ
FUNCTIONS OF RELIANCE INFRASTRUCTURE
Reliance infrastructure is functioning as follow:
Better Roads for a Developing India
The Indian economy is booming, trade is increasing and the standard of living is going
up. This has resulted in a higher emphasis on our nation’s infrastructure. This is
particularly true for the roads in the country as they remain t
transport for the people.
Traffic on Indian roads has been steadily increasing by 7
to about 25%-30% of national and state highways being heavily congested with truck
speeds of around 25-40 km/hr.
Therefore, with an objective of achieving the world class road infrastructure in the
country, the Government has successfully ensured the participation of private sector in
road development. It is expected that the share of private investments shall go up from
5% in 10th plan to 36% in 11th plan.
Functions
56
FUNCTIONS OF RELIANCE INFRASTRUCTURE
Reliance infrastructure is functioning as follow:
for a Developing India
The Indian economy is booming, trade is increasing and the standard of living is going
up. This has resulted in a higher emphasis on our nation’s infrastructure. This is
particularly true for the roads in the country as they remain the most common mode of
Traffic on Indian roads has been steadily increasing by 7-10% per annum. This has led
30% of national and state highways being heavily congested with truck
40 km/hr.
re, with an objective of achieving the world class road infrastructure in the
country, the Government has successfully ensured the participation of private sector in
road development. It is expected that the share of private investments shall go up from
in 10th plan to 36% in 11th plan.
Build better roads for a developing india
Expanding metro coverage for urban area
Airport - flying high
To be a leader in cement manufacturing
Real estate development for a new india
FUNCTIONS OF RELIANCE INFRASTRUCTURE
The Indian economy is booming, trade is increasing and the standard of living is going
up. This has resulted in a higher emphasis on our nation’s infrastructure. This is
he most common mode of
10% per annum. This has led
30% of national and state highways being heavily congested with truck
re, with an objective of achieving the world class road infrastructure in the
country, the Government has successfully ensured the participation of private sector in
road development. It is expected that the share of private investments shall go up from
Build better roads for a developing india
Expanding metro coverage for urban area
To be a leader in cement manufacturing
Real estate development for a new india
57
Expanding Metro Coverage for Urban India
The urgency to meet the ever-increasing transportation demands of urban population is
of paramount importance. People today demand transport that is fast, safe and easily
accessible. That is why we, at RInfra, have taken up the responsibility for three metro
rail projects on BOT basis in Mumbai and Delhi with project cost over Rs.160 billion.
Airport - Flying High
Reliance Airport Developers Private Limited (RADPL)Our contribution to the nation’s
rapidly developing infrastructure now extends to the aviation sector. A subsidiary of
Reliance Infrastructure Limited, RADPL was incorporated in 2004 to develop and
operate airports and fuel our growth in the aviation sector.
The company steers the management, implementation and operation of all our aviation
sector projects.
Cement Industry – be a leader in cement manufactur ing
Reliance Infrastructure enters into Cement manufacturing through its subsidiary,
Reliance Cement Company Private Limited. (RCCPL) and hence marks the foray of
Reliance Group in Cement Business. Set up in 2007, Reliance Cement Company
Private Limited aspires to be a leader in the domain of cement manufacturin g and
be a part of the Indian Infrastructure development story.
In the long run, Reliance Cement Company Private Limited aims to carve a niche for
itself in the Cement market by establishing a capacity of 50 MTPA (Million tons per
annum) through organic and inorganic growth. The first two projects from the house of
Reliance Cement Company Private Limited will be located at Maihar, Madhya Pradesh
and Mukutban, Maharashtra. Pegged at 5 MTPA each, these two plants will set the
foundation for the upcoming projects thereon. However, a grinding unit at Butibori,
58
Maharashtra will be the first operational unit from this stable with an initial capacity of
0.6 MTPA.
Real Estate Development for a New India
The real estate sector is second only to agriculture in terms of employment generation
and is a major contributor in the gross domestic product (GDP). According to industry
players, housing accounts for 4.5% of gross domestic product (GDP) with urban
housing accounting for 3.13%. Moreover, the real estate sector is also responsible for
the development of over 250 ancillary industries such as cement, steel, paints, etc.
59
BUSINESS ACTIVITIES OF R-INFRA
RInfra has a significant presence in the construction of roads, metros, airports and real
estate. Infrastructure is decidedly the most visible and important form of development in
a nation.
ROADS
At present, RInfra has eleven projects with a total length of 968 kms, costing around
Rs.11700 crores. Out of them, NK Toll and DS Toll Road projects; both on National
highways (NH) 7 are completed and are commercially in operation from Sep 09. NHAI is
coming out with 10 Mega Highway Projects and major 6 laning projects for an increased
utilization of India’s road potential. Taking advantage of this opportunity, RInfra is
targeting to build road business up to Rs 20000 crores by end of this financial year. This
showcases the initiatives that RInfra is adopting proactively to build roads that are an
amalgamation of corridors to propel India’s growth and development.
Particulars No. of Projects
Project under operation 2 projects
Project under execution 4 projects
Projects awarded 5 projects
TOTAL 11 PROJECTS
60
METROS
Mumbai Metro Projects
Aiming for fast transport by significantly reducing travelling time for ever moving
Mumbai, we ventured into two major projects. Just look at the details provided as
follows:
Mumbai Metro Line I- Versova-Andheri-Ghatkopar Corr idor
Awarded by Mumbai Metropolitan Region Development Authority (MMRDA), Versova-
Andheri-Ghatkopar Corridor Mass Rapid Transit System (MRTS) project (Mumbai Metro
Line I) forms our first project. It was awarded to RInfra led consortium through a global
competitive bidding process on Public-Private-Partnership (PPP) framework.
Mumbai Metro Line II-- Charkop-Bandra-Mankhurd Corr idor.
Awarded by Mumbai Metropolitan Region Development Authority (MMRDA), Charkop-
Bandra-Mankhurd Corridor Mass Rapid Transit System (MRTS) project (Mumbai Metro
Line II) forms our second project. It was awarded through a global competitive bidding
process on Public-Private-Partnership (PPP) framework to RInfra led consortium.
61
Delhi Metro Projects
Providing faster, safer and convenient transportation has also been extended to the
National Capital. Look at following and find what has been done by RInfra for
commuters:
Airport Express Metro Link, Delhi
Delhi Metro Rail Corporation (DMRC) awarded this project to a consortium of RInfra
(95%) and CAF, Spain (5%) through a global competitive bidding process on Public-
Private-Partnership (PPP) framework. A special purpose vehicle, namely, Delhi Airport
Metro Express Private Limited (DAMEPL) has been incorporated to set up the
project.
AIRPORT
RADPL operates five airports in Maharashtra, viz. Nanded, Latur, Baramati, Yavatmal
and Osmanabad, and is currently planning for a greenfield airport in Madhya Pradesh.
The operational airports in Maharashtra have the following aeronautical features:
62
Airport Runw
ay
length
M (ft)
Operatin
g aircraft
Advantages/facilitates
Nanded 2300(
7546)
ATR-72,
Airbus A-
320,
Boeing
B-737
• Licensed Aerodrome for Public Use.
• Night Landing Facilities, DVOR/DME, PAPI.
• ATC
• Meteorological Facilities
• Runway Lighting
• Lounge and Conferencing, Snooze Cabins etc.
Latur 2300
(7546)
ATR-72 ATC, PAPI, Aerodrome Beacon, Snooze Cabins.
Baramati 2350
(7710)
Business
Jets
Near to Pune and Mumbai.
Yavatmal 1190
(3904)
Business
Jets
Near to Nagpur.
Osmanab
ad
1218
(3996)
Business
Jets
-
CEMENT
63
Cement production being an energy intensive activity, relies heavily on energy
resources like coal and power along with raw materials, logistics, and plant
infrastructure. The synergy of these factors combined with quality of our product will
help drive the business to the levels aspired for.
Our Project
I. Region- Central India
• State- Madhya Pradesh
• Integrated Unit at Maihar; Blending Unit at Gondavali and a Grinding unit at
Kundanganj
• Total Capacity- 5.08 MTPA
II. Region- Western India
• State- Maharashtra
• Integrated Unit at Yavatmal and two Grinding units, one at Butibori and another
located in North Western Maharashtra
• Total Capacity- 5.08 MTPA
REAL ESTATE & SEZ
64
Contributing to the nation’s prosperity S
Project in Hyderabad
RInfra has been awarded the Hyderabad Trade Tower and Business District Project by
Andhra Pradesh Industrial Investment Corporation (APIIC) through competitive bidding.
The project entails development of a 100-storied tower along with other commercial
developments on a 76 acre plot in western Hyderabad on the upcoming outer ring road.
Project in Navi Mumbai
We are also developing a 45 acre IT special economic zone, through a subsidiary as a
part of its Dhirubhai Ambani Knowledge City campus at Navi Mumbai. The development
would have around 4 million sq.feet of office space along with a 4 star hotel. Various
permissions from MIDC as well as the final SEZ approval from the Ministry of
Commerce of GOI have been obtained.
65
POSITION OF GUJARAT INFRASTRUCTURE Gujarat infrastructure is mainly based on the state's industrial sector with 1/5th of India's
industrial output coming from Gujarat. Bordered by Pakistan, Rajasthan, Madhya
Pradesh, and Maharashtra, and the Arabian Sea, Gujarat infrastructure has led to the
state becoming one of the most affluent and advanced states of India.
Gujarat has always led from the front as far as infrastructural advancement is
concerned. From a gross state domestic product (GSDP) of INR 74,270 million in 1980,
the GSDP of Gujarat grew to an impressive INR 700,000 million in 2000. Gujarat's GDP
is now growing at a rate of around 12% each year. The per capita GDP of Gujarat is
more than thrice the all-India average. With a population of around 5 crore, the per
capita income of Gujarat hovers around the INR 18500 mark. If Gujarat was considered
a country, it is likely to be the 67th most prosperous nation in the world, ranked above
China!
Gujarat was among the first states in India to invite private sector investment in
infrastructure. Gujarat is well connected by about 74,000 km of roads, 11 airports, and
the well-planned Indian Railways network. There are as many as 41 ports in Gujarat
along its 1600 km coastline.Gujarat infrastructure derive most of its robustness from
Gujarat industry. Not only does Gujarat produce 1/5th of India's industrial production, it
is also responsible for producing 35% of India's pharmaceutical products, 24% of its
textiles, 22% of India's exports, and 9% of India's minerals.
Gujarat is home to some of the world's most extensive business empires. Alang, in
66
Gujarat is home to the world's largest ship breaking yard and Jamnagar oil refinery
owned by Reliance Petroleum Ltd., is the largest “grass-root refinery” of the world. Salt,
cement, ceramics, gems, jewelry, and petrochemicals are some of the other prominent
industries of Gujarat.
Gujarat holds only 6% of India's geographical area and 5% of its population, but
accounts for more than 16% of India's investments and around 30% of stock market
capitalization. Projects worth INR 34,000 crore have been planned and are being
implemented in Gujarat. Significant investment opportunities exist in the following
sectors in Gujarat:
• Biotechnology
• Bio-informatics
• Agricultural Export Zones (AEZs)
• Industrial biotechnology
The Gujarat government also plans to build 271 check dams in around 20 rivers of
Gujarat under Narmada-based plans. The Kalapasar Project undertaken by the Gujarat
government aims at connecting Kathiawad and Gujarat better, enhance transport
facilities, initiate land reforms, and provide water for irrigation.
67
POSITION OF INDIAN INFRASTRUCTURE India infrastructure is quite developed and the transportation network of the country
contributes towards the economic development of the country. The transportation
network of India consists of roadways transport, railways, shoreline shipping, and
airways transport etc. The transportation system of the nation is well-set and efficiently
managed and is a key player in maintaining the financial development of the country.
The overall span of roadways in the country is more than 44 lakh km and these
roadways comprise both unmetalled and metalled roads.
India houses one of the most extensive roadway transportation networks in the globe.
The National Highways in the country represent below 2% of the overall roadways
transportation network of the country. Nevertheless, these highways in India facilitate in
40% of the carriage of commodities and transportation of commuters in the country.
The span of the railways network in the country is approximately 64,015 km or 39,777
miles. Electrification has been carried out to approximately 13,000 km. The railways in
India transport more than 11 million commuters and 11 Lakh tonnes of freight on a daily
basis.
The shoreline of India is quite extensive. Approximately 90% of the business activities
on sea are managed by the important harbors in India like Mumbai, Kandla, Marmagao,
68
Nhava Sheva, Tuticorin, Cochin, Vishakapatnam (Vizag), Chennai, Haldia, Paradwip,
Ennore, New Mangalore, and Kolkata.
The quickest mode to travel to any corner of the world is air travel. Domestic flights are
offered by the private carriers and Indian Airlines. At the same time, the international
flights are offered by Air India. The four major airports in India are Kolkata, Chennai,
Delhi, and Mumbai.
India initiated an ambitious reform programme, involving a
shift from a controlled to an open market economy showing
signs of overheating because of basic infrastructure
constraints, both physical and human. So far, the bulk of
infrastructure was in the public sector. Public sector in India
operating in a protected set up has been largely subsidised
by the Government.
Since the launching of reform, Government is trying to reduce its borrowing which
means that further subsidization will not be possible. There is one area where there is a
need for private sector and foreign investment to come in. Because of the long gestation
period, and many social implications, the infrastructure sector compares unfavorably
with manufacturing and many other sectors.
For this, specific policies in this area are need to make infrastructure attractive. Clearly,
there is a wide gap between the potential demand for infrastructure for high growth and
the available supply. This is the challenge placed before the economy, i.e. before the
public and private sector and foreign investors. This can also be seen as an opportunity
for a widening market and enhanced production.
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Importance of infrastructure on Indian economy
In face of the global financial crisis and the economic downturn, infrastructure sector
plays an important role to counter balance against slowing economic activity and lower
consumption. In India the infrastructure sector currently accounts for 26.7% of India’s
industrial output and thus remains a useful tool to balance the economy. Moreover
infrastructure is the lifeline of any business activity, proper infrastructure increases
business activity manifold.
In India, out of the proposed 31,755 km by the National Highways Development
Programme, completion achieved is just 28 percent or 9,165 km, even if this project is
to be completed by 2012, there will be huge opportunity for companies engaged in
highway building sector.
According to Assocham-Ernst & Young - Infrastructure, including roads, power,
highways, airports, ports and railways, have emerged as an asset class with long-term
growth that can provide relatively stable returns to investors.
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In terms of investment attractiveness in the future, the joint study has ranked power as
the most sought after segment among respondents for investment in the future (83%),
followed by roads and highways (72%), ports and logistics (66%), rail (45%), airports
(43%) and shipping (35%).
An interesting segment identified as offering a strong growth potential was urban
infrastructure, especially areas such as water management, waste-water management,
sewerage system and solid waste management.
The survey conclude that if government can overcome regulatory procedures, delays in
project implementation and several unplanned cost escalation create then Infrastructure
industry as a whole has a great potential in India.
71
POSITION OF YEMEN INFRASTRUCTURE Yemen's well established infrastructure gives investors the tools necessary for growth
and development. Highlights include its 71 thousand plus kilometers of paved and
unpaved roads through the nation and to bordering countries.
It is connected by 8 international airports feeding 17 airlines that, together, span the
globe, and has developed a thriving telecommunications network that offers high speed
internet, mobile telephone services and competitive prices. Electricity fees in Yemen
range from as low as USD 0.02$ per KW/h and the country’s large ports, perhaps its
72
greatest asset, are equipped to handle 20 thousand plus vessels and vast cargo needs
annually.
Road Transport:
• 71,300 km of roads, including 6,200 km paved roads
• In the north, highways connect Sanaa, Taizz, and Hodeidah. In the south, a
major road connects Aden with Taizz. The second major freeway connects
Sana’a with Saudi Arabia and Oman.
• With aid from the World Bank and the government's commitment, Yemen's rural
roads network - historically difficult to maneuver - are currently providing all-
weather paved roads to 25% of the population. This is set to increase to 45% by
2014.
• Plans are well advanced to build an estimated US$1.6 billion highway linking
Aden in the south and Amran in the north. The road will include more than 10
tunnels and halve the travel time between the southern seacoast and the
northern border with Saudi Arabia.
Air Transport
• Yemen has six international airports which are located in Aden, Hodeidah,
Sana'a, Ghaida, Sayoun, and Ta'izz. Sana'a International Airport (SIA) –
Yemen’s largest international airport - is roughly 13 kilometers north of the city.
Aden International Airport is the second biggest airport in the country. Moreover,
there are 44 feeder airports in Yemen.
• Yemen is served by 13 major international airlines (Air Arabia, Egypt Air,
Emirates, Ethiopian Air, Gulf Air, Kuwait Airways, Lufthansa, Qatar Airways,
Royal Jordanian, Saudi Arabian, Syrian Air, Turkish Airlines and Yemenia)
whose combined routes span the globe. Locally tourists and travelers can
choose from one of two national airlines: Yemenia and Felix Airways.
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Maritime Transport:
• Yemen is geographically situated at the junction of principal maritime routes
linking Asia, Africa and Europe. With a strategic location on Bab-al-Mandab, the
strait linking the Red Sea and the Gulf of Aden, it has become one of the world’s
most active shipping lanes worldwide.
• Served by two deepwater ports – the Port of Aden and the Port of Hodeidah –
and 4 separate smaller seaports, Yemen now handles 3.4% of total ship calls in
the Middle East and North Africa regions.
• There are about 18,000 vessels annually passing through the territorial waters of
Yemen with the total cargo volume of 560 million tones.
Port of Aden:
• Cost Reduction as an International Hub: The Port of Aden’s direct location on
the main shipping route provides huge cost reduction advantage for container
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companies, justifying Maersk’s use of the port as its main hub for its East African
and Middle Eastern operations. The Port’s 1500 to 2,000 yearly calls, nine days
steaming from Europe and seven from Singapore, and record 500K+ TEUs of
containers handled in 2007 identifies it as an ideal player in the mainstream
shipping network from the Asia-Europe trunk route to minor routes in the Middle
East and Africa.
• Readily Available Facilities: The largest seaport in Yemen, it holds 5000
hectares of sheltered warehousing facilities with room for expansion. The harbor
canal has a width of 185 meters and is planned for easy accessibility. The Port is
a major transshipping base for the Gulf region, Indian Ocean region and Africa –
and is capable of handling containers and bulk/general cargos.
Approximate Distance from Aden to Major Asian & European Ports:
Amsterdam (16 days 7 hours) 4690 miles (12147)km
Colombo (7 days 7 hours) 2100 miles (5439)km
Mumbai (6 days 7 hours) 1660 miles (4299) km
Singapore (12 days 14 hours) 3630 miles (9401)km
London (16 days 1 hours) 4630 miles (11991 )km
Port of Hodeidah:
• Located on the western coast only 150 km away from Sana’a it is the second
largest port in Yemen after Aden and the principal Red Sea exporting port for
cargo originating from the country. It is also the main import entrance port to
Yemen.
• Hodeidah Port remains Yemen’s largest dry cargo handling port accounting for
some 50% of the nationally imported goods.
• Some 4 km from the centre of Hodeidah the port is situated at the end of a 20 km
long access channel with a draught limited to 9.7 m. It has an extensive site area
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of which some 300ha are bonded and further 300ha are assigned and protected
for use as an associated Industrial Area.
• The port consists of 8 berths able to accommodate vessels up to a maximum
draft of 9.75 m and an LOA of 200 m and provides 11 sheds totaling 21000 m2, 1
million m2 open storage and 300,000 m2 for the container terminal. There are
also nine dock yards and 10 paved dust areas for use.
There are also several other ports open to receive foreign vessels:
• Port of Saleef : situated within Kamaran Bay 50 km west of Hodeidah towards
the Saudi Arabian border. This port is a natural deep-water port accepting
vessels up to 16 mts draft. The port has a single general cargo berth of 400 m
and is primarily designed for the reception of bulk grain vessels discharging into
silos situated within the port.
• Port of Mokha - situated to the south east of Hodeidah almost equidistant
between Hodeidah and Aden. This 175m long 35m wide port consists of one
pier and allows for vessels to berth on either side.
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COMPARATIVE POSITION OF INFRASTRUCTURE
POSITION OF
GUJARAT
INFRASTRUCTURE
POSITION OF
INDIAN
INFRASTRUCTURE
POSITION OF
YEMEN
INFRASTRUCTURE
Infrastructure position is
quite developed.
Infrastructure position is
quite developed.
Infrastructure is relatively
poor and underdeveloped
Infrastructure industry as a
whole has a great potential
in gujarat.
Infrastructure industry as a
whole has a great potential
in India.
infrastructure gives
investors the tools
necessary for growth and
development.
The Gujarat Infrastructure
Development Board (GIDB)
plans to take up 380
infrastructure projects in the
state in the next 10 years
involving a total capital
investment of Rs 116,993
crore.
The recent success with
the road sector, port sector
must be extrapolated to
other infrastructure sectors
in order to materialize its
objective of attaining self-
sustained growth.
Yemen Infrastructure
spending to grow 33% by
2013.
There are 12 airports in
gujarat.
There are 188 airports in
india.
There are 19 airports in
yemen.
There is planned and being
establish metros rail in
gujarat.
There is planned and being
establish metros rail in
india.
There is no existance of
metro rail in yemen.
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POTENTIAL FOR EXPORT IN INDIAN MARKET
India is the second largest destination for Yemen’s exports and the eighth principal
source for its imports. The bilateral trade during FY 2010-2011 was put at US$ 2.25
billion, which included Yemen’s exports to India valued at US$ 1.74 billion and Yemen’s
imports from India totalling US$ 514.37 million
Over the past four years, the Indian Economy consistently recorded growth rates in
excess of 8.5% per annum resulting in rapidly increasing infrastructure spending.
Total infrastructure spending is expected to increase from US$ 24 billion in 2005 to US$
47 billion in 2011. Total investment requirement in the infrastructure sector over the next
five years is US$ 445 billion.
It is estimated that the Infrastructure Sector needs to grow at a CAGR of 15% over the
next five years to support the growing requirements of virtually every other sector of the
Indian Economy.
With the objective of stimulating and mobilizing increased private sector investments,
either from domestic sources or foreign avenues, the government has offered various
incentives.
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Yemen's infrastructure is relatively poor and underdeveloped. The country is serviced
by a network of over 67,000 kilometers (41,634 miles) of primary and secondary roads,
only 7,700 kilometers (4,785 miles) of which are paved.
Yemen has 5 major airports;
Potential For Exporting Airport Infrastructure Serv ices
Yemenia airline is the country's official airline and is largely protected against foreign
competition. The carrier is slated for privatization, but the government has been
reluctant to sell its 51percent share in the airline. In a recent days the main airport of
Sanaa
Aden
RayyanTaiz
Hodeida
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yemen that is SANAA was damaged by the fire so due to that yemen suspended all
flights of sanna airport.
So, the current position of the YEMEN SANAA AIRPORT is very bad and it should be
reopen. So for the reliance infrastructure has the potential chance to do the airport
projects with the yemen.
Potential For Exporting Metros Infrastructure Servi ces
Reliance infrastructure limited is also establishing the METROS INFRASTRUCTURE in
yemen because yemen has a very poor infrastructure and also there is no existence of
metros infrastructure in the yemne. By doing the metro project in to the yemen , india
can get the very high global reach in to the global market.
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Study on
Pharmaceutical
Sector
81
Pharmaceutical Industry in India
It has been seen that the Indian Pharmaceutical Industry has improved its infrastructure,
creations that are based on technologies, and various other spheres of developments
which has resulted in a huge amount of production in the Indian Pharmaceutical
Industry. Even when the Indian Pharmaceutical industry was on its way to restructure
itself , it still continued to flourish at a good rate in the World Pharmaceutical Industry
and also getting itself fit with the new world of Pharmaceuticals.
The Indian Pharmaceutical Industry at present produces a huge amount of drug which
includes all types of medicines needed for different streams. This was made successful
because of the availability of very skilled technical and scientific manpower and also
because of the development done in this field of industry.
It has been observed that the gross production of drugs in India has crossed an amount
of 26, 280 million rupees. The growth rate that has been seen is more than a staggering
20 percent for formulated drugs and around 15 percent for bulk drugs.
If the export of drugs is to be seen then Indian Pharmaceutical industry has done a fair
job in that field as well. A special Pharmaceutical cell has been developed which would
only look after the pharmaceutical matters and another duty of the cell is to collect data
which in the long run would help to increase the production level as well as improving
strategies of import export in the future.
The cell also looks after the quality of the drugs and also the global needs so that
companies can make that type of medicines and export them to the concerned
countries.
There are some particular reasons why the production has touched new heights:
� Indian Pharmaceutical Industry has reached a point which not only fulfills the
demand within the country but also a surplus is generated for export purpose.
� The low production cost has also helped the Indian Cause.
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� A very low R&D cost has also proved helpful.
� Indian Pharmaceutical Industry has scientific power which is innovative in nature
and has helped a lot.
� National Laboratories have also helped the cause by inventing various
medicines.
Top 10 Publicly Listed Pharmaceutical Companies in India, as of 2010
Rank Company Revenue 2011 (USD millions)
1 Cipla 1348.51
2 Ranbaxy 1327.56
3 Dr. Reddy's Laboratories 1178
4 Lupin Ltd 929.84
5 Aurobindo Pharma 865.19
6 Dabur 700.3
7 Sun Pharmaceutical 673.99
8 Cadila Healthcare 629.45
9 Jubilant Lifesciences 561.03
10 Piramal Healthcare 480.26
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The Pharmaceutical industry in India is the world's third-largest in terms of volume and
stands 14th in terms of value. According to Department of Pharmaceuticals, Ministry of
Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between
2008 and September 2009 was US$21.04 billion. While the domestic market was worth
US$12.26 billion. Sale of all types of medicines in the country is expected to reach
around US$19.22 billion by 2012. Exports of pharmaceuticals products from India
increased from US$6.23 billion in 2006-07 to US$8.7 billion in 2008-09 a combined
annual growth rate of 21.25% According to PricewaterhouseCoopers (PWC) in 2010,
India joined among the league of top 10 global pharmaceuticals markets in terms of
sales by 2020 with value reaching US$50 billion.
The government started to encourage the growth of drug manufacturing by Indian
companies in the early 1960s, and with the Patents Act in 1970. However, economic
liberalization in 90s by the former Prime Minister P.V. Narasimha Rao and the then
Finance Minister, Dr. Manmohan Singh enabled the industry to become what it is today.
This patent act removed composition patents from food and drugs, and though it kept
process patents, these were shortened to a period of five to seven years.
The lack of patent protection made the Indian market undesirable to the multinational
companies that had dominated the market, and while they streamed out. Indian
companies carved a niche in both the Indian and world markets with their expertise in
reverse-engineering new processes for manufacturing drugs at low costs. Although
some of the larger companies have taken baby steps towards drug innovation, the
industry as a whole has been following this business model until the present.
India's biopharmaceutical industry clocked a 17 percent growth with revenues of Rs.137
billion ($3 billion) in the 2009-10 financial year over the previous fiscal. Bio-pharma was
the biggest contributor generating 60 percent of the industry's growth at Rs.8,829 crore,
followed by bio-services at Rs.2,639 crore and bio-agri at Rs.1,936 crore.
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Pharmaceutical Industry In Yemen
The pharmaceutical industry in Yemen has seen noticeable developments in the last
few decades as medicine manufactures have increased their competition.
In January 2003 a group of companies established the Yemeni Medicine Producers
Union (YMPU) to ensure safety standards in medicinal products and promote the
pharmaceutical industry.
According to the National Strategy of Medicine Safety booklet, the YMPU now acts to
meet the goals of the Medicine Safety Strategy, to manufacture medicines to mainly
meet the local demand, and to cooperate and coordinate with other manufacturers in
the pharmaceutical industry in Yemen.
The YMPU aims to bring the national pharmaceutical industry in line with international
medicinal standards and provide Yemeni medicine producers with pharmaceutical
industry information and valuable expert experience.
According to the strategy, pharmaceutical industries have to meet WHO and GMP
(Global Medicine Producers) international standards. These include factory
environment specifications covering walls, floors, location, space, and air barriers to
ensure the highest standards of manufacturing and controlling processes and to prevent
cross-contamination between different sections, in addition to assistant systems such as
the HAVC system and water purification system.
Pharmaceutical manufacturers are also obliged to perform chemical and physical
analysis and microbiological quality control examinations according to the international
pharmacopeias. Staff are required to be highly qualified and equipment to meet the very
latest specifications.
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Analysis instruments and factory administration are obliged to constantly improve and
develop. Union members are expected to share their experience through continuous
training and updating. The union set a number of goals for its joint work with the
ministry, involving the manufacturing of medicine to combat diseases in the country, and
marketing Yemeni pharmaceutical products abroad to support the national economy.
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COMPARATIVE POSITION OF PHARMACEUTICAL INDUSTRY OF
INDIA AND YEMEN
� The Indian Pharmaceutical Industry at present produces a huge amount of drug which includes all types of medicines needed for different streams.
� While Yemen Pharmaceutical Industry is poor to produce all types of medicines.
� The Indian Pharmaceutical Industry exports the pharmaceutical products. � While Yemen Pharmaceutical Industry import pharmaceutical products
� The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value
� While Yemen Pharmaceutical Industry is insufficient to meet the requirement of their country.
� In Indian pharmaceutical company more focus on manufacturing and development of the product.
� While Yemen pharmaceutical company more focus on trading of pharmaceutical product
87
An Introduction To Ranbaxy Laboratories Ltd. In Ind ia
Ranbaxy Laboratories Ltd. is one of the leading pharmaceutical Companies in India
commanding a market share of around 5%. The Company has clocked sales of USD
293 Mn in 2009 in India. Growing ahead of the market, the Company has enhanced its
competitive position in the domestic market through its focused approach. The
Company’s business has been realigned to its customer groups and investments have
been made in high growth segments. These efforts have resulted in strengthening its
Chronic franchise (Life Style led) as well as has reinforced its leading position in the
Acute segment.
Ranbaxy Laboratories Ltd. is a strong player in the Novel Drug Delivery System (NDDS)
segment. Its product portfolio spans across Acute & Chronic Business covering Anti-
infectives, Nutritionals, Gastro-intestinals, Pain Management (Acute) Cardiovasculars,
Dermatologicals, Central Nervous Systems (Chronic) segments.
Company’s India operations are a dominant force in a number of participating
therapeutic segments, for example Anti-infectives, Statins, Dermatology and Pain
Management. A publicly listed company, Ranbaxy Laboratories Ltd. India is also a
member of IPA (Indian Pharmaceutical Alliance) & OPPI (Organization of
Pharmaceutical Producers of India).
As one of the top pharmaceuticals in India and worldwide, Ranbaxy Laboratories Ltd.
Laboratories Limited has its products sold in over 100 countries and manufactured in
seven countries. The company has a strong global presence with over 78% of its sales
from overseas markets. They produce a widearray of quality, generic products that are
preferred by health professionals and patients worldwide While Ranbaxy Laboratories
Ltd.’s strength lies in quality generics, it is slowly moving toward New Chemical Entities
88
(NCE) and Novel Drug Delivery Systems (NDDS) in supporting its long-term growth
focus.
The company aspires to break into new markets as a research-based pharmaceutical
entity. It has actively pursued strategic alliances and acquisitions to develop areas of
expertise and gain access to advanced technologies. The Company's major research
focus lays in Urology, Anti-infectives, Respiratory, Anti-inflammatory and Metabolic
disorders segments. Ranbaxy Laboratories Ltd.’s vision is to achieve significant
business in proprietary prescription products by 2012 with a strong presence in
developed markets.
89
Ranbaxy Laboratories Limited
Ranbaxy Laboratories Ltd.’s manufacturing strengths have established it as a producer
of world-class generics, branded generics and a major supplier of its range of Active
Pharmaceutical Ingredients. Its overseas facilities are designed to cater to the needs of
the local regulatory bodies of that country while the Indian facilities meet the
requirements of all International Regulatory Agencies.
Ranbaxy Laboratories Ltd. is now the 7th fastest growing pharmaceutical company in
the world.7 It has pursued strategic alliances, leveraged its core competencies in
finances, distribution network and quality processes to become one of the world leaders
in the pharmaceutical market place. The company is growing rapidly and expanding
into markets globally while Investing in R&D to form its image of are search-based
international pharmaceutical Company.
90
STRUCTURE, FUNCTIONS AND BUSINESS ACTIVITIES OF RANBAXY LABORATORIES LTD.
Ranbaxy Laboratories Limited's New Board of Directors
Title Name Current Position Chairman, CEO,
Managing Director Malvinder Mohan Singh
Chief Executive Officer & Managing Director Ranbaxy Laboratories Ltd. Laboratories Limited
COO Atul Sobti Chief Operating Officer, Ranbaxy Laboratories Ltd. Laboratories Limited
Director Takashi Shoda President & Chief Executive Officer, Daiichi Sankyo Co., Ltd.
Director Tsutomu Une
Member of the Board, Senior Member of the Board, Senior Executive Officer Daiichi Sankyo Co., Ltd.
Director Sunil Godhwani Chief Executive Officer & Managing Director Religare Enterprises Limited
Director Anthony H Wild General Partner, BOWS Pharmaceuticals AG
Director Rajesh V Shah Co-Chairman & Managing Director, Mukand Ltd.
Director Akihiro Watanabe Representative Director, GCA Savvian Group
Director Balinder Singh Advocate
91
Business Model
Today, Ranbaxy Laboratories Ltd. has established brands in all leading countries and
ranks in the top ten in large number of the key markets. The Company has a distinction
of being one of the most dependable and ethical companies in Africa, far ahead of its
nearest generic competitors. African operations today are manned by a team of young,
committed and very capable team of managers who are very enthusiastic about this
success and determined to take it to greater heights in the near future.
GLOBAL REACH
• Developed Markets• North America, EU, Japan
• Emerging Markets• India, Romania, CIS, Africa
PRODUCT PORTFOLIO
• Generics• Branded Generics• Branded • OTC
RESEARCH & DEVELOPMENT• New Chemical Entities• Generics• Complex
THERAPEUTIC WIDTH &DEPTH• Acute• Chronic
BUSINESS MODEL
92
Multipronged Strategy
After years of success, Ranbaxy Laboratories Ltd. has the technological expertise and
strong quality culture to back it up when it entered the laboratory testing business. It has
Warning Letters &
Import Alert on 30 products
from 2 Indian facilities AIP
Further strengthening processes in
Manufacturing
Working with USFDA for an Working with USFDA for an
Realigning Supply Chain
Sourcing opportunities
Engaged in constructive dialogue with
authorities
93
the potential to fully exploit opportunities for growth in the clinical testing areas as it
happens to be the single largest source of clinical laboratory testing in South Asia
offering an extensive range of diagnostic tests. With the backing of four full-fledged
testing facilities in Mumbai, Delhi, Mohali and Bangalore, the company plans to increase
its presence from 215 to over 400 towns with the number of collection centers going up
from the existing 500 to 2,000 across the country.
94
FUNCTION OF RANBAXY LABORATORIES LTD.
Human Resource
A career at Ranbaxy Laboratories Ltd. means an opportunity for ample learning &
growth. It offers avenues to work across the globe along side the finest minds. The
Company offers a challenging assignment, a world class working environment,
professional management, competitive salaries, stock options along with exceptional
rewards. If you have an appetite for challenges, we have an exciting career for you.
Opportunities
The global spread of Ranbaxy Laboratories Ltd. and the blazing growth in business
provides ample opportunities for our employees to build careers in various fields.
Opportunities have never been a constraint for the deserving. We believe in employee
growth that goes beyond vertical movements and change in designations. Potential and
performance are the pillars of career progression at Ranbaxy Laboratories Ltd.. A
robust development process supports this.
Our managers will generally have the opportunity to live and work in different countries;
such international experience will help them better understand our complex business
and grow both personally and professionally.
Salary and Benefits
Salaries and other benefits in Ranbaxy Laboratories Ltd. are comparable with the best
in the industry and one can expect to be rewarded highly if the performance is
consistently outstanding. Group Life Insurance, Medical Insurance and Pension plans
are a few examples of the benefits we provide to our employees and their dependents
with adequate financial protection on long term basis.
95
Stock Ownership
The ownership in business is fundamental to personal progression, we
encourage you to take ownership of your investments. Stock ownership is a part of the
compensation for our managers early in their career at Ranbaxy Laboratories Ltd. you
will see the business results straight in your pay slip.
Work Environment
� Autonomy and entrepreneurship: We believe in providing autonomy to our
employees and let them discover their potential while working for Ranbaxy
Laboratories Ltd.. Individuals are given responsibility quite early in their careers
and their actions impact the business. This has helped in fostering a culture of
entrepreneurship within the organisation that we are extremely proud of.
� Creativity and Innovation: Supporting this entrepreneurial culture is the spirit of
innovation and creativity. You do not need to be part of Research and
Development to bring about innovations. Creativity is promoted in every part of
the organisation. Genuine mistakes are considered as part of learning and
calculated risk taking is encouraged.
� Diversity: Ranbaxy Laboratories Ltd. is an equal opportunity employer and that
gets reflected in the rich and diverse workforce. This diversity provides us the
strength to reach out to the world and touch the lives of millions of people in
different parts of the globe. We value the diversity that exists within our
employees and leverage this to bring about synergy within the organisation.
Ranbaxy Laboratories Ltd. workforce of around 14000 people is represented by
51 nationalities with approximately 26% constituting foreign nationals.
Employee Development
96
Employees represent what a company stands for. The value an organisation produces
is unequivocally linked to collective efforts of its people. We at Ranbaxy Laboratories
Ltd. realize that the growth of the company can be sustained through the continuous
development of people who contribute to the business success. Hence we focus our
attention to harness the innate potential each individual brings to the organisation.
Identifying Potential
While the initial years in the career of a Ranbaxy Laboratories Ltd. manager is used in
developing the professional skills, the focus changes as a person moves to the middle
management level. Here leadership potential becomes critical. We have a robust
process of identifying potential in individuals. Each of our middle level managers goes
through a process that clearly identifies their strengths, development areas and
aspirations for the future. This is supported by a structured process of development,
which includes movement within the organisation.
Building Leaders Across The Organisation
We believe that every individual can be a leader and leadership is not a domain of the
people at the top. Accordingly the Ranbaxy Laboratories Ltd. Leadership Model focuses
on strengthening the leadership qualities across the organisation and quite early in the
individual's career. The Model prepares individuals first to deal with 'the self' and then
with 'others'. As the manager matures, the model facilitates the individual to become a
business leader by understanding and appreciating the multiple facets of business.
Finally managers of Ranbaxy Laboratories Ltd. are prepared to lead and drive change -
an ultimate test of a person's leadership skill In addition, as an employee of Ranbaxy
Laboratories Ltd., you can expect to be trained in the latest developments in your
respective field of functional excellence. Our Strategic Learning Partners support the
development initiatives at Ranbaxy Laboratories Ltd. and are themselves leading
names / institutions in the world of people development.
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BUSINESS ACTIVITY
Introduction - Business Opportunities with Ranbaxy Laboratories Ltd.: Core
Competencies
Ranbaxy Laboratories Ltd. Pharmaceuticals Inc. (RPI) has
already experienced commercial success penetrating the
U.S. health care market, and is looking to enhance growth
and future business opportunities through collaboration
and strategic alliances.
Ranbaxy Laboratories Ltd. Pharmaceuticals Inc. (RPI) is a
product-driven pharmaceutical company with diversified expertise. As a wholly owned
subsidiary of Ranbaxy Laboratories Ltd. Laboratories Limited, India’s largest
pharmaceutical company, RPI offers an advantage of having a global presence with
experience in more than 125 international markets.
The company’s advanced product development and manufacturing capabilities,
combined with a global sales and marketing network, make RPI an attractive business
partner. A key part of RPI’s business strategy is to collaborate with partners with
complementary skills – a mutually beneficial strategy for both parties.
98
API Development and Production
Ranbaxy Laboratories Ltd. can provide Active Pharmaceutical Ingredients (API) for
companies that want to manufacture their own product or brand without incurring the
time and costs associated with developing the API, eliminating this step from the overall
manufacturing process. Key advantages of using Ranbaxy Laboratories Ltd.'s vertically
integrated system are:
� Continuity of supply
� Consistent quality of product
� Competitive costs
� Flexibility and resources to respond to changing market dynamics
Dosage Form Development And Manufacturing
Ranbaxy Laboratories Ltd.'s experience as a global manufacturer makes it an ideal
partner to take on the complex process of solid or liquid dosage form development.
Ranbaxy Laboratories Ltd. continually uses reverse engineering to improve upon its
development and manufacturing processes and enhance yield, with a focus on
achieving greater cost efficiencies.
Contract Manufacturing
To expand product lines with minimum investment, Ranbaxy Laboratories Ltd. provides
turnkey manufacturing services, including API and dosage form development, to allow
companies to focus on marketing and selling the product. This is an efficient way to
diversify product lines and increase profit margins, taking advantage of Ranbaxy
Laboratories Ltd.'s manufacturing capabilities and expertise.
Sales And Marketing
Ranbaxy Laboratories Ltd. has set itself apart in the marketplace through the rapid
expansion of its product line and its willingness to emulate complex drug formulations.
99
RPI's commitment to quickly expanding the breadth and depth of its product line has
been key to its success in the marketplace.
Ranbaxy Laboratories Ltd. has a commercial advantage as many of the high-profit
branded drugs with expiring patents over the next few years are in the categories where
Ranbaxy Laboratories Ltd. has proven expertise - anti-infectives, gastrointestinal,
cardiovascular and analgesics.
RPI has a turnkey marketing group that works with other pharmaceutical companies to
co-market and co-promote a variety of chemicals and products. As a marketing partner,
RPI is able to meet the marketing needs of companies while they themselves focus their
efforts on a drug's development, manufacturing, distribution and sales.
Marketing Strategies
Marketing Strategies is the department focused primarily on developing and executing
strategies for the promotion and distribution of branded, generic and OTC products for
RPI.
One of the key tasks for the department is to identify opportunities in different markets
and distribution channels and pursue those to developing and establish new
relationships in the marketplace. Managed Care and Internet marketing are a couple of
key areas that the department is looking to introduce into its ever-expanding service
offerings.
100
RANBAXY LABORATORIES LTD. IN YEMEN
Indian generics multinational Ranbaxy Laboratories has entered Yemen's
pharmaceutical market through a tie up with Yemen's National Trading Company
(Natco). The deal will see Natco market a number of Ranbaxy's drugs in Yemen.
Ranbaxy is currently seeking approval for several drugs, thought to include anti-
infective, gastro-intestinal and anti-allergy products, with Yemen's Supreme Board for
Drugs & Medical.
With a great presence of attendees. Pharma Co. paid strong attention in bringing a
company like Ranbaxy to Yemen.
The strong efforts of HSA Group materialized with the first introductive symposium in
Sana’a, held at Taj Sheba Hotel. The symposium counted with the presence of Mr.
Nabil Hayel Saeed, the GM of Pharma Mr. Mohammed Abdul Kawi Hayel, the Indian
Ambassador in Sana’a Mr. Ram Ajjarwal, , the Senior Vice President & Regional
Director Asia & CIS Mr. Sanjeev Dani, M.D Head, Medical Affairs Asia Pacific, Middle
East & CIS Dr. Saikiran Leekha, the Head of Ranbaxy Mr. Biju Jacob in charge of
Middle East handling operations of the Gulf countries and other Middle East countries
including Iran, Iraq, Jordan, Lebanon, and Syria. the Ranbaxy's Senior Area Manager
for UAE Pharma business & Yemen Mr. Sanjeev Kapoor among other personalities
related to the world of medicine.
During the ceremony, Mr. Mohammed Abdul Kawi Hayel said that “it was not easy to
have Ranbaxy here today, we had strong negotiations with the head management of
the company to enter Yemen as one of the best promising markets in the region. Most
of the Yemeni community is looking for a company like Ranbaxy with high quality
products and reasonable prices.”
Ranbaxy Laboratories Limited Establshed in 1961, India's largest pharmaceutical
company, is an integrated, research based, international pharmaceutical company,
101
producing a wide range of quality, affordable generic medicines, trusted by healthcare
professionals and patients world wide. The Company is ranked amongst the top ten
global generic companies. Ranbaxy registered sales of 1.6 billion USD in 2007 annual
growth of 20%. Ranbaxy spends 15 percent of the annual turnover towards the
development of brands and they have got an advanced development research with a
development center in Gurba, near Delhi.
The Company with a global footprint in 49 countries, world-class manufacturing facilities
in 11 Countries and a diverse product portfolio is rapidly moving towards global
leadership, riding on its success in the world’s emerging and developed markets.
The Indian ambassador. Mr. Ram Ajjarwal delivered a speech stressing. “Yemen and
India enjoys an excellent relationship over the past decades, historically, politically,
commercially, oil industry, pharmaceutically and today we are celebrating the launch of
Ranbaxy in Yemen, well known for both price and quality, and efficiency.
Mr. Sanjeev Dani, Senior Vice President & Regional Director – Asia & CIS, said that we
are one of the best top ten generic companies with a wide presences globally .Ranbaxy
is among the few pharmaceutical companies in India to have initiated its research
program in the late 70’s, but Mr. Dani stressed that “we do not only manufacture the
products in India, but we have manufacturing plants based in eleven countries world
wide, 80 percent of the business is coming from international operations, and 20
percent are only from India. Also over 12000 employees are working world wide,
comprising 51 Nationalities.”
Ranbaxy invests more than one hundred million dollar in research and development into
the generic inedited and also into the new chemical entity or MC eels. The new drug
research areas at Ranbaxy include anti-infective, anti inflammatory/respiratory,
metabolic diseases, oncology, urology and anti-malaria. Presently the Company has 8-
10 programs comprising one anti-malaria molecule in Phase-II clinical trials. The
Company has two programs in Phase I and the remaining in the pre-clinical stage.
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In terms of its economy, the Company has a balanced mix of revenues from developed
and emerging markets and is well positioned to leverage the growth potential offered by
these markets. For the year 2007, North America, the Company's largest market
contributed sales of US$ 419 Mn, representing 26 percent of total sales followed by
Europe, garnering US$ 365 Mn. The Company’s business in Asia was led by a strong
performance in India that reached sales of US$ 301 Mn with market leadership backed
by its strong brand-building skills.
I am sure that the population in Yemen will definitely benefit from Ranbaxy by providing
quality generic products at affordable prices and I am sure our partners (Pharma) will
support Ranbaxy.
He concluded that with the campaign presentations in the three major cities of Sana’a,
Taiz and Aden to re-publicizes the products of Ranbaxy among Doctors who know well
what Ranbaxy is about, also the large number of attendees is clear evidence of their
curiosity to know more about the latest progress of the company in the medical sector.
Dr. Saikiran Leekha gave a presentation focused on other composes that cut through
geographical boundaries are more important and significant to the impact on the interior
health case set up of the patients.” We believe that access to quality healthcare is a
right, not a privilege. Our Endeavour is to ensure the availability of world class, quality
medicines at affordable prices, across the globe. We are committed to work towards a
healthier & happier world ” said Dr. Leekha.
Global Pharma Companies are experiencing an ever changing landscape ripe with
challenges and opportunities. In this challenging environment Ranbaxy is enhancing its
reach leveraging its competitive advantages to become the top global player.
103
Lately Ranbaxy and Merck & Co., Inc. (Merck) announced by the mid of May that they
have signed a strategic Product Development Agreement for providing a drug discovery
and clinical development collaboration for new products, in the anti-infective field.
Ranbaxy and Merck will work together to develop clinically validated anti-bacterial and
anti-fungal drug candidates. Ranbaxy will carry-out drug discovery and clinical
development through Phase II a clinical trials, with Merck conducting development and
commercialization of drug candidates thereafter. He concluded.
Moves To Develop the Pharmaceutical Industry In Yem en
The pharmaceutical industry in Yemen has seen noticeable developments in the last
few decades as medicine manufactures have increased their competition.
In January 2003 a group of companies established theYemeni Medicine Producers
Union (YMPU) to ensure safety standards in medicinal products and promote the
pharmaceutical industry.
Law of the year 2001 stipulated that a union of medicine producers be established
under the technical supervision of the Ministry of Public Health and Population and legal
supervision of the Ministry of Social Affairs and Labor. Bylaws were also put into effect
to regulate internal fiscal and administrative structures. The union was formed initially by
seven members and is currently headed by Ali Mohammed Al-Kohlani.
According to the National Strategy of Medicine Safety booklet, the YMPU now acts to
meet the goals of the Medicine Safety Strategy, to manufacture medicines to mainly
meet the local demand, and to cooperate and coordinate with other manufacturers in
the pharmaceutical industry in Yemen.
104
The YMPU aims to bring the national pharmaceutical industry in line with international
medicinal standards and provide Yemeni medicine producers with pharmaceutical
industry information and valuable expert experience.
The union supports the Ministry of Public Health and Population by providing research
and studies to advance the pharmaceutical industry and help the ministry improve
health conditions by making urgently needed medicines available at affordable prices.
In its first National Scientific Symposium on fighting counterfeit medicine and smuggling
held in May 2005, the union declared its cooperation with the ministry of public health in
the battle and that studies would be undertaken on how to recognize fake and poor
quality medicines.
Representatives at the symposium of pharmaceutical companies pledged to implement
the National Strategy of Medicine Safety.
According to the strategy, pharmaceutical industries have to meet WHO and GMP
(Global Medicine Producers) international standards. These include factory
environment specifications covering walls, floors, location, space, and air barriers to
ensure the highest standards of manufacturing and controlling processes and to prevent
cross-contamination between different sections, in addition to assistant systems such as
the HAVC system and water purification system.
Pharmaceutical manufacturers are also obliged to perform chemical and physical
analysis and microbiological quality control examinations according to the international
pharmacopeias. Staff are required to be highly qualified and equipment to meet the very
latest specifications. Analysis instruments and factory administration are obliged to
constantly improve and develop. Union members are expected to share their
experience through continuous training and updating.
105
The union set a number of goals for its joint work with the ministry, involving the
manufacturing of medicine to combat diseases in the country, and marketing Yemeni
pharmaceutical products abroad to support the national economy.
The union will regulate importation of basic medical materials and their tariffs, and
create training programs for workers in the pharmaceutical industry.
106
Comparison between Ranbaxy Lab. In India and Yemen
Points of
difference
Ranbaxy Lab. In
India
Ranbaxy Lab. In
Yemen
benefits
Climate Very difference at
every 500km.
Almost same just
change in day and
night temperature.
Low cost for
transportation
,storage and
moving.
Market scope Open market due
to globalization.
No more company
because of
government policy.
Less competition
as compare to
India.
People standard Very large
difference between
middle class, and
lower class.
No more difference
between people
class.
No problems for
price selection
Promotional exp. Very large No need for
promotional exp.
Increase Profit
margin
Transportation Having long sea
area but still using
roads for
transportation
Using sea mail. It
results in to lower
cost of product.
Law operating
cost
Affordable Large difference
between economic
standards
Narrow difference. Increase
purchase power
Background The Indian
pharmaceutical
sector has come a
long way, being
almost non-
existent before
The Gulf cooperation
council (GCC) region
is considered as
“Emerging market” for
pharmaceutical
export and bilateral
Long term
investment can
be done.
107
1970 to a
prominent provider
of healthcare
products, meeting
almost 95 per cent
of the
Country’s
pharmaceuticals
needs.
The Industry today
is in the front rank
of India’s science-
based industries
with wide ranging
Capabilities in the
complex field of
drug manufacture
and technology. It
ranks very high in
the third world, in
terms of
technology, quality
and range of
medicines
manufactured.
trade. The
understanding of the
regulatory
requirements of this
region can be
beneficial for
pharmaceutical
export. The
regulations of Gulf
countries are
encouraging the
import of quality
generic products,
which can be good
news to the Indian
drug manufacturers.
Market cap Tough competition
due to other
healthy pharma
companies.
No tough competition There may be
monopoly
Government
action
Here it is not 100
percent.
The Yemen
Government's
It is supportive
for our growing
108
MNCs in India is
facing the problem
of having a very
high Drugs Price
Control Order
(DPCO) coverage,
weakening their
bottom lines as
well as hindering
their growth
through
the launch of new
products.
decision to allow 100
percent foreign direct
investment into the
drugs and
pharmaceutical
industry is expected
to aid the growth of
contract research in
the country.
companies. And
it s also called
red carpet in
terms of
business
Probable earning More than 85 per
cent of the
formulations
produced in the
country are sold in
the domestic
market. India is
largely self-
sufficient in case of
formulations.
There will be
enormous growth
potential. Factors
listed below
determine the rising
demand for
pharmaceuticals are;
• The growing
population of over of
a billion
• Increasing income
• Demand for quality
healthcare service
• Changing lifestyle
has led to change in
disease patterns, and
increased demand for
new medicines to
Company can
get earliest
ROI{return of
investment}
109
combat lifestyle
related diseases
Vision of Yemen
government
Very effective
decision
The Yemen
pharmaceutical
industry shall ensure
that essential drugs
at affordable prices
are available to the
vast population of this
sub-continent and
also continue for
Providing
employment for
millions.
Good future over
the country
Earning Lower due to tough
competition and
due to new
entrants.
Higher because of no
such expansion and
new entry in pharma
market.
More foreign
exchange can be
earn
110
Conclusion
111
Healthcare Sector
Healthcare is at an influx of paradigm shifts in terms of changing disease patterns,
increasing dual disease burden for both rural and urban India. On the supply side there
has been uneven distribution of healthcare infrastructure and resources posing various
challenges to the sector. A multi-pronged approach from key stake holders is necessary
to address the issue. Both the public and private sector need to work in tandem to make
healthcare available, accessible and affordable. India would need various solutions
towards this end.
The life sciences era offers much potential for medical progress and the health
industries
• Healthcare can be source of consumption or potential investment in economic growth
• Social costs to be weighed against economic benefits of developing health
technologies
• Evidence-based economic evaluation is an essential tool for health technology
assessment
• Balanced future roles of government vs market
112
Infrastructure Sector
India is becoming an integral part of the global infrastructure and Many Indian
companies are participating in this global growth potential through their infrastructure
projects like airport infrastructure, metros infra, roads, real estates and many more
things which deals to take initiatives. Reliance Infrastructure Limited contributed
significantly to this process through acquisitions of foreign projects or by having export-
led business models–reflected in increasing share in India’s infrastructure services
exports as well as industry turnover. Going forward, as India further increases its
dominance in the world INFRASTRUCTURE market, Reliance Infrastructure Limited
with its Growth enablers and strong building blocks can become a global
INFRASTRUCTURE hub. However, this would call for an enormous change in mindset
and transformation to attract global capital and talent. The path to globalization is full of
opportunities but also fraught with risks. Reliance Infrastructure Limited which would
develop the right framework that would help them capitalize on this opportunity and
mitigate risks will benefit the most.
113
Pharmaceutical Sector
Ranbaxy Laboratories Ltd. is almost 6 decades old company .if Ranbaxy will go in
Yemen, profit margin will defiantly increase because of following reason.
Yemen is one of the poorest and least developed countries in the Arab World, with a
formal 35% employment rate, dwindling natural resources, a young population and
increasing population growth. Yemen's economy is weak compared to most countries in
the Middle-East, mainly because Yemen has very small oil reserves.
If Ranbaxy Laboratories will established its plant in Yemen ,employment will also
increases as well as government of Yemen may earn foreign exchange by exporting
drug in other gulf countries because Yemen is located in Western Asia, in the southern
half of the Arabian Peninsula, bordering the Arabian Sea, Gulf of Aden, and the Red
Sea. It lies south of Saudi Arabia and west of Oman so there is also open market for
neighbor countries for Ranbaxy.
The temperature from 30 °C (86 °F) in the day to 0 °C (32 °F) at night is normal. So
difference of this climate, people get illness, but use of certain product like revital people
may healthy. So Ranbaxy has huge market comparatively Abu jareer cause of having
good range of products.
The level of competition is much less in Yemen due to low development of
pharmaceutical industries as compare to Indian market.
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