INTERNATIONAL BUSINESSDOCUMENTATION

PROMISING SECTORSPOTENTIAL

Presented By:Swati Vaish Batch – 33E-MBA

CONTENTS

• International Business Process • Documentation • Sectors• Potential • Road Ahead • Bibliography

WHAT IS INTERNATIONAL BUSINESS ??

International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries.

DOCUMENTATION

• PROFOMA INVOICE• COMMERCIAL INVOICE • PACKING LIST/PACKING SPECIALISATION • CERTIFICATE OF ORIGIN • SHIPPING BILL • ARE 1 • BILL OF LADING • AIRWAY BILL• BILL OF EXCHANGE • BILL OF ENTRY• INSURANCE POLICY

Top sectors lucrative in International Business

• Information Technology and Electronics Hardware.• Telecommunication.• Pharmaceuticals and Biotechnology.• R&D.• Banking, Financial Institutions and Insurance & Pensions.• Capital Market.• Chemicals and Hydrocarbons.• Infrastructure.• Agriculture and Food Processing.• Retailing.• Logistics.• Manufacturing.• Power and Non-conventional Energy.

INFORMATION TECHNOLOGY

The IT sector has been India's sunshine sector for quite some time now. The industry has contributed considerably to changing India's image from a slow developing economy to a global player in providing world class technology solutions. According to the IBEF (India Brand Equity Foundation) figures, the Indian IT industry is set to touch $225 billion by 2020.

Industry experts and NASSCOM say the Indian IT workforce will touch 30 million by 2020, becoming the highest sector employer. This will be coupled with steady increase in pay in a sector already offering a high base. The outsourcing industry too is looking towards India and is expected to be a $2.5 billion industry in the next 24 months.

TELECOMIndia's telecom story is only getting better. According to Zinnov estimates, India already has nearly 850 million mobile phone subscribers, with a 15% smart phone penetration. All this points to a penetration that is fuelling the growth of enterprise mobility in India, which will lead to significant employment growth.

The Telecom Regulatory Authority of India (TRAI) too is targeting a 10-fold increase in broadband subscribers to100 million by 2014. Outsourcing revenues from the telecom sector, as per E&Y, are set to grow at a CAGR of 31% to nearly $2 billion in 2012. India today is at a stage in telecom growth that probably America was 30 years ago. Our mobile and Internet penetration has to increase further, resulting in a new era in enterprise mobility.

HEALTHCAREThere are clear indications that healthcare is going to be a major sector that stimulates economic growth and contribute to employment.

Over 40 million new jobs are expected to be generated by 2020, as per a report titled 'India's New Opportunities-2020' by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII). The Indian healthcare industry also has advantages over other developing countries in becoming a global hub for medical tourism. The medical treatment and educational services in India are a fraction of the cost in developed countries.

While we may lag in molecule development and drug patents, an increasing disposable income has led to a strong domestic market potential in India. This will result in significant employment generation across various functions, such as sales, marketing, HR, IT and operations, within the industry.

INFRASTRUCTUREIndia's infrastructure growth has been exponential over the past decade. Today, we are the fourth largest and probably the second-fastest growing economy, with infrastructure being one of the cornerstones. The infrastructure industry in India is highly fragmented and hence difficult to gunge its exact size and the jobs it generates each year in absolute terms.

However, be it roads and highways, railways, aviation, shipping, energy, power or oil & gas, the Indian government and the various state governments seem to making rapid progress. This has led to significant employment generation, though a majority of it is still in the un organized sector. Over the next 10 years, the infrastructure sector in India will need to continue its growth momentum and is likely to maintain a growth rate anywhere between 7-10%, a very healthy sign.

RETAIL• Over the past few months, the retail sector has grabbed headlines

with talks of 100% FDI in single brand retail, which is currently capped at 51%. While the outcome is still undecided, the opening up of India's retail will create a stronger, organized industry that will help in generating employment.

• Today, only a small part of retail in India is organized. Despite this, it is estimated that the sector in India is worth more than $400 billion, with domestic and international players planning to expand across the country. Industry leaders predict that the next phase of growth will emerge from rural markets. There are projections of the workforce doubling by 2015, from the current five lakhs in both organized and unorganized sector.

POTENTIAL SECTOR

INDIAN PHARMACEUTICAL INDUSTRY

INTRODUCTION • The Indian pharmaceuticals market is third largest in terms of volume and

thirteen largest in terms of value, as per a pharmaceuticals sector analysis report by equity master.

• The market is dominated majorly by branded generics which constitute nearly 70 to 80 per cent of the market. Considered to be a highly fragmented industry, consolidation has increasingly become an important feature of the Indian pharmaceutical market.

• India has achieved an eminent global position in pharma sector. The country also has a huge pool of scientists and engineers who have the potential to take the industry to a very high level.

• The UN-backed Medicines Patents Pool has signed six sub-licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic anti-AIDS medicine Tenofovir Alafenamide (TAF) for 112 developing countries.

MARKET SIZE• The Indian pharmaceutical industry is estimated to grow at 20 per cent compound annual

growth rate (CAGR) over the next five years, as per India Ratings, a Fitch Group company. Indian pharmaceutical manufacturing facilities registered with US Food and Drug Administration (FDA) as on March 2014 was the highest at 523 for any country outside the US.

• We expect the domestic pharma market to grow at 10-12 per cent in FY15 as compared to 9 per cent in FY14, as per a recent report from Centrum Broking. The domestic pharma growth rate was 11.9 per cent in October 2014, highlighted the report.

• Gujarat clocked the highest growth rate in pharmaceuticals market at 22.4 per cent during November 2014, surpassing the industry growth rate, which grew by 10.9 per cent, as per data from the market research firm AIOCD Pharma softtech AWACS.

• Also, growing at an average rate of about 20 per cent, India's biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics may reach the US$ 7 billion mark by the end of FY15, according to an industry body.

• Biopharma is the largest sector contributing about 62 per cent of the total revenue, with revenue generation to the tune of over Rs 12,600 crore (US$ 2.03 billion).

• The bio-pharma sector comprises vaccines, therapeutics and diagnostics.

INVESTMENTS

• The Union Cabinet has given its approval to amend the existing FDI policy in the pharmaceutical sector in order to cover medical devices.

• The Cabinet has allowed FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to specified conditions.

• The drugs and pharmaceuticals sector attracted cumulative foreign direct investment (FDI) inflows worth US$ 12,813.02 million between April 2000 and December 2014, according to data released by the Department of Industrial Policy and Promotion (DIPP).

MAJOR INVESTMENTS • Stelis Biopharma has announced the ground-breaking for construction of its

customized, multi-product, biopharmaceutical manufacturing facility at Bio-Xcell Biotechnology Park in Nusajaya, Johor, Malaysia's park and ecosystem for industrial and healthcare biotechnology at a total project investment amount of US$ 60 million.

• Pharma major Strides Arcolab has entered into a licensing agreement with US-based Gilead Sciences Inc to manufacture and distribute the latter's low-cost Tenofovir Alafenamide (TAF) product used for HIV treatment in developing countries. The licence to manufacture Gilead's low-cost drug extends to 112 countries.

• Apollo Hospitals Enterprise (AHEL) plans to add another 2,000 beds over the next two financial years, at a cost of around Rs 1,500 crore (US$ 242.57 million), as per Mr Prathap C Reddy, Founder and Executive Chairman, Apollo Hospitals.

• CDC, the UK’s development finance institution, has invested US$ 48 million in Narayana Hrudayalaya hospitals, a multi-speciality healthcare provider. With this investment, Narayana Health will expand affordable treatment in eastern, central and western India.

MAJOR INVESTMENTS • Cadila Healthcare Ltd has announced the launch of a biosimilar for Adalimumab -

the world’s largest selling drug for rheumatoid arthritis and other auto immune disorders. The drug will be marketed under the brand name Exemptia at one-fifth of the price for the branded version-Humira. Cadila’s biosimilar is the first to be launched by any company in the world and is a finger print match with the original in terms of safety, purity and potency of the product, as per the company.

• Torrent Pharmaceuticals has entered into an exclusive licensing agreement with Reliance Life Sciences for marketing three biosimilars in India — Rituximab, Adalimumab and Cetuximab.

• Piramal Enterprises Ltd has acquired US-based Coldstream Laboratories for US$ 30.6 million in an all-cash transaction.

• Indian Immunologicals Ltd (IIL) plans to set up a new vaccine manufacturing facility in Pondicherry with an investment of Rs 300 crore (US$ 48.53 million).

• SRF Ltd has acquired Global DuPont Dymel, the pharmaceutical propellant business of DuPont, for US$ 20 million.

GOVERNMENT INITIATIVES• The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014 is published by the

Indian Pharmacopoeia Commission (IPC) on behalf of the Ministry of Health & Family Welfare, Government of India. The addendum would play a significant role in improving the quality of medicines which in turn promote public health and accelerate the growth and development of pharma sector.

• The Government of India has unveiled 'Pharma Vision 2020' aimed at making India a global leader in end-to-end drug manufacture. It has reduced approval time for new facilities to boost investments. Further, the government has also put in place mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to address the issue of affordability and availability of medicines.

• Romania is keen to tie up with the Indian pharmaceutical companies for research and develop new drugs. "Romania will collaborate with India for license acquisition to sale India's drugs in Europe," said Mr Mario Crute, Counselor in Ministry of health in Romania at GCCI. The country will tie up with the Indian pharmaceutical companies for research and develop new drugs.

GOVERNMENT INITIATIVES• Some of the major initiatives taken by the government to promote the

pharmaceutical sector in India are as follows:• Indian and global companies have expressed 175 investment intentions

worth Rs 1,000 crore (US$ 161.78 million) in the pharmaceutical sector of Gujarat. The memorandums of understanding (MoUs) would be signed during the Vibrant Gujarat Summit.

• Telangana has proposed to set up India's largest integrated pharmaceutical city spread over 11,000 acres near Hyderabad, complete with effluent treatment plants and a township for employees, in a bid to attract investment of Rs 30,000 crore (US$ 4.85 billion) in phases. Hyderabad, which is known as the bulk drug capital of India, accounts for nearly a fifth of India's exports of drugs, which stood at Rs 90,000 crore (US$ 14.56 billion) in 2013-14.

ROAD AHEAD• The Indian Pharma market size is expected to grow to US$ 85 billion by

2020. The growth in Indian domestic market will be on back of increasing consumer spending, rapid urbanization, raising healthcare insurance and so on.

• Going forward, better growth in domestic sales will depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers are on the rise.

• Moreover, the government has been taking several cost effective measures in order to bring down healthcare expenses. Thus, governments are focusing on speedy introduction of generic drugs into the market. This too will benefit Indian Pharma companies. In addition, the thrust on rural health programmed, life saving drugs and preventive vaccines also augurs well for the Pharma companies.

BIBLIOGRAPHY

• http://businesstoday.intoday.in/story/retail-infrastructure-healthcare-sectors-to-hire-more-in-india/1/19528.html

• http://business.mapsofindia.com/india-business/international-business.html

• INTERNATIONAL BUSINESS -Justin Paul • EXPORT IMPORT PROCEDURES &

DOCUMENTATION- Dr Khushpat s Jain • INTERNATIONAL BUSINESS -P. Subba Rao• http://www.ibef.org/industry/pharmaceutical

-india.aspx

THANK YOU