A Global Study Country report On Yemen PDF 2012/736 - Yemen.pdf · Ethiopia. However, only a small remnant of those languages exists in modern Yemen, notably on the island of Socotra

1

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.

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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

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Overview Of

Yemen

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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).

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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) .

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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.

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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)

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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%,

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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)

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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….

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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.

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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.

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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.

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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.

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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



, the United States, and Italy.

Oil accounts for over 85 percent of total sales abroad. Non-oil exports include semi


expected to remain the country's major export. Sales of liquefied natural gas are







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



oil exports include semi-


of liquefied natural gas are



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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

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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.

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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.

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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

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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

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Introduction

Of

Sector

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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".

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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.

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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.

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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.

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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.

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Sector And Company Specific Study

28

Study on

Health-Care

Sector

STRUCTURE OF HEALTHCARE SECTOR

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Primary Health

Care

Secondary Health

Care

Tertiary health

care


Primary Health

Secondary Health

Tertiary health

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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.

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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.

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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.

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• 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

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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


, Managing

www.apollohospitals.com

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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

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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

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.

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.

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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.

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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

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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

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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


combination of demographic and economic factors is expected to bring about


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


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


combination of demographic and economic factors is expected to bring about


: Expected increase in population from about 1.1 billion

: 60 percent of the population in the younger age bracket


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


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



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


Anil Ambani. The company's

. RIL founded in the year 2002.Reliance

company having presence in across the



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


Reliance infrastructure is functioning as follow:

for a Developing India



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



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




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



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.

69

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.

70

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

74

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.


india.


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.

84

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.

85

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.

86

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

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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.

97

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.

102

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.

Documents

A Global Study Country report On Yemen PDF 2012/736 - Yemen.pdf · Ethiopia. However, only a small remnant of those languages exists in modern Yemen, notably on the island of Socotra