Expansion of Business in Nepal

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This presentation is about expansion of pharmaceutical industry in Nepal.
while the company have a headquarter in Switzerland and operating in more than 150 countries

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Expansion of Business in Nepal

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

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