Raising Seed Capital by Steve Schlafman at RRE Ventures
Gsk additional material
1. QUESTION: A PARAGRAPH ON THE COMPANY FUTURE DIRECTION
Focused on emerging markets, GlaxoSmithKline’s Pakistan subsidiary is gearing up for
expansion in its consumer healthcare arm. The company has been making targeted
acquisitions and is looking to expand its core area away from the products in which the
government regulates prices.
“GSK Pakistan is still mainly pharmaceutical; its consumer healthcare arm is about 10%
of the business,” CEO Salman Burney said in an interview with The Express Tribune.
The company wants to grow its consumer healthcare unit, he added.
The GSK chief said they want to do it in two steps: maximise support for the existing
portfolio brands that include Panadol, Sensodyne and Aquafresh – in oral care – and
Horlicks on the nutrition side. In the second step, Burney said, GSK – which has
revenue growth of about 12% in its pharmaceutical line – may also go for new
opportunities such as acquisitions and other new launches.
GSK has decided to invest at least Rs2 billion in Pakistan in consumer healthcare over
the next five years. “Pakistan is one of the countries where we want to aggressively
invest in the near future,” he added.
On the pharma side, the company has been acquiring rival industries on a targeted
basis – antibiotic manufacturers for example. It has been investing heavily on
acquisitions of new assets and rebranding of certain products. “The current strategy is
to broaden our business base and rebalance,” Burney said. GSK Pakistan, therefore,
made acquisitions on a targeted basis. The company is soon going to launch one or two
antibiotic products.
GSK’s selling marketing and distribution expenses amounted to Rs2 billion for the nine
months ended September 30, up 20.6% from Rs1.68 billion in the corresponding period
last year – reflecting its recent investments.
GSK’s operating profit for the nine months ended September 30 amounted to Rs1.8
billion, up 33% from Rs1.4 billion in the corresponding period of 2010. However,
earnings per share in the third quarter of 2011 dropped to Rs0.99 from Rs1.44 in the
third quarter of 2010.
Despite challenges facing GSK, the chief executive is optimistic about the company’s
growth. Pakistan’s strategic advantage is it is capable of setting up a globally
competitive pharma industry, Burney said that Pakistan remains a good market for us
and we believe it will grow as the country has a very sizeable middle class.
2. QUESTION: MIND MAPPING
These are the pictures we can use them for mind mapping. 2007 word me mujse
yeh model flow chart me nai ban rahe they isiliye agar hand se bana k report me
laga denge to bura nai lageyga
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