Pharmaceutical Formulation Unit

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    ANIL KUMAR T G

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    ` Earning valuable foreign exhange

    ` Interdependency of nations

    ` Trade theories and their impact

    ` Diplomatic relations

    ` Core competency of nations

    ` Investment for Infrastructure` National Image

    ` Foreign trade policy and targets

    ` National tragets` WTO and International agencies

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    Low costs per unit area(Price of Land)

    Orderly growth of firm

    Cost of gathering raw materials, fabricating and

    distribution of finished products is minimumEnvironmental guidelines, Disposal of waste and

    other regulations set by Government

    Need not be the most favourable location but

    where all considerations are optimised.

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    ` Natural or Climatic conditions

    ` Availability of raw materials

    ` Access to market

    ` Availability of Infrastructural facilities

    ` Availability of skilled and non-skilled labours andtechnically qualified and trained managers.

    ` Strategic considerations to safety and security

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    India is the preferred choice of KPO destination

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    The Patent act 1970

    ` Low charges for research and development as wellas production of drugs

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    ` There are two types of costs in a new facility:construction costs and operating costs.

    ` The former set isnt a huge issue for companies,despite regional variations (domestically) of 10-30% for construction.

    ` Its the operating costs that are the long-termstrategic driver for Pharma facilities.

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    ` Three million plus graduates every year and approximately 307hundred million English speaking middle class by 2011.

    ` Commitment to quality.

    ` Intellectual property protection.

    ` Government support. Rich bio-diversity, Structured legal and

    regulatory system.

    ` Eco system and Industry momentum from $ 11 bn in 2002 to $ 70bn in 2008 (McKinsey estimates).

    ` Work ethics and strong manufacturing base.

    ` Education system and focus on quantitative ability, attractivedemographics.

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    ` The turnaround time in Indian ports is down to 4 days from 10

    ` Its telecom in 1999 provided a bandwidth of 155 Mbps. Today it is 75,000 times moreand with fibre optic network in 300 cities.

    ` MNCs are quite profitable in India and are often earning returns that are superior to

    their global average. Many of these companies are doing better in India than in china.

    ` Global MNCs are taking full advantage of their operations in India by not onlyprofitably accessing the domestic market but by also providing low cost off-shoredservices to their global operations.

    ` Despite our natural disdain for things Indian, our economy has been the secondfastest growing large (>$125 bn GDP) economy over the last five years.

    ` Since 1982, India has grown slower that 4% per annum only once in 1992. This yearIndia's economy is about $ 650 bn having grown at 8% (albeit supported by a goodmonsoon) and is now among the top ten global economies.

    ` India's demographic profile is most advantaged in the world and will continue toimprove.

    ` Infrastructure from a very poor base is improving. Apart from the power sector whichis very disappointing. Telecom, airports, roads and ports all have made progress.

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    ` Demographic Analysis

    ` Trade Area Analysis

    ` Competitive Analysis

    ` Traffic Analysis

    ` Site Economics

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    ` Vishakhapatnam ( Andhra Pradesh)

    ` Ahmedabad ( Gujarat)

    ` Baddi- Solon District (Himachal Pradesh)

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    ` Massive tax incentive package and central exciseconcessions to attract investments in 2003

    ` The area has adequate power, a rarity in India, peaceful

    industrial climate and is close to the rich hinterland ofDelhi, Chandigarh and Amritsar.

    ` The Himachal government has approved a housingscheme for migrant labor force with CII as the facilitator.

    ` The major attractions for investors included 100 per centoutright excise duty exemption for a period of ten yearsfrom the date of commencement of commercialproduction

    ` Availability of good water, salubrious climate and hydroelectric power cheaper at Rs 2.50 per unit

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