A Global Country Study Report (GCSR) On
“Pharmaceuticals Industry In Malaysia”
Som-lalit Institute of Business Management
In partial fulfillment of the
requirement of the award for the degree of
Master of Business Administration
Gujarat Technological University
Under the guidance
Prof. Rashmi Banerjee
KEVAL AGHARA [Enrollment No.:167780592004]
DEVSHREE DALVADI [Enrollment No.:167780592011]
RISHABH DHANDH [Enrollment No.:167780592017]
BARKHA KHANCHANDANI [Enrollment No.:167780592036]
SAURABH PRAJAPATI [Enrollment No.:167780592075]
TEJASWI JATTA KAUL [Enrollment No.:167780592113]
SOM-LALIT Institute Of business Management
Affiliated to Gujarat Technological University
• Malaysia is a federal constitutional located in Southeast Asia. It consists of thirteen states and three federal territories.The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. With a population of over 30 million, Malaysia is the 44th most populous country.
• The government system is closely modelled on the Westminister parliamentary system and the legal system is based on common law. The head of state is the king, known as the Yang di-PertuanAgong.The head of government is the prime minister.
• The country official language is Bahasa Malaysia or commonly known as Malay language. English remains as an active second language.
Region Southeast Asia
Coordinates 2°30'N 112°30'E
Total Area 3,33,803 km2
Coastline 4,6745 km
Total Land Borders :
Borders Thailand : 506 km
Indonesia : 1,782 km
Brunei: 281 km
Highest Point Mount Kinabalu
Lowest Point Indian Ocean
Longest River Rajang River
Largest Lake Kenyir Lake
LANGUAGES SPOKEN IN MALAYSIA
Various common languages spoken in Malaysia are:
Malayic, Bornean, Aslian, Land Dayak, Sama–Bajaw, Philippine, Creole
Malaysian and English
Indigenous Languages :
(in west Malaysia) –
Baba Malay, Batek, Chitty Malay, Kristang,,Lanoh, Mah Meri, Malaysian Tamil, Pahang Malay, Rawa Malay, Temuan, Southern Thai
(in eastern Malaysia) –
Abai, Bahau, Lahanan, LunBawang, Narom, Tutoh, Seri, Timugon
CURRENCY AND EXCHANGE RATE OF MALAYSIA
The Currency used in Malaysia is called “THE MALAYSIAN RINGGIT”.
1 Malaysian Ringgit =14.99 Indian Rupees
RELIGION IN MALAYSIA
• Malaysia is a multicultural country, whose official religion is ISLAM.
• As of 2010, 61.3% 0f the population practiced Islam, 19.8% practiced Buddhism, 9.2% practiced Christianity, 6.3% practiced Hinduism, and 1.3% practiced Chinese Religions.
FLAG OF MALAYSIA
NATIONAL ANTHEM OF MALAYSIA
Negaraku (My Country) is the national anthem of Malaysia. It was selected as a national anthem at the time of the Federation of Malaya's independence from Britain in 1957.
Negara Ku (My Country)
Original Bahasa Malaysia Words
Negara ku, tanahtumpahnyadarahku
(repeat previous two lines)
My country, my native land
The people living united and progressive
May God bestow blessing and happiness
May our Ruler have a successful reign
(repeat previous two lines)
CURRENT RULING PARTY
Malaysia's predominant political party, the United Malays National Organization (UMNO), has held power in the coalition known as the BarisanNasional (formerly the Alliance) with other parties since Malaya's independence in 1957.
LATEST DEVELOPMENT IN MALAYSIA
• Illegal loggers to be detained until case mentioned in Court.
• DPM announces 11 initiatives to improves image of security services industry.
• Nor Mohamed did not give detailed info on BNM forex transaction.
• Hurricane Irma leaves 11 dead as it tears through Caribbean.
OVERVIEW OF INDUSTRIES, TRADE & COMMERCE IN THE COUNTRY OF STUDY
List Of Industries In Malaysia
1. Rubber Industries
2. Pharmaceuticals Industries
3. Oil& Gas Industries
4. Agricultural Industries
5. Electronic Industries
1.CONTRIBUTION OF RUBBER INDUSTRY IN GDP
Source : http://www.mrepc.com/industry/industry.php
IMPORT EXPORT STATISTIC OF RUBBER INDUSTRY
MAJOR PLAYERS OF THE RUBBER INDUSTRY
• Lakshmi Rubber Industry
• RPM Rubber co.Ltd
• Guangzhou Sentuo Rubber products co.
• Hebe Rubber products
2.CONTRIBUTION OF PHARMACEUTICAL INDUSTRY IN GDP
The Malaysian economy grew at a stronger pace in 2014 with a growth of 6% .
In 2009, market growth has been fairly consistent atbetween 8% - 10% annually for the past several years.
IMPORT EXPORT STATISTIC OF PHARMACEUTICAL INDUSTRY
Malaysian manufacturers currently export to countries in South East Asia, Africa, and the Middle Eastwith new markets being explored beyond these countries. Growth in exports has been steady at between 10% to 12% annually.
MAJOR PLAYERS OF PHARMACEUTICALS INDUSTRY
• Apex Healthcare Bhd
• Antah Healthcare Group
• Bio-Pharmaceuticals SdnBhd
• CCM Pharmaceuticals Sdn. Bhd.
3.CONTRIBUTION OF OIL & GAS INDUSTRY IN GDP
• The contribution of the oil & gas industry to the Malaysian economy is significant. In 2016, crude oil, condensates and gas constituted the second largest exports after electrical & electronic goods and contributed up to 20% to the country's gross domestic product (GDP) in recent years.
IMPORT AND EXPORT STATISTIC OF OIL AND GAS INDUSTRY
• Malaysia is the 18th largest export economy in the world.In 2015, Malaysia exported $254B and imported $175B, resulting in a positive trade balance of $78.8B. In which the petroleum gas was $13.2B and RefinedPetroleum was $13.1B.
• And the import value of redefined petroleum were $14.4B and the value of crude petroleum were $3.33B.
MAJOR PLAYERS OF OIL AND GAS INDUSTRY
• BHP oil petroleum
• Petroliam Nasional
• Hess Oil
4.CONTRIBUTION OF AGRICULTURE INDUSTRY IN GDP:
• In 2016 the contribution of agriculture was 8.2% in the total GDP of the Malaysia. The Share of agricultural is declining every year in Malaysia's economy.
• The agricultural industry in Malaysia including livestock farming,vegetables, fruits and fisheries.
IMPORT- EXPORT STATISTICS IN AGRICULTURE INDUSTRY
• In 2016, agriculture exports amounted to RM18.4 billion while agriculture imports amounted to RM17.1 billion.So the exports are more as compare to the imports which is beneficial for the country.
• The major items exported were edible products(RM5.5 billion), cocoa (RM4.2 billion), prepared cereals and flour (RM3.0 billion)
• The major imports were edible products (RM5.1 billion), sugar (RM3.7 billion), dairy products (RM2.8 billion), vegetables and fruits (RM1.7 billion).
MAJOR PLAYERS OF AGRICULTURE INDUSTRY
• Felda Global Ventures.
• Sinmah Capital Berhad.
• Sime Darby Plantation.
• United Plantation
• National Feedlot Corporation.
5.CONTRIBUTION OF ELECTRONICS INDUSTRY IN GDP
• Malaysia's economy is expected to grow at an average of 6.3% a year during the Third Industrial Master Plan (IMP3), covering year 2006 to 2020 against an average of 3.5% annual growth in the world's gross domestic product (GDP) during the period.
• The contribution of Electronic sector to its national GDP amounted to RMI216.29 billion in the year 2016.
IMPORT EXPORT STATISTIC OF ELECTRONIC INDUSTRY
• Exports of Electronics products rose by 3.5% or RM9.8 billion to RM287.72 billion, accounting for 36.6% of total exports. Increase in exports of Electronic products over RM1 billion were registered for, among others: Electronic integrated circuits, increased by RM3.67 billion to RM100.05 billion;
• Increase of RM1.74 billion to RM10.33 billion.
• Imports of manufactured goods, accounted for 88.2% of Malaysia's total imports. Out of all the imports, the major imports of manufactured goods in 2016 were of Electonic products, valued at RM209.94 billion, accounted for 30% share of Malaysia's total imports.
MAJOR PLAYERS OF ELECTRONIC INDUSTRY
INDIA'S PHARMACEUTICAL INDUSTRY – AN OVERVIEW:
The domestic pharmaceutical market size , as per ORG – IMS reports stood at approximately Rs.54,900 cr. against Rs.50,410 cr. in the year 2007-08. The composition of Indian pharmaceutical exports in the year 2008 – 09. The 56% of India's pharmaceutical exports comprised of formulations valued at Rs.23,146.31 cr. followed by bulk drugs (41%) valued at Rs.16,564.93 cr. and herbals exports including medicants and medicaments of Ayush products occupied a share of 3% valued at Rs.1,156.64 cr.
HISTORY OF PHARMACEUTICALS IN INDIA (GUJARAT)
• In 1947 the year of Independence, India's Pharmaceutical production was to the tune of Rs.100million.
• Gujarat leads India in pharmaceuticals with the share between 35% and 46% of the national share in pharmaceutical production over the last two decades. Ahmedabad and Vadodara are leaders in the production of generics while Ankleshwar and Vapi produce much of India's bulk drugs.
• During the last decade, Gujarat's pharmaceutical companies like Sun Pharma, ZydusCadila, Torrent and Dishman have been expanding their global footprint through acquisitions, mergers and alliances with international companies and setting up subsidiaries and marketing offices overseas.
• Gujarat's pharma companies have also been increasingly working towards getting their facilities approved by USFDA and other international regulatory bodies to augment their market presence across regulated and semi-regulated markets.
CONTRIBUTION OF THE PHARMACEUTICALS INDUSTRY IN GDP IN GUJARAT
• The world's largest ship breaking yard is in Gujarat near Bhavnagar at Alang. Reliance Petroleum, one of the group companies of Reliance Industries Limited operates the oil refinery at Jamnagar which is the world's largest grass roots refinery. The company has also planned another SEZ (special economic zone), in Jamnagar.
• Gujarat ranks second nationwide in gas-based thermal electricity generation with national market share of over 8% and second nationwide in nuclear electricity generation with national market share of over 1%. The State ranks 15th in a list of 142 nations worldwide and actually ranks higher than several developed nations.
GDP – RS. 8.76 lakh crore (US$140 billion) (2014-15)
GDP Rank – 4th
Unemployment – 1.2%(2015)
MAJOR PLAYERS OF PHARMACEUTICALS INDUSTRY IN GUJARAT
1.Sun Pharmaceutical Industries Ltd
6. Unison Pharma
7. Corel PharmaChem
1. SUN PHARMACEUTICAL INDUSTRIES LTD
• Sun Pharmaceutical, head-quartered in Vadodara, Gujarat is the world 5th largest pharmaceutical company.
• It manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India ,United States, and many other countries.
• Cipla is a globally recognized Indian pharmaceutical giant. It ensures to provide patients with access to high quality, affordable and effective medicine and support.
• It was incorporated in the year of 1935. Headquartered at Mumbai,India ,with an employee base of 20000+ Cipla take care of its continuous innovation in R &D with 30+ world firsts.
3. TORRENT PHARMACEUTICALS LTD
• Torrent Pharmaceuticals Ltd. is the flagship company of the Torrent Group, head-quartered in Ahmedabad.
• It is one of the leading drugs and chemicals manufacturer and pharmaceutical innovators of India. It was founded by UN Mehta as Trinity Laboratories Ltd and was later name changed to Torrent Pharmaceuticals Ltd.
• Torrent Pharmaceuticals' operates over more than 50 countries across the length and breadth of the globe with a great product portfolio consisting of 1000 product registrations globally. The company specializes in Formulations, Drug Discovery, API, Marketing and Sales of Drugs.
4. CADILA PHARMACEUTICALS
• Cadila Pharmaceuticals Ltd. ,headquartered at Ahmedabad, in the State of Gujarat, is one of the largest private pharmaceutical companies in India, that is serving this nation and other countries through their life saving drugs and formulations.
• Focused strongly on Innovation and Research, and strategically aligned with their operational effectiveness the company is present in 40+ therapeutic categories spread across 12 specialities, including cardiovascular, gastrointestinal, haematinics, anti-infectives and antibiotics, respiratory agents, antidiabetics and immunologicals etc.
• At Cadila Pharmaceuticals, Research and Development is the primary focus of all its initiatives, be it Biotechnology, APIs, Formulations, Plant Tissue Culture or Phytochemistry.
BILATERAL TRADE POLICY OF INDIA
(FOREIGN TRADE POLICY)
• Total merchandise exports from India grew by 17.48% year-on-year to US$ 24.49 billion in February 2017, while overall trade deficit declined by 24% year-on-year to US$ 41.8 billion in April-February 2017, according to data from the Ministry of Commerce & Industry.
• All export and import-related activities are governed by the Foreign Trade Policy (FTP), which is aimed at enhancing the country's exports and use trade expansion as an effective instrument of economic growth and employment generation.
• As part of the FTP strategy of market expansion, India has signed a Comprehensive Economic Partnership Agreement with South Korea which will provide enhanced market access to Indian exports.
LITERATURE REVIEW ON PHARMACEUTICAL INDUSTRY
Beena. S (2006) The research was carried on the basis of mergers and acquisitions in the Indian pharmaceutical industry. The study found that many of the firms are implementing these strategies in the new context of globalisation mainly to overcome the acute competition. The study reaches the conclusion that the consolidation strategies followed by the firms enabled them to cut down the wasteful expenses to a greater extent and which resulted in better performance in the industry.
Chaturvedi and Chataway (2006) The researcher has described in their study about Smaller pharmaceuticals do not have these resources and might not be able to survive in the market. Indian firms are adapting to the changing environments. R&D is recognized as the ‘survival kit' in the post-TRIPs scenario. The paper observed that Indian firms are investing in R&D not only for new drug discovery but for developing capabilities .
HarithaSaranga , B.V. Phani (2008) The Indian Pharmaceutical Industry (IPI) will be going through a major shift in its business model, from the year 2005. As a result, IPI, comprising of more than 20,000 players, is slowly consolidating with mergers, acquisitions and alliances; and getting ready to adapt to the new environment.
Jaya Prakash Pradhan (2006) It is found that strategic government policies were the main factors that transformed the status of the Indian pharmaceutical industry from a mere importer and distributor of drugs and pharmaceuticals to an innovation‐driven cost‐effective producer of quality drugs. India emerged as one of the fast growing pharmaceutical industry in the world with growing trade surpluses and 98 exports.
Nair (2007) The researcher points out that future will be bright for the Indian pharma companies focusing on visionary strategies. Drug Discovery focus on production of high quantum and moderately priced generics, strengthening API/drug intermediates production, outsourcing to MNC's upgrading manufacturing facilities to USFDA standards and investing in Pharma support services and help India move up and compete with top global Pharma companies.
MINISTRY OF EXTERNAL AFFAIRS OF PHARMACEUTICAL INDUSTRY
• The story of the Indian pharmaceutical sector could well have been like the IT sector if only enough attention was paid to its achievements and the huge impact it has had on healthcare around the world.The pharma sector is innovative, widely acknowledged as making a global impact in the treatment of diseases like HIV AIDS and also able to support the healthcare needs of the world.
• The Indian pharma Industry produces about 20% of the global generic drugs with the US accounting for nearly 28% of Indian pharmaceutical exports, followed by the European Union at 18% and Africa at over 17%. This should be a clear acknowledgement of the global leadership that Indian pharma industry has achieved which would have been impossible without following global quality standards.
• Another popular criticism of Indian pharma has been that there is insufficient investment in innovation and R&D. Despite over 500 new drugs being discovered by Indian pharma companies during 1985 – 2005, there seems a perception that India thrives on copying foreign products.
• The contribution of Pharmaceutical Industry towards national GDP of India is quite high and the Industry represents one of the largest market share in the Economies.
• The study found that many of the firms are now implementing new strategies in context of globalisation mainly to overcome the high level competition arising out of the pro-market reforms and to strengthen their market portfolio.
• The Indian Pharmaceutical Industry (IPI) will be going through a major shift in its business model, from the year 2005. As a result, IPI, comprising of more than 20,000 players, is slowly consolidating with mergers, acquisitions and alliances; and getting ready to adapt to the new environment.
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