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

1. IN THE NAME OF ALLAH THE MOST BENEFICENT AND THE MOST MERIFUL

2. Presenter
Arslan
Ahmed

3. EXPANSION OF
BUSINESS
Project of International Business & WTO

4. Content Layout








Selected Country
Country advantages
Our Company
Destination Country (Nepal)
Why Nepal
Mode of Expansion
Theory of FDI
Q&A Session

5. Selected Country

Switzerland

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. 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. 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. 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. 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. Destination Country

Nepal

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. 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. 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. 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. 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. Question & Answer Session