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O Push Factors
2 Constraints in the home market pushing the firm to seek
overseas markets
O Pull factors
2 The appeal of markets abroad
O Saturation in the home market
O Extend the product life cycle
O Level out seasonal fluctuations in demand
O Reduce dependence on home market
O Intense competition in home market
O Economic problems in home market
O Make use of excess capacity
O Excessive regulation in the home market
O Spread risks
O Exploit a business opportunity
O Growth potential in overseas market
O Overseas market currently under supplied
O Low degree of competition abroad
O Exploitation of a new market segment
O Benefit from economies of scale-reduction in unit
costs
O Growth prospects
O Elimination of a constraint imposed by recession
or saturation at home
O Economies of scale to reduce unit costs
O Use of spare capacity
O Development of new markets
O Spreading of risks
O Social differences ± culture, religion, language,
literacy. Role of women, tastes
O Economic differences-living standards, taxation,
inflation, exchange rates.
O Trade Barriers
O Political Differences- degree of political stability
O Legal differences-safety, product standards,
environmental issues, advertising
O Increased transport, distribution and
communication costs
O Remoteness from customers
O Transport costs
O Economic differences
O Business relationships and practices
O Need for local expertise
O Use of different currencies
O Exchange rates-transaction costs associated with
currency exchange
O Risks associated with currency movements
O Decline in trade barriers
O Removal of restrictions on foreign investments
O Technological Change ± particularly developments
in communication, information and transportation
technologies
O 1961: Ranbaxy Laboratories Limited was registered in
India
O 1962: Began manufacturing formulations
O 1975: Formulated its export strategy
O 1977: Ranbaxy had its first international joint venture in
Lagos (Nigeria)
O 1988: Ranbaxy¶s Toansa plant got US Food and Drug
Authority (FDA) approval
O 1990: Ranbaxy was granted a patent for Doxycyline in
the US.
O Ranbaxy repositioned itself in 1992 to gear up for
internationalization
O Brought a change in the exports mindset.
O Focused and rapid expansion into foreign countries.
O Focused on research to leverage in the era of worldwide
intellectual property rights
O Serious about its image as an µinternational µ player and
fought hard against the stigma attached to Indian firms
O 1992: Entered into an agreement with Eli Lilly & Co for
strategic alliance in India, to market select the latter¶s
products
O 1993: Joint venture was set up in China and was called
Ranbaxy (Guangzhou China ) Limited
O 1994: Established its Regional Headquarters in London
(UK) and Raleigh (USA)
O 1995: Acquired Ohm Laboratories & state of the art new
manufacturing site at Ranbaxy¶s US subsidiary started
functioning.
O 1999: Bayer AG, Germany and Ranbaxy signed an
agreement for an International Strategic Alliance,
2 Bayer obtained exclusive development and worldwide marketing
rights to oral once daily formulation of Ciprofloxacin, developed by
Ranbaxy.
2 Ranbaxy¶s strategy was to market its products globally through
this alliance.
O 2000: Ranbaxy acquired Bayer¶s Generics business in
Germany
O 2000: Forayed into Brazil, achieved global sales of US $
2.5 million
O 2001: Set up of a new manufacturing facility with an
investment of US $ 10 million in Vietnam (Green Field
Venture)
O 2001: Ranbaxy USA crossed sales of US $ 100 million
becoming the fastest growing company in the US
O 2003: Ranbaxy and GSK accelerated entered into a global
alliance for drug discovery and development
O 2004: Ranbaxy began operations in France as a generic
company after acquiring a wholly owned subsidiary RPG
(Aventis)
O 2005: Ranbaxy¶s anti-malarial molecule successfully
completed POC Phase II studies, launched in Canada.
O 2005: Ranbaxy¶s joint venture with Nippon Chemiphar in
Japan (Nihon Pharmaceutical Industry Limited) launched
Vogseal for diabeties, the first product of the joint venture.
O 2005: Acquired the generic product portfolio from EFARMES
of Spain ( 18 drugs for sale in Spain)
O µAggressive overseas acquisition¶ strategy for expansion
O 2006: Ranbaxy¶s US arm bought patents, trademarks
and automated manufacturing equipment from Senetek
O 2006: Ranbaxy¶s Italian subsidiary acquired the
unbranded generic business of Allen, a division of
GlaxoSmithKline, to complement its own pipeline for the
Italian market
O 2006: Terapia acquisition created Romania¶s largest
generics firm
O Ranbaxy has manufacturing operations in more
than a dozen countries
O Products are available in over 125 countries.
O Expanding international portfolio of alliances, joint
ventures and representative offices across the
globe
2 USA, Japan, China, Mexico, Canada, Brazil and South
Africa.
2 Presence in 22 of the 25 European Union countries ,
including Germany, France, Italy, UK and Spain.
O 1984: Company was set up by Dr. Anji Reddy in India
O 1986: Dr. Reddy¶s entered international markets with
exports of Methyldopa
O 1987: It obtained its first USFDA approval
O 1990: Exported Norfloxacin and Ciprofloxacin to Europe
and the Far East
O 1991: Commenced formulation exports to Russia
O 1995: DRL established a joint venture in Russia
O 1999: Acquired 45 percent stake in American Remedies
Limited.
O 2000: Reddy US Therapeutics , a wholly owned
subsidiary, was established in Atlantia, USA, to conduct
drug discovery
O With its merger with Cheminor Drugs Limited (CDL) and
with its acquisition of American Remedies Limited (ARL),
the company became India¶s third largest
pharmaceutical company
O Commenced operation in China by establishing Joint
Venture
O 2002 DRL conducted its first overseas acquisition- BMS
Laboratories Limited and Meridian Healthcare in UK
Nordisk
O Geographic mix: domestic operations (36%) and international
operations (64%)
2 North America largest market (41 percent of international sales of the
company)
2 Europe (22 percent),
2 Russia and (CIS) countries (18 %)
2 Others (19 percent)
O Product mix: APIs accounted for (38 %)
O Therapeutic mix: 75 percent of branded formulation sales
derive from gastrointestinal, cardiovascular, anti-infectives,
pain management and nutrients segment.
O US generic market: currently marketing over 20 products.
O Agreement with Merck (Strategic Alliance): Distribute
and sell generic versions of Proscar and Zocor in
India, become an authorized generics manufacture for
a multinational.
O Bioignal Ltd Australia(Strategic Alliance): Develop
mass manufacturing processes for furanone,
O Acquisition: DRL acquired Roche¶s Active
Pharmaceutical Ingredients (API) business, mexico
O Symbolic, New Zealand (Strategic Alliance) :
Marketing its nutritional and immune boosters in India.
O Lupin Pharma Inc, plans to launch over 75 products in
the US in the coming three years.