GlaxoSmithKline sets up first team for acquisitions in 93 years

GlaxoSmithKline (GSK) Pharmaceuticals is scouting for acquisitions in the domestic market for the first time since it started its operations in the country 93 years ago.

The change in strategy comes at a time when the government’ increasing price control over branded generic medicines has affected its profitability.

In the last five years, the revenue of the UK-headquartered company recorded a compounded annual growth rate (CAGR) of a meagre 4.4 per cent to Rs 3,000 crore for 2016-17. Its profit declined to Rs 337 crore in 2016-17 from Rs 429 crore in 2011. The company changed its financial year to March-ending in 2014-15 from December-ending earlier.

Inclusion of the firm’s established products, such as Zinetac, in the National List of Essential Medicines (NELM) affected its profitability. The medicine, used for acid peptic ulcer therapy, de-grew 5 per cent in value despite its volume increasing by 36 per cent. It has a market share of 47 per cent in the category, according to a December 2016 data from IMS.
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Railways seek reimbursement for IRCTC service charge

With the finance ministry starting the process for listing of Indian Railway Catering and Tourism Corporation (IRCTC), Indian Railway Finance Corporation (IRFC) and Ircon International (Ircon), the loss of service charge for IRCTC has become a cause for concern for railway officials.

The government waived the service charge following demonetisation to encourage cashless transactions.

The railway ministry has written to the finance ministry seeking reimbursement of the loss amounting to over Rs 500 crore on an annualised basis. IRCTC shares half of this service charge revenue with the railways.

Officials said the process for appointment of merchant bankers was under way with ICICI Securities and IDFC making presentations. The Department of Public Asset Management has set March 16 as the final date for submission of requests for quotations in this regard.

The decision to list these companies came as a surprise to the railways when Finance Minister Arun Jaitley made the announcement in his budget speech last month. The railways had written to the finance ministry on the issue of service charge before the budget as well.(READ MORE)

Rs 48,000 cr Delhi Budget: AAP focuses on health, education, no new taxes

Breaking News - A Rs 48,000-crore budget for the national capital was today presented by the AAP government, laying major focus on improving transport, health, water distribution and education infrastructure.

In its third Budget, the Arvind Kejriwal government abolished the plan and non-plan expenditure heads and presented it in terms of revenue and capital classification in line with the Centre's decision.

There was no proposal on levying any new tax.

In a first, Deputy Chief Minister Manish Sisodia, who holds the finance portfolio, also presented an "outcome budget" which he said would act like a "contract" between the government and the people.

Sisodia asserted that the economy of the state will grow "despite demonetisation".

At the same time, he said note ban has led to contraction in the city's estimated GSDP for the ongoing financial year (at constant prices) although it will still be higher than the projected growth at the national level.(READ MORE)

'Made in India' iPhones: Apple to seek incentives at Jan 25 govt meeting

Latets Business News - A team of the US-based iPhone maker Apple will meet a group of senior officials from ministries, including IT and finance, on January 25 to discuss its demands for setting up a manufacturing unit in the country.

Officials from departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will take part in the deliberations.

In a communication to the government, the Cupertino-based technology major has asked for various incentives including the tax incentives and long-term duty exemptions, to enter the manufacturing sector in India.

However, the sources said the technology major should set up the manufacturing unit in India without seeking additional support.

As many as 42 companies are making mobile phones in India, including Chinese firm Huawei and Xiaomi, and no firm has approached the government for any additional incentives.

Currently, the government provides support by way of benefits under the Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing.(Read More)

Myntra aims to double sales, turn profitable by March'18

Breaking News - Flipkart-owned Myntra is aiming to become profitable by March 2018, helped by a combination of rationalising costs, cutting discounts and introducing more private labels.

The online fashion retailer, which has crossed a revenue run rate of $1 billion, also expects to double the number to over $2 billion during this financial year.

"...We crossed a billion dollar run rate this year, we want to cross a $2 billion run rate by 2018 March...We want to be not just unit economic positive but overall profitability. We want to exit the next year with EBIDTA zero January-March 2018," Myntra Chief Executive Officer Ananth Narayanan told PTI.

He added that another focus area for the company this year will be to provide more personalised services to customers.

"We are focusing on four things -- continue to reduce discounting, continue to ramp up private labels, reduce supply chain costs and increase consumer engagement. These are things that will help us achieve our targets," he said.(Read More)