Case Study: U.S.-based Mylan Pharmaceuticals
Aug. 21 – Right on the heels of Ford Motor’s announcement that their global auto sales manufacturing hub would be in India, U.S.-based pharmaceutical giant Mylan said that the company has additional plans to invest in India. With half its global work force of 20,000 persons located in the country, about one-seventh of its global income is from its India operations – but this is also expected to jump significantly.
Mylan plans to acquire Agila Specialties through its Indian subsidiary for US$1.6 billion. If the proposal is accepted, Mylan expects to increase its domestic sales 12-fold by 2018. The deal would also help Agila increase its capacity to 600 million units by 2017, up from its current production of 180 million units. The news comes as Mylan made their latest submission concerning the Agila acquisition to the Indian Department of Industrial Policy and Promotion (DIPP). Continue reading
Aug. 17 – Seventeen new airports are to be constructed during India’s current 12th Five-Year Plan period, the Minister of State for Civil Aviation, K. C. Venugopal, has informed the Central Government. The 12th Five-Year Plan period runs until 2017.
Included are four airports in Karnataka, three in Maharashtra, two in Kerala and one each in Arunchal Pradesh, Goa, Jharkhand, Madhya Pradesh, Puducherry, Rajasthan, Uttar Pradesh and West Bengal. All 17 airports are listed out below, and an accompanying map can be found to the right. Continue reading
May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
Mar. 6 – The second issue of our new issue Asia Briefing Magazine, titled Expanding Your China Business to India and Vietnam, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of March and April.
As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.
Meanwhile, countries such as Vietnam are actively courting these export businesses through tax incentives and preferential policies similar to those that helped China get to where it is today. India, too, with its abundant, young and inexpensive workforce, coupled with a massive consumer market, is looking strikingly similar to China 20 years back. Continue reading
Latest in slew of Sino-Indian joint ventures
Nov. 19 – Both Jaguar and Land Rover vehicles are to be built in China under specially-developed new brands for the domestic market in a US$1.5 billion JV deal announced between JLR, owned by India’s Tata Motors, and China’s Chery Auto. Tata who purchased the British vehicle brands and assembly plants from Ford four years ago, have been highly successful in targeting their upmarket marques at Asian consumers. Previously, the vehicles had largely been the preserve of the American and European markets. The first models to shift production are likely to be the Land Rover Freelander and Defender 4x4s, with luxury Jaguar limousines set to follow. Continue reading
By Daniel Fleishman
Oct. 12 – The days of American dominance over the PC market seem to be coming to a close. According to the research firm Gartner, Lenovo captured a market share of 15.7 percent in the third quarter of 2012, topping HP’s 15.5 percent, ousting the PC giant from the leading position it held for the past six years. Continue reading
Sept. 25 – Last year, China overtook Japan to become the largest importer of thermal coal, effectively granting China great influence over global coal prices. A recent reform proposal regarding China’s coal pricing system suggests that policy makers are anticipating a continual decline in global coal prices, currently at a three-year low of US$90 a ton.
As thermal coal supplies over two-thirds of China’s energy requirements, it has taken slow and careful steps in reforming its coal prices. China is also the world’s largest coal producer, yet in recent years domestic mines have been unable to keep up with the pace of China’s burgeoning power demand. China instead has had to rely on overseas coal suppliers more heavily, already importing approximately 150 million tons since the beginning of this year. Continue reading