Wednesday 16 April 2014
An Incredible M&A
The second largest acquisition Indian pharmaceutical industry, SunPharma’s $4 billion acquisition of Ranbaxy is making a lot of buzz in the world. What this acquisition is pointing towards? The size of the deal is greater than anyone’s imagination so there will be a great deal of hope invested by SunPharma founder Mr Dilip Sanghvi in this acquisition.
Through this SunPharma has emerged as India’s most valuable company in the pharmaceutical segment. SunPharma was started 20 years back with a capital of 5 lakh made crores within a short time span. Not only that, SunPharma became the fifth largest pharmaceutical company in the world, through this deal, which specializes in speciality generic medicine. This is obviously a great victory for a company which started off with a single manufacturing unit in 1983, which grew so big that they started operating in 65 countries. With this move their revenue will be almost double to $4.3 million
Lets think about the global impacts of this acquisition. India will be regaining its reputation as the provider for quality and affordable medicines. The SunPharma- Ranbaxy association will help to form a formidable generic power house, which will make an impact in world’s pharmaceutical industry.
Having effectively managed compliance issues at Caraco Pharmaceuticals, subsidiary of SunPharma in the US, SunPharma is known for the efficient administrative service. They have managed the compliance issues successfully than Ranbaxy. The track records of SunPharma and Ranbaxy in the US market is strong to reinstate the lost faith in Indiann Pharma industry. Mr Dilip is known for his administerial skills while handling Israeli based Taro Pharmaceuticals.
Another possibility which came up through this acquisition is that, without getting enthangled in the FDI policies Indian companies can work well through M&A s. The strategy of M& A has cleared all the hassles of red tapism and given a fresh life to the MNC s as well as other companies also.
Tuesday 15 April 2014
Barra and Her Woes Embedded in a Conspiracy Theory
It is not science fiction story, but a naked truth that 2.6 million cars were recalled by GM for faulty ignition switches, which resulted in13 deaths and more than 40 crashed. Well, it was no less than a mystery. At the end GM’s CEO Ms Marry Barra could be declared as a scapegoat and she maybe forced to take charge of all the mishap and it looks very unfortunate for the first ever women CEO of any automobile maker, having recently took the charge.
In a dramatic movement GM's CEO, Dan Akerson was appointed as the Vice Chairman of a relatively small private equity form Carlyle Group, from where he came to GM. His stepping down from GM’s CEO post was on the personal grounds though.
Was it because he was aware that the recall issue is going to come up and he did not want get crucified? He served GM through the Chapter 11 bankruptcy and even was in the leadership when GM released an IPO. Was it because that GM hired a female CEO, or the misconception that a female CEO will easily come out clean? Ms Barra had to go through severe questionnaire session by the female senators during the Congressional sessions.
Beyond doubts, Akerson’s stepping down raises eyebrows, even though the conspiracy theory is with plenty of loopholes. His public comments proved that he had severe anger and opposition on Ms Barra becoming his successor. Ms Barra had strong opponents for CEO post and that means that many of them were not aware that the disaster is near.
In the midst of all these woes, Barra is emerging as a winner by her right moves and she even did a public apology, Surprising fact is that she learned the technical issue behind the faulty ignition switches only after becoming the CEO. She has been heavily supported by the public and even became a public face for GM. She held public meetings VC s, and even went out to meet the victim’s family.
She has hired former US Attorney, Anton Valukas in order to conduct an enquiry and other efficient attorney Kenneth Feinberg, who is handling the funds of 9/11 and Boston bombing victims, for a possible compensation.
Her challenges are not yet over, now she has to get through the order to park all faulty cars until they are fixed. Her contention will be to prove the parking unnecessary. The reimbursement issues will be another heavy task. Finally Barra has to face Congress to explain what went wrong and what her action plan is to support her company as well as the clients. And of course that is not going to bean easy thing.
In a dramatic movement GM's CEO, Dan Akerson was appointed as the Vice Chairman of a relatively small private equity form Carlyle Group, from where he came to GM. His stepping down from GM’s CEO post was on the personal grounds though.
Was it because he was aware that the recall issue is going to come up and he did not want get crucified? He served GM through the Chapter 11 bankruptcy and even was in the leadership when GM released an IPO. Was it because that GM hired a female CEO, or the misconception that a female CEO will easily come out clean? Ms Barra had to go through severe questionnaire session by the female senators during the Congressional sessions.
Beyond doubts, Akerson’s stepping down raises eyebrows, even though the conspiracy theory is with plenty of loopholes. His public comments proved that he had severe anger and opposition on Ms Barra becoming his successor. Ms Barra had strong opponents for CEO post and that means that many of them were not aware that the disaster is near.
In the midst of all these woes, Barra is emerging as a winner by her right moves and she even did a public apology, Surprising fact is that she learned the technical issue behind the faulty ignition switches only after becoming the CEO. She has been heavily supported by the public and even became a public face for GM. She held public meetings VC s, and even went out to meet the victim’s family.
She has hired former US Attorney, Anton Valukas in order to conduct an enquiry and other efficient attorney Kenneth Feinberg, who is handling the funds of 9/11 and Boston bombing victims, for a possible compensation.
Her challenges are not yet over, now she has to get through the order to park all faulty cars until they are fixed. Her contention will be to prove the parking unnecessary. The reimbursement issues will be another heavy task. Finally Barra has to face Congress to explain what went wrong and what her action plan is to support her company as well as the clients. And of course that is not going to bean easy thing.
Friday 4 April 2014
An Analysis on Mobile Money
Mobile money is definitely a proven currency exchanging system that enables consumers to transfer money easily as a text message. Cell phones, by using call time credit, become a mobile phone debit charge cards. "It is safer and less expensive when you transfer cash than traditional options which are sluggish and expensive. Its progress in the market will certainly depend on regulating authorities recognizing this particular potential
These days, while people may have mobile , yet they might not have a bank account – this can make cell phones an immediate avenue to help nearly 1 / 2 the actual world’s unbanked people. The idea of branchless banking is grown ever since the technology sector has had a boom. In the midst of all these technological advancements the idea of branchless banking is raising many questions like
• How far this can be useful for the poor people?
• Is it cost effective?
• Can this technology meet all the requirements of the people?
Various Branchless Banking Services across the World are
• M-Pesa
• Banco Postal
• Bradesco
• Caixa Economica
• Wing Money
• MTN Mobile Money
• Orange Money
• EKO
• FINO
• Zap
• Easypaisa
• GCash
• Smart Money
• WIZZIT
Why Poor Economies Choose More for Mobile Money
Getting a bank account is not easy in most of the countries. In India many documents are required, some people are blacklisted by the banks, getting bank accounts are sometimes costlier, some banks are yet to open a branch in rural areas and the time and effort behind getting a bank account is very huge. Most of the poor population prefers informal lending despite the huge interest rates. The number of women who don’t have a bank account is high in almost all countries.
Mobile Money in Indian Scenario
FINO PayTech Limited
It is the biggest business correspondence service in India mainly serving the underprivileged by providing financial services like savings, deposits, insurance, EBT schemes and remittance across India? They have reached out to 522 districts all over India. FINO just isn't a bank, but rather a technology as well as a function provider . Started in 2006, FINO is promoted by more than 20 banks in India.
EKO
EKO works for ICICI, SBI and Yes Bank, mainly serves the migrants for their banking needs. It provides micro insurance policies of Bharti Axa as well. They have around 6000 transactions per day within their 700 networks. They operate via retailers through out these places.
Even though the sector has various challenges like deploying an efficient distribution network, customer acquisition and regulatory methods, the idea mobile money is advancing especially among the poor people in all economies.
These days, while people may have mobile , yet they might not have a bank account – this can make cell phones an immediate avenue to help nearly 1 / 2 the actual world’s unbanked people. The idea of branchless banking is grown ever since the technology sector has had a boom. In the midst of all these technological advancements the idea of branchless banking is raising many questions like
• How far this can be useful for the poor people?
• Is it cost effective?
• Can this technology meet all the requirements of the people?
Various Branchless Banking Services across the World are
• M-Pesa
• Banco Postal
• Bradesco
• Caixa Economica
• Wing Money
• MTN Mobile Money
• Orange Money
• EKO
• FINO
• Zap
• Easypaisa
• GCash
• Smart Money
• WIZZIT
Why Poor Economies Choose More for Mobile Money
Getting a bank account is not easy in most of the countries. In India many documents are required, some people are blacklisted by the banks, getting bank accounts are sometimes costlier, some banks are yet to open a branch in rural areas and the time and effort behind getting a bank account is very huge. Most of the poor population prefers informal lending despite the huge interest rates. The number of women who don’t have a bank account is high in almost all countries.
Mobile Money in Indian Scenario
FINO PayTech Limited
It is the biggest business correspondence service in India mainly serving the underprivileged by providing financial services like savings, deposits, insurance, EBT schemes and remittance across India? They have reached out to 522 districts all over India. FINO just isn't a bank, but rather a technology as well as a function provider . Started in 2006, FINO is promoted by more than 20 banks in India.
EKO
EKO works for ICICI, SBI and Yes Bank, mainly serves the migrants for their banking needs. It provides micro insurance policies of Bharti Axa as well. They have around 6000 transactions per day within their 700 networks. They operate via retailers through out these places.
Even though the sector has various challenges like deploying an efficient distribution network, customer acquisition and regulatory methods, the idea mobile money is advancing especially among the poor people in all economies.
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