An indispensible guide to help Indian companies venture abroad
Cash rich Indian companies are looking to spread their wings abroad in search of viable opportunities for acquisitions. Several Indian companies have already made their mark in global markets and others are keen to follow suit. Although enormous opportunities and potential for global expansion exist, it brings in its wake some rather piquant issues which need careful deliberation. Longtail International's 'A Guide to International Financial Centres: What Indian investors need to know' should serve as a prime resource for Indian companies and businessmen to arm themselves for the challenges posed while investing abroad.
Every financial investment destination presents its own set of opportunities and challenges and hence, choosing the right destination involves a lot of homework. Each international financial centre from New York to London and from Mauritius to Singapore differs in terms of foreign investment policies, regulatory and tax environment. The wrong call may expose investors to high degree of risk and lead to substantial losses. Choosing the right destination will ensure just reward for your patience and determination. This book serves as a ready reckoner for Indian investors to help in identifying potential investment destinations. Compiled by some of the world's foremost experts on taxation, legal and other matters, the guide delves deep into the intricacies of each IFC and attempts to demystify the investment climate abroad. It examines 19 such financial centres across the globe including Bahrain, Barbados, Cayman Islands, Dubai, Hong Kong, Seychelles and Switzerland, among others. Some of the prominent contributories to the book include Kiran Mazumdar Shaw, CEO and founder of Biocon, Zia Mody, Legal Consultant and Founder of AZB & Partners, Dinesh Kanabar, Deputy Chief Executive Officer and Chairman Tax for KPMG, India and Nishith Desai, International Tax, Corporate Lawyer and Founder of Nishith Desai Association (NDA).
"You've got to get a lot of advice", asserts Kiran Mazumdar Shaw, who has made managing global growth a study in success for Indian diaspora. "Atleast get two or three viewpoints before you do these acquisitions. The legal complexities of dealing with US companies can be quite serious, and you've got to understand that from the outset. We acquired the assets of a US biotech company and the whole process was a huge learning curve. It wasn't simple. And not just the US but Europe too. And we completed the tax structuring exercise before we even made the German acquisition. Because there again you, can get hit very badly. It's a learning process and it is very important to do your homework", she adds. Other advisors warn that Indian businesspeople often "Shoot without aiming", "Don't plan for the future" and ignore the problems of "cultural mismatches" as they tend to keep an "Indian mindset" when outside India.
Written in simple and concise manner, the guide provides an easy understanding of the complexities in international taxation and equips the reader with the best expert advice available to make cost and tax effective investments around the world.
Hiring a financial planner or advisor for your money management needs is perhaps one of the most...
The proposed funding of Rs10,000 crore, which includes substantial contribution from the private pharma industry under the PPP model, is likely to bring about a favourable environment for drug innovation
The government is planning to set up a Rs 10,000-crore venture capital (VC) fund for financing new drug discovery projects in the country, reports PTI.
"We will soon invite bids from consultancy firms for establishing a venture capital fund in public-private partnership (PPP) that would finance research and development (R&D) activities in the pharmaceutical segment," Department of Pharmaceuticals secretary Ashok Kumar told reporters on the sidelines of a Ficci event.
The department will soon invite bids from advisors to prepare a detailed project report on the proposed fund, Mr Kumar said.
The initial target will be to raise up to Rs3,000 crore by 2011-12, and it would be gradually increased to Rs10,000 crore by 2015, he added.
National Institute of Public Finance and Policy (NIPFP) is advising the department in the process of selecting an agency to design the fund.
Mr Kumar said that though the government aims to make India a hub for new drug development activities, no institutional funding is currently available for the purpose in the country.
According to information available, the country spends about Rs2,000 crore every year on R&D. While the government contributes Rs500 crore to this, the rest comes from the private sector.
The proposed funding of Rs10,000 crore, which includes substantial contribution from the private pharma industry under the PPP model, is likely to bring about a favourable environment for drug innovation, Mr Kumar said.
Last year, the Department of Pharmaceuticals had prepared a white paper on promoting R&D funding in the country, and submitted the proposal to the Prime Minister's Office (PMO) for approval.
"The present state of infrastructure and research and development of the pharma industry in the country is rather weak," Mr Kumar said.
As per the proposal, the government intends to undertake proactive steps on four fronts — building infrastructure for talent and research, encouraging public-private partnerships in infrastructure development, providing financial incentives to encourage innovation, and shaping a favourable regulatory environment.