Maruti Suzuki recalls 63,493 units of Ciaz, Ertiga, XL6
Maruti Suzuki on Friday announced to recall 63,493 units of 'petrol smart hybrid' variants of Ciaz, Ertiga and XL6 models due to a likely issue with their motor generator units (MGU).
 
In a regulatory filing, the company said: "A possible defect may have occurred in the MGU during manufacturing by an overseas global part supplier." 
 
The company said that starting Friday, owners of the vehicles under this recall campaign would be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part. 
 
"Maruti Suzuki has decided to proactively recall the vehicles for inspection and those found 'OK' will be released immediately. Vehicles requiring replacement of faulty part will be retained for part replacement free of cost. Keeping in view customer convenience, Maruti Suzuki dealers may make alternate mobility arrangements in such cases, if required," the filing said. 
 
Recall campaigns are undertaken globally to rectify faults that may be potential safety defects. At 2.47 p.m. on Friday, shares of the company on the BSE was trading at Rs 6,898.55, lower by Rs 107.05 or 1.53 per cent from its previous close. 
 
Earlier in the week, the company announced to increase the prices of its vehicles from January 2020, which it attributed to the rise in the input costs. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Indian Pharma Largely Unaffected by Proposed Caps on Trade Margin, Says Fitch Ratings
    India's proposal to cap trade margins available to drug distributors will not significantly hurt the profitability of pharmaceutical companies, as the proposal does not restrict the margins at which pharma companies sell to distributors, says Fitch Ratings.
     
    The National Pharmaceutical Pricing Authority (NPPA)—the regulatory body responsible for drug-pricing matters—is making progress in reaching a consensus with pharma companies and distributors to cap the trade margins for drugs that are not under explicit price control. 
     
    The proposal builds on the regulator's success in cutting cancer drug prices by as much as 85% following a similar exercise to cap trade margins.
     
    The proposal, which aims to make drugs more affordable, will cover an estimated 80% of generic formulations in India. 
     
    "However," Fitch says, "we do not believe it will significantly disrupt pharma distribution, even if implemented in an all-encompassing way, as currently reported. This is because the existing trade margin for the bulk of generic drugs, which are sold under a 'branded generics' model, is already broadly consistent with the proposed 30% level, with wholesale distributors getting 10% and retail chemists 20% of the printed drug price."
     
    India's is broadly a branded generics market in which pharma companies sell generic drugs under their own brands, unlike some larger markets globally. This business model, which accounts for 70%-80% of generic drugs, is mostly physician driven, as most prescriptions include the brand name rather than only the generic formula. 
     
    The moderate level of trade margins under this business model reflect the direct involvement of pharma companies in engaging with physicians to promote their product.
     
    Fitch says, "We believe the proposal is likely to have a greater effect on the 'generic-generic' segment, in which pharma companies sell their drugs in bulk to distributors who retain higher margins as they handle sales and marketing expenses. This may temporarily disrupt sales, especially in rural areas, but will also present opportunities for larger pharma companies to gradually establish a greater presence. The proposal is also likely to affect the margins of institutional buyers, such as hospital chains that procure in bulk directly from pharma companies, bargaining for higher margins because of direct access to patients in acute need for niche medicines."
     
    Within Fitch's rated portfolio, Glenmark Pharmaceuticals Ltd derived a large 32% of its revenue from the domestic market in the first half of the financial year ending September 2019. Nonetheless, the ratings agency says, "the company's business is mostly focused on branded generics under the retail model, which accounted for more than 90% of its sales in India. Hence, we do not believe the proposal will significantly affect the company."
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    COMMENTS

    Nakul Kumar Reddy

    3 months ago

    Providing medicine at lowest price to public is the most appreciated thing,
    Please continue .....

    Finally, IRDAI Identifies Sensitive Posts in Compliance with CVC Guidelines
    The Insurance Regulatory and Development Authority of India (IRDAI) has finally decided to follow guidelines issued by the Central Vigilance Commission (CVC) and issued order identifying sensitive posts. IRDAI took more than a year to identify sensitive posts, despite a clear guidelines by CVC in August 2018. The circular too seems to have issued after a question was raised in the Rajya Sabha. 
     
    Anurag Thakur, minister of state for finance, while responding to a question in Rajya Sabha on Tuesday, says, "IRDAI...vide order dated 26 November 2019 has identified sensitive posts in the departments, which include positions handling registration and renewals of insurance intermediaries viz. corporate agents, insurance brokers, insurance marketing firms, surveyors and loss assessors and third party administrators, and those handling insurance product approvals."
     
    Member of Parliament (MO) Javed Ali Khan had asked the about identification of sensitive post by IRDAI to prevent corruption as per the guidelines of CVC issued on 23 August 2018.
     
    In its order, IRDAI has identified sensitive post and staff working on these posts for three years, would be rotated to avoid developing vested interests. However, all the posts identified by the insurance regulator are of the rank of deputy general manager (DGM) and below. This means all posts above the DGM level are not sensitive and staffer can continue to occupy it beyond three years. 
     
     
    "All the officer or employees working on the above mentioned sensitive posts are to be strictly rotated on completion of three years of holding the post. In case, officer or employees are handling company wise profile, then they should be allocated different companies every three years. In cases, where it is not possible to change the department of an officer or employee, then rotation of portfolio within the department should be done every three years. In all cases, rotation of officers or employees, who have completed five years in the existing position should be done," IRDAI says in its order.   
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