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21 Mar 2014

Ukraine crisis may impact Indian pharma units: FICCI

 

The prolonged political crisis in Ukraine could have a bearing on the domestic pharmaceutical companies based there, according to a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).

While the recent developments in Ukraine have had no immediate impact on the businesses of leading Indian pharmaceutical companies based in Ukraine, it is felt that if the situation continues, it could have a bearing on the country’s exchange rate, which would make the landed cost of Indian pharmaceuticals higher, the survey said.

Ukraine is India’s second largest trading partner in the Commonwealth of Independent States after Russia. In 2012-13, India’s total trade with Ukraine was $3.18 billion. Exports of pharmaceuticals from India were $154 million in 2012-13, which is about 30 per cent of India’s total exports to Ukraine.

“The troubled region of Crimea has traditionally accounted for just about 5-6 per cent of the sales of the leading Indian pharmaceutical companies, and is not a large market. However, there have been reasons for concern over a likely impact on the pharmaceutical companies, largely due to a recent devaluation of the local currency (Hryvnia) against the dollar,” FICCI said.

Though industry has staved off the immediate fallout of the crisis in Ukraine, it is worried that if the trend continues, the price of imported products in Ukraine will become expensive. The higher landed cost will ultimately affect the end-consumer.

While it is still early to say whether the recent turn of events would impact pharmaceutical sales in the medium to long term, industry is taking comfort from the absence of any threat in the short run, it said.

Source: The Hindu

http://www.thehindu.com/business/ukraine-crisis-may-impact-indian-pharma-units-ficci/article5801636.ece

 

The Federation of Indian Chambers of Commerce and Industry said yesterday that is the Russia-Ukraine crisis continues for long, it will adversely impact the Indian prhama companies based in Ukraine. This impact will be triggered because the crisis will have a effect on Ukraine’s exchange rate, raising the landed cost of Indian pharmaceuticals higher.

FICCI’s comments come after it assessed the leading Indian pharmaceutical companies based in Ukraine.

The federation said that although recent conflict with Russia will have its impact, the Indian pharmaceutical companies already have their concerns, especially considering the devaluation of Ukrainian currency – Hryvnia – against the US Dollar.

An exchange rate of 8.20 Hryvnia to the US dollar in mid-December had dropped 20% to 9.86 Hryvnia by the beginning of March.

Ukraine is India’s second largest trading partner in the Commonwealth of Independent States after Russia. Exports of pharmaceuticals from India at $154 million accounted for 30% of India’s total exports to Ukrainein in 2012-13. In 2012-13, India’s total trade with Ukraine stood at $3.18 billion.

Among Indian companies, Dr Reddy’s is a key exporter to the region, with about 20% of its revenues coming from Russia and the CIS during fiscal 2013.

- See more at: http://www.theindianrepublic.com/business/russia-crimea-crisis-may-hit-indian-pharma-companies-ukraine-ficci-100029556.html#sthash.a0KlrnSQ.dpuf

The Federation of Indian Chambers of Commerce and Industry said yesterday that is the Russia-Ukraine crisis continues for long, it will adversely impact the Indian prhama companies based in Ukraine. This impact will be triggered because the crisis will have a effect on Ukraine’s exchange rate, raising the landed cost of Indian pharmaceuticals higher.

FICCI’s comments come after it assessed the leading Indian pharmaceutical companies based in Ukraine.

The federation said that although recent conflict with Russia will have its impact, the Indian pharmaceutical companies already have their concerns, especially considering the devaluation of Ukrainian currency – Hryvnia – against the US Dollar.

An exchange rate of 8.20 Hryvnia to the US dollar in mid-December had dropped 20% to 9.86 Hryvnia by the beginning of March.

Ukraine is India’s second largest trading partner in the Commonwealth of Independent States after Russia. Exports of pharmaceuticals from India at $154 million accounted for 30% of India’s total exports to Ukrainein in 2012-13. In 2012-13, India’s total trade with Ukraine stood at $3.18 billion.

Among Indian companies, Dr Reddy’s is a key exporter to the region, with about 20% of its revenues coming from Russia and the CIS during fiscal 2013.

- See more at: http://www.theindianrepublic.com/business/russia-crimea-crisis-may-hit-indian-pharma-companies-ukraine-ficci-100029556.html#sthash.a0KlrnSQ.dpuf
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