Forbes India Conversations: From Globalisation To Glocalisation
Forbes India, in association with BNP Paribas, held the second session of the Forbes India Conversations: The Thought Leadership Forum, on January 16, 2018, bringing together senior business leaders to share their insights on ‘The Future of Globalisation’. Forbes India Editor Brian Carvalho was in conversation with Crisil’s MD & CEO Ashu Suyash; Umang Vohra, CEO of Cipla; Annaswamy Vaidheesh, vice president, South Asia and MD, GlaxoSmithKline Pharmaceuticals; Vikash Mittersain, chairman and MD, Nazara Technologies; and Joris Dierckx, country head of BNP Paribas for India. ‘Glocalisation’, they unanimously said, is the emerging trend even as natural barriers to globalisation are being demolished rapidly. Some also said that one does not need scale anymore to generate efficiencies. Excerpts:
Brian Carvalho: In today’s world, globalisation appears to have many counter buzzwords. Among them are protectionism, nationalism and de-globalisation. What is the state and fate of globalisation today?
Ashu Suyash: Those who do not see any benefits raise the issues. The issues are emotional and not really rational and we all know that anything which starts off emotionally, appeals to everybody, including the rational people. The reality is that when you get to the halfway mark, risks and the negative impact of going back outweigh the challenges of going forward. What’s driving the pushback is that the benefits of globalisation are uneven. But nobody wants to do business only in a [particular] country. Even a domestic business has aspirations outside because the pool is so much larger, and that alone allows leaders, politicians and people to step up their game.
Technological advancements are linked to this issue. To me, the noise around protectionism and job losses is really whether technology is invading our space and people are losing jobs. I don’t think economies and companies are geared and ready for the whole technology wave.
Umang Vohra: Globalisation can be linked to goods, services and credit, but I am unsure if that is how the world is going to operate in the future. I don’t think so. Interconnectivity in the world has escalated. Therefore, the definition of globalisation ought to change from goods and services and possibly credits.
Facebook has about 1.6 billion subscribers. India’s population is 1.3 billion, China is another 1.3-1.4 billion. I look at interconnectedness as being at an all-time high in the world. Ashu, you brought out a great point on technology; I think we underestimate the impact that interconnectedness and technology will have on globalisation. I don’t think companies of the future with high market valuations and customers will necessarily be people with huge tangible assets on the floor.
Vikash Mittersain: I personally think globalisation is an old word already.We need to move on to something called glocalisation; there is going to be no reversal of globalisation. We are too far down that path. For products like ours, which are games, we do a lot of localisation—choosing the language, the way it is operated and the way we work. A product is the same, but the approach is local. The best way to do a ‘manufacturing globalisation’ is to have a local company, licence a product to them and manufacture it locally under the same brand.
Carvalho: So, globalisation may apply very well to a company like GlaxoSmithKline Pharma?
Annaswamy Vaidheesh: Technology is going to move to such an extent that all the barriers are going to be lost between different countries… of course, there will be antibody responses from various quarters which is what we are seeing in the form of Brexit. I see that more as an antibody response. I think that will all settle down. Globalisation per se has reached a different dimension. It’s no longer the same dimension as we used to talk about in the past. It’s a different world that we live in.
Carvalho: Joris, probably the French pride is similar to the English pride of not allowing an American company to come in…
Joris Dierckx: Oh, I am not sure, but General Electric bought a part [power and grid business] of Alstom right?
Carvalho: [France] did reject Brexit at the end of the day, right?
Dierckx: A lot has already been said, but I think that France is at the forefront; I agree with everything that has been said. It [globalisation] is irreversible because it has gone far. The next phase of globalisation will probably be more ideation and also allowing smaller operators, in services or manufacturing, to provide local needs or specialised needs… through technology, those ideas can flow much freer. I can only see that increasing.
Vaidheesh: There are couple of things that generally do not allow globalisation to happen, typically religion, culture, and the so-called tribal attitude of various countries. I think that was actually preventing globalisation from happening for a long time, but with the youth having access to technology, they are going to bypass these barriers. Today, you don’t need to go [through the religious route] because they are all gaining access online through their mobile phones—in their personal space you can reach out to them and communicate through your gaming—like one of my friends who is in Stanford… they are developing games for health, for children to consume food.
Mittersain: It is happening for health and for education, so almost everything is lending itself to games. I get several requests….
Vaidheesh: I think the natural barriers to globalisation are about to get demolished. Now those things may or may not exist.
Carvalho: But we have seen this wave of nationalism and the code of the Trumpism. Is this preservation of national interests? We are seeing probably not a similar wave, but a slightly different kind of wave of nationalism here, of Indianness. So, we will have a Baba Ramdev versus Hindustan Unilever or maybe a J&J or GSK. Can both coexist, should they or will they coexist in such a market?
Mittersain: That is glocalisation in my opinion. It is global in nature, but it also local in nature.
Vaidheesh: No, if you look at even earlier days, there was Hindustan Unilever versus Nirma. I think these are the essentials of operating in different markets… you find some number of local companies which compete with multinational firms or even China. For example, Baidu now competes with Indian companies.
Suyash: To answer your question, it will coexist. That does not mean it will be harmonious all the time. It will mean that global companies will localise and local companies will globalise because for both, to serve the broader world is more important as it is the larger playing ground; nobody likes a small playing ground. McDonald’s, for instance, created a different SOP [standard operating procedure] for India finally, as did Domino’s and you have the paneer and chicken tikka versions. Similar patterns are seen across other regions of Asia.
Carvalho: There is one more aspect: Something which we saw 10 years ago, a massive phase of asset-heavy consolidation… Hindalco’s acquisition of Novelis was one of the last of its type; that was how we saw globalisation then. Has that changed? There are acquisitions taking place, but how has that asset-heavy strategy kind of changed over the last 10 years with technology playing a role and with companies getting more connected?
Suyash: I would give Crisil’s example. We were set up as an Indian company, floated by institutions, but at present, 65 percent of Crisil’s revenue comes from global companies and clients based and serviced in the developed markets. This is an asset-light strategy. I would say algorithmic style intellectual capabilities are critical because we are an analytics firm. Now did we plan it that way? No. So to me, it was asset-heavy in the past, because that was the end of what I would call the industrial revolution. The new industrial revolution is happening as we speak and it is cutting-edge formulation technology because consumers of today are not satisfied with the average. They want the best, be it the gaming industry, the banking industry, the pharma industry or the food industry… in the food industry, globalisation is not acquisition—it is acquisition of some chefs.
Dierckx: There is also a potential counter-revolution where technology allows [you] to go away from the big centralised systems to much more decentralised types. You don’t necessarily need the scale anymore to generate efficiencies.
Mittersain: [To Suyash]: You are talking about asset-light or asset-heavy. Our company actually has zero assets and owns nothing. We only own the IT and developmental capabilities, that are also not our own. For a company of our size, we have only 100 people whereas our turnover size should be [equivalent to] 1,000 people, so it’s all outsourced. We just do the ideation and the last mile. Wherever we can find the centres of excellence for that product, we create those and that’s where the revenues come from. I believe that even manufacturing should be asset-light. There is no point in putting up plants. There is enough manufacturing capability available around the world. You get it made anywhere to your specification. You control the quality, you control the design and ship it wherever you want. That’s where globalisation and glocalisation comes in. I mean why does one need a huge investment to increase the turnover by putting up a plant? That is old thinking.
Vaidheesh: That’s true even in pharma. In fact, even the government should say: ‘You guys come in—I will give you money to do research in India for drug discovery and will syndicate your risk and the patent. The company should give it free to India and the rest, you take it to the world.’
So, instead of breaking the patent, India can create a patent. That’s the way the government should start thinking.
Suyash: All this thinking around patents promotion, by setting up these innovation labs and incubation hubs, is interesting. There is a huge need in the standardised vertical called the old economy because this lends itself so naturally to it, but it is not yet on the policy agenda, but I would vote for it.
This article originally appeared in Forbes.
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Cipla Receives Final Approval for Generic Sustiva® (Efavirenz Tablets 600mg)
Cipla Limited, today announced that it has received final approval for its Abbreviated New Drug Application (ANDA) for Efavirenz Tablets 600mg from the United States Food and Drug Administration (US FDA).
Cipla’s Efavirenz Tablets 600mg is AB-rated generic therapeutic equivalent version of Bristol-Myers Squibb Pharma Company’s, Sustiva®. It is indicated in combination with other antiretroviral agents for the treatment of human immunodeficiency virus type 1 infection in adults and in pediatric patients at least 3 months old and weighing at least 3.5 kg.
According to IQVIA (IMS Health), Sustiva® and its generic equivalents had US sales of approximately $105M for the 12-month period ending April 2018.
The product is available for shipping immediately.
Cipla Receives Final Approval for Generic Isuprel® (Isoproterenol Hydrochloride Injection USP, 0.2mg/mL)
Cipla Limited (“Cipla”), today announced that it has received final approval for its Abbreviated New Drug Application (ANDA) for Isoproterenol Hydrochloride Injection USP, 0.2mg/mL, single-use sterile Ampoule from the United States Food and Drug Administration (US FDA).
- Cipla’s Isoproterenol Hydrochloride Injection USP, 0.2mg/mL, ampoule is AP-rated generic therapeutic equivalent version of Hospira Inc’s Isuprel® Injection, 0.2mg/ml and is indicated for the treatment of…
- Mild or transient episodes of heart. block that do not require electric shock or pacemaker therapy.
Serious episodes of heart block and Adams-Stokes attacks (except when caused by ventricular tachycardia or fibrillation).
- Use in cardiac arrest until electric shock or pacemaker therapy, the treatments of choice, is available.
Bronchospasm occurring during anesthesia.
- As an adjunct to fluid and electrolyte replacement therapy and the use of other drugs and procedures in the treatment of hypovolemic and septic shock, low cardiac output (hypoperfusion) states, congestive heart failure, and cardiogenic shock.
According to IQVIA (IMS Health), Isuprel Injection and its generic equivalents had US sales of approximately $148M for the 12-month period ending April 2018.
Cipla Opens Up To Crowd Sourcing Innovation
Cipla has outlined its intent to incubate disruptive ideas in the healthcare space, along the lines of similar initiatives to accelerate innovation from US/European big pharma. It hopes that this “culture” will expand in India.
Cipla Expects to back disruptive ideas in the healthcare space
Cipla Ltd. has initiated efforts to back open innovation/crowd sourcing models in the healthcare space, breaking new ground as an Indian company entering a domain that has primarily seen the active engagement of big US and European pharma groups.
The Indian firm has introduced “Innoventia”, through which it expects to crowd source and incubate“disruptive” ideas across the healthcare spectrum ranging from pharma, diagnostics, devices, digital and services, to “any other way to help in taking Cipla’s purpose of ‘Caring for Life’ forward.”
Disruptive ideas under the Innoventia innovation challenge that make the cut stand a chance to be partnered by Cipla; the Mumbai-headquartered company indicated that it could also invest in and incubate a unique idea with $15m especially allocated for this purpose.
“Investment size may vary from a “few crores of rupees (1cr=10m) to $15m,” a statement from Innoventia said. Innoventia expects to back ideas at any stage – ideation, proof of concept or in early revenue stage; the idea should, however, have “growth potential” over the next three-five years.
Incubating The Next Set Of Start-Ups
Cipla told Scrip that it hopes some of these new ventures will help take the healthcare sector to the “next level” as it undergoes major transformation.
“Across the world, large pharma invests in new ideas and we want to bring the same culture in India. As a large and responsible corporate citizen, Cipla feels it is its responsibility to incubate the next set of start-ups in healthcare,” Cipla explained.
Cipla’s Innoventia initiative, claimed to be the first such effort by an Indian pharma company launched globally, but with a special focus on Indian start-ups, is interesting in the backdrop of the general trend of domestic pharmaceutical firms and venture capitals seemingly more willing to “shop abroad” rather than to back home-grown innovation. Several Indian entrepreneurs including Sun Pharmaceutical Industries Ltd. founder Dilip Shanghvi and Biocon Ltd. chair Kiran Mazumdar-Shaw are, however, known to have made investments in their personal capacity to back promising young firms.
Innoventia also comes at an interesting juncture as front-line Indian companies transition from pure generic plays to embrace complex/specialty products; some are also developing new drugs. Acquiring late-stage opportunities and targeting areas that have unmet needs or provide clinical advantage are expected to be part of strategic efforts to supplement internal pipelines, top industry executives have previously indicated. It will be interesting to see if more Indian firms open up to similar incubation ideas.
Navroz Mahudawala, managing director of Candle Partners, a boutique investment banking firm, believes that Cipla being a larger firm with a “slightly wider corporate initiatives gamut” is more of an exception and it’s unlikely many other Indian firms would follow suit.
“Majority of the large and mid-sized companies today are completely embroiled in sorting out the domestic pricing and US FDA issues currently. There is a lot of senior management bandwidth which seems to be dedicated on day-to-day operational issues rather than strategic initiatives for most large Indian companies,” Mahudawala told Scrip.
As Flexible As Possible
While the details around Innoventia are not immediately clear Cipla underscored that it would be flexible with a partnership and investment model, should a start-up want to continue to be “perceived as independent rather than an arm of a large pharma company.”
On comparisons with similar large initiatives in the space such as Johnson & Johnson’s JLABS and Bayer AG’s Grants4Targets, Cipla said: “We believe our focus across the entire healthcare spectrum is wider than more specific pharma focus. We also believe our support – across funding, incubation, commercial agreements, mentorship – is vaster than many other events.”
JLABS, which provides resident emerging firms with a capital efficient and resource-rich environment, is built around a “no-strings attached” model. Beyond infrastructure, JLABS resident firms can also access to Johnson & Johnson Innovation’s broader network, which includes R&D and therapeutic area expertise, deal-making teams and venture capital arm JJDC. Cipla also appears to be flexible in how intellectual property issues could be dealt with. On whether Cipla will generally have the first right of refusal to ideas incubated under Innoventia and also joint ownership around the intellectual property, the company said that Innoventia would be “as flexible as possible”, keeping the “inclinations” of the start-ups in mind.
“Our learning has been that the best start-ups would want that freedom to choose and we are prepared for that.” JLABS companies typically retain complete intellectual property and equity in their companies and can do deals – or not – with J&J or its competitors.
This article originally appeared on Scrip.
“Nicotex Looks Like Regular Chewing Gum; Consumers Tend To Chew It Like That…”
“Nicotex looks like regular chewing gum; consumers tend to chew it like that…”…says Anshul Mishra, category director, Cipla, about her new ad for Nicotex, that is heavy on ‘product demo’ to the point of instructing people exactly ‘how’ to chew it.
“Sahi Dosage, Sahi Tareeka, Sahi Result,” that’s the message for viewers in the latest commercial for Nicotex, a range of nicotine chewing gum by pharmaceutical company Cipla. The product is aimed at helping smokers quit the habit. The 21-second long TV commercial closes with the brand’s tagline, a reassuring “Nicotex, it works.”
Nicotex has released a host of ads over the years. Its TVC #UquitIQuit from around three years ago shows a couple of friends engrossed in a cricket match on TV. When one of them lights a cigarette, the other dares him to give up smoking if he himself, ditches his love for fried snacks. Thus, #UquitIQuit.
Another TVC from around a year ago shows two old buddies meeting up at a school reunion. They remember how one introduced the other to smoking years ago. As it turned out, the one that introduced the other to the habit had quit with help from Nicotex. He goes on to recommend the nicotine gum to his buddy who’s tired of just promising his wife that he’ll quit smoking. But unlike these ad films, the latest one aims to ‘educate’ the viewers about the ‘correct’ way of using the product. Taking the correct ‘dosage’ of what is not another ‘ chewing gum.’
Speaking to afaqs! Anshul Mishra, category director, Cipla Health Ltd. discusses the motive and the plan behind choosing this particular format for the ad film.
Mishra says, “The ads for Nicotex are rooted in insights that we gather from our consumers we are targeting. In this case, it is the smokers. We found out from internal consumer surveys that there are two strong beliefs in smokers who plan to quit; firstly, most Indian smokers consider themselves heavy smokers, even if they smoke seven, ten or fifteen cigarettes a day. Thus, they choose a stronger dosage of the product thinking a stronger dose would help them quit faster. Secondly, Nicotex also looks like regular gum and consumers tend to chew it like chewing gum. It is very important to choose the right dosage. Nicotex is available in two dosages, 2mg and 4mg. The 2mg dose is sufficient for the ones who smoke 7-15 cigarettes but is counter to the normally held belief of choosing the heavier dose. Again, chewing it like regular chewing gum causes uneasiness. Since the consumer base is growing, it is critical for us to educate the consumer. The ad is centred on the right way of consuming the product.”
Speaking about the media planning for Nicotex’s ad and choosing a TVC as a medium for delivering the message to the target consumer, Mishra says, “A consumer might be exposed to a bunch of ads during a break. A consumer, who is looking for a particular product, tends to notice the particular product ad from the bunch. I think it’s really about being present where the main consumer is; whether it is the channel or the placement of the ad etc. A consumer who intends to quit tends to notice our ad more than the one who doesn’t. And there are always viewers who might not want to quit and do not notice the product. But there will always be some who will imbibe it and might give the product a thought the next time they step out.”
Mishra also tells afaqs! about Nicotex’s new ad campaign ‘Ek cigarette kam.’ “We are sending a message that it can be done. It is about taking baby steps towards quitting smoking. We just released the ‘Ek cigarette kam’ anthem and there is more to come. World No Tobacco Day is on May 31, which is right around the corner and it is the right time for the campaign,” Mishra says.
Speaking about using the age-old style of exhibiting the product and its features in an ad, Anuraag Khandelwal – executive creative director and creative head of Soho Square, the agency that crafted the ad, says, “Irrespective of the era, the problem defines the solve. Incorrect usage or dosage directly impacts the efficacy of Nicotex. The message is technical, so we kept the delivery simple.”
While speaking about challenges in preparing the ad film, Khandelwal says, “The key challenge was to keep the message uncomplicated. I mean it is very easy to go down a rabbit hole of information trying to say everything. Instead, only what is important was retained. For this piece, we decided to keep it in its simplest and most relatable form.”
afaqs! spoke to industry experts for their take on the Nicotex commercial.
“It’s a very tough category and this seems like an ‘extra-mild version’ infomercial,” says Viren Razdan, managing director, Brand-Nomics, a strategy consulting company.
“In the past, hard campaigns have run prompting/ challenging smokers to quit the habit, so perhaps this soft commercial is for people with the intent of quitting (though, as any smoker will tell you, half are perpetually in that mode). I am sure this campaign would have other forms of activation; sampling to generate trials and get familiar with the product. On its own, it’s a sweet, harmless infomercial,” Razdan says.
Praful Akali, founder and MD, Medulla Communications, an agency that specialises in healthcare communication, is of the opinion that there are more cost-effective ways to deliver a message to consumers who are already using the product.
Akali says, “The ad seems to be focused on educating consumers on the right way to use the product. Understand that this is a category issue, but there are certainly more cost-effective ways than a TVC to educate consumers that are already using the brand, like packaging, website, retargeting etc. Even if the objective was to teach consumers how to use the product correctly, it could be done in a more engaging and memorable way. I know that Nicorette from J&J, globally tells their consumers to Chew-Park-Chew which is at least easier to understand and remember.”
“I know that consumers are looking for a solution to quit smoking and not just a nicotine gum. Accordingly,
there is so much to educate consumers on – when to quit, how to plan for a quit attempt, how to select the right smoking cessation product, how to control urges, how to manage withdrawal symptoms etc. – and using the product correctly is just one small part of that. Creating a platform for consumers that supports them right through the quit-journey is a good option,” Akali concludes.
This article originally appeared on afaqs