About the Country1: Surface Area, Population, Climate, Seasons, Neighbours, History and Strategic Relations

Surface Areaa: 603,628 km^2, Populationb: 45,500,000, Climatec: Moderate & Mediterranean subtropical. Climates are
influenced by the humid air from the Atlantic Ocean
Seasonsd: Most of Ukraine has all the four distinct seasons- Spring, Summer, Autumn & Winter
Neighbourse: Poland, Slovakia, Hungary, Romania, Moldova, Russia, Belarus. History & strategic relations f:
Economy2:
Particulars
2010
2011
2012
2013
2014
Real GDP(in billion USD)a
160
163
161
212
264
GDP growth rateb
4.2%
5.2%
0.16%
0.1%
0.2%
Inflationc
9.37%
7.96%
0.57%
0.48%
21.8%
Forex rate (USD)d
7.94
7.97
7.99
7.99
15.82
Exports as a % of GDPe
50.75
54.37
50.98
46.87
42
Imports as a % of GDPf
53.56
60.59
59.09
55.37
44.2
Top 5 sectors contributing to GDP g

Transport

Post

Telecommunication

Top 5 sectors contributing to Exportsh
Top 5 sectors contributing to Importsi
Current Trade % w.r.t. World Tradej

Semi-finished Iron
Packaged medicaments
0.5

Seed Oils
Petroleum gas
0.45

Hot-rolled iron
Refined Petroleum
0.40

Machine
building
Corn
Cars
0.375

IT services
Iron ore
Coal
0.40

Selected Industry and Product Description: Pharmaceutical Industry, Atorvastatin Drug (Cholesterol Lowering Drug)
Existing Trade Relationships & Future Potential3:
Russia and European Union are Ukraine’s first and second largest trading partners.
Ukraine does not have a FTA with India yet, still India stands second in terms of Pharmaceuticals exports to Ukraine,
next to Germany.
Ukraine has a DCFTA and Most Favoured Nation treatment with Germany. In our business,
heart drugs exported from Germany or France can be a major competitor to our generic drug Atorvastatin.
Future potential of Ukraine’s trade relationships depend on how the economy develops in the next few months,
and European Bank for Reconstruction and Development
which will help Ukraine develop high quality medicines at cheaper prices compared to prices of imported drugs,
and also assist pharma companies reach international standards.
Reasons for Selection of the Product:
Demand Analysis: Key Points4
Ukraine ranks 2nd in the world for Heart Disease a. About 60% of the deaths in Ukraine are heart related b.
About 43% of those deaths are ischemic heart disease c.
This is where we see our opportunity. Smoking and Obesity are one of the main reasons for heart attack d.
A chemical in cigarettes named Acrolein is responsible for preventing the transportation of fatty deposits to the liver, thereby leading to high cholesterol e.
This cholesterol is what we treat using our generic drug “Atorvastatin” f.
Our cost effectiveness when compared to other existing brands g is the major reason expected by us for the penetration of our product
among the crowd of Ukraine.
Supply Analysis: Key Points5
Atorvastatin is the Active Pharmaceutical Ingredient(API) a. Suppliers providing API:
1)Yashica Pharmaceuticals b
2) NRR Laboratories c
3) Taj Pharmaceuticals d
4)Ruskin Chemipharm e
Set up of plant meeting WHO GMP standards cost 2 crores and Equipment cost 75 to 80 lakhs. f
Competition Analysis in the Selected Country:
Top Competitors6
Reasons as to why your product is better than competition?7
a
Pfizer
The major reason for our product to be successful is in its cost effectiveness a. Since we are focusing only on one drug
Rochea
(Atorvastatin), we are able to produce the drug with the required superior quality with cost competitiveness. Moreover, we will tie
Ranbaxya
up with local distributors (Neuron Innoceuticals) in Ukraine and we expect our strong supply chain in Ukraine to be a strong core
Astellasa
competency b.
Tevaa

Financial Viability Analysis:
Investments Required8

Rs.2,79,40,510 a

Business/Ownership/FundingStructur
e with reasons
Partnership, Capital Structure with 40%
Equity and 60% Debt b

Expected Profits &Break-even
Analysis with reasons
Breakeven Point-4,84,076 units c
Breakeven Revenue-Rs.77,45,201.43 c
Expected Profits-Rs. 70,99,101.89 c

Payback Period Analysis
Payback Period-3.94 years d

Challenges in achieving the above9: The company is currently targeting at a market share of 0.5%. This target is a conservative number.
If this is not achieved, the company might lose out on its profitability.