Data Privacy at Ranbaxy

Yesterday, Malvinder Singh, CEO of Ranbaxy announced acquisition of Terapia, the sixth largest generics drug maker in Romania. Intelligent move, I must say. However, he declined to give profit numbers for terapia to protect the privacy of the deal details.

Let me throw a stone in dark dark skies, and make a guess:

1. Malvinder Singh disclosed that Ranbaxy acquired a 96.7% stake in Terapia for $324 million. Ranbaxy valued the company at 11.6 times the EBIDTA. That makes Terapia worth $335.06 million, and dividing it by 11.6 gives a profit figure of $28.8 million.

2. He also disclosed that profit margins of Terapia was in excess of 35% on an annual sale of $80 million. 35% of $80 million is $28 million.

Probably Ranbaxy needs stronger data protection measures. Ever heard of BS7799. Sorry for leaking your secrets Malvinder.

Tags: Ranbaxy, Terapia

Franchise Format Development for Automobile Repairs:

Specifically for India, franchise format development for automobile repairs is a money spinning idea. Standardize the offerings and rates: like puncture repairs, towing, body work, tyre replacement, engine/gearbox repairs etc, and come up with a standard prices for repairs. Offer a standard toolkit to the franchisees. The potential franchisees would be numerous car mechanics in the country. Charge them a fixed support fees of 7% of their entire sales. In return guarantee them customers, marketing support, and latest methodology.

The following infrastructure would have to be created:

1. National call center to arrange mechanics be sent to site of breakdown.
2. Methodology and price list
3. An allocation software
4. Legal Contracts
5. National Advertisement and marketing program.
6. Revenue sharing mechanism
7. Company website
8. Quality Management programme
9. A schedule for listing the host franchise company in NSE and BSE.

The actual investments would be put up by franchisees. Collect a non-refundable joining fee of from them.

So with a minimum capital investment, an extremely scalable business model can be created. This will have a very high visibility. Franchises are an under-developed concept in India, and stock markets would love it.


P.S. This can be done just not for automobile repairs but also numerous other small things that touches life of an average Indian.

Internet Entrepreneurship in India

Its not difficult to search for ideas in setting up Internet businesses in India even if one is not a great idea generator.

If one finds out all sites that is generating huge traffic flows in US , for example using the stats from this research done by comscore in Internet Ad Sales, copies the exact business model and build a user community specifically in India.

The chances of the company to be acquired will be extremely high. If no one buys, the original site in US will definitely look at you very seriously as India in the flavor of the time in US.

Isaac Newton and Stock Markets:

Isaac Newton was a great mathematician(Calculus) and a great theoretical Physicist(Three Laws of Motion, & Three laws of gravitation). He was also a stock market investor. His most well known investment was that of the stock in South Sea company which was quoting at £128 in January 1920. He made 7000 pounds through appreciation in the shares of South Sea Company in less than 4 months when he thought he had made enough and sold out. However the prices of South Sea company kept on appreciating astronomically and Newton regretted his decision to cash out. So he ploughed back £22,000 in the shares of the company at near peak rates. At its peak the South Sea company was quoting close to £1000 in August 1720. Then the marekt discovered that a great insider trading scam has happened in the company and all promoters have sold out. The stock crashed to £150, and Newton's holding came down to £2000 losing him about £20000. Newton never invested in stocks after that.

"I can calculate the movement of the stars, but not the madness of men." - Sir Isaac Newton

Stock markets humbles even the greatest.

Gold prices and Silver prices are on a high. For those of you who want to convert USD per ounce to Rupees per tola, multiply Gold prices in USD/Ounce by 14.5 to get Rupees/Tola rates. Today morning Gold was trading at USD 560/ounce, so equivalent Rupee/tola amount is 8120 Rupees/Tola. As silver is quoted in Rupees/Kilogram in India, but USD/Ounce internationally, the conversion multiplying factor is 1450. So silver quoting at 10.6 USD/Ounce today morning is Rs 15370 per Kilogram.

Note: To get multiplying factor for Gold, divide Dollar-Rupee Rate(Currently US Dollar trades at close to Rs 45) by 3.1 is 45/3.1=14.5

To get multiplying factor for Silver, Multiply Gold conversion factor by 100 ie 14.5 * 100 = 1450

A good article on alternate fuels

Where do you get your energy from? Latest on alternative liquid fuels | EnergyBulletin.net | Peak Oil News Clearinghouse