Chairman of the Board Viveck Goenka
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Editor Viveka Roychowdhury* Chief of Product Harit Mohanty
A wait and watch approach
BUREAUS
All sectors, including the pharmaceutical and supply chain industry, are eagerly waiting the implementation of the Goods and Services Tax (GST) bill in April 2015. Till then everyone is keeping a watchful eye on what happens next BY USHA SHARMA
Mumbai Sachin Jagdale, Usha Sharma, Raelene Kambli, Lakshmipriya Nair, Sanjiv Das Bangalore Neelam M Kachhap Pune
DESIGN National Art Director Bivash Barua Deputy Art Director Surajit Patro Chief Designer Pravin Temble Senior Graphic Designer Rushikesh Konka Senior Artist Rakesh Sharma Photo Editor Sandeep Patil MARKETING Regional Heads Prabhas Jha - North Dr Raghu Pillai - South Sanghamitra Kumar - East Harit Mohanty - West Marketing Team Rajesh Bhatkal GM Khaja Ali Ambuj Kumar E Mujahid Yuvaraj Murali Ajanta Sengupta PRODUCTION General Manager B R Tipnis Manager Bhadresh Valia Scheduling & Coordination Rohan Thakkar CIRCULATION Circulation Team Mohan Varadkar
CONTENT
Shalini Gupta
10 | DHL Global Forwarding - Setting new standards in temperature controlled shipping 18 | GST and its impact on pharma 24 | GST: The road ahead 26 | Safexpress opens logistics parks in Dhule and Jammu
INTERVIEW ‘We want to grow with the market, profitably’ FRANCK DEDENIS Managing Director - Maersk Line (India and Sri Lanka)
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‘We have managed to enable our customers to focus on their core competencies’ RAJESH NEELAKANTA Executive Director and Chief Executive Officer, BVC Logistics
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‘Immense contribution of Health Ministry to develop country's vaccine cold chain’ 16
AJIT TAMHANE Director, Lisaline Lifescience Technologies
Express Pharma Reg. No.MH/MR/SOUTH-77/2013-15, RNI Regn. No.MAHENG/2005/21398. Printed for the proprietors, The Indian Express Limited by Ms. Vaidehi Thakar at The Indian Express Press, Plot No. EL-208, TTC Industrial Area, Mahape, Navi Mumbai - 400710 and Published from Express Towers, 2nd Floor, Nariman Point, Mumbai - 400021. (Editorial & Administrative Offices: Express Towers, 1st Floor, Nariman Point, Mumbai - 400021) *Responsible for selection of news under the PRB Act. Copyright @ 2011. The Indian Express Ltd. All rights reserved throughout the world. Reproduction in any manner, electronic or otherwise, in whole or in part, without prior written permission is prohibited.
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PHARMA LOGISTICS
FOREWORD POOR LOGISTICS and supply chain management (SCM) has been identified as one of the major stumbling
PHARMA COMPANIES TODAY CANNOT AFFORD TO IGNORE LOGISTICS AND SCM AS A STRATEGIC DIFFERENTIATOR
blocks in the underperformance of
tics players from different industries, like the five-decade-old BVC Group, which started as customs agents for gems and jewellery and today offers
the Jan Aushadhi scheme. The scheme
up. Global majors like DHL Global
international freight management
started in November 2008 with the
Forwarding, are introducing world
and customs brokerage services for
nobel intent of providing low-cost
class technology like DHL Ther-
pharma majors as well as tier II and
quality generic medicines through a
monet, a new temperature controlled
tier III companies.
chain of specially set up outlets. How-
air freight product tailored to the life
ever, more than five years later, of the
sciences and healthcare sector.
sea transport could well be a more
planned 626 stores, only 170 were ac-
Safexpress has recently inaugurated
economical alternative to air for ship-
tually opened and of these, only 98 are
two new logistics parks in Dhule and
ments which are not on a tight deliv-
actually functional. A major com-
Jammu. Lisaline Lifescience Tech-
ery schedule. Here’s where shipping
plaint was intermittent supply of
nologies which was one of the earliest
majors like Maersk Line, which has
medicines.
introducers of Vaccine Vial Monitors
been in India since 1921, offer a viable
(VVM) in India, when VVMs became
option.
Pharma companies today cannot
As profit margins become slimmer,
afford to ignore logistics and SCM as
part of the nation wide polio
a strategic differentiator. The im-
eradication programme, has plans to
trends in pharma logistics over the
pending implementation of the Goods
introduce new datalogger
next few years as suppliers and
and Services Tax (GST) regime has
technologies in the India market.
clients come together to form strate-
already seen logistics players gearing
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The sector has also attracted logis-
It will be interesting to track the
gic partnerships.
PHARMA LOGISTICS 'We expect the introduction of the long awaited GST, to be a reality, sooner rather than later and are confident that steps for its implementation will be undertaken speedily' SV Veerramani,
GST may not only change the tax system in many ways, but may change the way business is conducted Pratik Jain, Partner - Tax, KPMG in India
President, IDMA
A WAIT AND WATCH APPROACH G All sectors, including the pharmaceutical and supply chain industry, are eagerly waiting the implementation of the Goods and Services Tax (GST) bill in April 2015. Till then everyone is keeping a watchful eye on what happens next BY USHA SHARMA
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oods and Services Tax (GST), a much awaited uniform tax regime which was initially tabled in 2006-2007, is likely to be implemented almost a decade later from April 1, 2016,. The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha in 2011, had lapsed and the NDA government thus needed to come up with a fresh bill. The proposed bill will include indirect taxes like excise duty and service tax at the central level and VAT and local levies at the state level. However, industries seem optimistic after Prime Minister Narendra Modi's speech at the Vibrant Gujarat Investor Summit 2015 in Ahmedabad. Modi mentioned that the centre is ready with the long awaited GST bill and very soon it will be implemented across the nation which will help industries to grow at a much faster rate. GST will be a very important
From a pharma industry perspective, the GST rate on formulations would be even more relevant than on Active Pharmaceutical Ingredients Ranjana Smetacek, Director General, OPPI
part of the roll out of the MP's ;Make in India' vision. Commenting on the proposed bill and its implementation, Suresh Pareek, Managing Director, Ideal Cures says, “I think the announcement of implementation of GST is true, however, its feasibility over given time frame looks a little difficult. With the appointment of Vice Chairman, Arvind Panagariya for Niti Ayog, who himself supports uniformity, the problem should find a solution.” Logistics play an important
role in the supply chain and players seem happy with the announcement. Vikas Anand, Managing Director, DHL Supply Chain India responds saying, “With the new government’s principal focus on development and economic growth, we expect the introduction of the long awaited GST, to be a reality, sooner rather than later and are confident that steps for its implementation will be undertaken speedily.” Anil Arora, Promoter – Director, MJ Logistic Services
opines, “The current government seems to have the political will and the directional leadership to implement and execute this reform.”
Tax pattern Presently, the tax pattern differs from state to state and like other industries, the pharma industry also needs to to follow.. SV Veerramani, President, IDMA feels that the announcement of GST implementation provided a sigh of relief to the industry and says, “With central GST
expected to be a single rate for goods and services, going forward, the credit accumulation may not be an area of concern. We hope that the integration of tax on goods and services through GST would provide the additional benefit of providing credit for service tax paid by manufacturers. The multistage taxation along with the inability to take full benefit of the CENVAT credit /refund has been an issue for the industry. Furthermore, if the legislation provides for carrying forward of the unutilised credit
this would be an additional boost to the industry. The biggest advantage to the industry can be that of reduction in transaction cost, with an immediate impact coming from the discontinuance of Central Sales Tax (CST).” The pharma industry is heavily dependent on an effective supply chain. The industry needs to follow set guidelines and processes to avoid unwanted incidences. It helps companies in delivering safe drugs to needy patients at the right time. However, due to
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PHARMA LOGISTICS Under GST, inter-state sales transactions between two dealers would be cost equivalent and comparable with stock transfers/ branch transfers. Inter-state transactions would become tax neutral, making India one single common market no longer divided by state borders
multi-level tax structure, which varies from state to state, logistic providers have faced several challenges. Anand says, “With supply chains maturing in India, the introduction of GST will lead to an enhancement and consolidation of infrastructure and transport partners. Hence, for the economy to move forward and show positive growth, robust supply chains are imperative and the introduction of GST is now only a matter of time.” Pareek showcases the key benefits to pharma manufacturers after GST implementation explaining, “GST will help in reducing time as different check posts at different state borders cause delay in the release of goods. Vehicles have to wait in long lines for a long time. A lot of paper work needs to be done. This problem will immediately be resolved. To a large extent, the corruption at the passing check points will be decreased.” It is also expected that implementation of GST will be a boon for perishable goods as well. As each check post takes around four to six hours for entry and exit of the state and considering the states travelled, it is likely that around 25 per cent of total transport time may be saved and this will be important for perishable goods. Also, traffic blockages at check points will be reduced drastically.
GST implementation There are various services including logistics involved in getting the input material to its final customers. With the
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implementation of GST, cost of any service, including logistics, may be considered as ‘value add’, and the manufacturer hopefully can get tax credit for the service tax paid. Under GST, inter-state sales transactions between two dealers would be cost equivalent and comparable with stock transfers/branch transfers. Inter-state transactions would become tax neutral, making India one single common market no longer divided by state borders. The pharma sector currently enjoys various location-based tax holidays on its manufacturing activities. Under the proposed structure of GST, such area-based exemption will be done away with. However, taking into account past precedents, suitable work around/refund process needs to be constituted to ensure that any existing hubs do not get impacted andcontinue to get the agreed benefits. Arora emphasises on the service tax which is paid on the cost of such services and explains, “The pharma industry has the highest volume to value ratio, i.e. for a given unit of volume, it has the highest value of invoice. Hence the highest tax, so it has to follow a model where it needs to have a warehouse even in the smallest of states to save tax. Imagine the efficiency, reduced stock holding cost, reduced shelf life issues if the industry could supply an entire region or the whole country from
The current government seems to have the political will and the directional leadership to implement and execute this reform Anil Arora, Promoter – Director, MJ Logistic Services
We expect the introduction of the long awaited GST, to be a reality, sooner rather than later and are confident that steps for its implementation will be undertaken speedily Vikas Anand, Managing Director, DHL Supply Chain India
one location.” GST, by definition, is based upon the concept of minimal exemptions and concessions. Therefore, the current exemptions/concessions may not continue under GST. Further, the entire margin across the distribution chain would be subject to central GST, which is not plausible as central excise duty is currently not applicable beyond the manufacturing stage. This could, thereof, impact the pricing of these products, significantly. Pratik Jain, Partner Tax, KPMG indicates, “Since GST is expected to have a liberal credit regime, tax paid on most goods and services should not be a cost and could have a positive bottom line impact. However, overall cash flow requirements may change owing to the principles of minimal concessions and exemptions, levy of GST on stock transfers, possible higher GST rate on imports, etc.” The Government of India has declared 2015 as 'Year of Active Pharmaceutical Ingredients' under the 'Make in India' initiative and its relevant to note that GST will have substantial impact on APIs. As Ranjana Smetacek, Director General, OPPI points out, “From a pharma industry perspective, the GST rate on formulations would be even more relevant for Active Pharmaceutical Ingredients. The issue of accumulation of GST credit will continue, unless specific
provisions are made in the GST law to address this from the very beginning.” Implementation of GST will have a cascading impact down the line. “Simplifying the distribution network and merging smaller warehouses to regional centres will result in economies of scale being generated. Warehouse locations will no longer need to be fixed, depending upon CST constraints but will be based on demand and supply patterns, centre of gravity, long-term logistical and real estate considerations. Large shared distribution centers offer not only strategic, operational and financial benefits, but allow for better cost control, forecasting, inventory rationalisation and synergies for consolidation in transportation,” stresses Anand. Smetacek adds, “The draft amendment bill has kept the window open to decide on the existing benefits in tax beneficial zones. The industry will follow up for a favourable disposition in these zones as there are a high number of manufacturers who avail the benefits of exemption from excise duty payment and refund of excise duty paid in cash, subject to the value addition norms as per the applicable notification.”
Relief for the pharma sector? With the implementation of the GST, state barriers and tax efficiency planning will no longer be the key factors influencing the size and location of warehouses. The only considerations will be incoming draft of goods and the targeted coverage area of a distribution
centre, and of course availability and quality of warehousing space. Anand feels that apart from the pharma industry, other industries will be benefited from the implementation of GST. With core investments expected to increase in cold chain logistics and a clear focus on GxP and quality, drug efficacy stands to increase with the ultimate beneficiary being the end consumers. Cascading effects on transportation will be that the state level transportation will have to transform into heightened intra-region delivery capability. Regional warehouses will primarily have large floor plates and efficiency driven, and transportation will need to be more organised, precise and time of delivery driven both these factors will bring in the required transformation of the business from fractional, unorganised vendors to organised vendors with capabilities in size and scale. All these developments and transformations will lead to smoother and more organised logistics, opines Arora.
Liability Currently, each state has its own tax regime but after the implementation of GST, the immediate question which arises is that which companies can optimise the benefit from this uniform tax regime and how; and what are the requirements to avail of these benefits? The government has proposed that fixing the companies' annual turnover limit at ` 10 lakh may be a better idea. Pareek agrees, “It is totally justifiable as the company paying the tax will also avail the Modified Value Added Tax (MODVAT) of the GST they paid on the purchase. We are basically a B2B industry, so we will have a lot of relief like doing away with collection of C-Forms, submission and assessment which causes a lot of inconvenience, as they are
I think the announcement of implementation of GST is true however, its feasibility over given time frame looks a little difficult Suresh Pareek, not received on time, causing a lot of penalties in terms of money and resources. Also, different states have different forms that are to be submitted and all this can be avoided.” This indicates a positive side of the implementation, the application of a single tax rate across all goods and service can result in redistribution of taxes across all categories. Arora feels, “It is appropriate and fixing companies' annual turnover limit of ` 10 lakh is definitely justifiable. In order to prevent leakages in the tax net and bring a similar order to all trading activities, the GST net needs to be as wide as possible.”
..but will it meet deadline? There have been high hopes about the inception of the GST regime at regular intervals. GST implementation is absolutely necessary to tackle the problems faced by various industries and will play a role in curbing corruption. Arora while replying to a question on whether the government will take different routes if the situation doesn’t permit the rollout
this time as well, says that the current government seems to have the political will and the directional leadership to implement and execute this reform. “Let there be no misnomer that the transition will be smooth but, if we cannot do it now, we will miss the bus to higher GDP growth,” he cautions. Dr Milind Antani, Legal and Tax Counseling Worldwide, Nishith Desai Associates feels, “With the current scheme of things, the discussions that are going on between the Finance Minister and the states it seems more likely than not that GST will become effective from the proposed dates.” However, Jain feels, “Given the fact that GST implementation (including rates, etc.) may still take some time, the question before the industry is how to prepare for the new regime. The action plan may need to include several important aspects such as, communication with vendors/customers, treatment of transition stock, pricing strategies, changes in systems and processes, and so on. GST may not only change the tax system in many ways, but may change
the way business is conducted.” Pareek sums up, “I think it may involve different revenue sharing formula for different states such that the state should not lose the amount that it currently receives. By this I mean that the state economy should not be affected. This must be ensured otherwise it will be difficult to implement GST.” Given the magnitude of changes that need to be done, the preparation needs to start now. The first step towards the transition to a GST regime may be to assess the impact of GST (financial, supply chain, processes, etc.) on business. This could then help in preparing an action plan for the transition and identifying the points on which the industry needs to initiate advocacy efforts with the government. All verticals of the pharma industry are showing their eagerness in welcoming the implementation of the GST bill. Now it is time to watch whether the government gives a verdict in favour of the industry or simply disappoints … once again.
Managing Director, Ideal Cures
With the current scheme of things, the discussions that are going on between the Finance Minister and the states it seems more likely than not that GST will become effective from the proposed dates Dr Milind Antani, Legal & Tax Counseling Worldwide, Nishith Desai Associates
u.sharma@expressindia.com
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PHARMA LOGISTICS ◗ INSIGHT
DHL Global Forwarding - Setting new standards in temperature controlled shipping Samar Nath, Chief Executive Officer, DHL Global Forwarding, India share insights about DHL Thermonet, a new temperature controlled air freight product tailored to the life sciences and healthcare sector
I
n the past few years, the Indian pharmaceutical industry has continued to be one of the most attractive investment destinations in the world with an expected CAGR of 14 per cent1 and anticipated to reach a turnover of `2.91 trillion ($47.06 billion) by 2018. Presently, valued at `1.6 trillion ($ 25.87 billion)2, it is also expected to grow in the local market with aggressive rural
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penetration by pharma manufacturers, increased government spending on health and growing awareness among people. The drug manufacturing industry, one of the top contributors to the country’s exports, is a focus area for the government’s ‘Make in India’ campaign. Taking in view the governments ‘Pharma Vision 2020’, it is expected to reduce
the approval time for new facilities so as to boost further investments. In recent years, temperature controlled products for the pharma industry have gained significantly in importance. The driving force has been the biotechnology products, which generally must be kept within a strict temperature range during transportation. Transporting and warehousing tempera-
ture controlled shipments securely and safely requires a unique combination of skills and expertise. DHL Thermonet, a new temperature controlled air freight product tailored to the life sciences and healthcare sector is an addition to DHL’s network of life sciences and healthcare facilities. This global service offers customers a transparent and a regulatory
SAMAR NATH Chief Executive Officer, DHL Global Forwarding, India
compliant platform, enabling DHL to manage their temperature sensitive shipments of pharma products and medical devices. It does so by bringing together several technical and product offerings from the Group, including the exclusive IT platform, LifeTrack and the DHL SmartSensor, the temperature monitoring technology developed by DHL Solutions & Innovation. Samar Nath, Chief Executive Officer, DHL Global Forwarding, India said, “You need a partner who can bring together dedicated infrastructure, global standard operating procedures designed around your specific needs, trained staff who work to identical protocols, and leading edge monitoring, tracking and reporting technology.” DHL Thermonet provides seamless temperature visibility along the supply chain, 24/7 proactive monitoring and intervention based on pre-determined touch points and DHL’s RFID SmartSensor technology, that is GDP certified. Temperature data and logistics events can be accessed via the proprietary LifeTrack IT platform that also houses all product-specific SOPs, facilitating early intervention and simplifying document control. Additionally, DHL’s Free Trade Zone (FTZ) facilities offer one stop solution for all logistics and inventory management needs. They also include dedicated temperature controlled facilities for life sciences and healthcare products with temperature and humidity-controlled storage chambers which are GDP compliant. DHL’s FTZ facilities thus provide end to end cold chain management under a controlled environment and speedy clearances from Drug Controller office, including customs on site. Being the first global logistics company in the country to have two advantageously located sites within FTZ areas — at Panvel, Mumbai which handles 55 per cent and Sriperumbudur, Chennai handles 25 per cent of India’s container inbound and outbound traffic, DHL Global Forwarding has
DHL’s investment in the Free Trade Zone aims at simplifying trade and encourages foreign trade and warehousing activities in India, thereby creating more employment
the first mover advantage of being able to offer a number of benefits to customers. “With cost-effective skilled labour, transportation facilities, integrated warehouse management and sophisticated equipment, we are well positioned to
capitalise on the rapidly growing domestic market,” said Amit Dawar, Director – Value Added Services, DHL Global Forwarding India. DHL’s investment in the Free Trade Zone aims at simplifying trade and encourages
foreign trade and warehousing activities in India, thereby creating more employment and providing a platform for overseas entities to transact from and into India. DHL’s Temperature Management Solutions are cus-
tomised to protect the integrity of life sciences and healthcare products during global transportation. References 1. www.ibef.org 2. Care Ratings
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PHARMA LOGISTICS I N T E R V I E W
‘We want to grow with the market, profitably’ Maersk Line having served the Indian market for almost a century, is committed to the growth of this market. Franck Dedenis, Managing Director - Maersk Line (India and Sri Lanka) reveals more in discussion with Sachin Jagdale
What is the history of Maersk Line in India and how does it tie in with supporting the growth seen in the pharma sector in India? India is the third largest pharmaceutical products producing nation. The Indian pharma industry is the world’s third-largest in terms of volume (10 per cent share) and tenth largest (2.1 per cent share) in terms of value. Exports are growing at a very rapid pace and have clocked a CAGR of around 16 per cent between 2005 and 2013. The prospects too, look very good given that the demand for generics (especially in the US and Africa) is growing very fast. Around $148 billion worth of patent expiries are expected between 2013 and 2018 which the Indian companies will be looking to tap into. Pharma exports should touch at least $35 billion (by value) by the year 2020. It should be noted that the pharma industry accounts for 4.34 per cent (by value) of India’s total exports. This is based on numbers from various globally renowned research reports. Our country is the largest exporter of generic formulations in volume globally. It exports vaccines to 150 countries and produces 40-70 per cent of the WHO demand for DPT (Diptheria, Tetanus) and BCG (tuberculosis) and 90 per cent of measles vaccines. India is home to more than
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20,000 manufacturing units and over 6,000 pharma companies. India exports all forms of pharmaceuticals from APIs to formulations, both in modern medicine and traditional Indian medicines. Over the last 30 years, India’s pharma industry has evolved from almost non-existent to a world leader in the production of high quality generic drugs. India has garnered a worldwide reputation for producing high quality, low cost generic drugs. Of late the concept of ‘pharmerging’ countries is also finding favour wherein a group of 17 countries has been identified as the fastest emerging markets in pharma, by IMS Health, the largest research agency in the field of pharma. These 17 pharmerging countries are China, Brazil, Russia, India, Mexico, Turkey, Poland, Venezuela, Argentina, Indonesia, South Africa, Thailand, Romania, Egypt, Ukraine, Pakistan, and Vietnam. The pharmerging countries—led by China, India, Brazil and Russia— will represent 30 per cent of the total pharma sales in 2016, up from 20 per cent of the total in 2011. ◗ Maersk Line is fully equipped to support this growth through its vast network, technological knowhow and extensive inland coverage in India. The Maersk Line story in India begins way back in 1921 with
Marie Maersk calling India for the first time. The organisation has been in serving the Indian market for almost a century, first through joint ventures with the Tata Group and Ballarpur Industries and then as a separate entity
Maersk Line has been expanding its services in India.We started calling on Hazira in Gujarat in March, 2013 and before that at Krishnapatnam port in AP
◗ It is an evolving market. We want to grow with the market profitably and in the right segments and in a cost effective manner. ◗ We have 11 dedicated services out and into India, in a way, making the world accessible to India. Two of these services were launched just this year, the ME-5 connecting South of India and Colombo to the Mediterranean in addition to our ME-3 service which connects North and West India to the Med and The Mesawa – a direct service to South and West Africa ◗ In 2014, we added three new services from Far East to India in addition to the Chennai Express Other existing services include: ◗ ME1 service into North Europe ◗ Mawingu Express to East Africa ◗ MECL1 into North America and Canada ◗ AE-1 from Colombo, Our cargo from the East coast connects with the service through a comprehensive feeder network ◗ We started calling on Hazira in Gujarat in March,
2013 and before that at the new Krishnapatnam port in Andhra Pradesh. We recently also started calling Kattupalli to strengthen our coverage from the south East coast of India. The ports in India which Maersk Line currently calls are: ◗ Krishnapatnam ◗ Cochin ◗ Tuticorin ◗ Mangalore ◗ Marmagao ◗ Mundra ◗ Hazira ◗ Pipavav ◗ Nhava Sheva ◗ Haldia ◗ Kolkata ◗ Vishakhapatnam ◗ Chennai ◗ Kattupalli Supporting this, we also have a network of offices and inland acceptance points to make it more convenient for our customers to do business with us and in general. In addition to the above, we have also a dedicated pharma vertical manager who specialises in understanding the needs of the industry and the services that are needed thereby. We realise that it is a complex industry and the level of engagement required is high. Just to give you an example of our interaction with our customers, we recently organised a conference called the 'Pharma Congress' which brought together some very well-known players from the
industry to discuss common industry challenges and logistics solutions that a shipping line like Maersk can provide to our customers. The event had speakers from several reputed brands and close to 35 participants from the industry in attendance, which included many of the top most pharma companies in India, along with various global freight forwarders. Remarks from participants were very encouraging. The fact that Maersk is the first shipping line to have arranged such a conference was much appreciated. Longer the delivery period more will be the risk of cargo deterioration. How have you managed to handle this problem? When it comes to the pharma industry logistics play a very critical role in providing the right medicine to the right patient at the right time, place and dosage and most importantly at the right price . Hence, the logistic needs of this industry are different when it comes to medicines because they are both temperature and time sensitive. For long distance shipments requiring transshipments on the way, special care is required in order to not disturb the nature of the drug. Maersk Line aids in minimising the risk by providing customers with best in class transit times and high schedule reliability ratios especially on services into the US and North Europe, which are also the biggest markets for pharma (generic drugs) out of India. During transit as well, the containers are monitored by a reefer electrician. In addition to this a 24*7 hotline is available to the chief engineer for technical assistance on reefer related issues that cannot be resolved with existing knowhow of technicians on board the vessel. In all cases, successful shipping begins at the product sourcing area. It is
SO WHAT DOES IT BOIL DOWN TO, FOR US?
Maersk Line aids in minimising the risk by providing customers with best in class transit times and high schedule reliability ratios especially on services into the US and North Europe, which are also the biggest markets for pharma (generic drugs) out of India also essential that all products are treated correctly prior to the time of stuffing. Even with correct temperature, ventilation and humidity during the voyage, cargo will only arrive in perfect condition if the pretreatment has been performed correctly. As we say with a smile – “the reefer container is not a hospital. It can maintain your good quality cargo – not improve it.” We have managed the security problem by introducing new containers that deliver high safety and security benefits. Shipments of whisky used to suffer from
substantial breakage and theft. Shipping containers slashed these losses by up to 90 per cent. Before containers, 30 per cent of a product’s price used to be accounted for by freight costs. Now, that figure is less than 1 per cent. (http://www.maersk.com/en/in dustries/transport) Tell us about the arrangements made for the shipping of pharma cold chain products? The cold chain involves the transportation of temperature sensitive products along a supply chain through refrigerators
packaging delivery method. We do it via our reefer technology. To secure optimal cargo quality and to avoid rejection due to temperature deviations, we ensure that the correct temperature is maintained throughout the journey. By continuously circulating cold air around the cargo, heat entering the cargo space through the container walls, will be removed. Indian pharma industry is very cost sensitive. How are your services cost effective? Maersk Line ensures that it provides support to customers’ logistical needs
through proximity, accessibility, reliability and service. Proximity – We want to be closer to all our customers across the length and breadth of this cluster. We have over 45 acceptance points, besides our local offices to help ease of doing business at the local level to help our customer carry out trade. Reducing inland transportation cost Accessibility – Through our dedicated and transhipment services, we have made the global markets more accessible for businesses in India and Sri Lanka. Increasing profitability by enabling companies to increase market share by entering new markets Customer service: Our focus has always been around customer satisfaction and ease of doing trade. We have a comprehensive E-Solutions suite which helps customers book, track and pay online. It also lets them release and print their bills of lading in their office itself, reducing administrative costs considerably. Our schedule reliability, as mentioned earlier, leads to lowering of inventory holding costs For the pharma logistics developing more focused, cross divisional processes that reduce costs, minimise risk will ensure the veracity of the pharma product. To offer better insight into supply chain Maersk follows steps like: Physical flow: Handling and protection of cargo from theft, counterfeit and adulteration Information flow: Receiving real time supply chain data which can ensure prompt responses without compromising on information Financial flow: Monitoring inventory tie-up, offering choices and improved invoicing. Have you formulated any special business plans for emerging markets like India? India has a great potential as an investment point of view.
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PHARMA LOGISTICS India is a big market for us and we are certainly interested in expanding our coverage both inland and ocean with respect to India. We are definitely going to continue to invest in providing more services more frequency, more departures, better port coverage as the market develops. Why should pharma companies select shipping over other modes of transports like air and road? How will shipping be the cost effective mode of transport for the pharma products? When shipping cargo of a pharma company or any other company, it’s important to choose the appropriate mode of transportation to ensure your products arrive on time and at the right cost with right mode of shipping. Your decision to ship by land, sea, or air depends on a careful evaluation of business needs and a comparison of the benefits each method affords. Picking the best possible mode of transportation is critical to export success. Transportation through air is an expensive affair. One will pay almost double when they choose air transportation. When pharma companies are getting tremendous deals through shipping then, why should they spike up their expenses? If you are moving a large shipment that does not require an especially fast delivery, sea transport is the most economical and cost effective option available for companies. Choosing an appropriate method is heavily dependent on distance, the geographic location of your destination, the nature of your items, your budget, and any necessary deadlines or schedules that must be adhered to. Items that must be moved quickly should be shipped by air, while goods that aren’t needed in a hurry can be
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ATYPICAL PHARMA SUPPLY CHAIN
HOW DO WE DRIVE PARTNERSHIP SUCCESS?
shipped inexpensively by sea. Most shipping routes often require the use of several different modes of transport. Finding the best way to coordinate this logistic chain can save your business a lot of time and money in the long run. http://www.solusource.com/to minfo/WhitePapers/Global%20 Shipping%20Methods.pdf Additionally, another reason why customers are moving to sea exports is that the quality of the end-to-end supply chain in sea exports is superior to that by air. While
exporting by air, often the tarmac temperature leads to temperature outages in the cargo. This has been a longstanding concern for quality assurance teams of many pharma companies.
Explain the reefer technology. Reefers are refrigerated shipping containers typically used to transport cargo requiring temperaturecontrolled conditions such as vegetables, fruit, fish, protein or other commodities. This enables customers to expand
into new markets and capitalise on new opportunities.The majority of Maersk Line's reefer containers are manufactured at Maersk Container Industry's (MCI) facilities in Qingdao, China. The unique reefer design ensures: ◗ Low tare weight to maximise payload and reduce CO2 emissions during transit ◗ Low heat leakage and good air tightness to maintain optimal product temperature ◗ Integrated reefer design for
reduced energy consumption and further improvement of the above ◗ Patented Supotec insulation foam for zero ozone depletion and significant reduction of CO2 emission ◗ The production of MCI is conducted under the strict health, safety, and security and environment (HSSE) regulation of the AP MollerMaersk Group and complies with the United Nations Global Compact In addition, Maersk Line reefer containers can dehumidify the air in the range of 65 per cent to 85 per cent which is an important consideration factor for the effective transit of generic drugs All Maersk Line operated reefer units have the ASC feature installed. The Automated Set-point Change (ASC) is a feature that allows the user to run the cargo at one set-point for a selectable amount of time and once that time has expired, the set point will automatically be changed to a second selectable temperature allowing customers to ensure that the cargo is shipped in a controlled environment. Maersk Line containers follow the new generation of the container side lining panels (walls) which are made of Q Liner, a thermo plastic polypropylene material. This material ensures maximum strength, with reduced risk of foam delamination. The insulating material used in the reefer box is SuPoTec, a patented environment-friendly foam insulation, meeting tomorrows environmental requirements. Before a reefer container is released to our customers, a pre-trip inspection is carried out. This includes checking for structural damage, cleaning, and certainty that the reefer machinery is operating according to the specifications. sachin.jagdale@expressindia.com
I N T E R V I E W
‘We have managed to enable our customers to focus on their core competencies’ Rajesh Neelakanta, Executive Director and Chief Executive Officer, BVC Logistics in an interaction with Usha Sharma, shares the company’s strategies, business plans and its offerings for the pharma sector
BVC Group has completed its five decades of existence. How was the journey so far? BVC Group has recorded a successful growth over the past five decades, with most part of it being in the gems and jewellery segment in India. We started as a customs broker, graduating into an IATA certified International Freight Forwarder, primarily servicing India’s precious cargo industry. We have been offering international transportation, customs gateway operations as well as vaulting solutions to the diamonds and jewellery and bullion businesses, here in India. Under BVC Logistics, we have international freight forwarding services – air and ocean for the general cargo segment of India’s EXIM trade. We are proud to share that we are doing extremely well in this space. We have added services like contract logistics warehouse and distribution management, truck transportation service, project logistics, eCommerce logistics and general cargo customs brokerage services. BVC Logistics offers its services to various industries. What services
do you offer to the pharma sector and how much revenue comes from it? The pharma sector is a key customer vertical for us at BVC and we’ve been successfully handling the international freight management and customs brokerage services for a host of industry majors as well as tier II and tier III companies in the pharma sector. On the domestic front, we’re capable of offering, apart from transportation trucking and rail services, warehouse management and FSL services too. We’re, in collaboration with our associates, building capabilities to offer temperature controlled storage and transportation services to the pharma sector. Our unique service offering for pharma sector includes in-time ADC approvals for EXIM traffic. We can also offer timedefinite domestic distribution services with specific solutions that appropriately address domestic transportation issues that the trade faces. We’re continuously working on building unique solutions to cater to each of the different players in the pharma sector as we strongly
believe that ‘one-size-fits-all’ is perhaps not suitable for this industry.
Under BVC Logistics, we have international freight forwarding services – air and ocean for the general cargo segment of India’s EXIM trade
How challenging and competitive is the pharma market and why? Who are your competitors? The Indian pharma industry is one of the fastest growing sectors amongst all industries here. Though it is quite highly fragmented, in the past few years, we have witnessed large-scale consolidation. This has also resulted in better valuations for Indian pharma and we now have the promoter of a pharma company as the richest Indian. With size comes challenges which are multifarious, ranging from inadequate / improper storage and transportation infra hurting ‘go-to-market’ efficiencies, handling inconsistencies, knowledge deficit in handling haz chem products, regulatory issues in establishing a seamless supply chain and logistics models and so on so forth. We at BVC have been incessantly working on providing sustainable operations models to support our customers to overcome / manage these challenges more efficiently. Regarding competitors, surely, the
whole logistics services fraternity is a competition to one another. Nevertheless, we believe that we are on the right track to offer better services than most of the other providers and hence can hope to have an edge. What are the company’s business strategies and how do you plan to accelerate it further? We, at BVC, have identified niche areas of logistics services where we employ the vast man-years of experience and expertise of our teams in both strategic and tactical aspects of business operations. With this approach, we are able to offer a highly focused and dedicated level of services that is continuously monitored and reported to our customers by our Control Tower team. We have thus managed to enable our customers to focus on their core competencies while we cater to most of their logistics services. This is being appreciated by our customers. Going forward, we intend to strengthen these aspects of our services with implementation of a host of technology suites and mobile applications to be able to raise the information
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PHARMA LOGISTICS flow levels to near real time basis. Presently, how many people are engaged with the company? Do you plan to increase this number in the near future? Today, BVC is a company with service offerings in almost all aspects of third party logistics services. We have around 430 full time employees and an additional 80 odd contract employees on outsourced payroll. Training and skill enhancement is a key employee capability initiative that our HR team is engaged in. This being a continuous process, our employees also can look forward to career advancement opportunities within the group. In addition, we encourage our business heads and team leads to continuously mentor their team members as also crossfunctional teams in multidisciplines. This gives us good bench strength for many tasks within our operations and thus we are always ready to face any kind of contingency. Our recruitment policy, going forward too, will be need based and the above practices will be in vogue. Tell us about the company's corporate plans. For starters, we have taken a host of steps to enhance the work culture at BVC, for we believe that to be able to achieve the ambitious growth plans that we have chalked up for ourselves, we need to have the entire company to be on the same page. As part of our growth plan, we also believe that we need to be present in a few geographies outside India, to be able to provide a very holistic service experience to our customers. Towards this, we are setting up our first overseas office in Singapore shortly followed by a few more locations in Asia and Africa. u.sharma@expressindia.com
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I N T E R V I E W
‘Immense contribution of Health Ministry to develop country’s vaccine cold chain’ Lisaline Lifescience Technologies was one of the earliest introducers of Vaccine Vial Monitors (VVM) in India, when VVMs became part of the nation wide polio eradication programme. Ajit Tamhane, Director, LisaLine Lifescience Technologies tells Usha Sharma that today there is a serious need to extend the same cold chain monitoring technologies to private distribution of vaccines covering the entire cold chain
Could you tell us about the genesis of your company, Lisaline Lifescience Technologies? In 1997, the introduction of Vaccine Vial Monitors (VVMs) to the Polio Eradication programme led us to start a company for bringing innovations in cold chain management. Since then Lisaline is focussed on providing products and services for effective cold chain management. Today, Lisaline offers a wide range of technologies for monitoring and maintaining the cold chain. The product range is broadly categorised into the following sections: active cooling systems, passive cooling systems, and under cold chain monitoring technologies. We offer product, facility, shipment and transport monitoring technologies.
Lisaline provides customised cold chain management solutions for the pharmaceutical sector including vaccines and biologicals. Lisaline also serves hospitals, laboratories, research, logistics and the food sector. Which technologies have been developed for the cold chain management and why are they crucial for the pharma sector? Monitoring of cold chain being very critical for management, Lisaline has successfully introduced cold chain monitoring technologies for pharma and food cold chain management. The Cobalt wireless real time datalogging system from Oceasoft France is a established technology for facilities and equipment monitoring. Cobalt enables supply chain team to
Lisaline has successfully introduced cold chain monitoring technologies for pharma and food cold chain management
centrally monitor temperature, humidity of all their storage location with active alert management. New Mobile app and KOOL LINE web portal enables our customers to view the real time data on mobile, ipad, tablets as well as using web browser from anywhere. In addition EMERALD Bluetooth enabled dataloggers are new and effective tools for shipment and transport monitoring. One can now read Emerald data using a smartphone anywhere and data is uploaded to the cloud for accessing from any location. Last year Lisaline moved to their new facility and commenced the new KOOL LINE cold chain management services. We offer In Lab Sensor calibration as per ISO standards, as well as on site sensor calibration and
mapping services. We also offer KOOL LINE multiple site real time datalogging services for multiple location monitoring and temperature indicator customisation. Which technologies are in the pipeline and when are they expected to hit the market? New wireless systems using Ultra Narrow Band (UNB) technology for connectivity to dataloggers are being developed for facility monitoring. Our Principals Oceasoft have launched new dataloggers in France which can be integrated with SIGFOX UNB connectivity. This is going to change the wireless coverage from 500 metres to 15 kms. These devices are expected to hit the market in early 2016. For product monitoring, the Cumulative Time Temperature Indicators (TTI) commonly known as VVMs are the most effective devices to monitor temperature exposure of single unit (vial, prefill syringe or ampoule) throughout the shelf life. The new development is focussed on combination indicators. These new indicators can change colour with cumulative exposure till specific temperature limit (40°c). Above the limit, the colour will change immediately.
The long awaited introduction of GST is being implemented soon. The GST model with two components (CGST and SCST) is going to bring uniformity in taxation across all the states. For companies like us having import, trading and services as major activities, alignment of taking and utilisation of credit for central CST and state GST will be advantageous Miniature freeze indicators which can be adhered to single unit vial are also under development. The rise of vaccine manufacturers in emerging markets has given a boost to cold chain management providers. How it has helped to boost your business? India is a leading provider of vaccines to the world. The growth of our vaccine industry has surely helped us with increased usage of cold chain management technologies. Today, every vaccine manufacturer is using HEATmarker VVM technology for their vaccines. We are very fortunate to have the opportunity to serve all vaccine companies in the region for more than a decade. I wish to stress here that Ministry of Health,
Government of India has immense contribution in developing the vaccine cold chain in the country. The commitment and involvement of government in improving cold chain in government distribution is remarkable. Government immunisation programmes have ensured that every vaccine used is monitored from manufacturing till point of immunisation by using VVM and other cold chain management technologies. But currently such effective tools are not used in private distribution of vaccines. There is a serious need to extend the same cold chain monitoring technologies to private distribution of vaccines covering the entire cold chain. The government is planning to implement the GST Bill in April 2015.
What is your view? The long awaited introduction of GST is being implemented soon. The GST model with two components (CGST and SCST) is going to bring uniformity in taxation across all the states. For companies like us having import, trading and services as major activities, alignment of taking and utilisation of credit for central CST and state GST will be advantageous. It is a milestone reform and the challenge will be its smooth implementation; for government and also tax payers. How large is your international presence and which new markets do you plan to explore? Lisaline has operations in India which cater to markets in India and South Asia. Our subsidiary in Dubai handles
the cold chain business in the Middle East region. Lisaline will complete 10 years in the Middle East next year. Currently our total strength is 34 and we are now in process of expanding our sales and service team in India. Could you give us some indication of your future plans? Lisaline is focussed on cold chain management and will continue to grow in the same business. Our short-term plan is to develop KOOL LINE – real time online cold chain monitoring services. The KOOL LINE model is based on outsourcing datalogging of the entire cold supply chain. A pharma, food or logistics company can enter into a contract for KOOL LINE services and enjoy hassle free datalogging of all their storage sites and line, real time with alert management. For the long term, we are planning manufacturing activities of cold chain products in India. We will also expand our calibration laboratory to cover more parameters. To create more awareness and a knowledge base for cold chain management in the country, we will always be happy to share our knowledge and participate in forums, and training courses on cold chai management. u.sharma@expressindia.com
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GST and its impact on pharma Dr Milind Antani, Legal & Tax Counseling Worldwide, Nishith Desai Associates and Ashish Sodhani, Member, International Tax Practice elaborate on how GST implementation would impact the pharma industry
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he current indirect tax system in India is characterised by multi-stage taxation with levy of taxes not only at the central level but also at the state level. Customs duty is imposed on imports, central excise on manufacture, central sales tax (CST)/value-added tax (VAT) at the time of sale and service tax on provision of services. Other taxes such as octroi, entry tax and cess are also levied by municipal and local authorities. It is also not possible to get credit for taxes which could have been used to offset other indirect taxes that are payable by the taxpayer viz. CST is not creditable against VAT, service tax not creditable against CST/VAT, customs duty is not creditable at all.1 This results in cost of taxes increasing significantly and also increases compliance costs as the taxpayer has to file several returns every month with different authorities. With a view to simplify this tax regime, the legislature decided to bring about a comprehensive tax system which would reduce the burden on the taxpayer. The Goods and Services Tax (GST) is a single, broad-based comprehensive tax system which levies tax on manufacture, sale and consumption of goods and services at a national level. The tax has to be paid by the seller or provider of service with the right to claim input credit for the tax paid by him at the time of purchasing the goods or procuring the service. This removes credit anomalies which are present under the current indirect tax law and in turn has a favourable impact on profits and pricing of goods and services. GST is not additional tax but will subsume excise duty, service tax, additional duties of customs and CST at the central level and value-added taxes, entertainment tax, luxury tax, oc-
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DR MILIND ANTANI Legal & Tax Counseling Worldwide, Nishith Desai Associates
troi, lottery taxes, electricity duty, state surcharges related to supply of goods and services and purchase tax at the State level. GST system in India essentially envisages two taxes – State Level GST (SGST) and Central Level GST (CGST). Both the taxes will be levied on the taxable value of a transaction. The Government is expected to fix a combined GST which is expected to be at around 14-16 per cent. The the rates of CGST and SGST will then be fixed by the Centre and States. CGST and SGST combined together are referred to as IGST. If GST is implemented how it stands today, it could make various business decisions, ‘tax neutral’, thus, ensuring that commercial efficiencies are not compromised on account of tax constraints. Some of the key aspects of business operations that would likely be impacted by GST are as follows: ◗ Change in tax rate for supplies as well as purchases; ◗ Transactions/supplies which are currently not taxable may become liable to GST,
GST is levied on manufacture, sale and consumption of goods and services at a national level. It’s paid by the seller or provider of service with the right to claim input credit for the tax paid by him at the time of purchasing the goods or procuring the service and vice-versa; ◗ Credit availability for input taxes; ◗ Amendment/withdrawal of tax schemes, valuation provisions.
Impact of GST on pharma industry The Indian pharma industry, estimated turnover at ` 450 billion, ranks fourth globally in terms of volume and is amongst the largest producer of pharma products in the world along with US, Japan, Europe and China.2 Similar to the manufacturing industry, the pharma industry also enjoys low cost of production due to economies of scale. But the levy of multiple taxes, loss of credit of tax paid, compliance
ASHISH SODHANI Member, International Tax Practice
and litigation cost associated with the present tax set up tend to raise prices which eventually result in causing problems to the pharma industry. With the introduction of GST, the most visible impact appears to be the proposed discontinuance of CST. It is a cost to pharma manufacturers whenever they procure raw materials from outside their state and if sale is on inter-state basis.3 This is because of the fact that CST paid in purchases cannot be set off against the VAT liability of manufacturer /dealer. Another impact would be a review of the present warehousing strategies followed by the pharma industry. The common practice of most pharma manufacturers is that they maintain warehouses in different states to evidence movement of goods from one warehouse to another so as to save on the CST.4 Some manufacturers also went to the extent of setting up warehouses at locations like Pondicherry or Daman as the CST rate at such locations were previously lower
than the rate prevalent in other states.5 Therefore, with the implementation of GST, pharma manufacturers can set up warehouses for distribution at select strategic location without looking at the same tax planning options resulting in cost of operations. Currently, pharma goods attract excise duty at 4.12 per cent whereas the active pharmaceuticals ingredients (API), which are inputs for manufacture of pharma products, typically attract duty at 8.24 per cent. This result in accumulation of differential Cenvat Credit for the manufacturers not engaged in export of pharma goods due to the difference in duty rates of inputs vis-à-vis the finished goods. This becomes an issue because the Central Excise/ Cenvat Credit legislation does not provide any mechanism for refund of such accumulated credit. With the CGST presumed to have a single rate for both goods and services, going forward accumulation of credit may cease to be an issue for the industry. GST is proposed to be implemented from April 1, 2016. Essentially it is the States which need to accept GST for it to be implemented in the country. With the current scheme of things, the discussions that are going on between the Finance Minister and the States it seems more likely than not that GST will become effective from the proposed dates. Further, with the new government having majority in the Centre and also starting to have majority in the States, it will not be too difficult to implement GST. The continuous effort to have discussions with the representatives of the State governments to make GST consistent with what all the States wants will also be useful for implementing it on time.
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PHARMA LOGISTICS ◗ INSIGHT
◗ PROFILE
GST: The road ahead ‘Logistics Pratik Jain, Partner —- Tax, KPMG India shares insights on the way forward after GST implementation
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n 2006, an announcement was made about the introduction of GST by 2010. Achieving one of the biggest indirect tax reforms of the century was not expected to be a cakewalk. Key areas of debate have been the fiscal autonomy of States, compensation mechanism for States in case of loss, ambit of GST, etc. After hectic parlays, including firm commitments towards compensation on potential revenue loss to states and acceding to their demand on levy of a non-creditable GST on inter-state transactions, the Union Finance Minister was able to reach a broad consensus which saw the Constitutional Amendment Bill (the Bill) being reintroduced in the Parliament in December 2014. Hopefully, the Bill will be passed in the budget session. This could further brighten the chances of GST getting implemented from April 1, 2016. GST may significantly impact the pharma sector in many areas. The first challenge could be to determine the rate of GST on pharma products, which generally attracts a concessional excise duty as well as a state VAT. Further, many life saving drugs are completely tax exempt. GST, by definition, is based upon the concept of minimal exemptions and concessions. Therefore, the current exemptions/concessions may not continue under GST. Further, the entire margin across the distribution chain would be subject to central GST, which is not plausible as central excise duty is currently not applicable beyond the manufacturing stage. This could, thereof, impact the pricing of these products,
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PRATIK JAIN Partner - Tax, KPMG in India
significantly. The quantum of benefits currently derived by the units operating from the excise free zones may undergo a change owing to conversion of current exemptions into a refund scheme. The mechanism for computation of GST refund needs to be worked out to protect existing benefits are under the new regime. There could be significant impact on the supply chain, both in terms of sourcing as well as distribution. Tolling and contract manufacturing arrangements may need to be reviewed in light of fundamental changes in law like; removal of central sales tax, GST on stock transfers and liberal credit system. Similarly, the warehousing strategies may need to be reviewed, as in absence of CST multiple warehouses may be less attractive. However, the Bill provides for introduction of non-creditable, one per cent additional tax (in addition to GST) on inter-state
supplies, which may continue to distort the otherwise efficient supply chain under the GST regime. As GST is expected to have a liberal credit regime, tax paid on most goods and services should not be a cost and could have a positive bottom line impact. However, overall cash flow requirements may change owing to the principles of minimal concessions and exemptions, levy of GST on stock transfers, possible higher GST rate on imports, etc. Further, the current IT, MIS systems and processes could require huge upgrades to meet the GST requirements. GST implementation may still take some time, but the question before the industry is how to prepare for the new regime. Clearly, given the magnitude of changes that need to be done, the preparation needs to start now. The first step towards transition may be to assess the impact of GST on business. This could then help in preparing an action plan for the transition and identifying the points on which the industry needs to initiate advocacy efforts with the government. The action plan may need to include several important aspects such as, communication with vendors/customers, treatment of transition stock, pricing strategies, changes in systems and processes, etc. GST may not only change the tax system in many ways, but may change the way business is conducted. (Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG in India)
means having the right thing, at right place, at right time’
Z
ORBA Logistics Pvt Ltd (ZLPL) is an international freight forwarding company founded by experienced and motivated professionals from the industry. The key person Vaishali Shah, Chief Executive Officer and Managing Director, ZORBA Logistics, has an experience of more than 24 years in logistics industry. ZLPL began its services in the year 2010. Since then, the company has diversified into offering a range of services to meet the customers’ most
ZLPL began its services in the year 2010. Since then, the company has diversified into offering a range of services to meet the customers’ most crucial shipping needs by land, air and sea
VAISHALI SHAH Chief Executive Officer and Managing Director, ZORBA Logistics
crucial shipping needs by land, air and sea.
Key services International forwarding and trade compliance: Healthcare companies can expect flexible, cost-efficient solutions for sea, air, rail, road transportation and customs brokerage services.
Warehouse management and fulfillment Product fulfillment is more complex in the heavily regulated healthcare industry. ZLPL global expertise ensures the maintenance of the
highest standards wherever the company operates. With manufacturing (especially for the generic market) increasingly moving to the developing world, the company is best placed to help maintain quality and reliability all through the supply chain. All integrated logistics solutions are customer specific, individually designed and implemented to meet precise requirements. That said, the global IT and process standards, located in shared environments, enables leveraging on cost and best practices across a selection of areas which includes: ◗ Pharmaceuticals ◗ Consumer healthcare ◗ Medical devices and equipment
Zorba Logistics is a specialised supply chain innovation designed for the pharma and healthcare industry. Pharma chain resolves customers’ regulatory requirements and provides configurable levels of shipment monitoring, realtime visibility and proactive intervention in line with the specific supply chain needs Within the pharma industry, integrated logistics provides supply chain management services for inbound and outbound. ZLPL logistics management and execution functions within a collaborative environment, which leads to: ◗ Improved service levels and
traceability ◗ Reduced transport, warehousing, management and supplier related cost ◗ Reduced inventory levels ◗ Best practice sharing and continuous improvement ◗ Flexibility and adaptability to change ◗ Reduced environmental
externalities The services provided will flexibly support the customers to efficiently source, make, deliver and service the products on a global scale.
Developed and globally launched pharma chain healthcare specific logis-
tics solution offering: ◗ Door-to-door ◗ 24-hour alert and corrective action system ◗ Standardised SOPs and training programmed Zorba Logistics is a specialised supply chain innovation designed for the pharma and healthcare industry. Pharma chain resolves customers’ regulatory requirements and provides configurable levels of shipment monitoring, real-time visibility and proactive intervention in line with the specific supply chain needs. Contact details Zorba Logistics Tel: +91-22-40061441/2/3/5 vaishali@zorbalogistics.com www.zorbalogistics.com
Pentagon Waterlines: Offering high quality and value added services P
entagon Waterlines provides excellent quality freight forwarding, transportation, project cargo, logistic solution, warehousing services and more. The company has established itself as a prominent shipping company for over a decade. The company strives to gain the respect and ongoing support of its customers by offering high quality and value added service while maintaining the highest ethical standards. The objective is to pe’form beyond the customers’ expectations in everything they do. Pentagon Waterlines is committed to provide its customers with value-added services. It strives to develop a long-term business relationship with its customer, which is founded on the ability to help identify and recommend the best solution for each customer’s business
environment. The company strives to improve relationship with its customers and the ability to provide quality products and solutions to its customers’ requirements without losing focus on ‘Right-on-Time’ delivery system. The company caters to the logistic requirements of a large number of multinational firms and other companies operating in India. The company is medium sized but believes in high quality of service and always keeps focused on offering quality services. In line with the global trend, the company had already taken sufficient initiatives long ago to outsource business partners and vendors, thereby being able to provide a wide range of services at economical costs. It offers multimodal transportation, air, ground, ocean and warehousing. Pentagon Waterlines re-
alises that clients have specific requirements with regards to their shipments. The company therefore spends considerable time to consult clients individually to understand their specific requirements. Thus it never tries to fit a standard product to the customers' special needs. Pentagon Waterlines have the resources and the expertise to help compete more effectively. The company follows a policy of recruiting and nurturing competent professionals with sufficient autonomy in day-to-
day activities. Emphasis is put on prompt and effective service and emergency assistance is available ‘round the clock.’
Vision To provide specialist freight transport services and logistics that are of a consistent, highquality standard whether in mainstream trades, utilising conventional modes or complex projects necessitating multi-modal solutions in challenging territories.
Mission To create a world class supply
chain brand which will offer the most simplified, innovative, reliable and seamless supply chain solutions with real-time visibility along the supply chain pipeline to customers so as to free them to concentrate on their core businesses and help them grow for mutually beneficial long term business relationship. Contact details Pentagon Waterlines G-6, Ground Floor, Everest Grande Bild, Shanti Nagar, Mahakali Caves Road, Andheri (W), Mumbai - 400 093 Tel.: +91-22-6166 2700 / Dir.: +91-22-6166 2715 Fax : +91-22-6166 2705 Mobile: +91 98195 99791 Email: murli@pentagonwaterlines.com www.pentagonwaterlines.com
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Safexpress opens logistics parks in Dhule and Jammu The logistics park will be operational 24x7, 365 days in a year to provide time-definite deliveries
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upply chain and logistics firm Safexpress has launched its high-tech logistics parks at Dhule in Maharashtra and Jammu. The logistics park in Dhule is spread over an area of 12,50,000 sq feet, located on NH 8. The logistics park in Jammu is spread over an area of 80,000 sq feet and is located on Jammu-Pathankot National Highway 1A. Speaking about the Dhule logistics park, Rubal Jain, Director - Corporate Strategy, Safexpress said, “Dhule is an emerging city of Maharashtra. The city comprises numerous small scale industries that fall under Maharashtra Industrial Development Corporation (MIDC). Dhule is a hub for both agricultural and textile industries. A large number of edible oil manufacturing plants and food processing
units are located in this belt. Raw materials for paper mills, cotton mills and readymade garment industry are also available from this region.” Vineet Kanaujia, VP – Marketing, Safexpress said, “Our logistics park at Dhule has a column-less span of over 131 feet and enables loading/unloading of over 108 vehicles simultaneously. The dedicated bays and docks at our logistics park in Dhule provide an uninterrupted and unidirectional flow of inbound and outbound goods. The logistics park has a floor load capacity of six metric tonne per square metre and has a truck docking area width of over 80 feet. We have installed high-tech equipment. Moreover, to make our logistics park eco-friendly, we have taken special go-green initiatives by investing in rainwater harvesting and developing
special green zones.” Kanaujia added, “This logistics park will be operational 24x7, 365 days in a year to provide time-definite deliveries. Due to our non-stop operations, we will be providing the fastest transit time for deliveries all across India to over 610 destinations from Dhule.” Speaking about the Jammu logistics park, Jain said, “Jammu logistics park has a column-less span of over 100 feet and enables loading/unloading of over 26 vehicles simultaneously. The dedicated bays and docks at our logistics park in Jammu provide an uninterrupted and unidirectional flow of inbound and outbound goods. The logistics park has a floor load capacity of six metric tonnes per square metre and has a truck docking area width of over 40 feet.” EP News Bureau-Mumbai
Logistics park in Dhule
Logistics park in Jammu
UPS expands Temperature True Packaging service UPS Temperature True Packaging supports more than 500 healthcare companies
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PS has expanded its UPS Temperature True Packaging service, which further broadens the scope of its coldchain shipping offerings. The comprehensive service now includes expert consultation, package procurement and, in a company first, four new off-theshelf, specially designed packaging lines available exclusively to UPS customers. Each of the new convenient cold-chain packaging lines was engineered, tested and prequalified by the manufacturer for use in UPS’s US domestic
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network and designed to fit customers’ budget and riskmitigation requirements. UPS professionals help customers select and procure the right cold-chain packaging built to meet appropriate levels of safety and protection standards. John Menna, Vice President of Global Strategy, Healthcare Logistics, UPS said, “Healthcare customers benefit from more expertise and options created to minimise costs and maximise efficiency when time and temperature control is the
highest priority.” UPS Temperature True Packaging supports more than 500 healthcare companies globally and demand continues to grow for cold-chain services. In addition to the four new US domestic package options, UPS Temperature True Packaging includes in-house UPS experts based in the US, Europe and Asia Pacific to help customers build their packaging strategies and optimise package engineering and validation through design qualification, operational qualifica-
tion and performance qualification protocols. UPS's proprietary packaging options keep items refrigerated, in a controlled room temperature environment or frozen for two or more days. The UPS Temperature True portfolio offers temperaturesensitive storage and transportation solutions, consultative expertise and services, ranging from Controlled Room Temperature to cryogenic (1500 c), tailored for companies in the pharma, biotech, medical device and life sciences indus-
tries. UPS Temperature True Packaging follows the recent launches of UPS Temperature True Cryo and three new UPS Temperature True freight service levels that allow for different time-in-transit and control options for bulk shipments. These services are complemented by proactive monitoring and intervention technologies, extensive regulatory expertise and a global network of 49 UPS healthcare-dedicated facilities. EP News Bureau-Mumbai