MedCo PHARMACEUTICAL MANUFACTURING FIRM

MedCo PHARMACEUTICAL MANUFACTURING FIRM

SICOP INDUSTRIAL COMPLEX, GANGYAL , JAMMU (J&K)

Submitted by:RADHIKA GANDOTRA (45-MBA-15)SAHIL SHARMA (49-MBA-15)SATYA DEV SINGH (52-MBA-15)TUSHAR GUPTA (65-MBA-15)VIDHU ARORA (68-MBA-15)

Semester: 2Section: BSubject : Production and Operation Management Submitted to : Mrs. Farah Choudhary

Semester: 2Section: BSubject : Production and Operation Management Submitted to : Mrs. Farah Choudhary

WHY PHARMACEUTICAL ?WHY PHARMACEUTICAL ?

• The Pharmaceutical Industry is important because it’s a major source of medical innovation.

• The Pharmaceutical In India is the world third largest in terms of volume and stands 14th in terms of values.

• Huge progress is expected in the field of pharmaceuticals

• Now a days people are facing HEALTH ISSUES, so our motive is to produce High Quality Medicines at affordable prices.

BUSINESS DESCRIPTIONBUSINESS DESCRIPTION• An industrial unit in the small scale sector at SICOP, Industrial

Estate, Gangyal Jammu for the manufacturing of Oflox Tablet , Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.

• A partnership firm that will be registered under Indian Partnership Act, 1932

• The installed capacity of the unit is envisaged at 1800 MT of Oflox Tablet , Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.

• It is being proposed to manufacturer Quality products as per the specific standards which would be acceptable in the market.

• UNIT requires – necessary items of Plant and Machinery along with auxillary and testing equipments.

• The proposed unit would be registered with the office of General Manger, District Industries Centre, Jammu.

Vision & Mission of the CompanyVision & Mission of the Company

VISION MISSION

OBJECTIVESOBJECTIVES

To position our product in the mind of target audience as safe and economical.

BIO-DATA OF PROMOTERSBIO-DATA OF PROMOTERS

BRAND LOGO AND BRAND NAMEBRAND LOGO AND BRAND NAME

“LIVE LIFE WELL”

LOCATION JUSTIFICATIONLOCATION JUSTIFICATION

• While setting up of any industry, the prime factor to be taken into consideration isthe location of the unit.

• We have decided to locate our factory at SICOP industrial Complex, Gangyal Jammu where we can avail of the following locational advantages: Easy availability of both skilled and unskilled labour. Labour can be easily

available at apt rates in nearby villages. All the Infrastructural facilities of Power, Water, Banking, Transportation,

Warehousing, etc. can be easily available in SICOP because it is well developed industrial area.

The main factor of location is the market of the product. As Medicines are needed by hospitals and by many chemist shops

The cost estimates of land and site development are given in further slides.

Requirements for setting up a factory:Requirements for setting up a factory:

• Land: location of the industry will be 10 kms away

from Jammu city (Gangyal).• Clearance certificate

Sales tax/VAT, Central exciseElectricity clearanceCertificate of power availabilityConsent for operation from Pollution Control BoardWater supplyApproval of construction activity and building plan

PLANT LAYOUTPLANT LAYOUT

Water Storage

Area

Water Storage

Area

AREA IN (SQ. FT.)AREA IN (SQ. FT.)             

  SR.NO. PARTICULAR Sq. Ft.               

      TOTAL AREA   22400                            

                      

  1   OPEN AREA   7944               

             

  2   PRODUCTION DEPT   6480               

             

  3   GODOWN ( 2 )   3312               

             

  4   QUALITY CONTROL AREA   1104               

             

  5   PACKING DEPT   960               

             

  6   MAINTENANCE AREA   680               

             

  7   WASTE MATERIAL STORE   300               

             

  8   PRODUCTION OFFICE   480               

             

  9   WATER SYSTEM AREA   564               

             

  10   REST ROOM   360               

  11   WASHROOM (2)   216               

MATERIAL INPUTSMATERIAL INPUTS

MACHINES MACHINES

SUPPLIERSSUPPLIERSRaw materials suppliers:

– Ciprofloxacin : Aarti Durgs, Mumbai– Metaformine : Aarti Durgs, Mumbai– Glimapride  : Kopran Pvt. Ltd.,Pondicherry– Alenof  M/s Sundaram Agro Chemicals,Chennai           – Metroniderote : Aarti Durgs, Mumbai

Machinery suppliers:– M/s. Shivalaya Machinery Mfg. Co. F/13, Indore– Kamdhenu Enterprises, Hyderabad,– Excellent Engineering Enterprises, Hyderabad– Dhopeshwar Precision Techniques, Hyderabad1. – M/s Quality Machine Tools, 108, Jawahar Marg, Indore – M/s Standard Machine & Tools Ltd., 43, Siyaganj, Indore – M/s Kudarati Machinery & Metals, 3/1, Sanyogitaganj, Indore 

MANUFACTURING PROCESSMANUFACTURING PROCESS

Receiving way

CHECKLIST•DESCRIPTION•MATERIAL•PO NUMBER

If yes

One by One sample is being taken

APPROVED REJECTED UNDER TESTING

After it is Approved then the MATERIAL is passed through PASSBOX

In Production

WATER SYSTEM AREAWATER SYSTEM AREA

TANK CAPACITY 10000 litresTANK CAPACITY 10000 litres

1000 LITRES USED IN 1 DAY

COMPETITORSCOMPETITORS

• M/s. Meghana Healthcare,Jammu• Faroz Medical Pharmacy , Jammu

• Ipca Laboratories, Mumbai

• Aurobindo Pharma, Hyderabad.• Cadila Laboratories, Mumbai• ICSP Pharmacy, Jammu

MARKET POSITION

• Marketing is an important area of management in an industrial enterprise. The old concept of marketing was product oriented whereas the new concept is customer-oriented.

• It gives the company an upper hand in the competition . The gap between the demand and supply of manufacturing of medicines can be targeted by the use of efficient marketing strategies.

In what ways Marketing being done?In what ways Marketing being done?

• DIRECT MARKETING:- It is an form of advertising which allows business to communicate straight to the customer, with advertising techniques that can include cell phone text messaging, email, interactive customer. So we can use these techniques to increase our client base and make that strong.

• MARKETING CONSULTANTS:- By hiring a Marketing consultant we will improve our fuel filter business. It will also provide the expertise we need to identify the most productive marketing channels and will help in raising the brand profile within the industry.

• ONLINE MARKETING:- It is also called as Internet advertising. It is a form of marketing which uses the internet to deliver the promotional marketing messages to consumers. It is also a best form of marketing for fuel filters businesses.

PRODUCTION SCHEDULEPRODUCTION SCHEDULE

PRODUCTPRODUCTION

PERDAY

PRODUCTION PER

MONTH( 25 DAYS)

PRODUCTION PER

ANNUM

Tablets 40 BOXES (400 strips) 1000 BOXES 12000 BOXES

Capsules 40 BOXES (800 strips) 1000 BOXES 12000 BOXES

CERTIFICATESCERTIFICATES

Constitution of the uniti. Deed of partnership

ii. General Power of Attorney

iii. Name & Address of the Partners

Iv. PAN Card of the Partners

Registration of industrial unit Statement of Plant and Machinery Sanction letter from the financial Institution / Banks for term loan & working

capital Certificate from a Chartered Accountant regarding Sources of Finance First bill(s)/money receipt of purchase of raw material List of employees with name, address and designation

FINANCIAL ASPECTSFINANCIAL ASPECTS

LAND & BUILDINGLAND & BUILDING

Sr.no. Particular Sq. Ft. Lease rate (40 years)

Total

1 Total area 22400(4 kanal)

Rs. 5,00,000/ kanal 20,00,000

Total Construction Cost @ Rs 400 per sq ft• Constructed Area = ( 14456 x 400 ) = Rs. 57,82,400 open area cost @ Rs 200 per sq feet • Open Area = (7944 x 200) = Rs. 15,88,800

Total Fixed Cost of Land + Building= Rs. 93,71,200

SOURCES OF FINANCESOURCES OF FINANCE

Sr.no. Details Amount Interest Interest Per year

1 SBI bank loan 50,00,000 12.5% 6,25,000

2 Unsecured loan(5x 10,75,000)

53,75,000 10% 5,37,500

Total 1,03,75,000 11,62,500

MACHINERYMACHINERYSr.no Name of machines Quantity Amount

Rs.1 Cypter Machine 1 1000002 Vibrator 4 4000003 Cone Blender 4 1200004 Mass Mixture 2 3000005 Fluid Bed Dryer (FBD) 2 3000006 Coating Pan and coating gun 2 2000007 quality control instruments 2500008 Water Tanks 1 500000

9 Pulveriser 1 360000

10 Compressing Machines 4 16000011 Electrification and Installation 400000

Total Amount 29,90,000

Rs. 93,71,200 ( Land + Building) + 29,90,000 (Machinery) = Rs 1,23,61,200 = Rs. 1,24,00,000 (approx.)

COST OF MATERIALSr no. Details Per Month Rate / kg Total(Rs.)

Per month1 Ciprofloxacin 50 kg Rs. 1330 66,5002 Metaformine 60 kg Rs 160 9,6003 Glimapride 30 kg Rs 16000 4,80,0004 Alenof 40 kg Rs. 1145 45,8005 Metroniderote 50 kg Rs 850 42,5006 Packing boxes

( 3” x 1” x 2.5”)2 tablets

2000Boxes

Rs . 3 / Box 6,000

7 Packing boxes( 1” x 1” x 0.5”)2 capsules 0

2000Boxes

Rs. 2 / Box 4,000

Total 6,54,400

Annual cost of material is 6,54,400 x 12 = Rs. 78,52,800

SALARY & WAGESSALARY & WAGES Sr.No. Details No. Of

Staff Per head Monthly Yearly Rs.

1 Quality Check Officer 1 15000 15000 1,80,000

2 Production Manager 1 15000 15000 1,80,000

3 Capsule Production Manager

1 15000 15000 1,80,000

4 Tablet Production Manager

1 10000 10000 1,20,000

5 Peon 2 1500 3000 36,000

6 Skilled workers 4 3500 14000 1,68,000

7 Semi-skilled Workers

4 2000 8000 96,000

Total 80000 9,60,000

WORKING EXPENSESWORKING EXPENSESSr.no Details Per month

(Rs.)Per annum (Rs.)

1 Electricity 10,000 1,20,000

2 Insurance 30,000 3,60,000

3 Repair & maintenance 15,000 1,80,000

DEPRECIATIONDEPRECIATIONSr. no Details Rate Total (Rs.)

1 Machinery 10% 2,99,000

2 Building 5% 2,89,120

Total 5,88,120

ADMINISTRATIVE EXPENSESADMINISTRATIVE EXPENSESSr. no Details Monthly Rs. Yearly Rs

1 Accounts 1000 120002 Printing and stationary 500 60003 Postage and telegrams 500 60004 Others 200 2400

Total 2200 26400

SALES & DISTRIBUTION EXPENSESSALES & DISTRIBUTION EXPENSES

Sr. no Details Amount Rs.

1 Commission 400002 Advertising 600003 Salesman 300004 Compensation 15000

Total 145000

Medicine Cost per strip of 10 tablet

Cost per box Monthly production cost

Annual production

oflox 59 590 5,90,000 70,80,000

ciprovid 45 450 4,50,000 54,00,000

glycomet 20 400 4,00,000 48,00,000

Glyciphage 150 3000 30,00,000 3,60,00,000

5,32,80,000

Total sales : Rs 1,78,00,000 Closing stock : Rs 3,54,80,000

Particular Amount[ cr.] Amount [dr.]Total sales 1,78,00,000Less:Cost of production :Raw material PackagingSalary and wages Electricity consumedinsurance Repair and maintenance Interest on loanDepreciationAdministrative expensesSales and distribution expenses

77,32,8001,20,0009,60,0001,20,0003,60,0001,80,00011,62,5005,88,12026,4001,45,000

Gross profit 640518Less tax @ 35%Net profit 39,82,017

1. Gross profit ratio:

GPR = gross profit x 100

Net sales= 61, 26,180 / 15000000 * 100 = 40.95%

2. Net profit ratio:

NPR = net profit x100

Net sales= 39, 82,017/ 15000000 * 100 = 26.54%

FUTURE SCOPE AND EXPANSIONFUTURE SCOPE AND EXPANSION

• As of now the reach of our company is lie in north India but we want to expand our business. Our dream is to take the business to all India level. Selling our business does not feature in our future plans. We intend to establish our company as the largest pharmaceutical manufacturer of the country. As of now the parts which we are importing from others in future we intend to manufacture those parts by ourselves.

• Another ways like expanding our products is the internet or by establishing one or more factory outside Jammu.