nutra plus products
TRANSCRIPT
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A
Summer Internship Project Report
on
Possibilities of Diversification & Enlargement of market share
at
Nutra Plus Products (India) Limited
Submitted to:-
Gujarat Technological University
Prepared by:-
SHETH JAYDEEP HARESHKUMAR
Enrollment No. 097030592003
Under the guidance of
Mr. Nishant Dhruv
MBA Department,
Atmiya Institute of Technology and Science, Rajkot,
Batch - 2009 2011
July- 2010
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DECLARATION
I, the undersigned , Sheth Jaydeep H, a student of MBA of AITS, hereby
declare that this project work entitled A SUMMER INTERNSHIP PROJECT REPORT
ON NUTRA PLUS PRODUCTS (INDIA) LTD submitted by me to the Gujarat Technological
University for the partial fulfillment of the requirement for the award of the degree of Master in
Business and Administration (MBA), is solely my own work. The report embodies the findings
and various other information based on my own study and observation of the company only and
not any else.
Place: RAJKOT
Date: / /2010 (JAYDEEP SHETH)
III
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ACKNOWLEDGEMENT
During the practical training at NUTRA PLUS- PR LTD. and while preparing this
report many known and unknown faces have directly and indirectly helped me.
I would like to take this opportunity and sincerely convey my thanks to all the people
who have helped me for the training and preparation of the report. I am extremely thankful to
SHRI MUKESH BHAI NAIK for getting me acquainted to the company and giving me the
golden opportunity to carry out this interesting training atNUTRA PLUS PR LTD.
I am grateful to each one working in the organization for their humble and generous
behavior towards me. I am sincerely thankful to the entire team of NUTRA PLUS-PR ltd. In
addition of allowing me for the industrial training of the company and study of the organization
and various aspects of the managerial functions they also provided me many details and ideas in
the preparation of this project report.
Moreover I would like to thank and express my sincere gratitude to our
, Head of MBA department Mr. Sunil Misra, My project guide Mr. Nishant Dhruv and other
faculty members of the institute, who have significantly helped and supported me and provided
me all the facilities to make my industrial training more fruitful.
PREFACEIV
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Man cannot develop himself through the theoretical knowledge .Practical
Knowledge is also required in each and every field and aspect of life, with this purpose, Gujarat
Technological University has made, a compulsory Summer Project Training for the students of
MBA. This project report prepared provides the overview of the pharmaceutical industry
together with aspects like challenges, opportunities of the industry as well as the major players in
the industry in India. After consideration of the industry the report then focuses attention on one
of the players (company) of the industry namely NutraPlus Products(India) Ltd. The overviews
of the various departments of the Nutra Plus Products (India)Ltd is then given .Finally the report
contains the recommendations and the suggestions made to the company on the basis of
Preliminary research.
V
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CHAPTER - 1
1.1 Industry Overview
INDIAN PHARMACEUTICAL INDUSTRYThe Indian pharmaceutical sector has come a long way, being almost non-
existent before 1970 to a prominent provider of healthcare products, meeting almost
95 per cent of theCountrys pharmaceuticals needs.
The Industry today is in the front rank of Indias science-based industries with
wide ranging capabilities in the complex field of drug manufacture and technology. It
ranks very high in the third world, in terms of technology, quality and range of
medicines manufactured. From Simple headache pills to sophisticated antibiotics and
complex cardiac compounds, almost every type of medicine is now made
indigenously.
Playing a key role in promoting and sustaining development in the vital field
of medicines, Indian Pharmaceutical Industryboasts of quality producers and many
units approved by Regulatory authorities in USA and UK. International companies
associated with this sector have stimulated, assisted and spear headed this dynamic
development in the past 53 years and has helped to put India on the pharmaceutical
map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units with severe price competition and government price control. It has
expanded drastically in the last two decades.
There are about 250 large units that control 70 per cent of the market with
market leaderholding nearly 7 per cent of the market share and about 8000 Small
Scale Units together which Form the core of the pharmaceutical industry in India
(including 5 Central PublicSector Units). These units produce the complete range of
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pharmaceutical formulations like medicines ready for consumption by patients and
about 350 bulk drugs and chemicals having therapeutic value and used for production
of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing
for most ofthe drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug Control
Authority. Technologically strong and totally self-reliant, the pharmaceutical industry
in India has low costs of production, low R&D costs, innovative scientific manpower,
strength of national laboratories and anincreasing balance of trade.
The total Indian production constitutes about 13 per cent of the world market
in value terms and, 8 per cent in volume terms. The per capita consumption of drugs
in India, stands at US $ 3, is amongst the lowest in the world, as compared to Japan-
US $ 412, Germany- US $ 222 and USA- US $ 191.
Current Status:-India's 9.4 billion US $ pharmaceutical industry is growing at the rate
of 14 percent per year. It is one of the largest and most advanced among the
developing countries.The Indian pharmaceutical industry can reach a market size of
US $ 14.6 billion by 2013.The graph of US $ in billion Vs Years is shown below. It
shows how the Indian pharmaceutical industry has grown in just time span of 5-6
years and if it continues to grow at this rate then according to the research report of
WHO it will become around 14.6 US $ industry by 2014.
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US $
Years (Source: Indian Pharmaceutical Report)
Figure 1.1
A beginning has been made with the signing of General Agreement on Tariffs
and Trade in January 2005 with which India began recognizing global patents. Soon
after, the Indian pharmacy market became a sought after destination for foreign
players. Foreign direct investment into the countrys pharmacy industry touched US $
172 million during 2005-06 having grown at a CAGR of 62.6 per cent during the
period beginning 2002-06.
A beginning has been made with the signing of General Agreement on Tariffs
and Trade in January 2005 with which India began recognizing global patents. Soon
after, the Indian pharmacy market became a sought after destination for foreign
players. Foreign direct investment into the countrys pharmacy industry touched US $
172 million during 2005-06 having grown at a CAGR of 62.6 per cent during the
period beginning 2002-06.
The sector recorded strong growth in the second quarter ended in September
2009, driven by launch of new generic drugs with 180 days exclusivity period in the
US market. The top ten pharmacy companies reported an impressive 57 per cent
growth in consolidated net profit at US $ 314.3 million, as against US $ 200.7 million
in the same quarter of the previous year, while consolidated net sales were up 51 per
cent at US $ 1.7 billion. These Statistics of the top 10 companies are shown below in
the following table:-
The sector recorded strong growth in the second quarter ended in September
2009, driven by launch of new generic drugs with 180 days exclusivity period in the
US market. The top ten pharmacy companies reported an impressive 57 per cent
growth in consolidated net profit at US $ 314.3 million, as against US $ 200.7 million
in the same quarter of the previous year, while consolidated net sales were up 51 per
cent at US $ 1.7 billion. These Statistics of the top 10 companies are shown below in
the following table:-
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Table 1.1
There are 74 U.S. FDA approved manufacturing facilities in India, more than
in any other country outside the U.S, and in 2005, almost 20 per cent of all
Abbreviated New Drug Applications (ANDA) to the FDA were filed by Indian
companies. Growth in other fields not enough generics is still a large part of the
picture. London Research Company, Global insight estimates that Indias share of the
global generics market will have raised from 4 per cent to 33 per cent by 2007 .
The focus of the Indian pharmaceutical companies is also shifting from
process improvisation to drug discovery and R&D the Indian companies are setting up
their own R&D setups and are also collaborating with the research laboratories like
CDRI, IICT etc.
The Changing Perception of the growing pharmaceutical industry:-
As per WTO, from the year 2005, India granted product patent recognition to
all new chemical entities (NCEs) i.e., bulk drugs developed then onwards. This
introduction of product patent regime from January 2005 is leading into long-term
growth for the future which mandated patent protection on both products and
processes for a period of 20 years. Under this new law, India will be forced to
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recognize not only new patents but also any patents filed after January 1, 1995. Under
changed environment, the industry is being forced to adapt its business model to
recent changes in the operating environment.
Indian pharmaceutical industry is mounting up the value chain. From being a
pure reverse engineering industry focused on the domestic market, the industry is
moving towards basic research driven, export oriented global presence, providing
wide range of value added quality products and services, innovation, product life
cycle management and enlarging their market reach. The old and mature categories
like anti-infective, vitamins, analgesics are de-growing while, new lifestyle categories
like Cardiovascular, Central Nervous System (CNS), Anti Diabetic are expanding at
double-digit growth rates.
The industry has now started to utilize the more advanced models for gaining
the faster growth. The classical models were Integrated Operations and In house
manufacturing and marketing operations. The emerging models are Contract R & D,
Contract Co-marketing and alliance. The Contract R & D model is mainly adoptable
one to the formulations area in the pharmaceutical industry. The Contract Co-
marketing and alliance model are mainly adoptable one to the bulk drug industry
especially Active Pharma Ingredients and Intermediate producing companies. There
are certain Companies also which adopt the combination of both the models such
companies are usually concentrated on the export side. Such companies often adopt
the combination strategy this significantly helps them in capturing the major market
share
The various business models that were adopted by the industry and which the
industry is now adopting are shown below.
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Figure 1.2 (Source: Indian Pharmaceutical Report)
Where: - DD & D = Drug, discovery and development
CTO = Clinical Trial Organizations
CM = Contract Manufacturing
The Indian companies are putting their act together to tap the generic drugs
markets in the regulated high margin markets of the developed countries. The US
market remains to be the most lucrative market for the Indian companies led by its
market size and the intensity of blockbuster drugs going off patent. An estimated US
$ 45 billion of drugs expected to go off patent by 2007 in US alone. The Indian
pharmaceutical industry is also getting increasingly U.S. FDI compliant to harness the
growth opportunities in areas of contract manufacturing and research. Indian
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companies such as Ranbaxy, Sun Pharma, and Dr. Reddy's are increasingly focusing
on tapping the U.S. generic market.
Outsourcing in the fields of R&D and manufacturing is the next best event in
the pharmaceutical industry. Spiraling cost, expiring patents, low R&D cost and
market dynamics are driving the MNCs to outsource both manufacturing and research
activities. India with its apt chemistry skills and low cost advantages, both in research
and manufacturing coupled with skilled manpower will attract a lot of business in the
days to come.
The Indian Government's decision to allow 100 percent foreign direct
investment into the drugs and pharmaceutical industry is expected to aid the growth of
contract research in the country. MNCs in India is facing the problem of having a very
high Drugs Price Control Order (DPCO) coverage, weakening their bottom lines as
well as hindering their growth through the launch of new products. DPCO coverage is
expected to be diluted further in the near future benefiting the MNCs.
EMERGING TREND IN PHARMACEUTICAL INDUSTRY:-
The Indian pharmaceutical industry is now discovering new opportunities of
growth in clinical research, contract research, manufacturing and innovation
opportunities. This path can lead the Indian pharmaceutical industry to huge success
endeavors.
The various areas where considerable amount of attention is now being
focused are briefly discussed as under. These areas are of major concern because by
focusing on that area the industry can significantly boost itself in line with
international industries in the same area
1) Research & Development:-
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Research & Development is the key to the future of pharmaceutical industry.
The pharmaceutical advances for considerable improvement in life expectancy and
health all over the world are the result of a steadily increasing investment in research.
There is considerable scope for collaborative R & D in India. India can offer several
strengths to the international R & D community. These strengths relate to availability
of excellent scientific talents who can develop combinatorial chemistry, new synthetic
molecules and plant derived candidate drugs.
The R & D expenditure by the Indian pharmaceutical industry is around 1.9
per cent of the industrys turnover, which is a little low as compared to foreign
research based pharmaceutical companies. However, now that India is entering into
the Patent protection area, many companies are spending relatively more on R & D.
When it comes to clinical evaluationat the time of multi-center trials, India is
providing a strong base considering the real availability of clinical materials in diverse
therapeutic areas. The emerging Scenario of the industry is described in the following
figure. There are basically four dimensions and these include contract research,
clinical research, Manufacturing opportunities and Innovation opportunities. The
contract research and clinical research are the dimensions related to the
pharmaceutical companies which are on the side of exports. While Innovation is the
strategy and dimension available to the companies in the entire sector. The companies
can emerge as the major market occupier by adoption of the innovation strategies.
Research scenario emerging in the pharmaceutical industry is shown below:-
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Indian
Pharmaceutical
Industry
(Source: Indian Pharmaceutical Report)Figure 1.3
According to a survey by the Pharmaceutical Outsourcing Management
Association and Bio/Pharmaceutical Outsourcing Report, pharmaceutical companies
are utilizing substantially the services of Contract Research Organizations(CROs).
Indian Pharmaceutical Industry, with its rich scientific talents, provides cost-
effective clinical trial research. It has an excellent record of development of improved,
cost-beneficial chemical synthesis for various drug molecules. Some MNCs are
already sourcing these services from their Indian affiliates.
2) Product Development:-
For years, firms have made their ways into the global market by researching
generic competitors to patented drugs and following up with litigation to challenge the
patent. This approach remains untouched by the new patent regime and looks to
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increase in the future. However, those that can afford it have set their sights on an
even higher goal new molecule discovery. Although the initial investment is huge,
companies are lured by the promise of hefty profit margins and the recognition as a
legitimate competitor in the global industry.
Domestic demand prevailing in the industry:-
The industry has enormous growth potential. Various factors which determine
the rising demand for pharmaceuticals are: The growing population of over of a
billion, Increasing income, Demand for quality healthcare service, Changing lifestyle
has led to change in disease patterns, and increased demand for new medicines to
combat lifestyle related diseases.
More than 85 per cent of the formulations produced in the country are sold in
the domestic market. India is largely self-sufficient in case of formulations. Some life
saving, new generation under-patent formulations continue to be imported, especially
by MNCs, which then market them in India. Overall, the size of the domestic
formulations market is aroundRs160 billion and it is growing at 10 per cent per
annum.
The market share of the different pharmaceutical product categories like
antibiotics, opthologicals, Cardiac drugs, Energy supplements and such other
categories in the industry is shown below:-
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Figure 1.4 (Source: Indian Pharmaceutical Report)
Demand for drugs for treatment of life style-related diseases such as diabetes,
cardiovascular diseases, and central nervous system are on the increase. There are
around 700,000 new cases of cancer each year and total of around 2.5 million cases. It
is estimated that there are around 40 million people in India with diabetes and the
number is rising, 5.1 million HIV/AIDS patients, and 14 million tuberculosis cases.
According to industry reports, while the Indian pharmaceutical industry witnessed a
growth of 7 percent, the cardio-vascular segment recorded 15 to 17 percent growth
and anti-diabetes segment of over 10-12 percent growth.
Exports made by the pharmaceutical industry:-
Over 60 per cent of Indias bulk drug production is exported. Indias
pharmaceutical exports are to the tune of Rs.87 billion, of which formulations
contribute nearly 55 per cent and therest 45 per cent comes from bulk drugs. In
financial year 2005, exports grew by 21 per cent.The Indian pharmaceutical market
has been forecasted to grow to as much as US $ 25 billion by the end of year 2010 as
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per Organization of Pharmaceutical Producers of India (OPPI) estimates. However,
Espicoms market projections forecast more modest but stable annual marketgrowth
of around 7.2 per cent, putting the market at US$ 31.6 billion by 2013
Domestic pharmaceutical exports, growing at 30 per cent per annum, touched
a new height of US $ 4.8 billion in the financial year 2006-07. The Years exports will
push the drug sectors contribution to Indias Exports earnings to 7.75 per cent from
the current 5 per cent. The growth in drug exports, despite the pressing generic
competition in the global market, is attributed to increased Abbreviated New Drug
Applications (ANDAs) approvals in the US market and contribution from
unconventional markets in Latin America, Australia and the emerging markets in the
Middle East and African Region.
Revenue from exports:-
The export revenue now contributes almost half of the total revenue for the top
three pharmaceutical majors: Dr Reddys, Ranbaxy and Cipla. The other major
exporters are Wockhardt Limited, Sun Pharmaceutical Industries Ltd. and Lupin
Laboratories. The formulations and exports are largely to developing nations in
CIS,South East Asia, Africa and Latin America. In the last 3 years generic exports to
developed countries have picked up. In the coming years, opening up of US generics
market and anti AIDS market in Africa will boost exports. India accounts for less than
two per cent of the world market for pharmaceuticals, with an estimated market value
of US $ 10.4 billion in 2007 at consumer prices, or around US $ 9 per capita.
India currently represents just U.S. $ 6 billion of the $ 550 billion global
pharmaceutical industry but its share is increasing at 10 percent a year, compared to 7
percent annual growth for the world market overall. Also, while the Indian sector
represents just 8% of global industry total by volume, putting it in fourth place
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worldwide, it accounts for 13 percent by value and its drug exports have been
growing 30 percent annually.
The Indian market for over-the-counter medicines (OTCs) is worth about $940
million and is growing 20 percent a year, or double the rate for prescription
medicines. The industry's exports were worth more than $ 3.75 billion in 2004-05 and
they have been growing at a compound annual rate of 22.7 percent over the last few
years, according to the government's draft National Pharmaceuticals Policy for 2006,
published in January 2006. The Policy estimates that, by the year 2011, the industry
has the potential to achieve the target of US $ 22.40 billion in formulations, with bulk
drug production going up from $ 1.79 billion to $ 5.60 billion.
Challenges and Opportunities of the pharmaceutical industry
Major Challenges of the industry:-
Underdeveloped new molecule discovery program:-
The main weakness of the industry is an under developed new molecule
discovery program. Even after the increased investment, market leaders such as
Ranbaxy and Dr. Reddys Laboratories spent only 5-10 per cent of their revenues on
R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last
year was greater than the combined revenues of the entire Indian pharmaceutical
industry. This disparity is too great to be explained by cost diffentials, and it comes
when advances in genomics have made research equipment more expensive than ever.
The drug discovery process is further hindered by a dearth of qualified
molecular biologists.Due to the disconnect between curriculum and industry, Pharma
in India also lack the academic collaboration that is crucial to drug development in the
West.
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Hue & cry against exploitation:-
In clinical testing persons from developing countries will be used to generate
data about possible effects of a drug. A feeling of unrest among them or some section
of society might develop that we are being used as guinea pigs. It might lead to
demonstrations or legislations which will hamper the growth of industry.
Back lash against outsourcing:-
Similar to BPO there might be unrest in developed nations that outsourcing of
clinical trials will lead to job loss culminating into legislation banning the whole
procedure.
Restricted items:-
There are a lot of items that are restricted under the EXIM policy from free
trading. These restrictions are a weakness for the industry and hence pose to be a
threat for its development.
Reservation for small scale industries:-
Some drugs are reserved for exclusive manufacture by the small scale units.
These are Niacinamide, Paracetamol, Glycero Phosphates, Nicotinic Acid. Corporate
Catalyst India Indias Pharmaceutical Industry. The present investment limit for units
to qualify as a small scale unit is Rs. 30 million.
No brand value:-
India has a low beep on the radar screen of MNC drug companies as no potential
clinicaltesting has been ever outsourced to India. So we have a low brand value in
global arena.
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Generic competition:-
Generic substitution is a policy for health care cost containment. National
reimbursement and insurance bodies are providing physicians and pharmacists with
incentives for prescribing cheaper generic drugs. There is increased pressure on
revenues for pharmaceutical companies, which have to concentrate on lifecycle
management. The pharmaceutical industry will experience a significant reduction in
the revenues associatedwith their blockbuster products as generic competition
captures market share. As a result given that R&D productivity is low and the cost of
developing new drugs at an all time high, the pharmaceutical industry faces
considerable hurdles with respect to maintaining revenue and earnings growth in the
future.
Opportunities in the pharmaceutical industry:-
The Indian pharmaceutical industry has a lot of strengths and hence ample of
opportunities. A few important strengths are mentioned below:-
Competent workforce:-
India has a pool of personnel with high managerial and technical competence
as skilled workforce. It has the largest English speaking population in the world.
Professional services are easily available.
Cost-effective Chemical Synthesis:-
Its track record of development, particularly in the area of improved cost
beneficial chemicals synthesis for various drug molecules is excellent. It provides a
wide variety of bulk drugs an exports sophisticated bulk drugs.
Legal & Financial Framework:-
India has a 53 year old democracy and hence has a solid legal framework and
strong financial markets. There is already an established international industry and
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business community.
Information & Technology:-
It has a good network of world-class educational institutions and established
strengths in Information Technology.
Globalization:
The country is committed to a free market economy and globalization. It has a
70 million middle class market, which is continuously growing.
Low priced products:-
The industry has thrived so far on reverse engineering skills exploiting the lack of
process patent in the country. This has resulted in the Indian pharmaceutical players
offering their products at some of the lowest prices in the world.
Quality assurance:-
The quality of the products is reflected in the fact that India has the highest
number of manufacturing plants approved by US FDA (61 plants), which is next only
to that in the US.
Dominance in the market:-
Multinational companies have traditionally dominated the industry, which is
another trend seeing a reversal. Currently, it is the Indian companies which are
dominating the market place with the local players dominating a number of key
therapeutic segments.
Self-reliance:-
Self reliance is displayed by the production of 70 per cent of bulk drugs and
almost the entire requirement of formulations within the country.
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Other Strengths:-
Low cost of production, Low R&D costs, innovative scientific manpower and
increasing balances of trade in Pharma sector are also significant strengths of the
Indian pharmaceutical industry.
Labor force:-
With one of the largest and most genetically diverse populations in any single
country, India can recruit for clinical trials more quickly and perform them more
cheaply than countries in the West.
Ageing and obese population:-
Health care needs will increase and drugs will be used for longer. For instance,
an ageing global population is poised to drive pharmaceutical drugs for indications
such as Alzheimers disease. Drugs that address rising multifactorial disorders such as
cancer as well as life style disorders such as obesity are also likely to experience
strong revenue growth.
Major Players of Indian Pharmaceutical Industry:-
There are five government-owned companies the Indian public sector. These
companies are the Indian Drugs and Pharmaceuticals, Hindustan Antibiotics Limited,
Bengal Chemicals and Pharmaceuticals Limited, Bengal Immunity Limited and Smith
Stanistreet Pharmaceuticals Limited.
Some of the major Indian private companies are Alembic Chemicals,
Aurobindo Pharma, Cadila Healthcare, Cipla, Dr.Reddys, Jagsonpal Pharma, Lupin
Labs, Lyka Labs, Nicholas Piramal, Ranbaxy Labs, Matrix Laboratories, Orchid
Chemical and Pharmaceuticals, Sun Pharmaceuticals, Ranbaxy Laboratories, Torrent
Pharma, Unichem Labs, and Wockhardt.
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The foreign companies in India include Abott India, Astra Zeneca India,
Aventis Pharma India, Glaxo SmithKline, Novartis, Pfizer Limited
The revenues earned by the abovementioned various companies in US $ in
billion are shown graphically as under:-
Figure 1.5 Source : (Indian Pharmaceutical Report)
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1.2 COMPANY PROFILE
BACKGROUND OF THE NUTRAPLUS PRODUCTS (INDIA) LTD.
Nutra Plus Products (India) Limited. is one of the fastest growing and one of
the most leading company of the Indian pharmaceutical industry which is actively
engaged in manufacturing and producing Active Pharma Ingredients (API) and
specialized Intermediate Products (I.P).
Nutraplus Products (India) Limited is benchmarked as a reliable source by
leading Multinational as well as leading Pharmaceutical companies.
Nutra plus Products (India) Limited has attained a global leadership in
manufacturing of various APIs and various other Intermediates. Today Nutra Plus
has strategically positioned itself as a non competing supplier to Global Generic
players in pharmaceutical industry across the country. NPIL was incorporated as a
private limited company in February 1990 and was turned into a public limited
company in June 1992. Manufacturing unit was commissioned to make APIs and
Intermediates in 1995. NPIL is engaged into manufacturing of APIs and its
intermediates.
The company has state of manufacturing facilities at Tarapur in the state of
Maharashtra. The Head quarters/Main corporate office of the company is located at
the Jogeshwari (East) Mumbai.
CORPORATE VISION OF THE COMPANY:-
To be a global life science company through innovation, cost
leadership, and optimizing the economic value creation for shareholders.
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CORPORATE MISSION OF THE COMPANY:-
To operate in existing and new business which will enhance the Nutra Products
(India) limited brands and corporate image of the company through reliability and
integrity.
To provide the customer superior products through continuous improvement in the
quality as well as superior customer service.
To strive for excellence by nurturing, developing and empowering the company
employers and suppliers.
To provide free and open atmosphere in the company and encourage conductivity to
learning and teamwork.
PROFILE OF THE PROMOTER OF THE COMPANY:-
Main promoter and Chairman & Managing Director is MR.
MUKESHBHAI NAIK. Brief Bio-data is as follows.
A Chemical Engineering graduate, aged around 54 years, had also
secured diploma in Administrative Management. From 1977 till 1983 he worked in
various chemical manufacturing companies. Job responsibilities included process
development, scale up studies, engineering and production. Employers include M/s.
Themis Pharmaceuticals, Piramal Organic Chemicals, and Shrivin Drug Pharma &
Orex Pharma. Considerable experience in making various API and their Intermediates
was gained by him. From 1983 till 1990 he worked on his own as a Project Consultant
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to provide turnkey assistance in APIs and their Intermediates. His firm was on panel
of financial institutions like IDBI, ICICI and IFCI.
In 1990 February, he marked on setting up this company as Chief promoter
and set up the manufacturing unit at Tarapur MIDC estate. From that time onwards,
he looks after the affairs of the company as full time Chairman & Managing Director.
EXCLUSIVE AND UNIQUE CHARACTERISTICS OF THE
COMPANY:-
NPIL is engaged into custom synthesis of APIs and its intermediates ,engaged
in manufacturing of its own products as well as exclusive custom synthesis for Indian
MNCs .NPIL is pioneer in handling hazardous chemicals and reactions, some of the
reactions specialized by NPIL are as follows:
Nitration, Halogenation, Friedel Krafts Reaction, Bromination, Reduction,
Methylation with Dimethyl Sulfate, Amidation, Amination, High Pressure Reactions,
Condensation, Reaction in Liquid Ammonia, Diazotisation,
Moreover the company has also a very long about 19 years experience in
handling hazardous chemicals and solvents the company has readily handled the
following chemicals in bulk like Dimethyl Carbonate, Liquid Bromine, Na Metal,
Oleum.Various Certifications Obtained by the Company:-
Tarapur based manufacturing facilities hold the following major accreditations:-
NPIL has local schedule M CGMP certification, Indian FDA approved and certified
facilities, NPIL is a member of local CETP ( Common Effluent Treatment Plant),
hence the effluents are sent to the CETP for treatment and disposal.
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Manufacturing facilities of the company:-
NPIL has local Schedule M CGMP certification and has FDA approved
facilities by Indian FDA.NPILs main manufacturing unit is located at Tarapur, in the
state of Maharashtra. NPIL facility comprises of 25 reactors, Centrifuge, Tray Driers,
Filters, and Storage Tanks.
Infrastructure:
Name of Company Total Plot Area(in
Sq.Mtr)
Building Constructed
Area((in Sq.Ft)
Nutraplus Products India
Ltd
N-92
1800 16230(around 1500 sq.mt)
Moreover NPIL has another sister concern called VET PHARMA NITRO
PRODUCTS LTD.(VNPL). VNPL is a 100% family owned concern of
MR.MUKESHBHAI NAIK, which carries out the manufacturing activities for Nutra
plus Products (India) ltd. VNPL manufacturing facility comprises of around 40
Reactors, Centrifuges, Tray Dryers, Fluid Bed Dryers, Storage tanks and many other
major Pharma equipments.
Financials of the company:
NPIL is a Public limited company listed on Bombay Stock Exchange and is a
financially sound organization enjoying 4.5 Crore Working Capital from The Sara
swat Co-operative Bank Ltd.
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1.3 PRODUCTION DEPARTMENT
The production department is the heart of the company consisting of both
skilled and unskilled labourers. The production department of Nutra plus Products
(India) Ltd. is actively engaged in the manufacturing of its own products as well as
exclusive custom synthesis for Indian MNCs.
It is one of the pioneers in handling hazardous chemicals and reactions. Some
of the major reactions specialized by NPIL are as follows:-
Nitration, Halogenation, Bromination, Friedel Krafts Reaction, Amination,
Amidation, Reduction, High pressure Reactions, Diazotization, Reaction to liquid
ammonia, Methylation with Dimethyl sulfate, condensation. NPIL has more than 19
years of experience in handling hazardous chemicals and solvents. Some of the
hazardous chemicals which were handled in bulk by NPIL are as follows:-
Di methyl Carbonate, Liquid Bromine, Na (sodium Metal) and Oleum.
Various Activities undertaken by the production department are:-
Receiving raw materials from stores department. Co-ordination with the
purchase department for purchase of raw material in case of non availability in store.
Planning of manpower for daily operation. Monthly planning of production activity.
To ensure and maintain production quality. To achieve production target. To ensure
optimum utilization of resources. To organize training programme in case of
introduction of new production equipments and for newly employed labourers.
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Co-ordination of Production Department with other Departments:-
Production department is co-ordinated with and supported by various other
departments like maintenance department, Quality analysis and quality control
department , R &D department, stores department and purchase department.
Stores and Production Department:-
Store and Production department are inter-related and co-ordinate in the
manner as follows Production is based on raw material which is being stored in the
stores department and when production department require raw material then they
send intimation or list to the stores department. Now when raw material becomes
finished goods it will be sended to store department for storage purpose.
Purchase and Production Department:-
Purchase and production are dependent on each other. All the requirements
as per different products and their specification for the purchase of raw material and
machine parts are sent by production department through Demand slip.
Dispatch and Production Department:-
First of all the production department receives target from marketing
department and marketing department also gives dispatch schedule to dispatch.
department and as dispatch department receive dispatch schedule from Marketing
department dispatch department give dispatch schedule to production department and
therefore production department has to see that demand put forth by dispatch
department is fulfilled on time and as per the specifications.
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Maintenance and Production Department:-
Maintenance Department is the backbone of the production department. It is
the maintenance departments which enable the production department to function in
the smooth manner. Personnel of the maintenance department checks the machine and
various other required equipments on regular basis. Equipments are washed
throughouly with various chemicals on every week so as to keep them clean and free
from corrosion. Machines are checked also on weekly basis and necessary
adjustments are made and required lubricants are used for enabling the machines to
run smoothly for days together. Moreover extra machines are also kept in up to date
condition so that they can be taken into use when particular machine beaks down.
Quality Assurance and Production Department:-
After completion of one batch they send finished product for quality
assurance inspection. Quality assurance doing sampling and testing as per the
specification. If all parameters are within the specification limit, then they send
finished product into the store department which will be sake as a finished goods.
Details of the equipments used in the production department:-
In the company products are usually produced in the batches always and
mostly the following equipments are used.
At present NPILs Tarapur based plant comprises of reactor, centrifuge,
Tray dryers, filters, and storage tanks around 25 in number. Moreover Companies
sister concern named VET PHARMA INTRO PRODUCTS LTD. comprises of
reactors, centrifuge, tray dryer, FBP, storage tanks around 40 in number. The various
equipments along used in the production department are S.S.Reactor, Glass Line
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Reactor, Receivers, Day Tanks, Tray Dryers, Fluid Bed Dryers, Centrifuge,
Condensers, Filters, Multimill and Sifter
Departmental Structure of the production Department:- The production
department is main backbone of the company and comprises of the various personals
as under:-
WorkersOperators
Manufacturing Personnel
LaboratoryPersonnel
Chemists
TechnicalDirectorofthecompany
Managing DirectorandChairman
Of the company
Figure 1.6 (Source: Company Report)
Duration of the production:-
The production is carried out by the company in two shifts .The timings
of the shifts for management and non-management staff are as under:-
General shift: - 9:30 a.m. to 6:30 p.m.
First shift: - 8:00 a.m. to 4:00 p.m.
Second shift: - 4:00 p.m. to 00:00 a.m.
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1.4 Marketing Department
Today the world has become the small village and if any company wants to
survive in this era, it needs to prove itself better than the others. Company has to
become aware about its competitors and customers.
It is the marketing that enable the company to become aware about its
customers and competitors. Marketing is a social process by which individuals and
group obtains what need and want through creating and freely exchanging the
products and services of value with others
Departmental Structure of the Marketing Department:-
In order to make the company a leader in the industry, the marketing
department of the company must be under the direct supervision and control of the
chief executive of the company. With this view, at NPIL, the marketing department is
handled directly by the Chairman and Managing Director of the company SHRI
MUKESHBHAI NAIK. Besides above there are others also in the department which
comprises of the sales executive & marketing executive. The structure is as under:-
Sales Executive
MarketingExecutive
Boardof
Directors
ManagingDirectorofthecompany
Figure 1.7 (Source: Company Report)
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Major activities of the marketing Department:-
The various activities of the marketing department are:-Dealing with the
customers. Sending sales report to the unit office. Find out the new ways of the
packaging the product. Find out the new set of customers. To look after the bugted
sales and make estimation of demand. To look after the customer complaints and their
satisfaction. To provide customers superior customer service by satisfying their
requirements.
Present Product Mix:- The present Products of NPIL include the following.
Active Pharma Ingredients:- Active Pharma Ingredients (API) is any
substance or mixture of substances intended to be used in the manufacturing of a drug
(medical) product and that, when used in the production of a drug, becomes an active
ingredients of the drug product, such substances are intended to furnish
pharmacological activity or other direct effect in the diagnosis, cure, mitigation,
treatment, or preparation of disease or to affect the structure and function of the body.
The major type of API that is manufactured by NPIL is Nimesulide.
Nimesulide:- Nimesulide is a relatively COX-2 selective, non-steroidal anti-
inflammatory drug (NSAID) with analgesic and antipyretic properties. Its approved
indications are the treatment of acute pain, the symptomatic treatment of osteoarthritis
and primary dysmenorrhoea in adolescents and adults above 12 years old. Due to
concerns about the risk of hepatotoxicity, nimesulide has been withdrawn from
market in many countries. It is available in a variety of forms: tablets, powder for
dissolution in water, suppositories and topical gel (Sulidin gel).
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A recent evaluation from EMA (the European Medicines Agency) concluded
that the overall benefit/risk profile of nimesulide is favourable and in line with that of
the other NSAIDs (such as for example, diclofenac, ibuprofen, naproxen).
Intermediates:- The various intermediates manufactured by the company are 3
Bromo Anisole ( Tramadol HCI intermediate), 2,5 Dibromo Aniline, N Bromo
Succinimide .
N-Bromosuccinimide orNBS is a chemical reagentwhich is used in radical
substitution and electrophilic addition reactions in organic chemistry. NBS can be
considered a convenient source of cationic bromine. NBS is commercially available.
It can also be synthesized in the laboratory. To do so, sodium hydroxideand bromine
are added to an ice-water solution of succinimide. The NBS product precipitates out
and can be collected by filtration.
New Products:-
1) Diclofenac Sodium (I.P, B.P):- This medication is a nonsteroidal anti-
inflammatory drug which relieves pain and reduces inflammation (swelling). It
is used to treat headaches, muscle aches, dental pain, and athletic injuries. It is
commonly used to treat the pain, swelling and stiffness associated with
arthritis..
2) Diclofenac Potassium (I.P, B.P):- A non steroidal anti-inflammatory drug
used to treat pain. The potassium salt of diclofenac is administered orally in
the treatment of rheumatoid arthritis, osteoarthritis, ankylosing, spondylitis,
dysmenorrhea and a variety of non rhematic inflammatory conditions.
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Accelofenac:- Accelofenac is a non-steroidal anti-inflammatory drug. It is
manufactured by pharmaceutical companies, under the various trade names and in
various forms (tablets, gel, injection etc.). Many pharmaceutical companies
manufactures Aceclofenac in combination with Paracetamol under the trade names
like "Cincofen" (Aceclofenac 100mg + Paracetamol 500mg). It is used for the relief
of pain and inflammation in rheumatoid arthritis, osteoarthritis and ankylosing spondylitis.
The dose is 100 mg twice daily. It should not be given to people with porphyria or very old
persons, and is not recommended for children. Aceclofenac has higher anti-inflammatory
action than conventional NSAIDS. It is a cytokine inhibitor. Aceclofenac works by blocking
the action of a substance in the body called cyclo-oxygenase. Cyclo-oxygenase is involved in
the production of prostaglandins (chemicals in the body) which cause pain, swelling and
inflammation. The company is also actively engaged in handling following chemicals
in bulk. They are Dimethyl carbonate, Dimethyl sulfate, Liquid Bromine, Na Metal
and Oleum
Target Market / Customers / clients :-
The major clients of the Nutra Plus are Formulation companies, Traders,
Agents and Pharmaceutical Multinational Companies
Customer Satisfaction Measure:-
For the satisfaction of the customers NutraPlus Products (India) ltd. do the
following things such Always try to deliver the best quality products. Always try to
deliver the products at the right time. Always try to satisfy the customer by
providing the products as cheaper as possible. Always try to handle the customer
problem as quickly as possible.
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1.4 Human Resource Department
Today Human element is considered as the most important part of the
business and the most valuable asset. Success in business depends to great extent on
effective management of the human resource. Management of human beings in the
company is known by different names such as personnel management, Manpower
management, HR management etc.
Human Resource Management is defined as the planning, organizing
and controlling the activities of the human force in the organization so as to concile
the individual goals with organizational goals and of dealing with various issues of
employees like compensation, leave, retirement benefits etc.
HR Mission:-
NPIL believes that business excellence is achieved through competent
and motivated human resources and ensures this by a highly challenging productive
working environmment, continuous up gradation, competence and process
commensurate, appropriate compensation, reward and recognition to performer.
Present Manpower status:-
The man power in the company can be divided into two basic
categories as under:
A)Non-management staff
B) Management staff
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Classification of the Non- Management staff:-
The non-management staff in the company along with their
designations and also total number of them in the company is as under:-
Table 1.2
Designation Total No. in thecompany
Plant Chemist 3
Laboratory Chemist 1
Laboratory Assistant 4
Plant Operators 40
Maintenance Personnel 3
Technical Director & Head 1
Non-Management Staff(office) 4
Classification of the Management Staff:-
The management staff in the company along with their designations and also
total number of them in the company is as under:-
Table 1.3
Designation Total No. in the company
Chairman & Managing DirectorOf the company
1
Accountant 1
Management Staff (Factory) 4
Purchase Manager 1
Taxation & Salary Personnel 1
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Various activities performed by the HR department are as under:-
Conducting Recruitment and selection activities from time to time as and
when requirement arises.
Arranging orientation programs for the newly employed personals. Arranging
the training and development programs for employees working in the
organization.
Handling the various activities related to promotion and transfer.
Carrying out the performance appraisal on the regular basis.
Fixation of the wages and salaries after periodically reviewing them.
Employee Grievarance Handling
Making various agreements with the employee group.
Periodically reviewing the health and safety measures undertaken by the
company for its employees.
Maintaining the sound and cardinal relations with the industry partners.
Periodically reviewing the company policies relating to personnel
management.
Carrying out skills and gap analysis.
Reviewing the working of ESI scheme adopted by the company.
To make adequate arrangements for providing things like bonus, incentives,
retirement benefits etc.
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Organizational Chart:-
The organizational chart of the company along with details of Main personnel
is as under:-
Figure 1.8 (Source: Company Report)
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Human Resource Planning, Recruitment & Selection in the company:-
Human resource planning is the process by which management determines
how an organization should move from its current manpower position to desired
manpower position. Through planning a management strives to have the right number
and the right kind of people at the right time to do things, which result in both the
organizational and the individual receiving the maximum long range benefits.
Major motives behind human resource planning in the NPIL are as follows:-
1) To acquire human resources so that present and future needs of the
organization for correct manpower is fulfilled.
2) To prepare job description and job specification so that most eligible
person can fulfill the vacant position.
Human resource planning for permanent jobs at managerial level is done at
NPILs Headquarters. Human resource planning at NPIL is through job analysis .
Recruitment:-
Recruitment has been regarded as the most important function of personnel
and administrative department because unless the right type of people are hired even
the best plans, systems would not be able to work. Recruitment is defined as the
process of searching for prospective employees and stimulating and encouraging them
to apply for the job in an organization.
Sources of Recruitment:-
Nutra plus Products (India) ltd. uses two sources of recruitment as follows:
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a) Internal Source of Recruitment:-These sources at NPIL are mostly used for filling the management position in
the organization. It includes its present workforce who is already on payroll.
Whenever a vacancy arises for management cadre, somebody from within the
organization is promoted and transferred. This source also includes those persons who
were employees previously.
b) External source of Recruitment:-This source is mainly used for filling up non-management position. This
source contains things such as advertisement in newspaper, consulting management
and other consultant agencies that can supply good personnel .They are recruited by
personal interview.
Process of Recruitment:-
Based on Human Resource Planning the company identifies the future
requirement of the personnel in the organization. The procedure for recruiting new
personnel differs from organization to organization. Every organization has its own
procedure, which brings its desired quality of personnel at the minimum possible time
and cost.
All the recruitment in management cadre will be against sanctioned vacancies,
with written approval of the Chairman and Managing director of the company. Each
indenting department head requiring additional manpower / replacement will forward
its proposal to corporate HR department in the Personal Requisition Form. The
reason for the vacancies, job description of the post, the type of candidate likely to
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meet in terms of qualification, experience desired, salary level etc as per the format
applicable are provided to the corporate department.
The corporate HR department initiates recruitment only after the receipt of this
written requisition duly approved by Managing director of the company.
The corporate HR department handles the advertisement or correspondence
with consultant for recruitment for management cadre and for non-management cadre
persons only after the written approval given by the Managing Director. For all
recruitment in non-management trainee cadre, the senior management cadre is
authorized to accord approval for recruitment issue letter of intent and appointment
letters. Employee is not authorized to deal directly in this matter
Employee is not authorized to recruit or give a commitment for recruitment, or
of terms of appointment etc. The approval to appoint or allow a person join duties
must be confirmed in writing by each concerned department to the personnel and
administrative department in the form letter of intent / appointment letter signed by
the competent authority.
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The following flow chart shows the selection process:-
ManpowerRequisitionbyHeadofDepartment
(Therequisitionmaybeforreplacement,temporarypostoradditionalvacancy)
Shortlistedcandidatesarecalledfortheinterview
Screeningoftheapplication
Invitationofapplicationthroughadvertisementinlocalnewspaper
Negotiationtakesplace
Shortlistedcandidatesfromverbalinterviewareadvisedtogoforfurtherprocess
Duringtheinterviewcandidatearerequiredtocleartosubjecttest,IQtestandEnglishtest
Documentsandofficialletters(Joiningtime)
Copyofservicecertificate
ReferenceCheck
Induction
QuarterlyReview
Figure 1.9 (Source:-Company Report)
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Training and Development programs undertaken by the company:-
Training is the process of improving skills and knowledge of employee so that
he can perform his job in better manner. Training is not only given to employee on
basis of designation but also as per the requirement of job and experience of the
employee.
Identification of training needs will be drawn from result of performance
appraisal of employees. Manager personal department is responsible for co-
coordinating and reporting to the corporate office regarding the training carried out
Tarapur. The identification of training is done by HOD and organizes various types of
training. Generally following types of training provided to the employees:-
Training given by supervisor at workplace.
Common training for all departments.
External Training.
There are other training programs also available and provided to employees
like cross functional training for developing multi skill of employees etc. The
company has different training modules for employee for giving training.
Following Types of Training are generally carried out at NPIL:-
The various training given at NPIL are Behavioral Training, Functional
Training, Safety and Health Training, Fire Fighting Training and Cross Functional
Training.
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Promotion Policy:-
Promotion is the term which covers vertical or upward movements of an
employee in the organization which calls for greater responsibility and usually
involves higher pay and better terms and conditions of services and therefore a higher
status or rank. The promotion of employee of NPIL is given subjected to availability
of vacancy in the next higher grade, suitability, and the organization. At NPIL
promotion decision are taken carefully by keeping in mind the career development of
the employees and considering the performance reviews and merit and seniority in
terms of experience and qualification.
Performance Appraisal System:-
The performance appraisal system undertaken by the company include the
following factors:-Leadership and Teamwork, Customer Orientation, Accountability,
Achievement orientation, Flexibility and AdaptabilityPerformance Management.
Welfare Provisions:-
The term welfare suggests any ideas and meaning such s the state of
wellbeing, happiness and development of Human resource. The word welfare means
The adoption of measures to promote physical and general well being of working
population. NPIL takes special attention in providing various welfare measures to the
employees so that they can make their best effort in achievement of the organizational
goals.
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NPIL provides the following welfare facilities to its employees:-
Medical Facility:-
All the employees are covered under Mediclaim Policy by company.
Company carries out yearly health checkups for all employees. Company has made
enough provisions for providing first aid facilities on the spot for its employees.
Employee State Insurance Scheme:-
From the welfare of the employees, company has the policy of
providing accidental insurance. When any employee met with an accident while on
duty is covered under this scheme, accident insurance is provided to them. The
scheme of accidental insurance is different for executives and non-executives.
Provident fund scheme:-
All the employees of the company are covered under the provident
fund scheme.
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1.5 Finance Department
Various activities performed by the finance department are as under:-
Auditing:- Various types of audit are carried out by the finance department in
the company some of them are cost audit, efficiency audit, propriety audit.
Bill Payment and passing: - It includes the things like Raw material and
packaging material bills, Administration Bills, General engineering and auxiliary
purchase and Telephone bill, travel and travel expense
Salary Payment: - Responsible for timely payment of salary.
Bill Posting: - It includes job work bill posting and import bill posting.
Entry of Bills: - It includes the act of entry of bills in the various systems in
plant.
Filing IT, Excise and VAT Returns:- It includes the things such as VAT
payments, TDS deducted from employees and supplier, Excise duty and advance
tax payments. Professional and Corporate tax payment and Mandatory Return to
be prepared
Maintaining the complete accounts of the company: - It includes the
things such as costing, petty cash payments and financial approval for the
purchase of raw material..
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Budgeting: - At the end of every month budget is prepared. Various budgets
usually prepared include sales budget, purchase budget, collection budget, and
market conditions.
Financial Details of the company:-
NPIL is a Public limited company listed on Bombay Stock Exchange and is a
financially sound organization enjoying 4.5 Crore Working Capital from The Sara
swat Co-operative Bank Ltd.
The audited financial results of the company for the year ended on March
2010 are given in the Annexure 1. The annexure reveals the following things such
as under:-
Sales:- 1187.93 Lakhs (April-2008 to March 2009)
1491.96 Lakhs (April-2009 to March 2010)
Profit:- 123.09 Lakhs (April-2008 to March 2009)
169.05 Lakhs (April-2009 to March 2010)
Earning Per share:-There is an increase in the EPS of the share from 0.81 to 1.23
which shows that Net return to shareholders is increased nearly by 50%.
The balance sheet of the company is shown in the annexure 2. It reveals the
things such as Shareholders Funds and Fixed Assets of the company.
The Shareholders Funds increased from 405.00 Lakhs to 437.00 Lakhs
during the year . There is also an increase in the companys fixed assets from 754.97
Lakhs to 1054.98 Lakhs.
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1.6 Warehouse / Stores Department
Various activities performed by the warehouse department are as
follows:-
1) Receipt Procedure of Raw Material:-Entry at gate. Reach to the store department. Material unloading. Verifying
with bill (quantity check). Material goes in de-dusting area (cleaning of drums).
Check weight and field format. Then prepare GRN (Good Receipt Note). Material
kept under test area. Based on Good Receipt Note quality check, samples are taken.
After analysis, approval or reject decision is taken. Again material is transferred to the
proper place
2) Issue Procedure of the Material:-
Amount of materials needed are decided by the production department. Slip of
the materials needed is issued to the warehouse department mentioning the type
and amount of material needed. On the basis of the amount mentioned in the slip
accordingly material is issued by the warehouse department
Process of storing the Material:-
When the materials are entered in the company, it will be checked as per
purchase order. After that the material will be unloaded on the conveyer belt by which
it went into the de-dusting booth. In the du-dusting booth it will become free from
dust and after that it will be weighted. As now goods are received Good receipt note is
prepared and entry is done. Now as soon as goods enter in the store sampling is
done.Once sampling is completed, label will be placed for approval and non-approval
of the goods. The particular color label is used for approved goods and other color
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label is used for non-approval of goods. Now, if goods will be rejected it will be sent
to raw material rejection store. Issue of raw material will be done as per the
requirement of production department.
Types of Material :-
At NPIL, mainly there are three types of material handled. They are solid,
liquid and hazardous chemicals. Moreover In store department there are special cells
for storage of specific material likeA / C rooms, open cells, drums to store liquid etc.
Material Handling Equipments:-
For Material handling various types of equipments often used are Stacker,
Fork lift, Hand pallet trolley, Barrel trolley, Cylinder trolley, Hydraulic trolley.
Stock Verification:-
It is done internally after each month as per the standards of theindustry.
1.7 Environment, Health & Safety Department
Environment and Social Concern:-
Tarapur factory of NPIL has been using Indian FDA approved
facilities. Here in the main focus is on preventing pollution and keep all the plant buildings
clean and surroundings environment friendly. The Tarapur based factory of NPIL is a
member of localCETP (Common Effluent Treatment Plant) hence effluents are sent to CETP
for effluents treatment and disposal. Moreover various measures are undertaken by the
management and factory personnel for identifying the waster and eliminating the same.
Moreover various energy conservation measures are also been undertaken by the company.
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1.8 Research and Development Department
Equipments available for R and D:-
NPIL houses all the instruments and equipments required in a laboratory
for QC and QA analysis headed by an R & D chemist are Gas chromatograph, HPLC,
Karl Fischer Titrator, Furnace, Melting and Boiling Pt Apparatus.
Activities of R and D department:-
The various activities of the R and D department are :-
Focus on adding value to some of the companys by-product.
To do collaborative research along with the customer.
Customization of the raw material and manufacture process to suit the needs
of a single high volume customer.
Expanding the companys profiting capabilities by incorporating or
outsourcing the use of instrumental analytical tools.
1.9 Maintenance Department
Activities of the Maintenance Department:-
Maintenance Department is the backbone of the production department. It is
the maintenance department which enables the production department to function in
smooth manner. Personnel of the maintenance department checks the machine and
various other required equipments on regular basis. Equipments are washed
throughouly with various chemicals on every week so as to keep them clean and free
from corrosion. Machines are checked also on weekly basis and necessary
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adjustments are made and required lubricants are used for enabling the machines to
run smoothly for days together. So that they can be taken into use when particular
machine breaks down. Lighting facilities are also checked on a monthly basis so as to
ensure that enough amount of light both artificial and natural, are available at the
required places of production.
The company also has enough amounts of fire extinguishers which are
also maintained by the maintenance department.
Another activity performed by the maintenance department is that it
ensures that enough amount of water is available across the factory for both
manufacturing and drinking purposes.
Maintenance department also ensures that various safety measures taken
by the company are in up to date condition such as safety doors are in working
condition, there are no sparks occurring in any of the equipments and such other
safety measures. Currently there are 3 main personal in the maintenance department
of the company.
1.10 Quality Assurance and Quality Control Department
At NPIL, all the members of the company are committed to build quality
products meeting highest global quality standards through continuous improvement in
the quality and customer service.
Quality Objectives:-
To provide to the customers world class quality products through consistent
improvement in the quality.
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To provide right products first time and every time and in full by utilizing efficient
cost effective methods.
To provide customers with the best value for the products.
To provide systematic validation and control of manufacturing, operational and
quality processes.
To provide a system of continuous improvement across all disciplines.
Quality Assurance:-
Various activities undertaken by the company for quality assurance are as
under:-
Audit of Manufacturing Facilities: - To ensure compliance to Industrial
Standards and assure product integrity.
Audit of Suppliers of critical raw materials: - To ensure that input raw
materials have the desired purity.
Technology Transfer Activity: - To ensure that the development work at R&D
are inCompliance to GMP requirements and the Manufacturing units receive
accurate process package.
Documentation and Data control: - To ensure data and documents and trace
ability.
Verification and Process Validation:- To ensure that all the equipments /
instruments are in working condition and all operations are validated.
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Quality control activities:-
Various quality control activities undertaken are as follows:- Raw
material and Packing material testing. In process testing. finished product testing.
microbiological monitoring of water system, finished product and clean areas,
Stability studies and hold time studies of intermediates, Trend analysis of
intermediates and finished products, Qualifications validations, all the activities
complying with industry standards.
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1.11 SWOT ANALYSIS
The SWOT Analysis mainly reveals S=Strengths, W=Weakness, O=Opportunities
and T=Threats of the company.
Main strengths of the Company:-
Company is coupled with efficient sourcing and coverage of raw material and
exploiting capacity of the manufacturer facilities to their fullest level.NPIL is actively
engaged in manufacturing of its own products as well as exclusive custom synthesis
for Indian MNCs. Promoters and Directors of the company are Engineers and
Technical persons so quality of product is consistently maintained.
NPIL is the only company in the region handling hazardous chemicals and
reactions, some of the reactions specialized by NPIL are as follows:-Nitration,
Halogenation, Friedel Krafts reaction, Bromination, Amidation etc. As NPIL only
company in the region so it is the leader in the region. Moreover NPIL has very long
experience of nearly around 20 years in handling in bulk drugs such as- Dimethyl
Carbonate, Dimethyl Sulfate, Liquid Bromine, Na Metal, Oleum etc. as result it has
been able to build strong customer base and brand loyalty.
Weakness:-
The main weakness of company is number of Management staff is
comparatively less in number than the Non- Management Staff. Moreover the training
programmes for the higher level executives should be thoroughly reviewed so as
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provide them better around development. The company is not still exporting as result
it is lagging behind the other companies in that area. Moreover as compared to the
other companies in the region the company is not also in the area of Retail sector so it
is also lagging in the sector.
Opportunities:-
Increased global demand and companys reputation for its consistent supply
and quality suited to the needs of the customers provide good opportunities for growth
and expansion for the chemical division. New capacity addition in the industries is
likely to increase the competition from supply side of the raw materials.
Threats:-
Fluctuations in cost and availability of raw material from the suppliers of the
raw material to the company. Legislative changes resulting in a change in the taxes,
duties and levies whether local or central have significant impact on the business,
performance and the relative competitiveness of the industry and the business of the
company.
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1.12 Literature ReviewPooja Gupta (2009):- This research paper reviews innovation strategies adopted by
the bulk drug manufacturers in India Vis a Vis their effect on the bottom lines and
sustainable competitive advantage.The research seeks answers to questions like which of
the innovation strategies at various levels would prove effective for an Indian company in
the bulk drug industry to grow and how to formulate a competitive growth strategy and
how does innovation help in developing competitiveness; competitiveness being
measured in terms of turnover, profits & market share?
Bruce Rasmussen (2002):- This research paper mainly discusses which strategies
especially on the Diversification side the company could adopt in order expand its
revenues and sales. The implications are mainly given on the basis of the research study
conducted for companies in Australia.
Franscesca Gino (2006):-This paper mainly explores the issue of R&D portfolio
diversification and relatedness through the lens of information-processing. It shows how the
diversification in the area of the R & D can help the company to grow on a global scale
Dinar Kale (2008):- The Research paper shows how Indian pharmaceutical firms
are internationalizing by acquiring small firms as well as setting up their subsidiaries,
in order to access resources, move up value chain and enter new markets. The paper
also shows that how Indian pharmaceutical firms are internationalizing by acquiring
small firms as well as setting up their subsidiaries, in order to access resources, move
up value chain and enter new markets.
Sean Eric Smith(2000):- This research paper how the Indian firms thrive as low-cost
manufacturers of off-patent generics, selling them internationally through MNCs, or even
directly, as Indian-branded products and how Indian pharmaceutical MNCs themselves
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emerge with their own branded and internationally patented drugs through their own
strategies of expansion.
John Buckley (2003):- This paper reviews current marketing practices in the
pharmaceutical sector, and their impact on consumer and doctor behavior. It identifies
negative impacts which include misleading advertising, disease monitoring and
escalating costs. It argues the need to move from industry self-regulation to an
independently monitored code of practice for pharmaceutical marketing.
J.L Solereo (2000):- The article of the paper throws light on how the company
which are only in small scale business can emerge out to be major market challenger
in the market. The paper cities the examples of the various pharmaceutical companies
and their strategies.
Manthan R Janodia(2009):- The article describes how the company can be
benefited from the obtaining patents and adopting a appropriate strategy for expansion
and diversification and hence can grab the market share in the particular area. The
paper particular cities the strategies of the Pharma companies.
G.Chappell (2003):- The article discusses about the companies can get itself
benefited by adopting the various product innovation strategies such as automation
and diversification to get itself top on the list of the market leaders. The article
discusses about various such strategies adopted by pharmaceutical companies.
Indian Pharma Report(2009):- The report describes how the companies in India
especially in the pharmaceutical sector has emerged through diversification and
expansion. The report mainly cities the examples of the major players of the industry
which emerged through the diversification and expansion in last few years. The report
has provided the example the Dr. Reddy.
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1.13 Relevance of the Present Study
A Summer Internship Project gives an opportunity to the students to interact
closely with the industry. After the completion of foundation courses, SIP gives the
student a chance of doing the work on the one hand and gaining the practical
experience on the other. The theory that one had learnt in classrooms and the real
aspects in the industry vary drastically. At the first instance it might seem as that
theory would be of no help in dealing with the real life cases and situations. But once
on dealing with those situations one would realize how important the theoretical
framework is in building a strong foundation through which one can approach any
problem with multiple perspectives and that too with the confidence into me.
This project was a wonderful opportunity to put into practice the tools,
techniques and skills learnt in the first year of my MBA course. It has been an
amazing experience to put in the application almost all the subjects that I had learnt
into one single project. Right from the approach to the problem till the report writing
and presentation of the recommendations these skills and techniques learnt have been
the great aid. The basic approach to any problem with clear understanding of the
objective of the problem and then moving on to determing the methodology to solve
the problem at hand, which was taught as a part of the human resource course, came
in handy to get the right start for the project. The summer internship project has
brought in me one major change which I am sure would be the key to success in all
my future endeavors. There has been a change in my attitude. I have learnt that to
succeed one cannot be sufficient with the specialized and limited knowledge rather
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one should always be open to continual learning and bring in discipline in life to
channelize the ones strengths in the right direction.
CHAPTER 2
Research Methodology
Basically Research means systematic investigation to establish facts or
principles or to collect information on a subject. In the broadest sense of the word, the
definition of research includes any gathering of data, information and facts for the
advancement of knowledge. With this view the research is undertaken as under:-
2.1Research Objective:-Finding out the opportunities for expansion of the capabilities, diversification
and enhancement / enlargement of the market share of the Nutra Plus Products
(India) Limited.
2.2Research Design:-- Types of Research: -The research undertaken includes both the
descriptive research and objective research. The objective research was
undertaken for consumer survey and descriptive research was undertaken
for competitive analysis.
- Data Sources: - The data sources utilized for resource includes both the
primary data and secondary data. The primary data was utilized for the
consumer survey while secondary data was utilized for competitive
analysis.
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- Research Methods: - The methods utilized for research comprises of
survey / schedule method as well as also involves the personal interaction.
The survey method was adopted for consumer survey while personal
interaction strategy was adopted for competitive analysis.
- Research Technique: - For making the consumer survey the research
technique adopted was structured questionnaire.
- Type of Questions: - The Questions included in the questionnaire for
consumer Survey were the closed ended ones.
- No of Questions: - The Questionnaire includes 5 questions.
- Place of Research: - The consumer survey was conducted in the retail
Medical shops in suburbs of Mumbai.
- Sampling Method: - The Sampling Technique used was convenience
Sampling
- Sample Size: - The sample size selected for consumer research was 25
chemist shops and for competitive analysis of 6 similar bulk drug
manufacturing companies in the same region was selected.
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CHAPTER -3
Research Findings and Analysis:-
A)From Customer Survey.
B) From Companies (Competitive Analysis) Analysis.
Major Findings and Analysis from customer survey are ----
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Analysis: Hence nearly around 59% of shops being surveyed are having customers in
the range of 50-100. This shows that there is a huge demand of the medicines in the
market due to the factors like emergence of new types of diseases which are highly
infective in nature, rise in the pollution levels and such others.
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Analysis: Hence it can be seen that there is a huge demand of analgesics in the
market because majority of consumers are suffering minor type of pains. Moreover
there is also a considerable demand of antibiotics and anti-inflammatory drugs due to
rise of highly infective type diseases. So the major segments where company should
concentrate its manufacturing and selling in order to boost its revenue and capture
good share in the market are analgesics, antibiotics and anti-inflammatory drugs.
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Analysis:-Hence besides tablets and capsules majority of customers prefer gels. The
reason for the preference for gels is that the gels could be applied directly on the skin
and are able to provide rapid actions from outside the body without any pain. The
consumers also have considerable liking for the syrups also due to their ability to
provide good actions. Hence if the company starts manufacturing its formulations in
the form of gels and syrups then the company may be able to grab good market share.
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Analysis:-Hence on an average most of customers are repeating their cycle after 2
weeks. This shows that regular drug users buys the amount of drug he requires about
2 times in month. So if the company provides good quality medicines in various
forms which can be able to provide highly effective and rapid actions then it will be
able to build highly customer base which would help company to remain at good
position in the market.
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Analysis:- Hence Chemists must be made aware about the exact effects of the drug of
the company and their prices as compared to the competitors. This will help the
company to increase its customers within very short period of time.
Interpretations and Recommendations :-
The survey of Retail medical shops indicates some of the major things.
The important things are as under:-
Besides concentrating on selling the products like Accelofenac formulations to other
major drug manufactures, the company itself should concentrate on manufacturing the
drugs for direct consumers.
Besides making Accelofenac, company should start making paracetemol and
ibuprofen formulations, as well as drugs containing paracetomols and ibuprofen. This
will significantly boost the sales of company in its API category.
The company will be able to grab considerable market share, if it also makes gels /
creams of the equivalent drugs which can applied on the skin directly.
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Moreover there is a considerable demand of the anti- inflammatory drugs in the
market. The company is already in the process of making formulations containing
diclofenac sodium and diclofenac potassium. So if company concentrates its efforts
also in making tablets and capsules containing the diclofenac sodium and diclofenac
potassium then the company may get significantly benefited.
In order to make powerful entry in retail sector, the company must recruit extra sales
person and also adopt the marketing strategy of personal especially door to door to
selling for few months so as to make consumer familiar with its new drug.
For capturing the major market share, the company must also make the retail chemists
aware about its drugs by arranging special programmes so that they become aware
about the drug and could recommend the same to the patients.
Moreover drugs which do not require medical prescription should be considered to be
sold through the outlets other than the medical stores.
After conducting the retail chemist shop survey it has been found that there is
a conside