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INTERNSHIP REPORT ON SANJIVANI PARANETRAL

BES’s Institute of Management Studies and Research Page 1

MASTERS IN MANAGEMENT STUDIES

Summer Internship Report

Name of Company: Sanjivani Parenteral Ltd

Address of Company: R-40, T.T.C. Indl. Area, Rabale, Thane-Belapur Road

Navi Mumbai - 400701, Maharashtra

Phone No. +91-22-66888700

Email id www.sanjivaniparanteral.com

Submitted by:

Trilok Mishra

(Roll No.019)

Name of Coordinator: Prof. Patil

BES’s Institute of Management Studies and Research

(Approved by AICTE & Affiliated to University of Mumbai)

May 2012



DECLARATION

I hereby declare that the Summer Internship Report submitted

for the MMS Degree, BES’s Institute of Management Studies and

Research (Affiliated to University of Mumbai) is my original

work and conducted in Sanjivani Parenteral Ltd. Company.

Place: Mumbai

Date:

Signature of the Student



ACKNOWLEDGEMENTS

I wish to express my gratitude to Mr. Mahendra kalwankar from the Sanjivani

Parenteral Ltd. company for providing me valuable information.

I am grateful to BES’s Institute of Management Studies and Research for giving me an

opportunity to pursue MMS. I wish to thank Professor Vikram D. Shikhare, Director,

BES’s Institute of Management Studies and Research who has been a perpetual source

of inspiration and offered valuable suggestions to improve my practical Knowledge.

I am indebted to my Coordinator Mr. Patil Professor, BES’s Institute of Management

Studies and Research, for abundant guidance, support, and encouragement throughout

my internship Study.

I would like to express my thanks to various people from the Sanjivani Paranetral Ltd.

Company for their support and direction.

Place: Mumbai

Date: July , 2012

Signature of the student

(TRILOK MISHRA)



TABLE OF CONTENTS

Chapter No Title Page

No

A Table

No

List of Tables

1.1 Leading Pharma players in India 14

2.1 key executives of company 19

2.2 Key products of company 20-22

2.3 Manufacturing plants address 25

3.1 Levels of managers in distribution process 29

3.2 Prices of key products 35

3.3 Global markets of SPL products 36

4.1 No. of employees department wise 42

5.1 Format of mfg. schedule 51

5.2 Format of label used in each dept. 51

5.3 Format of BMR making by production dept. 51

5.4 Excess volume labeled 55

5.5 Format of rejected products labeling 56

5.6 Format of sorting report 56

5.7 Format of writing batch mfg. on board 57

5.8 Secondary packaging labels 58

5.9 Defects in labeling procedure 59

6.1 Temp. range of different dept. 67

6.2 List of documents for dispatch of finished goods 68

8.1 Criteria of CRISIL FINANCIAL Ranking 82

8.2 Equity Capital Structure of SPL 84

8.3 Financial turnover of SPL 85

8.4 Shareholding pattern of SPL 86

8.5 Financial performance of SPL 87



8.6 Share market listing detail of SPL 87

8.7 Monthly share price detail of SPL 88

8.8 Last five year balance sheet of SPL 89-90

8.9 Last five year profit & loss account of SPL 90-91

8.10 Key Ratios OF SPL 91-92

8.11 Last Five Year Cash Flow of SPL 92-93

8.12 Competitors Sales 93

B Fig No. List of Figures

3.1 Distribution chain of parental products 28

3.2 Sales & Marketing function 30

3.3 PLC of Parenteral products 31

3.4 Marketing Mix of SPL 33

3.5 Export Market of SPL 36

3.6 MR strategy of promotion 37

3.7 Target of MR 38

4.1 Organizational Structure 39

4.2 Objectives of HRM in SPL 40

4.3 HRP in SPL 41

4.4 Selection Procedure 43

4.5 Per formation Appraisal in SPL 47

5.1 Layout of SPL 49

5.2 Material movement in production area 50

5.3 Store dept. layout 64

5.4 Material movement in store department 65

6.1 Receipt and handling of raw material 66

6.2 Import at concessional rate of duty 69



7.1 Granting of license 77

8.1 Hierarchy of Accounts and Finance Department 80

8.2 Purchase process 81

8.3 Financial Planning Process in SPL 83

8.4 share price fluctuation of SPL 89

8.5 Graph of ratio representation of SPL 92

8.6 Graph of Cash flow of SPL 93

C List of Abbreviations 114

1 Pharmaceutical Industry - A perspective 9

1.1 Introduction 9

1.2 Global Scenario 9-11

1.3 Indian Scenario 12-14

2 Sanjivani Parenteral Ltd. Company Profile 18

2.1 Key Executives 19

2.2 Key Products 22

2.3 Management Message 23

2.4 Locations of offices 24-25

3 Marketing Department 28

3.1 How does Sanjivani Parenteral sales & marketing

function

29-30

3.2 Sanjivani product lifecycle 31

3.3 SWOT analysis of Sanjivani Parenteral 32

3.4 Marketing mix of Sanjivani Parenteral ltd 33-38

4 HRM Department 39

4.1 Objectives of HRM in SPL 40

4.2 Process of HRP 41

4.3 Sources of recruitment 42



4.4 Employees recruitment & selection 43

4.5 Training & development 44

4.6 Performance management 44

4.7 Employees compensation & benefits 45

4.8 Types of compensation & benefits 46

4.9 Labour management relations 47-48

5 Operation / Production Department 49

5.1 Material movement in production area 50

5.2 BMR (Batch Manufacturing Record) 51

5.3 introduction to areas of production department 52-58

5.4 Packaging department 58-59

5.5 Packaging of Parenterals 60

5.6 Labelling of Parenterals 61

5.7 Quality control 61-63

5.8 Storage section 63-65

6 Dispatch and import – export Department 66

6.1 Warehouse 66-68

6.2 Dispatch 68-69

6.3 Import 69-71

6.4 Export 72-73

7 Regulatory Department 74

7.1 Schedule `M’ of the Drugs and Cosmetics Act (1940) 75

7.2 The Indian Patents and Designs Act, 1970 77

7.3 Patents (Amendment) Act, 1999 78

7.4 The Drugs (Prices Control) Order (DPCO), 1995 78-79

8 Finance Department 80

8.1 Accounts department 80



8.2 Ratings on Sanjivani Parenteral 82

8.3 Bankers of SPL 83

8.4 Capital Structure of the Company SPL 84

8.5 Company Financial Analysis 94-95

9 MIS/ IT Department 96

10 Identification of Problems – Department Wise 99

11 Solutions of Problems with Merit and Demerit 102

11.1 Financial solutions 102

11.2 Production solutions 103

11.3 Marketing solutions 103

11.4 Human resources solutions 104

11.5 Regulatory solutions 105

12 Recommendations to Company 106

13 Learning Outcomes 108

14 Reference Section 109

A-1 Bibliography 109

A-2 Questionnaire 110

A-3 Appointment Letter 112

A-4 Company Certificate 113



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Chapter 1

Pharmaceutical Industry - A perspective

1.1 INTRODUCTION

Health is defined both as cause and effect of economic development. Therefore, the

pharmaceutical industry is specifically recognized in the UN Millennium Development Goals

as an factor that can contribute to economic development. In addition, the pharmaceutical

industry provides significant socio-economic benefits to the society through creation of jobs,

supply chains, and through community development. The industry also plays an important

role in technological innovation, which may reduce costs of economic activity elsewhere in

the economy.

Players in the pharmaceutical industry include: branded drug manufacturers, generic drug

manufacturers, firms developing biopharmaceutical products, nonprescription drug

manufacturers, firms undertaking contract research. In addition, there are also enablers of

the industry such as universities, hospitals and research centers that play a role in R&D

activities.

1.2 GLOBAL SCENARIO

Market Size

Global pharmaceutical market is highly dynamic and is characterized by greater levels of R&D

expenditure and extensive regulation of its products. Global pharmaceutical sales are estimated to

be US$ 643 billion in 2006, a growth of 7% over the previous year. Sales have grown from US$ 334

billion in 1999 to US$ 643 billion in 2006, witnessing a CAGR of 10%. North America is the major

pharmaceutical market accounting for around 48% of global pharmaceutical sales, followed by

Europe (30%), Japan (9%). Leading therapy classes in world pharmaceutical market include lipid

regulators (with a market share of 5.8%), oncologics (5.7%), respiratory agents (4%), acid pump

inhibitors (4%), and anti-diabetics (3.5%).

Research and Development

Research and Development (R&D) is the backbone of the pharmaceutical industry all over the

world. Globally, USA is the major hub for pharmaceutical R&D.

According to Pharmaceuticals Research and Manufacturers of America (PhRMA), USA, in the year

2005, has spent more than US$ 50 billion in pharmaceutical R&D. R&D spending in US

pharmaceutical industry accounted for over 17% of total sales. Europe, with R&D expenditure worth

more than US$ 25 billion, in 2005, stood at second position, followed by Japan (US$ 8 billion).



Trade

Share of pharmaceutical products in world exports has grown over the years. From a level of

1.7% share in world exports in 2000, export of pharmaceutical products in world exports

increased to 2.6% in 2005. In the year 2005, world export of pharmaceutical products

amounted to US$ 272 billion. European Union, as a bloc, is the largest exporter of

pharmaceutical products accounting for 70% of total world exports in 2005. Of this, over

60% are traded intra-regionally. European Union, as a single bloc, is also largest importer

Of pharmaceutical products accounting for 57% in world pharmaceutical imports.

EMERGING TRENDS IN GLOBAL PHARMACEUTICAL INDUSTRY

Changing Demographic Trend

Developed countries have reached the era of demographic transition, where they are

increasingly confronting with the phenomenon of ageing population. This has resulted in

increasing pressure on the countries’ national healthcare system. Chronic diseases,

particularly cardio-vascular diseases, have become more frequent cause of death in these

countries. On the other hand, infectious diseases have remained more common cause of

death in developing countries. In addition, lifestyle related diseases are going to be common

among fast developing countries like China and India. All these factors would have major

influence on the global pharmaceutical industry.

Patented Drugs Going Off-Patent

It has become a major concern for the large pharmaceutical firms that many of the

blockbuster drugs will be going off-patent in the coming few years. It is estimated that in

USA alone, blockbuster drugs going off-patent are valued at US$ 27 billion in 2007, and US$

28 billion in 2008. These drugs are major sources of revenue for major pharmaceutical

companies in the world. Production of generics in such products will put considerable

Pressure on the profit margin of these companies.

Lowering R&D Productivity

R&D in pharmaceutical industry is a very expensive and time consuming process, as it

involves a number of stages before a drug can be introduced in the market. Moreover, at any

stage, the process may have to be abandoned if it is not showing desired results both in terms

of effectiveness and safety. In the world pharmaceutical industry, although the R&D

expenditure by firms have shown significant increase, R&D productivity has come down. All

these factors have led to added pressure on the profit margin of the leading players and thus

there is a pressing need to cut down the costs.



Increasing Mergers and Acquisitions

Mergers and Acquisitions (M&A) have been dominating the global pharmaceutical industry.

In the year 2005, M&A activities in the pharmaceutical industry amounted to US$ 61 billion

with the completion of nearly 700 deals. Major deals were in the generics segment. Drive to

enhance the size and thereby attaining higher economies of scale has motivated such

acquisitions. This trend is expected to continue with many firms from developing countries,

particularly India, joining the race.

Increasing Marketing Cost

As the competition amongst the pharmaceutical firms is aggrevating, many firms have started

to get into retail business. In this model, drugs will be sourced directly from the

manufacturers providing proximity with the end users. Such a model would provide benefits

both to producers (better supply chain management) and consumers (lower price).

Low Emphasis on Clinical Trials

With an increasing share of generics in total pharmaceutical sales, leading pharmaceutical

firms are changing their strategies from traditional blockbuster model to niche market players

in the areas such as diabetes, cancer and lipid disorders. Many large firms are adopting

strategies with long term investment commitments, scientific advancements, and strategic

positioning of their drugs as part of a more comprehensive approach to medical treatment.

Pricing Strategies

Pricing has never been a key issue in global pharmaceutical industry as it is today. Global

pharmaceutical majors are increasingly adopting varied pricing strategies in each therapeutic

and geographic market, with the objective of optimizing share, revenue and profit.

Increasing Patent Litigations

With a number of branded drugs going off-patent, the market share of the generic producers

in the world pharmaceutical market shows an increasing trend. However, the growth path of

the generic players is witnessing turbulence with increasing number of IPR related litigations.

Legal cost associated with challenging of patent infringement cases turns out to be very high

for many pharmaceutical companies. Another angle of such litigations is prohibition to

manufacture such drugs till the time the cases are settled. This has emerged as a major

challenge, of late, for the generics manufacturers.



1.3 Indian Scenario

The Indian pharmaceutical industry currently tops the chart amongst India's science-based

Industries with wide ranging capabilities in the complex field of drug manufacture and

Technology. A highly organized sector, the Indian pharmaceutical industry is estimated to be

Worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high amongst all

the third world countries, in terms of technology, quality and the vast range of medicines that

are manufactured. It ranges from simple headache pills to sophisticated antibiotics and

complex cardiac compounds; almost every type of medicine is now made in the Indian

pharmaceutical industry.

The Indian pharmaceutical sector is highly fragmented with more than 20,000 registered

units. It has expanded drastically in the last two decades. The Pharmaceutical and Chemical

industry in India is an extremely fragmented market with severe price competition and

government price control. The Pharmaceutical industry in India meets around 70% of the

country's demand for bulk drugs, drug intermediates, pharmaceutical formulations,

chemicals, tablets, capsules, orals and injectibles. There are approximately 250 large units

and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in

India (including 5 Central Public Sector Units).

India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, India

ranks third in terms of manufacturing Pharma products by volume. The Indian

pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 %

till 2015. The Indian pharmaceutical market is expected to touch US$ 74 billion sales by

2020 from US$ 11 billion. The market has the further potential to reach US$ 70 billion by

2020 in an aggressive growth scenario.

Moreover, the increasing population of the higher-income group in the country will open a

Potential US$ 8 billion market for multinational companies selling costly drugs by 2015.

Besides, the domestic Pharma market is estimated to touch US$ 20 billion by 2015, making

India a lucrative destination for clinical trials for global giants.

Further estimates the healthcare market in India to reach US$ 31.59 billion by 2020.

(A) Diagnostics Outsourcing/Clinical Trials

According to the estimates, the Indian diagnostics and labs test services, in view of its growth

Potential, is expected to reach Rs159.89 billion by FY2013. The Indian market for both



therapeutic and diagnostic antibodies are expected to grow exponentially in the coming years.

Findings from the report suggest that more than 60% of the total antibodies market is

currently dominated by diagnostic antibodies.

Some of the major Indian pharmaceutical firms, including Sun Pharma, Cadilla Healthcare

and Piramal Life Sciences, had applied for conducting clinical trials on at least 12 new drugs

in 2010, indicating a growing interest in new drug discovery research.

(B) Generics

India tops the world in exporting generic medicines worth US$ 11 billion and currently, the

Indian pharmaceutical industry is one of the world's largest and most developed.

Moreover, the Indian generic drug market to grow at a CAGR of around 17 per cent between

2010-11 and 2012-13. Union Minister of Commerce and Industry and Minister for Trade and

Industry, Singapore, have signed a 'Special Scheme for Registration of Generic Medicinal

Products from India' in May 2010, which seeks to fast-track the registration process for

Indian generic medicines in Singapore.

(C)Advantage India

The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide range of

specialties involving complex drugs' manufacture, development and technology. With the

advantage of being a highly organized sector, the pharmaceutical companies in India are

growing at the rate of $ 4.5 billion, registering further growth of 8 - 9 % annually.

More than 20,000 registered units are fragmented across the country and reports say that 250

Leading Indian pharmaceutical companies control 70% of the market share with stark price

Competition and government price regulations.

Competent workforce: India has a pool of personnel with high managerial and technical

competence as also skilled workforce. It has an educated work force and English is

commonly used. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly in the area of

improved cost-beneficial chemical synthesis for various drug molecules is excellent. It

provides a wide variety of bulk drugs and 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 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. Above

all, it has a 70 million middle class market, which is continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical industry is

finding great opportunities in India. The process of consolidation, which has become a

generalized phenomenon in the world pharmaceutical industry, has started taking place in

India.

MAJOR PHARMACEUTICAL COMPANIES IN INDIA

Some of the leading Indian players by sales (US$ million)

Company name Sales in US$ million Year End

Cipla 6,368.06 March 2011

Ranbaxy Lab 5,687.33 December 2010

Dr Reddy's Labs 5,285.80 March 2011

Sun Pharma 1,985.78 March 2011

Lupin Ltd 4,527.12 March 2011

Aurobindo Pharma 4,229.99 March 2011

Piramal Health 1,619.74 March 2011

Cadila Health 2,213.70 March 2011

Matrix Labs 1,894.30 March 2010

Wockhardt 651.72 December 2011

Table 1.1 leading Pharma players in India



Ranbaxy

Ranbaxy is among the predominant pharmaceutical companies in India and was founded in

1961. Ranbaxy is a research based Pharma giant and became a public limited company in

1973.

Ranbaxy was recently ranked among the top 10

international pharmaceutical companies in the world have

presence across 49 countries.

Ranbaxy is also reputed for its 11 state-of-the-art

manufacturing facilities in countries like China, India,

Brazil, South Africa, and Nigeria. The company has also

won several awards and recognitions for its pioneering

initiatives in the developing markets of the world. Ranbaxy is also a member of the Indian

Pharmaceutical Alliance and Organization of Pharmaceutical Producers of India. In the

present scenario Ranbaxy commands more than 5% share of the Indian pharmaceutical

market. Ranbaxy’s product portfolio is diverse and includes drugs that cater to nutrition,

infectious diseases, gastro-enteritis, pain management, cardiovascular ailments, dermatology,

and central nervous system related ailments.

Ranbaxy’s operations in India are designed under as many as 9 SBUs which take care of the

Various categories of medicines and drugs that are manufactured by Ranbaxy. The company

is especially well-known for having the highest research and development (R&D) budget

among pharma companies in the world which is as high as US$ 100 million.

Ranbaxy India operations are handled by 2,500 employees and the company’s market share

in India is worth around US$6 billion.

Dr. Reddy's Laboratories

Dr. Reddy's Laboratorie is one of the popular

pharmaceutical companies with base in more than

100 countries. The medicines of Dr. Reddy's

Laboratories Limited are easily available all across

the globe.

Dr. Reddy's Pharmaceutical Company is very

much customer friendly. It takes care of the fact

that maximum people get benefited by the

products of this pharmaceutical company. It



commercialized various treatments so as to provide high tech treatment to the masses. It tries

to meet the medical needs of the people.

Though Dr. Reddy's Laboratories is located in various parts of the world, it has its

headquarters in India. The subsidiaries of this company are found at various countries like

US, Germany, UK, Russia and Brazil. 16 countries have the representative offices of Dr.

Reddy's Laboratories Limited. 21 countries have third party distribution.

Cipla

Cipla was founded by Khwaja Abdul Hamied in 1935 and was known as The Chemical,

Industrial and Pharmaceutical Laboratories, though it is better known by the acronym Cipla

today.

Cipla was registered in August, 1935 as a public limited enterprise and it began with an

authorized capital of Rs. 6 lakh.

Though set up in 1935, it was only in 1937 that

Cipla began manufacturing and marketing its

pharmaceutical products. Today, the company has

its facilities spread across several locations across

India such as Mumbai, Goa, Patalganga,

Kurkumbh, Bangalore, and Vikhroli.

Apart from its strong presence in the Indian market, Cipla also has an extensive export

market and regularly exports to more than 150 countries in regions such as North America,

South American, Asia, Europe, Middle East, Australia, and Africa. For the year ended 31st

March, 2007 Cipla’s exports were worth approximately Rs. 17,500 million. Cipla is also

considerably well-known for its technological innovation and processes for which the

company received know-how loyalties to the tune of Rs. 750 million during 2006-07.

Sun Pharmaceuticals

Sun Pharmaceuticals was set up in 1983 and the company started

off with only 5 products tocure psychiatric illness. Sun Pharma is

known worldwide as the manufacture of specialty Active

Pharmaceuticals Ingredients and formulations.

However, the company is also concerned with chronic treatments



such as cardiology, psychiatry, neurology, gastroenterology, diabetology, and respiratory

ailments. Active Pharmaceuticals Ingredients (API) include peptides, steroids, hormones, and

anti-cancer drugs and their quality is internationally approved. The international offices of

Sun Pharmaceuticals Industries Ltd. Are located in British Virgin Islands, Russia, and

Bangladesh. In India, the offices are in Vapi, Silvassa, Panoli, Ahmednagar, and Chennai.

There are 3 major group companies of Sun Pharmaceuticals Industries are:

Caraco Pharmaceuticals Laboratories (based in Detroit, Michigan)

Sun Pharmaceuticals Industries Inc. (Michigan)

Sun Pharmaceuticals (Bangladesh)

Aurobindo Pharma

Aurobindo Pharma, an India-based private pharmaceutical company having presence around

the world. Aurobindo Pharma was set up in the year 1986 and started its operations in 1988-

89 in Pondicherry, India.

Now, the company is headquartered at Hyderabad,

India. Aurobindo Pharma is one of the most

respected generic pharmaceuticals and active

pharmaceutical ingredients (API) manufacturing

company of the world. Aurobindo Pharma operates

in over 100 countries across the world. Further, the

pharmaceutical major markets over 180 APIs and

250 formulations throughout these destinations. This Indian pharmaceutical major has filed

over 110 DMFs and 90 ANDAs for the USA market. So far, Aurobindo has received 45

ANDA approvals (both final and tentative) from USA alone.

Aurobindo Pharma products cover segments like –

Antibiotics,

Anti-Retro Virals

CVS

CNS

Gastroenterological

Anti-Allergics



Chapter 2

COMPANY PROFILE:

Parenteral: The dosage form for conveying a drug by means of injection through the skin or

mucous membranes.

Parenteral drugs are administered directly into the veins, muscles or under the skin, or

more specialized tissues such as the spinal cord.

Circumvented the highly efficient first line body defense that is skin and mucus

membrane.

Thus they should be free from microbial contamination and should have high purity.

Incorporated as a public limited company in Oct.'94, Sanjivani Parenteral is jointly promoted

by Anami H Khemka and a team of professionals in various fields of pharmaceutical

industry. The company is setting up a plant at Taloja, Maharashtra, to manufacture high grade

anti-biotics and life saving injectibles used in various infections, pre- and post-operative.

Sanjivani Parenteral and pharmaceutical plants are located on beautiful environmentally clean

30,000 sq. ft. facility at navi Mumbai. Today Sanjivani employs over 250 people and sales

field force of over 100 executives and managers and has a sales turnover of 690 million

contributed by a range of modern medical products which are sold all over India & abroad.



The installed capacities for its products will be, 150 lac pa each for liquid vials and powder

vials and 73 lac pa for its ampoules, taking the total capacity to 375 lac pa. The company

came out with a public issue in Jan.'96 to part-finance the project. The promoters have

received firm enquiries from reputed pharmaceutical companies like Merind, Lupin

Laboratories and USV for the first year' production of liquid vials and ampoules. During the

year 1998-99, the Company has been approved by the WHO GMP Certificate. The Company

is hoping for export of its products in Africa, Europe & Latin America.

The Company has also tied up with Cadila Ltd., Alkem Ltd., Indian Immunologicals Ltd for

marketing its products. During the year 1999-2000, the company has tied-up with India's first

ranked pharmaceutical giant Ranbaxy for manufacturing its products.

2.1 Key Executives

Chairman & Managing Director Ashwin Khemka

Director Narmdeshwar R Chaube

Director Mahendra Kalwankar

Director Vinod R Goyal

Table 2.1 key executives of company

The company has grown many folds and aspires to be a respected research-based company.

With its diverse product portfolio, it is rapidly expanding its reach to the global marketplace,

riding on its success in India and in the

world’s emerging and developed markets.

After establishing itself in India, Sanjivani

has extended its reach globally by entering

the markets of Asia, Europe, Africa and

Latin America. The company has active

presence in countries like Russia, Ukraine,

Uzbekistan, Turkmenistan, Fiji, Vietnam,

Sri Lanka, Nepal, Malaysia, Thailand,

Nigeria and Peru, to name a few. Sanjivani

Parenteral has also got its plant approved by

the registration authorities of Congo, Sudan and Sri Lanka. It is making its presence felt in

the world market now, through leveraging its manufacturing capacity, quality of products and

international alliances.



International business contributes about 30% of the company’s revenue and is set to grow to

more than 50% in the coming two years. This includes the sales of Sanjivani’s own brands

and the revenue from the contract manufacturing services that the company provides to its

overseas clients. The company is in the making of a strong base to broaden its horizons.

Sanjivani has been a regular supplier to the armed forces’ hospitals in India. Furthermore,

many government and private hospitals have availed of the products and services offered by

Sanjivani across the country. The company also has its own marketing operations in India

and boasts of over 1000 distributors all over India.

Dehradun

The company has recently started an oral solids plant in Dehradun and has begun

manufacturing tablets and capsules. The facility has a capacity of manufacturing 80 million

tablets per month and 25 million capsules per month. In continuation with the company’s

policy of having young and dynamic personnel, the plant boasts of a young team of scientists,

pharmacists and technicians, who are committed to the success of the new venture.

2.2 Key Products

Therapeutic Products

Animal Products

Key Products

Oral Solids

Animal Products

Animal Products

Sr.No Brand Name Composition Strength Presentation

1. SANTROPIN Atropin Sulphate 1 mg Vial

2. BROADCURE Amoxycillin + Cloxacillin 2 mg Vial

3. SANROFLOX Enrofloxacin 100mg/ml 30 ml, 50 ml Vial

4. SANMYCIN Gentamicin Sulphate 80 mg/2ml 10 ml, 30 ml Vial

5. GOVICEF Ceftriaxone Sodium 2 gm Vial

6. DEDRON Dexametasone Sodium Phosphate 4 mg/ml 30 ml Vial

7. SANFOS Toldimfos Sodium 200 mg/ml 30 ml Vial

http://www.sanjivani.co.in/therapeutic-products.html

http://www.sanjivani.co.in/animal-products.html

http://www.sanjivani.co.in/key-products.html

http://www.sanjivani.co.in/products.html



8. SANMECTIN Ivermectin 10mg/ml 10 ml, 30 ml Vial

9. MULTIVET Vitamin A (as Palmitate) 250000 IU 10 ml Vial

Table 2.2(a) Key products of company

Key Products Key Products

Sr.No Brand Name Composition Strength Presentation

1. SANTAZID Ceftazidime 250 mg, 500 mg, 1 gm

Vial

2. CEFROBACTAM Cefoperazone Sodium + Sulbactum Sodium

1 gm, 2 gm Vial

3. BROADCEF Ceftriaxone Sodium 250 mg, 500 mg, 1 gm, 2 gm

Vial

4. CEFPH Cefpirome Sulphate 1 gm Vial

5. SANROXIME Cefuroxime Sodium 750 mg, 1.5 gm Vial

6. SANCLAV Amoxycillin Sodium + Clavulanate Potassium

600mg, 1.2 gm Vial

7. SANTAZ Piperacillin Sodium + Tazobactum Sodium

2.25 gm, 4.5 gm Vial

8. SANOCEF Cefotaxime Sodium 250 mg, 500 mg, 1 gm

Vial

9. PENEM Meropenem Trihydrate

500 mg, 1 gm Vial



10. CILASPENE Imipenem + Cilastatin Sodium

500 mg Vial

11. S-PIME Cefepime Hydrochloride

500 mg, 1 gm Vial

12. BROADCEF - T Ceftriaxone Sodium + Tazobactum Sodium

1.125 gm Vial

13. BROADCEF – S Ceftriaxone Sodium + Sulbactum Sodium

375 mg, 750 mg, 1500mg

Vial

14. SANOCEF - S Cefotaxime Sodium

+ Sulbactum Sodium

750 mg, 1500 mg Vial

15. MERINEURON Thiamine Hydrochloride

10 mg 2 ml Amber Ampoule

Riboflavin Sodium 0.5 mg

Pyridoxine Hydrochloride

2 mg

Cyanocobalamin 300 mcg

Calcium Pantothenate

1000 mcg

16. VITAMIN B COMPLEX

Thiamine Hydrochloride

10 mg 2 ml, 3 ml Ampoule, 10

ml Vial Riboflavin 2 mg

Pyridoxine Hydrochloride

2 mg

Niacinamide 100 mg

D-panthanol 5 mg

17. MONOVIT Thiamine Hydrochloride

2.5 mg 200 ml Syrup

Riboflavin Sodium Phosphate

2.5 mg

Table 2.2(b) Key products of company



2.3 Management Message

Since its inception, Sanjivani has chosen to build on a vision to become a key player in the

global pharmaceutical market. Working towards this vision, Sanjivani has, in the extent of

11 years, notched up an impressive presence in over 15 countries of the world. All this is

thanks to a vast marketing and distribution network and a work force capable of and

equipped for international marketing challenges.

Their core strengths are :

1. Manufacturing capability

2. Focus on Technology and Quality

3 .In-house research activity

These strengths give them an edge in the market,

since very few companies have this combination of

capabilities. Having laid the groundwork for growth,

the company looks forward to picking up greater growth momentum from the years ahead, a

time that all of us look forward to with excitement and anticipation.

Primary Focus Areas

They provide solutions by focusing on three extremely fundamental areas that enable us to

provide better products.

Focus on Quality

The famous management guru Peter F. Drucker once quoted, “Quality in a product or service

is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A

product is not quality because it is hard to make and costs a lot of money, as manufacturers

typically believe. This is incompetence. Customers pay only for what is of use to them and

gives them value. Nothing else constitutes quality.” That sums up their quality policy.

Focus on the Customer

Customer is at the core of their values. Customer satisfaction is primary objective. They

ensure that all the customer requirements are met at the time of providing a product or

service. They would credit their customers for the growth of the company, who have trusted

them for their quality, recommended areas of improvements, whenever required and boosted

our business over the years. Their Complaint Handling Cell is very efficient. They

communicate to the concerned party in less than 48 hours of hearing from them and the issue

http://thinkexist.com/quotation/quality_in_a_product_or_service_is_not_what_the/11722.html







gets resolved at the earliest. This demonstrates their commitment to the customer and quality

of service.

Focus on Us

They believe in their experience and expertise in manufacturing pharmaceutical products and

offer them to government agencies, hospitals, NGOs, other types of organizations and

Individuals. Their customers are offered highest quality and affordable products to fulfill

their requirements. They constantly work to provide the best possible solutions to their

esteemed customers, through research, technological innovation & up gradation and in-house

and out-bound training programmes.

Corporate Governance

Corporate Governance reflects the quality of the management in a company. It is a mirror

image of the organization’s culture, policy and the method in which the organization deals

with various stakeholders. Sanjivani is committed to high standards of Corporate Governance

and ethical business practices.

Information Sharing is the key to Corporate Governance. Apt and precise disclosure of

information regarding a financial position, accounting policies, business performance,

ownership and governance of the company is an important part of Corporate Governance.

Corporate governance is critical to boost and preserve investor trust. Sanjivani has developed

Corporate Governance guidelines to empower the Board to evaluate and review the

performance of the Company.

2.4 LOCATIONS OF OFFICES

Sanjivani Parenteral corporate office is present in Bhandup while Manufacturing Plant is

present in Rabale and Dehradun. The addresses of these offices are as below:



Corporate office:

Sanjivani Pharmaceuticals

205,P.N.Kothari industrial Estate,

L.B.S. Marg; Bhandup (West)

Mumbai-400 078

Phone:+91-22-67290900/67974270

Manufacturing Plants:

Mumbai Plant Dehradun Plant

R-40 , TTC Industrial Area Plot No. 323/1 , Near Central Hope Town

Rabale , Navi Mumbai – 400 701 Camp Road , Selaqui

Maharashtra , India Dehradun- 248197

Phone : +91-22-66888700 Phone : 0135-2698691

Table 2.3 manufacturing plants address

2.5 COMPANY’S BUSINESS DIVISIONS:

Sanjivani Parenteral ltd. Manufacturing Plant is at Rabale (Mumbai) where production of

various injectibles, sterile powder and suspensions is done whereas at Dehradun Plant

production of tablets and capsules for domestic market as well as for Export.

Different departments working in the head office are

1. Marketing and Sales

2. Human Resources

3. Financial Accounting & Revenue Assurance



4. Administration

5. Procurement & Logistics

6. Quality Control

7. Quality Assurance

8. International Business (Exports)

9. Maintenance

10. Production

11. Regulatory

Research & Development

A special emphasis is put on research activities at Sanjivani. A team of scientists work

continuously for new product development and technical advancement activities. They take

care of the Research & Development activities for Sanjivani. It is in the vicinity of the

production plant, so that the production and research teams can continuously work in

tandem. It helps the company with the patent drafting and filing, regulatory support for APIs

and formulations and finding various techniques for reducing the cost of the products, so that

the end-user gets benefitted by it.

The facility has well established Analytical Laboratories equipped with sophisticated

analytical instruments such as Liquid Chromatographs and Gas Chromatographs. The

laboratory provides cost reduction, regulatory and patent drafting & filing services to other

companies as well. A strong and reliable platform of confidentiality has been created for

intellectual property protection.

Quality Process & Assurance

Quality Policy

Quality has been the forte of Sanjivani since its beginning in 1997. It has been one of the

biggest factors for growth. Total commitment to quality, coupled with international exposure

& expertise of technology, helps us in our efforts to grow globally. At the core of our Quality



Philosophy is the commitment to achieve a level of perfection that matches the highest

international standards.

Sanjivani’s high-tech laboratory set up is equipped with facilities for chemical and

instrumental analysis. Capable of undertaking the most comprehensive tests, the laboratory

has equipment sourced from internationally renowned suppliers. This facility is validated as

per international regulatory authorities' expectations. A dedicated validation team works

continuously to achieve the highest levels of quality in production and ensures the same.

Quality Assurance

There are separate teams for quality assurance (QA) and quality control (QC) to achieve

quality throughout the production process. These teams ensure that the core value of the

company, of providing the highest standards of quality, is protected.



Chapter 3

COMPANY’S MARKETING & DISTRIBUTION:

Sanjivani Parenteral follows push strategy with robust distribution system as follows:

Figure 3.1 Distribution chain of parental products

The sale generated by company to distributor is termed as Primary sales.

Cost of the distribution from manufacturing plant till the stockiest is borne by the

manufacturer. Price to Stockiest (PTS) , Price to Retailers (PTR) are the terms used in the

industry. Sub stockiest would get the stock from stockiest and operate on 8% commission till

they establish themselves as a big player and qualify for getting a stockiest license from

manufacturers. Retailers get 15 – 20% margins based on type of drugs, generic/branded/price

controlled and even more on counterfeit drugs.



Sanjivani doesn’t believe in advertisement. It has aggressive and vibrant field force to

promote their products in the market especially to stockiest, retailers as follows:

Table 3.1 Levels of managers in distribution process

The sale generated via this channel is termed as Secondary sales.

3.1 HOW DOES SANJIVANI PARANTERAL SALES & MARKETING FUNCTION

Pharmaceutical Sales and Marketing processes can be classified under three main categories:

� Business-to-Business

� Marketing

� Sales



B2B: The burden of winning large deals lies on B2B sales. B2B specialists constantly work

with large hospitals, clinics, managed care, and ILTC facilities to build and sustain long-term

relationships and negotiate multi-million dollar contracts.

Marketing: Pharmaceutical marketing is a strategic function. The marketing efforts vary

from campaigning for a new product launch to conducting Direct-to-Customer road shows

promoting patient awareness.

The organic growth of the internet and google-ization (extensive internet searches using

engines such as Google) of masses has made the consumer highly informative and curious

about patient treatment. The traditional DTP route of marketing the drug to the doctors has

gradually yet significantly shifted to innovative DTC marketing.

The pharmaceutical consumer marketing in itself is more challenging than conventional

DTC. As shown in Figure consumer marketing is any intervention that influences consumer

attitude/behavior towards an Rx product. This makes it more complex as compared to

marketing in other industry sectors. The subtle marketing channels such as gaining interest of

various thought leaders to generate favorable ideas on a drug are being employed by almost

all pharmaceutical majors.

Figure 3.2 Sales & Marketing function



Sales: Pharmaceutical sales force is perhaps the most dynamic work force across all verticals.

Sales function today is not just about sampling and detailing the drugs to the doctors. It has

taken a whole new dimension in using the latest technology and multimedia to target the most

influential physicians and converting them into high volume prescribers.

3.2 SANJIVANI PRODUCT LIFECYCLE

Pharmaceutical marketing activities depend largely on the stage in which a particular product

is within the product lifecycle. Following represents a generic product lifecycle of sanjivani.

(Products may vary greatly and the lifecycle stages may not manifest uniformly for all

products) Product Name (PENEM)

1. Introduction Stage: Penem is introduced to

the physician’s cures a disease in a

different manner than existing products.

At this stage, sales future is uncertain and

direct competition is very low.

2. Growth Stage: This new product receives

widespread acceptance from the medical

community and number of

competitors increase. Promotion

activities at this stage focus on

advocating their own brands and

sales volumes increase.

3. Maturity Stage: The

effectiveness of the product is

well established at this stage and

promotional activities focus on

selling the product to large

volume buyers. Competition on

the product line reaches an all

time high

4. Saturation Stage: The product is typically used for all indications it is found useful for

at this stage. A number of product variants such as dermatological, tablets, capsules

etc. appear and promotional activities focus on adding extra value.

5. Decline: Decline may or may not happen and is primarily caused by identification of

certain areas where the product was thought to be effective but is not. Some

competitors leave the market at this stage.

Figure 3.3 PLC of Parenteral products



3.3 SWOT ANALYSIS OF SANJIVANI PARENTERAL

Strength

Weakness

Well-qualified and established entrepreneurs

Easy and cheap workforce availability

Locational Advantage – Strategically well

placed, connected to other states by road, rail

and air

Availability of number of Financial

Institutions, Banks etc

Industrial City and Commercial Capital of

India

Availability of Educational/Technical

Institutions/Collages/University

Low R&D Costs

Easy availability of Raw material and other

related material

manufacturers/suppliers/service providers

Trust level in the cluster is very low

Old and Traditional Technology

/manufacturing processes in most of the

units affecting productivity

Under utilization of financial facilities

Poor coordination with Government

bodies and other related Organizations

Presence of Number of Associations

Low level of strategic planning for future

and also for technology forecasting

No strong linkage between industry &

academia

One of the least penetrated markets in the

world. Mainly rely on exports because of

slow growth

Opportunities

Threats

Having good number of Hospitals and Doctors,

opening avenues for direct supply

Availability of MNCs – Good opportunity for

loan licensees

Growth in the emerging branded generic

market

Contract manufacturing arrangements &

globalization will act as additive for easier

international trading

Spreading attitude for soft medication (OTC

drugs)

There is a huge potential for the development

of India as a centre for international clinical

trials

Better utilization of Trade House Dawa Bazaar

for domestic market

Implementation of WHO – GMP norms

Stiff competition due to WTO norms and

arrival of MNCs

Commencement of Product Patent law in

near future

Dependency on Government Supply

Shortage of water and electricity

Capturing market by other countries at

low cost with good quality

High Cost of discovering new products

and fewer discoveries

Stricter registration procedures

Spike in raw material prices, Accelerated

generalization & intensified competition

The MRP based excise duty regime poses

a threat to the existence of many small

players.



3.4 MARKETING MIX OF SANJIVANI PARENTERAL LTD.

Marketing is the task of creating, promoting and delivering goods and services to consumers

and businesses. Organizations identify and profile distinct group of buyers who might prefer

or require varying products and

marketing mixes. The customer

seeks for value and satisfaction.

The organizations can increase the

value of the customer offering in

several ways e.g. raising benefits,

reducing costs etc. marketing mix

is a set of marketing tools that the

firm uses to pursue its marketing

objectives in the target market.

These marketing tools are known

as 4 p’s of marketing.

To identify the customer needs

and fulfilling hem is the basic objective of an organization. Marketing is not just satisfying

your customers, you have to delight them and this can be done by acting upon this phrase.

Sanjivani provides a winning combination of products to its prime customers. It is one of the

country’s small scale parenteral, but which ensures complete Aspetic,Sterile and quick

actionable in all injecteble products.

PRODUCTS

A product is anything that can be offered to a market to satisfy a want or need and a service is

an act or performance that is essentially intangible and does

not result in the ownership of anything. What products have

to be offered to the target market depends on the market

requirement and also the organization’s profits. The

organization will offer those products, which result in

maximum profits and minimum costs.

Sanjivani offers a diversified line of products to its

customers. The unique products offered by Sanjivani are as

follow:

Figure 3.4 Marketing Mix of SPL



PRODUCT PREVENTING DIESEASE PACK

INJECTABLE RANGE

PENEM Septicemia,

Pneumonia (HAP/VAP)

1 gm , 0.5 gm , 125 mg

SANTAZ Neonatal sepsis,

Nosocomial infections,

Febrile Neutropenia

4.5 gm , 2.25 gm ,

1.125 gm

BROADCEF-T Surgical prophylaxis,

Intra abdominal infections,

Pre-post operative conditions

1 gm , 500 mg , 250 mg

BROADCEF Typhoid , Meningitis

Surgical prophylaxis , SSIT

250 mg , 1000 mg

CEFROBACTUM Peri-operative cases,

Gynecological infections,UTI

2 gm , 1.5 gm , 1 gm ,

500 mg

SANCLAV Acute sinusitis , Pharyngitis,

Tonsillitis

1.2 gm

PRAZOSAN Acidic conditions 40 mg

SANMICA Septicemia , UTI

Febrile neutropenia

500 mg , 250 mg , 100 mg

TABLET/CAPSULE RANGE

SANCLAV Pneumonia , Tonsillitis 625 mg

ZUCAF-CV UTI , Typhoid , RTI 325 mg

PRAZOSAN-DSR Ulcer , prevent injury of stomach 10×10 cap

PRAZOSAN Heart burn , GERD 40 mg

TYDOL Post operative pain 10×10 Tab

SANFLOX-O PID , Diarrhead dysentery 10×10 Tab

SANCALVIT Arthritis , Osteoporosis 10×10 Tab

LIQUID RANGE

ZUCAF-CV dry syrup RTI , SSTI 50 ml

SANCORIL Productive cough 100 ml

HEVIT Iron Tonic Anaemia in pregnancy 200 ml

MONOVIT Vit-B Syrup Pregnancy & Lactation 200 ml

SANCALVIT SYRUP Hypocalcaemia 200 ml



PRICE

The prices and the margins of drugs for the wholesaler and retailers are largely decided by the

National Pharmaceutical Pricing Authority (NPPA), which varies depending on whether the

active constituent of the product is a scheduled drug or a nonscheduled drug. Scheduled drugs

are price controlled whereas nonscheduled drugs are not.

The NPPA is an organization of the government of India established to fix or revise prices of

controlled bulk drugs and formulations. Companies must keep drug prices affordable to the

general public. To keep medicines within reach of the poor population, the government has

covered 76 scheduled drugs.

Hospitals and large institutions sometimes directly negotiate with the manufacturing

company and get the drugs in their pharmacy at lower costs. Stockiest compete with each

other in a given city. Generally, hospitals order large quantities and can negotiate with

stockiest, who provide payment terms, credit periods, and margins. Further, retailers and

distributors form associations locally and nationally, and manufacturing companies must

comply with their terms.

For example, in many states when a company launches a new product (either branded or

generic), to make that product available in the pharmacy, the company has

to pay commissions to the chemist (pharmacy) association. On receiving the commission the

association will issue a no-objection certificate, which is mandatory for any company to make

their product available in the market.

PRODUCT PRICE (Rs) PRODUCT PRICE (Rs)

PENEM-1gm 1100 MONOVIT Syrup-200 ml 58.00

SANTAZ-4.5gm 308.0 SANCALVIT SYRUP 60.00

BROADCEF-T 1.2 gm 145.0 SANZOLE-10 ml 22.50

BROADCEF-1000 mg 62.40 RITONE-4.5 ml 170.0

CEFROBACTUM 124.80 SANPON-200 ml 62.00

SANCLAV-1.2 gm 130.0

PRAZOSAN 40 mg 54.00

SANCLAVIT-(10 tab) 28.00

ZUCAF-(10 tab) 81.90

PRAZOSAN-40 mg 54.00

HEVIT Iron Tonic-200 ml 58.00

Table 3.2 prices of key products



PLACE

SPL has the strongest domestic distribution network for smoothing distribution of medicines

to North parts of the country. Currently it has 9 depots all over the country. Those are situated

at Maharashtra, Patna, Cuttack, Raipur, Ranchi, Agra, Varanasi, Lucknow, and Indore. It uses

own transport system to deliver its Product to the stockiest and retailer.

SPL also exports its products to 12 countries

Present export market covers:

Russia Sri Lanka

Ukraine Nepal

Uzbekistan Malaysia

Turkmenistan Thailand

Fiji Nigeria

Vietnam Peru

Table 3.3 global markets of SPL products

Figure 3.5 Export Market of SPL



PROMOTION

Public advertisement for medicine, especially POM drug is strictly prohibited in India. But it

may be done for OTC medicine to some extent. However, no pharma company in India is

engaged in such advertisement.

SPL heavily depends on personal selling through rapport building and maintaining. A team of

sales representatives, called MR have been employed to meet with physicians to explain the

merits, demerits, indication, contraindications, etc. of the medicine with the help of literature,

brochure, pad, booklet, leaflet, gift item etc. That is, the Medical Representative the

companies product to doctors front with the help of different promotional materials. If a new

drug is to be more expensive, then it needs to demonstrate that its superior performance is

worth it.

Its promotional activities can be illustrated as follows:

Promotional compliance

includes:

• Advertisements and

mailings

• Detail Aids, brochures

and others

• Internet sites

• Exhibition panels, videos

and others

• Gifts, samples and

others

• Reprints and others

• Hospitality

• Representative’s

• Meetings/Symposia

• Public Relations

• Any other

communication

Figure 3.6 MR strategy of promotion



SPL Company has 16 divisions based on therapeutic area and the sales force structure is

common for most of the prescription drugs

Sales force functions based on the therapeutic area. Each representative has to make 10 visits

to a doctor in a day, 240 visits in month.

The below image depicts a sample function of a Scientific Business Officer from company

SPL working for Urology Division in Mumbai.

Figure 3.7 Target of MR

SPL also launch schemes and offer gifts for brand promotion. The sale in scheme period may

sometime go up by 3-4 times (at times much more) than the usual monthly sale. It precedes

and succeeds by a much lower sale due to

drying up and over filling of the stock

pipeline.

Promotional activities exclude:

• Medical Information

o Responses to specific enquiries

• Shareholder/business communications

o Prescribed Information

• Patient Information Leaflets

o Price Lists



Chapter 4

STRUCTURE OF THE HUMAN RESOURCE DEPARTMENT

ORGANIZATIONAL STRUCTURE:

. Figure 4.1

Production Head

QC Lead

Store Dept.

Regulatory Leads QA Team Lead

Powder Department Head

Marketing Manager HR Manager

Finance Executive

Excise Head

Maintenance Dept.

Packaging Dept. Head

Logistics & Distribution

Liquid Dept. Head

Microbiology Lab

Product Devt. Head

Chemists

Purchase Dept.

CEO



4.1 Objectives of HRM in SPL

The general objective of HRM is to contribute towards the realization of the

organizational goals. The specific objectives of HRM may be listed as follows:-

To achieve and maintain good human relationship within an organization.

To enable each person to make his maximum personal contribution to the effective

working of the organization.

To ensure respect for human personality and the well being of each individual.

To ensure maximum individual development of personnel.

To ensure satisfaction various needs of individuals for achieving the maximum

contribution towards organizational goals.

Figure 4.2



All manufacturing units are staffed with adequate number of Professionals related to

Pharmaceutical sciences in accordance with WHO guidelines in order to produce good

quality, safe and effective drugs and pharmaceuticals. Adequate number of other supporting

trained and skilled technical personnel is employed for smooth functioning of the

manufacturing plant.

SPL has a dedicated team of adequate professionals for smooth functioning of the company

4.2 PROCESS OF HRP:

SPL use the information which was gathered from external environmental scanning

and assessment of internal strengths and weaknesses is used to forecast HR supply and

demand in light of thee objectives and strategies. Forecasting in SPL contains information

from the past and present to identify expected future conditions. Because of the rapid changes

in the political, economical & global changes, SPL mainly emphasize on short term

forecasting usually of 4 to 6 months durations.

Despite the availability of vary sophisticated techniques, forecasting in SPL is still

objective judgment. The facts are some times evaluated and weighed by knowledgeable

individuals, such as managers and HR experts, and some times not.

Figure 4.3 HRP in SPL

SPL Objectives & Strategies

Forecasting

SPL HR Plans

Internal Environment Scanning External Environment

Scanning

Survey Of Employees

Available Survey Of Employees Needed



SPL uses surveys to find out the present employees, their strength and experience and

then find out the no of required employees in near future. This gives the organization the

ability to cope with future need of employees. But the same is not true for high level

employees such as Pharmacists, Chemists, Analysts, Officers & Managers. SPL does not

have a valid planning for higher level officers. As a result there is always a shortage of

skilled, technical & experienced top level officers as indicated by the following table.

No. Ranks Available Required

1 Dept. Heads 07 10

2 Chemists 06 07

3 Purchase dept. staff 02 03

4 Ware House Officers 02 03

5 Accounts Sections 06 06

6 Maintenance Staff 07 02

7 Inventory Control 02 06

8 Logistics Officers 01 02

9

10

Analysts

Manager

08

01

07

02

Total Officers 42 48

Table 4.1 No. of employees department wise

4.3 SOURCES OF RECRUITMENT:

INTERNAL RECRUITMENT:

Internal recruitment seeks applicants for position from those who are currently employed.

Internal sources include present employees, employees referrals, former employees and

former applicants.

EXTERNAL RECRUITMENT:

i. Advertisement:

These constitute a popular method of seeking recruits as many recruiters prefer

advertisement because of their wide reach. Advertisement is local or national newspapers and



trade and professional journals is generally used when qualified or experienced personnel are

not available from other sources .Most of the senior position in industry are filled by this

method when they cannot be filled from within.

ii. Educational Institutional:

Direct recruitment from pharmaceutical colleges for jobs which require pharmacy

qualification has become a common practice a close liaison between the company and

educational institutional helps in getting suitable candidates to main various positions.

iii. Internet:

Job sites like naukri.com can be used to reach certain type of job applications such as

skilled workers. They provide 20,000 resumes in 5000rs.

4.4 EMPLOYEES RECRUITMENT & SELECTION:

“SELECTION PROCEDURE”

Once the forecast is developed and approved from the top management, the HR

department of SPL start Recruitment &

Selection process to fill the vacancies.

Like all good plans, HR Manager of SPL

builds employment plans on premises. Basic

assumptions for employment requirement by

forecasting contain three important things:

The supply of inside candidates;

Personnel needs;

The supply of outside candidates

according to their company requirements.

The overall aims of the recruitment and selection

process in SPL are to obtain, at minimum cost,

the number and quality of employees required to

satisfy the needs of staff requirement. The three

stages of recruitment and selection in SPL are:

Defining requirements:

Preparing job descriptions and specifications;

deciding terms and conditions of employment;

Attracting candidates: Reviewing and evaluating alternative sources of

applicants, inside and outside the company, advertising;

Selecting candidates: Sifting applications, interviewing, testing, assessing

candidates, offering employment, obtaining references; preparing contracts of

employment.

Figure 4.4



4.5 TRAINING & DEVELOPMENT:

Training is one of the most important tool any organization using to cope with the rapid

change in technology and way of doing business. HR department of SPL is responsible for

the training and Development of existing as well as new coming employees.

The difference between the training of new and existing employees are orientation

and SPL culture.

When a new employee is selected, an orientation of the new employees is conducted.

Production Manager is responsible for the orientation of new employees. Orientation is

basically a one to two hour activity in which the new employees are informed about the

organizational structure, term & conditions of employment, the duties of incumbent, the

ethical & behavioural requirement for the new employee and the so. This activity is only

design for the officers and managers. Workers & employees of lower level are exempted

from orientation. As a result most problems are observed at this level during day-to-day

transaction.

New or Existing employees are trained in HR Department via two methods.

Employees Handbook

Training by concerned department Manager.

The period of training is not specified, some times it covered in a week some times it

is extended up to 6 months.

4.6 PERFORMANCE MANAGEMENT:

Employee’s job performance is an important issue for all employers. A performance

management system consists of the processes used to identify, encourage, measure, evaluate,

improve, and reward employee performance at work.

SPL encourage their employees to achieve high level of excellence i.e. in



Quantity of output

Quality of output

Timeliness of output

Presence at work

Cooperativeness

These excellences are appreciated by the management at their monthly meeting with

their employees and in the form of shields and awards. However all these activities are

qualitative in nature. The activities of employees are recorded on the basis of observation

made by the management officials from time to time. There is also maintenance of

performance log. However critical incidents are recorded on rough pages for the future need.

4.7 EMPLOYESS COMPENSATION & BENEFITS:

SPL Pharmaceuticals currently Lower compensating there employees with respect to other

industries present in Mumbai.

SPL have a different pay structure for different level of employees and also

employees of same level. i.e. Head of two departments are paid two different type of

compensation.

HR department is responsible for pay and pay related issues. It was also found that

salary determination in SPL is a matter of bargaining. i.e. SPL pay 9500 Thousand to an

analyst while at the same time pay 15000 to other analyst working in a same post.

SPL creates 2 categories for their employees. Exempt & Non-Exempt. SPL pay

overtime to its non-exempt employees who work in excess of 8 hour and are one & half times

there base pay. Almost all officers, managers, directors & executives are exempt from

overtime allowance.

There is also shift premium and night allowance for workers. The pay structure changes in

SPL with that of based on seniority and not on performance.

Employees Categories

Exempt Employees

Non-Exempt Employees



4.8 TYPES OF COMPENSATION & BENEFITS:

There are only one type of pay structure is available for the lower level employees. i.e.

base pay. No other direct & indirect pay & benefits are provided to the employees. For the

lower level employees SPL is giving time base pay i.e. every employee have to work for at

least 9 hours a day after which he has subject to receive his pay at the end of month. No

portion of the pay is directly or indirectly associated with the pay. As a result motivations of

the employees are low.

The composition of salary of lower level employees consist of :

Basic Salary

Overtime

Indexation allowance (For workers having salary less than 2500 rs/month)

Basic Salary

Cost of

Living

Allowance

Overtime

Attendance

Allowance

Indexation

Allowance

Composition

of Salary



SPL pay a higher wage to his high level employees. The composition of the salary given to

these employees consists of:

Gross Salary

Basic Salary

House Rent

Transportation Allowance ( usually between 300 to 500 rs/day)

Cost of Living Allowance

Internet Allowance (300 rs/day)

Medical Allowance

Bonus (8.33% of salary)

Education Allowances

Deductions

Loan Instalments

Provident Fund (12% of basic)

ESIC

Benefits

The following benefits are being paid.

ESIC ---------------------------------

4.75 % of wages

Advance against salary------------- up to one third of salary (For all employees)

Medical allowance ----------------- 4% of Salary

Loans

The employee is given loans as per the loan policy mentioned in the Service Rules. The

employees submit their application for loan approval to HR department after the approval of

the Managing Director the loan is granted to the applicant

4.9 LABOUR MANAGEMENT RELATIONS:

Labour-Management relation in SPL is an ideal one. The employees are just satisfied

the management style. Thus we can say that the organization keeps normal relations with its

employees. There are two-way communications methods in SPL. Several features of Labor-

Management relations are

Figure 4.5 Performation Appraisal in

SPL



Every employee has the right to come to meet his immediate BM for his problem. If

his BM cannot satisfy the employee, then employee can go to HR department for his

problem.

Some Department held meeting on monthly basis in which head of Dept and first line

BM, ABM & RM meet to employee and discuss about the previous performance of

Dept & individual performance. At the end the decisions are made to enhance the

individual performance by facilitating the employees.

The company treats all employees with respect and dignity, no employee is subjected

to any gesture, language and physical contact that are sexually coercive, threatening,

abusive or exploitative.

Discipline Procedure:

Warning are addressed to the employees verbally and in written through their

immediate RM. The warning referred to the contraventions committed by the

employee and served to remind the employees the he/she abide by the company rules

and regulations in performing his/her work, and that this contravention should not be

repeated in future.

A written letter addresses to the employee describing the contravention committed.

The employee is also notified that a higher penalty may be inflicted on him in the

contravention is repeated in future. The warning letter is then registered in the

employee’s personal file. Issuance of written warning can be recommended by the

respective supervisor and Head of Department. It will be issued by the HR department

after approval of Chief Executive Officer.

The employee may be suspended from performing his or her duties for a period of

time as conveyed in written.

Unauthorized absence of more then two times in Six month can result in termination

of employment.

An employee who is absent from the job with out satisfactory explanation and

necessary proof is considered to be an unauthorized unpaid absence.

Discrimination, intimidation and harassment based on sex, race, religion, age, color,

disability, sexual orientation and cultural background is prohibited at the workplace.



Chapter 5

Operation and Production

Production is a functional area responsible for turning inputs into finished outputs through a

series of production processes. The production manager is responsible for making sure that

raw materials are provided and made into finished goods effectively.

Lay out:

Figure 5.1 Layout of SPL



5.1 Material movement in production area:

Chemist room

It is an area where all workers, machine operators and officers meet daily at the starting time

of their respective shift to plan complete schedule and allocate work activities.

In the room one white board displays 1 month projected manufacturing schedule of

production department in following format.

Figure 5.2



Sr,

no.

Mfg. date Filling

date

Product name Batch no. Batch size Remarks

1 15/05/2012 16/05/2012 Emtec 2ml SRA 205 200 liter Domestic

2 16/05/2012 16/05/2012 Sanmycin 2ml SGT 206 150 literr Export

Table 5.1 Format of mfg. schedule

All officers have been affix label on glass window of concern area, to demonstrate current

operation of area in following fix format.

BATCH IN PROCESS

DATE:__/ __/ 201_

PRODUCT NAME

BATCH NUMBER

BATCH SIZE

MANUFACTURING SIZE

EXPIRY DATE

STAGE

CHECKED BY

Table 5.2 Format of label used in each dept.

5.2 BMR (Batch Manufacturing Record)

It is a file which contains all the details of batch starting from raw material receiving to finish

good dispatch. BMR preserved for 1 year more than expiry date of batch

Content of BMR:

Sr. no. Title Sr. no. Title

1. Product name 13. Washing of PPM

2. Generic name 14. Mfg process detail

3. Strength 15. Filtration detail

4. BMR status 16. Filling detail

5. Effective date 17. Sterilization detail

6. Supersedes 18. Calculation

7. CC no. 19. Accountability %

8. Batch size 20. Yield %

9. Material pick up list 21. Visual inspection record

10. Master formula 22. History date

11. Signature log 23. Cycle time

12. Verification sheet 24. Packaging & labeling

Table 5.3 Format of BMR making by production dept.



5.3 Introduction to areas of production department

a. De cartooning area

Here primary packing materials like ampoules and vials are received. Workers arrange

ampoules or vials into perforated plate which are directly sent to washing area through hedge.

There would be normal pressure and room temperature would be maintained.

b. Ampoules / Vials washing area

In this area ampoules and vials are being washes in two step process

1. Inner wash: by help of purify water, water for

injection and compressed air one by one.

2. Outer wash: by help of purify water &

water for injection one by one.

Temperature of washing area should NMT 27o C & pressure NLT 0.4 mm of WC. (WC =

water column) 23

PROCESS

Water is sprayed onto the ampoules.

Turned to an angle of 180 degree with their mouth downward to remove water.

Finally the ampoules are filled with compressed air to remove residual water.

Certain machines have a high temperature zone meant for killing any bacteria.

c. Equipment washing area

Here parts of

equipment or tanks

has to be cleaned

with help of purify

water and then

water for injection.

Temperature of

washing area

should NMT 27o C & pressure NLT 0.4 mm of WC (= water column)



d. Dress washing area

Equipment has capacity to process 30 pairs of dress at once. Normal room temperature and

humidity would be maintained here.

e. Autoclave & DHS (Dry Heat Sterilization)

area

Material or equipments used for preparation of

parenteral products must pass through autoclave

or DHS, for sterilization.

This process leads to denaturation of protein of

bacteria, results in death of bacterias. Autoclave

wiil lead to coagulation of protein of bacteria.

It has temperature NMT 27o C & humidity NMT 55%. Temperature will be automatically

recorded and printed at regular interval of 3 minutes.

f. Manufacturing area

Here active ingredients &

recipient of final product

have been mixed according

to procedure of BMR.

Manufacturing area has to

send in process sample of

30 ml for approval of QC

department.

In this area temperature,

humidity, pH order of mixing and other parameters has to be followed strictly.



g. Filtration area

Bulk solution or suspension is filtered through membrane or cartilage filter by help of

nitrogen gas with pressure of 0 to 2 Kg/cm2. Efficiency of filter is calibrated by bubble point

test.

h. Filling and capping area

In filling area Product is filled in respective containers.

There are 3 different types of filling tube

Stainless steel, Glass & Silicon.

Tubes have been washed by ultrasonic

machine. (By help of vibration)

Initial 5 vials or ampoules have been discard

in following cases:

Initial machine startup.

Completion of maintenance

work.

Replacement of syringe &

needle.

Shift change.

Each & every carton contain FO number

(Filling operation)

FO number will be changed in following

cases:

Any interruption.

Take more than 1 day for filling

Power failure of more than 30 minutes.

Change in filling syringe.

Breakdown for more than 120 minutes.

Change in fill volume.

In the filling process control

limit (Standard of company) is

+/- 1.5% and tolerance limit

(Standard of industry) is +/-

2%.

In UTL, excess amount of drug is

filled than labeled volume in

pharmaceutical industry as follows:



Sr. no. Labeled size

(ml)

Recommended excess volume

Mobile liquid (ml) Viscous liquid (ml)

1. 0.5 0.1 0.12

2. 1 0.1 0.15

3. 2 0.15 0.25

4. 2.5 0.17 0.3

5. 3 0.20 0.35

6. 4 0.25 0.4

7. 5 0.30 0.5

8. 10 0.50 0.7

9. 20 0.60 0.9

Table 5.4 Excess volume labelled

i. Visual inspection area

In this area each & every ampoules or vials have been checked by trained workers

manually.

Each worker gets target to

complete within one shift, target is depend

on type of product.

Visual department require

minimum 22 workers.

Each worker has to be submitting eye

report from government hospital.

Each worker gets 20 minute break after

every 2 hours.

Workers have to be properly trained

properly for 1 week.

Company takes on test for 100 ampoules,

in which qualifying criteria is 97% accuracy.

Up to one week 100% cross checking is

takes place.

Workers are generally reject products

having following errors:



Fiber NMT 2 Low dose Improper sealing Damaged bottle

Black particle High dose Without seal Melt cake

White particle Black oil Without rubber stopper Others

Table 5.5 Format of rejected products labeling

At the end of visual of any batch, area has to prepare statistical sorting report in following

format:

Container

no.

No. of

units

Inspected

by

Sample

qty.

No. of

rejection

Sorted by Types of

rejection

Remark

1 294 DJV 3 Nil SAM NA NA

2 294 SRV 3 Nil SAM NA NA

Table 5.6 Format of sorting report

Temperature measurement record.

Sequential log sheet.

Daily visual inspection record.

Manpower attendances register.

Training record file.

j. Freeze dry area

It works on principle of “Lyophilization & Sublimation”

This process has capacity to remove moisture from product by converting moisture in

ice and then directly convert to vapor by passing liquid stage.

Freeze dryer is from “Lyovac

company”.

Product has been load at 5 0C at

loading temperature.

In first stage freeze dryer lower

temperature up to -40 0C, so

moisture in product will be

converting to ice.

Silicon oil is used to lower and



maintain temperature up to -40 0C, because structure of silicon oil will remain same

from -56 0C to +260 0C.

Now in second stage temperature will increase at uniform rate.

Vacuum of 0.05 millibar will be applied to remove vapor of moisture.

Cycle time & temperature will vary with types of product.

This freeze dryer has 200 liter capacity.

EX: Lupride depot is freeze dried product; UTL is only Manufacturer Company in India.

FD area has planning schedule on the board in following format:

Sr. No. Product

name

FD load

date

FD unload

date

Batch no. Batch size Remark

1 Diclomine 08/5/12 10/5/12 SDC 205 200 ltr. Primary

2 Netlisan 10/5/12 15/5/12 STT 206 175 ltr. NA

Table 5.7Format of writing batch mfg. on board

k. Quarantine area

after completion of visual inspection, products are placed in this area.

from this area, packing department will

receive products for labeling & secondary

packing with help of “Batch transfer note”.

there are different To Be Checked Labels for

different stages of products.

Purpose of this Labels is to identify

product at each & every stage and to avoid a

mix up of materials.

l. Crushing area:

Once in 15 days, all non-recoverable

rejected final products have been

crushed here.

Production area is responsible for maintaining records of crushing activity.



m. Sanitizing Activity:

Each & every area of production department sanitize regularly by different solution.

Even company sanitizes each drain point by using 2.5 liter of sanitizing solution

daily.

Company has to change sanitizing solution after every week, because of

“Development of resistant in microorganism”

n. Media plate:

sterility of area.

If sterility is not proper then, growth of microorganism in media will be observed.

o. Particle counter:

Once in month, QA department check particle count in area A, by help of particle counter

machine.

5.4 PACKAGING DEPARTMENT

There are 6 different types of packing line in packing department for secondary packing.

Secondary packing includes following boxes.

Sr.

No.

Line name Use Work

stations

Machines

01 Glass bottle packing line Glass bottle 9 Labeling done by manually

02 Vial packing line Vial 14 Labeling machine

Check weigher machine (Techno

four company)

Online coding machine

(PIC electronics)

03 Ampoule packing line (2

line)

Ampoule 14 Same as “Vial packing line”

04 Single pack show box over

wrapping line

Single show

box

8 Single wrapping machine


four company)

05 Multi pack show box over

wrapping line

Multi show

box

8 Multi wrapping machine


four company)

Table 5.8 Secondary packaging labels



there are mainly 2 types of products.

.

after completion of batch, final products are transferred to store of company.

Layout of packing department quarantine:

In packing department following defects have been observed:

Double label Improper label Damaged cartoon

Twisted label Torn label Partial printing

Tip break Dirty label Missing leaflet

De shaped ampoule Cartoon without bottle

Table 5.9 Defects in labeling procedure



5.5 PACKAGING OF PARANTERALS

Containers:-

Parenteral preparations are supplied in glass ampoules, bottles or vials, plastic bottles or bags,

and prefilled syringes, which are coloured in the case of light-sensitive substances.

Except where otherwise indicated in individual

monographs, these

containers are made

from material that is

sufficiently

transparent to permit

the visual inspection

of the contents. They

should not adversely

affect the quality of

the preparation,

allow diffusion of any kind into or across the material of the

container, or yield foreign substances into the preparation.

Closures:-

Closures for Parenteral preparation containers should be equipped with a firm seal to prevent

entry of microorganisms and other contaminants while permitting the withdrawal of a part or

the whole of the contents without removal of

the closure. They should not be made of

components that react with the contents, nor

should they allow foreign substances to diffuse

into the preparation. Plastic materials or

elastomers of which the closure is composed

should be sufficiently firm and elastic to allow

the passage of a needle with the least possible

shedding of particles. Closures for multidose

containers are made sufficiently elastic to

allow the puncture to reseal when the needle is

withdrawn and protect the contents from

airborne contamination. A tamper-evident

container is fitted with a device that reveals clearly whether it has ever been opened.



5.6 LABELLING OF PARENTRALS

Labelling:-

Every pharmaceutical preparation must comply with the labelling requirements established

under Good Manufacturing Practice.

The label of a Parenteral preparation should include:

(1) The name of the product;

(2) The name(s) of the active ingredient(s); INNs should be used wherever possible;

(3) The amount of the active ingredient(s) in a suitable dose volume and the volume in the

container; for powder for injections: the amount of the active ingredient(s) in the container;

(4) the batch (lot) number assigned by the

manufacturer;

(5) the expiry date and, when required, the

date of manufacture;

(6) any special storage conditions or handling

precautions that may be necessary;

(7) directions for use, warnings, and

precautions that may be necessary; and

(8) the name and address of the manufacturer or the person responsible for placing the

product on the market.

For Parenteral preparations that are solutions or dispersions, the concentration of the active

ingredient(s) should be given in terms of mass or biological activity per volume. For

concentrated solutions, labels should state the composition and the dilution to be carried out

before use.

5.7 QUALITY CONTROL

The quality control section of the company involves the processes of striving to produce a

perfect product by a series of measures requiring an organized effort by the entire company to

prevent or eliminate errors at every stages in production. The in-process quality control for

Parenterals is as follows:-



1) Checking the bulk solution, before filling, for drug content, pH, color &

completeness of solution.

2) Checking the filled volume

of liquids or filled weight of

sterile powders for injection

in the final containers at

predetermined intervals

during filling.

3) Testing for leakage of

flame-sealed ampoules.

4) Subjecting the product to

physical examination for appearance, clarity &

particulate contamination.

5) Examining the sterility

indicator placed in various areas of the sterilizer for

each sterilization operation.

Submitting the product for sterility testing to

establish the safety & other parameters of the

product.

The following quality control tests are performed in the quality control section of the

company:-

1) LEAKAGE TEST:-

Any leakage in the ampoules may cause entry of micro-organisms in the ampoules or

the drug content may leak outside &

spoil the appearance of package. Thus,

this test is carried out to check the

leakage of ampoules.

Leakers are detected by producing a

negative pressure within an incompletely

sealed ampoule in a vacuum chamber,

while ampoule is entirely submerged in a

deeply colored dye solution (0.5%

methylene blue). Some amount of dye is

entered into the ampoule from opening.

This is visible after the ampoule has been washed externally to clear it of dye.



2) CLARITY TEST:-

It is practically impossible to prepare a lot of a sterile product so that every unit of

that lot is perfectly free from visible particulate matter, i.e.,30 to 40 m & larger in

size.

The visual inspection of a product is done by individual human inspection of each

externally clean container under a good light, baffled against a black & white

background, with the contents set in motion with a swirling action. The care must be

taken to prevent entry of air bubble. A moving particle is easier to see than that of

stationary particle. It is necessary to invert the container to see the heavy particles as

the final step in inspection.

3) LAL TEST:-

The presence of pyrogens in the preparation can be detected by an in-vitro test method

for pyrogens. This method utilizes the gelling

property of the lysate of the amebocytes of

Limulus polyphemus (the horseshoe crab). A firm

gel is formed within 60 min in the presence of

pyrogenic endotoxins from gram negative

bacteria when incubated at 37 . This test is

commonly known as LAL test.

4) STERILITY TEST:-

The sterility of the preparation can be determined

by incubating the small volume of preparation in

an agar plate at 37 for 48 hours. If the growth of micro-organisms occurs in the agar

plate after 48 hours, then that preparation will be discarded.

5.8 STORAGE SECTION

The powdered & liquid injectibles

filled in vials/ampoules are then

packed into cartoons. These cartoons

are stored in a cold place. The light

sensitive pharmaceutical products are

stored in the absence of sunlight. The

region where these cartoons are

placed should be neat & clean. The

pharmaceutical products should be



stored carefully in order to prevent the breakage of containers and the spoilage of the drug.

These cartoons should well label.

STORE DEPARTMENT

The store department is responsible for

stocking all the necessary tools, spares,

raw materials and equipments which

required for manufacturing process.

When source is unreliable, buffer stocks

will need to be kept and the use of

computerized stock control systems helps

keep stocks at a minimal but necessary

level for production to continue

unhindered.

Store department is further divided into following 4 sub units:

Figure 5.3 Store dept. layout

Store department is currently using FIFO (First in First out) method. Store department has

facility of cold room to store products at 20C to 80C



Material movement in store department:

It is a link between

industry and external

environment market.

Store is only department

which deals with

acceptance of raw

material for production

and dispatch of finished

goods. Store department

is also responsible for

storage of raw materials

and finished products as

per requirement in

suitable environment.

Figure 5.4



Chapter 6

DISPATCH AND IMPORT – EXPORT

6.1 WAREHOUSE

All the activities in the warehouse can be shown in the form of a diagram given below.

RECEIPT AND HANDLING OF RAW MATERIAL

On receiving intimation from gate by

security in-charge regarding any

receipt of raw material, the following

matters/details are required to be

verified on the basis of supplier‟s bill

challan.

Then supplier‟s bill/challan would be

checked, whether the material is for

our location, if yes then material

would be allowed inward.

Security will take entry in inward

register and allow vehicle inside the

factory. The security in-charge will

put the reference of the inward entry

on the backside of the supplier’s

bill/challan/LR (lorry receipt)

Figure 6.1



STORAGE OF RAW MATERIAL

Checks and precautions

Storage all the liquid raw materials on the lower most rack. Store the heavy containers at

lower level of rack. All the raw materials are to be stacked in proper rows, so that movement

of the materials at the time of issuance is easy.

Quarantine area

Store QUARANTINE materials in this area which are identified by yellow colored border

dedicated area/covered with nylon net/yellow rope (if applicable) with “Quarantine” coupon.

Try to store single consignment on one pallet, if consignment is large, use required number of

pallets ensuring proper segregation. Use separators in between for stacking different material

on single pallet.

Approved area

Store all approved materials in this area, which

are identified by green colored “Approved”

label.

Rejected area

Store all rejected materials in this area which are

identified by red colored “Rejected” label

Storage area

Store all the raw materials in the area with

respect to their storage conditions as per the list given by QC. The various storage area

available are

Temperature range Storage area

Less than 2o C Cold storage/refrigerator/cooling cabinet

Less than 25o C A.C. store room

Room temperature Respective location/ store room

Table 6.1 Temp. range of different dept.



Depending on the status of materials like Quarantine/approved/rejected transfer the material

to its respective location. Whenever any non compliance is observed at any stage, inform the

QC department for defacing the approved label and affix the HOLD label if required

In such cases where the non-compliance is observed for limited packs / containers instead of

whole lot, the same should be transferred to Quarantine area after affixing HOLD label.

Necessary entries should be updated in ERP for the same.

After shifting the raw material to their respective location, update the locator code in the ERP

system and thereafter also whenever material is shifting from one location to another or one

rack to another, update the ERP system likewise.

Whenever any material (in-out) from (2o to 8o) refrigerator and (-14oC to -25oC) deep

freezer like for dispensing or sampling or any reason to be note down the entry in log book

register.

6.2 Dispatch

At the Unimed a standard procedure for dispatching is being followed strictly. This procedure

ensures the quick dispatch of finished products into the market within very less time after the

manufacturing of product.

Warehouse receives RFC (Rolling Forecast) every month from the corporate. RFC is a list of

products to be dispatched in the month. The same RFC is also sent to the production

department for manufacture planning during the month.

Meanwhile the dispatching process proceeds, documentation process will also proceeds

simultaneously. The list of required documents is given below.

Details of documents for dispatch of finished goods:

Name of document Document source

1 Excise bill in duplicate ERP

2 Stock transfer note ERP

3 Form 402 Printed form

4 Form AR-2 for state excise product Printed form MS Excel / open Office, signed

by excise inspector

5 Lorry receipt Transporter

6 Original and triplicate of out pass Warehouse

7 Form ARE-1 / ARE-2 / AR-4 for export Printed form MS Excel / open Office, signed

by excise inspector wherever applicable

Table 6.2 List of documents for dispatch of finished goods



Dispatch procedure

Authorized officer prepares the list of products to be dispatched with full details as per shown

below.

Item code

Description of the item

Rate of excise duty to be charged while billing

Batch no.

Total quantity

Total no. of boxes

Quantity in loose boxes

Retail price per unit

6.3 Import

The wide portfolio of Unimed products requires large variety of raw materials from India and

IMPORT AT CONCESSIONAL RATE OF DUTY

Foreign. Company imports various

raw materials on regular basis from

renowned organizations of Europe,

America and some other countries.

Import procedure is very difficult

which includes typical

documentation and approval

procedure from many different

government authorities at the

different stages of import. As

import procedure became a regular

practice at Unimed Company

always apply for import at

concessional rate of duty So

general import is known here as

“import at concessional rate of

duty”.

Here the flow chart of the whole

import procedure is produced in

order to present the difficult import

procedure in simple form. Figure 6.2



Import Process:

1. Registration:

A manufacturer intending to avail of the benefit of an exemption shall obtain a registration

from the assistant commissioner of central excise having jurisdiction over his/her factory.

The registration shall contain particulars about the name and address of the manufacturer, the

excisable goods produced in his factory, the nature and description of imported goods used in

manufacture of such goods.

Then the assistant commissioner of central excise

or deputy commissioner of central excise will

issue a certificate to the manufacturer indicate the

particulars referred above.

2. Application by the manufacturer to obtain

the benefit:

A manufacturer who has obtained a certificate

and intends to import any goods for use in his/her

factory at concessional rate of duty, shall make

an application to the assistant commissioner of

central excise or deputy commissioner of central

excise indicating the estimated quantity and value of such goods to be imported. Applicant

shall also provide details of port of import.

The manufacturer may at this option, file the application either in respect of a particular

consignment or indicating his estimated requirement of such goods for a quarter.

The manufacturer shall also give undertaking on the application that the imported goods shall

be used for the intended purpose only.

The application shall be countersigned by the assistant commissioner or deputy commissioner

of central excise who shall certify there in that the manufacturer is registered in his office and

has executed a bond to his satisfaction in respect of end use of imported goods in the

manufacturer‟s factory and indicate the particulars of such bond.

3. Procedure to be followed by AC / DC of customs:

On the basis of application countersigned by assistant commissioner or deputy commissioner

of central excise, the assistant commissioner or deputy commissioner of customs at the port

of import shall allow the benefit of the exemption notification to the importer.

Provided that where the importer has field the application in respect of his estimated

requirement for a quarter, that said assistant commissioner of customs or deputy

commissioner of customs shall debit in the said application, the quantity and value of import

made under a particular consignment, also indicating particulars of the bill of entry, before

allowing the benefit of the exemption notification to the importer.



The assistant commissioner or deputy commissioner of customs will forward a bill of entry

containing the particulars of import, the amount of duty paid and other relevant particulars to

the assistant commissioner or deputy commissioner of central excise.

4. Procedure to be followed by AC / DC of central excise:

The assistant commissioner or deputy commissioner of central excise shall acknowledge the

receipt of intimation received from the assistant commissioner or deputy commissioner of

customs.

5. Manufacturer to give information regarding receipt of imported goods and maintain

records:

The manufacturer shall give information of the receipt of imported goods in his factory,

within two days (excluding holidays, if any) of such receipt, to the superintendent of central

excise having jurisdiction over his factory.

The manufacturer shall also maintain a simple account indicating the quantity and value of

goods imported. The quantity of imported goods consumed for the intended purpose and the

quantity remaining in stock, bill of entry wise. The organization has to present this account as

and when required by the assistant commissioner or deputy commissioner of central excise.

6. Recovery of duty in certain case:

The AC/DC of Central Excise shall insure that the goods imported are used by the

manufacturer for the intended purpose and in case they are not so used take action to recover

the amount equal to the difference between the duties liviable on such goods but for interest,

at the rate fixed by notification issued under section 28AB of the customs act, 1962 for the

period starting from the date of importation of the goods on which the exemption was availed

and ending with the date of actual payment of the entire amount at he difference of duty that

he is liable to pay.



6.4 EXPORT

Whenever any goods produced in the factory anywhere in India leaves the factory premise, it

is liable to excise duty. But in order to promote the export government provide 100%

exemption on duty paid by exporter. This way exporter gets relief from

5% basic excise duty

2. 2% of basic duty as education cess

3. 1% secondary and higher secondary education cess

Unimed exports its products in countries like, Guyana, Thailand. Mauritius, Netherlands,

Algeria, Peru, Russia, South Africa etc.

Export process:

In exercise of the powers conferred, the Central Government hereby, directs that rebate of

whole of the duty paid on excisable goods (hereinafter referred to as „materials‟) used in the

manufacture or processing of export goods shall, on their exportation out of India, to any

country .

(1) Filing of declaration. - The manufacturer or processor shall file a declaration with the

Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise

having jurisdiction over the factory of manufacture describing the finished goods proposed to

be manufactured or processed along with their rate of duty leviable and

manufacturing/processing formula with particular reference to quantity or proportion in

which the materials are actually used as well as the quality. The declaration shall also contain

the tariff classification, rate of duty paid or payable on the materials so used, both in words

and figures, in relation to the finished goods to be exported.

(2) Verification of Input–output ratio. – The Assistant Commissioner of Central Excise or

the Deputy Commissioner of Central Excise shall verify the correctness of the ratio of input

and output mentioned in the declaration filed before commencement of export of such goods,

if necessary, by calling for samples of finished goods or by inspecting such goods in the

factory of manufacture or process. If, after such verification, the Assistant Commissioner of

Central Excise or the Deputy Commissioner of Central Excise is also satisfied that there is no

likelihood of evasion of duty, he may grant permission to the applicant for manufacture or

processing and export of finished goods.

(3) Procurement of material. – The manufacturer or processor shall obtain the materials to

be utilized in the manufacture of the finished goods intended for export directly from the

registered factory in which such goods are produced, accompanied by an invoice under rule



11 of the Central Excise Rules, 2002: Provided that the manufacturer or processor may

procure materials from dealers registered for the purposes of the CENVAT Credit Rules,

2002 under invoices issued by such dealers.

(4) Removal of materials or partially processed material for processing. – The Assistant

Commissioner of Central Excise or the Deputy Commissioner of Central Excise may permit a

manufacturer to remove the materials as such or after the said materials have been partially

processed during the course of manufacture or processing of finished goods to a place outside

the factory -

(a) for the purposes of test, repairs, refining, reconditioning or carrying out any other

operation necessary for the manufacture of the finished goods and return the same to his

factory without payment of duty for further use in the manufacture of finished goods or

remove the same without payment of duty in bond for export, provided that the waste, if any,

arising in the course of such operation is also returned to the said factory of the manufacture

or process; or

(b) for the purpose of manufacture of intermediate products necessary for the manufacture or

processing of finished goods and return the said intermediate products to his factory for

further use in the manufacture or process of finished goods without payment of duty or

remove the same, without payment of duty for export, provided that the waste, if any, arising

in the course of such operation is also returned to the factory of manufacturer or processor;

(c) Any waste arising from the processing of materials may be removed on payment of duty

as if such waste is manufactured or processed in the factory of the manufacturer or processor.

(5) Procedure for export. - The goods shall be exported on the application in Form A.R.E. 2

specified in the Annexure to this notification and the procedures specified in Ministry of

Finance (Department of Revenue) notification No. 42/2001-Central Excise (N.T.), dated the

26th June, 2001 shall be followed.

(6) Presentation of claim of rebate. – The claim for rebate of duty paid on materials used in

the manufacture or processing of goods shall be lodged only with the Assistant

Commissioner of Central Excise or Deputy Commissioner of Central Excise having

jurisdiction of the place approved for manufacture or processing of such export goods.



Chapter 7

COMPANY’S REGULATORY STRUCTURE:

There are various legislations that govern the manufacture and sale of drugs and Parenterals

in India. There are also rules framed under the provisions of these laws. The following are

the laws that are currently in operation in the country:

1. The Poisons Act, 1919

2. The Drugs and Cosmetics Act, 1940

(this was amended various by Drugs

(Amendment) Acts in 1955, 1960,

1962, 1964, 1972, 1982 and 1986)

3. The Drugs and Cosmetics Rules,

1945

4. The Pharmacy Act, 1948

5. The Drugs and Magic Remedies

(Objectionable Advertisement) Act,

1954

6. The Medicinal and Toilet

Preparations (Excise Duties) Act,

1956

7. The Narcotic Drugs and Psychotropic Substances Act, 1985

8. The Drugs (Prices Control) Order, 1995

General legislations that have a significant bearing on pharma industry in the country.

1. The Industries (Development and Regulation) Act, 1951

2. The Trade and Merchandise Mark Act, 1958

3. The Indian Patents and Design Act, 1970.

From among these legislations the following four play a critical role in the

development of the industry:

(a) Schedule ‘M’ of the Drugs and Cosmetic Act 1940

(b) The Indian Patents and Designs Act, 1970

(c) Patents (Amendment) Act, 1999

(d) The Drugs (Price Control) order (DPCO), 1995

These legislations are briefly described so as to appreciate their likely impact on and

response from the manufacturers and others concerned.



7.1 Schedule `M’ of the Drugs and Cosmetics Act (1940)

The Schedule ‘M’ classifies the various

statutory requirements mandatory for all drugs,

pharmaceuticals and medical disposable

industry relevant as per current good

manufacturing practices (CGMP). Schedule

‘M’ was last revised in 1986, when the concept

of GMP was first introduced. The Central

Government is now revising the Schedule ‘M’

to get it “harmonized with that of the various

developed and developing countries and also

to the level of the well established international

organizations such as the World Health

Organisation (WHO)”.

WHO guidelines on GMP for pharmaceutical

products urge that:

All manufacturing processes are clearly

defined, systematically reviewed, and shown to

be capable of consistently manufacturing

pharma products of the required quality that comply with their specifications;

All necessary facilities are provided including

qualified trained personnel, adequate premises and

space, suitable equipment and services, correct

materials, containers and labels, approved

procedures and instructions, suitable storage and

transport and adequate personnel, laboratories and

equipments for in process controls;

Instructions and procedures are written in clear

and unambiguous language;

Operators are trained to carry out procedures

correctly;

Records are made (manually and/or by recording

instruments) during manufacture to show that all the steps required by the defined



procedures and instructions have actually been taken and that the quantity and quality

of the product are as expected and any significant deviation fully recorded and

investigated;

Records covering manufacture and distribution are retained in a comprehensive and

accessible form;

A system is available to recall any batch of product from sale or supply; and

Complaints about marketed products are examined, the causes of quality defect

investigated, and appropriate measures taken.

A special sub committee

constituted by the Government of India

has proposed revamping of the Schedule

M, covering specifications such as general

requirements in case of buildings and

premises, personal sanitation and hygiene,

training, production and operation

controls, quality control and assurance,

stability and validation studies, documentation, complaints and self-inspections; and special

requirements for individual formulation categories. Among other things, the amendment

calls for the following:

To maintain a ratio of 1:2

between the constructed area and

surrounding premises to prevent

environmental pollution;

To install a validated

water system to aid monitoring

and control of bio-burden levels;

To have a good disposal

system, in the absence of which to have arrangements to recycle rejects;

To have proper environmental control, with emphasis on buildings, till the primary

packaging is complete;



To ensure supply of filtered air in all production areas to prevent environmental

pollution;

To have specifically designed areas for production, quality control, storage and ancillary

areas;

To take adequate precautions to segregate the manufacture of highly potent drugs to

avoid cross contamination;

To design adequate operational and process controls to ensure reproducible quality of

drugs;

To ensure total quality control from raw materials procurement till the retail counter;

To undertake detailed stability studies to establish the quality of drugs in different

climatic and storing conditions; and

To evolve clear and realistic

documentation procedures.

7.2 The Indian Patents and

Designs Act, 1970

This Act aims at protecting

inventions. The term of patent

granted is in respect of an invention

claiming the method of process of

manufacture of a substance. For a

medicine or drug the protection is

given for a period of five years from

the sealing of the patent or seven

years from the date of patent, whichever period is shorter. The Controller of Patents,

Designs, and Trade Marks appointed under the Trade and Merchandise Act, 1958 is the

Controller of Patents.

Figure 7.1 Granting of license



7.3 Patents (Amendment) Act, 1999

After signing the GATT agreement, India needed to change its patent law from process patent

regime to a product patent regime. Developing

countries are given time till 2005 to change their

patent legislation. Since January 1, 1995, India

has begun to accept applications for product

patents, which go into a black box. This box is

to be opened in 2005 to establish right of

priority before granting patent. From January 1,

1995 to October 31, 1999, 2994 product patents

have been filed for pharmaceutical products.

Meanwhile for each such patent application that

has been accepted, exclusive marketing rights

(EMR) have to be granted for a period of five

years.

The Controller of Patents examines the

applications to ascertain whether there is a

violation of the relevant provisions of Patent

Act. The government can not only fix the price

of the product covered under EMR, but also reserve the rights to grant compulsory license or

revocation of patent. Provision is made to ensure that EMRs are not granted for substances

based on Indian System of Medicines where the products are already in public domain.

7.4 The Drugs (Prices Control) Order (DPCO), 1995

The DPCO provides for ceiling prices

for medicines, the lists of which are

reviewed periodically. Over the years

substantial changes have been made

in the DPCO in terms of reduction in

the number of drugs under price

control and simplification of

application procedures. The DPCO,

1995 allows for exemption from price

control for new bulk drugs which

have not been produced elsewhere

and which are developed through

indigenous R and D.



On the recommendation of the Hathi Committee (1973), the Government of India created a

Drug Price Equalization Account (DPEA) under

the DPCO. This equalization is done on the basis

of a weighted price average determined by the

government. Any company that sells the product

at higher margins on account of cheaper sourcing

of inputs is held liable to pay up the overcharged

amount to the government.

WTO Product patent regime 2005:

From January 2005 product patent regime come

into existence replacing existing process patent

regime because of that the companies cannot

manufacture products, which have registered

patent for a period of seven years. This makes

Pharmaceutical manufacturers to invest money in

R&D and develop their own drugs and patent

them. SPL who have R&D facilities will not face

any problems and end up as jobbers to the big

market players.



Chapter 8

FINANCE DEPARTMENT

The Financial Department is responsible for budgeting, accounting, employee wages, money

distribution and financial reports. Each year the Financial Department receives an annual

budget from the CEO. This annual budget is based on the economic situation in the region as

well as the available Federal programs and initiatives. It also handles fundraising work to

attract corporate sponsors and donors.

It helps to manage members’ donations and support received from private sources. The

Financial Department consists of three full-time employees: the Financial Manager, the Chief

Accountant and the Assistant Accountant. Together they are responsible for reporting to the

CEO and are accountable for fundraising and managing the income generated from

memberships in the Company.

It deals with the financial matters of the company. It collects the revenues and makes

different payments and maintains

proper record of the financial

performance of the company’s

business to show the net result in the

form of either profit or loss. Finance

department consist of

Management Accountants

Cost Accountants

Accounting MIS Department

8.1 ACCOUNTS DEPARTMENT

The job of the department is to maintain books of accounts. There are following main

activities of accounts.

Issuance of purchase vouchers for raw material, plant and machinery and general

store items

Check payment of payroll to employees including wages, overtime, bonuses etc.

Handling of monthly tax statements.

Computerized general ledger system is working and shows the result of each transaction up to

balance sheet and income/profit and loss statement.

Processing and Recording Check/ Cash Disbursement

After a certain period of time when the date becomes matured for the liability the payment is

made by SPL. The matured date has been calculated in the aged payable report for each

Figure 8.1 Hierarchy of Accounts and Finance

Department



vendor. The mode of payment is usually per numbered check. In most cases the payment is

made by A/C payee only check. In some cases the payment may be made by cash or by

bearer check or paid in advance fully or partly

. The total process of Local Purchase has been presented briefly in below:

Figure 8.2 Purchase process



8.2 Ratings on Sanjivani Parenteral downgraded to ‘CRISIL BBB-/Stable/CRISIL A3’

CRISIL has downgraded its ratings on the bank facilities of Sanjivani Parenteral Ltd

(Sanjivani) to ‘CRISIL BBB-/Stable/CRISIL A3’

from ‘CRISIL BBB/Stable/CRISIL A3+’.

The downgrade reflects expectation of continued

pressure on Sanjivani’s financial risk profile,

particularly debt protection metrics and gearing,

because of its large working capital requirements and

its plans of strengthening its market position in the

highly competitive export and direct marketing segment.

Rs.85 Million Term Loan CRISIL BBB-/Stable (Downgraded from 'CRISIL

BBB/Stable')

Rs.400 Million Cash Credit CRISIL BBB-/Stable (Downgraded from 'CRISIL

BBB/Stable')

Rs.40 Million Proposed Long-

Term Bank Loan Facility

CRISIL BBB-/Stable (Downgraded from 'CRISIL

BBB/Stable')

Rs.40 Million Letter of Credit CRISIL A3 (Downgraded from 'CRISIL A3+')

Rs.35 Million Bank Guarantee* CRISIL A3 (Downgraded from 'CRISIL A3+')

Table 8.1 Criteria of CRISIL FINANCIAL Ranking

As on March 31, 2011, Sanjivani’s interest coverage ratio and gearing deteriorated to 1.65

times and 1.83 times respectively, from 2.29 times and 1.60 times respectively as on March

31, 2010. The company’s liquidity has weakened because of stretch in receivables cycle

resulting in increase in working capital requirements in 2010-11 (refers to financial year,

April 1 to March 31); as on March 31, 2011, debtor level was high at around 158 days.

Sanjivani’s bank line utilization is high at about 100 per cent.

Furthermore, Sanjivani’s operating margin declined to 7.4 per cent in 2010-11 from 8.6 per

cent in 2009-10, because of significant increase in employee and selling costs, driven by the

company’s strategy to strengthen its market position in the export and direct marketing

segments in order to mitigate risks associated with significant dependence on institutional

sales. The company’s profitability is expected to remain moderate over the medium term,

given the intense competition in its target business segments, where ability to profitably scale

up operations will depend on the extent of acceptance of Sanjivani’s products and its

marketing capabilities.



The ratings continue to reflect Sanjivani’s strong market position in the institutional segment

and the extensive experience of its promoters in the pharmaceutical industry. These rating

strengths are partially offset by the company’s modest profitability and debt protection

metrics and constrained liquidity.

Outlook:Stable

CRISIL believes that Sanjivani will maintain its strong market position in the institutional

segment and gradually improve its market position in its target business segments, and will

prudently manage its working capital requirements. The outlook may be revised to ‘Positive’

if Sanjivani improves its profitability, debt protection metrics, and working capital cycle.

Conversely, the outlook may be revised to ‘Negative’ in case of less-than-expected cash

accruals, no improvement in margins, inability to renew large tenders, or deterioration in

capital structure due to large, debt-funded capital expenditure.

8.3 Bankers of SPL

Axis Bank Ltd

Shamrao Vithal Co-op Bank

State Bank of India

Financial Planning Process in SPL

Figure 8.3



8.4 Capital Structure of the Company SPL

The capital structure includes Funds received from the owners of the business i.e. the

Shareholders and therefore called as

Share holders fund

Proprietore fund

Owners fund

The share holders fund are further classified into

Share Capital: Equity and Preference

Reserves and Surplus: General reserve, etc

Fictitious assets: Preliminary expenses,etc

The capital structure also includes Borrowed Funds which are further divided into

Secured Loans (Bank loans, debentures, etc)

Unsecured loans ( loans from friends and relatives)

The Result of which is

The Capital employed i.e. The total long term funds supplied by the creditors and owners of

the firm.It can be computed in 2 ways. First as mentioned above – the non-current liabilities

plus owners equity. Alternatively its is equal to net working capital plus fixed assets.

Year Authorised Issued Subscribed Called Up Paid Up

2011 7.00 5.90 5.90 5.90 5.90

2010 7.00 5.90 5.90 5.90 5.90

2009 7.00 5.90 5.90 5.90 5.90

2008 7.00 5.90 5.90 5.90 5.90

2007 7.00 5.90 5.90 5.90 5.90

2006 7.00 5.90 5.90 5.90 5.90

2005 6.00 4.85 4.85 4.85 4.85

2004 6.00 4.85 4.85 4.85 4.85

2003 6.00 5.05 5.05 5.05 4.96

2002 6.00 5.05 5.05 5.05 4.96

Table 8.2 Equity Capital Structure of SPL



Financial Turnover (Annual Results of SPL)

Particulars Mar-12

(Rs.Cr)

Mar-11

(Rs.Cr)

Mar-10

(Rs.Cr)

Gross Sales 150 144 139

Other Income 1 1 1

Total Income 151 145 140

Total Expenditure 138 134 127

PBIDT 13 12 13

Interest 8 7 5

PBDT 4 4 7

Depreciation 1 1 1

Tax 1 1 2

Deferred Tax 0 0 0

Reported Profit After Tax 3 2 5

Extra-ordinary Items 0 0 0

Adjusted Profit After Extra-ordinary item 3 2 5

EPS (Unit Curr.) 4.3 3.8 8.0

EPS (Adj) (Unit Curr.) 4.3 3.8 8.0

Calculated EPS (Unit Curr.) 4.3 3.7 8.0

Calculated EPS (Adj) (Unit Curr.) 4.3 3.7 8.0

Calculated EPS (Ann.) (Unit Curr.) 4.3 3.7 8.0

Calculated EPS (Adj) (Ann.) (Unit Curr.) 4.3 3.7 8.0

Book Value (Unit Curr.) 0.0 0.0 0.0

Dividend (%) 0.0 0.0 0.0

Equity 6 6 6

Reserve & Surplus 0.0 22.5 18.5

Face Value 10.0 10.0 10.0

Non-Promoter Holding Shares 5,010,396 5,034,501 5,042,948

Non-Promoter Holding (%) 84.95 85.36 85.50

PBIDTM(%) 8.39 8.00 8.98

PBDTM(%) 2.81 3.11 5.07

PATM(%) 1.68 1.53 3.41

Table 8.3 financial turnover of SPL



Share Holding Pattern

Particulars Mar-12 Dec-11 Sep-11

No of

Shares

(Mn)

%

Holdings

No of

Shares

(Mn)

%

Holdings

No of

Shares

(Mn)

%

Holdings

Promoter & Group

Foreign

Sub Total 0.00 0.00 0.00 0.00 0.00 0.00

Indian

Sub Total 0.89 15.05 0.87 14.69 0.86 14.66

Total ShareHolding 0.89 15.05 0.87 14.69 0.86 14.66

Non Promotors / Public Shareholding

Institution

Financial Institutions / Banks 0.00 0.00 0.00 0.00 0.00 0.00

Foreign Institutional Investors 0.00 0.00 0.00 0.00 0.00 0.00

Mutual Funds / UTI 0.00 0.00 0.00 0.00 0.00 0.00

Sub Total 0.00 0.00 0.00 0.00 0.00 0.00

Non Institution

Bodies Corporate 1.16 19.60 1.13 19.12 1.15 19.46

NRIs/Foreign

Individuals/Foreign Nationals

0.02 0.41 0.02 0.42 0.02 0.42

Individuals holding nominal

share capital in excess of Rs. 1

lakh

1.92 32.51 1.92 32.56 1.91 32.37

Individuals holding nominal

share capital up to Rs. 1 lakh

1.83 31.00 1.88 31.86 1.88 31.92

Sub Total 5.01 84.95 5.03 85.31 5.03 85.34

Shares held by Custodians and against issued Depository Receipts

ADR 0.00 0.00 0.00 0.00 0.00 0.00

GDR 0.00 0.00 0.00 0.00 0.00 0.00

Other Custodians 0.00 0.00 0.00 0.00 0.00 0.00

Total Shares 0.00 0.00 0.00 0.00 0.00 0.00

Grand Total 5.90 100.00 5.90 100.00 5.90 100.00

Table 8.4 shareholding pattern of SPL

http://124.153.80.136/Markets/Company/Fundamentals/Latest-Quarterly-Share-Holding-Pattern/Sanjivani-Paranteral-Ltd/531569



Sanjivani Parenteral reports net profit of Rs 0.01 crore in the March 2012 quarter

Sales decline 10.84% to Rs 32.97 crore

Sanjivani Parenteral reported net profit of Rs 0.01 crore in the quarter ended March 2012 as

against net loss of Rs 1.91 crore during the previous quarter ended March 2011. Sales

declined 10.84% to Rs 32.97 crore in the quarter ended March 2012 as against Rs 36.98 crore

during the previous quarter ended March 2011.

Particulars Quarter Ended Year Ended

Mar. 2012 Mar. 2011 % Var. Mar. 2012 Mar. 2011 % Var.

Sales 32.97 36.98 -11 150.25 144.10 4

OPM % 6.37 -1.11 674 7.99 7.12 12

PBDT 0.49 -1.09 LP 4.22 4.48 -6

PBT 0.26 -1.34 LP 3.27 3.53 -7

NP 0.01 -1.91 LP 2.52 2.21 14

Table 8.5 financial performance of SPL

For the unaudited full year, net profit rose 14.03% to Rs 2.52 crore in the year ended March

2012 as against Rs 2.21 crore during the previous year ended March 2011. Sales rose 4.27%

to Rs 150.25 crore in the year ended March 2012 as against Rs 144.10 crore during the

previous year ended March 2011.

Listing in Share Market

BSE 531569

NSE NA

ISIN INE860D01013

NAP/E 6.80328

Market Cap [Rs.Cr.] 17 .1395

Face Value [Rs.] 10

Book Value [Rs.] 52.42

Industry Pharmaceuticals - Indian - Formulations

Table 8.6 share market listing detail of SPL



Monthly Share Prices

Year High(Rs.) Low(Rs.) Close(Rs.) P/E High P/E Low P/E Close Mkt Cap.

(Rs. in Cr.)

May-12 39.00 27.10 28.40 10.89 6.86 7.58 16.76

Apr-12 42.30 29.00 37.00 12.02 7.47 9.88 21.83

Mar-12 34.25 25.55 31.05 10.58 5.83 8.29 18.32

Feb-12 32.35 25.00 28.65 8.73 6.42 7.65 16.90

Jan-12 27.45 23.00 26.50 7.45 5.87 7.08 15.64

Share Prices Of 2011

Dec-11 26.10 21.80 24.05 7.38 5.82 6.42 14.19

Nov-11 33.00 23.10 24.45 9.00 5.83 6.53 14.43

Oct-11 35.00 29.65 31.65 9.72 7.90 8.45 18.67

Sep-11 34.85 27.50 32.50 9.96 7.15 8.68 19.18

Aug-11 36.30 26.35 30.00 10.30 6.51 8.01 17.70

Jul-11 38.75 32.00 34.95 10.56 8.54 9.33 20.62

Jun-11 37.40 29.75 32.25 11.10 7.63 8.61 19.03

May-11 38.65 29.25 34.65 10.63 7.61 9.25 20.44

Apr-11 47.80 37.40 38.05 14.68 9.96 10.16 22.45

Mar-11 45.20 36.55 38.75 12.69 9.04 10.34 22.86

Feb-11 52.50 41.50 43.15 8.88 6.26 7.07 25.46

Jan-11 56.00 41.45 44.50 9.88 6.33 7.29 26.26

Share Prices Of 2010

Dec-10 54.00 36.75 51.35 9.07 4.90 8.42 30.30

Nov-10 65.00 45.00 51.40 11.15 6.00 8.43 30.33

Oct-10 70.90 53.85 61.05 12.37 8.29 10.01 36.02

Sep-10 63.50 44.30 58.55 10.93 7.20 9.59 34.54

Aug-10 51.00 40.00 43.60 8.99 6.23 7.14 25.72

Jul-10 50.60 42.20 44.80 8.81 6.87 7.34 26.43

Jun-10 46.90 39.50 43.50 8.04 6.09 7.13 25.67

May-10 57.70 39.80 40.70 9.87 6.38 6.67 24.01

Apr-10 63.50 48.00 56.60 11.12 7.25 9.28 33.39

Mar-10 59.35 41.50 49.60 10.80 6.24 8.13 29.26

Feb-10 62.75 29.90 59.35 13.18 5.15 11.79 35.02

Jan-10 39.15 26.80 28.75 8.21 4.96 5.71 16.96

Table 8.7 Monthly share price detail of SPL



Figure 8.4 share price fluctuation of SPL

BALANCE SHEET

(Rs. in Crores)

Particulars Mar-11 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06

SOURCES OF FUNDS :

Share Capital 5.90 5.90 5.90 5.90 5.90 5.90

Reserves Total 22.51 22.09 18.49 15.54 11.96 8.81

Total Shareholders Funds 28.41 27.99 24.39 21.44 17.86 14.71

Secured Loans 51.15 44.48 33.91 21.37 17.09 15.63

Unsecured Loans 0.72 0.36 0.44 0.00 0.00 0.00

Total Debt 51.87 44.84 34.35 21.37 17.09 15.63

Total Liabilities 80.28 72.83 58.74 42.81 34.95 30.34

APPLICATION OF FUNDS :

Gross Block 22.10 21.79 12.26 12.03 11.85 11.52

Less : Accumulated

Depreciation

6.42 5.48 4.67 4.14 3.62 3.12

Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00 0.00

Net Block 15.68 16.31 7.59 7.89 8.23 8.40

Lease Adjustment 0.00 0.00 0.00 0.00 0.00 0.00

Capital Work in Progress 0.70 0.44 11.06 5.14 4.27 4.60

Investments 0.05 0.05 0.05 0.06 0.01 0.01

Current Assets, Loans &

Advances

Inventories 17.31 16.51 11.10 14.49 11.54 13.06

Sundry Debtors 62.70 55.24 50.32 38.51 18.93 18.66



Cash and Bank 0.73 0.59 0.67 1.34 0.37 0.11

Loans and Advances 3.75 5.79 3.14 0.93 2.68 0.66

Total Current Assets 84.49 78.13 65.23 55.27 33.52 32.49

Less : Current Liabilities and

Provisions

Current Liabilities 16.90 19.52 21.65 21.79 7.64 12.93

Provisions 1.16 0.00 2.11 2.30 2.13 0.63

Total Current Liabilities 18.06 19.52 23.76 24.09 9.77 13.56

Net Current Assets 66.43 58.61 41.47 31.18 23.75 18.93

Miscellaneous Expenses not

written off

0.00 0.00 0.00 0.00 0.00 0.00

Deferred Tax Assets 0.00 0.00 0.00 0.04 0.00 0.00

Deferred Tax Liability 2.58 2.58 1.43 1.50 1.31 1.60

Net Deferred Tax -2.58 -2.58 -1.43 -1.46 -1.31 -1.60

Total Assets 80.28 72.83 58.74 42.81 34.95 30.34

Contingent Liabilities 0.09 0.09 0.03 0.03 0.04 0.02

Table 8.8 Last five year balance sheet of SPL

Profit & Loss

(Rs. in Crores)

Particulars Mar-11 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06

INCOME :

Sales Turnover 145.20 140.39 103.36 91.80 69.44 54.36

Excise Duty 1.10 1.22 0.00 0.02 0.32 0.38

Net Sales 144.10 139.17 103.36 91.78 69.12 53.98

Other Income 1.26 0.77 0.52 0.14 0.00 0.11

Stock Adjustments 0.14 -0.05 -0.09 0.19 0.02 0.12

Total Income 145.50 139.89 103.79 92.11 69.14 54.21

EXPENDITURE :

Raw Materials 126.69 120.38 91.40 80.97 59.94 47.69

Power & Fuel Cost 0.74 0.73 0.48 0.36 0.38 0.47

Employee Cost 1.52 1.06 0.73 0.71 0.55 0.35

Other Manufacturing

Expenses

0.85 0.76 0.49 0.25 0.34 0.40

Selling and Administration

Expenses

4.14 4.05 1.94 1.58 1.17 0.85

Miscellaneous Expenses 0.03 0.41 0.04 0.09 0.14 0.08

Less: Pre-operative Expenses

Capitalised

0.00 0.00 0.00 0.00 0.00 0.00

Total Expenditure 133.97 127.39 95.08 83.96 62.52 49.84

Operating Profit 11.53 12.50 8.71 8.15 6.62 4.37



Interest 7.05 5.45 3.60 2.79 1.72 1.35

Gross Profit 4.48 7.05 5.11 5.36 4.90 3.02

Depreciation 0.95 0.81 0.53 0.52 0.50 0.51

Profit Before Tax 3.53 6.24 4.58 4.84 4.40 2.51

Tax 1.32 1.50 1.63 1.10 1.53 0.19

Fringe Benefit tax 0.00 0.00 0.02 0.01 0.01 0.01

Deferred Tax 0.00 1.14 -0.02 0.00 0.00 0.00

Reported Net Profit 2.21 3.60 2.95 3.73 2.86 2.31

Extraordinary Items 0.00 0.00 -0.02 0.00 0.00 0.00

Adjusted Net Profit 2.21 3.60 2.97 3.73 2.86 2.31

Adjst. below Net Profit 0.00 0.00 0.00 -0.14 0.29 -0.60

P & L Balance brought

forward

16.76 13.16 10.21 6.62 3.47 1.76

Statutory Appropriations 0.00 0.00 0.00 0.00 0.00 0.00

Appropriations 0.00 0.00 0.00 0.00 0.00 0.00

P & L Balance carried down 18.97 16.76 13.16 10.21 6.62 3.47

Dividend 0.00 0.00 0.00 0.00 0.00 0.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00

Equity Dividend % 0.00 0.00 0.00 0.00 0.00 0.00

Earnings Per Share-Unit

Curr

3.75 6.10 5.00 6.32 4.85 3.92

Earnings Per Share(Adj)-

Unit Curr

3.75 6.10 5.00 6.32 4.85 3.92

Book Value-Unit Curr 48.15 47.44 41.34 36.34 30.27 24.93

Table 8.9 Last five year profit & loss account of SPL

Key Ratios

Years Mar-11 Mar-10 Mar-09 Mar-08 Mar-07

Debt-Equity Ratio 1.7 1.5 1.2 1.0 1.0

Long Term Debt-Equity Ratio 0.3 0.3 0.2 0.0 0.0

Current Ratio 1.3 1.3 1.3 1.2 1.1

Fixed Assets 6.6 8.3 8.5 7.7 5.9

Inventory 8.6 10.2 8.1 7.1 5.7

Debtors 2.5 2.7 2.3 3.2 3.7

Interest Cover Ratio 1.5 2.1 2.3 2.7 3.6

PBIDTM (%) 7.9 8.9 8.4 8.9 9.5

PBITM (%) 7.3 8.3 7.9 8.3 8.8

PBDTM (%) 3.1 5.0 4.9 5.8 7.1

CPM (%) 2.2 3.1 3.4 4.6 4.8

APATM (%) 1.5 2.6 2.9 4.1 4.1



ROCE (%) 13.8 17.8 16.1 19.6 18.8

RONW (%) 7.8 13.8 12.9 19.0 17.6

PE 10.3 8.1 2.3 3.6 6.1

EBIDTA 11.5 12.5 8.7 8.2 6.6

DivYield 0.0 0.0 0.0 0.0 0.0

PBV 0.8 1.1 0.3 0.6 1.0

EPS 3.8 6.1 5.0 6.3 4.9

Table 8.10 Key Ratios OF SPL

Graph 8.5 ratio representation of SPL

Cash Flow

Particulars Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007

Profit Before Tax 35.30 62.43 45.78 48.35 44.01

Adjustment 70.97 57.35 37.62 31.73 21.15

Changes In working Capital -88.44 -151.01 -107.78 -66.28 -59.94

Cash Flow after changes in

Working Capital

17.83 -31.23 -24.38 13.80 5.22

Cash Flow from Operating

Activities

-1.69 -67.36 -42.78 4.44 4.18

Cash Flow from Investing

Activities

-5.67 10.94 -61.74 -10.95 -0.06

Cash Flow from Financing

Activities

8.76 55.60 97.81 16.23 -1.53

Net Cash Inflow / Outflow 1.39 -0.82 -6.71 9.73 2.59

Opening Cash & Cash

Equivalents

5.86 6.68 13.39 3.66 1.07

Cash & Cash Equivalent on

Amalgamation / Take over /

Merger

0 0 0 0 0

0

2

4

6

8

2007 2008 2009 2010 2011

Current Ratio

Interest Cover Ratio

EPS

Debt-equity Ratio



Cash & Cash Equivalent of

Subsidiaries under

liquidations

0 0 0 0 0

Translation adjustment on

reserves / op cash balalces

frgn subsidiaries

0 0 0 0 0

Effect of Foreign Exchange

Fluctuations

0 0 0 0 0

Closing Cash & Cash

Equivalent

7.25 5.86 6.68 13.39 3.66

Table 8.11 Last Five Year Cash Flow of SPL

Graph 8.6 Graph of Cash flow of SPL

Sanjivani Parenteral Ltd. The manufacturer of therapeutic products comprising antibiotic,

anti-emetic, anesthetic, analgesic, anti-malarial, psychotropic, sedative, steroid,

cardiovascular, and cold therapy products and more; is trading at Rs 17Cr Mar Cap.

And look at the peers.

Companies Sales

(In Rs mn)#

Market Cap. (In Rs mn)*

Price (In Rs)*

Plathico Pharmaceutical Ltd. 4741 12,753.40 374

Amrutanjan Health Care Ltd 898.8 2325.6 776

Bliss GVS Pharma Ltd 1688.8 2118.7 20

Zenotech Laboratories Ltd 66 1568.6 45

Sharon Bio-Medicine Ltd 4965 2756 260

Sanjivani Paranteral Ltd 1399.42 170 29

Table 8.12 Competitors Sales

0 20 40 60 80

2007

2008

2009

2010

2011

Closing Cash

PBT



# - Sales in year 2009-10

* - Date 26-08-2011

Granted company is concentrated on institutional sales and sells to state government but so huge a

discount?

The promoters (only 14.64 % ) in company have given the following performance.

Sanjivani 2011-10 2010-09 2009-08 2008-07

sales 1452.7 1399.42 1038.76 921.6

PAT 27.3 47.43 29.26 57.5

*all in Rs. million

The recently woken up management has `strategized` that Sales Force is what they need and hiring

aggressively, doubling the sales expenditure to Rs 4.2 Cr.

8.5 Company Financial Analysis

According to the individual - Audited financial statement for the Year of 2011, total net

operating revenues increased with 3.90%, from INR 139.9 tens of millions to INR 145.36

tens of millions. Operating result decreased from INR 11.73 tens of millions to INR 11.53

tens of millions which means -1.71% changes. The results of the period decreased -38.61%

reaching INR 2.21 tens of millions at the end of the period against INR 3.6 tens of millions

last year. Return on equity (Net income/Total equity) went from 12.86% to 7.78%, the Return

On Asset (Net income / Total Asset) went from 4.77% to 2.75% and the Net Profit Margin

(Net Income/Net Sales) went from 2.57% to 1.52% when compared to the same period of last

year. The Debt to Equity Ratio (Total Liabilities/Equity) was 282.58% compared to 269.42%

of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 4.00 to

5.00 when compared to the previous year.

Sanjivani Parenteral Ltd. reported unaudited earnings results for the third quarter and nine

months ended December 31, 2011. For the quarter, the company reported net sales of INR

381.478 million compared to INR 348.533 million a year ago. Profit from operation before

other income, interest & exceptional items was INR 31.189 million compared to INR 39.1

million a year ago. Net profit was INR 7.64 million or INR 1.30 per basic and diluted share,

compared to net profit of INR 16.823 million or INR 2.85 per basic and diluted share, a year

ago. For the year to date, the company reported net sales of INR 1,172.741 million compared

to INR 1,071.123 million a year ago. Profit from operation before other income, interest &

exceptional items was INR 91.799 million compared to INR 99.732 million a year ago. Net

profit was INR 25.087 million or INR 4.25 per basic and diluted share, compared to net profit

of INR 41.233 million or INR 6.99 per basic and diluted share, a year ago.



Sanjivani Parenteral Ltd. announced unaudited earnings results for the fourth quarter and full

year ended March 31, 2012. For the quarter, the company reported net sales were INR

329.75 million against INR 369.84 million a year ago. Profit from ordinary activities before

tax was INR 2.62 million against loss of INR 13.44 million a year ago. Profit was INR 0.122

million against loss of INR 19.13 million a year ago. Basic and diluted earnings per share

before and after extraordinary items were INR 0.02 against loss per share of INR 3.24 a year

ago. For the year, the company reported net sales were INR 1,502.49 million against INR

1,440.96 million a year ago. Profit from ordinary activities before tax was INR 32.71 million

against INR 35.3 million a year ago. Profit was INR 25.21 million against INR 22.1 million a

year ago. Basic and diluted earnings per share before and after extraordinary items were INR

4.27 against INR 3.75 a year ago.



Chapter 9

MIS OR IT DEPARTMENT

Information is the basis for every decision taken in an organization. The efficiency of

management depends upon the availability of regular and relevant information. Thus it is

essential that an effective and efficient reporting system be developed as part of accounting

system. the main object of management information is to obtain the required about the

operating results of an organization regularly in order to use them for future planning and

control.

The old techniques like intuition, rule of thumb, personal whim and prestige, etc. are now

considered useless in the process of decision taking.

Modern management is constantly on look out for such

quantitative and such information, which can help in

analyzing the proposed alternative actions and

choosing one as its decision. thus, modern

management functions are information-

oriented more popularly known as

“management by information”. and the system

through which information is communicated to

the management is known as “management

information system (mis)”. the management needs full

information before taking any decision. good decisions can minimize

costs and optimize results. Management information system can be helpful to the

management in undertaking management decisions smoothly and effectively.

The management information system was started in SPL company in the year 1994. In the

initial stages the computers were not used for the

system it was manually done. The system was being

computerized in the year 1997 with just use of 2

computers. In 2000 all the computers in the system

were upgraded with the better technology. at

present it has a base of about 20 computers and 5

servers.computers and 5 servers with the best

technology available in the market.

At present the company has about 20 computers

connected with the help of large area network (LAN). It has 5 servers connected to this LAN.

It also has various other communication hardware’s like fax machines, etc. company uses the



custom made software called ‘trio’. This software has been developed by the company with

the help of various engineers, which is just used within the organization. This software helps

the organization in the best possible manner as it is being developed as per the workers needs.

The main advantages of this software are as follows:

It helps in invoice printing.

It helps in inventory control.

It is also equipped with accounting procedures.

It follows the way that the worker wants to make follow.

It helps to make the comparison charts, which very less programmes have.

The main source of the

data for preparing the

reports is the servers that

are connected to all the

computers in which the

data is being feed. All the

data is being stored in the

servers hence it is easier

and faster to find the data

as and when required.

All the computers

including the servers are being gives the access to internet. There is no extranet present in the

organization. Internet (e-mail) is used for sending the information to its customers, suppliers,

its manufacturing plant, etc. majority of times reports are being sent to the board through

internet. this is the best advantages’ it saves time and money of the organization also the

decisions can be taken very fast.

There are various processes in the organization, which are being computerized such as –

accounting, research and development, stock and inventory control, quality control, data

analysis, etc. about majority of the processes are being computerized in the organization.

Thus it helps in the better performance of the organization.

The company also maintains a database of all the information on the basic information of the

organization as well as the solution to all the problems that are being faced by the company

since last 7 years. This one of the best thing that can be found in this organization.

The management information system helps the organization in number of ways:



Speed: it is the main objective of using the computerized MIS. The reports that are

being required to be prepared can be prepared within no time.

Accuracy: it is also one of the important

advantages of using the system. the reports that are

being prepared are very much accurate providing

the information input is correct.

Storage: MIS system helps in storing the

information that can be used in the future. our

organization being having computerized mis

requires very much less space for storing the

information.

MIS reports: with the help of MIS it is easy to prepare reports required by the

management such as – comparative statements, fund flow statements, ratio statements,

stock analysis, sales and production analysis, etc.

Decision making: mis reports help in taking

faster decisions as the reports and information is

easily available which helps the organization

avoiding losses due to faulty decisions.

No repetition: mis system helps saving time of

the employees because all the statistical data

input at one place automatically gets at all the places hence avoiding the worker to do

tedious work.

The company does not use any readily available software in the market. Separate software is

being developed with the help of programmers according to the requirement of the

organization. Different type of software’s is being used for the different activities as follows:

APS AND FAS : financial accounting

MIS : stores and purchase

TOTAL QC : quality control

EXIIM : export and import

PAYROLL : personnel

Different type of special software’s is being used to cater different type of needs. This special

type of software helps to get the best possible solution for the related problems. As all the

software’s are being developed as per the needs of the organization, they get the better

control over the programs. All the software’s are made so that they can be easily integrated

with each other. Antivirus software from Norton and IBM is currently installed for security

reasons.



Chapter 10

IDENTIFICATION OF PROBLEMS OR ISSUES

10.1 Marketing Problems of SPL

After analyzing its present market expansion strategies, the following problems have been

found in it:

1. It seems that SPL pursuing “prescription for profit” strategy for market penetration. It is

partially good, but may not be perfect as the

completion is very hard. There are some other

parties who have the scope and ability to act as

“opinion leader” and to motivate the buyer.

These potential “opinion leaders” are remaining

unexploited. SPL has enough resources to let them

add value to the company.

2. I didn’t find SPL adopting any strategy to create

brand loyalty. But client is more profitable than customer in terms of both transaction as well

as positive word-of-mouth communication. He himself can be an opinion leader.

3. Holding the heaviest product portfolio should not be the ultimate goal at all. Emphasis

must be given on how early a new product can be launched in the market place than the

competitor.

4. At present, SPL gets only 20% raw materials from its rabale plant and the rest are to be

imported. It increases product cost.

5. Market should not be segmented only on the therapeutic drug basis.

6. Pharmaceutical value chain is a bit different from traditional value as it includes an

additional step in the start “Discovery”. This step is a vital strength of any pharmaceutical

company. SPL lacks this component in its value chain.

10.2 HR Department Problems of SPL

During my stay, I have found following main problems which I discussed with HR

Manager.

Serious shortage of employees in some production departments and sections.



In Sanjivani, interviews are not conducted for lower level employees.

There are no formal training programs for new incumbent.

Strict beurucratic style of management.

Short term planning for human resource.

Forecasting of human resource need is based on subjective judgment.

Orientation & training period of new incumbent are very short and new

employee has to learn everything from his mistakes.

Promotion policy of Sanjivani is not clear.

There is job dissatisfaction and very low motivation on the staff

10.3 Production Department Problems of SPL

In production department, most critical part is filling of BMR. Because it requires

great attention and accuracy also. But as I seen generally officers are so much busy

with their work (instructing to operators and workers).

Multitasking continuously affects work.

Lower level workers are not properly divided into different departments.

Few peoples are only are machine operators their absence effects production flow.

In night shift only two chemists handle the work.

10.4 Finance Department Problems of SPL

Working on the financing procedure of SPL was an interesting issue. The following problems

are made on the basis of research work:

Yearly increment of salary is one of the major issues of labor rate increasing.

Sanjivani provides salary increment every year. Therefore, the cost of direct labor is

increased.

Time consuming decision making process.

Lack of asset management and debt.

Minimum profit in comparison with others.

The long-term creditors are not interested in company's ability to repay

Payments are not coming properly.

SPL heavily depend on local financial resources and are frequently the victims of

exploitation by the money lenders.

Delayed payment of dues to them or locking up of their capital in unsold stocks.

10.5 Regulatory Department Problems of SPL

Inadequate regulatory expertise and testing facilities to implement uniform standards



Need for greater thrust on institutional support to SPL to enable speedy

implementation of Schedule M up gradation and standardization of drug quality

Proliferation of spurious and substandard drugs in the Indian market

Dual licensing mechanism acts as a deterrent to uniform implementation of regulatory

procedures

Lack of transparency in licensing procedures.

Inadequate adoption of good manufacturing practices to meet global regulatory

standards.

10.6 IT Department Problems of SPL

Lack of adequate expertise, training for technological up gradation.

Limited adoption of information technology techniques in production and processes.

Shortage of IT staff.

SPL have not their own logistics software.



Chapter 11

Solutions

11.1Financial solutions

SPL tries to ensure better quality and better management. The staffs demonstrate their

knowledge and experience with sheer professionalism. Despite these efforts some

shortcomings may remain and there is always an opportunity to overcome those. Throughout

my study I have found that they have some opportunity that they can take being taking proper

steps. On the basis of my understanding and observation I am proposing the following

solutions of problems to the Sanjivani Pharma:

Factory Overhead, Selling and

Administrative overhead:

Factory overhead, selling and administrative

overhead is increasing year to year. The

increasing trend is totally straight. Company

should control the overhead properly. We know

that company has no direct control over raw

material prices. In the increasing raw material

every company will be sufferer but company can

properly control the overhead. The control of

overhead is totally under the decision of the

management. Management should proper analysis of the overhead cost on the basis of this

analysis they should prepare budget. Company should not prepare the budget on the basis of

the requirement of the department demand. Cost manager should have proper knowledge

about the all departments’ functions and activities properly.

Petty Cash Expenses:

Sanjivani distributes their goods through stockiests. They gets commission for their activities.

Stockiest takes their expenses from daily cash collection for expenses of distribution.

With the working with the petty cash sections I have shown that depot of the stockiest

overstate their expenses. For these activities the overhead cost is increasing day by day.

Proposed Policy: Sanjivani Pharma should make budget for the daily expenses. Through

proper budgetary control and research on that will minimize the expenses. SPL should set out

daily allowance of the depot of stockiest on the basis of the proper study and observation.



Management should emphasis to reduce the differences between Average collection period

and average payment period. It wills results liquidity of the company.

Management should try to boost up its quick and current rations & the earnings per share.

11.2 Production solutions

As I discussed that BMR is not accurate, So I suggest that company has to use on line

BMR program, which has following benefits:

Increase accuracy.

System properly followed.

Save time of officers.

Easy to preserve for (2 to 3 years) long time.

Easy to retrieve data from any BMR.

All statistical calculation became automatic.

Also help to planning activities of different areas.

In my project duration, I observe so many waste or misuse of stationeries; employees

blindly print material which they want.

11.3 Marketing solutions

Sales agents are expected to market themselves and their brand in a way that is convincing to

physicians in order to gain the sale. For this reason, agents' attention also extends to nurses

and administrative staff who can assist with scheduling and physician communication. To get

your foot in the door and win over potential clients, use simple yet believable marketing

techniques.

Meal Meetings

Hosting a dinner meeting for physicians and nurses to give information about your

products is a convincing way to market. Organize a catered dinner meeting at a local

restaurant’s separate dining room, and give an informational presentation. Make use

of this time by providing plenty of information in an organized folder or notebook that

can be given to attendees. This is an opportune time to provide samples for physicians

to take back to their offices or schedule meetings to discuss their needs.



Informative Handouts

Prepare information packets with detailed information regarding your product and its

uses. The documents you present should be clear and professional. Each packet

should be consistent and professionally produced to represent a professional image of

your brand. Have enough materials handy for nurses and unconfirmed arrivals to your

meetings and appointments.

Promotional Items

Get promotional items such as pedometers, stress balls and pill boxes that have your

logo on them. Hand these out as you encounter potential clients and to accompany

your sales packets. Pharmaceutical promotional supply company Pharma-Insight, Inc.

specializes in medical-related gifts and promotional items that can be used to market

your brand. The company focuses on handy products that have health care staff in

mind including pill splitters, medicine measurers and thermometers.

Fairs, Expos and Conferences

Attend health related fairs, expos and conferences. These events are frequented by

medical professionals, as the hosts of these events, exhibitors and attendees.

Coordinate with event producers to secure a spot to present a specialty workshop or

host after-hours events for targeted physicians at a local restaurant or private hotel

dining area. If the conference is at a resort property, book a suite where you can host

an information reception or networking mixer in your room to entice potential clients

about your brand. This will build rapport and brand recognition.

11.4 Human resources solutions

The belief “Great People Create Great Organizations” has to be at the core of the

Company's approach to its people.

Their employees are most important assets and source of competitive advantage. Company

success depends entirely on the strength of talent pool which they have to build by fostering

an environment and continually investing in them to enable them to deliver superior

performance. Human Resources strategy is aimed at talent acquisition, development,

motivation and retention.

SPL has to focus on following steps:

Hiring People: Hiring right is the first step, often by tapping into the networks of existing

members.



Energizing Existing People: Engaging and energizing the existing work, building a pipeline

for the future and creating an exciting work place.

Reviewed Policies: The focus was to make the policies employees friendly keeping in view

employees specific needs. The HR policies are being reviewed and benchmarked with world

class organizations.

Accountability: Team Leaders review the results and act on the opportunities identified to

improve engagement. Everyone responsible for own task.

Employees Relations: A healthy Employee Relations environment was maintained across

the organization in line with the Company's business goals and mission.

11.5 Regulatory solutions

SPL has to adopt prudent risk management measures and mechanism to mitigate

environmental, operational and business risks.

Price Control:

Risk: - The domestic market is subject to price control under Drug Price Control Order

(DPCO), 1995. In the event Government reduces the prices of Company's products under

DPCO or introduces price control on products currently not subject to such control, the

profits margins could be significantly affected.

Concern: - The Company has to manage its product portfolio so as to minimize the product

weightage of drugs under price control. Prudent procurement strategies and forecasting

systems will help the Company to sustain its profitability.

Intellectual Property Right (IPR) Regime:

Risk: - Patent laws in respect of pharmaceutical product have been changes effective 1st

January, 2005. This would mean that pharmaceutical product patented after1st January, 1995

can no longer be copied through process re-engineering. This has narrowed the choice of new

product which the company can introduce in the market. Indian market being price sensitive

is less likely to see significant penetration of patented molecules.

Concern: - Generic versions of out-of-patented life cycle.



Chapter 12

Recommendations

12.1 NEW CATEGORY OPINION LEADER

Doctors are the only opinion leader in SPL’s present strategy. It may be partially good, but

cannot be perfect as the completion becomes more intense day by day. There are some other

parties who have the scope and ability to act as “opinion leader” and to motivate the buyer.

These potential “opinion leaders” are remaining unexploited. SPL has enough resources to let

them add value to the company.

Hereby I am proposing a hypothetical model to correct this strategy-

In this model, Retailers have

been selected as new opinion

leader, besides the doctors &

physicians.

In return, they will enjoy

above average profit margin

by selling SANJIVANI product.

12.2 KEEP PACE WITH THE RACE

Today’s world is changing very rapidly, in every sphere. Therefore, updating production

plant alone is not enough to cope with the new environment. SPL has to have a keen eye if

there is any change in HR development, transport, information technology, consumer relation

management, medical science and so on.

12.3 SEGMENT THE CURRENT MARKET SEGMENT

SPL is in need of more segmentation tools in an ongoing effort to establish close and

sustainable relationships with customers.



12.4 CUSTOMER ONCE, CLIENT FOR EVER

Client is more profitable than customer in terms of both transaction as well as positive word-

of-mouth communication. He himself can be an opinion leader.

So, I am suggesting to adopt some programs that will let its customers be transformed into

clients. The following model would better describe this concept:

SPL has a strong brand image

in pharmaceutical industry. It

will facilitate this strategy.

I am citing some instances

here which may be useful for

this strategy:

a. Use of penem in ICU.

b. Health awareness program

in rural area.

c. Modernization of

educational institute or public

hospital etc.

12.5 INTEGRATE GREATLY

SPL imports 80% raw materials of its total requirements. This is an weakness if it wants to

consistently expand its market. So it require either more API plants or increase in present

production capacity.

11.6 DISCOVER THE UNDISCOVERED

Pharmaceutical value chain is a bit different from traditional value as it includes an additional

step “Discovery”. in the start This step is a vital strength of any pharmaceutical company.

SPL lacks this component in its value chain.



Chapter 13

Learning from IP

Working at SPL has provided me with an invaluable experience of how the Production

matters are run and solved. I had chosen to go into this field because of the interest I have in

operation.

From the entire above project I have gained a lot of practical experience of the work. I saw

how work is done practically in organizations. I saw practical application of my theoretical

knowledge. It was a great learning experience, but I observed something which I feel not a

good practice. Basic pay of line workers disappointed me the most.

There are many things that are still in books and remain in books. I think, organizations, in

the process of reducing costs and competing globally, should not forget basic ethics, which

are the essence of a good organization.

During my stay in SPL, I have analysed their existing human recourse system and seen that

how they are applying the Recruitment & Selection process (from job analysis to selection of

employees) and I have seen that company recruit all those persons who are eligible to his

criteria whether they are internal or external. It was also observed that layoff, termination,

demotion and retirement polices are not clear as a result the moral of key employees were

found at low level.

Apply knowledge learned in the classroom. Again, there’s a big difference between

learning about strategies and tactics and actually applying them. Interning for an organization

helps me learn how their classroom knowledge applies to real situations and reinforces

concepts taught in classes.

Gain valuable work experience. In most fields, no longer can a college graduate land an

entry-level job with merely a bachelor’s degree and no prior work experience. Internships

help me to get this real-world experience while still in college. Internship programs are a

great way to generate more work samples for us professional portfolio and give us

accomplishment stories for our resume and online profiles.

Develop and build upon skills. Learning new skills in an internship will help me in future

employment opportunities and might give me a leg up on competition in future application

processes.



Chapter 14 Reference Section

Appendix 1 BIBLIOGRAPHY

JOURNALS

Dun & Bradstreet. 2007. Report on Emerging Pharmaceutical SMEs in India

Pradhan, JP. 2007. New Policy Regime and Small Pharmaceutical Firms in India.

ISID Working Paper

Pradhan, JP. 2006. Global Competitiveness of the Indian Pharmaceutical Industry

(Accessed at website: http://mpra.ub.uni-muenchen.de/12340/). MPRA Paper No.

12340. Posted on December 23, 2008.

Sahu, PP. 2006. Adoption of Improved Technology in India’s Small Scale Industries.

ISID Working Paper

Planning Commission of India. 2006. ‘Report of the Working Group on Drugs and

Pharmaceuticals: Eleventh Plan’.

Annual Reports of Sanjivani Parenteral Ltd.

BOOKS

Prof. Krishan Murthi. (2008). A Handbook of Employees Relations and Labour Laws

in India. (1st ed.). Mumbai, India: NAD International Press.

David A. Decenzo & Stephen P. Robbins (2004). Fundamentals Of Human Resource

Management. (8th

ed.)

Marketing research By N.K Malhotra

financial management - I.M. Panday

Websites:

http://www.sanjivani.co.in

www.pharmainfo.net

http://biotechindia.wordpress.com/2008/02/22/an-overview-of-the-indian-

pharmaceutical-industry/

http://ezinearticles.com/?Impact-of-Product-Patent-on-FDI-in-Indian-Pharmaceutical-

Industry&id=89594)

http://www.rediff.com/money/2004/aug/27pharma.htm

PERSONS

Ashwin khemka, Prashant Parab , Pramod Singh, Pramod Sharma , Hitesh

Khona,Mahendra Kalwankar , Priya Sukhdeve, Aakash Patil , Sachin Shinde etc…..

http://www.dsir.gov.in/reports/mitcon/chap2.pdf

http://mpra.ub.uni-muenchen.de/12340/

http://planningcommission.nic.in/

http://www.sanjivani.co.in/

http://www.pharmainfo.net/

http://biotechindia.wordpress.com/2008/02/22/an-overview-of-the-indian-pharmaceutical-industry/

http://biotechindia.wordpress.com/2008/02/22/an-overview-of-the-indian-pharmaceutical-industry/

http://ezinearticles.com/?Impact-of-Product-Patent-on-FDI-in-Indian-Pharmaceutical-Industry&id=89594

http://ezinearticles.com/?Impact-of-Product-Patent-on-FDI-in-Indian-Pharmaceutical-Industry&id=89594

http://www.rediff.com/money/2004/aug/27pharma.htm



Appendix 2 QUESTIONNAIRE

Name: ……………………………………………………………

Name of shop: …………………………………………………………..

Contact no. : …………………………………………………………..

1. Which drugs do you have for a ICU? (Give the name of 3 main drugs)

1……………………………………………….

2……………………………………………….

3………………………………………………

2. Do you have Penem and Prazosan?

Yes No

3. Which brands are available in your shop and also mention the price of drug?

Meropenem Rs.

1……………………………………… ( )

2……………………………………… ( )

3……………………………………… ( )

4……………………………………… ( )

Cefrobactum Rs.

1……………………………………… ( )

2……………………………………… ( )

3……………………………………… ( )

4……………………………………… ( )



4. Which doctors are prescribing these medicines? (Write name with specialization area of

doctor)

Name Specialization

1. Dr……………………………………….. ( )

2. Dr………………………………………… ( )

3. Dr……………………………………….. ( )

4. Dr………………………………………….. ( )

5. Dr…………………………………………. ( . )

5. Which drug is selling mostly?

6. Give reasons for your answer.

1……………………………………………....

2……………………………………………….

7. What is present situation of Dr. Reddy’s products?

Very good Good Above avg.

Average Below avg. Bad

8. What are the reasons for this situation?

1……………………………………………………

2………………………………………………

9. Any opinions for company to raise the product’s market share.

1……………………………………………………

2………………………………………………

3……………………………………………………

4……………………………………………..



Appendix 3 APPOINTMENT LETTER



Appendix 4 COMPANY CERTIFICATE



List of Abbreviations

AC / DC ASSISTANT COMMISSIONER OR DEPUTY COMMISSIONER

ANDAS ABBREVIATED NEW DRUG APPLICATION

API ACTIVE PHARMACEUTICALS INGREDIENTS

APS ADMINISTRATIVE POLICY STATEMENTS

BM BRANCH MANAGER

BMR BATCH MANUFACTURING RECORD

CAGR COMPOUND ANNUAL GROWTH RATE

CNS CENTRAL NERVOUS SYSTEM

CVS CARDIOVASCULAR SYSTEM

DHS DRY HEAT STERILIZATION

DMFS DRUG MASTER FILES

DTC DIRECT-TO-USERS

DTP DIRECT-TO-PHYSICIAN

EMR EXCLUSIVE MARKETING RIGHTS

FAS FINANCE PROCEDURAL STATEMENTS

FO FILLING OPERATION

GATT GENERAL AGREEMENT ON TRADE AND TARIFF

GMP GOOD MANUFACTURING PRACTICES

ICU INTENSIVE CARE UNIT

ILTC INTERMEDIATE AND LONG-TERM CARE

IPR INTELLECTUAL PROPERTY RIGHTS

LAL LIMULUS AMEBOCYTE LYSATE

MMS MASTER IN MANAGEMENT STUDIES

NGOS, NON-GOVERNMENTAL ORGANIZATION

NLT NOT LESS THAN

NMT NOT MORE THAN

NPPA NATIONAL PHARMACEUTICAL PRICING AUTHORITY

OTC OVER THE COUNTER

PATM PROFIT AFTER TAX MARGIN

PBIDTM PROFIT BEFORE INTEREST DEPRECIATION AND TAX MARGIN

PTR PRICE TO RETAILERS

PTS PRICE TO STOCKIEST

RFC ROLLING FORECAST

SPL SANJIVANI PARENTERAL LTD.

UN UNITED NATION

UTL UNIMED TECHNOLOGIES LTD

WHO WORLD HEALTH ORG.

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