Term Paper on Square Pharma Ltd

7/25/2019 Term Paper on Square Pharma Ltd.

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Background

Square Pharmaceuticals Ltd

(http://www.assignmentpoint.com/business/organizational-behavior/internship-report-

square-pharmaceuticals-ltd.html). (SPL), the pharmaceutical giant in the country, is a

trusted name in the industry of manufacturing quality medicines for more than four

decade.

SQUAREtoday symbolizes a name a state of mind. From the inception in 1958, it has

today burgeoned into one of the top line conglomerates in Bangladesh. SQUARE

Pharmaceuticals (http://www.assignmentpoint.com/science/pharmacy/assignment-on-pharmaceuticals-sector-of-bangladesh.html) Ltd., the flagship company, is holding the

strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and

is now on its way to becoming a high performance global player.

SPL was

Global PharmaSupplier

Over 135000 product line including.

Orphans, Unlicensed, Specials, Onco

Report on Square Pharmaceuticals Ltd
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FIRST to manufacture and market Metronidazole, Ampicillin and Cotrimoxazole after the

expiry of patents.

FIRST to export antibiotics and other ethical drugs overseas.

FIRST to develop sustained release technology locally.

FIRST to achieve an all time industry high record sales turnover of US$ 25 million.

FIRST to locally produce high tech Metered dose Inhalation (MDI) formulations.

FIRST to locally produce diclofenac sodium in the chemical division.

In addition to these FIRSTs, SQUARE Pharmaceuticals Limited (SPL) was always ahead

in introducing new products in the market.

1.1 Profile of Square Pharmaceuticals Ltd.Corporate Headquarters : SQUARE CENTRE

48, Mohakhali Commercial Area

Dhaka 1212, Bangladesh

Factory : Shalgaria, PabnaTown, Pabna

Established : 1958

Constitution : Public Limited Company

Chairman : Mr. Samson H. Chowdhury

Managing Director : Mr. Tapan Chowdhury

Details of Business : Pharmaceutical Products/ Bulk Chemicals/ AgroVet

Products

Authorized Capital : Tk. 1000 million

Paid-up Capital : Tk. 496.8 million

No. of Employees : 2703

ProductRange : Pharma 91 products in 185 dosage forms


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Chemical Division 7 products

AgroVet Division 7 products

Name of the Banker : Janata Bank, 1, Dilkusha, Dhaka

CitiBank N.A., 122-124, Motijheel, Dhaka

Standard Chartered Bank, 18-20, Motijheel, Dhaka

Credit Agricole Indosuez, 47, Motijheel, Dhaka

Bank Asia Ltd., 113-116,Tejgaon, Dhaka

Manufacturing Units : 1. Pharmaceutical Division

2. AgroVet Division

3. Chemical Division

Square Pharmaceuticals Ltd. (SPL), the pharmaceutical giant in the country, is a trusted

name in the industry of manufacturing quality medicines for more than four decade.

With a capital of Tk. 55,000, a floor space of 3000 sft, and a team of 12 persons, SPL

made its humble debut as a partnership firm in 1958.

Within a span of only six years, under the farsighted vision of the management(http://www.assignmentpoint.com/business/management), and the dedicated efforts of

the company, its turnover reached the mark of Taka one million. With the growth of

turnover came the increase in number of employees, which in 1964stood to 50. At this

point of time the partnership firm was transformed into Private Limited Company. In

1964, PLs Authorized Capital was Tk. 5,00,000 and the Paid up Capital was 4,00,000.

During the mid-seventies (1975) SPL entered into a technical collaboration agreement

with Janssen Pharmaceuticals, Belgium, which is a subsidiary of Johnson and Johnson

International, USA. Since its inception SPL practices Good Manufacturing Practices

(GMP), as recommended by the World Health Organization (WHO).

Another technical collaboration came under way, this time with F Hoffmann-La Roche

Ltd., Switzerland, in 1982. But the fruits of this agreement could not be reaped on the

account of the Drug Ordinance of 1982. Nevertheless, SPLs growth was not being
http://www.assignmentpoint.com/business/management


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stunted. In 1982, turnover reached over Tk. 240 million, and the payroll increased 400

heads, and by 1988 SPLs turnover exceeded half a billion taka., and the number of

employees to 750.

A new factory built in 1987, with all the modern machinery, extensive development of the

domestic market, and infiltration into foreign ones like UK and Singapore. Led to this

phenomenal growth SPL is the first company in the country ever to exportpharmaceuticals finished goods abroad. At present SPL is exporting its products to

Nepal, Myanmar, Pakistan, Sri-Lanka, Combodia, and Russia.

With its finished goods already dominating markets at home and abroad, SPL started

production of pharmaceutical raw materials groom its new unit, christened as Square

Chemical Division, in 1995. The items in production under this unit are Diclofennac

Sodium, Amoxycillin, Cloxacillin and Paracetamol.

To sustain the changing environment SPL made convert itself into Public LimitedCompany in 1991. With a brilliant track record SPL became the first company in

Bangladesh to cross the Billion Taka mark turnover in 1992. In 1994 SPL got its share

listed in the Dhaka and Chittagong Stock Exchanges. Authorized Capital towered to

billion taka and paid up capital by now is taka 250 million. Presently Square is family of

1321 members.

In 1996 an agreement was signed with M/s Tanvec, UK for the establishment of the

second formulation unit (Pharma II) at Kaliakoir, Gazipur. This factory, which built with aview to get the approval of USFDA/MCA, is completed in the year 2000, and without

doubt, help SPL continue to command its leadership through the next millennium as well.

1.2 Chronology since inception

Year Events

1958 : Debut of Square Pharma as a Partnership Firm.

1964: Converted into a Private Limited Company.

1974: Technical Collaboration with Janssen Pharmaceutica, Belgium, a subsidiary of

Johnson and Johnson International, USA.

1982: Licensing Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland.

1985: Achieved first position in the Pharmaceutical Market of Bangladesh among all


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national and multinational companies.

1987: Pioneer in pharmaceutical export from Bangladesh.

1991: Converted in to a Public Limited Company

1994: Initial Public Offering of Square Pharmaceutical Shares.

1995 : Chemical Division of Square Pharmaceuticals Ltd. starts production of

pharmaceutical bulk products (API).

1997: Won the National Export trophy for exporting pharmaceuticals.

1998: Agro-chemicals & Veterinary Products Division of Square Pharma starts its

operation.

2001 : US FDA/UK MCA standard new Pharmaceutical factory goes into operation builtunder the supervision of Bovis Lend Lease, UK.

2004 : Signing of agreement with ROVIPHARM, Vietnam to manufacture and market

SQUARE products under license in Vietnam.

Secured the top position for the best published accounts and report for 2003 in

the manufacturing category for transparency and excellence in corporate

reporting.

2005 New State-of- the-Art Square Cephlosporins Ltd. goes into operation; built underthe supervision of TELSTAR S.A. of Spain as per US FDA/ UK MHRA

requirements.

1.3 Global Operations of SPLSQUARE has extended its range of services towards the highway of global market. It

pioneered exports of medicines from Bangladesh in 1987. Through its extended

marketing operations, SQUARE is now selling its finished goods in many countries of

Asia and Europe including:

Cambodia

Myanmar

Nepal

Pakistan

Russia

Sri Lanka


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Chapter

2

Ukraine

Yemen

In addition, registration of many of SQUAREs finished goods in other countries of Asia,

Europe, and Africa is now under process.

1.3.1 Partnership and agreement with different world players

1974 : Technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of

Johnson & Johnson International, USA

1982 : Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland

1999 : Agreement with Bayer AG, Germany

1999 : Agreement with Eisai Co. Ltd., Japan

1999 : Technical know-how transfer to foreign pharmaceutical company

2000 : Establishment of Square Spinnings Limited.

2001 : Operation of new factory with a view to get USFDA/MCA approval and

production support for expanding export operations.

2002 : Establishment of Square Fashions Limited and Square Knit fabrics

Limited.

2003 : Turnover crosses Four Billion Taka mark.

Overview of Square Pharmaceuticals Ltd.

2.1 Manufacturing Facilities


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SQUARE is committed to ensure strict compliance

(http://www.assignmentpoint.com/business/report-on-compliance-of-bando-design-

limited.html) with CGMP norms and regulatory requirements in every phase of

manufacturing, quality assurance, and distribution of medicines. To comply with CGMP

SQUARE has state-of-the-art technology in production and quality control. In addition,

USFDA/MCA standard new plant is now at the completion stage.

Documented Quality Management (http://www.assignmentpoint.com/business/management)

System (QMS) is integral part of all of SPL operations. People at all levels are committed to

adopt advanced technology for continuous development. Being confident with the

sophisticated manufacturing and quality assurance technology of SQUARE, multinationals

from industrialized countries now have agreements with Square for having their products

manufactured in Bangladesh.

2.2 Product MixSQUARE has latest technologies for production

(http://www.assignmentpoint.com/business/economics/lecture-on-production-and-

growth.html) of a wide varieties of dosage forms including Tablet, Sustained Release

formulation, Capsule, Metered Dose Inhaler (MDI), Injectable, Syrup (liquid and dry),

Suspension (liquid and dry), Pediatric Drops, Nasal & Ophthalmic formulations, Topical

Gel/Ointment/Cream, and oral care formulations.

Current product mix of Square Pharmaceuticals Ltd. comprised of products from the

following types of Drug Delivery Systems:

Tablets

Non-coated (Vaginal, Dispersible, Chewable, Plain)

Coated (Sugar coated, Film coated, Enteric coated)

Sustained released (coated/non-coated)

CapsulesInjectables

Vials containing dry powder for injections

Small volume parenterals

Liquids

Oral (suspension, syrup, drops, and stomatologicals)

Topical solutions

Nasal drops
http://www.assignmentpoint.com/business/economics/lecture-on-production-and-growth.htmlhttp://www.assignmentpoint.com/business/managementhttp://www.assignmentpoint.com/business/report-on-compliance-of-bando-design-limited.html


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Dry powders

Oral (for reconstitution to make suspension, syrup and drops)

Topical

Semisolids (creams, ointments and gels)

Solid suppository formulations

Metered Dose Inhalers (MDIs)

Dry Powder Inhalers (DPIs)Sterile Ophthalmic Formulations (drops)

Therapeutic Range (Formulation)

Analgesics/AntipyreticsAnthelmintics

Antiallergics

Antidepressants

Antidiabetics

Antidiarrheals

Antiemetics/Gastroprokinetics

Antifungal Systemic

Antigout

Antihistaminics

Antihypertensive / Antianginal

Antiinfectives/Antibacterial

Antimalarial

Antiprotozoals

Antiseptics/Disinfectants

Antispasmodics

Antiulcerants

AntiviralsBone resorption preparations

Dermatologicals

Enzymes

Expectorants/Antitussives

Hematinics

Lipid modifiers/Antiobesity

Nootropics

NSAIDs

Ophthalmic preparations

Sedatives/Tranquilizers/Muscle Relaxants

Bronchodilators/Antiasthmatic

Vitamin and mineral preparations

Androgen suppressants

Anti-migraine

Laxatives

Neurological


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2.3 QualitySQUARE is committed to ensure better life through quality medicine. SPL has defined its

Quality Policy to fulfill this commitment. To achieve and maintain a steady quality, a

range of sophisticated state-of-the-art technology is engaged in operation. SQUARE has

adopted the latest quality philosophy by organizing a well-equipped Quality Assurance

Department in the plant in addition to Quality Control Department. Above all highly

qualified, well-trained, experienced and dedicated professionals are most valuable assets

of Square Pharmaceuticals Ltd.

2.4 Research and DevelopmentSPLs Research and Development is devoted to improve the health care facility of people.

Square Pharmaceuticals Ltd. has brought in advanced technology for its Research and

Development works. Research & Development includes the bibliographic search aided by

a resourceful library, design and selection of process that maximizes efficiency and

minimizes the environmental impact, accelerated and long term stability testing, product

quality optimization and translation of new scientific insights into the products. R&D

Department is also devoted to extensive research and development work in synthesizing

bulk chemicals for Chemicals Division. Having started as an importer of technology, R&D

Dept. from 1999 has started to export technology to SQUAREs global customers. To

support Research and Development work latest Information Technology (IT) is available

with us and SQUARE is now fully prepared to meet the challenge of twenty-first century.

2.5 Chemicals Division for Bulk DrugManufacturingIn 1995, SQUARE has established a separate division for the manufacturing of bulk

drugs. Currently this division is producing the following bulk chemicals for the domestic

pharmaceutical companies:

Paracetamol BP/USP

Diclofenac sodium BP

Diclofenac free acid INN

Diclofenac diethylamine

Diclofenac potassium INN

Flucloxacillin sodium BP


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Amoxicillin trihydrate BP/USP (compacted and micronized)

Cloxacillin sodium BP/USP (compacted and micronized)

Ampicillin trihydrate BP/USP (compacted and micronized)

Cephalexin monohydrate BP/USP (compacted and micronized)

2.6 Distribution NetworkSQUARE is committed to ensure better life through quality medicine. The ultimate motto

is to ensure customer satisfaction by exceeding their level of expectations. SPL has 14

Sales and Distribution offices in the following places in Bangladesh:

Depot Address Phone

Dhaka 355-356, Tejgaon Industrial Area, Dhaka-1208. (880-2) 8828775

Pabna Hospital Road, Salgaria, Pabna. (880-731) 66580

Bogra 877/A, MS Road, Bakshi Bazar, Malati Nagar,

Bogra

(880-051) 64747

Rangpur House # 36, Road # 2, R K Road, Islambag ,Rangpur.

(880-0521) 63588

Khulna Alhamdulillah, 25 Usufe Road, Mirzapur, Khulna-

9100

(880-041) 732330,

724654

Barisal 502/532 South Alekanda, 1 No. C & B Pool, C & B

Road, Barisal.

(880-0531) 53661,

56778

Comilla 400/363, Shishu Mangol Road, Kandirper

Comilla.

(880-081) 72320

Mymensingh 5/A/04 & 5/A/05, Shaheb Quarter, Kachijuli,

Mymensingh

(880-091) 55143

Chittagong House No-1/C, Baijid Bostami Road, East

Nasirabad, Chittagong-4000.

(880-031) 654423

Maizdee 234/B, Hospital Road, Maizdee Court, Noakhali. (880-0321) 61683


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Sylhet Sabina Mohal, 44, Payra, Darshandewry, Dorga

Mohalla, Sylhet.

(880-0821) 725298

Tangail Biswas Betka, Dhaka Road, Tangail (880-0921) 53488

Rajshahi 106, Ambagan, Senanibas Sarak, Rajshahi (880-0721) 760877

Faridpur Mission Road, Christian Mission, Police Line,

Faridpur

(880- 0631) 63561

The extensive marketing network comprising of latest technical and logistic support

along with 887 skilled and qualified field staffs is a key to succeed in achieving customer

satisfaction level beyond their expectation. The modern warehousing and completely

computerized invoicing facilities of SQUARE ensures just-in-time delivery and high

customers satisfaction.

Resources

Total Distribution personnel : 887

Permanent : 420

Casual : 467

Central Depot : 01

Depot : 14

Vehicles : 212


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2.7 New Plant of SPL

SQUARE is now on its way to becoming a high performance global company. To this end

SQUARE has built a new plant that went into operations by the end of 2001. This plant is

the first of its kind in Bangladesh with its MCA of UK and USFDA standard manufacturing

and quality assurance facilities.

The implementation of Pharma Unit at Dhaka (Kaliakoir) is carried out under the

supervision of M/s. Tanvec Ltd. of UK. In view of the complex and complicated design

and high quality standard required for USFDA/EU/MCA specifications the progress of

implementation has to be slower. It may be noted that during the year under review total

investment increased by Tk. 463,667,368 from Tk. 317,321,566 as on 31-03-98 to

780,988,934 as on 31-03-99 on various heads as shown below:

Square Dhaka Unit Project work was started from October 1996. After technical review

and in the best interest of the project in order to achieve quality work as State-of-the-art

facility to meet the requirement of the USFDA/MCA Good Manufacturing Practice the

original project completion schedule had to be extended.

The Dhaka Unit New Pharmaceuticals Production Facility at Kaliakoir is one of its kind in

the country to face the challenge of free world market in the beginning of new

millennium.

The State-of-Art Facility incorporated certain basic requirement in the area of PurifiedWater System. Floor Construction, HVAC System Process Equipment and Validation/

Qualification Documentation as stipulated by USA, EU and other developed countries.

2.8 Export market

In an effort to expand the market for the pharmaceutical products beyond the border, the

company has been successful in exporting to several countries at an increasing ratio of

its turnover as indicated below:

Taka in 000)

Year Turnover (Gross) Exports % age of GT

2001-2002 2,422,785 44,361 1.83%

2000-2001 2,055,418 15,082 0.73%


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1999-2000 1,827,983 11,503 0.63%

1998-1999 1,595,590 163 0.01%

The company has so far been able to enter into the markets of Russia, Pakistan, Sri

Lanka, Myanmar, Nepal, and Cambodia. It is expected that after the Dhaka Unit goes intoproduction the company will succeed in entering the markets of developed countries with

expanded share of exports.

2.9 Corporate Financial Highlights

Head Amount

Authorized Capital Tk. 1000 Million

Issued, Subscribed and Paid-up Capital Tk. 496.8 Million

Reserve/Surplus (Retained Earnings) Tk. 872 Million

Share Premium Tk. 800 Million

Long Term Loan Tk. 210 Million

2.10Marketing Performance

2.10.1 Product

Squares product is viewed among the most quality products in the country. This quality

image has increased its credibility among the doctors. It is also pioneer in introducing

many new products sought by the doctors. Introducing new products is one of the

important objectives of the company. But there are some complaints regarding

packaging of the products. But the company has now concentrated in this area and

working hard to bring attractive and good packaging

2.10.2 Pricing

Government fixes Price of most of the essential drugs. The number is 118 products. The

company can fix price of other products but needs to take approval of government. In

pricing a product, Square Pharmaceuticals Ltd. usually follows target pricing. Premium


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Chapter

3

prices cannot be charged, as all the competitor products are similar and not much

distinguishable from each other. But prices of some products are still higher than the

competitors. But since Square Pharmaceuticals Ltd. does not compromise with the

quality, sometimes they have to charge higher to ensure the highest quality possible.

2.10.3 Promotion

Personal selling is the main weapon in pharmaceutical industry. Medical representatives

of the company go to the doctors to promote the products. The quality of medical reps is

assumed to be the best in Square Pharmaceuticals Ltd. They are selected after a careful

scrutiny and are sent to market after some extensive training. This helps Square

Pharmaceuticals Ltd. to maintain the quality of its medical reps. Advertising can be given

only in magazines related to health profession. Square also utilizes every opportunity to

explore this area

2.10.4 Distribution

Square distributes its products all over the country using its own distribution channel. It

has a large number of vehicles and sales depots to ensure coverage of the whole

country. Its coverage is the best in the country.

SQUAREs NATIONWIDE DISTRIBUTION

Corporate Profile of SQUARE

Although Square started its operation in pharmaceutical sector and leader in the field, it

is today a synonym of quality toiletries, health products, textile products and AgroVet

products. It has also expanded its business in real estate, engineering construction,

hospitals, electronic media and other trade & services. SQUARE is now one of the fastest

growing and fastest diversifying conglomerate in Bangladesh.


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3.1 Square FamilySquare family is currently comprised of following companies:

Square Pharmaceuticals Ltd.

Square Textiles Ltd.

Square Spinnings Ltd.

Square Toiletries Ltd.

Square Consumer Products Ltd.

Square Informatix Ltd.

Square Health Products Ltd.

Square Agro Ltd.

Mediacom Ltd.

3.2 Associated CompaniesAs part of vast diversification, SQUARE has the following associated companies:

Sheltech

Pioneer Insurance Company Ltd.

Mutual Trust Bank Ltd.

National Housing Finance And Investment Ltd.

Aegis Services Ltd.

Maasranga Productions

3.3 Corporate Headquarters:

Corporate Headquarters of SQUARE is now located at the following address:

SQUARE CENTRE

48, Mohakhali Commercial Area, Dhaka-1212, Bangladesh

Tel. : (880)-2-8827729 (10 lines); Fax : (880)-2-8828608, 8828609

Email: [email protected] (mailto:[email protected]), Web: http://www.square-bd.com

(http://www.square-bd.com/)

3.4 Board of Directors
http://www.square-bd.com/mailto:[email protected]


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Mr. Samson H. Chowdhury Chairman

Mr. Tapan Chowdhury Managing Director

Dr. Kazi Harunar Rashid Director

Mr. Samuel S. Chowdhury Director

Mr. Anjan Chowdhury Director

Mr. Kazi Iqbal Harun Director

Mrs. Jahanara Chowdhury Director

3.5 Human resources

In its efforts for human resources development in all spheres of its activities the

company offered various courses of training. The company conducted in-house courses

of different duration for upgrading skill of 395 employees during the financial year of

1998-1999. 22 employees were sent to various local institutes for training on different

topics, 7 employees were sent abroad for training/attending seminars/symposiums on

various subjects including general management, 3 expatriates were also invited for

holding various discussion forums for officers/staff of the company.

The Breakdown of HR

Job Location Manager and

above

Executive Non Executive Total

CorporateHeadquarters

46 123 123 292

Chemicals Division 2 12 64 78

Pabna Plant 19 59 459 537

Dhaka Unit 14 61 168 243

Distribution 3 17 174 194

Field Force(SPL) 942

Field Force(Agrovet) 70

Field Force(Pesticide) 25


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Total HR 84 272 988 2381

The Supervision Ratio

Criteria Manager Executive Span of Supervision

Supervision 84 272 1 : 3

Executive Non Executive

272 988 1 : 4

3.6 Activities of Key Functional Departments in SPL

As per the latest organogram SPL had 20 (twenty) functional departments for its

operation. The names of the departments are as follows:

1. Information Technology (IT) Department

2. Medical Services Department (MSD)3. Product Management Department (PMD)

4. Sales Department

5. Distribution Department

6. International Marketing Department

7. Market Research and Planning Cell

8. Quality Management and Audit Dept.

9. Production Planning and Inventory Cell

10. Engineering Department11. Production Department

12. Commercial Department

13. Personnel and Administration Department

14. Technical Services Department

15. Human Resource Training and Development Department

16. Quality Control Department

17. Quality Assurance Department


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MarketingServices Officer

Product GroupManager

Senior BrandManager

BrandManager

18. AgroVet Department

19. Accounts and Finance Department

20. Accounts (New Venture) Department

Organizational Structure

Managing Director

The following departments manage domestic marketing operation:


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1. Product Management Department (PMD)

2. Sales Department

3. Medical Services Department (MSD)

4. Distribution Department

5. Market Research and Planning Cell

The following paragraphs describe the key functions of the above-mentioned

Departments:

Information Technology (IT) Department

The main functions of IT Department are as follows:

1. Provide computer and other related accessories supports to all the user

2. Maintenance of server and ensure smooth LAN operation

3. Provide up to date technical and software support to all the sectors of SQUARE4. Development and maintenance of centralized databases and provide routine and

ad hoc reports for management decision making.

Medical Services Department (MSD)

The main functions of MSD are as follows:

Arranging clinical meeting with the physicians on different products

Provide answers to different queries of the physicians through mail or telephone


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Arranging education programs for the rural medical practitioners

Publishing of medical journals

Arranging of special promotional campaign of different products

Product Management Department (PMD)

PMD is the core and centralized department for managing the total marketing effort.

Basically PMD performs the all planning, implementation of plans as part of marketing

management functions. The two key functions of PMD are as follows:

1. Introduction of new product into the market

2. Manage the existing portfolio to achieve the marketing objectives.

To this end PMD undertakes all relevant activities including the following:

1. Preparation of Marketing Plan.

2. Designing and development of promotional materials

3. Training of field forces

4. Feasibility study of new products

5. Management of regulatory affairs with Drugs Administration

6. Preparation of printed promotional material (literature/pad/brochure/show card

etc.).

7. All relevant coordination works with supplier/factory and procurement department

concerning machinery and raw materials that will be used to manufacture the

concerned brands.

Sales Department

1. Pay regular visit to the doctors; show the benefits of new existing products with

the help of promotional tools.

2. Monitor the competitors activities.

3. Handles initial product queries from doctors and product complain from the

market.

4. Receive sales order from the retailers /drug stores.

5. Coordination among different markets

6. Market rearrangement

7. Handling different problems of field forces


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Distribution Department

Ensure smooth distribution of products to all over the country

Collection of payments from the customers

Performs functions as the representative of SPL at the depot level.

Maintenance of vehicles and depots

International Marketing Department

Exploration of new markets all over the world

Operating of export business in the different countries

Provide training to field forces in overseas countries

Provide all types of documents for registration of SPLs products in overseas countries.

Market Research and Planning Cell

Performing market survey on the Bangladesh Pharmaceutical Market

Regular prescription share analysis and report generation for SPL market share analysis.

Performing different market research work on different issues

Provide all kinds of support to Field Colleagues in effective planning in the market level.

Quality Management and Audit

Ensure the practices of Quality Management System (QMS) at every stage of operations

of SPL in full compliance with ISO 9001.

To monitor the activities to ensure compliance with defined quality policy at every stage

of business.

Develop process and instructions for continuous development of operations to increase

productivity.

Production Planning and Inventory Cell (PPIC)


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Chapter

4

1. Authorized Capital Tk. 1000 Million

2. Issued, Subscribed and Paid up Capital Tk. 436.8Million

Prepare the monthly production schedule of different products

Maintain the inventory status of different raw materials and packaging materials

Technical Services Department (TSD)

1. Provide technical support to QC, QA, Production and other departments with

regards to any kind of technical issues.

2. To procure new Raw Material and production and quality facilities in coordination

with Commercial Dept.

3. Development of formulation of new products

4. Selection of machinery and equipment including spare parts.

5. Coordination and follow-up of the designing and implementation of the Master

Plan of the factory. All matters related to development of factory facilities.6. Handling various forms of product complaints from market, field forces, and

different departments.

7. Recipe development and necessary changes in formulations, product

improvement.

Current performance of SPL

4.1 Corporate financial highlights

As on March 31, 2006 the corporate financial position of SQUARE was as follows:


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3. Reserve/Surplus (Retained Earnings) Tk. 872 Million

4. Share Premium Tk. 800 Million

5. Long Term Loans Tk. 210 Million

6. Number of Shareholders (2006) 13,206

4.2 Corporate operational

resultsThe following three years financial data proves that SPL is operating through maximizing

the shareholders benefits.

(Figures in thousands)

2003-2004

(12 months)

2004-2005

(12 months)

2005-2006

(12 months)

1 Turnover (Gross) 3451523 4234244 4729743

2 Value Added Tax 450577 563433 663892

3 Turnover (Net) 3000946 3670811 4065851

4 Gross Profit 1081340 1435655 1466282

5 Net Profit before Tax 691636 905736 929604

6 Net Profit after Tax 573677 759448 764885

7 Paid-up Capital 300,000 300,000 300,000


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8 Earning per Share 229.47 253.15 254.96

9 Dividend per Share 70.00 75.00 70.00

4.3 Output/Capacity utilizationThe actual production of the various categories of products (except inhalers) including

chemicals increased substantially leading to higher capacity utilization as summarized

below:

Product

Categories

Units Production (000) % age

increase /

(Decrease)

Capital Utilization

2005-2006 2004-2005 2005-20062004-2005

1 Tablets Pcs 1829089 1736561 5% 105% 231%

2 Capsules Pcs 295234 286350 3% 96% 119%

3 Liquids Bottles 21210 16105 32% 118% 153%

4 Injectables Pcs 13325 23075 (42%) 74% 90%

5 ENT

Preparations

Phials 8651 10778 (20%) 192% 207%

6 Opthal

Preparations

Phials 1083 966 12% 181% 116%

7 Dry Syrup Bottles 4048 2634 54% 169% 88%

8 Inhalers Can 298 148 101% 50%

9 Basic Chemicals Kg 219 201 9% 64% 59%

10 Tablets-AgroVet Pcs 1262 1697 (26%) 67% 99%


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11 Powder-AgroVet Gm 34911 15252 129% 189% 127%

The capacity utilization rate in some areas of production decreased due to strategic

changes in favor of increased production of higher value added products in each

category resulting in higher turnover in value.

4.4 Dhaka ExpansionDespite numerous oddities and complex artifices usually associated with a state-of-art

plant, the management is in the final phase of implementation of the project with the

planning, supervisory and technical support form the consultants e.g. M/s Bovis Lendles

and Tanvec of UK and KUPPA collaboration of Thailand, though the target of

commissioning had to be revise / shifted a few times in the past. It may be appreciated

that the project in hand is only of its kind in the region with USFDA and EU

pharmaceutical manufacturing standards requiring highly rigid and unquestionablequality of materials, workmanship, and performance. The process of implementation has

often suffered from various hazards of communication, transports, movements and

planned accomplishments was not achieved fully due to malfunctioning of ports,

airports, airlines, shipping services, etc. Due to carious reasons as are rampant in the

country since the project was taken in hand. Considering all these factors and the

technical complexities of such a project as well as non-availability of requir5ed man-

machine-material in Bangladesh, the delay in implementation of the project would not be

termed unusual and abnormal. It may also be mentioned that the consultants also hadoften failed to identify and consider every possible situation in Bangladesh. In spite of

these the unit is scheduled to start functioning by end 2001.

During the year 2005-2006, an amount of Tk. 807,016,104 has been invested on various

heads as detailed below:

Particulars As on 31-03-05 As on 31-03-06 Increase

1 Land & Land Development 86,725,346 107,550,519 20,825,173

2 Building/Civil Work 318,783,360 812,111,406 493,328,043

3 Imported Plant & Machinery 348,897,963 576,923,068 228,025,105


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4 Other Assets 6,315,634 19,954,395 13,638,761

5 Interest during Construction

Period

5,577,622 47,501,489 41,923,867

6 Unallocated Expenditures 14,689,009 23,964,161 9,275,152

Total Tk. 780,988,934 1,588,005,038 807,016,104

The remaining implementation work is expected to be now completed by end of 2004 at

an estimated final cost of Tk. 1,830 million and commence production thereafter.

Square Dhaka Unit Project work was started from October 1996, which completed by end

of March 2000. After technical review and in the best interest of the project in order to

achieve quality work as State-of-the-art facility to meet the requirement of theUSFDA/MCA Good Manufacturing Practice the original project completion schedule had

to be extended.

The Dhaka Unit New Pharmaceuticals Production Facility at Kaliakoir is going to be one

of its kind in the country to face the challenge of free world market in the beginning of

new millennium.

The State-of-Art Facility incorporated certain basic requirement in the area of Purified

Water System. Floor Construction, HVAC System Process Equipment and Validation/

Qualification Documentation as stipulated by USA, EU and other developed countries.

4.5 Export marketThe companys export drive is being continued with great stress. However, there are

number of problems in exports of medicines from Bangladesh. As a result, the value of

exports in Taka declined by 9.1%. To counter this in future, registration process of

products for export purposes has been initiated in few more countries. The company

expects to make a break through in exports when the Dhaka Unit is commissioned.

(Taka in 000)

Year Turnover (Gross) Exports % age of gross turnover

2005-2006 2,655,952 40,324 1.52%

2004-2005 2,422,785 44,361 1.83%


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2003-2004 2,055,418 15,082 0.73%

The company has so far been able to enter into the markets of Russia, Pakistan, Sri

Lanka, Myanmar, Nepal, Combodia. It is expected that after the Dhaka Unit goes intoproduction the company will succeed in entering the markets of developed countries with

expanded share of exports.

4.6 Financial results

The operating financial results of the company for the year under report as compared to

the previous year are as follows:

Figure in thousand : BDT

2005-06 2004-05 2003-04 2002-03 2001-02

Turnover (Gross) 7,085,553 6,199,135 5,482,088 5,482,088 4,234,244

Value Added Tax 995,648 867,088 760,536 663,892 563,433

Turnover (Net) 6,089,905 5,332,047 4,721,552 4,065,851 3,670,811

Gross Profit 2,564,503 2,172,593 1,906,592 1,466,282 1,435,655

Net Profit before Tax 1,533,043 1,513,019 1,151,636 929,604 905,736

Net Profit after Tax 1,165,865 1,255,848 970,044 764,885 759,448

Shareholders Equity 6,402,015 5,568,790 4,590,142 3,851,098 3,273,714

Total Assets 9,298,987 7,907,933 6,021,497 5,164,320 4,526,115


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Total Bank Borrowings 2,334,925 1,902,331 988,611 1,070,163 1,098,874

Total Current Assets 4,031,685 3,242,502 2,016,056 1,441,552 1,452,494

Total Current Liabilities 2,260,755 1,949,949 1,250,676 1,247,967 1,181,473

Current Ratio 1.78 1.66 1.62 1.16 1.23

(http://www.assignmentpoint.com/wp-

content/uploads/2013/03/profit-graph.jpg)4.7 Concluding commentsSquare Pharmaceuticals Ltd. has a very good working environment where the employees

get enough opportunity to show their ability and creativeness. Its communication

channel is superb. Informal channel of communication is very active. Many

interdepartmental issues are solved in informal meetings, often over a cup of tea.

Introduction of LAN has smoothened the process.
http://www.assignmentpoint.com/wp-content/uploads/2013/03/profit-graph.jpg


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2015 AssignmentPoint.com

Every member of Square Pharmaceuticals Ltd. feels like he or she is a member of the

Square family. This family feeling is a big asset for this company. Most of the employees

are dedicated and motivated to work. Since good performance is always highlighted and

creative ideas welcomed people are eager to contribute their best.

Square Pharmaceuticals Ltd. believes in honesty in every phase of business. The

management promotes this idea to its workers. The image of the company is also goodall over the country. Customers all over the country recognize Square as a quality

company and an honest company.

Subject : Business (http://www.assignmentpoint.com/category/business), Organizational Behavior

(http://www.assignmentpoint.com/category/business/organizational-behavior), Pharmacy

(http://www.assignmentpoint.com/category/science/pharmacy), Science

(http://www.assignmentpoint.com/category/science) Category : Report

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