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Introduction Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranked 8th amongst the global generic pharmaceutical companies, Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 49 countries, world-class manufacturing facilities in 11 countries and serves customers in over 125 countries. Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau word from the
names of its first owners Ranbir and Gurbax. Gurbax Singh had taken a loan from Bhai Mohan Singh‘s finance company Bhai Traders and Financiers Pvt. Ltd, but was unable to repay the money and transferred ownership of his company instead. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh. Bhai Mohan Singh started off by selling imported drugs. In 1956, India banned the import of finished pharma products and Ranbaxy opened a manufacturing plant in Okhla. That office is now with Bhai Mohan Singh‘s youngest son Analjit Singh (the promoter of the Max group of companies). After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. It was Parvinder‘s vision that Ranbaxy invest in both R&D as well as manufacturing in order to survive. In 1973, Ranbaxy went in for a public issue ―to bankroll the (R&D) project and raised Rs 70 lakh from the market. And in 1977, Davinder Singh Brar joined Ranbaxy. The duo—Parvinder Singh and Brar—are widely credited with turning around Ranbaxy‘s fortunes. Parvinder‘s son, Malvinder Mohan Singh took over as the CEO in 2006. Both sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008. In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical powerhouse. The combined entity now ranks among the top 15 pharmaceutical companies, globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it will emerge stronger in terms of its global reach and in its capabilities in drug development and manufacturing.
OBJECTIVES OF THE STUDY
➢ To study the overview of Indian Pharmaceutical Market. ➢ To study the culture of Ranbaxy Lab. ➢ To find out the promotional strategies used by Ranbaxy lab. ➢ To find out various promotional strategies used by Ranbaxy lab. ➢ To study the competitors of ‘Ranbaxy lab’.
LIMITATIONS OF THE STUDY
➢ The scope of study is limited to Ranbaxy Lab. ➢ There may be discrepancies in the actual data and the recorded data due to misinterpretations. ➢ Topic is vast but availability of information and timeline is short. ➢ Unable to meet the decision maker of the organization. ➢ Due to busy schedule of Doctors proper feedback is not possible.
catapults the new. In November 2008. Ranbaxy has begun converting itself into a full-fledged researchbased company. is the largest pharmaceutical company in India and one of the world’s top 100 pharmaceutical companies.92% shares of Ranbaxy and in the process infused. Ranbaxy is specialist in the preparation of generic drugs. Ranbaxy is also one of the world top 10 in that pharmaceutical category as well. The coming together of Ranbaxy and Daiichi Sankyo is a path-breaking confluence that. Daiichi Sankyo completed the acquisition of 63. with India's agreement to apply international patent law at the beginning of 2005. . Company History: Ranbaxy Laboratories Ltd. A major part of this effort has been the establishment of the company's own research and development center.ABOUT RANBAXY LAB. in one sweep. which has enabled the company to begin to enter the new chemical entities NCE) and novel drug delivery systems (NDDS) markets.
The company. European sales added 16 percent to the company's sales in 2004. makes it the largest generics producer in that market. India's largest generics Company and the other. is listed on the National Stock Exchange of India in Mumbai. which alone accounts for nearly half of all pharmaceutical sales in the world. the company's purchase of RPG (Aventis) S. In Europe. producing its pharmaceutical preparations in manufacturing facilities in seven countries. supported by sales and marketing subsidiaries in 44 countries. Ranbaxy's other major markets include Brazil. . among the largest innovator companies in Japan.one. as well as India. reaching more than 100 countries throughout the world. The United States. Ranbaxy is a truly global operation. The company is also a leading generics producer in the United Kingdom and Germany and elsewhere in Europe.empowered entity to the status of the world's 15th largest pharmaceutical Company. is the company's largest international market. which together added 26 percent to the group's sales.A. Russia. which remains controlled and led by the founding Singh family. and China. the two pharmaceutical giants are formidable . Individually. representing more than 40 percent of group sales.
➢ Become a top global generic player. ➢ Foster mutually beneficial relation. ➢ Provide product and service of the highest quality. VISION: ➢ Achieving customer satisfaction is fundamental to our business. ➢ Practice dignity and equity in relationship and provide opportunity for people to realize their potential. VISION2012: “Achieve significant business in proprietary prescription product by 2012 a strong presence in developed market”. ASPIRATIONS 2012: ➢ Aspire to be a $5bn company.Mission & vision MISSION: “To become a research based international pharmaceutical company”. ➢ Be a responsible corporate citizen. with all our business partner. ➢ Significant income from proprietary product. ➢ Manage our operation with high concern for strategy and environment. RANBAXY LABORTITES .
Chairman Brian Tempest.com . India Tejandra Khanna.520 crore ($ 5 billion) : : 1100 in R&D www. 5.Type Founded Headquarters Key People : : : : Public 1961 Gurgaon.188 crore Rs. 23. 15.077 crore : 49 : 8 : Rs.ranbaxy. Vice Chairman Malvinder Singh. 3. Haryana. 9.400 crore ($ 2 billion) : Rs. CEO Industry Total revenue Global revenue Market cap Number of countries where it is present Countries where it has manufacturing units Revenue targeted by December 2007 Revenue targeted by December 2012 Employees Website : : : Pharmaceutical Rs.819 crore : Rs.
Recent Acquisitions & Alliances .
Core –competency CORE VALUES The core values in action that each manager of ranbaxy should subscribe are: Performance Focus Customer Responsiveness Entrepreneurial Drive Trustworthiness People Development .
Medical Insurance and Pension plans are a few examples of the benefits provided to the employees and their dependents. Group Life Insurance. a world class working environment. Stock ownership is a part of the compensation for the managers early in their career at Ranbaxy: business results reflect . It offers avenues to work across the globe alongside the finest minds. The Company offers a challenging assignment. competitive salaries. professional management.Life at Ranbaxy A career at Ranbaxy means an opportunity for ample learning & growth. and stock options along with exceptional rewards.
defined career paths and allocation of rewards provide motivation to the managers and employees to work in the best interests of the company.functional teams). .straight away in their pay slip. It minimizes the need for the employee to look out for better avenues and as such builds a long lasting team and provides stability to the human resource capital. Ranbaxy believe in employee growth that goes beyond vertical movements and change in designations. By aligning the goals of the employees with that of the companies by giving them stock options is a further act in this direction. to some extent. they are empowered to direct the value creation activities necessary to complete different projects. It also. Potential and performance are the pillars of career progression at Ranbaxy. This shows that the culture at Ranbaxy is highly organic. minimizes the Agency problem. By allowing people to work across in Ranbaxy’s different functions (cross. A robust development process supports this. Such opportunities. The flexibility to work across regions develops the skills of the employee and keeps their motivation level and learning curve high. Culture at Ranbaxy Opportunities have never being a constraint for the deserving.
I & NUTRITIONAL CVS & DIABETES CNS NS AID & RELATED ANTI ALLERGANTS ANTI RETROVIRALS UROLOGY OTHERS RANBAXY TOP 10 GENERICS .PRODUCTS OFFERED • • • • • • • • • ANTI – INFECTION G.
Business model .
These new growth areas will add significant depth to the existing product pipeline.STRATEGIES Ranbaxy is focused on increasing the momentum in the generics business in its key markets through organic and inorganic growth routes. The Globalization Strategy Growth Strategy Poised For Growth API Development And Production Dosage Form Development And Manufacturing Contract Manufacturing . emerging and developed markets to strengthen its business and competitiveness. Ranbaxy has forayed into high growth potential segments like Biologics. Growth is well spread across geographies with focus on emerging markets The Company continues to evaluate acquisition opportunities in India. Oncology and injectables.
Contract Manufacturing To expand product lines with minimum investment. Ranbaxy continually uses reverse engineering to improve upon its development and manufacturing processes and enhance yield. Ranbaxy provides turnkey manufacturing services.Flexibility and resources to respond to changing market dynamics Dosage Form Development and Manufacturing Ranbaxy's experience as a global manufacturer makes it an ideal partner to take on the complex process of solid or liquid dosage form development. This is an efficient way to . with a focus on achieving greater cost efficiencies.Competitive costs.Consistent quality of product . to allow companies to focus on marketing and selling the product. Key advantages of using Ranbaxy's vertically integrated system are: Continuity of supply. including API and dosage form development.API Development and Production Ranbaxy can provide Active Pharmaceutical Ingredients (API) for companies that want to manufacture their own product or brand without incurring the time and costs associated with developing the API. eliminating this step from the overall manufacturing process.
generic and OTC products for RPI. taking advantage of Ranbaxy's manufacturing capabilities and expertise. Marketing Strategies: Marketing Strategies is the department focused primarily on developing and executing strategies for the promotion and distribution of branded. One of the key tasks for the department is to identify opportunities in different markets and distribution channels and pursue those to developing and establish new relationships in the marketplace. Managed Care and Internet marketing are a couple of key areas that the department is looking to introduce into its ever-expanding service offerings. Porter’s Five Forces Model of Competition .diversify product lines and increase profit margins.
Dr. Top Competitors The following companies are the major competitors of Ranbaxy Laboratories Limited 1.The top players in the country has only 6% market share and top 5 players together has about 18% market share.000 different players fighting for the same price.Competitors Pharmaceuticals Industry is one of the most competitive industrys in the country with as many as 10. Reddy's Laboratories Limited 2. Cipla .
Nicholas Piramal India Ltd 4.3. Kopran 9. GlaxoSmithKline Pharmaceuticals (India) Limited 5. Abbott India AT HOME Ranbaxy Vs The Top Five Domestic Companies . Sun Pharmaceuticals Industries Ltd 6. IPCA Laboratories Ltd 10. Novartis India Limited 8. Morepen Laboratories 7.
The chemicals used in the pharma industry are largely a commodity.The suppliers have very low bargaining power and the Ranbaxy can easily switch from their suppliers without incurring a very high cost. .The chemical industry is again very competitive and fragmented.Bargaining Power of Suppleir:Ranbaxy depends on certain organic chemicals .
plays an important role in regulating pricing through the NPPA(National Pharmaceuticals Pricing Authority).However creating the brandawareness franchisee amongst the doctor is the key for the long term survival.Bargaining Power of Buyers:In Ranbaxy or in any Pharma industries the buyers are scattered and they as such does not yeild power in the pricing of the products. MARKET SHARE .The capital requirement for an industries is very low so creating a regional distribution network is easy since the point of sales is restricted in this Industries in India. Barriers to Entry Pharmaceutical Industry is one of the most easily accessible industries for an entrepreneur in India.However government with it’s policies. In recent times the advances made in the field of Bio-technology can prove to be a threat to synthetic pharmaceutical industries.Also quality regulations by government may put some hindrance for establishing new manufacturing operations.
SURVEY ANALYSIS Factors leading to growth .
Ranbaxy is building upon the practice of Related Diversification – entry into a new domain that is related in some way to an organization’s domain – to gain a competitive advantage. . Ranbaxy has realigned its domestic operations to the needs of its target customer groups to have a more focused relationship with the doctors. These strategies – specific patterns of decisions and actions – helped them achieve a competitive advantage. and has thus reaped the benefits of being an early entrant in new markets.e.The key to Ranbaxy’s growth lay in the strategic decisions taken by its management from time to time. The company has followed an r-strategy i. the strategy of entering a new environment early. demonstrates that Ranbaxy manages symbiotic resource interdependencies by the way of co-optation to manage its specific environment better. Examples • Rank in Therapy Segments Over the last few years. Ranbaxy’s main strategy to manage its environmental forces seems to be through forming strategic alliances for various products and markets. Ranbaxy has accelerated its pace to bring in new differentiated products in the Indian market to consolidate its leadership position. By forming relationship with doctors. It exemplifies how symbiotic interdependencies can be managed and harnessed for the organization’s benefit. by manipulating the specific and general environmental forces. Focus on Differentiated Products The Company realized the importance of having a versatile product portfolio and thus is focusing on offering differentiated/value-added new products to the Indian masses. This is aimed at providing customer specific quality services surpassing expectations.
Ranbaxy is further expanding its product portfolio through in-licensing and has already emerged as a pioneer in this area. it entered into a strategic alliance with Zenotech Laboratories Ltd (Zenotech Labs) of Hyderabad. India. • NCE Products – India Focus Recently a licensing agreement with a Swissbio-pharmaceutical company.• Entering into the Oncology Segment Since Ranbaxy did not have a significant presence in the Oncology segment. . was signed for the New Chemical Entity (NCE) Drug in the Gastroenterology segment. the Netherlands-based Pharma company for the Asthma product Doxophylline – a Novel Xanthine Bronchodilator. Ran™ Risperidone. It is a strategic step in the direction of expanding the product portfolio through differentiated products for the Indian market. in the post-patent era. • Strengthening Product Basket in New Markets In Canada. • Strengthening Presence in the Asthma Segment Ranbaxy has entered into an ‗In-licensing’ agreement with Eurodrug Laboratories. In-licensing agreement demonstrates that Ranbaxy makes use of the informal strategy of long term contracts to manage its resource interdependencies. In mid 2006. a company with a stronghold in this segment. Ranbaxy Pharmaceuticals Canada Inc (RPCI) and Janssen-Ortho Inc (JOI) entered into a licensing and supply agreement for a generic version of Risperidone compressed tablets.Debiopharm. sold underRanbaxy‘s label. soon after the launch of its products in 2005.
This is a significant step in creating an independent pathway for DDR with dedicated resources and enhanced focus for longterm value building. Information Security (Infosec) has been a priority at Ranbaxy. Dr. sensitizing them to the importance of Information Security. Information Security and Information synergy Since early 2006. Ranbaxy's state-of-the-art research infrastructure and scientific talent pool can be more effectively leveraged through an independent vehicle that better aligns assets with priorities to accelerate the company's drug discovery programs. while providing a platform for increased collaboration. A verification . The program is focused on bringing behavioral change in people. CEO and MD. The core competency of DDR is to discover new drugs. Malvinder Mohan Singh. By the way of decentralization of NDDR. A policy framework called the Information Security Management System (ISMS) has been introduced and Standard Operating Procedures (SOPs) laid down. Ranbaxy. Ranbaxy has promoted flexibility and responsiveness by allowing the research department to make on the spot decisions. ‗Operation Safed Sagar‘ – an initiative targeted at protecting the company‘s information assets. Ranbaxy practices division of labor and specialization by allocating dedicated resources and creating scientific talent pool to DDR. The resulting operational freedom and flexibility will also help to open up new growth opportunities. R&D in Ranbaxy NDDR – A Separate Entity Decentralization Ranbaxy received an in-principle approval from the Board of Directors to de-merge its Drug Discovery Research (DDR) operation. took the lead to introduce.
Specific policies and procedures have been introduced. Ranbaxy By using Information security Ranbaxy has demonstrated that is uses IT • To make critical information accessible to employees. Through concerted efforts of various teams involved in the project. which is Confidentiality. Ranbaxy employees have gradually understood the importance of Information Security as the rule of CIA. The sensitization process started through a well-crafted communication program highlighting the risks and the appropriate behavior.and validation framework has been formulated in the ISMS to ensure sustenance of this initiative and eventual assimilation into the Ranbaxy way. . Integrity and Availability. • To facilitate beliefs norms and values of Ranbaxy. • To enhance motivational effects of cultural values.
enlarges to advance clinical proof of concept. On the basis of its strong fundamentals of innovation. GSK. Ranbaxy has carved a formidable position at home and a growing footprint in the global pharma market. Government of India. Ranbaxy‘s role. GSK thereafter will conduct further clinical development for each program and take resulting products through the regulatory approval process to final commercialization. Collaborating with DST In another development. The company has been able to tackle many . to provide Ranbaxy expanded drug development responsibilities and further financial opportunities. in the area of New Drug Discovery Research (NDDR). Ranbaxy has demonstrated that it uses strategic alliance to manage its competitive interdependencies. By forming strategic alliance with its competitor. Ranbaxy entered into a collaborative agreement with the Department of Science & Technology (DST). which was to conduct the optimization chemistry required to progress drug leads to the stage of candidate selection. established in 2003. for two NDDR programs in the therapeutic areas of Anti-infectives and Inflammation. agile and a dynamic organization that has made balanced and strategic alliances in the developed as well the emerging markets. entrepreneurship and aggressive marketing. The Company has displayed all the qualities of a nimble. DST will provide financial support by way of soft loans to Ranbaxy. Under the agreement.Agreements and collaboration Agreement with GSK Extended Ranbaxy extended its strategic R&D alliance with GlaxoSmithKline (GSK).
innovation and alliance. adolescent health. • Provides a blend of curative.of the environmental uncertainties by way of collaboration. Corporate Social Responsibility • An essential component of Ranbaxy‘s corporate social responsibility is to take care of the community. later re-christened as Ranbaxy Community Health Care Society (RCHS) in 1994. • AIDS awareness and counselling is also a priority component of the programme. preventive and health promoting services amply supported by laboratory services covering areas of maternal child health. Ranbaxy set up ‗Ranbaxy Rural Development Trust‘ in 1978. reproductive health and education. . • Based on the theme ‗Health for All‘. family planning.
. Medical Colleges. Educational Institutions. NGO‘s .• Established very meaningful and useful partnerships with the Government. Confederation of Indian Industry (CII) and other likeminded agencies which has helped RCHS to broaden its scope of services.
SWOT Analysis Strengths 1. Differentiated Product Offering – Generics. Low level of strategic planning for future and also for technology forecasting. Nepotism in the organization – high degree of family interference and control. 5. NDDS. R&D and distribution. 5. . 7. Low cost innovation and high quality product flow. 3. Tarnishing reputation in the industry because of the above two issues. 8. OTC. High Cost structure related to manufacturing. and Process Chemistry Expertise. 9. Patents. research across Generics as well as Innovative Research (NCE. Strategic Alliances – GSK and Merck. 6. 2. Broad product portfolio imparting revenue stability. Legal and Compliance issues with its manufacturing facilities at Dewas and Paonta Sahib in India. Branded Gx. Manufacturing Efficiencies – Labour. Strong CSR programs contributing to a positive reputation in the industry. Niche FTF). R&D capabilities – skilled scientist pool. 4. 3. Strong presence in diverse geographies insulating business risks. 2. Infrastructure and Global Quality Standards. 4. Branded. Aggressive Marketing. Weaknesses 1.
5. 3. New markets are opening. Production of Duplicate drugs Opportunities 1. Possible leverage on Daiichi Sankhyo’s strengths. Productivity under pressure – saturated developed markets. 2. 8. Competition From MNCs 7. Growing attention for health. High entry barriers – technology and resource intensive. High entry cost in newer markets. Disruptive Technologies challenging established portfolios. Unpredictable dollar rate fluctuation. 4. Untapped high-growth emerging markets. Growing incomes. 6. Threats 1. 6. 4. 5. Ageing world population can act as a fundamental growth driver by providing increase in demand for medicines. Increased regulations on Generic Drugs in developed countries like USA. 2.6. 3. . Non tarrif barriers imposed by developed countries.
company has to make future plans in such a way that it is not repeated. Ranbaxy Laboratories Limited being a pharmaceutical company in India .Suggestion The company has incurred loss in current fiscal year. Investment plan has to be made keeping in mind the objective of the company. The company has expanded globally but the company should take care of the domestic market also.
trusted by healthcare professionals and patients across geographies • Ranbaxy is having a wide range of good product • provide good facilities to their employees • Company has achieved almost its desire goals with his hard work and unique ideas . is an integrated.Conclusion Ranbaxy Laboratories Limited. producing a wide range of quality. international pharmaceutical company. research based. India's largest pharmaceutical company. affordable generic medicines.
www.wikipedia. BERSIN & ASSOCIATE MANAGING GLOBAL LEARNING WEBSITES: .com .www. Ranbaxylab.com .www. Ranbaxy Laboratory inc.google.• Bibliography BOOKS: Ranbaxy Lab.com .
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