Sang Rose | Pharmaceutical Drug | Pharmaceutical Industry

EXECUTIVE SUMMARY

The ³Organizational Study´ for the duration of one month was an attempt to have an exposure for practical corporate world. In this duration there was a good exposure for day to day operations of an organization and connectivity between various department head or top management deals with well educated employees. Pharmaceutical Industry is playing a key role in promoting and

sustaining development in the vital field of medicines.

SANGROSE LABORATORIES PVT LTD is the only company in Kerala manufacturing the drug CLOFAZIMINE AND 3rd in India. The company plays an important role in the National Leprosy Eradication Program (NLEP) introduced by the Government of India under the aid of WHO.

1

INTRODUCTION
An Organization is a group of people who form a business, club etc together in order to achieve a particular aim .every organization has deferent functional departments like finance ,human resource ,marketing ,production ,purchase etc. Organizational study is a direct investigation about the functions and activities carried out in an organization. An organization study helps us to know in general about an organization and in particular about its different functional areas

SANGROSE LABORATORIESPVT LTD is the only company in Kerala manufacturing this drug and is the 3rd in India. The company plays an important role in the National Leprosy Education Program (NLEP) introduced by the Govt. of India under the aid of WHO. In industry profile a detail discussion about the pharmaceutical industry, its advantages in India, growth scenario, etc and in

company profile it consist of background of the company, nature of the business, vision &mission, quality policy, product profile, area of operation, ownership pattern , competitors information, achievements, work flow model.

The company has different departmental structure. Highly qualified professionals in this company have major skills like technical, financial, economical, and public relation skills. Sangrose is following a participative style of management it believes in team work. The pricing policy of Sangrose laboratories Pvt. Ltd. which is basically responsibility of the marketing department is a function basically of cost &demand factors. A method by which Sangrose pharmacy department improved its purchasing & inventory control system is described production manager is supposed to have the control over the cost of production by reducing wastage of man and materials. The staffs were very much committed for their organisation. Provision for gratuity liability is made as per actuarial valuation. The shared values of the company have a common goal and it sees that each and every person should work towards attaining this goal.

2

After the keen observation over the organization and various departments of Sangrose the following strengths, weakness, opportunities & threats are known. A good leadership network, only manufacture of Clofazimine in Kerala. Good manufacturing product certificate which is equivalent to ISO 9002 certification are the some of the strengths. The weakness is lack of efficient system analysts, advertising expense is very meager the machinaries are quiet costly maintenance involves a huge expense. Production can be in USP/BP standards good scopes of imported machines are installed are some of the opportunities facing Sangrose. Substitute product manufactured by other companies the overhead cost of competitors is low as compared to Sangrose. These are the some of the main threats facing by Sangrose.

I learn more at my internship at Sangrose than I could have ever imagined. I had the opportunity to learn more about current events in pharmacy, drug information research and production tactics of pharmaceutical companies.

1.1 OBJECTIVES OF THE STUDY

The organizational study at SANGROSE LABORATORIES PVT LTD is undertaken with certain clear cut objectives which are classified as:

PRIMARY OBJECTIVES 1) To acquire knowledge about functional as well as managerial aspects of SANGROSE LABORATORIES PVT LTD. 2) To compare theoretical knowledge with actual practices.

3

It was to make us aware about the various operations in the organization.SECONDARY OBJECTIVES 1) To understand the various departmental functions that ensures smooth running of the organization. 1. 4) To find out the various technical collaborations in SANGROSE and to check the importance and effectiveness of such collaborations. 4 . The study is mainly based on the details collected from each department.4 LIMITATIONS OF THE STUDY 1) Environment was not conducive for the study. 2) Time constraint-It was not possible to get an in-depth knowledge of each and ever work in the organization because of tight time of the selected staffs.2 SCOPE OF THE STUDY The theoretical scope of the study was aimed at covering the functional departments of the organization. 3) To find out various departmental processes carried out in SANGROSE and to know about its future plans.3METHODS OF DATA COLLECTION Data collections are of primary and secondary type. 2) To interact with managers at different levels and find out their duties and responsibilities. 5) To undertake SWOT analysis and to give suggestions if any. Each and every activities followed by the company is studied carefully with the available data. The main source of data are  Personal visit to plant  Having formal and informal interview and discussion with managers and officials at various levels  Data collected from published and unpublished sources  Organizational manuals  Department manuals  Official records 1. 1.

INDUSTRIAL PROFILE 5 .

The production value of the bulk drugs during the year 1997 -98 was 2623 and that of Pharmaceutical formulations was Rs. 49780 million. after independence. drugs and fine chemicals exports in 1980-1981.91% against last year exports. chemicals. the Indian Pharmaceutical industry is estimated to be worth $4. The Indian Pharmaceuticals industry today is in front rank of India¶s science ± based industries with wide ranging capabilities in the complex field of drug manufacture and technology. drugs intermediaries.e. capsules. To day India is in position to meet 70% of the countries requirements of drugs and almost all the demands for formulation. tablets.68% during the year 1997-1998 against the previous year. medicines ready for consumption by patients and about 350 bulk drugs i. The modern Indian Pharmaceuticals industry is laid¶s its foundations in the beginning of the previous of century in 1901.46 crore worth of Pharmaceuticals. These units produce the complete range of Pharmaceutical formulations i.5 billion. There are about 250 large units and about 8000 small scale units. pharmaceutical formulations. a rise of 11.e. A lightly organized sector. growing at about 8 to 9 percent 6 . chemicals having therapeutic values and used for production of Pharmaceuticals formulations. The exports of the during the year 1998-1999 were Rs. which form core of the Pharmaceuticals industry in India. orals and injection. From a meager Rs. a small factory known as the µBENGAL CHEMICAL AND PHARMACEUTICAL WORKS¶ was established in Calcutta. The production of Pharmaceuticals in India increased by 13.Pharmaceutical Industry: Pharmacy is the art and science of preparing and dispensing medication and the provision of drug related information to the public. Pharmaceuticals exports has risen to approximately Rs. INDIAN PHARMACEUTICAL INDUSTRY The Pharmaceutical industry in India meet around 70% of the countries demand for bulk drugs.6152 crores . India took some steps to strengthen its drugs and Pharmaceuticals field.12068 cores.

which accounts for merely 1.260 billion in the financial year 2002. Over 20000 registered Pharmaceutical manufactures exist in the country. imports were Rs.annually. The Pharmaceutical industry. price control.87 billion. Technically strong and totally self-reliant. industrial licensing for most of the Drugs and Pharmaceutical products has been done away. The domestic Pharmaceutical industry out put is expected to exceed Rs.1 billion Pharmaceutical industry is growing at the rate of 14% per year. It is an extremely fragmented market with severe price competition and Govt.210 billion (79%). quality and range of medicines manufactured. bulk Drugs will account for Rs. innovative scientific manpower. It ranks very high in the third world. Manufactures are free to produce any Drugs duly approved by control Authority. In terms of technology.3 % of the global Pharmaceutical sector. low R&D costs. remaining Rs. In the financial year 2001. strength of national laboratories and an increasing balance of trade. with its rich scientific talents and research capabilities. It is one of the largest and most advanced among the developing countries.20 billion while exports were Rs. the Pharmaceutical industry in India has low costs of production. THE GROWTH OF THE SCENARIO India¶s US$ 3.000 registered units. Following the de-licensing of the Pharmaceutical industry. STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product mix for sustained future growth. The Indian Pharmaceutical sector is highly fragmented with more than 20.54 bn. Of these. Core competencies will play an important role in determining the future of many Indian Pharmaceutical companies in the post product patent regime after 2005. (21%) and formulation. The leading 250 Pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. supported by Intellectual Property Protection regime is well set to take all the international market. It has expanded drastically in the last two decades. 7 .

co-marketing and licensing agreements Indian Pharmaceutical industry whose output exceeded US$ 4. 10. 6. will have to increasingly look at merger and acquisition options of the either companies or products.Indian companies. improve their R&D efforts and improve distribution to penetrate markets. 7. in an effort to consolidate their position. Indian companies will have to refocus and invest heavily in R&D. 8. 5. this industry is expected to grow at rates nearly 200% higher than the global market in the near future. DR. TOP TEN PLAYERS IN MARKET 1. However. R&D has always taken the backseats amongst Indian Pharmaceutical industry. This would help them to offset loss of new product options. The Indian Pharmaceutical industry also needs to take advantage of the recent advances in bio technology and information technology. The future of the industry will be determined by how well it markets its products to several regions and distributors risk.3 billion in fiscal in 2000 is one of the fastest growing markets in the world. the industry accounts for less than 2% of the global market. it¶s R&D. In order to stay competitive in the future. its consolidation through merger and acquisition. In terms of value. 4. it forward and backward integration capabilities. 2. 3. 9. REDDY·S LABS CIPLA RANBAXY LABORATORIES GLAXO SMITHKLINE SUN PHARMACEUTICAL INDUSTRIES CADILA HEALTHCARE PFIRE WOCKHARDTH NOVRTIS INDIA AVENTIS PHARMA DIFICULTIES/DRAWBACKS OF THE INDIAN PHARMACEUTICAL INDUSTRY 8 .

COMPANY PROFILE 9 .

LTD is the only company in Kerala manufacturing this drug and is the 3rd in India.In this company very beautiful location and calm atmosphere and better environment for manufacturing process. in Kerala State.B. Recently SANGROSE LABORATORIES PVT. marketing of medicines manufacturing for other companies medicine (order base) The company plays an important role in the National Leprosy Education Program (NLEP) introduced by the government of India under the aid of WHO. 1956.T) and is also used for the treatment of T. So good location is necessary . Climate condition. and Aids patients. manufacturing. LOCATION AND IMPORTANCE OF GOOD LOCATION Location is the important factor of promoting manufacturing and business. Kollakadavu in Vettiyar Village Mavelikara Taluk in the notified Industrial Backward district Alleppy. The Company provides exporting.COMPANY PROFILE SANGROSE LABORATORIES PVT.D. The Commercial production of the basic drugs µCLOFAZIMINE¶ was started in the year 1989 CLOFAZIMINE is the main Drug recommend big world health organization (WHO) for the treatment of leprosy under its Multi Drug Therapy (M. 10 ..LTD was incorporated in the year 1987 as a private limited company under the Indian companies act. SANGROSE LABORATORIES PVT. transportations facility. and availability pf employees. Bombay. frequent supply of power.LTD. The company register as a small scale industry with the main object of manufacturing Basic Drugs is located in the industrial Estate. It means availability of raw materials. The company is having branch office in Piramal Nagar. is developed in our manufacturing and Services. The other two being multinational competition is avoided by maintaining the quality of the product.

But the company intends to convert it into a high tension connection of 250kva by installing its own transformer. one of the oldest industrial estates of kerala in Alleppy District. The industrial estate has well connection internal roads with access to the main roads. the basic infrastructures required for the company is easily available at the industrial estate and the company does not envisage any difficulty in availing them. The company is allegeable for all incentives offered by the state government like subsidy. The company already has a low tension connection of 100kva. sales tax exemption etc. In addition to this the company has dug wells in the nearly private land in the possession of the company. The nearest railway station is just 5km away and the national highway is 15km away.Ltd is ideally located in the Kollakadavu. The water supply is also available to the company. The quality and plenty of water at reasonable depth is very good. Factors affecting the location of sangrose The location of a plant is determined by a number of factors. The factory is located near the river achenkoil. The industrial estate has its own water supply system.LOCATION OF SNGROSE The Sangrose Laboratories Pvt. Industrial Estate. They are  Availability of raw material  Power &fuels  Transportation  Markets  Meteorological conditions and geography  Labour  Supplement and complimentary industries  Banking  Local taxes  Water  Momentum of costly start  Personal factors 11 .

Ltd y y y y AMINO COMPOUND ACETIC ACID METHANOL GLYCERIN SORBITOL ISOPROPANOL y y y METHYLSALICYLATE y CARBONTETRA CHLORIDE 12 . The manufactures should therefore see that input is in continuous supply. Political stability  State assistance  Waste disposal  Commercial services  Communication  Attitude of local people  Availability of amenities  Price of land or place LAYOUT AND DESIGN OF THE FIRM Sangrose Laboratories Pvt.LTD main raw materials is a chemical. The manager should take all the steps to provide the supply of input. In SANGROSE LABORATORIES PVT. The factory also has campus area for smooth working SOURCES OF PRODUCT The product shall be the main ingredients of any manufacturing unit if the input is in abundance the production process will not suffer. Following are some of the important raw materials used in Sangrose Laboratories Pvt. All the machines and tools are of good quality and are in good working condition.Ltd is fully equipped with plant and machinery that are necessary for manufacturing 18 tons basic drugs per annum and 10 lakhs capsules per shift.

a postgraduate in business administration is well experienced in funds management. The unit was setup as small scale industry. 13 . He is also having three years experience in research and development process know how for a number of life saving drugs Mr.The finance director. He was the joint managing director of m/s earnest health care limited and director of ethic pharma laboratories private limited. The managing director is at the powers to makes decisions for smooth running of this company. Brief history Sangrose Laboratories Pvt.C. The authorized share capital of the company is 24000 equity shares of Rs 100 each.ALEXANDER is a postgraduate.K Alexander as the managing director. He formulates all process and rules and regulations. Thomas Samuel: . marketing and financial skill are required.Ltd was incorporated in the year 1987 as a private limited company under the Indian companies act. He also coordinates and control the management function and fixes responsibility and has this field has resulted in the rapid development of this company. TECHNICAL BACKGROUND OF THE PROMOTERS Managing director MR. George Mathew:-with three year experience in a chemist in Bombay is a senior manager in international Airlines for the last ten years. George Mathew with Mr.Ltd was in corporate in 1987 under the companies act. Mr. 1956. Thomas Samuel and Mr. 1956. The sound financial health of the company proves his expertise in the filed.ORGANIZATION AND MANAGEMENT Sangrose Laboratories Pvt. approved manufacturing and quality control chemist.K. C. he is having 25 yrs experience in pharmaceutical industry of which 10 yrs is in top level management in developing and implementing project where administrative technical. The present directors of the company are Mr.

The Commercial production of the basic drugs µCLOFAZIMINE¶ was started in the year 1989 CLOFAZIMINE is the main Drug recommend big world health organization (WHO) for the treatment of leprosy under its Multi Drug Therapy (M.Excellent teamwork.The company register as a small scale industry with the main object of manufacturing Basic Drugs is located in the industrial Estate.Care for customers. exclusively for the sale in Nigerian Vision ³The vision of the company is to become a leader in the Indian pharmaceuticals industry and a significant global player. providing customers delight and enhancing shareholders values´. a combination of ginseng extract with minerals and vitamins.Trust mutually. in Kerala State. The company is having branch office in Piramal Nagar.  E. Kollakadavu in Vettiyar Village Mavelikara Taluk in the notified Industrial Backward district Alleppy. 14 .  A-Always learning.  R. Thus incrementing the product range of Basic Drugs µCLOFAZIMINE¶ with soft capsules of µCLOFAZIMINE¶ itself.B.  T. Besides the expansion a diversification was also undertaken where by the soft gelatin capsulation plant was setup.Respect for associates. Bombay.D.  E. CORE VALUES  C.Ethical practices. and Aids patients.T) and is also used for the treatment of T. In 1994 the capacity was enhanced from one ton to 18 ton per annum. Recently agreement was entered in to with Nigerian company for the manufacturing of µGLOVITE¶ capsules.

textiles. export and to deal in pharmaceuticals. HIGHLIGHTS OF THE COMPANY y Nominate as the best small-scale industry Alleppy District consecutively for 3yrs and forth in the state. y The firm has been closely associated with national leprosy eradication program of Govt of India by being the supply of µCLOFAZIMINE¶ for the past five years. import. In the pharmaceuticals. y y Selected as one of the best entrepreneur of the state. sell makes research. produce. their intermediate including sophisticated item oils. clinical. cosmetics. injection. y y To manufacture. industrial and other preparation and articles compounds drugs and dealers in chemicals surgical and scientific apparatus and material. laboratory and scientific chemicals used or capable of being used. pathological . export or otherwise deal in Basic Drugs Pytho chemicals. agriculture. tablets capsules and in any such other forms of human as well as animal use. 15 . y Supplying capsules and tablets as per the order required from government and central purchase committee.formulate bye sell. petro chemicals or any mixtures deviates and compound there of. the agency based on growth expansion and prompt repayment. produce. chemicals. medicine preparation.OBJECTIVES OF THE COMPANY To manufacture. dyes pesticides. dyes pesticides and their immediate. druggists importers and manufactures of and dealers in pharmaceuticals. y To carry on the business of chemicals. drugs. distribute. medical chemical. plant extracts. refine process . Gold card member of kerala financial corporation. y Runner up for the management excellence award of Berchmans institute of management. orals. fertilizers. syrups.

The products basically capsules have captured the entire market in kerala because they seek the help from central purchasing committee. Currently they don¶t have tough competitors as they bench mark their product with of the national level manufactures.H.Present status Since this is only company manufactures µCLOFAZIMINE¶ in kerala they have total market share aboard. CLOFAZIMINE Basic drug manufacturing for the treatment of leprosy as recommend by W.) CEFOZ REJUVEN y y y y y y 16 . they rank 3rd in India. As mentioned before. D is used for dye and calcium form Black cumin seed oil GLOVITE NIFEDIPINE (For the Treatment of High Blood Pressure.O. Capsules Vitamin A. Now day¶s lots of promotional activities are on the move there fore better publicity and reduce the competition. PRODUCT PROFILE 1. They enjoy complete monopoly by beating the upcoming manufactures. 2. under its multi drug therapy is also for the treatment for TB and AIDS.

NOVEAU MEDICAM. ABL BIO TECHNOLOGIES. COCHIN 5. BENZOR PHARMA. NOVA MILLENNIUM PHARMA. HOUCHE REMEDYS. CHENNAI 4. THRISSUR 6. ENKA HEALTHCARE DELHI 17 . CHENNAI 2.y y y y y PARACETAMOL PAINKILLER SALBUTAMOL ERYTHROMYCIN RANTIDINE TABLET These are targeting the local as well as national customers 1. CHENNAI 3.

HUMAN RESOURCE MANAGEMENT 18 .

It is one of the important factors of production. It is this Human Resource that is the paramount importance for the success of any organization may be a manufacturing.HUMAN RESOURCE MANAGEMENT The principal component of an organization is its µHuman Resource µ. a Government agency Social organization or Religious trust. a business concern. an insurance company. HUMAN RESOURCE DEPARTMENT HUMAN RESOURCE DEPARTMENT PUBLIC REALTION OFFICER WELFARE OFFICER 19 .

5. FREE LUNCH AND REFRESHMENT For the normal working hour no lunch of refreshment is provided but if the employees are working more than normal working hours. Following are some of the important Labour welfare facilities are undertaken by the organization. BONOUS The company is paying is 20 % bonus to the workers during the financial year. TRAVELLING ALLOWANCE Traveling allowance is given by the organization it is for office purpose only. coffee is provide twice in a day. In Sangrose bonus is paid more than the rules of payment of bonus act. then free lunch of Refreshment are provided. INSURANCE BENEFITS In Sangrose all employees are covered under employee¶s state insurance (ESI). VEHICLE FACILITIES The basic creation for determines the vehicles facilities are the need of the employee to the organization and his contribution to the organization by providing the vehicle it can an employee really contribute higher to the organi zation. 1.LABOUR WELFARE PROVIDED BY THE COMPANY Labor is an important element of any organization contributes much to the or face of the organization. 2. The workers can be satisfied by the provision of various facilities. According to the act even if the firm in curse loss minimum bonus of 8. So hence no traveling allowances are given for coming to the office. Beside that employees are covered by a special group insurance policy of normal insurance company.33% of the total wages as to be given to the workers. 3. Vehicle facilities will be given. Hence it is very important to keep the workers always satisfied. which is more than 9 hours a day. 20 . 4. Attending to the office every day is not considered as office purpose.

In Sangrose gratuity is paid according to the rules of payment of gratuity Act. Besides that the company arranged annual medical check up for all employees.6. 21 . The organization is bearing all the module expenses. Mask. GRATUITY Gratuity is an amount paid to an employee on his retirement or death in appreciation of his post sources in organization.If all the employees work hard and given their whole hearted co-operation than only an establishment will have 1 op and run smoothly. It an employee full 175 or meats with accident etc. The factory is tally equipped with fire fighting equipment training are given to all employees to operate the firm fighting equipment. generally 12% of salary is deduction and for which the amount will be contributes by the management. gloves etc for materials handlings. 7. The company is having provident fund scheme which employee and employee contributes equally. PROVIDENT FUND SCHEME. In Sangrose Laboratories workers (Chemists. MEASURES TAKEN BY THE MANAGEMENT FOR WORKER SAFETY Employees are asset of any firm. and Assist Chemists and Lab Assistant) who are production department in provided with aprons. 8. They are just like the heart of the human body . This type of scheme will helps to increase the satisfaction of employees that as they will get lump sum amount while living the job. MEDICAL FACILITIES The organization is also having provision of module facilities.

22 . c) Consult In The potential job sackers approaching personally so Consult Sangrose regarding the jobs. d) From Surrounding Place The working staying nearby the organization is been given priority whenever they need unskilled workers.SOURCES OF RECRUITMENT IN THE COMAPANY a) Advertisement In Sangrose they use d Direct Advertisement method through newspapers and magazines. time so at a specified place. This direct method is advisable as applicant get on idea about the organization b) Employee Reference The workers introduce their friends and relatives having good knowledge in the field. The company selects the suitable candidate from among rich candidate through selection process. The suitable candidate from among the interviews will be selected for appointment after screening the candidate through test so interviews. This hill is taken into Consideration while the emergency of workers needed in the Organization. f) Walk in Some times the Sangrose company advise the potential candidates to attend for a interview directly is without a prior application or a specified date.

When a candidate is found suitable before he is given appointment a medical test is taken to see that he does not suffer from any diseases. 23 . The recruiting officers put questions to the candidates on various topics and judge their ability to suitability. interview so medical test in the selection procedure. In Sangrose Laboratories the new works are put to work with the experience worker.SELECTION PROCESS Selection either internal or external is deliberate effort of the organization to select a fixed number of personnel from a large number of applicants. It varies from one to another depending on the situation and needs of the organization. how worker learned form experienced workers gives him necessary instruction. This method is useful where an experienced or skilled worker requires helps. Application bank will help the company to learn an applicant¶s bank growing so life history. After study of the application bank they select the qualified applicant and call them for interview. The primary aim of employee selection is to choose those persons who are most likely to perform their jobs with maximum effectiveness so and to remain with the company. In sangrose laboratories follows direct training method to the employees. After medical test candidate found suitable for the jobs are given appointment. It is application of knowledge it gives people an awareness of the rules and procedures guide their behavior. Therefore Sangrose Laboratories they involved application balance. The selection pattern however is not common for all organization. TRAINING Training is a process of learning a sequence of programmer¶s behavior. It attempts to improve their performance on the current job or prepare them for an intended job.

ENTRY AND EXIT The security section regulates the entry and exit of the personnel and material to the factory. Proper care has been taken to avoid accidents of any nature since the managing director himself is easily accessible to workers a good labour manage relationship exists in the firm and hence there is rest single include of labour dispute in the history of Sangrose Laboratories. Out Pass systems is also their.PAYMENT OF WAGES AND SALARY All employees of the company are paid per day to the pay µscale µworkers are paid per day wage so staff is paid monthly salary. There exist a well maintained relation between employer and employee. The management and the employees jointly find the solution for the problems. In case of materials. INDUSTRIAL RELATIONS A good industrial relation is existing in the organization. WORKING CONDITIONS AND FACILITIES The firm maintained good working conditions working surroundings are hygienic and important is given to maintain the cleanliness. 24 . were the INS and OUTS are recorded by the security officer at the gate. gate pass is necessary for both entry and exit. Employees have been provided with adequate and spacious rest rooms.

and Aids patients 25 . A complaint becomes grievance when this dissatisfaction. whether it is innate and unexpressed or explicitly expressed.D. In sangrose laboratories their is no grievance. GRIEVANCE Generally speaking.TRADE UNION In sangrose laboratories there is no trade union. because there exist a well maintained relation between employer and employee. A dissatisfaction which is orally made known by one employee to another is known as a complaint.T) and is also used for the treatment of T. which is mostly related to work.B. MISSION STATEMENT OF THE COMPANY Mission of the company is for the treatment of leprosy under its multi drug therapy (M. is brought to notice of the management. dissatisfaction is any state or feeling of discontent. because there exist a well maintained relation between employer and employee.

PRODUCTION DEPARTMENT 26 .

PRODUCTION DEPARTMENT PRODUCTION DEPARTMENT BULK DRUGS DEPT CAPSULATION DEPT PRODUCTION CHEMIST PRODUCTION CHEMIST ASSISTANT ASSISTANT CHEMIST WORKERS LAB ASST WORKERS PRODUCTION DEPARTMENT Product system consists of input at one end and the output at the other. The input and output are connected by a series of operation or process storage so inspections. 27 .

Some of the licensed products are as follows:y y y y y y y y y y y y y y y y Basic Drugs ± CLOFAZIMINE. Capsules ± Vitamin A+D CLOFAZIMINE Black Cumin Seed Oil GLOVITE NIFEDIPINE CEFOZ REJUVEN ALPRAZOLAM PARACETAMOL ATENOLOL BRUFIN PAINKILLER SALBUTAMOL ERYTHROMYCIN RANTIDINE TABLET MACHINERIES The various types of machinery and equipment are necessary for the production of medicine . y y y y SS Reactor with condenser MS Rubber Lined Reactor SS Reactor MS Glass Line Reactor 28 . The plant basically requires the following machines.The plant is equipped with machinery to produce 1500020000 kgs basic drug (CLOFAZIMINE) per annum so 20 lack capsules per shift.PRODUCTION IN SANGROSE The Sangrose laboratories are producing Basic Drugs and Capsules.

29 .. 1. Power and fuel In Sangrose Laboratories electricity is used as power 90 is required for working machines so lighting facilities. 2. In Sangrose Laboratories put limited put ltd. Raw materials The man requites the medicine processing is chemicals. Water The company has pay well in the near by private land in the possession of the company. But the company intends to convert it into a High tension connection of 250 KVA by installing its own Transformer. The company has low tension connection of 100 KVA. The Panchayath water supply is also available to the company. In addition to this the industrial Estate has its own water supply system.y y y y y y SS Centrifuge Rubber Lined Centrifuge Multimill (Hammer type) Soft Capsulation machines Gelatin Cooking Vessel Capsulation washing equipment PRODUCTION REQIUISTIES To run the plant smoothly so continuously it requires adequate supply of Raw materials. Electricity and water. 3. the most important raw materials Amino compound and it is purchased from Baroda.

PRODUCTION PROCESS RAW MATERIALS MIXING ENCAPUSULATION WASHING DRYING (2-3 hrs) WASHING PACKING DISPACHING PRODUCTION PROCESS. is a medicine manufacturing company. The Managing Director MR.C.K 30 . Sangrose Laboratories Pvt. Ltd. As it has got its own formulas the production process is to be kept secret. It will not disclose even with the employees of the company.

Is the key factor behind the formulation of the medicines. A well defined treatment system has been evolved for the treatment of effluent Generated from the manufacture area. 31 . When a sufficient quality is obtained it is to be sold to the consultants of the company for neutralizing the alkaline effluents of other industries. The treated water is used for the cultivation of land. who is the chief chemist in the production unit. PACKING Firstly the Bulk Drug will filled in plastic bag then put it into the metal drums and sealed.ALEXNANDER. EFFLUENT TREATMENT PROCEDURE Row Effluent:The Row Effluent being very little in quantity is collected a Rubber lined concrete tank heated and aerated to concentrate. Ltd about 15% of its total capital outlay is for environmental protection. EFFLUENT TREATMENT The environment is considered as a gift preserved for the future generation our right is only to protect if not to destroy it. A continuously monitory system has been set into ensure that no harms done to the environment other than daily internal monitoring an external agency has been appointed for a monthly counter monitoring of the System. The Drug packed metal Drums contains 35 kg capacity and capsules are packing in Blisters. The Effluent treatment plant has a capacity to treat appointed for a monthly counter monitoring of the system. The Effluent treatment plant has a capacity to treat 6000 litters per day both chemically and biologically. In Sangrose Laboratories Pvt.

Production planning and control is the planning and organization of the manufacturing process and co-ordinates the series of function. 32 . The filtered liquid is collected in hopper bottom secondary setting tank. The dried mass is permitted to be used as a land fill by the pollution in Drums and kept sealed for incinerating they will be incinerated. The Effluent is pumped into a mixer come flocculation tank.5 acres of agricultural land for irrigation as permitted by the pollution control board. PRODUCTION PLANNING AND CONTROL Production planning and control are two main aspects of production management. a senior assistant manger and an assistant manager are in charge of the day to day activities of the department. Where liquor ammonia or lime is added for neutralizing. From the secondary setting tank it is pumped into another creation tank and biomass is added. From the secondary setting tank. There are above 106 people working in the Company who are regularly subjected to medical examination by qualified medical practitioner as per the direction of Drugs controller of Kerala and so far no case of any contagious or other diseases are reported. Production planning and control is an important department of the company.Wash Water:The wash water form the production area is collected a separate Rubber lined tank for treatment. headed by the senior manger. The clear overview form the location tank and the filter bed are pumped into on aeration tank where the clear liquid is generated and then passed into a carbon filter bed to absorb and then passed into a carbon filter bed to absorb any remaining organic matters. After sufficient creation the over flow passed into clarifier where any suspended biomass is collected into be sludge put and the clear water is directly passed 3.

so that the problems of over and under stock of materials may not arise. Supplies.P/B. INVENTORY CONTROL Production manger is supposed to have the control over the cost of production by reducing wastage of man and materials. route card and loading schedules. For these purpose. So he is to make the best use of materials. economic order quantity. is determined the economic lot sizes. In Sangrose Laboratories Raw materials are stocked for about 3-6 months due to the seasonal fluctuations. BASIC DRUGS I.Raw Materials. This involves the physical and financial control of materials. re order levels . finished goods are marketed immediately because of the high demand for their product. Follow Up: .P that are ready for sales. stores and spares are maintained to avoid sporadic break downs. y y Loading: . Working in Progress and finished goods. 33 . y Dispatching:-sets the productive activities in motion through release of order¶s and instructions according to timings given in operation sheets.working in progress are the raw materials (chemicals) open which work has been performed. In Sales. Raw materials for Sangrose Laboratories are chemicals which are held for processing and production .ensures that the necessary instructions have been followed in their right spirit and necessary materials and tools are made available to workers.refers to work load against a machine or a worker. Thus is to arrange procurements of raw materials. Scheduling:-determines the time of starting and completion of various operation to be performed.The elements and functions of Production planning and control are the following:y Routing:-determining the route part for the movement of manufacturing lot through factory. Finished goods are CLOFAZIMINE. Inventories may be classified into four classes: .

Sangrose Laboratories their carrying cost is 1% per month. c) Carrying Cost Carrying cost refers to the cost of keeping the materials in the stores house keeping the materials in the stores house. It refers to as the size of the order that gives maximum economy in purchasing the materials.Objective of inventory control Fundamental objectives of a good system of operating control of inventories to be able to place an order at the right time from the right source price and of right quantity. Economic Order Quantity is the inventory level which minimize the total or ordering and Carrying Costs. b) Ordering Cost Cost of placing an order and securing the suppliers. Techniques:a) Economic Order Quantity. 34 . In Sangrose Laboratories the order for chemical is 3% on every order.

QUALTITY CONTROL DEPARTMENT 35 .

machines and manufacturing conditions.QUALTITY CONTROL DEPARTMENT QUALTITY DEPARTMENT QUALTITY CONTROL CHEMIST JUNIOR CHEMIST LABORATORY ASSISTANT QUALITY CONTROL DEPARTMENT Quality of a product depended upon the application if material. So the cost of manufacture reduces. Importance of a Quality control These are many importance by controlling the product Quality. Scrap rejection or rework are minimized those reducing wastage. Some of them are listed below 1. Quality of product is improved which in turn increases sales. men. 2. The systematic control of these factors is the Quality control. 36 .

Production method $ Production Design Apart from poor packing. Money (Capability to invest) 3. In Sangrose Laboratory Pvt. Raw material analysis 2. 4. Uniformity in manufacturer knowledge engineers.Electronic PH meters digital electronic balance etc. which affect the product quality. These are 1. Inspection cost reduces to a great extent.Ltd.. Finished Product Analysis The quality control Laboratory functioning in the company has sophisticated equipment like U. Improvement in manufacturer and customer relation. material machine of manufacturing condition those are some other factors. 5. The qualified of approved chemists and pharmacists working the company ensure quality to the product 37 . 7.Disintegration testing equipment dissolution testing equipment . Improvement in technical knowledge engineers data for process Development of manufacturing designs.V Spectrophotometer . Management (Management Packing for quality levels) 4. in appropriate transportation of poor after sales service are the areas that can cause damage to company quality image. Factors Affecting Quality In addition to men.3. the quality control department uses the following quality control measures 1. Market Research (Demand of purchase) 2. A good Quality product improves Reputation. 6. In process analysis 3.

QUALITY PLEDGE We the people of Sangrose limited will create an enterprise committed to quality.QUALITY CONTROL TECHNIQUES  Problem selection. We shall create in Sangrose Limited a company of people who enjoy working as a team and with our customers to create the superior and distinct product and services.  Data collection  Cause and effects analysis.  Brainstorming. We will aim to generate customer¶s enthusiasm through continuous improvement in our product and services. QUALITY CONTORL POLICY OF SANGROSE LABORATORIES VISION It is our vision to cherish and nurture Sangrose laboratories .  Line graph.in the position of a leader of the pharmaceuticals in India. ever expanding and profitable and in constant persist of customer satisfaction. who is also recognize and respected as a manufacturer of world class product. 38 . We are committed to excellence in the way we work together with in the organization as well as out side aimed at total customer satisfaction. Focused fast and flexible we seek never ending improvements in order to create an enterprise that is dynamic. it is our policy to design manufacture and service our products to provide level of products of quality and value that meets customers need.

39 . Apart from weakly checkup for Machineries in the processing department is carried out. major repairs are carried out by the maintenance departments. ELECTRICAL MAINTENANCE Electrical maintenance section is headed by electrical scheduled maintenances is carried out . The cost of maintain is calculated on the basis of maintain hours spend and the reports is submitted to the account departments on a monthly basis. Description of Planned Preventive Maintenances Programme.  Individual maintenance manuals are kept for equipment and any servicing or replacement is dully recorded. In addition to this lathe and welding work is also carried on. MECHANICAL MAINTENANCE The mechanical maintenance department or sectors is headed by the mechanical maintenance head. One supervisor and some helpers assist him. Usually scheduled maintenance is carried out. maintenance of engineering Department deals with the mechanical as well as the electrical maintenance even through production department has their own set of inspection of maintenance supervisors.  All equipments are cleaned thoroughly before and after production.The inspection and report of all electrical systems and within the factory is carried out by the electrical maintenance section.  At regular periods machines are reassembled and service like lubricating is also done.MAINTENANCE AND ENGINEERING DEPARTMENT In Sangrose.

PURCHASE DEPARTMENT This department is in change of all purchases connected to the company. the buying function is given to a separate department. To purchase at right time 3. The over all stores department is under the management of purchase department ACTIVITIES OF THE PURCHASE DEPARTMENT The department is responsible for the procurement of the required material as well as issuing the items to the different departments according through its structures development. In small factories this function is performed by works manages but in large manufacturing concerns where large qualities of materials are consumed. However. To purchase economically. Right from stationary to plant materials. it usually makes estimation as to when referring to the stock ledge or that is submitted to the manager every month needs the requirements for local purchase that 40 . Objectives The main objectives of purchasing department are: 1. To purchase required products of light quantity 2. Stationary fall under general stores. To purchase from a reliable supplier 4. PURCHASING PROCEDURE The purchase department receives a recursion of the amount required in the plant in case of items needed for production process through the stores department. To purchase in right quantity 5.PURCHASE & STORES DEPARTMENT The importance of the purchasing function varies with the nature & size of the industry.

Inspection of the purchased item for quality to quantity is made. STORES DEPARTMENT STORES DEPARTMENT STORE MANAGER STORE IN CHARGE STORE KEEPER STORES DEPARTMENT All items used in the plant of finished products are kept in the stores. Finished product 4. 41 . It is divided in to four sections namely. They are stocked on metallic racks the packs. Chemical 2. Incase the items is not big in size for large items. After the items have been inspected and verified they are stocked in bins or cupboards. Packing materials 3. General RECEIPT PROCEDURE A purchase indent is made depending on the stock position.is for those items that can be purchased locally local Indent is made by the purchase department & send to the supplier. 1.

Am to 5.45 Am.00. 1.pm to 2.Pm to 7.30.Pm. 10. 3.Pm.30.00. ISSUE PROCEDURE: The issuing of materials is done on F1F0 basis. These particulars on the stores ledger are entered into the computer.Orders received are then entered in the Register followed by the stock receipt.00.Am. This is entered in the stores ledger.Pm.Pm. The particular on the stores ledger are later entered in the computer for their cases access in case the records have to be referred as a later date.15. 9.30.Pm to 1.15.Pm.Pm to 3.00.00. 42 . 7.Pm.30.Pm to 12.30. SECOND SHIFT Second shift Break time Meals break Break time : : : : 5. y y y rade Hours worked Scheduled Shif WORKING HOURS FIRST SHIFT Office and general shift Tea break Lunch break Tea break : : : : 9. 11.30. Am to 10.45. After the materials are issued its particular are entered on the stores ledger.00.Pm to 9.

MARKETING DEPARTMENT 43 .

C. which means trade. ware. It is also a skill of selecting and fulfilling consumer desires in such a way that a certain quantity of money put in brings back maximum return. It can also be defined as those activities through which human wants are satisfied by exchanging goods and service. It is the market that provides a basis for marketing. place and possession utilities. In the word of ³C. traffic or place of business. It is the sum total of all those activities which are related to the flow of goods from the point of origin to the point of consumption or use. Marketing is gigantic machinery that creates a bridge between producers and consumers and makes the good move by creating time. it means a certain place where goods are bought and sold.knight ³ marketing embraces all efforts made in the discovery of consumers actual and potential requirements for commodities and services and the steps taken for securing their actual distribution.MARKETING DEPARTMENT MARKETING DEPARTMENT MARKETING MANAGER STAFF OFFICIAL MARKETING DEPARTMENT The term ³market´ is divided from the Latin work marketers. Marketing is an economic process by means of which goods and services are exchanged and their values determined in terms of money prices. It is the sum total of all those activities that are related to the free flow of goods from 44 . In short. merchandise.

The target is growing to 20-30 percents. Some of the market leader¶s antifungal is zockon. the company have a depots and also have stockiest and carry forward agents. antioxidants for sun protection. regional manger and marketing manger. this scope of marketing includes all these activities in discovering the potential requirements of consumers for goods and services and is distributing them from producers to the consumers. MARKETING DEPARTMENT OF THE COMPANY In the earlier chapter already mentioned that the company has two types of product. recognition. The discount structure of the company is 20 percent to retailers and 10 percents to stockiest. Some of the brands are antibiotic.01 percent. antitoxin. Getting some one to buy that product is the main objective. vitamin E. antifungal.points of production to points if consumption. basic drugs and capsules. Every product is in introduction stage. Thus. deepickmentory agent for skin ageing. They motivate their sales man by incentives. The structure of the company is as field sales executives. awards etc. Bulk drug manufactured by the company is exported to Switzerland with the help of foreign company named ³NOVAT IS´ the products are sold by SANGROSE LABORATORIES PVT. In Sangrose Laboratories there are 25 brands. The total selling force is 10 peoples. The capsules are supplied to central purchasing committee of Govt of India through tender.LTD in Switzerland in the name of Novatis. The collection system of the company is 60 days time duration. The meeting of the company with the bosses and the subordinates is once in a month. Turning out a product is not an end itself. antioxidants. 45 . Control is been exercised by the administrative control. Positioning of some products are antifungal for soft gelatin capsules. The market share of the each product category is less than . Black cumin seed oil capsules are also exporting to Srilanka.

46 . the price of the medicine products as compare with the quality. Price denotes the value of the product of service expressed in money.Ltd. The price charged must be enabling the Sangrose Laboratories products to recover the cost of production and also earn a reasonable margin of profit. Advertising is employed to promote bright image of the firm in the society. From the point of view the consumer. Invines Laboratories etc. In abroad sense. distribution and consumption of goods. PRICING POLICIES Pricing is the marketing function whose importance is acknowledged even more easily than that of other functions. allocates the economic resources for maximum production and distribution. Thus it is the prime regulator of production. such as demand for the product. It constitutes a mass approach contrary to the limited approach in the salesmanship of the salesman. is a function basically of cost and demand factors. quantity and package offered by Sangrose Laboratories determines weather he will consider buying the product or not. Every marketing plan involves pricing decisions and hence price is a powerful marketing function. In the case of other drugs they face little competition from Lark Laboratories. ADVERTISING The term µadvertising¶ is derived from the Latin word µadvert era¶ that means to µturn the mind to µ. completion and other existing market conditions. anything that turns attention to an appeal made to a large number of people.Competitors:The company enjoys monopoly position in the production of the Basic Drugs µCLOFAZIMINE¶. It regulates business profits. Decisions on pricing are taken on the basis of various factors influencing price. The pricing policy of Sangrose Laboratories Pvt. which is basically responsibility of the marketing department. acceptance of product.

47 . application and dissemination of materials and techniques that supplement advertising and personal selling. In present days sales promotion activities are viewed more from the angle of an investment in business rather than expenditure it is an necessarily and not merely a luxury or a fashion. The sales management is a term applied to the process of distributing the goods form the producer to the ultimate user or consumer. SALES MANAGEMENT The sales function of a business is basic function particularly in a commercial concern that is whole sale or retail trade. its pattern of organization and the financial and personal problems. Sales promotion undoubtedly days rich dividends in the long run. The volume and the value of sales and consequent margin of profit ultimately govern the size of a business. advertising and sales promotion. The other two being multinational competition is avoided by maintaining the quality of the product.The Sangrose Laboratories Pvt. The firm has advertised its product effectively and adequately. It is concerned with the creation. The company concentrates only in institutional or good will type advertisement. Its importance can be judged from its ability to create demand. Institutional advertising is designed to promote an idea or the name of the company in the eyes of public. transportation handling. captivate demand from rivals and maintain demand for their products even against keen competition. SALES PROMOTION Sales promotion is an important marketing strategy.Ltd is the only company in Kerala manufacturing µCLOTAZIMINE¶ and is the third in India. It covers selling. It is responsible for awakening and stimulating consumer demand for a product. This can easily be judged by the reputation enjoyed by its products both in domestic and international market. financing and risk taking. Sangrose Laboratories expense on advertising is very meager that does not mean to say that the company has compromised on advertising.

Sangrose Laboratories sales planning is initiated by laying down the objectives desires to be achieved. objectives. Therefore the company is having local customers and international customers. Given below are the customers of the company 1. The picture of sales program in connection with the launching of sales campaign in future is based on objectives. sales programmers to achieve sales goal and marketing planning covers sales forecast. and control and applied those sales management for securing better performance namely reasonable profit through service. The firm has successfully coordinate activities such as planning. policies and procedures. sales programmers to achieve sales goals and marketing future course of action regarding the marketing and selling of a product. Ltd. organizing. Outside state customers. Finally the selected plan of action is chattered out and implemented. and procedures. MAJOR CUSTOMERS OF THE COMPANY Sangrose Laboratories sell its products to local area and also export their products. Local customers. motivation. The various alternatives before it are evaluated and form among those the most appropriate course of action is selected which may fulfill predetermined goals. It invokes the selection from among several alternatives. 48 . policies. Overseas customers. SALES PLANNING Planning is a managerial function. 2. direction. programmers and schedules. 3. enterprises. As a part of marketing planning covers sales forecast. 4.Sales management represents one of the most important functional areas of management in Sangrose Laboratories Pvt. Government supply (central purchasing committee).

THRISSUR 6. Distribution is an important function of modern marketing.Committee.Consumers. COCHIN 5. Each channel pays a significant role in distribution having their own distinct advantages and disadvantages. BENZOR PHARMA. CHANNELS OF DISTRIBUTION Distribution is defined as the process of getting the product form the factory into the hands of the ultimate consumer or users. CHENNAI 2. ENKA HEALTHCARE DELHI These are the customers for capsules in India. ABL BIO TECHNOLOGIES. DISTRIBUTION CHANNELS SET UP AT SANGROSE LABORATORIES Manufacturer ±Importer. The final products are handed over to the excise and they check them for dispatching .SOME OF THE NATIONAL LEVEL OF CUSTOMERS: 1. which enables the consumer to enjoy higher standards of living and get more enjoyment and comfort out of life. CHENNAI 3. in the right quantity at the right place and at the right time.Conversion of basic drug to capsules . CAPSULES Manufacture. HOUCHE REMEDYS. The distribution is by Road and Rail.Consumers. Distribution channels vary among different industries. 49 . NOVA MILLENNIUM PHARMA. NOVEAU MEDICAM. DISTRIBUTION CHANNELS Distribution channels are the various routes or path ways through which goods and services flow from producers to consumers.CPC is basically their customer.Central purchasing. A distribution channel may have a number of stages and a number of intermediates between the producer and the buyer. CHENNAI 4.

FINANCE DEPARTMENT

50

FINANCE DEPARTMENT
FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTANT CLERK

ACCOUNTANT FINANCE DEPARTMENT Before knowing about the financial management it is necessary to know something about finance. A.L. King has started ³Finance is only common denomination for a vast range of corporate objectives. The major part of any corporate plan must be expressed in financial terms´. Finance holds the key to all human activity it is the guide for regulating investment decision and expenditure and endeavors to queeze the most out of every available rupee Financial management is an important branch of business administration. In the words of Howard and Upton ³financial management principle to a practiced of operation. Financial management is that part of the management concerned with the procurement of funds in most suitable and economical manner using the funds procured profitability, planning future operations and controlling current performance and future development through cost accounting budgeting statistics and so on. It provides the guide for future resource allocation by a firm. Financial management is the dynamic evolving or making of day to day financial decision in a business of any size. It is important because it has an impact on all the activities of a firm.

51

Financial management applies to an organization irrespective of its size, nature of ownership and control and whether it is manufacturing or service organization. So on modern money oriented economy for any organization with out effective and efficient financial management the survival and the growth will be a dream.

OBJECTIVE OF FINANCE DEPARTMENT IN THE COMPANY

Financial management is that managerial activity which is concerned with planning controlling rising and administration of funds used in the business. It involves a sound judgment combined with a logical approach to decision making. Following Are the Objective of Financial Management

MAXIMIZATION OF PROFIT Profit maximization is the basic criteria for the decision arrived at by the financial managers where the benefits and the cost of a course of action can be quantified, value maximization is appropriated criterion. The profit maximization is important criterion because the business is considered as an economical institution and profit isolation as a rational indicator of the success of the business.

MAXIMIZATION OF WEALTH This objective is as important as the profit maximization. Maximizing the net present worth of a firm can do this. Raising the price of the common stock can maximize the wealth of the owners of the organization.

52

Given below is the volume of profit and loss for the last 5years of SANGROSE LABORATORIES PVT. Hence it is seen that the stock turnover is very high by medically selling the finished product and the proceeds are used for the procurement of the raw materials. 1. Gross concept Net concept FACTORS INFLUENCING THE WORKING CAPITAL REQUIREMENTS IN THE COMPANY Working capital management is a significant fact of substantial management. 2. 53 .LTD. WORKING CAPITAL MANAGEMENT The success of many business operations depends upon the manner in which its capital is managed. Are working capital needs of a firm are influenced by following factors.MAINTAINING LIQUIDITY AND PROFITABILITY The immediate object of financial management is to maintain liquidity and improve profitability. Thus working capital is considered as the life hood of a business concern. Maintaining liquidity is concerned with current assets management. GRAPHICAL REPRESENTATION OF VOLUME OF PROFIT AND LOSS. It can also be regarded as that proportion of a company¶s total capital which is employed in short teem operations. Working capital is simple terms is the amount of funds which a business concern has to finance in its day to day operation. Two important concepts of working capital.

They store at least 3-6 months. The sales for the Sangrose Laboratories become seasonal as the company depends on tenders invited by the Govt of India. CONDITIONS OF SUPPLY The inventories of raw materials. In the pharmaceuticals industries like Sangrose Laboratories. They do both trading and manufacturing activities so they require more working capital. In Sangrose Laboratories chemical. This leads to heavy stoking of raw materials and finished goods at the beginning of the financial year. When they are not available indigenously. spares and stores depend on the conditions of supply. AVAILABILITY OF CREDIT If cheap and liberal credit facilities are available. raw materials are stocked for about 3 to 6 months due to seasonal fluctuation in sales. They have to be stored for future. This leads to heavy stocking of Raw materials and finished goods at the beginning of the financial year. SEASONALITY OF OPERATIONS:Firms.NATURE AND SIZE OF THE BUSINESS:The working capital requirements of a firm are closely related to the nature of the business. then the working capital requirements may be less because of excess of working capital requirement may be financed by such credit. mainly imported are the raw materials. have highly fluctuating working capital requirements. 54 . The sales of Sangrose become seasonal as the company depends on tenders invited by the Govt of India. In Sangrose Laboratories. they are manufactures of Basic Drugs and Capsules. which have a market seasonally in their operations usually.

55 . During those intervals.  To meet the day to day expenses and over head cost such as power. spares and components). Thus the working capital is needed for the following purposes. To pay wages and salaries To meet the day to day expenses and over head costs such as power fuel and office expenses etc.  To meet the selling expenditure like packing and advertising.       Purchase of raw materials (chemicals).  To provide the credit facilities to the customer.  To maintain the inventories. the company should have ready working or operating funds to keep the business going. To meet the selling expenditures like packing and advertising. spares and components.NEED FOR WORKING CAPITAL Thus working capital is needed for the following purpose. (b) Production and sales (c) sales and realization of cash. To maintain the inventories. fuel and office expenses etc.  Purchase of raw materials (chemicals. To provide credit facilities to the customers.  To pay wages and salaries. FACTORS DETERMINING WORKING CAPITAL IN THE COMPANY The determinant for working capital arises because of time gap in manufacturing and marketing cycle of business operations. This time gap is due to time gap between (a) purchase and production.

56 . MANAGEMENT OF CASH Cash management is one of the key areas of working capital management cash is the basic input needed the business running on a continuous basis. Sangrose Laboratories give a credit period of 15 days and grace period but for the outstation party it various from 60 days to 100 days. CREDIT EVALUATION Before granting credit the firm most knows the credit worthiness of customer¶s. In Sangrose Laboratories collection are done through bank where letter of credit is only for export goods. They have grantor for selling their products who in turn sell the product. Sangrose Laboratories gives Trade Discount for the bulk purchases. Cash is the most liquid asset. TRADE DISCOUNTS Firm generally offer trade discounts to induce customers to increase sales. They sell on credit basis and to new against advance payment. CREDIT PERIOD The credit period refers to the length of time customers are allowed to pay for their purchase. Sangrose Laboratories do have some stands for credit granting.  Cash flows with in the firm  Cash balance retained with firm where there is deficit or when is surplus cash for investing.  Cash management is concerned with managing of: Cash flows inflows and outflows of the organization. COLLECTIONS The collection programs of the firm aimed at timely collection of receivables. They do have concentrating bank system in Bombay.CREDIT POLICY The company should have standards applied in accepting and rejecting a credit.

ANALYSIS FOR LIQUIDITY Liquidity refers to the ability of a concern to meet its current obligation as and when they became due the following ratios are applied to judge the liquidity.in Sangrose Laboratories final accountant prepared for every financial year 31st march. Quick Ratio = Quick Asset Current liabilities Preparation of Final Accountant In preparation of final accountant is the important task. By computing current ratio is dividing current asset and current liabilities Current Ratio = Current Asset Current liabilities ACID TEST RATIO Liquid or acid test ratio is rigors test of Liquidity then the firm the Liquidity refers to the ability of a firm of pay its short firm obligation as and when they are due quick ratio may be defined as the relationship may be defined as the relationship between quick asset (excluding inventory and prepaid expense) and current liabilities. It means the relation between current asset and current liabilities. A Ratio analysis helps the analysts to make qualitative about the company finance performance.RATIO ANALYSIS A Ratio analysis is a simple arithmetical expression of the relationship one number to another. And also prepared for six month cash trial.  Current ratio  Acid test ratio Current Ratio Current ration is the important term of ratio analysis. 57 . It ascertains the firm¶s financial positions . Ratio analysis is technique of analysis and interpretations of financial statements of a company.

In Sales. For these purpose. So he is to make the best use of materials. re order levels . is determined the economic lot sizes. Inventories may be classified into four classes: . BASIC DRUGS I. In Sangrose Laboratories Raw materials are stocked for about 3-6 months due to the seasonal fluctuations. finished goods are marketed immediately because of the high demand for their product. economic order quantity. 58 . Thus is to arrange procurements of raw materials.P that are ready for sales. It helps to ascertain the cost of finished products. Working in Progress and finished goods. SYSTEM OF INVENTORY CONTROL Production manger is supposed to have the control over the cost of production by reducing wastage of man and materials. stores and spares are maintained to avoid sporadic break downs.so that the problems of over and under stock of materials may not arise. In Sangrose Laboratories maintain the cost accounting system and also maintain standard costing.P/B. Finished goods are CLOFAZIMINE. Supplies. .Raw Materials. This involves the physical and financial control of materials.COST ACCOUNTING It is the method of accounting for cost. classifying.cost accounting is the process of recording.working in progress are the raw materials (chemicals) open which work has been performed. allocating and reporting various costs incurred in the operations of an enterprise. Raw materials for Sangrose Laboratories are chemicals which are held for processing and production .

RESEARCH AND DEVELOPMENT The company has a research development lab functioning with all sophisticated equipment. The plant is proposed to function in the next year. A qualified team is constantly working with the department to develop the competitive products which makes Sangrose an identifiable company in the market. Sangrose is spending a reasonable portion of its turnover for its R&D department.Ltd. liquids orals and hard gelatin capsules. Their main object is developing process know-how for life saving drugs.Ltd Dapsone ±BP/USP (Anti Leprosy) Pyrazinamide -BP/USP (Anti T B) Imipramine -BP/USP (Anti Depressment) Ethambutol . new formulation division is on the anvil which can manufacture tablets. Following are the basic drugs. This unit proposed to commission this year. FUTURE PLANS Sangrose laboratories are expanding its product line constantly.(ANTI TB) 59 . The team developed some challenging and intends to start manufacturing them in the near future. As a part. A subsidiary of Sanagrose is on the pipe line named Sangrose Drug Chemicals Pvt. which are planning to be manufactured in Sangrose Drug Chemicals. which intends to manufacture basic drug. They also develop combination of those drugs that can produce at lower cost.

weakness. After a keen observation over the organisation and the various department of Sangrose the following strengths. where as the¶ weakness &threats¶ represent the negative aspects that the company should try to overcome. Indeed the dimensions of the internal capabilities have relianceis so far as they relate to the environmental conditions. weakness. SWOT is an acronym for strengths. opportunity & threats. The basic objective of SWORT Analysis is to provide a frame work to reflect on the firm ability to over come barriers &availof the opportunities emerging in the environment.¶ Threats & oppertunities µ represent the positive spects .SWOT ANALYSIS A scan of the internal and external environment was an important part of the strategic planning process. opportunities &threats of Sangrose pharmacy. STRENGTH y y y y GMP Certificate Only manufacturing of CLOFAZIMINE in Kerala Long term relationship with the customers indicate the trust in their product Industrial Estate WEAKNESS y y No healthy communication between the departments Advertising expenses is very meager 60 . Environmental factors. Such an analysis of the strategic environment is reffered as SWOT Analysis. oppertunities & threats are known. The followings are the sme of the strength. SWOT Analysis is an important aide for the management when it comes from making critical dicisions. weakness. internal to the industry are classified as strengths or weakness and those external to the industry are classified as oppertunities or threats.

OPPORTUNITIES y y Production can be in USP\BP STDS (tablets) Good scope in case the firm import machinery from absorb to increase the capacity y Direct marketing THREAT y Advertisement done by other players to capture the market Substitute product manufactured by other laboratories.  There is high wastage of raw materials during the production process. 61 .  Most of the times the company is facing the problem of high or low inventory level which is resulting in high inventory cost.  There is no product diversity.  More promotional measure are to be under taken to create customer awareness of the product.  The relationship between top level management & workers is not good enough. FINDINGS  According to the study of sangrose capacity utilization is very low.

For this purchase department must follow the concept of EOQ strictly.  Product strategy should be designed such a way that it can capture the market share &can be able to reduce wastage of over production. Though this study it is understood that no importance is given for quality of work life & quality circle.  Firm should be produce more other products. finance & marketing. HR. Even free lunch & recreational programmers can motivate them. This strategy attract more consumers & create customer awareness of the product. 62 . Thus management need to focus on the aspects.  Relationship between top level management &workers must be strengthened.SUGGESTIONS  So the company should try to utilize its capacity at an optimum level to reduce cost  High/low inventory level must be avoided in stores department.  Duration of free demonstrated must be implemented to give opportunities to customer to test the product personally. After conducting the organization study at sangrose laboratories one can understand how well they manage the entire plant how to keep the process going at times of crisis.The study gives an insight in to the majour financial areas namely production .

Plant Layout Effluent treatment plant W o r k s h o p Plant No 1 Plant No 2 QA QC Soft capsule plant R&D W a r e h o u s e MD¶S Cabin Office Administration Marketing CONCLUSIONS Guest Room Finance E n t r a n c e Cream & Oilment Liquid & Syrup Tablet Section Head gelatin Packing Packing 63 .

This will created the high demand of their products. Since the sales for SANGROSE LABORATORIES become seasonal there is huge requirement of working capital because the company depends on tenders invited by the Govt of India. 64 .CONCLUSION SANGROSE LABORATORIES is the only company manufacturing CLOFAZIMINE in Kerala and third in India. SANGROSE LABORATORIES PVT LIMITED is the capital intensive and power oriented project in the small scale sector promoted with the objective of rural development. The promoters of the company have considered all the infrastructure facility for starting up the required by the small-scale industry. The company is enjoying both the benefits of the small scale industry and the company form of the organization. This will help the company certain concessions for exporting. The company plays an important role in the National Leprosy Education Program (NLEP) introduced by the government of India under the aid of WHO. This leads to heavy stocking of raw materials and finished goods at the beginning of the financial year. It is the policy of SANGROSE LABORATORIES to supply medicines conforming to quality standard specified by customers at agreed prices and to their satisfaction. As it is incorporated as private limited company and registered as a small scale industry.

5.com Published document of the company. New Delhi.C.Chand and Company Ltd www. 2.P.Marketing research. 3.com www. New Delhi.BIBLIOGRAPHY 1. Statistical Method. S. 4. BERI G.google. 65 . Gupta S.sangrose.

Sign up to vote on this title
UsefulNot useful