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KomalMadhan (11BSPHH010404) Poornima Sinha (11BSPHH010588) PavneetSahni (11BSPHH010571) NidhiBhargava (11BSPHH010527) AmitRanjan () Manish ()
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TABLE OF CONTENTS COMPANY PROFILE…………………………………………………………3 FINANCIAL CONTROL……………………………………………………. . 13 OPERATIONS IN JUBILIANT…………………………………………… ..11 CODE OF CONDUCT…………………………………………………….14 CONCLUSION……………………………………………………………..7 PORTFOLIO AND MIX………………………………………………………9 MANAGEMENT CONTROL SYSTEM IN HUMAN RESOURCE………...16 Page | 2 .
6 position amongst the Top 10 Global contract manufacturing & services outsourcing players of the pharmaceutical industry. Recently it has been ranked at No. serving its customers globally with its ground presence in India. North America. It is a Public Limited Company and is listed on Indian Stock Exchanges (NSE and BSE). Europe and China.COMPANY PROFILE Jubilant Life Sciences Limited. an integrated pharmaceutical and life sciences company. Page | 3 . The Company provides Life Science Products and Services across the value chain. is the largest Custom Research and Manufacturing Services (CRAMS) player and a leading Drug Discovery and Development Solution (DDDS) provider out of India.
Employs 4466 people including about 1050 in R &D Subsidiaries in Europe. Strong Financials : Net sales 416 million dollar in FY 2007. Generics. Global position in key products exported to over 120 countries. Page | 4 .JUBILANT FACT SHEET Incorporated in 1978 and headquartered in New Delhi –India Ownership of the company 52% with founders. Over 25 years of experience in chemical and knowledge based industry. USA and China.PAT of $52 million JUBILANT PHARMACEUTICAL FACT SHEET Incorporated in 1993 Based in Gent – Belgium Subsidiary of Jubilant Life Sciences since 2004 Broad-spectrum services and products provider to pharmaceutical marketing companies in Europe Knowledge-based company with excellent track record in national MA’s. MRP’s and DCP procedures PRODUCTS AND SERVICES Pharmaceuticals :API’S. Specialty Pharmaceuticals Life Sciences Ingredients Contract Manufacturing Outsourcing Drug Discovery and Development Solutions. 30% PE and institutions and 18% with public.
8 Out of 12 directors 8 are non executive and independent Non executive director is the one who is not associated with the company in the executive capacity . non executive and independent directors.A independent director is a non executive director who apart from receiving directors remuneration does not have any material pecuniary relationship with the company The board of directors of the company are the apex body responsible for framing and implementation of governance policies. Page | 5 .BOARD STRUCTURE AND PROCESSES The company’s board is the judicious mix of executive.
GOVERNANCE STRUCTURE AND MANAGEMENT PROCESSES R&D INVESTMENTS At Jubilant. Page | 6 . Innovation goes beyond R&D and focuses on creating an environment thatencourages out of box thinking and application of new ideas to develop innovative technological processes. value added products and services and optimum distribution channels to maximize value creation for its customers and other stakeholders.
Divisional Heads of Accounts and Finance and Head of Assurance function. Functional Heads. The Audit Committee. Sales Managers in the company considers the following factors for preparing the sales budget : 1) Past sales figures and trends 2) Salesman’s estimates 3) General Economic conditions 4) Orders at hand 5) Competition Once the sales budget is prepared to the sales manager then the same is forwarded to the board at the corporate office for final approval. The responsibility for making the sales budget lies with the sales manager. Executive Director and Head of Assurance act as a governing body to monitor the effectiveness of the internal control framework. assessment and mitigation of potential internal or external risks. reviews the adequacy and effectiveness of the internal control being exercised by various businesses and support functions and advises the Board on matters of core concern for appropriate redress measures. Risk Management Structure. on a quarterly basis. Heads of Businesses. Unit Heads. Page | 7 . productwise and areawise.Companies risk management structure comprises the Board of Directors and Audit Committee at the Apex level. The Audit Committee. Senior Management team sets the overall tone and risk culture through defined and communicated corporate values.Jubilant has a strong risk management framework in place that enables active monitoring of business activities for identification. supported by Executive Directors. These are then discussed and deliberated at various review forums chaired by the Executive Directors and actions are drawn upon. The forecast related to the total volume of sales and also its break-up. As risk owners. clearly assigned risk responsibilities and appropriately delegated authority. the Heads are entrusted with the responsibility of identification and monitoring of risks.FINANCIAL CONTROL Risk Management . Budget Control System – Different Types of Budgets prepared in the company are as follows -: i) Sales Budget – The sales budget expresses a realistic forecast.
This budget is passed by the finance department and then is sent to the board for final approval. The HR department makes an estimate of the number and kind of personnel required both in R&D as well as in sales department. An over-dependence on single product or few customers may adversely impact the realization of long term business objectives in the event of any regulation limiting the end use application. A change in customer organization. In case of high dependence on specific geography. markets and products is important to be able to execute business strategies and monitor and assess impact of decisions. failure to accurately forecast socio-political-economical trends or regulatory changes in key customers’ market may significantly impact business performance.ii) R&D Budget – R&D budget is dependent upon two main factors -: 1) Past year performance 2) Future Economic Environment A 5 year extensive R&D budget is prepared which is followed by annual budget. iv) All these Budgets are further verified by the Audit Committee so as to ensure minimum deviation between the planned and actual figures. Cash Budget – Cash budget of the company defines a cash plan for a specific period of time. A high customer concentration poses a risk in terms of sudden dip in market share in the event of loss of key customers or share of business due to shift of customer’s preference to competitors. It summarizes the monthly receipts and payments. needs and/ or expectations may lead to a decrease in market attractiveness and / or adverse competitive position. Based on that they prepare a personnel budget of the company. The company has appointed Ernst & Young for various audit and controlling activities. PORTFOLIO AND MIX: CUSTOMER AND PRODUCT CONCENTRATION A balanced portfolio in terms of customers. It is prepared by the HR department of the company. Treasury department prepares the cash budget for the following main uses :1) To maintain control over the firm’s cash requirements 2) To show the feasibility of the management’s plans in cash terms 3) To illustrate the financial impact of changes in the management policy like the change of credit terms offered to customers. iii) Personnel Budget – This budget is prepared in reference to the R&D budget and the sales budget. behavior. Page | 8 . It is prepared by the treasury department of the company.
reducing the impact of extended testing and making our products available on time. life science services and manufacturing of products involve dangerous chemicals. including the US. it safeguards itself against shift in customer preference. With robust customer and account management programs in place. where it operates. process and by-products and are subjected to stringent regulations. Social acceptance and Corporate Social Responsibility (CSR) have become increasingly important over the last decade. Compliance with stringent emission standards for the manufacturing facilities and other environmental regulations may adversely affect the business. customer and geography and draws out strategies to achieve desired mix. it has committed investments in R&D to broaden its product mix and widen the portfolio to support forward integration with value added products such as Vitamins and Symtet businesses. may become more restrictive and be enforced more strictly in the future. This may occur even if regulators take action falling short of actual withdrawal. It also anticipates that customer requirements as to the quality and safety. COMPLIANCE AND REGULATORY We need to comply with a broad range of regulatory controls on testing. In some countries. which in turn could result in revenue loss. To mitigate the risk emerging from over-dependence on few / single products. Failure to achieve regulatory approval of new products can mean that we do not recoup our R&D investment through the sale of final products. R&D. We have adopted measures to address these stricter regulations by increasing the efficiency of our R&D process. it constantly strives to identify and explore new profitable markets for its products as well as new downstream opportunities in terms of applications and alternate use of the products available in its portfolio.The Company regularly reviews its portfolio – product. manufacturing and marketing of our products in the pharmaceutical and life sciences space. As part of the annual business planning and periodic review meetings. regulatory controls have become increasingly demanding leading to increased costs and reduced operating margins for our line of products and services. Any time change in regulations or reassessment of safety and efficacy of products based on new scientific knowledge or other factors could result in the amendment or withdrawal of existing approvals to market our products. Environment Health and Safety (EHS) In the current business climate of reputational threats and rising political backlash. The Company anticipates that environmental laws and regulations in the jurisdictions. Page | 9 . corporates need to tread carefully to maintain public trust.
MANAGEMENT CONTROL SYSTEM IN HUMAN RESOURCES MCS influences human behaviour. relating to products or processes that compete with those we are developing. the Company has incurred substantial expenditure and allocated other resources to proactively adopt and implement manufacturing processes to increase its adherence to environmenta quality standards and enhance its industrial safety levels. The Company in addition to patents has relied on trade secrets. career policy etc. in part. Our competitors may have filed patent applications. The challenge of control management is to create the conditions that help to meet the corporate goals of scientific performance as well as the scientists need for satisfaction and motivation. Protecting Intellectual Property Rights (IPRs) Our success will depend.) on the one hand. In anticipation of such requirements. individual actions taken to achieve personal goals also help to achieve organizational goals. on our ability in the future to obtain and protect IPRs and operate without infringing the same of others. knowhow and other proprietary information and hence our employees. or their patents may impair our ability to do business in a particular geography. or hold issued patents.At Jubilant.e.of products will continue to increase. Personnel control refers to the quality of the reward system (organizational flexibility: number of incentives. vendors and suppliers sign confidentiality agreements. the challenges due to Company’s operations related to EHS aspects of the business. employees and society are mapped and mitigated through a series of systematic and disciplined sets of policies and procedures. and the competence of the top management to react on changing situations. Good management control systems influence behaviour in a goal congruent manner i. Some of the policies which help the company to impose control on its employees are: Recruitment policy Compensation and Benefits Policy Employee Assistance policy Page | 10 .
Lack of credible successors may expose the Company in case of unexpected departures in key position. Inability to attract the talent required to execute business objectives may result in deteriorating business performance. it also introduced Rewards & Recognition policies for effective employee engagement. it is imperative that it recruits and retains high quality R&D specialists.g. To execute its growth and diversification plans. The Company has committed substantial resources to this effort given the competition for qualified and experienced scientists from biotechnology. Insufficient focus on human resource processes (e. Being knowledge based industry manpower is the biggest asset to the company. recruiting. highly-skilled scientific and technical personnel staff. Pharmaceutical industry banks on continuous innovation.The above figure shows the expenditure done by the company for its employees. Given the Company’s dependence on R&D activity. in India and outside India. talent management. company spends a lot of money. Page | 11 . pharmaceutical and chemical companies. while on one hand the Company continues to hire new. development and training) may result in an organisation’s inability to recruit and/or hold the required personnel. as well as universities and research institutes. So that it can continuously innovate and maintain its competitive advantage in the market. Thus showing that to retain talent. labour management. Therefore acquisition and retention of right talent is critical to maintain desired operational standards.
Short term incentives (monetary and non-monetary) like bonus. Various short term and long term incentives are given to motivate employees. and Growing to all the stakeholders – “We will. Always Stretch We stretch ourselves to be cost effective and efficient in all aspects of our operations and focus on flawless delivery to create and provide the best value to our stakeholders. continue to enhance value for our customers by providing innovative products and economically efficient solutions and for our shareholders through sales growth. vouchers etc are given . pat-on-the-back. ESOPs are given only after an employee reaches a certain hierarchical level. which are Inspire Confidence We will carefully select. Theses help to build long-term relationship with the employees. Promise and Values. ESOPs give a sense of ownership to the employee. confidence and teamwork. (Jubilant) has a well drafted Vision which drives the business and promises of Caring. cost effectiveness and wise investment of resources. Excellent Quality Page | 12 . Jubilant Life Sciences Ltd.While the long term incentives consists of stock option schemes. so that they respond to all stakeholders with agility.” Jubilant’s Vision is driven by its Values. train and develop our people to be creative. with utmost care for the environment. CODE OF CONDUCT This Code of Conduct gives the standards of conduct expected from the Company’s Directors and Senior Management so as to align these with the Company’s Vision. Sharing. empower them to take decisions.In order to attract and retain the best talent the company employs incentive compensation plans.
Sanctions for breach of this Code shall be determined by the Board of Directors in case of Directors and by the Chairman & Managing Director/Co-Chairman and Managing Director in case of Senior Management. we will always strive to excel in the quality of our processes. as the case may be. we will continue to surprise our stakeholders with innovative solutions. OPERATIONS MANAGEMENT IN JUBILANT To leverage on strong R&D and manufacturing capabilities Jubilant has an efficient “SUPPLY CHAIN” . removal from office as well as other remedies. our products and our services.The supply chain enables Jubilant to have a competitive advantage besides delivering value at the value chain. Sanctions may include disciplinary action. The value chain flow at the Jubilant is as: Page | 13 . Nurture innovation By sharing our knowledge and learning from each other and from markets we serve. deemed appropriate and permitted by law.With utmost care for the environment and safety. Any significant breach of the Code must be notified to the Board of Directors and the Chairman & Managing Director/Co-Chairman and Managing Director. who will in turn report it to the Jubilant’s Board of Directors on the Code's operation and effectiveness along with any significant breach of the Code. PENALTY FOR BREACH The Directors and Senior Management are accountable for full compliance with this Code of Conduct.
It is integrated with ERP. It is easy to use and has a standardized templates and quotes. manufacturing date . It also offers a platform for online auction which aids in gaining cost advantage.expiry date .THE SUPPLY CHAIN MODEL AT JUBILANT In order to have a functional excellence the Supply Chain Model of Jubilant is focusing on 4 areas which are: 1) E-procurement This Program of Jubilant is Powered by Vendex*Technology. Benefits:- Easy accountability. Speed Fool proof system Page | 14 . FIFO enforcement . This tool enables superior connection with partners. Accuracy. with regards to lot no . Apart from ensuring speed delivery and access across various partners. IMPACT OF E-PROCUREMENT ON JUBILANT SUPPLY CHAIN 2) Bar coding It enables coding.
OHSAS and EHS system Encourage Supplier to implement ISO 9001-2008 General Health and Hygiene Use of Safety Tools and Equipments Encourage Supplier for the recycle and reuse of the resource.3) Green Supply Chain Awareness sessions conducted during Quality Audits. Partners were briefed on: Importance & significance of ISO 9001-2008. Reduction of the waste and disposal of the waste as per prescribed rules. Page | 15 . Compliance of the Safety and Environment regulations New Suppliers Selected based new questionnaire feed back 4) Supplier Quality Assurance: Meeting quality standards and maintaining quality standards is the Key to Jubilant Business They follow a 6 step procedure to select the quality experts.The SCOR card stands for SUPPLY CHAIN OPERATING REFERENCE. SUPPLY CHAIN GOVERNANCE: Measure Supplier Performance Against contact &SLA through scorecard Jubilant Uses SCOR cards for both Internal & External deliverables & reengineer the supply chain .
CONCLUSION As a result of various efficient disciplines such as Finance. Operations. Human Resources Marketing the Jubilant gains a competitive advantage among its various counterparts in Biotech and Pharma . patented and non-infringing technologies One stop solution • Providing integrated offers for licensing and supply of finished dosage forms to clients in Europe Cost • Significant cost saving through full integration -------------------------------------------------------------------------------------------------------------------- Page | 16 . Some of the Key strengths exhibited by Jubilant are : Quality & Reliability • • • • Complete project management in-house Availability of large number of qualified experts Strict adherence to EU/US FDA guidelines High quality Drug Master Files and CoS Skill / Technologies • • Highly qualified and experienced scientists Novel.