Chapter 5: Organizational Profile

Square Group
5.1 Introduction

Square Group is one of the most and largest company in our country. They have several branches
all over the country providing and distributing product and services. Now-a-days they capture most
of the market shares of our country. They have a reputation name in the pharmaceutical industry
of Bangladesh for manufacturing quality medicines for more than four decades. SPL made its
debut in a humble way in 1958 from a small house of the village Ataikola near Pabna. Some big
concerns like Square Consumer Products Ltd., Square informatics and Square Hospitals Ltd.
Incorporated at that time; square was joined with a management agreement with Burmungrad
Hospital International of Thailand for the management of Square Hospitals ltd. Square today is a
corporate giant active in divergent business and industrial fields. Its present unassailable status is
the outcome of its successful diversification whether related diversification or unrelated. Our
objectives are to conduct transparent business operations within the legal & social frame work
with aims to attain the mission reflected by our vision. Our Mission is to provide quality &
innovative healthcare relief for people. Our vision is leading to accretion of wealth through
financial and moral gains as a part of the process of the human civilization. As per provisions of
the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies
and strategies, recording minutes/decisions for implementation by the Executive Management. So
it is clear to us that SCL a pivotal and most contributing company in our country for govt. as well
as for our economy.

5.2 Historical Background & Growth of the SPL

Square Pharmaceuticals Ltd., is the largest pharmaceuticals company of Bangladesh, is a reputed

name in the pharmaceutical industry of Bangladesh for manufacturing quality medicines for more
than four decades. SPL made its debut in a humble way in 1958 from a small house of the village
Ataikola near Pabna.

The first proprietary medicine was introduced in 1959 under the name of Easton’s Syrup, when
the number of working people was 12, turnover was Tk. 55000/- and occupied a floor space of
3000 sq.ft. Mr. Samson Chowdhury, the owner of the transferred the newly established company
to Pabna where a few people were accepted as co-workers accumulate more capital for smooth
operation of the company. The first processed tablet was introduced in 1962 under the generic
name Santonin. In the next year the introduction of Pathedine injection accelerated the growth of
the firm with a rapid expansion of business turnover. In 1964, the annual turnover of the company
rose to Tk. 1 million and the Square Pharmaceuticals was converted into Private Limited
Company.

The company continued to engage itself in manufacturing of both official’s preparation and a range
of proprietary items. In the meantime, the company had been on the lookout of an acquiring know-
how and expertise from outside for manufacturing and marketing of more sophisticated products
through joint venture and collaboration. The company took necessary steps in adopting a strategic
plan to expand its manufacturing facilities to produce wide range of essential items within the
parameter of the WHO (World Health Organization) recommendations.

This enabled the company to market a wide range of products to fill up the gap created by the new
drug policy, in 1982, when turnover reached to Tk. 2240 million and number of people employed
increased to nearly 400. In 1985 Square become the market leader in pharmaceuticals sector. As a
pioneer, SPL has been exporting its antibiotics and other products to UK, Singapore and other
countries since 1986. In I987, Square set up new factory to meet expanding market demand.

5.3 VISION:

We see business as a means to the well-being of the investors, employees and the society at large,
leading to accretion of wealth through financial and moral gains as a part of the process of the
human civilization.

5.4 MISSION:

Our Mission is to provide quality & innovative healthcare relief for people, maintain stringently
ethical standard in business operation also ensuring benefit to the shareholders and other
stakeholders.

5.5 OBJECTIVE:

Our objectives are to conduct transparent business operations within the legal & social frame work
with aims to attain the mission reflected by our vision

5.6 SQUARE QUALITY POLICY:

• Ensure strict compliance with WHO cGMP standards and local regulatory norms in every
phase of sourcing & procuring quality material, manufacturing, quality assurance and
delivery of medicines
• Ensure all activities through documented Quality Management System (QMS) complying
International Standard requirements of ISO 9001 through continuously Developing Human
Resources by regular training and participation.
• SQUARE is committed to undertake appropriate review, evaluation and performance
measurement of processes, business activities and quality Management System for
Continual improvement to ensure highest standard, customer satisfaction developing
Human resource and company’s growth.5.7 SPL MANAGEMENT:

5.7 Types of ownership:

SPL made its debut in 1958 as a Partnership Firm with four partners. Afterward with rapid
expansion of business turnover in 1964, SPL converted into a Private Limited Company. In 1994
SPL converted into a Public Limited Company and floated public share with highest premium.
Board of Directors:

Mr. Samson H. Chowdhury Chairman

Mr. Tapan Chowdhury Managing Director
Dr. Kazi Harunur Rashid Director
Mr. Samuel S. Chowdhury Director
Mr. Anjan Chowdhury Director
Mr. Kazi Iqbal Harun Director
Mrs. Jahanara Chowdhury Director

Management Committee:

Mr. Tapan Chowdhury Managing Director

Dr. A. R. Q. Baksh Member
Dr. Jibon Roy Member
Mr. Muhammadul Haque Member
Mr.Md. Kabir Reza, FCMA Member

Management Hierarchy:

Grade Designation
M-1 D.M.D.
M-2 Executive Director
M-3 Executive Director
M-4 Director
M-5 General Manager
M-6 D.G.M.
M-7 A.G..M.
M-8 Manager
M-9 Manager
M-10 Manager
M-11 Manager
M-12 SR. Executive
M-13 SR. Executive
M-14 Executive
M-15 Executive
M-16 Executive
Non Executive-Hierarchy:

Grade Designation
B-1 Officer
B-2 Junior Officer
B-3 SR. Officer Assistant/ SR. LAB Analyst
B-4 Office Assistant/LAB Analyst
B-5 Driver
B-6 Peon/Driver
B-7 Peon

5.8 Corporate Governance:

Top Management:

As per provisions of the Article of Association, Board of Directors holds periodic meetings to
resolve issue of policies and strategies, recording minutes/decisions for implementation by the
Executive Management.

5.9 Executive Management:

The Managing Director heads the Executive Management, the Chief Executive Officer (CEO) who
has been delegated necessary and adequate authority by the Board of Directors. The Executive
Management operates through further delegations of authority at every echelon of the line
management. The Executive Management is responsible for preparation of segment plans/sub-
segment plans for every profit center with budgetary targets for every items of goods & services
and are held accountable for deficiencies with appreciation for exceptional performance. These
operations are carried out by the Executive Management through series of committees, sub-
committees, ad-hock committees, standing committees assisting the line management.

WORK FORCE:

Square Concern CHQ Factory Field Total

Exe Non-Exe Exe Non-Exe Exe Non-Exe
Pharmaceuticals 151 179 120 1250 726 723 3358
Toiletries 39 60 30 1287 0 284 1700
Consumer Products 19 18 12 644 4 243 940
Textile 30 25 28 1325 1408
Spinning 7 2 10 231 250
Fashions 64 1386 0 1239 2689
Knit Fabrics 67 548 0 150 765
Informatics 24 17 6 5 52
Micro serve 10 4 0 0 14
Mediacom 26 19 0 0 45
Aegis Services 6 0 0 726 732
Square Security Mgt 3 5 0 0 8
Square Hospital 0 0 34 85 119
Agro Development 3 10 0 0 13
Herbal & Ayurvedic 2 0 1 12 0 19 34
Square Kindergarten 0 0 1 19 20
Maasranga 10 6 0 0 16
Production
Total 12163

5.10 THE KEY DEPARTMENTS OF SPL:

1. Product Management Department (PMD)

2. Sales Department
3. Medical Services Department (MSD)
4. Accounts & finance Department
5. Personal & Administration (PAD)
6. Information Technology (IT) Department
7. International Marketing Department
8. Marketing Supply Chain Management
9. Technical Service Department (TSD)
10. Distribution Department
11. Human Resource
12. Share & Corporate Affairs
13. Commercial

5.11 Functions of Departments:

Responsibility of Product Management Department (PMD):

• Preparation of marketing plan

• Preparation of printing promotional materials.
• Replying to quarries from the doctors and as well as the fiend forces related to a particular
brand.
• Preparation of packing and packaging materials.

Responsibility of Medical Services Department (MSD):

• Provide medical information to the doctors’ parallel to the field force engaged in promotion
of the SPL.
• Performing the medical promotion like direct marketing of publications, free distribution
of medical newsletters, free videos.
• Continuous Medical Education (CME) for graduate doctors with alliance of Sales
Department.
Responsibility of Personal & Administration (PAD):

• Recruitment of employees
• Promotion of employees
• Transfer of employees
• Retirement of employees’ bill with remuneration, increments, and other fringe benefits
namely house rent, allowances, insurance’s, profit bonus, etc.

Responsibility of Accounts and Finance Department:

• Maintains all the accounts like recording of transaction, preparation final accounting
reports, costing and budgeting, taxation, bookkeeping’s, providing funds to the projects
etc.
• Maintaining accounts receivables accounts, which is broken down into each market of SPL
and bank accounts.
• Preparation final accounting report for performance analysis of SPL.

Responsibility of Information Technology (IT) Department:

• Providing computer and other related accessories supports to all the user
• Maintenance of server and ensure smooth LAN operation

• Providing up to date technical and software support to all the sectors of SQUARE
• Development and maintenance of centralized databases and provide routine and ad hoc
reports for management decision making.

Responsibility of International Marketing Department:

• Exploration of new markets all over the world

• Operating of export business in the different countries
• Provide training to field forces in overseas countries
• Provide all types of documents for registration of SPL’s products in overseas countries.

Responsibility of Supply Chain Management:

• Purchase of raw materials, and packaging materials

• Purchase of machinery and equipment’s
• Purchase of chemicals, as advised by the department
• Purchase of stationary items and office applies.

Responsibility of Distribution Department:

• Ensure smooth distribution of products to all over the country

• Collection of payments from the customers
• Performs functions as the representative of SPL at the depot level.
• Maintenance of vehicles and depots.
5.12 THE EXISTING PRODUCTS:

The formulation plants are producing wide range of dosage forms like –

Product Mix Product Name

Tablets Total Dosage Form = 190 NosNon-Coated (Plain, Chewable,
Dispersible, Vaginal)

Coated (Sugar, Coated, Film Coated, Enteric Coated,)

Sustained/Extended Released (Coated, Non-Coated)

Capsules Total Dosage Form = 53 NosGranulated Material Field, Pellets Filled
Suppositories Total Dosage Form = 08 Nos Suppocire based
Injections Total Dosage Form = 41 NosVials Containing Dry Powder for
Injections

Small Volume Liquid Parenterals

Liquids Total Dosage Form = 38 NosOral Syrups (Sugar based, Non-Sugar
based)

Oral Suspensions Topical Liquids

Spray, Drops, Ointment

Product Mix Product Name

Cram and Powder Total Dosage Form = 56 NosSmall Volume Sterile Eye and Ear
Drops

Small Volume Nasal Drops and Sprays

Topical Ointments and Cream

Topical Antibiotic Powder

Oral Dry Powder Total Dosage Form = 30 NosDry Suspensions (Antibiotic and Anti
Infective)

Dry Syrups (Antibiotics)

Dry Powder Total Dosage Form = 04 NosPartial Filled (Premix) Capsules for
Respiratory

Tract Application with a Device

Metered Dose Total Dosage Form = 10 NosPressurized Canisters for Oral use with
Inhaler an Actualor

Chemical Division started commercial production in 1995. From the year 1997 it started its full-
fledged production and marketing to all top pharmaceuticals within the country including Aventis
Pharma, Novartis Bangladesh Ltd., Glaxo Smith Kline, ACI Ltd., Reckitt & Colman, Beximco
Pharmaceuticals Ltd., The Acme Laboratories Ltd, Eskayef Bangladesh Ltd., Opsonin Chemicals,
Renata Ltd., Essential Drugs Co. Ltd. etc. with good reputation and loyalty.

5.13 OPERATION:

Product/service offering (Square Group)

Pharma Division Manufacturer of pharmaceutical finished dosage form, established in

1958
Chemical Division Manufacturer of Pharmaceutical raw materials, established in 1994
Health Products Manufacturer of health and hygiene care products, established
Limited in 1986
Square Toiletries Manufacturer of plastic packaging materials, established in 1986
Limited
Square Textiles A composite textile mill, established in 1994
limited
Astras Limited Export, import and indenting company, established in 1979
New Dhaka Manufacturer of industrial firebricks,
Refractories
Limited cement and allied materials, acquired in 1996
Mediacom Limited An advertising agency, established in 2000
Square Informatics A house of Information Technology, established in 2000
Limited
Square Spinning Manufacturer of textile yarn, established in 2000
Limited
5.14 Distribution Channel:

SQUARE’s NATIONWIDE DISTRIBUTION

Distribution Department at a Glance

Objective:

Supply Right products in Right place in Right time

History: SPL opened first Depot at Barisal in 1995

Resources:

Total Distribution personnel: 712

Permanent: 375
Casual 337
Central Depot 01
Depot 13
Vehicles 168

5.15 EXPORT:

SQUARE started exporting finished pharmaceutical formulations since 1987. And it is the pioneer
in pharmaceutical export from Bangladesh.

SQUARE offers more than 200 molecules in over 400 formulations, from its 3 WHO GMP-
compliant manufacturing plants.

Future Focus:

Strengthen its position in the present markets

Work is in progress to enter into regulated markets in Europe and

United States

Work is in progress for the site approval by UK.

Current Export Market:

SL Country Name SL Country Name SL Country Name

1 Cambodia 7 Pakistan 13 Ukraine
2 Vietnam 8 Ethiopia 14 Kosova
3 Myanmar 9 Russia 15 Yemen
4 Nigeria 10 Papua New 16 Kenya
5 Nepal 11 Sri Lanka 17 Guinea
6 South Africa 12 UK
5.16 Annual Report Highlights:

Following is the Total assets, Total Liabilities, Total Owners’ Equity, Net Working Capital, Book
Value of the Firm, Cash flow from assets and Cash flow from creditors from 2001-02 to 2004-05.

2001-2002 2002-2003 2003-2004 2004-2005

Total Assets 4,526,115,331 5,164,330,225 5,877,361,667 7,907,932,662
Total Liabilities 1,252,391,660 1,313,221,765 1,287,219,664 2,339,142,506
Total Owners’
Equity 3,273,713,671 3,851,098,460 4,590,142,003 5,568,790,156
Net Working
Capital 271,030,609 193,595,498 765,380,681 1,292,552,886
Book Value of the
Firm 4,5260,115,331 5,164,330,225 5,877,361,667 7,907,932,662
Cash flow from
assets 791,396,147 (862,411,707) 752,705,791 298,108,114
Cash flow from
creditors (60,332,248) (130,168,311) (137,384,772) 246,197,598

From the data obtained we can say that the company is liquid but we cannot conclude anything as
we do not have the Industry standard data.

VIP status company for Highest Tax Paying in Bangladesh

• National Board of Revenue awarded VIP status to SQUARE for becoming the highest
taxpaying Public Limited Pharmaceutical Company of Bangladesh.
• Mr. Samson H. Chowdhury, Honourable Chairman of SQUARE Group is the 4th Highest
Taxpayer of Bangladesh.
• Mr. Samuel H. Chowdhury, Honourable Vice Chairman of SQUARE, Mr. Tapan
Chowdhury and Mr. Anjan Chowdhury, Honorable Managing Director of SQUARE are
among the top 25 individual taxpayer of the country and has also given VIP Status

5.17 HUMAN RESOURCE: Practices & Climates

SQUARE, with its progressive business outlook, believes and practices corporate work culture with
a classic blend of efficiency and equity. SQUARE believes in company growth by increasing
efficiency level of employees and for that offering excellent environment and support for skill and
knowledge up gradation. SQUARE values productivity as the spontaneous contribution of Human
Resources. Strategic Human Resource Development Programs are the energy sources for SQUARE
HR for running towards the zenith of success. Flow of clear and specific information and
justification of queries play the vital role to ensure the market reputation of SQUARE as the most
trusted and transparent company and it enriches the motivation level of HR who are the real
contributors and owners of his / her own jobs. At SQUARE, HRD symbolizes the unique blending
of professionalism as well as sharing the stress and success equally like a family where every
member has deep concern, feelings and pride for their own company SQUARE. HR ensures the
strong supporting role to develop & implement HR policy guidelines for ensuring uninterrupted
operation and spontaneous participation to achieve organizational objective as well as fulfillment
of employee needs. HR is maintaining an effective way to deal with labor union and still no unrest
has been recorded as dispute. Personnel working here are taking care of SQUARE as if it is their
own family. Employee-employer relation is cordial and supporting always.

KEY PERSONS OF HUMAN RESOURCE DEPARTMENT:

Mr. Anjan K. Paul – Deputy General Manager Head of HRD

Mr. R. K. Banarjee- Manager, Public Relations

Mr. Allen A. Baroi- Manager, HRD

Mr. Ali Hossain- Manager, HR (Dev. & Training)

Lt. Col. (Retd) Jainul Abedin- Manager-HR, Pabna Unit

Mr. Mokbul Hossain, Sr. Executive-HR, Dhaka Unit

HUMAN RESOURCE DEPARTMENT:

Future Plan and Strategies: (Focus areas)

• To implement Training manual according to training policy

• To implement individual Training software link with HRIS
 • To implement counseling cell to solve employee problem and motivation
• To Take a step to organize yearly training budget
• To prepare Electronic folder on time-demanded topics
• To arrange birthday wishes of employee’s step by step
• Identifying Training Needs among all employees of SQUARE Group.
• Converting business needs into training needs.
• Define core competencies required to perform the job efficiently.
• Identify areas of knowledge, skill and attitudes (KSA) among all employees.
• Taking responsibilities on continuous development of KSA.
• Participating job fair or any event where HR needs to represent the company/ SQUARE
Group.
• Any recent development or any modern HR issues, we can work on and inform to others.

1. Sorting or screening
2. Written test/Interview
3. Preliminary interview

Thus, the whole recruitment process comes to an end.

5.18 TRAINING:

Training is a planned, structured, organized and time bound process which results in the
individuals acquiring appropriate skills, knowledge, attitudes and values (SKAV) that directly
complement their performance and also resulted in the organizational effectiveness. HR(D&T) of
SQUARE Pharmaceuticals believes that appropriate form of training and education contribute to
the development of its staff by the way of upgrading their job skills and develop their potential and
build their capacity to meet future needs of SQUARE, and to the mutual benefit of SQUARE and
themselves.

All staff irrespective of male or female, senior or junior, will undertake training (also attend
workshop) on different issues at least once within two years to develop an understanding of its
relevance to their work depends upon Training Needs Assessment.
 1. The training or development interventions is based on need assessment;
2. The training/development intervention is within the plans & budget;
3. Employee’s absence from the field/ office does not affect the program/ office work;

Staff in present job needs enhancement of his/her skill, knowledge,

Certificate Policy for in house training program: In house training less than 12 hours will be
regarded as workshop or presentation session, so participants will not be awarded with certificate.

Training Others

As part of organization goal of strengthening field force of the organization, HR(D&T) of

SQUARE Pharmaceuticals offer/arrange various training like off-job training, on-job training,
refresher course to Targeted/interested group all over the year.

BENEFITS TO EMPLOYEES:

SL Financial Benefits Non-Financial Benefits

1 5 Bonuses Job Enrichment
2 Profit Share Participation in decision making
3 Special Increment & Regular Refreshment for shift workers
Increment
4 Leave Encashment Lunch Facility
5 LFA Job Rotation
6 Medical Facilities Learning facility
7 Gratuity Loan facility
8 Group Insurance Easy communication with management
9 Technical Support
10 Study Leave

5.19 Quality Control and Management:

The company places total emphasis on maintaining and improving of quality of its products as
‘life-science’ biology following GMP (Good Manufacturing Practice) standards of WHO by
following strictly laid down criteria at every level of production and handling. The company also
follows-up withdrawals from market of all expiry dated products through close inspection and
surveillance. The quality control facilities include a high-quality standard Laboratory Building,
Computerized Equipment and Tools and a team of highly qualified/trained research personnel
who are bent upon on unstinted attainment as ethical and moral objective. We are proud of them.
SQUARE today symbolizes a name – a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one
of the top line conglomerates in Bangladesh.