Industrial Review Project on the Film Industry

With specific reference to

Universal Studios, Marvel studios and DreamWorks

Submitted in Partial fulfillment of the requirement for the

Degree of Bachelor of Business Administration Finance and International Business
(BBA-F&IB)
In Christ University

By
ARMAAN ZOROOFCHI (1523606)
DEVASHISH DIDDI (1523609)
SEAN ANTONY (1523636)

Under the guidance of Prof. Rajani Ramdas

Department of Management Studies

CHRIST UNIVERSITY
Bangalore

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 2015-2016

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 DECLARATION

We, Armaan Zoroofchi, Devashish Diddi and Sean Antony, hereby declare that the Industry
Review Project on the performance of the film industry with specific reference to Universal
Studios, Marvel Studios and DreamWorks submitted to Christ University, in partial fulfillment
of the requirements for the award of the Degree of Bachelor of Business Administration Finance
and International Business is a record of original and independent research work done by us
during 2016 – 2017 under the supervision and guidance of Prof. RAJANI RAMDAS Department
of Management Studies and it has not formed the basis for the award of any Degree/ Diploma/
Associate ship/ Fellowship or other similar title of recognition to any candidate of any
University.

Date: Armaan Zoroofchi

Devashish Diddi

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 Sean Antony

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 CERTIFICATE

This is to certify that the industry review report on the performance of the film industry with
specific reference to Universal Studios, Marvel Studios and DreamWorks submitted to Christ
University, in partial fulfillment of the requirements for the award of the Degree of Bachelor of
Business Administration Finance and International Business, is a record of original research
work done Armaan Zoroofchi, Devashish Diddi and Sean Antony during the period 2016 – 2017
of their study in the Department of Management Studies at Christ University, Bangalore, under
my supervision and guidance and the report has not formed the basis for the award of any
Degree/ Diploma/ Associate ship/ Fellowship or other similar title of recognition to any
candidate of any University.

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Date: Prof. Rajani Ramdas

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 ACKNOWLEDGEMENT

We would like to express our profound gratitude to all those who have been instrumental in the
preparation of this Industrial Review Report. We wish to place on records, our deep gratitude to
our project guide, Prof. Rajani Ramdas, for guiding us through this project with valuable and
timely advice.

We would like to thank Dr. (Fr). Thomas. C. Mathew, Vice Chancellor and Dr. Jain Mathew,
HOD, for their encouragement.

Last but not least, we would like to thank our parents and friends for their constant help and
support.

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 TABLE OF CONTENTS

S.NO. TOPIC PAGE NO.

1. Introduction To Industry 6

2. Company Profile 17

Universal Studios 18

Marvel Studios 28

DreamWorks 37

3. Research Methodology 50

4. Comparative Analysis 59

5. Conclusion 70

6. Annexures 72

7. Bibliography 81

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 CHAPTER 1

I NTRODUCTION T O I NDUSTRY

“FILM INDUSTRY”

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The History of the Film Industry

The years of the First World War were a complex transitional period for the film
industry. The exhibition of films changed from short one-reel programs to feature films.
Exhibition venues became larger and began charging higher prices.
In the United States, these changes brought destruction to many film companies, the Vitagraph
Company being an exception. Film production began to shift to Los Angeles during World War
I. The Universal Film Manufacturing Company was formed in 1912 as an umbrella company.
New entrants included the Jesse Lasky Feature Play Company, and Famous Players, both formed
in 1913, and later amalgamated into Famous Players-Lasky. The biggest success of these years
was David Wark Griffith's The Birth of a Nation (1915). Griffith followed this up with the even
bigger Intolerance (1916), but due to the high quality of film produced in the USA the market for
their films was high.
In France, film production shut down due to the general military mobilization of the country at
the start of the war. Although film production began again in 1915, it was on a reduced scale,
and the biggest companies gradually retired from production. Italian film production held up
better, although so called "diva films", starring anguished female leads were a commercial
failure. In Denmark, the Nordisk Company increased its production so much in 1915 and 1916
that it could not sell all its films, which led to a very sharp decline in Danish production, and the
end of Denmark's importance on the world film scene.
The German film industry was seriously weakened by the war. The most important of the new
film producers at the time was Joe May, who made a series of thrillers and adventure through the
war years, but Ernst Lubitsch also came into prominence with a series of very successful
comedies and dramas.
Because of the large local market for films in Russia, the industry there was not harmed by the
war at first, although the isolation of the country led many Russian films to develop peculiarly

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distinctive features. In 1919, after the Bolshevik Revolution, an exodus of talent from the
country took place and film production was drastically curtailed.

The Economic History of the Film Industry

Like other major innovations such as the automobile, electricity, chemicals and the
airplane, cinema emerged in most Western countries at the same time. As the first form of
industrialized mass-entertainment, it was all-pervasive. From the 1910s onwards, each year
billions of cinema-tickets were sold and consumers who did not regularly visit the cinema
became a minority. In Italy, today hardly significant in international entertainment, the film
industry was the fourth-largest export industry before the First World War. In the depression-
struck U.S., film was the tenth most profitable industry, and in 1930s France it was the fastest-
growing industry, followed by paper and electricity, while in Britain the number of cinema-
tickets sold rose to almost one billion a year (Bakker 2001b). Despite this economic significance,
despite its rapid emergence and growth, despite its pronounced effect on the everyday life of
consumers, and despite its importance as an early case of the industrialization of services, the
economic history of the film industry has hardly been examined.
This article will limit itself exclusively to the economic development of the industry. It will
discuss just a few countries, mainly the U.S., Britain and France, and then exclusively to
investigate the economic issues it addresses, not to give complete histories of the industries in
those countries. This entry cannot do justice to developments in each and every country, given
the nature of an encyclopedia article. This entry also limits itself to the evolution of the Western
film industry, because it has been and still is the largest film industry in the world, in revenue
terms, although this may well change in the future.
Before Cinema
In the late eighteenth century most consumers enjoyed their entertainment in an informal,
haphazard and often non-commercial way. When making a trip they could suddenly meet a
roadside entertainer, and their villages were often visited by traveling showmen, clowns and

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troubadours. Seasonal fairs attracted a large variety of musicians, magicians, dancers, fortune-
tellers and sword-swallowers. Only a few large cities harbored legitimate theaters, strictly
regulated by the local and national rulers. This world was torn apart in two stages.
First, most Western countries started to deregulate their entertainment industries, enabling many
more entrepreneurs to enter the business and make far larger investments, for example in circuits
of fixed stone theaters. The U.S. was the first with liberalization in the late eighteenth century.
Most European countries followed during the nineteenth century. Britain, for example,
deregulated in the mid-1840s, and France in the late 1860s. The result of this was that
commercial, formalized and standardized live entertainment emerged that destroyed a fair part of
traditional entertainment. The combined effect of liberalization, innovation and changes in
business organization, made the industry grow rapidly throughout the nineteenth century, and
integrated local and regional entertainment markets into national ones. By the end of the
nineteenth century, integrated national entertainment industries and markets maximized
productivity attainable through process innovations.

Creative inputs, for example, circulated swiftly along the venues – often in dedicated trains –
coordinated by centralized booking offices, maximizing capital and labor utilization.
At the end of the nineteenth century, in the era of the second industrial revolution, falling
working hours, rising disposable income, increasing urbanization, rapidly expanding transport
networks and strong population growth resulted in a sharp rise in the demand for entertainment.
The effect of this boom was further rapid growth of live entertainment through process
innovations. At the turn of the century, the production possibilities of the existing industry
configuration were fully realized and further innovation within the existing live-entertainment
industry could only increase productivity incrementally.
At this moment, in a second stage, cinema emerged and in its turn destroyed this world, by
industrializing it into the modern world of automated, standardized, tradable mass-entertainment,
integrating the national entertainment markets into an international one.

Entry and Exit of the Industry

Like many industries, any new entrant into the film industry will be faced with various "hurdles"
that have been previously erected by already established businesses. These include, but are not
limited to:

 Economies of scale - marketing, sales, large fixed costs

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  Distribution of film differentiation - established films, brands and relationships,
capital requirements and financial resources 

 Access to distribution channels: preferred arrangements (advertisements, posters,

social media etc.)

 Regulatory policy: copyrights, regulatory standards, censorship

 Switching costs - actor training, new stages and equipment, technical assistance

The barriers to entry are extremely high in the film industry. Many of the top firms have
"significant monetary advantages".

The largest factors that influence the success of many film companies are capital requirements
and financial resources.

SCOPE OF THE FILM INDUSTRY

The film industry is probably the broadest and most creative field. In fact, the film making field
is highly competitive. There is much scope for film making. In order for a successful film to be
made, one must be artistic with technical skills and must have the ability to express various
ideas.
There are many Film and Television Institutions to realize the dreams of successful people
interested in the film making industry. After successful completion of the course in film making
institutions, you can find employment with production companies, film studios, advertising
agencies, government film making department etc.
You can also start your own career as a film producer, director, editor, soundman, cameraman,
etc.
One of the main qualities that a person should have for a life in the film industry is creativity.
He/she should have the ability to think outside the box and take chances and go with their gut
feelings. The film industry is a huge platform for youngsters to make their mark. The film
industry is a sea of young talent and veterans of the art. When people think of film, the first thing
that comes to their mind are actors. What people don’t’ realize that it’s not only the actors that go
into making a film successful. It’s the script, the director, soundman, cameraman, editor,
cinematographer etc. A life in the film industry will help you appreciate the art that is film
making.

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Largest markets by box office (2014)

Yea Box office

Rank Country Box Office (billions)
r from national films[49]

- World $36.4 2014 –

 United States
1 $10.4 2014 –
 Canada

2  China $4.8 2014 55% (2014)

3  Japan $2.0 2014 58.3% (2014)

4  France $1.8 2014 33.3% (2013)

 United
5 $1.7 2014 22.2% (2013)
Kingdom

6  India $1.7 2014 –

7  South Korea $1.6 2014 48.0% (2014)

8  Germany $1.3 2014 –

9  Russia $1.2 2014 18% (2013)

10  Australia $1.0 2014 3.5% (2013)

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 Yea Box office
Rank Country Box Office (billions)
r from national films[49]

11  Mexico $0.9 2014 10.8% (2013)

12  Brazil $0.8 2014 16.9% (2013)

13  Italy $0.8 2014 30.4% (2013)

14  Spain $0.7 2014 13.9% (2013)

19% (2013)
15  Netherlands $0.3 2014

Development of the film industry

By the late 1890s, the first motion picture companies were established in the US, France, Britain
and elsewhere.
The most successful motion picture company in the United States, with the largest production
until 1900, was the American Mutoscope company. This was initially set up to exploit peep-
show type films using designs made by W.K.L. Dickson after he left the Edison company in
1895.[23] His equipment used 70 mm wide film, and each frame was printed separately onto paper
sheets for insertion into their viewing machine, called the Mutoscope. The image sheets stood
out from the periphery of a rotating drum, and flipped into view in succession.

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Besides American Mutoscope, there were also numerous smaller producers in the United States,
and some of them established a long-term presence in the new century. American Vitagraph, one
of these minor producers, built studios in Brooklyn, and expanded its operations in 1905.

The Pathé Brothers, by Adrien Barrère.

In France, the Lumière company sent cameramen all round the world from 1896 onwards to
shoot films, which were exhibited locally by the cameramen, and then sent back to the company
factory in Lyon to make prints for sale to whomever wanted them. There were nearly a thousand
of these films made up to 1901, nearly all of them actualities.
By 1898, Georges Méliès was the largest producer of fiction films in France, and from this point
onwards his output was almost entirely films featuring trick effects, which were very successful
in all markets. The special popularity of his longer films, which were several minutes long from
1899 onwards (while most other films were still only a minute long), led other makers to start
producing longer films.
In 1900, Charles Pathé began film production under the Pathé-Frères brand, with Ferdinand
Zecca hired to actually make the films. By 1905, Pathé was the largest film company in the
world, a position it retained until World War I. Léon Gaumont began film production in 1896,
with his production supervised by Alice Guy.
In the United Kingdom, Birt Acres was one of the first to produce films as well as being the first
travelling newsreel reporter. In 1894 he created a 70 mm format and filmed the Henley Royal
Regatta. He went on to make some of Britain's first films with Robert W. Paul with a 35
mm movie camera, the Kineopticon, including Incident at Clovelly Cottage, The Oxford and
Cambridge University Boat Race and Rough Sea at Dover.

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Charles Urban became managing director of the Warwick Trading Company in 1897, where he
specialised in actuality film, including news film of the Anglo-Boer War. In July 1903 he formed
his own company, the Charles Urban Trading Company, moving to London's Wardour Street in
1908, the first film business to be located in what became the home of the British film industry.
Mitchell and Kenyonwas founded by Sagar Mitchell and James Kenyon in 1897, soon becoming
one of the largest film producers in the United Kingdom. Other early pioneers include James
Williamson, G.A. Smith and Cecil Hepworth, who in 1899, began turning out 100 films a year,
with his company becoming the largest on the British scene.
The Babelsberg Studio near Berlin in Germany was the first large-scale film studio in the world,
founded 1912, and the forerunner to Hollywood with its several establishments of large studios
in the early 20th century.

Movie production incentives in the United States

Movie production incentives are tax benefits offered on a state-by-state basis throughout the United

States to encourage in-state film production. These incentives came about in the 1990s in response to the flight
of movie productions to other countries such as Canada. Since then, states have offered increasingly
competitive incentives to lure productions away from other states. The structure, type, and size of the
incentives vary from state to state. Many include tax credits and exemptions, and other incentive packages
include cash grants, fee-free locations, or other perks. Proponents of these programs point to increased
economic activity and job creation as justification for the credits. Others argue that the cost of the incentives
outweighs the benefits and say that the money goes primarily to out-of-state talent rather than in-state cast and
crew members. Studies of the costs and benefits of incentive programs show different levels of effectiveness.

Types

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 Movie Production Incentives (MPIs): "Movie Production Incentive" is an umbrella term referring to
any incentive states offer filmmakers to encourage film production in-state.
 Tax Credits: Tax credits remove a portion of the income tax owed to the state by the production
company. Production companies must often meet minimum spending requirements to be eligible for the
credit. Of the 28 states that offer tax credits, 26 make them either transferable or refundable. Transferable
credits allow production companies that generate tax credits greater than their tax liability to sell those
credits to other taxpayers, who then use them to reduce or eliminate their own tax liability. Refundable
credits are such that the state will pay the production company the balance in excess of the company's
owed state tax.
 Cash Rebates: Cash rebates are paid to production companies directly by the state, usually as a
percentage of the company's qualified expenses.
 Grant: Grants are distributed to production companies by three states and the District of Columbia.
 Sales Tax Exemption & Lodging Exemption: Exemption from state sales taxes are offered to
companies as an incentive. Many states offer exemption from lodging taxes to all guests staying over 30
days, but these incentives are highlighted for production companies.
 Fee-Free Locations: An additional incentive states offer is to allow production companies to use state-
owned locations at no charge.

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 CHAPTER-II

C OMPANY P ROFILES

1. U NIVERSAL S TUDIOS

2. D REAM W ORKS

3. M ARVEL S TUDIOS

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 UNIVERSAL STUDIOS
HISTORY

Universal Studios was founded by Carl Laemmle, Mark Dintenfass, Charles O.

Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H.
Cochrane and Jules Brulatour. One story has Laemmle watching a box office for hours, counting
patrons and calculating the day's takings. Within weeks of his Chicago trip, Laemmle gave
up dry goods to buy the first several nickelodeons. For Laemmle and other such entrepreneurs,
the creation in 1908 of the Edison-backed Motion Picture Trust meant that exhibitors were
expected to pay fees for Trust-produced films they showed. Based on the Latham Loop used in
cameras and projectors, along with other patents, the Trust collected fees on all aspects of movie
production and exhibition, and attempted to enforce a monopoly on distribution.
Soon, Laemmle and other disgruntled nickelodeon owners decided to avoid paying Edison by
producing their own pictures. In June 1909, Laemmle started the Yankee Film Company with
partners Abe Stern and Julius Stern. That company quickly evolved into the Independent Moving
Pictures Company (IMP), with studios in Fort Lee, New Jersey, where many early films
in America's first motion picture industry were produced in the early 20th century. Laemmle
broke with Edison's custom of refusing to give billing and screen credits to performers. By
naming the movie stars, he attracted many of the leading players of the time, contributing to the
creation of the star system. In 1910, he promoted Florence Lawrence, formerly known as "The
Biograph Girl", and actor King Baggot, in what may be the first instance of a studio using stars
in its marketing.
The Universal Film Manufacturing Company was incorporated in New York on April 30,
1912. Laemmle, who emerged as president in July 1912, was the primary figure in the
partnership with Dintenfass, Baumann, Kessel, Powers, Swanson, Horsley, and Brulatour.
Eventually all would be bought out by Laemmle. The new Universal studio was a vertically

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integrated company, with movie production, distribution and exhibition venues all linked in the
same corporate entity, the central element of the Studio system era.
Following the westward trend of the industry, by the end of 1912 the company was focusing its
production efforts in the Hollywood area.
On March 15, 1915, Laemmle opened the world's largest motion picture production
facility, Universal City Studios, on a 230-acre (0.9-km²) converted farm just over the Cahuenga
Pass from Hollywood. Studio management became the third facet of Universal's operations, with
the studio incorporated as a distinct subsidiary organization. Unlike other movie moguls,
Laemmle opened his studio to tourists. Universal became the largest studio in Hollywood, and
remained so for a decade. However, it sought an audience mostly in small towns, producing
mostly inexpensive melodramas, westerns and serials.
In its early years Universal released three brands of feature films — Red Feather, low-budget
programmers; Bluebird, more ambitious productions; and Jewel, their prestige motion pictures.
Directors included Jack Conway, John Ford, Rex Ingram, Robert Z. Leonard, George
Marshall and Lois Weber, one of the few women directing films in Hollywood.
Despite Laemmle's role as an innovator, he was an extremely cautious studio chief. Unlike
rivals Adolph Zukor, William Fox, and Marcus Loew, Laemmle chose not to develop a theater
chain. He also financed all of his own films, refusing to take on debt. This policy nearly
bankrupted the studio when actor-director Erich von Stroheim insisted on excessively lavish
production values for his films Blind Husbands (1919) and Foolish Wives (1922), but Universal
shrewdly gained a return on some of the expenditure by launching a sensational ad campaign that
attracted moviegoers. Character actor Lon Chaney became a drawing card for Universal in the
1920s, appearing steadily in dramas. His two biggest hits for Universal were The Hunchback of
Notre Dame (1923) and The Phantom of the Opera (1925). During this period Laemmle
entrusted most of the production policy decisions to Irving Thalberg. Thalberg had been
Laemmle's personal secretary, and Laemmle was impressed by his cogent observations of how
efficiently the studio could be operated. Promoted to studio chief, Thalberg was giving
Universal's product a touch of class, but MGM's head of production Louis B. Mayer lured
Thalberg away from Universal with a promise of better pay. Without his guidance Universal
became a second-tier studio, and would remain so for several decades.
In 1926, Universal opened a production unit in Germany, Deutsche Universal-Film AG, under
the direction of Joe Pasternak. This unit produced three to four films per year until 1936,
migrating to Hungary and then Austria in the face of Hitler's increasing domination of central
Europe. With the advent of sound, these productions were made in the German language or,
occasionally, Hungarian or Polish. In the U.S., Universal Pictures did not distribute any of this
subsidiary's films, but at least some of them were exhibited through other, independent, foreign-

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language film distributors based in New York, without benefit of English subtitles. Nazi
persecution and a change in ownership for the parent Universal Pictures organization resulted in
the dissolution of this subsidiary.
In the early years, Universal had a "clean picture" policy. However, by April 1927, Carl
Laemmle considered this to be a mistake as "unclean pictures" from other studios were
generating more profit while Universal was losing money.

MISSION STATEMENT
To provide an environment where our Team Members are proud to work, deliver unforgettable
experiences to our guests, and generate superior financial returns.

OBJECTIVE
1. To promote, develop, encourage, support, maintain and increase the quality of films and
film- making worldwide.

2. To acquire patents, designs and inventions likely to be of use to the Film arts and crafts
fraternity.

3. To sponsor International and National Film Festivals, and to celebrate the art of
filmmaking in all its diversity and depth. To facilitate and promote a broader spectrum of
film and video for the community and provide educational opportunities and facilitate
general discussions for film lovers and aspiring film makers.

ORGANISATION STRUCTURE

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Mr Ajay Piramal- Chairman
Mrs. Swati Piramal – Director Strategic alliances & communication
Mr. Pranzeet Singh- Director (Formulations)
Dr. Somesh Sharma- Chief scientific officer
Mr. N. Santhanam – Executive Director & Chief Financial Officer
BOARD OF DIRECTORS
Mr. Ajay Piramal- Chairman
Mr. Rajesh Khanna- Director
Mr. Y.H. Malegam- Director
Mrs. Swati Piramal – Director Strategic alliances & communication
Mr. S. Ramadorai- Director
Mr. Deepak Satwalekar- Director
Mr. R.A. Shah- Director
Mr. KekiDadiseth- Director
Mr. N. Santhanam – Executive Director & Chief Financial Officer

COMPANY TURNOVER
Piramal Healthcare is the fourth largest, by revenue, Indian pharmaceutical company in the
Indian market with consolidated revenues of Rs.36.7 billion for FY10. NPIL makes nearly 50%
of its revenue (46.7%) from contract services that include molecule development, manufacturing
and packaging. The other major source of revenue (44.5%) is their domestic formulations
division that makes generic small molecule products for the Indian market. They have now
expanded this division, by acquisitions to have products that cater to international markets.NPIL
by its acquisitions of biologics manufacturing facilities is now able to manufacture both small
molecules and biologics, allowing it be a strong competitor in this sector that grew by 85% in
total value in the last 3 years.
Piramal Healthcare has reported a sales turnover of Rs 378.20 crore and a net loss of Rs 59.43
crore for the quarter ended Mar '12.
For the quarter ended Mar 2011 the sales turnover was Rs 427.74 crore and net profit was Rs
168.00 crore.

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PRODUCT LINE
Piramal is a domestic business that caters to Indian consumers through sales of OTC products.
The OTC division of Piramal Enterprises Ltd is one of the key businesses that the company
retained after divesting its flagship formulations and diagnostics services units. It is in the
process of finalizing multiple acquisitions. Piramal Healthcare is one of the fastest growing
players in the Rs.11, 000 crore by sales domestic consumer healthcare market, which deals with
non-prescription products in the healthcare and wellness segment. Piramal Enterprises entered
the OTC market with the acquisition of Saridon from Roche and Lacto Calamine from Duphar in
the early 1990s. In 1998, it did joint ventures with Reckitt Benckiser and Boots to get their OTC
range to India. The company decided to establish its own Consumer Products Division in 2007 ‘
Piramal Enterprises'. OTC range straddles the pharmaceutical space as well as the personal care
space with most-trusted brands in diverse product categories like Vitamins & Nutrition,
Analgesics, Dermatological, Antacids and Cough & Cold. Led by Mr. KedarRajadnye, President
& Chief Operating Officer of the Consumer Products Division, the business boasts of 5 major
brands with 30 SKUs which are:
(1). Lacto Calamine – With a turnover of Rs 70 crore in 2009-10, it is growing to be Piramal’s
first Rs 100-crore brand.
(2). Saridon - With 9 per cent of the Rs 90 crore analgesics market, Saridon has crossed the Rs
50 crore mark.
(3). Supractiv Complete – Rs 12 crore and the 2nd biggest brand in the nutrition segment after
Revital.
(4). Itchmosol - Rs 6 crore and the No. 2 slot in the Itch Creams market after Itch guard.
(5). I-Pill – a 50 crore brand.

DISTRIBUTION NETWORK
Piramal Healthcare is probably one of the biggest names in the Indian pharmaceutical and a
company that holds IT in high stead. SAP Advanced Planning &Optimization component (SAP
APO), one of the pharma’s giant distribution network which helped boost its supply chain.
Piramal Healthcare’s relationship with SAP began a decade ago. With a distribution network in
multiple geographies and 12 manufacturing facilities in India, Piramal needed a solution that

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could support its complex supply chain processes and continued growth while keeping costs
down as well.
Also customers can avail a comprehensive range of services across all phases of the drug
lifecycle which includes Drug Discovery & Development, Manufacturing and Packaging of
Clinical Trial Supplies, Delivering Commercial Volumes of APIs as well as Finished Dosage
products. To provide flexibility and scalability of operations, Piramal has invested in a network
of contract development and manufacturing facilities located in North America, Europe and
Asia.

MARKET SHARE

January 1–February 7, 2016

Top 10

Market Total Movies 2016

Rank Distributor
Share Gross(mn) Tracked Movies
1 Buena Vista 24.1% $284.1 4 1
2 20th Century Fox 23.6% $278.2 7 1
3 Paramount 14.4% $170.1 4 1
4 Universal 10.8% $127.3 5 2
5 Lionsgate 5.4% $63.5 6 3
6 Sony / Columbia 4.5% $52.6 7 2

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 7 Weinstein Company 4.2% $49.4 6 2
8 Focus Features 2.7% $32.3 3 1
9 STX Entertainment 2.3% $27.0 2 1
10 Warner Bros. 2.1% $25.3 12 0

Universal studios currently ranks 4th in the overall market share with a whopping
127.3 million dollars grossed in the months of January till the 7th of Feb.

Movies by gross value in the box office

Rank Movie Title (click to view) Studio Gross / Theaters Total Gross / % of Total Open
1 Ride Along 2 Uni. $77,247,545 3,192 $83,551,235 92.5% 1/15/16
2 Sisters Uni. $37,412,410 2,978 $86,623,660 43.2% 12/18/15
3 Hail, Caesar! Uni. $11,355,225 2,232 $21,994,970 51.6% 2/5/16
4 Krampus Uni. $1,259,765 663 $42,725,475 2.9% 12/4/15
5 Legend Uni. $20,870 13 $1,872,994 1.1% 11/20/15
Summary of 5 Movies on Chart:
Totals: $127,295,815 - - - -
Averages: $25,459,163 - - -

In 2015, Universal’s performance had been carried by the success of “Jurassic

World,” which had grossed $636 million domestically and is the highest grossing
film all-time world-wide with $1.6 billion, according to data from Box Office
Mojo. Domestic grosses from “Furious 7” ($351 million), “Minions” ($303
million) and “Pitch Perfect 2” ($184 million) have also been big hits for the studio.

Units
Divisions

 Universal Television
 Universal Pictures Home Entertainment
 Focus Features

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  Gramercy Pictures label
 Working Title Films
 Illumination Entertainment
 Universal Animation Studios
Joint ventures

 United International Pictures

COMPETITORS
The film industry is usually dominated by various studios with a huge financial backing.
Some of the main competitors of Universal Studios are:
The Walt Disney Company
CBS Corporation
Fox Filmed Entertainment
COMPETITIVE STRATEGY
Piramal Healthcare Limited an innovation led company, has acquired Decision Resources
Group a US based company in the healthcare information segment. Decision Resources Group
provides high-quality, web-enabled research, predictive analytics via proprietary databases and
consulting services to the global healthcare industry.
Commenting on the DRG acquisition, Ajay Piramal, Chairman of Piramal Healthcare said, “The
global healthcare industry is facing several challenges including rising research costs, lower drug
approval rates, mounting regulatory pressures and increasingly complex reimbursement models.
The need for specialist information is critical and the demand is growing. DRG’s portfolio of
products is widely regarded as the gold standard of information. We will leverage our
longstanding reputation and relationships with global pharma companies, our knowledge of
emerging markets as well as our track record of successful acquisitions as we continue to grow
further DRG’s leadership position in the healthcare information and analytics industry.”
MrPiramal added, “We’re very pleased to add the expertise of a world-class management team
with deep understanding of this sector and nearly 300 analysts with a strong track record in their
field.”

CORPORATE STRATEGY
27 | P a g e
 Piramal Healthcare’s medium-term business model envisages achieving leadership in the
domestic pharmaceuticals market, and building a strong de-risked international business around
the company’s core strengths in manufacturing, marketing and R&D.
Piramal Healthcare has some of the strongest brands in India and a demonstrated ability to build
brands and leadership through markets characterized by intense competition. The company's
strategy of leveraging its competencies, built assiduously over the years through a growing
domestic market, and addressing manufacturing opportunities in the developed global
pharmaceutical markets sharply defines their strategic intent. The Indian domestic market is
significant since it represents the base on which Piramal Healthcare is building a global business
model. India represents a sixth of humanity. Although buying power and pharmaceuticals
penetration is currently lower than some of the more developed markets, it is expected to grow to
US $ 25 billion by the year 2010.Piramal HealthCare has an unmatched record of managing Joint
Ventures /Alliances / Partnerships and a proven commitment to IPR. Capabilities include sales &
marketing, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic
Research, process innovation, Custom Chemical Synthesis, Formulations R&D, NDDS, and a
world-class Clinical Research Organization.

Key Executives for Universal Studios, Inc.

Mr. Arturo Barquet
Senior Vice President and Chief Financial Officer of Universal Pictures
Mr. Thomas L. Williams
Chairman of Recreation Group and Chief Executive Officer of Recreation Group
Age: 67
Mr. Larry Kurzweil
President of Universal Studios Hollywood and Chief Operating Officer of Universal Studios Hollywood
Mr. Adriene Bowles
President of Worldwide Publicity-Focus Features and Executive Vice President of Marketing-Focus
Features
Mr. Peter Levinsohn
President of Universal Pictures and Chief Distribution Officer of Universal Pictures

MARKETING MIX STRATEGY

Piramal can leverage opportunities and manage all challenges that could arise in the
domestic Indian market. The restructuring of their product portfolio into primary, secondary and

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tertiary brands in 2001-02 has helped create power brands that are now growing above industry
growth rates. New products have a sharper focus with a specialized management team looking
into opportunities and launches. In the last 2 years, PIRAMAL HEALTHCARE has grown
market share through a combination of new products, innovative selling and brand management.
In-licensing and Alliances remain an important component of their strategy for the near to
medium term. Given its importance in their strategy, the company has a dedicated management
team to source new product and alliances opportunities, both domestically and globally.

Paramount Pictures

INTRODUCTION

Paramount Pictures Corporation (commonly known as Paramount Studios or

simply Paramount, and formerly known as Famous Players-Lasky Corporation) is a film
studio, television production company and motion picture distributor, consistently ranked as one of
the "Big Six" film studios of Hollywood. It is a subsidiary of U.S. media conglomerate Viacom.
Paramount is a member of the Motion Picture Association of America (MPAA).

29 | P a g e
In 2014, Paramount Pictures became the first major Hollywood studio to distribute all of its films in
digital-form only.

Paramount is the fifth oldest surviving film studio in the world, and America's oldest running studio,
founded in 1912.

HISTORY:

1911–1920: Early history

Paramount is the fifth oldest surviving film studio in the world after the French studios Gaumont Film
Company (1895) and Pathé(1896), followed by the Nordisk Film company (1906), and Universal
Studios (1912).[6] It is the last major film studio still headquartered in the Hollywood district of Los
Angeles.

Paramount Pictures dates its existence from the 1912 founding date of the Famous Players Film
Company. Hungarian-born founder,Adolph Zukor, who had been an early investor in nickelodeons,
saw that movies appealed mainly to working-class immigrants.[7] With partners Daniel
Frohman and Charles Frohman he planned to offer feature-length films that would appeal to the
middle class by featuring the leading theatrical players of the time (leading to the slogan "Famous
Players in Famous Plays"). By mid-1913, Famous Players had completed five films, and Zukor was
on his way to success. Its first film was Les Amours de la reine Élisabeth, which starred Sarah
Bernhardt.

That same year, another aspiring producer, Jesse L. Lasky, opened his Lasky Feature Play
Company with money borrowed from his brother-in-law, Samuel Goldfish, later known as Samuel
Goldwyn. The Lasky company hired as their first employee a stage director with virtually no film
experience, Cecil B. DeMille, who would find a suitable location site in Hollywood, near Los Angeles,
for his first feature film, The Squaw Man.

Paramount Pictures logo, based on a design by founder William Wadsworth Hodkinson, from 1917 to 1967.

30 | P a g e
Starting in 1914, both Lasky and Famous Players released their films through a start-up company,
Paramount Pictures Corporation, organized early that year by a Utah theatre owner, W. W.
Hodkinson, who had bought and merged several smaller firms. Hodkinson and actor, director,
producer Hobart Bosworth had started production of a series of Jack London movies. Paramount
was the first successful nationwide distributor; until this time, films were sold on a statewide or
regional basis which had proved costly to film producers. Also, Famous Players and Lasky were
privately owned while Paramount was a corporation.

In 1916, Zukor maneuvered a three-way merger of his Famous Players, the Lasky Company, and
Paramount. Zukor and Lasky bought Hodkinson out of Paramount, and merged the three companies
into one. The new company Lasky and Zukor founded, Famous Players-Lasky Corporation, grew
quickly, with Lasky and his partners Goldwyn and DeMille running the production side, Hiram
Abrams in charge of distribution, and Zukor making great plans. With only the exhibitor-owned First
National as a rival, Famous Players-Lasky and its "Paramount Pictures" soon dominated the
business.

2005–present: Paramount today

CBS Corporation/Viacom split
Main article: CBS Corporation

Paramount Pictures' studio lot in Hollywood (Melrose Gate entrance)

Reflecting in part the troubles of the broadcasting business, in 2005 Viacom wrote off over
$18 billion from its radio acquisitions and, early that year, announced that it would split itself in two.
The split was completed in January 2006.[48][49]

With the announcement of the split of Viacom, Dolgen and Lansing were replaced by former
television executives Brad Grey and Gail Berman.[50][51] The Viacom Inc. board split the company into
CBS Corporation and a separate company under the Viacom name. The board scheduled the
division for the first quarter of 2006. Under the plan, CBS Corp. would comprise CBS and UPN
networks, Viacom Television Stations Group, Infinity Broadcasting, Viacom Outdoor, Paramount
Television, KingWorld, Showtime, Simon and Schuster, Paramount Parks, and CBS News. The
revamped Viacom would include "MTV, VH1, Nickelodeon, BET and several other cable networks as
well as the Paramount movie studio".[52] Paramount's home entertainment unit continues to distribute

31 | P a g e
the Paramount TV library throughCBS DVD, as both Viacom and CBS Corporation are controlled
by Sumner Redstone's National Amusements.[53]

In 2009, CBS stopped using the Paramount name in its series and changed the name of the
production arm to CBS Television Studios, eliminating the Paramount name from television, to
distance itself from the latter.

DreamWorks purchased

On December 11, 2005, The Paramount Motion Pictures Group announced that it had
purchased DreamWorks SKG (which was co-founded by former Paramount executiveJeffrey
Katzenberg) in a deal worth $1.6 billion. The announcement was made by Brad Grey, chairman and
CEO of Paramount Pictures who noted that enhancing Paramount's pipeline of pictures is a "key
strategic objective in restoring Paramount's stature as a leader in filmed entertainment."[54] The
agreement does not include DreamWorks AnimationSKG Inc., the most profitable part of the
company that went public the previous year.[55]

On October 6, 2008, DreamWorks executives announced that they were leaving Paramount and
relaunching an independent DreamWorks. The DreamWorks trademarks remained with
DreamWorks Animation when that company was spun off before the Paramount purchase, and
DreamWorks Animation transferred the license to the name to the new company.[56]

UIP, Famous Music and Digital Entertainment

In 2007, Paramount sold another one of its "heritage" units, Famous Music, to Sony/ATV Music
Publishing (best known for publishing many songs by The Beatles, and for being co-owned
by Michael Jackson), ending a nearly-eight-decade run as a division of Paramount, being the
studio's music publishing arm since the period when the entire company went by the name "Famous
Players."[57]

In early 2008, Paramount partnered with Los Angeles-based developer FanRocket to make short
scenes taken from its film library available to users on Facebook. The application, called VooZoo,
allows users to send movie clips to other Facebook users and to post clips on their profile pages.
[58]
 Paramount engineered a similar deal withMakena Technologies to allow users
of vMTV and There.com to view and send movie clips.[59]

In March 2010, Paramount founded Insurge Pictures, an independent distributor of "micro budget"

films. The distributor planned ten movies with budgets of $100,000 each.[60]The first release was The
Devil Inside, a movie with a budget of about US$1 million.[61] In March 2015, following waning box
office returns, Paramount shuttered Insurge Pictures and moved its operations to the main studio.

In July 2011, in the wake of critical and box office success of the animated feature, Rango, and the
departure of DreamWorks Animation upon completion of their distribution contract in 2012,
Paramount announced the formation of a new division, devoted to the creation of animated

32 | P a g e
productions.[62] It marks Paramount's return to having its own animated division for the first time since
1967, when Paramount Cartoon Studios shut down (it was formerly Famous Studios until 1956).[63]

In December 2013, The Walt Disney Studios (via its parent company's purchase of LucasFilm, Ltd. a
year earlier[64]) purchased Paramount's remaining distribution and marketing rights to future Indiana
Jones films, while Paramount will continue to distribute the first four films for Disney, and will receive
"financial participation" from any additional films.[65][66][67]

Investments
DreamWorks
In 2006, Paramount became the parent of DreamWorks SKG. Soros Strategic Partners and Dune
Entertainment II soon afterwards acquired controlling interest in the live-action films released
through September 16, 2005, the latest film in this package was Just Like Heaven. The remaining
live-action films through March 2006 remained under direct Paramount control.

However, Paramount does own distribution (and other ancillary) rights to the Soros/Dune films.

On February 8, 2010, Viacom repurchased Soros' controlling stake in the pre-2005 DreamWorks
Pictures library for around $400 million.[68]

Even as DreamWorks switches distribution of live-action films that are not part of existing franchises
to Walt Disney Studios Motion Pictures, Paramount will continue to own the films released before the
merger, and the films that Paramount themselves distributed (including sequel rights; such films
as Little Fockers will be distributed by Paramount andDreamWorks, since it is a sequel to an
existing DreamWorks film – in this case, Meet the Parents and Meet the Fockers, though Paramount
will only own international rights to this title, whereas Universal Studios will handle domestic
distribution[69]).

As for the DreamWorks Animation library, Paramount owned distribution rights to the pre-2013

library, and their previous distribution deal to future DWA titles expired at the end of 2012 with the
last Paramount-distributed feature, Rise of the Guardians. 20th Century Fox now handles distribution
on future titles beginning with The Croods,[70] though Paramount's rights to distribute every film
released by DreamWorks Animation before 2013 will expire 16 years after each film's initial theatrical
release date. However, in July 2014, DreamWorks Animation purchased Paramount's distribution
rights to the pre-2013 library with DreamWorks Animation's current distributor 20th Century Fox to
distribute the library.[71]

CBS library

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Independent company Hollywood Classics now represents Paramount in the theatrical distribution of
all the films produced by the various motion picture divisions of CBS over the years, as a result of
the Viacom/CBS merger.

Paramount (via CBS Home Entertainment) has outright video distribution to the aforementioned CBS
library with few exceptions-for example, the original Twilight Zone DVDs are handled by Image
Entertainment. Until 2009, the video rights to My Fair Lady were with original theatrical
distributor Warner Bros., under license from CBS (the video license to that film has now reverted to
CBS Home Entertainment under Paramount).

The CBS-produced/owned films, unlike other films in Paramount's library, are still distributed by CBS
Television Distribution on TV, and not by Trifecta Entertainment & Media, because CBS (or a
subdivision) is the copyright holder for these films.

Units
Subsidiaries

 Paramount Licensing, Inc.

 Paramount Home Media Distribution
Divisions

 Paramount Digital Entertainment

 Paramount Pictures International
 Paramount Studio Group – physical studio and post production
 The Studios at Paramount – production facilities & lot
 Paramount on Location – production support facilities throughout North America
including New York, Vancouver, and Atlanta
 Worldwide Technical Operations – archives, restoration and preservation programs,
the mastering and distribution fulfillment services, on-lot post production facilities
management
 Paramount Television (revived in March 2013. Old Paramount Television is now CBS
Television Studios)
 Worldwide Television Distribution
 Paramount Famous Productions, direct-to-video
 Paramount Parks & Resorts, licensing and design for parks and resorts[72]
 Paramount Motion Picture Group
 Paramount Pictures

34 | P a g e
  Viacom Media Networks branded labels:
 MTV Films
 Nickelodeon Movies
 Insurge Pictures, micro-budget film (March 2015-)[60]
 Paramount Animation (2011–present)[62]
 Paramount Vantage[73]
 Republic Pictures
Joint ventures

 Epix (TV channel)

 United International Pictures

Production deals
Active

 Bad Robot (2006—)
 Di Bonaventura Pictures (2003-)
 Disruption Entertainment (2011-)
 Fake Empire Productions (2011-)
 Jerry Bruckheimer Films[77] (1983-1990; 2014-)
 The Montecito Picture Company
 Platinum Dunes
 Plan B Entertainment (2005-)
 Skydance Productions (2011-)[78] (2010-)
Former

 Cruise/Wagner Productions (-2011)
 Gary Sanchez Productions (-2011)[78]
 DreamWorks Animation (2006-2012)
 Marvel Studios (2008-2011)[77][79]

Highest-grossing films

35 | P a g e
 Highest-grossing films
Ran Yea Domestic
Title Notes
k r gross
Distributed internationally by 20th Century
1 Titanic* 1997 $658,672,302
Fox.
Transformers: Revenge Distributed internationally by DreamWorks
2 2009 $402,111,870
of the Fallen Pictures.
Transformers: Dark of
3 2011 $352,390,543
the Moon
4 Forrest Gump* 1994 $330,252,182
Distribution only. Owned and produced
5 Shrek the Third 2007 $322,719,944
by DreamWorks Animation.
Distributed internationally by DreamWorks
6 Transformers 2007 $319,246,193
Pictures.
Distribution only; produced by Marvel
7 Iron Man 2008 $318,412,101 Studios. Distribution rights were transferred
to the Walt Disney Studios in 2013.[87]
Indiana Jones and the
8 Kingdom of the Crystal 2008 $317,101,119
Skull
Distribution only; produced by Marvel
9 Iron Man 2 2010 $312,433,331 Studios. Distribution rights were transferred
to the Walt Disney Studios in 2013.[87]

10 Star Trek 2009 $257,730,019

DIVISIONS
Paramount Digital Entertainment
Paramount Digital Entertainment brings tailored entertainment to consumers through today's
evolving digital distribution platforms. In addition to offering current and classic movies, and
interactive gaming apps through digital distribution sites like iTunes, Paramount Digital
Entertainment gives movie fans access to sharing movie clips with friends through VooZoo on
Facebook, the opportunity to view exclusive film content on mobile phones or to play Paramount-
inspired videogames, and the ability to watch movies on Xbox 360 or Playstation 3 consoles, among
other innovative ways to enjoy Paramount content.

 
Paramount Home Media Distribution

36 | P a g e
Paramount Home Media Distribution (PHMD) oversees home entertainment, digital and television
distribution activities worldwide. The division is responsible for the sales, marketing and distribution
of home entertainment content on behalf of Paramount Pictures, Paramount Animation, Paramount
Vantage, Paramount Classics, Insurge Pictures, MTV, Nickelodeon, Comedy Central and CBS and
applicable licensing and servicing of certain DreamWorks Animation titles.  PHMD additionally
manages global licensing of studio content and distribution across worldwide digital and television
distribution platforms including online, mobile and portable devices and emerging technologies.

 
Paramount Pictures International
Paramount Pictures International is responsible for marketing and distributing Paramount movies to
audiences around the world, with offices in the United Kingdom, France, Germany, Spain, Brazil,
Mexico, Japan, Australia and New Zealand. Learn More

 
Paramount Licensing, Inc.
Paramount Licensing handles worldwide licensing and consumer products for all Paramount
properties.  From highly sought after collectibles based on THE GODFATHER franchise and trend-
driven GREASE and FOOTLOOSE apparel and accessory lines, to the cult classic THE
WARRIORS.

 
Paramount Studio Group
Open to filmmakers and production companies of all sizes, The Studios at Paramount offers world-
class production facilities for feature films, television shows and commercials.  Paramount's 62-acre
lot is one of Hollywood’s preferred production locations, with nearly thirty sound stages, and the
historic and popular “New York Street” featuring ten distinct neighborhood backdrops.   The studio is
also home to the new 90,000 square foot state of the art post production sound facility operated by
Technicolor.   Beyond Hollywood, Paramount On Location operates production support facilities
throughout North America including New York, Vancouver, and Atlanta.    The Studio Group also
includes Paramount’s Worldwide Technical Operations which oversees the studio’s archives,
restoration and preservation programs, the mastering and distribution fulfillment services, as well
as managing Paramount’s on-lot post production facilities.

 
Worldwide Television Distribution
The Worldwide Television Distribution group is responsible for distributing Paramount Pictures
Corporation's product to a variety of television media including Pay- Per-View/VOD, Pay Television
networks and Free Television broadcasters.

 
Paramount Famous Productions

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 Paramount Famous Productions is the made-for-home entertainment division of Paramount Pictures
Corporation. The division develops and produces prequels, sequels and remakes based on the
libraries of Paramount Pictures, Paramount Vantage, DreamWorks Pictures, MTV Films and
Nickelodeon Movies, as well as other renowned properties.

 
Paramount Parks & Resorts
Paramount Parks & Resorts oversees the licensing and creative design of world-class theme parks,
restaurants, hotels & resorts, retail/dining/entertainment districts, attractions and stage plays.
Projects around the world leverage the iconic Paramount logo and films from the studio's legendary
motion picture library.

ORGANIZATION STRUCTURE:

EXECUTIVES
 B R A D G R E Y - Brad Grey is Chairman and Chief Executive Officer of Paramount
Pictures Corporation.
 R O B M O O R E - Rob Moore serves as the Vice Chairman of Paramount Pictures. He is
responsible for overseeing the studio’s Worldwide Marketing, Distribution, Home
Entertainment, Digital, Interactive, Television, Licensing, and Business Affairs divisions.
 F R E D E R I C K H U N T S B E R R Y - Frederick Huntsberry was named Chief Operating
Officer, Paramount Pictures in July 2006.  He is responsible for worldwide strategic planning
and operations for the studio including finance, IT, human resources, industrial relations,
studio operations, parks and resorts, sourcing, community and government relations and the
office of the general counsel.
 M A R C E V A N S - Marc Evans is President, Motion Picture Group at Paramount Pictures,
a position he assumed in 2015. He most recently served as President of Production. Evans
joined Paramount in August 2003 as Vice-President of Production before being promoted to
Senior Vice President in 2006 and Executive Vice President in 2008.
 A M Y P O W E L L - Amy Powell is President of Paramount Television, the newly-created
television arm of the studio responsible for financing and developing television content for
broadcast, premium cable, cable and online audiences.  The division produces original
programming as well as television adaptations of select movies from the studio’s rich film
library.  Upcoming shows ordered to series include School Of Rock (Nickelodeon), Alienist
(TNT), Berlin Station (EPIX), 13 Reasons Why (Netflix), and Shooter (USA). 

DIVISON EXECUTIVES
38 | P a g e
  M A R K B A D A G L I A C C A - Mark Badagliacca has been serving as Executive Vice
President and Chief Financial Officer for Paramount Pictures since 2000. He is
responsible for corporate finance, treasury, accounting and financial planning.
 R A N D A L L B A U M B E R G E R - As President, Paramount Studio Group, Randall
Baumberger is responsible for overseeing the studio's operations, as well as its diverse
range of production, technical, and event services. He joined the studio in February 2008. 
 M E G A N C O L L I G A N - Megan Colligan is President of Worldwide Distribution and
Marketing for Paramount Pictures, a position she has held since 2014, having previously
served as Co-President of Domestic Marketing and Distribution.
 E R I K C O U N T E R - Erik Counter is President of Worldwide Creative Marketing for
Paramount Pictures, a position he has held since 2014, having previously served as
Executive Vice President of Domestic Marketing.
 N I C H O L A S C R A W L E Y - As President, International Marketing and Distribution, Nic
Crawley is responsible for the design, development and implementation of all international
sales, distribution, marketing and advertising strategies for Paramount Pictures’
international theatrical releases.
 C A T H E R I N E H O U S E R - As Executive Vice President of Worldwide Human
Resources, Catherine Houser is responsible for leading Paramount’s global human
resources division, including talent acquisition, training, internal communications,
operations and benefits.  
 A M Y R E I N H A R D - As President, Worldwide Television and Home Media
Acquisitions, Amy Reinhard oversees the worldwide sales and licensing of all Paramount
Studios content across all linear, Subscription Video-On-Demand (SVOD) and Free Video-
On-Demand (FVOD) platforms along with worldwide acquisitions for home media.
 S T E V E S I S K I N D - As President of Domestic Marketing, Steve Siskind is responsible
for the development and implementation of all marketing and advertising strategies for
Paramount Pictures’ domestic theatrical releases.
 L E E A N N E S T A B L E S - As President, Worldwide Marketing Partnerships &
Licensing, LeeAnne Stables brings together the responsibilities of managing key corporate
brand relationships in theatrical and home media windows, film integrations and studio
licensing.

39 | P a g e
STRATEGY
Viacom’s strategy for Paramount Pictures: Limit financial risks
Viacom is the parent company of Paramount Pictures.
Paramount Pictures' movie strategy has long revolved around managing
financial risk.
"We never want to wake up with a big loss on an individual
movie," Viacom Chief Executive Philippe Dauman told investors Monday at
the UBS' 41st Annual Global Media and Communications Conference.
The studio imposes its cost containment policy by limiting its release schedule
to about 15 films a year. Paramount intends to "build a slate around the
franchise movies that we control”

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MARKET SHARE

January 1–February 7, 2016

Top 10

Market Total Movies 2016

Rank Distributor
Share Gross(mn) Tracked Movies
1 Buena Vista 24.1% $284.1 4 1
2 20th Century Fox 23.6% $278.2 7 1
3 Paramount 14.4% $170.1 4 1
4 Universal 10.8% $127.3 5 2
5 Lionsgate 5.4% $63.5 6 3
6 Sony / Columbia 4.5% $52.6 7 2
7 Weinstein Company 4.2% $49.4 6 2
8 Focus Features 2.7% $32.3 3 1
9 STX Entertainment 2.3% $27.0 2 1
10 Warner Bros. 2.1% $25.3 12 0

Paramount Pictures currently ranks 3rd in the overall market share with a
whopping 170.1 million dollars grossed in the months of January till the 7th of Feb.

COMPETITORS:
 WARNER BROS. ENTERTAINMENT INC.
 FOX FILMED ENTERTAINMENT
 THE WALT DISNEY STUDIOS
 SONY PICTURES
 UNIVERSAL STUDIOS
 BUENA VISTA

41 | P a g e
 Walt Disney Studios

HISTORY

1980s
By the 1980s, The Walt Disney Company's collection of film units emerged as one of
Hollywood's "Big Six" film studios, mostly due to newly designed efforts in branding strategies, a
resurgence of Walt Disney Pictures' animated releases and unprecedented box office successes,
particularly from Touchstone Pictures.The Walt Disney Productions film division was incorporated
on April 1, 1983 as Walt Disney Pictures. In April 1983, Richard Berger was hired by Disney
CEO Ron W. Miller as film president. Touchstone Films was started by Miller in February 1984 as a
label for their PG-rated films with an expected half of Disney's 6 to 8 movies yearly slate would be
released under the label. Berger was pushed out as a new CEO was appointed for Walt Disney
Productions later in 1984, as Michael Eisner brought his own film chief, Jeffrey Katzenberg.

Organized in 1985, Silver Screen Partners II, L.P. financed films for Disney with $193 million in
funding. In January 1987, Silver Screen III began financing movies for Disney with $300 million
raised, the largest amount raised for a film financing limited partnership by E.F. Hutton.

In April 1988, Touchstone became a unit of Walt Disney Pictures with newly appointed head Ricardo
Mestres. With several production companies getting out of film production or closing shop by
December 1988, Walt Disney Studios announced the formation of Hollywood Pictures division,
which would only share marketing and distribution with Touchstone, to fill the void. Walt Disney
Television and Touchstone Television were grouped together under Garth Ancier as president of
network television for The Walt Disney Studios on April 18, 1989.

Late in the 1980s, Disney purchased a controlling stake in one of Pacific Theatres' chain leading to
Disney's Buena Vista Theaters and Pacific to renovate the El Capitan Theatre and the Crest by
1989.The Crest was finished first while El Capitan opened with the premiere of The Rocketeer film
on June 19, 1991.

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1990s
In September 1990, The Walt Disney Company arranged for financing up to $200 million by a unit
of Nomura Securities for Interscope films made for Disney. On October 23, 1990, Disney
formed Touchwood Pacific Partners I to supplant the Silver Screen Partnership series as their movie
studios' primary funding source. In 1992, Walt Disney Studios agreed to fund a production
company, Caravan Pictures, for exiting 20th Century Fox chairman Joe Roth. In 1993, Miramax
Films was purchased for $60 million by Disney.

On March 30, 1992, Disney Studios agreed to sell KCAL-TV to Pineland, Inc. for a 45% ownership
stake in Pineland, so as to have interest in TV stations in both large markets, Los Angeles and New
York City, allowing for increased original programming. Instead Pineland agreed to an unsolicited bid
in May from Chris-Craft Industries thus ending the planned business merger with Disney's KCAL.

David Hoberman was promoted by Katzenberger to president of motion pictures at Walt Disney

Studios in April 1994 from president of Walt Disney Pictures and Touchstone Pictures. While
Ricardo Mestres was forced out as president of Hollywood Pictures in exchange for a production
deal.

On August 24, 1994 with Katzenberg's resignation, Walt Disney Studios was reorganized spinning
out a new TV group. Richard Frank became head of newly formed Walt Disney Television and
Telecommunications (WDTT). Roth moved up from Caravan Pictures to helm the remaining Walt
Disney Studios as chairman. Hoberman stepped down as president in January 1995 to take a five-
year, multi-film deal for his production company, Mandeville Films.

Roth was appointed as chairman of Walt Disney Studios in 1996. In April 1996 due to ongoing post
Disney-CC/ABC merger realignment and retirement of its president, WDTT group's division were
reassigned to other groups with most transferred to The Walt Disney Studios or CC/ABC. Units
returning to the studio were the television production companies, Walt Disney Television, Disney
Television Animation, Touchstone Television and Buena Vista Home Entertainment.

Buena Vista International - Latin America and two other companies became owners of Patagonik
Film Group, an Argentina-based production company, in 1997. Disney'sBuena Vista
Distribution and Cinergi Pictures had a 25-picture distribution deal with Disney taking a 5% stake in
Cinergi stock. After nine films were delivered under the agreement, Cinergi sold Disney
on November 22, 1997 all of its 12 film library accept for Die Hard With a Vengeance plus $20
million in exchange for Disney's Cinergi share holdings, production advances of $35.4 million and
other loans.

In 1998, the Buena Vista Motion Pictures Group was formed by Roth to unite
the Disney, Touchstone and Hollywood film production units with leadership under David Vogel.This
was in order to centralize the various production units and to make live-action film production within
Disney more cost-efficient. Roth also determined that the studio's year production slate should be

43 | P a g e
cut. So in August 1998, Roger Birnbaum, Caravan's co-founder, left to co-found Spyglass
Entertainment at Roth's prompting in which Disney gave Caravan's development slate, a five-year
distribution agreement and an advance. Caravan after the remaining three films are release when
inactive. By May 2000, Disney had taken an equity stake in Spyglass

Peter Schneider was promoted to Studio president in January 1999, while Thomas Schumacher was
promoted to president of Walt Disney Feature Animation and Walt Disney Theatrical
Productions while both are made co-presidents of Disney Theatrical Group. As the first Studio
president, Schneider had supervisory control of all Walt Disney label released films. In July, Walt
Disney Television, including Buena Vista Television Productions, were transferred out of The Walt
Disney Studios to ABC Television Network to merge with ABC's prime-time division to form the ABC
Entertainment Television Group.

2000s
Roth left to form his own production company in January 2000, with Schneider moving up to studio
chairman. Schneider left Walt Disney Studios in June 2001 to form his own theater production
company partly funded by Disney. The studio chairmanship was not filled at the time leaving the
studio's major units, Walt Disney Motion Pictures Group chair Dick Cook, Buena Vista Motion
Pictures Group chair Nina Jacobson and Walt Disney Feature Animation president Schumacher in
charge. In 2002, Cook was named as Studio chairman to replace Peter Schneider. In January 2002,
Buena Vista International - Latin America formed a joint venture production company, Miravista, with
Admira, Telefónica content production and distribution division, for primarily Brazilian and Mexican
film productions.

In January 2003, Disney initiated a reorganization of its theatrical and animation units to improve
resource usage and continued focus on new characters and franchise development. Walt Disney
Feature Animation — sans Walt Disney Television Animation — and Buena Vista Theatrical
Worldwide were organized under The Walt Disney Studios.

In July 2006, Disney announced a shift in its strategy of releasing more Disney-branded (i.e. Walt
Disney Pictures) films and fewer Touchstone titles. The move was expected to reduce the Group's
work force by approximately 650 positions worldwide. After being transferred to various other
division groups since they were acquired in 2004, The Muppets Studio was incorporated into The
Walt Disney Studios' Special Events Group in 2006. In April 2007, Disney retired the Buena
Vista brand, renaming Buena Vista Motion Pictures Group and Buena Vista Pictures Distribution as
Walt Disney Motion Pictures Group and Walt Disney Studios Motion Pictures, respectively.
Hollywood Pictures was also retired as well.

In April 2009, the Studio announced the formation of Disneynature, a nature film production
label. The Studio launched its Kingdom Comics division in May, led by writer-actorAhmet Zappa, TV

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executive Harris Katleman and writer-editor Christian Beranek. Kingdom was designed to create
new properties for possible film development and re-imagine and redevelop existing Disney library
movies, with Disney Publishing Worldwide getting a first look for publishing.

On February 9, 2009, DreamWorks Studios entered a 7-year, 30-picture distribution deal with the

studio's Touchstone Pictures banner starting in 2011. The deal also includes co-funding by Disney to
DreamWorks for production. In late 2009, Miramax Films, a formerly independent Disney film unit,
was transferred to The Walt Disney Studios, until its sale in 2010 to Filmyard Holdings. The Kingdom
Comics unit's creatives/executives moved its deal to an independent Monsterfoot Productions.

2010s
After The Walt Disney Company's acquisition of Marvel Entertainment in 2009, Disney began
distributing Marvel Studios' films in 2012, acquiring the distribution rights for The Avengers and Iron
Man 3 from Paramount Pictures in October 2010. Marvel Studios, however, remained a division of
Marvel Entertainment during that time, working in conjunction with Walt Disney Studios for
distribution and marketing.

In May 2011, Disney India and UTV Motion Pictures agreed to co-produce Disney-branded family

films with both handling creative function and UTV producing, marketing and distributing the films. In
2011, Disney fired Marvel Studios' marketing department taking over marketing of their films
beginning with the 2012 film The Avengers.

On October 30, 2012, Lucasfilm agreed to be purchased by The Walt Disney Company and a

new Star Wars trilogy was announced and was finalized on December 4. Later that year on
December 4, Disney agreed to have Netflix as its exclusive U.S. subscription television service for
first run Walt Disney Pictures, Walt Disney Animation Studios, Pixar Animation Studios, Marvel
Studios and Disneynature feature films starting in 2016 to replace its agreement ending in 2015
with Starz.

In April 2013, The Walt Disney Studios laid off 150 workers including staff from its marketing and
home entertainment units. In December of that year, Disney purchased the distribution and
marketing rights to future Indiana Jones films from Paramount Pictures, while Paramount will
continue distributing the first four films and receive "financial participation" from the additional
films. The studio and Shanghai Media Group Pictures signed a multi-year movie development
agreement, before the March 6, 2014 announcement, in which Chinese themes would be
incorporated into Disney branded movies.

In August 2015, Marvel Studios was integrated into The Walt Disney Studios, with president Kevin
Feige now reporting directly to Walt Disney Studios chairman Alan Horn instead of Marvel

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Entertainment CEO Isaac Perlmutter, who continues to oversee Marvel Television and Marvel
Animation that were previously a part of Marvel Studios.

Mission

The mission of The Walt Disney Company is to be one of the world’s leading producers and
providers of entertainment information. Using our portfolio of brands to differentiate our content,
services, and consumer products, we seek to develop the most creative, innovation and profitable
entertainment experiences and related products in the world.

Studio structure

Studio units

Disney
Disney Music Disney Studio
Production Distribution Theatrical
Group Services
Group

Walt Disney Walt Disney Walt Disney Studio

Pictures Studios Motion Disney Records Theatrical Production
Walt Disney Pictures Hollywoo Productions Services
Animation Studios (Touchstone d Records (Disney Walt Disney
(DisneyToon Pictures) Disney on Broadway) Studios
Studios) Walt Disney Music Publishing Disney Golden Oak
Pixar Studios Home Theatrical Ranch
Disneynatur Entertainment Licensing The Prospect
e Walt Disney Disney Studios
Lucasfilm Studios Marketing Live Family KABC7 Studio
Marvel Entertainment B
Studios Disney Digital
Studio
Disney Services
on Ice
Disney

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 Live!
Walt
Disney Special
Events Group

MANAGEMENT TEAM
Robert A. Iger – Chairman and Chief Executive Officer
Thomas O. Staggs – Chief Operating Officer, The Walt Disney Company
Andy Bird – Chairman, Walt Disney International, The Walt Disney Company
Alan Braverman – Senior Executive Vice President, General Counsel and Secretary, The Walt
Disney Company
Bob Chapek – Chairman, Walt Disney Parks and Resorts
Leslie Ferraro – Co-chair, Disney Consumer Products and Interactive Media and President,
Disney Consumer Products
Alan F. Horn – Chairman, Walt Disney Studios
Ronald L. Iden – Senior Vice President, Global Security, Walt Disney Company
Kevin Mayer – Senior Executive Vice President and Chief Strategy Officer, Walt Disney
Company
Christine M. McCarthy – Senior Executive Vice President and Chief Financial Officer, Walt
Disney Company
Zenia Mucha – Executive Vice President and Chief Communications Officer, Walt Disney
Company
Jayne Parker – Executive Vice President and Chief Human Resources Officer, Walt Disney
Company
James Pitaro – Co-chairman, Disney Consumer Products and Interactive Media and President,
Disney Interactive
Ben Sherwood – Co-chair, Disney Media Networks and President, Disney/ABC Television
Group
John Skipper – President, ESPN, and Co-chairman, Disney Media Networks
Brent Woodford – Senior Vice President, Planning and Control

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 BOARD OF DIRECTORS
Robert A. Iger – Chairman and Chief Executive Officer
Susan Arnold – Director since 2007
John S. Chen – Directory since 2004
Jack Dorsey – Director since 2013
Maria Elena Lagomasino – Director since 2015
Fred H. Langhammer – Director since 2005
Aylwin B. Lewis – Director since 2004
Monica C. Lozano – Director since 2000
Robert W. Matschullat – Director since 2002
Mark G. Parker – Director since 2016
Sheryl Sandberg – Director since 2010
Orin C. Smith – Director since 2006

WALT DISNEY COMPANY SEGMENTS

 

Cable Networks    31.6 % of total Revenue

Broadcasting    12.43 % of total Revenue

Media Networks    44.03 % of total Revenue

Parks & Resorts    31.53 % of total Revenue

Studio Entertainment    15.57 % of total Revenue

Consumer Products    7.28 % of total Revenue

Interactive Media    1.59 % of total Revenue

Interactive Media Game sales    1.19 % of total Revenue

Interactive Media Advertising    0.4 % of total Revenue

Media Networks Affiliate Fees    22.65 % of total Revenue

Media Networks Advertising    16.08 % of total Revenue

 

(June 30. 2015) III. Quarter (June 30. 2015)

Business Segments Revenues % Income
(in millions $) (of total Revenues) (in millions $) (P

Cable Networks 4,140.00 31.6 % 0.00

Broadcasting 1,628.00 12.43 % 0.00

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Media Networks 5,768.00 44.03 % 2,378.00

Parks & Resorts 4,131.00 31.53 % 922.00

Studio Entertainment 2,040.00 15.57 % 472.00

Consumer Products 954.00 7.28 % 348.00

Interactive Media 208.00 1.59 % 0.00

Interactive Media Game sales 156.00 1.19 % 0.00

Interactive Media Advertising 52.00 0.4 % 0.00

Media Networks Affiliate Fees 2,967.00 22.65 % 0.00

Media Networks Advertising 2,107.00 16.08 % 0.00

Total 13,101.00 100 % 4,120.00

(June 30. 2015) III. Quarter (June 30. 2015)

Growth rates by Segment Y/Y Revenue  Q/Q Revenue Y/Y Income
% % %

Cable Networks 5.02 % 2.73 % -

Broadcasting 3.76 % -8.54 % -

Media Networks 4.66 % -0.72 % 3.57 %

Parks & Resorts 3.79 % 9.87 % 8.73 %

Studio Entertainment 12.89 % 21.07 % 14.84 %

Consumer Products 5.76 % -1.75 % 27.47 %

Interactive Media -21.8 % -11.49 % -

Interactive Media Game sales -23.53 % -16.58 % -

Interactive Media Advertising -16.13 % 8.33 % -

Media Networks Affiliate Fees 4.29 % -2.14 % -

Media Networks Advertising -1.63 % 7.06 % -

Total 5.09 % 5.14 % 7.63 %

Revenue of the Walt Disney Company in different geographic regions

from 2010 to 2015 (in million U.S. dollars)
This statistic contains data on the revenue of the Walt Disney Company in different geographic
regions from 2010 to 2015. In 2011, the Walt Disney Company generated a total revenue of 6.55
billion U.S. dollars in Europe.

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COMPANY TURNOVER
The Company recorded consolidated sales of Rs. 99,769 million against Rs. 85,507 million in the
previous year, registering a growth of 17%. The growth in turnover was mainly on account of
revenues from First to File product, Atorvastatin, in the US market in December 2011. Profit
before exceptional items and tax stood at Rs. 10,480 million against Rs. 18,260 million for the
previous year.

COMPETITORS
Being a diversified entertainment company, Disney faces a number of competitors in its various
segments. Some of the main media conglomerates with which Disney competes include Viacom
Inc (VIAB), Time Warner Inc. (TWX), Twenty-First Century Fox (FOXA), CBS (CBS), and
Comcast (CMCSA).

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MARKET SHARE

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 CHAPTER 3
RESEARCH METHODOLOGY

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Objectives:

 Understand the structure and functions of pharmaceutical industry

 Understand how the different departments function and the internal activities between
them.
 To know the strengths and weaknesses of the companies in the industry.
 The origination and sustainability of pharmaceutical industry.
 To know what it contributes to the country.

Limitations:
The limitations of the study are as follows:

 The time constraint was the reason why we can’t do an in depth study into the
organization.
 The company was reluctant to reveal some official reports and documents as it is kept
confidential.
 Data inconsistency is the reason which may lead to inaccurate information of the
industry.

Scope
Over the years pharmacy has grown in the form of pharmaceuticals sciences through
research and development processes. It is related to product as well as to services. The
various drugs discovered and developed are its products and the healthcare it provides under
the category of services.

Pharmacy involves all the stages that are associated with the drugs i.e. discovery,
development, action, safety, formulation, use, quality control, packaging, storage,
marketing, etc. This profession has a large socio-economic relevance to the Indian economy.
In India this sector is among the future economy drivers. It is committed to deliver high
quality drugs and formulations at an affordable price, so that majority of people can afford
them.The Indian Pharmaceuticals market is expected to reach US$ 55 billion in 2020.

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Data Collection Methods:
The data has been collected through secondary data collection method through various
means such as internet, magazines, journals and newspaper.

Literature Review:
PIRAMAL:

Recently Piramal Healthcare decided to rename its company as Piramal Enterprises so as to

reflect its recent entry into diversified business activities.
The company has entered into telecom and information management and financial service
sectors after selling its domestic formulation business to Abbott for Rs 17,600 crore in 2010.
The company has enough cash flows as they go into the future but it is still yet to receive the
cash from Abbott over the next 3 years. Also, Piramal has made an equity investment of Rs
5,862 crore in Vodafone India as short-term investment for the next two to three years and
they believe that this investment would generate attractive returns.
All the pharma companies are looking at ways to reduce the costs. Thus, Piramalis eyeing
opportunities which will provide sustainable returns in sectors having high growth potential
and where it can derive significant advantage.
Piramal is growing its OTC business which has a strong brand portfolio as the OTC sector
has potential of continued high growth. The company has also invested funds in R & D.
Thus, Piramalstrides towards creating a truly innovation-driven global pharma business.
(Piramal Healthcare to be renamed to reflect diversification, July 19, 2012)

Selling domestic formulation business to US-based Abbott Labs for Rs 17,000 crore gave
Piramala war chest and new-found confidence to chase ambitions.The drug maker’s buyout
compass will now be centred on niche global companies and the company will persist with
its tested growth strategy of acquisitions to be counted among the world's top five contract
manufacturing firms by 2015.
Ajay Piramal wants to make the company among the top five contract research and
manufacturing services (CRAMS) company that essentially makes drugs for global drug
powerhouses in the next three-five years. The company would target rivals especially in the
US and Europe that boast of good technology, people and a strong customer base.

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Following a string of buyouts like Swiss major Roche, German company Boehringer
Mannheim, Hoechst MarrionRoussel Research Centre, Rhone Poulenc India, ICI India
Pharma Division and Aventis' research facilities helped Piramal grow into aRs 3,700-crore
company.(Piramal charts global acquisition plan to grow contract research biz, June
28, 2010)

As Piramal had announced to acquire 100 percent stake in DRG, it has completed
acquisition of the US-based Decision Resources Group (DRG) for $635 million. This
acquisition reflects the company’s strategy to continue investing in strong intellectual
property in the healthcare space.
The US-based firm provides web-enabled research, predictive analytics via proprietary
databases and consulting services to the global healthcare industry. With 20 percent CAGR
for the last five years, it is one of the fastest growing companies in the $5.7 billion global
healthcare information industry. DRG projects revenues of $160 million for 2012.
The three market segments DRG focuses on are worth approximately $2.5 billion. They
include biopharma — providing databases and advisory services on drug utilisation trends
and forecasting in different therapeutic areas; market access — providing similar services to
assess current and future opportunity of product acceptance; and the medical technology
business — providing actionable insights on the medical device markets.
This deal will strengthen the company’s pharma research and development business.
(Piramal Health to pay Rs 3,400 crore for US Co. Decision Resources Group, May 16)

CIPLA
This article brings to light that Cipla Ltd., one of India's largest generic drug
manufacturers, is cutting prices on its cancer medicines by up to 75%, a move likely to
further complicate efforts by big Western pharmaceutical companies seeking to develop
their businesses in India. Cipla's decision to slash prices came only weeks after India's
patent authority forced Germany's Bayer AG to grant a license to another Indian generic

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 drug producer for its kidney and liver cancer medicine Nexavar. This article states that
Mumbai-based Cipla had been selling sorafenib, the generic version of Nexavar, since
2010, after Bayer's legal attempts in India to block the drug failed. Bayer then brought a
patent infringement case against Cipla in India, which is ongoing. Cipla said it will cut
the price of its generic version of Nexavar to 6,840 rupees ($128) for a month's supply
from 28,000 rupees ($523).Cipla also slashed the cost of its copies of AstraZeneca PLC's
lung-cancer drug Iressa by almost 60% and brain-cancer drug temozolamide by 75%. Y.
K. Hamied, Cipla's chairman and managing director, cast the move as an attempt to bring
cheap cancer medicines to the world, just as the company became a champion of HIV
patients in Africa a decade ago by using its cheaper manufacturing base to sell AIDS
drugs at a deep discount. Cipla plans to later sell these low-priced cancer drugs in other
developing countries, he added.

(The Wall Street Journal, by Rumman Ahmad)

This article focuses on the New Pharma PricingPolicy (NPPP) presented by the
government in the Supreme Court. Now it needs to be seen as to what stance the Supreme
Court takes on the new policy which was modified to fix ceiling price for the drugs covered
by National List of Essential Medicines (NLEM) 2011 based on the simple average price
(versus weighted average price earlier) of all the brands having market share of more than
1%. There has been a logjam over the finalization of the NPPP as the Supreme Court
objected to the NPPP 2011 proposed by Government in 2011 in which the ceiling price was
based on Weighted Average Price (WAP) of top three brands, post which the government
formed a GOM to look into the matter and come out with a new policy. The GOM, in
September 2012, proposed a new policy in which the ceiling price was based on WAP of all
the brands having market share of more than 1%. However, there was objection from both
Finance Ministry and Supreme Court to this policy on various grounds. Now, the policy has
been finally approved by the cabinet which is based on simple average price mechanism to
decide the ceiling price of the drugs covered under NLEM. Some other issues that may
further delay the entire process. The possible inclusion of combination drugs will have
serious implications on the pharmaceutical companies as this will expand the coverage of
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price control from the current 30% to 60-75%. Based on the current policy, Cipla, Dr
Reddy’s Lab, Ranbaxy, GSK Pharma’s revenue from domestic formulation is likely to be
impacted by 5-10%.
(CNBS TV, Wed, Nov 28, 2012)

This article focuses on bringing up the news of acquisition by Cipla over South
African drug maker CiplaMedpro.Cipla claimed it will buy 51% of CiplaMedpro for about
$220 million, valuing the beleaguered South African company at about $440 million. This is
Cipla's first international acquisition in its 75-year-old history.  The huge step Cipla takes to
further develop the company and advance it in other parts of the world as well. This is how
Cipla is seen worldwide in such prospering companies. With this acquisition, South Africa
will become the second-largest drug market for Cipla, which hopes to capture 5% of the
market. Cipla has been consolidating its position as India's second-biggest drugmaker. In the
past three years, its revenues have grown 41.53% while the Indian drug market, estimated at
about Rs 60,000 crore, has been growing at about 15%. Also by this acquisition Cipla gets
access to new segments. The acquisition will give Cipla a presence in respiratory drugs and
those needed to combat illnesses of the central nervous system. Till date, Cipla only had a
profit-sharing agreement with Medpro, as the company would source all its products from
Cipla, so this deal is a valid extension of that partnership.  Cipla announced after its last
quarter financial results that the company's future will be the international markets, a
reflection of this is the contribution of international business to its revenues. In the last
quarter, it was 56% of the total business. 
(The Times of India, by Divya Rajgopala)

RANBAXY
 Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an
integrated, research based, international pharmaceutical company producing a wide range of
quality, affordable generic medicines, trusted by healthcare professionals and patients across
geographies. Ranbaxy's continued focus on R&D has resulted in several approvals, in
developed and emerging markets many of which incorporate proprietary Novel Drug

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Delivery Systems (NDDS) and technologies, developed at its own labs. The company has
further strengthened its focus on generics research and is increasingly working on more
complex and specialty areas. Ranbaxy serves its customers in over 125 countries and has an
expanding international portfolio of affiliates, joint ventures and alliances, ground
operations in 43 countries and manufacturing operations in 8 countries. Ranbaxy is a
member of the Daiichi Sankyo Group. Through strategic in-licensing opportunities and its
hybrid business model with Daiichi Sankyo, a leading global pharma innovator
headquartered in Tokyo, Japan, Ranbaxy is introducing many innovator products in markets
around the world, where it has a strong presence. This is in line with the company's
commitment to increase penetration and improve access to medicines, across the globe The
Daiichi Sankyo Group is dedicated to the creation and supply of innovative pharmaceutical
products to address the diversified, unmet medical needs of patients in both mature and
emerging markets. While maintaining its portfolio of marketed pharmaceuticals for
hypertension, hyperlipidemia, and bacterial infections, the Group is engaged in the
development of treatments for thrombotic disorders and focused on the discovery of novel
oncology and cardiovascular-metabolic therapies. Furthermore, the Daiichi Sankyo Group
has created a "Hybrid Business Model," which will respond to market and customer
diversity and optimize growth opportunities across the value chain.
(DAIICHI SANKYO AND RANBAXY TO LEVERAGE SYNERGIES IN THAILAND, January 16, 2013 )

Isotretinoin must not be used by female patients who are or may become
pregnant. There is an extremely high risk that severe birth defects will result if pregnancy
occurs while taking isotretinoin in any amount, even for a short period of time. Potentially
any fetus exposed during pregnancy can be affected. There are no accurate means of
determining whether an exposed fetus has been affected. Because of this toxicity,
isotretinoin can only be marketed under a special restricted distribution program. This
program is called iPLEDGE™. Under this program, prescribers must be registered and
activated with the iPLEDGE program and can prescribe isotretinoin only to registered
patients who meet all the requirements of iPLEDGE. Isotretinoin can be dispensed only by a

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pharmacy registered and activated with iPLEDGE. Registered and activated pharmacies can
only receive isotretinoin from wholesalers registered with iPLEDGE.

Patients on isotretinoin have been known to become depressed or to develop other serious
mental health problems. Some people have had thoughts of hurting themselves or putting an
end to their own lives. Some people tried to end their own lives and some have ended their
own lives. There have been reports that people on isotretinoin were aggressive or violent.
No one knows if isotretinoin caused these problems or behaviors or if they would have
happened even if the person did not take isotretinoin.

Isotretinoin use has been associated with pseudotumor cerebri, a condition caused by
increased pressure on the brain. This condition may occur more often in patients also taking
tetracycline. Patients should be aware of other serious side effects, including problems with
the skin, pancreas, liver, stomach, bones, muscles, hearing, vision, lipids, allergic reactions,
blood sugar, or red and white blood cells. The most common, less serious adverse events
include dry skin, chapped lips, dry eyes, and dry nose that may lead to nosebleeds. Patients
should be advised about these adverse events and routinely monitored by a doctor during
treatment with isotretinoin. 

Isotretinoin has been associated with inflammatory bowel disease (including regional ileitis)
in patients without a prior history of intestinal disorders. In some instances, symptoms have
been reported to persist after isotretinoin treatment has been stopped. 

Ranbaxy Laboratories Inc. (RLI) based in Jacksonville, Florida, is a wholly owned

subsidiary of Ranbaxy Laboratories Limited (RLL), India's largest pharmaceutical
company.  RLI is engaged in the sale and distribution of branded prescription products in
the U.S. healthcare system.
(RANBAXY LAUNCHES ABSORICATM (ISOTRETINOIN) CAPSULES IN THE
U.S. HEALTHCARE MARKET, November 26, 2012 )

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 Regarding the launch, Arun Sawhney, CEO and Managing Director of Ranbaxy,
added, “We welcome the opportunity to launch cevimeline hydrochloride in the U.S.
market. This authorized generic form of Evoxac is an excellent example of optimizing
operational synergies that exists between Ranbaxy and Daiichi Sankyo, while accelerating
our global business efforts. We see a continuing opportunity to leverage our combined
strengths of innovation and the manufacture and marketing of affordable, high quality,
generic medicines through this collaboration.”

Commenting on the launch of an authorized generic of Evoxac, Dr. Tsutomu Une,

Chairman of Ranbaxy, said, “We refer to the strategy of optimizing the diverse assets of
both companies as our Hybrid Business Model, that will allow both organizations to
effectively seize opportunities across the full pharmaceutical value chain and product life-
cycle, by leveraging the R&D and manufacturing of both Daiichi Sankyo and Ranbaxy. As
such, we will continue to reinforce our respective business platforms over the longer term
through this hybrid strategy.”

Ranbaxy Pharmaceuticals Inc. (RPI) based in Jacksonville, Florida, is a wholly owned

subsidiary of Ranbaxy Laboratories Limited, India’s largest pharmaceutical company.  RPI
is engaged in the sale and distribution of generic and branded prescription products in the
U.S. healthcare system..(RANBAXY LAUNCHES AUTHORIZED GENERIC OF
EVOXAC IN THE U.S. HEALTHCARE MARKET,  October 09, 2012)

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 CHAPTER-IV

COMPARITIVE A NALYSIS

SWOT Analysis
McKinsey’s 7s

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  SWOT ANALYSIS OF PIRAMAL

SWOT Analysis
1. Indian pharmaceutical and health care company with Piramal
Enterprises is also one of the largest custom manufacturing
companies across the World.
2. High investment in R & D, Piramal Enterprises has a global
R&D division in NY, a facility in India, and a manufacturing
plant in Bethlehem.
3.High Brand equity in healthcare industry.
4. Piramal Healthcare is one of the fastest growing players by
sales domestic consumer healthcare market, which deals with
non-prescription products in the healthcare and wellness segment.
Strength 5. Good product portfolio and a strong workforce.
1.Weak global presence compared to global players
Weakness 2.Due to high competition brand has limited market share

1. Global presence by expansion.

2. Healthcare sector is booming industry in coming years so
expanding in this sector.
Opportunity 3. Acquisition of smaller players to enhance image.

1. Advanced technologies constantly demanding product

innovation.
2. Due to global slowdown people start spending less on
healthcare expenses.
Threats 3. Unfavourable government policies.

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 Mc KINSEY 7’s MODEL:

Strategy: The plan devised to maintain and build competitive advantage over the competition.
Piramal Healthcare’s medium-term business model envisages achieving leadership in the domestic
pharmaceuticals market, and building a strong de-risked international business around the
company’s core strengths in manufacturing, marketing and R&D.

Structure:The way the organization is structured and who reports to whom. It has a chairman,
board of directors and a director for each field like finance, marketing, operations and human
resources. Staff in each department reports to their next higher authority till director. Mr Ajay
Piramal is the chairman of Piramal and has various directors and sub-ordinates under him.

Systems: The daily activities and procedures that staff members engage in to get the job done
like manufacturing, marketing and identifying opportunities, accounts and finance work, recruiting
and managing human resource, etc.

Style: Piramal's leadership was developed through trial by fire. Mr Ajay Piramal has
demonstrated that he believes in writing his own rules. Selling his domestic formulations business
recently to US drug maker Abbott is a case in point. But at the same time leadership is about
courage — to take difficult decisions, not necessarily what people expect you to do but what is
right. Also, integrity is critical to leadership so there must always be alignment between what you
think say and do.

Staff: The employees and their general capabilities. Piramal is managed by professionals. All the
concerned departments have highly qualified professionals who know their work and work hard to
increase company’s revenues and make it successful.

Skills: The actual skills and competencies of the employees working for the company. The
employees of Piramal possess various skills required to perform their job. Also, training is given to
the employees in which they can learn additional skills which will help them to function more
effectively and efficiently.

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Shared values: The various CSR initiatives taken by Piramal are as follow:

 PiramaleSwasthya: This blends the skills of local women in the village interiors and telemedicine
to bring to rural India affordable healthcare through its 56 centres.
 Source for Change: This is a rural BPO which imparts computer training and language skills to
the rural woman from Bagar, Rajasthan. This initiative has been running for past 4 years, and has
led to an increased confidence amongst the woman populace of that district.
 Piramal Foundation for Education Leadership (PFEL): PFEL is setting up India’s first and the
world’s largest Education Leadership training academy. The academy will offer in-service and pre-
service leadership training programs for school heads and education administrators of the
government system.
 Piramal Water (Sarvajal): Sarvajal, incorporated as Piramal Water Private Limited, is a social
enterprise in India that develops sustainable drinking water solutions for rural populations where
the quality of water is often the cause of more than 60% of common health ailments.It addresses
the problem of lack of clean drinking water and consequential serious health concerns in the
interiors of India. Their business is designed around scalable innovations, technical/process
improvements, ensuring livelihoods for local entrepreneurs, and developing customized
community water filtration systems that can produce ultra-affordable drinking water for the
masses.

SWOT ANALYSIS OF CIPLA

STRENGTHS
 Ranks #2 in the retail prescription market in India
 18 brands that feature among the top 300 brands
 Large basket of 1500 formulations
 Partnered 8 leading generics companies in the US for nearly 125 projects
 Today, Cipla is the leading player in anti-infective and anti-asthamaticformulations .
 The company has excellent process R&D skills which are considered to be one of the best  in the
country.

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 The company has an extensive distribution network.

WEAKNESSES
 Impact of IPR Regime
 Domestic growth was steady at 10%
 Growth in formulation exports was affected due to various factors including non-availability of
important raw materials, lower tender business in anti-retroviral ,etc .

OPPORTUNITIES
 Biotherapeutics – A new & promising area
 Around 10% contribution to the revenue from the Indore SEZ to start coming in from FY2013 .
 The relaxation of DPCO will be a big boost for the company and this might improve the profit
margin as 55% of the company's sales are regulated by DPCO.
 The company has already made ANDAs (Abbreviated new drug application) in USA and it
provides a great opportunity for growth for the company. 46 are pending for approval .
 Venturing towards areas of cardiology and anti-cancer

THREATS
 Sensitive to fluctuations in foreign currency exchange rates .
 Some pending legal cases on account of alleged overcharging in respect of certain drugs under
the Drug Price Control Order leading to Potential de-rating
 The entry of foreign players will pose a major threat to the company.

McKINSEY’s Model of CIPLA

STYLE / CULTURE 

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 It conveys the flow of communication between the superiors and their subordinates. It is been
said that CIPLA follows “Line and Staff” organisation.  Both downward and upward
communication follows the path of formal channel.  All the activities of the organisation are
communicated from one department to another through formal channel.
The culture of the organization, consisting of
– Organizational culture: the dominant values, beliefs and norms which develop
over time and become relatively enduring features of organization life
– Management style: The precise way in which the control system influences the
behavior depends on the style of functioning of the manager (i.e where they spend their time and
attention, what they allow, what they reward, etc)
CIPLA basically follows an External Control System where decision making authority rests with
the top management – Centralized in practical operations .

STAFF 
At CIPLA manufacturing work, processing, research and development, quality checking, etc are
done by its entire staff day by day. All departments are computerized at all levels and the
company gives aggressive training to all its employees and staff so that their skills develop over
a period of time. There is lot of scope and career opportunities in the firm for the staff.
Human Resource Development at CIPLA has been an integral part of the Company since its
inception. It has had a significant strategic role in the Company's growth process and continues
to do so. It is a function that has contributed to the bottom line of the Company and has built the
family.
Proper HR management processes are used to develop new managers who can lead the
organization.
Importance is given to the ways of introducing new employees and managing careers,
socialization processes as employees are the primary assets of a company and their development
and satisfaction is necessary too.

SKILLS
Employees and staff are expected to have human skills so that they can
work cooperatively with one other and build effective team spirit, which in turn helps in

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 achieving the organisational goals and provide quality medicines and treatment. Technical Skills
are needed to handle work related to tools, machines and equipment.

SYSTEM 
CIPLA has fully equipped technical information department which makes
the strategic and operational information for theorganisation. All the departments such as R&D,
marketing, purchases, quality control stores, finance, etc are computer programmed and are
interlined via LAN.
Various elements of system are:
 Communications practice and system
 Research System
 Management reporting system
 Approval process
 Quality Check System
 Planning/budgeting system
 Rewards system including appraisal

STRUCTURE 
Currently Cipla has more than 2200 employees and has incorporated a unique flat organizational
structure. MK Hamied, looks after marketing and his cousin Amar Lulla heads the
finance division, while YK Hamied is responsible for Cipla's overall vision and
strategy.
STRATEGY 
CIPLA being in the pharmaceutical industry with so much risk and care
at all times provide total customer satisfaction through products and services of highest quality
and reliability. And ensure the safety of its consumers . To nurture a healthy population
with trust , fairness and transparency .

SHARED VALUES 
 Customer Safety
 People Orientation / Consumer Awareness

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  Innovation
 Quality Products & Services
 Transparency and Integrity
 Trust and Faith
 Passion for superior performance

RANBAXY
SWOT ANALYSIS
STRENGTHS:
➢ Low cost of production.
➢Large pool of installed capacities
➢Efficient technologies for large number of Generics.
➢Large pool of skilled technical manpower.
➢ Increasing liberalization of government policies
WEAKNESS:
➢ Fragmentation of installed capacities.
➢ Low technology level of Capital Goods of this section.
➢ Non-availability of major intermediaries for bulk drugs.
➢ Lack of experience to exploit efficiently the new patent regime.
➢ Very low key R&D.
➢ Low share of India in World Pharmaceutical Production
➢ Very low level of Biotechnology in India and also for New Drug Discovery
Systems.
➢ Lack of experience in International Trade.
➢ Low level of strategic planning for future and also for technology
forecasting.
OPPORTUNITY:

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➢Aging of the world population.
➢ Growing incomes.
➢ Growing attention for health.
➢New diagnoses and new social diseases.
➢ Spreading prophylactic approaches.
➢ Saturation point of market is far away.
➢New therapy approaches.
➢New delivery systems.
➢ Spreading attitude for soft medication (OTC drugs).
➢ Spreading use of Generic Drugs.
➢ Globalization
➢ Easier international trading.
➢New markets are opening.
THREATS:
➢ Containment of rising health-care cost.
➢ High Cost of discovering new products and fewer discoveries.
➢Stricter registration procedures.
➢ High entry cost in newer markets.
➢ High cost of sales and marketing.
➢ Competition, particularly from generic products.
➢ More potential new drugs and more efficient therapies.
➢Switching over form process patent to product patent.

McKINSEY’s MODEL
Strategy
Ranbaxy is focused on increasing the momentum in the generics business in its key markets
through organic and inorganic growth routes. Growth is well spread across geographies with

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focus on emerging markets The Company continues to evaluate acquisition opportunities in
India, emerging and developed markets to strengthen its business and competitiveness.

Staff
The Company’s business philosophy based on delivering value to its stakeholders constantly
inspires its people to innovate, achieve excellence and set new global benchmarks. Driven by the
passion of its over 12,000 strong multicultural workforce comprising over 50 nationalities,
Ranbaxy continues to aggressively pursue its mission to become a Research-based International
Pharmaceutical Company and attain a true global leadership position.

Style
A career at Ranbaxy means an opportunity for ample learning & growth. It offers avenues to
work across the globe along side the finest minds. The Company offers a challenging
assignment, a world class working environment, professional management, competitive salaries,
stock options along with exceptional rewards.If you have an appetite for challenges, we have an
exciting career for you

System
The ownership in business is fundamental to personal progression, we encourage you to take
ownership of your investments. Stock ownership is a part of the compensation for our managers
early in their career at Ranbaxy: you will see the business results straight in your pay slip!

Skills
Technical Skills are needed to handle work related to tools, machines and equipment. , training
is given to the employees in which they can learn additional skills which will help them to
function more effectively and efficiently.

Structure
Dr.Tsutomu Une is the Chairman Non Executive and Non independent Director and

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Mr.Atul Sobti is the CEO and managing Director The way the organization is structured and who
reports to whom. It has a chairman, board of directors and a director for each field like finance,
marketing, operations and human resources. Staff in each department reports to their next higher
authority till director

Shared values
Ranbaxy’s first motive is to provide with best quality products. Customers safety is also
ranbaxy’s motive. Ranbaxy believes in trust and faith with transparency in everything.they
always try to come up with the best possible products that can benefit the customers.

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 CHAPTER 5
CONCLUSION

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 CONCLUSION

The Indian pharmaceutical industry needs to take advantage of the recent advances in
biotechnology and information technology. The future of the industry will be determined by how
well it markets its products to several regions and distributes risks, its forward and backward
integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-
marketing and licensing agreements. India's pharmaceutical industry is now the third largest in
the world in terms of volume. Its rank is 14th in terms of value. Due to increase in the population
of high income group, there is every likelihood that they will open a potential US$ 8 billion
market for multinational companies selling costly drugs by 2015. This was estimated in a report
by Ernst & Young. The domestic pharma market is estimated to touch US$ 20 billion by 2015.
The healthcare market in India to reach US$ 31.59 billion by 2020. Indian Pharmaceutical
Industry, with its rich scientific talents, provides cost-effective clinical trial research. It has an
excellent record of development of improved, cost-beneficial chemical syntheses for various
drug molecules. Some MNCs are already sourcing these services from their Indian affiliates.

The Pharmaceutical and Biotechnology Industry is eligible for weight deduction for R&D
expense upto 150%. These R&D companies will also enjoy tax holiday for 10 years. A
promotional research and development fund of Rs.150 crores is set up by the Government to
promote research and development in the pharmaceuticals sector.

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 CHAPTER 6
ANNEXURES

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 ARTICLES ON PIRAMAL
Piramal Healthcare to be renamed to reflect diversification
PTI Jul 19, 2012, 08.50PM IST
MUMBAI: Pharma major Piramal Healthcare will be renamed as Piramal Enterprises following
its recent entry into diversified business activities.
The rechristening comes four years after Nicholas Piramal became Piramal Healthcare.
"To appropriately reflect the company's changed business profile, it is proposed that the name of
the company be changed to Piramal Enterprises Ltd," Piramal Healthcare Chairman Ajay
Piramal told shareholders at the annual general meeting here today.
After selling its domestic formulation business to Abbott for Rs 17,600 crore in 2010, the
company has invested into pharma, telecom and information management and financial services
sectors.
"We have enough cash flows as we go into the future. We have still to receive USD 1.2 billion
from Abbott over the next three years," Piramal said.
"In addition, the company has made an equity investment of Rs 5,862 crore in Vodafone India as
short-term investment for the next two to three years and we believe this investment would
generate attractive returns," he said.
The company is eyeing opportunities which will provide sustainable returns in sectors having
high growth potential and where it can derive significant advantage, he said.
Piramal pointed out that the pharma industry globally continues to face challenging time. Large
firms are facing patent expiries of blockbuster drugs on one hand and on the other, fewer new
products are being approved. These companies are looking at various ways to reduce costs.
The firm is also growing its OTC business which has a strong brand portfolio. The OTC sector
has potential of continued high growth, Piramal said.
On investment in R&D he said, "We are now beginning to see the fruits of our investment in
R&D and are making significant strides towards creating a truly innovation-driven global
pharma business."

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Piramal charts global acquisition plan to grow contract research biz.
Khomba Singh, ET Bureau Jun 28, 2010, 02.58am IST
NEW DELHI: Piramal Healthcare will persist with its tested growth strategy of acquisitions to
be counted among the world's top five contract manufacturing firms by 2015, but with a notable
difference.
The drug maker’s buyout compass will now be centred on niche global companies, thanks to last
month's sale of the domestic formulation business to US-based Abbott Labs for Rs 17,000 crore
that gave it a war chest and new-found confidence to chase ambitions.
"Over the next three-to-five years, we plan to make Piramal Healthcare among the top five
contract research and manufacturing services (CRAMS) company with over a billion dollar
revenues," said Piramal Healthcare chairman Ajay Piramal. A CRAMS company essentially
makes drugs for global drug powerhouses.
The company, Mr Piramal said, would target rivals especially in the US and Europe that boast of
good technology, people and a strong customer base.
The strategy would be a big departure from one zealously followed for 22 years. Piramal
Healthcare has constantly snapped up the domestic businesses of foreign companies, beginning
with the purchase in 1988 of Australia's Nicholas Laboratories, which was exiting India. That
helped Piramal Healthcare, which was christened Nicholas Piramal then, to establish a firm
foothold in the domestic pharma market. A string of buyouts followed. The Indian businesses of
Swiss major Roche, German company Boehringer Mannheim, Hoechst Marrion Roussel
Research Centre, Rhone Poulenc India, ICI India Pharma Division and Aventis' research
facilities helped Piramal grow into a Rs 3,700-crore company.
Piramal already seems to have started new buyouts in earnest. Last week, the company bought
assets of sick Canadian medical device firm BioSyntech for about Rs 17 crore.

Piramal Health to pay Rs 3,400 crore for US Co. Decision Resources Group
MUMBAI, MAY 16: In its second overseas acquisition in about a month, Piramal Healthcare is
set to buy the US-based Decision Resources Group for Rs 3,400 crore ($635 million).
This marks the Group's entry into the $5.7-billion healthcare information management business,
said the Chairman, Mr Ajay Piramal. The sector is attractive since the business is built on
subscriptions and has stable revenues from “sticky relationships”, he said.

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The transaction is expected to close by June 30, subject to regulatory approvals, he said, adding
the latest buy was likely to be the last sector the group would invest in.
Piramal Healthcare sold its domestic medicines business in 2010 to Abbott for Rs 17,000 crore
and later streamlined its business, foraying into the financial services sector, besides picking up
11 per cent equity in Vodafone as a short-term investment. Last month, it acquired Bayer's
molecular imaging portfolio.
With growth plans in sectors from drug discovery to defence, Mr Piramal said, “this is a range
that is broad enough,” the company is not looking to get into any other sector. Growth in defence
would be through new and acquired projects, he said, adding that no specific plans were in place.
Insights for risky bets
DRG is debt free and its acquisition would be funded through a combination of debt and equity.
DRG provides healthcare oriented Web-enabled insights through proprietary databases and
consulting services. With a compounded annual growth rate of 20 per cent over five years, DRG
projects revenues of $160 million for 2012.
Explaining the importance of having analytical insights, Mr Piramal said the global regulatory
environment for medicines and squeeze on funds require drug companies to make large, riskier
bets, with extended paybacks.
The three market segments DRG focuses on are worth approximately $2.5 billion. They include
biopharma — providing databases and advisory services on drug utilisation trends and
forecasting in different therapeutic areas; market access — providing similar services to assess
current and future opportunity of product acceptance; and the medical technology business —
providing actionable insights on the medical device markets.

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 Articles on Cipla

India's Cipla Cuts Cancer Drug Prices by 75%

By RUMMAN AHMED
BANGALORE— Cipla Ltd., one of India's largest generic drug manufacturers, said it is
cutting prices on its cancer medicines by up to 75%, a move likely to further complicate
efforts by big Western pharmaceutical companies seeking to develop their businesses in India.

Cipla's decision to slash prices comes only weeks after India's patent authority forced
Germany's Bayer AG to grant a license to another Indian generic drug producer for its kidney
and liver cancer medicine Nexavar.

Mumbai-based Cipla already has been selling sorafenib, the generic version of Nexavar, since
2010, after Bayer's legal attempts in India to block the drug failed. Bayer then brought a patent
infringement case against Cipla in India, which is ongoing.Friday, Cipla said it will cut the
price of its generic version of Nexavar to 6,840 rupees ($128) for a month's supply from
28,000 rupees ($523). Bayer's patented medicine costs 280,000 rupees ($5,234) for a month.
Cipla also slashed the cost of its copies of AstraZeneca PLC's lung-cancer drug Iressa by
almost 60% and brain-cancer drug temozolamide by 75%. Bayer declined to comment on
Cipla's move, while AstraZeneca couldn't be immediately reached for comment.

Y. K. Hamied, Cipla's chairman and managing director, cast the move as an attempt to bring
cheap cancer medicines to the world, just as the company became a champion ofHIV patients
in Africa a decade ago by using its cheaper manufacturing base to sell AIDS drugs at a deep
discount."We had taken the lead to provide affordable medicine for AIDS and I think the time
has now come -- 10 years later -- when we do a similar thing for cancer," Mr. Hamied said in
an interview.

Big pharmaceutical companies want to sell in India, a country of 1.2 billion people with an
economy growing at over 6% per year. But these companies argue that – unlike generics
producers, who typically copy drugs that come off patent – they need intellectual-property
protection to fund the high cost of research. The drug industry says new medicines can take a
decade and cost more than $1 billion to develop.

India has declined to defend patents on a number of occasions previously, contending that the
Indian system fosters a competitive environment that keeps prices low so that the country's
vast and mostly poor population can afford medicines.The patent office and courts in recent
years has rejected patents on expensive cancer medicines, including Novartis SA's Glivec.

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 Novartis is challenging the rejection and India's Supreme Court is expected to make a ruling in
July.

Drug pricing policy: Pharma majors may see impact of 5-10%

Wed, Nov 28, 2012 at 11:48

Prabhudas Lilladher has come out with its report on pharma space. According to research firm
the current policy, Cipla  , DrReddys Lab , Ranbaxy , GSK Pharma’s revenue from domestic
formulation is likely to be impacted by 5-10%.

The government will present the New Pharma Pricing Policy (NPPP) in the Supreme Court which
was proposed by the Group of Ministers on November 21 and subsequently approved by Cabinet on
the next day. Now it needs to be seen as to what stance the Supreme Court takes on the new policy
which was modified to fix ceiling price for the drugs covered by National List of Essential Medicines
(NLEM) 2011 based on the simple average price (versus weighted average price earlier) of all the
brands having market share of more than 1%.

Are we near to the end of a logjam? There has been a logjam over the finalization of the NPPP as
the Supreme Court objected to the NPPP 2011 proposed by Government in 2011 in which the ceiling
price was based on Weighted Average Price (WAP) of top three brands, post which the government
formed a GOM to look into the matter and come out with a new policy. The GOM, in September
2012, proposed a new policy in which the ceiling price was based on WAP of all the brands having
market share of more than 1%. However, there was objection from both Finance Ministry and
Supreme Court to this policy on various grounds. Now, the policy has been finally approved by the
cabinet which is based on simple average price mechanism to decide the ceiling price of the drugs
covered under NLEM.

What Next? The Supreme Court hearing is scheduled for today to decide on the new policy. Our
discussion with industry players suggests that since the cabinet has approved the policy, the
government can go ahead and implement the same. However, we feel that the stance of the Supreme
Court on the policy is very important in order to implement the policy smoothly. In case of
favourable stance by the Supreme Court, the policy is likely to be implemented within the next six
months. However, as we understand, in the previous hearing, the Supreme Court had asked
government not to tamper with the existing costbased pricing mechanism to determine the price of
essential medicines. In this context, it is very important to see what stance the Supreme Court takes
on the new policy which is based on market-based pricing.

Some other issues that may further delay the entire process: Though we don’t have the fine print
of the new pharma policy, as we understand, the policy does not include the combination drugs in the

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price control. This is a major issue in our opinion and can be raised by various health NGOs and
activists in the Supreme Court as combination drugs form large part of Indian pharmaceutical
industry. We believe that the possible inclusion of combination drugs will have serious implications
on the pharmaceutical companies as this will expand the coverage of price control from the current
30% to 60-75%.

Based on the current policy, Cipla, Dr Reddy’s Lab, Ranbaxy, GSK Pharma’s revenue from
domestic formulation is likely to be impacted by 5-10%. As per the analysis done by AIOCD,
based on the new policy, some of the large companies like Cipla, Dr Reddy’s Lab, Ranbaxy and
GSK Pharma’s revenue from domestic formulation business will be impacted by 5-10%. The least
impacted companies from our coverage universe will be Sun Pharma, Lupin, IPCA and Torrent
Pharma in terms of revenue. However, if we look at the impact on the overall PAT of these
companies, Dr Reddy’s Lab will have less than 5% impact on overall PBT due to lower contribution
of domestic formulation business to the total revenues. Further, Sun Pharma, Lupin, Torrent and
IPCA will be other companies with lower impact.

Cipla set to buy 51% of S Africa's Cipla Medpro for about $220 million
DIVYA RAJAGOPAL,ET Bureau | Nov 22, 2012, 07.34AM IST
MUMBAI: Cipla, India's second-largest drug firm, has agreed to acquire South African
drugmaker Cipla Medpro, taking an important step towards consolidating its international
business that now makes up more than half its quarterly revenues.

Cipla said on Wednesday it will buy 51% of Cipla Medpro for about $220 million, valuing the
beleaguered South African company at about $440 million. This is Cipla's first international
acquisition in its 75-year-old history.

"With this acquisition, South Africa will become the second-largest drug market for Cipla, which
hopes to capture 5% of the market," said YK Hamied, chairman and managing director, Cipla.
"Going forward it will be a priority market for us, why should we leave it to the Chinese,"
Hamied added.

The acquisition will be a relief for Cipla Medpro and its shareholders, coming just months after
its CEO Jerome Smith was suspended in August. Smith founded the company in 1993 and later
forged a relationship with India's Cipla, which changed the fortunes of the South African
company. Medpro used to source 80% of its products from Cipla, and the companies agreed
Medpro would use the brand name of Cipla for selling products in Africa.

Smith's abrupt departure led to uncertainty over the firm's future, but on Wednesday the shares
rose after the Cipla announcement. Cipla is offering ZAR 8.55 per share (payable ex the final
dividend for the 2012 financial year, which will be capped at a maximum of ZAR 0.10 per
share). Medpro shares rose 7% to ZAR 8.29 from 7.10 ZAR at the Johannesburg stock exchange.
Cipla shares rose 2% to end at Rs 389.70 on Wednesday after the announcement.

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Cipla has been consolidating its position as India's second-biggest drugmaker. In the past three
years, its revenues have grown 41.53% while the Indian drug market, estimated at about Rs
60,000 crore, has been growing at about 15%.

Medpro is South Africa's third-biggest drugmaker with annual sales of about Rs 1,000 crore. The
South African market is estimated at about $4 billion, growing at about 10% and comprises
about 35% of the total African market.

ATICLES ON RANBAXY

DAIICHI SANKYO AND RANBAXY TO LEVERAGE SYNERGIES IN THAILAND

Gurgaon, India and Tokyo, Japan, January 16, 2013 
Daiichi Sankyo Company, Limited (Daiichi Sankyo) and Ranbaxy Laboratories Limited
(Ranbaxy) today announced their intention to integrate their business operations in Thailand, to
leverage and maximize the synergies of the Hybrid Business Model, which is expected to
commence business on April 1, 2013. The planned integration of operations will provide a strong
foundation for future Daiichi Sankyo Group business expansion in Thailand. The development
will be mutually beneficial to Ranbaxy and Daiichi Sankyo. It is expected to enhance their
competitiveness while offering both innovative and affordable, high quality generic medicines to
the people of Thailand as well as generate cost synergies for both companies.

RANBAXY LAUNCHES ABSORICATM (ISOTRETINOIN) CAPSULES IN THE U.S.

HEALTHCARE MARKET
Gurgaon, India, November 26, 2012 

Ranbaxy Laboratories, Inc. (RLI), a wholly owned subsidiary of Ranbaxy Laboratories Limited
(RLL), today announced the sales and promotion launch of Absorica (Isotretinoin) Capsules, a
product that is licensed from Cipher Pharmaceuticals Inc. of Mississauga, Ontario. Absorica is
indicated for the treatment of severe recalcitrant nodular acne in patients 12 years of age and
older.

Due to its high lipophilicity, oral absorption of isotretinoin is enhanced when given with a high-
fat meal, however, Absorica, which is formulated using patented Lidose® technology, can be

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given without regards to meals.  The fasted AUC0-t of Absorica is approximately 83% greater
than that of Accutane, while both products are bioequivalent under fed conditions. Absorica is
therefore not interchangeable and not substitutable with generic products of Accutane®.
Absorica, NDA, was approved based on a large pivotal clinical trial enrolling 925 patients. 

Senior Director, Ranbaxy Laboratories Inc.  Dr. Ashish Anvekar said, "We are most pleased to
make Absorica available as a valuable option for dermatologists and a subset of patients who
suffer from severe recalcitrant nodular acne. Absorica will be the flagship brand of the Ranbaxy
dermatology product portfolio in the U.S."

RANBAXY LAUNCHES AUTHORIZED GENERIC OF EVOXAC IN THE U.S.

HEALTHCARE MARKET

Gurgaon, India, Princeton, New Jersey - October 09, 2012

Ranbaxy Pharmaceuticals Inc. (RPI), a wholly owned subsidiary of Ranbaxy Laboratories

Limited (Ranbaxy), has launched the authorized generic cevimeline hydrochloride 30 mg.
capsules in the U.S. market, under an agreement with Daiichi Sankyo, Inc.

Cevimeline hydrochloride is indicated for the treatment of symptoms of dry mouth associated
with Sjogren’s syndrome, an autoimmune disorder affecting the moisture-producing glands, and
is presently distributed by Daiichi Sankyo, Inc. under the brand name Evoxac®.
Evoxac® generated total annualized sales of $62.4 million in the U.S. (IMS – MAT June 2012).

Bill Winter, Vice President, Trade Sales and Distribution, North America, Ranbaxy said,
“Ranbaxy is pleased to announce the launch of cevimeline hydrochloride in 30 mg. capsules, as
the authorized generic of  Evoxac® in the U.S.  This launch further underscores Ranbaxy’s
resolve to bring high quality, affordable generic medicines to the U.S. healthcare system to meet
the growing needs of patients and prescribers.”

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 CHAPTER 7

BIBLIOGRPHY

BIBLIOGRAPHY
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The information regarding the project has been taken from the following sources:

WEBSITES:

www.piramal.com

www.cipla.com

www.ranbaxy.com

www.google.com

www.timesofindia.com

www.wikipedia.com

www.yahooanswers.com

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