Hoffmann-La Roche Ltd (Switzerland).the existing two plants. Over the years NPIL has grown to become a market leader in the Indian pharma industry through a series of well-managed acquisitions. which were small and considerably outdated.(USA). NPIL commissioned a new manufacturing plant to add to. Boots Plc (UK). Some of the major acquisitions made by the company thereafter include Hoechst Marrion Roussel's Research Centre.NICHOLAS PIRAMAL INDIA LIMITED COMPANY BACKGROUND Nicholas Piramal India Limited (NPIL) came into existence in 1988 when the company Nicholas Laboratories was acquired from Aspro Nicholas by the Mumbai-based Piramal family.Allergan Inc. The second acquisition was that of Boehringer Mannheim India. subsidiary of Boehringer Mannheim AG (BM) of Germany.'s pharma division and Boot¶s OTC brand Lacto Calamine. in 1996.This gave NPIL access to all research products of BM Germany. ICI India Ltd. Its core strength lies in its joint ventures and alliances with some of the key global players in the industry which include F.The company¶s strategic intent has been to position itself as a partner of choice for global drug companies that want to leverage India¶s low manufacturing cost advantage.. diagnostics as well as biotechnology. Gilead Sciences (USA) and Cheissi (Italy). The first acquisition was that of Roche Products in 1993. In 1991. Rhone Poulenc India Ltd. for launch in India in the areas of pharma. . with NPIL retaining the right to manufacture and distribute all existing and new Roche products under the Roche brand name. mergers and alliances. The new plant was built to comply with US FDA standards to allow NPIL access the huge generics market in the US as well as increase its credibility with potential partners in order to attract post -GATT product licensing agreements.

in which NPIL has 49 per cent stake. haematology. microbiology. Products and brands NPIL has business expertise in the areas of bulk drug manufacture for domestic and export markets. hold the majority stake in NPIL (50.These labs offer a wide range of pathology investigation tests. NPIL has 49 per cent stake in this venture. Saridon. Lacto Calamine.Another important alliance is with Allergan India. The company¶s promoters. which include immunology tests.NPIL has a 100 per cent stake in two pathology laboratories . domestic financial institutions.2 per cent stake ). Maharashtra). private corporate bodies and non-resident Indians hold the residual shares. West Bengal) and Dr.NPIL Diagnostic Laboratories Pvt.4 per cent). Formulations constitute more than 65 per cent of gross sales. Phadke Pathology Laboratory & Infertility Centre Pvt. Its product range is targeted at the ophthalmology market for diseases lik e glaucoma.The next largest shareholder is the Indian public (with 13. the Piramal family.ocular surface disease/dry eye and introducing new surgical products (particularly small incision cataract surgery). which markets and distributes NPIL¶s OTC brands like Polycrol. Foreign companies. infertility investigations and histopatholo gy examinations.NPIL has formed a joint venture with Boots named Boots Piramal Healthcare Pvt Ltd.1 per cent stake) followed by foreign institutional investors (with 13. Details of the products are as follows: . Limited (Mumbai. speciality labs and chemicals and formulation development. Limited (Kolkata. for over-the counter (OTC) products. Strepsils and Clearasil .

NPIL also manufactures and exports Tetmosol.Haemaccel.Phenergon. Cardiovascular. cardiac care and urinalysis. gastro-enteritis. Pulmonary / respiratory and trauma / emergency. immunology diagnosis. multivitamins / nutraceuticals. Paraxin. central nervous system. It also offers Diagnostic tools in the fields of diabetes care. antiseptics. in the fields of clinical chemistry. Pentids. Phensedyl.Tixylix. NPIL owns some of the well-known brands in the pharma business. It currently manufactures and exports inhalation anaesthetic (Halothane and Isoflurane) and plas ma volume expander (Polygeline). haematology diagnosis and rapid diagnostics. International Formulations business: This focuses on anaesthetic and parenteral products used in operating rooms and critical care units. oncology. which is an anti scabies in selected markets. Diagnostics Division: NPIL is the leader in the field of in-vitro diagnostics with its state-of-the art equipment and kits. Its top 10 brands. Stemetil. diabetes. a monosurfuram soap. antibiotics. In addition. Vitamins and fine chemicals: NPIL is a leading supplier of vitamins and fine chemicals used extensively in human and animal nutrition and health businesses. anti fungal. dermatology. Gardenal. antihistamines. through a licensing agreement with AstraZeneca. Sorbitrate and Gentycin contribute around 29 per cent of its revenues. endocrinology.Domestic Formulations business: These include products in various therapeutic categories ± analgesic / antiinflammatory. .

The company's growth was mostly driven by strategy of partnerships. Most companies keep 1±3 CFAs in each Indian state.1 billion) in 2005-09. To reduce risks of substitution. pharmaceutical companies used a different distribution system. . a company may work with a total of 25 ±35 CFAs. Drug distribution in India has witnessed a paradigm shift. These organizations are primarily responsible for maintaining storage (stock) of the company¶s products and forwarding SKUs to the stockist on request. brand building and manufacturing India is a geographically diverse country with extreme climates that make distribution a critical function. innovator companies must make sure their products are made available to the stockists and retail shops. in which they established their own depots and Warehouses that now have been replaced by clearing and forwarding agents (CFAs). and may go up to even 30±50 different manufacturers. a stockist (distributor) can simultaneously handle more than one company (usually. 5±15 depending on the city area). quality acquisitions. Unlike a CFA that can handle the stock of one company. In India. On an average. Before 1990.SALES AND DISTRIBUTION IN NICHOLAS PIRAMAL INDIA LIMITED Nicholas Piramal India Limited (NPIL) is India's fourth largest pharmaceutical company with significant joint ventures /alliances/partnerships and a sales turnover of $ 313 million (Rs 14. most brands have generic versions of drugs and retailers can usually obtain higher margins with generics than for branded products. The long channel of distribution and high incidence of brand substitution makes it mandatory for a company to make all its stock keeping units (SKUs) available at all levels at all times.

Vardhaman City Center. Near Shakti Nagar Flyover New Delhi . narina ring road New Delhi. Ph no. Anil Kumar 320. pharma distributer 2 floor.110 052 (INDIA) Tel : +(91)-(11)-3645516/3644432/9810209876 DISTRIBUTORS RONAK ENTREPRISES JVS PHARMA enterprises.Channels of drug distribution of Nicholas piramal pharmaceuticals in New Delhi Chennai (Manufacturing unit) Hyderabad (Manufacturing units) CARRYING AND FORWARDING AGENT (CNF) Healthmax Pharma Mr.29523236 29531298 (B JVS pharma polt 54-A shop number 3 janakpuri New Delhi-64) VINYAK ENTERPRISES (F-20 kirti nagar New Delhi-15) Retailer/chemists Retailers Retailers .

The CFAs are paid by the company yearly. the total number of stockists of Nicholas piramal in India is around 450. In 2009. According to the Indian Retail Druggists and Chemists Association.000 distributors and 125. the market size of Nicholas piramal pharmaceutical logistics segment (distribution) was valued at around $28 million and the logistics/distribution industry has been growing at an average annual growth rate of 4% since 2002. after 30±45 days (a typical creditor time limit) pays for the products directly in the name of the pharmaceutical company. PROCESS OF SELLING Process of selling Obtaining demand Servicing demand Bulk Assortment Feedback Prospecting Promoting Storage Credit & Service Availability .000 retail pharmacies in India. in turn. Today.The stockist. on a basis of the percentage of total turnover of products. there were roughly 10. in 1978. once or twice.

CRITERIA OF SELECTION FOR C & F AND STOCKIST E ential Criteria Inve t ent Capacity Area of control Attitu e Reputation Financial tren th Situational Criteria Stora e pace Location Infra tructure Capa ility Sale Force Channel evaluation -concept Effectivene Delivery of tock to eet e an y partner Sti ulation of e an to reach the opti u level .

Transportation of goods and inventory management are two areas the company is trying for further improvement. the company has achieved significant changes in the domestic market.Influences of Functional areas ertise ent Sales force anage ent hannel anage ent Challenges of Distribution in Nicholas primal On the supply chain management (SCM) front. With the implementatio n of SCM. . NPIL's major challenge is to integrate its Indian and international businesses.

This example highlights the significance of SCM in pharma industry. the company has also reduced the number of transporters and reduced the delivery time. Within six months of the SCM applications. to improve the service quality. On the supply side. Pharma companies worldwide have started using this technique to improve the entire functional process. the company has been able to reduce materials inventory from 40 percent to 25 percent. This decision of the company has allowed a gain in bargaining power and reduced prices by five to ten percent.Results With better utilisation of SCM practices. NPIL has 28 depots and spends eight lakh to 10 lakh on information communication. NPIL significantly achieved the following results. This move of the company has led to a clear improvement in quality and delivery of products. SCM has helped pharma companies to enhance their efficiency in managing resources and improving relationships. On the material front. which is much lower than the industry's average. . At the same time. NPIL deliberately used source materials from a reasonable number of suppliers to reduce the risk factors and the company shifted to a single window.

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