NORTH SOUTH UNIVERSITY

MGT 212 GROUP PROJECT

A Project on GlaxoSmithKline Bangladesh Limited

Submitted To:

Rahnuma Sanjana(RSJ)
Lecturer, Management Department, SBE

Submitted By:

Name Id No
Faizul Haque Fahim 1921112630
Md. Sharirar Bin Tanim 1911275030
Sanjida Naznin 1911625630
Md. Abir Hasan 1831843630
Nahian Rizwan Sami 2012876630

Date Of Submission: 23rd May, 2020

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 Letter of Transmittal
23rd May, 2020

Rahnuma Sanjana

Lecturer, Department of Management

School of Business and Economics

North South University

Subject: Report submission on GlaxoSmithKline Bangladesh Ltd.

Respected Ma’am,

In accordance with your advice we have prepared our report on GSK Bangladesh
Ltd. and completed all tasks. Throughout this report we tried to follow all your
guidelines. We have investigated GSK annual report 2019 and GSK Bangladesh
Ltd. for getting proper information.

So,We hope this report will meet your requirements.

Sincerely yours,

Faizul Haque Fahim

Md. Shariar Bin Nazmul

Sanjida Naznin

Md. Abir Hasan

Nahian Rizwan Sami

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 Executive Summary

The group project which we have been assigned is GlaxoSmithKline Bangladesh Ltd. It is a
British multinational pharmaceutical, biologics, vaccines and consumer healthcare company.
Their goal is to be the best performing and trusted healthcare company. They mainly focus on
patient, transparency, respect and rigidity.

We have discussed their products and services, the markets they are operating, their financial
condition based on 2019 .We have also discussed about 2018 setbacks when they incurred a huge
loss in 2016 & 2017 and their business collapsed. They even decided to shut their company in
Bangladesh. But later on, they came to the business with new strategy & plans with the consumer
healthcare products and made heavy profit in the 2019 economic year. The company focused on
driving penetration and distribution of its products at affordable price.

In this report, we have tried to assess GlaxoSmithKline Bangladesh Ltd. through knowledge of
management class discussions, Stephen P. Robbins Mary Coulter’s Management book and
Pearson slides for better outcome.

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List of Contents Page No.
1. Prologue……………………………………………………06
2. Products and Services……………………………...………07
3. GSK BD Ltd. operating markets…………………..………09
4. Ratio Calculation………………………………………….10
5. Ratio Analysis……………………………………………..12
6. Achievements……………………………………………...13
7. Social Activities……………………………………………13
8. References…………………………………………………14

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Prologue

GlaxoSmithKline, often abbreviated to GSK, is British pharmaceuticals, vaccines,

biologics, and consumer healthcare company with its headquarters in Brentford, London and it
was the world's sixth largest pharmaceutical company according to Forbes as of 2019. This
company has a significant global presence with commercial operations in more than 150
countries, a network of 87 manufacturing sites in 36 countries.

GlaxoSmithKline Bangladesh Limited is also a brunch of GSK. GlaxoSmithKline Bangladesh

Ltd. is a well renowned healthcare company, which also manufactures pharmaceuticals,
vaccines, consumer healthcare products etc. GlaxoSmithKline Bangladesh Ltd. established in
1963 by manufacturing pharmaceuticals in the Citygate region of Chittagong, Bangladesh in the
ASIA continent. Their main corporate office is in Gulshan-1, Dhaka-1212, Bangladesh.

GSK’s Purpose:
“Improve the quality of human life by enabling people to do more, feel better and live longer”.

GSK’s Goal:
“To be one of the world’s most innovative, best performing and trusted healthcare
companies”.

GlaxoSmithKline Bangladesh Limited has been associated with Dhaka Stock Exchange
since 1976 and played a vital role for a long period of time in the Bangladesh economy.

In 2018, GlaxoSmithKline Bangladesh Ltd. shut down its pharmaceuticals production due to be
faced heavy losses in the pharmaceutical unit and could not survive in the competitive
pharmaceuticals industry. Their business collapsed in that time but they were continuing their
consumer healthcare production to run the business. After that, they are growing up business day
by day. They go behind in competitive markets but still they are in the top Health-care Company
in Bangladesh.

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Products & Services

This is a list of products manufactured by the multinational pharmaceutical, biologics, vaccines

and consumer healthcare company GlaxoSmithKline (GSK).

But GSK Bangladesh's product lines include nutrition and oral healthcare products, led by brands
like Horlicks and Sensodyne. Standard Horlicks, Mother's Horlicks, Junior Horlicks and
Horlicks Growth Plus posted steady growth in the last year. GSK

Consumer health Care:

1. Horlicks: Wheat 46% (Wheat Flour and Malted Wheat), Malted Barley 26%, Dried Whey
(Milk), Calcium Carbonate, Dried Skimmed Milk, Sugar, Palm Oil, Salt.

2. Chocolate Horlicks: Wheat Flour(32%), Sugar , Malted Barley(extracted solids)(18%)

,Milk Powder(9%), COCOA Powder, Natural Color (INS 150c), Minerals , Protein isolate
,Nature Identical Flavoring Substances , Acidity Regulator(INS 501(ii),500(ii)),Vitamins
Salt.

3. Junior Horlicks: Junior Horlicks 4-5-6 contains 6 immuno-nutrients known to support

the immune function. Stage 2 - Ingredients - Wheat flour (33%), Malted Barley (extracted
solids) (30%), Milk Solids (29%), Sugar, Minerals, Vitamins, Slat, Acidity Regulator (INS
501 (II)), Nature Identical Flavoring Substances, DHA Rich Algal Oil.

4. Mother Horlicks: Milk Solids, Malt Extract,Wheat flour, Malted Barley, Minerals,
Caramels, Cocoa-powder, Vitamins & Honey.

5. Horlicks Lite: Wheat Flour (33%) (contains calcium carbonate, ferric pyrophosphate,
niacin and thiamin), malted barley (19%), dried skimmed milk (13%), dried whey (milk),
sugar, milk proteins, calcium carbonate, palm oil, salt, vitamin mix (vitamin C, niacin,
vitamin E, pantothenic acid, vitamin B6, Riboflavin, thiamin, folic acid, vitamin A, biotin,
vitamin D, vitamin B12).

6. Boost: Water, Corn Syrup, Milk Protein Concentrate, Sugar, Vegetable Oil (Canola, High
Oleic Sunflower, Corn), Soy Protein Isolate, Calcium Caseinate, Sodium Caseinate,
Potassium Citrate, Magnesium Phosphate, Magnesium Chloride, Calcium Phosphate,
Cellulose Gel and Gum, Salt, Sodium Ascorbate, Choline Bitartrate.

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 7. Moltova: Malt extract, sugar, milk solids, maltodextrin, natural color, cocoa powder,
acidity regulator, salt, edible fiber, minerals, vitamins and nature identical flavoring
substance.
8. Glaxose-D: It is primarily composed of high grade dextrose, a form of glucose. It also
contains calcium, Vitamin D, and phosphorus.

Oral Healthcare:

1. Sensodyne: Active Ingredients: "Fresh Impact" Potassium Nitrate 5% Sodium

Fluoride 0.15% w/v fluoride ion 5% Potassium Nitrate and 0.15% w/v Sodium
Monofluorophosphate (Extra Whitening) or Sodium Fluoride (Fresh Mint, 0.15% w/v;
Baking Soda, 0.15% w/v; Cool Gel, 0.13% w/v; Tartar Control, 0.13% w/v; Tartar Control
Plus Whitening.

2. Aquafresh: Sodium Fluoride (0.15% w/v of Fluoride Ion). Inactive Ingredients: Water,
Hydrated Silica, Sorbitol, Glycerin, PEG-8, Flavor, Sodium Lauryl Sulfate, Xanthan
Gum, Titanium Dioxide, Cocamidopropyl, Betaine, Sodium Saccharin, Synthetic Iron
Oxide, D&C Red 30.

3. Biotene: Sodium monofluorophosphate and prior to the GlaxoSmithKline acquisition it

also contained enzymes including glucose oxidase, lactoferrin, lactoperoxidase and
lysozyme.

Services:
1. Product Availability: GSK Bangladesh is a very large group so they have a very high
amount of employees and stuff. So they can provide their products individually in local
markets, super shops, pharmacies etc. very easily all over Bangladesh.

2. Workshops: They engaged with Govt. of Bangladesh in Social Security Policy Support
(SSPS) in 2018. They are doing workshops on social protection, developing health care
etc. awareness based things with NGOs, civil societies etc. community of people.

3. WHO Programs: GSK is also working with World Health Org. (WHO). Whenever WHO
programs arrive in Bangladesh, GSK Bangladesh contributes to it. Provided free vaccines
to unprivileged people and Childs.

4. Employee Facilities: Besides all work, they have been well taken care of by their
employees and staff. In 2018 when they closed their pharmaceutical site, in time more
than 1000 employees became jobless but they committed to give their job and
opportunities for their employees.

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GlaxoSmithKline Bangladesh’s operating markets

As we know, GlaxoSmithKline is a British multinational company and they are operating their
business in over 150 countries. GlaxoSmithKline Bangladesh Limited is the top leading
company in Bangladesh Healthcare Industry.

We are trying to focus on their main market sectors where they are operating their business and
these are:

1. Pharmaceutical Industry: Basically, GSK Bangladesh Ltd. started their business in 1963
by manufacturing medicine. But two years ago, they closed their pharmaceutical unit in
2018, as they were losing profit day by day. They lost 14cr. Taka in 2016 and 15cr. Taka in
2017 in the pharmaceutical unit so they could not survive with other pharmaceutical
companies. So, currently they are detached from this market.

● Healthcare Industry: Besides pharmaceutical products, they are also making consumer
healthcare products such as Junior Horlicks, Mother Horlicks, Maltova, Viva etc.
products. Sensodyne is one of the best oral-products in the last few years. Selling these
products in local area markets which is really available in all places of Bangladesh. They
have made a strong position in this sector and there is no doubt about it.

2. Research: GSK is also working on Vaccines and diseases medicine. So we can get those
vaccines through GSK Bangladesh LTD. After that they also research on public health how
to improve public health life by providing health suitable and comfortable products. They are
investing a high amount of money in this site.

3. Exports and Imports: Before 2018, GSK Bangladesh Ltd. imported raw materials from
abroad. After processing the final goods they were supplying it in local area markets and
exporting abroad too. Now they are exporting and importing only their consumer healthcare
products. They have made a great impact in Bangladesh Exports and Imports field.

4. Share Market: GSK Bangladesh LTD. got listed in Dhaka Stock Exchange in 1976. So
they have very old business in this sector too. Last year, the company's profits were amazing,
it stood at Taka 98.57 cr. in 2019, up from the Taka 63.54 cr. losses it had logged for the
previous year.

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Calculate GSK Bangladesh Ltd. Current Ratio, Acid Test, Debt to Asset,

Inventory Turnover, Total Asset Turnover, ROI for 2019.

All the information has been taken from GlaxoSmithKline Bangladesh Ltd. Annual
Report 2019.

For Current Ratio,

Current Ratio =

= 1.54
The current ratio is 1.54:1. It means that for every dollar of current liabilities, Quality has
1.54 of current assets.

For Acid Test Ratio,

Acid Test Ratio =

= 1.48

Acid-test ratio measures immediate liquidity.

For Debt to Assets Ratio,

Debt to Assets Ratio =

= 0.64

=64%
Measures the percentage of the total assets that creditor provides.

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For Inventory Turnover,

Inventory Turnover =

= [Average Inventory = =16623]

= 120.95 times

Measures the number of times, on average, the inventory is sold during the period.

For Total Assets Turnover,

Total Assets Turnover =

= 0.99 times

Measures how efficiently a company uses its assets to generate sales.

For Return on Investment,

Return on Investment =

=0.218

= 21.8%

An overall measure of profitability.

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Ratios analysis
Current Ratio:
Current ratio is a tool to measure that the organization is capable of meeting up its short term
debts or not. Here, we see that according to 2019, the current ratio of GSK Bangladesh Ltd. is
1.54:1.
Here, current assets>current liabilities. So, it means this company can pay off its liabilities
through its current assets.

Acid Test Ratio:

Inventory is not included in this ratio. It tests liquidity more accurately when inventory turnover
or are difficult to sell.
According to 2019, the acid test ratio of GSK Bangladesh Ltd. is 1.48:1.
It means current assets are higher than current liabilitieswhich means this company is financially
secured in the short term. It is able to meet its short term liabilities.

Debt to Assets Ratio :

Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets
owned by a company.
According to 2019, it shows that GSK Bangladesh Ltd. has a low ratio of 0.64 which is less
than 1. It indicates that the company is not at risk of defaulting on its loans. A low degree of
leverage indicates a higher degree of financial flexibility which puts a company in a low risk.

Inventory Turnover:
The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing the cost of goods sold with average inventory for a period of time. This
measures how many times average inventory is turned or sold during a period. The higher the
ratio, the more efficiently assets are being used.
The inventory turnover of GSK Bangladesh Ltd. is 120.95. That means they are using the
inventory efficiently. Their sales rate is very much high. They can’t keep their products in stock.
They have a good demand for their product. The sales are higher than the average inventory.
They are using inventory efficiently to increase the number of sales. That is, they have good
inventory control.

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Total Assets turnover:

Total assets turnover shows how efficiently the company is using its assets to generate sales.
The total assets turnover of GSK Bangladesh Ltd. is 0.99 .The sales of the company is less than
its assets which is not good for the company. The company is not using the assets efficiently to
increase the amount of sales. Rather the assets are being used more than the sales. That means it
is not very efficient with use of its assets.

Return on Investment:

Return on investment measures profitability in terms of investment relative to its total assets.
This company’s return on assets is 21.8%. That is GSK Bangladesh Ltd. got 21.8% profit on
investment. The more the profit of return on investment, the more it is good for a company.

Achievements

GlaxoSmithKline Bangladesh Ltd. got partnership for “Strengthening Health Care System in
Bangladesh” in 2019 which was a great achievement for them and also an opportunity for
working with the government.

Social Activities

Campaign: GlaxoSmithKline Bangladesh Ltd. tied up with Biddyanondo Foundation for a

project where they gave their 18g sachet Horlicks for 5000 unprivileged children in 2019.

In this Covid-19 pandemic, GSK Bangladesh Ltd. has worked with M&S for HALLOW+
project. They distributed Personal Protection Equipment (PPE), masks and gave financial
support though Gazipur City Corporation in Gazipur area.

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References

 Stephen P. Robins Mary Coulter’s 14th edition Management book.

 Pearson lecture slides.
 GlaxoSmithKline official website.
https://www.gsk.com/en-gb/home/
 GlaxoSmithKline Bangladesh Ltd annual report 2019; page-17, 89, 90.
https://www.gsk.com/media/5925/gsk-annual-report-2019.pdf
 The Daily Star Newspaper; August 2018.
 Somoy television news.
 United report of Bangladesh, UNB; 23 April, 2020.
 https://www.gsk.com/en-gb/products/our-vaccines/#a-d
 https://www.gskhealthpartner.com/en-us/oral-health/brands/biotene/science/
 https://www.gsk.com/en-gb/products/our-consumer-healthcare-products/oral-
health/sensodyne/
 http://www.purplekaddu.com/packaged-food/nutritional-supplements/gsk/boost
 https://www.gsk.com/en-gb/about-us/pharmaceuticals/
 https://sites.google.com/site/cocoaexposed/cocoa-confectionery/product-survey/horlicks-
chocolate-flavour-glaxosmithkline
 https://www.daily-sun.com/post/354632/2018/12/04/GSK-to-sell-
Bangladesh%E2%80%99s-stake-to-Unilever
 https://www.infolinks.top/india-consumer.gsk.com/
 https://www.horlicks.com.bd/reference.html
 https://www.drugs.com/drp/sensodyne-tartar-control-plus-whitening.html
 https://slideplayer.com/slide/6865119/
 https://www.gsk.com/media/4800/english-code-of-conduct.pdf
 https://www.studymode.com/essays/Multinational-Corporation-In-Bangladesh-
1866962.html
 https://www.investopedia.com/terms/t/totaldebttototalassets.asp
 https://www.myaccountingcourse.com/financial-ratios/inventory-turnover-ratio
 https://blog.familyfarmsgroup.com/familyfarms-group/5-measures-of-financial-efficiency

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