BIOCON LIMITED

CHAPTER-1

INTRODUCTION
Biocon Limited is a renowned biopharmaceutical company headquartered in
Bangalore, India. Founded in 1978 by Kiran Mazumdar-Shaw, it has grown into
a global player in the biotechnology industry. Biocon focuses on developing and
manufacturing innovative biopharmaceuticals, including biosimilars, novel
therapies, and research services. With a commitment to affordable healthcare,
Biocon has made significant contributions to the treatment of diabetes, cancer,
and autoimmune diseases. The company's dedication to research, quality, and
accessibility has earned it recognition as a leading biotechnology firm on the
global stage.

Biocon has established itself as a key player in the production of biosimilars,

providing cost-effective alternatives to high-priced biologic drugs. One of its
notable achievements includes being the first Indian company to gain approval
for a biosimilar from the U.S. Food and Drug Administration (FDA).

The company's diverse product portfolio spans therapeutic areas such as

oncology, diabetes, and immunology. Biocon's subsidiary, Syngene International,
focuses on contract research and manufacturing services, contributing to the
broader spectrum of life sciences.
Kiran Mazumdar-Shaw, the founder and chairperson of Biocon, has been a
trailblazer in the biotechnology sector, garnering numerous accolades for her
leadership and contributions to the industry. Under her guidance, Biocon
continues to expand its global footprint, collaborating with international partners
and driving innovation in biopharmaceuticals.

COMPANY PROFILE
Established in 1978, Biocon is Asia's premier biotechnology company.
Headquartered in Bangalore Biocon has evolved from an enzyme company to a
fully integrated biopharmaceutical enterprise, focused on healthcare. In 2007,
Biocon made a strategic decision to divest its historic enzymes business to
Novozymes A/S of Denmark. Biocon now strategically focuses its activities on
its bio-pharma business verticals that include APIs, biologicals and proprietary
molecules both commercialized and under development with this divestment, the
company’s mission is to 'Develop novel & affordable Biotherapeutics for global
markets'.

Biocon Limited and its two subsidiary companies, Syngene International Limited
and Clinigene International Limited form a fully integrated biotechnology
enterprise specializing in biopharmaceuticals, custom research and clinical
research. Biocon's integrated business approach has enabled the company to
establish a significant presence in the global biopharmaceutical market via its
product offerings and customised, high value solutions at any stage in the
lifecycle of a drug-from discovery to market. Biocon’s vision is to be an
integrated biopharmaceutical enterprise of global distinction.

The company applies its proprietary fermentation technologies to make effective

and innovative biomolecules in diabetology, oncology, cardiology and other
therapeutic segments. Biocon's products in the biopharmaceutical category
include: anti-diabetic agents, anti-hypertensive agents, anti-inflammatory agents,
anti-oxidants, biologicals, cholesterol-lowering agents, haemostatic agents,
hepatoprotective agents, immunosuppressants, nutraceuticals and orthopedic
agents.

With its strong focus on R&D Biocon offers services in custom research
(Syngene) in the fields of synthetic chemistry and molecular biology in early
stage drug discovery and development. Clinical research (Clinigene) is carried
out in the fields of clinical studies and clinical trials.

Biocon Park, inaugurated in June 2006 by President APJ Abdul Kalam comprises
an integrated cluster of research laboratories and manufacturing facilities laid out
on a 90 acre expanse in Bommasandra Industrial Area – Phase IV. Built with a
total investment of Rs. 650 crores, with further investments to follow, Biocon
Park is the single largest capital investment made by Biocon in its 32-year history
and is focused on exports of both bio-pharmaceutical products and research
services. The multi-product facilities mainly cater to the following disease
segments: cardiovascular, cholesterol reduction, immunosuppressants in organ
transplantation, diabetes and cancer.

In 2010, Biocon set up a biomanufacturing and R&D facility in Malaysia to meet

the demand for Biocon's biosimilar versions of insulin for diabetes treatment,
globally. This investment has given the Company an international manufacturing
location with strategic geographical proximity to India.

Biocon's success has been characterized by an enduring set of corporate values

based on innovation, integrity, strong leadership and social responsibility. As
India's first and leading biotechnology company Biocon extends its support to
numerous community outreach and corporate citizenship initiatives with special
concentration in the areas of healthcare, education and environment. The Biocon
Foundation, set up in 2004 has launched Arogya Raksha Yojana, a unique health
initiative for rural India.
Biocon aims to continuously create growth in different areas of the company and
is the first company, globally to manufacture human insulin, Insugen® using a
Pichia expression system. In addition, in 2006, Biocon launched BIOMAb
EGFR™, the first indigenously developed humanized monoclonal antibody for
Head & Neck cancer

PROMOTERS
Ms. Kiran mazumdar- shaw

She is an Indian billionaire entrepreneur. She is the

executive chairperson and founder of Biocon Limited and
Biocon Biologics Limited, a biotechnology company based in Bangalore, India
and the former chairperson of Indian Institute of Management, Bangalore.

Mr. Siddharth Mittal

He is Managing Director and CEO of Biocon Limited. He

joined the company in May 2013 and served as President
& Chief Financial Officer until November 2019. With
diverse global experience in strategic finance and accounting, mergers and
acquisitions and general management, Siddharth has assumed positions of
increasing responsibility over two decades of his professional journey.

Mr. john shaw

John Shaw joined Biocon in 1999 proper to which he was

working at a leading textiles MNC Madura Coats as Chairman
and Managing Director. According to media sources, in 1998,
John Shaw, personally raised 2 million dollars to buy the outstanding Biocon
shares from ICI. He then got married to Kiran Mazumdar and took early
retirement from his position as chairman at Madura Coats to join Biocon.
VISION, MISSION AND QUALITY POLICY

To enhance global healthcare through innovative and affordable

biopharmaceuticals for patients, partners and healthcare systems
across the globe.

To be an integrated biotechnology enterprise of global distinction.

Essential to this mission is excellence in:

-Intellectual asset creation through discovery, research

and development

-State-of-the-art manufacturing capabilities

-Internationally benchmarked quality and regulatory systems

-New medical insight through disease specific

clinical research

-Customer relationship through outstanding products

and services

-Human resource development through training,

mentoring and empowering

-Management of research and business partnerships

- Integrity and Ethical Behaviour

- Performance driven work culture

- Value Creation through Innovation & Differentiation

- Quality through Compliance & Best Practices

- Collaboration, Team Work & Mutual Respect

PRODUCT PROFILE

1. Insulin Glargine

Insulin glargine sold under the brand name Lantus among others is a long-
acting modified form of medical insulin, used in the management of type
I and type II diabetes. It is injected just under the skin. Effects generally begin an
hour after use.

Common side effects include low blood sugar, problems at the site of injection,
itchiness, and weight gain. Other serious side effects include low blood
potassium. NPH insulin rather than insulin glargine is generally preferred
in pregnancy. After injection, microcrystals slowly release insulin for about 24
hours. This insulin causes body tissues to absorb glucose from the blood and
decreases glucose production by the liver.

2. rh- Insulin

• The world’s first Pichia-based recombinant human insulin (RH-Insulin)

developed in India
 • Introduced at less than half the prevailing price, compelling MNC brands
to drop prices
• Has bettered the lives of patients around the world
• The largest domestic brand of insulin today

3. Trastuzumab

Trastuzumab, sold under the brand name Herceptin among others, is

a monoclonal antibody used to treat breast cancer and stomach cancer. It is
specifically used for cancer that is HER2 receptor positive. It may be used by
itself or together with other chemotherapy medication. Trastuzumab is given
by slow injection into a vein and injection just under the skin.

Common side effects include fever, infection, cough, headache, trouble sleeping,
and rash. Other severe side effects include heart failure, allergic reactions,
and lung disease. Use during pregnancy may harm the baby. Trastuzumab works
by binding to the HER2 receptor and slowing down cell replication.

Trastuzumab was approved for medical use in the United States in September
1998, and in the European Union in August 2000. It is on the World Health
Organization's List of Essential Medicines.
 4. Pegfilgrastim

Pegfilgrastim, sold under the brand name Neulasta among others, is

a PEGylated form of the recombinant human granulocyte colony-stimulating
factor (GCSF) analog filgrastim. It serves to stimulate the production of white
blood cells (neutrophils). Pegfilgrastim was developed by Amgen.

Pegfilgrastim treatment can be used to stimulate bone marrow to produce more

neutrophils to fight infection in patients undergoing chemotherapy.

Pegfilgrastim has a human half-life of 15 to 80 hours, much longer than the parent
filgrastim (3–4 hours).

Pegfilgrastim was approved for medical use in the United States in January 2002,
in the European Union in August 2002, and in Australia in September 2002. It is
on the World Health Organization's List of Essential Medicines.
 5. Bevacizumab

Bevacizumab, sold under the brand name Avastin among others, is

a monoclonal antibody medication used to treat a number of types of cancers and
a specific eye disease. For cancer, it is given by slow injection into a vein
(intravenous) and used for colon cancer, lung cancer, ovarian
cancer, glioblastoma, and renal-cell carcinoma. In many of these diseases it is
used as a first-line therapy. For age-related macular degeneration it is given by
injection into the eye (intravitreal).

Common side effects when used for cancer include nose bleeds, headache, high
blood pressure, and rash. Other severe side effects include gastrointestinal
perforation, bleeding, allergic reactions, blood clots, and an increased risk of
infection. When used for eye disease side effects can include vision
loss and retinal detachment. Bevacizumab is a monoclonal antibody that
functions as an angiogenesis inhibitor. It works by slowing the growth of new
blood vessels by inhibiting vascular endothelial growth factor A (VEGF-A), in
other words anti–VEGF therapy.

Bevacizumab was approved for medical use in the United States in 2004. It is on
the World Health Organization's List of Essential Medicines. It is listed for its use
in treating eye disease.
 6. Adalimumab

Adalimumab, sold under the brand name Humira, among others, is

a monoclonal antibody used to treat rheumatoid arthritis, psoriatic
arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, plaque
psoriasis, hidradenitis suppurativa, uveitis, and juvenile idiopathic arthritis. It is
administered by subcutaneous injection (injection under the skin).

Common side effects include upper respiratory tract infections, pain at the site of
injection, rash, and headache. Other side effects may include serious
infections, cancer, anaphylaxis, reactivation of hepatitis B, new onset or
exacerbation of demyelinating diseases (such as multiple sclerosis), heart
failure, liver failure, and aplastic anemia. Use during pregnancy is not
recommended, but some sources show use during breastfeeding may be safe.

Adalimumab is a disease-modifying antirheumatic drug and monoclonal

antibody that works by inactivating tumor necrosis factor-alpha (TNFα).

Adalimumab was approved for medical use in the United States in 2002. It is on
the World Health Organization's List of Essential Medicines. It is available as
a biosimilar medication. In 2020, it was the 205th most commonly prescribed
medication in the United States, with more than 2.3 million prescriptions.
 7. Atorvastatin

Atorvastatin, sold under the brand name Lipitor among others, is

a statin medication used to prevent cardiovascular disease in those at high risk
and to treat abnormal lipid levels. For the prevention of cardiovascular disease,
statins are a first-line treatment. It is taken by mouth.

Common side effects include joint pain, diarrhea, heartburn, nausea, and muscle
pains. Serious side effects may include rhabdomyolysis, liver problems,
and diabetes. Use during pregnancy may harm the fetus. Like all statins,
atorvastatin works by inhibiting HMG-CoA reductase, an enzyme found in
the liver that plays a role in producing cholesterol.

Atorvastatin was patented in 1986, and approved for medical use in the United
States in 1996. It is on the World Health Organization's List of Essential
Medicines. It is available as a generic medication. In 2020, it was the most
commonly prescribed medication in the United States, with more than
114 million prescriptions.
 8. Dapagliflozin

Dapagliflozin, sold under the brand names Farxiga (US) and Forxiga (EU)
among others, is a medication used to treat type 2 diabetes. It is also used to treat
adults with heart failure and chronic kidney disease.

Common side effects include hypoglycaemia (low blood sugar), urinary tract
infections, genital infections, and volume depletion (reduced amount of water in
the body). Diabetic ketoacidosis is a common side effect in type 1 diabetic
patients. Serious but rare side effects include Fournier gangrene. Dapagliflozin is
a sodium-glucose co-transporter-2 (SGLT-2) inhibitor and works by removing
sugar from the body with the urine.

It was developed by Bristol-Myers Squibb in partnership with AstraZeneca. It is

on the World Health Organization's List of Essential Medicines. In 2020, it was
the 217th-most commonly prescribed medication in the United States, with more
than 2 million prescriptions. Dapagliflozin is available as a generic medication.
 9. Nimotuzumab

Nimotuzumab (h-R3, BIOMAb EGFR, Biocon, India; TheraCIM, CIMYM

Biosciences, Canada; Theraloc, Oncoscience, Europe, CIMAher, Center of
Molecular Immunology, Havana, Cuba) is a humanized monoclonal
antibody that as of 2014 had orphan status in the US and EU for glioma, and
marketing approval in India, China, and other countries for squamous cell
carcinomas of the head and neck, and was undergoing several clinical trials.

Like cetuximab, nimotuzumab binds to the epidermal growth factor

receptor (EGFR), a signalling protein that normally controls cell division. In
some cancers, this receptor is altered to cause uncontrolled cell division, a
hallmark of cancer. These monoclonal antibodies block EGFR and stop the
uncontrolled cell division.

It has a humanized human-mouse h-R3 heavy chain and a humanized human-

mouse h-R3 κ-chain.
 10. Itolizumab

Itolizumab (INN, trade name Alzumab) is a 'first in class' humanized

IgG1 monoclonal antibody developed by Biocon and the Center of Molecular
Immunology (CIM), Havana.

It selectively targets CD6, a pan T cell marker involved in co-stimulation,

adhesion and maturation of T cells. Itolizumab, by binding to CD6, down
regulates T cell activation, causes reduction in synthesis of pro-
inflammatory cytokines and possibly plays an important role by reducing T cell
infiltration at sites of inflammation.

A double blind, placebo controlled, phase III treat –Plaq study of itolizumab
successfully met the pre-specified primary end-point of significant improvement
in PASI-75 (Psoriasis Area and Severity Index) score after 12 weeks of treatment
in patients with moderate to severe psoriasis compared to placebo.

Biocon received marketing authorization for the drug from the Drugs Controller
General of India (DCGI) in January 2013 and marketing within India commenced
in August 2013.

In July 2020, Biocon received authorization in India for its use in the treatment
of COVID-19.
AREAS OF OPERATIONS
Biocon have made significant investments in building world class manufacturing
infrastructure. We have created large scale fermentation capabilities to support
manufacturing of APIs like statins and immunosuppressants. We also built one of
India’s largest bio-manufacturing facilities for insulins, monoclonal antibodies
and devices. We continue to invest in expanding our manufacturing capacities to
address the growing market needs. Our world class state-of-the art manufacturing
sites at Bengaluru, Hyderabad, Vizag and Johor, Malaysia have successfully been
inspected and approved by global regulators like US FDA, EMA, TGA Australia,
ANVISA Brazil, COFEPRIS Mexico and others.

INFRASTRUCTURE FACILITIES

• Biocon Park, Bangalore: The company's headquarters and a significant

facility for research and development.
• Biocon Biopharmaceuticals Limited (BBL), Bangalore: This facility
focuses on the production of biopharmaceuticals.
• Biocon Research Limited (BRL), Bangalore: This facility is dedicated to
research activities, including the development of new biotech products.
• Syngene International Limited, Bangalore: Although a separate entity,
Syngene is Biocon's research arm and provides contract research services.
It operates from the Biocon Park.
• Biocon Malaysia: Biocon has a subsidiary in Malaysia known as Biocon
Sdn. Bhd., which is engaged in the development and manufacturing of
biopharmaceutical products.
• Biocon Biologics: This is a division focused on developing and
manufacturing biosimilar products. They have a state-of-the-art facility for
biosimilars research and production.
 • Biocon Academy: A training facility that provides skill development
programs in biotechnology and related fields.
• Biocon Bristol-Myers Squibb R&D Center: Collaboration with Bristol-
Myers Squibb for research and development activities.

COMPETITORS INFORMATION
The main competitors of Biocon company are as follows:

1. AmideBio

AmideBio is a biotechnology company focused on providing peptide and protein

research reagents and clinical products for a diverse array of research and
commercial targets. AmideBio addresses the challenges of difficult-to-
manufacture peptides by using its technology to minimize toxicity during
bacterial growth and in the chemical synthesis waste stream. The company was
founded in 2009 and is based in Louisville, Colorado.

2. c- LEcta

c-LEcta is a global biotechnology company specializing in the development,

production and distribution of enzyme products. The company uses world-class
enzyme engineering and production technologies to provide its partners in the
food and pharmaceutical industries with superior biotechnological solutions for
innovative industrial applications. c-LEcta is part of the Kerry Group.

3. Kedrion

Kedrion Biopharma is a biopharmaceutical company that collects and fractionates

blood plasma to produce and distribute worldwide plasma-derived therapies for
use in treating and preventing rare and debilitating conditions like Coagulation
and Neurological Disorders, and Primary and Secondary Immunodeficiencies.

4. Clinipace

Clinipace Worldwide develops a CRO service model to serve the needs of

venture-backed, mid-tier, and strategic pharmaceutical, biotechnology and
medical device firms. Powered by Clinipace's TEMPO eClinical platform, the
company assists life science firms in executing regulatory strategies, clinical
development, and post-approval research programs. On April 28th, 2021,
Clinipace merged with dMed.

5. Molmed

MolMed is a biotechnology company focused on research, development,

production, and clinical validation of gene and cell therapies for the treatment of
cancer and rare diseases. Thanks to the experience and know-how acquired in
over 20 years of activity, MolMed is a reference player in the Cell & Gene sector,
able to manage all phases of research up to the commercialization of advanced
gene and cell therapies.

6. Bloomage

Bloomage Biotech is on a ceaseless pursuit of "creating technology for a vibrant

life." The company primarily focuses on functional sugars, proteins,
polypeptides, amino acids, nucleotides, natura active compounds, and other
biologically active substances based on hyaluronic acid.
7. Integrated DNA Technologies (IDT)

Integrated DNA Technologies (IDT) is the largest supplier of custom nucleic

acids in the world, serving academic, government, and commercial researchers in
biotechnology, clinical diagnostics, and pharmaceutical development. IDT's
primary business is the manufacture of custom, synthetic DNA and RNA
oligonucleotides.

8. Irvine Pharmaceutical Services

Irvine Pharmaceutical is a contract development and manufacturing organization

offering services to pharmaceutical, biotechnology, and medical devices
industries. Services offered include analytical chemistry, analytical development,
parenteral manufacturing, biopharmaceutical development, drug delivery
technologies, formulation development, microbiology, stability, and structural
chemistry services.
9. ReInnervate

The core strength of Reinnervate lies in its Alvetex family of 3D cell culture
products, providing a flexible platform that allows scientists in any life science
laboratory to easily establish improved in vitro assays and tissue models that
better mimic the in vivo growth of cells. Reinnervate was founded in 2002 by
Professor Stefan Przyborski as a spinout biotechnology company from
Durham University, UK.

SWOT ANALYSIS

SWOT Analysis is a method that is used by a company or organisation to identify

the company’s internal strength and weakness and its external opportunity and
threat. It will help the company to compete better in the industry.
STRENGH
Strengths are an organization’s distinguishing characteristics that give it a
competitive advantage in increasing market share, attracting more customers,
and maximizing profitability. The following are Biocon strengths:

➢ Superior Product and Service Quality

➢ Biocon’s Biologics Have a Diverse Product Portfolio
➢ Strong Finance
➢ Managing Regulations and the Business Environment
➢ First Mover Advantage

WEAKNESS
Weaknesses in a company or brand are elements that must be improved. So,
let’s look at some of Biocon weaknesses:

➢ Organization Culture
➢ Technology Implementation in Processes
➢ Inadequate Workforce Diversity

OPPORTUNITIES
These are areas where a company’s efforts can be concentrated in order to
improve results, sales, and, eventually, profit. So, let’s take a look at the
possibilities for Biocon to deliver exceptional results.

➢ Increase in Consumer Disposable Income

➢ Opportunities in Adjacent Markets
➢ E-Commerce and Social Media Oriented Business Models
➢ Reducing the Cost of Market Entry and International Marketing
➢ Changing Technology Environment
THREATS
External factors that can hinder a company’s growth are referred to as threats.
The following are some of Biocon threats:

➢ Buyers’ bargaining power is increasing

➢ Middle-Class Squeeze in the Developed and Developing Worlds
➢ Government Regulations and Bureaucracy
➢ Trade Relations Between the United States and China

FUTURE GROWTH AND PROSPECTS

FINANCIAL STATEMENT
Balance sheet for the year ended 2022-2023

Particulars Mar'23 Mar'22

Liabilities 12 Months 12 Months

Share Capital 600.30 600.30

Reserves & Surplus 10314.80 7491.70

Net Worth 10916.00 8092.90

Secured Loan 1297.70 75.90

Unsecured Loan .00 .00

TOTAL LIABILITIES 12213.70 8168.80

Assets

Gross Block 2338.10 2144.80

(-) Acc. Depreciation 1376.70 1274.60

Net Block 961.40 870.20

Capital Work in Progress 343.50 284.90

Investments 9270.70 5280.00

Inventories 560.10 541.50

Sundry Debtors 658.00 700.60

Cash and Bank 720.30 689.30

Loans and Advances 515.90 502.50

Total Current Assets 2454.30 2433.90

Current Liabilities 762.60 649.80

Provisions 53.60 50.40

Total Current Liabilities 816.20 700.20

NET CURRENT ASSETS 1638.10 1733.70

Misc. Expenses .00 .00

TOTAL ASSETS(A+B+C+D+E) 12214.60 8169.70

 CHAPTER-2
CONCEPTUAL BACKGROUND AND LITERATURE
REVIEW

THEORETICAL BACKGROUND OF THE STUDY

COST ACCOUNTING

Cost Accounting is the process of recording, classifying and suitable allocation

of expenses for the dedication of the prices of merchandise, offerings & for the
presentation of suitability organized statistics for the cause of steerage of
management and control. Cost accounting consists of the ascertainment of the
task settlement, cost of every order system, service or unit as can be suitable and
additionally offers with the cost of distribution, promotion and manufacturing.

Definition of Cost Accounting

According to Institute of Cost and Management Accountants of England, Cost

Accounting is defined as the process of accounting for cost. This process begins
with the recording of income and expenditure or the bases on which they are
calculated and ends with the preparation of periodical statements and reports for
the purpose of ascending and controlling costs.

Benefit of Cost Accounting

• It helps the clients.

• It gives statistics about which tenders and estimates are based totally.

• Cost accounting helps to increase the profit.

• It disclose the profitable and unprofitable information.

What is Cost Sheet?

Cost sheet means a statement that is gathered all the expenses and costs related
with a manufacturing process. This is mainly used for collect together the margin
of profit earned on a product and can form the supporting to set price on identical
products in future. Cost sheet also can be used for the support for different cost
control techniques and measures. A cost sheet can be created on paper as well as
through computer.

Definition of Cost Sheet

CIMA London defined cost sheet as ‘a statement which provides for the assembly
of the detailed cost of a Centre or a cost unit’

The costs are usually listed in cost sheet by following categories

• Direct labour

• Direct materials

• Administrative overhead

• Factory overhead

• Direct expenses

• Selling and distribution

Sometimes following costs also included in cost sheet

• Shipping & Handling

• Supplies

• Outsource cost
The costs that are listed on cost sheet include labour cost and actual material cost
incurred. Anyway it is also possible that those costs are only listed in their
standard cost. The development of cost sheet is very important, typically if it is
prepared by hand.

The format of the cost sheet is typically a standard one that should be either setup
within the computer accounting system or manually rolled from past reports when
the report is printed. Another purpose of the cost sheet is that it can be used as the
support for the quote to a customer, basically for the production of a custom
product. In this situation cost sheet includes the best prediction of the company’s
prediction for the requested product, with the details for each of the past indicated
expense line items.

Advantage of Cost Sheet

• Cost sheet indicates the breakup of the total cost by each elements like labour,
material, overhead etc.

• Cost sheet facilitates the comparison of each costs in different years.

• Cost sheet helps the management to fix the selling price.

• Cost sheet can act as a guide to the management to formulate the production
policy.

• It helps the management to have control over the cost of production.

Direct Materials

In simple word, it is the material that is used during the production of a product
and it can be directly identified with the product. Other names for the direct
material are productive material, raw stock, store and raw materials. The cost of
direct material can be easily fount with the unit of production.

Step to estimate the Direct material cost

• Identify the total amount goods to be produced. This is called as order size.

• Estimate the total amount of raw material needed to produce the order size.

• Multiple that estimated amount by the cost related with the raw material.

• If there is scrap or waste its cost should be included in the step three.

• If the scrap or waste can be sold at scrap value, then this amount should be
deducted from the cost in the step four.

Direct Labour

Direct labour is the employees or workers who are directly involved in the
production process of goods. The cost which is assigned to a specific cost center
or product is known as direct labor cost. This includes

• The cost of the fringes and wages given to the direct worker or employee.

• The cost of the temporary helper who work directly on the production or
manufacturing process.

Factory Overhead

Other names for the factory overhead are work overhead and manufacturing
overhead. Factory overhead is the total cost involved in an operation of all
manufacturing facility in a production business that can’t be discovered directly
to a product. Factory overhead is usually applies to direct labour cost and indirect
cost. It include all the cost included in production excluding the cost of raw
material.

Example: production supervisor salary, factory rent, depreciation, equipment

setup cost, factory utilities, fringe benefit etc.
Administration Overhead

It is the costs that are not involved in the production or development of goods or
services. Administration overhead is considered as a period cost. It means the
benefit of this kind of cost don’t carry forward into future periods. It is also known
as general overhead.

Example: office supplies, sales travel and entertainment, administration travel

expenses, salary and commission, wages etc.

Selling and Distribution Overhead

These are the expenses that are normally incurred to enhance the service and sales
to the customer. So normally the expenses like salesman salary, travel expenses,
advertisement cost, commission, banner and billboard, brochure and catalogue,
bad debt, showroom expenses, free gift etc. are included under this.

Distribution expense is the expenses which are sustained for storage and
warehousing, making goods available to delivering to customer and packing of
goods that are going to send. 22 So in general sense, distributing expense includes
warehousing cost, cost of preparation of challan, storage cost, packing cost,
delivery cost etc.

Prime Cost

Prime cost is the cost which is directly assigned to the production of each goods.
It is direct cost which includes the cost of direct material and direct labour in
production of goods. The companies use the prime cost to price their products.

Prime cost is calculated by adding the cost of labour to the cost of raw material
that are directly related to the manufacturing process. The formula for prime cost
only takes into account those variable expenses are directly associated to the
production of each goods. The formula for prime cost is as follows

Prime cost = Raw material + Direct labour

Work Cost

Work cost is the aggregate cost of the direct resource involved in performing the
work. It can be also said that sum of all expenses incurred by a contractor during
the performance of a contract or work.

Main cost control techniques

• Inventory control

• Labour control

• Overhead control

• Budgetary control

LITERATURE REVIEW

• Kalegaonkar et al., (2008) he starting out in the enzyme business, the

Bangalore-based firm has gradually expanded into the pharmaceutical
industry. Expertise in manufacturing enzymes led to mass production of
generic drugs, which in turn gave Biocon the experience to establish
Syngene, a subsidiary contract research organization (CRO) serving the
global pharmaceutical market. At each stage, Biocon had built on both its
recently developed capabilities and the political, biological, intellectual,
and financial benefits of the Indian environment to move into new areas of
opportunities. By early 2003, Biocon boasted of 800 employees and annual
revenues of US$75 million. Currently, the company employs about 6,700
þ personnel’s and generates half the revenue of the Indian biotech industry
of about US$2 billion
• By 2000, Biocon India group already possessed the capabilities for
conducting R&D, manufacturing and marketing. It wanted to become a
fully integrated drug discovery and development company. The only
 missing link for Biocon in the traditional pharmaceutical value chain was
the ability to run clinical trials. Thus, in 2000, Clinigene was launched out
of this vision. Clinigene offered a broad range of clinical trial services.
Within a few years of its launch, Clinigene expanded its focus from
organizing trials to clinical lab services, BE/BA studies, and partnership
with hospitals. Clinigene filled a key missing gap in the value chain for
Biocon. Apart from these two, there are other subsidiaries of Biocon which
are: Biocon Biopharmaceuticals Private Limited (BBPL), Biocon
Research Limited (BRL), NeoBiocon FZ LLC, Biocon SDN. BHD and
Biocon SA (AT Kearney, 2012).
• The fully integrated business model draws itself from traditional value
chain of a pharmaceutical company – from pre-clinic discovery (Syngene),
to clinic development (Clinigene) and then further to commercialization
(Biocon). The three business divisions offer various revenue streams for
balancing risk, driving innovation, delivering products and accelerating
growth. These three offer important synergies in the growth of Biocon.
Syngene, the pre-clinical discovery division, provides small and large
molecule discoveries and development services. Clinigene, clinical
research division, is an innovative provider of world-class clinical research
solutions to global pharmaceutical and biotech companies. Biocon has an
extraordinary track of commercialization abilities. It has got to market a
substantial portfolio of biopharmaceuticals (Capitaline Databases, 2012)
• Internalization advantages govern how a firm chooses to operate in a
foreign country. This approach concentrates on the incentives facing
individual firms. Internalization advantage is the third condition of OLI.
Internalization can be seen as efficiently choosing the mode of entry by
the MNE. The efficiency with which a company is able to internalize the
ownership advantages for reducing transaction cost is the essence of this
condition. According to Dunning (1988), MNEs prefer to transfer their
 firm specific advantages across nations within their own organizations
than selling the same (Biocon – Investors – Press, 2012).
• Any MNE has several choices of entry mode. These are the arm’s length
transactions, wholly owned subsidiaries, JV, acquisitions, collaborations,
minority stake purchases, etc. The advantage from entry modes arise when
the firm benefits from controlling the foreign activity instead of hiring an
autonomous local company for the same. A firm is more likely to prefer
foreign production and not opt for licensing when the net benefit of
internalizing cross-border markets is higher. For advantages and
disadvantages of various modes of entry (The Hindu Business Line,
2006).
• The following are some issues which are faced in general by companies
operating in pharmaceutical sector during internationalization and the
same have been faced by Biocon also. The performance of the company is
highly dependent on demand from and the regulatory process in the USA
and Europe. Further, the demand becomes a direct function of the
reimbursement policies of health insurers who are trying to contain health
care costs. The stringent policies of US FDA and EDQM further act as
barriers in the internationalization process. The extensive regulations by
governments with regard to clinical trials, research and testing require the
company like Biocon to continuously invest in meeting world standards.
Failures in meeting norms with regard to lab practices and disposal of
hazardous material can lead to suspension of the company from the
country. Exchange rate fluctuations significantly impact the overseas
operations and the orders. International political scenario like WTO attack
affects the movement of personnel from India due to travel restrictions
(Outlook India, 2012).
• Biocon as the global expansion was driven with a motive of either market
seeking or cashing on the cost advantage of its operations. The dominant
mode of entry has been strategic alliances or JVs. These are very
interesting deals. Biocon concentrates on manufacturing, where it has a
cost advantage, and other organizations do the marketing, whereby they
help Biocon take it to other emerging markets and the developed world.
This way Biocon can scale up its business substantially. Further, each of
the major overseas deals was analysed separately. After studying, the
rationale behind each of the deals, it was found that market seeking has
been the main motive. Another, rationale which stems out of the previous
one is the strategy of Biocon to provide ‘‘affordable healthcare’’ at
‘‘affordable innovation’’ in the region of its operations. Biocon’s
internationalization strategy is based on ‘‘organic growth through
partnerships’’. Biocon has adopted a two-fold model for overseas
expansion. First, leverage on its cost-efficient manufacturing and seek new
markets. Second, enter into collaborations and contracts for technology
seeking (Biocon, 2012).
 CHAPTER-3
RESEARCH DESIGN

STATEMENT OF THE PROBLEM

“A study on delay in tenders in Biocon Ltd”

• This endeavor aimed to address the challenges and procedures linked to the
prolonged duration of tenders at Biocon Ltd. Despite numerous ongoing
studies within the organization, there has been a noticeable gap in the
examination of tender delays. I endeavored to bridge this gap in research
to the best of my ability. The primary issue faced by the company revolves
around the escalating delays in tender processes. Failure to implement
efficient tender techniques could potentially pose significant challenges for
the company.

NEED FOR THE STUDY

1. Delay in Preparing Technical Specifications, Scope of Work or Terms of

Reference

Technical specifications, scope of work, and terms of reference are documents

that describe what is needed, and should be clear enough to avoid confusing
suppliers, contractors, service providers or the evaluation panel.

They are also needed to prepare the solicitation (bidding/tender) documents. And
if they are not completed ahead of schedule, the procurement process is delayed
before it even starts.

The reason for delay is usually due to lack of expertise in preparing these
documents, or not realizing the extent of the information and research that may
be needed to complete them.
2. Failure to Start the Procurement Process on Time

This is a very common delay. You have an approved procurement plan and you
have developed a procurement schedule, but it has been overlooked or not taken
into consideration, so the procurement process begins later than intended.

To resolve this, it’s important to stay informed of the deadlines on the

procurement schedule, especially the start date of the procurement process. You
can use an electronic calendar, such as the Google or MS Outlook calendars, to
set reminders of important dates on the procurement schedule.

3. Extension of Bid or Proposal Submission Date

The bid or proposal submission period may need extending, causing delay in
awarding the contract. Some of the reasons are:

• Mistakes in the solicitation (bid or proposal) documents

• Prospective bidders request more time for submission and it is granted
• Poor response to invitation for bids or call for proposals
• Unforeseen event such as natural disaster, emergency situation, mass
demonstrations, etc.
• Request for clarification results in an amendment to the solicitation
documents, which requires an extension of submission period for bidders
to take the amendment into account in their bids or proposals

4. Delay in Opening Bids or Proposals Received

Bids and proposals have a set deadline for submission. If they are submitted late
they should be rejected, unless the procurement rules or the solicitation
documents state otherwise.

The opening of bids and proposals is usually a public event that should take place
immediately after the submission date and time. Bidders often hand-in their bids
or proposals on the date of submission and wait to attend the opening.
OBJECTIVES

• To understand the tenders structure of the company.

• To understand how the tenders will affect performance and profit of the
company.
• To evaluate each tender of the company and suggest them what are the
changes they have to implement.

SCOPE OF THE STUDY

Tenders play a crucial role in the overall functioning of a company, influencing
its performance and financial outcomes. The expenses associated with tenders
significantly impact budgeting programs. Managers can effectively set product
prices by comprehending the tenders associated with each product. Swift tender
processes contribute to enhanced performance and increased profits. This study
offers insights that can assist managers in optimizing their tender structures.

• The study helps to identify and classify various tender overheads, which
will helps the management to fix the selling price of products effectively
and efficiently.
• The study cover the effect of tender techniques.
• Main areas of the study are labor, material, sales and fixed overheads

RESEARCH METHODOLOGY
This project adopts a descriptive research approach, primarily relying on data
sourced from secondary sources. The main focus is on analyzing each tender,
employing trend analysis for the report. Data is gathered through informal
interviews and direct observations, then analyzed and interpreted. The project
utilizes both primary and secondary data, with Charts, Tables, and Graphs
employed for analysis and interpretation.
SOURCE OF DATA

Primary data

Primary data refers to firsthand or fresh information directly obtained from

primary sources. In this case, the primary data was gathered through direct
interactions with the tender manager and other relevant executives at the
company's administrative office. The entire data collection process involved
consultations with staff members in the tender department of the organization.
Direct engagements with the manager, accountants, and other relevant staff
facilitated the acquisition of necessary data. Additionally, assistance was sought
from management in other departments, along with guidance from the internal
guide.

Secondary data

Secondary data refers to pre-existing information that has already been collected
and is sourced from existing records.

Data collected from secondary sources are.

• Website of the Company

• Magazines.

• Journals.

• Company’s tenders statement

LIMITATION OF THE STUDY

• Due to the limited information provided by the Biocon, conducting a

thorough observation was not feasible.
 • Because of the consistency in the information provided by the company,
the study opted for a straightforward variance analysis, despite the
availability of various tender techniques.
• Difficulty arises in accessing vital aspects of the company records due to
corporate confidentiality.
• This study lacks clarity in demonstrating how the company is navigating
through the expansive business landscape amidst a large number of
competitors.
• The entire reliance of this study is placed on the data provided in the annual
reports, recorded information, and all the audited statements related to
tender reports from the company.

CHAPTER SCHEME

Chapter 1: Introduction

This chapter includes Introduction, Industry profile, company profile, Promoters,

Vision, Mission, Manufacturing Quality Policy, Product profile, Areas of
operation, Infrastructure facility, Competitors’ information, SWOT Analysis,
Future growth and prospects and Financial statement.

Chapter 2: Conceptual background and Literature review

This chapter describes the Theoretical background of the study& Literature

review

Chapter 3: Research Design

This chapter includes Statements of problem, Need for the study, Objectives,
scope of the study, Research methodology, Limitation and Chapter scheme.
Chapter 4: Analysis and Interpretation

This chapter contains the cost sheet of the company and comparison of each cost
in different years.

Chapter 5: Findings, Suggestions and Conclusion

This chapter contains Findings, Suggestions and Conclusions

 CHAPTER-4
ANALYSIS AND INTERPRETATION
COST SHEET FOR THE YEAR 2021-22 & 2022- 23

PARTICULARS 2021- 22 2022- 23

Direct material 22,000 36,800

Direct labour 18,500 12,900

Direct expenses 3,500 6,400

PRIME COST 44,000 56,100

Manufacturing overhead 5,200 12,643

WORK COST 49,200 68,743

Administration overhead 4,600 9,000

COST OF PRODUCTION 53,800 77,743

Selling and distribution overhead 8,040 25,000

TOTAL COST 61,840 1,02,743

PROFIT 20,000 8,000

SALES 81,840 1,10,743

Chart showing cost sheet for the year 2021-22 & 2022- 23

2,00,000
1,80,000
1,60,000
1,40,000
1,20,000
1,00,000
80,000
60,000
40,000
20,000
0

2021- 22 2022- 23

Interpretation:

In the year 2021-22 & 2022-23 there is a changes in the total cost. But profits
increased in 2021- 22 compared to 2022-23 even though the net sale decreased in
2021-22. The main reason for increasing profit is that company could reduce the
total cost in 2021-22 that is 61,840 compared to 1,02,743 in 2022-23. That was a
great positive sign for the company.

Table showing % of increase/ decrease of direct material

Particulars Year Amount Percentage to

Base Year
Direct Material 2021-22 22,000 100%
2022-23 36, 800 167.27%
Analysis:

In the year 2021-22 direct material shows 100 % (as basic year) but in the year
2022-23 it is increase to 167.27%.

180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
22,000 36, 800
2021-22 2022-23
Direct Material

Interpretation:

From the above graph we can observe that the percentage of direct material in the
year 2021-22 is considered as 100% (as base year) then it has been increased to
167.27% in the year 2022-23.

So, we can observe that there is increased in direct material when compared to
the base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Direct Labour

Particulars Year Amount Percentage to

Base Year
Direct Labour 2021-22 18,500 100%
2022-23 12,900 69.72%
Analysis:

In the year 2021-22 direct labour shows 100 % (as basic year) but in the year
2022-23 it is decreased to 69.72%.

20,000

15,000

10,000

5,000

Amount

Percentage to Base Year

Direct Labour 2021-22 Direct Labour 2022-23

Interpretation:

From the above graph we can observe that the percentage of direct labour in the
year 2021-22 is considered as 100% (as base year) then it has been decreased to
69.72% in the year 2022-23.

So, we can observe that there is decreased in direct labour when compared to the
base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Direct Expenses

Particulars Year Amount Percentage to

Base Year
Direct Expenses 2021-22 3,500 100%
2022-23 6,400 182.85%
Analysis:

In the year 2021-22 direct expenses shows 100 % (as basic year) but in the year
2022-23 it is increased to 182.85%.

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
Amount Percentage to Base Year

Direct Expenses 2021-22 Direct Expenses 2022-23

Interpretation:

From the above graph we can observe that the percentage of direct expenses in
the year 2021-22 is considered as 100% (as base year) then it has been increased
to 182.85% in the year 2022-23.

So, we can observe that there is increase in direct expenses when compared to the
base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Prime cost

Particulars Year Amount Percentage to

Base Year
Prime cost 2021-22 44,000 100%
2022-23 56,100 127.5%
Analysis:

In the year 2021-22 prime cost shows 100 % (as basic year) but in the year 2022-
23 it is increased to 127.5%.

60,000

50,000

40,000

30,000

20,000

10,000

0
Amount Percentage to Base Year

Prime cost 2021-22 Prime cost 2022-23

Interpretation:

From the above graph we can observe that the percentage of prime cost in the
year 2021-22 is considered as 100% (as base year) then it has been increased to
127.5% in the year 2022-23.

So, we can observe that there is increase in prime cost when compared to the base
year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Manufacturing Overhead

Particulars Year Amount Percentage to

Base Year
Manufacturing 2021-22 5,200 100%
Overhead 2022-23 12,643 243.13%
Analysis:

In the year 2021-22 manufacturing overhead shows 100 % (as basic year) but in
the year 2022-23 it is increased to 243.13%.

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
Amount Percentage to Base Year

Manufacturing Overhead 2021-22 Manufacturing Overhead 2022-23

Interpretation:

From the above graph we can observe that the percentage of manufacturing
overhead in the year 2021-22 is considered as 100% (as base year) then it has
been increased to 243.13% in the year 2022-23.

So, we can observe that there is increase in manufacturing overhead when

compared to the base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Works cost

Particulars Year Amount Percentage to

Base Year
Works cost 2021-22 49,200 100%
2022-23 68,743 139.72%
Analysis:

In the year 2021-22 work cost shows 100 % (as basic year) but in the year 2022-
23 it is increased to 139.72%.

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
Amount Percentage to Base Year

Works cost 2021-22 Works cost 2022-23

Interpretation:

From the above graph we can observe that the percentage of work cost in the year
2021-22 is considered as 100% (as base year) then it has been increased to
139.72% in the year 2022-23.

So, we can observe that there is increase in work cost when compared to the base
year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Administration Overhead

Particulars Year Amount Percentage to

Base Year
Administration 2021-22 4,600 100%
Overhead 2022-23 9,000 195.65%
Analysis:

In the year 2021-22 administration overhead shows 100 % (as basic year) but in
the year 2022-23 it is increased to 195.65%.

9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Amount Percentage to Base Year

Administration Overhead 2021-22 Administration Overhead 2022-23

Interpretation:

From the above graph we can observe that the percentage of administration
overhead in the year 2021-22 is considered as 100% (as base year) then it has
been increased to 195.65% in the year 2022-23.

So, we can observe that there is increase in administration overhead when

compared to the base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Cost of production

Particulars Year Amount Percentage to

Base Year
Cost of 2021-22 53,800 100%
production 2022-23 77,743 144.50%
Analysis:

In the year 2021-22 cost of production shows 100 % (as basic year) but in the
year 2022-23 it is increased to 144.50%.

80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Amount Percentage to Base Year

Cost of production 2021-22 Cost of production 2022-23

Interpretation:

From the above graph we can observe that the percentage of cost of production
in the year 2021-22 is considered as 100% (as base year) then it has been
increased to 144.50% in the year 2022-23.

So, we can observe that there is increase in cost of production when compared to
the base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Selling & distribution overhead

Particulars Year Amount Percentage to

Base Year
Selling & 2021-22 8,040 100%
distribution 2022-23 25,000 310.94%
overhead
Analysis:

In the year 2021-22 selling & distribution overhead shows 100 % (as basic year)
but in the year 2022-23 it is increased to 310.94%.

25,000

20,000

15,000

10,000

5,000

0
Amount Percentage to Base Year

Selling & distribution overhead 2021-22

Selling & distribution overhead 2022-23

Interpretation:

From the above graph we can observe that the percentage of selling & distribution
overhead in the year 2021-22 is considered as 100% (as base year) then it has
been increased to 310.94% in the year 2022-23.

So, we can observe that there is increase in selling & distribution overhead when
compared to the base year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Total cost

Particulars Year Amount Percentage to

Base Year
Total cost 2021-22 61,840 100%
2022-23 1,02,743 166.14%
Analysis:

In the year 2021-22 total cost shows 100 % (as basic year) but in the year 2022-
23 it is increased to 166.14%.

1,20,000

1,00,000

80,000

60,000

40,000

20,000

0
Amount Percentage to Base Year

Total cost 2021-22 Total cost 2022-23

Interpretation:

From the above graph we can observe that the percentage of total cost in the year
2021-22 is considered as 100% (as base year) then it has been increased to
166.14% in the year 2022-23.

So, we can observe that there is increase in total cost when compared to the base
year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Profit

Particulars Year Amount Percentage to

Base Year
Profit 2021-22 20,000 100%
2022-23 8,000 40%
Analysis:

In the year 2021-22 profit shows 100 % (as basic year) but in the year 2022-23
it is decreased to 40%.

20,000

15,000

10,000

5,000

Amount

Percentage to Base Year

Profit 2021-22 Profit 2022-23

Interpretation:

From the above graph we can observe that the percentage of profit in the year
2021-22 is considered as 100% (as base year) then it has been decreased to 40%
in the year 2022-23.

So, we can observe that there is decreased in profit when compared to the base
year 2021-22 in the 2022-23.

Table showing % of increase/ decrease of Sales

Particulars Year Amount Percentage to

Base Year
Sales 2021-22 81,840 100%
2022-23 1,10,743 135.31%
Analysis:

In the year 2021-22 sales shows 100 % (as basic year) but in the year 2022-23 it
is increased to 135.31%.

1,20,000

1,00,000

80,000

60,000

40,000

20,000

0
Amount Percentage to Base Year

Sales 2021-22 Sales 2022-23

Interpretation:

From the above graph we can observe that the percentage of sales in the year
2021-22 is considered as 100% (as base year) then it has been increased to
135.31% in the year 2022-23.

So, we can observe that there is increase in sales when compared to the base year
2021-22 in the 2022-23.
 CHAPTER-5
SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUSION

FINDINGS
In my study of Tenders at Biocon, I came to find the following information.

• Profit of Biocon ltd was increasing continuously but in 2022-23 the profit
reduced.
• The labour cost of the company is reduced in 2022-23 compared to 2021-
22.
• The net sale of the company increased during the periods 2022-23.
• The direct materials has increased in the year 2022-23 compared to 2021-
22.
• The cost of manufacturing overhead is decreased continuously till 2022-
23. In Selling and distribution overhead there are some fluctuations over
years when compared to the base year 2022-23.
• There is fluctuation in total cost when compare to the base year 2022-23.
• Prime cost is increasing from the year 2021-22.
• Cost of production has increased in the year 2021-22 and 2022-23.

SUGGESTIONS
From Research and Study I submit the following Suggestions.

• Biocon Ltd should strive to secure additional orders to facilitate bulk

production and thereby alleviate tender delays.
 • Always opt for high-quality raw materials to attract a larger customer base
and expand market presence.
• Procure raw materials at a reasonable cost to effectively manage expenses.
• Embrace advanced technology to enhance product quality and operational
efficiency.
• Biocon Ltd is advised to take measures to streamline tender solutions,
reducing overall product costs and prices.
• Effectively utilize all available resources to meet company targets.
• Implement different cost reduction methods and techniques to address
current financial needs.
• Explore opportunities to reduce selling and distribution costs, considering
market demand, competitor strategies, and customer preferences.
• Prioritize machine power over manpower for faster processes, decreasing
training costs. Invest the saved funds in promotional and advertising
programs to boost sales.

CONCLUSION
Biocon Ltd specializes in manufacturing various power equipment and primarily
serves the Karnataka region. The company has implemented robust quality
checking instruments for inspecting individual products. It offers its products at
a reasonable price in a market where industries face intense competition. Biocon
Ltd stands out by manufacturing and selling products more economically.

Considering the current market dynamics, it is imperative for the company to take
effective measures to expedite and enhance tender processes. Regular and
thorough observation and review of tenders are crucial. Ignoring cost and tender
considerations would be detrimental to achieving strong sales and profits. To
maximize profits, the company must minimize costs wherever possible.
Efficient resource utilization is essential for expediting tenders. The management
should focus on increasing capacity utilization to cover all cash expenses,
preventing a rise in production costs. Prioritizing machine power over manpower
can accelerate processes, leading to reduced training costs for workers. This cost-
saving can be redirected towards implementing advertising programs to boost
sales.

Allocating sufficient funds annually for repairs and maintenance is essential.

Additionally, achieving fuller utilization of installed capacity and implementing
improved inventory policies can help reduce inventory carrying costs. In
conclusion, the company should strive to increase productivity and reduce costs
through proactive efforts.

BIBLIOGRAPHY
• Kalegaonkar, A., Locke, R. and Lehrich, J. (2008), Biocon India Group,
Bangalore.
• AT Kearney (2012), ‘‘Foreign Direct Investment (FDI) Confidence
Index’’, available at: www.atkearney.
com/index.php/Publications/foreign-direct-investmentconfidence-
index.html (accessed May 29, 2012).
• Capitaline Databases (2012), available at:
http://capitaline.com/user/framepage.asp?id¼1 (accessed May 29, 2012).
• Biocon – Investors – Press (2012), available at:
www.biocon.com/biocon_inv_press_releases_05apr10. asp (accessed
May 29, 2012).
• Hindu Business Line (2006), ‘‘Biocon to acquire IP assets of Nobex
Corp’’, The Hindu Business Line, available at:
www.thehindubusinessline.in/2006/03/29/stories/2006032901930200.htm
(accessed May 29, 2012).
 • Outlook India (2012), available at:
http://news.outlookindia.com/printitem.aspx?546317 (accessed May 29,
2012).
• Biocon (2012), available at: http://biocon.com/ (accessed May 29, 2012).

Websites

• https://www.wikipedia.org/