INTRODUCTION Financial management is concerned with the duties of the financial manager in the business firm.

Financial managers actively manage the financial affairs of any type of business, namely financial and non-financial, private and public, large and small, profit seeking and non-profit. They perform such varied tasks, as budgeting, financial forecasting, cash management, credit administration, investment analysis, funds management and inventory management. A term inventory refers to the stock file of the products a firm is offering for sale and the components that make up the product. In other words, inventory is composed of assets that will be showed in future in the normal course of business operations. The assets which firms store as inventory in anticipation of need are: • Raw materials • Work in process (Semi finished goods) • Finished goods

They are normally semi finished goods that are at various stages of production in a multi stage production process. A finished goods represented final or completed products which are available for sale. The inventory of such goods consists of items that have been produced but are yet to be sold.

like the management of other current assets. Rather. and purchasing are involved. inventory management.  The reorder point. It is in this context that the present chapter is devoted to the main elements of inventory management from the view point of financial managers. all the functional areas. as a current assets. Attention is given here to basic concepts relevant to the management and control of inventory.  The basic economic order quantity. differs form other current assets because only financial managers are not involved. and  Safety stocks. The job of the financial manger is to reconcile the conflicting view points of the various functional areas regarding the maximizing the owners wealth.Inventory. The objectives of inventory management are explained in some detail sections. Thus. should be related to the over all objective of the firm. production. . marketing. The views concerning the appropriate level of inventory would differ among the different functional areas. finance. The aspects covered are:  Determination of the type of control required. Section two is concerned with inventory management techniques.

requirements. • To keep surplus and obsolete items to minimum. It is essential that materials should be properly safeguarded and correctly accounted. protected from loss by fire and theft and handling time and cost are kept at a minimum. But a familiarity with them is of great help to the financial managers in planning and budgeting inventory NEED FOR THE STUDY: Materials are equivalent to cash and they make up an important of the total cost. storage. consumption and accounting.OBJECTIVES Scientific control of inventories should serve the following purpose: • • • To provide continuous flow of required materials. Proper control of material can make a substantial contribution to the efficiency of a business. parts and components To minimize investment in inventories keeping in view operating To provide for efficient store of materials so that inventories are for efficient and uninterrupted flow of production. The success of a business concern largely depends upon efficient purchasing. Inventory plays a vital role in the study of inventory management in bulk actives division of HETERO DRUGES LTD has been selected for the project . the inventory management techniques are a part of production management. As a matter of fact.

work in progress and finished goods for financial years. It provides an insight to the management of high value items and also brings attention of management towards the movement of Hetero drugs Ltd. Cyrix Laboratories. Hetero is a strong player in API and finished dosages and its manufacturing plants have U.. Gent Laboratories and also foreign subsidiaries such as Invade Inc. It was started by him with a vision to be recognized as an aggressive company that combines its strength of R&D and manufacturing with definite advantages in terms of cost and chemistry with a strong emphasis on Quality of the products. Hetero Research Foundation. COMPANY PROFILE  Hetero Drugs Limited is an Indian Pharmaceutical Company established in the year 1993. Food and Drug Administration approvals and World Health Organization approvals. in USA . Hetero Drugs Limited founded by Dr. Partha Saradhi Reddy PhD. LIMITATIONS  As it was year ending it was very difficult to interact with senior officials.SCOPE OF THE STUDY The study includes ABC analysis of Raw materials. Seemed Labs Limited.LIFO and ABC were studied.. B.S.  The study is limited to 45 days. It has marketing presence in over 100 countries.  Hetero Drugs is the parent company in the Hetero group of companies and other companies which are part of the group are Hetero Labs. FIFO.  Only few techniques like EOQ.  Hetero has revenues over $500 million and employs over 5000 people. a scientist and expert in chemistry.

Hetero has delivered 10 million doses of generic Tami flu to the Indian government in May 2009[3] and shipped about 80 million doses to over 60 countries. an Indian company in 2005 to make a generic version of its anti-flu treatment Tami flu for India and other countries.    and Richmond Labs in Argentina. They were awarded license to make generic oseltamivir.. The company says Hetero Drugs is among the first to demonstrate that it is technically capable of making a reliable generic version of Tami flu. Swiss firm Roche has licensed Hetero Drugs. Also now Hetero has its own retail chain of pharmacy outlets in India named as Hetero Pharmacy. . Tami flu. as the swine flu outbreak is spreading across the globe and various health organizations and government agencies are piling up stocks of oseltamivir as precautionary measure. Hetero is helping many countries including India by supplying the generic oseltamivir under its brand name flavor. Now oseltamivir (Tami flu) is also indicated for A [H1N1] virus also popularly known as swine flu.Hetero has received its second order from Indian government to supply another 10 million doses of generic Tami flu in August 2009. The decision could make it easier and cheaper for poorer nations to acquire stocks of the drug. In 2009. The drug is widely seen as the most promising treatment for combating any future pandemic of bird flu in humans. etc.

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