RANBAXY

"Trusted Medicines for Better Lives,"

Presented By
Deepak Kumar
 History of Ranbaxy
 Ranbaxy was started by Ranbir Singh and Gurbax Singh in
1937 as a distributor for a Japanese company Shionogi.

 The name Ranbaxy is a portmanteau word from the names

of its first owners Ranbir Singh and Gurbax Singh.

 Mohan Singh bought the company in 1952 from his

cousins Ranbir Singh and Gurbax Singh.

 Bhai Mohan Singh's son Parvinder Singh joined the

company in 1967, the company saw a significant
transformation in its business and scale.

 Malvinder Mohan Singh and Shivinder Mohan Singh sold

the company to the Japanese company DaiichimSankyo in
June 2008
 Acquisition

On June 11 2008, Daiichi-Sankyo acquired a

34.8% stake in Ranbaxy for a value $2.4 billion.
 November 2008, Daiichi-Sankyo completed the
takeover of the company from the founding
Singh family in a deal worth $4.6 billion by
acquiring a 63.92% stake in Ranbaxy.
The addition of Ranbaxy Laboratories extends
Daiichi-Sankyo's operations - already
comprising businesses in 21 countries.
For Ranbaxy, the deal frees up its debt and
imparts more flexibility into its growth plans.
The combined company is worth about $30
billion.
• Order delivery Lead Time
• Supply Chain Responsiveness
• Delivery Reliability
• Supply Chain Performance Measures

• Linking Supply Chain & Business Performance

• Enhancing Supply Chain Performance
•. The Distribution chain
•India is a geographically diverse country with extreme climates that make distribution a critical function.
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. In India, most brands have
generic versions of drugs and retailers can usually obtain higher margins with generics than for branded
products. To reduce risks of substitution, innovator companies must make sure their products are made
available to the stockist and retail shops.
•Drug distribution in India has witnessed a paradigm shift. Before 1990, pharmaceutical companies used a
different distribution system, in which they established their own depots and warehouses that now have
been replaced by clearing and forwarding agents (CFAs). These organizations are primarily responsible for
maintaining storage (stock) of the company’s products and forwarding SKUs to the stockist on request. Most
companies keep 1–3 CFAs in each Indian state. On an average, a company may work with a total of 25–35
CFAs. Unlike a CFA that can handle the stock of one company, a stockist (distributor) can simultaneously
handle more than one company (usually, 5–15 depending on the city area), and may go up to even 30–50
different manufacturers. The stockist, in turn, after 30–45 days (a typical credit or time limit) pays for the
products directly in the name of the pharmaceutical company. The CFAs are paid by the company yearly,
once or twice, on a basis of the percentage of total turnover of products.
•Langer
•The figure below shows how a product passes through the company-owned central warehouse, which
supplies it to the CFA or super stockist. From the CFA the stocks are supplied either to the stockist, sub
stockist, or hospitals. The retail pharmacy obtains products from the stockist or sub-stockist through whom
it finally reaches the consumers (patients). Certain small manufacturers directly supply the drugs to the
super stockist.
 Distribution Network of Ranbaxy

Manufacturer

Central Warehouse

Super Stockist

Stockist Sub-Stockist Hospital

Retail Shop
 Logistics/Supply Chain Network

Focus on attention on logistic which differentiate Ranbaxy

over competitors.
Supply Chain Process