CHAPTER 1 INDUSTRY PROFILE: ORIGIN OF PHARMACEUTICAL: The earliest drugstores date back to the middle Ages. The first known drugstore was opened by Arabian pharmacists in Baghdad in 754,and many more soon began operating throughout the medieval Islamic world and eventually medieval Europe. By the 19th century, many of the drugstores in Europe and North America had eventually developed into larger pharmaceutical companies. Most of today's major pharmaceutical companies theyre founded in the late 19th and early 20th centuries. Key discoveries of the 1920s and 1930s, such as insulin and penicillin, became mass- manufactured and distributed. Switzerland, Germany and Italy had particularly strong industries, with the UK, US, Belgium and the Netherlands following suit. Legislation was enacted to test and approve drugs and to require appropriate labeling. Prescription and non-prescription drugs became legally distinguished from one another as the pharmaceutical industry matured. The industry got underway in earnest from the 1950s, due to the development of systematic scientific approaches, understanding of human biology (including DNA) and sophisticated manufacturing techniques. The industry remained relatively small scale until the 1970s when it began to expand at a greater rate. Legislation allowing for strong patents, to cover both the process of manufacture and the specific products, came in to force in most countries. By the mid-1980s, small biotechnology firms theyre struggling for survival, which led to the formation of mutually beneficial partnerships with large pharmaceutical companies and a host of corporate buyouts of the smaller firms. Pharmaceutical manufacturing became concentrated, with a few large companies holding a dominant position throughout the world and with a few companies producing medicines within each country. The pharmaceutical industry entered the 1980s pressured by economics and a host of new regulations, both safety and environmental, but also transformed by new DNA chemistries and
Transcript
CHAPTER 1
INDUSTRY PROFILE:
ORIGIN OF PHARMACEUTICAL:
The earliest drugstores date back to the middle Ages. The first known drugstore was opened
by Arabian pharmacists in Baghdad in 754,and many more soon began operating throughout
the medieval Islamic world and eventually medieval Europe. By the 19th century, many of the
drugstores in Europe and North America had eventually developed into larger pharmaceutical
companies.
Most of today's major pharmaceutical companies theyre founded in the late 19th and early 20th
centuries. Key discoveries of the 1920s and 1930s, such as insulin and penicillin, became mass-
manufactured and distributed. Switzerland, Germany and Italy had particularly strong industries,
with the UK, US, Belgium and the Netherlands following suit.
Legislation was enacted to test and approve drugs and to require appropriate labeling.
Prescription and non-prescription drugs became legally distinguished from one another as the
pharmaceutical industry matured. The industry got underway in earnest from the 1950s, due to
the development of systematic scientific approaches, understanding of human biology
(including DNA) and sophisticated manufacturing techniques.
The industry remained relatively small scale until the 1970s when it began to expand at a greater
rate. Legislation allowing for strong patents, to cover both the process of manufacture and the
specific products, came in to force in most countries. By the mid-1980s, small biotechnology
firms theyre struggling for survival, which led to the formation of mutually beneficial
partnerships with large pharmaceutical companies and a host of corporate buyouts of the smaller
firms. Pharmaceutical manufacturing became concentrated, with a few large companies holding
a dominant position throughout the world and with a few companies producing medicines within
each country.
The pharmaceutical industry entered the 1980s pressured by economics and a host of new
regulations, both safety and environmental, but also transformed by new DNA chemistries and
new technologies for analysis and computation. Drugs for heart disease and for AIDS theyre a
feature of the 1980s, involving challenges to regulatory bodies and a faster approval process.
Marketing changed dramatically in the 1990s, partly because of a new consumerism. The
Internet made possible the direct purchase of medicines by drug consumers and of raw materials
by drug producers, transforming the nature of business. In the US, Direct-to-consumer
advertising proliferated on radio and TV because of new FDA regulations in 1997 that
liberalized requirements for the presentation of risks. The new antidepressants, the SSRIs,
notably Fluoxetine (Prozac), rapidly became bestsellers and marketed for additional disorders.
Drug development progressed from a hit-and-miss approach to rational drug discovery in both
laboratory design and natural-product surveys. Demand for nutritional supplements and so-called
alternative medicines created new opportunities and increased competition in the industry.
Controversies emerged around adverse effects, notably regarding Vioxx in the US, and
marketing tactics. Pharmaceutical companies became increasingly accused of disease
mongering or over-medicalizing personal or social problems.
PHARMACEAUTICAL IN INDIA:
The Indian pharmaceutical industry is the world's second-largest by volume and is likely to
lead the manufacturing sector of India. India's bio-tech industry clocked a 17 percent growth
with revenues of Rs.137 billion ($3 billion) in the 2009-10 financial year over the previous
fiscal. Bio-pharma was the biggest contributor generating 60 percent of the industry's growth at
Rs.8,829 crore, follotheyd by bio-services at Rs.2,639 crore and bio-agri at Rs.1,936 crore. The
first pharmaceutical company are Bengal Chemicals and Pharmaceutical Works, which still
exists today as one of 5 government-owned drug manufacturers, appeared in Calcutta in 1903.
For the next 60 years, most of the drugs in India theyre imported by multinationals either in fully
formulated or bulk form. The government started to encourage the growth of drug manufacturing
by Indian companies in the early 1960s, and with the Patents, enabled the industry to become
what it is today. This patent act removed composition patents from food and drugs, and though it
kept process patents, these theyre shortened to a period of five to seven years. The lack of patent
protection made the Indian market undesirable to the multinational companies that had
dominated the market, and while they streamed out, Indian companies started to take their
places. They carved a niche in both the Indian and world markets with their expertise in reverse-
engineering new processes for manufacturing drugs at low costs. Although some of the larger
companies have taken baby steps towards drug innovation, the industry as a whole has been
7 Sanofi-Aventis France 35,645 5,565 5,033 100,735
8Hoffmann–La Roche
Switzerland 33,547 5,258 7,318 100,289
9 AstraZenecaUnited Kingdom
26,475 3,902 6,063 50,000+
10Abbott Laboratories
USA 22,476 2,255 1,717 66,800
11Bristol-Myers Squibb
USA 17,914 3,067 1,585 60,000
12Eli Lilly and Company
USA 15,691 3,129 2,663 50,060
13 Amgen USA 14,268 3,366 2,950 48,000
14Boehringer Ingelheim
Germany 13,284 1,977 2,163 43,000
15 Schering-Plough USA 10,594 2,188 1,057 41,500
16Baxter International
USA 10,378 614 1,397 38,428
17Takeda Pharmaceutical Co.
Japan 10,284 1,620 2,870 15,000
18 Genentech USA 9,284 1,773 2,113 33,500
19Procter & Gamble
USA 8,964 n/a 10,340 29,258
SUM 497,519 70,843 110,077 1,342,700
AVERAGE 24876 3542 5504 67135
Fig 1.1 Market Revenue Status
RESEARCH AND DEVELOPMENT:
Both the Indian central and state governments have recognized R&D as an important driver in
the growth of their pharma businesses and conferred tax deductions for expenses related to
research and development. They have granted other concessions as theyll, such as reduced
interest rates for export financing and a cut in the number of drugs under price control.
Government support is not the only thing in Indian pharma’s favor, though; companies also have
access to a highly developed IT industry that can partner with them in new molecule discovery.
Fig 1.2
CHAPTER 2
COMPANY PROFILE:
Arvind Remedies Ltd forayed into the world of quality healthcare in 1988 under the dynamic and
ambitious stewardship of Dr.Arvind Shah, Managing Director and CEO.
Incorporated as a
Private Limited
Company, they
set out to
manufacture and
market world-
class allopathic
and ayurvedic
pharmaceutical
products within
and outside
India, thus
beginning to
realize the vision
of bringing high
quality
healthcare to the
common man.
Since then, they
have come a
long way.
Having grown
notably in terms
of production
capacity, product
categories,
market share,
advancements in
They entered the field at a time when the Indian Pharmaceutical Industry was itself at the
threshold of a new era, where product patenting and holistic healthcare they were gaining
prominence. Our core strength aptly lay in the ability to deliver both western and Eastern
varieties of quality treatments. Significant contributions have been made to the fields of
Cardiology, Dermatology, Nephrology and Diabetes among others. Having established our credibility as a company committed to providing world-class healthcare
products, they went Public in April 1996 getting listed in Bombay Stock Exchange & National
Stock Exchange in Mumbai, Ahmedabad and Chennai Stock Exchanges.
The Public Issue comprised of 30 Lakhs Equity Shares priced at Rs.10/- each at a premium of
Rs.20/- per share.
In the year 1995 the company was converted to limited company. In January 2001, the Company followed this up with a Rights Issue of 14.86 Lakhs Equity
Shares of Rs.10/- each for cash at a premium of Rs.90/- per share. They are a Profit-making, Dividend-paying Company with an Equity Share Capital of Rs.26
crores. In the Year 2002, each of the shares of Rs.10 were split into Rs.1 share and as on date
there are 26, 00, 50, 000 fully paid shares. In the Year 2002 the company issued bonus shares at the ratio of 5 shares for equal 2 shares held
and 1857,50,000 equity shares were issued at Rs.1 Each Last fiscal, they registered an Annual Turnover of Rs.309 crores Arvind Remedies' Indian client
portfolio includes prestigious Defence Establishments, ESI, CGHS, Central and State
Government Institutions, Public Sector Companies, P&T, Railways and World Bank Projects.
VISION:
To become one among the 50 large Indian companies in the next 5 years
ArvindRemedies Limited to be a Global Player in the Pharmaceutical Industry by Manufacturing
and Marketing Quality Medicinal Products both in Allopathy and Ayurveda.
MISSION:
To reinforce the long-held company principles that underscore our relationships with customers,
partners and employees, to produce high quality medicines with a focus to achieve customer
satisfaction
QUALITY:
At Arvind Remedies, world-class, quality healthcare comes first. An uncompromising attitude
towards quality, customer satisfaction and international standards form the
core of their existence and the very benchmarks against which their
accomplishments are measured
They have in house Research and Development system to check adherence
highest quality and to develop innovative product at economical prices.
LOCATION:
The company is located in the area of 1,65,528 square feet (3.8 acres) of land allotted at plot No.G28 & G29, SIPCOT Industrial Park, Irungattukottai, Kanchipuram District, Tamil Nadu which is on the Chennai-Bangalore Highway, 34 km from Chennai. The site is accessible from existing Chennai Airport and Sriperumbudur Airport (Proposed). It has been constructed in such a way for free ventilation adequate lighting and proper workspace. Their Registered Office is Poonamallee High Road.
AWARDS AND RECOGINISATION:
Rashtriya Udyog Award was presented to Dr.B.Arvind Shah, MD, and C.E.O by Shri.Vasant Sathe at New Delhi on the occasion of India Republic Day 20 January 2004 for outstanding service, achievements and contribution to the nation.
Hind Rattan Award presented to Dr.B.Arvind Shah, MD, and C.E.O by the International Economic Development Forum, at New Delhi on Jan25, 2004 for outstanding service, achievments and contribution to the nation
2.1 PRODUCT PROFILE:
The company produces above 1000 of drugs. They fall under two category.
• Allopathic Products
• Ayurvedic Products
Some of their products manufactured by them are:
ALLOPATHIC PRODUCTS:
1. Ethical Products:
• Anti-infectives
• Antioxidants
• Anti Spasmodic
•
2. Branded Generic Product
• Paracetamol
• Alben-400
3. Generic Product
• Anti Asthamatic
• Vitamin and Iron Supplements
AYURVEDIC PRODUCTS:
1. Branded Products
• Artin Oil
• Hygenex
• Pankare
• Soulfat
• Sorexil
• Utritone
2. Ethical Products
• Nimser
• Yorker
• Carolox
SOLUFAT:
CAROLOX :
It is an anti-infective drug used for Tonsilitis, pharyngitis, laryngitis, sinusitis, skin and soft tissue infection.There are 10x10 tablets.
This is used for gastro intestinal disturbances, Flatulences.There are 60 tablets in a bottle.
SINOPHEN:
It is a Cough expectorant / Nasal decongestant used for Common cold with body pain, nasal congestion and sinusitis. Quantity is 60ml liquid.
MEGAFIT-OD:
SERATOMA FORTE:
It is a Vitamin tablet used for all type of Neuropathies, There are 10x10 tablets in a pack
Used for Respiratory tract infection, orthopaedic disorder associated with inflammation and oedema, gynecological infections, ENT infection. Once pack contains 5x10 each tablet contains 100mg Serratiopeptidase
CALDLITE:
LUNKCLEAR-LM KID:
ARVICAL:
Used for Allergic Dermatitis, Psoriasis, Eczema, Dry skin, Systemic itches lies in jaundice. Each bottle contains 100ml.
Used for Seasonal and Perinnial allergic rhinitis and Asthma. Each pack contains 10X10 tablets.
NEW PRODUCTS:
• Vitoxid-forte Arl-AZI
• Lunkclear LM-Kid
• Megafit-OD
2.2 ORGANIZATIONAL CHART:
Hypocalcaemia Calcium and vitamin D deficiency Calcium deficiency during pregnancy and lactation Rickets Prevention of osteoporosis in postmenopausal women Chronic renal failure 10x10 Tablets are there in each pack.
MANAGING DIRECTOR
B Arvind Shah
WHOLE TIME DIRECTOR
Chandra Ravindran
SALES DIRECTOR
OPERATIONDIRECTOR
FINANCE DIRECTOR
HR DIRECTOR
ACCOUNTS
OPERATIONDIRECTOR
Fig 2.1 Organization Chart
SALES MARKETING
PRODUCTION R&D
PERSONNEL
CHAPTER 3
PRODUCTION DEPARTMENT:
They have two manufacturing units with a good infrastructure and proper ventilation.
Manufacturing Unit-1:
Spread across
40,000 Sq.ft. of own
land on which the
built area is 48,000
sq.ft., Arvind
Remedies Ltd's
infrastructure and
facilities are among
the best and most
modern in the world.
Constructed as per
CGMP norms.
ARL's state-of-the-
art Manufacturing
facility and
sophisticated
Research &
Development Lab,
located in the
SIDCO Industrial
area at Kakkalur, 45
Kms from Chennai,
Manufacturing Unit 2:
Our unit 2 is located in the area of 1,65,528 square feet (3.8 acres) of land allotted at plot
No.G28 & G29, SIPCOT Industrial Park, Irungattukottai, Kanchipuram District, Tamil Nadu
which is on the Chennai-Bangalore Highway, 34 km from Chennai. The site is accessible from
existing Chennai Airport and Sriperumbudur Airport (Proposed). The estimated cost of project is
to the tune of $ 55 Million (Rs.250 Crores) and it will provide employment opportunity to
around 500 persons The project is being implemented to manufacture principally, the injectables
(vials and ampoules) softgel, tablets, capsules and ointments all with aim of USFDA, TGA,
MHRA, EMEA and cGMP certification.
SALIENT FEATURES OF THIS UNIT
Dosage FormAnnual Capacity
Tablets1.8 billion
Capsules450 million
Liquids15 million
Ointments30 million
InjectablesAmpoulesVials15 million30 million
Fig 3.1 Salient Features
This Unit will have the approval of:1. USFDA - USA
2. MHRA - UK
3. TGA - Australia
4. EMEA - Europe
5. cGMP - WHO
6. MCC - South Africa
7. ANVISA – Brazil
FACTORY LOCATION ADVANTAGES ARE
• Proximity to Chennai renders easy availability of qualified and skilled manpower,
raw materials, packaging materials, consumables and support services like
transportation, repair and other facilities
• Existing production facilities of the company at Kakkalur is just 25 km from the unit
• Power infrastructure is well developed within the industrial park
• Adequate supply of water by SIPCOT
• Well developed sewage and effluent drainage exists in the industrial park
• Good Environmental Structure given by SIPCOT for Manufacturing the
Product.
MANUFACTURING PROCESS:
Fig 3.2 Process Flow
RAW MATERIAL
PACKING DRUGS
DISPATCH
MANUFACTURING PROCESS
WAREHOUSING
a) RAW MATERIAL:
The raw materials are purchased from the supplier are stored in a raw materials
stores.They use FIFO method for raw materials.
The raw materials used in production process are:
• Antibiotics & Anti Bacterial
• Anti Tuberclousis Drug
• Antimicrobial Preparation.
MANUFACTURING PROCESS:
The use different manufacturing process for each drug.They use different temperature
for different drugs.
PACKAGING:
The manufactured drugs are then packed and sent to warehouse.The packet contains the expire
and manufacture date of the drug.It also contains the indgredints used and the dosage and other
precaution details.
WAREHOUSING:
The drugs are stored in a separate warehouse under a certain temperature. The warehouse is well
maintained. The drugs are properly stored to avoid obsolesce.
DISPATCH:
The drugs are then dispatched to the customers through the distribution channel which may be
roadways, airways or railways.
QUALITY ASSURANCE:
ARVIND REMEDIES LIMITED PROVIDES ANALYTICAL SERVICE OF QUALITY
CONTROL DEPARTMENT.
Arvind remedies provides Analytical and Microbiological services for the quality control of
pharmaceutical expertise for Raw materials, APIs, Inprocess, Finished products and packaging
material.
Well-equiped state-of-the art laboratories offer comprehensive testing services according to the
pharmacopeia (I.P , B.P , U.S.P , J.P ,E.P, etc) and customer specifications. Quality control
department operate according to highest quality standards(cGMP, cGLP ,ISO-9001-2008) and
have been inspected by the Regulatory authorities.
Quality control department activities are managed through four sections:
• Instrumental analysis and Finished products.
• Wet analysis Laboratory .
• Microbiological Testing Laboratory.
• Packaging material Testing Laboratory.
CHAPTER 4
HUMAN RESOURCE AND PERSONNEL DEPARTMENT:
ARVIND REMEDIES recognizes that the achievement of the organization depends on the
quality, effort and co-operation of its employees. They have a responsibility towards their
employees to provide a high standard of employment and working conditions, to treat employees
fairly and equitably and to provide them with opportunities to help them develop and achieve a
sense of satisfaction from their work.
At a corporate level this department is responsible for the compilation and interpretation of
policy in relation to the recruitment, retention and development of company-wide human
resources, in addition to a number of people-related administrative activities.
GOAL:
The Human Resources function is an integral partner in supporting the achievement of strategic
business objective of ARVIND REMEDIES.
The goal is to establish the optimal work environment for obtaining sustained high productivity,
continuous improvement, organizational renewal and exceptional customer service. It will act as
a catalyst enabling all employees to contribute at optimum levels towards the success of the
ARVIND REMEDIES.
The HR takes a leadership role in providing and facilitating HR services that satisfy business
needs and employee development. The HR motivates the employees and makes sure that his
skills are utilized well . He also finds out the business needs and fulfills it.
HR INITIATIVES
Award Recognition Program:
Award program created to recognize individuals and teams for significant contribution to
business. Rewarding & celebrating significant and creative achievements by people is one of the
leadership practices and also places value on people working individually and as teams to be
motivated to succeed- working together in partnership in pursuit of the ARVIND REMEDIES
mission and core values of ARVIND REMEDIES Vision. Award program designed to give ARL
the opportunity to reward their people for exceptional contribution that makes an impact on
the organization.
Compensation & benefit:
As per the Compensation & Benefits Policy of the company, benchmarking exercise shall be
undertaken once in three years and further revisions shall be decided. The compensations and
benefits are then planned.
Performance appraisal:
Performance appraisal refers to rewarding the employee for his performance. Performance
appraisal helps the company to find the faults of employee and helps to train them and it also
motivates employees. Performance appraisal will take place for every employee. Annual
increments will be granted in accordance with the Compensation and Benefits Policy of the
Company based on performance appraisal rating. On completion of performance appraisal
employees with exceptionally high performance will be rewarded by Individual Performance
Incentive decided by the Company from time to time. Based on Company's overall performance
in terms of the business plan and profitability, Company performance incentive will be
determined based on an approved formula and paid to all employees
Key Result Areas:
At the beginning of the financial year every employee will be required to finalize their KRA's
(Key Result Areas) for the year as per the business/functional plan. Review of accomplishments
will take place at the time of annual performance appraisal.
Training and development:
To enable employees to upgrade their skills & enhance their performance training and
development initiatives will be taken up, training needs being identified through the performance
appraisal of individual employee.
Employee Opinion Survey:
Employee opinion survey is conducted in the Company to get to know the perception of the
employees and to facilitate employee participation
RECRUITEMENT:
They follow both internal recruitment and external recruitment .
INTERNAL RECRUITEMENT:
An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of
a company or organization and typically works in the human resources (HR) department, which
in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be
multi-functional, serving in an HR generalist role -- (negotiating, hiring, firing, conducting
exit interviews; as well as managing employee disputes, contracts, benefits, recruitment, etc.) --
or in a specific role focusing all their time on recruiting. They can be permanent employees or
hired as contractors for this purpose. Contract recruiters tend to move around between multiple
companies, working at each one for a short stint as needed for specific hiring purposes. The
responsibility is to filter candidates as per the requirements of each client.
EXTERNAL RECRUITEMENT:
This is done through external sources like advertisment, job consultancy, walk-ins, employment
exchange, campus recruitement.
JOB CONSULTANCY:
Also known as employment agencies, recruitment agencies have historically had a physical
location. A candidate visits a local branch for a short interview and an assessment before being
taken onto the agency’s books. Recruitment consultants then work to match their pool of
candidates to their clients' open positions. Suitable candidates are short-listed and put forward for
an interview with potential employers on a contract or direct basis.
ADVERTISEMENT:
They advertise their job offers in newspaper . The job description is given and the qualification
required is also mentioned. The offers are also provided along with qualification required and
application forms so that candidates can easily apply online.
EMPLOYMENT EXCHANGE:
An employment exchange is an organization which matches employers to employees. In all
developed countries there is a publicly funded employment agency and multiple private
businesses which also act as employment agencies. Employment exchange may be both private
and public . An unemployed person will reserve himself in the employment exchange he gives
his education qualification details and other details based on which the employment exchange
will suggest him to an employer who is seeking for an employee with these qualifications.
WALK-INS:
Walk in the source of recruiting greatest number of applicants when local unemployment is
high and demand for labour is low.In this method, individuals become applicants by walking into
organizations’s employement office.This is a common source for lower skilled,and local labour
market.
ONLINE APLICATION:
The company also gives details about the various openings in their organization in hteir company
website . The candidates can select from the postings available and fill then online application
form and send them to the company along with their Resume.
SELECTION:
They filter the candidates through various rounds and select the qualified candidates. They are
given training and they are placed permenantly in the company.
Fig 4.1: Selection Process
• Application Received: The application is received from the candidate and the structured
questionnaire is prepared based on the application. The unfit candidates are filtered.
• Test: The candidates abilities, skills and technical knowledge are tested using various
tests like Aptitude test, Employment test, Intelligence test, Technical skill test
• Interview: The candidates who are selected are interviewed by the HR and their
technical knowledge is checked.
• Selection: The candidates who are qualified are selected for the job and are given the
offer letter.
• Physical Examination : The selected candidates are asked to submit their medical
certificate before reporting for their job.
Application Recieved
Test Selection Interview
Training Physical Examination
Placement
• Training: The candidates are given initial training for their job. The training period is for
3months.
• Placement: Finally the candidates are placed in the company and they become a part of
the human resource.
EMPLOYEE BENEFITS:
(i) Long Term Benefits
The Company has a defined benefit plan for Post-Employment benefit in the form
of Gratuity for all employes, which is administered through Life Insurance
Corporation (LIC). Liability for above defined benefit plan is provided on the
basis of actuarial valuation as at the Balance Sheet date, carried out by LIC, The
actuarial, method used for measuring the liability is Projected Unit Credit method.
The fair value of the plan asset is reduced from the gross obligation to recoginize
the obligation on net basis. The amount as above and the actuarial gain/loss are
recognized in the Profit and Loss Account of the year.
Defined contribution plan are Provident fund scheme, Employee State Insurance
Scheme and Government administerd Pension Fund Scheme for the employees.
The company makes specific monthly contribution, which recognized in the P&L
A/c in the financial year to which they relate. The Company has no further
obligation beyong its monthly contributions.
(ii) SHORT TERM BENEFITS:
Employee benefits, such as salaries, wages, performance incentives, etc are recognized in
the Profit and Los Account of the year in which the related service is rendered.
Earned leave Encashment: Earned leave accrued during the year is available for
encashment as per the rules of the Company. The amount is paid and charged to the
Profit and Loss Account every year.
CHAPTER 5
MARKETING DEPARTMENT
Marketing is consider as the eyes and ears for the automobile industry which
helps in making close contacts with the business people. This unit consists of 5 people such as
marketing director, assistant manager, supervisor etc.The customers are get in contact through
reference groups and by through advertisements .
DISTRIBUTION
Distribution is of critical importance in the marketing.The automobile
products are distributed from the plant to the consumer through various stages and is explained
below.
Fig5.1 Distribution Channel
MANUFACTURING UNIT
In the manufacturing unit the products are manufactured through various
process such as grinding, smoothing, surfacing etc.The products are finished with high quality
according to the specifications. They have two manufacturing unit.
WARE HOUSE
The ware house is a place where the finished products are stored and kept
ready for the delivery of products. The aim of inventory management is to ensure enough supply
of all materials to the production unit.The materials in the similar size are aligned in one place in
order to make the packaging easy.
ROADWAYS
Ware house
Manufacturing unit
Roadways /Airways
Marketer /dealer
Arvind remedies use both rodways and airways as their channel of
distribution.Their distribution is not only in Asia but also includes overseas businesss .
EXPORT:
They have a state-of the art cGMP certified manufacturing facility at Tamil
Nadu, India and all their products are ISO 9001:2008 certified. Their products are exported to
Africa, Commonwealth of Independent States and Asia. They have commenced registration of
products in several countries including Malaysia, Tanzania, Sri Lanka, Ukraine, Nigeria and
Nepal. They plan to export to other countries as well in the near future with main focus in
entering the highly profitable and high growth US and European markets.
MARKETER:
Marketer or dealer is the one who sells goods or services to the market. The buy and sell the
goods for something in return.
ADVERTISEMENT
Advertisement plays a vital role in the marketing department Arvind
Remedies is undertaking two kind of advertisements such as indoor and direct methods.
Fig 6.1
INDOOR:
Advertising through the news paper are termed as indoor .they publish their
product details in the local newsletter.
OUTDOOR:
This advertisements includes circular letters ,price catalogue, magazines,
booklets etc… in this they provide detailed information about their product, educational values
and more personal touches of the product.
RESEARCH & DEVELOPMENTS:
Arvind Research Centre a sophisticated Research & Development Laboratory is well equipped
with the latest Technologies and Machineries. The committed R&D team of 10 Research
Scientists, Doctor, Ayurvedic specialists and chemists are the primary driving force in R &D
Efforts of the Company and the focus areas are Development f Drug Delivery Systems, The six
major areas where R&D are involved are
1. Formulation development in Ayurvedic
2. Allopathic Segment
3. Processs Development and Validation
4. Novel drugs delivery development
5. Nutraceuticals and
6. Analytical Development.
There is High tech research centre which focuses on the core areas of Diabetology,
Cardiology and Nephrology using age old Herbal Medicines, Nutraceuticals and anti infective
segment.
COMPETITION COMPARISON:
Last Price Market Cap.(Rs. cr.)
SalesTurnover
Net Profit Total Assets
Sun Pharma 523.70 54,233.43 1,933.12 1,383.80 5,747.47
Dr Reddys Labs 1,598.45 27,089.86 5,249.07 893.31 7,465.00
The finance department is the department or committee that manages the money in an
organization. It deals with the planning, organizing, and controlling the cash flow I the company.
It also involves preparing the financial statements for the organization to know where it stands.
Having established credibility as a company committed to providing world-class
healthcare products, they went Public in April 1996 getting listed in Bombay Stock Exchange &
National Stock Exchange in Mumbai, Ahmedabad and Chennai Stock Exchanges. The Public
Issue comprised of 30 Lakhs Equity Shares priced at Rs.10/- each at a premium of Rs.20/- per
share.
In January 2001, the Company followed this up with a Rights Issue of 14.86 Lakhs
Equity Shares of Rs.10/- each for cash at a premium of Rs.90/- per share.They are a Profit-
making, Dividend-paying Company with an Equity Share Capital of Rs.26 crores. In the Year
2002, each of the shares of Rs.10 were split into Rs.1 share and as on date there are 26, 00, 50,
000 fully paid shares.Their annual turnover is about 100 crores.
FUNCTIONS OF FINANCIAL DEPARTEMENT:
The major functions of financial department are:
1. To ensure a proper cash flow in all the other departments.
2. To maintain all the financial records n statements.
3. To conduct the internal audit and maintain the record.
4. Payroll preparation of employees.
5. Annual receipts and disbursements for the purpose of State Government.
6. Preparation and compilation of Budget estimates, revised estimates and supplementary
grants.
SHARE HOLDING PATTERN:
Arvind Remedies shares are compulsorily traded in the dematerialized form. Based on the
volume of NSE their current number of shares 5326568. The Face Value is Rs1/-.
The Shares of the company are listed in the two stock exchange house
• National Stock Exchange
• Bombay Stock Exchange
BANKERS:
They gets availability of finance and loan and other functions of the organizations like salary
payment to the employees’, loan to the employee welfare done in following banks
1.United Bank Of India.
2.Allahabad Bank Of India
3.State Bank Of India
4.IDBI Bank
5.Bank Of Rajasthan Ltd
SALARY:
The salary is paid to the employee during the first week of the month.The salaries range from
6000-500000. Salary is issued through the State Bank of India.The bank performs all the
transactions for the company
BONUS:
They give a bonus of 9% to every employee, incentive is also provided to the employee
depending upon the profit earned.
ACCOUNTS:
The accounts is maintained using hi-tech softwares like Tally 9. The auditing is done both
internally and externally. Auditing is the process of examination of the companies financial
statements in order to check their accuracy.
AUDIT COMMITTEE:
The audit committee consist of three non executive directors with two of them independent
directors. The Company Secretary is the secretary to the committee. The Statutatory Auditor,
Internal Auditor and Finance Controller are the invitees.
INTERNAL AUDIT:
The company has a proper adequate system of internal control. The internal auditor verifies the
record and submits the report to the management for onward submission to the Statutory
Auditor. The Audit Committee periodically reviews the internal control system.This is done once
in every 4months.
EXTERNAL AUDIT:
External Audit is done once in a year by the an authorized auditor. This audit is done to get a
clear idea about the financial status of the company. The company is given the notice regarding
the audit and also mentioned the record to be submitted.
REMUNERATION COMMITTEE:
(a) Composition:
As all decisions regarding remuneration of executive and non-executive directors are
taken by the entire board of directors of the company, no formal remuneration committee
has been constituted.
(b) Remuneration Policy:
Remuneration to managing/executive director is paid as per their terms of appointment
duly approved by the share holder. Commission to the director is paid as approved by the
board within the limits prescribed under the Companies Act 1956.
The details of remuneration paid to directors during the year 2009-10 is given below:
Fig 7.1 Remuneration Policy
FINANCIAL CALENDAR – (April 1 2011 to March 31 2011)
Reporting For Financial Results Due DateQuarter ending June 30, 2010 15th August 2010Quarter ending September 30, 2010 15th November 2010Quarter ending December 31, 2010 15th February, 2011Year ending March 31,2011 15th May 2011 (unaudited)
30th May 2011 (if audited)
Annual General Meeting On or Before 30th September 2011
Fig 7.2 Financial Calendar
BALANCE SHEET:
Balance Sheet of Arvind Remedies ------------------- in Rs. Cr. -------------------
Mar '10 Mar '09 Mar '08 Mar '07 Mar '06
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 26.01 26.01 26.01 26.01 26.01
Equity Share Capital 26.01 26.01 26.01 26.01 26.01
Share Application Money 37.41 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 31.23 22.11 18.82 15.21 12.35
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 94.65 48.12 44.83 41.22 38.36
Secured Loans 122.22 94.16 79.39 77.92 50.05
Unsecured Loans 0.77 9.56 7.00 7.00 6.83
Total Debt 122.99 103.72 86.39 84.92 56.88
Total Liabilities 217.64 151.84 131.22 126.14 95.24
