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MedCo PHARMACEUTICAL MANUFACTURING FIRM
MedCo PHARMACEUTICAL MANUFACTURING FIRM
SICOP INDUSTRIAL COMPLEX, GANGYAL , JAMMU (J&K)
Submitted by:RADHIKA GANDOTRA (45-MBA-15)SAHIL SHARMA (49-MBA-15)SATYA DEV SINGH (52-MBA-15)TUSHAR GUPTA (65-MBA-15)VIDHU ARORA (68-MBA-15)
Semester: 2Section: BSubject : Production and Operation Management Submitted to : Mrs. Farah Choudhary
Semester: 2Section: BSubject : Production and Operation Management Submitted to : Mrs. Farah Choudhary
WHY PHARMACEUTICAL ?WHY PHARMACEUTICAL ?
• The Pharmaceutical Industry is important because it’s a major source of medical innovation.
• The Pharmaceutical In India is the world third largest in terms of volume and stands 14th in terms of values.
• Huge progress is expected in the field of pharmaceuticals
• Now a days people are facing HEALTH ISSUES, so our motive is to produce High Quality Medicines at affordable prices.
BUSINESS DESCRIPTIONBUSINESS DESCRIPTION• An industrial unit in the small scale sector at SICOP, Industrial
Estate, Gangyal Jammu for the manufacturing of Oflox Tablet , Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.
• A partnership firm that will be registered under Indian Partnership Act, 1932
• The installed capacity of the unit is envisaged at 1800 MT of Oflox Tablet , Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.
• It is being proposed to manufacturer Quality products as per the specific standards which would be acceptable in the market.
• UNIT requires – necessary items of Plant and Machinery along with auxillary and testing equipments.
• The proposed unit would be registered with the office of General Manger, District Industries Centre, Jammu.
Vision & Mission of the CompanyVision & Mission of the Company
VISION MISSION
OBJECTIVESOBJECTIVES
To position our product in the mind of target audience as safe and economical.
BIO-DATA OF PROMOTERSBIO-DATA OF PROMOTERS
BRAND LOGO AND BRAND NAMEBRAND LOGO AND BRAND NAME
“LIVE LIFE WELL”
LOCATION JUSTIFICATIONLOCATION JUSTIFICATION
• While setting up of any industry, the prime factor to be taken into consideration isthe location of the unit.
• We have decided to locate our factory at SICOP industrial Complex, Gangyal Jammu where we can avail of the following locational advantages: Easy availability of both skilled and unskilled labour. Labour can be easily
available at apt rates in nearby villages. All the Infrastructural facilities of Power, Water, Banking, Transportation,
Warehousing, etc. can be easily available in SICOP because it is well developed industrial area.
The main factor of location is the market of the product. As Medicines are needed by hospitals and by many chemist shops
The cost estimates of land and site development are given in further slides.
Requirements for setting up a factory:Requirements for setting up a factory:
• Land: location of the industry will be 10 kms away
from Jammu city (Gangyal).• Clearance certificate
Sales tax/VAT, Central exciseElectricity clearanceCertificate of power availabilityConsent for operation from Pollution Control BoardWater supplyApproval of construction activity and building plan
PLANT LAYOUTPLANT LAYOUT
Water Storage
Area
Water Storage
Area
AREA IN (SQ. FT.)AREA IN (SQ. FT.)
SR.NO. PARTICULAR Sq. Ft.
TOTAL AREA 22400
1 OPEN AREA 7944
2 PRODUCTION DEPT 6480
3 GODOWN ( 2 ) 3312
4 QUALITY CONTROL AREA 1104
5 PACKING DEPT 960
6 MAINTENANCE AREA 680
7 WASTE MATERIAL STORE 300
8 PRODUCTION OFFICE 480
9 WATER SYSTEM AREA 564
10 REST ROOM 360
11 WASHROOM (2) 216
MATERIAL INPUTSMATERIAL INPUTS
MACHINES MACHINES
SUPPLIERSSUPPLIERSRaw materials suppliers:
– Ciprofloxacin : Aarti Durgs, Mumbai– Metaformine : Aarti Durgs, Mumbai– Glimapride : Kopran Pvt. Ltd.,Pondicherry– Alenof M/s Sundaram Agro Chemicals,Chennai – Metroniderote : Aarti Durgs, Mumbai
Machinery suppliers:– M/s. Shivalaya Machinery Mfg. Co. F/13, Indore– Kamdhenu Enterprises, Hyderabad,– Excellent Engineering Enterprises, Hyderabad– Dhopeshwar Precision Techniques, Hyderabad1. – M/s Quality Machine Tools, 108, Jawahar Marg, Indore – M/s Standard Machine & Tools Ltd., 43, Siyaganj, Indore – M/s Kudarati Machinery & Metals, 3/1, Sanyogitaganj, Indore
MANUFACTURING PROCESSMANUFACTURING PROCESS
Receiving way
CHECKLIST•DESCRIPTION•MATERIAL•PO NUMBER
If yes
One by One sample is being taken
APPROVED REJECTED UNDER TESTING
After it is Approved then the MATERIAL is passed through PASSBOX
In Production
WATER SYSTEM AREAWATER SYSTEM AREA
TANK CAPACITY 10000 litresTANK CAPACITY 10000 litres
1000 LITRES USED IN 1 DAY
COMPETITORSCOMPETITORS
• M/s. Meghana Healthcare,Jammu• Faroz Medical Pharmacy , Jammu
• Ipca Laboratories, Mumbai
• Aurobindo Pharma, Hyderabad.• Cadila Laboratories, Mumbai• ICSP Pharmacy, Jammu
MARKET POSITION
• Marketing is an important area of management in an industrial enterprise. The old concept of marketing was product oriented whereas the new concept is customer-oriented.
• It gives the company an upper hand in the competition . The gap between the demand and supply of manufacturing of medicines can be targeted by the use of efficient marketing strategies.
In what ways Marketing being done?In what ways Marketing being done?
• DIRECT MARKETING:- It is an form of advertising which allows business to communicate straight to the customer, with advertising techniques that can include cell phone text messaging, email, interactive customer. So we can use these techniques to increase our client base and make that strong.
• MARKETING CONSULTANTS:- By hiring a Marketing consultant we will improve our fuel filter business. It will also provide the expertise we need to identify the most productive marketing channels and will help in raising the brand profile within the industry.
• ONLINE MARKETING:- It is also called as Internet advertising. It is a form of marketing which uses the internet to deliver the promotional marketing messages to consumers. It is also a best form of marketing for fuel filters businesses.
PRODUCTION SCHEDULEPRODUCTION SCHEDULE
PRODUCTPRODUCTION
PERDAY
PRODUCTION PER
MONTH( 25 DAYS)
PRODUCTION PER
ANNUM
Tablets 40 BOXES (400 strips) 1000 BOXES 12000 BOXES
Capsules 40 BOXES (800 strips) 1000 BOXES 12000 BOXES
CERTIFICATESCERTIFICATES
Constitution of the uniti. Deed of partnership
ii. General Power of Attorney
iii. Name & Address of the Partners
Iv. PAN Card of the Partners
Registration of industrial unit Statement of Plant and Machinery Sanction letter from the financial Institution / Banks for term loan & working
capital Certificate from a Chartered Accountant regarding Sources of Finance First bill(s)/money receipt of purchase of raw material List of employees with name, address and designation
FINANCIAL ASPECTSFINANCIAL ASPECTS
LAND & BUILDINGLAND & BUILDING
Sr.no. Particular Sq. Ft. Lease rate (40 years)
Total
1 Total area 22400(4 kanal)
Rs. 5,00,000/ kanal 20,00,000
Total Construction Cost @ Rs 400 per sq ft• Constructed Area = ( 14456 x 400 ) = Rs. 57,82,400 open area cost @ Rs 200 per sq feet • Open Area = (7944 x 200) = Rs. 15,88,800
Total Fixed Cost of Land + Building= Rs. 93,71,200
SOURCES OF FINANCESOURCES OF FINANCE
Sr.no. Details Amount Interest Interest Per year
1 SBI bank loan 50,00,000 12.5% 6,25,000
2 Unsecured loan(5x 10,75,000)
53,75,000 10% 5,37,500
Total 1,03,75,000 11,62,500
MACHINERYMACHINERYSr.no Name of machines Quantity Amount
Rs.1 Cypter Machine 1 1000002 Vibrator 4 4000003 Cone Blender 4 1200004 Mass Mixture 2 3000005 Fluid Bed Dryer (FBD) 2 3000006 Coating Pan and coating gun 2 2000007 quality control instruments 2500008 Water Tanks 1 500000
9 Pulveriser 1 360000
10 Compressing Machines 4 16000011 Electrification and Installation 400000
Total Amount 29,90,000
Rs. 93,71,200 ( Land + Building) + 29,90,000 (Machinery) = Rs 1,23,61,200 = Rs. 1,24,00,000 (approx.)
COST OF MATERIALSr no. Details Per Month Rate / kg Total(Rs.)
Per month1 Ciprofloxacin 50 kg Rs. 1330 66,5002 Metaformine 60 kg Rs 160 9,6003 Glimapride 30 kg Rs 16000 4,80,0004 Alenof 40 kg Rs. 1145 45,8005 Metroniderote 50 kg Rs 850 42,5006 Packing boxes
( 3” x 1” x 2.5”)2 tablets
2000Boxes
Rs . 3 / Box 6,000
7 Packing boxes( 1” x 1” x 0.5”)2 capsules 0
2000Boxes
Rs. 2 / Box 4,000
Total 6,54,400
Annual cost of material is 6,54,400 x 12 = Rs. 78,52,800
SALARY & WAGESSALARY & WAGES Sr.No. Details No. Of
Staff Per head Monthly Yearly Rs.
1 Quality Check Officer 1 15000 15000 1,80,000
2 Production Manager 1 15000 15000 1,80,000
3 Capsule Production Manager
1 15000 15000 1,80,000
4 Tablet Production Manager
1 10000 10000 1,20,000
5 Peon 2 1500 3000 36,000
6 Skilled workers 4 3500 14000 1,68,000
7 Semi-skilled Workers
4 2000 8000 96,000
Total 80000 9,60,000
WORKING EXPENSESWORKING EXPENSESSr.no Details Per month
(Rs.)Per annum (Rs.)
1 Electricity 10,000 1,20,000
2 Insurance 30,000 3,60,000
3 Repair & maintenance 15,000 1,80,000
DEPRECIATIONDEPRECIATIONSr. no Details Rate Total (Rs.)
1 Machinery 10% 2,99,000
2 Building 5% 2,89,120
Total 5,88,120
ADMINISTRATIVE EXPENSESADMINISTRATIVE EXPENSESSr. no Details Monthly Rs. Yearly Rs
1 Accounts 1000 120002 Printing and stationary 500 60003 Postage and telegrams 500 60004 Others 200 2400
Total 2200 26400
SALES & DISTRIBUTION EXPENSESSALES & DISTRIBUTION EXPENSES
Sr. no Details Amount Rs.
1 Commission 400002 Advertising 600003 Salesman 300004 Compensation 15000
Total 145000
Medicine Cost per strip of 10 tablet
Cost per box Monthly production cost
Annual production
oflox 59 590 5,90,000 70,80,000
ciprovid 45 450 4,50,000 54,00,000
glycomet 20 400 4,00,000 48,00,000
Glyciphage 150 3000 30,00,000 3,60,00,000
5,32,80,000
Total sales : Rs 1,78,00,000 Closing stock : Rs 3,54,80,000
Particular Amount[ cr.] Amount [dr.]Total sales 1,78,00,000Less:Cost of production :Raw material PackagingSalary and wages Electricity consumedinsurance Repair and maintenance Interest on loanDepreciationAdministrative expensesSales and distribution expenses
77,32,8001,20,0009,60,0001,20,0003,60,0001,80,00011,62,5005,88,12026,4001,45,000
Gross profit 640518Less tax @ 35%Net profit 39,82,017
1. Gross profit ratio:
GPR = gross profit x 100
Net sales= 61, 26,180 / 15000000 * 100 = 40.95%
2. Net profit ratio:
NPR = net profit x100
Net sales= 39, 82,017/ 15000000 * 100 = 26.54%
FUTURE SCOPE AND EXPANSIONFUTURE SCOPE AND EXPANSION
• As of now the reach of our company is lie in north India but we want to expand our business. Our dream is to take the business to all India level. Selling our business does not feature in our future plans. We intend to establish our company as the largest pharmaceutical manufacturer of the country. As of now the parts which we are importing from others in future we intend to manufacture those parts by ourselves.
• Another ways like expanding our products is the internet or by establishing one or more factory outside Jammu.