“ASSESSMENT OF INCREASE IN THE SALE OF VOLINI GEL AND SPRAY IN DEHRADUN”

PROJECT REPORTSUBMITTED TOWARDS PARTIAL

FULFILLMENT

OF

Bachelor of Pharmacy (Affiliated to Uttarakhand Technical

University, Dehradun)

Academic Session [2006-10]

Submitted to: Under the Supervision of:U.K. Technical University, DEHRADUN

Mrs. Aruna BaduniFaculty, Pharma

Submitted by:Pradeep Kumar

B.Pharma IV YearRoll No. 06280300012

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COLLEGE OF ENGINEERING & RURAL TECHNOLOGY, MEERUT (Affiliated to U.P. Technical University, DEHRADUN)

PREFACE

The present day managers of business concern function in a dynamicThe present day managers of business concern function in a dynamic

environment. In a world in which change is a suite & not an exceptionenvironment. In a world in which change is a suite & not an exception

nothing is certain markets can’t relax once they have launched theirnothing is certain markets can’t relax once they have launched their

product or service in market.product or service in market.

In a dynamic world a business concern has the drive through a thick fog of in

certifications & risk & a wrong move may prove disastrous. It is here that a business

managers beets to thick what a customers thinks & exception from his product & how

customer’s exception can be translated into features & attributes of the product so that

customer feels delighted. This project tries to drive into the minds of customers of the

company & tries to know what they actually expect from a product.

This study has given real exposure to corporate marketing and the confidence to face the

challenges before me in course of sales analysis of the products of RANBAXY’S

VOLINI.

I have conducted my study under the subject “ASSESSMENT OF INCREASE IN

THE SALE OF VOLINI GEL AND SPRAY IN DEHRADUN”. The whole project is

divided into various chapters; each dealing with the various aspects of the study the

report has been written in a very comprehensive manner. Last chapter also has some

recommendations which will be helpful to the company in countering its competition

a.w.a. having an edge over them. I have tried my best to do the justice and be honest in

analyzing the topic.

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ACKNOWLEDGEMENT

I extent my gratitude to MS. YASHITA SWARUP SHARMA, Category Manager,

who has given an opportunity to undergo training in Sales department of RANBAXY as

a Trainee.

I am grateful to Mrs. Aruna Baduni my HOD, Management who provided me valuable

guidance and showed a great zeal of enthusiasm and commitment for this project,

without his guidance this project might not have reached the present stage.

Finally, I would like to thank other countless persons, who had helped me directly or

indirectly, as they have been generous with their time, support and encouragement.

Thanks to all of you.

PRADEEP KUMAR

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CONTENTS

EXECUTIVE SUMMARY

CHAPTER 1

INTRODUCTION

CHAPTER 2

COMPANY PROFILE

Structural View

Business Management

Statement of the problem

Significance of the study

Objective of the study

Importance of the study

Theoretical prospect of the study

Overview of Indian industry

CHAPTER 3

REASEARCH AND METHODOLOGY

Marketing research

Research and methodology

CHAPTER 4

PROJECT REPORT

SWOT Analysis

Data Analysis

Conclusion

CHAPTER 5

BILBILIOGRAPHY

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INTRODUCTION

5

PHARMA INDUSTRY IN INDIA

PHARMACEUTICAL INDUSTRY (INDIA)

Among all the major industries in India, textiles and pharmaceuticals are surely the

leaders. The Indian government has listed the pharmaceutical industry as an

intellectual industry and investment in research and development has been enhanced.

The first Indian pharmaceutical company, Bengal Chemicals and Pharmaceutical Works,

which still exists today as one of 5 government-owned drug manufacturers, appeared in

Calcutta in 1930. For the next 60 years, most of the drugs in India were 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 Act in 1970, 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 were 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 pharmaceutical products account for 8 percent of the global pharmaceutical sales

and India is the fifth largest producer of bulk medicines in the world. In 2001, the value

of India's exports of medicines approached US$1.7 billion.

Indian Pharmaceutical Industry is estimated to be worth $ 4.5 billion, growing at

about 8 to 9 percent annually. It ranks very high in the third world, in terms of

technology, quality and range of medicines manufactured. From simple headache pills to

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sophisticated antibiotics and complex cardiac compounds, almost every type of medicine

is now made indigenously.

The Industry possesses quality producers and many units approved by regulatory

authorities in USA and UK. International companies associated with this sector have

stimulated, assisted and spearheaded this dynamic development in the past 53 years and

helped to put India on the pharmaceutical map of the world.

There are 20,000 laboratories in India's pharmaceutical industry and the scale of the

pharmaceutical market amounts to Euro 5.3 billion. The leading 250 pharmaceutical

companies control 70% of the market with market leader holding nearly 7% of the

market share. It is an extremely fragmented market with severe price competition and

government price control.

Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical

formulations, chemicals, tablets, capsules, orals and injections is met by home

production. There are about 250 large units and about 8000 Small Scale Units, which

form the core of the pharmaceutical industry in India (including 5 Central Public Sector

Units).

Following the de-licensing of the pharmaceutical industry, industrial licensing for most

of the drugs and pharmaceutical products has been done away with. Manufacturers are

free to produce any drug duly approved by the Drug Control Authority. Technologically

strong and totally self-reliant, the pharmaceutical industry in India has low costs of

production, low R&D costs, innovative scientific manpower, strength of national

laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its

rich scientific talents and research capabilities, supported by Intellectual Property

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Protection regime is well set to take on the international market. Over 20,000 registered

pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals

industry output is expected to exceed Rs260 billion in the financial year 2002, which

accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will

account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%).

opportunities in areas of contract manufacturing and research.

Indian companies such as Ranbaxy, Sun Pharma, and Dr. Reddy's are increasingly

focusing on tapping the U.S. generic market. Recently, Ranbaxy Laboratories Ltd has

received a tentative approval from the US Food and Drug Administration to manufacture

and market Lamivudine tablets (150 mg), a medicine used in treating HIV infection.

This tentative approval has been granted under the US President's Emergency Plan for

AIDS Relief Initiative .

The Indian government had recently passed Patents (Amendment) Bill on Tuesday,

March 22, 2005 amid many protests from the Left parties. The passing of the bill means

that India has kept its commitment to the WTO to have a product patent regime in place.

The fear that the new bill would lead to an increase in the cost of life saving drugs, is

taken care off by the compulsory licensing under the bill. This will enable Indian

companies to manufacture medicines for a fixed tenure in case of any epidemic, thus

controlling the price factor.

The government has made crucial changes to the original draft to ensure big pharma

MNCs can't dictate medicine prices arbitrarily. The most important change in the Act is

a tighter definition of what can be patented. Now only a product, including drugs, which

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makes a technical advance or has economic significance, can get a patent.

Some of the changes that bill proposes include giving manufacturing rights to Indian

companies, which currently produce drugs patented abroad, after paying a 'reasonable'

royalty for them.

The bill also restricts a pharmaceutical company from renewing its patent every time it

expires, citing a new use for the same drug. It gives companies more grounds and time

to challenge a patent claim even before it's granted.

The government will also have the right to issue a compulsory license to an Indian

company to produce a patented product if the patent holder is charging abnormally high

rates or in case of a national emergency.

Expenditure on R & D by the Indian pharmaceutical companies is around 1.9% of the

industry's turnover. This is very low when compared to the investment on R & D by

foreign research-based pharma companies. They spend 10 - 16% of the turnover on R &

D. However, now that India has entered into the Patent protection area, many companies

are spending relatively more on R & D. The Pharmaceutical and Biotechnology Industry

is eligible for weight deduction for R&D expense up to 150%.

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INDIA’S TOP TEN PHARMA COMPANIES

INDIA’S TOP TEN PHARMA COMPANIES FOCUSING ON R&D AND

OVERSEAS MARKETS

India's top ten pharmaceutical companies recorded a total sale of around Rs 15,000 crore

during the year 2003-04 and now set to consolidate their position in the international

market. The Indian Pharma segment is spreading its business across the world by

launching cost effective new products and giving tough time to large multinational

companies. During last couple of years, top ten companies have filed many DMFs and

ANDAs with the help of own R&D activities. The cash reach top ten pharma companies

are also rewarding their investors handsomely by way of dividend or bonus shares and

win shareholders confidence.

Focus on R&D and new technology, thrust on exports, new tie-ups as well as mergers

and acquisitions will give edge for the Indian companies. Further, as a part of cost

cutting measure several international players are looking at Indian companies for

contract manufacturing or tie-ups in R&D activities. During the last couple of years,

several MNC in India have sold their plants and offering jobs on contract manufacturing

basis to Indian players. This trend is likely to continue in coming years as a step towards

cost cutting measure.

The aggressive marketing efforts focus on R&D and new markets, expansions of market

based and strong net worth helped the companies scrip’s to march ahead with high price

earnings ratio. The total market capitalization of top 10 companies on November 8, 2008

worked out to Rs 59,415 crore on the BSE and recently many of them reached at their

52-weeks peak level. Except Dr Reddy's scrip, all other company's shares are hovering

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near to their 52-weeks highest level. Currently, Ranbaxy was quoted around Rs 1121 as

against its highest level of Rs 1156 and lowest level of Rs 660.

Dr Reddy's scrip received setback and nose-dived to Rs 780 as against its highest-level

of Rs 1470. The overall returns are very good and the analysts are confident about

handsome returns from the Indian Pharma segment. The sales of top ten companies viz.

Ranbaxy Laboratories, Cipla, Dr Reddy's Laboratories, Nicholas Piramal,

Aurobindo Pharma, Lupin, Cadila Healthcare, Sun Pharmaceutical, Wockhardt

and Orchid Chemical and Pharmaceutical went up by 16.9 per cent to Rs 14,860 crore

during the year 2003-04 from Rs 12,715 crore in the previous year. Ranbaxy remained at

top position with net sales of Rs 3465 crore followed by Cipla at Rs 2060 and Dr

Reddy's Lab at Rs 1740 crore. Nicholas Piramal and Aurobindo maintained their fourth

and fifth largest positions with net sales of Rs 1434 crore and Rs 1341 crore

respectively. The net profit of these companies moved up by 19.8 per cent to Rs 2389

crore from Rs 1994 crore in 2002-03 basically due to lower interest burden.

The pharmaceutical sector is adding substantial amount to countries export earnings and

the segment is known as net foreign exchange earner. The exports on FOB basis of our

sample companies increased by 27.9 per cent to Rs 6631 crore from Rs 5184 crore as

against their import bill of Rs 2522 crore and Rs 2474 crore in 2003-04 and 2002-03.

These companies are focusing more and more on regulated markets of USA and Europe.

Ranbaxy remained as star performer in respect of exports and achieved exports of Rs

2346 crore as against Rs 1775 crore. Dr Reddy's exports touched to

Rs 982 crore during 2003-04 as against Rs 919 crore in the previous year. Similarly,

Cipla, Aurobindo, Lupin and Orchid pushed their export during 2003-04.

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Despite stiff competition in the international market and difficult laws of necessary

approvals, the Indian companies have created strong image in the profitable market.

However, the market situation is likely to change after January 2005 and the companies

will have to face stiff competition. Every player is taking special efforts to consolidate

position in the coming years.

To fight the future challenging developments, these ten companies are spending higher

amounts on research and developments. During the year 2003-04, ten companies R&D

expenditure reached at Rs 949 crore. Though Cipla is not spending any amount on R&D,

Ranbaxy, Dr Reddy, Sun Pharma, Cadila, Wockhardt, Nicholas are spending huge

amounts on R&D. Ranbaxy is spending 7.3 per cent of its total turnover on R&D and Dr

Reddy is spending around 13 per cent. Ranbaxy's R&D expenditure touched to Rs 276

crore and that of Dr Reddy's moved up to Rs 226 crore during 2003-04.

Considering the uncertainty regarding the outcome of research activity and longer time

span to reach conclusion only cash reach companies can undertake major research

activity. However, Ranbaxy is spending over $ 100 million for capacity expansion in the

2003-04 and Nicholas Piramal planning investment of Rs 200 crore on R&D and

upgradation. Lupin is investing Rs 20 crore in Aurangabad or manufacturing anti-TB

products. It is easy for the company to adopt another way of tie-ups with major

international companies. Several Indian companies explore and concluded agreement in

this respect.

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Mergers and acquisitions are also helping companies to boost their revenues in the more

profitable markets. Wokhardt acquired a German Pharmaceutical company Espharma

GmbH for Rs 49 crore and Dr Reddy acquired Tringenesis Therapeutics Inc, US in an $

11 million Deal. Nicholas acquired the API business of Global Bulk Drugs, Lupin

entered marketing tie-up with Allergan Inc, US. To expand marketing base, Cadila has

setup Zydus Pharmaceuticals USA Inc and also acquired Alpharma France. It also

entered into marketing tie-up with global pharma majors such as Schering and

Boehringer Ingelheim. Sun Pharma acquired Detorit-based Caraco Pharmaceutical Labs.

To overcome the challenges of competition, the companies are launching new

generics for last couple of years. The Indian top companies are going ahead aggressively

and filing new DMFs or launching new products. Ranbaxy is set to launch 20 new

products and Lupin is launching herbal products. Dr Reddy launched Iburpofen and

Nefzodone in North Amemrica. Ranbaxy's subsidiary in US received approval from US

FDA for manufacture of Auinapril Hydrochloride tablets for hypertension drugs. During

2003-04 Cipla filed 7 DMFs, Dr Reddy 5 nos and Sun Pharma 4 nos. Lupin filed 32

patents including 10 finished products. Cadila is planning to launch 16-18 ANDAs in

current year. Wockhardt also filed 3- DMFs in US. The Indian pharma companies are

undertaking new molecular research and around 25 to 30 products are in pipeline. These

NCEs will be crucial for post-WTO period. Over the years, the top 10 companies

invested heavily in creating huge capacities. As at the end of 2003-04, the gross fixed

assets of these companies reached at Rs 7057 Crore from Rs 5818 Crore, registering a

growth of healthy growth of 21.2 per cent. The investments in subsidiaries or other

securities has taken a quantum jump of 200 per cent and amounted to Rs 2195 Crore as

compared to Rs 1095 Crore in 2002-03. Thus the total assets i.e. net fixed assets,

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investments and net current assets worked out to Rs 13,627 Crore from Rs 11,240 Crore.

Further, these companies created strong net worth of Rs 9,616 Crore during 2003-04 and

these ten companies are paying handsome rewards to their shareholders.

Total amount paid by these 10 companies to investors amounted to Rs 677 Crore for the

year 2003-04 as against Rs 513 Crore in the last year. Ranbaxy stepped up its equity

dividend to 170 per cent from 150 per cent, Cipla enhanced its dividend to 150 per cent

(100 per cent in the previous year), Nicholas paid 150 per cent (105 per cent), Cadila

Healthcare 120 per cent (70 per cent) and Sun Pharma 100 per cent (75 per cent). Dr

Reddy maintained dividend at 100 per cent during 2003-04.

The stiff competition and heavy spending on R&D as well as marketing is putting some

pressure on pharma segment and the top ten companies sales for the quarter ended

September 2008 increased only by 2 per cent to Rs 3850 Crore from Rs 3780 Crore in

the corresponding period of last year. There net profit declined by 16 per cent to Rs 562

Crore from Rs 668 Crore. However, the analysts from foreign broking firms as well as

from domestic institutions are saying that the set back in working is temporary and the

Indian Pharma segment is well set to improve working and overcome present problems.

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THE INDIAN PHARMACEUTICAL INDUSTRY (IPI) TODAY

STATISTICS

Top 10 Pharmaceuticals in India, 2008

Rank Company

Revenue

2008

(Rs Crore)

Revenue 2008

(USD millions)

1 Ranbaxy Laboratories 4,461 1,026

2 Dr. Reddy's Laboratories 1,933 444

3 Cipla 1,842 423

4 Nicolas Piramal India 1,387 319

5 Aurobindo Pharma 1,260 290

6 GlaxoSmithKline 1,228 282

7 Lupin Laboratories 1,180 271

8 Sun Pharmaceutical Industries Mar 2007 2,375 550

9 Cadila Healthcare 1,091 251

10 Wockhardt 980 225

8 allergan 1,110 255

9 Biochem Pharmaceutical 1,091 251

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10 aventis 980 225

*USD 1 = Rs 40.5

Source: Pharmaceutical Sales Busters, India Business Insight, 31-Dec-08

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In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of

formulations and bulk drugs. 85% of these formulations were sold in India while over

60% of the bulk drugs were exported, mostly to the United States and Russia [25]. Most

of the players in the market are small-to-medium enterprises; 250 of the largest

companies control 70% of the Indian market [1]. Thanks to the 1970 Patent Act,

multinationals represent only 35% of the market, down from 70% thirty years ago [20].

Most pharma companies operating in India, even the multinationals, employ Indians

almost exclusively from the lowest ranks to high level management. Mirroring the social

structure, firms are very hierarchical. Homegrown pharmaceuticals, like many other

businesses in India, are often a mix of public and private enterprise. Although many of

these companies are publicly owned, leadership passes from father to son and the

founding family holds a majority share.

In terms of the global market, India currently holds a modest 1-2% share, but it has been

growing at approximately 10% per year [27]. India gained its foothold on the global

scene with its innovatively-engineered generic drugs and active pharmaceutical

ingredients (API), and it is now seeking to become a major player in outsourced clinical

research as well as contract manufacturing and research. There are 74 U.S. FDA-

approved manufacturing facilities in India, more than in any other country outside the

U.S, and in 2005, almost 20% of all Abbreviated New Drug Applications (ANDA) to

the FDA are expected to be filed by Indian companies [21, 27]. Growths in other fields

notwithstanding, generics are still a large part of the picture. London research company

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Global Insight estimates that India’s share of the global generics market will have risen

from 4% to 33% by 2007[27].

COMPANY ‘S PROFILE

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PROFILE OF RANBAXY

Ranbaxy Science Foundation

Ranbaxy Laboratories Limited incorporated Ranbaxy Research Foundation in 1985 and

was later reconstituted as a separate society as Ranbaxy Science Foundation and

registered under the Societies Act in May 1994, with an implicit mission of giving

impetus to research activity and help in reviving India’s great scientific tradition. The

Foundation instituted Ranbaxy Research Awards to recognize original outstanding

contributions in the fields of Medical and Pharmaceutical Sciences. Every year the

Foundation invites nominations for 4 awards – 3 Awards for Rs. 1,00,000/- each in the

fields of Medical Sciences in Basic. Applied and Clinical and 1 Awards of Rs.

1,00,000/- in the field of Pharmaceutical Sciences. So far 104 scientists have been

honored by the Foundation.

Ranbaxy Science foundation (RSF) is a nonprofit organization dedicated to promote

scientific endeavors in the country by encouraging and rewarding and channeling

national and international knowledge and expertise on subjects connected with treatment

of diseases afflicting mankind. To achieve these objectives, the Foundation conducts

Round Table Conferences on topics concerning public health and symposia on topics at

the cutting edge of research in medical sciences to explore the latest in the selected area

of specialty and its potential application for the benefit of mankind.

Being committed to recognizing and furthering excellence, the Foundation has also

initiated “Research Scholarship Awards for the Young Scientists” with an aim to

stimulate their interest in research. Late Prof. V. Ramalingaswami, was the founder

Chairman of the Foundation. Dr. Nitya Anand a renowned pharmaceutical scientist is

currently the Chairman of the Ranbaxy Science Foundation.

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CEO's Message

The Indian pharmaceutical industry is at the

center stage in the global pharmaceutical

arena and Ranbaxy is at the forefront in

delivering the India centric advantages to the

advanced and developing countries of the world.

From a small domestic company at inception in late 60’s, Ranbaxy has grown formidably to be an

integrated, research based, international pharmaceutical company with global sales in excess of one billion

dollar , as envisioned by the Chief architect and visionary of today's Ranbaxy, Late Dr Parvinder Singh,

Chairman and Managing Director, in the early 90's.

It is with the unwavering ' dedication ' and the ' will to win ' of Team Ranbaxy across the globe that we

have traversed this journey so far.

We are committed to provide quality generics at affordable prices to the patients worldwide with a view to

help bring down the healthcare costs. We are confident that our efforts would see the Company grow from

strength to strength in the global generic space in the years to come. Whilst we continue to enhance the

momentum of our generics business in over 125 markets, we are also accelerating our drug discovery

program through collaborations and alliances.

As we move ahead we are determined to capitalize on the new opportunities based on our strong

fundamentals of innovation, entrepreneurship and aggressive marketing. We remain committed to

enhancing shareholder value as we actively pursue our strategy of growth through organic and inorganic

means.

Today, we are amongst the Top 10 global generic companies.-

Mr. Malvinder Mohan Singh

CEO & Managing Director

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Corporate Profile

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based,

international pharmaceutical company, producing a wide range of quality, affordable

generic medicines, trusted by healthcare professionals and patients across geographies.

The Company is ranked amongst the top ten global generic companies and has a

presence in 23 of the top 25 pharma markets of the world. The Company with a global

footprint in 49 countries, world-class manufacturing facilities in 11 and a diverse

product portfolio, is rapidly moving towards global leadership, riding on its success in

the world’s emerging and developed markets.

Financials

Ranbaxy was incorporated in 1961 and went public in 1973. For the year 2006, the

Company's Global Sales at US $1339 Mn reflected a growth of 17%. The EBIDTA at

US$207 reflected an expansion of 16%. Profit After Tax at US$ 114 Mn registered an

increase of 95% over the previous year.

The Company is moving towards a well balanced mix of revenues from developed and

emerging markets and is currently well positioned to leverage the varied growth

potential offered by these markets. For the year 2006, North America, the Company's

largest market contributed sales of US $ 391 Mn, reporting a growth of 18% followed by

Europe garnering US$ 332 Mn reflecting a growth of 23%. The Company’s business in

Asia was led by a strong performance in India clocking in sales of US$ 260 Mn nudging

towards market leadership backed by its strong brand-building skills.

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Strategy

The Company has successfully pursued its inorganic growth strategy and concluded

over 15 acquisitions since 2008, including the latest 9 acquisitions valued at US$ 450

Mn (4 in Europe, 1 in the US, 3 in India and 1 in South Africa). These acquisitions have

significantly expanded its business in emerging and profitable markets. The Company

will continue to evaluate acquisition options in US, Europe, India and emerging markets

to accentuate its business and competitiveness in these markets.

R&D

Ranbaxy views its R&D capabilities as a vital component of its business strategy that

will provide the company with a sustainable, long-term competitive advantage. The

Company today has a pool of 1,200 scientists who are engaged in path-breaking

research.

Ranbaxy is among the few Indian pharmaceutical companies in India to have initiated its

research program in the late 70’s. To support its global ambition a first of its kind world

class R&D centre was commissioned in 1994. Today, the Company’s multi-disciplinary

R&D centre at Gurgaon, in India, houses dedicated facilities for generics research and

innovative research. The Company’s robust R&D environment for both drug discovery

& development reflects the Company's commitment to be a leader in the generics space

and offer value added formulations based on its Novel Drug Delivery System (NDDS)

and New Chemical Entity (NCE) research outcomes.

The company's NDDS focus is mainly on the development of NDA/ ANDAs of oral

controlled- release products for the regulated markets. The Company's first significant

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international success using the NDDS technology platform came in September 1999,

when Ranbaxy out-licensed its first once-a-day formulation to a multinational company.

The research areas for drug discovery at Ranbaxy are anti-infective, inflammatory /

respiratory, metabolic diseases and Oncology. Presently, the Company has 10 programs

in the area of NDDR including one NCE in Phase-II clinical trials. The Company has

received approvals to commence Phase I studies in India on its NCE molecule for

Dyslipidemia. In addition, the Company also has a number of other pre-clinical leads in

various segments.

Ranbaxy also has a global alliance in the area of drug discovery and development with

GlaxoSmithKline Plc. Presently two research programs have been initiated under this

alliance.

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Vision & Aspirations

The Company is driven by its vision to achieve significant business in proprietary

prescription products by 2012 with a strong presence in developed markets. It aspires to

be amongst the Top 5 global generic players and aims at achieving global sales of US $5

Bn by 2012.

People

The Company’s business philosophy based on delivering value to its stakeholders

constantly inspires its people to innovate, achieve excellence and set new global

benchmarks. Driven by its vision to become a global leader the Company reinvents itself

to achieve sustained growth and leadership.

Driven by the passion of its over 12,000 strong multicultural workforce comprising 50

nationalities, Ranbaxy continues to aggressively pursue its mission to become a

Research-based International Pharmaceutical Company and attain a true global

leadership position

Board of Directors

At the helm of the entire operations is the experience and able direction of the people

who make it all happen. Ranbaxy acknowledges their inspiring stewardship and

indefatigable work.

24

25

Board of Directors

STANDING (LEFT TO RIGHT) : Mr Ramesh Adige, Mr Vinay K Kaul, Mr Ravi

Mehrotra, Dr Brian W Tempest, Mr Vivek Bharat Ram, Dr P S Joshi, Mr Malvinder M

Singh, Mr Surendra Daulet-Singh, Mr Shivinder M Singh, Mr Atul Sobti

S ITTING (LEFT TO RIGHT) : Mr Nimesh Kampani, Mr Harpal Singh, Mr Tejendra

Khanna*, Mr Vivek Mehra, Mr Gurcharan Das

Mr. Harpal Singh, Non-executive Chairman

Dr. Brian W. Tempest

Mr. Malvinder Mohan Singh

Mr. Atul Sobti

Mr. Ramesh L. Adige

Mr. Vinay. K. Kaul

Mr. Shivinder Mohan Singh

Dr. P. S. Joshi

Mr. Surendera Daulet-Singh

Mr. Vivek Bharat Ram

26

Executive Team

The Executive Committee is an apex body at Ranbaxy that oversees Company's global

functioning. The group deliberates on important Company issues steering it in the right

direction. The Committee ensures that all decisions are taken in the best interest of the

organization. This forum brings in different perspectives on a subject. Issues are

discussed, analyzed and concluded through exchange of ideas, reflecting the Company's

philosophy of participative management. It also facilitates the Company's compliance

with the best standards of Corporate Governance.

Dr. Brian W. Tempest

Chief Mentor &

Executive Vice

MR. MALVINDER

MOHAN SINGH

CEO &

MANAGING

DIRECTOR

Mr. Atul Sobti

Chief Operating Officer

27

Mr. Ramesh L. AdigeExecutive Director, Corporate Affairs

Mr. Pushpinder BindraPresident & Chief Technical Officer

Mr. Dipak ChattarajPresident – Corporate Development

Mr. Peter BuremaPresident - Global Pharmaceutical Business

Dr. Himadri SenPresident R&D (Generics & NDDS)

Dr. Pradip BhatnagarSenior Vice President - New Drug Discover Research

Mr. Jay DeshmukhSenior Vice President - In

Mr. Satish ChawlaVice President - Global Mr. Bhagwat Yagnik

Vice President - Global H.R

28

An introduction to Ranbaxy in India

Ranbaxy’s Key Strengths

Leadership in Novel Drug Delivery System (NDDS) products, which offer

value-added differentiation over conventional products. Key brands include Cifran OD

(Ciprofloxacin), Zanocin OD (Ofloxacin) & Sporidex AF (Cephalexin)

Strong brand building capabilities, reflected in the fact that 20 brands feature in

the “Top-300 brands of the Industry” list. The leading 5 brands are Sporidex

(Cephalexin), Cifran (Ciprofloxacin), Mox (Amoxycillin), Zanocin (Ofloxacin) &

Volini (Diclofenac)

A well-built customer interface, with one of the highest customer coverage

across India, and an excellent franchise with both Generalists & Specialists. This is

proven by Ranbaxy India’s Corporate Image being perceived as ‘Best-in-Class’ by

customers (source: AC Nielsen ORG MARG Report, June 2008)

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With a futuristic approach, the India operations attempts to capitalize on the fast-

emerging, high-growth segments with innovative products and services:

a) Biological formulations such as Verorab (Rabies Vaccine) and Vaxigrip (Flu

Vaccine), which require competencies to propagate the newer concepts in the market

place. These products are being in-licensed or taken on Co-promotion from Sanofi

Pastuer

b) High end anti-infective such as Cilanem (Imipenem+Cilastatin) & Faronem

(Faropenem) have been launched for the first time in India. Ranbaxy is championing

the concept of Penems/ Carbapenmens , locally

c) Dry Power & Metered Dose Inhalers have been launched in the Respiratory

segment. All Metered Dose Inhalers are HFA based formulations, environment

friendly inhalers. It is for the first time in India, that a company has launched its entire

HFA propellant based MDI range. The world’s first novel product, Osovair

(Formoterol + Ciclesonide) inhalation capsules has been introduced in the Indian

market.

d) Anti-diabetic franchise has been further consolidated with launch of

Insucare (Insulin) with an innovative delivery mechanism - “Controlled Insulin

Logistics” This ensures that the cold chain, vital for product efficacy, is maintained.

e) A slew of products have been launched in the Dermatology segment: Sun cross

(Sunscreen lotion), Sotret (Isotretnoin), Eflora (Eflornithine)

30

At a Glance

Team Size About 2,500 persons

Overall Market Size US $ 6.2 Bn

(Source: IMS-ORG MAT March, 2007)

Ranbaxy Market Share 5.07%

(Source: IMS-ORG MAT March MAT,

2007)

Ranbaxy Sales US $ 260 Mn

Total No. of Molecules

Ranbaxy + Local tie ups

Market formulations based on more than

200 molecules

(including Fixed Dose Combinations)

Total No. of Molecules

Ranbaxy + Local tie ups

Cephalexin (Sporidex), Ciprofloxacin

(Cifran), Amoxycillin (Mox), Ofloxacin

(Zanocin), Atorvastatin (Storvas),

Ceftriaxone (Oframax), Cefpodoxime

Lead Molecules (Cepodem), Co-amoxyclav (Moxclav),

Cilanem (Imipenem+Cilastatin), Volini

(Diclofenac combination), Silverex

(Silver Sulphadizine), Cepodem

(Cefpodoxime), Verorab (Rabies

vaccine)

Presence in Therapeutic Segments Dermatological, Neuro-Psychiatry, Pain

management, Gastro-Intestinal,

Nutritional

31

Research & Development

Ranbaxy views its R&D capabilities as a vital component of its business strategy that

will provide the company with a sustainable, long-term competitive advantage. The

company today has a pool of 1,200 scientists who are engaged in path-breaking

research.

The robust R&D environment within the company for both drug discovery &

development reflects the Company's commitment to be a leader in the generics space

and offer value added formulations based on the Company's Novel Drug Delivery

System (NDDS) and New Chemical Entity (NCE) research outcomes.

R&D INFRASTRUCTURE

Ranbaxy is among the few Indian pharmaceutical companies in India to have recognized

the importance of Research & Development (R&D) and invested early in it. The first

research activity at Ranbaxy was initiated way back in the year 1973. Later when

Ranbaxy drew its ambitious global plans, it embarked on R&D in a significant way by

establishing its first R&D centre in 1994.

Ranbaxy today has state-of-the-art multi-disciplinary centre at Gurgaon (near New

Delhi) in India, with dedicated facilities for generics research and innovative research.

The prowess of Indian scientists is widely acknowledged today and it is believed that the

cost of developing a new drug in India can be one third to one fifth of doing the same, in

the developed world. It is a long term objective of Ranbaxy to build a proprietary

prescriptions business, based on its prowess in NDDS and NCE research.

32

Worldwide Operations

Global Pharma Companies are experiencing an ever changing landscape ripe with

challenges and opportunities. In this challenging environment Ranbaxy is enhancing its

reach leveraging its competitive advantages to become a top global player.

Driven by innovation and speed to market we focus on delivering world-class generics

at an affordable price. Our unwavering determination to achieve excellence leads us to

new global benchmarks. Our people have consistently risen above all challenges

maximized opportunities and positioned Ranbaxy as a leader in the global generics

space.

Ranbaxy’s global footprint extends to 49 countries embracing different locales and

cultures to form a family of 51 nationalities with an intellectual pool of some of the best

minds in the world.

Africa

33

Europe

India

North America

Asia Pacific

Global API

Latin America

CIS

Global Consumer Healthcare

Middle East and Sri Lanka

Manufacturing Facilities

An organizations’ capabilities and intent are strongly reflected in the product it

manufactures. In other words, the manufacturing competencies and facilities echo truly,

the R&D extent and the ability to implement it for the best of the market it targets.

Ranbaxy’s manufacturing strengths have established it as a producer of world-class

generics, branded generics and a major supplier of its range of Active Pharmaceutical

Ingredients.

34

Ranbaxy has world-class manufacturing facilities in 11 countries namely Brazil, China,

Ireland, India, Japan, Malaysia, Nigeria, Romania, South Africa, USA and

Vietnam. Its overseas facilities are designed to cater to the requirements of the local

regulatory bodies of that country while the Indian facilities meet the requirements of all

International Regulatory Agencies. Some of the agencies such as MCA-UK, MCC-

South Africa, FDA-USA and TGA-Australia, have audited and approved Ranbaxy’s

manufacturing facilities for the compliance with international Good Manufacturing

Practices and have registered its products for safety, quality and efficacy.

35

Products

Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited

manufacture and markets generic pharmaceuticals, value added generic pharmaceuticals,

branded generics, active Pharmaceuticals (API) and intermediates.

The Company remains focused on ascending the value chain in the marketing of

pharmaceutical substances and is determined to bring in increased revenues from dosage

forms sales.

Ranbaxy's diverse product basket of over 5,000 SKUs available in over 125 countries

worldwide, encompasses a wide therapeutic mix covering a majority of the chronic and

acute segments. Healthcare trends project that the chronic treatment segments will

outpace the acute treatment segments, primarily driven by a growing aging population

and dominance of lifestyle diseases. Our robust performance in Cardiovasculars, Central

Nervous System, Respiratory, Dermatology, Orthopedics, Nutritionals and Urology

segments, clearly indicates that the Company has strengthened its presence in the fast-

growing chronic and lifestyle disease segments.

Top 20 Molecules

• Simvastatin

• AmoxiClav Potassium

• Isotretinoin

• Amoxycillin and Combinations

• Ciprofloxacin and Combinations

• Ketorolac Tromethamine

• Omeprazole and Combinations

36

• Cefuroxime Axetil

• Cephalexin

• Loratadine and Combinations

• Clarithromycin

• Ginseng+Vitamins

• Diclofenac and Combinations

• Ranitidine

• Cefaclor

• Cefpodoxime Proxetil

• Efavirenz

• Atorvastatin and Combinations

• Fenofibrate

• Ofloxacin and Combinations

Research & Development

Ranbaxy views its R&D capabilities as a vital component of its business strategy that

will provide the company with a sustainable, long-term competitive advantage. The

company today has a pool of 1,200 scientists who are engaged in path-breaking research.

The robust R&D environment within the company for both drug discovery &

development reflects the Company's commitment to be a leader in the generics space and

offer value added formulations based on the Company's Novel Drug Delivery System

(NDDS) and New Chemical Entity (NCE) research outcomes.

37

NOVEL DRUG DELIVERY SYSTEMS (NDDS)

The NDDS research at Ranbaxy focuses on maximizing the overall therapeutic and

commercial value of commonly prescribed pharmaceutical formulations by enhancing

their performance and reducing their adverse event profile. Such innovation also helps to

improve the overall patient convenience and compliance

The company's NDDS focus is mainly on the development of New Drug Applications

(NDA) / Abbreviated New Drug Applications (ANDAs) of oral controlled- release

products for the regulated markets. The Company's first significant international success

using the NDDS technology platform came in September 1999, when Ranbaxy licensed

its once-a-day Ciprofloxacin formulation on a worldwide basis to a multinational

Company.

Ranbaxy's in-house NDDS programs are primarily focused on the oral segment.

Inhalation (patented devices) and trans-dermal (patented adhesive polymers) programs

are also being pursued through collaborations.

In the oral NDDS space, Ranbaxy has already developed four platform technologies

namely Gastro Retentive, Modified Matrix, Multiparticulate and AeroGel. Several

products leveraging these technologies have been successfully developed.

NEW DRUG DISCOVERY RESEARCH (NDDR)

The Company’s NDDR program focuses on select therapeutic segments of Infectious

diseases, Metabolic diseases, Inflammatory/ Respiratory disease and Oncology.

Presently, the Company has 8-10 programs in the area of NDDR.

For Arterolane (potential Anti-malarial candidate), the Company has obtained approval

from the Drug Controller General of India to initiate Phase III human clinical trials in

38

India. Ranbaxy plans to seek regulatory approval in other countries outside India to the

Phase-III clinical trial.

The Company’s potential drug candidate for Dyslipidemia RBx 10558, has been

successfully out-licensed to Pharmaceutical Product Development Inc. (PPD), a leading

global Contract Research Organization for clinical development for further development.

The Company is also profiling DPP-IV Inhibitors (Di-Peptidyl Peptidase IV Inhibitors)

for Type-2-diabetes, a selective Phosphodiesterase 4-b inhibitor for COPD and Asthma,

and a novel antibiotic antibacterial for Community Acquired Respiratory Tract Infection.

The Company continues to forge ahead with its various research alliances, in order to

expedite its Drug Discovery program.

Significant progress has been made on two research programs, one each in the Anti-

infective and Respiratory segments, which are being pursued with GlaxoSmithKline

(GSK). Consequently, Ranbaxy and GSK have expanded the original agreement and

Ranbaxy now has the responsibility for advancing the selected compounds to ‘proof of

concept’ in man, whereby total milestone payments, excluding royalties, could exceed

over US $ 100 Mn.

Under an alliance with a leading academic institution in India, a number of medicinal

plants are being evaluated as potential sources for novel pharmaceutical agents. The

Company also has collaborative research projects with other academic institutions in

India in the area of Respiratory and Infectious disease.

R&D INFRASTRUCTURE

Ranbaxy is among the few Indian pharmaceutical companies in India to have recognized

the importance of Research & Development (R&D) and invested early in it. The first

research activity at Ranbaxy was initiated way back in the year 1973. Later when

39

Ranbaxy drew its ambitious global plans, it embarked on R&D in a significant way by

establishing its first R&D centre in 1994.

Ranbaxy today has state-of-the-art multi-disciplinary centre at Gurgaon (near New

Delhi) in India, with dedicated facilities for generics research and innovative research.

The prowess of Indian scientists is widely acknowledged today and it is believed that the

cost of developing a new drug in India can be one third to one fifth of doing the same, in

the developed world. It is a long term objective of Ranbaxy to build a proprietary

prescriptions business, based on its prowess in NDDS and NCE research.

40

Collaborative Research

We believe that networking in R&D is key for accelerated progress. We have developed

major strengths in the areas of Chemical Research, Bio-equivalent generics and Novel

Drug Delivery System (NDDS). We have taken initiatives to create infrastructure and

capabilities in the area of New Drug Discovery Research. We have state-of-art research

and development Facilities at our R&D Center.

Our NCE Pipeline

4-6* molecules in preclinical stage

(* 2molecules in collaboration with GSK)

1 Molecule in Phase II Clinicals :

Anti Malaria

Major Alliances/ Collaborations

Drug Discovery & Clinical Development -

GlaxoSmithKline

Cipro OD Technology Out Licensed - Bayer

Statin molecule out licensed to PPD, USA

Our Focus

New Drug Discovery Research(NDDR)

Metabolic Diseases

Respiratory/ Inflammatory

Anti-Infectives

Oncology

We seek partners for -

Co-development in the above therapeutic areas for collaboration with companies / universities /

research institutions to undertake a discovery program starting from the conceptual stage.

41

Novel Drug Delivery Systems (NDDS)

Our focus is on oral controlled release delivery systems

NDDS Technologies developed are on the following platforms

Multiparticulate

Modified matrix

Gastroretentive

Aerogel

Pharma Research

For Value Added Dosage Forms

Current

Soft gel

Dispersible tabs / chewable tabs

Taste masking

Gels

Effervescent

We seek opportunities for

Joint research projects for co - development of Novel Drug Delivery System-based

products.

42

Company Profile

Ranbaxy has a strong element of Corporate Social Responsibility inscribed in its values

and its concern for the society extends well beyond its business motives. The company

does not view success and achievements in terms of commercial gains only but

firmly believes that corporate social responsibility is the key for providing a deep

symbiotic relationship that exists between the company and the environment it

functions. Over two decades ago, in 1979, in the wake of grim health scenario of India,

Ranbaxy realized the urgency to reach out to those who had little or no access even to

basic health care and instituted ‘Ranbaxy Rural Development Trust’. The main objective

of the programme was to deliver primary health care to the underserved and

underprivileged section of the society to achieve positive health for them and thus to

contribute to the national objective ‘Health For All’. As the scope of the programme and

company’s commitment grew, in 1994, a professionally managed, nonprofit,

independent body ‘Ranbaxy Community Health Care Society’ (RCHS) was established

against the backdrop of full moral and financial support of the company.

43

Ranbaxy’s mission is to become a Research-based International Pharmaceutical

Company, committed to constantly pushing new frontiers of knowledge in pursuit of

new horizons of science.

Ranbaxy, India’s largest pharmaceutical Company and one of the Top 10 generic

pharma players worldwide, is also one of the largest ANDA (Abbreviated New Drug

Application) filers with the US FDA. USA is the world’s most developed

pharmaceutical market and the largest market for Ranbaxy. The Company continues to

forecast global sales of US$ 5 Bn in 2012.

Ranbaxy is committed to increase its R&D spend of over 7% of US$ 1 Bn in 2008, to

around 10% of its targeted turnover of US$ 2 Bn by 2007. With a state-of-the-art fully

operational R&D center housing close to 1000 scientists in three blocks, and a fourth

underway, Ranbaxy is fortifying its capabilities in drug discovery, on course towards

destination discovery.

44

There is a winning chemistry working ceaselessly at Ranbaxy. Much more than creating

new products, it is creating new possibilities. This is the chemistry of Team Ranbaxy. A

fascinating amalgamation of Thought and Effort, Aspirations and Commitment, Man

and Technology. It is this unique chemistry that has made us what we are... India's first

transnational. The largest Indian Pharma Company ranked among the top 10 global

generic pharma companies. A vibrant, research-based global player, surpassing the US$

1 Bn turnover mark in February 2008 (on a MAT* basis).Our ability to transform

ourselves and constantly rise up the value chain is driven by a strong emphasis on

employee empowerment at every level. Encouraging entrepreneurship, practicing

delegation, rewarding commitment and creating opportunities for every single team

member a family of around 9000 individuals with a common Vision for 2012.

Infrastructure

The Society currently operates 7 mobile health care vans and 1 urban family welfare

center in the northern and central parts of India covering 90 villages and urban slum

localities having a population of about 2 lacs. Each mobile health van is managed by a

team of one doctor, one Auxiliary Nurse Midwife (ANM) and one driver. A team of 34

personnel’s, which include 9 doctors and 15 paramedical, are devoted full time to this

45

programme.

Each van is equipped with provisions for doing minor procedures like copper-T insertion

or vasectomy, immunization, laboratory tests and antenatal check up and is also fitted

with an audio visual set to impart health education.

Environment, Health and Safety 

Ranbaxy is fully committed to achieve Environment, Health & Safety (EHS) excellence

and conduct its activities in the most responsible manner. Over the years, importance of

EHS has been stressed and extensively promoted as a corporate culture within Ranbaxy.

It is also clearly reflected and well defined into Ranbaxy’s value statements of

“Managing our operations with high concern for safety and environment” and “Be

a responsible corporate citizen”.

Thinking and working responsibly so that the employees, the community at large, and

the environment including the natural resources, are protected leaving minimal

environmental footprints, is integral to Ranbaxy’s EHS philosophy. On the road to EHS

excellence, Ranbaxy has adopted a top down approach and embraced the principles and

codes of best EHS practices into its redefined world class EHS Management System.

46

INTRODUCTION TO PROJECT

Objective

The objective is the assessment of increase in sales of Volini Gel and Spray in

DEHRADUN taking the following factors into consideration while doing the survey.

Assessment on sales increase.

Impact on prescription.

Stock level of Volini against move by SKUs.

Feedback on 15gm Gel & 35gm Spray.

Suggestion of Trade.

Feedback about T.V. advertisement.

Impact of seasonality.

Critical Success Factors

In depth understanding of market and consumer behavior in the category.

Product Information

Background

Volini sold by another Ranbaxy division Cross land

Reached a sizeable business of Rs 380 mn

Identified as a brand that can comfortably switch to an OTC

RGCH Sales & Distribution take over the brand in Jan ˈ07

Sold by the ethical route

o Doctors

o Chemist Recommendations

47

o Word of mouth

Product

Ingredients:

o Diclofenac:

Relieves pain & inflammation

o Methyl Salicylate:

Provides counter-irritant action

o Alpha Linolenic Acid:

Helps anti-inflammatory action

o Menthol:

Enhances Diclofenac absorption

Formulation: Clearly superior

o Voveron + Moov = Volini

Usage

Packaging

SKUs

o Gel : 28 gm M.R.P. Rs 62.04

o Gel : 15 gm M.R.P. Rs 35.00

o Spray : 55 gm M.R.P. Rs 100.75

o Spray : 35 gm M.R.P. Rs 65.00

o Tablets : 10 strips M.R.P. Rs 14.53

48

Indicated in:

o Joint pain

o Muscular pain

o Back pain

Packaging

SKUs

o Gel : 28 gm M.R.P. Rs 62.04

o Gel : 15 gm M.R.P. Rs 35.00

o Spray : 55 gm M.R.P. Rs 100.75

o Spray : 35 gm M.R.P. Rs 65.00

o Tablets : 10 strips M.R.P. Rs 14.53

Promotion

Sold only through chemists (Diclofenac)

Retail margins in line with Pharma industry

Has enjoyed a strong association with doctors

Orthopedics, General Practitioners

No.1 prescribed topical analgesic

Dedicated team of MSRs

Trade promotion

Operates schemes like 11+1

Retail schemes like Colgate Dental Cream(50 gm) on 12 packs of Volini

49

PRODUCT ANALYSIS

Ranbaxy’s Volini now an OTC product; Saatchi to handle creative

Ranbaxy Consumer Healthcare, a division of Ranbaxy Laboratories, which owns many

OTC (over the counter) pharma brands such as Revital, Pepfiz and Smile, has decided to

reposition its pain killer prescription drug, Volini, as an OTC product.

Saatchi & Saatchi bagged the creative duties for Volini following a multi-agency pitch.

Both the agency and the pharma company say the advertising budget for this brand alone

is Rs 10 Crore.

Volini comes in gel, spray and tablet forms. The brand will be relaunched in September

and the advertising campaign will be rolled out in sync.

Since Volini is a young brand, it will have to fight it out with

veterans such as Iodex, Moov and Amrutanjan. The

collective size of the balm market stands at Rs 700 Crore, of which Iodex holds a

significant share.

A source close to the development informs agency facts that during the pitch, the

agencies were asked to compute a complete strategy to firmly entrench the brand within

the category. The idea is to position Volini as a brand that consumers would like to

reach out to when they need it and thus create top of the mind recall.

50

The source reveals that Volini products will have a completely different positioning

from their direct competitors. The media mix comprises of print and television.

CUSTOMER VALUE & SATISFACTION

Over 38 years ago, peter drucker deserved that a company first task is “to create

customer”. However, customer face a vast array of product and brand choices, prices,

and suppliers. How do they make their choices we believe that customers estimate which

offer will delivers the most value customers are value maximizes, within the bound of

search costs and limited knowledge, mobility, and income they form an expectation of

value and act on it. Whether or not the offer lives up to the value expectation offer both

satisfaction and repurchase probability.

Our premise is that customer will buy from the firm that they see as offering the highest

precision value.

51

CONSUMER SATISFACTION

Today’s companies are facing their toughest competitors ever. Therefore companies

need to more rapidly into new economy and employ internet, wireless and other

technologies to achieve a competitor advantage.

Here is big question that how companies can go about wailing customers and out

performing competitors. The answer lies in doing a better job of meeting or exceeding

customer expectations be coz this is costumer centered era.

“John chambers , CEO of Cisco systems put it will “Make your customer the center

of your culture” companies are adept at building customers, not just product, they are

skilled in market engineering, not just product engineering.

52

TOTAL CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offer’s performance in

relation to the buyer expectations. In general, satisfaction is a person’s feelings of

pleasure or disappointment resulting from comparing a product’s perceived performance

(or out come) in relation to his or her expectations. If the performance falls short of

expectations the customer is dissatisfied. If the performance matches the expectations,

the customer is satisfied. It the performance exceeds expectations the customer highly,

satisfied or delighted.

53

MEASURING SATISFACTION

Although the customer centered firm seeks to create high customer satisfaction, that is

not main goal. If the company increases customer satisfaction by lowering its price or

increasing its services, the result may be lower profits.

The company might be able to increase its profitability by means other than increased

satisfaction for example by improving manufacturing process or investing more in

R&D) ultimately, the company must operate on the philosophy that it is trying to deliver

a high level of customer satisfaction subject to adverting acceptable levels of satisfaction

to the other stake holder given its total resources.

When customers rate their satisfaction with an element of the company’s performance

say, delivery the company need to recognize that customers vary in how they define

good delivery. It could mean early delivery, on time delivery, order completeness and so

on. Yet if the company had to spell out every element in detail, customer would face a

huge survey questionnaire. The company must also realize that two customers can report

being “highly satisfied” for different reasons one may be early satisfied most of the time

and the other might be hard to please but was pleased on this accession.

Cleans formal has developed the American customer satisfaction index (ACSI) to

measure the perceived satisfaction consumers feel with different firms, industries,

economic sector and national economics.

54

RANBAXY CONSOLIDATES PRESENCE IN DERMATOLOGY SEGMENT

ACQUIRES BRANDS FROM OCHOA LABORATORIES LTD

Gurgaon, India, May 21, 2009

Ranbaxy Laboratories Limited (Ranbaxy), announced today that it has acquired

trademarks, product dossiers and marketing rights from Ochoa Laboratories Limited

(Ochoa) for its entire range of Dermatological and Lifestyle products. The acquired

brands command considerable equity with doctors and are market leaders in their

respective categories. They complement Ranbaxy’s existing derma portfolio. The

products enjoy high margins because of their novelty and brand appeal and will be

initially marketed in India.

Commenting on the acquisition, Mr. Malvinder Mohan Singh, Chairman, CEO & MD,

Ranbaxy, said, “The move strengthens Ranbaxy’s domestic presence and market share in

Deramatology, a high-growth therapeutic segment, for the company. I believe, the Indian

pharmaceutical space is ripe for consolidation and Ranbaxy’s intent is to accelerate this

trend with a view to reach commanding positions, especially in the high value chronic

and acute therapy areas”.

Mr Sanjeev Dani, Senior Vice President & Regional Director, Asia & CIS, Ranbaxy, said,

“ Given Ranbaxy’s extensive distribution capability, we are best positioned to leverage

the vast potential of these brands while consolidating our product portfolio in

Dermatology.”

55

The current market size of the Dermatology segments in India is approximately Rs. 1950

crores, growing rapidly at about 11%.

Ranbaxy already has a strong presence in the dermatology market including steroids with

products such as Zole-F, Suncros, Efflora, Fucidin and Teczine, among others.

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated,

research based, international pharmaceutical company producing a wide range of quality,

affordable generic medicines, trusted by healthcare professionals and patients across

geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals in

developed markets and significant progress in New Drug Discovery Research. The

Company’s foray into Novel Drug Delivery Systems has led to proprietary "platform

technologies," resulting in a number of products under development. The Company is

serving its customers in over 125 countries and has an expanding international portfolio

of affiliates, joint ventures and alliances, ground operations in 49 countries and

manufacturing operations in 11 countries.

56

RESEARCH

METHODOLOGY

57

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

1. Nature of research –Descriptive

2. Research approach- Sample survey

3. SAMPLE SIZE – 250 No.

4. Method of research – Questionnaire

5. Research Instrument - Random Sampling

6. Findings

7. Suggestions

58

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It might

be understood as a science of studying how research is done systematically &

scientifically. In it we study the various steps that are generally adopted by a researcher

in studying his research problem along with the logic behind them.

Researcher also need to understand the assumptions underlying various techniques they

need to know the criteria by which they can decide that certain techniques & procedures

will be applicable to the certain problems and other will not.

The scope of research methodology is wider than that of research method. Thus when

we talk of research methodology we will not only talk of the research method but also

consider the logic behind the methods we use in the context of our research study and

explain why we are using a particular method or techniques and why we are not using

others so that the research result are capable of being either by researcher himself or

others. Why a research study undertaken, how the research problem has been

undertaken, how the research problem has been define, in what way and why the

hypothesis has been formulated. What data have been collected and what particular

method has been adopted why particular techniques of data collections has been used

and a host of similar other questions are usually answered when we talk of research

methodology concerning a research problem or study.

59

In research methodology, research process, research design, sampling design method of

data collection is used in this project.

RESEARCH PROCESS

Research process consist of action or steps necessary for effective carry out research and

the desired of this steps-

1. Formulating the Research problem- The best way of understanding the problem

is to discuss it with ones own colleagues or with those having some expertise in the

matter.

2. Extensive Literature Survey- After formulating the problem a brief summery of

its should be written down. At this function research should undertake extensive

literature survey concerned with the problem.

3. Development of working hypothesis- After extensive literature survey,

researcher should state in clear terms the working hypothesis.

4. Preparing the research design- The research problem has bee formulated in

clear cut terms. The researcher will be required to prepare a research design. Basically

there are three types of research design.

- Exploratory research design.

- Descriptive research design.

- Hypothesis testing design.

60

5. Determining the sample designs- All the items under consideration in any field

of inquiry constitute a universe or population. There are two types of sampling method

are used to design sample.

- Random sampling

- Non random sampling

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis in a

manner that aims to combine relevance to research purpose in economy in procedure.

In this research project descriptive research design are designed. Because descriptive

research studies are those studies which are concerned which describing the

characteristics of particular individual or a group.

And it is used as-

- Formulating the objective of the studies.

- Designing the methods of data collective

- Selecting the sample

- Collecting the data

- Processing and analyzing the data

- Reporting the finding

61

SAMPLE DESIGN

To prepare sampling design we should follow these points.

1. Type of universe

2. Sampling unit

3. Source list

4. Size of the sample

5. Parameters of interest

6. Budgetary constraint

7. Sampling procedure

62

METHOD OF SAMPLING DESIGN

Sampling designs are basically of two types:-

1. Random sampling

2. Non-Random sampling

Random Sample: Random Sampling method is any method of sampling that utilizes

some type of random selection is the most important type of sampling. A ransom sample

allows a known probability to each unit when being selected. Such sampling is very

commonly used in lotteries and raffles. For ransom selection the researcher has to assure

that the different units in the population have equal probability of getting selected. For

this now a days one uses computer for generating random number for random sampling.

Non –Random Sampling: This type of sampling does not include any basis for

estimating the probability of including units of population in the sample. The units of

population are selected deliberately assumed to adequately present the population.

63

METHOD OF DATA COLLECTION

In this research project simple questionnaire method are used. Questionnaire method is

that method where a questionnaire is gives to the person which is concerned with the

topic and request to fill up this questionnaire.

A questionnaire consists of a number of questions printed in a definite order on a form.

ADVANTAGE OF QUESTIONNAIRE METHOD

1. There is low cost when the universe is large and is widely spread geo graphically.

2. It is free from the bias of interviewer.

3. Large sample can be made use of and thus the

4. Respondent has adequate time to give well thought answers.

Marketing research has become most important tool for decision making in the field of

marketing due to the following reasons.

Marketing is a media to fill the gap between products and consumers.

Business environment is changes very rapidly which needs to continuous

modification and improvement.

It provides correct and reliable information about customer, competitors and ones

own activities to the manager, so that the huge amount spent on marketing

activities to be utilized properly.

Since modern business is customer oriented, it (MR) provides the producer a

systematic and analytical approach based on assessment on customer

64

requirements, which helps the producer in maximization of net profit by

producing such products that fulfill the customer’s utmost level of satisfaction.

Thus marketing research is a systematic gathering, recording and analysis of data about

the problem facing the company. It helps the marketing manager to develop and analyze

new information, which is further helpful in developing marketing strategy. Now it can

be said that marketing research covers a very wide variety of activities ranging from

analysis of marketing potential and market share to studies of customers satisfaction and

purchase intention.

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METHODOLOGY

The basic needs of any research are data and method of collecting it. Data is an

information on the basis of which inference are drawn, therefore, data become a very

important and vital factor in research study. The main purpose behind framing a

methodology is to desirable the research procedure which includes research design, data

sources, data collection method, research instructions, and sampling plan.

RESEARCH DESIGN

This is the comprehensive master plan of the study undertaking given the general

statement of the method used and procedure followed. It help the researcher to insure

that the requisite data, in accordance with the topics of the study of all the aspects of

corporate management, it will also be consist of detail understanding all the competitive

brands , and an Questionnaire study will be conducted of own was descriptive in nature.

It is a kind of study, which is undertaken when the researcher is interested in knowing to

which vending machine is operating and tries to take an appointment so that I can

explain about my product. The purpose of this study is to insure about the “which type

of vending machine is installed in the company”. Thus, the research design used for

study was descriptive research design.

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COLLECTION OF DATA

DATA SOURCE: The various source of information can be broadly divided into two

categories.

Primary source

Secondary source

Primary source: Sources from where first hand information is gathered directly are

called PRIMARY DATA. In case of the above study, companies provided primary only

used for collecting data

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DATA COLLECTION METHOD

The following method is widely used for collecting data:-

Questionnaire

In the above-mentioned method, questionnaire methods were mainly used for the

undertaken topic. Survey method was mostly used for collecting data through

Questionnaire study with the helped of the framed questionnaire. regarding survey a

detailed study are conducted which is consists of areas covering of all the aspects of

corporate sector, this survey is also includes the detail understanding of all the

competitive brands of Ranbaxy Volini through the framed questionnaire to understand

the physiology of the competitors, further, an study will be conducted of own walk in

different companies to identify the hidden opportunities in the near by areas, according

to the need and permission of the very organization on behalf on which I was appointed

for the survey.

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LIMITATIONS

Although all the efforts have been made to make the results as accurate as possible. Yet

the survey suffers from some limitations. Following are some of the limitations of the

study. The purpose of mentioning these limitations is not to dilute the quality of the

results rather to enable the reader to judge the validity of the result regarding the study.

Following are some limitation of the study.

Sample sizes are limited due to certain constraint.

Lack of funds was the major obstruction to limit my survey to a small sample of

respondents.

Duration of study is also limited further intensive study field wise.

Finding of the study, which was done at

Last but not the least weather was the most important constraint because it changes

continuously. However, the limitation has been judiciously counter balanced as far as

practicable. However the research of this type cannot be absolutely fixed in a perpetual

framework of time but in spite of some inherent limitations, think that the very report

may be useful for the particular organization

Sampling Plan

I by myself decided to visit the places and peoples located in and around Delhi. I was

free to choose my areas where I want to work. Since the college was located in the east

region of national capital region i.e. Sahibabad, i choose to work near in and around

areas of the college, so the places where shopping plans, business firms have come out

over the industrial belt where several mobile users where easily available.

The conversation was spontaneous and pre-appointed were to collect the sample. But the

most of the places I visited spontaneously so as to know the image of the products. The

main motive was to find out the answers to the questionnaire. We filled the

questionnaire on behalf of the people so as to know the prospects and interest of the

people and their minds. Sampling Plan

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SWOT ANALYSIS

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SWOT ANALYSIS

SWOT:

Analysis is important technology by the company can reap its position future and can

over comes its negative aspects. Therefore, swot analysis plays an important role of

formulating the business strategies for any company, which is obvious best on its

strength, weakness, opportunity and threats.

SWOT ANALYSIS

It is one thing to discern attractive opportunities in the environment; it is another to have

the necessary competencies to succeed in these opportunities.

Each business needs to evaluate strengths and weaknesses periodically. In examining its

pattern of strengths and weaknesses, clearly the business does not have to correct all of

its weakness nor gloat about all of its strengths. The big question is whether the business

should limits itself to those opportunities where it now possesses the required strengths

or should consider better opportunities where it might have to acquire or develop certain

strengths.

A market opportunity is an area of need in which a company can perform profitably.

Opportunities can be listed and classified according to their attractiveness and the

success probability. The company’s success probability depends on whether its business

strengths not only match the key success requirements for operating in the target market

but also exceed those of its competitors. Mere competence does not constitute the

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competitive advantage. The best performing company will be one of that can generate

the greatest customer value and sustain it over time.

Some development in the external environment represents threats. An environmental

threat is a challenge posed by an unfavorable trend or development that would lead, in

the absence of defensive marketing action, to sales or profit deterioration.

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SWOT ANALYSIS OF RANBAXY

Strength of the organization

1. Strong brand name building capabilities.

2. Leadership in Novel Drug Delivery system.

3. Well built customer interface which is one of the highest customer coverage across

India.

4. With the futuristic approach the India operations attempts to capitalize on the fast

emerging high growth segments with innovative products & services.

5. Provides best services to its customers.

6. Has a dedicated well-equipped Technical team, sales and support teams for 24/7

assistance.

Weakness of the organization

1. Insufficient product promotion.

2. Lack of motivation in the chain in comparison to other companies.

3. Unawareness of the product

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Opportunity for the organization

1. Ranbaxy have lot of small account which it can cover.

2. Selected competitors in India.

.

Threat for the organization

1. Ranbaxy’s biggest threat is Cipla.

2. Non-response from the target customers.

3. Ranbaxy should concentrate on small accounts also like other strong competitors

in the market.

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DATA ANALYSIS

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DATA ANALYSIS AND INTERPRETATION

1- Do you feel any increase in the sale of VOLINI?

YES - 55%

NO -35%

Can’t Say -15%

0%

10%

20%

30%

40%

50%

60%

1

YES

NO

Can't Say

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2- Which topical analgesics do you sell most?

MOOV - 33%

IODEX - 22%

ZANDU - 7%

HIMINAI FAST RELIE- 5%

VOLINI - 15%

AMURTANJAN - 6%

ANY OTHER - 12%

MOOV

IODEX

ZANDU

HIMANI FAST RELIEF

VOLINI

AMURTANJAN

ANY OTHER

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3- Which SKU you sell most?

28 gm Gel - 50%

15gm Gel - 20%

35 gm Spray - 5%

55 gm Spray - 25%

15 gm Gel

28 gm Gel

35 gm Spray

55 gm Spray

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4- What is your feedback for VOLINI T.V. advertisement?

O.k. - 28%

Good - 24%

V.Good - 20%

Trial Generating - 15%

Clutter Breaking - 13%

O.K

Good

V.Good

Trial Generating

Clutter Breaking

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5. Have you seen the advertisement of VOLINI?

YES- 60% NO - 40%

YES

NO

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6.What is your feedback for ?

Sales Started O.K Good

15 gm Gel

35 gm Spray

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

15 gm Gel 35 gm Spray

15 gm Gel

35 gm Spray

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7:Do you advise or recommend medicines for pain to the

customers:

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8. Who are these consumers:

83

9: What you feel about prescription:

s

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10. How many prescription do you get in a day:

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11. Total quantity sell in a day:

86

12. Reasons behind the increase in sale of VOLINI:

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13.Do you feel seasonality affects on the sale of Volini:

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FINDINGS

According to the data analysis of my survey the following points are shorted out by me

regarding the VOLINI gel and spray:

The market of pharma in context of the TOPICAL ANALGESICS is very vast.

There is a very good market growth reported in the VOLINI gel but not in the

spray. This is due to-

I. Sample price.(Quantity/price)

II. Awareness of the customer.

III. Doctor’s prescription.

IV. Retailer’s preference.

V. Proper advertisement.

Due to the better composition of Diclofenac and long time effectiveness it is

easily preferred by Doctor’s & quickly accepted by the customers in comparison to its

other competitors such as MOOV, VOVERAN, IODEX, ZANDU etc.

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LIMITATIONS

Despite the possible efforts in concluding the research, they were some unavoidable

situations, which limited the scope of the project.

The study was restricted to DEHRADUN..

Time was the biggest constraint as all questionnaires were to be filled in person to

actual views, but all efforts were made to get information relevant to the research.

There may be some diversions in views as some people might give false

information in questionnaire, as they might not be in filling the form.

The sample size of 250 is small so there may be difference in the reality and the

findings.

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CONCLUSION

The project on corporate marketing gives the deep understanding of all the aspect of

corporate marketing, which covers all the key area of selling along with all the glamour

features such as brand reflecting, ambience, soothing music, staff with the apt attitude to

provide all the comfort required by the customers. I have tried my level best to cover all

the aspect of corporate marketing survey of VOLINI (Ranbaxy’s) along with the

competitor’s analysis of the pain reliever products either cream or gel. Inspite of some

limitations, the project is completed covering the detail study of marketing survey.

Really, this project was like a challenge for me, I have accepted and completed with the

best of my efforts, knowledge and skills. The study gives some of the conclusion, which

is follows:

RANBAXY established a strong position & doing well in the market.

Brand (Ranbaxy) loyalty is immense among the users.

Ranbaxy is the market leader among the users.

RANBAXY is an Indian brand so it is our greatest strength in the business.

There is a huge competition in corporate market relating the pharma products.

The companies are not trying to retain the customers; they are more interested in

broadening the customer base.

Though there is a stiff competition between different topical analgesics, they are

trying to capitalize on price & quality.

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There is a considerable awareness of different varieties in respect to their

qualities.

Price is an important factor, which influences the purchase decision of the users.

There has been an up gradation and considerable boom in the topical analgesics.

Users are found to be utterly conscious of the product they are using.

Eventually I conclude by saying that I fell top of the world when I think about my

association which is having their business not only within the country but also

having their business outside the country with these brands. It makes me feel top

of the world when I say that I have worked on market survey of VOLINI a

product of RANBAXY.

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RECOMMENDATION

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RECOMMENDATION

RECCOMMENDATION FOR VOLINI:

RECOMMENDATION

(1) Company should advertisement through various ways i.e. advertisement through

most readable magazines, news papers, which directly focus on the customers mind .

(2) As we have seen in the study persons are must affected by price & quality factor.

The company should concentrate over the price factor of the program so that new

customer could be attracted to wards the program although quality factor of the product

is very good.

(3) The company must conduct the satisfaction survey time to time so that company

could know the satisfaction level of the consumer. It will be more beneficial to company

in making new strategies & policies.

(4) Most of the person, who participated in the survey, has said that the program should

be divided in to small packages. So that any one could buy it easily.

(5) The price should be kept low in comparison to competitors product price & provide

maximum consumer satisfaction with best quality, which will increase sales volume.

(6) The awareness about the product is low in comparison to other strong competitor

like MOOV; the company should be more concentrate to increase the awareness of

product with the help of their employees.

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QUESTIONNAIRE

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QUESTIONNAIRE

1: Do you advise or recommend medicines for pain to customers?

Yes________ No ________

2: Which topical analgesics do you sell most?

     (a) Moov  

(b) Iodex

 (c) Zandu

(d) HFR

(e) Amurtanjan

(f) Volini

     (g) Any other

3: Do you sell VOLINI?

Yes________ No ________

4: Do you feel any increase in the sale of VOLINI?

Yes________ No ________

5: Which SKU you sell most?

    (a) 15g. Gel   (b) 28g. Gel (c) 35g sprays (d) 55g. Spray

6: What are the reasons behind the increase of sales of VOLINI?

     (a) Prescription      (b) 15g SKU    (c) T.V. add      (d) chemist push

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     (e) seasonality     (f)   new consumers    (g) any other

7: who are these consumers:

     (a)  Existing           (b) new

8: what you feel about Prescription:

    (a) increased          (b) decrease

9: How many Rx (prescription) do you get in a day?

     (a) 0--2    (b) 2--4   (c) 4--7     (d) more than 7

10: Can you please tell me the stock level of:

      VOLINI                              MOOV

(a) Gel 15g (a) Gel 25g

28g 35g

(b) Spray 35g

55g

11: What is your feedback for?

Better Good Ok

        15g gel=>

        35g spray=>

12: Have you seen the T.V. add of VOLINI:

         Yes___________             No___________

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13: Has it increases your no. of consumers:

         Yes___________             No___________

14: Do you feel seasonality affects on the sale of VOLINI:

          Yes__________              No___________

15: What would you like to suggest for increase the sale of VOLINI:

         (a)

         (b)

         (c)

         (d)

16: What is the total quantity (approx) sell in a day?

15 g Gel __________

28g Gel __________

35g spray _________

55g Spray _________

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BIBILIOGRAPHY

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BIBILIOGRAPHY

CONCERNED BOOKS

1.) MARKETING MANAGEMENT--- KOTLER PHILIP

2.) RESEARCH METHODOLOGY-----KOTHARI C.R.

MAGAZINES

1.) BUSINESS WORLD

2.) BUSINESS INDIA

NEWSPAPERS

1.) THE HINDUSTAN TIMES

2.) TIMES OF INDIA

INTERNET

www.google.com

www.ranbaxy.com

www.ask.com

www.yahoosearch.com

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