Nagarjuna Herbal Concentrates Limited

NAGARJUNA HERBAL CONCENTRATES LIMITED
INDUSTRY PROFILE
Ayurveda is the 5000 year’s old Indian System of medicine. The term evolved
from two words Ayur life and Veda means science .This system of medicine follows a
holistic approach, diagnosing not just the disease but the whole body constitution of the
patient. Today Ayurveda is gaining global popularity .The World Health Organization
recognizes Ayurveda as an alternative system of alternative system of medicines used
safest system of medicines.
Rejuvenation and therapeutic procedure are unique to Ayurveda .This comprehensive,

multidisciplinary system of medicine offers specialties like paediatrics, genetics
gynaecology, physiotherapy and rejuvenation.
Ayurveda was predominant in Kerala and most of the other parts of the India for
a long period .But newly developed fear of the side effects and long term ill effects of
allopathic medicines coupled with inefficiency to compact a large number of diseases
have brought the attention not only Kerala and India but whole world to the biologically
based medicines. Now it is the resurrection time of the science. A large number of new
organizations in India are entering in the area of Ayurvedic medicines manufacturing.
The curiosity of the whole world is to high and research and development taking place
all over the world in this science. Companies like Dabur and Himalaya are as strong as
any allopathic medicine company. A large number of new organizations in India are
entering in the area of Ayurvedic medicines manufacturing. The curiosity of the whole
is too high and the research and development taking place all over the world in the area
of this science. Companies like Dabur and Himalaya are as strong as any allopathic
medicine company. A large number of allopathic medicine manufacturing has started
including Ayurvedic medicines in this production list. Nagarjuna this small of Kerala
cell Ayurveda medicines to a tune of 20% of the total allopathic sales with number of
doctor’s institutions and medical shops not favourably comparable like this.
Apart from Ayurvedic medicines which is based on the traditional Indian

system of diagnosis and treatment. A large number of herbal medicines are also
available in the world market. In fact the growth of the market shores of these products
suppresses the growth of Ayurvedic market by several times. Easy method of
RAJIV GANDHI INSTITUTE OF TECHNOLOGY

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administration, convenient dosage, more easily understandable scientific explanation

makes it more attractive. More over the possibility of the standardization of herbal
medicines is better than the Ayurvedic medicines.
Any how growth is visible in different fields like traditional classical medicines,
herbal cosmetics etc. the herbal medicine market shows a very fast growth all over the
world and its potential is extremely good.
Ayurveda practiced in India using 100% botanical preparation helps to maintain

a healthy mind and body. Ayurveda has excellent remedies for diseases like
rheumatic disease, arthritis, paralysis, spondylitis etc visit Kerala in Indian Ayurveda
offers the Ayurvedic system of traditional form of medicine from India in which people
are treated as combination of Tridoshas or bio forces. Ayurvedic science dealing not
only with the treatment of some diseases but a complete way of life. Ayurveda deals
with Panchakarma cleansing and therapeutic treatment using herbal preparation
medicated oil manufactured as per the scared books of Ayurveda Dhanwanthari the God
of Ayurveda as per the Vedas.
Ayurveda is the science of life and congevity has a history long as human
civilization and even beyond. Ayurveda consider the nature as the prime provider of life
.Ayurveda is one of the great gift of the sage of ancient India to mankind and is
accepted as the oldest scientific medical system, which a ling record of clinical
experience .Ayurveda aims at physical, mental, and spiritual wellbeing of human being.
Ayurveda treats man as a whole; is a combination of mind and soul
Ayurveda=Ayur+Veda
(Time of Birth to Death)+ (knowledge)
Nobody can point any particular period about the origin of Ayurveda. Since is
mentioned as annadi in the text. Veda’s are the earliest literature available in India.
Ayurveda is considered as the branch of Adharva Veda, one among the four Veda’s viz:
Rig, Yejur, Sama, and Adharva. Ayurvedic scholars from subsequent generations
collected the material scattered and the Vedas and arraigned them systematically from
Samhithas.Ayurvedic treatment divided into eight segments such as Kaya
Chikitsa,damsht chikitsa,Jara Chikisa and Vaisha Chikitsa.

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COMPANY PROFILE
NAGARJUNA HERBAL CONCENTRATES LIMITED (NHCL)
Nagarjuna is a paradigm shift among Ayurvedic companies in that Nagarjuna

was the first corporate House in the Ayurvedic sector in Kerala as a against the family
owned Ayurvedic organizations .Beginning commercial production in 1989, Nagarjuna
has today notched up a preeminent position among frontline Ayurvedic companies,
marketing a board spectrum of Ayurvedic medicines and has achieved commendable
sales with national and international presence.
THE ENTRPRENEUR
Nagarjuna was established in the year 1989 by Sri. V.G. Devadas Nampoothirippad
with a few expert in the in the field of ayurveda in the board of management
THE FIRST
Nagarjuna has several first to its credit .Some of these pioneers are
The first to create synergy between Ayurveda and Ashtavaidia schools of

through in Ayurveda.
• The first to take the franchise model of business to service health needs,
on wide scale, across the state of Kerala, particularly to the rural area.
• The first to provide consistent focus on R&D actives in Ayurveda sector

in Kerala and established a full-fledged facility for the same.
• The first to create widespread awareness of medicinal plants among

people and to make its cultivation a popular as well as income generating
programme.
• The first to use modern promotional methods such as TV advertising on

a large scale to propagate Ayurveda.

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THE GROUP
Nagarjuna Ayurveda Group presently consists of the following organizations.
NAGARJUNA HERBAL CONCENTRATES LTD (NHCL)
The flag company and the GMP Certified manufacturing facility, which began
commercial production in 1989, is situated at Alakode Panchayat, Thodupuzha in
Kerala.
NAGARJUNA AYURVEDIC CENTRE LTD (NACL)
Is the hospital providing authentic Ayurvedic Treatments, situated on the banks of

Periyar at Kalady in Kerala, in an atmosphere of tranquillity and scenic charm
NAGARJUNA AYURVEDIC RETEAT LTD (NARL)
A holistic health care centre which provide alternative therapies besides Ayurveda,
including classes in Indian philosophy and culture / well supported by a well stocked
library .Began operation in 2006 at Moolamkuzhi east of Malayattoor in Kerala.
NAGARJUNA RESEARCH FOUNDATION (NARL)
Is a charitable trust whose trustees are eminent personalities in society ,besides

research activities ,NRF has done yeoman service in popularizing the cultivation of
MEDICINAL PLANTS ,through various activities such as planting and distribution of
sapling ,imparting technical advice, considering classes and giving awards yearly
(Oushadhamitram award) So far it has distributed over 25 lakhs sapling across Kerala.
Nature of business carried

The company is mainly dealing with Ayurvedic products and services. Manufacturing
of various Ayurvedic products and development of new medicines and treatment
methods which are suitable and without any side effects to the costumers.
The company provides assistance to all its group institutions and the institutions in the
same field with its products and other services

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Vision, Mission and Quality policy

Vision
 To be the best solution provider in the health care through Ayurveda

 Take actions that strengthen the company and inspire the best in other ( by
setting an example in relationships, integrity, honesty, humility and hard work)
Mission
“Restoration of Ayurveda to its original glory”
Quality policy
 Focusing on process and customer
 Developing and empowering people
 Encouraging creativity, innovation and team work
 Using effective information technology
Product profile
Nagarjuna has 427 traditional medicines and 27 patent medicines.
A. . TRADITIONAL MEDICINES
The important traditional medicines of Nagarjuna are:
1. Arishtams
2. Asavams
3. Oils
4. Kuzhambus
5. Ghurutham
6. Lahyams
7. Tablets

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8. Avarthis
9. Choornams
10. Kashayams
11. Kashaya choornams
1. Arishtams
These are fermented types of medicines prepared adding honey , Jiggery ,

sugar and the powder of some medicines including spices .These preparations
will have an alcohol content of 6-10% , which is generated due to the
fermentation process .Self –fermented preparations using Kashayams are called
Arishtams and using boiled and cooled water or juice of herbs is called
Asavams.
• Abayarishtam
• Amruitharishtam
• Asokarishtam
• Balarishtam
• Dasamoolarishtam
• Dasamoolajeerakam
2. Asavams
• Aravindasavam
• Bhringarajasam
• Chandanasavam
• Kanakasavam
• Kumaryasavam
• Lohasavam etc.
3. Oils
These are medicated oils. Decoction juice, milk etc, is added to oils like sesame
oil, coconut oil or and is heated with powdered raw drug, until the water content

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evaporate completely. In this process, the medicinal extracts of the raw drugs
make the oils medicated.
• Amruthaadhithailam
• Arimedhashilam
• Brahmeethailam
• Balaaguloochuaadithailam
• Eladi thailam
4. Kuzhambu
These are only for external application, unique to kerala. A mixture of sesame oil,
ghee and caster oil substitutes oil base of medicines for external application.
• kottam chukkadi kuzhambu

• panchasnecham
• dhanwntharam kuzhambu
• eladi kuzhambu
• kaarpasathyaathi kuzhambu
• saharachari kuzhambu
5. Ghurutham
Ghuruthams are medicated preparations of ghee. Ghee is medicated by adding

decoction, power, juice etc are processing until the ghee becomes medicated add
water freely.
• Amrutharaasha ghurutham
• Brhami ghurutham
• Swaaraswatha ghurutham
• Kalyanaka ghurutham
• Thriphala ghurutham

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7. Lehyams
Lehyams are semi- solid preparation of drug, prepared with the addition of jiggery
or sugar candy and boiled with the prescribed liquid and fine power of drugs, until
the correct constituency is obtained.
• Agasthya Rasayanam
• Ajamamsa Rasayanam
• Chinchady Lehyam
• Narasimha Rasayanam
• Mahibhara Lehyam
8. Tablets
• Chandrapra Gulika
• Chukkumthippladhy Gulika
• Kankayanam Gulika
• Karuttha Gulika
• Dhanandhraram Gulika
9. Aavarthies
Aavarthies come under the category of medical oil. Here the selected quantity of
oil being medicated by adding medicines repeatedly. The process of medication is
repeated to 7, 14, 41, to101 times. This enhances the potency of oil.
• Dhwanandhaaram 21 Aavarthy
10. Choornams
Choornams are preparation made from into power from using heavy
pulverized
• Ashta Choornams
• Elaadigama Choornams
• Hinguvancadi Choornams

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• Raasanadi Choornams
• Thaaieespatradi Choornams
11. Kashayams
Disintegrated drugs are concentrated and extracted into water. The drugs
are boiled in water and are concentrated
• Punarnnavady Kashayams
• Naadi Kashayams
• Dhashamoola Kashayams
• Balaageerakadhi Kashayams
• Indukandham Kashayam
12. Kashaya Choornams
• Amruthotharam Kashaya Choornams

• Aaragwadham Kashaya choornams
• Balaguloochyaadi kashaya choornams
• Dasamoolakaduthirayam kashaya choornams
• Dasamoolam kashaya choornams
B. PATENTS-PROPERIETARY MEDICINES
The important patents –proprietary medicines of Nagarjuna are
1. CARDOSTAB TABLET
Effective in hypertension due to any cause
2. GASON
It is a strong anti-flatulent drug
3. HAEMATONE
Ideal medicine for splenetic and hepatic disorder
4. HALIN
Effective in common cold, nasal congestion and sinusitis

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5. NAGARJUNA ELADASAMOOLA LEHYAM
For all kinds of cough, sore throat and dyspnoea
6. NATURAL TABLETS
For gas troubles, in-digestion etc.
7. RHEUMATIC BALM
External application in rheumatic etc.
8. SMRITHY GRANULES
It improves the normal brain functions. Excellent in improving memory, grasping
power intelligence thinking power especially in children
9. THALIS PATHRATHI TABLETS

Effective for cough, distaste, spruce and sore throat
10. NAGARJUNA HONEY

Honey packed in small bottles for use in homes and with food
OVER THE COUNTER PRODUCTS (OTC)
Name Packing
Ayurvedic tooth powder 50 g
Chyavanaprasam 250, 500 g 1 kg
Dandruff hair oil 100 ml
Digest drops 25 ml
Kerapookuladi Lahyams 400 g
Kids oil 100 ml
Nagarjuna agmark honey 50,100,200,500 g
Nagarjuna ayurvedic soap 15,75 g
Nagarjuna snana choornam 50 g
Nagarjuna thali podi 50 g
Neelibringadi keream 100 ml

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Special eladasamoola lehyam (40g) 1 jar
Tusker balm 10 g
Area of operation
The company has not limited its operations to the Boundaries of Kerala alone, but has
extended to 17 states outside Kerala. The main areas of operations are Karnataka,
Andhra Pradesh, Goa, Delhi, Maharashtra, Gujarat, U.P, M.P, Rajasthan, Orissa, and
Uttaranchal. Nearly 150 franchises with services of Doctors and quality medicines are
already operating in outside Kerala.
Russia, Sri Lanka, U V, Bahrain etc. are some new market, which they have opened last
year. They have already started a treatment centre in West Indies. Nagarjuna presences
in exports now extend to Asian, South American and Middle East markets, operations
have ready been started to countries such as Canada, Kuwait and other Gulf Countries,
Singapore etc...
Unlike the other market, these markets are steady market where the company gets
consistent businesses.
Ownership pattern
Authorised share capital - Rs. 50000000
Issued, subscribed & paid up Capital - Rs. 26480000
Earnings per share - Rs. 1.68
Reserves and surplus - Rs. 30218000
(Of the above shares 180772 shares has been issued as fully paid up bonus shares)
Key personnel:
Managing director - V.G. Devdas Namboodiripad
Directors - P.S.Vijayakumar

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- P.P.Namboodiri
- Leena Devdas
- V.G.Jathaveedan
- K. Rajan
- Vaidyabhooshanam K. Raghavan Thirumulpad
Bankers - State Bank of Travancore, SME
Branch Kalamassery
Competitor information
The major competitors of Nagarjuna Ayurvedic group are the following companies:-
i. Kottakkal aryavaidysala
ii. Ashtavaidyan Thaikkattu mooss Vaidyarnum Oushadhasala
iii. Pankaja Kasthuri herbal India limited
iv. Dhanwanthari vaidyasala
v. SD Pharmacy
vi. Oushadi
Among them the most popular or more competing companies are kottakkal
aryavaidyasala and oushadi oushadasala. A comparison between Nagarjuna and these
companies performance are as follows.
PARTICULARS NHCL KOTTAKKAL OUSHADI
MARKET SHARE 36% 28% 18%
NO.OF PRODUCTS 480 505 340
LABOUR FORCE 500 510 400

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CUSTOMER 71% 69% 58%

SATISFACTION
Infrastructural facilities
The company is set up in about 8 acres of land. There are three blocks of buildings to
run the business. It does not have its own medicinal plants garden. But they provided
the necessary seeds to the local people n let them grow the plants in their own garden
and procuring from them. It has various types of plant & machines to process the
various medicines. The various types of machines and tools that are used to develop the
products are:-
 Decentigator
 Pulp razor
 Drug boiler
 Pans –open pans and close pans
 Fermentation tanks
 Filling machines
 Evaporator
 Pressing machines
 Tabletting and capsuling machines
Canteen
The canteen facility is provided to employees. The canteen runs on contract basis with
the required terms and conditions. All the employees are provided with free canteen
facility and for this purpose there are some charges which they have to pay per year.

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Health
The premises of the company are kept clean. Accumulation of dirt and refuse is
removed daily. All the machines and equipment used are cleaned regularly.
Ventilation and temperature
The company is well ventilated and free circulation of free and fresh air ensured. There
are measuring instruments to measure the temperature as most of the part performed
with the help of heat.
Lighting
Every part of the work place is provided with lighting and artificial lighting is present.
Drinking water
Clean and cool drinking water is provided to employees of the company. The water
provided is purified only.
Toilet facilities
Latrine and urinal accommodation is provided and maintained cleanly and provided
separate latrines for men and women.
Achievements/ Awards
Nagarjuna Herbal Concentrates Ltd is also the first corporate house in the Ayurvedic
sector in Kerala. It also has the certification of ISO 9007:2000 and the GMP (Goods
manufacturing Practices) certification. It has also got The Green Channel Award from
the Tourism department.

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Work flow model
The work flow of Nagarjuna herbals concentrates Ltd are in the following way:-
PROCUREMENT OF RAW MATERIALS
WARE HOUSING
POWDERING
PROCESSING
QUALITY CERTIFICATE FROM

CONTROLLER
PACKING

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DESPATCHING
Future growth and prospects
Company will continue to focus more into providing quality Ayurvedic Treatment .The
infrastructure and other are being modernized to meet the changing demands .The
demand for quality Ayurvedic Treatment is increased and the most interesting factor is
that , people from abroad is showing involving in Ayurvedic Treatment . Company is
taking well efforts to capitalize this “Global Interest’ in Ayurvedic by providing quality
Treatments. This will help the company to grow both in terms of turnover and profits.
The company may also introduce certain quality products such products are developed
by the Research and Development Section of the company .The company may
introduce highly promotional strategy in Ayurveda. It will influence the more
consumers in the world wide. The company may develop various activities like
advertisement, free medical camp, seminars etc.
The company have the following plans to be implemented for the future growth and
prospectus:-
1) Continuation of new product development and form change of existing products
2) Standardisation of quality parameters of existing range of products

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3) Development of new products range for selected diseases and general health
care
4) Collaborative research with renowned institutions
5) GLP accreditation
McKENSY’S 7S FRAME WORK

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MCKENSY’S 7S FRAME WORK
STRUCTU
RE
STRATEG SYSTEMS
Y
SHARED
VALUES
SKILLS STYLE
STAFF

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It’s all very well devising a strategy, but you have to be able to implement it
if it’s to do any good. The seven S frame works first appeared in “The Art of Japanese
management” by Richard Pascal and Antony Athos in 1981. They had been looking at
how Japanese industry had been so successful, at around the same time that Tom Peters
and Robert waterman were exploring what made a company excellent. The Seven S
model was born at a meeting of the four authors in 1978. It went on to appear in “In
search of excellence” by Peters and Waterman, and was taken up as a basic tool by the
global management consultancy Mckensy: It’s sometimes known as the Mckensy’s 7S
model.
SOFT Ss
The 4Ss across the bottom of the model are less tangible, more cultural in nature, and
were termed as “soft Ss” by Mckensy:
Skills
The capabilities and competencies that exist within the company.
Shared values
The values and beliefs the company have. Ultimately they will guide employees
towards “valued” behaviour.
Staff
The company’s human resources and how they are developed, trained and motivated.
Style
The leadership approach of top management and the company’s overall operating
approach.
HARD Ss’
The three Ss across the top of the model are described as “Hard Ss”:

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Strategy
The directions and scope of the company over the long term
Structure
The basic organisation of the company, its departments, reporting lines, areas of
expertise and responsibility and how they are inter- related.
Systems
The Formal and informal procedures that govern daily activities covering everything
from management information system to the systems at the point of contact with the
customers.

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1. STRUCTURE
The structure of Nagarjuna herbal concentrates ltd is in the following way

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I. Production Department
The company’s structure of the production departments
as follows:
Production Manager
Asst. Manager
Department Officers
Supervisors
Workers
The Production plant is equipped with modern

machineries and operations are organized under watchful eyes of talented physicians
and health scientists. Production and manufacturing facilities are fully geared for mass
production of Ayurvedic medicines in strict adherence to ancient Ayurvedic scriptures.
Incorporation of modern technology for mass production, upholding traditional values
makes the facilities a well- integrated synthesis of tradition and modernity. The
company’s manufacturing operations are mechanized to a large extent by making
further contributions by way of hygiene, accuracy and speed.

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The production function involves two essential stages such as
1. Material Management Stage

2. Manufacturing Stage
In material management stage, arranging the various raw material in the production
form. In this stage the supervisors are check the quality of the material using the
production process. The company may adopt the MRP (Material Requirement
Planning).
In manufacturing stage, the raw materials are converted in to final product of the
company .In Ayurvedic product area the quality and effectiveness is more important. So
the company may appoint various supervisors in various production levels. The
supervisors are highly skilled and trained. They are checking the Quality and Quantity
of .specialized equipments. The production manager should prepare work study and
recording the production procedure .The production manager developed techniques that
focused on economic efficiency in manufacturing and recording the production
procedures.
II. Marketing Department

The structure of the marketing department of the organization as follows:
Marketing Manager
Area Sales Manager
Department Officers
Sales Representatives

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Nagarjuna has emerged as one of the top –most leader of Ayurveda Market in
Kerala by means of its marketing strength. The core of the marketing network is a chain
of exclusive franchisee clinics spread over the states of India namely Kerala,
Tamilnadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Goa and Delhi.
Nagarjuna has a very good and wide marketing net work, which includes over
800 franchisee outlets in the state of Kerala and 150 franchisees outside the state. The
unique features of these franchisee clinics are the availability of a doctor and
availability of Nagarjuna brand medicines at all times. Sales depots service these
franchisees. There are four sales depots in the state of Kerala. The entire marketing
operations are controlled from the Head Office situated at Thodupuzha of Idukki
district.
The marketing program includes propagation to Ayurvedic, which is facilitated

through sales promotion programs, social promotion programs, social marketing
activities like medical camps, seminars, awareness camps etc.
III. Finance Department

The company structure of financial department as follows:
Asst. General Manager (Finance)
Asst. Manager
Executives
Office Assistance
The main objectives of financial department as follows:

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 Planning and controlling of firms financial resources
 Managing the fund raising program
 Determining the various investment opportunities
 Prepare accurate accounts and statement of business operation
 Determine the financial position of the company
 To take dividend policy decision
 Arranging the working capital at timely
 Determining and analyzing the various accounting ratios
 To prepare effective and efficient budget in periodical manner
 Participating the company’s future growth planning programmed
In financial department all the office works are computerized .So the account
works are quick and accurate.
IV. Human Resources Department
HR Manager
Personnel officer Legal Officer
Executives
Dept. Staff

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The main functions of Human Resource Department are:
 Selection
Select the appropriate Human Resources in the

organization
 Recruitment
Search for prospective employees and stimulating them to apply for job in the
organization. The company may choose internal and external sources for the
recruitment function.
 Training and Development
The company provides quarterly or yearly training and development programme

to the employees of the organization. This program will be helpful for:
 Increasing productivity
 Increasing morale of the employees
 Increasing organizational stability
The company provides both on the job and off the job training programme.
V. Maintenance Department
Maintenance
officer
Technicians

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The Main functions of this department are follows:
 Building and civil construction supervision
 Maintaining equipments, machinery, material handling equipments, tools,

metrology tools, office equipment (computer, fax, Photo copy machines) etc.
Maintenance is an essential activity in every manufacturing firm .This department

managing the day to day problem of keeping the physical plant in good operating
condition.
VI. Purchase Department
Purchase manager
Assistant manager
Store manager
This department held with the purchasing function of the organization. The main
functions are:
 Purchasing right and required quality raw materials in appropriate time
 Purchase machinery, office furniture, tools etc.
 Purchasing the office assisting things like papers, pen, printing equipments etc.
 Selecting suitable suppliers
 Determining the materials stock levels Like EOQ (Economic Order Quality)
Recorder period etc.

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VII. Sales Department

AGM
Manager
Depot managers
This department may planning and controlling the sales activities of the concern .This
department is more important is more effective because sales turnover is the most
important factor in company’s growth level .This department is coordinating the all
sales action of the company. Exporting action is also controlled by the sales department.
The main functions of the department are the following:
 Determining distribution channel
 Selecting agency
 Collecting the sales report and analyzing that report
 To achieving the sales targets of the company
 To maintain proper sales procedure
The sales department is also coordinate with the marketing department of the company.
VIII. Research and Development

The Nagarjuna group holds the second position in the industry .This has been
possible through a systematic R&D programme under the able guidance of the
Technical Directors like Vaidyabhidhanam K.Raghavan Thirumulpad who is a modern

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Rishi of Ayurveda . The highly trained teams of scientists and physicians from different
have successfully developed several valuable formulations which have helped the group
of set new standards of excellence in natural healthcare.
The R&D division has evolved stringent methods of analyzing and testing of raw
material and end products .A dedicated team of Research Scientists and quality experts
are engaged in research and development of new formulation and standardization of
drugs. The Team led by persons of proven experience and creativity are focusing at
Raw material standardization and sharing of the technology with the industry.
• Production development with proof in allopathic language

• Process R &D for production process standardization
• Presenting the traditional products in the modern convenient forms
Nagarjuna has been successfully established standard parameters for medical herbs,
operating procedures in the manufacturing process as well as developed and fixation of
scientific criteria for the different classes of finished goods (medicines) .Introducing
standards in to packing also is an objective of this Research and Development wing.
Skill
A skill is the ability, knowledge and understanding to accomplish a task. Skills may be
defined as what the company does best that distinctive capabilities and competencies
that reside in the organisation.
The major skill that the employees in the organization required is experience. The
workers should have reasonable theoretical as well as practical knowledge in the
specified fields.
Style
The company have various departments for their functioning. The activities of
marketing departments are de-centralised manner whereas distribution is through

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various depots which consist of 2-3 districts of the state. Rest of all the departments’
activities are centralised.
The employees in the process of manufacturing are skilled to their own operation. The
supervisors in the various levels and field are having high attitude to motivate the
employees to achieve the organisational goals
The middle level and the top level management are highly dedicated and they can
coordinate the various functions.
The styles used by the NHCL are:
a) Top down approach
b) Authoritarian approach
a) Top down approach
It is a style of decision making where all the decisions flow from top management to
lower level workers. In this mill each and every decision is taken by management only.
The worker should not be involved in taking decisions. The decision taken by the top
management in day-to-day operation of the mill is: Salary increment, infrastructure
facilities, uniform decision etc.
In certain rare cases management using bottom-up style. The workers can give there
suggestions.
b) Authoritarian approach
The NHCL follows the authoritarian style of management. The management is all
powerful in the mill. The centralized decision making process follows in the mill
 Conducting of the meeting
 Mills rules and regulation
 Deciding of auditor

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Strategy
The company has various strategies which are formulated on the basis of the vision,
mission of the company. The main strategy is to carry on the business in such a way
where the customers and employees are kept as the supreme and satisfied.
NHCLs strategy is to attain total competence in their quality products

has served as the building block for creating a good brand. NHCL is focusing on the
well relationship with the employees.
The route the organization has to choose for its future growth, a plan that
the organization formulates to gain a substantial competitive advantage.
The management is not only targeting the Indian market but also the foreign
market. They are also thinking of increasing the sales within the country
Strategies are introduced to compete with the new upcoming

competitions because of the globalization. New marketing strategies are being
introduced by them
• Cost cutting strategies

• Operational excellence
• Product innovation
• Customer intimacy
System
All the departments in the company have their own information systems and are fully
computerised. Each and every department have its own systems and the company have
a common management information system. The company have a separate IT
department for setting up new and effective information system for different levels. The
major information systems in the company are

31
Merit rating system
After training is conducted performance appraisal of trainees is done in the mill.

Management will observe the candidate for 3 months after the training. Training -in
-charge observes of the trainees the attendance, discipline, dependability, interest on
work, job knowledge, skill etc.The method used in performance appraisal is Ranking
method.
Behaviour ranking method
Under this method, “the supervisor or the evaluator rates or arranges his men in order of
merit from the most efficient”.
In this method they will rank the employees depending upon the criteria like attendance,
working performance, behavior. The criteria and marks for ranking are given below:
4 marks for attendance, 3 marks for work performance and 2 marks for behaviour.If the
trainee scores good marks, the wages will be increased from Rs50 to Rs60 or from Rs
60 to 70, depending on performance. If the trainee scores the marks the trainee will be
removed from the job.
Staff
The company have around 500 workers which are employed to carry out the various
works of the company. Out of these 500 around 200 people are management staff and
rest of them are lower level workers. The company have got a lot number of dedicated
workers and they have been provided with attractive salary packages. In general, the
average salary package is Rs. 10,000 for administrative staff and Rs.8500 for lower
level workers.

32
Shared values
Nagarjuna herbals concentrate limited has got its own prestige and status among its
customers and competitors. Nagarjuna group stands the second largest company in
Kerala in the field of Ayurvedic products. The company has got a very nice picture
among the costumers. It makes the advantage of the market leader and social
beneficiary for the state. It has its own contribution in helping Kerala in the promotion
of the tourism. The workers are are more loyal to the company.
The basic philosophy of Corporate Governance at NHCL is to achieve business

excellence and to create and enhance the value for its Customers, Employees and
Business Associates and thereby to make a significant contribution to the Economy.
The company endeavors to achieve the highest level of transparency, accountability,
integrity and responsibility by following the best practices in corporate Governance.

33
SWOT ANALYSIS OF NHCL

34
SWOT ANALYSIS OF NAGARJUNA HERBALS CONCENTRATES LIMITED
Strength:
 Since Nagarjuna products are manufactured as per strict guidelines, they are able
to make high quality products.
 Company has a policy of continuous development and innovation in products that
enables it to maintain high marketing share.
 Frequent meeting between the owners and employers helps to build a good
employer-employee relationship.
 Efficient R&D departments to develop new and efficient products.
 Excellent brand image
 Good costumer relationship
 Wide variety of products
 Good relationship between management and trade union
 Good customer satisfaction index
Weakness:
 Lack of enough advertisement

 Low number of production and manufacturing units
 Lack of enough medicinal gardens
Opportunities:
 Growing market demand.

 Expanding its distribution area
 Link with tourism area
 Development of its own medicinal plants garden

35
 Scope for innovation of Research & Development
Treats:
 Transportation problems.
 Entry of duplicates
 Scarcity of raw materials
 Cut throat Competition (e.g.: Kottakkal, Oushadhi, Dhanwandhari)
 Customers may substitute other products

36
SUMMARY OF ANNUAL REPORT

FOR THE YEAR 2006-2007

37
Summary of the financial report
 Gross revenue of the company has been gone up by 411.83 lacs from the
past years revenue of 1830.6 lacs. The percentage of increase in gross revenue is
22.497%
 The profit before depreciation and preliminary expenses are increased by

19.16 lacs from the past years profit of 77.92 lacs. The percentage of increase in
the present year than that of previous year is 24.58%.
 The amount of profit transferred to general reserve in the present year is

44.54 lacs which is more by 21.43 lacs than that of previous years transfer. The
profit earned by the company is transferred to general reserve which made a
17.29% increase in the reserve fund.
 The company has employed its fund for the acquisition of investment in
outside the company. The total of investment in the present year is increased by
28,12,930 from the balance of previous year, i.e., 91.04 lacs. Thus the increase
percentage is 30.898%.
 The amount of net fixed assets of the company has been increased by
20,69,631. The percentage of increase is by 5.15%. The total amount of fixed
assets has been affected by the increased in depreciation rates.
 The amount of sundry debtors has been increased by 12769836. It makes

the company to employ more funds for its working capital management. The
percentage increase in the debtors’ is 37.23%.
 The net current assets of the company have been gone up by 8108391
than that of the previous year balance of 69901902. This lead to a 11.599%
increase in the total net current asset for the year.
 The earning per share for the year is 1.68 which is increased by 0.81 than
that of the EPS of 0.87.The percentage increase in the EPS is 93.10%. Thus the
company is giving a high return margin to its investors.

38
LEARNING EXPERIANCE DURING IN-PLANT TRAINING
 The company has got a very good quality control section which provides me the
important information regarding the quality assurance in the product development.
 During my in-plant training in Nagarjuna herbal concentrates limited, was a very

good experience all together. I learnt so many things about the company like how
the things are done in a company and how people work in teams. It is a company
where, even the plant manager sits down with workmen to work on machine. I got
to know how the bottle necks come when everything is going right in the
production and how to approach their remedies.
 I got to learn about the functioning of the HR department as my external guide

was a personnel officer. Further I learnt how promotions were given in the
company and how the incentives and pay is raised.
 I learnt the problems faced by a manager when he is leading a team of workers.

He has to understand the capabilities of each and every member of the team and
assign work according to it. Plant manager is responsible for every process through
which production happens in a plant.
 I could view a friendly atmosphere in the office premises among all both in
horizontal level as well as vertical. It makes the employees feel relaxed and will not
go through a stress at the time of their work. This boosts the morale of the
employees and promotes a sense of responsibility, co-operative attitudes and good
relationships and most importantly it improves the quality.

39
BIBLIOGRAPHY
1. www.nagarjun.com
2. www.google.co.in
3. Kothari C.R. (1997)Research Methodology ,New Delhi: Wishwa prakasham.
4. Philip Kottler, (2001) Marketing Management – The Millennium Edition, New
Delhi: Prentice Hall of India Pvt Ltd.

40
Annexure
FINANCIAL RESULTS Current year( 2006- Previous year (2005-

07) (Rs. in Lakhs) 06) (Rs. In Lakhs)
Gross revenue 2242.43 1830.6
Profit/ loss before depreciation and 97.08 77.92

preliminary expenses
Depreciation and preliminary 32.58 29.83

expenses
Profit (loss) before taxation 64.5 48.09
Provision for taxation 12.5 3.5
Deferred tax 4.10 17.14
Fringe benefit tax 3.15 4.35
Prior period taxes 0.21 0.00
Profit /loss carried to Balance sheet 44.54 23.11
Appropriations :
a) Proposed dividend 0.00 0.00
b) Tax on proposed dividend 0.00 0.00
c) General reserve 44.54 23.11

41
BALANCE SHEET
As at 31st march 2007 and as at 31st march 2006
PARTICULARS SCH. AS AT AS AT
Nos. 31.03.2007 31.03.2006
SOURSES OF FUNDS
I. Share holders fund:
Share capital 1 26480000 26480000
Share capital advance 0 0
II. Reserves and surplus 2 30217881 25763895
III. Loan funds
A) Secured loans 3 59813033 50453076
B) Unsecured loans 4 10241000 11474000
IV. Deferred tax liability 5450000 5040000
TOTAL 132201914 119210962
APPLIACTION OF FUNDS
I. Fixed asset
Gross block 5 77774727 72951902
Less: depreciation 35525954 32772760
Net block 42248773 40179142
Capital work in progress 25918 25918
II. Investments 6 11916930 9104000
III. Current assets, loans & 7

advances
a) Inventories 58367007 56618141
b) Sundry debtors 47066018 34296182
c) Cash & bank balances 1984628 5354196
d) Other current assets 105976 96145
e) Loans and advances 19199141 1418512

42
126722770 110549789
Less: current liabilities and 8 48712477 40647887

provisions
Net current assets 78010293 69901902
TOTAL 132201914 119210962
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED

31.03.2007 and 31.03.2006
PARTICULARS SCH. For the year ended For the year ended
NOS 31.03.2007 31.03.2006

43
I. Income
Sales 9 224243415 183036478
Stock differential 10 384938 6069837
Other income 11 1116036 1477765
225744389 190584181
II. Expenditure
Material consumed 12 101424087 86175002
Manufacturing administrative and 13 98478752 82747085

selling expenses
Excise duty 9165265 6782997
Financial charges 14 6967816 7085719
216035920 182790803
Profit/loss before depreciation 9708469 7793378
Depreciation 15 3258169 2983457
Operating profit 6450300 4809921
Less: provision for taxation
Current tax 1250000 350000
Deferred tax written back 410000 1714000
Fringe benefit tax 315000 435114
Prior period taxes 21314 0
Profit transferred to general 4453986 2310806

reserve
EPS fully paid up shares 1.68 0.87
RELEVANT RATIOS
I. Gross profit ratio
Gross profit/ net sales * 100 =
9708469/ 224243415 * 100 = 4.329%

44
The company is performing in a efficiently where the profitability ratio shows

4.329% of its annual sales.
II. Net profit ratio
Net profit/net sales*100 =
4453986/ 224243415 * 100= 1.986%
The earning capacity of the firm is satisfactory as it has 1.986% of the annual
sales as the profit margin which has to be transferred to the general reserve.
III. Current ratio
Current assets/ current liabilities
126722770/ 48712477 = 2.6:1
The company has a safe a very good current ratio as the standard ratio is 2:1
which gives the company more liquidity
IV. Liquid ratio
Liquid asset/ current liabilities =
68355763/ 48712477 = 1.403:1
The company is having a good liquid ratio of 1.403:1 where the standard ratio is
1:1.
V. Debt equity ratio
Total debt capital/ equity capital
75504033/56697881 =1.332:1
The debt equity ratio shows a satisfactory relation in the mix of debt and equity
of the firm where as the optimum one is 2:1
VI. Fixed assets ratio
Fixed assets/ Net sales = 40179142/ 224243415 = 0.179: 1.
To,
The HOD,

45
Department of MBA
Rajiv Gandhi institute of technology
Hebbala, R T Nagar post
Bangalore
Sir/madam,
Sub: weekly report-I regarding in-plant training
I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, I am undergoing

my in-plant training in Nagarjuna herbal concentrates limited on ..........., I reported to
the organisation . On the first day i underwent an introduction training which was
mandatory to all trainees. During this week i was told about the history of the
organisation, nature of business, its competitors, vision, mission, awards and
achievements.
Thank you
yours sincerely,
Tom.C.Saji
Internal guide
Prof. Pundareek vittala
Finance faculty
RGIT

46
To,
The HOD,
Department of MBA
Bangalore
Sir/madam,
Sub: weekly report-II regarding in-plant training
I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during this week I
had been to production department, human resources department and marketing
department.
Thank you
yours sincerely,
Tom.C.Saji
Internal guide
Finance faculty
RGIT

47
To,
The HOD,
Department of MBA
Bangalore
Sir/madam,
Sub: weekly report-III regarding in-plant training
I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, During this week i.
Started the McKensys 7S frame work. I also did the study in all other departments.
Thank you
yours sincerely,
Tom.C.Saji
Internal guide
Finance faculty
RGIT

48
To,
The HOD,
Department of MBA
Bangalore
Sir/madam,
Sub: weekly report-IVregarding in-plant training
I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during the last
week i did the DWOT analysis of the company. I also collected the balance sheet and
other subsidiary datas for the project completion.
Thank you
yours sincerely,
Tom.C.Saji
Internal guide
Prof. Pundareeka vittala
Finance faculty

49
RGIT
1. Main entrance of the company
2. The copy of ISO certificate

50
3. A visit in the herbal plant garden maintained in the company compound

51

52

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Rejuvenation and therapeutic procedure are unique to Ayurveda .This comprehensive,

Apart from Ayurvedic medicines which is based on the traditional Indian

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

administration, convenient dosage, more easily understandable scientific explanation

Ayurveda practiced in India using 100% botanical preparation helps to maintain

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

Nagarjuna is a paradigm shift among Ayurvedic companies in that Nagarjuna

The first to create synergy between Ayurveda and Ashtavaidia schools of

• The first to provide consistent focus on R&D actives in Ayurveda sector

• The first to create widespread awareness of medicinal plants among

• The first to use modern promotional methods such as TV advertising on

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

Nagarjuna Ayurveda Group presently consists of the following organizations.

NAGARJUNA HERBAL CONCENTRATES LTD (NHCL)

NAGARJUNA AYURVEDIC CENTRE LTD (NACL)

Is the hospital providing authentic Ayurvedic Treatments, situated on the banks of

NAGARJUNA AYURVEDIC RETEAT LTD (NARL)

NAGARJUNA RESEARCH FOUNDATION (NARL)

Is a charitable trust whose trustees are eminent personalities in society ,besides

Nature of business carried

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

Vision, Mission and Quality policy

 To be the best solution provider in the health care through Ayurveda

The important traditional medicines of Nagarjuna are:

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

11. Kashaya choornams

These are fermented types of medicines prepared adding honey , Jiggery ,

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

• kottam chukkadi kuzhambu

Ghuruthams are medicated preparations of ghee. Ghee is medicated by adding

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

• Amruthotharam Kashaya Choornams

The important patents –proprietary medicines of Nagarjuna are

Effective in hypertension due to any cause

It is a strong anti-flatulent drug

Ideal medicine for splenetic and hepatic disorder

Effective in common cold, nasal congestion and sinusitis

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

5. NAGARJUNA ELADASAMOOLA LEHYAM

For all kinds of cough, sore throat and dyspnoea

For gas troubles, in-digestion etc.

9. THALIS PATHRATHI TABLETS

10. NAGARJUNA HONEY

OVER THE COUNTER PRODUCTS (OTC)

Ayurvedic tooth powder 50 g

Chyavanaprasam 250, 500 g 1 kg

Dandruff hair oil 100 ml

Kerapookuladi Lahyams 400 g

Kids oil 100 ml

Nagarjuna agmark honey 50,100,200,500 g

Nagarjuna ayurvedic soap 15,75 g

Nagarjuna snana choornam 50 g

Nagarjuna thali podi 50 g

Neelibringadi keream 100 ml

RAJIV GANDHI INSTITUTE OF TECHNOLOGY

Special eladasamoola lehyam (40g) 1 jar

Authorised share capital - Rs. 50000000

Issued, subscribed & paid up Capital - Rs. 26480000

Earnings per share - Rs. 1.68

Reserves and surplus - Rs. 30218000

Managing director - V.G. Devdas Namboodiripad