ORGANIZATIONAL STUDY AT SANGROSE LABORATORIES PVT.LTD.

BANGALORE

UNIVERSITY

In partial fulfillment of the requirement For the award of degree in

MASTER OF BUSINESS MANAGEMENT

Submitted by VISHNU NAIR.R
(Reg.no:11YYCMA024) Under the guidance of Mrs.Neelima.m.k

PADMASHREE INSTITUTE OF MANAGEMENT STUDIES

(Approved by AICTE, Govt. of India, New Delhi, Affiliated to Bangalore University & Recognized By GOVT. OF KARNATAKA)

BANGALORE-60 Batch: 2011-13

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STUDENT`S DECLARATION
I, hereby declare that this project report titled ORGANISATIONAL STUDY AT SANGROSE LABORATORIES PVT Ltd, MAVELIKARAIs prepared by me during the academic year 2011-2012 under the guidance of Mrs.Neelima.m.k, Assistant Professor, Padmashree Institute of Management & sciences, Bangalore. I also declare that this project has been conducted in partial fulfillment of the requirement for the award of the degree of MBA under Bangalore University. This is my original work and not submitted for the award of any other degree, diploma, fellowship or any other similar title.

PLACE: BANGALORE

VISHNU NAIR.R Reg: 11YYCMA024

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AKNOWLEDGEMENT
I hereby express my sincere thanks to the almighty for being with me throughout the completion of project in successful manner. I express my sincere thanks to Mrs.Neelima.m.k, Assistant Professor, Padmashree Institute of Management & sciences, Bangalore. I thankfully extent my gratitude to all the members of SANGROSE

LABORATORIES PVT Ltd, MAVELIKARA for giving me valuable information and supports to me in the preparation of project work. I extent affectionately thanks to my parents and friends for their inspiration and support during the completion of my project report.

VISHNU NAIR.R

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TABLE OF CONTENTS CHAPTER NO. Title page Declaration Acknowledgement PARTICULARS PAGE NO.

1 2 3 4 5 6

Introduction Industry profile Company profile Learning and Findings

SWOT Analysis
Conclusion Bibliography and reference

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CHAPTER 1 INTRODUCTION

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1.1. INTRODUCTION

An organization is a group of people who form a business, club etc together in order to achieve a particular aim. Organization is a powerhouse of resources through which manufacturing and production operation is effectively carried out. It comes into existence when several minds are bound through effective and efficient communication along with harmonious interpersonal relation for contributing towards a common endeavor. Every organization has different functional departments like finance, human resource, marketing, production, purchase etc. In other words Organization can be defined as A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. Organization study is a direct investigation about the functions and activities carried out in an organization. Organizational study is a major learning tool in the MBA curriculum. It provides the opportunity to apply knowledge and the skills in the real world. Organizational structure refers to the formal established pattern of relationship among the various parts of a firm or any organization. In this organizational study at SANGROSE LABORATORIES Pvt Ltd, Mavelikara is an attempt made to study and understand about the basic elements of an organization including the functional and the management aspects. SANGROSE LABORATORIES Pvt Ltd, Mavelikara is the only company in Kerala manufacturing CLOFAZIMINE and is the 3rd in India. The company plays an important role in the National Leprosy Education Program {NLEP} introduced by the Govt. of India under the aid of W.H.O. The study throws light into the pharmaceutical industry in general, the structure and the functioning of different departments, nature of business, vision and mission, quality policy, product profile, area of operation, competitors information related to SANGROSE LABORATORIES Pvt Ltd, Mavelikara. The study helped me to understand about the medicine condition prevailing in the pharmaceutical sector and the constraints which are being faced by the pharmaceutical industry in the Indian economy, the pharmaceutical industry is the single most export earner {around 30%} of the gross exports earning for India and it is the second most employment provider after agriculture sector.

1.2. SCOPE OF STUDY

Organizational study is carried out mainly with an object of covering all the functional areas of management thereby gaining practical experience in organization. The geographical scope of the study was SANGROSE LABORATORIES PVT LTD., Mavelikara. This project aims to study the overall organizational structure, It helps to understand the manner in which various tasks and activities are assigned to different people and departments, the manner in which separate activities are coordinated, the power, the status, the hierarchical relationships within the organization, the planned and formalized policies, the procedures and controls that guide the activities and relationships and the flow of information and communication network.
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Organization study provides an insight into the fascinating world of management study. It helps to incorporate the theoretical knowledge with practical knowledge and also this is a stepping stone for the final project. It provides a practical constraints faced by the managers while putting theory into practice. It helps in knowing how they tactically solve any problem encountered by them and helps in gaining knowledge about the real life situations faced by the managers in each stage of work.

1.3. OBJECTIVES OF THE STUDY

The objectives of the organizational study conducted at THE SANGROSE LABORATORIES Pvt Ltd. MAVELIKARA are the following:1) To make theoretical beliefs into practical knowledge. 2) To acquire knowledge about the financial as well as the managerial aspects of the company. 3) To understand about the origin, history, and future plans of the company. 4) To study in detail the elementary structure and the various functions of different departments in the organization. 5) To make a brief study on the industrial sector to which the company belongs to. 6) To understand the policies and procedures followed by the company for its smooth functioning. 7) To understand about the products and services provided by the company. 8) To understand the strength, weakness, opportunities, and threats, of the organization and thereby providing suggestions for the company to improve its efficiency.

1.4. METHODOLOGY OF THE STUDY

The methodology includes collection and observation of primary and secondary data. Both primary and secondary data were used for the completion of the organizational study. Primary data were collected through personal interview and secondary data were collected from the organizational manual and different departmental manuals, brochures, records and websites. Research Method

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Research in common refers to search of knowledge. It is a systematic search for information on a specific topic. Research method is understood as all those methods/techniques that are use for conducting a research. It refers to the behavior and instruments used in selecting and constructing research technique. Before going into the details of the study a brief view of research problem, research design, sample design and data collected are given below. The chapter presents the design of the study and the approaches adopted for the study. It also gives a detailed description of the research process. Research Process Research process consists of a series of actions or steps necessary to effectively carry out research. Steps in Research Process are:1. Formulating the Research Problem 2. Extensive Literature Review 3. Developing the objectives 4. Preparing the Research Design including Sample Design 5. Collecting the Data 6. Analysis of Data 7. Generalization and Interpretation 8. Preparation of the Report or Presentation of Results-Formal writes ups of Conclusions reached. Research problem A research problem is the situation that causes the researcher to feel apprehensive, confused and ill at ease. It is the demarcation of a problem area within a certain context involving the WHO or WHAT, the WHERE, the WHEN and the WHY of the problem situation. There are many problem situations that may give rise to research. Three sources usually contribute to problem identification. Own experience or the experience of others may be a source of problem supply. A second source could be scientific literature. You may read about certain findings and notice that a certain field was not covered. This could lead to a research problem. Theories could be a third source. Shortcomings in theories could be researched. Research Design Research design is the conceptual structure within which research would be conducted. Research design is a framework or blueprint for conducting a research project. Research design is needed because it facilitates the smooth sailing of the various research operations. The function of research design is to provide for the collection of relevant information with minimal expenditure of effort, time and money. Research design can be divided into fixed and flexible research designs. Fixed designs are normally theory driven; otherwise its impossible to know in advance which variables need to be controlled and measured. Often, these variables are measured quantitatively. Flexible designs allow for more freedom during the data collection process. Sample Design Sample design deals with the method of selecting items to be observed. It is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the research would adopt in selecting items for the sample. Methods of Data Collection
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1) Primary data Primary data are those data that are collected directly through discussion and interviewing with managers, employees and staff of the company. It was carried out in a structured way. Interview The data was collected through personal interview with managers, company officials and employees of the organization. Observation During the period of forty five days continues organization study the observation of the general functioning of the organization was carried out and this was very much helpful to acquire information from the company.

2) Secondary data In addition to primary data, secondary sources of data were also obtained for the studyfrom the following sources. Company website www.sangroselabs.com Annual report of the company Published documents of the company Review of Official records, etc.

3) Analysis of data The analysis of data is the most skilled task in the research process. Analysis means a critical examination of the assembled and grouped data for studying the characteristics of the subject under study and for determining the patterns of a relationship among the variables. The data has been codified, tabulated and arranged in a scientific manner.

1.5 DURATION OF THE STUDY

The study entitled an Organizational Study at Sangrose Laboratories Pvt Ltd. covers a period of one month and fifteen days {45days} that is from 1st August to 15th September.

1.5. LIMITATIONS OF THE STUDY

1. 2. 3. 4. 5.

The time allotted for conducting the organizational study was only 45 days; it is not enough for understanding about the organization in detail. Environment was not conducive for the study. Unavailability of some official records/documents which were confidential. The companys rules and regulation prevented the employees from disclosing confidential matters. Unavailability of financial statements of the company; hence the financial position cannot be analyzed.
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6. 7. 8.

The study was limited only during the day hours. So interactions with the employees in the night shift were not possible. The study was conducted in a single organization; hence comparison with similar organization was not possible. All the employees were in a busy schedule, hence there was an inconvenience in collecting enough suggestions and opinions.

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9.

CHAPTER 2 INDUSTRY PROFILE

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2.1. ABOUT THE INDUSTRY

2.1.1 PHARMACEUTICAL INDUSTRY

Pharmacy is the art and science of preparing and dispensing drugs and medicines. It is a health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs. The modern pharmaceutical industry laid its foundations in the beginning of the previous century in 1901, by the establishment of Bengal chemicals & pharmaceuticals Ltd. {BPCL} was established in Calcutta. India took some steps to strengthen its drugs and pharmaceutical field, after independence. 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. Today India is in a position to meet 70% of the countries requirements of drugs and almost all the demands for formulation. Indian pharmaceutical industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually.

2.1.2 INDIAN PHARMACEUTICAL INDUSTRY

Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. It provided employment opportunities to millions and ensures that essential drugs at affordable prices are available to the vast population on India. Indian Pharmaceutical Industry has attained wide ranging capabilities in the complex field of drug manufacture and technology. From simple pain killers to sophisticated antibiotics and complex cardiac compounds, almost every type of drug is made indigenously. The Indian pharmaceutical sector has come a long way, being almost nonexistent before 1970 to a prominent provider of healthcare products, meeting almost 95 per cent of the country's pharmaceuticals needs. Soon this industry will overtake the Manufacturing sector in India. Pharmaceutical Industry in India is world's fourth largest industry by volume. India is the preferred nation for pharmaceutical generation, with low charges for research and development as well as production of drugs. And the pharmaceutical companies in India have made full use of the favorable environment offered by the country to make it big. The workforce and technological proficiency of pharmaceutical companies in India ensures the growth of the industry on a global scale as well as within India. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units with severe price competition and government price control. It has expanded drastically in the last two decades. There are about 250 large units that control 70 per cent of the market with market leader holding nearly 7 per cent of the market share and about 8000 Small Scale Units together which form the core of the pharmaceutical industry in India. These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.

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Over 60 per cent of Indias bulk drug production is exported. Indias pharmaceutical exports are to the tune of Rs87 billion, of which formulations contribute nearly 55 per cent and the rest 45 per cent comes from bulk drugs. In financial year 2005, exports grew by 21 per cent. The Indian pharmaceutical market has been forecasted to grow to as much as US$ 25 billion by 2010 as per Organization of Pharmaceutical Producers of India (OPPI) estimates. However, Espicoms market projections forecast more modest but stable annual market growth of around 7.2 per cent, putting the market at US$ 11.6 billion by 2009. Following the de-licensing of the Pharmaceutical Industry, industrial licensing for most of the drugs and pharmaceutical products has been done away. Manufacturers are free to produce any drugs duly approved by the control authority. Technically 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 increasing balance of trade. The pharmaceutical industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take all the international market.

2.1.3 PRODUCT CHARACTERIZATION

The pharmaceutical industry manufactures bulk substances pharmaceutical intermediaries and active ingredients which are further processed into finished products. Medicinal and Botanicals (SIC 2833) Companies in the Medicinal and Botanical industry category are primarily engaged in:1) Manufacturing bulk organic and inorganic medicinal chemicals and their derivatives. 2) Processing (grading, grinding and milling) bulk botanical drugs and herbs. The industry is made up of establishments or facilities that manufacture products of natural origin, hormonal products and basic vitamins, as well as those that isolate active medicinal principals such as alkaloids from botanical drugs and herbs (OMB, 1987). These substances are used as active ingredients for the Pharmaceutical Preparations Industry category. Companies often produce both Medicinal and Botanical and Pharmaceutical Preparations at the same facility. Pharmaceutical Preparations (SIC 2834) The pharmaceutical Preparations industry category is made up of companies that manufacture, fabricate and process raw materials into pharmaceutical preparations for human and veterinary uses. Finished products are sold in various dosages forms including, for example, tablets, capsules, ointments, solutions, suspensions, and powders. These are 1) preparations aimed for use mainly by dental, medical, or veterinary professionals, and 2) those aimed for use by patients and the general public (OMB, 1987 ). A more in depth discussion of these finished products is provided in Section III.A.3. Pharmaceutical products also are often classified in terms of their availability to the general public. Both prescription and over the counter {OTC} drugs are available to the public. Prescription drugs can be purchased only with a prescription from a licensed health care professional authorized to prescribe, while OTC drugs may be purchased without a prescription. The FDA will consider approving the switch of a drug from prescription to OTC when the manufacturer presents evidence that consumers can self-diagnose the condition for which the drug is approved. i.e., cold or seasonal allergy, and directions for use can be written for the consumer (PHRMA, 1997)
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In Vivo and in Diagnostic Substances (SIC 2835) and Biological Products (SIC 2836) In Vivo and in Vitro Diagnostic Substances industry category (SIC 2835) includes facilities that manufacture in Vivo (tested inside a living organism) and in Vitro (tested outside of a living organism) diagnostic substances. They produce chemicals, biological, and radioactive substance used in diagnosing and monitoring health. The biological products industry category (SIC 2836) produces bacterial and virus vaccines, toxoids, serums, plasmas, and other blood derivatives for human and veterinary use, other than in Vitro and in Vivo diagnostic substances (OMB, 1987).

Advantages in India Competent workforce; India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated workforce and English is commonly used, Professional services are easily available. Cost effective chemical synthesis; Its track record of development, particularly in the area of improved cost beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs. Legal and financial framework; India has a 53 year old democracy and hence has a solid legal framework and strong financial market. There is already an establishment international industry and business community.

2.2. INDUSTRIAL LEADERS

Top ten pharmaceutical companies in India {along with their 2007 turnover}:1. Ranbaxy Laboratories :By sales India's largest pharma firm with the returns touching ` 4,198.96 crore (`41.989 billion) in 2007

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2. Dr. Reddy's Laboratories:With a turnover of ` 4,162.25 crore (` 41.622 billion) in 2007, Dr Reddy's lab is second largest

3. Cipla: Cipla generated an annual revenue of ` 3,763.72 crore (` 37.637 billion) in 2007 making itself the third largest pharmaceutical firms.

4. Sun Pharmaceuticals:Sun Pharma Industries had an overall earnings of ` 2,463.59 crore (` 24.635 billion) in 2007.

5. Lupin Labs: Lupin Labs yielded total profit of ` 2,215.52 crore (` 22.155 billion) in 2007.

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6. Aurobindo Pharma:India's sixth largest pharma company by sales, Aurobindo posted ` 2,080.19 crore (`20.801 billion) annual returns in 2007.

7. Glaxo Smith Kline:With 2007 turnover touching ` 1,773.41 crore (` 17.734 billion, GSK is India's seventh largest pharma firm.

8. Cadila Healthcare:Cadila's earnings was ` 1,613.00 crore (` 16.13 billion) in the fiscal year 2007, establishing itself as India's eight largest drug company.

9. Aventis Pharma:With an annual revenue of ` 983.80 crore (` 9.838 billion) in 2007, Aventis Pharma has made a place for itself in the top ten pharma companies in India.

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10. Ipca Laboratories:Ipca is India's 10th largest pharma company by sales and in 2007 it had a turnover of` 980.44 crore (` 9.804 billion)

2.3. MARKET SHARE

India has one of the fastest growing pharmaceutical markets in the world. In 2006-07, this market was valued at over US$ 7 Billion. Driven by a huge patient base, increasing incomes, improving healthcare infrastructure and strong penetration of health insurance. Drugs for acute diseases presently dominate this market; however, the increasing penetration of lifestyle-related diseases is expected to fuel the growth of drugs targeting chronic diseases. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control around 70 per cent of the market with market leader holding nearly 7 per cent of the market share. It is an extremely fragmented market with severe price competition and government price control. Consumer spending on healthcare went up from 4% of GDP in 1995 to 7% in 2007, that number is expected to rise to 13% of GDP by 2015.

2.4. MARKET PERFORMANCE

A highly organized sector, the Indian pharmaceutical industry is estimated to be worth $4.5 billion, growing at about 8% to 9% every year. The period of the 1995Padmashree Institute Of Management & Sciences Page 17

2008 (i.e. the Post-TRIPS period) saw the strongest performance of the Indian pharmaceutical industry on several fronts. The Indian Pharma Industry has been performing exceptionally well with turnover rising from about Rs. 10 crore (US$ 2 million) in 1948 to a healthy Rs. 1,17,000 crore (US$ 26 billion) in 2010. Pharma exports are booming at Rs. 62,500 crore (US$ 13.9 billion), with formulation exports at US$ 5.8 billion and APIs at Us$ 8.1 billion. In the financial year 2010, imports were Rs,20 billion while exports were Rs.87 billion The country ranks 3rd worldwide by volume of production and 14th by 2value thereby accounting for around 10% of worlds production by volume and 1.5% by value. India continues to lead in the number of drug master files (DMF) filed with the US Food and Drug Administration (FDA). Share of Indian Companies in the Total DMFs filed with the US FDA

Year 2000 2001 2002 2003 2004 2005 2006 2007

India as % of global 14.5 18.6 21.1 30.7 37.9 39.8 43.9 48.7

2.5. ESTIMATION OF EARNINGS

Indian pharmaceutical industry whose output exceeded US$ 4.3billion in fiscal in 2000 is one of the fastest growing markets in the world. In terms of value, the industry accounts for less than 2% of the global market. However, this industry is expected to grow at rates nearly 200% higher than the global market in the near future.

2.6. GROWTH OF THE INDUSTRY

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control around 70 per cent of the market with market leader holding nearly 7 per cent of the market share. It is an extremely fragmented market with severe price competition and government price control. Consumer spending on healthcare went up from 4% of GDP in 1995 to 7% in 2007, that number is expected to rise to 13% of GDP by 2015.
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2.7 SCOPE Modernization of existing unit to improve quality and to meet the market requirement and to convert as centre of Excellence. Establish branches in neighboring state. Establishment of export oriented production unit for high demand items. Computerization of entire business. Establishment of new processing and value addition units. Strengthening of Quality Control and Drug testing laboratory. Starting of Pharmacy Institute of Training and Continuing Medical Education.

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CHAPTER 3 COMPANY PROFILE

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3.1. ABOUT THE COMPANY

Sangrose Laboratories was incorporated in the year 1987 as a private limited company as per the Indian Companies Act 1956. The chief mastermind behind the initiation of this venture is Mr. C.K.Alexander. The company has a registered as a small industry with the main objective of manufacturing basic drugs, located in the Industrial Estate; kollakadavu in vettiyar ; village , Mavellikera Taluk in the notified industrial backward district aleppy , in kerala state . The company is having a branch office in piramal nagar , Bombay . The commercial production of the basic drug CLOFAZIMINE was started in the year 1989 with the initial capacity of one ton/annum and enhanced its production capacity to 14 tons per annum in 1994.CLOFAZIMINE is the main drug recommended by the World Health Organization { WHO } for the treatment of Leprosy under its Multi Drug Therapy {M.D.T} and is also used for the treatment of T.B and Aids patients . SANGROSE LABORATORIES PVT LTD. is the only company in Kerala manufacturing this drug and is the 3rd India . The other two being multinational competition is avoided by maintaining the quality of the product . The company commenced the soft gelatin encapsulation unit alongside, in the same year. The Company also initiated the formulation units for other dosage forms including Tablets, Hard Gelatin Capsules, Creams, Ointments and Liquid Orals. Currently the company has a full fledged API Manufacturing Unit for Clofazimine IP/BP/ Ph.Eur and has a well equipped Formulation Unit wherein over 300 different formulations are manufactured. Recently SANGROSE LABORATORIES PVT LTD. is developed in manufacturing and services. The company provides exporting , manufacturing , marketing of medicines. Manufacturing for other companies medicines { as per order } . The company plays an important role in the National Leprosy Education Program { NLEP } introduced by the Govt. of India under the aid of WHO.

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3.1.2 LAYOUT AND DESIGN OF THE FIRM Sangrose Laboratories Pvt Ltd is fully equipped with plant and machinery that are necessary for manufacturing 18 tons basic drugs per annum and 10lakhs capsules per shift . All the machines and tools are of the good quality and are in good working condition . The factory also has campus area for smooth working.

3.1.3 ORGANISATION AND MANAGEMENT Sangrose Laboratories Pvt Ltd was incorporated in 1987 under the companies Act, 1956 . the authorized share capital of the company is 24000 equity shares of Rs.100 each. The unit was set up as a small scale industry. The present director of the company are Mr.Thomas Samuel and Mr.George Mathew with Mr. C.K.Alexander as the managing director.

The managing director is at power to make decision for smooth running of this company. He formulates all policies, rules and regulations. He also co-ordinates and controls the management function and fixes responsibility and has this field in the rapid development of the company. The factory functions under the supervision and control of managers. they have the sufficient knowledge of activities carried and direct control over workers.

3.1.4 PRESENT STATUS Since this is the only company that manufactures CLOFAZMINE in Kerala they have the total market share. The products basically capsules have captured the entire market in Kerala because of the help from central purchasing committee. They enjoy complete monopoly by beating the upcoming manufacturers. Currently they dont have tough competitors as they bench mark their product with the national level manufacturers. Nowadays a lot of promotional activities are on the move for better publicity and to reduce the competition. As mentioned before Sangrose ranks 3rd in India.

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3.2 VISION AND MISSION

VISION "Reaching out globally to help serve mankind" To make it possible for common man to make avail of therapeutically effective medicine to prevent and cure diseases, to ease suffering and to enhance the quality of life and also to become a leader in the Indian Pharmaceutical Industry and to be a significant global player , providing customer delight and enhancing shareholders value. MISSION Innovation We create an atmosphere suitable for motivating individuals to bring out a will to experiment and in turn help one to excel. Friendly environment At Sangrose, the self-esteem and dignity of an individual is upheld. We provide an open cultured environment for expression of views and ideas. Teamwork

At Sangrose, we create a better sense of teamwork, thus enabling individual accomplishments towards organizational objective and in turn developing the self. Core values : C -> Care for customers R -> Respect for customers E -> Excellent team work A -> Always learning T -> Trust mutually E -> Ethical practices

3.3 MARKET SHARE IN THE INDUSTRY

Sangrose Laboratories Pvt Ltd have 30% market share all over Indian Pharmaceutical Industry.

3.4 AWARDS AND ACHIEVEMENTS

Nominated as the best Small Scale Industry in Aleppy district consecutively for 3 years and forth in the state. Selected as one of the best entrepreneur of the state.

Gold card member of Kerala Financial Corporation, the

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agency based on growth, expansion and prompt repayment. The firm has been closely associated with National Leprosy Eradication Program of Govt of India by being able to supply CLOFAZIMINE for the past five years.

Supplying capsules and tablets as per the order required from government and central purchase committee.

3.5 POLICY STATEMENT OF THE COMPANY

QUALITY POLICY During refining the sample are analysed in the process is controlled according to sample analysis. Medicines manufactured in the company are every time subject to the stringent and uncompromising quality control test. The company being the holder of a grade A grand IMA license authorized to issue certificate confronting to IMA specification. Quality control department has the responsibility to control and maintain the quality of the output {medicines} and to grade according to the IMA standard and reporting to the production department. The department has full-fledged analytical laboratory to perform this task.

3.6 THE ORGANISATIONAL HIERARCHY

ORGANISATIONAL CHART
SHARE HOLDERS Director Managing Director Director

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Finance Manager

Maintenance & Engineering Head

Quality Control Chemist

Marketing Department Head

Human Resource Manager

Accountant Accountant Clerk Maintenance Engineer Workers Junior Chemist Laboratory Assistant Departmental Head Purchase Manager Clerk Marketing Manager Public Relation Officer Welfare Officer

Sales Official

R&D Department Head Chemist

Production Department

Bulk Drugs Department Production Department Assistant

Capsulation Department Production Chemist Assistant Chemist Lab Assistant Workers

Assistant Chemist Lab Assistant

Store Assistant

Workers

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3.7. DEPARTMENT DETAILS

Like any other organization, Sangrose has separate departments and separate executive heads for each department. Each department specializes in its own area of operation. The various departments in Sangrose are:1. 2. 3. 4. 5. 6. 7. 8. Production Purchase and stores Quality control and quality assurance Maintenance and engineering research and development Human resource Marketing Finance

3.8. PRODUCTS & SERVICES

The following are some of the products of the firm:1. CLOFAZIMINE :Basic drug manufacturing for the treatment of leprosy as recommended by W.H.O under its multi drug therapy is also for the treatment for TB and AIDS

2. CAPSULES : Vitamin A,D is used for dye and calcium form Black cumin seed oil GLOVITE NIFEDIPINE CEFOZ REJUVEN PARACETOMOL SALBUTMOL ERYTHROMYCIN RANTIDINE TABLET

3.8.1 SOURCES OF PRODUCT

The products can be the main ingredients of any manufacturing unit if the input is in abundance the production process will not suffer. The manufacturers should
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therefore see that input is in continuous supply. The manager should take all steps to provide th supply of input. In Sangrose Laboratories Pvt Ltd main raw material is a chemical. Following a some of the important raw materials used in Sangrose Laboratories Pvt Ltd, Amino compounds Acetic acid Methanol Glycerine Sorbitol Isopropanol Carbontetrachloride Imiazol O-chloro Benzoic acid

3.9. FINANCE
The current scenario of the company is well sounded and stable over the years.

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CHAPTER 4 LEARNING AND FINDINGS

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4.1 PRODUCTION MANAGEMENT

Production system consists of inputs at one end output at the other. The inputs and outputs are connected to each other by a series of operations or processes, storage and inspection. DEPARTMENT STRUCTURE PRODUCTION DEPARTMENT

BULK DRUGS DEPARTMENT

CAPSULATION DEPARTMENT

PRODUCTION DEPARTMENT

PRODUCTION CHEMIST

ASSISTANT

ASSISTANT CHEMIST

WORKERS

LAB ASSISTANT

WORKERS PRODUCTION IN SANGROSE The Sangrose Laboratories is producing Basic Drugs and Capsules. Some of the licensed products are as following Basic Drug-CLOFAZAMINE Capsules-Vitamin A,D Black Cumin Seed Oil Glovite Rejuven Paracetamol Ateneolol
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 Ranitidine Brufin Erythromycin

MACHINERIES There are various types of machinery and equipment for the production of the medicines. The plant is equipped with machinery to produce 15000-20000 Kilograms of drug per annum and 20 lakhs capsules per shift. The plant is equipped with the following machines: SS Reactor with Condenser Ms Rubber Lined Reactor SS Reactor MS Glass Lid Reactor SS Centrifuge Rubber Lined Centrifuge Multi mill {Hammer Type} Soft Capsulation Machine Gelatin Cooking Vessel Capsules Washing Equipment

PRODUCTION REQUISITES To run the plant smoothly and continuously it requires adequate supply of raw materials, electricity and water supply. Raw Materials The main raw material used in Sangrose laboratories are as follows : Amino Compound Acetic Acid Methanol Glycerin Sorbitol Isopropanol Methyl Salicylate Carbon Tetra Chloride The most important raw material is Amino Compound and it is purchased from Baroda. The raw materials used in the production process are indigenous. So the source of raw material is from the home country only.

Power and Fuels

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In Sangrose electricity is the main source of power and is required for machines and lighting facilities. The company has a low- tension connection of 100KVA. Diesel is also used as fuel for the purpose of running generators.

Water The company has dug wells in the nearby private land, owned by the company. The panchayat water supply is also available to the company. In addition to this, the industrial estate has its own water supply system. PROCESS FLOW {CAPSULES} RAW MATERIALS

MIXING

ENCAPSULATION

WASHING

DRYING {2-3 HOURS}

SORTING

WASHING

PACKING

DESPATCHING

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PRODUCTION PROCESS Sangrose Laboratories Pvt. Ltd is a medicine manufacturing company. As it has got its own formulas, the production process is to be kept secret. It is not disclosed even to the employees of the company. The Managing Director, Mr.C.K.Alexander, who is the chief chemist in the production unit, is the key factor behind the formulation of medicines.

PACKING Firstly, the bulk drugs will be filled in plastic bags and then put into metal drums and sealed. These metal drums can load up to 35kg. Capsules are packed in blisters, PVC foils and Aluminum foils, which are usually, provided by the customer themselves.

OPERATIONS, PLANNING AND SCHEDULING After receiving an order from the company/agency concerned, they themselves supply the raw materials to the company. Then, further planning is done on the basis of color of tablets and raw materials regarding how much to be produced etc. After confirming whether raw materials are adequate, the entire process is planned by the production manager and chief chemist.

EFFLUENT TREATMENT The environment is considered, as a gift preserved for the future generation, our duty is to protect it. Treatment plant has a capacity to treat 6000 litres per day, both chemically and biologically. The treatment in Sangrose Laboratories Pvt Ltd, about 15% of its total capital outlay is for environment protection. A well-defined treatment system has been evolved for the treatment of effluent generated from the manufacturing area. A continuously monitoring system has been developed for smooth monitoring of systems. The effluent water is used for the cultivation of land.

EFFLUENT TREATMENT PROCEDURE

Raw effluents The raw effluents being very little in quantity is collected in a rubber lined concrete tank, heated and aerated to concentrate. When a sufficient quantity is obtained, it is to be sold to the consultants of the company for neutralizing the alkaline effluents with those of other industries. Waste Water

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The waste water from the production area is collected in a separate rubber lined tank for treatment. The effluent is pumped into a mixer cum flocculation tank where liquid ammonia or lime is added for neutralizing. The dried mass is permitted to be used as a landfill by pollution control board, but so far this has been collected in drums and kept sealed for incinerating them. When sufficient quantity is obtained it is incinerated.

4.2 PURCHASE AND STORES DEPARTMENT

The importance of purchasing function varies with the nature and size of the industry. In small factories this function is performed by the works manager, but in big concerns the buying function is given to a separate department. OBJECTIVES 1) 2) 3) 4) 5) To purchase required products of right qualities. To purchase at the right time. To purchase from a reliable customer. To purchase in right quantity. To purchase economically.

PURCHASE DEPARTMENT This department is in charge of all purchase connected to the company from the stationery to the plant material. Stationery falls under general stores. The overall stores department is under the management of the purchase department. ACTIVITIES OF PURCHASE DEPARTMENT The department is responsible for the procurement of the required material as well as issuing the items to the different departments accordingly through the stores department. PURCHASE PROCEDURE The purchase department receives a requisition of the amount required in the plant in case of items needed for production process, through the stores department. However, it usually makes estimation as to when referring to the stock ledger that is submitted to the manager every month, needs and requirements. For local purchase that is for those items that can be purchased locally intend is made by the purchase department and sent to the supplier. STORES DEPARTMENT All items used in plant and finished products are kept in the stores. It is divided into four sections namely: Chemicals Packing Materials Finished Products
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 General.

RECEIPT PROCEDURE A purchase intention is made depending on the stock position. Inspection of the purchase items for quality and quantity is made. After the items have been inspected and verified, they are stocked in bins or cupboard in case the items are not big in size. For large items they are stocked in metallic racks, orders are received and then entered in the register followed by the stock receipt. The particulars on store ledger are later entered in the computer for their access in case the records have to be referred at a later date or in the future.

ISSUE PROCEDURE The issue procedure of the raw material is done on FIFO basis. After the materials are issued its particulars are entered in stores ledger. These particulars in the stores ledger are entered into the computer

DEPARTMENT STRUCTURE

STORE MANAGER

DEPARTMENTAL HEAD

STORE IN CHARGE

PURCHASE MANAGER

STORE KEEPER

CLERK

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4.3 QUALITY CONTROL DEPARTMENT

Quality plays a vital role in Sangrose because majority of its products involve the use of chemicals and hence, it must come up with effective quality control measures in order to provide the consumers with high quality medicines. Quality of products depends upon the application of men, material and manufacturing conditions. The systematic control of these factors is the main aim of quality control department. The reasons for maintaining product quality at Sangrose are as follows:1) Quality of products when improved, leads to increased sales. 2) Scrap rejection and rework are minimized thus reducing wastage. so the cost of manufacture reduces. 3) Good quality product improves reputation. 4) Inspection cost reduces to great extent. 5) Uniformity in quality can be achieved. 6) Improvement in producer and consumer relations. 7) Improvement in technical knowledge of engineers data for process development and manufacturing designs. FACTORS AFFECTING QUALITY In addition to men, material, machines and manufacturing conditions, there are some other factors which affect the product quality, they are: Market Research Money Management Production Method and Production Design Apart from poor packing, inappropriate transportation and poor after sales services are the areas that can cause damage to companys quality image in Sangrose Laboratories Pvt Ltd the quality department uses the following quality measures. The quality control laboratory functioning in the company has sophisticated equipment like U.V spectrometer, Disintegration testing equipment, Dissolution testing equipment, Electric PH meter and Digital electronic balances. The qualified and approved chemist and pharmacists working in the company to ensure quality of the product.

QUALITY ASSURANCE Quality and efficiency are hallmark of the pharmaceutical industry. This concept forms the basic policy of Sangrose Laboratories Pvt Ltd. to provide products of desired Quality which are uniform, pure and therapeutically effective. General responsibilities:-

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1) To sample, supervise the sampling raw materials, intermediaries, bulk, and finished products in accordance with standard products. 2) To test the raw material, intermediaries, finished products, packing materials in accordance with the testing standards. 3) To check critical manufacturing, packing operations. 4) To supervise adherence to GMP regulations and SOPS 5) To review and update master formula records, testing standards.

DEPARTMENTAL STRUCTURE

QUALITY CONTROL CHEMIST

JUNIOR CHEMIST

LABORATORY ASSISTANT

4.4 MAINTENANCE AND ENGINEERING DEPARTMENT

In Sangrose, maintenance and engineering department deals with the mechanical as well as the electrical maintenance even though production departments have their own set of inspection and maintenance supervisors, major repairs are carried out by the maintenance department.

MECHANICAL MAINTENANCE The mechanical maintenance department or section is headed by the mechanical maintenance head. One supervisor and some helpers assist him. Usually scheduled maintenance is carried out. Apart from weekly check up for machineries in the processing department, in addition to this, lathe and welding work is carried out. The cost of maintenance hours spend and the report is submitted to the accounts department on monthly basis.
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ELECTRICAL MAINTENANCE The electrical maintenance section is headed by electrical maintenance head. The inspection and report of all the electrical systems and within the factory is carried out by the electrical maintenance section. Description of planned preventive maintenance programme: All equipments are cleaned thoroughly before and after production. At regular periods machines are resembled and services like lubricating is also done. Individual maintenance manuals are kept for equipments and any servicing or replacement is duly recorded

DEPARTMENTAL STRUCTURE

MAINTENANCE AND ENGINEERING HEAD

MAINTENANCE ENGINEER

WORKERS

4.5 RESEARCH AND DEVELOPMENT

The company has an R & D lab functioning with all sophisticated equipment. Their main objective is to develop process know how for life saving drugs. They also develop various combinations of those drugs that can be prepared at low cost. Sangrose is spending a reasonable portion of its turnover for R & D department. A qualified term is constantly identifiable company in market. The team already developed some challenging drugs and intends to start manufacturing them in near future.

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FUTURE PLANS Sangrose is expanding its product line constantly. As a part, new formulation division is on the anvil which can manufacture tablets, liquids orals and hard gelatin capsules. A subsidiary of Sangrose is in the pipeline named Sangrose Drugs and chemicals Pvt Ltd., which intends to manufacture basic drug. Following are the basic drugs which is planned to manufacture in Sangrose Drugs and Chemicals Pvt Ltd. a) b) c) d) e) Dapson Pyrazinamide Imipramine Ethambuto Nifedipine BP/USP{Anti Leprosy} BP/USP{Anti TB} BP/USP{Anti Depressant} BP/USP{Anti TB} BP/USP

DEPARTMENTAL STRUCTURE

R & D DEPARTMENT HEAD

CHEMIST

ASSISTANT CHEMIST

LAB ASSISTANT

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4.6 HUMAN RESOURCE DEPARTMENT

Every aspect of a firms activities is determined by the competence, motivation, and general effectiveness of its human organization. Of all the task of management, managing the human component is the central and most important task because all depends upon how well it is done. Human resource management is concerned with all aspects of managing the human resource of an organization. The sincerity and dedication of the employees in SANGROSE is a major success factor.

In Sangrose the objectives of the HR Department are as follows: Individual development Cordial relationship between employer and employees. Effective molding of human resource as contracted with physical resources. Proper fulfillment of the function of the department, like recruitment, transfer, training etc. Providing better working conditions and other facilities. Good relation with Trade Union. Personnel research functions.

KEY FUNCTIONS COMPETENCE AWARENESS AND TRAINING The organization has documented methods to:1. Determine the competency needs for personnel performing activities affecting product quality. 2. Provide training to satisfy these needs. 3. Evaluate the effectiveness of actions taken. 4. Ensure that the employees are aware of the relevance and importance of their activities and hoe they contribute towards the achievement of quality objective. 5. Maintain appropriate records of educational qualification, training skills and experience.

INFRASTRUCTURE DEVELOPMENT The organization identifies the needs and provides the facilities according to the

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requirements of the following:1. Building workspace and associated utilities. 2. Equipments- Hardware and Software. 3. Supporting services- Transportation and Communication. WORKING ENVIRONMENT The organization determines and manages work environment needed to achieve conformity to provide requirements- work instruction for safety and work keeping to achieve good work environment.

LABOUR WELFARE FACILITIES PROVIDED AT SANGROSE LABORATORIES Labour is an important element of any organization and contributes much to the success of the organization. Hence it is very important to keep the workers always satisfied. The workers can be satisfied by providing various welfare facilities. Welfare of an employee and his family members is an effective advertising and also a method of buying the gratitude and loyalty of employees. Employee welfare is a comprehensive term including various services benefits and facilities offered by the employer. The basic purpose of labour welfare is to enrich the life of employees and keep them happy and contented. Welfare facilities enable workers to have a richer and more satisfying life. It raises the standard of living of workers by indirectly reducing the burden on their pocket. Welfare means improving, faring or doing well. It is a comprehensive term, and refers to the physical, mental, moral and emotional well-being of an individual. Further, the term welfare is a relative concept, relative in time and space. It therefore, varies from time to time, region to region and from country to country. Labour welfare is an important aspect in every organization with some added incentives which enable the workers to lead a decent life. In order to get the best out of a worker in the matter of production, working condition is required to be improved to large extent. The work place should provide reasonable amenities for the workers essential need. Today various medical services like hospital, clinical and dispensary facilities are provided by organizations not only to the employees but also to their family members. Normally welfare and recreational benefits includes canteens, housing, transportation, education etc. However the following are some of the labour welfare activities undertaken by the company:1) Lunch and Refreshment:-

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During the production of some medicines it may happen that the employees have to strain themselves a lot, at such times the employees are provided lunch and other refreshments to avoid further strain. 2) Transportation The company has arranged transportation facilities for the employees, who come from far off places. They are picked from their respective places in the morning and are taken back in the evening. 3) Travelling Allowance TA is given by the organization only for official purpose. Attending the office is not considered as an official purpose and hence no TA is given for coming to the office. 4) Bonus The company is paying 20% bonus to the workers during the financial year. In Sangrose, bonus is paid more than as per rules of payment of Bonus Act. 5) Insurance Benefits In Sangrose all employees are covered under Employees State Insurance {ESI}. Besides that employees are covered by a special group insurance policy of a common insurance company. 6) Gratuity Gratuity is an amount paid to all employees on their retirement or death in appreciation of their past services in the organization. In Sangrose, gratuity is paid according to the Gratuity Act. 7) Medical Facilities The organization is also having a provision of medical facilities. If any of the employees falls ill or meets with an accident, the company bears all the medical expenses. Besides that the company arranges annual checkups for all employees. Century hospital, Chengannur takes up that responsibility. MEASURES TAKEN BY MANAGEMENT FOR WORKERS SAFETY

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Employees are the asset of an organization. They are just like the heart of the human body. Most employees have the expectation that their workplace will offer a safe environment in which to do work. Some workplaces are safer than others just as some occupations offer more safety than others. Workplace safety ranks high on the list of goals for most workplaces. Employers care about employee safety. An employee of a firm, whose whole hearted hard work results in well establishment of the firm, will get appreciation from the management and also gets more benefits in terms of salary increment, other facilities and perquisites. Hence considering all the above points, it is necessary on the part of management to ensure workers safety in order to avoid obstacles in the development of the firm.

HEALTH AND SAFETY All employees are provided with clean protective garments, caps, foot wears, safety goggles, dust masks etc. Hand washing facility, direct contact is avoided between operators hands and stating material, intermediaries and finished goods. The staff members are actively encouraged to report infections and skin lesions. Eating, drinking, chewing tobacco and smoking is not permitted inside the plant. RECRUITMENT AND SELECTION

RECRUITMENT Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labour upon whom the organization can draw when it needs additional employees. Recruitment refers to the attempt of getting interested applicants and creating a pool of prospective employees so that the management can select the right person for the right job from this pool of interested applicants.
Advantages Internal Recruitment Cheaper and quicker to recruit People already familiar with the business and how it operates Provides opportunities for promotion with in the business can be motivating Business already knows the strengths and
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Disadvantages Limits the number of potential applicants No new ideas can be introduced from outside the business May cause resentment amongst candidates not appointed Creates another vacancy which needs
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weaknesses of candidates External Recruitment Outside people bring in new ideas Larger pool of workers from which to find the best candidate People have a wider range of experience

to be filled Longer process More expensive process due to advertisements and interviews required Selection process may not be effective enough to reveal the best candidate

SOURCES OF RECRUITMENT IN SANGROSE LABORATORIES:The modes of doing recruitment in Sangrose Laboratories Pvt Ltd are as follows: Advertisement {external recruitment} In Sangrose, they use direct advertisement through newspaper and magazines. Internal Recruitment The company puts on the notice board, information regarding vacancies which can be applied for by the existing employees. Employees reference The workers introduce their friends and relatives having good knowledge in the field. This will be taken into consideration when there is a shortage of workers in the organization. Through consultancies {external recruitment} The company has tie-ups with job consultancies, which provide with suitable candidates as per the requirement of the company. Walk in interview {external recruitment} Sometimes, the potential candidates may forward their resumes to attend for an interview directly and without any prior application on a specified date, time and place. Suitable candidates will be selected after screening. SELECTION

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Selection, both internal and external is deliberate effort of the organization to select a fixed number of personnel from a large number of applicants. The primary aim of employee selection is to choose those persons who are most likely to perform their jobs with maximum effectiveness and to remain with the company. Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and Written test are conducted for the selection to technical post. For the post of clerical staff, written test and interview are conducted provided the number of candidate are very high, it is compulsory that for all vacancies there must be medical examination to check the physical fitness of candidates. The following are various steps involved in the selection process:-

1. Reception. A company is known by the people it employs. In order to attract people with talents, skills and experience a company has to create a favorable impression on the applicants right from the stage of reception. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. 2. Screening Interview. A preliminary interview is generally planned by large organizations to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. 3. Application Blank. Application blank or form is one of the most common methods used to collect information on the various aspects of the applicants academic, social, demographic, work related background and references. 4. Selection Test. Selection test or the employment test that attempts to asses intelligence, abilities, personality trait, performance simulation tests including
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work sampling and the tests administered atassessment centresfollowed by a discussion about the polygraph test, graphology and integrity test. 5. Selection Interview. In this step the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through his own observations during the interview. 6. Medical Test. Certain jobs require physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. 7. Reference Checks. Once the interview and medical examination of the candidate is over, the personnel department will engage in checking references. Candidates are required to give the names of 2 or 3 references in their application forms 8. Hiring Decision. The line manager has to make the final decision now whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier. The line manager has to take adequate care in taking the final decision because of economic, behavioral and social implications of the selection decisions.

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PAYMENT OF WAGES All employees of Sangrose are paid according to their pay scales. Daily wages are paid to workers and monthly salary to the office staff. The pay scales are decided by the MD himself. WORKING HOURS First shift:Office and general shift Tea breaks Lunch break Tea breaks Second shift:Second shift Break time Meals break Break time 5.30 pm to 2.00 am 7.00 pm to 7.15 pm 9.00 pm to 9.30 pm 11.45 pm to 12.00 pm 9.00 am to 5.30 pm 10.30 am to 10.45 am 1.00 pm to 1.30 pm 3.15 pm to 3.30 pm

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WORKING CONDITIONS AND FACILITIES The firm has been successful in maintaining good working condition. Working surroundings are hygienic and importance is given to maintain cleanliness. Employees are provided with adequate and spacious rest rooms. Proper care has been taken to avoid accidents of any nature. Since the managing director is easily accessible to workers, a healthy labour management relationship exists in the firm and hence, there is no single incident of labour dispute in the history of Sangrose. Performance appraisal is done every 18th months of completion of service. This is done by department heads and is reported to the directors. They will decide about any increase in salary. Further, mementoes are also given for the best performance within the plant.

DEPARTMENTAL STRUCTURE

HUMAN RESOURCE MANAGER

PUBLIC RELATION OFFICER

WELFARE OFFICER

4.7 MARKETING DEPARTMENT

The company mainly has two types of products, basic drugs and capsules. The products manufactured are marketed by agents in different states, appointed as sole selling agents of Sangrose Laboratories products. Bulk drugs manufactured by the company are exported to Switzerland, in the name of Sandoz. The capsules are supplied to Central Purchasing Committee through Government of India through tender. Black cumin oil capsules are exported to Sri Lanka. Since the products are exported, the company requires lesser marketing activities. There is no need for an analysis of the market since the products have no other competitor as such, since the formula has not been revealed. But the management has plans to make a market analysis to explore new markets for their upcoming products.
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MARKETING STRATEGY {OBJECTIVES} Maximization of sales over India. Project oriented marketing. Encouraging more and more export. Share even price, which is higher than that of the competitors. Increase emphasis on advertisement. To make products available to customers through nearby retailers. Sustaining the existing markets.

PRICING POLICIES Pricing is the marketing function whose importance is acknowledged even more easily than that of their function. From the point of view of the customers, the price of medicines is compared with the quantity, quality and package offered by Sangrose which determines whether they will consider buying the products or not. Price is the exchange value of a product where the real transaction is taking place between buyer and seller.

There are different types of pricing policies some of them are:1) Cost-plus pricing Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price.

2) Creaming or skimming In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market.
3) Limit pricing A limit price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. 4) Loss leader A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the companies to expand its market share as a whole.
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5) Market-oriented pricing Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. 6) Penetration pricing Setting the price low in order to attract customers and gain market share. The price will be raised later once this market share is gained. 7) Price discrimination Setting a different price for the same product in different segments to the market. For example, this can be for different classes, such as ages, or for different opening times. 8) Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favourable perceptions among buyers, based solely on the price. 9) Predatory pricing Aggressive pricing (also known as "undercutting") intended to drive out competitors from a market. It is illegal in some countries. 10) Psychological pricing Pricing designed to have a positive psychological impact. For example, selling a product at Rs.33.95 or Rs.33.99, rather than Rs.40.00. 11) Price leadership An observation made of oligopolistic business behaviour in which one company, usually the dominant competitor among several, leads the way in determining prices, the others soon following. The context is a state of limited competition, in which a market is shared by a small number of producers or sellers. Apart from these some other pricing strategies are 12) Target pricing 13) Absorption pricing 14) High-low pricing 15) Medium pricing policy 16) Low pricing policy 17) Premium decoy pricing 18) Marginal cost pricing 19) Valued based pricing 20) Pay what you want 21) Freemium 22) Odd pricing

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Decisions on pricing are taken on the basis of various factors influencing price, such as demand of the product, acceptance of the product, competition and other existing market conditions. The pricing policy of Sangrose which is the basic responsibility of marketing department is a function of cost and demand factors. The price charged should be such that it covers the cost of production and yields a sufficient profit without which the company cannot survive.

ADVERTISEMENT It is a form of promotion which is usually paid form, non personal {massive} with an identified sponsor, the benefit of which goes to the company and the customers. Sangrose is the only company in Kerala manufacturing CLOFAZIMINE and is the third in India. The company concentrates only in institutional and goodwill type of advertisement. Institutional advertising is designed to promote an idea or the name of the company in the eyes of the public. In Sangrose the expense on advertisement is meagre. That does not mean that the company has compromised on adverting. The company has advertised its products and company name effectively and adequately.

SALES PROMOTION Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gather information about what type of customers you draw in and where they are, and to jumpstart sales. It is concerned with the creation, application and dissemination of materials and techniques that supplement advertising and personnel selling. In present days sales promotion activities are viewed from the angle of an investment rather than expenditure. Sales promotion undoubtedly pays rich dividends in the long run. It is responsible for awakening and stimulating consumer demand for a product. Sales promotions include things like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential customers to action.

SALES MANAGEMENT The volume and the value of sales and consequent margin of profit ultimately govern the size of the business, its pattern of organization and personnel problems. Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. These are also typically the goals and performance
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indicators of sales management. Sales management is a term applied to the process of distributing the goods from the producer to the ultimate consumer. At Sangrose sales management covers selling, advertising and sales promotion, transportation, handling, financing and risk taking.

SALES PLANNING The sales plan is a useful, often neglected tool for salespeople. In essence, a sales plan lists a series of sales objectives and defines how the sales team will meet those objectives. It takes different pieces of information like sales quotas, product types, customer requirements, etc. and uses them to build a reasonable (and lucrative) plan of action. At Sangrose sales planning are initiated by laying down the objective desired to be achieved. The various alternatives before it are evaluated and from among those the most appropriate course of action is selected, which may fulfil predetermined goals. Finally the selected plan of action is charted out and implemented. From the company point of view, domestic market is given only secondary importance. In domestic market, they sell only the product for Kerala Government through Central Purchasing Committee.

DISTRIBUTION Product distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. The product line of Sangrose requires an effective distributional channel. Distribution is defined as the process of getting the product from the factory to the hands of final consumer or users. Distribution is an important function of modern marketing, which enables the consumer to enjoy higher standards of living and get more enjoyment and comfort out of life.

DISTRIBUTION CHANNEL Physical distribution channel is needed to link the gap between the company and customer. The usual distribution channel members are wholesalers, retailers, agents. The important function of distribution channels are: Reduces the gap between the company and the customers. The channel members share the stocking facility. So the company can produce more which can be passed to the wholesalers and retailers for stocking the product of the company. The channel members help in advertisement at various levels. The wholesalers help in packaging and labelling.
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 Channel members share the risk of business like investment, profit and loss etc. Channel members are closely interacting with customers than the company.

DISTRIBUTION CHANNEL SETUP AT SANGROSE LABORATORIES PVT LTD.

BASIC DRUGS Manufacturer Importer Consumers Conversion of basic drugs to capsules

CAPSULES Manufacturer Manufacturer Kerala Medical Services Corporation Ltd Distributor Sub stockiest Consumer Consumers

MAJOR CONSUMER OF THE COMPANY The company sells its products to the local areas also exports its products. Therefore Sangrose has both local as well as international customers. Given below is the list of national level customers. NOVA MILLENIUM PHARMA, CHENNAI ABL BIO TECHNOLOGIES, CHENNAI
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 NOUVEAU MEDICAM, CHENNAI BENZOR PHARMA, COCHIN HOUSE REMEDIES, TRICHUR

DEPARTMENTAL STRUCTURE

MARKETING DEPARTMENT HEAD

MARKETING MANAGER

SALES OFFICIAL

4.8 FINANCE DEPARTMENT

FINANCE MANAGEMENT Financial management is that managerial activity that is concerned with the planning and controlling of the firms financial resources. Financial management is an important branch of business administration. In the words of Howard and Upton financial management is the principle to a particular operation. Financial management applies to an organization irrespective of the size, nature of ownership and control and whether it is manufacturing or service organization. So in modern money oriented economy for an organization, without effective and efficient financial management the survival and growth of that organization will be only a dream.

STRUCTURE Finance becomes the basic foundation for all kinds of economic activities.
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Sangrose has a well organized finance department. The function of the finance department apart from accounting includes planning, mobilization and effective utilization of funds.

COSTING SYSTEM OF SANGROSE Sangrose follows Process Costing System. The different procedures followed by the costing department are described in detail :-

MATERIAL COSTING Here they record the total cost of raw materials used to produce various drugs separately. Standard consumption of various inputs has been laid down by the management and has been adopted for comparison. LABOUR ACCOUNTING Department identifies the worker and staff assigned to each cost centre either by one time analysis of the pay role or by identifying tag number. The employee cost so identified will be included to the cost of the cost centre. Every month cost centre wise summary will be prepared and data sheet will be maintained. OVERHEAD ACCOUNTING The overhead cost of manufacturing CLOFAZIMINE is not considered while determining the conversion costs. The overhead expenses relating to the agents have been allocated among the products and not covered in the ratio 92% and 8% respectively. The expenses are taken under the selling overhead. The function of the finance department in Sangrose has been grouped under the following heads:1) Maintaining of cost accounts. 2) Planning of funds. 3) Acquisition of funds. 4) Allocation of funds. 5) Investment decision. 6) Dividend decision. 7) Recording of the transaction. 8) Preparing of financial statement. 9) Evaluation of financial performance. 10) Arranging for internal as well as external audit.

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DEPARTMENT STRUCTURE

FINANCE MANAGER

ACCOUNTANT

ACCOUNTANT CLERK

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CHAPTER 5 SWOT ANALYSIS

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SWOT ANALYSIS
A scan of the internal and external environment was an important part of the strategic planning process. Environment factors, internal to the industry are classified as strength or weakness and those external to the industry are classified as opportunities or threats. Such an analysis of the strategic environment is referred as SWOT ANALYSIS. SWOT analysis is an important aid for the management when it comes from making critical decisions. SWOT is an acronym for Strengths, Weakness, Opportunity and Threats. Threats and opportunity represents the positive aspects where as the weakness and threats represent the negative aspects that the company should try to overcome. After a keen observation the organization and the various departments of Sangrose following Strength, Weakness, Opportunities and Threats are known. The basic objective of SWOT analysis is to provide a framework to reflect on the firms ability to overcome barriers and avail of the internal capabilities have reliance is so far as they relate to the environmental condition. The following are the some of the Strength, Weakness, Opportunities and Threats of Sangrose pharmacy.

STRENGTH: GMP certificate which is equivalent to ISO 9002 certification. Only manufacturer of CLOFAZIMINE in Kerala. Foreign technology to suit indigenous conditions. Good management decisions, advance product planning and designing.

WEAKNESS: No healthy communication between the departments. Lack of efficient system analysts. Advertisement expense is very meagre.

OPPORTUNITIES: Production can be in USP/BP standards. Good scope if imported machines are installed. There is a gradual growth in pharmaceutical industry which Sangrose can make use of.
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 Direct marketing will enable the company to gain more customers.

THREATS: Competitors pay higher commissions to agents which pose some threats to the company. Advertisement done by other players to capture the market. Substitute products manufactured by other companies. The overhead cost of competitors is lower as compared to Sangrose.

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CHAPTER 6 CONCLUSION

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CONCLUSION The organization study gave immense knowledge about the various functions of Sangrose. It was an opportunity to peep into the details of its various departments which ultimately revealed that the sincerity and dedication of the employees was the major success factor. Sangrose Laboratories is the only company that manufactures CLOFAZIMINE in Kerala and third in India. This will create high demand for their products. The company enjoys benefits of the Small Scale Industry and the company forms of organization, as it is incorporated as a private company and registered as Small Scale Industry. The company plays an important role in the National Leprosy Eradication Program under the aid of W.H.O. This will help the company for certain concession for exporting. The company is not giving importance to marketing in India this will affect the profitability and production of the company. The policy of the company is to supply medicines conforming to quality standard, specifically to the consumers at agreed prices and to their satisfaction.

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BIBLIOGRAPHY

www.sangroselabs.com www.google.com Published document of the company

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