1

Need For the Study: As a student of business administration a need is felt to understand the overview of an organization in its financial, marketing and human resources performance examining the overview of the above factor will help to gain insight in the mission, vision and operational goals and strategies of organization to perform well to the satisfaction of the stake holders.

Methodology: The project is based on certain ideas, information, data collected from different sources. The information to carry out the project is followed by two sources.

Primary source: Primary source is the first source information collected. This is the data collected for the first time for a particular study. Primary data consists of information or data collected directly through discussion and interaction with the dealers. The survey was used to collect primary data from customers through structural questionnaire.

Secondary Sources: Secondary data are those data which are gathered earlier. Secondary data consists of data and information collected from website, books, internet and company website.

Limitations of the Study: Since the time was limited the study is limited only to data pertaining to financial and marketing practices of the company.

Industry Review:
Himalayas commitment to the community is part of the companys core values. Its mission is to make a positive difference to the communities in which they operate. They believe that every human being has a fundamental right of good quality of life. This involves access to health, education, a clean environment and freedom from poverty. Through several community initiatives, which include programs aimed at ensuring better health, education, sustainable development and economic empowerment are doing best to improve the life of the people who are marginalized and poor. Social responsibility is very simple. Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands.

Growth Prospects:
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future.

Scope of the Sector:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG

3 sector will rise from around Rs 56,500 crores in2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. The following factors make India a competitive player in FMCG sector:

Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison: Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic
and export markets.

Resence across value chain: Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India amore cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

Company Profile:

The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine. This included referring to ancient Ayurveda texts, selecting indigenous herbs and subjecting the formulations to modern pharmacological, toxicological and safety tests to create new drugs and therapies.

History:

Eighty one years ago, on a visit to Burma, Mr. Manal saw restless elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia serpentina. Fascinated by the plant's effect on elephants, he had it scientifically evaluated. After extensive research, Serpina, the world's first antihypertensive drug, was launched in 1934.

The legacy of researching nature forms the foundation of Himalaya's operations. Himalaya has pioneered the use of modern science to rediscover and validate Ayurvedas secrets. Cutting edge technology is employed to create pharmaceutical-grade Ayurveda products. As a confirmation that Himalaya is dedicated to providing the highest quality and consistency in herbal care, the Company was awarded an ISO 9001:2000 certification in 2003.

Since its inception, the company has focused on developing safe, natural and innovative remedies that will help people lead richer, healthier lives. Today, Himalaya products have been endorsed by 300,000 doctors around the globe and consumers in 71 countries rely on Himalaya for their health and personal care needs.

Mission:

Establish Himalaya as a science-based, problem-solving, head-to-heel brand, harnessed from nature's wealth and characterized by trust and healthy lives. Develop markets worldwide with an in-depth and long-term approach, maintaining at each step the highest ethical standards. Respect, collaborate with and utilize the talents of each member of the Himalaya family and the local communities where Himalaya products are developed and/or consumed, to drive our seed-to-shelf policy and to rigorously adopt eco-

5 friendly practices to support the environment we inhabit. Ensure that each Himalaya employee strongly backs the Himalaya promise to exceed the expectations of the consumer, each time and every time. Nothing less is acceptable.

Brand:

The Himalaya brand has much in common with the mountain range from which it draws its name. For centuries, the Himalayas have been an icon of aspiration, of man's quest to unlock Nature's secrets. They represent purity and lofty ideals. The fact that the Himalayas are the source of many of the herbs that are used in our products makes our brand name all the more appropriate. The Himalaya logo is a visual definition of its brand identity. The leaf that forms the crossbar of the letter H evokes the company's focus on herbal healthcare. The teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring. The Himalaya brand carries with it the promise of good health and well-being.

Location:

Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility in Makali, Bangalore, India, which today houses the corporate headquarters. In 1991, the company relocated its R&D facility to Bangalore.

Research & Development:

Each Himalaya product undergoes years of primary research and clinical trials before it reaches the market. Himalaya has a well-defined Research and Development policy. It states that no investment is too much when it comes to scientifically creating safe drugs and therapies. Himalaya's history is one of innovation through research. The company believes that the ideal healthcare system lies in the synergy between Ayurveda and modern science. Himalaya's constant endeavor is to create innovative products that satisfy the health and personal care requirements of contemporary living. Himalaya prides itself on being a completely research-oriented company. Indeed, it is this emphasis on R&D that allows Himalaya to produce safe, efficacious and consistent remedies using Ayurveda principles. The R&D department is focused on product development, quality control and standardization. All products are derived through

rigorous research and produced in state-of-the art facilities. The products represent commitment to continuous investment in the best people, practices and technology. Himalaya does not support "Borrowed Science" or the practice of using published literature to substantiate efficacy claims. Each Himalaya product undergoes years of primary research and clinical trials before it reaches the market.

Product Profile:

Himalaya's products can broadly be categorized into three main ranges they are: Pharmaceutical, Personal Care, and Animal Health. The medicinal range of products carry the Himalayan hallmark of researching Ayurveda and capturing its benefits in formulations. Using modern research methodology and manufacturing practice, Himalaya has made available to people all over the world, an alternate method of treatment, which has no known side effects. The medicinal range comprises over 35 products and is broadly classified into four categories they are: Children's Health, Men's Health, Women's Health and General Health.

Prominent among Himalaya brands is Liv.52, a liver formulation, which is also the flagship brand of the company. Every one-third of a second, one unit of Liv.52 is bought somewhere in the world. It is ranked number one in the hepatoprotective - lipotropic segment and number four among all pharmaceutical products in India. (ORG Marg, July 2003). Liv.52 celebrates fifty years in 2005. In 1972, continuing its tradition of introducing safe and natural remedies, Himalaya launched Bonnisan, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a baby's growing up. After extensive work on the formulations and related clinical research, Himalaya introduced Menosan, an herbal non-hormonal product for menopausal women, Reosto, a comprehensive therapy for osteoporosis and Himplasia, a unique product for benign prostatic hyperplasia, a new dimension in BPH management. Some of the other well-known products are Abana, Cystone, Gasex, Geriforte, Rumalaya, Diabecon, Mentat, Koflet, Himcolin, Septilin, Pilex, PureHands, etc.

Health Care: Daily Health Capsule, Cold Balm, Foot Care Cream, Antiseptic Cream, Ayurslim Capsule, Pain Relief Balm, Pain Massage Oil, Pain Muscle & Joint Rub, Pimple Control, Acne n Pimple Cream, Blood Purifier Capsule & Syrup.

Oral Care: Dental Cream.

7 Hair Care: Protein Conditioner, Revitalizing Hair Oil, Protein Shampoo, Dandruff Control, AntiDandruff Shampoo, Anti- Dandruff Hair Oil.

Skin Care: Gentle Refreshing Toner, Fairness Cream, Lip Balm, Face Pack, Purifying Mud Pack, Refreshing Fruit Pack, Facial Cleaner, Deep Cleansing Milk, Gentle Exfoliating Walnut Scrub Moisturizers, Moisturizing Lotion, Face Intensive, Face Moisturizing Lotion, Protective Sunscreen Lotion, Soothing Body Lotion for Normal Skin, Soothing Body Lotion for Dry Skin, Skin Nutrient, AntiWrinkle Cream, Nourishing Skin Cream, Revitalizing night Cream.

Baby Care: Gentle Baby bath, Baby cream, Baby lotion, Baby Powder, Diaper Rash cream, Gentle Baby Shampoo, Moisturizing Baby Soap, Nourishing Baby oil, Gentle Baby Wipes, Baby Care Gift Series.

Pure Herbs, Chyavanaprasha and Forest Honey: Pure Herbs, the pure and concentrated strength of a single herb in the right measure, stimulate & improve body functions. Himalaya Pure Herbs is a range of individual herb extracts. Each Pure Herb is the result of strict monitoring from the farm to the lab. At the lab, Himalaya's proprietary techniques are used to extract the optimum value of each herb. This is followed by rigorous tests by R&D team for potency and consistency. The actions of these extracts benefit the body, irrespective of the individual's body constitution, state of health and metabolic functions. Everyone can benefit from the goodness of these herbs, irrespective of age, sex, body type or other health related factors. The Pure Herbs range comprises of the following:

Amalaki: Useful in treating cough, cold, sore throat and respiratory tract infections. It protects cells from free radical damage and is an excellent anti-oxidant.

Arjuna: This herb improves blood circulation and is used as a tonic for the heart.

Ashvagandha: Commonly known as Winter Cherry, this herb acts as an ant-stress agent that imparts a sense of well-being and helps in coping with life's daily stresses.

Brahmi: A well-known herb that helps in improving general alertness.

Karela: Commonly known as Bitter Gourd, it is known to aid in the metabolism of carbohydrates.

Lasuna: Commonly referred to as Garlic, Lasuna helps in controlling the excess conversion of lipids and cholesterol.

Neem: A popular herb, Neem has anti-bacterial, anti-fungal and blood purifying properties. It is very useful in skin disorders and helps maintain a healthy, beautiful and glowing skin.

Shuddha Guggulu: It regulates fat metabolism and helps remove excess cholesterol from the body.

Shallaki: This herb treats joint problems.

Tagara: It has mild sedative properties, which are useful for insomnia and sleep disorders.

Triphala: A digestive aid compound and a bowel cleanser.

Tulasi: It has anti-microbial and anti-inflammatory properties, and is useful in respiratory tract infections like dry or wet cough, cold and sore throat.

Chyavanaprasha: Himalaya Chyavanaprasha is a unique combination of ancient wisdom and modern science. Its natural ingredients are tested to ensure the highest levels of purity.

Honey: Pure unadulterated Himalaya Forest Honey is sourced from India's untouched forests.

Animal Health: Appetonic Vet, Inflamin Vet, Spemen Vet, Appetonic Forte Vet, Liv.52 vet, Spemen
Forte Vet.

Poultry: Spemen Vet, Spemen Forte Vet, Liv.52 Protec, Geriforte Vet, Tentex Vet, Nefrotec Vet, Aqua culture, Geriforte Aqua, Liv.52 Protec.

9 Pets: Anxocare, Erina EP, Canisep, Nefrotec, Erina Plus. It brings its expertise in health care to animal care leveraging R&D strengths in creating natural drugs and therapies daily care for sensitive pets like cats & dogs. The Himalaya legacy extends to animal health also. The Company offers well-researched, safe, animal health products, harnessed from nature's wealth to alleviate the suffering of animals, to improve their health and to increase their productivity. World-wide there is a growing concern about the presence of chemical contaminants in dairy, meat and poultry products. Taking a cue, The Himalaya Drug Company has extended its expertise to create Ayurveda drugs and therapies for animal health care.

Concern for animal welfare prompted Himalaya to launch the Animal Health Range of products for commercial livestock in July 1998. The products in this range alleviate the suffering of animals and improve their health. This results in healthy livestock whose animal products are safe for human consumption. Realizing the importance of companion animals in today's life, Himalaya launched the Companion Animal Care Range of products in 2000.

Competitors of Himalaya are:

Dabur India, Cholayil Pharma,Vicco Labs and Zandu.

Competition Overview

Company Himalaya Dabur India Cholayil Pharma

Size Rs. 600 crore Rs. 2805 crore Rs. 750 crore

Key Products Liv. 52 Chayavanprash, Hajmola Medimix, Cuticura

Global Presence 67 Countries 27 Countries 27 Countries

Vicco Labs Zandu

Rs. 150 crore Rs. 113 crore

Vajradanti Balm, Chayavanprash

25 Countries Negligible(2% exports)

Customer Satisfaction:

Customer satisfaction here is used with reference to distributors as the customers. Most of the large/super distributors are happy and satisfied with the company they are working with. After working for any company, generally there is great level of comfort which builds up. That comfort level brings in loyalty. Better company policies and friendliness of the staff lead to greater loyalty which in turn helps reducing unethical practices. In large/super distributor model, most of the work is handled by the company representatives who follow a fixed policy, making the work of the distributor easier. The difficulty arises when company fails to support or listen to distributor's problems and/or opinions. In large/super distributor model, information about the products as well as schemes is provided promptly to the distributor on their demand. Quick response from the company helps in generating better company-distributor relationships.

Benchmarking with other Company:

Most of Himalaya drug distribution company's distributors are associated with the company since long period of time. The comfort level between the company and the distributors is quite good. But the company still lacks promptness in solving distributor's problems. Most of the distributors have problems with company software and complain related to that is not getting solved. The lack of response from company leads to distributor not working properly.

Distinguishing Characteristics:

11 Distributors of larger size generally get a lot of support from the company and the support varies depending upon their size. Large/super distributors have a lot of responsibilities and play a major role in the functioning of the company. Company also needs to ensure that the distributors are functioning properly. A friendly attitude of the company encourages the distributors to work efficiently. Solving complains and giving importance to distributor's opinion can bring improvement in their work.

The 4Ps of Marketing Strategy:

Product:

The business has to produce a product that people want to buy. They have to decide which market

segment they are aiming at age, income, geographical location etc. They then have to differentiate their product so that it is slightly different from what is on offer at present so that people can be persuaded to give them a try. The Himalayan Products are Pharmaceutical, Personal Care and Animal Health.

Promotion:

Customers have to be made aware of the product. The two main considerations are target market and cost. A new business will not be able to afford to advertise on national television, for instance and would not wish to because its market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and word of mouth would be more appropriate. The most well know was didi maa ke nuske.

Price:

The price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are:

Penetration Pricing: Charging a low price, possibly not quite covering costs, to gain a position in the market. This is quite popular with new businesses trying to get a toehold.

Creaming: The opposite of penetration pricing, this involves charging a deliberately high price to persuade people that the product is of high quality.

Cost plus Pricing: This is the most common form of pricing. Costs are totaled and a margin is added on for profit to make the total price.

Place:

The business must have a location that it can afford, and that is convenient and suitable for customers and

13 any supplier. Most of the product such as face-wash, shampoo, and health care are to be found in medical shop, general store and kirana in all rural and urban area.

Awards and Recognition:

Himalaya Healthcare, a player in herbal healthcare, has awarded its media mandate to the Starcom MediaVest Group. Himalaya Healthcare is a renowned leader and pioneer in the drugs and pharmaceuticals space and we are excited about this new relationship and look forward to putting our strategic and creative use of media to work for them. Since its inception, Himalaya has focused on developing safe, natural and innovative remedies that will help people lead richer, healthier lives and their obsession with quality is what we find similarity in and we are more than keyed up to get going, said Manish Porwal, MD, India West and South, Starcom Worldwide. Commenting on the account win, Sindhuja Rai, Head of Starcom Bangalore operations, said, Our key role will be to define and communicate Himalayas brand personalities through strategic, targeted and creative media planning. Combined with our depth of expansive research and consumer knowledge, we are sure we will fulfil the mandate given to us.

Subrata Datta, Head of Consumer Division Products, Himalaya Healthcare, said, We are pleased to have found a strategic partner who clearly shares our vision for our brand. We look forward to benefiting from Starcoms depth of knowledge and innovative approach towards media and consumer outreach since that was one of the key motivators for us to make the decision in their favour.

Himalaya Healthcare targets emerging markets:

The Bangalore-based Himalaya Herbal Healthcare is eyeing emerging markets including Thailand and Vietnam for international expansion and is set to increase its footprint across Europe and South Africa soon. Himalaya will be looking at tie-ups with supermarkets and hypermarkets in these nations and will also set up stand-alone stores as and when required, said Saket Gore, business head, consumer products division of Himalaya Herbal Healthcare. Each nation has its own niche and challenges. We give ourselves about 3-5 years to be the top 10 companies in any country we operate, Gore added. Globally, Himalaya Herbal Healthcare sells its personal care products in over 65 countries. In Europe, its products are retailed in about 200 pharmacies in Poland and all major Carrefours and pharmacies in Romania. Gore also said that the companys plans to set up overseas manufacturing facilities in Russia and West Asia for its personal care division are on track and will likely be completed by 2010-11. Himalaya is also

looking at capacity addition in its Bangalore unit to support its planned introduction of new products in the personal care segment.

The company, at present, has two manufacturing units in India Dehradun and Bangalore. Besides the two owned personal-care units, the company has eight outsourced manufacturing units in Bangalore. As part of its expansion plans, Himalaya Healthcare is also planning to open about 12 stores in India per year. We are trying to open one store per month across the nation with investment of about Rs 25 lakh per store, said Gore. In India, Himalaya operates about 127 exclusive brand outlets and 700 shop-inshops. The company, which has been clocking 25-28 per cent growth year-on-year, is looking to maintain this in the coming financial year as well. The privately held company generates 60 per cent of its revenue from its domestic operations, while the remaining 40 per cent comes from its global markets. Gore declined specifics on revenues. On the products front, Gore said that the company is evaluating new products in the skincare range, which will be launched early next year. Skincare segment is biggest revenue generator for the company.

Dealer Survey:

Himalaya product is used by most of the people who would like to use Ayurvedic Products. According to the survey we could make out that the products are used by those people who are very health conscious and have skin related problems. Among all the products of Himalaya, the flow of the product which is high is Himalaya Neem Face Wash. This product is mostly used by teenagers and young women. Himalaya Neem Face Wash has come up with different variations

15

and size to meet the needs of the people with different types of skin problems. Himalaya has been able to create an image among people for its Ayurvedic products. The reason that it has a good flow is because it has come up with different skin related products such as people who have dry skin, oily skin and the normal skin.

The dealer plays a very important role to his customers in inviting them to participate to his business activity. He attracts the customer by advertising the offers brought up by the distributor; this helps the customer to actively participate. Through the survey, it shows that that the company is receiving positive feedback from the customers and has been able to attract the customers. People who once stick to Ayurvedic Products do not tend to change it later.

Conclusion:

Many people turn to natural remedies to avoid having to see a doctor. Without proper dosage information available, many people will probably turn to other products to help them. While we like that ingredient lists are available as well as clinical research, we do not like that most of the products are geared toward general health rather than weight loss. We dont see any weight loss products that offer anything different from what the current market has to offer. We recommend finding a product that contains proven ingredients, such as a fat burner or appetite suppressant, and combining this with a balanced diet and exercise for best results.

Profit and Loss Account Year Income : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income

Mar 11(12)

Mar 10(12)

Mar 09(12)

Mar 08(12)

Mar 07(12)

82.89 0 82.89 0.27 1.14 84.3

67.88 0 67.88 4.74 3.44 76.06

58.71 0 58.71 3.68 8.25 70.64

45.87 30.77 0 0 45.87 30.77 0.9 0.74 -0.18 1.81 46.59 33.32

17

Expenditure : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend 26.24 4.2 2.64 6.75 13.21 2.53 0 55.57 28.73 8.77 19.96 3.08 16.88 0.84 0 0.68 15.36 0 15.36 0 46.71 0 0 62.07 0 21.55 3.99 2.2 6.19 14.61 3.21 0 51.75 24.31 4.44 19.87 2.88 16.99 0.79 0 0.95 15.25 0 15.25 0 31.46 0 0 46.71 0 18.66 4.12 0 5.9 22.15 0.49 0 51.32 19.32 2.82 16.5 2.69 13.81 0 0.04 0.26 13.51 0 13.51 0 17.95 0 0 31.46 0 11.01 10.3 2.87 2.16 0 0 4.61 3.6 15.13 10.05 0.01 0.4 0 0 33.63 26.51 12.96 6.81 2.19 0.97 10.77 5.84 2.16 1.53 8.61 4.31 0 0 0.03 -0.04 0.27 -0.03 8.31 4.38 0 -0.46 8.31 4.84 0 0.32 9.64 4.94 0 0 0 0 17.95 9.64 0 0

Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr Balance Sheet: Year Sources of Funds : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities Application of Funds : Gross Block Less : Accumulated Depreciation Less: Impairment of Assets Net Block 84.05 24.59 0 59.46 50.43 98.13 0 0 148.5 6 93.59 0 93.59 242.1 5

0 0 3.05 29.46 Mar 11 Mar 10 40.58 72.07 4.29 0 116.9 4 39.58 0 39.58 156.5 2

0 0 3.76 27.76 Mar 09 28.87 41.14 5.23 0 75.24 33.4 5.07 38.47 113.7 1

0 0 4.68 24.25 Mar 08 Mar 07

0 0 0 0 3.03 1.99 19.1 16.41

27.4 22.0 3 3 24.9 14.1 6 3 2.34 0 0 0 54.7 36.1 3 6 11.0 9.15 1 7.52 6.75 18.5 15.9 3 73.2 52.0 6 6

82.43 21.52 0 60.91

78.58 18.64 0 59.94

45.1 40.5 1 3 15.9 13.7 5 9 0 0 29.1 26.7 6

19

4 Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities 21.97 21.73 0.14 15.09 58.93 21.29 22.85 0.37 7.92 52.43 16.98 15.65 0.22 8.74 41.59 8.76 8.94 10.7 9.39 4 0.37 0.07 2.83 1.29 22.7 19.6 9 0 138.1 0 0 47.52 0 0 14.28 0 0 0 22.1 7.19 3 0 0

11.38 2.04 13.42 45.51 0 0 0.92 -0.92 242.1 5 16.78

3.06 1.05 4.11 48.32 0 0 0.23 -0.23 156.5 2 6.33

2.79 0.04 2.83 38.76 0.01 0.72 0 0.72 113.7 1 12.7

1.7 2.83 0.03 0.01 1.73 2.84 20.9 16.8 7 5 0.02 0.03 0.98 1.25 0 0 0.98 1.25 73.2 52.0 6 6 4.62 10.7 6

Financial Analysis:

Quick ratio: (Quick assets/current liability)

Years 2007 2008 2009 2010 2011

Quick Assets 9.46 11.11 15.88 23.22 21.87

Current Liability 2.83 1.69 2.79 3.56 12.30

Ratio 3.34 6.57 5.69 6.52 1.77

Quick ratio has nominally fallen 3.334 in 2007 but in 2008 it has been increased to 6.57. The quick ratio has then increased from 5.69 in 2009 to 6.52 in 2010. The quick ratio is more relevant and important than current ratio. It can be concluded that firm has the adequate liquidity.

Current ratio: (Current assets/current liability)

Year 2007 2008 2009 2010 2011

Current Assets 18.40 19.87 32.86 44.51 43.84

Current Liability 2.83 1.69 2.79 3.56 12.30

Ratio 6.50 11.75 11.77 12.50 3.56

The current liquidity of the firm decreases from 12.50 to 3.56 which shows the current liquidity of the firm is falling in the year it goes on increasing or decreasing to a little extent the debtors have increased.

21

Gross profit ratio: (Gross profit/sales *100)

Year 2007 2008 2009 2010 2011

Gross Profit 5.84 10.77 16.5 19.87 19.96

Sales 30.77 45.87 58.71 67.88 82.89

Ratio 18.97 23.47 28.10 29.27 24.08

Gross profit ratio of the company in 2007 was 18.97 which increase to 23.47 in 2008 which shows growth of the company and also profit earned by the company. The increasing gross profit indicates that company doing well this year but compare to last year sales this year it is decreasing which states that company borrowing money from outside.

Questionnaire

Dear Sir/Madam, I Mahima Malli of I MBA student from Justice K S Hegde Institute of Management, Nitte. As part of my curriculum, I am doing a project on Himalaya Drug Company Products dealers. Name of the Dealer: Address: Contact number: 1. Type of dealer? A) Government [ ] B) Partnership firm[ ] C) Private [ ] D)NGO [ ]

2. Purpose of the business A) Profit Oriented [ ] B) Not for Profit [ ] C) Service Oriented [ ] D) Others, [ ] please specify:

3. Total quantity consumed A) Weekly [ ] B) Yearly [ ] C) Monthly [ ] D) Others [ ], please specify:

23

4. Annual turnover (approximately): Rs.[ ]

5. How long have you been a dealer of Himalaya Product? A) Below one year [ ] B) Five to ten years [ ] C) One to five years [ ] D)Above ten years [ ]

6. How do you rate the brand image of Himalaya Product? A) Excellent B) Average [ ] C) Good [ ] D) Poor [ ]

7.

How is the sales performance of the Himalayas Products over the competitors? A) Excellent [ ] B) Average [ ] C) Good [ ] D) Poor [ ]

8. Your opinion about the pricing of Himalaya Products? A) Very High [ ] B) Average [ ] C) High [ ] D) Low [ ]

9. According to your opinion what is the most attractive feature of Himalaya Product? A) Quality B) Brand Image [ ] C) Price [ ] D) Availability [ ]

10. How do you rate the sales promotion activities of Himalaya Products? A) Excellent [ ] C) Good [ ]

B) Average [ ]

D) Poor [ ]

11. How do you define your relationship with the company authorities? A) Excellent [ ] B) Average [ ] C) Good [ ] D) Poor [ ]

12. Do you receive any complaints from the customers? A) Yes [ ] If Yes, SpecifyB) No [ ]

13. Your opinion about the company willingness for the redressal of complaints? A) Excellent [ ] B) Average [ ] C) Good [ ] D) Poor [ ]

14. Your suggestions to improve the sales of Himalaya Products?

25

Bibliography:

www.himalayahealthcare.com/ www.himalayaherbals.com/ en.wikipedia.org/wiki/The_Himalaya_Drug_Company store.himalayahealthcare.com/aboutus/abouthimalaya.htm www.himalayahealthcare.com/pressroom/news013.htm http://www.capitaline.com/user/framepage.asp?id=1 www.indianmba.com/Occasional_Papers/OP74/op74.html www.slideshare.net/amitabhjasuja/himalaya-healthcare - United States articles.economictimes.indiatimes.com Collections