Transit Time Analysis For Sea Shipment Of

Pharma Products and Sectoral Analysis of

Pharmaceutical Industry In India

By:
Prashant Ghimire
Abhilash Nayak
Introduction to International Logistics and
Analytics
• Movement From Retail to E-tail
• Advanced Transportation Analytics
• Route Planning and Optimization
• Just-In-Time Inventory Optimization
• Inventory management and capacity
• Transit Time Analysis
Introduction to Pharma Industry In India
Export Data for Pharma Industry in India
The NIFTY PHARMA
• represents about 6.1% of the free float market capitalization
• captures the performance of the pharmaceutical sector
• 10 companies listed on National Stock Exchange of India (NSE).
• used for benchmarking fund portfolios, Launch Mutual Funds
Historical Movement of NIFTY PHARMA
Comparison with other Indices
Companies in NIFTY PHARMA (as on September
7)
Company Name
Aurobindo Pharma Ltd.
GSK
Cadila Healthcare Ltd.
Cipla Ltd.
Divi's Laboratories Ltd.
Dr. Reddy's Laboratories Ltd.
Glenmark Pharmaceuticals Ltd.
Lupin Ltd.
Piramal Enterprises Ltd.
Sun Pharmaceutical Industries Ltd.
Objectives of the Study

Primary Objective
• To Identify the main transit activities which affects the total transit time
from invoice creation to delivery in the US shore through different liners.
• To classify the different transit times taken on the basis of the port used
during loading and port used during discharge.
• To group the different variables related to transit times on the basis of their
relativity
• Find the Key Difference Between The Factor Analysis an Cluster Analysis
Secondary Objective
• To study the Pharma Industry in India
• To group the NIFTY PHARMA companies based on different variables.
• To find the significant Variables which relates to the NIFTY PHARMA
Companies
• To classify the NIFTY PHARMA Companies on the basis of their BETA
values.
• Compare the Results of the two analysis
• To reduce the variables in a Company’s Sheet for easier Analysis
Scope of Study
• find the relationship between different factors and variables in the
data and use different multivariate technique to analyze the available
data.
•
• try to give an insight on the Pharmaceuticals Industry in India, its
present condition and the opportunity in the Pharmaceutical
Industry.

• analyze the NIFTY PHARMA index by studying the Profit and Loss
account of each company in the NIFTY PHARMA and use multivariate
analysis to assess them.
Data Collection Techniques Used
• Primary Data
• Secondary Data
Data Process Flow
• Collection of Data
• Extraction of Required Information
• Formating the data
• Pre Calculations
• Analysis
ANALYSIS OF NIFTY PHARMA
• Beta Analysis
• Factor Analysis
• Cluster Analysis
Beta ANALYSIS
• Calculations of Common Sized Profit and Loss Acount
• Calculation of Variance for each and Covariance for the Index and
Each Stock
• Calculation of Beta Value
• Segregation of Companies into groups based on Beta Values
Beta Analysis Results

Above 0.4 Below 0.4

Auro Cadila

CIPLA DIVIS

Reddys GSK

Lupin Glenmark

SUN Parimal
Factor Analysis
Revenue From Operations [Gross]

Excise/Sevice Tax/Other Levies

NET Revenue From Operations

Other Operating Revenues

Other Income

Cost Of Materials Consumed

Purchase Of Stock-In Trade

Operating And Direct Expenses

Changes In Inventories Of FG,WIP And Stock-In Trade

Employee Benefit Expenses

Finance Costs

Depreciation And Amortisation Expenses

Other Expenses
 Communalities
Communalities
Initial Extraction
RevenueFromOperationsGross Revenue From Operations [Gross] 1.000 .964

LessExciseSeviceTaxOtherLevies Less: Excise/Sevice Tax/Other Levies 1.000 .932

RevenueFromOperationsNet Revenue From Operations [Net] 1.000 .960

OtherOperatingRevenues Other Operating Revenues 1.000 .861

TotalOperatingRevenues Total Operating Revenues 1.000 .982
OtherIncome Other Income 1.000 .982
CostOfMaterialsConsumed Cost Of Materials Consumed 1.000 .941
PurchaseOfStockInTrade Purchase Of Stock-In Trade 1.000 .957
ChangesInInventoriesOfFGWIPAndStockInTrade Changes In Inventories Of1.000 .553
FG,WIP And Stock-In Trade
EmployeeBenefitExpenses Employee Benefit Expenses 1.000 .872
FinanceCosts Finance Costs 1.000 .857
DepreciationAndAmortisationExpenses Depreciation And Amortisation Expenses1.000 .849

OtherExpenses Other Expenses 1.000 .926

Extraction Method: Principal Component Analysis.
Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Cumula
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance tive %
1 5.309 40.836 40.836 5.309 40.836 40.836 5.258 40.446 40.446

2 2.737 21.052 61.888 2.737 21.052 61.888 2.512 19.321 59.768

3 2.268 17.448 79.336 2.268 17.448 79.336 2.373 18.252 78.019

4 1.320 10.155 89.491 1.320 10.155 89.491 1.491 11.472 89.491

5 .713 5.487 94.979

6 .403 3.097 98.075
7 .148 1.136 99.212
8 .090 .692 99.904
9 .013 .096 100.000
10 2.242E-16 1.725E-15 100.000
11 8.279E-17 6.369E-16 100.000
12 -7.580E-17 -5.830E-16 100.000
13 -4.683E-16 -3.602E-15 100.000
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3 4
RevenueFromOperationsGross .968 -.051 -.074 -.140
Revenue From Operations
[Gross]
LessExciseSeviceTaxOtherLevi .332 -.470 .682 -.369
es Less: Excise/Sevice
Tax/Other Levies
RevenueFromOperationsNet .965 -.026 -.112 -.123
Revenue From Operations [Net]
OtherOperatingRevenues Other.191 -.101 .243 .869
Operating Revenues
TotalOperatingRevenues Total.984 -.050 -.049 .095
Operating Revenues
OtherIncome Other Income -.984 .050 .049 -.095

CostOfMaterialsConsumed Cost.300 -.831 -.343 .208

Of Materials Consumed
PurchaseOfStockInTrade .208 .472 .815 -.163
Purchase Of Stock-In Trade
ChangesInInventoriesOfFGWIP -.393 .531 -.054 .337
AndStockInTrade Changes In
Inventories Of FG,WIP And
Stock-In Trade
EmployeeBenefitExpenses .435 .720 .405 .000
Employee Benefit Expenses
FinanceCosts Finance Costs -.890 -.161 .022 -.196

DepreciationAndAmortisationEx .177 .309 -.758 -.383

penses Depreciation And
Amortisation Expenses
OtherExpenses Other Expenses .242 .814 -.444 .088
Rotated Component Matrixa
Component
1 2 3 4
RevenueFromOperationsGross Revenue.965 .030 -.122 -.129
From Operations [Gross]
LessExciseSeviceTaxOtherLevies Less:.237 .204 -.914 .000
Excise/Sevice Tax/Other Levies
RevenueFromOperationsNet Revenue From.968 .019 -.074 -.131
Operations [Net]
OtherOperatingRevenues Other Operating.184 -.051 .084 .904
Revenues
TotalOperatingRevenues Total Operating.985 .006 -.051 .096
Revenues
OtherIncome Other Income -.985 -.006 .051 -.096
CostOfMaterialsConsumed Cost Of.352 -.838 -.291 .172
Materials Consumed
PurchaseOfStockInTrade Purchase Of Stock-.096 .927 -.275 .112
In Trade
ChangesInInventoriesOfFGWIPAndStockInT -.377 .254 .550 .207
rade Changes In Inventories Of FG,WIP And
Stock-In Trade
EmployeeBenefitExpenses Employee.375 .830 .192 .072
Benefit Expenses
FinanceCosts Finance Costs -.890 -.151 -.119 -.168
DepreciationAndAmortisationExpenses .257 -.189 .531 -.682
Depreciation And Amortisation Expenses
OtherExpenses Other Expenses .292 .307 .842 -.195
Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.
Factor Division

Component

1 Direct Revenues 2 Expenses 3 Extra Expenses 4 Extra Revenue

Gross Revenue From Operations

Purchase Of Stock-In Trade Other Expenses Other Operating Revenues
[Gross]

Employee Benefit
Net Revenue From Operations [Net]
Expenses

Total Operating Revenues

Cluster Analysis
Agglomeration Schedule

Cluster Combined Stage Cluster First Appears

Stage Cluster 1 Cluster 2 Coefficients Cluster 1 Cluster 2 Next Stage

1 7 10 .006 0 0 7

2 8 9 .009 0 0 3

3 4 8 .009 0 2 5

4 3 6 .010 0 0 5

5 3 4 .016 4 3 6

6 1 3 .047 0 5 7

7 1 7 .050 6 1 8

8 1 5 .059 7 0 9

9 1 2 .096 8 0 0
 Cluster Division VS Beta Division

Cluster 1 Cluster 2

SUN Glenmark Division 1 Division 2

Auro Cadila
GSK Cadila
CIPLA DIVIS
PRIMAL Cipla
Reddys GSK

Reddys Aurobindo

Lupin Glenmark
Lupin DIVIS
SUN Parimal
Factor Analysis VS Cluster Analysis
Shipment Analysis
• Variables Used For Analysis
INVOICE TO STUFFING

INVOICE TO ETA

INVOICE TO ETD

ETD to ETA

Stuffing to ETA

Stuffing to ETD

Gross Wt.
Transit Data For Aurobindo Pharma Analysis
• Multiple Cluster Analysis
• Principal Component Analysis
Two-step Cluster Analysis
• Two-step cluster analysis identifies groupings by running pre-clustering first and
then by running hierarchical methods.
• Because it uses a quick cluster algorithm upfront, it can handle large data sets
that would take a long time to compute with hierarchical cluster methods
• To determine the number of clusters automatically, Two-Step uses a two-stage
procedure that works well with the hierarchical clustering method.
• In the first stage, the BIC for each number of clusters within a specified range is
calculated and used to find the initial estimate for the number of clusters. The
ratio of change in BIC at each successive merging relative to the first merging
determines the initial estimate.
• In the second stage, the initial estimate is refined by finding the largest relative
increase in distance between the two closest clusters in each hierarchical
clustering stage.
Two-step Cluster Analysis
• The Cluster Distribution Table presents the distribution of the observations in the cluster, or the number of observations in
each cluster. This is the first indicator of the size of clusters.

• Also, the number of the excluded observations is also given, or in this example 82 observations are excluded because they do
not have sufficient data for the chosen variables so they can be grouped in of the clusters as they have very less number of
containers shipped in comparison to other clusters.
Similarly, for the company, the main delivery port is New York with 841 containers for the year-2017-19.
Factor analysis Using Principal Component Analysis