Nagarjuna Herbal Concentrates Limited

NAGARJUNA HERBAL CONCENTRATES LIMITED

INDUSTRY PROFILE Ayurveda is the 5000 year’s old Indian System of medicine. The term evolved from two words Ayur life and Veda means science .This system of medicine follows a holistic approach, diagnosing not just the disease but the whole body constitution of the patient. Today Ayurveda is gaining global popularity .The World Health Organization recognizes Ayurveda as an alternative system of alternative system of medicines used safest system of medicines. Rejuvenation and therapeutic procedure are unique to Ayurveda .This comprehensive, multidisciplinary system of medicine offers specialties like paediatrics, genetics gynaecology, physiotherapy and rejuvenation. Ayurveda was predominant in Kerala and most of the other parts of the India for a long period .But newly developed fear of the side effects and long term ill effects of allopathic medicines coupled with inefficiency to compact a large number of diseases have brought the attention not only Kerala and India but whole world to the biologically based medicines. Now it is the resurrection time of the science. A large number of new organizations in India are entering in the area of Ayurvedic medicines manufacturing. The curiosity of the whole world is to high and research and development taking place all over the world in this science. Companies like Dabur and Himalaya are as strong as any allopathic medicine company. A large number of new organizations in India are entering in the area of Ayurvedic medicines manufacturing. The curiosity of the whole is too high and the research and development taking place all over the world in the area of this science. Companies like Dabur and Himalaya are as strong as any allopathic medicine company. A large number of allopathic medicine manufacturing has started including Ayurvedic medicines in this production list. Nagarjuna this small of Kerala cell Ayurveda medicines to a tune of 20% of the total allopathic sales with number of doctor’s institutions and medical shops not favourably comparable like this. Apart from Ayurvedic medicines which is based on the traditional Indian system of diagnosis and treatment. A large number of herbal medicines are also available in the world market. In fact the growth of the market shores of these products suppresses the growth of Ayurvedic market by several times. Easy method of

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

Ayurveda has excellent remedies for diseases like

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

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NAGARJUNA HERBAL CONCENTRATES LIMITED

COMPANY PROFILE NAGARJUNA HERBAL CONCENTRATES LIMITED (NHCL)

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

The first to take the franchise model of business to service health needs, on wide scale, across the state of Kerala, particularly to the rural area.

•

The first to provide consistent focus on R&D actives in Ayurveda sector in Kerala and established a full-fledged facility for the same.

•

The first to create widespread awareness of medicinal plants among people and to make its cultivation a popular as well as income generating programme.

•

The first to use modern promotional methods such as TV advertising on a large scale to propagate Ayurveda.

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THE GROUP Nagarjuna Ayurveda Group presently consists of the following organizations. NAGARJUNA HERBAL CONCENTRATES LTD (NHCL) The flag company and the GMP Certified manufacturing facility, which began commercial production in 1989, is situated at Alakode Panchayat, Thodupuzha in Kerala. NAGARJUNA AYURVEDIC CENTRE LTD (NACL) Is the hospital providing authentic Ayurvedic Treatments, situated on the banks of Periyar at Kalady in Kerala, in an atmosphere of tranquillity and scenic charm NAGARJUNA AYURVEDIC RETEAT LTD (NARL) A holistic health care centre which provide alternative therapies besides Ayurveda, including classes in Indian philosophy and culture / well supported by a well stocked library .Began operation in 2006 at Moolamkuzhi east of Malayattoor in Kerala. NAGARJUNA RESEARCH FOUNDATION (NARL) Is a charitable trust whose trustees are eminent personalities in society ,besides research activities ,NRF has done yeoman service in popularizing the cultivation of MEDICINAL PLANTS ,through various activities such as planting and distribution of sapling ,imparting technical advice, considering classes and giving awards yearly (Oushadhamitram award) So far it has distributed over 25 lakhs sapling across Kerala.

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

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Vision, Mission and Quality policy Vision  To be the best solution provider in the health care through Ayurveda  Take actions that strengthen the company and inspire the best in other ( by setting an example in relationships, integrity, honesty, humility and hard work) Mission “Restoration of Ayurveda to its original glory” Quality policy  Focusing on process and customer  Developing and empowering people  Encouraging creativity, innovation and team work  Using effective information technology

Product profile Nagarjuna has 427 traditional medicines and 27 patent medicines. A. . TRADITIONAL MEDICINES

The important traditional medicines of Nagarjuna are: 1. Arishtams 2. Asavams 3. Oils 4. Kuzhambus 5. Ghurutham 6. Lahyams

7. Tablets

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8. Avarthis 9. Choornams 10. Kashayams 11. Kashaya choornams 1. Arishtams These are fermented types of medicines prepared adding honey , Jiggery , sugar and the powder of some medicines including spices .These preparations will have an alcohol content of 6-10% , which is generated due to the fermentation process .Self –fermented preparations using Kashayams are called Arishtams

and using boiled and cooled water or juice of herbs is called

Asavams. •

Abayarishtam

•

Amruitharishtam

•

Asokarishtam

•

Balarishtam

•

Dasamoolarishtam

•

Dasamoolajeerakam

2. Asavams •

Aravindasavam

•

Bhringarajasam

•

Chandanasavam

•

Kanakasavam

•

Kumaryasavam

•

Lohasavam etc.

3. Oils These are medicated oils. Decoction juice, milk etc, is added to oils like sesame oil, coconut oil or and is heated with powdered raw drug, until the water content

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evaporate completely. In this process, the medicinal extracts of the raw drugs make the oils medicated. •

Amruthaadhithailam

•

Arimedhashilam

•

Brahmeethailam

•

Balaaguloochuaadithailam

•

Eladi thailam

4. Kuzhambu These are only for external application, unique to kerala. A mixture of sesame oil, ghee and caster oil substitutes oil base of medicines for external application. •

kottam chukkadi kuzhambu

•

panchasnecham

•

dhanwntharam kuzhambu

•

eladi kuzhambu

•

kaarpasathyaathi kuzhambu

•

saharachari kuzhambu

5. Ghurutham Ghuruthams are medicated preparations of ghee. Ghee is medicated by adding decoction, power, juice etc are processing until the ghee becomes medicated add water freely. • Amrutharaasha ghurutham • Brhami ghurutham • Swaaraswatha ghurutham • Kalyanaka ghurutham • Thriphala ghurutham

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7. Lehyams Lehyams are semi- solid preparation of drug, prepared with the addition of jiggery or sugar candy and boiled with the prescribed liquid and fine power of drugs, until the correct constituency is obtained. • Agasthya Rasayanam • Ajamamsa Rasayanam • Chinchady Lehyam • Narasimha Rasayanam • Mahibhara Lehyam 8. Tablets •

Chandrapra Gulika

•

Chukkumthippladhy Gulika

•

Kankayanam Gulika

•

Karuttha Gulika

•

Dhanandhraram Gulika

9. Aavarthies Aavarthies come under the category of medical oil. Here the selected quantity of oil being medicated by adding medicines repeatedly. The process of medication is repeated to 7, 14, 41, to101 times. This enhances the potency of oil. •

Dhwanandhaaram 21 Aavarthy

•

Dhwanandhaaram 41 Aavarthy

•

Dhwanandhaaram 101 Aavarthy

10. Choornams Choornams are preparation made from into power from using heavy pulverized •

Ashta Choornams

•

Elaadigama Choornams

•

Hinguvancadi Choornams

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•

Raasanadi Choornams

•

Thaaieespatradi Choornams

11. Kashayams Disintegrated drugs are concentrated and extracted into water. The drugs are boiled in water and are concentrated •

Punarnnavady Kashayams

•

Naadi Kashayams

•

Dhashamoola Kashayams

•

Balaageerakadhi Kashayams

•

Indukandham Kashayam

12. Kashaya Choornams

B.

•

Amruthotharam Kashaya Choornams

•

Aaragwadham Kashaya choornams

•

Balaguloochyaadi kashaya choornams

•

Dasamoolakaduthirayam kashaya choornams

•

Dasamoolam kashaya choornams

PATENTS-PROPERIETARY MEDICINES The important patents –proprietary medicines of Nagarjuna are 1. CARDOSTAB TABLET

Effective in hypertension due to any cause 2. GASON It is a strong anti-flatulent drug 3. HAEMATONE Ideal medicine for splenetic and hepatic disorder 4. HALIN Effective in common cold, nasal congestion and sinusitis

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5. NAGARJUNA ELADASAMOOLA LEHYAM

For all kinds of cough, sore throat and dyspnoea 6. NATURAL TABLETS

For gas troubles, in-digestion etc. 7. RHEUMATIC BALM

External application in rheumatic etc. 8. SMRITHY GRANULES

It improves the normal brain functions. Excellent in improving memory, grasping power intelligence thinking power especially in children 9. THALIS PATHRATHI TABLETS Effective for cough, distaste, spruce and sore throat 10. NAGARJUNA HONEY Honey packed in small bottles for use in homes and with food OVER THE COUNTER PRODUCTS (OTC) Name

Packing

Ayurvedic tooth powder

50 g

Chyavanaprasam

250, 500 g 1 kg

Dandruff hair oil

100 ml

Digest drops

25 ml

Kerapookuladi Lahyams

400 g

Kids oil

100 ml

Nagarjuna agmark honey

50,100,200,500 g

Nagarjuna ayurvedic soap

15,75 g

Nagarjuna snana choornam

50 g

Nagarjuna thali podi

50 g

Neelibringadi keream

100 ml

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Special eladasamoola lehyam (40g)

1 jar

Tusker balm

10 g

Area of operation The company has not limited its operations to the Boundaries of Kerala alone, but has extended to 17 states outside Kerala. The main areas of operations are Karnataka, Andhra Pradesh, Goa, Delhi, Maharashtra, Gujarat, U.P, M.P,

Rajasthan, Orissa, and

Uttaranchal. Nearly 150 franchises with services of Doctors and quality medicines are already operating in outside Kerala. Russia, Sri Lanka, U V, Bahrain etc. are some new market, which they have opened last year. They have already started a treatment centre in West Indies. Nagarjuna presences in exports now extend to Asian, South American and Middle East markets, operations have ready been started to countries such as Canada, Kuwait and other Gulf Countries, Singapore etc... Unlike the other market, these markets are steady market where the company gets consistent businesses.

Ownership pattern Authorised share capital

-

Rs. 50000000

Issued, subscribed & paid up Capital -

Rs. 26480000

Earnings per share

-

Rs. 1.68

Reserves and surplus

-

Rs. 30218000

(Of the above shares 180772 shares has been issued as fully paid up bonus shares)

Key personnel: Managing director

- V.G. Devdas Namboodiripad

Directors

- P.S.Vijayakumar

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Bankers

-

P.P.Namboodiri

-

Leena Devdas

-

V.G.Jathaveedan

-

K. Rajan

-

Vaidyabhooshanam K. Raghavan Thirumulpad

- State Bank of Travancore, SME Branch Kalamassery

Competitor information The major competitors of Nagarjuna Ayurvedic group are the following companies:i.

Kottakkal aryavaidysala

ii.

Ashtavaidyan Thaikkattu mooss Vaidyarnum Oushadhasala

iii.

Pankaja Kasthuri herbal India limited

iv.

Dhanwanthari vaidyasala

v.

SD Pharmacy

vi.

Oushadi

Among them the most popular or more competing companies are kottakkal aryavaidyasala and oushadi oushadasala. A comparison between Nagarjuna and these companies performance are as follows. PARTICULARS MARKET SHARE

NHCL

KOTTAKKAL

OUSHADI

36%

28%

18%

NO.OF PRODUCTS

480

505

340

LABOUR FORCE

500

510

400

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CUSTOMER

71%

69%

58%

SATISFACTION

Infrastructural facilities The company is set up in about 8 acres of land. There are three blocks of buildings to run the business. It does not have its own medicinal plants garden. But they provided the necessary seeds to the local people n let them grow the plants in their own garden and procuring from them. It has various types of plant & machines to process the various medicines. The various types of machines and tools that are used to develop the products are:

Decentigator



Pulp razor



Drug boiler



Pans –open pans and close pans



Fermentation tanks



Filling machines



Evaporator



Pressing machines



Tabletting and capsuling machines

Canteen The canteen facility is provided to employees. The canteen runs on contract basis with the required terms and conditions. All the employees are provided with free canteen facility and for this purpose there are some charges which they have to pay per year.

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Health The premises of the company are kept clean. Accumulation of dirt and refuse is removed daily. All the machines and equipment used are cleaned regularly.

Ventilation and temperature The company is well ventilated and free circulation of free and fresh air ensured. There are measuring instruments to measure the temperature as most of the part performed with the help of heat.

Lighting Every part of the work place is provided with lighting and artificial lighting is present.

Drinking water Clean and cool drinking water is provided to employees of the company. The water provided is purified only.

Toilet facilities Latrine and urinal accommodation is provided and maintained cleanly and provided separate latrines for men and women.

Achievements/ Awards Nagarjuna Herbal Concentrates Ltd is also the first corporate house in the Ayurvedic sector in Kerala. It also has the certification of ISO 9007:2000 and the GMP (Goods manufacturing Practices) certification. It has also got The Green Channel Award from the Tourism department.

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Work flow model The work flow of Nagarjuna herbals concentrates Ltd are in the following way:-

PROCUREMENT OF RAW MATERIALS

WARE HOUSING

POWDERING

PROCESSING

QUALITY CERTIFICATE FROM CONTROLLER

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DESPATCHING

.

Future growth and prospects Company will continue to focus more into providing quality Ayurvedic Treatment .The infrastructure and other are being modernized to meet the changing demands .The demand for quality Ayurvedic Treatment is increased and the most interesting factor is that , people from abroad is showing involving in Ayurvedic Treatment . Company is taking well efforts to capitalize this “Global Interest’ in Ayurvedic by providing quality Treatments. This will help the company to grow both in terms of turnover and profits. The company may also introduce certain quality products such products are developed by the Research and Development Section of the company .The company may introduce highly promotional strategy in Ayurveda. It will influence the more consumers in the world wide. The company may develop various activities like advertisement, free medical camp, seminars etc.

The company have the following plans to be implemented for the future growth and prospectus:1)

Continuation of new product development and form change of existing products

2)

Standardisation of quality parameters of existing range of products

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3)

Development of new products range for selected diseases and general health care

4)

Collaborative research with renowned institutions

5)

GLP accreditation

McKENSY’S 7S FRAME WORK

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MCKENSY’S 7S FRAME WORK

STRUCTU RE

STRATEG Y

SYSTEMS

SHARED VALUES

STYLE

SKILLS

STAFF

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It’s all very well devising a strategy, but you have to be able to implement it if it’s to do any good. The seven S frame works first appeared in “The Art of Japanese management” by Richard Pascal and Antony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in “In search of excellence” by Peters and Waterman, and was taken up as a basic tool by the global management consultancy Mckensy: It’s sometimes known as the Mckensy’s 7S model.

SOFT Ss The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed as “soft Ss” by Mckensy:

Skills The capabilities and competencies that exist within the company.

Shared values The values and beliefs the company have. Ultimately they will guide employees towards “valued” behaviour.

Staff The company’s human resources and how they are developed, trained and motivated.

Style The leadership approach of top management and the company’s overall operating approach.

HARD Ss’ The three Ss across the top of the model are described as “Hard Ss”:

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Strategy The directions and scope of the company over the long term

Structure The basic organisation of the company, its departments, reporting lines, areas of expertise and responsibility and how they are inter- related.

Systems The Formal and informal procedures that govern daily activities covering everything from management information system to the systems at the point of contact with the customers.

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1.

STRUCTURE

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

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I. Production Department The company’s structure of the production departments as follows: Production Manager

Asst. Manager

Department Officers

Supervisors

Workers

The Production plant is equipped with modern machineries and operations are organized under watchful eyes of talented physicians and health scientists. Production and manufacturing facilities are fully geared for mass production of Ayurvedic medicines in strict adherence to ancient Ayurvedic scriptures. Incorporation of modern technology for mass production, upholding traditional values makes the facilities a well- integrated synthesis of tradition and modernity. The company’s

manufacturing operations are mechanized to a large extent by making

further contributions by way of hygiene, accuracy and speed.

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The production function involves two essential stages such as 1. Material Management Stage 2. Manufacturing Stage In material management stage, arranging the various raw material in the production form. In this stage the supervisors are check the quality of the material using the production process. The company may adopt the MRP (Material Requirement Planning). In manufacturing stage, the raw materials are converted in to final product of the company .In Ayurvedic product area the quality and effectiveness is more important. So the company may appoint various supervisors in various production levels. The supervisors are highly skilled and trained. They are checking the Quality and Quantity of .specialized equipments. The production manager should prepare work study and recording the production procedure .The production manager developed techniques that focused on economic efficiency in manufacturing and recording the production procedures. II.

Marketing Department

The structure of the marketing department of the organization as follows:

Marketing Manager

Area Sales Manager

Department Officers

Sales Representatives

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

III.

Finance Department

The company structure of financial department as follows: Asst. General Manager (Finance)

Asst. Manager

Executives

Office Assistance

The main objectives of financial department as follows:

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

Planning and controlling of firms financial resources

 Managing the fund raising program  Determining the various investment opportunities  Prepare accurate accounts and statement of business operation  Determine the financial position of the company  To take dividend policy decision  Arranging the working capital at timely  Determining and analyzing the various accounting ratios  To prepare effective and efficient budget in periodical manner  Participating the company’s future growth planning programmed In financial department all the office works are computerized .So the account works are quick and accurate.

IV.

Human Resources Department HR Manager

Personnel officer

Legal Officer

Executives

Dept. Staff

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The main functions of Human Resource Department are:  Selection Select

the

appropriate

Human

Resources

in

the

organization  Recruitment Search for prospective employees and stimulating them to apply for job in the organization. The company may choose internal and external sources for the recruitment function.  Training and Development The company provides quarterly or yearly training and development programme to the employees of the organization. This program will be helpful for:  Increasing productivity  Increasing morale of the employees  Increasing organizational stability The company provides both on the job and off the job training programme.

V.

Maintenance Department Maintenance officer

Technicians

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

metrology tools, office equipment (computer, fax, Photo copy machines) etc. Maintenance is an essential activity in every manufacturing firm .This department managing the day to day problem of keeping the physical plant in good operating condition. VI.

Purchase Department Purchase manager

Assistant manager

Store manager

This department held with the purchasing function of the organization. The main functions are:  Purchasing right and required quality raw materials in appropriate time  Purchase machinery, office furniture, tools etc.  Purchasing the office assisting things like papers, pen, printing equipments etc.

 Selecting suitable suppliers  Determining the materials stock levels Like EOQ (Economic Order Quality)

Recorder period etc.

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VII.

Sales Department AGM

Manager

Depot managers

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

 To maintain proper sales procedure The sales department is also coordinate with the marketing department of the company.

VIII.

Research and Development

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

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

Production development with proof in allopathic language

•

Process R &D for production process standardization

•

Presenting the traditional products in the modern convenient forms

Nagarjuna has been successfully established standard parameters for medical herbs, operating procedures in the manufacturing process as well as developed and fixation of scientific criteria for the different classes of finished goods (medicines) .Introducing standards in to packing also is an objective of this Research and Development wing.

Skill A skill is the ability, knowledge and understanding to accomplish a task. Skills may be defined as what the company does best that distinctive capabilities and competencies that reside in the organisation. The major skill that the employees in the organization required is experience. The workers should have reasonable theoretical as well as practical knowledge in the specified fields.

Style The company have various departments for their functioning. The activities of marketing departments are de-centralised manner whereas distribution is through

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NAGARJUNA HERBAL CONCENTRATES LIMITED

various depots which consist of 2-3 districts of the state. Rest of all the departments’ activities are centralised. The employees in the process of manufacturing are skilled to their own operation. The supervisors in the various levels and field are having high attitude to motivate the employees to achieve the organisational goals The middle level and the top level management are highly dedicated and they can coordinate the various functions. The styles used by the NHCL are: a) Top down approach b) Authoritarian approach

a) Top down approach It is a style of decision making where all the decisions flow from top management to lower level workers. In this mill each and every decision is taken by management only. The worker should not be involved in taking decisions. The decision taken by the top management in day-to-day operation of the mill is: Salary increment, infrastructure facilities, uniform decision etc. In certain rare cases management using bottom-up style. The workers can give there suggestions. b) Authoritarian approach The NHCL follows the authoritarian style of management. The management is all powerful in the mill. The centralized decision making process follows in the mill  Conducting of the meeting  Mills rules and regulation  Deciding of auditor

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Strategy The company has various strategies which are formulated on the basis of the vision, mission of the company. The main strategy is to carry on the business in such a way where the customers and employees are kept as the supreme and satisfied. NHCLs strategy is to attain total competence in their quality products has served as the building block for creating a good brand. NHCL is focusing on the well relationship with the employees. The route the organization has to choose for its future growth, a plan that the organization formulates to gain a substantial competitive advantage. The management is not only targeting the Indian market but also the foreign market. They are also thinking of increasing the sales within the country Strategies are introduced to compete with the new upcoming competitions because of the globalization. New marketing strategies are being introduced by them

•

Cost cutting strategies

•

Operational excellence

•

Product innovation

•

Customer intimacy

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

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Merit rating system After training is conducted performance appraisal of trainees is done in the mill. Management will observe the candidate for 3 months after the training. Training -in -charge observes of the trainees the attendance, discipline, dependability, interest on work, job knowledge, skill etc.The method used in performance appraisal is Ranking method. Behaviour ranking method Under this method, “the supervisor or the evaluator rates or arranges his men in order of merit from the most efficient”. In this method they will rank the employees depending upon the criteria like attendance, working performance, behavior. The criteria and marks for ranking are given below: 4 marks for attendance, 3 marks for work performance and 2 marks for behaviour.If the trainee scores good marks, the wages will be increased from Rs50 to Rs60 or from Rs 60 to 70, depending on performance. If the trainee scores the marks the trainee will be removed from the job.

Staff The company have around 500 workers which are employed to carry out the various works of the company. Out of these 500 around 200 people are management staff and rest of them are lower level workers. The company have got a lot number of dedicated workers and they have been provided with attractive salary packages. In general, the average salary package is Rs. 10,000 for administrative staff and Rs.8500 for lower level workers.

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Shared values Nagarjuna herbals concentrate limited has got its own prestige and status among its customers and competitors. Nagarjuna group stands the second largest company in Kerala in the field of Ayurvedic products. The company has got a very nice picture among the costumers. It makes the advantage of the market leader and social beneficiary for the state. It has its own contribution in helping Kerala in the promotion of the tourism. The workers are are more loyal to the company. The basic philosophy of Corporate Governance at NHCL is to achieve business excellence and to create and enhance the value for its Customers, Employees and Business Associates and thereby to make a significant contribution to the Economy. The company endeavors to achieve the highest level of transparency, accountability, integrity and responsibility by following the best practices in corporate Governance.

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NAGARJUNA HERBAL CONCENTRATES LIMITED

SWOT ANALYSIS OF NHCL

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NAGARJUNA HERBAL CONCENTRATES LIMITED

SWOT ANALYSIS OF NAGARJUNA HERBALS CONCENTRATES LIMITED

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

Weakness:  Lack of enough advertisement

 Low number of production and manufacturing units  Lack of enough medicinal gardens

Opportunities:  Growing market demand.  Expanding its distribution area  Link with tourism area  Development of its own medicinal plants garden

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NAGARJUNA HERBAL CONCENTRATES LIMITED

 Scope for innovation of Research & Development

Treats:  Transportation problems.  Entry of duplicates  Scarcity of raw materials  Cut throat Competition (e.g.: Kottakkal, Oushadhi, Dhanwandhari)

 Customers may substitute other products

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NAGARJUNA HERBAL CONCENTRATES LIMITED

SUMMARY OF ANNUAL REPORT FOR THE YEAR 2006-2007

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Summary of the financial report  Gross revenue of the company has been gone up by 411.83 lacs from the past years revenue of 1830.6 lacs. The percentage of increase in gross revenue is 22.497% The profit before depreciation and preliminary expenses are increased by 19.16 lacs from the past years profit of 77.92 lacs. The percentage of increase in the present year than that of previous year is 24.58%. 

The amount of profit transferred to general reserve in the present year is 44.54 lacs which is more by 21.43 lacs than that of previous years transfer. The profit earned by the company is transferred to general reserve which made a 17.29% increase in the reserve fund. 

The company has employed its fund for the acquisition of investment in outside the company. The total of investment in the present year is increased by 28,12,930 from the balance of previous year, i.e., 91.04 lacs. Thus the increase percentage is 30.898%. 

The amount of net fixed assets of the company has been increased by 20,69,631. The percentage of increase is by 5.15%. The total amount of fixed assets has been affected by the increased in depreciation rates. 

The amount of sundry debtors has been increased by 12769836. It makes the company to employ more funds for its working capital management. The percentage increase in the debtors’ is 37.23%. 

The net current assets of the company have been gone up by 8108391 than that of the previous year balance of 69901902. This lead to a 11.599% increase in the total net current asset for the year. 

The earning per share for the year is 1.68 which is increased by 0.81 than that of the EPS of 0.87.The percentage increase in the EPS is 93.10%. Thus the company is giving a high return margin to its investors. 

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NAGARJUNA HERBAL CONCENTRATES LIMITED

LEARNING EXPERIANCE DURING IN-PLANT TRAINING

 The company has got a very good quality control section which provides me the

important information regarding the quality assurance in the product development.  During my in-plant training in Nagarjuna herbal concentrates limited, was a very good experience all together. I learnt so many things about the company like how the things are done in a company and how people work in teams. It is a company where, even the plant manager sits down with workmen to work on machine. I got to know how the bottle necks come when everything is going right in the production and how to approach their remedies.  I got to learn about the functioning of the HR department as my external guide was a personnel officer.

Further I learnt how promotions were given in the

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

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NAGARJUNA HERBAL CONCENTRATES LIMITED

BIBLIOGRAPHY

1.

www.nagarjun.com

2. www.google.co.in 3. Kothari C.R. (1997)Research Methodology ,New Delhi: Wishwa prakasham. 4. Philip Kottler, (2001) Marketing Management – The Millennium Edition, New

Delhi: Prentice Hall of India Pvt Ltd.

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Annexure

FINANCIAL RESULTS

Gross revenue

Current year( 200607) (Rs. in Lakhs)

Previous year (200506) (Rs. In Lakhs)

2242.43

1830.6

Profit/ loss before depreciation and preliminary expenses

97.08

77.92

Depreciation and preliminary expenses

32.58

29.83

Profit (loss) before taxation

64.5

48.09

Provision for taxation

12.5

3.5

Deferred tax

4.10

17.14

Fringe benefit tax

3.15

4.35

Prior period taxes

0.21

0.00

44.54

23.11

a) Proposed dividend

0.00

0.00

b) Tax on proposed dividend

0.00

0.00

44.54

23.11

Profit /loss carried to Balance sheet Appropriations :

c) General reserve

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NAGARJUNA HERBAL CONCENTRATES LIMITED

BALANCE SHEET As at 31st march 2007 and as at 31st march 2006 PARTICULARS

SCH. Nos.

AS AT 31.03.2007

AS AT 31.03.2006

SOURSES OF FUNDS I. Share holders fund: Share capital

1

26480000

26480000

0

0

2

30217881

25763895

A) Secured loans

3

59813033

50453076

B) Unsecured loans

4

10241000

11474000

5450000

5040000

132201914

119210962

77774727

72951902

Less: depreciation

35525954

32772760

Net block

42248773

40179142

25918

25918

11916930

9104000

a) Inventories

58367007

56618141

b) Sundry debtors

47066018

34296182

1984628

5354196

d) Other current assets

105976

96145

e) Loans and advances

19199141

1418512

Share capital advance II. III.

IV.

Reserves and surplus Loan funds

Deferred tax liability

TOTAL APPLIACTION OF FUNDS I.

Fixed asset Gross block

5

Capital work in progress II. III.

Investments

6

Current assets, loans & advances

7

c) Cash & bank balances

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Less: current liabilities and provisions

8

Net current assets TOTAL

126722770

110549789

48712477

40647887

78010293

69901902

132201914

119210962

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2007 and 31.03.2006 PARTICULARS

SCH. NOS

For the year ended 31.03.2007

For the year ended 31.03.2006

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NAGARJUNA HERBAL CONCENTRATES LIMITED

I.

Income

Sales

9

224243415

183036478

Stock differential

10

384938

6069837

Other income

11

1116036

1477765

225744389

190584181

II.

Expenditure

Material consumed

12

101424087

86175002

Manufacturing administrative and selling expenses

13

98478752

82747085

9165265

6782997

6967816

7085719

216035920

182790803

9708469

7793378

3258169

2983457

6450300

4809921

1250000

350000

410000

1714000

Fringe benefit tax

315000

435114

Prior period taxes

21314

0

4453986

2310806

1.68

0.87

Excise duty Financial charges

14

Profit/loss before depreciation Depreciation

15

Operating profit Less: provision for taxation Current tax Deferred tax written back

Profit transferred to general reserve EPS fully paid up shares

RELEVANT RATIOS I.

Gross profit ratio Gross profit/ net sales * 100 = 9708469/ 224243415 * 100 = 4.329%

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NAGARJUNA HERBAL CONCENTRATES LIMITED

The company is performing in a efficiently where the profitability ratio shows 4.329% of its annual sales. II.

Net profit ratio Net profit/net sales*100 = 4453986/ 224243415 * 100= 1.986% The earning capacity of the firm is satisfactory as it has 1.986% of the annual sales as the profit margin which has to be transferred to the general reserve.

III.

Current ratio Current assets/ current liabilities 126722770/ 48712477 = 2.6:1 The company has a safe a very good current ratio as the standard ratio is 2:1 which gives the company more liquidity

IV.

Liquid ratio Liquid asset/ current liabilities = 68355763/ 48712477 = 1.403:1 The company is having a good liquid ratio of 1.403:1 where the standard ratio is 1:1.

V.

Debt equity ratio Total debt capital/ equity capital 75504033/56697881 =1.332:1

The debt equity ratio shows a satisfactory relation in the mix of debt and equity of the firm where as the optimum one is 2:1 VI.

Fixed assets ratio Fixed assets/ Net sales = 40179142/ 224243415 = 0.179: 1.

To, The HOD,

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NAGARJUNA HERBAL CONCENTRATES LIMITED

Department of MBA Rajiv Gandhi institute of technology Hebbala, R T Nagar post Bangalore

Sir/madam, Sub: weekly report-I regarding in-plant training I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, I am undergoing my in-plant training in Nagarjuna herbal concentrates limited on ..........., I reported to the organisation . On the first day i underwent an introduction training which was mandatory to all trainees. During this week i was told about the history of the organisation, nature of business, its competitors, vision, mission, awards and achievements.

Thank you yours sincerely, Tom.C.Saji

Internal guide Prof. Pundareek vittala Finance faculty RGIT

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NAGARJUNA HERBAL CONCENTRATES LIMITED

To, The HOD, Department of MBA Rajiv Gandhi institute of technology Hebbala, R T Nagar post Bangalore

Sir/madam, Sub: weekly report-II regarding in-plant training I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during this week I had been to production department, human resources department and marketing department.

Thank you yours sincerely, Tom.C.Saji

Internal guide Prof. Pundareek vittala Finance faculty RGIT

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NAGARJUNA HERBAL CONCENTRATES LIMITED

To, The HOD, Department of MBA Rajiv Gandhi institute of technology Hebbala, R T Nagar post Bangalore

Sir/madam, Sub: weekly report-III regarding in-plant training I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, During this week i. Started the McKensys 7S frame work. I also did the study in all other departments.

Thank you yours sincerely, Tom.C.Saji

Internal guide Prof. Pundareek vittala Finance faculty RGIT

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NAGARJUNA HERBAL CONCENTRATES LIMITED

To, The HOD, Department of MBA Rajiv Gandhi institute of technology Hebbala, R T Nagar post Bangalore

Sir/madam, Sub: weekly report-IVregarding in-plant training I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during the last week i did the DWOT analysis of the company. I also collected the balance sheet and other subsidiary datas for the project completion.

Thank you yours sincerely, Tom.C.Saji

Internal guide Prof. Pundareeka vittala Finance faculty

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NAGARJUNA HERBAL CONCENTRATES LIMITED

RGIT

1.

Main entrance of the company

2.

The copy of ISO certificate

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NAGARJUNA HERBAL CONCENTRATES LIMITED

3.

A visit in the herbal plant garden maintained in the company compound

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NAGARJUNA HERBAL CONCENTRATES LIMITED

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