Unichem Final Project Report

Introduction to Organization Study Introduction: This is an overall study of the organization of Unichem laboratory Ltd. where it’s working environment and various policies and practice are studied

OBJECTIVES OF THE STUDY: 1. To familiarize with a business organization 2. To familiarize with the different departments in the organization and their functioning. 3. To enable to understand how the key business process are carried out in organizations. 4. Understand how information is used in organization for decision making at various levels. 5. To know the history about the company. 6. To get clear cut idea about the management and administration. 7. To know about the industrial relation in the company. 8. To analyze the strength and weakness. 9. To get clear cut idea about the various departments and functions. 10. To give findings and solutions. 11. To relate theory with practice.

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INDUSTRY PROFILE The Indian pharmaceutical industry is one of the developing world’s largest and most developed, ranking 4th in the world in terms of production volume and 13th in domestic consumption value. India’s industry, valued at $5.3 billion in 2005, represents less than one percent of the global pharmaceutical industry ($550 billion). Over the last 30 years, India’s pharmaceutical industry has evolved from almost nonexistent to a world leader in the production of high quality generic drugs. India has garnered a worldwide reputation for producing high quality, low cost generic drugs. The industry currently meets India’s demand for bulk drugs and nearly all its demand for formulations, with the remainder supplied by foreign multinational corporations (MNCs). India’s pharmaceutical industry is one of the fastest growing segments of the Indian economy with an average annual growth rate of 14 percent during 2002-2005. Overall, the Indian market for pharmaceuticals is projected to grow at an average annual rate of between 15 and 20 percent during 2005-2010. The surge in production has been driven by legislative reforms, the growth in contract manufacturing and outsourcing, value added foreign acquisitions and joint ventures, India’s mastery of reverse engineering of patented drug molecules, and India’s efforts to comply with its World Trade Organization (WTO) Trade Related Intellectual Property Agreement

obligations. When India joined the WTO in 1995, its

pharmaceutical exports were valued at less than $600 million. By 2005, its exports had grown to $3.7 billion and accounted for more than 61 percent of industry turnover. Currently, Indian pharmaceutical companies produce between 20 and 22 percent of the world’s generic drugs (in value terms) and offer 60,000 finished medicines and nearly 400 bulk drugs used in formulations.4 With changes in India’s patent laws in the early 1970s, Indian drug producers became experts in ‘reverse engineering’ and increased its supply of less expensive copies of the world’s bestselling patent protected drugs. India’s pharmaceutical industry grew and prospered in a highly regulated environment with government price controls on a significant number of formulations and bulk drugs. In January 2005, India amended its patent laws governing pharmaceuticals, bringing them into conformance with the WTO TRIPs agreement. Under the new patent law, Indian drug markers can no longer

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manufacture and market reverse-engineered versions of drugs patented by foreign drug producers. To replace sales lost to TRIPs compliance, many of India’s leading pharmaceutical producers have increased their exports of generic drugs to the United States and Western Europe and entered into research and development agreements, mergers and acquisitions, and other alliances with foreign pharmaceutical firms. India’s Pharmaceutical industry: Independence to 2005 At the time of independence in 1947, India’s pharmaceutical market was dominated by Western MNCs that controlled between 80 and 90 percent of the market primarily through importation. Approximately 99 percent of all pharmaceutical products under patent in India at the time were held by foreign companies and domestic Indian drug prices were among the highest in the world. The Indian pharmaceutical market remained import-dependent through the 1960s until the government initiated policies stressing self-reliance through local production.5 At that time, 8 of India’s top 10 pharmaceutical firms, based on sales, were subsidiaries of MNCs. To facilitate an independent supply of pharmaceutical products in the domestic market, the government of India founded 5 state-owned pharmaceutical companies.6 Today, India is the world’s fifth largest producer of bulk drugs. Government policy culminated in various actions including: the abolition of product patents on food, chemicals, and drugs; the institution of process patents; the limitation of multinational equity share in India pharmaceutical companies, and the imposition of price controls on certain formulations

and

bulk

drugs.

Subsequently,

most

foreign

pharmaceutical

manufacturers abandoned the Indian market due to the absence of legal mechanisms to protect their patented products. Accordingly, the share of the domestic Indian market held by foreign drug manufacturers declined to less than 20 percent in 2005. As the MNCs abandoned the Indian market, local firms rushed in to fill the void, and by 1990, India was self-sufficient in the production of formulations and nearly selfsufficient in the production of bulk drugs. Strengths and weaknesses of India’s pharmaceutical industry: India’s comparative advantages lie in its cost competitiveness, its reverse engineering experience, its large pool of less expensive English-speaking scientific and engineering workers, and its well-developed chemical industry infrastructure.Today,

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India produces some of the cheapest drugs in the world, especially because labor costs are 50 to 55 percent cheaper than in the West.50 Industry experts indicate that infrastructure costs are 40 percent lower and fixed cost are estimated to be 12 percent to 20 percent less that in the United States and Western Europe. Consequently, India can produce bulk drugs that cost 60 percent less that in the West and can open a production plant in India 40 percent cheaper than in developed countries. Because of this, India has become a hub for pharmaceutical research and development and clinical trials for many leading foreign pharmaceutical companies.

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COMPANY PROFILE Introduction: In Himachal Pradesh, the 'Dev Bhumi' or the land of the gods, renowned in India for its mythological nexus and beautiful landscapes, is situated an upcoming industrial township - Baddi. Baddi is located about 45 kms from the architectural paradigm, Chandigarh, the town is surrounded by lush green hills of the Shivalik range of mountains. In the far end of the town, at the foothills, you come across a structure, which nestles in its ambiance, a visual delight. This is the state-of-the-art pharmaceutical manufacturing unit of Unichem Laboratories Limited, merging aptly into its backdrop, yet starkly standing alone in its individuality. The World class Baddi plant houses the manufacturing facility for different formulations of Beta Lactam range of antibiotics. Unichem brings to the customer a blend of modern-day research and nearly six decades of rich experience in the Indian pharmaceuticals industry. The Company was promoted by the late

Mr. Amrut Mody, a pioneer in the Indian pharmaceuticals

business. Even though formulations account for a significant portion of Unichem's revenues, the Company also manufactures active pharmaceutical ingredients (API or bulk actives). The Company has prudently addressed relevant and growing therapeutic areas like gastro-intestinal, cardiovasculars, diabetes, psychaitry, neurology, antibacterials, anti-infectives and pain management, among others. Unichem is headquartered in Mumbai with five manufacturing locations in Roha (Maharashtra), Goa, Ghaziabad (Uttar Pradesh), Pithampur (Madhya Pradesh) and Baddi (Himachal Pradesh). The Company's facilities enjoy credible certifications: for instance, the Goa plant has been approved by UK MHRA (earlier MCA), MCC (South Africa), WHO (Geneva) and TGA (Australia). The Baddi plant has been

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approved by UK MHRA and MCC (South Africa). The Company has received ISO 9001:2000 for all its plants and corporate office. Similarly the Company has received ISO14001:1996 certificates for its formulation plants ( Goa, Ghaziabad and Baddi) and Corporate Office at Mumbai. As a future-focused initiative. Unichem has expanded its Research and Development facility in Jogeshwari (Mumbai) to spearhead research in Novel Drug Delivery Systems (NDDS) and develop non-infringing routes for the manufacture of products directed at the regulated markets. The Company has also funded a collaborative research with the Indian Institute of Sciences, Bangalore. Unichem's growth strategy is fueled and backed by more than 2400 talented and motivated human resources.

Product manufactured in Baddi plant of UNICHEM LABS. LTD.: Beta lactum antibodies  Ampillin and cloxacillin antibodies.  Ampoxin (injection, capsules,

kid tabs,

neonate, & dry syrup)

 Sulbacin injection.  Mymox capsules.  Myclave tablets.  Unienzyme tablets.

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BADDI PLANT VIEW:-

Regulatory Approvals •

Approved by World Premier Regulatory Bodies - WHO, MCC - South Africa and MHRA-UK.

Installed Capacity Dosage Form

Million/Annum/Per shift

Capsules

225

Vials

20

Tablet

48

Dry Syrup

06

HISTORY/Milestones:2006

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•

Unichem Specialities Division Launched

•

Acquisition of 100% stake in Niche Generics Limited, United Kingdom

•

Set up of New Pharma Technology Development Center at GOA

•

Baddi Unit II plant was commissioned

•

Unichem acquired API manufacturing unit at Pithampur

2005

2004 •

Restructuring of Unisearch & Launch of Unisearch CD Division

2002-2003 •

Animal Healthcare division divested

•

Subsidiaries in South Africa & Brazil established

•

Modernization of Ghaziabad formulations plant

2002 •

Established Joint Venture in UK called Niche Generics Limited

2001 •

New R&D Centre set up at Mumbai.

•

New Biosciences R&D Centre set up at Bangalore for research work in Biotechnology

2000 •

Corporate Vision till 2005 unfolded

•

South African Health Authority Certifications for Goa and Baddi Plants

•

Bonus Issue 1:1

•

UK MCA (MHRA) certification for Goa & Baddi Plants

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1999 •

Modern Multipurpose Bulk Drug plant set up at Roha

•

MOLECULAR GENERICS DIVN Launched

1998 •

Baddi formulations plant fully operational

1997 •

Goa formulations plant fully operational

•

New Corporate office set up at Unichem Bhavan Jogeshwari, Mumbai.

1996 •

Merger of Unichem Exports Ltd. & Unisearch Ltd. with Unichem Laboratories Ltd

1994 •

Bonus Issue

•

First major capital infusion in the Company. Private Placement of shares @ Rs. 265 premium

1993 •

Right issue @ Rs.40/- per share

•

Restructuring & transformation of the company inline with future growth strategies

1987 •

Entered Animal Health Care business

1986

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•

Bonus Issue

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1984 •

UNISEARCH Ltd. set up in Collaboration with Upjohn

•

Unichem entered the anti-biotic segment - Ampoxin launched

1983

•

US FDA approval for Hydrochlorothiazide at Jogeshwari plant

•

Anti-TB - Isoniazid, Rifampicin introduced in white tablet form for the first time in India – Anticox

1979

•

NEFEDIFINE - Unichem first to get clearance from Drug Authorities

1978

•

Bonus Issue 1:4

•

Roha Bulk Drug Plant established (Backward Integration)

1976

•

Fine Chemicals unit at Roha was set up

1975

•

Bonus Issue 1:7

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1973 •

Unichem's Research Laboratory recognised for Phd work by Bombay University. Unichem's R&D Centre recognised by Department of Science & Technology

1972 •

Padma Bhushan awarded to Late Mr. Amrut Mody for his pioneering efforts in Indian Pharma Industry

1970 •

Backward Integration for manufacture of Anti-TB Drugs

1968 •

Ghaziabad formulations plant setup

1963 •

Tie up with Uni Sankyo - Co-Marketing formulations

1962 •

Foreign Collaboration with UCB for bulk-drugs

•

First Formulation plant at Jogeshwari

•

Unichem became Public-Listed on BSE - Total Share Capital 44 lacs (October)

•

OESTROGEN & Progestin combinations launched

1953 •

Unichem entered into Hormonal products

•

UNIPROGESTIN launched

1952 •

First exports of Unichem

1944

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•

Unichem was set up by Late Mr. Amrut Mody

ORGANISATIONAL CHART

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Board of Directors

Managing Director

Vice President Sales

Vice President HRD & Personnel

Vice President Finance

Vice President R&D

Regional Sales Manager

HRD Manager

HRD Manager

Sales Officer

Asst. Manager

Quality Assts.

Market Intelligent Assistants

Assistants

Manager Accnts

Manager Tax

Factory Accnts.

Vice President Projects

Vice President Marketing

Marketing Manager

Project Manager

Asst. Mrkg. Mgr

Regional Mrkg. Mgr

Field Officers Market Intelligent System

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ORGANISATIONAL CHART OF PANNNISSERY UNIT

DIRECTOR

MAINT . DEPT

ACNTS DEPT

MAINT. INCHRG

STORE DEPT

V. PRSDNT

R&D DEPT

PURCH S DEPT.

STR KEEPER

ACCOUNTA NT

QLTY DEPT.

PUR .IN CHARGE R&D INCHRG

PRODN . DEPT

PERS DEPT

PROD. IN CHARGE QLTY CTRL CHMST

PERS. INCHRG SUPRVSR

MAINT. STAFF ASSTS.

ASSTS.

WORKMEN

BOARD OF DIRECTORS

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Dr. Prakash Amrut Mody Dr. Prakash Amrut Mody is a doctorate in Organic Medicinal Chemistry from University of Bombay and graduate alumni of Harvard Business School. He is associated with various industry associations. He serves on the Board of M/s. Kewal Kiran Clothing Limited and on all Subsidiary Companies of Unichem. He was appointed Chairman and Managing Director in 1999. He is the Chairman of the Management Committee of Unichem. Mr. Bhoopendra Kumar Sharma Mr. Bhoopendra Kumar Sharma holds a Masters degree in commerce from Agra University and a Postgraduate Diploma in Personnel Management from Delhi University. He was appointed as our Executive Director in 1994. Prior to this appointment he was Vice President in charge of operations and marketing since 1989. He joined the Company in 1969 and was in charge of operations of our Ghaziabad plant till 1989.He serves on the Board of all Subsidiary Companies of Unichem. He has served on the Board of Unichem since 1994. He is a member of the Management Committee and Shareholders Grievance Committee of Unichem. Mr. Prafull Anubhai Mr. Prafull Anubhai, is a management consultant and is associated with educational, research and cultural institutions like Indian Institute of Management (IIMA), Ahmedabad Education Society (AES), Centre for Science Technology and Policy (CSTEP), ATIRA, Saptak (An Indian Classical Music organization) etc. He has done his B.Sc.(Econ.) from the London School of Economics and attended PMD at Harvard Business School. He has 30 years of experience in top management of Textile and other businesses. He serves on the Boards of Torrent Cables Ltd., The EMSAF – Mauritius (The Emerging Markets South Asia Fund), Mahavir Spinning Mills Ltd. (Vardhman Group), Birla Sun Life Trustee Co. Pvt. Ltd. etc. He has served on the Board of Unichem since 1979. He is the Chairman of the Audit Committee and member of the Compensation Committee of Unichem. Mr. Ramdas M Gandhi

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Mr. Ramdas M Gandhi is an advocate and solicitor by profession. He holds a Masters degree in law from University of Bombay. He was enrolled as an attorney at law in the High Court of Mumbai in 1956. He also served as partner in a leading law firm in India namely M/s. Bhaishanker Kanga & Girdharlal, and of M/s. Manilal Kher Ambalal & Co. He presently serves as director in Pidilite Industries Limited, Aarti Industries Limited, Vinyl (India) Chemicals Limited and Aarti Drugs Limited. He has served on the Board of Unichem since 1985. He is the Chairman of the Shareholders Grievance Committee and member of Audit Committee, Compensation Committee and Management Committee of Unichem. Mr. Nasser Munjee Mr. Nasser Munjee holds a bachelor degree in economics from the London School of economics, a master of economic degree from the London School of economics. Presently, he is Chairman of Development Credit Bank Limited. He has served as Managing Director and CEO of Infrastructure Development Finance Company and as Executive Director of Housing Development Finance Corporation. He also has handled consultancy assignments of World Bank, Asian development bank, UN Habitat Centre and UNCDF. He serves on the Board of many leading Indian and multinational companies including Cummins India, Gujarat Ambuja Cements Limited, HDFC Limited, Voltas Limited, Maharashtra Airport Development Company Limited, etc. He has served on the Board of Unichem since 2003. He is a member of the Audit Committee of Unichem. Mr. Prafull D. Sheth Mr. Prafull D. Sheth currently serves as Vice-President, Federation of Asian Pharmaceutical Association, Manila, Philippines, Professional Secretary, SEAR Pharma Forum (South East Asian FIP-WHO Forum of National Pharmaceutical Associations) and Member, Executive Committee, Community Pharmacy Section, International Pharmaceutical Federation. He has served as Executive Director of M/s. Ranbaxy Laboratories Limited, and as President of Indian Pharmaceutical Association. He has been on the Board of Unichem since 2003. He is the Chairman of the Compensation Committee of Unichem.

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Mr. Anand Y Mahajan Mr. Anand Y Mahajan is the Managing Director of Grindwell Norton Limited and the General Delegate of Compagnie de Saint-Gobain responsible for India, Sri-Lanka and Bangladesh. He has served on the Board of Unichem since 2005.

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VISION "To be a global Pharmaceutical company with increasing focus on innovative research and developed markets"

MISSION "To be a caring Pharmaceutical company helping to enhance health through quality products"

OBJECTIVES OF THE COMPANY 1.

To setup and carry out research and development for the manufacture and development of antiseptic soaps, toothpastes, tooth powder etc...

2.

To carry out the business as manufactures, producers, investors, converters, sellers, packers, movers, stockiest, agents, merchants, distributors, consignors, jobbers, or otherwise deal in all kinds and varieties of products used for as personal care, health care etc. But in future company has a plan to produce anti HIV drugs.

SOCIAL OBJECTIVES  Provide employment to the people, who live in and around the production

units  Increase the standard of living of the people  Carry out good business practices for the enrichment of the society as a whole  Contribute to the nations wealth  Extends help for the promotion of education and for the welfare of the society

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PRODUCT PROFILE:1. Active Pharmaceutical Ingredients

Sr. No. Current Product List

Therapeutic uses

1

Amlodipine Besylate

Anti Hypertensive

2

Amlodipine Maleate

Anti Hypertensive

3

Bendroflumethiazide

Anti Hypertensive, Diuretic

4

Bisoprolol Hemifumarate

B-Blocker

5

Brimonidine Tartrate

Anti Glucoma

6

Buprenorphine

Post Operative Analgesic

Hydrochloride 7

Clonidine Hydrochloride

Anti Hypertensive

8

Hydrochlorothiazide

Anti Hypertensive,Diuretic

9

Leflunomide

Immunomodulator, Antirheumatic

10

Meloxicam

COX II Inhibitor

11

Metronidazole

Anti Protozoal / Anti Amoebic

12

Sertraline Hydrochloride

Anti Depressant

13

Telmisartan

Anti Hypertensive

14

Tizanidine Hydrochloride

Muscle Relaxant

ANOTHER PRODUCTS:-

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Sr. Product List

Therapeutic uses

No. 1

Aripiprazole

Antipsychotic

2

Eprosartan

Anti Hypertensive

Mesylate 3

Escitalopram

Anti Depressant

4

Lamotrigine

Anti Epileptic

5

Levetiracetam Anticonvulsant

6

Losartan

Anti Hypertensive

Potassium 7

Pantoprazole

Anti Ulcerative

Sodium 8

Rosuvastatin

HMG-CoA Reductase Inhibitor

9

Zafirlukast

Anti Asthmatic

10

Alfuzosin

Alphablocker

11

Amiodarone

Anti Arrhythmic

12

Erdosteine

Mucolytic

13

Eszopiclone

Anti Insomnia

14

Quetiapine

Anti Psychotic

Hydrochloride 15

Ranolazine

Anti Anginal

16

Venlafaxine

Anti Depressant

Proposed in the near future

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Veterinary Products:Having been deeply imbibed with the philosophy of quality and reliability, Agvet Unichem has been the first to introduce many revolutionary veterinary products. The division has the most unique range of veterinary products that encompasses many facts of ailments and treatments.

Duraprogen* The No. 1 Progesterone brand in the country, it is essential for initiating and maintaining pregnancy. A durable support for pregnancy.

UNIMYCIN* The

pioneering

introduction

of

Neomycin

antibacterial in veterinary as an injection & bolus. Superior pharmacokinetics and higher uterine levels of Unimycin eliminates the necessity for any other intra-uterine theraphy. LIVOFEROL® A liquid feed supplement for cattle & poultry, containing Iron, B-complex, Calcium and Liver Fraction. An ideal vitalizer that enhances production and increases profits.

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FAZOLE® A unique combination of two powerful antimicrobials against anaerobic and aerobic micro organisms and protozoa.

UNIMIX* A unique growth promoter & body defence booster. It ensures a dual advantage of superior body weight gain and increased body defence.

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3. DEPARTMENT STUDY & SWOT ANALYSIS: 3.1 DEPARTMENTS/FUNCTIONAL AREAS:

Functional Area

H.R.

Manufacturing

DEPARTMENT

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Financial Department

Department

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Marketing Department

Dept. of Management Studies

MANUFACTURING DEPARTMENT:Quality assurance Department A separate quality assurance department is functioning in this unit to ensure that all the products meet the required quality. The quality assurance dept. is entrusted with the responsibility of preparing quality control plans and measures and evaluating product quality.

Important Function 1.

The department makes sure that the raw materials comply with the quality specifications by collecting samples. Raw materials are accepted if it conforms to specified quality and are rejected if the raw materials do not comply with the specified quality.

2.

The department checks the quality of output after the completion of each stage of production.

3.

The department attends the customer complaints on quality aspects and takes corrective action.

4.

The department ensures that necessary actions have been taken for the assurance of quality of the final product

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PURCHASE DEPARTMENT The purchase department is responsible for the continuous availability of raw material to the production department. The production department should see that all the required materials are purchased at the right time in the right quantity at the right price. Continuous availability of all the raw material are necessary to keep the production flow uninterrupted. The company makes purchases from suppliers outside as well as inside the state.

Purchase Procedure The company prepares a detailed purchase budget at the beginning of every year, which contains the item and quantity to be purchased of each item. The bill of materials can also be used to know the requirement of raw materials for a certain period of time. The purchase in-charge, after receiving the purchase requisition form initiated by the storekeeper makes necessary arrangements for inviting tender for supplier selection. The supplier selection then company conducts vendor evaluation by collecting complete information about the suppliers. While evaluating supplier’s information like creditworthiness, past experience, delivery time, capacity to supply, mode of payment are collected and evaluated. An approval list of suppliers is prepared after the completion of vendor evaluation. After having selected the supplier, the purchase department proceeds to place the order for materials, specifying the details of goods. The purchase order contains details such as order number and date, suppliers name & address, rate and number of items ordered, mode and date of delivery etc...... The dept sends reminder to supplier for the timely delivery of goods. Goods are verified at the time of receiving with the help of delivery note sent by the supplier and the purchase order. Quality assurance is done by quality department by taking samples from the arrived materials. Goods are received only after the completion of quality and quantity inspection. This follows the preparation of material received note. City College

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RESEARCH & DEVELOPMENT BIOSICENCES R & D Biosciences Research Centre, Unichem Laboratories Ltd., Bangalore 

The Biosciences Research facility is located at the Indian Institute of Science Campus, Bangalore.



This well equipped laboratory became functional in April 2002



The Research centre has initiated collaborations with renowned scientists at the Indian Institute of Science.



The major focus is on biologically active peptides of therapeutic value.



The centre has scientific / technical expertise in the areas of modern biology / chemistry.



The Biosciences Division also interfaces with the R&D centre located at Jogeshwari to explore newer avenues for novel drug discovery.

CHEMICAL R&D Resources •

State of art facility in 35000 sq ft.

•

Highly talented creative & energetic synthetic & analytical team

•

Well equipped library with online web search facility

Speciality Areas •

Asymmetric Synthesis, Grignard reactions, High pressure reactions.

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STORES DEPARTMENT Stores Department is responsible for storing materials and finished products. Stores department is headed by storekeeper and he is assisted by assistants. This unit has a centralized store and it is from here materials are dent to various departments. The departments keep the finished good and all the raw materials required for the production. Raw materials are issued according to the requirements from respective departments.

Functions 1. The department checks the weights of the raw materials when they are received. 2. The department issues raw materials to the production department. 3. The stores department maintains different types of books and registers for the proper control of materials. Various records are maintained in stores department are 1. Goods Received note 2. Stock Register 3. Material Purchase register 4. Quality Register (for recording items of low quality)

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MAINTENANCE DEPARTMENT The maintenance department is responsible for the smooth and proper working of all the machines. This department ensures that all the machines are maintained properly which is necessary for the uninterrupted flow of production. The maintenance department is headed by maintenance in charge and he is assisted by maintenance staff. The maintenance department performs mainly 3 types of maintenance works namely Preventive maintenance Periodic Maintenance Break down Maintenance

PRODUCTION PROCESS:-

SIFTERS

MILLS

GRANULATORS

FLUID BED DRYERS & PROCESSORS

BLISTER PACKING MACHINES

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COATING

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COMPRESSION

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Composition:Unichem Pharma is the flagship division of Unichem Laboratories. The division has a diverse portfolio of over 25 brands in the day therapy areas of Pain management, Anti infectives, Anti allergics, Digestives and Nutritionals.The division has attained leadership in key segments of Cephalosporins and Anti-allergics with brands that have been launched in the past 3 to 4 years. Key among these are Sefdin a brand of Cerfdinir and Lezyncet the leading brand by volumes in the Levocetirizine market.In fact many brands of Unichem Pharma feature amonth the top three brands of the respective segment and three of the brands rank among the top 300 in the Indian pharmaceutical industry.

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Sr. No.

Name

of

Formulation

the Specification and

composition

Type

Size

1

Ampoxin 250

Strip

10C

2

Ampoxin 500

Strip

10C

3

Ampoxin 250

Vial

Vial

4

Ampoxin 500

Vial

Vial

5

Ampoxin 1Gm

Vial

Vial

6

Ampoxin Neonate

Vial

Vial

7

Ampoxin Dry Syrup Bottle

30ML

8

Ampoxin Kid

10T

9

10

Ampoxin - LB 250 mg Ampoxin - LB 500 mg

Strip

COMPOSITION Ampicillin

& Cloxacillin

250mg

& Cloxacillin

125mg Ampicillin 250mg Ampicillin

125mg

&

Cloxacillin

250mg

&

Cloxacillin

500mg

&

Cloxacillin

125mg Ampicillin 250mg Ampicillin 500mg Ampicillin

50mg

&

Cloxacillin

25mg Ampicillin

125mg &

Cloxacillin

125mg Ampicillin

125mg & Cloxacillin

125mg Ampicillin

Strip

125mg

10C

125mg

&

Cloxacillin

125mg & Lactic acid Bacillus 60 X 106

Strip

10C

Ampicillin 250 mg & Cloxacillin 250 mg & Lactic acid Bacillus 60 X 106 Rifampicin 450mg & Isoniazid I.P

11

Anticox II

Strip

4T

12

Tuftax 0.75 G

Vial

Vial

13

Tuftax 1.5 G

Vial

Vial

14

Celib 100 mg

Strip

10 C

Celecoxib 100 mg

15

Celib 200 mg

Strip

10 C

Celecoxib 200 mg

16

Domadol 50 mg

Strip

10 C

Tramadol Hydrochloride 50mg

17

Domadol 50 mg

Ampoule

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300mg

5 *1ML 31

Cefotaxime 500 mg & Sulbactam 250 mg. Cefotaxime 1000 mg & Sulbactam 500 mg.

Tramadol Hydrochloride 50mg

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FINANCIAL ANALYSIS:

Unichem Q1 FY06 Total Income at Rs. 1225.32 million and Net profit at Rs. 322.81 million KEY HIGHLIGHTS: Sales at Rs.1221.50 million as against Rs.1219.38 million in Q1 FY05; YoY growth of 0.17%. Profit before tax and extraordinary gains is at Rs.223.36 million in Q1 FY06 as against Rs.202.12 million in Q1 FY05. YoY growth of 10.51% Net profit is at Rs 322.81 million as against Rs.144.05 million in Q1 FY05. This translates to an annualized EPS of Rs.37.84 as against Rs.16.88 in Q1 FY05. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

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Un-audited Financials Results for the Quarter Ended June 30, 2005 All figures in Rupees Millions INCOME

30th

30th

%

Jun'05 1221.50 3.82 1225.32

Jun'04 1219.38 2.37 1221.75

Change 0.17 61.18 0.29

27.61

4.21

555.82

Finished and Semi-finished goods Consumption of Raw/Packing materials Excise Duty Purchase of Finished goods Staff cost Other expenditure Interest

264.05 66.14 191.27 116.77 300.34 8.47

305.78 98.02 189.37 100.70 293.10 6.28

-13.65 -32.52 1.00 15.96 2.47 3

Depreciation Profit before tax and Extraordinary gains Extraordinary gain Provision for Taxation (Including Deferred

27.31 223.36 133.87 34.30

22.17 202.12 0.00 58.00

4.87 23.18 10.51 133.87 -40.86

Tax) Profit after tax and before prior period 322.93

144.12

124.07

items Prior Period Expenses / (Income) 0.12 Net profit after tax, extraordinary gain and 322.81

0.07 144.05

71.43 124.10

Sales/Income from operations (Gross) Other Income TOTAL INCOME TOTAL EXPENDITURE (Increase) / Decrease in Closing stock of

prior period Items

Segmental Reporting (By Geographical Segment) 30th Jun'05 India

30th Jun'04 1050.2 1024.5

5 Outside India 171.25 Total 1221.5

7 194.81 1219.3

0 City College

% Change 2.51 -12.09 0.17

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Dept. of Management Studies

Subsidiaries of Unichem Niche Generics Limited, our United Kingdom subsidiary recorded sales of Rs214.60 million for Q1 FY06 as compared to Rs.157.10 Million during Q1 FY05

Dividend:Dividend payouts during the last five years are tabulated below: Year

Share

Capital Dividend Per Share (%)

(In Lacs)

Total

Dividend

(In Lacs)

2005-2006

1800.20

100

1800.20

2004-2005

1706.00

70

1194.00

2003-2004

1706.00

60

1024.00

2002-2003

853.00

80

682.40

2001-2002 853.00 80 682.40 • Interim Dividend of 255.90 Lacs was declared as the final dividend for the year 1999-2000.

Unichem expect to enhance value for shareholders in the future:Unichem's various initiatives are expected to generate sustainable growth. Unichem will focus on a prudent management of debt and an increase in its return on net worth. The pursuit of sound corporate governance initiatives are expected to protect shareholder value and help build a business that generates a return on invested capital that is higher than the industry average. - Shares of Unichem are listed and traded on the Stock Exchange in Mumbai and the National Stock Exchange of India Limited.

MARKETING DEPARTMENT Marketing is a subject having wide spectrum. Marketing deals with the whole process of entering markets, establishing profitable positions and building loyal customer relationship. As market change, so does marketing. Marketing is no longer a company department charged with a limited numbers of tasks. Managing and advertising. Sending out direct mail, finding sales leads.

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Providing customer service. It must drive the company’s vision, mission and strategic planning. Marketing is about deciding who the company wants as its customers, Which needs to satisfy, what products and services to offer, what prices to set, what communications to send and receive. What channel of distribution to use and what partnership to develop.

MARKETING STRATEGIES All marketing strategies are built on STP- segmentation, targeting, and positioning. Companies discover different needs and groups in the market place, target those needs and groups that the companies can satisfy in a superior way, and then positions its offering so that the target market recognizes the companies distinctive offering and image. No company can win, if its product and offering resembles every other product and offerings. Today most companies are guilty of strategy convergence namely undifferentiated strategies. Companies must pursue meaningful and relevant positioning and differentiation. Companies normally reformulate their marketing strategies and offerings several times. Economic condition changes, competitors launch new and the produce passes through new stages of buyer interests and requirements. Consequently strategies appropriate to each stage in the products life cycle must be developed.

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Dept. of Management Studies

MARKETING STRATEGIES OF UNICHEM LABORATORY LTD. Whole the marketing strategies of company is formulated and controlled by the head office at mumbai directly. There is no involvement from the production units situated at different part of the country.

The following are the marketing strategies adopted by the company:o To deliver quality products at reasonable prices to all the class of the society. o Differentials the products in order to get distinctive identity in the market. o Adopting sales promotional schemes for both the dealers and customers. o Creating

brand

awareness

in

the

customers

through

continuous

advertisements and event sponsorship.

DISTRIBUTION CHANNELS Marketing channels are set of interdependent organization involved in the process of marketing a product or service available for use or consumption. Channel decisions are among the most critical decision facing the management. The channels chosen intimately affect all the other marketing decisions. The distribution system is a key external source.

CHANNEL FUNCTIONS They gather information about potential and current competitors and other actors and forces in the marketing environment. They develop and disseminate persuasive communications to stimulate purchasing. They reach agreement on price and other terms so that transfer of owner

ship or possession can be done easily They place order with manufacturers. They acquire the funds to finance investments at different levels in the marketing channel. They assume risk connected with carrying out channel work. City College

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Channel of distribution of Unichem Laboratoty Ltd. The Channel of distribution of the company is functioning very well to meet the aim of reaching the product to customers at the right time. Following is the chain of distribution of the company.

Super stockers

Distributors

Whole Sellers

Retailers Finished products are taken by super stockers from the company and it is the Super stockers who supply the products to the distributors.

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ADVERTISEMENT In today’s competitive business environment advertisement has got a crucial role in the success of every business organization. No company can win the competition if its advertisement strategies are not properly planned and created. “Advertisement is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Advertisement makes the customers aware about the products and services of the company. It can be seen that, behind the success of every products in that market, advertisement has played an important role.

KINDS OF ADVERTISEMENT Information advertising Aims to create awareness and knowledge of new products or new features of existing products. Reinforcement advertising Aims to convince current purchasers that they made the right choice.

Advertisement policy of Unichem Laboratory ltd. The company makes use of various Medias to communicate its message and product features to the customers. All the advertisement are planned and implemented directly from the head office Different advertisement Medias used by the company are as follows 

Magazines



T.V. advertisement



Newspapers

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Price of Animals product in Indian market:Quality with Economy: Product

Pack Size Price

Available Active Drug

Cost of treatment*

Helmigard 1.2g x 2

Rs. 25.60 2400 mg

Rs. 21.33

Analgon

1.5g x 1

Rs. 20.00 1500 mg

Rs. 26.66

Albomar

1.5g x 1

Rs. 20.00 1500 mg

Rs. 26.66

Panacur

1.5g x 1

Rs. 28.00 1500 mg

Rs. 37.33

Panfugal

1.5g x 1

Rs. 26.00 1500 mg

Rs. 34.66

HUMAN RESOURCE DEPARTMENT

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Personnel Department has got a vital role to play in every business organization. It can be stated that without the active involvement personnel dept. no work can be done in the organization whether it is production work or managerial work. The Vice president heads the personnel dept. of Unichem Labs Ltd. and he is assisted by managers and other staffs. All the recruitment selection and Placement and salary fixation jobs are done by this Dept. In this unit of Unichem Labs, there is a total strength of 100 employees the number of managerial staff is 10. The packing of hand made detergent cake has been contracted to a out side party. 50 employees are engaged in the packing job. The contractor to whom the has been given fixes the remuneration of those employees. The overall working of this unit takes place in a single shift i.e. from 8.30 to 5.30 Two tea break and lunch break is given between this timing. Function of Personnel Department Salary computation Salary disbursement Leave Marking Attendance Manpower Planning Recruitment Transfer and promotion Unichem lab Ltd obtain its employees for performing both administrative and operative jobs through various modes. Lower level and middle level employee are being selected from the local area itself where as managerial employees are recruited by the following modes. 

Newspaper Advertisement



Weekly Advertisement

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

Recruiting and selecting from other reputed companies



Transfer from other units

Selection procedure The company place advertisement for the prospective employees and the application received for different post are scrutinized by the personal dept. All the application are scrutinized or the basis of the selection criteria followed by the company. The company for different jobs has fixed different qualifications. For production workers, technical qualification is compulsory where as for managerial employees minimum qualification is graduation R&D and quality assurance employees should have M.Sc in chemistry. Qualification for Finance In-charge is C.A. with relevant experience.

Test After having scrutinized the application received, next step is conducting different tests. Tests are conducted to measure the candidate’s abilities like 1. Mental caliber 2. Physical Fitness 3. Subject Knowledge 4. Communication skill etc

Interview Interview is a formal consolation to evaluate the aptitude of prospective employee it is face- to- face and observation method to evaluate whether the candidate is suited for the post to which he has applied After the interview the interviewer comes to know about the skills and abilities of the candidate.

Final selection

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Candidates who successfully complete the interview will be selected to the particular job.

Placement and orientation Placement is the final step in the selection process. It is the process of assigning the employee with the job for which he/she has been selected. Proper placement is necessary in order to avoid employee turnover. Proper placement also helps in reducing the rate of absenteeism and accident rates.

Training Employees are given adequate training in order to make them familiar with the work for which he/she is selected. Both on the job and off the job training is given to the employees. Through training employees are imparted with the basic knowledge and skills for the effective performance of job.

Promotion Promotion is granted to the employees on the basis of performance on their respective jobs. Experience is also taken in to consideration while granting promotion to employees.

Remuneration system Remuneration package of Unichem lab is fixed in accordance with the common industrial standards. The fixation and disbursement of remuneration is entrusted with the personal department.

The components of employee remuneration in Unichem Laboratry are as follows 1. Salary/Wages 2. Provident fund 3. Bonus 4. Labor welfare fund

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The contribution to P.F. and bonus are done in accordance with section 5 of the employees PF and miscellaneous act of 1952. The remuneration to workers is subject to revise after negotiation between union and management. Percentage increment is made after discussion with unions.

Attendance Control The company issues an attendance card to every general worker, which contains particular columns for each day of every month. The security at the gate will mark the attendance in the card and in the register, which is kept with him .Particular registers are maintained for managerial staff. Total attendance is calculated with this card in every month and wages and overtime wages are calculated. Leave The company provides total of 13 days public holidays plus Sundays in a year. Sick leaves are also allowed to workers for sufficient period. Maternity leave is allowed to women workers. Other welfare facilities

First Aid The company is maintaining a first aid box, which contains first aid medicines.

Uniform The company provides uniform to all the employees in the organization. The uniform of managerial and general workers is different

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Healthy and Safety The company provides all the necessary facilities to protect the health of its employees. Strict hygienic measures are being observed inside the factory. Employees who deals directly with chemicals are provides with gumboots, Hand glows and masks.

Recreation The company organizes an annual meet of its employees every year. It includes cultural activities performed by the employees.

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POLICIES:Environmental Policy To manufacture and market pharmaceutical formulations and active pharmaceutical ingredients of requisite standards to comply with customer needs, enhance customer satisfaction and continuously improve the effectiveness of the Environmental Management System. We shall be a responsible care company for the environment by promoting environment, complying applicable environmental regulations and prevention of pollution in all our operations, including planning for energy saving and conservation of natural resources. Quality Policy To manufacture and market pharmaceutical formulations and active pharmaceutical ingredients of requisite standards to comply with customer needs, enhance customer satisfaction and continuously improve the effectiveness of the Quality Management System. This shall be achieved by implementing the practices in processes and systems, updating and conforming to applicable regulatory requirements, continuous and dynamic improvements in quality of products and services.

Certificates:The Company has received ISO 9001:2000 for all its plants and corporate office. Similarly the Company has received ISO14001:1996 certificates for its formulation plants ( Goa, Ghaziabad and Baddi) and Corporate Office at Mumbai.

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SWOT ANALYSIS STRENGTHS 1.

Low cost of production.

2.

Large pool of installed capacities

3.

Efficient technologies for large number of Generics.

4.

Large pool of skilled technical manpower.

5.

Increasing liberalization of government policies.

WEAKNESS 1. Lack of experience to exploit efficiently the new patent regime. 2. Very low key R&D. 3. Lack of experience in International Trade. OPPORTUNITIES 1.

Growing incomes resulting in getting batter medical facilities

2.

Growing attention for health.

3.

New diagnoses and new social diseases.

4.

Saturation point of market is far away.

5.

New therapy approaches.

6.

New delivery systems.

7.

Spreading attitude for soft medication .

8.

Globalization

9.

Easier international trading

10.

New markets are opening.

. THREATS 1.

Containment of rising health-care cost.

2.

High Cost of discovering new products and fewer discoveries.

3.

High entry cost in newer markets.

4.

High cost of sales and marketing.

5.

Competition, particularly from generic products.

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DESIGN OF THE STUDY:LABOUR TURNOVER IN THE UNICHEM OBJECTIVE OF THE PROJECT TOPIC:-

This project is an attempt to deep and thorough approach toward labour turnover in the industries. As in the present scenario of business world, many companies are facing high employee turnover rate and are being affected by it. So this project is tending to find out that what actually the turnover means, what are its cause and effects and how to control the labour turnover. Some points are listed below which can be considered as the objective of this project topic:-

 To identify areas and activities that has the greatest potential benefits in retaining employee.  To discover what is of most concern to your employee, and therefore the greatest risk to loosing them.  To learn the reasons your employees stay to continue and improve in these areas.  How to improve your organization with the specific feedback from the tool and become more attractive to current and potential employees.

Topic summary City College

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 Labour turnover is a universal problem among the industrial workers. It means movements, shifting or migration of workers from one unit to another or from one industry to another.  Turnover is a relatively simple and easily described concept. However considerable confusion often results when addressing turnover, because of differences in how it is defined, how it is counted and how the turnover rate are expressed?  Turnover is also costly although not enough attention is paid to its cost because so much of it is indirect and thus not readily visible. There are varieties of causes of turnover, some which can be corrected and some which can not be avoided.  Reducing are other wise controlling turnover require continuing management attention to its causes and constant recognition of what can be and should be controlled and what can not be controlled. On going attention to turnover is an essential part of the department manager’s role.



From the control point of view the causes of labour turnover may be either avoidable or unavoidable. Avoidable causes are those which can be controlled by the management and unavoidable causes cannot be controlled by the management.

EMPLOYEE TURNOVER

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Turnover is a human resource context refer to the characteristics of a given company or industry relative to rate at which an employer gain or losses staff.

According to Abassi et. Al. (2000): Employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment.

According to Price (1977): The term “Turnover” is defined as the ratio of the numbers of organizational members who have left during the period being considered divided by the average number of people in that organization during the period.

According to T N Chabra: Labour turnover may be defined as the rate of change in the working staff of a concern during a definite period.

No of separations in a year Labour Turnover Rate:- -------------------------------------------- × 100 Average no. of workers in a year

FINDING(CAUSE OF LABOUR TURNOVER):-

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Either employees leave on there own accord per they discharged. Neither fact should be accepted submissively. Every separation of an employee from an organization, weather voluntary or involuntary is serious for the organization. From the control point of view, the causes of labour turnover may be either avoidable or unavoidable.  Avoidable causes:- among the avoidable causes redundancy is the most important which may be caused by seasonal character of the trade or business, shortage of material, inadequate planning, lack of management foresight and determination etc.  The other avoidable causes are:1.

Employee dissatisfaction with job.

2.

Low remuneration.

3.

Long hours of work.

4.

Poor working condition.

5.

Bad relation with supervisor and fellow workers.

 Unavoidable causes:- The unavoidable causes are not due tp the fault of management but are due to other factors which are not under its control. Employee may leave because of the following unavoidable reasons:1.

Personal betterment.

2.

Illness, accidents etc.

3.

Domestic affaires like marriage, pregnancy in case of female employees etc.

4.

Departure from the locality.

5.

Unsuitable for job or misconduct on his part.

6.

Housing or transport problem.

7.

Retirement; death etc.

DATA COLLECTION:1. Employee’s data base.

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2. From internet. 3. From newspaper and magazine. 4. From survey.

LIMITATION OF THE STUDY. Many constraints were involved in doing this study. Some of them are as follows. • Time and money are critical factors limiting this study. • The data provided by the company may not be 100% correct as the company have limitation in supplying their own data. • Finding and suggestion have been given from personal point of view. • Due to work pressure, detailed interaction with the executives was not possible.

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CALCULATION OF EMPLOYEE TURNOVER RATE IN UNICHEM LABS. LTD. BADDI: Employee Turnover in 2005:Total number of left employee in 2005 = 53 Average number of employees in 2005 = 98

Total No. of Separation in a year Attrition Rate = ---------------------------------------------------------- × 100 Average No. of employees in that year

53 Attrition Rate in 2005 = -------------------- × 100

= 55 %

98

 Employee Turnover in 2006:-

Total number of left employees in 2006 = 76 Average number of employees in 2006 =112 76 Attribution Rate in 2006 = ---------------× 100 = 68 % 112

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 Employee Turnover in 2007:-

Total number of left employees in 2007 = 40 Average number of employees in 2007 = 131

40 Attrition Rate in 2007 = ------------× 100

= 31 %

131

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SUGGESTION 1.

To understand the need of employees

2.

Identification of the potential employees of the organization.

3.

To identify the reasons for leaving.

4.

To develop the career progression path.

5.

To bridge the gap in term of salary.

6.

To recognize the employees in the organization.

7.

To enrich the job of the employees.

8.

To enhance the knowledge and skill of the employees

EMPLOYEE RETENTION PLAN Background:It has been seen from the past record that the employees are leaving the organization. The attribution rate of the management staff is 33.8%. During 2005-06. it is the need of hour to implement the plan to reduce the attrition rate. Objective :1. To retain the key performers 2. To reduce the attrition rate in the management cadre by 25% from the previous year. Reasons for leaving:1. For career growth (opportunity for advancement). 2. For higher compensation. Retention Strategies:1. Environmental strategies create and maintain a workplace that attracts, retain and nourishes good people. 2. Relationship strategies focus on how you treat your people and how they treat each other. 3. Support strategies involve giving people the tools equipment and information to get the job done. 4. Growth strategies deal with personal and professional growth.

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5. Compensation strategies cover the broad spectrum of total compensation, not just pay and salary. IMPLEMENTATION OF THE PLAN:1. Environmental strategies:a) Creation of rewards for recognition. b) To give the feeling of respect & appreciation. c) To understand their needs. d) To respect the commitments made to employees. 2. Relationship strategies:In order to understand the feeling of the new employee, it is recommended to spend more time for interaction with the new employees. 3. Growth strategies:Create the annual growth plan for each employee.

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CONCLUSION Turnover does not mean all the time that employee is leaving the organization voluntarily. Sometimes employees leave the organization involuntarily. No doubt, every organization has some strengths which make their edge from others, but every organization have some weaknesses also. As far as the matter of turnover is concerned, this is a great problem in present days. People are always looking for growth opportunities and increase in there salary. So it is very tough job to retain there employees for a long time. From the survey done by me I concluded some points which can fix or decrease the problem of turnover up to certain limit. The points are listed below: Way to heart goes through stomach’ is an old saying. In today’s world, it has become a basic thing for the HR Managers to learn. Good food in the companies and factories earn rule and goodwill from employees, while the bad food creates a lot of ill will and recur in the offices and work premises.  Some employees feel that there should be equal respect for all level of workers and there ideas should be recognized. This indicates that managers should generate a feeling of belongingness among the worker to reduce the turnover in the company.  Some employees feel that there is a great difference in the salary structure of the employees as compared to other companies.  Communication gap is also a reason for conflicts in the companies which may result in to increased employee turnover.  Some employees were of the view that the job satisfaction decreases due to improper training and lack of knowledge, which would increase the employee turnover. So there should be proper training of the employees.  Among these respondents maximum were of the 25-35 age group. Also from the left employee report it was found that people of the age 25-35 years leave the job

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readily. This is due to the fact that they are on the growth stage of their career. So they leave the organization for career growth and better salary.  According to “Labour Law Reporter” females are more stable on their job as compare to the males. Because male require more growth in their career. Emergence of online jobs portal such as: Timesjobs.com, naukri.com, monster.com and clickjob.com have contributed to higher employee turnover.  According to survey conducted by “Labour Law Reporter” companies, which are in the process of expanding, face the higher attrition rate as compare to others.  From the observations and findings, a proper plan to retain the employees is formulated and explained in the following pages.

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BIBLIOGRAPHY

1. Business Newspaper & Magzine. 2. Marketing – Philip Kotler 7th edition. 3. Business World March 2007. 4. Company Annual Employee Reports.

WEB SITES:www.unichemindia.com www.google.com www.guruji.com

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QUESTIONARIE 1. Name in Full: ………………………………………….. 2. Department: .....……………………………………….

JOB DETAIL:1. Date of joining Unichem: - ………………………………………………………… 2. Designation on joining: -

……………………………………….………………

3. When you were first employed, where the duties and responsibilities explained to you? Yes

/

No ………………………………………………….…………………

4. During your working with us was your job properly supervised? Yes

/

No ……………………………………………………………………

5. Describe something that you liked while working with Unichem. ………………………………………………………………………………………… 6. Anything which you dislike while working with Unichem. ……………………… ………………………………………………………………………………………… 7. Did you get an opportunity for personal professional growth? ………………….. …………………………………………………………………………………………

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8. Did you get an opportunity to implement your ideas? Give details. …………………………………………………………………………………………

9. Was the overall treatment in the organization fair and impartial ? Give detail. ………………………………………………………………………………………… 10. While working, did you get all cooperation and guidance from your superior? Give detail. ………………………………………………………………………………………… 11. While working did you get the support you needed from your colleagues and give details. ………………………………………………………………………………………… 12. Are you happy with the salary you getting ? ………………………………………………………………………………………… 13. What suggestion you have to make the organization a batter place of work? ………………………………………………………………………………………… 14. What policies and practices of the organization good and we should continue them? ………………………………………………………………………………………… 15. What policies and practices of our organization are not that good and that we should discontinue? ………………………………………………………

Date: - …………………..

City College

Signature: … …………..

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Dept. of Management Studies