centaur report

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CHAPTER: 1

INTRODUCTION

T. John College, Bangalore

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Organizational Functioning is an important factor for any Organization to

achieve the desired goals and Objectives. This requires Co-ordination at all

levels to smooth functioning. This report aims to understand the Function of

relation to different departments.

As a part of two year MBA program at the end of 2 n d semester, we had to carry

on a project in an organization in order to understand the organization

structure and their functions. This was a great opportunity to get the first hand

information and understand the functioning of the various departments.

I did my Organization Study at CENTAUR PHARMACEUTICLS PVT. LTD.

It is a Mumbai based Pharma Company. It was a great learning experience as it

is quite necessary for all the management students. The main purpose of doing

the organization study was to study the various departments of the organization

and understand their basic functions, their purpose, achievements, competitors

and the mission and vision of the company and their progress towards that.

All general information we get in course is all book knowledge, on which we

entirely cannot depend. It is very important to observe the actual working of an

organization and the overall structure of an organization. The actual

professionalism can be studied only through experience.

CONCEPT OF ORGANIZATION

Organization is the process of;

1. Identifying and grouping the work to be performed

2. Defining and delegating responsibility and authority

3. Establishing the relationship for the purpose of enabling people to work efficiency together

in accomplishing objectives.


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PRINCIPLES OF ORGANIZATION

Principle means the theoretical basis on which something is built up. The theoretical basis is

formulated from fundamental truth. Some of the important principles to be followed for

developing round and efficient organizations are:

Principle of unity of objective.

Principle of specification.

Principle of co-ordination.

Principle of unity of command.

Principle of span of control.

Principle of exception.

Principle of flexibility.

Principle of simplicity.

Principle of communication.

Principle of efficiency.

REQUSITIES OF A GOOD ORGANISATION

The objective are to be clear, candid and well defined and the organization must

have a capacity to achieve it.

All activities therein must be implemented easily and effectively.

All activities therein must be properly coordinated.

Organization must be complete; it should include all essential activities.

The communication system within the organization must be effective.

The span of control at all level must be reasonable.

There should be provisions for future expansion, whenever needed.

All activities and functions should follow defined procedures.

The organization must be such that it promotes the morality of employees.

There should be a proper diversion of authority and responsibility.

Importance of an organization

Significance of the organization in any institution may be discussed as below:


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(i) It ensures optimum use of human resources: It establishes persons with

different interest’s skills, knowledge and viewpoints.

(ii) It stimulates creativity: A sound and well conceived organization structure is the

source of creative thinking and initiation of new ideas.

(iii) Use of improved technology: A good organization provides for optimum use

of technological improvements.

(iv) Co-ordination in the enterprise: In a good organization, the different

departments perform their functions in a closely related manner.

(V)Executive development: The pattern of an organization structure has strong

influence on the development of executives.

(v) It ensures cooperation among workers: A good organization promotes mutual

goodwill and cooperation among workers also.


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Chapter: 2

INDUSTRY/COMPANY

PROFILE

2.1 INDUSTRY PROFILE


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The pharmaceuticals industry develops, produces and markets drug license for use as

medications. Pharma company can deal in generic and/or brand medication.

They are subject to a variety of laws and regulations regarding the patenting, testing

and marketing of drugs.

The main aim of a particular pharmaceuticals industry is to develop research and

distribute drugs in order to provide healthcare for the people in the society.

Pharmaceuticals industry is very much dependent upon the development and

discoveries that are made to search new types of drugs and also search for new kind of

medicines.

Drug discovery and drug development are two very aspects in the pharmaceuticals

industry.

Drug Discovery:-

It is a process through which potential drug are designed or discovered. It has been

observed in the past that most of the drugs were invented by means of isolating the

active component from remedies which are traditional in nature or through another

kind of discovery known as serendipitous discoveries.

Drug Development:-

This process is taken forward after the discovery is done and a thing is identified as a

potential drug. The development takes places immediately after that as the component

is turned into a medicine. So this is also considered as a very important process and

has great importance in the pharma industry.

GLOBAL SCENERIO


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For the first time ever global spending on prescription drugs topped $ 723 billion even

as growth slowed somewhat in Europe and North America.

The US account more than half of the global pharmaceutical market, with 48% of

market share followed by EU and Japan.

Market Share

US JapanFranceGermanyUKItalySpainCanadaKoreaChinaothers

In the annual Fortune 500 survey the pharmaceutical industry topped the list of the

most profitable industries, with a return of 17% on revenue.

INDIAN SCENERIO


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Indian pharmaceutical sector is currently undergoing unprecedented change, much of

this is due to the country’s introduction of a system of product patents on January 1,

2005.

Indian pharma industry is worth of US $ 10 billion at 14 % per year. It is one of the

largest and most advanced among the developing countries.

The Indian pharmaceuticals sector is highly fragmented with more than 20,000

registered units. It has expended drastically in the last two year.

The top 20 companies control 62.31% of the market with market leader holding

6.54% of the market share.

The Indian Pharmaceutical Industry today is the front runner of India’s science-based

industries with wide ranging capabilities in the complex field of drug manufacture and

technology.

It ranks very high in the third world, in terms of technology, quality and range of

medicines manufactured. From simple headache pills to sophisticated antibiotics and

complex cardiac compounds, almost every type of medicine is now made

indigenously.

It plays a key role in promoting and sustaining development in the vital field of

medicines, boasts of quality producers and many units approved by regulatory

authorities in USA & UK.

International companies associated with this sector have stimulated, assisted and

spearheaded this dynamic development in the past 53 years and helped to put India on

the pharmaceuticals map of the world.

The Pharmaceutical Industry in India meets around 70% of the country’s demand for

bulk drugs, drug intermediateires, formulations, chemicals, tablets, capsules, oral and

injectables.

India’s leading drug manufacturer becoming global players utilizing both organic

growth through the gradual development of their business and merger & acquisition

as they seek to boost their presence in existing market and open up new ones.

Some figure of the Indian Pharmaceutical Industry are given below:


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India currently represents just US $ 10 billion of the US $ 723 billion global

industry.

Increasing at 14% per annum compared to 8% growth of global market

overall.

Indian sector represents just 8% of the global industry by volume putting it on

4th place.

It accounts 13% by value.

Its drug exports have been growing at 30% annually.

75% demand met by local manufacturing.

Production cost is 50% lower than western countries.

R&D cost is 1/8th of the western countries.

Clinical research is 1/10 lower than western countries.

It made 350 bulk drugs.

The innovative scientific manpower in Indian industry is best in the world.

2.2.KEY PLAYER IN THE INDUSTRY


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S. No. COMAPNY NAME MARKET SHARE (%)

1. Abbott + Piramal +Solvay 6.54

2. Cipla 5.58

3. Ranbaxy 4.93

4. GSK 4.86

5. SUN 4.33

6. Zydus Cadila 4.03

7. Alkem+ Cachet + Indchenue 3.30

8. Lupin 3.22

9. CENTAUR 3.01

10. Pfizer + Wyeth 3.00

11. Aristo 2.56

12. Intas 2.20

13. Dr. Reddy’s 2.06

14. Sanofi + Aventis 1.98

15. Wockhardt 1.95

16. Micro 1.94

17. Macleods 1.83

18. Novartis 1.72

19. IPCA 1.67

20. Emcure + Zuventus 1.60

2.3 COMPANY PROFILE


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Centaur, is a company that focuses on turning science into caring – Centaur, Impart health to

life. For more than three decades, Centaur Pharmaceuticals has been working to advance

health care for people around the world. Founded in 1978 by a young Entrepreneur Mr. S. D.

Sawant, Centaur Pharmaceuticals has evolved into a diversified health care company that

discovers, develops, manufactures and markets innovative products and services. Products

and services of Centaur span the continuum of care from prevention and diagnosis, to

treatment and cure. Centaur today is a global, diversified health care company devoted to the

discovery, development, manufacture and marketing of pharmaceutical, diagnostic,

nutritional and hospital products. The company now employs approximately 1,200

workforce, 1200 stockist, 250000 pharmacies, and 250000 doctors and markets its products

in 50 countries and 5 continents worldwide.

Centaur extends this commitment with a strong presence in India as it has grown and evolved

it's operations in India over many decades. Our products encircle life from newborns to

ageing adults. Centaur has built expertise and leadership in primary care therapeutic areas

like Gastroenterology and Pain care. Our specialty areas include Neuroscience, Metabolic

and formulations.

Centaur serves the needs of Indian consumers with products backed by science and R&D.

Centaur have locally developed brands like Sinarest, Kofarest, Metoz, Livosil and protobex.

Centaur pharmaceuticals operates with 4 plants two in Goa, one in Ambernath and another at

Pune in Maharashtra. The plant operates at 90% of the installed capacity and works in two

shifts.

Centaur pharmaceuticals works upon the four pillar of the company. They are:-


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API (Active Pharmaceuticals Ingredients)

Centaur is India’s largest manufacturer and exporter of Psychotropic API and has introduced

24 API for the first time in India. Centaur API manufacturing facility near Mumbai conforms

to USFDA standards and our clientele includes Big Pharma, generic majors and Indian

multinationals. Our specialisation ranges from API and intermediates to custom synthesis and

process chemistry. An integrated approach ensures that we can scale up capabilities from

conceptualisation to commercialisation.

Formulations

Centaur ranks among India's TOP 50 pharmaceutical companies by prescriptions (CMarc)

and by stockist audit (ORG-IMS). Centaur's All-India network includes a 1000 strong sales

force that covers 250,000 doctors and 250,000 retailers every month. Over 50 million

prescriptions of Centaur brands are generated by doctors of all specialities, annually.


API

Formulation

Contract Research

Contract Manufacturing

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Prescription audits (ORG-IMS & CMarc) confirm that Sinarest is a clear leader in the Indian

Anti-Cold market. One prescription of Sinarest is generated every second by a doctor in

India!

Centaur has demonstrated its competence in transforming products into strong brands,

reinforced by successful extensions, resulting in a formidable presence in key therapy areas.

Centaur brands are leaders in six therapeutic segments and rank among the top 3 in six other

therapeutic segments.

Centaur's manufacturing facilities at GOA conform to WHO-GMP standards, and dosage

forms include tablets liquids, injectables (vials and ampoules), eye and ear drops, and

ointments.

CRO (contract Research Organisation)

10,000 square feet, ultra-modern, contract research organisation (CRO) with a 36 bed clinical

pharmacology unit (CPU), has been set up at Centaur House, our corporate headquarters.

Facilities include Bio-availability (BA), Bio-equivalence (BE), and Bio-analysis & Clinical

trials. State-of-the-art R&D laboratories dedicated to formulations and API, approved by the

Government of India are also located at Centaur House.

Contract Manufacturing

Centaur has fully integrated and well equipped manufacturing plant which manufacture for

different big player in India and abroad. It has fully scalable 25,000 square metre formulation

facilities.

It manufacturing plants conforms to USFDA/EU standards. Which manufacture 3 billion

tablets, 600 million capsules, 12 million units of ophthalmic drops and 20 millions vials and

ampoules.

Centaur manufacturing plant works on it full capacity. It delivers the quality as well as

quantity at the same time. It maintains the level of standard for the human life and improving

continuously.


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Some other factoid of centaur:

One of India’s few, fully integrated pharmaceuticals players.

Competencies across the pharmaceuticals value chain.

Building relationship with global pharmaceuticals majors.

Business spread (sales) :

API – 22%

Formulation – 78%

International – 20%

Domestic - 80%

India’s largest manufacturer and exporter of Psychotropic API.

Presence in Latin America, the Caribbean, Africa and Southeast Asia.

Centaur brands generate over 50 million Rx annually in India.

Brand Leadership in 6 therapy area.

Sinarest – Anti-cold Brand Leader since 1997, 1 Rx every second.

All India Reach :

1200 sales force.

1200 stockist.

250000 pharmacies every month.

250000 Doctor of all specialities every month.

45th largest pharma company in India in terms of prescription.

69th largest pharma company in India in terms of volume.

Centaur introduces India’s 1st natural Herbal Antioxidant named RIBAKA.

Planning a full equipped world class biotechnology park in Pune.


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CULTURE & VALUES

AT CENTAUR

We believe…

Transparency is the key to success

We strive…

To make it possible

We are a team…

Everyone matters

We achieve…

Winning is a habit with us.

We aim high…

With our feet firmly on the ground.

We are Centaur…

we impart health to life.

Our employees have always been our tremendous strength, and that is the main reason

behind our success. CENTAUR has always recognized the importance of freedom to

express and innovate.

Hence we have cultivated a work culture that permits our employees to learn, innovate &

experiment new ideas. Centaur Pharma places a great value on innovation and expects its

people to act and think differently.

We continuously encourage all individuals to take up new challenges with adequate

responsibilities which have majestically helped us by contributing towards a handsome

growth year after year.

End Result Focused, which would drive the Performance


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Both our customers and products are accorded highest priority with sensitivity,

commitment with time & cost for delivering innovative and affordable medicines in local

and global market.

Command with Innovation

Everyday we learn something new, make mistakes & again learn from our mistakes. We

always allow and tolerate genuine mistakes. We encourage & empower our people to take

risks with intelligence.

We know that there is a very thin line between EGO and SELF-RESPECT. Being in the

big chair places no guarantee of retaining position and respect. Therefore among our people

the status consciousness is minimal; leadership is the buzzword. Credibility &

accountability is the essence. Providing access to the people to explore our resources is

absolutely unrestricted.


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2.4 PRODUCTS

Centaur has created a balance between volumes from acute therapy and sustainable business

from chronic therapy, areas which promise long term growth and profitability. As a future

focused organization, we are building capacities and capabilities in India and across

international geographies with strong demand potential. Our portfolio comprises brands in

the Respiratory, Opthal / Ontological, Pain Management, Nutritional, Anti-infective,

Gastrointestinal, Cardio-Diabetics, Dental, Dermatological and Herbals therapeutic

segments.

CARDIO-DIABETICS (16) ANTI INFECTIVE (9)

1. Amlotrust Abclox

2. Glimitab Cefocef

3. Liporest Ciprotini

4. Losatrust Leeflox

5. Metolactone Monoflox

6. Metoz (p) Ziox

7. Preface Azyxin

8. Telmitrust


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GYNECOLOGICAL (6) GASTROINTESTINAL (3)

Blush Livosil forte caps

Bonium Livosil B caps

Folex Livosil susp.

Oraxin

Protobex

OTOLOGICAL/ OPTHALMIC (27) ANTI-INFLAMMATORY (4)

Brimopress Infladase

Britesite eyedrops Nimutab

Catarest Centamol

Ciprocent Translipo Triple

I-Gesic

Leeflox (P)


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Diclogenta

Glucotim

Pilopress

Ocufree

Oculist

Ocupol

Ocurest

Ocutab

Otiflox

Ocuwet

Oxop

Viscomac

Centaflox

Arrest

Re-lub

Leeflox 1.5


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OTORHINOLARYNOLOGY (12) RESPIRATORY (9)

Sinarest (P) Albutamol

Sinarest Nasal Kofarest Drop

Sinarest Vapocap Kofarest Syrup

Sinarest Levo Kofarest Plus syrup

Sinarest Plus Kofarest C

Sinarest AF Kofarest DX

Sinarest CC Kofarest PED Drops

Sinarest LP Kofarest PD Syrup

Sinarest PD Nasal MTnl ( Tab/ Kid Tab)

Sinarest Oral

Sinarest S Nasal

MTnl ( Tab/ Kid Tab)


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2.5 Market Share:

Centaur pharmaceuticals are 45th largest company in India. It have .83% share in

the Indian market.

Financials:

Centaur pharmaceuticals had recorded a turnover of Rs 220 crore for the last fiscal. Of

this, about Rs 96 crore came in from the domestic market and the rest from exports as also

bulk drugs. Centaur brands are exported to over 50 countries.

The revenue of centaur is generated both from the domestic as well as from the international

market. The proportion of the revenue is 80:20 respectively in domestic and international

market.

Sales (in crore)

1st Qtr2nd Qtr3rd Qtr4th Qtr

Other financial aspect:

Centaur has recorded 11% growth in 8 successive quarter.

The brand Sinarest has recorded a prescription of 21 crore in last fiscal year.

Company is invested 110 crore for the new R&D plant in Pune.


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2.6 PORTER’S 5

FORCES ANALYSIS


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INDUSTRY COMPETITION

Most competitive industry in the country with as many as 20000

different player.

Top player of country has only 6.54 % market share and top five have

26.24%.

High growth prospects.

Very low entry barriers.

Fixed cost requirement is low and need for working capital is high.

Product differentiation is low.

Firms try hard to persuade Doctors who play a major role in creating

brand awareness.


New Entrants

Supplier Competition Buyer

Substitute

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Bargaining Power of Buyers

End user of the product is different from the influencer.

Doctor information is high so can ask for incentives.

Consumers have no choice to buy what doctor says.

Buyers are scattered and they as such does not wield much power in the

pricing of the products.

Doctors can ask for their own profit in selling the products.

Switching cost is low.

Bargaining Power Of Suppliers

Pharma industry depends upon several organic chemicals.

Very competitive and fragmented industry.

Suppliers have very low bargaining power.

Suppliers can be switched without incurring a very high cost.

Less chance for forward integration.

Barriers To Entry

Most easily accessible industries for an entrepreneur in India.

Capital requirement for the industry is very low.

Creating a regional distribution network is very easy.

Creating brand awareness and franchisee amongst doctors is the key for

long-run survival.

Impending new patent regime will raise barriers to entry.

High profitable industry with high growth rate which attracts new players.


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Threats To Substitute

Demand for pharma products continues and the industries thrive.

Low capital requirement create threats of the substitute.

Key role of doctor also play vital role of substitute.

Making patents can prevent threats to substitute.

Firm spend lot of money on R&D to introduce new products in the market.


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CHAPTER-3

ORGANISATIONAL STRUCTURE


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ORGANISATION STRUCTURE


ManagingDirector

GM (Finance)

President

Vice-President

GM (Marketing) GM (HR)

Board Of Directors

Sales Manager

ZSM

RSM

AM/DM

MR

PM

ADMIN DGM

T&D HEAD

FM

A/C HEAD

DIVISONAL HEAD

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Management Team of Centaur Pharmaceuticals

Name Designation

Mr. S. D. Sawant M.D

Mr. S. K. Rangnekar Director

Mr. A. K. Handa President

Mr. S. V. Ayyer Vice-President

Mr. T. K.Das G.M (SAmrudhi)

Mr.P.K.Pandey G.M (Shasvatam) Marketing

Mr. S.M. Hinge G.M (Pragya)

Mr. V.S. Kumar G.M (Sankalp)

Mr. A. Rangnekar Distribution Head

Mr. S.S. Purohit Training Head

Mrs. S. Shetty Admin DGM & Personnel

Mr. M. Jarabkar G.M (H.R)

Mr. M. Nijaswaram G.M (Finance)

Mr. P. Betthy P.M.T Head


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ORGANIZATION DESIGN

Organization Design is a formal, guided process for integrating the people, information and

technology of an organization. It is used to match the form of the organization as closely as

possible to the purpose(s) the organization seeks to achieve. Through the design process,

organizations act to improve the probability that the collective efforts of members will be

successful.

Typically, design is approached as an internal change under the guidance of an external

facilitator. Managers and members work together to define the needs of the organization then

create systems to meet those needs most effectively. The facilitator assures that a systematic

process is followed and encourages creative thinking.

Hierarchical Systems

Western organizations have been heavily influenced by the command and control structure of

ancient military organizations, and by the turn of the century introduction of Scientific

Management. Most organizations today are designed as a bureaucracy in whom authority and

responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures

are uniformly and impersonally applied to exert control over member behaviours. Activity is

organized within sub-units (bureaus, or departments) in which people perform specialized

functions such as manufacturing, sales, or accounting. People who perform similar tasks are

clustered together.

The same basic organizational form is assumed to be appropriate for any organization, be it a

government, school, business, church, or fraternity. It is familiar, predictable, and rational. It

is what comes immediately to mind when we discover that ...we really have to get organized!

As familiar and rational as the functional hierarchy may be, there are distinct disadvantages

to blindly applying the same form of organization to all purposeful groups. To understand the

problem, begin by observing that different groups wish to achieve different outcomes.

Second, observe that different groups have different members, and that each group possesses


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a different culture. These differences in desired outcomes, and in people, should alert us to

the danger of assuming there is any single best way of organizing. To be complete, however,

also observe that different groups will likely choose different methods through which they

will achieve their purpose. Service groups will choose different methods than manufacturing

groups, and both will choose different methods than groups whose purpose is primarily

social. One structure cannot possibly fit all.

Organizing on Purpose

The purpose for which a group exists should be the foundation for everything its members do

— including the choice of an appropriate way to organize. The idea is to create a way of

organizing that best suits the purpose to be accomplished, regardless of the way in which

other, dissimilar groups are organized.

Only when there are close similarities in desired outcomes, culture, and methods should the

basic form of one organization is applied to another. And even then, only with careful fine

tuning. The danger is that the patterns of activity that help one group to be successful may be

dysfunctional for another group, and actually inhibit group effectiveness. To optimize

effectiveness, the form of organization must be matched to the purpose it seeks to achieve.

The Design Process

Organization design begins with the creation of a strategy — a set of decision guidelines by

which members will choose appropriate actions. The strategy is derived from clear, concise

statements of purpose, and vision, and from the organization’s basic philosophy. Strategy

unifies the intent of the organization and focuses members toward actions designed to

accomplish desired outcomes. The strategy encourages actions that support the purpose and

discourages those that do not.

Creating a strategy is planning, not organizing. To organize we must connect people with

each other in meaningful and purposeful ways. Further, we must connect people with the

information and technology necessary for them to be successful. Organization structure


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Defines the formal relationships among people and specifies both their roles and their

responsibilities. Administrative systems govern the organization through guidelines,

procedures and policies. Information and technology define the process (es) through which

members achieve outcomes. Each element must support each of the others and together they

must support the organization’s purpose.

Exercising Choice

Organizations are an invention of man. They are contrived social systems through which

groups seek to exert influence or achieve a stated purpose. People choose to organize when

they recognize that by acting alone they are limited in their ability to achieve. We sense that

by acting in concert we may overcome our individual limitations.

When we organize we seek to direct, or pattern, the activities of a group of people toward a

common outcome. How this pattern is designed and implemented greatly influences

effectiveness. Patterns of activity that are complementary and interdependent are more likely

to result in the achievement of intended outcomes. In contrast, activity patterns that are

unrelated and independent are more likely to produce unpredictable and often unintended

results.

The process of organization design matches people, information, and technology to the

purpose, vision, and strategy of the organization. Structure is designed to enhance

communication and information flow among people. Systems are designed to encourage

individual responsibility and decision making. Technology is used to enhance human

capabilities to accomplish meaningful work. The end product is an integrated system of

people and resources, tailored to the specific direction of the organization.


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TYPES OF ORGANIZATION STRUCTURES

1. Functional structures

Early organizational design divided enterprises into relatively simple parts, splitting them into

defined activities such as production, marketing or personnel. Functional organizations have

the advantage of being simple to understand with clear lines of command, specified tasks and

responsibilities. Staff can specialize in a particular business area such as production or

marketing and follow well-defined career paths. This is equally true of human resource

specialists who can develop expertise in specific areas such as employee relations or reward

management.

There are also major disadvantages to functional structures. People managers have to tread

carefully because this form of organization is prone to interdepartmental conflict, often

degenerating into 'them and us' tribal warfare. Coherence and good communication are

particularly hard to achieve between virtually independent functions.

2. Divisional organizations

Split into self-contained units, able to react to environmental changes as quickly as small

companies, they are also described as multidivisional or 'M-form' organizations. Divisions

encourage team spirit and identification with a product or region. Managers can develop

broad skills as they have control of all basic functions. Each division is likely to have a

devolved human resource function. But there is a risk of duplicating activities between head

office and divisional human resource departments and of conflict between staff in successful

and unsuccessful divisions. The divisional function may play a coordinating role, reconciling

decisions taken at the corporate and business unit levels. This results in a complex picture of

people management.


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3. Federations

One variant of the divisional form which has a particular relevance because of its human

resource implications is the 'federation', a loosely connected arrangement of businesses with a

single holding company or separate firms in alliance. This form of organization has attracted

criticism from stock market analysts who find difficulty in comprehending its subtle

informality.

4. Matrix organizations

Matrix forms of management can be regarded (arguably) as an early form of 'network'

structure. They focus on project teams, bringing skilled individuals together from different

parts of the organization. Individuals were made responsible both to their line manager and

the project manager involved. Before the advent of network technology, many matrix

organizations were dogged by duplication and confusion: the 'matrix muddle'.


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CHAPTER: 4

FUNCTIONAL AREA


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Centaur Pharmaceuticals have the four dynamic functional department, they are:

1. Marketing

2. Finance

3. Human Resource

4. Manufacturing

The centaur is a well integrated functioning which helps it to fulfil the pre assumed objective

in a well systematized manner. The functioning department is very essential for any

organisation.

The functional department are the essential for any business organisation. In centaur the four

core department control by the department head i.e. GM of the department. All the four

department are centrally monitored by the vice-President and he reported the situation to the

President.

The departments are integrated and well coordinated for achieving the organisational goal.

Each department has a well skilled group of manpower, which give there full potential effort

to fulfil the organisational goal.


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4.1 MARKETING

PEOPLE:


GM (Marketing)

Sales Manager

RSM

ZSM

AM/DM

MR

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POLICIES:

Centaur has a versatile marketing department. It is Equipped with the highly experienced

manpower and the design of the marketing department is very much customer oriented of the

centaur. The marketing structure of the company is as following:

New approach of marketing

The new approach of centaur pharma is to put the customer at the centre of the concentration

so that they can provide the facilities to the customer. Centaur developed the marketing

strategies with focusing more on the generics and bulk drugs.

The theme of CENTAUR’s Marketing is to care for its customers and this responsibility

doesn’t lie only on the shoulder of Marketing Department rather all the company’s

departments work together to serve the customers’ interests. And by the customers we don’t

mean only the external customers, but also the internal customers i.e. our employees. Thus

we always thrive to build and maintain an integrated marketing environment within the

organization. However, the core marketing job is accomplished by six departments- Product

Management, Sales, Distribution, Medical Services, Sales Training and Market Research.


Top Management

Middle Management

Customer

front line people

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SYSTEM AND PROCEDURE

Product Management Department (PMD)

Product Management Department lies in the centre of all marketing activities. A dedicated

team with solid professional background comprising Pharmacists, MBAs, Biochemists and

Medical Graduates work in this department. They formulate the strategies to uphold the

market share of company’s products, select and introduce new products to keep the company

growing and develop promotional materials for sales people to win in the market.

Sales Department

The sales department lies as an important part of marketing as they do the implementation

part of all strategies. A large team of around 1200 highly skilled sales people work

throughout the country to bring in success for the company. Team spirit remains as the key to

success of the sales department in CENTAUR.

Distribution Department

To make its quality products available at every corner of the country, CENTAUR has a

strong distribution network comprising of 14 depots throughout the country. A dedicated

team of around 450 people and a fleet of vehicles comprising delivery vans, three wheelers

etc. are engaged in the timely distribution of products throughout the country.

Medical Services Department (MSD)

In CENTAUR, we believe that our responsibility does not end only in manufacturing and

marketing quality medicines but also extends to the total improvement of the healthcare

sector of the country. To do this, CENTAUR has established an independent Clinical

Research and Medical Services Department (CRMSD) for the first time in Bangladesh.

CRMSD comprised of medical graduates, assists in conducting Clinical Researches with our

own medicines on our local people upon collaboration with different medical institutions. It

also arranges seminars & symposia, publishes newsletters & articles and provides other

professional services to the doctors.

Sales Training Department


P a g e | 39

They organize training for sales people. Training is organized both in the entry level as well

as for existing people to keep them updated with product knowledge, selling skills etc.

Market Research Team (MRT)

The Market Research Team conducts prescription audit throughout the country to find out

the prescription behavior of the doctors, which acts as the major input for formulating

marketing strategies.

Rich dividends from Multiple Brands Strategy

The Centaur Pharmaceuticals is having a best team amongst the top player for the brand

strategies of the products of the company.

The most famous brand of the company is Sinarest which the leader in the segment from

more than a decade. It had more brand like Kofarest, Metoz, Livosil and many more.

Centaur is the brand leader in the six therapy area. The brand positioning is the very critical

task for any company it takes years to position a brand in the mind of the customer.

Strengthen distribution network

Company has been marketing significant investment in strengthening marketing expertise and

creating execution excellence to enhance customer servicing. Multiple brand strategy adopted

by the company build a large network of dealers & retailers and other marketing

infrastructure. Total number of dealers and retailers stood at 2000& 250000 respectively.


P a g e | 40

Distribution network

Objective of marketing department:

Improvement of the customer service.

Capture large market share.

To create and meet new customers and their requirements.

To create bridge between customer’s needs and company’s business.

Expanding profit margin.

Price stabilization.


Factory

Godan

Stockist

C&F

Retailer

Customer

Institution

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FUNCTIONS:

Continuous improvement of quality.

Time management.

To organise visits, discussion with the stockist, retailer and doctor to get the feedback

for improvement if any required.

To meet customer as well as company requirements.

VALUE CHAIN

Centaur works in a new concept in which they divide their products into four division. The

divisions are as follows:

1. SAMRUDHI

2. SHASWATAM

3. PRAGYA

4. SANKALP


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1. SAMRUDHI:

The division Samrudhi is headed by Mr. T.K.Das. The division deals with the drugs

related to the Physician,ENT, Peditic, Generic and non-MBBS.

It is the best division which give the highest sales and revenue. The top performers of

the company are always from this division.

2. SHASWATAM:

The division SHASWATAM is headed by Mr. P.K.Pandey . This division is dealing

with the product related to the Peditic, Gynic and Nepro. It is the second largest

division with the highest potential team.

3. PRAGYA:

The division PRAGYA is headed by Mr. S.M. Hinge. This division is dealing with the

product related to the Optha. It covers all India regions with a team of well

experienced manpower.

4. SANKALP:

The division SANKALP is headed by Mr. V.S.Kumar . This division is dealing with

the product related to the cardiac and Diabetologic. It the new division which focuses

to the segment of high range of heart related and diabetics related patient market.

Centaur is more concentrating on this division nowadays. They are developing too

many API”s in this segment.

CHALLENGES:

1. New entrants are creating low price market which are creating problem for the

company.

2. Distribution channel should be more frequent in terms of delivery the product.


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4.2 FINANCE

PEOPLE:

POLICIES:

Finance is the blood for any organisation. At Centaur the financial department deal with the

different financial aspect.

The account department is involved in monitoring the functions of other department thus

ensuring that the unit is functioning as per plan though with minor deviation.

Important functions constitute the following:

o Planning and budgeting

o C.V.A [cash value Added] calculations

o Bill passing for the supplier as well as the contractors.

o Cash as well as bank transactions


GM (FINANCE)

FM

A/C HEAD

DIVISIONAL HEAD

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o MIS related activities such as generation of MIS and review meetings from

corrective actions.

Planning and budgeting activities are done once a year and budgets so formed are reviewed

quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained

in the budget to operational data pertaining to the immediate quarter incorporating there in

any factors that might have escaped notice during the budget preparation due to the any

reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for

assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash

value additions done during a year.

Separate cash affiliated to the accounts department does bill passing activity. The payment of

the bill is done in the accounts department. MIS generated from accounts department contains

details of the functioning of all the departments in the line of the consumption patterns of all

the products as well as the by – products etc.

If there are any deviations from the budget or the quarterly estimates that are serious in

natural then there deviations are discussed in the monthly review meetings.

SYSTEM AND PROCEDURE:

Role of Finance Manager:

Financial planning.

Rising of necessary funds.

Controlling the use of funds.

Disposition of profit.

Account finalisation.

Tax planning.

Book keeping and accounting.

Profit planning.


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Objective of Financial Department:

Since financing is one of the functional area of any business enterprises, the objective of

financial management must be in tone with the overall objectives of the enterprise. The

objective of the finance department should be devised they contribute directly towards the

achievement of overall organisational objectives.

Ensuring regular and efficient supply of capital to the business.

Maintain the required working capital for the business,

Ensuring better utilization of capital by following the principles of liquidity,

profitability and safety.

Coordinating the activities of the finance department with those of other department

of the enterprise.

Function of Finance Department:

1. CAPITAL BUDGETING:

The capital budgeting is done at the beginning of the year itself. The requirement of

capital will be specified clearly for the approval. During the budgeted year, if there is

any further requirement of capital is faced then a proper justification has to make.

2. CASH MANAGEMENT SYSTEM:

Cash management system is one of the key areas in any business. Apart from the fact

that it is the most liquid current asset can be reduced. Cash is the common

denominator to which all current asset can be reduced because that other major liquid

asset receivable and inventory get eventually converted into cash.

3. Planning of funds:

Planning of funds is a careful made by the manager about the total funds require,

which includes both fixed and working capital requirement. This estimation is done

by the observation over the physical activities of the company.


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4. Allocating of funds:

Providing of funds to proper place at proper time is also an important task to be done

by financial manager studies the cash requirement of each department and then funds

are distributed.

5. Cost Control:

The costs are controlled in a manner so that the competitiveness as well as the profit

of the company can be maintained. To maximise the profit cost should must be

control and specified by the department.

CHALLENGES:

Cost controlling in case of the new API’s is very difficult task for the finance

department.

R&D incur cost more but the chances of success is very low.


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4.3 HUMAN RESOURCE DEPARTMENT

PEOPLE:

POLICIES:

HRM is the process of acquiring, training, appraising, compensating and employees and

attending to the their labour relations health and safety and fairness concern. In another words

Human Resource Management concerned the people dimension in management. Human

Resource Management refers to a set of programs function and activities organisational

effectiveness. That functions are:


GM (HRM)

PM

ADMIN DGM

T&D HEAD

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HRM Objective Functions

1. Societal objective: Legal Compliance

2. Organisational Objective: HR Planning

Employees Relation

Selection

T&D

3. Functional Objective: Appraisal

Placement

Assessment

4. Personnel Objective: T&D

Appraisal

Placement

Compensation

Assessment


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Training & Development Programs

Our Training programs are primarily focused on the continuous up-gradation of knowledge

and skills of our employees. We normally orient them to get them synchronized to our culture

and to develop synergy in their efforts. This helps to harness the true potential of an

employee. It also helps all individuals to sustain a career growth. All training programs are

designed focusing on the employees’ profile, qualifications and level of knowledge required.

Class Room Training for Sales people

Our Sales Team always help us in creating marketing niche and to maximize the success

results. We conduct a 25 days training for the new members. During this program they are

trained on products, market behaviour, competitors, communication skills, attitude

improvement, selling techniques. This helps them to build their confidence and generate

improvised results.

Refresher Courses

Apart from imparting training to new members of our sales force, we hold various workshops

for our existing employees.. During these workshops which last for about a week, we conduct

courses to update their product knowledge through various exercises.


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Management Development Programme

To retain the punch & mental drive of our people to achieve required levels. we conduct in

house & outbound training programs for our people. It motivates them to put their best &

come out with flying colours. In such programs we try to explore hidden talent & skills and

channelize their energy to blossom their true potential.

Working at CENTAUR

The employees working with the company enjoys flexibility in working environment that

encourages creativity, innovation and skill development. Company intends to provide space

to individuals to pursue their passions as long as work objectives and targets are achieved. In

other words, individuals set their own targets with respect to company objectives and share

them with their leaders or superiors who are always there to guide them through.

No one works within narrow & rigid boundaries; everyone is encouraged to broaden their

understanding of all aspects of the problems. In this way every professional develops a

broader vision and acquires attitude to perform as a more responsible and committed team

member, one who is sensitive to each other’s roles but who is not shy of making suggestions

or constructive criticism.

The company subscribes to equal opportunity principle, respects merit and empowerment of

all professionals regardless of their experience or socio-economic background. CENTAUR

Pharma Limited has modern infrastructure facility.


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CREATING LEADERS AT EVERY LEVEL

CENTAUR emphasises that creating leaders not just at the organisational apex but at every

level results in strong sense of emotional ownership. Thus the employees are delegated with

responsibility and authority to adopt one Electric motor and related equipment for keeping

watch and care resulting in energy conservation, thus generating multiple CEO's in the

Energy Management System.

RECOGNITION AND REWARD SCHEME

The management believes in the self-actualisation of its employees by injecting the concept

of Human resource Development in all its policies and strategies. By recognition and reward

the employees are motivated to give their best in the interests of the organization in particular

and for the society in general. So many schemes of recognition and rewards are given to

boost the morale and motivate the employees.

According to Managing Director of the company, morale management is considered to be

more challenging than material management. According to him it is important to keep

walking around and congratulating the teams for their small victories. Efforts and their

success stories are disclosed to all in special functions so that other employees may take

inspiration from them. Employees are rewarded for doing exemplary work in the field of

reducing/ eliminating breakdown, in-house development, better housekeeping, and reduction

in raw material, fuel, power and wastage. Cash awards and Certificates of honour have been

given in a function.

For example a scrapper chain of reclaimed II is to be replaced which takes 80 hours. The

team completed this task in minimum possible time with the result that the reclaimed was put

into operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/-

and certificate of honour.


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MULTISKILL DEVELOPMENT TRAINING PROGRAMME

In 2001-02, the company started the concept of multi skilling to optimise manpower, enhance

skill sets and to facilitate cross-functional development. Unlike other organisations who

introduce multi-skilling for high fliers, the company started this concept first for its workers.

Reason: The company faced a problem of surplus workers. Other organizations would have

resorted to retrenching and laying off, but this is not Centaur philosophy. Centaur optimally

utilized its surplus strength by developing worker skills in other technical process. This

helped the company build in a redundancy factor wherein at any given point there was always

a skilled set of people for any function. The company reduced overtime through efficient

manpower utilisation, organised smooth functioning of the production cycle, increased job

security leading to a greater sense of belonging and strengthened industrial relations. As a

result the company did not lose a single day's work due to strikes or lockouts. Employees

were deputed for Multiskill training of fitter trade in different Industrial Training Centres.

Following the success of multi-skilling with workers, the company introduced this concept

with staff members. The objective was to enhance competencies and to enable managers

understand how an initiative taken by their department could affect the productivity and

performance of another department. This broadened the outlook of staff members, making

them think like business managers.

ASCENT PROGRAMME

Small groups have been formulated in order to institutionalize the process of learning, self-

development as well as bringing continuity and inculcating the process of brain storming for

self and organizations development.

VISION


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To be a high performance team and trusted HR business Partner to ensure organisational

objectives are met through our people.

ROLE

A trusted HR business partner.

Champion the cause of our employees and balance the needs of the organisation and

its people.

A change agent.

An expert HR administrator delivering the best in class HR service.

Personnel administration Department:

The personnel administration department designs all the policies, rules and procedures

relating aspects of HUMAN RESOURCE MANAGEMENT and is intended to serve as a

basis for the effective and uniform implementation of to his across the entire organisation. In

other words it is just managing the people by personnel policy.

CHALLENGES:

Attrition rate of the employee is increasing due to new entrants .

Maintaining a good talent pool is a problem for the HR group.

4.4 MANUFACTURING DEPARTMENT


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PEOPLE:

POLICIES:

Centaur believes in the quality product.

Develop more API”s for the High sensitive disease.

Formulation and bulk drugs are coming as the future aspect of the company.

The centaur pharmaceuticals have fully integrated divisions, which is the best in the class.

Centaur has four manufacturing division. They are:

Goa (2)

Ambernath

Pune


GM (PRODUCTION)

OPERATIONAL HEAD

FACTORY HEAD

MANAGER

P a g e | 55

Centaur leverages state-of-art manufacturing facilities at Goa, conforming to WHO-

GMP standards, to ensure quality products at all times. Quality, at Centaur is a continuous

journey, enhanced by superior technology.

The current pharma scenario has driven a shift, away from in-house R&D and production to

contract research and manufacturing (CRAM). A fully scalable 25,000 square metres

formulations facility conforming to USFDA / EU standards has been set up in Pune with a

focus on oral solids.


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Formulations unit at Pune conforming to US/European standards.

The current global pharmaceutical dynamics have ensured a shift towards collaborative

relationships. By establishing key capabilities in CRAM, Centaur has strategically

positioned itself to offer critical value.

A fully scalable 25,000 square metres formulations facility conforming to USFDA /

European standards has been set up in Pune for contract manufacturing. The facility is

dedicated to oral solids and sterile products.

The capacities of the facility on a single shift basis are:

3 billion tablets

600 million capsules

20 million, vials and ampoules (Proposed)

12 million units ophthalmic drops (Under expansion)


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Formulations

Centaur ranks among India's TOP 50 pharmaceutical companies by prescriptions (CMarc)

and by stockist audit (ORG-IMS). Centaur's All-India network includes a 1000 strong sales

force that covers 250,000 doctors and 250,000 retailers every month. Over 50 million

prescriptions of Centaur brands are generated by doctors of all specialities, annually.

Prescription audits (ORG-IMS & CMarc) confirm that Sinarest is a clear leader in the Indian

Anti-Cold market. One prescription of Sinarest is generated every second by a doctor in

India!

Centaur has demonstrated its competence in transforming products into strong brands,

reinforced by successful extensions, resulting in a formidable presence in key therapy areas.

Centaur brands are leaders in six therapeutic segments and rank among the top 3 in six other

therapeutic segments.

Centaur's manufacturing facilities at GOA conform to WHO-GMP standards, and dosage

forms include tablets liquids, injectables (vials and ampoules), eye and ear drops, and

ointments.

API

Centaur is India's largest manufacturer and exporter of Psychotropic API and have introduced

24 API for the first time in India. Our API manufacturing facility near Mumbai conforms to

USFDA standards and our clientele includes Big Pharma, generic majors and Indian

multinationals. Our specialisation ranges from API and intermediates to custom synthesis and

process chemistry. An integrated approach ensures that we can scale up capabilities from

conceptualisation to commercialisation.

Challenges:

Bulk drug are the new field for the company and so there is lack of experience.


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CHAPTER: 5

SWOT ANALYSIS/ VISION, MISSION, GAOLS AND OBJECTIVE


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5.1 SWOT ANALYSIS OF CENTAUR

STRENGTH

Low cost of production

Larger pool of installed capacity

Efficient technology for large number of generics.

Large pool of skilled technical and sales manpower.

Best class R&D team.

Totally integrated manufacturing system.

WEAKNESS

Fragmentation of installed capacity.

Low technology of capital goods of this section.

Fragmented division is creating competencies which reason for politics.

Non-availability of major intermediaries for bulk drugs.

Lack of experience to exploit efficiently the new patent regime.

OPPORTUNITIES

Aging of the world population.

Growing attention for health.

New therapy approaches.

Spreading use of generic drugs.

Saturation point of market is too far.

New delivery system.

Opportunities in the field of healthcare development.

Outsourcing is increasing rapidly.


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THREATS

Highly entry cost in newer market.

Entry barrier is low so new entrants are many in the market.

High cost of sales and marketing.

Competition particularly from generic products.

Switching over from process to product patent.

There are many giant which is already established there brand.

Customers are switching towards the herbal and ayurvedic medicine.


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5.2 VISION AND MISSION

Centaur accepts change as a constant, and continuously innovates to remain significant.

Centaur has built knowledge sharing relationships with the pharmaceutical majors in areas of

product development, custom synthesis, contract research and contract manufacturing.

Centaur is committed to developing new and effective healthcare solutions. The values on

which the group was founded have always inspired growth and will continue to do so in ties

to come.

Centaur mission is “To deliver medicine that enable patients to live healthier, happier and

more active lives as well as to become a research based international pharma company.”

Centaur undertakes the quest of improving the quality of human life with enthusiasm and

vigour.

Centaur vision for the future is powered by its business drivers. It finds purpose and direction

with its strategic intent. It is guided by its corporate culture that places people and capabilities

as the pivot that changes and transforms situations.

The company is driven its vision to “ achieve significant business in proprietary prescription

products by 2012 with a strong presence in developed market as well as regulated markets.


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5.3 Goals and Objective:

Centaur Pharmaceuticals have a set of goal and objective for the betterment of the

company. They are as follows:

To become a research based company.

To grow the market share.

Centaur wants to produce more API’s for cancer and diabetics.

To confer the quality level to its best.

Try to diversify with the new aspect of Bio-Technology.


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CHAPTER: 6

FINDINGS &

SUGGESTIONS


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6.1 FINDINGS

During the internship project the finding I got, they are:

There is lack of coordination between the marketing divisions.

The company is more concentrated on formulation and API’s.

The revenue of the company is basically depend upon the ten product.

The pharma company needs more working capital than fixed capital.

There is a big problem of attrition due to new entrants.

SUGGESTION:

They should build the mutual understanding between the divisions for the better

coordination.

They can also focus on the emerging market of the generic drugs.

Company need to diversify it product portfolio in the other segment of the healthcare.

To maintain the level of Working Capital, Company should make a reserve fund for

the working capital from the profit.

Company should need to maintain his talent pool by the use of compensation, regular

meeting and by using grievance report.


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6.2 BIBLIOGRAPHY

BOOKS

D. Subbarao (2009), ‘Human Resource Management’, Himalaya Publication House,

Bangalore,

P. Kotler (2008), ‘Marketing Management’, Tata McGraw Hill Publication, New

Delhi pp-145,378.

Shashi K. Gupta (2009), ‘Financial Management’, Himalaya Publication House,

Bangalore, pp-126,210.

WEBSITE

www.centaurpharma.com

www.centaurgroup.com

http://www.centaurpharma.com/corporate/corporate.htm

http://www.centaurpharma.com/brands/brands.htm


http://www.centaurpharma.com/brands/brands.htm

http://www.centaurpharma.com/corporate/corporate.htm

http://www.centaurgroup.com/

http://www.centaurpharma.com/

centaur report

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