Project Report of JBCPL-2011 (2)

AProject

Report on-

“Sales & Marketing

Methodology of Bulk-Drug Industry”

Submitted By:-

Bhavin Patel

MBA(Marketing)

IIPM, Ahmedabad.

J B Chemicals & Pharmaceuticals Ltd.

INDEX

SubjectPage No.

1 Executive Summary 4

2 Acknowledgement 5

3 Company Profile 6

4 Indian Bulk Drug Industry 7

5 History Of Company 11

6 Product Mix 17

7 Project Work Undertaken 23

8 Bulk Drug Export Process 25

9 Competitor And Price 28

10 SWOT Analysis 29

11 Conclusion 31


LIST OF ABBREVIATION

API= Active Pharmaceuticals Ingredients

CAGR= Compound Annual Growth Report

CMO= Contract Manufacturing Organization

B2B= Business to Business

USFDA= Unites state Food & Drugs Administration

CGMP= Current Good Manufacturing Practice

MHRA = Medicines and Healthcare products Regulatory Agency

TGA= Therapeutic Goods Administration

WHO= World Health Organization

W.E.F= With Effect From

IDMA= Indian Drug Manufacturers Association


Executive Summary

J.B chemicals & pharmaceuticals Ltd. is one of the India’s fastest growing,

professionally managed, global pharmaceutical company manufacturing a

wide range of innovative specialty medicines for domestic and international

markets. A flagship company internationally recognized as “unique

pharmaceutical laboratories”. Its product portfolio consist of

pharmaceuticals specialties in various dosage form, herbal remedies,

diagnostics, generic drugs, active pharmaceutical ingredients (APIs).

This project report will give us an idea of overall of profiling of the

company, Marketing functionality of API division, and functionality of

logistic department.

The Report will include the following:

Company Profile

Product portfolio

Marketing function of API division

Function of logistic department

Objective of the Study:

The main objective of the study is to understand the detailed working

methodology of bulk drugs pharmaceuticals industries. This study will

also show the marketing strategy of bulk drugs division and their

limitation.

Methodology:

This study contains data from company executives and other

employee’s interview as well as secondary data as expert opinions and

research analysts in the field of bulk drugs marketing.


Limitations of the study:

A lot of the data is confidential in nature and has not been revealed by the company officials.

In absence of data some assumptions and projections have been made which may have a significant effect on the accuracy of the results The study is based on the bulk drug industry only.

Many findings are specific to this industry and hence it is not possible to generalize the findings of the study.

ACKNOWLEDGEMENT

It gives me immense gratification to place on records my profound gratitude

and sincere appreciation to each and every one who have helped me in this

endeavor.

I would like to express my sincere thanks to my industry guide Mr. B. K. Dhar (Head of sales &

marketing, API division) for his continuous cooperation, support, suggestion, encouragement

and providing guidance and suggestion that I needed to complete my project successfully.

I also would also like to express my gratitude towards Mr. Madhav Bhole

(Personal assistance of Mr.B.K.Dhar) for his valuable guidance and support

during the period of my summer training. He has corrected and guided me

through every step to understand the marketing functionality of bulk drug

division of company. He also inculcated in me a systematic approach and

professionalism.

I would also like to thank all those people at ‘J B Chemicals &

pharmaceutical’ that though being total strangers to me lifted my spirit

with their cheerful smiles and gave me the courage & inspiration to work

zealously.


Company Profile

Type: Public

Founded: 1959

Founder: J.B.Mody

Headquarter: Mumbai, Maharashtra

Key People: J. B. Mody (Chairman & M.D)

D. B. Mody (Whole time director, Administration)

S. B. Mody (Whole time director, Marketing)

Turn over: 150 million (USD)

Total sale: 787.58 Cr. (2009-2010)

Profit: 118.19 Cr. (2009-2010)


The Indian Bulk Drug Industry

The Indian pharmaceuticals market is expected to grow from the

current US$19 billion to US$32 Billion by 2015 at CAGR of 18-19% whereas

domestic sales is geared to expand nearly about US$ 20 billion by 2015

from an estimated size of US$ 11.72 billion in 2009. India has more than

100 US FDA- approved manufacturing facilities. India’s bulk drug industry

is estimated to be worth US$16.91 billion by 2014. India ranks 3rd in terms

of volume among the top 15 drug manufacturing countries. Nearly 70% of

the bulk drugs manufactured are exported to more than 50 countries.

Contract manufacturing has been driving the bulk drugs exports in the last

few years. Global pharmaceutical companies have been outsourcing

contract manufacturing to Indian companies to cut costs. The Indian

pharma outsourcing market, including contract chemistry and biology

research, clinical trials and contract manufacturing is roughly valued at

around US$1 billion in 2009 each, growing at a CAGR of 25%. Contract

Manufacturing Outsourcing market stood at US$986m in 2009 and is

expected to grow at a CAGR of 41.7% to reach US$5.63 billion by 2014.

The Pharmaceutical Industry in India is increasingly being recognized

as a reliable source of quality medicines at affordable prices and is

emerging as a global powerhouse. As we enter the Knowledge Economy,

speedy and efficient exchange of reliable information will be a prime

requirement for the efficient management of our intellectual capital. The

Indian manufacturers of bulk drugs have taken the advantage of the

prevalent economic conditions and have accordingly carved their markets.

During the times when the import duty was as high as 115%, the Indian


bulk drugs were positioned as import substitutes and when the duty fell

they have become exporters.

The growth which the Indian Pharmaceutical Industry has achieved is

mainly due to the Indian Patents Act, 1970 which was one of the

achievements of IDMA in strengthening the national sector.

Market Overview

Niche Growth Segments to Offer Potential for Participants in the Global

Active Pharmaceutical Ingredients Market

Niche growth segments hold significant potential for the APIs market

participants, as they are confronted by several challenges such as

overcapacity, industry consolidation and lack of capability differentiation.

The API market, traditionally dominated by small molecule drugs, is

currently witnessing a rapid shift towards biopharmaceuticals. As the

market moves from a blockbuster model to more focused niche drugs, there

will be many new opportunities for API manufacturers.

"Participants from emerging markets such as India, China, and Eastern

Europe are consolidating their position as preferred sourcing partners,

thereby boosting the API market," says the analyst of research. "These

participants have specialized process chemistry skills, besides low

production and labour costs, giving them an edge in API manufacturing and

distribution." While companies from India have excellent chemistry skills

due to their well-established generics exports industry, companies from

China are preferred for their bulk drug and intermediate sourcing. These


countries are leveraging their inherent strengths to emerge as strong

contenders in the global market.

Product Differentiation to be the Most Significant Key to Success in the API

Market

The decline in R&D productivity is the most significant factor restraining

the growth of the API market. Over the past decade, there has been a

marked fall in the number of blockbusters entering the market. In the

1990s, successfully relied on the blockbuster model. However, due to an

increasing failure rate in late-stage drugs, the pharmaceutical industry is

witnessing a shift towards generics and biopharmaceuticals. As global

conditions become more challenging, larger pharmaceutical companies are

likely to refrain from investing heavily in developing new small molecule

drugs, thereby affecting the API market in the long term.

"Product differentiation is expected to be the most significant key to success

in the API market," explains the analyst. "Investment in early-stage

technology and product platforms can help market participants have a

competitive advantage." Pure-play API vendors and contract manufacturing

organizations (CMOs) should follow a two-pronged strategy to differentiate

themselves from competition. Firstly, instead of merely focusing on

reducing the overall yield of a given API or improving certain steps in a

custom synthesis, vendors should aim at investing in early-stage technology

and product platforms for a competitive edge. Secondly, the sourcing of

APIs is often a critical decision in the overall development process, and

companies have begun to realize the importance of tying up with local

manufacturers in emerging markets to tap into their cost advantage and

produce high-quality, low-cost products. Finally, the provision of value-


added services, such as intermediate procurement and production, and

dosage form are expected to aid in consolidating vendor-customer

relationships, thereby making the overall API outsourcing process a

strategic decision.


J. B. Chemicals & Pharmaceuticals Ltd.

J. B. Chemicals & Pharmaceuticals Ltd. (JBCPL) is one of India’s fastest

growing, professionally managed, global pharmaceutical company

manufacturing a wide range of innovative specialty medicines for domestic

and international markets. A flagship company of the Unique Group, it is

alsoknowntomanyas“Unique”.

Its product portfolio consists of pharmaceutical specialties in various

dosage forms, herbal remedies, diagnostics, generic drugs, active

pharmaceutical ingredients (APIs). Some of the products within these

categories enjoy leadership positions in the Indian as well as the foreign

markets.

The Company is strategically focused on Research & Development (R &

D) and is totally committed to respond promptly to the market needs by

developing quality products at affordable prices for the masses. With a

strong base of 11 state-of-the-art manufacturing units (including three US

FDA approved Tablet & API plants) and two DSTC approved R&D centers,

the company has entered a dynamic phase of expansion into newer and

faster growing therapeutic segments such as anti-

diabetics,CNSandRespiratory.

J B Chemical & Pharmaceuticals Ltd. is a customer driven and financially

sound company which consistently enhances value for its shareholders by

rewarding them with healthy dividends year after year. With its Head Office

situated in Mumbai (India), it has a large global presence with operations

inover50countriesacrosstheworld.


And, 52% of the Company’s revenue comes from exports to USA, Europe,

Latin America, Africa and South East Asia. To further enhance its strength

in foreign markets, JBCPL has also entered into joint ventures and strategic

tie ups with key partners in USA and many more countries.


History of Company

1965:

Mr. J.B. Mody showed a first seeds as partnership firm M/S. Unique

pharmaceutical laboratories.

1976:

The landmark incorporation of J. B. Mody chemicals &

pharmaceuticals

1983:

JBCPL acquired a pharmaceutical business of partnership firm J. B.

Mody & brothers

1984:

J. B. chemicals & Pharmaceuticals Ltd. became a partner in the firm

M/S. Unique Pharmaceuticals Laboratories

1985(March):

J. B. chemicals & Pharmaceuticals Ltd. Dissolved M/S. Unique

pharmaceuticals Laboratories take over the asset of the firm.

1985(April):

Unique pharmaceuticals laboratories a partnership firm (one of the

partner J.B. chemicals & Pharmaceutical Pvt Ltd.) was amalgamated

with J. B. chemicals & Pharmaceuticals Ltd.

1985(June):


As per the scheme of amalgamation, the share holder of J. B. Mody

chemicals & Pharmaceuticals Pvt. Ltd Were allotted 1,55,380 equity

shares of Rs.100/each as fully paid up shares in the ratio of 1 share of

every 17 held.

1985(June):

J. B. chemicals & pharmaceuticals Pvt. Ltd. Was dissolved without

winding up upon the order of the Mumbai high court.

1985(August):

The name of the Company was changed from J. B. Mody Chemicals &

Pharmaceuticals Ltd. To from J. B. Chemicals & Pharmaceuticals Ltd.

1985(November):

Maiden public Issue of 12,00,000 Equity shares of Rs.10/- for cash at

par which was oversubscribed 21 times.

1988(May):

Issue of 94,500 14% secured Fully convertible Debentures of Rs.150/-

each for cash at par on a right basis to the existing shareholders of

the company to finance the glyoxal project.

1993(December):

Company issues 20,17,500 Equity shares as bonus share in the ratio

of 1 : 2.

1996(August):


Company issued 12,10,500 Equity shares of Rs.10/- each at a premium

of Rs/- per share to the existing shareholders in the ratio of 1 equity

shares held.

1998(December):

Company issues 72,63,000 equity shares of Rs.10/- each fully paid as

bonus share in the ratio of 1:1.

2000(November):

Pursuant to the order of Bombay high court dated November 8,2000

& as per the scheme of arrangement the pharmaceuticals division of

Ifiunik Pharmaceutical Laboratories Ltd. Has been amalgamated into

J.B chemicals & Pharmaceuticals Ltd. w.e.f. 1st April, 2000, the

appointed day.

2000(December) :

Company issued 15,33000 Equity Shares of Rs.10/- each fully paid up

to the shareholders of IPL in the ratio of 7 Equity Shares for every 4

shares held and in the ratio of 1 Equity share for every 1 share held to

the shareholders of UPLL consequent to approval of scheme of

arrangement by Hon’ble High Court, Bombay.

2000(December) :

One of the first company to use the Rommelag aseptic Form-Fill-Seal

Technology for the production of intravenous fluids.

The first in India again to use a Laser Based particle size Analyzer and

the Hiac Royco particles counter.

Ultra Modern facility for intravenous formulations and ointments, with

the layout and design as per the cGMP concept laid down by US-PDA,

MCA-UK and WHO.


Milestone:-

1999:

J. B. Chemical & Pharmaceuticals Ltd. is honored with the IDMA

Quality Excellence Award: "Certificate of Merit" for distinction in

quality manufacturing at its manufacturing unit in Panoli, Gujarat.

2000:

Company awarded Golden Status certificate by the Govt. of India.

2001:

J. B. Chemical & Pharmaceuticals Ltd. received CHEMEXCIL's "First

Award" for Outstanding Export Performance of Pharmaceuticals in the

Large Scale Manufacturer's category.

Received South Africa MCA approval of State-of-the-art Facility at

Panoli.

Doktor Mom voted “Most Trusted European Brand” for Cough and

Cold Segment.

2002:

Reader’s Digest Awards for the "Most Trusted European Brand

2002'” given to J. B. Chemical & Pharmaceuticals Ltd. for Doktor

Mom Cough and Cold Brand Strategic Marketing.


Cold Segment for the 2nd consecutive year.


2003:

First ANDA filing with USFDA for Ciprofloxacin.


Cold Segment for the 3rd consecutive year.

First Company to market Rantac CD.

Received Columbian Drug Regulatory Authority- INVIMA - approval

for the state-of-the-art facility at Panoli.

Strategic alliance with Arrow Group, Canada.

2004:

Features in the Forbes Global list of best 100 under $1 billion in Asia-

Pacific.

Maiden US FDA approval to market ciprofloxacin tablets in the US

market.

MHRA, UK approves JBCPL's Tablets Manufacturing Facility at

Panoli.

US FDA approves manufacturing facility, for formulation and API at

Panoli.


Cold Segment for the 4th consecutive year.

2005:

TGA – Australia approves JBCPL’s Tablets manufacturing facilities at

Panoli – India

Doktor Mom herbal brand voted as “Europe’s Most Trusted Brand” in

the Readers Digest Magazine 2005 Survey for the fifth successive

year in the cold and cough remedies segment.


“Doktor Mom” brand awarded “Superbrand 2005” status by Russian

Council.

JBCPL receives US FDA approval to market Fluconazole tablets in the

US market.

JBCPL features in FORBES Asia Pacific 200 List for “Best Under a

Billion” for second year in a row.

2006:

'Niryat Shree' Certificate of Excellence has been awarded to Unique

Pharmaceutical Laboratories Limited, a division of JBCPL, by the

Federation of Indian Export.

Organisations (FIEO) for outstanding Export Performance in the

category of Chemicals, Drugs, Pharma & Allied Products, Non-SSI for

the year 2004-05.

Doktor Mom herbal brand voted as "Europe's Most Trusted Brand" in

the Readers Digest Magazine 2006 Survey for the sixth successive

year in the cold and cough remedies segment

JBCPL’s Annual Report and Accounts for the year ended March 31,

2005 ranked as second best by the Institute of Chartered Accountants

of India under the category ‘Manufacturing and Trading Enterprises’

of the ‘ICAI Awards for Excellence in Financial Reporting

2007:

Doktor Mom herbal brand voted as "Europe's Most Trusted Brand" in

the Readers Digest Magazine 2007 Survey for the seventh successive

year in the cold and cough remedies segment.

JBCPL's Annual Report for the year ended 31st March, 2005 has been

awarded a Merit certificate by the South Asian Federation of

Accountants (SAFA), an apex body of SAARC, for the Best Presented


Accounts for the year 2005 in the category of "Hospitality, Health,

Transport, Shipping, etc".

Plant Location

Company has 11 plants at four different places in India.

Panoli, Gujarat

Ankleshwar, Gujarat

Daman, diu-daman

Navi Mumbai, Maharashtra

R & D Centers

Panoli, Gujarat

Ankleshwar, Gujarat

Thane, Maharashtra


Product Mix

Brands:-

1.Doktor Mom:-

Doktor Mom is a purely herbal product. It comes in the form of syrup, rub

and lozenges (5 flavours- pineapple, strawberry, raspberry, lemon and

orange). Doktor Mom is widely marketed by Unique in Russia, Ukraine and

CIS through our own sales representatives. Doktor Mom has been awarded

"Most Trusted European Brand Award" by Readers Digest in the cough and

cold segment. This award was given to Unique by Readers Digest for the

last 5 consecutive years (2001, 02, 03, 04, 05). In 2005 the Russian council

voted it as the "Super Brand" in Russia. This is a household brand in those

markets. Most recently, Unique out-licensed Doktor Mom brand to Ranbaxy

for Romania where Ranbaxy will market the brand and Unique will

manufacture. We have obtained the registration in Romania for Doktor Mom

as a nutritional product. We have also registered this product in Latvia.

2.Metrogyl range(antiseptic and anti infective ):-


Metrogyl, J. B. Chemical & Pharmaceuticals Ltd.'s biggest brand is the

Metronidazole molecule. The company has also introduced a plethora of

variations to this brand for convenient patient use. Some of the variations

like palatable, suspended, large volume topical, dental and combinations

with norfloxacin also capture high prescription rate. Metrolgyl ha been tried

and tested since more thsn 30 years and is still going strong. This exhibits

its excellent therapeutic value to its users. Metrogyl IV,is an important

brand extension of Metrogyl. Today Metrogyl IV is being exported to several

countries. This is a clear indication of the acceptance and trust in Metrogyl

IV of doctors.

3).Rantac range( Treatment of gastric & duodenal ulcer ):-

The second largest brand of J. B. Chemical & Pharmaceuticals Ltd. is

Rantac. This exclusive drug is used in hyper- acidity. Rantac, today enjoys

the status of having the highest prescription share in the Ranitidine market

in India.

4).Nicardia Retard and line extension(anti hypertensive):-


Nicardia is the third largest brand and the company's flagship brand in the

cardiovascular therapeutic segment. Even after 25 years of clinical usage

Nicardia Retard is perceived as Forever young forever youthful. As per ORG

MAT Nov 2010, Nicardia Retard is growing by 11% over previous year same

period.

5).OF range(Antibiotic):-

The Company has its presence in the antibiotic segment through OF, a

brand of the molecule Ofloxacin..

OF range is the fourth largest brand of the Company having grossed sales

of about 17 crore.

ACTIVE PHARMACEUTICAL INGREDIENTS (API):-


Atenolol USP

(US DMF No. 024024)

Ciprofloxacin Hydrochloride USP

(U.S.DMF No. 17786)

Cilnidipine

Diclofenac Acid

(U.S.DMF No. 15366)

Diclofenac Diethylamine BP

(US DMF No. 19020 & Spain DMF No. DD-708 / 01)

Diclofenac Potassium BP/EP/USP

(Plant approved by FDA, U.S.A. - U.S.DMF No. 15074)

Diclofenac Sodium BP/EP/USP

(U.S. DMF No 12469) (Spain DMF No. DS-092/978) (Canadian

DMF No. 2005-055)


(Certicate of Suitability No. R1-CEP-1997-041-REV 03)

Diclofenac Sodium BP/EP/USP also Injectable Grade

Gadopentatic Acid • Nifedipine BP/EP/USP

(US DMF No. 16730)

(Certificate of Suitability No. RO-CEP 2000-096- REV. 02).

FORMULATION

ANTHELMINTICS

ANTI DIARRHOEAL

ANTIBIOTICS & CHEMOTHERAPEUTIC AGENTS

ANTIDIABETIC

ANTIHISTAMINE SYSTEMIC

CARDIOVASCULAR/CARDIC CARE

G .I. PROKINETIC

G.I/ANTIULCERANT

NASAL DECONGESTANTS

NEURO / PSYCHIATRY

NSAID's/ANTIRHEUMATIC

NUTRITIONAL & TONICS

RADIODIAGNOSTICS

SEX STIMULANTS


TROPICAL PREPRATIONS

UROLOGY

OTC:-

COUGH AND COLD

TROPICAL ANTIBACTERIAL/ANTICEPTIC

DENTAL PREPARATIONS

MULTIVITAMINS AND REJUVENTORS

SEX STIMULANTS

HERBAL PREPARATION:-

COUGH AND COLD

MULTIVITAMINS AND REJUVENTORS

Patented Products

International Patents Granted- 24

Domestic Patents Granted- 15

Accreditation

API products are approved by following authority of particular country.

CGMP - INDIA

USFDA - USA

UK-MHRA - U.K


IN VIMA - COLUMBIA

WHO & TGA- AUSTRALIA


Project Work Undertaken

Project Report has been made on the basis of the working

functionality of marketing and logistic department of only

the API (Bulk drug) division of company.

I had to understand about the whole procedure of the marketing

and logistic department.

Following are the task that had been cover under this project

during the Internship.

What is Bulk drug industry?

How they complete the customer’s order?

How the Marketing head deal with the customers?

How marketing department work simultaneously with

logistic department and Production department?

How marketing department Deal with other

department?

What is the function of marketing department?

What is the function of logistic department?

The whole process of Supply of goods from plant to

customer.

How logistic department negotiate with the freight

forwarder?

Pricing policy of API division.


Supply chain process.

Which types of documents are required and used

during whole process of complete the order?


Bulk drug marketing

APIs are pure B2B as they are distributed between the pharma companies

only. Bulk drug marketing is dependent on the basis of product

building(Accreditation) means if the standard of product and plant both

meet the standard as per their pharmacopeia then and then only company

can sell their product in that particular company.

Sustainable competitive advantage in the bulk drug industry where the

technology gets copied relatively

in advance as compared to other industries; comes in the form of

continuous innovations. This

competitive advantage is derived from the combination of two basic themes

viz (i) Competitor Centered & (ii) Customer Centered

Competitor

Centered

Comparison of

various factors

w.r.t. the immediate

competitors in the

market.

Configuration

SWOT

analysis

BCG Matrix

Analysis of

the profit

Customer

Centered

Customer Choices

Segments

Comparison

of various

attributes

w.r..t.

competitors


Bulk drug Export Process

Purchase order (received from customer)

Dispatch plan

Production

Packing details (batch number, weight, quantity)

Invoice from logistic

Excise invoice

Dispatch from factory

(Mumbai) By air By sea (Bhivandi)

Freight forwarder

Custom clearance

Delivered to airlines or ship

Documents & goods send to customer


Process:

First Marketing department get a purchase order from the customer

then they inform logistic department about the dispatch plan of goods

and Production department about Product, quantity, Date of

requirement, and Packing list.

After getting packing list and product information, production

department start the production according to the customer

requirement.

Logistic department send a invoice to the dispatch department

according to it dispatch department packed a product then excise

officer verify the goods and documents and provide a excise invoice

then and then only goods would be dispatch from the plant.

Then according to the emergency goods send to airport or port and

then handover to the logistic department.

If, customer needs goods in emergency then goods generally send by

the air.

In this case logistic department asked to the freight forwarder

for the price quotation of transportation .then they choose the

convenient airlines and handover the goods to the freight forwarder

and after custom clearance goods delivered to the airlines.

Logistic department generally inform the customers about the whole

route of goods and send all required documents along with the goods

to the customer.


Documents used in whole sales & Marketing process

Pre-scheduled marketing plan for next year

Marketing department sent a pre-scheduled plan to the production

department as well as logistic department and its involved packaging

material, quantity of goods, expenses, raw materials and about shipment.

Purchase order

Purchase order includes product name, packing list, date of requirement,

price, and shipment which is receiver from the customers.

Commercial invoice

Commercial invoice which is generated by marketing department includes

Material name, buyer and seller name, invoice number, cost of shipment,

quantity and packaging, date of shipment and route of shipment (air/ship).

Safety health and invoinment

Costumer also checked out all the information about company like how long

they have been in this business, documents, and environment issues and

then gives a order so, all over establishment and maintain a standard is

necessary.

Purchase indent

Before two to three months in advance marketing department send a

purchase indent to the production department, it includes all the details of


raw materials and quantity of raw materials so, according to its production

department inform to purchase department to purchase a raw material.

Logistic Department (How do they work)

Logistic department is pre-informed by the marketing department and

work simultaneously with the marketing department.

After getting packing details from marketing department They make

and send an invoice to the dispatch department.

Then and then only goods can be dispatch from production plant.

After verifying the goods by the local excise officer it can be send to

airline or port authority.

Then logistic department palletize or packed this material to the

freight forwarder.

Freight forwarder sends a quotation to the logistic department

according to nature of goods.

Freight forwarder then send goods to customer after custom

clearance,They provide airway bill to logistic department.

Logistic department have to inform to customer about the whole route

of the shipment in details.

Competitors

There are other company exist in market with the same product line.


For Example:

Amoli pharma and

Arti pharma .

But they are not affect the company business because company

generally focus on Europe, while Amoli pharma focus in domestic

market and Arti pharma focus on latin America.

And there is a contract base order system for the particular time

period (for few years) so, there is no problem from competitors.

Price

There is no any regulatory exist for pricing bulk drugs to export

outside of country.

Generally company offer a FOB (free/freight on board) pricing means

price quotation does not include a transportation cost, transportation

cost would be provide by the buyers.(it depends on Seller and buyers).

There are mainly three type of pricing strategy of bulk drug division.

R & D - High price According to

Development - Average price Margin & cost

Commercial - Low price

Business policy


Currently it’s a company business policy to do not sale a API products in

domestic market because in domestic market there are so many competitors

and very low margin of profit.

If, there would be a better opportunity then company could show its interest

for that market.

SWOT ANALYSIS

Strength:

Company has Tie-up with the parent companies (innovators) with the

strong brand image in the market.

Out of 10 generic companies in the world company already dealing

with 5 of them.

There is well sated contract based system so, no threats of

competitors in international market.

Company has enough plant capacity to complete customer’s order in

time.

Its track record of development, particularly in the area of improved

cost-beneficial chemical

synthesis for various drug molecules is excellent.

Weakness:

Limited product basket .

No presence in domestic market.

It is very difficult and long procedure to expand a production facility.


Business is dependent on patent and contracts so can’t expand the

business according to their desire.

Still underdeveloped new molecule discovery program.

There are a lot of items that are restricted under the export import

policy from free trading.

Opportunity:

Company can find a new geographical area to develop a market(can

find a new customer in new destination).

Company can discover a new drugs by highly concentrate on R&D to

capture a new market.

Company can consolidate with big company to develop new

molecules.

Company can offer some product at lower price in comparison with

others because of having a good cost-cutting patented synthesis.

Threats:

Price competition for the new molecule which have been

commercialized in the current year. So, company have to stay

competitive in domestic market.


Conclusions:

1. Bulk drug industry is a growing industry. It was established by the study

that innovations have a positive impact on not just the bottom lines but also

is vital for survival in this industry where the entry of the competitors is

marked quite early due to the copying mechanism.

2. Customized strategies are means rather than ends of the growth for the

enterprises in the bulk drug industry

3. There is no general formula for formulation of innovation strategies

targeted at growth at various

levels which would prove effective for company in the bulk drug industry

4. The combination of the basic growth strategies would depend on the

business environment.

Though the customer centered as well as competitor centered companies

have performed better in

the Indian bulk drug industry

5. Sustainable Competitive Advantage in the bulk Drug industry can be

attained mainly by way Continuous product & process innovations

6. The strategies adopted by J. B Chemicals & Pharmaceuticals Pvt. Ltd

have been found effective in terms of growth, business expansion and


competitiveness (competitiveness Assessed in terms of turnover, profits &

market share).

Project Report of JBCPL-2011 (2)

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Transcript of Project Report of JBCPL-2011 (2)