Description
A pharmaceutical drug, also referred to as a medicine or medication, can be loosely defined as any chemical substance - or product comprising such - intended for use in the medical diagnosis, cure, treatment, or prevention of disease.
INDEX
SL. NO.
1 2
PARTICULARS
PREFACE HISTORY OF MEDICINE
PAGE NO.
08 09
3
INTRODUCTION OF MEDICAMENT PHARMACEUTICALS PROJECT AT A GLANCE PARTNERSHIP DEED FEASIBILITY STUDY STEPS ENVIRONMENT SCANNING ? PEST ANALYSIS
13
4 5 6 7
14 15 22 23
MARKETING FEASIBILITY 8 ? ? 4 P?S OF MARKETING ? MARKET RESEARCH FINDINGS & CONCLUSION 26
HUMAN RESOURCE FEASIBILITY 9 ? ORGANISATION CHART ? JOB PROFILE 58
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TECHNICAL FEASIBILITY 10 ? INPUT ? PROCESS PLANT LAYOUT ? 75
FINANCIAL FEASIBILITY 11 COST OF PROJECT BALANCE SHEET ? PROFIT & LOSS A/C ? CASH FLOW STATEMENT ? COST SHEET WORKING CAPITAL STATEMENT ? CAPITAL BUDGETING ? RATIO ANALYSIS ? SWOT ANALYSIS ? CONCLUSION BIBLIOGRAPHY & WEBOGRAPHY ?
85
?
12 13
111 112
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ACKNOWLEDGEMENT
It is possible that the theoretical knowledge is an important thing which is not possible without the support, guiding, motivat ion & inspiration provided by the different person. Hence, we are thankful to many people.
We express our great thanks to our college “K.S. School Of Business Management " and its Director Dr. Sarla Achuthan for giving us the chance of guiding ourselves to learn various aspects practically.
We are highly thankful to our project coordinator Mrs . INGITA JAIN who has continuously guide us till the last word of this project report & provide an excellent motivation to us.
Lastly, we would like to express our gratitude to all those people who have extended their tremendous support & co -operation.
We have made a feasibility report on the establishment of the pharmaceutical company. The name of our compa ny is MEDICAMENT PHARMACEUTICALS. We have taken into consideration technical, marketing & financial feasibility of the industry in our project.
For the technical feasibility we have taken a visit of FAMYCARE PHARMACEUTICALS at BAVLA. From there we came to know the machineries for the production process of COLD & FEVER tablets and other related information. In marketing feasibility, we have K.S. SCHOOL OF BUSINESS MANAGEMENT 3
done the marketing survey of consumers. By analyzing the survey we found the requirement of COLD & FEVER tablets in the market.
The most important of all was the financial feasibility. We estimated all the expenses, which are likely to incur for the establishment of medicine industry. These all things are discussed further in detail in the project report.
HISTORY OF MEDICINE
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Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness. In the early 19th century the active ingredients of natural drugs were isolated. Narcotine was isolated from opium in 1803. Morphine was identified in 1806. Emetine and strychnine followed in 1817. Quinine (used to treat malaria) was identified in 1820. It was followed by nicotine in 1828, atropine in 1833 and cocaine in 1860. Meanwhile in 1822 a trapper named Alexis St Martin was shot in the stomach. The wound healed leaving a hole into his stomach. A doctor named William Beaumont found out how a stomach works by looking through the hole. During the 19th ce ntury there were several outbreaks of cholera in Britain. During the 1854 epidemic John Snow (1813 -1858) showed that cholera was transmitted by water. CHLOROFORM was invented in 1847 for the operations.
Pasteur and his team went on to create a vaccine fo r anthrax by keeping anthrax germs heated to 42 -43 degrees centigrade for 8 days. In 1882 they created a vaccine for rabies. A co -worker dried the spines of rabbits that had contracted the disease in glass jars. Pasteur tried giving a series of injections made from the dried spines to animals to test the remedy. Then, in 1885, Pasteur successfully used the vaccine on a boy who had been bitten by a rabid dog.
Meanwhile In 1875 Robert Koch (1843 -1910) isolated the germ that causes anthrax. In 1882 he isolat ed the germ that causes tuberculosis and in 1883 he isolated the germ that causes cholera in humans. K.S. SCHOOL OF BUSINESS MANAGEMENT 5
Meanwhile the organism that causes leprosy was discovered in 1879. The germ that causes typhoid was isolated in 1880. The germ that causes diphtheria was d iscovered in 1882 by Edwin Klebs. In 1884 the germs that cause tetanus and pneumonia were both discovered. Immunization against diphtheria was invented in 1890. A vaccine for typhoid was invented in 1897. Rubber gloves were first used in surgery in 1890. MEDICINE IN 20 T H CENTURY Medicine made huge advances in the 20th century. In 1900 different blood types were identified. That made safe blood transfusions possible. In 1932 a German named Gerhard Domagk discovered that a red dye called prontosil killed streptococcus microbes (which causes blood poisoning). In 1935 his daughter suffered from blood poisoning after cutting herself. Domagk gave her a dose of prontosil which cured her. Antibiotics were discovered too. Penicillin was discovered in 1928 by Alexander Fleming
The first heart transplant was performed in 1967. The first artificial heart was installed in 1982. The first heart and lung transplant was performed in 1987. In the late 20th century medicine continued to develop rapidly. In 1980 the World Health Organization announced that smallpox had been eradicated. However in 1981 a terrible new disease call ed AIDS was isolated. In 1983 Magnetic Resonance Imaging or MRI was introduced. Synthetic skin was developed in 1986 and gene therapy was introduced in 1990.
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Introduction of MEDICAMENT PHARMACEUTICALS
Name: - MEDICAMENT PHARMACEUTICALS
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Logo: -
Punch Line: - “ AMARU LAKHSYA, TAMARI TANDURASTI ”
Meaning of The Name: - The name itself suggest the Meaning of medicine
Brand Name: -
Brand Tag-line: - “RAAHAT NISHDIN”
Name Product
MEDICAMENT PHARMACEUTICALS Cold & Fever Tablets 8
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Constitution
Private Ltd.
A/8, Phase-II, Near Arihant Pharmaceuticals, Industry Address Sarkhej – Bavla highway, Changodar, Ahmedabad – 382213.
Total Cost of Project Means of Finance: Equity Shares (56% of Total Cost of Project)(face value=Rs.10each) Bank Loan (44% of Total Cost of Project)
23148000
13148000
10000000
PROJECT AT A GLANCE
Meaning of Feasibility Report:K.S. SCHOOL OF BUSINESS MANAGEMENT 9
A feasibility report means a report which projects the practical viability of a venture with respect to different dimensions.
Marketing Feasibility:From product is marketing are viable marketing point of view, it is important that the accepted and adored by customers. In order to do so department will have to check whether their strategies or not in terms of effectiveness.
Technical Feasibility:This phase of feasibility study includes requirement of plant, machineries, miscellaneous fixed assets, furniture, etc. A large capital is required for production of COLD & FEVER tablets.
Financial Feasibility:An industry has to see whether the amount invested is viable in terms of return and anticipated revenues. Careful inspection of all the data related to balance -sheet, cash flow aspect, depreciation, description about loan, etc. fall under financial feasibility.
Social Feasibility:K.S. SCHOOL OF BUSINESS MANAGEMENT 10
It should not only viable from the above mentioned angles, but it must be such that it does not harm the community. Mankind is a community that we all stand in a relation to each other, that there is a public end and interest of society which each particular is obliged to promote, is the sum of morals.
PEST ANALYSIS
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PEST Analysis stands for “Political, Economic, Social and Technological Analysis " and describes a framework of macro environmental factors used in the environmental scanning component of useful strategic tool for understanding market growth or decline, business position, potential and direction fo r operations.
The acronym PEST is used to describe a framework for the analysis of these macro environmental factors.
1. Political Environment:
Political environment covers those factors which either restrain or facilitate the business through government actions. Our industry will be definitely under the effect of TAX POLICY changes which may lead to variations in the administration at the centre which may also lead to the changes in the sales tax rate which may harshly affect our industry. Acceptance/rejection of any new technology related to the machineries also depends upon the ideology of the political party ruling at that time .
2. Economical Environment:
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The economic environment also affects our business. Normally, the growth rate of pharmaceutical industry is 9% to 19% every year. The growth rate mainly steams from emerging economies which are striving to meet their rapidly growing demand for housing & infrastructure but due to recession, demand for the cold & fever tablets may be affected.
3. Social Environment
Our industry believes that harmony between the society & environment is the prime essence of healthy life and living the sustenance of our ecological balance is very much important because our industry making pollution in form of CO 2 . So our industry has evolved an environmental policy. the aim of which is to do all this is reasonably practicable to prevent or minimize, the risk of an adverse environmental impact in terms of dust, noise pollution, etc. on the society.
4. Technological Environment
Technological innovations are introduced for higher productivity, lower cost and more revenue. The industry that moves with the latest technology can excel their growth, that?s Why our industry has decided to install latest technological plant & machineries in our production process.
Introduction
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In simple words, “Marketing is meeting needs profitability.” In formal Way, marketing is a primary management function which organizes and directs the aggregate of business activities involved in converting consumer purchasing power into effective demand for a specific services and in moving the product and services to the final consumer so as to achieve the company set other objectives.
Our marketing feasibility reports deal with the product policy that is what type of product or products should be manufactured. The determination of price and the terms of payment are also converted in the price.
4 P’s
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OF MARKETING
This is an important concept in the modern marketing. It consisted of product, price, place & promotion. So, it is known as 4P?s of marketing.
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1.
PRODUCT :
A product is anything that can be offered to a market to satisfy want or need , including physical goods, services, experiences, events, persons ,places, properties, organizations, information and ideas.
Core benefit
Basic product Expected product Augmented Potential product
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Core benefit
The fundamental level is the core benefit the service or benefit the customer is really buying. A customer is buying medicine to get relief form cold and fever. Marketers must see themselves as benefit provider .
Basic product
At the second level, the marketer must turn the core benefit into a basic product. The basic product of our industry is cold and fever tablets .
Expected product
An expected product is a set of attributes and conditions, which the buyers normally expect when they purchase the product Here, consumer expects to get rid of their health related problems and there has to be no side effects from the product they use.
The expected product that is offered by our indus try is ? Good quality ? Quick healing ? Good Packing K.S. SCHOOL OF BUSINESS MANAGEMENT 17
? Reasonable Price ? Easy availability
Augmented product
At this level, manufacturer voluntarily improves existing product by adding new feature to enhance the value of the product that exceeds consumers? e xpectation. The augmented product that our industry will provide: ? ? ? ? Flavours Dust less packaging Competition Brand positioning
Potential Product
Potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future. ? New way to satisfy customers and distinguish their offering. ? Medicine has potential to provide shelter against common cold , fever and pain
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? PRODUCT MIX
MEDICAMENT PHARMACEUTICALS
FREECOLD TABLETS
WHITE
500 mg
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? PRODUCT WIDTH
Product width of a product refers to how many different lines the company carries. MEDICAMENT PHARMACEUTICALS carries one product width.
1. COLD & FEVER TABLETS.
? PRODUCT LENGTH
It refers to the total number of the items in the mix. The product length of MEDICAMENT PHARMACEUTICALS is one.
? PRODUCT DEPTH
Product depth of product mix refers to how many variant s the company has in each line. Product depth of MEDICAMENT PHARMACEUTICALS is one. ? 500 mg
? PRODUCT CONSISTENCY
The consistency of the product mix refers to how closely related the various product lines are in end use, production requirement distribution channels, or some other way MEDICAMENT PHARMACEUTICALS product lines are consistent in so far as they are consume r goods that go through the same distribution channel. The lines are more consistent in so far as they perform single functions for the buyers.
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? PRICE
Pricing plays an important role in today?s world. A firm set a price for the first time when it introduc es a new product. Price is an only factor that generates the revenues.
Our industry decided the pricing policy after taking into consideration of the competitor?s prices to enhance sales at introduction stage.
Brand name
Vicks Action 500 D?Cold Crocin
Price (per strip in Rs.)
10 10 10
We plan to provide products on wholesale basis and through internet and teleshopping .Half of the amount of order would be collected on order basis and the rest along with the delivery and for the ord ers through telephone and internet the cash would be collected on delivery basis.
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PRICE OF COLD & FEVER TABLETS AT MEDICAMENT PHARMACEUTICALS:
The price of our tablet is Rs. 7.00 PER STRIPS.
DISTRIBUITION CHANNELS WHOLE SELLER RETAILER JOB WORKS
PRICE(per strips in Rs) 7 8 6
? PLACE
Place is concerned with linking the buyers & sellers. It includes the decision about the channel of distribution, means of transportation, warehousing, inventory control, etc. the seller needs to select an appropriate place for manufacturing a product in such a way that it fulfills the criteria of availabilities to the prospective customers. Marketer should make a product available at as many places as possible so that it can easily attract the customers and increase its market share by the way of selling it to them.
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? Distribution Channel
Distribution channel refers to the distribution of goods from manufacturer to customer , Our distribution channel is as follow.
MEDICAMENT PHARMACEUTICALS
DISTRIBUTORS
RETAILERS
CUSTOMERS
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? Promotion
Promotion is a tool through which marketers communica te their product to the consumer. Advertising is any paid form of non personal presentation and promotion of goods or services by identified sponsors . Following are the 5 promotion tools:
Advertising
Public relation
Sales promotion
Promotion Tools
Direct marketing
Personal selling
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Promotion can be done through various media such as : ? Television ads : - E -TV ,DD GUJARATI,ZEE GUJARATI ? Newspaper ads: - DIVYA BHASKAR,SANDESH ? PAMPHLET , YELLOW PAGES AND CATALOUGES
5 M’s of ADVERTISEMENT
MESSAGE Msg generation Msg evaluation Msg execution MISSION Sales Goals Advertising objectives MONEY Stage in PLC Mkt sh & consumer based competition MEDIA Reach, frequency, impact Major media types Specific media vehicles MEASUR EMENT Comm. Impact
Sales impact
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? MISSION
Our main advertising aims are To create awareness about our medicine to the consumers & to create new brand image in the market. To persuade/convince the retailers and consumers to purchase.
? MONEY
There are main factors that influence the advertising budget.
?
Condition in product life cycle :In the primary condition, our advertising budget is high because we want to introduce our product to the customers to create awareness.
?
Market share and consumer base : As we have to build market share, we have to spend large amount on advertisement.
?
Competition : When tough competition exists, we will make more spending on advertisement. Our industry is falling in monopolistic market .
?
Advertising frequency: Television ads: once a day on ETV GUJARATI for 30 seconds Newspaper ads: twice a week in DIVYA BHASKAR AND SANDESH Pamphlets, yellow pages and catalogue
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?
Product substitutability:Our brands in less well differentiated or commodity like product classes require heavy advertising to estab lish a differential image. Newspapers @ 170 Rs. Per cm. B/W print at the middle part of the page . Television @ 5000 Rs. Total budget Rs.150000 for one month. Pamphlets, yellow pages ,catalogue Rs.3000 Total budget Rs.90000 for one month ADVERTISEMENT IN TELEVISION
YEAR 1 2 3 4 5
TIME(IN SEC.) 30 30 30 30 0
RS. PER WEEK 37500 6250 6250 4167 0
RS. PER MONTH 150000 25000 25000 16667 0
TOTAL 1800000 300000 300000 200000 0
NEWSPAPER
Y E A R 1 2 3 4 5 SANDESH(R s) (every Monday) 12900 833.25 1666.75 892.5 3125 DIVYA BHASKAR(R s) (every Thusday) 13350 1250 2500 1190.75 1041.75 PER MONTH SANDESH(R s) PER MONTH OF DIVYA BHASKAR(R s) 53400 5000 10000 4763 4167 TOTAL PER MONT H 10500 0 8333 16667 8333 16667 ANNUAL AMOUN T
51600 3333 6667 3570 12500
126000 0 100000 200000 100000 200000
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PAMPHLETS , CATALOGUES, YELLOW PAGES
YEAR 1 2 3 4 5 RS. PER DAY 1500 277 277 0 0 RS. PER MONTH 45000 8333 8333 0 0 TOTAL 540000 100000 100000 0 0
TOTAL CALCULATION
YEAR 1 2 3 4 5 TOTAL AMT 3600000 500000 600000 300000 200000
? MEDIA
After choosing the message, the advertiser?s next task is to choose media to carry it. Here are some media vehicles: o Television ads o Newspaper ads o Pamphlets , yellow pages and catalogue s
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? MESSAGE
YOU”
Our message is
“BECAUSE WE CARE FOR
The punch line of our company is “ AMARU LAKSHYA- TAMARI TANDURASTI ” which reflects our care for environment and for human health.
? MEASUREMENT
The demand for our produc t has been increased by 10% to 20% over the first 5 years and advertising is one of the reasons for that.
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MARKET RESEARCH
“Market research is systematic decision, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company."
OBJECTIVES OF RESEARCH:To find out the satisfaction level of consumers. To find out the factors considered by consumers at the time of purchasing. To come up with relevant suggestions.
MARKETING RESEARCH PROCESS
1) Define the problem and research objective. (2) Develop the research plans. (3) Collection of information. (4) Report the findings. (5) Analyze the information.
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? Define the problem and research objective
The main objective in our research is finding the scope and feasibility of cold & fever tablets.
? Develop the research plans
This involves the decision on the data sources, research approaches, research instrument, sampling plan, and contact methods.
1. Data Sources : Data sources can be divided into two parts. Primary Data Our research for primary source consists of “ survey of the consumers. " We have visited FAMYCARE PHARMACEUTICALS to get the information. Secondary Data Secondary Data are obtained by us from
o o
Marketing management by 'Philip Kotler.' We have used different websites like: 'www.Google.com ? „ www.pharmapedia.com ? „ www.zamanzar.com ? „ www.99acres.com ?
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2. Research Approaches : There is FIVE research approaches are as follows: We have used the “Survey approach” through the questionnaire of the „Retailers & Consumers.?
3. Research Instrument : Particular Sample unit Sample size Sampling procedure Consumer analysis Consumers 400 Convenient
? Collection of information
In collecting the information, we faced some problems like:
?
The response of some people was biased and unreliable.
? Analysis of Information
For analysis, we have distributed the various questions in tabulated form and we have presented it in the different charts.
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QUESTIONNAIRE
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Marketing Survey Questionnaire for identifying the preference and satisfaction levels of the consumers of tablets for COLD & FEVER. (From T.Y M.B.A Students) (For The PROJECT Purpose Only)
Name:
______________________ ______
Area:
______________________________
City:
______________________________
Age Group:
18-30 years
30-40 years
40 years and above
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(1) In which season do you get affected mostly by cold and fever? Winter Summer Monsoon
(2) Do you consult a d octor ? Yes No
(3) Which tablet do you prefer generally when you get cold and fever? D?Cold Vicks Action 500 Crocin Any Other: _______________ (please specify)
(4) How do you come to know about the tablet you prefer? Medical Stores Friends & Relatives Television Newspapers
(5) Do you buy such tablet by yourself or by suggestion of chemist? ______________________________________________________ _________________
(6) Are you satisfied with your tablet? Yes No
If no, then give reason: _____________________________________________________ K.S. SCHOOL OF BUSINESS MANAGEMENT 34
(7) Do you stick to your brand? Yes No
Give reason: ______________________________________________________ ________
(8) Would you like to switch over to another tablet? Yes No
If no, then give reason: ______________________________________________________
(9) Do you face any side effects after ta king such tablet? Yes No
(10) Will you prefer such tablet which can be taken only once in a day? Yes No
(11) According to you, how should be the ideal tablet? ______________________________________________________ __________________
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(12) Would you like to give the same tablet in form of syrup to your child? Yes No
THANK YOU _____________________________________ _______________
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GRAPHICAL REPRESENTATION AGE GROUP
Age 18 to 30 30 to 40 40 and above Total Total 214 77 109 400
Total, 40 and above, 109, 27%
Total
Total, 30 to 40, 77, 19%
Total, 18 to 30, 214, 54%
18 to 30 30 to 40 40 and above
From the above chart we can say that out of 400 consumers 54% consumers fall into the age group of 18 to 30 years which is followed by 40 and above (27%) age group.
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(1) In which season do you get affected mostly by cold and fever?
Season Winter Summer Monsoon Total
No. 266 48 86 400
No., Seasonal Effect Monsoon, 86, 22% No., Winter, 266, 66% Winter Summer Monsoon
No., Summer, 48, 12%
From the above chart, we can say that people get mostly affected by cold & fever in winter (66%) which is followed by monsoon (22%). Generally, people consult a doctor because of this kind of seasonal effect.
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(2) Do you consult a doctor?
Yes
No
Total
112
288
400
Consultation of Doctor Series1, Yes, 83, 28% Series1, No, 217, 72% Yes No
From the above chart, we can say that out of 400 consumers 72% consumers consult a doctor when they g et affected by the COLD & FEVER and rest(28%) are not.
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(3)
Which tablet do you prefer generally when you get cold and fever?
D'Cold
Vicks Action 500 41
Crocin
Others
183
39
137
Preference Of Tablet
Series1, Others, 137, 34%
Series1, D'cold, 183,D'cold 46% Vicks Action 500 Crocin Others
Series1, Crocin, 39, 10%
Series1, Vicks Action 500, 41, 10%
From the above chart, it clearly shows that there is a huge market covered by the D’Cold tablet (46%) which is followed by others (34%) and Vicks action 500(10%). K.S. SCHOOL OF BUSINESS MANAGEMENT 40
(4) How do you come to know about the tablet you prefer?
Medical Stores
Televis ion
Friends & Relatives
Newspapers
177
41
159
23
Series1, Means of knowing tablets Newspapers, 23, 6% Series1, Friends & Relatives, 159, 40% Series1, Medical Medical Stores Stores, 177, Television 44% Friends & Relatives Newspapers Series1, Television, 41, 10%
From the above chart we can show that , people come to know about particular tablet through medical stores (44%) which are followed by friend & relatives (40%).
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(5) Do you buy such tablet by yourself or by suggestion of chemist?
By myself
By suggestion
233
167
Series1, By suggestion, 167, 42%
Buying Preference
Series1, By By myself myself, 233, By suggestion 58%
As from above chart we can say, people mostly prefer to take tablets by themselves only (58%). There are some cases in which they ask t o CHEMIST (42%) for there preference .
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(6) Are you satisfied with your tablet?
Yes
No
327
73
Series1, No, 73, 18%
Satisfaction Level
Series1, Yes , 327, 82%
Yes No
By conducting the survey of 400 people, we came to know that 82% of the people are generally satisfied with their COLD & FEVER tablets which show their satisfaction level.
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(7) Do you stick to your brand?
Yes
No
171
229
Do you stick to your brand?
Series1, No, 229, 57%
Series1, Yes , 171, 43% Yes No
As the COLD & FEVER tablets fall into the category of OTC products, no stickiness is shown in the behavior of the consumer. They generally buy these kind of tablets based on their choices. Availability of these tablets also play the MAJOR ROLE for their decision. But in our survey, 57% of the people generally do not stick with their tablet brand.
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(8) Would you like to switch over to another tablet?
Yes
No
252
148
Switching Over to another brand
Series1, No, 147, 37% Series1, Yes , 253, 63% Yes No
Generally it happens in the COLD & FEVER tablets, that if there is any new brand or tablet come up with some more advantages, then people always prefer it . In our survey, we also face that kind of th e behavior from the people that if there will be any new COLD & FEVER tablet K.S. SCHOOL OF BUSINESS MANAGEMENT 45
come up with some more benefits they will surely like to switch over to it.
(9) Do you face any side effects after taking such tablet?
Yes
No
44
356
Side-effects
Series1, Yes, 44, 11%
Yes Series1, No, 356, 89% No
COLD & FEVER is the seasonal disease. So if people are consuming the various tablets for it they are not facing any kind of the SIDE EFFECTS for the same. Our survey itself indicates that out of 400 people, 89% of the people do not face any kind of the SIDE EFFECTS after the consumption of the tablets. K.S. SCHOOL OF BUSINESS MANAGEMENT 46
(10) Will you prefer such tablet which can be taken only once in a day?
Yes 374
No 26
Will you prefer suchSeries1, tablet which can be taken only once in a day? No, 26, 7%
Yes Series1, Yes, 374, 93% No
Generally, it is always turned into the answer of “YES” when there is better solution given to the consumers. Of course it?s the favourable decision by the consumers to go for such tablets which can be taken only once in a day. In our survey of 400 people , 93% people would like to buy the tablet which can be taken only once in a day.
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(11) Would you like to give the same tablet in form of syrup to your child?
Yes
No
287
113
Transformation Prefernce
Series1, No, 113, 28% Series1, Yes, 287, 72% Yes No
Generally, a small kid is given the syrups for COLD & FEVER because it is very easy to digest and also shows its effect rapidly. In our survey , 72% of the people prefer syrup form of the tablet for their child. According to them, it is more beneficial for a child.
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ORGANISATION CHART
Managing Director
HR Department
Quality Control Department
Finance Department
Production Department
Marketing and Sales Department
Manager
Manager
Manager
Manager
Manager
Executive
Accountants
Clerks
Executive
Area Managers
Technichians
Supervisors
Sales Executive
Business Development Executive
Workers
Workers
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Employee Welfare and Retention : The Employee welfare and retention is crucial affair for any organization. Employees are the arms and legs of any organization. It is very important to pay close attention towards the problems of the employees working in the organi zation.
Employee Welfare Schemes:1. Casual leave 2. Sick leave 3. Bonus : - 10 days per year :10 days per year
:- 1 month?s salary per annum
4. The workers will be provided special attire according to production premises.
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JOB DESCRIPTION & SPECIFICATION
MANAGING DIRECTOR
JOB DESCRIPTION:
Reports to: Partners Function: Handling emergency affairs Approve organization changes Approving policies Calling periodical and with board meeting of various managers
JOB SPECIFICATION:
Qualification : MBA in specified field Experience : 5 years experience
Responsible for : Implementing policies and converting plans into action.
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FINANCE MANAGER
JOB DESCRIPTION:
REPORTS TO : Managing Director FUNCTIONS : 1. To determine optimum capital structure and works towards its attainment. 2. To negotiate marketing, production and finance budgets and to prepare annual budget to achieve financial goals. 3. Fund management. 4. Develop creative ideas and credit and payment policy. 5. Budgeting and timely finalization of accounts. RESPONSIBILITIES : 1. To maintain enough liquidity level. 2. Responsible for investment return, financial financial plan and its execution. 3. Responsible for timely payment to creditors.
losses,
JOB SPECIFICATION:
JOB TITLE QUALIFICATION AGE : Finance manager : MBA in finance/C.A./ICWA : 25 years and above 52
K.S. SCHOOL OF BUSINESS MANAGEMENT
PHYSICAL HEALTH MENTAL ABILITY
: sound health and fitness : Good analytical skills, Dynamic nature : Minimum 2 years : Good communication power over numbers. Should be dynamic and having administrative quality.
EXPERIENCE SPECIAL SKILLS
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ACCOUNTANT
JOB DESCRIPTION:
REPORTS TO FUNCTIONS:
: Finance manager
1. To keep the records of purchase, sales, bad debt and credit period. 2. To prepare a daily vouchers, cashbooks and statement of financial position. 3. To keep the track of debtors and send letters of reminder. 4. To maintain all the records and to handle all legal formalities like income tax and sales tax 5. To assist and supervise the clerical staff. RESPONSIBILITIES: 1. He is responsible to submit all the records and financial reports to finance manager. 2. To maintain records of administrative and banking transactions. 3. To get the books of account audited after regular interval.
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JOB SPECIFICATION:
? JOB TITLE ? QUALIFICATION ? AGE ? MENTAL ABILITY ? EXPERIENCE : Accountant : M.COM. with computer knowledge : 25 years and above : Smart mind : Minimum 1 year
CLERK
JOB DESCRIPTION
? Reports to ? FUNCTIONS:
: Accountant
1. To maintain all the records and files of the day to day
activity. 2. To follow the instruction given by finance manager and accountant. 3. To prepare MIS (management informational system) report. 4. To carry out the official wo rk.
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? RESPONSIBILITIES: 1. Responsible to submit all the records and financial
reports to the financial manager. 2. Responsible to submit necessary account related files to accountant. Responsible for any mistakes committed in filing the data of day to day activities.
JOB SPECIFICATION
? JOB TITLE ? QUALIFICATION knowledge ? PHYSICAL HEALTH ? MENTAL ABILITY ? SPECIAL SKILLS
: Clerk : B.COM. with basic computer
-
: Sound Health : Sound mind : Fluent English skills
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PRODUCTION MANAGER
JOB DESCRIPTION:
? Reports to ? Functions: 1. To apply innovative method to achieve the production target in stipulated time period. 2. To co-ordinate with marketing and finance department for the smooth functions of organization. 3. To be aware of a latest innovation taking place in the similar industry regarding machines and productions. 4. To purchase raw materials considering good quality at reasonable rate and keep them pro perly stored. 5. To control and guide the supervisor. ? RESPONSIBILITY: 1. Responsible for efficient production schedules and the arrangement of labors. 2. Responsible for not achieving target within the stipulated time. 3. Responsible for implementing the effective production procedure. 4. Responsible for effective ordering quantity. : Managing Director
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JOB SPECIFICATION:
? JOB TITLE ? QUALIFICATION ? EXPERIENCE : Production Manager : M.Pharm. : Minimum 1 year.
? SPECIAL SKILLS : Effective plant maintenance, good communication and ability to take work from subordinate.
PRODUCTION EXECUTIVE
JOB DESCRIPTION
? Reports to ? Functions: 1. He has to look after all kinds of inventories namely raw material, work-in-progress and finished products. 2. To keep the register and stock sheet. : Production Manager
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3. To check the required quantity and to keep updated about suppliers.
? RESPONSIBILITIES: 1. Keeping day to day inventories records. 2. Responsible for non performance of work. 3. Responsible for inadequate stock and raw materials.
JOB SPECIFICATION
? JOB TITLE ? QUALIFICATION ? AGE ? EXPERIENCE : Production Executive : Graduate with complete knowledge of store keeping : 22 years and above : Experience is not m ust. Fresher may Also be accepted.
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TECHNICIAN
JOB DESCRIPTION
? Reports to ? Functions: 1. To maintain the machineries in the Production Department. 2. To solve the various problems regarding the Machines. 3. To give the knowledge of machines to the workers. ? Responsibilities : 1. Responsible for checking the daily performance of machineries. 2. Responsible for managing sudden breakdown of machines. : Production Executive
JOB SPECIFICATION
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.E. in Mechanical : Minimum 2 years : Ability to work with patience.
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SUPERVISOR
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. 2. 3. 4. To To To To perform the work given by the upper management. instruct workers for effective work. supervise the production process. solve the problems of workers. : Production Executive
? Responsibilities : 1. Responsible for checking the daily performance of workers. 2. Responsible for lower quality of finished good.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : Graduate : Minimum 1 year : Ability to work with peers,
Stable mentality
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HUMAN RESOURCE MANAGER
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To recruit eligible and compatible employees for the organization. 2. To direct the right path to employees. ? Responsibilities : 1. Responsible for the coordination among the different department 2. Responsible for efficient recruitment. : Managing Director
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : M.B.A. (H.R.) : Minimum 2 year : Good co mmunication skills, good
and creative skills
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HUMAN RESOURCE EXECUTIVE
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To motivate the workforce. 2. To control over the workforce. ? RESPONSIBILITY: 1. Responsible for the perfect direction to the employees. 2. Responsible for the implementation of new HUMAN RESOURCE policy. : HUMAN RESOURCE MANAGER
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.B.A. : Minimum 1 year : Good convincing power.
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QUALITY CONTROL MANAGER
JOB DESCRIPTION:
? Reports to ? Functions: 1. To control quality of the product. ? Responsibilities : 1. Responsible for quality of the cold & fever tablets : Managing Director
JOB SPECIFICATION:
? QUALIFICATION: M.Pharm. ? EXPERIENCE ? SKILLS : Minimum 2 year : Ability to work with peers.
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QUALITY CONTROL EXPERT
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To undertake quality control tests 2. To give the conclusions about the quality of manufacturing. 3. To assist the QUALITY CONTROL MANAGER in taking up the decisions regarding to the QUALITY CONTROL. : Quality Control Manager
? RESPONSIBILITY: 1. Responsible for tracing out the deteriorated production of COLD & FEVER tablets. 2. Responsible for maintaining the quality of the whole production.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.Pharm. : Minimum 2 years : Good judgmental skills
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TERRITORY MAP OF GUJARAT
SOUTH GUJARAT
SAURASTRA
CENTRAL GUJARAT
NORTH GUJARAT
KACHCHH
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ZONE
KACHCHH
AREA COVERED IN THE ZONE
Kachchh
SAURASTRA
Jamnagar , Rajkot , Surendranagar , Bhavnagar Amreli , Junagadh , Porbandar
CENTRAL GUJARAT
Ahmedabad , Gandhinagar , Kheda , Anand
NORTH GUJARAT
Banaskantha , Patan , Mehesana , Sabarkantha Panchmahal , Dahod
SOUTH GUJARAT
Vadodara , Bharuch , Narmada , Surat , Navsari , Dang , Valsad
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Sales Manager
Area Manager
Area Manager
Business Development Executive
North Zone
South Zone
Central Zone
Kachchh
Saurashtra
Executive
Executive
Executive
Executive
Executive
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Marketing and Sales manager:
There is a separate department altogether for running the sales and marketing processes of a company. And to manage these processes of sales and marketing, there is a professional appointed known as a sales manager. A sales manager is a person who is an expert in handling and managing the sales development processes of a company.
JOB DESCRIPTION :
Reporting to
: Managing director
Functions:
? To plan the marketing strategy based on budget. ? To take decision regarding promotional tools and advertising budget. ? To cooperate with production and financial manager. ? To build brand name of company. ? To approach the dealers and consumers to give self -space to our product. ? To keep past records of sales volume and customers. ? To maintain relations with dealers, constructor, and consumer.
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Responsibilities:
? ? ? ? Handling important sales deals Team management Responsible for product positioning. Responsible for complain of any customer or dealer.
JOB SPECIFICATION:
Qualification Experience Skills
: MBA in Marketing :5 to 7 years :Good leadership qualities , Good Communication skills
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Area manager
JOB DESCRIPTION:
Reporting to
: Sales manager
Functions:? ? ? ? Define target area for sales Guide the executives to achieve the sales goal Solving the problems of the executives Give innovative ideas to executives for sale of product
Responsibility ? Define target area for sales ? Knowledge about the area of selling the product
JOB SPECIFICATION:
Qualification Experience Skills
: specialization in economics : 3 to 4 year : good coordinating qualities
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Business Development Executive
JOB SPECIFICATION:
Qualification Experience Special Skills
: MBA in Marketing & M.A. in Economics : 2 to 3 years : Good communication & having administrative skills
JOB DESCRIPTION:
Reports to Functions:
: Sales Manager
? Brings orders from other states ? Maintaining relations with out -siders ? Brings information about competitors or market to the organization .
Responsibilities: ? Responsible for delivery of goods to out -siders ? Provide information about our product to out -siders ? Responsible for managing the orders given by out siders
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Sales Executives
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To assist the Marketing Manager. 2. To work out the marketing policies. 3. To give the SALES TARGETS to the sales persons. : Area manager
? RESPONSIBILITY: 1. Responsible for the achievement of the sales targets.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.B.A. : Minimum 6 months : Good convincing power.
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INPUT
(1) LAND:
Area: 95x70 square feet
Location:
A/8, phase-2, Near Arihant Pharmaceuticals, Sarkhej – Bavla Highway, Changodar, Ahmedabad -382213.
Cost of land: Rs.9897200 inclusive of all legal and documentation charges
Location Analysis:
To make the industry proceed faster and to make the business economically and socially viable, the selection of its location decision plays a vital role in the better prospect for the growth and development of the business.
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The following criteria have been considered while selecting the location.
1. Transportation Facility We have selected our location close to Sarkhej Bavla highway. So the availability of raw materials is easy and less cost consuming. For the manufacturing of medicin es, the selected location is ideal. And the best facilities are easily available for the manufacturing of the medicines.
2. Power and Fuel For the production, power is obtain from “Guja rat electricity Board”. The Fuel is not in much use for our production.
3. Water As water is basic requirement in production of Cold & Fever tablets, water is supplied by AUDA.
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(2) BUILDING:
In our organization there is no need for assigning major divisions as it is only a production unit. Yet we will have central control unit, security office, and main administrative office and store house to store finished product.
Construction area: Ground Floor: 6650 sq feet - 800 sq feet = 5850 sq feet
First Floor: 17x80 = 1360 square feet 30x15 = 450 square feet
Total construction in MEDICAMENT PHARMACEUTICALS : 7660 square feet. The cost of constructing building is Rs.61,28,000 at the rate of Rs. 800 per square feet.
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PLANT LAYOUT
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Machineries
V-Blender
The BLENDER is an efficient and versatile blending machine for mixing and lubrication process of dry granules and powder homogeneously. Blenders are available in various geometries, affecting the material movement, mixing efficiency and ease of cleaning in various batches. The selection of mixer is based on the nature of raw materials; we have our ingredients in powder form . So we have selected this BLENDER machine.
The BLENDER is used to mix the different ingredients and the raw materials so we can get the proper mixture of required ingredients in powder form.
Cost of V-Blender Machine: Rs. 250000 K.S. SCHOOL OF BUSINESS MANAGEMENT 79
SINGLE MINI ROTARY TABLET PRESS
Tablet presses , also called tableting machines, range from small, inexpensive bench -top models that make one tablet at a time (single-station presses), with only around a half -ton pressure, to large, computerized, industrial models (multi -station rotary presses) that can make hundre ds of thousands to millions of tablets an hour with much greater pressure. The tablet press is an essential piece of machinery for any pharmaceutical and nutraceutical manufacturer. The Tablet Press, Mini in size and Single Rotary is an ideal choice for small scale productions of tablets . It is also used to avoid wastage when high value ingredients are used for tablet formulations, also known as lab tablet press .
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The mini tablet press is designed with GMP considerations. It is sturdy, fitted with single s ided turret of special grade Iron Casting. After mixing up different ingredients, the process of compression starts. In this process the powder material of different mixed ingredients are transformed into the tablet shape. This tablet will be needed to be coated so this tablet shaped material is brought in the next step for “COATING”. The output capacity of SINGLE ROTARY MINI PRESS is 18000 per hour. Price of SINGLE ROTARY MINI PRESS: Rs. 480000
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Coating Machine
A coating is often applied to make the tablet smoother and easier to swallow, to control the release rate of the active ingredient, to make it more resistant to the environment (extending its shelf life), or to enhance the tablet's appearance. After getting transformed into the tablet shape the tablet is coated into the coating machine. The purpose behind coating the tablet is to hold the effects of the ingredients long lasting.
Price of coating machine: - Rs. 125000
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Packing Machine
It has been designed and developed to pack capsules, tablets or similar products into blisters. This reliable machine offers a high versatility and flexibility of production. After getting coated in the K.S. SCHOOL OF BUSINESS MANAGEMENT 83
coating machine, the tablets are packed in this step. The packing procedure includes packaging and sealing and coding embossing in which the details regarding to the tablets is printed on the back of the packets of tablets.
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PROCESS OF PRODUCTION
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Direct Compression
Tablets are the most common solid oral dosage form for many reasons including ease of manufacturing, convenience for the patient, accurate dose administration, and better stability than liquids and parenteral dosage forms. Direct compression is the simplest and most economical method for the manufacturing of tablets because it requires less processing steps than other techniques such as wet granulation and roller compaction. Since tablets can be considered a drug delivery system careful attention must be paid to their design, development and manufacturing in order to achieve the correct medical benefit.
? MIXING OF INGREDEINTS
1. In the first step of the process the ingredients Paraceatamol, Phenylpropanolamine, Caffeine Anhydrous, Chlorpheniramine Maleate are mixed up in the V-Blender. These ingredients are taken up as shown in the composition of 500mg tablet. 2. So they are mixed up thoroughly and this powder mixture is transferred to the next process for the compression.
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? Compression of Mixture
1. After getting mixed up in this step the powder form is compressed in the machine called SINGLE ROTARY MINI PRESS. 2. In this step the mixture is compressed by the upper and the lower punches. 3. So the mixture takes the basic shape of tablet. This basic shape of tablet is not yet the finished product. Then it is transferred to the next step.
? Coating the Tablet
1. After getting transformed into the tablet shape it is needed to be coated. 2. So in this step the tablets are coated. Coating of the tablet holds its impact for long time. It is also called as SUSTAINED RELEASED DRUG which releases its impact gradually after ingesting it.
? Packaging
1. After getting coated from the coating machine the tablets are transferred to the packing machine. 2. In this step the tablets are packed in the blisters by the BLISTERS PACKING MACHINE. The basic raw materials of packaging is PVC. 3. In this process the tablets are packed and transformed into the strips of 10 tablets. On the back of the strip the details like ingredients, brand name, manufacturing company?s name are printed or embossed. 4. These strips are packed into the boxes and are stored into the storage facility. K.S. SCHOOL OF BUSINESS MANAGEMENT 87
OUTPUT
After considering above manufacturing process ,we get the final product that is FREECOLD tablet (500mg) and FREECOLD strip which are shown below:
TABLETS & TRIPS
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COST OF PROJECT SR NO.
1 2 3 4 5 6 7
Particulars
Land Building Machineries Furniture & Fixtures Preliminary Expenses Misc Assets Working Capital Total
AMOUNT (Rs.)
9897200 6128000 1080000 384500 4350300 86000 1222000 23148000
Means of Finance
Equity Shares (56% of Total Cost of Project)Face Value @ Rs.10 each Bank Loan (44% of Total Cost of Project) Total
13148000
10000000 23148000
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Cost of Land
Description of Land
Rate per Square Feet
Total
95x70 square feet= 6650 square feet Document Charges Other Legal Charges
1450
9642500 76410 178290
Total
9897200
Cost of Building
Details of Construction Construction Rate per Square Feet (Rs.) Total
Ground Floor: 6650 sq feet- 800 sq feet = 5850 sq feet First Floor: 17x80 = 1360 square feet 30x15 = 450 square feet
800
4680000
800 800
1088000 360000
Total
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6128000
90
Cost of Machineries
Particulars Mixer Guibao W-series Single Rotary Tablet Press Coating Machine Packaging Machine Total
Rate ( Quantity Rs.) 1 1 1 1 250000 480000 125000 225000
Total (Rs.) 250000 480000 125000 225000 1080000
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Cost of Furniture & Fixtures
Particulars Table Revolving Chair Chair Fans Tube-Lights Filling Cabinets Sofa Sets Racks Glass Tables Food Tables Misc Furniture Total Unit 12 13 29 34 62 8 2 1 2 8 Unit Price 2200 800 200 850 100 4000 20000 18000 1500 5000 Total 26400 10400 5800 28900 6200 32000 40000 18000 3000 40000 173800 384500
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Preliminary Expenses
Particulars Advertisement Expenses Loan Processing Fees Consumption Marketing Research Telephone Deposit Electric Registration Fees Web-site Creation Consultation Charges Water Charges Total Amount (Rs.) 3600000 50000 2500 30000 5000 5000 10000 30000 612800 5000 4350300
Miscellaneous Assets
Particulars Telephone Printer Computers K.S. SCHOOL OF BUSINESS MANAGEMENT Unit 5 2 5 Unit Price 1500 4000 12000 Total 7500 8000 60000 93
Fire Extinguishers
3
3500
10500
Total
86000
Working Capital
Particulars Current Assets: Raw Material Finished Goods Debtors Current Liabilities: Creditors Net Working Capital 1 2 3 4 5
830000 367074 264109 1461183
1037716 385710 294236 1717662
651410 410000 316916 1378326
711082 431000 339596 1481678
812711 474000 384352 1671063
239183
239233
240096
270863
307955
1222000 1478429 1138230 1210815 1363108
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ASSUMPTION
Assumption that have been financial feasibility report: made for making this
?
IDBI 12%, secured loan (Rs.10000000) is taken against the security of land and machinery document. There are 313 working days in a year. Estimated production will do and sales of them will be realized. The credit allowed to debtors is 30 days. The credit is received from the creditors is also 30 days. Fixed assets are valued at historical cost less depreciation as per Income tax act, 1961 on S.L.M. bases. We have assumed the following Sales Classification. 95
? ?
? ?
?
?
K.S. SCHOOL OF BUSINESS MANAGEMENT
CLASSIFICATION Job work (cash) Remaining (50%) Cash sales Credit sales Total sales
PERCENTAGE 50% 30% 20% 100%
?
Debtors are valued on credit sales made during the year for calculation of working capital. No discount or commission is provided to customer or dealers. We assume that face value of equity share is Rs. 10 each & 1% dividend is to be paid to all the equity share holders. Carriage inward is calculated around 5% on total raw material consumed. We have assumed that there will be 10% increase in salary of the direct labour in 3 r d & 5 t h year respectively and 10% increase in salary for all other employee s in 5 t h year. We have assumed ONE MONTH salary per annum as bonus to all the employees of our organization. Purchase price of raw material and selling price of finished good is assumed to remain fix for the five years. There are no by products or work in progress at the end of the year. 96
?
?
?
?
?
?
?
K.S. SCHOOL OF BUSINESS MANAGEMENT
Balance Sheet
?
Wastage and negligible.
obsolesce
of
raw
material
is
quite
?
The total production capacity is 4507200.We have assumed the production capacity as 60%, 65%, 70%, 80%, 85% respectively.
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Particulars Source of funds: Share Capital General Reserve Profit & Loss Account Loan Total Application of Fund: Gross Block Depreciation Net Block Current Assets & Advances: Finished Goods Raw Materials Debtors Total of Current Assets Current Liabilities: Creditors Dividend Net worth Preliminary Expenses Cash Total
1
2
3
4
5
13148000 0
13148000 200000
13148000 400000 1854563
13148000 600000 2666792
13148000 800000 3696859 0 17644859
1376508 1527193 0 8000000 6000000 22524508 20875193
4000000 2000000 19402563 18414792
17575700 821850 16753850
16753850 821850 15932000
15932000 821850 15110150
15110150 821850 14288300
14288300 821850 13466450
367074 830000 264109 1461183
385710 1037716 294236 1717662
410000 651410 316916 1378326
431000 711082 339596 1481678
474000 812711 384352 1671063
239183 131480 1090520
239233 131480 1346949
240096 131480 1006750
270863 131480 1079335
307955 131480 1231628
3480240 2610180 1199898 986064 22524508 20875193
1740120 870060 1545543 2177097 19402563 18414792
0 2946781 17644859 98
K.S. SCHOOL OF BUSINESS MANAGEMENT
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Profit & Loss Statement
Particulars Incomes: Sales Add :Closing Stock Less : Opening Stock Revenue from job-work Total incomes Expenses: Raw material consumed Carriage Inward Direct Expenses Factory Overheads Admin. Overheads Selling Overheads Interest on Loan Audit fees Insurance 9185120 367074 0 7872960 10232880 385710 367074 8771040 11021640 410000 385710 9447120 20493050 11810400 431000 410000 10123200 21954600 13366920 474000 431000 11457360 24867280 1 2 3 4 5
17425154 19022556
7488262 374413 166000 1637000 1944650 1490500 1200000 20000 50000
8112284 405614 168000 1766000 1959850 2012500 960000 23000 55000
8736306 436815 186600 2170000 1989850 2147500 720000 23000 55000 35000 870060 17370131
9360328 468016 188600 2274000 2019850 1885500 480000 25000 60000 40000 870060 17671354
10608371 530419 208760 2401400 2175550 1952950 240000 25000 60000 40000 870060 19112510
Water charges 30000 35000 Preliminary 870060 870060 expenses w/off Total 15270885 16367308 Expenses Profit Before Tax (PBT) 2154269 2655248
3122919
4283246
5754770 100
K.S. SCHOOL OF BUSINESS MANAGEMENT
Tax @ 30% Profit After Tax (PAT) Dividend Total General Reserve Balance credited to b/s
646281 1507988 131480 1376508 0 1376508
796574 1858674 131480 1727194 200000 1527194
936876 2186043 131480 2054563 200000 1854563
1284974 2998272 131480 2866792 200000 2666792
1726431 4028339 131480 3896859 200000 3696859
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Cash Flow
Operating Balance of Profit & Loss Account Opening Balance of P&L A/c Less: Closing Balance of P&L A/c Add: Noncash items General Reserves Provision for taxes Interest on Loan Proposed Dividend Depreciation Preliminary Expenses w/off Changes in Working Capital Stock of Raw-Materials Stock of Finished Goods Debtors Creditors Less: Income tax paid Net cash flow from Operating Activity [A] Cash flow from Investing Activity Purchase of Machineries 0 646281 1200000 131480 821850 870060 5046179 200000 796574 960000 131480 821850 870060 3930649 200000 936876 720000 131480 821850 870060 4007636 200000 1284974 480000 131480 821850 870060 4600593 200000 1726431 240000 131480 821850 870060 5019888 1 0 1376508 2 1376508 1527194 -150686 3 1858674 2186043 -327369 4 2186043 2998272 -812229 5 2998272 4028339 -1030067
-830000 -367074 -264109 239183 -646281
-207716 -18636 -30127 50 -796574
386306 -24290 -22680 863 -936876
-59672 -21000 -22680 30767
-101629 -43000 -44756 37092
-1284974 -1726431
3177898
2877646
3410959
3243034 3141164
-1080000
0
0
0
0
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Purchase of Land Purchase of Building Purchase of Furniture Purchase of Other assets Preliminary Expenses Net Cash flow from Investing Activity
-9897200 -6128000 -384500 -86000 -4350300 -21926000
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Cash Flow from Financing Activities Share capital Loan Less: Repayment of loan Interest on loan Dividend Net Cash Flow from Financing Activities [C] Total [A]++[C] Opening Balance of Cash Closing Balance of Cash
13148000 10000000 -2000000 -1200000 0 19948000
0 0 -2000000 -960000 -131480 -3091480
0 0 -2000000 -720000 -131480 -2851480
0 0 2000000 -480000 -131480 2611480
0 0 -2000000 -240000 -131480 -2371480
1199898 0 1199898
-213834 1199898 986064
559479 986064 1545543
631554 1545543 2177097
769684 2177097 2946781
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Cost Sheet
Particulars Total Raw material consumed Carriage Inward Direct labour Bonus to Direct Labour Direct Expenses Prime cost Factory o/h Work cost Administration o/h Cost of Production 1 7488262 374413 144000 12000 10000 8028675 1637000 9665675 1944650 2 8112284 405614 144000 12000 12000 8685898 1766000 10451898 1959850 3 8736306 436815 158400 13200 15000 9359721 2170000 11529721 1989850 4 9360328 468016 158400 13200 17000 10016944 2274000 12290944 2019850 5 10608371 530419 174240 14520 20000 11347550 2401400 13748950 2175550
11610325
12411748
13519571
14310794
15924500 104
K.S. SCHOOL OF BUSINESS MANAGEMENT Add: Op. stock of 0 367074 Finished Goods
385710
410000
431000
Less: Closing stock Cost of sale Selling & Distribution O/h Cost of Goods Sold
367074 11243251
385710 12393112
410000 13495281
431000 14289794
474000 15881500
1490500
2012500
2147500
1885500
1952950
12733751
14405612
15642781
16175294
17834450
Profit Sales
4324329 17058080
4598308 19003920
4825979 20468760
5758306 21933600
6989830 24824280
Sales Budget
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Particulars Opening stock Production(unit) Closing Stock Sales
1(60%) 0 2704320 80000 2624320
2(65%) 80000 2929680 86000 2923680
3(70%) 86000 3155040 92000 3149040
4(75%) 92000 3380400 98000 3374400
5(85%) 98000 3831120 110000 3819120
Job-Work Sales
Year Job work (50% of sales) Cash (30%) Credit( 20%) Total 2624320 Rs. Per 1 Strip 1312160 1312160 6 7 7872960 9185120 7872960 6429584 2755536 17058080 17058080
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Year Job work (50% of sales) Cash (30%) Credit (20%) Total
Rs. Per 2 Strip 1461840 1461840 2923680 6 7 8771040 10232880 8771040 7163016 3069864 19003920 19003920
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
Rs. Per 3 Strip 1574520 1574520 3149040 6 7 9447120 11021640 9447120 7715148 3306492 20468760 20468760
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
Rs. Per 4 Strip 1687200 1687200 6 7 10123200 11810400 10123200 8267280 3543120 21933600 21933600 Rs. Per 5 Strip 1909560 1909560 6 7 11457360 13366920 11457360 9356844 4010076 24824280 24824280
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
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R. M. Consumed
Particulars Opening Stock Purchase Closing Stock Raw Material consumed
1 0 8318262 830000 7488262
2 830000 8320000 1037716 8112284
3 1037716 8350000 651410 8736306
4 651410 9420000 711082 9360328
5 711082 10710000 812711 10608371
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SALARY STRUCTURE
Particulars Salary Per Annum 36000 No. of Employees 4 1 2 3 4 5
Direct Labour Factory Overheads: Manager Executive Technichian Human Resource Department: Manager Executive Quality Control Department: Manager Finance Department: Manager Accountant Administration Department:
144000
144000
158400
158400
174240
156000 96000 84000
1 1 1
156000 96000 84000 336000
156000 96000 84000 336000
156000 96000 84000 336000
156000 96000 84000 336000
171600 105600 92400 369600
144000 84000
1 1
144000 84000
144000 84000
144000 84000
144000 84000
158400 92400
216000
1
216000
216000
216000
216000
237600
216000 108000
1 1
216000 108000
216000 108000
216000 108000
216000 108000
237600 118800
Clerks 60000 2 120000 Peons 15000 2 30000 Security Guards 15000 2 30000 K.S. SCHOOL OF BUSINESS MANAGEMENT 948000 Selling & Distribution:
120000 30000 30000 948000
120000 30000 30000 948000
120000 132000 30000 33000 30000 33000 109 948000 1042800
Manager Area Manager Sales Exeutives Business Development Executive
252000 108000 84000 150000
1 2 5 1
252000 216000 420000 150000
252000 216000 420000 150000
252000 216000 420000 150000
252000 216000 420000 150000
277200 237600 462000 165000
1038000 1038000 1038000 1038000 1141800
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Calculation of Bonus
Particulars Bonus per Annum 3000 No. of Employees 4 1 2 3 4 5
Direct Labour Factory Overheads: Manager Executive Technichian Human Resource Department: Manager Executive Quality Control Department: Manager Finance Department: Manager Accountant Administration
12000
12000
13200
13200
14520
13000 8000 7000
1 1 1
13000 8000 7000 28000
13000 8000 7000 28000
13000 8000 7000 28000
13000 8000 7000 28000
14300 8800 7700 30800
12000 7000
1 1
12000 7000
12000 7000
12000 7000
12000 7000
13200 7700
18000
1
18000
18000
18000
18000
19800
18000 9000
1 1
18000 9000
18000 9000
19800 9900
19800 9900
21780 10890
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Department: Clerks Peons Security Guards 5000 1250 1250 2 2 2 10000 2500 2500 79000 10000 2500 2500 79000 11000 2750 2750 83200 11000 2750 2750 83200 12100 3024 3024 91518
Selling & Distribution: Manager Area Manager Sales Exeutives Business Development Executive 21000 9000 7000 12500 1 2 5 1 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 23100 19800 38500 13750 95150
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Factory Overheads
Particulars Power consumption Repairs & Maintenances Depreciation on Machineries Salary Bonus Total 1 1075000 36000 162000 336000 28000 1637000 2 1200000 40000 162000 336000 28000 1766000 3 1600000 44000 162000 336000 28000 4 1700000 48000 162000 336000 28000 5 1775000 64000 162000 369600 30800 2401400
2170000 2274000
Administrative Overheads
Particulars Municipal tax 1 45000 2 50000 3 55000 4 60000 5 70000 113
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Depreciation Salary Bonus Telephone Printing Power Total
659850 948000 79000 5000 20000 187800 1944650
659850 948000 79000 7000 22000 194000
659850 948000 79000 10000 26000 212000
659850 948000 79000 14000 34000 225000
659850 1042800 86900 16000 40000 260000 2175550
1959850 1989850 2019850
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Selling Overheads
Particulars Transportation Expenses Salary Bonus Telephone Expenses Advertisement Expenses Total 1 360000 1038000 86500 6000 0 1490500 2 380000 1038000 86500 8000 500000 3 410000 1038000 86500 13000 600000 4 445000 1038000 86500 16000 300000 5 495000 1141800 95150 21000 200000 1952950
2012500 2147500 1885500
DEPRECIATION
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Depreciation on Machineries (at 15%)
Particulars Opening Balance Depreciation Closing Balance 1 1080000 162000 918000 2 918000 162000 756000 3 756000 162000 594000 4 594000 162000 432000 5 432000 162000 270000
Depreciation on Building (at 10%)
Particulars Opening Balance Depreciatio n Closing Balance 1 6128000 612800 5515200 2 551520 0 612800 490240 0 3 490240 0 612800 428960 0 4 4289600 612800 3676800 5 367680 0 612800 306400 0
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Depreciation on Other Assets (at 10%)
Particulars Opening Balance Depreciation Closing Balance 1 86000 8600 77400 2 77400 8600 68800 3 68800 8600 60200 4 60200 8600 51600 5 51600 8600 43000
Depreciation on Furniture (at 10%)
Particulars Opening Balance Depreciation Closing Balance 1 384500 38450 346050 2 346050 38450 307600 3 307600 38450 269150 4 269150 38450 230700 5 230700 38450 192250
Total Depreciation
Particulars Total Depreciation 1 821850 2 821850 3 821850 4 821850 5 821850
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LOAN STATEMENT
Year 1 2 3 4 5 Loan amt. 10000000 8000000 6000000 4000000 2000000 Interest Loan Remaining Total Amount Amount Amount Payable Payable 1200000 2000000 8000000 3200000 960000 720000 480000 240000 2000000 2000000 2000000 2000000 6000000 4000000 2000000 0 2960000 2720000 2480000 2240000
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CALCULATION OF PAY-BACK PERIOD
Year PAT Depreciation 1 1507988 821850 2 1858674 821850 3 2186043 821850 4 2998272 821850 5 4028339 821850 6 5275000 821850 7 7350000 821850 8 7578000 821850 Preliminary w/off 870060 870060 870060 870060 870060 0 0 0 CFAT 3199898 3550584 3877953 4690182 5720249 6096850 8171850 8399850 C.CFAT 3199898 6750482 10628435 15318617 21038866 27135716 35307566 43707416
Payback Period:- 5 years and 5.14 months
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CALCULATION OF DISCOUNTED PAYBACK PERIOD
Year 1 2 3 4 5 6 7 8 CFAT 3199898 3550584 3877953 4690182 5720249 6096850 8171850 8399850 P.V. Factor @10% Amount Cumulative 0.909 2908707 2397758 0.826 2932782 5330540 0.751 2912343 8242883 0.683 3203394 11446277 0.621 3552275 14998552 0.564 3438623 18437175 0.513 4192159 22629334 0.467 3922730 26552064
[Cost of capital = Cost of debt + Cost of equit = [I (1-t) + Dividend paid/Total share capital]*100 = 0.12(1-0.3) + 131480/13148000*10 = [0.084 + 0.01]*100 = 0.094*100
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= 9.4% ~ 10% Discounted Pay-back Period: 7 years and 1.58 months]
Net Present Value
P.V. factor Year Cash flow @10% 1 3199898 0.909 2908707 2908707 2 3550584 0.826 2932782 5841489 3 3877953 0.751 2912343 8753832 4 4690182 0.683 3203394 11957226 -19988949 0.57 11393701 23350927 Less: Cost of Project 23148000 P.V. of cash inflow 202927
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Internal Rate of Return
Year 1 2 3 4 -----Year 1 2 3 4 ----Cash flow 3199898 3550584 3877953 4690182 19988949 Cash flow 3199898 3550584 3877953 4690182 19988949 P.V. factor @10% 0.909 0.826 0.751 0.683 0.57 P.V. factor @12% 0.893 0.797 0.712 0.636 0.51 2857509 2829815 2761103 2982956 2908707 5738522 8499625 11482581
2908707 2908707 2932782 5841489 2912343 8753832 3203394 11957226 11393701 23350927
10194364 21676945
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= 10% + (23350927-23148000) * 2% (23350927-21676945) =10.24%
We are not getting NPV & IRR in 5 years so we have taken accumulated cash flow of 5,6,7 year & we take average of P.V factor 5,6,7 year.
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RATIO ANALYSIS
Particulars (1) Current ratio = C.A. C.L. (2) liquid ratio = liquid assets Liquid liab. 3.94:1 3.45:1 5.01:1 6.25:1 7.58:1 7.17:1 7.29:1 7.86:1 9.09:1 10.5:1 1st year 2nd year 3rd year 4th year 5th year
(3) Net profit = N. PAT*100 Sales 16.41% 18.16% 19.83% 25.38% 30.13%
(4)
Return on share holders fund
13.65%
15.15%
16.00%
19.28%
22.83%
= NPAT*100 Sha. Holders’ Fund
(5) Debt equity ratio = long term liab. Sha. Hold.’s fund 0.72:1 0.48:1 0.29:1 0.12:1 0
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(6) stock turnover ratio = C.O.G.S. Avg. stock
34.68:1
38.27:1
39.31:1
38.46:1
39.41:1
(7) Debtors ratio = (drs+B/r)360 Cr.sales 30days 30days 30days 30days 30days
(8) Creditors ratio = (crs+B/P)360 Cr. Pur. 30days 30days 30days 30days 30days
(9) FA turn over ratio = sales FA
0.54times
0.64time s
0.72time s
0.82times
0.99times
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SWOT ANALYSIS
STREGNTH
THREAT
SWOT
OPPORTUNITY
WEAKNESS
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(1)
STRENGTH
It is an inherent capacity of the organization which it can use to gain strategic advantage over its competitors. Strength of our company can be identified as under: (a) The labour is easily and cheaply available from the nearby villages. For worker no particular skill or any formal training is required. (b) As our plant is near to the National Highway 8, we will have better transportation facility (c) Our plant is far from the town and other residential area so it would not cause any harm to the population.
(2)
WEAKNESS
It is an inherent limitation or constraint which may inhibit the growth of an organization.
(a) At initial stage the medicine manufacturing requires a
huge amount of investment. That is why at initial stage we have purchased small machineries.
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(3)
OPPORTUNITY
An opportunity is a favorable condition in the organization?s environment which enables it to strengthen its position. Now-a-days Gujarat is becoming co. are coming and overall economy of towards development. Many people Gujarat from the other states so there medicines. industrial hub. Many Gujarat is in direction are migrated in the is a huge demand for
(4)
THREAT
A threat is an unfavorable condition in the organization?s environment which causes a risk for, or damage to, the organization?s position. (a) Being a high profitable business, there may be possibility of entry of a new company to earn profit which may divide the market share. (b) The existing firm may adopt new rigorous promotional activity which may create some problem to capture the market.
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CONCLUSION
By doing research, we come to the conclusion that considering the conditions and circumstances, the project is definitely viable.
This task has provided us an opportunity to play a role as an entrepreneur, we are confident that it will help us in our career in future. We are thankful to the supporters who have contributed somewhere and somewhat to our project. Thanks goes to not only to the FAMYCARE PHARMACEUTICALS which we visited for better idea about the product and production but also to the faculty guide who guided us at any time without fail and provided us an opportunity to learn so much about practical aspect of corporate world.
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BIBLIOGRAPHY
? Marketing management - Philip Kotler
? Finance management
- I. M. Pandey, Khan & Jain
WEBOGRAPHY
? ? ? ?
www.google.com www.pharmapedia.com www.zamanzar.com www.99acres.com
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doc_224072055.pdf
A pharmaceutical drug, also referred to as a medicine or medication, can be loosely defined as any chemical substance - or product comprising such - intended for use in the medical diagnosis, cure, treatment, or prevention of disease.
INDEX
SL. NO.
1 2
PARTICULARS
PREFACE HISTORY OF MEDICINE
PAGE NO.
08 09
3
INTRODUCTION OF MEDICAMENT PHARMACEUTICALS PROJECT AT A GLANCE PARTNERSHIP DEED FEASIBILITY STUDY STEPS ENVIRONMENT SCANNING ? PEST ANALYSIS
13
4 5 6 7
14 15 22 23
MARKETING FEASIBILITY 8 ? ? 4 P?S OF MARKETING ? MARKET RESEARCH FINDINGS & CONCLUSION 26
HUMAN RESOURCE FEASIBILITY 9 ? ORGANISATION CHART ? JOB PROFILE 58
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TECHNICAL FEASIBILITY 10 ? INPUT ? PROCESS PLANT LAYOUT ? 75
FINANCIAL FEASIBILITY 11 COST OF PROJECT BALANCE SHEET ? PROFIT & LOSS A/C ? CASH FLOW STATEMENT ? COST SHEET WORKING CAPITAL STATEMENT ? CAPITAL BUDGETING ? RATIO ANALYSIS ? SWOT ANALYSIS ? CONCLUSION BIBLIOGRAPHY & WEBOGRAPHY ?
85
?
12 13
111 112
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ACKNOWLEDGEMENT
It is possible that the theoretical knowledge is an important thing which is not possible without the support, guiding, motivat ion & inspiration provided by the different person. Hence, we are thankful to many people.
We express our great thanks to our college “K.S. School Of Business Management " and its Director Dr. Sarla Achuthan for giving us the chance of guiding ourselves to learn various aspects practically.
We are highly thankful to our project coordinator Mrs . INGITA JAIN who has continuously guide us till the last word of this project report & provide an excellent motivation to us.
Lastly, we would like to express our gratitude to all those people who have extended their tremendous support & co -operation.
We have made a feasibility report on the establishment of the pharmaceutical company. The name of our compa ny is MEDICAMENT PHARMACEUTICALS. We have taken into consideration technical, marketing & financial feasibility of the industry in our project.
For the technical feasibility we have taken a visit of FAMYCARE PHARMACEUTICALS at BAVLA. From there we came to know the machineries for the production process of COLD & FEVER tablets and other related information. In marketing feasibility, we have K.S. SCHOOL OF BUSINESS MANAGEMENT 3
done the marketing survey of consumers. By analyzing the survey we found the requirement of COLD & FEVER tablets in the market.
The most important of all was the financial feasibility. We estimated all the expenses, which are likely to incur for the establishment of medicine industry. These all things are discussed further in detail in the project report.
HISTORY OF MEDICINE
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Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness. In the early 19th century the active ingredients of natural drugs were isolated. Narcotine was isolated from opium in 1803. Morphine was identified in 1806. Emetine and strychnine followed in 1817. Quinine (used to treat malaria) was identified in 1820. It was followed by nicotine in 1828, atropine in 1833 and cocaine in 1860. Meanwhile in 1822 a trapper named Alexis St Martin was shot in the stomach. The wound healed leaving a hole into his stomach. A doctor named William Beaumont found out how a stomach works by looking through the hole. During the 19th ce ntury there were several outbreaks of cholera in Britain. During the 1854 epidemic John Snow (1813 -1858) showed that cholera was transmitted by water. CHLOROFORM was invented in 1847 for the operations.
Pasteur and his team went on to create a vaccine fo r anthrax by keeping anthrax germs heated to 42 -43 degrees centigrade for 8 days. In 1882 they created a vaccine for rabies. A co -worker dried the spines of rabbits that had contracted the disease in glass jars. Pasteur tried giving a series of injections made from the dried spines to animals to test the remedy. Then, in 1885, Pasteur successfully used the vaccine on a boy who had been bitten by a rabid dog.
Meanwhile In 1875 Robert Koch (1843 -1910) isolated the germ that causes anthrax. In 1882 he isolat ed the germ that causes tuberculosis and in 1883 he isolated the germ that causes cholera in humans. K.S. SCHOOL OF BUSINESS MANAGEMENT 5
Meanwhile the organism that causes leprosy was discovered in 1879. The germ that causes typhoid was isolated in 1880. The germ that causes diphtheria was d iscovered in 1882 by Edwin Klebs. In 1884 the germs that cause tetanus and pneumonia were both discovered. Immunization against diphtheria was invented in 1890. A vaccine for typhoid was invented in 1897. Rubber gloves were first used in surgery in 1890. MEDICINE IN 20 T H CENTURY Medicine made huge advances in the 20th century. In 1900 different blood types were identified. That made safe blood transfusions possible. In 1932 a German named Gerhard Domagk discovered that a red dye called prontosil killed streptococcus microbes (which causes blood poisoning). In 1935 his daughter suffered from blood poisoning after cutting herself. Domagk gave her a dose of prontosil which cured her. Antibiotics were discovered too. Penicillin was discovered in 1928 by Alexander Fleming
The first heart transplant was performed in 1967. The first artificial heart was installed in 1982. The first heart and lung transplant was performed in 1987. In the late 20th century medicine continued to develop rapidly. In 1980 the World Health Organization announced that smallpox had been eradicated. However in 1981 a terrible new disease call ed AIDS was isolated. In 1983 Magnetic Resonance Imaging or MRI was introduced. Synthetic skin was developed in 1986 and gene therapy was introduced in 1990.
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Introduction of MEDICAMENT PHARMACEUTICALS
Name: - MEDICAMENT PHARMACEUTICALS
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Logo: -
Punch Line: - “ AMARU LAKHSYA, TAMARI TANDURASTI ”
Meaning of The Name: - The name itself suggest the Meaning of medicine
Brand Name: -
Brand Tag-line: - “RAAHAT NISHDIN”
Name Product
MEDICAMENT PHARMACEUTICALS Cold & Fever Tablets 8
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Constitution
Private Ltd.
A/8, Phase-II, Near Arihant Pharmaceuticals, Industry Address Sarkhej – Bavla highway, Changodar, Ahmedabad – 382213.
Total Cost of Project Means of Finance: Equity Shares (56% of Total Cost of Project)(face value=Rs.10each) Bank Loan (44% of Total Cost of Project)
23148000
13148000
10000000
PROJECT AT A GLANCE
Meaning of Feasibility Report:K.S. SCHOOL OF BUSINESS MANAGEMENT 9
A feasibility report means a report which projects the practical viability of a venture with respect to different dimensions.
Marketing Feasibility:From product is marketing are viable marketing point of view, it is important that the accepted and adored by customers. In order to do so department will have to check whether their strategies or not in terms of effectiveness.
Technical Feasibility:This phase of feasibility study includes requirement of plant, machineries, miscellaneous fixed assets, furniture, etc. A large capital is required for production of COLD & FEVER tablets.
Financial Feasibility:An industry has to see whether the amount invested is viable in terms of return and anticipated revenues. Careful inspection of all the data related to balance -sheet, cash flow aspect, depreciation, description about loan, etc. fall under financial feasibility.
Social Feasibility:K.S. SCHOOL OF BUSINESS MANAGEMENT 10
It should not only viable from the above mentioned angles, but it must be such that it does not harm the community. Mankind is a community that we all stand in a relation to each other, that there is a public end and interest of society which each particular is obliged to promote, is the sum of morals.
PEST ANALYSIS
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PEST Analysis stands for “Political, Economic, Social and Technological Analysis " and describes a framework of macro environmental factors used in the environmental scanning component of useful strategic tool for understanding market growth or decline, business position, potential and direction fo r operations.
The acronym PEST is used to describe a framework for the analysis of these macro environmental factors.
1. Political Environment:
Political environment covers those factors which either restrain or facilitate the business through government actions. Our industry will be definitely under the effect of TAX POLICY changes which may lead to variations in the administration at the centre which may also lead to the changes in the sales tax rate which may harshly affect our industry. Acceptance/rejection of any new technology related to the machineries also depends upon the ideology of the political party ruling at that time .
2. Economical Environment:
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The economic environment also affects our business. Normally, the growth rate of pharmaceutical industry is 9% to 19% every year. The growth rate mainly steams from emerging economies which are striving to meet their rapidly growing demand for housing & infrastructure but due to recession, demand for the cold & fever tablets may be affected.
3. Social Environment
Our industry believes that harmony between the society & environment is the prime essence of healthy life and living the sustenance of our ecological balance is very much important because our industry making pollution in form of CO 2 . So our industry has evolved an environmental policy. the aim of which is to do all this is reasonably practicable to prevent or minimize, the risk of an adverse environmental impact in terms of dust, noise pollution, etc. on the society.
4. Technological Environment
Technological innovations are introduced for higher productivity, lower cost and more revenue. The industry that moves with the latest technology can excel their growth, that?s Why our industry has decided to install latest technological plant & machineries in our production process.
Introduction
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In simple words, “Marketing is meeting needs profitability.” In formal Way, marketing is a primary management function which organizes and directs the aggregate of business activities involved in converting consumer purchasing power into effective demand for a specific services and in moving the product and services to the final consumer so as to achieve the company set other objectives.
Our marketing feasibility reports deal with the product policy that is what type of product or products should be manufactured. The determination of price and the terms of payment are also converted in the price.
4 P’s
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OF MARKETING
This is an important concept in the modern marketing. It consisted of product, price, place & promotion. So, it is known as 4P?s of marketing.
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1.
PRODUCT :
A product is anything that can be offered to a market to satisfy want or need , including physical goods, services, experiences, events, persons ,places, properties, organizations, information and ideas.
Core benefit
Basic product Expected product Augmented Potential product
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Core benefit
The fundamental level is the core benefit the service or benefit the customer is really buying. A customer is buying medicine to get relief form cold and fever. Marketers must see themselves as benefit provider .
Basic product
At the second level, the marketer must turn the core benefit into a basic product. The basic product of our industry is cold and fever tablets .
Expected product
An expected product is a set of attributes and conditions, which the buyers normally expect when they purchase the product Here, consumer expects to get rid of their health related problems and there has to be no side effects from the product they use.
The expected product that is offered by our indus try is ? Good quality ? Quick healing ? Good Packing K.S. SCHOOL OF BUSINESS MANAGEMENT 17
? Reasonable Price ? Easy availability
Augmented product
At this level, manufacturer voluntarily improves existing product by adding new feature to enhance the value of the product that exceeds consumers? e xpectation. The augmented product that our industry will provide: ? ? ? ? Flavours Dust less packaging Competition Brand positioning
Potential Product
Potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future. ? New way to satisfy customers and distinguish their offering. ? Medicine has potential to provide shelter against common cold , fever and pain
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? PRODUCT MIX
MEDICAMENT PHARMACEUTICALS
FREECOLD TABLETS
WHITE
500 mg
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? PRODUCT WIDTH
Product width of a product refers to how many different lines the company carries. MEDICAMENT PHARMACEUTICALS carries one product width.
1. COLD & FEVER TABLETS.
? PRODUCT LENGTH
It refers to the total number of the items in the mix. The product length of MEDICAMENT PHARMACEUTICALS is one.
? PRODUCT DEPTH
Product depth of product mix refers to how many variant s the company has in each line. Product depth of MEDICAMENT PHARMACEUTICALS is one. ? 500 mg
? PRODUCT CONSISTENCY
The consistency of the product mix refers to how closely related the various product lines are in end use, production requirement distribution channels, or some other way MEDICAMENT PHARMACEUTICALS product lines are consistent in so far as they are consume r goods that go through the same distribution channel. The lines are more consistent in so far as they perform single functions for the buyers.
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? PRICE
Pricing plays an important role in today?s world. A firm set a price for the first time when it introduc es a new product. Price is an only factor that generates the revenues.
Our industry decided the pricing policy after taking into consideration of the competitor?s prices to enhance sales at introduction stage.
Brand name
Vicks Action 500 D?Cold Crocin
Price (per strip in Rs.)
10 10 10
We plan to provide products on wholesale basis and through internet and teleshopping .Half of the amount of order would be collected on order basis and the rest along with the delivery and for the ord ers through telephone and internet the cash would be collected on delivery basis.
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PRICE OF COLD & FEVER TABLETS AT MEDICAMENT PHARMACEUTICALS:
The price of our tablet is Rs. 7.00 PER STRIPS.
DISTRIBUITION CHANNELS WHOLE SELLER RETAILER JOB WORKS
PRICE(per strips in Rs) 7 8 6
? PLACE
Place is concerned with linking the buyers & sellers. It includes the decision about the channel of distribution, means of transportation, warehousing, inventory control, etc. the seller needs to select an appropriate place for manufacturing a product in such a way that it fulfills the criteria of availabilities to the prospective customers. Marketer should make a product available at as many places as possible so that it can easily attract the customers and increase its market share by the way of selling it to them.
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? Distribution Channel
Distribution channel refers to the distribution of goods from manufacturer to customer , Our distribution channel is as follow.
MEDICAMENT PHARMACEUTICALS
DISTRIBUTORS
RETAILERS
CUSTOMERS
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? Promotion
Promotion is a tool through which marketers communica te their product to the consumer. Advertising is any paid form of non personal presentation and promotion of goods or services by identified sponsors . Following are the 5 promotion tools:
Advertising
Public relation
Sales promotion
Promotion Tools
Direct marketing
Personal selling
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Promotion can be done through various media such as : ? Television ads : - E -TV ,DD GUJARATI,ZEE GUJARATI ? Newspaper ads: - DIVYA BHASKAR,SANDESH ? PAMPHLET , YELLOW PAGES AND CATALOUGES
5 M’s of ADVERTISEMENT
MESSAGE Msg generation Msg evaluation Msg execution MISSION Sales Goals Advertising objectives MONEY Stage in PLC Mkt sh & consumer based competition MEDIA Reach, frequency, impact Major media types Specific media vehicles MEASUR EMENT Comm. Impact
Sales impact
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? MISSION
Our main advertising aims are To create awareness about our medicine to the consumers & to create new brand image in the market. To persuade/convince the retailers and consumers to purchase.
? MONEY
There are main factors that influence the advertising budget.
?
Condition in product life cycle :In the primary condition, our advertising budget is high because we want to introduce our product to the customers to create awareness.
?
Market share and consumer base : As we have to build market share, we have to spend large amount on advertisement.
?
Competition : When tough competition exists, we will make more spending on advertisement. Our industry is falling in monopolistic market .
?
Advertising frequency: Television ads: once a day on ETV GUJARATI for 30 seconds Newspaper ads: twice a week in DIVYA BHASKAR AND SANDESH Pamphlets, yellow pages and catalogue
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?
Product substitutability:Our brands in less well differentiated or commodity like product classes require heavy advertising to estab lish a differential image. Newspapers @ 170 Rs. Per cm. B/W print at the middle part of the page . Television @ 5000 Rs. Total budget Rs.150000 for one month. Pamphlets, yellow pages ,catalogue Rs.3000 Total budget Rs.90000 for one month ADVERTISEMENT IN TELEVISION
YEAR 1 2 3 4 5
TIME(IN SEC.) 30 30 30 30 0
RS. PER WEEK 37500 6250 6250 4167 0
RS. PER MONTH 150000 25000 25000 16667 0
TOTAL 1800000 300000 300000 200000 0
NEWSPAPER
Y E A R 1 2 3 4 5 SANDESH(R s) (every Monday) 12900 833.25 1666.75 892.5 3125 DIVYA BHASKAR(R s) (every Thusday) 13350 1250 2500 1190.75 1041.75 PER MONTH SANDESH(R s) PER MONTH OF DIVYA BHASKAR(R s) 53400 5000 10000 4763 4167 TOTAL PER MONT H 10500 0 8333 16667 8333 16667 ANNUAL AMOUN T
51600 3333 6667 3570 12500
126000 0 100000 200000 100000 200000
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PAMPHLETS , CATALOGUES, YELLOW PAGES
YEAR 1 2 3 4 5 RS. PER DAY 1500 277 277 0 0 RS. PER MONTH 45000 8333 8333 0 0 TOTAL 540000 100000 100000 0 0
TOTAL CALCULATION
YEAR 1 2 3 4 5 TOTAL AMT 3600000 500000 600000 300000 200000
? MEDIA
After choosing the message, the advertiser?s next task is to choose media to carry it. Here are some media vehicles: o Television ads o Newspaper ads o Pamphlets , yellow pages and catalogue s
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? MESSAGE
YOU”
Our message is
“BECAUSE WE CARE FOR
The punch line of our company is “ AMARU LAKSHYA- TAMARI TANDURASTI ” which reflects our care for environment and for human health.
? MEASUREMENT
The demand for our produc t has been increased by 10% to 20% over the first 5 years and advertising is one of the reasons for that.
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MARKET RESEARCH
“Market research is systematic decision, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company."
OBJECTIVES OF RESEARCH:To find out the satisfaction level of consumers. To find out the factors considered by consumers at the time of purchasing. To come up with relevant suggestions.
MARKETING RESEARCH PROCESS
1) Define the problem and research objective. (2) Develop the research plans. (3) Collection of information. (4) Report the findings. (5) Analyze the information.K.S. SCHOOL OF BUSINESS MANAGEMENT
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? Define the problem and research objective
The main objective in our research is finding the scope and feasibility of cold & fever tablets.
? Develop the research plans
This involves the decision on the data sources, research approaches, research instrument, sampling plan, and contact methods.
1. Data Sources : Data sources can be divided into two parts. Primary Data Our research for primary source consists of “ survey of the consumers. " We have visited FAMYCARE PHARMACEUTICALS to get the information. Secondary Data Secondary Data are obtained by us from
o o
Marketing management by 'Philip Kotler.' We have used different websites like: 'www.Google.com ? „ www.pharmapedia.com ? „ www.zamanzar.com ? „ www.99acres.com ?
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2. Research Approaches : There is FIVE research approaches are as follows: We have used the “Survey approach” through the questionnaire of the „Retailers & Consumers.?
3. Research Instrument : Particular Sample unit Sample size Sampling procedure Consumer analysis Consumers 400 Convenient
? Collection of information
In collecting the information, we faced some problems like:
?
The response of some people was biased and unreliable.
? Analysis of Information
For analysis, we have distributed the various questions in tabulated form and we have presented it in the different charts.
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QUESTIONNAIRE
K.S SCHOOL OF BUSSINESS MANAGEMENT
Marketing Survey Questionnaire for identifying the preference and satisfaction levels of the consumers of tablets for COLD & FEVER. (From T.Y M.B.A Students) (For The PROJECT Purpose Only)
Name:
______________________ ______
Area:
______________________________
City:
______________________________
Age Group:
18-30 years
30-40 years
40 years and above
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(1) In which season do you get affected mostly by cold and fever? Winter Summer Monsoon
(2) Do you consult a d octor ? Yes No
(3) Which tablet do you prefer generally when you get cold and fever? D?Cold Vicks Action 500 Crocin Any Other: _______________ (please specify)
(4) How do you come to know about the tablet you prefer? Medical Stores Friends & Relatives Television Newspapers
(5) Do you buy such tablet by yourself or by suggestion of chemist? ______________________________________________________ _________________
(6) Are you satisfied with your tablet? Yes No
If no, then give reason: _____________________________________________________ K.S. SCHOOL OF BUSINESS MANAGEMENT 34
(7) Do you stick to your brand? Yes No
Give reason: ______________________________________________________ ________
(8) Would you like to switch over to another tablet? Yes No
If no, then give reason: ______________________________________________________
(9) Do you face any side effects after ta king such tablet? Yes No
(10) Will you prefer such tablet which can be taken only once in a day? Yes No
(11) According to you, how should be the ideal tablet? ______________________________________________________ __________________
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(12) Would you like to give the same tablet in form of syrup to your child? Yes No
THANK YOU _____________________________________ _______________
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GRAPHICAL REPRESENTATION AGE GROUP
Age 18 to 30 30 to 40 40 and above Total Total 214 77 109 400
Total, 40 and above, 109, 27%
Total
Total, 30 to 40, 77, 19%
Total, 18 to 30, 214, 54%
18 to 30 30 to 40 40 and above
From the above chart we can say that out of 400 consumers 54% consumers fall into the age group of 18 to 30 years which is followed by 40 and above (27%) age group.
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(1) In which season do you get affected mostly by cold and fever?
Season Winter Summer Monsoon Total
No. 266 48 86 400
No., Seasonal Effect Monsoon, 86, 22% No., Winter, 266, 66% Winter Summer Monsoon
No., Summer, 48, 12%
From the above chart, we can say that people get mostly affected by cold & fever in winter (66%) which is followed by monsoon (22%). Generally, people consult a doctor because of this kind of seasonal effect.
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(2) Do you consult a doctor?
Yes
No
Total
112
288
400
Consultation of Doctor Series1, Yes, 83, 28% Series1, No, 217, 72% Yes No
From the above chart, we can say that out of 400 consumers 72% consumers consult a doctor when they g et affected by the COLD & FEVER and rest(28%) are not.
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(3)
Which tablet do you prefer generally when you get cold and fever?
D'Cold
Vicks Action 500 41
Crocin
Others
183
39
137
Preference Of Tablet
Series1, Others, 137, 34%
Series1, D'cold, 183,D'cold 46% Vicks Action 500 Crocin Others
Series1, Crocin, 39, 10%
Series1, Vicks Action 500, 41, 10%
From the above chart, it clearly shows that there is a huge market covered by the D’Cold tablet (46%) which is followed by others (34%) and Vicks action 500(10%). K.S. SCHOOL OF BUSINESS MANAGEMENT 40
(4) How do you come to know about the tablet you prefer?
Medical Stores
Televis ion
Friends & Relatives
Newspapers
177
41
159
23
Series1, Means of knowing tablets Newspapers, 23, 6% Series1, Friends & Relatives, 159, 40% Series1, Medical Medical Stores Stores, 177, Television 44% Friends & Relatives Newspapers Series1, Television, 41, 10%
From the above chart we can show that , people come to know about particular tablet through medical stores (44%) which are followed by friend & relatives (40%).
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(5) Do you buy such tablet by yourself or by suggestion of chemist?
By myself
By suggestion
233
167
Series1, By suggestion, 167, 42%
Buying Preference
Series1, By By myself myself, 233, By suggestion 58%
As from above chart we can say, people mostly prefer to take tablets by themselves only (58%). There are some cases in which they ask t o CHEMIST (42%) for there preference .
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(6) Are you satisfied with your tablet?
Yes
No
327
73
Series1, No, 73, 18%
Satisfaction Level
Series1, Yes , 327, 82%
Yes No
By conducting the survey of 400 people, we came to know that 82% of the people are generally satisfied with their COLD & FEVER tablets which show their satisfaction level.
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(7) Do you stick to your brand?
Yes
No
171
229
Do you stick to your brand?
Series1, No, 229, 57%
Series1, Yes , 171, 43% Yes No
As the COLD & FEVER tablets fall into the category of OTC products, no stickiness is shown in the behavior of the consumer. They generally buy these kind of tablets based on their choices. Availability of these tablets also play the MAJOR ROLE for their decision. But in our survey, 57% of the people generally do not stick with their tablet brand.
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(8) Would you like to switch over to another tablet?
Yes
No
252
148
Switching Over to another brand
Series1, No, 147, 37% Series1, Yes , 253, 63% Yes No
Generally it happens in the COLD & FEVER tablets, that if there is any new brand or tablet come up with some more advantages, then people always prefer it . In our survey, we also face that kind of th e behavior from the people that if there will be any new COLD & FEVER tablet K.S. SCHOOL OF BUSINESS MANAGEMENT 45
come up with some more benefits they will surely like to switch over to it.
(9) Do you face any side effects after taking such tablet?
Yes
No
44
356
Side-effects
Series1, Yes, 44, 11%
Yes Series1, No, 356, 89% No
COLD & FEVER is the seasonal disease. So if people are consuming the various tablets for it they are not facing any kind of the SIDE EFFECTS for the same. Our survey itself indicates that out of 400 people, 89% of the people do not face any kind of the SIDE EFFECTS after the consumption of the tablets. K.S. SCHOOL OF BUSINESS MANAGEMENT 46
(10) Will you prefer such tablet which can be taken only once in a day?
Yes 374
No 26
Will you prefer suchSeries1, tablet which can be taken only once in a day? No, 26, 7%
Yes Series1, Yes, 374, 93% No
Generally, it is always turned into the answer of “YES” when there is better solution given to the consumers. Of course it?s the favourable decision by the consumers to go for such tablets which can be taken only once in a day. In our survey of 400 people , 93% people would like to buy the tablet which can be taken only once in a day.
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(11) Would you like to give the same tablet in form of syrup to your child?
Yes
No
287
113
Transformation Prefernce
Series1, No, 113, 28% Series1, Yes, 287, 72% Yes No
Generally, a small kid is given the syrups for COLD & FEVER because it is very easy to digest and also shows its effect rapidly. In our survey , 72% of the people prefer syrup form of the tablet for their child. According to them, it is more beneficial for a child.
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ORGANISATION CHART
Managing Director
HR Department
Quality Control Department
Finance Department
Production Department
Marketing and Sales Department
Manager
Manager
Manager
Manager
Manager
Executive
Accountants
Clerks
Executive
Area Managers
Technichians
Supervisors
Sales Executive
Business Development Executive
Workers
Workers
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Employee Welfare and Retention : The Employee welfare and retention is crucial affair for any organization. Employees are the arms and legs of any organization. It is very important to pay close attention towards the problems of the employees working in the organi zation.
Employee Welfare Schemes:1. Casual leave 2. Sick leave 3. Bonus : - 10 days per year :10 days per year
:- 1 month?s salary per annum
4. The workers will be provided special attire according to production premises.
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JOB DESCRIPTION & SPECIFICATION
MANAGING DIRECTOR
JOB DESCRIPTION:
Reports to: Partners Function: Handling emergency affairs Approve organization changes Approving policies Calling periodical and with board meeting of various managers
JOB SPECIFICATION:
Qualification : MBA in specified field Experience : 5 years experience
Responsible for : Implementing policies and converting plans into action.
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FINANCE MANAGER
JOB DESCRIPTION:
REPORTS TO : Managing Director FUNCTIONS : 1. To determine optimum capital structure and works towards its attainment. 2. To negotiate marketing, production and finance budgets and to prepare annual budget to achieve financial goals. 3. Fund management. 4. Develop creative ideas and credit and payment policy. 5. Budgeting and timely finalization of accounts. RESPONSIBILITIES : 1. To maintain enough liquidity level. 2. Responsible for investment return, financial financial plan and its execution. 3. Responsible for timely payment to creditors.
losses,
JOB SPECIFICATION:
JOB TITLE QUALIFICATION AGE : Finance manager : MBA in finance/C.A./ICWA : 25 years and above 52
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PHYSICAL HEALTH MENTAL ABILITY
: sound health and fitness : Good analytical skills, Dynamic nature : Minimum 2 years : Good communication power over numbers. Should be dynamic and having administrative quality.
EXPERIENCE SPECIAL SKILLS
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ACCOUNTANT
JOB DESCRIPTION:
REPORTS TO FUNCTIONS:
: Finance manager
1. To keep the records of purchase, sales, bad debt and credit period. 2. To prepare a daily vouchers, cashbooks and statement of financial position. 3. To keep the track of debtors and send letters of reminder. 4. To maintain all the records and to handle all legal formalities like income tax and sales tax 5. To assist and supervise the clerical staff. RESPONSIBILITIES: 1. He is responsible to submit all the records and financial reports to finance manager. 2. To maintain records of administrative and banking transactions. 3. To get the books of account audited after regular interval.
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JOB SPECIFICATION:
? JOB TITLE ? QUALIFICATION ? AGE ? MENTAL ABILITY ? EXPERIENCE : Accountant : M.COM. with computer knowledge : 25 years and above : Smart mind : Minimum 1 year
CLERK
JOB DESCRIPTION
? Reports to ? FUNCTIONS:
: Accountant
1. To maintain all the records and files of the day to day
activity. 2. To follow the instruction given by finance manager and accountant. 3. To prepare MIS (management informational system) report. 4. To carry out the official wo rk.
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? RESPONSIBILITIES: 1. Responsible to submit all the records and financial
reports to the financial manager. 2. Responsible to submit necessary account related files to accountant. Responsible for any mistakes committed in filing the data of day to day activities.
JOB SPECIFICATION
? JOB TITLE ? QUALIFICATION knowledge ? PHYSICAL HEALTH ? MENTAL ABILITY ? SPECIAL SKILLS
: Clerk : B.COM. with basic computer
-
: Sound Health : Sound mind : Fluent English skills
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PRODUCTION MANAGER
JOB DESCRIPTION:
? Reports to ? Functions: 1. To apply innovative method to achieve the production target in stipulated time period. 2. To co-ordinate with marketing and finance department for the smooth functions of organization. 3. To be aware of a latest innovation taking place in the similar industry regarding machines and productions. 4. To purchase raw materials considering good quality at reasonable rate and keep them pro perly stored. 5. To control and guide the supervisor. ? RESPONSIBILITY: 1. Responsible for efficient production schedules and the arrangement of labors. 2. Responsible for not achieving target within the stipulated time. 3. Responsible for implementing the effective production procedure. 4. Responsible for effective ordering quantity. : Managing Director
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JOB SPECIFICATION:
? JOB TITLE ? QUALIFICATION ? EXPERIENCE : Production Manager : M.Pharm. : Minimum 1 year.
? SPECIAL SKILLS : Effective plant maintenance, good communication and ability to take work from subordinate.
PRODUCTION EXECUTIVE
JOB DESCRIPTION
? Reports to ? Functions: 1. He has to look after all kinds of inventories namely raw material, work-in-progress and finished products. 2. To keep the register and stock sheet. : Production Manager
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3. To check the required quantity and to keep updated about suppliers.
? RESPONSIBILITIES: 1. Keeping day to day inventories records. 2. Responsible for non performance of work. 3. Responsible for inadequate stock and raw materials.
JOB SPECIFICATION
? JOB TITLE ? QUALIFICATION ? AGE ? EXPERIENCE : Production Executive : Graduate with complete knowledge of store keeping : 22 years and above : Experience is not m ust. Fresher may Also be accepted.
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TECHNICIAN
JOB DESCRIPTION
? Reports to ? Functions: 1. To maintain the machineries in the Production Department. 2. To solve the various problems regarding the Machines. 3. To give the knowledge of machines to the workers. ? Responsibilities : 1. Responsible for checking the daily performance of machineries. 2. Responsible for managing sudden breakdown of machines. : Production Executive
JOB SPECIFICATION
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.E. in Mechanical : Minimum 2 years : Ability to work with patience.
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SUPERVISOR
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. 2. 3. 4. To To To To perform the work given by the upper management. instruct workers for effective work. supervise the production process. solve the problems of workers. : Production Executive
? Responsibilities : 1. Responsible for checking the daily performance of workers. 2. Responsible for lower quality of finished good.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : Graduate : Minimum 1 year : Ability to work with peers,
Stable mentality
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HUMAN RESOURCE MANAGER
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To recruit eligible and compatible employees for the organization. 2. To direct the right path to employees. ? Responsibilities : 1. Responsible for the coordination among the different department 2. Responsible for efficient recruitment. : Managing Director
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : M.B.A. (H.R.) : Minimum 2 year : Good co mmunication skills, good
and creative skills
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HUMAN RESOURCE EXECUTIVE
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To motivate the workforce. 2. To control over the workforce. ? RESPONSIBILITY: 1. Responsible for the perfect direction to the employees. 2. Responsible for the implementation of new HUMAN RESOURCE policy. : HUMAN RESOURCE MANAGER
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.B.A. : Minimum 1 year : Good convincing power.
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QUALITY CONTROL MANAGER
JOB DESCRIPTION:
? Reports to ? Functions: 1. To control quality of the product. ? Responsibilities : 1. Responsible for quality of the cold & fever tablets : Managing Director
JOB SPECIFICATION:
? QUALIFICATION: M.Pharm. ? EXPERIENCE ? SKILLS : Minimum 2 year : Ability to work with peers.
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QUALITY CONTROL EXPERT
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To undertake quality control tests 2. To give the conclusions about the quality of manufacturing. 3. To assist the QUALITY CONTROL MANAGER in taking up the decisions regarding to the QUALITY CONTROL. : Quality Control Manager
? RESPONSIBILITY: 1. Responsible for tracing out the deteriorated production of COLD & FEVER tablets. 2. Responsible for maintaining the quality of the whole production.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.Pharm. : Minimum 2 years : Good judgmental skills
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TERRITORY MAP OF GUJARAT
SOUTH GUJARAT
SAURASTRA
CENTRAL GUJARAT
NORTH GUJARAT
KACHCHH
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ZONE
KACHCHH
AREA COVERED IN THE ZONE
Kachchh
SAURASTRA
Jamnagar , Rajkot , Surendranagar , Bhavnagar Amreli , Junagadh , Porbandar
CENTRAL GUJARAT
Ahmedabad , Gandhinagar , Kheda , Anand
NORTH GUJARAT
Banaskantha , Patan , Mehesana , Sabarkantha Panchmahal , Dahod
SOUTH GUJARAT
Vadodara , Bharuch , Narmada , Surat , Navsari , Dang , Valsad
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Sales Manager
Area Manager
Area Manager
Business Development Executive
North Zone
South Zone
Central Zone
Kachchh
Saurashtra
Executive
Executive
Executive
Executive
Executive
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Marketing and Sales manager:
There is a separate department altogether for running the sales and marketing processes of a company. And to manage these processes of sales and marketing, there is a professional appointed known as a sales manager. A sales manager is a person who is an expert in handling and managing the sales development processes of a company.
JOB DESCRIPTION :
Reporting to
: Managing director
Functions:
? To plan the marketing strategy based on budget. ? To take decision regarding promotional tools and advertising budget. ? To cooperate with production and financial manager. ? To build brand name of company. ? To approach the dealers and consumers to give self -space to our product. ? To keep past records of sales volume and customers. ? To maintain relations with dealers, constructor, and consumer.
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Responsibilities:
? ? ? ? Handling important sales deals Team management Responsible for product positioning. Responsible for complain of any customer or dealer.
JOB SPECIFICATION:
Qualification Experience Skills
: MBA in Marketing :5 to 7 years :Good leadership qualities , Good Communication skills
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Area manager
JOB DESCRIPTION:
Reporting to
: Sales manager
Functions:? ? ? ? Define target area for sales Guide the executives to achieve the sales goal Solving the problems of the executives Give innovative ideas to executives for sale of product
Responsibility ? Define target area for sales ? Knowledge about the area of selling the product
JOB SPECIFICATION:
Qualification Experience Skills
: specialization in economics : 3 to 4 year : good coordinating qualities
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Business Development Executive
JOB SPECIFICATION:
Qualification Experience Special Skills
: MBA in Marketing & M.A. in Economics : 2 to 3 years : Good communication & having administrative skills
JOB DESCRIPTION:
Reports to Functions:
: Sales Manager
? Brings orders from other states ? Maintaining relations with out -siders ? Brings information about competitors or market to the organization .
Responsibilities: ? Responsible for delivery of goods to out -siders ? Provide information about our product to out -siders ? Responsible for managing the orders given by out siders
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Sales Executives
JOB DESCRIPTION:
? Reports to ? FUNCTIONS: 1. To assist the Marketing Manager. 2. To work out the marketing policies. 3. To give the SALES TARGETS to the sales persons. : Area manager
? RESPONSIBILITY: 1. Responsible for the achievement of the sales targets.
JOB SPECIFICATION:
? QUALIFICATION ? EXPERIENCE ? SKILLS : B.B.A. : Minimum 6 months : Good convincing power.
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INPUT
(1) LAND:
Area: 95x70 square feet
Location:
A/8, phase-2, Near Arihant Pharmaceuticals, Sarkhej – Bavla Highway, Changodar, Ahmedabad -382213.
Cost of land: Rs.9897200 inclusive of all legal and documentation charges
Location Analysis:
To make the industry proceed faster and to make the business economically and socially viable, the selection of its location decision plays a vital role in the better prospect for the growth and development of the business.
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The following criteria have been considered while selecting the location.
1. Transportation Facility We have selected our location close to Sarkhej Bavla highway. So the availability of raw materials is easy and less cost consuming. For the manufacturing of medicin es, the selected location is ideal. And the best facilities are easily available for the manufacturing of the medicines.
2. Power and Fuel For the production, power is obtain from “Guja rat electricity Board”. The Fuel is not in much use for our production.
3. Water As water is basic requirement in production of Cold & Fever tablets, water is supplied by AUDA.
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(2) BUILDING:
In our organization there is no need for assigning major divisions as it is only a production unit. Yet we will have central control unit, security office, and main administrative office and store house to store finished product.
Construction area: Ground Floor: 6650 sq feet - 800 sq feet = 5850 sq feet
First Floor: 17x80 = 1360 square feet 30x15 = 450 square feet
Total construction in MEDICAMENT PHARMACEUTICALS : 7660 square feet. The cost of constructing building is Rs.61,28,000 at the rate of Rs. 800 per square feet.
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PLANT LAYOUT
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Machineries
V-Blender
The BLENDER is an efficient and versatile blending machine for mixing and lubrication process of dry granules and powder homogeneously. Blenders are available in various geometries, affecting the material movement, mixing efficiency and ease of cleaning in various batches. The selection of mixer is based on the nature of raw materials; we have our ingredients in powder form . So we have selected this BLENDER machine.
The BLENDER is used to mix the different ingredients and the raw materials so we can get the proper mixture of required ingredients in powder form.
Cost of V-Blender Machine: Rs. 250000 K.S. SCHOOL OF BUSINESS MANAGEMENT 79
SINGLE MINI ROTARY TABLET PRESS
Tablet presses , also called tableting machines, range from small, inexpensive bench -top models that make one tablet at a time (single-station presses), with only around a half -ton pressure, to large, computerized, industrial models (multi -station rotary presses) that can make hundre ds of thousands to millions of tablets an hour with much greater pressure. The tablet press is an essential piece of machinery for any pharmaceutical and nutraceutical manufacturer. The Tablet Press, Mini in size and Single Rotary is an ideal choice for small scale productions of tablets . It is also used to avoid wastage when high value ingredients are used for tablet formulations, also known as lab tablet press .
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The mini tablet press is designed with GMP considerations. It is sturdy, fitted with single s ided turret of special grade Iron Casting. After mixing up different ingredients, the process of compression starts. In this process the powder material of different mixed ingredients are transformed into the tablet shape. This tablet will be needed to be coated so this tablet shaped material is brought in the next step for “COATING”. The output capacity of SINGLE ROTARY MINI PRESS is 18000 per hour. Price of SINGLE ROTARY MINI PRESS: Rs. 480000
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Coating Machine
A coating is often applied to make the tablet smoother and easier to swallow, to control the release rate of the active ingredient, to make it more resistant to the environment (extending its shelf life), or to enhance the tablet's appearance. After getting transformed into the tablet shape the tablet is coated into the coating machine. The purpose behind coating the tablet is to hold the effects of the ingredients long lasting.
Price of coating machine: - Rs. 125000
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Packing Machine
It has been designed and developed to pack capsules, tablets or similar products into blisters. This reliable machine offers a high versatility and flexibility of production. After getting coated in the K.S. SCHOOL OF BUSINESS MANAGEMENT 83
coating machine, the tablets are packed in this step. The packing procedure includes packaging and sealing and coding embossing in which the details regarding to the tablets is printed on the back of the packets of tablets.
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PROCESS OF PRODUCTION
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Direct Compression
Tablets are the most common solid oral dosage form for many reasons including ease of manufacturing, convenience for the patient, accurate dose administration, and better stability than liquids and parenteral dosage forms. Direct compression is the simplest and most economical method for the manufacturing of tablets because it requires less processing steps than other techniques such as wet granulation and roller compaction. Since tablets can be considered a drug delivery system careful attention must be paid to their design, development and manufacturing in order to achieve the correct medical benefit.
? MIXING OF INGREDEINTS
1. In the first step of the process the ingredients Paraceatamol, Phenylpropanolamine, Caffeine Anhydrous, Chlorpheniramine Maleate are mixed up in the V-Blender. These ingredients are taken up as shown in the composition of 500mg tablet. 2. So they are mixed up thoroughly and this powder mixture is transferred to the next process for the compression.
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? Compression of Mixture
1. After getting mixed up in this step the powder form is compressed in the machine called SINGLE ROTARY MINI PRESS. 2. In this step the mixture is compressed by the upper and the lower punches. 3. So the mixture takes the basic shape of tablet. This basic shape of tablet is not yet the finished product. Then it is transferred to the next step.
? Coating the Tablet
1. After getting transformed into the tablet shape it is needed to be coated. 2. So in this step the tablets are coated. Coating of the tablet holds its impact for long time. It is also called as SUSTAINED RELEASED DRUG which releases its impact gradually after ingesting it.
? Packaging
1. After getting coated from the coating machine the tablets are transferred to the packing machine. 2. In this step the tablets are packed in the blisters by the BLISTERS PACKING MACHINE. The basic raw materials of packaging is PVC. 3. In this process the tablets are packed and transformed into the strips of 10 tablets. On the back of the strip the details like ingredients, brand name, manufacturing company?s name are printed or embossed. 4. These strips are packed into the boxes and are stored into the storage facility. K.S. SCHOOL OF BUSINESS MANAGEMENT 87
OUTPUT
After considering above manufacturing process ,we get the final product that is FREECOLD tablet (500mg) and FREECOLD strip which are shown below:
TABLETS & TRIPS
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COST OF PROJECT SR NO.
1 2 3 4 5 6 7
Particulars
Land Building Machineries Furniture & Fixtures Preliminary Expenses Misc Assets Working Capital Total
AMOUNT (Rs.)
9897200 6128000 1080000 384500 4350300 86000 1222000 23148000
Means of Finance
Equity Shares (56% of Total Cost of Project)Face Value @ Rs.10 each Bank Loan (44% of Total Cost of Project) Total
13148000
10000000 23148000
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Cost of Land
Description of Land
Rate per Square Feet
Total
95x70 square feet= 6650 square feet Document Charges Other Legal Charges
1450
9642500 76410 178290
Total
9897200
Cost of Building
Details of Construction Construction Rate per Square Feet (Rs.) Total
Ground Floor: 6650 sq feet- 800 sq feet = 5850 sq feet First Floor: 17x80 = 1360 square feet 30x15 = 450 square feet
800
4680000
800 800
1088000 360000
Total
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6128000
90
Cost of Machineries
Particulars Mixer Guibao W-series Single Rotary Tablet Press Coating Machine Packaging Machine Total
Rate ( Quantity Rs.) 1 1 1 1 250000 480000 125000 225000
Total (Rs.) 250000 480000 125000 225000 1080000
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Cost of Furniture & Fixtures
Particulars Table Revolving Chair Chair Fans Tube-Lights Filling Cabinets Sofa Sets Racks Glass Tables Food Tables Misc Furniture Total Unit 12 13 29 34 62 8 2 1 2 8 Unit Price 2200 800 200 850 100 4000 20000 18000 1500 5000 Total 26400 10400 5800 28900 6200 32000 40000 18000 3000 40000 173800 384500
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Preliminary Expenses
Particulars Advertisement Expenses Loan Processing Fees Consumption Marketing Research Telephone Deposit Electric Registration Fees Web-site Creation Consultation Charges Water Charges Total Amount (Rs.) 3600000 50000 2500 30000 5000 5000 10000 30000 612800 5000 4350300
Miscellaneous Assets
Particulars Telephone Printer Computers K.S. SCHOOL OF BUSINESS MANAGEMENT Unit 5 2 5 Unit Price 1500 4000 12000 Total 7500 8000 60000 93
Fire Extinguishers
3
3500
10500
Total
86000
Working Capital
Particulars Current Assets: Raw Material Finished Goods Debtors Current Liabilities: Creditors Net Working Capital 1 2 3 4 5
830000 367074 264109 1461183
1037716 385710 294236 1717662
651410 410000 316916 1378326
711082 431000 339596 1481678
812711 474000 384352 1671063
239183
239233
240096
270863
307955
1222000 1478429 1138230 1210815 1363108
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ASSUMPTION
Assumption that have been financial feasibility report: made for making this
?
IDBI 12%, secured loan (Rs.10000000) is taken against the security of land and machinery document. There are 313 working days in a year. Estimated production will do and sales of them will be realized. The credit allowed to debtors is 30 days. The credit is received from the creditors is also 30 days. Fixed assets are valued at historical cost less depreciation as per Income tax act, 1961 on S.L.M. bases. We have assumed the following Sales Classification. 95
? ?
? ?
?
?
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CLASSIFICATION Job work (cash) Remaining (50%) Cash sales Credit sales Total sales
PERCENTAGE 50% 30% 20% 100%
?
Debtors are valued on credit sales made during the year for calculation of working capital. No discount or commission is provided to customer or dealers. We assume that face value of equity share is Rs. 10 each & 1% dividend is to be paid to all the equity share holders. Carriage inward is calculated around 5% on total raw material consumed. We have assumed that there will be 10% increase in salary of the direct labour in 3 r d & 5 t h year respectively and 10% increase in salary for all other employee s in 5 t h year. We have assumed ONE MONTH salary per annum as bonus to all the employees of our organization. Purchase price of raw material and selling price of finished good is assumed to remain fix for the five years. There are no by products or work in progress at the end of the year. 96
?
?
?
?
?
?
?
K.S. SCHOOL OF BUSINESS MANAGEMENT
Balance Sheet
?
Wastage and negligible.
obsolesce
of
raw
material
is
quite
?
The total production capacity is 4507200.We have assumed the production capacity as 60%, 65%, 70%, 80%, 85% respectively.
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Particulars Source of funds: Share Capital General Reserve Profit & Loss Account Loan Total Application of Fund: Gross Block Depreciation Net Block Current Assets & Advances: Finished Goods Raw Materials Debtors Total of Current Assets Current Liabilities: Creditors Dividend Net worth Preliminary Expenses Cash Total
1
2
3
4
5
13148000 0
13148000 200000
13148000 400000 1854563
13148000 600000 2666792
13148000 800000 3696859 0 17644859
1376508 1527193 0 8000000 6000000 22524508 20875193
4000000 2000000 19402563 18414792
17575700 821850 16753850
16753850 821850 15932000
15932000 821850 15110150
15110150 821850 14288300
14288300 821850 13466450
367074 830000 264109 1461183
385710 1037716 294236 1717662
410000 651410 316916 1378326
431000 711082 339596 1481678
474000 812711 384352 1671063
239183 131480 1090520
239233 131480 1346949
240096 131480 1006750
270863 131480 1079335
307955 131480 1231628
3480240 2610180 1199898 986064 22524508 20875193
1740120 870060 1545543 2177097 19402563 18414792
0 2946781 17644859 98
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Profit & Loss Statement
Particulars Incomes: Sales Add :Closing Stock Less : Opening Stock Revenue from job-work Total incomes Expenses: Raw material consumed Carriage Inward Direct Expenses Factory Overheads Admin. Overheads Selling Overheads Interest on Loan Audit fees Insurance 9185120 367074 0 7872960 10232880 385710 367074 8771040 11021640 410000 385710 9447120 20493050 11810400 431000 410000 10123200 21954600 13366920 474000 431000 11457360 24867280 1 2 3 4 5
17425154 19022556
7488262 374413 166000 1637000 1944650 1490500 1200000 20000 50000
8112284 405614 168000 1766000 1959850 2012500 960000 23000 55000
8736306 436815 186600 2170000 1989850 2147500 720000 23000 55000 35000 870060 17370131
9360328 468016 188600 2274000 2019850 1885500 480000 25000 60000 40000 870060 17671354
10608371 530419 208760 2401400 2175550 1952950 240000 25000 60000 40000 870060 19112510
Water charges 30000 35000 Preliminary 870060 870060 expenses w/off Total 15270885 16367308 Expenses Profit Before Tax (PBT) 2154269 2655248
3122919
4283246
5754770 100
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Tax @ 30% Profit After Tax (PAT) Dividend Total General Reserve Balance credited to b/s
646281 1507988 131480 1376508 0 1376508
796574 1858674 131480 1727194 200000 1527194
936876 2186043 131480 2054563 200000 1854563
1284974 2998272 131480 2866792 200000 2666792
1726431 4028339 131480 3896859 200000 3696859
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Cash Flow
Operating Balance of Profit & Loss Account Opening Balance of P&L A/c Less: Closing Balance of P&L A/c Add: Noncash items General Reserves Provision for taxes Interest on Loan Proposed Dividend Depreciation Preliminary Expenses w/off Changes in Working Capital Stock of Raw-Materials Stock of Finished Goods Debtors Creditors Less: Income tax paid Net cash flow from Operating Activity [A] Cash flow from Investing Activity Purchase of Machineries 0 646281 1200000 131480 821850 870060 5046179 200000 796574 960000 131480 821850 870060 3930649 200000 936876 720000 131480 821850 870060 4007636 200000 1284974 480000 131480 821850 870060 4600593 200000 1726431 240000 131480 821850 870060 5019888 1 0 1376508 2 1376508 1527194 -150686 3 1858674 2186043 -327369 4 2186043 2998272 -812229 5 2998272 4028339 -1030067
-830000 -367074 -264109 239183 -646281
-207716 -18636 -30127 50 -796574
386306 -24290 -22680 863 -936876
-59672 -21000 -22680 30767
-101629 -43000 -44756 37092
-1284974 -1726431
3177898
2877646
3410959
3243034 3141164
-1080000
0
0
0
0
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Purchase of Land Purchase of Building Purchase of Furniture Purchase of Other assets Preliminary Expenses Net Cash flow from Investing Activity
-9897200 -6128000 -384500 -86000 -4350300 -21926000
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Cash Flow from Financing Activities Share capital Loan Less: Repayment of loan Interest on loan Dividend Net Cash Flow from Financing Activities [C] Total [A]++[C] Opening Balance of Cash Closing Balance of Cash
13148000 10000000 -2000000 -1200000 0 19948000
0 0 -2000000 -960000 -131480 -3091480
0 0 -2000000 -720000 -131480 -2851480
0 0 2000000 -480000 -131480 2611480
0 0 -2000000 -240000 -131480 -2371480
1199898 0 1199898
-213834 1199898 986064
559479 986064 1545543
631554 1545543 2177097
769684 2177097 2946781
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Cost Sheet
Particulars Total Raw material consumed Carriage Inward Direct labour Bonus to Direct Labour Direct Expenses Prime cost Factory o/h Work cost Administration o/h Cost of Production 1 7488262 374413 144000 12000 10000 8028675 1637000 9665675 1944650 2 8112284 405614 144000 12000 12000 8685898 1766000 10451898 1959850 3 8736306 436815 158400 13200 15000 9359721 2170000 11529721 1989850 4 9360328 468016 158400 13200 17000 10016944 2274000 12290944 2019850 5 10608371 530419 174240 14520 20000 11347550 2401400 13748950 2175550
11610325
12411748
13519571
14310794
15924500 104
K.S. SCHOOL OF BUSINESS MANAGEMENT Add: Op. stock of 0 367074 Finished Goods
385710
410000
431000
Less: Closing stock Cost of sale Selling & Distribution O/h Cost of Goods Sold
367074 11243251
385710 12393112
410000 13495281
431000 14289794
474000 15881500
1490500
2012500
2147500
1885500
1952950
12733751
14405612
15642781
16175294
17834450
Profit Sales
4324329 17058080
4598308 19003920
4825979 20468760
5758306 21933600
6989830 24824280
Sales Budget
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Particulars Opening stock Production(unit) Closing Stock Sales
1(60%) 0 2704320 80000 2624320
2(65%) 80000 2929680 86000 2923680
3(70%) 86000 3155040 92000 3149040
4(75%) 92000 3380400 98000 3374400
5(85%) 98000 3831120 110000 3819120
Job-Work Sales
Year Job work (50% of sales) Cash (30%) Credit( 20%) Total 2624320 Rs. Per 1 Strip 1312160 1312160 6 7 7872960 9185120 7872960 6429584 2755536 17058080 17058080
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Year Job work (50% of sales) Cash (30%) Credit (20%) Total
Rs. Per 2 Strip 1461840 1461840 2923680 6 7 8771040 10232880 8771040 7163016 3069864 19003920 19003920
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
Rs. Per 3 Strip 1574520 1574520 3149040 6 7 9447120 11021640 9447120 7715148 3306492 20468760 20468760
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
Rs. Per 4 Strip 1687200 1687200 6 7 10123200 11810400 10123200 8267280 3543120 21933600 21933600 Rs. Per 5 Strip 1909560 1909560 6 7 11457360 13366920 11457360 9356844 4010076 24824280 24824280
Year Job work(50% of sales) Cash(30%) Credit(20%) Total
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R. M. Consumed
Particulars Opening Stock Purchase Closing Stock Raw Material consumed
1 0 8318262 830000 7488262
2 830000 8320000 1037716 8112284
3 1037716 8350000 651410 8736306
4 651410 9420000 711082 9360328
5 711082 10710000 812711 10608371
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SALARY STRUCTURE
Particulars Salary Per Annum 36000 No. of Employees 4 1 2 3 4 5
Direct Labour Factory Overheads: Manager Executive Technichian Human Resource Department: Manager Executive Quality Control Department: Manager Finance Department: Manager Accountant Administration Department:
144000
144000
158400
158400
174240
156000 96000 84000
1 1 1
156000 96000 84000 336000
156000 96000 84000 336000
156000 96000 84000 336000
156000 96000 84000 336000
171600 105600 92400 369600
144000 84000
1 1
144000 84000
144000 84000
144000 84000
144000 84000
158400 92400
216000
1
216000
216000
216000
216000
237600
216000 108000
1 1
216000 108000
216000 108000
216000 108000
216000 108000
237600 118800
Clerks 60000 2 120000 Peons 15000 2 30000 Security Guards 15000 2 30000 K.S. SCHOOL OF BUSINESS MANAGEMENT 948000 Selling & Distribution:
120000 30000 30000 948000
120000 30000 30000 948000
120000 132000 30000 33000 30000 33000 109 948000 1042800
Manager Area Manager Sales Exeutives Business Development Executive
252000 108000 84000 150000
1 2 5 1
252000 216000 420000 150000
252000 216000 420000 150000
252000 216000 420000 150000
252000 216000 420000 150000
277200 237600 462000 165000
1038000 1038000 1038000 1038000 1141800
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Calculation of Bonus
Particulars Bonus per Annum 3000 No. of Employees 4 1 2 3 4 5
Direct Labour Factory Overheads: Manager Executive Technichian Human Resource Department: Manager Executive Quality Control Department: Manager Finance Department: Manager Accountant Administration
12000
12000
13200
13200
14520
13000 8000 7000
1 1 1
13000 8000 7000 28000
13000 8000 7000 28000
13000 8000 7000 28000
13000 8000 7000 28000
14300 8800 7700 30800
12000 7000
1 1
12000 7000
12000 7000
12000 7000
12000 7000
13200 7700
18000
1
18000
18000
18000
18000
19800
18000 9000
1 1
18000 9000
18000 9000
19800 9900
19800 9900
21780 10890
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Department: Clerks Peons Security Guards 5000 1250 1250 2 2 2 10000 2500 2500 79000 10000 2500 2500 79000 11000 2750 2750 83200 11000 2750 2750 83200 12100 3024 3024 91518
Selling & Distribution: Manager Area Manager Sales Exeutives Business Development Executive 21000 9000 7000 12500 1 2 5 1 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 21000 18000 35000 12500 86500 23100 19800 38500 13750 95150
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Factory Overheads
Particulars Power consumption Repairs & Maintenances Depreciation on Machineries Salary Bonus Total 1 1075000 36000 162000 336000 28000 1637000 2 1200000 40000 162000 336000 28000 1766000 3 1600000 44000 162000 336000 28000 4 1700000 48000 162000 336000 28000 5 1775000 64000 162000 369600 30800 2401400
2170000 2274000
Administrative Overheads
Particulars Municipal tax 1 45000 2 50000 3 55000 4 60000 5 70000 113
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Depreciation Salary Bonus Telephone Printing Power Total
659850 948000 79000 5000 20000 187800 1944650
659850 948000 79000 7000 22000 194000
659850 948000 79000 10000 26000 212000
659850 948000 79000 14000 34000 225000
659850 1042800 86900 16000 40000 260000 2175550
1959850 1989850 2019850
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Selling Overheads
Particulars Transportation Expenses Salary Bonus Telephone Expenses Advertisement Expenses Total 1 360000 1038000 86500 6000 0 1490500 2 380000 1038000 86500 8000 500000 3 410000 1038000 86500 13000 600000 4 445000 1038000 86500 16000 300000 5 495000 1141800 95150 21000 200000 1952950
2012500 2147500 1885500
DEPRECIATION
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Depreciation on Machineries (at 15%)
Particulars Opening Balance Depreciation Closing Balance 1 1080000 162000 918000 2 918000 162000 756000 3 756000 162000 594000 4 594000 162000 432000 5 432000 162000 270000
Depreciation on Building (at 10%)
Particulars Opening Balance Depreciatio n Closing Balance 1 6128000 612800 5515200 2 551520 0 612800 490240 0 3 490240 0 612800 428960 0 4 4289600 612800 3676800 5 367680 0 612800 306400 0
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Depreciation on Other Assets (at 10%)
Particulars Opening Balance Depreciation Closing Balance 1 86000 8600 77400 2 77400 8600 68800 3 68800 8600 60200 4 60200 8600 51600 5 51600 8600 43000
Depreciation on Furniture (at 10%)
Particulars Opening Balance Depreciation Closing Balance 1 384500 38450 346050 2 346050 38450 307600 3 307600 38450 269150 4 269150 38450 230700 5 230700 38450 192250
Total Depreciation
Particulars Total Depreciation 1 821850 2 821850 3 821850 4 821850 5 821850
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LOAN STATEMENT
Year 1 2 3 4 5 Loan amt. 10000000 8000000 6000000 4000000 2000000 Interest Loan Remaining Total Amount Amount Amount Payable Payable 1200000 2000000 8000000 3200000 960000 720000 480000 240000 2000000 2000000 2000000 2000000 6000000 4000000 2000000 0 2960000 2720000 2480000 2240000
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CALCULATION OF PAY-BACK PERIOD
Year PAT Depreciation 1 1507988 821850 2 1858674 821850 3 2186043 821850 4 2998272 821850 5 4028339 821850 6 5275000 821850 7 7350000 821850 8 7578000 821850 Preliminary w/off 870060 870060 870060 870060 870060 0 0 0 CFAT 3199898 3550584 3877953 4690182 5720249 6096850 8171850 8399850 C.CFAT 3199898 6750482 10628435 15318617 21038866 27135716 35307566 43707416
Payback Period:- 5 years and 5.14 months
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CALCULATION OF DISCOUNTED PAYBACK PERIOD
Year 1 2 3 4 5 6 7 8 CFAT 3199898 3550584 3877953 4690182 5720249 6096850 8171850 8399850 P.V. Factor @10% Amount Cumulative 0.909 2908707 2397758 0.826 2932782 5330540 0.751 2912343 8242883 0.683 3203394 11446277 0.621 3552275 14998552 0.564 3438623 18437175 0.513 4192159 22629334 0.467 3922730 26552064
[Cost of capital = Cost of debt + Cost of equit = [I (1-t) + Dividend paid/Total share capital]*100 = 0.12(1-0.3) + 131480/13148000*10 = [0.084 + 0.01]*100 = 0.094*100
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= 9.4% ~ 10% Discounted Pay-back Period: 7 years and 1.58 months]
Net Present Value
P.V. factor Year Cash flow @10% 1 3199898 0.909 2908707 2908707 2 3550584 0.826 2932782 5841489 3 3877953 0.751 2912343 8753832 4 4690182 0.683 3203394 11957226 -19988949 0.57 11393701 23350927 Less: Cost of Project 23148000 P.V. of cash inflow 202927
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Internal Rate of Return
Year 1 2 3 4 -----Year 1 2 3 4 ----Cash flow 3199898 3550584 3877953 4690182 19988949 Cash flow 3199898 3550584 3877953 4690182 19988949 P.V. factor @10% 0.909 0.826 0.751 0.683 0.57 P.V. factor @12% 0.893 0.797 0.712 0.636 0.51 2857509 2829815 2761103 2982956 2908707 5738522 8499625 11482581
2908707 2908707 2932782 5841489 2912343 8753832 3203394 11957226 11393701 23350927
10194364 21676945
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= 10% + (23350927-23148000) * 2% (23350927-21676945) =10.24%
We are not getting NPV & IRR in 5 years so we have taken accumulated cash flow of 5,6,7 year & we take average of P.V factor 5,6,7 year.
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RATIO ANALYSIS
Particulars (1) Current ratio = C.A. C.L. (2) liquid ratio = liquid assets Liquid liab. 3.94:1 3.45:1 5.01:1 6.25:1 7.58:1 7.17:1 7.29:1 7.86:1 9.09:1 10.5:1 1st year 2nd year 3rd year 4th year 5th year
(3) Net profit = N. PAT*100 Sales 16.41% 18.16% 19.83% 25.38% 30.13%
(4)
Return on share holders fund
13.65%
15.15%
16.00%
19.28%
22.83%
= NPAT*100 Sha. Holders’ Fund
(5) Debt equity ratio = long term liab. Sha. Hold.’s fund 0.72:1 0.48:1 0.29:1 0.12:1 0
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(6) stock turnover ratio = C.O.G.S. Avg. stock
34.68:1
38.27:1
39.31:1
38.46:1
39.41:1
(7) Debtors ratio = (drs+B/r)360 Cr.sales 30days 30days 30days 30days 30days
(8) Creditors ratio = (crs+B/P)360 Cr. Pur. 30days 30days 30days 30days 30days
(9) FA turn over ratio = sales FA
0.54times
0.64time s
0.72time s
0.82times
0.99times
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SWOT ANALYSIS
STREGNTH
THREAT
SWOT
OPPORTUNITY
WEAKNESS
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(1)
STRENGTH
It is an inherent capacity of the organization which it can use to gain strategic advantage over its competitors. Strength of our company can be identified as under: (a) The labour is easily and cheaply available from the nearby villages. For worker no particular skill or any formal training is required. (b) As our plant is near to the National Highway 8, we will have better transportation facility (c) Our plant is far from the town and other residential area so it would not cause any harm to the population.
(2)
WEAKNESS
It is an inherent limitation or constraint which may inhibit the growth of an organization.
(a) At initial stage the medicine manufacturing requires a
huge amount of investment. That is why at initial stage we have purchased small machineries.
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(3)
OPPORTUNITY
An opportunity is a favorable condition in the organization?s environment which enables it to strengthen its position. Now-a-days Gujarat is becoming co. are coming and overall economy of towards development. Many people Gujarat from the other states so there medicines. industrial hub. Many Gujarat is in direction are migrated in the is a huge demand for
(4)
THREAT
A threat is an unfavorable condition in the organization?s environment which causes a risk for, or damage to, the organization?s position. (a) Being a high profitable business, there may be possibility of entry of a new company to earn profit which may divide the market share. (b) The existing firm may adopt new rigorous promotional activity which may create some problem to capture the market.
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CONCLUSION
By doing research, we come to the conclusion that considering the conditions and circumstances, the project is definitely viable.
This task has provided us an opportunity to play a role as an entrepreneur, we are confident that it will help us in our career in future. We are thankful to the supporters who have contributed somewhere and somewhat to our project. Thanks goes to not only to the FAMYCARE PHARMACEUTICALS which we visited for better idea about the product and production but also to the faculty guide who guided us at any time without fail and provided us an opportunity to learn so much about practical aspect of corporate world.
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BIBLIOGRAPHY
? Marketing management - Philip Kotler
? Finance management
- I. M. Pandey, Khan & Jain
WEBOGRAPHY
? ? ? ?
www.google.com www.pharmapedia.com www.zamanzar.com www.99acres.com
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