An Organizational Study at Sangrose Laboratories Pvt.

Ltd

AN ORGANIZATIONAL STUDY

AT

SANGROSE LABORATORIES PVT.LTD

Submitted to Mahatma Gandhi University in partial fulfillment of the requirements

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

VINEETHA DANIEL

Reg.No:

Under the guidance of

Prof. TINTU JOSEPH (Faculty guide)

DEPARTMENT OF MANAGEMENT STUDIES

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES,

TIRUVALLA

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES

TIRUVALLA

CERTIFICATE

This is to certify that this report, based on the organisation study conducted by
VINEETHA DANIEL, second semester MBA student of our college for 4
weeks starting from 3rd April 2017 at SANGROSE LABORATORIES pvt. Ltd
Mavelikkara, is a bonafide record submitted in partial fulfillment of the
requirements for the degree of Master of Business Administration of
Mahatma Gandhi University, Kottayam.

Prof. TINTU JOSEPH Prof. LIGO KOSHY

{Faculty guide} Head of the department

Rev. Fr PRADEEP VAZHATHARAMALAYIL Signature of the External

Principal Examiner

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

DECLARATION

I,AMAL S BABU, student of Sree Narayana Guru Institiute Of Managment Studies

hereby declare that this report titled “Organisational Study at SANGROSE
LABORATORIES pvt. Ltd” has been carried out by me during the academic year 2017-
2019, under the guidance of Prof. SARAVANAN R, Principal of Sree Narayana Guru
Institiute Of Managment Studies.

I also hereby declare that this project report has not been submitted to any other
University or Institute for the award of any degree or diploma.

Place:K.G.Chavadi

Date: AMAL.S.BABU

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

ACKNOWLEDGEMENT

In preparing this report I have been fortunate enough to get support from number of people to
whom shall remain grateful.

First of all,I thank “Almighty God” for giving me strength and ability to complete the study
successful and make this report on time.

I am extremely thankful to Principal Fr.Pradeep, MACFAST Tiruvalla for extending all

facilities of this project.

I would like to express my thanks to Mr.Lijo Koshy, Head Of The Department, MACFAST
,Tiruvalla for providing the required facilities for completing the project work.

I especially grateful to Mrs Tintu Joseph , faculty guide, Department of Management Studies
MACFST for valuable suggestions and guidance.

With immense pleasure, I ensure my deep sense of gratitude to the Managing Director and all
other members in the Sangrose laboratories pvt.ltd ,Who helped me during my project period.

I would like to express my special thanks to all employees at different departments in

Sangrose laboratories pvt.ltd and all other well-wishers who helped me a lot in this project
work by way the of their great guidance and support.

AMAL S BABU

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

CONTENTS

CHAPTER TITLE PAGE

NO:
CHAPTER 1 INTRODUCTION 7
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY OF THE STUDY
DURATION OF THE STUDY
LIMITATION OF THE STUDY

CHAPTER 2 INDUSTRY PROFILE 12

CHAPTER 3 COMPANY PROFILE 20
CHAPTER 4 PRODUCT PROFILE 30
CHAPTER 5 DEPARTMENTAL PROFILE 37-65

PRODUCTION DEPARTMENT
HUMAN RESOURCE DEPARTMENT
FINANCE DEPATMENT
MARKETING DEPARTMENT
QUALITY CONTROL DEPARTMENT
MAINTENANCE & ENGINEERING DEPARTMENT
PURCHASE & STORES DEPARTMENT
RESEARCH & DEVELOPMENT DEPARTMENT
DESIGN & DEVELOPMENT DEPARTMENT

CHAPTER 6 ANALYSIS 67
CHAPTER 7 FINDINGS, SUGGESTIONS AND 74-76
CONCLUSION, BIBLIOGRAPHY

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

CHAPTER - 1

INTRODUCTION

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

1.1 INTRODUCTION

Organizational study is a direct investigation about the functions and activities

carried out in an organization .An organization study helps us to know in general
about an organization and in particular about it’s different functional areas.
SANGROSE LABORATORIES PVT.LTD is a pharmaceutical industry founded in
1987 by Mr.C.K Alexander who is an entrepreneur and also a research chemist. His
vision was to establish his company as a private limited company under the Indian
Companies Act,1956. The company is a registered small scale industry with the
main objective of manufacturing drugs and is located in kochalummod industrial
estate is in Alappuzha district.

SANGROSE LABORATORIES PVT. LTD is the only company in Kerala

manufacturing CLOFAZIMINE and is the 3rd in India. The company plays an
important role in the National Leprosy Education Program (NLEP) introduced by
the Govt. of India under the aid of W.H.O. In industry profile a detail discussion
about the pharmaceutical industry, its advantages in India, growth scenario, etc and
in company profile it consist of background of the company, nature of the business,
vision and mission, quality policy, product profile, area of operation, ownership
pattern , competitors information, achievements, work flow model.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

1.2 OBJECTIVES OF THE STUDY

 To compare theoretical knowledge with actual practices.

 To understand the various departmental functions that ensures smooth running
of the organization.
 To know the various stages of manufacturing process.
 To undertake the SWOT of the company and to give suggestions if any.
 To interact with manager of various levels of the organization hierarchy as well
as the workers at work place.
 To acquire knowledge about managerial aspects of SANGROSE
LABORATORIES PVT.LTD

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

1.3 SCOPE OF THE STUDY

 Organizational study carried out mainly with an object of gaining practical

experience in organizations and to study various departments.
 It helps to make aware about the various operations in the organization.
 The study is mainly based on the details collected from each department.
 It provides a chance to see the practical constraints faced by the managers
while putting theory in to practice.

1 .4 METHODOLOGY OF THE STUDY

The methodology includes collection and observation of primary and

secondary data. The primary data was collected through personal interview and
discussion through management. And secondary data was obtained by the company
files, brochures, records and website.

There are two methods of data collection:

1. PRIMARY DATA

Primary data are those data that are collected directly through

 Informal Personal Interview:

The data was collected through informal personal interview with
managers, company officials and employees of the organization.

 Observation:
During the period of 30 days continues organization study the
observation of the general functioning of the organization was carried out.
And this was very much helpful to acquire information from the company.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

2. SECONDARY DATA:

In addition to primary data, secondary sources of data were also obtained for the
study from the following sources.

 Company website
 Annual report of the company
 Published documents of the company.

1.5 DURATION OF THE STUDY

The study entitled an organizational Study at Sangrose laboratories Pvt. Ltd

covers a period of One month on 3rd April 2017 to 29th April 2017.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

1.6 LIMITATION OF THE STUDY

 Environment was not conducive for the study.

 Time constraint - It was not possible to get an in-depth knowledge of each
and every work in the organization because of tight time of the selected
staffs.
 The company’s rules and regulations prevented the employees from
disclosing the confidential matters
 Researcher couldn’t get correct financial report of the company, hence the
financial position can’t be analyzed.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

CHAPTER-2

INDUSTRY PROFILE

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

2.1 INDUSTRY PROFILE

2.1 INDUSTRY

Industry is concerned with the extraction of raw materials from the nature
and the various other process of transforming these raw materials in to consumable
goods. It deals with the function of converting or transforming these materials
extracted from nature and to make them fit for human use or consumption. In brief,
industry deals with the production of goods of value.

2.2 SMALL SCALE INDUSTRY

Small is beautiful, so is small scale industry. It is significant segment of

Indian economy. The basic objectives underlying the development of small and
medium scale industries are the increase in the supply of manufactured goods, the
promotion of capital formation, the development of indigenous entrepreneurial skills
and the creation of employment opportunities. In addition they includes such socio
economic goals or the decentralization and dispersal of manufacturing activities
from the metropolitan and non -metropolitan and rural areas, reduction of regional
economic imbalances within a country and the entrepreneurial and a managerial
activities and skills as well as of technology throughout the country.

Small scale industry has an important role to play in the development of our
country. Every economy needs the existence, development and growth of small scale
enterprises .They play very important role and the main objectives of small scale
industry are;

 To generate large scale employment opportunities with relatively low capital

investments.
 To find solution for the unemployment of our country.
 To promote balanced regional development of the nation

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2.3 ADVANTAGES OF SMALL SCALE INDUSTRY

Small scale industry is one that is engaged in manufacturing, processing and

preservation of goods, rendering certain services and having comparatively less
amount of capital. The advantages are;

 They are capital light

 They are labour intensive
 They are skill light
 They are quick yielding

According to recent estimates, about 90%of the industrial units in USA and
France come under the small scale industries sector. The small scale industries in
India give employment to 107 lakh persons. The small scale industry is more
flexible.

2.4 PHARMACEUTICAL INDUSTRY:

Pharmacy is the art and science of preparing and dispensing medication and
the provision of drug related information to the public. The modern Indian
Pharmaceuticals industry is laid its foundations in the beginning of the previous of
century in 1901, a small factory known as the ‘BENGAL CHEMICAL AND
PHARMACEUTICAL WORKS’ was established in Calcutta. India took some steps
to strengthen its drugs and Pharmaceuticals field, after independence. Today India is
in position to meet 70% of the countries requirements of drugs and almost all the
demands for formulation.

2.5 INDIAN PHARMACEUTICAL INDUSTRY

Pharmaceutical Industry in India is one of the largest and most advanced

among the developing countries. It provides employment to millions and ensures
that essential drugs at affordable prices are available to the vast population of India.
Indian Pharmaceutical Industry has attained wide ranging capabilities in the complex
field of drug manufacture and technology. From simple pain killers to sophisticated

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

antibiotics and complex cardiac compounds, almost every type of drug is now made
indigenously

Indian Pharmaceutical Industry is playing a key role in promoting and

sustaining development in the vital field of medicines. Around 70% of the country's
demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,
tablets, capsules, orals and vaccines is met by Indian pharmaceutical industry. A
number of Indian pharmaceutical companies adhere to highest quality standards and
are approved by regulatory authorities in USA and UK.

The production value of the bulk drugs during the year 1997 -98 was 2623 and
that of Pharmaceutical formulations was Rs.12068 cores. The production of
Pharmaceuticals in India increased by 13.68% during the year 1997-1998 against the
previous year. The exports of during the year 1998-1999 were Rs. 49780 million.
From a meager Rs.46 core worth of Pharmaceuticals, drugs and fine chemicals
exports in 1980-1981, Pharmaceuticals exports has risen to approximately Rs.6152
cores , a rise of 11.91% against last year exports.

The Indian Pharmaceuticals industry today is in front rank of India’s science

based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. A lightly organized sector, the Indian Pharmaceutical
industry is estimated to be worth $4.5 billion, growing at about 8 to 9 percent
annually. It ranks very high in the third world, in terms of technology, quality and
range of medicines manufacturing.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading 250
Pharmaceutical companies control 70% of the market with market leader holding
nearly 7% of the market share. It is an extremely fragmented market with severe
price competition and Govt. price control.

Following the de-licensing of the Pharmaceutical industry, industrial licensing

for most of the Drugs and Pharmaceutical products has been done away.
Manufactures are free to produce any Drugs duly approved by control Authority.
Technically strong and totally self-reliant, the Pharmaceutical industry in India has

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

low costs of production, low R&D costs, innovative scientific manpower, strength of
national laboratories and an increasing balance of trade. The Pharmaceutical
industry, with its rich scientific talents and research capabilities, supported by
Intellectual Property Protection regime is well set to take all the international
market.

India holds the lion's share of the world's contract research business as activity
in the pharmacy market continues to explode in this region. Over 15 prominent
Contract Research Organizations (CROs) are now operating in India attracted by her
ability to offer efficient R&D on a low-cost basis. Thirty five per cent of business is
in the field of new drug discovery and the rest 65% of business is in the clinical
trials arena. India offers a huge cost advantage in the clinical trials domain compared
to Western countries. The cost of hiring a chemist in India is one-fifth of the cost of
hiring a chemist in the West.

2.6 Product Characterization

The pharmaceutical industry manufactures bulk substance pharmaceutical

intermediates and active ingredients which are further processed into finished
products.

a) Medicinal and Botanicals (SIC 2833)

Companies in the Medicinal and Botanicals industry category are primarily engaged
in;

1) Manufacturing bulk organic and inorganic medicinal chemicals and their

derivatives and

2) Processing (grading, grinding, and milling) bulk botanical drugs and herbs.

The industry is made up of establishments or facilities that manufacture

products of natural origin, hormonal products, and basic vitamins, as well as those
that isolate active medicinal principals such as alkaloids from botanical drugs and
herbs (OMB, 1987). These substances are used as active ingredients for the

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Pharmaceutical Preparations industry category. Companies often produce both

Medicinal and Botanicals and Pharmaceutical Preparations at the same facility.

b) Pharmaceutical Preparations (SIC 2834)

The Pharmaceutical Preparations industry category is made up of companies that

manufacture, fabricate, and process raw materials into pharmaceutical preparations
for human and veterinary uses. Finished products are sold in various dosage forms
including, for example, tablets, capsules, ointments, solutions, suspensions, and
powders. These are;

1) Preparations aimed for use mainly by dental, medical, or veterinary

professionals, and

2) Those aimed for use by patients and the general public (OMB, 1987). A more in
depth discussion of these finished products is provided in Section III.A

3) Pharmaceutical products also are often classified in terms of their availability to

the general public. Both prescription and over-the-counter (OTC) drugs are
available to the public. Prescription drugs can be purchased only with a
prescription from a licensed health care professional authorized to prescribe,
while OTC drugs may be purchased without a prescription. The FDA will
consider approving the switch of a drug from prescription to OTC when the
manufacturer presents evidence that consumers can self-diagnose the condition
for which the drug is approved, i.e., cold or seasonal allergy, and directions for
use can be written for the consumer (PHRMA, 1997).

c) In Vivo and In Vitro Diagnostic Substances (SIC 2835) and Biological

Products (SIC 2836)

In Vivo and In Vitro Diagnostic Substances industry category (SIC 2835)

includes facilities that manufacture in vivo (tested inside a living organism) and in
vitro (tested outside of a living organism) diagnostic substances. They produce
chemical, biological, and radioactive substances used in diagnosing and monitoring
health. The Biological Products industry category (SIC 2836) produces bacterial and

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virus vaccines, toxics, serums, plasmas, and other blood derivatives for human and
veterinary use, other than in vitro and in vivo diagnostic substances (OMB, 1987).

2.7 ADVANTAGES

 Competent workforce;

India has a pool of personnel with high managerial and technical competence
as also skilled workforce. It has an educated workforce and English is commonly
used. Professional services are easily available.

 Cost effective chemical synthesis;

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

beneficial chemical synthesis for various drug molecules is excellent. It provides a
wide variety of bulk drugs and exports sophisticated bulk drugs.

 Legal &financial framework:

India has a 53 year old democracy and hence has a solid legal framework and
strong financial market. There is already an established international industry and
business community.

 Information &technology:

It has a good network of world-class educational institutions and established

strengths in information technology.

 Globalization:

The country is committed to a free market economy and globalization.

Above all, it has a 70 million middle class market, which is continuously growing.

 Consolidation:

For the first time in many years, The International Pharmaceutical Industry is
finding great opportunities in India. The process of consolidation, which has become
a generalized phenomenon in the world pharmaceutical industry, has started taking
place in India.

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2.8 STEPS TO STRENGTHEN THE INDUSTRY

Indian companies to attain the right product mix for sustained future growth.
Core competencies will play an important role in determining the future of many
Indian Pharmaceutical companies post product patent regime after 2005. Indian
companies, in an effort to consolidate their position, will have to increasingly look at
merger and acquisitions options of their companies or products.

This would help them to offset loss of new product options, improve their
R&D efforts and improve distribution to penetrate markets. R&D has always taken
the backseats amongst Indian Pharmaceutical Industry. In order to stay competitive
in the future, Indian companies will have to refocus and invest heavily in R&D.

The Indian Pharmaceutical industry also needs to take advantages of the

recent advances in biotechnology .The future of the industry will be determined by
how well it markets its products to several regions and distributors risk, it forward
and backward integration capabilities, its consolidation through merger and
acquisition, co-marketing and licensing agreements.

Indian Pharmaceutical industry whose output exceeds $ 4.3 billion in fiscal

in 2000 one of the fastest growing markets in the world. In term of value, the
industry accounts for less than 2% of the global market. However, his industry is
expected to grow at rates nearly 200% higher than the global market in the near
future.

2.9 Top Players in the Market

1.Cipla

2.Dr.Reddy'sLaboratories

3. Ranbaxy Laboratories

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CHAPTER-3

COMPANY PROFILE

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

3.1 COMPANY PROFILE

Sangrose laboratories Pvt. Ltd was incorporated in the year 1987 as a private limited
company under Indian company act 1956. The company is registered as a small
scale industry with main object of manufacturing basic drugs is located industrial
estate in Kollakadavu in Vettiyar village, Mavelikara Taluk in the notified industrial
back ward district Alappuzha in Kerala state. The company has branch office in
Primal Nagar Mumbai. The commercial production of basic drug CLOFAZMINE
was started in the year 1989.

CLOFAZMINE is the drug recommended by World Health Organization

(W.H.O) for the treatment of leprosy under Multi Drug Therapy (M.D.T) and also
used for the treatment of T.B and AIDS. Company has received GMP certificate
from W.H.O equivalent to those who receive ISO 9002. Sangrose laboratories Pvt.
Ltd are the only company in Kerala manufacturing this drug and third in India the
other to being multinational completion is avoided by maintaining the quality of the
product. The company plays an important role in National Leprosy Educational
Program (NLEP) introduced by government of India under the aid WHO.

The Sangrose laboratories Pvt. Ltd is ideally located in Kollakadavu industrial estate
of Kerala in Alappuzha district the company is allegeable for all incentives offered
by the state government like subsidy, Sale tax exemption etc. The basic
Infrastructures required for the company is easily available at the industrial estate
and the company does not envisage any difficulty in availing them. The company
already has a low tension connection of 100KW. But the company intends to convert
it into a high tension connection of 250KW by while installing its own transformer.
The industrial estate has well connection internal broad with access to the main road.
The nearest railway station is just 5km and national highway is 15km away.

3.2 Capital Investment

Total investment in building plant and machinery is 20.2 cores of which

Rs. 60lakhs were invested in the year 93-95 for gelatin capsulation plant.

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3.3 Organization and management

Organization is the form human association which is a process clearly

democrating the authority, responsibility and coordination to achieve the object of
the firm. Organization structure the network relationship between various positions
of persons in the organization. Good organization structure help in making more
frequent detail adjustment in its arrangement.

A good organization provide means and medium through which a group of

people work together effectively for the achievement of a special task. More over it
defines the way of authority delighted which can minimize friction

Sangrose laboratories Pvt. Ltd was incorporated in 1987 under the company act
1956 the authorized share capital of the company is 24000 equity share of Rs. 100
each present directors of the company are Mr. Thomas Samuel and Mr. George
Mathew with Mr. C.K Alexander as the managing director. C.K. Alexander, the
managing director is at the power to make decision for smooth running of the
company. He formulates all process and rules and regulation. He also coordinate and
control the management function and fixes responsibility and limits of the
organization.

3.4 MANAGEMENT INFORMATION SYSTEM

Management information system is said to be an integrated use of procedures

and computer information to support operation management and decision-making function
in an organization it is known as MIS in sangrose. The department was known as
industrial engineering department when it was established in 1992. In 1995 the name was
changed to management information department.

One of the main functions of this department is to collect information for production
department on the form of daily reports. The information would be about actual
production absenteeism of workmen, break down of machines of any raw materials
shortage of any inertly problems. If any details through analyzing information that has
been collected this department prepares a weekly and monthly reports to be submitted to
directors. He will take further action make decision.

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3.5 MISSION AND VISION

MISSION:

The mission of Sangrose is to dedicate itself through the creation of innovative

medical products and services for the benefit of the medical community and human
health around the world.

VISION:

 Dedication towards Quality:

Sangrose is dedicated to achieve the highest level of quality in all of its

products.

 Environment for individual:

At Sangrose the self –esteem and dignity of an individual is upheld, it also

provides an open cultured environment for expression of views and ideas.

 Innovation :

Sangrose aims at creating an environment suitable for individuals to bring

out the skills to innovate which in turn help one to excel and a will to experiment.

 Teamwork:

Sangrose aims at creating a better sense of teamwork ,the ability to work

together, ability to direct individual accomplishment towards organizational
objective.
3.6 CORE VALUES

 C- Care for customer

 R-Respect for associates
 E-Excellent teamwork
 A-Always learning
 T- Trust mutually
 E-Ethical practice

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3.7 ACHIEVEMENTS & AWARD

 Awarded the 2nd prize in the safety awards 2010 by the government of kerala,
drugs and pharmaceuticals.

 Awarded as top- 1 Central Excise tax payer (private sector) 2008 by the
customers and Central Excise, government of India.

 Awarded the best Revenue Perfomance award, 2005-2006, by the Customers

and central Excise Government of India.

 Sangrose Laboratories has received GMP Certificate from WHO, equivalent

to ISO.

 Nominated the best small-scale industry of Alappuzha District consecutively

for 3 years and 4th in the state.

 Runner up for the management Excellency Award of Benchamans Institute of

Mnagement.

 Selected as one of the Best Entrepreneurs of the state.

 The firm has been closely associated with National Leprosy Eradication
program of Govt of India by being the supplier of Clofazimine

3.8 QUALITY POLICY

 The primary focus Sangrose’s activities are patients and consumers.

 To promote and uphold its image as marks of quality products.
 In all our activities we are committed to the highest ethical and moral
standards.
 Whenever we operate around the world we seek to understand and respect
people and culture and to behave as good corporate citizens.
 We promote an open and active corporate culture that respects individual
ability and team work.
 We care about the global environment.

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3.9 QUALITY PLEDGE

 We, the people of Sangrose Laboratories Pvt. Ltd. will create an enterprise
committed to quality. It is our policy to design manufacture and service our
products to provide level of products of quality and value that meets customer
needs.
 We will aim to generate customer’s enthusiasm through improvement in our
products and services. We are committed to excellence in the way we work
together within the organization as well as outside aimed at total customer
satisfaction.

3.10 OBJECTIVES OF THE COMPANY

 To manufacture, produce, refine process, formulate buy cell , import, export

or otherwise deal in basic drug pytho chemical, plant extracts, dyes pesticide
and there intermediate, laboratories and chemical used or capable of being
used in the pharmaceuticals, textiles, agriculture, fertilizers, petrochemicals or
any mixture deviates and compounds thereof.
 To manufactures produce, distribute, sell research, exports and deal in
Pharmaceuticals, drug, chemical, medicine preparation, dyes pesticides,
cosmetics, there intermediate including sophisticated item, oil, injection, orals,
syrups, tablets, capsule and in any such others forms of human as well as
animal use.
 To carry on the business of chemicals, druggists, importers and manufactures
of and dealers in pharmaceuticals medical chemical, pathological clinical
industrial and other preparations and articles compounds drugs and dealers
chemicals surgical and scientific apparatus and materials.

3.11 LOCATION OF SANGROSE LABORATORIES PVT.LTD.

 Sangrose is located in the Industrial estate, kollakadavu in Vettiyar Village,

Mavelikara Taluk in the notified industrial backward district Alleppy in 6.

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3.12 IMPORTANCE OF GOOD LOCATION

 The selection of an appropriate location enables the factory to operate

smoothly, efficiently and with the minimum cost. The location of the plant has
great effect on the success of failure of the operation at that plant. If the
selection of the site is not proper than all the money invested on the factory,
building, machinery and that their installation etc. Will go waste and the owner
of the factory will have to suffer a great loss. Therefore, before selecting a site
the owner must consider the technical, commercial and financial aspects and
then to select a suitable site that may provide maximum advertisement.
 The Sangrose Laboratories ideally located in Kollakadavu, Industrial Estate
,one of the oldest industrial Estates of Kerala in Alleppy District. The company
is allegeable for all incentives offered by the State Government like subsidy,
sales tax exemption etc. The basic infrastructure required for the company is
easily available at the Industrial Estate and the company does not envisage any
difficulty in availing them.
 The ideally located near the river Achenkoil .The quality and plenty of water at
reasonable depth is very good .The Industrial Estate has its own water supply
system. In additional to this the company has dug wells in the nearly private
land in the possession of the company. The water supply is also available to the
company.
 The company already has a low tension connection of 100 KV. But the
company intends to convert it in to a high tension connection of 250 KV by
installing its own transformers. The industrial Estate has well connection
internal road with access to the main roads. The nearest railway station is just
5 km and the National High way is 15 km away from the industrial Estate.

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3.13 FACTORS AFFECTING GOOD LOCATION

The location of a plant is determined by a number of factors. They are availability of

raw material

 Power & fuel

 Transportation
 Markets
 Labour
 Meteorological conditions & geography
 Banking
 Local taxes
 Water
 Momentum of costly start
 Personal start
 Political stability
 State assistance
 Waste disposal
 Commercial services
 Communication
 Attitude of local people
 Price of land or place

3.14 PLANT LAYOUT AND DESIGN

SANGROSE LABORATORIES PVT. LTD is fully equipped with plant and

machinery that are necessary for manufacturing 18 ton basic drugs per annum and
10 lakhs capsules per shift. All the machines and tools are of good quality and are in
the good working condition. The factory also has campus area for smooth working.

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3.15 PLANT LAYOUT

EFFLUENT PLANT NO. 1 PLANT NO. 2

TREETMENT
PLANT

W
O
R QA QC R&D
K
S
H SOFT CAPSULE DEPARTMENT
O
P

W
A MD’S GUEST ROOM
R CABIN
E
ADMINISTRAT
H OFFICE ION
O
U MARKTING FINANCE
S
E

CREAM& HARD
E PACKING
OILMENT GELATIN
N
T
R LIQUID& TABLET PACKING
A SYRUP SECTION
N
C
E

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

3.16 ORGANISATIONAL CHART

MANAGING DIRECTOR

Finance Purchase Production Department Quality Maintenance & R&D Marketing

Department and stores Control Engg. Department Department Department
department Department

Finance Purchase Bulk drug Capsulation Quality Control Maint. Egnr Chemist Market
manager. Department Manger Manager.
manager Department

Accountant Prodt. chmst Asst. Chmst. Workers Aistant ch. Sales ofsls.
Clerk Prdt. Chmist.

Lab assist.
Accounts Stores ast. Assistant Assistant
Clerk

Workers Lab asstant HR dept.

Design and
devp
department
P.R.O
Workers

Welfr ofcr.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

CHAPTER-4

PRODUCT PROFILE

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

PRODUCT PROFILE
1 .CLOFAZIMINE

Basic drug manufacturing for the treatment of leprosy as recommend by W.H.O.

under its multi drug therapy is also for the treatment for TB and AIDS.

2. In the treatment of Eczema, Dermatitis, Druritus & Psoriasis

 CLO-β

Clobetasol Propionate cream 0.05% w/w

 Highly effective in the treatment of Eczema, Dermatitis, Druritus & Non

scalp psoriasis.
 Safe and well tolerated.
 Ensures patient compliance.
 Offers better remission profile.
 CLOSAL

Clobetasol & Salicyclic Acid

 Rapid onset of action

 Rapid clearing of scaling, Pruritus and inflammation

Salicyclic Acid

 Softens Keratin, loosens cornified epithelium & desquamates the epidermis

Make the underlying layers more accessible to steroid.

 CLOGEN
Clobetasol & Gentamicin
 Arrest of growth of pathogenic agents
 Satisfactory results obtained in 97.5% cases
 Good relief of symptoms, excellent local and systematic tolerance
 Rapid healing of lesions.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

3. In the treatment of steroid Responsive Dermatoses

 EMSONE

Mometasone Furoate 5 Gms

 Highly effective in the treatment of Ecezma, Psoriasis, Atopic Dermatisis &

other Steroid Responsive Dermatoses
 Safety & Efficiency has been well established
 Benefit of once daily administration

4. In the treatment of primary and secondary skin infections

 µ-PRO (Mupirocin 2% ointment)

 Effective against a variety of superficial skin infections
 Effective against a wide range of GRAM +ve(including staphylococci,
streptococci) & moderately active against GRAM –ve bacteria
 Effective in the treatment of IMPETIGO
 Efficiency compared oral and other topical antibiotics
 Safe and well tolerated

5. To provide complete protection from sunlight

 Beta carotene containing Highcaro (HIC)

 Total protection from sunlight
 Offers uniform protection
 Prevents cellular damage

6. In the treatment of psoriasis

 ZEMEGA -3

Epa 180 mg, DHA 120 mg

 Ameliorates symptoms of psoriasis

 Significant reduction in itching, erythema and scaling

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

7. In the treatment of Hyper Pigmentation

 COJI CLEAN

Koji Acid and Alpha Lipoic Acid cream

Removes pigment spot faster ,effectively and maintains natural skin colour

 Kojic Acid:

Slows down melanin production by inhibiting tyrosinase

 Alpha Lipoic Acid

 Scavenges ROS
 Regenerates Vitamin A & C
 Prevents oxidative damage
 Prevents wrinkling of skin by inhibiting cross linking of protein with
macro molecules.

8. In the treatment of skin disease

 VITA- E 400
 Reduces formation of FR
 Prevents lipid peroxidation
 Maintains skin integrity
 Reduces trans epidermal water loss
 Strengthens skin barrier function

9. When the need is for an Anti –histamine

 ZENTIN – L

Levocetrizine 5 mg

 Faster onset of action

 Rapid therapeutic response
 Higher bio availability
 Higher affinity towards H1 receptor

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

10. In the treatment of fungal infections

 SANFLU-150

Fluconazole 150mg

 Enhanced bio availability

 Better absorption
 Easy to swallow
 Better patient confidence
 Masks odour
 Larger shelf life
 Tamper evidence
 Elegant appearance

 TERBINORM

(Terbinafine 250mg)

 Highly effective in dermatophytosis & Onychomycosis

 Low relapse rate
 Higher emission rate
 Available as 7x 4 caps

11. In treatment of dermatitis of thin skin

 HYDROSTER

(Hydrocortis one 1% cream)

 Purest hydrocortisone safe on face and thin skin

 Provides moisturisation
 Smoothen skin by filling up spaces between skin flakes

12. In Hyperkeratosis – Warts, corns & psoriasis

 Mild conditions – Akralic 3%

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

 Moderate conditions- Akralic 6%

 Severe conditions -Akralic 12%

13. To treat severe Recalcitrant Cystic Acne

 RETISO-20

Isotretinoin 20mg

 Dramatically reduces elevated sebum production ,comedogenesis and ductal

colonization of Psoriasis acnes
 High cure rates

14. In the treatment of skin disease of mixed Actiology

 GENCLOBEC

(Gentamicin, Clotrimazole, Beclomethasone cream)

 Arrests growth of pathogenic Agents

 Complete regression of symptoms
 Excellent local and systematic tolerance
 Improvement with satisfactory remission

15. In the treatment of Multi Bacillary Leprosy and Type-2 reaction

 CLOFROS

Clofazimine 50mg / 100mg softgels

 Exerts bacterial effect on

 Inhibits mycobacterial growth and binds preferentially to mycobacterial
DNA .
 Exerts anti inflammatory properties in controlling erythema ndusum
leprosum reactions

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

16. In the treatment of neurological Disorders

 VIT-AXON
 SOFT GELS
 Benfotiamine 100mg
 Methylcobalamin 500mg
 Alpha Lipoic Acid 100mg
 Vitamin C 75mg
 Vitamin B2 10mg
 Pyridoxine Hydrochoride 3mg
 Vitamin E Acelate 25mg
 Pantothenic Acid 50mg
 Zinc 15mg

These are targeting the local as well as national customers

1. NOVA MILLENNIUM PHARMA, CHENNAI
2. ABL BIO TECHNOLOGIES, CHENNAI
3. NOVEAU MEDICAM, CHENNAI
4. BENZOR PHARMA, COCHIN
5. HOUCHE REMEDYS, THRISSUR
6. ENKA HEALTHCARE DELHI

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

CHAPTER – 5

DEPARTMENTAL PROFILE

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

DEPARTMENTAL STUDY

FUNCTIONAL DEPARTMENTS IN SANGROSE LABORATORIES PVT LTD

At present there are mainly nine departments in the company. They are;

1. PRODUCTION DEPT
2. HUMAN RESOURCE DEPT
3. FINANCE DEPT
4. MARKETING DEPT
5. QUALITY CONTROL DEPT
6. MAINTENANCE & ENGINEERING DEPT
7. PURCHASE& STORES DEPT
8. RESEARCH & DEVELOPMENT DEPT
9. DESIGN & DEVELOPMENT DEPT

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.1 PRODUCTION DEPARTMENT

Production department

Bulk drug Capsulatn.

dept. dept.

Chemist Chemist

Assistant
chemist

Assistant
Lab Asst
chemist

Workers

Figure: 5.1

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

Production is the process by which conversion of raw materials and other inputs in to
finished products. Production management deals with a recognized part of almost every
company. It is the primary function of management. Production system consists of inputs
at one end and outputs are connected by a series of operations processors, storage and
inspections. The department responsible for the manufacturing or creation of a product.
The department includes Stores Department, Quality Control Department and Maintenance
Department.

5.1.1 Functions of Production Department

 The unit cost of the product should be estimated carefully and effort should be made
to stick to the cost standards.
 Setting of proper manufacturing schedules to ensure time lines

Optimum utilization of inputs of production like men, materials and machines.

5.1.2 Production in sangrose:

The sangrose Laboratories produce Basic Drugs and Capsules.

Basic drug

 CLOFAZIMINE

Capsules

 Vitamin A & D
 Clofazimine
 Black lumen seed oil
 Glovite
 Nifedipine
 Vitamin A Capsule U.S.P
 Vitamin E Capsule U.S.P

5.1.3 PRODUCTION REQUISITES

 Raw materials:

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

The main requisite of medicine processed here is chemical. In sangrose

laboratories Pvt Ltd . The most important raw material is aminco compound and it is
purchased from abroad.

 Power and Fuel:

In Sangrose, electricity is used as power and is required for working machines
and lightning facilities. For power supply, KSEB subtraction is very near.
 Water
The Company has dug wells in the nearby private land in the possession of the
company. In addition to this Industrial Estate has its own water supply system.
Production process in Sangrose Laboratories Pvt Ltd
Sangrose is a medicine manufacturing company. As it has got its own formulates the
production process is to be kept secret. The MD, who is the main chemist in the
production unit, is the key factor behind the formulation of the medicines.

RAW MATERIALS

MIXING

ENCAPSULATION

WASHING

DRYING

PACKING

DISPATCHING

Figure: 5.2

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.1.4 Effluent Treatment Procedure

 Raw Effluent:

The raw effluent being very little in quantity is collected in a rubber lined
concrete tank heated aerated to concentrate .when a sufficient quantity is obtained it
is to be sold to the consultants of the company for neutralizing the alkaline effluents
of other industries.

 Wash water:

The wash water from the production area is collected in a separate rubber
linked tank for treatment. The effluent is pumped in to a mixer cum flocculation tank
where liquor ammonia or lime is added for neutralizing. The dries mass is permitted
to be used as a land fill by the population in drums and kept sealed for incarnating
and it will be incinerated.
The clear overview from the location tank and the filter bed are pumped in to
an aeration tank where the clear liquid is generated and then passed in carbon filter
bed to absorb any remaining organic matters .The filtered liquid is collected in
hopper bottom secondary setting tank. From the secondary tank it is pumped in to
another creation tank and biomass is added .After sufficient creation the overflow
passed in to clarifier where any suspended biomass is collected in to be slugged put
and the clear water is directly passed 3.5 acres of agricultural land for irrigation as
permitted by the pollution control board.
There are above 100 people working in the company who are regularly
subjected to medical examination by qualified medical practitioner as per the
direction of the Drugs Controller of Kerala and so far no case of any contagious or
other diseases are reported.

 Production Planning and Control

Production planning and control are two main aspect of production

management. Production planning and control is an important department of the
company headed by senior manager, senior Assistant Manager and an Assistant

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

Manager are in charge of the day-to-day activities of the department. Production

planning and control is the planning and organization of the manufacturing process
and to co-ordinates the series of functions.

5.1.5 The elements and function of production planning and control are the
following:

 Routing:

Determining the route part for the movement of manufacturing lot through factory.
 Loading:

Refers to work load against a machine or a worker.

 Scheduling

Determining the time of starting and completion of various operation to be

performed.
 Dispatching:

Sets the productive activities in motion through release of orders and instruction
according to timings given in operation sheets, route card, loading schedules.
 Follow Up:

It ensures that the necessary instruction has been followed in their spirit and
necessary materials and tools are made available to the workers

INVENTORY CONROL SYSTEM:

Production manager is supposed to have the control over the cost of production by
reducing wastage of men and materials. So he has to make the best use of materials.
For these purpose , the economic lot sizes, economic order quantity, reorder levels
are determined . So that the problem of over and under stock materials may not arise.
This involves the physical and financial control of materials.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

Inventories may be classified into four classes; Raw materials, Suppliers,

Working in progress and Finished goods. Raw materials for Sangrose Laboratories
are chemicals which are held for processing and production working in progress is
the raw materials [chemicals] open which work has been perfomed. Finished goods
are CLOFAZIMINE, BASIC DRUG 1.P/B.P that are ready for sales .In Sangrose
Laboratories raw materials are stocked for about 3-6 months due to the seasonal
fluctuations. In sales, stores and spares are maintained to avoid sporadic breakdowns,
finished goods are marketed immediately because of the high demand for their
product.

Objective of Quality Control

Fundamental objectives of agod system of operating control of inventories to be able

to place an order at the right time from the right source price and right uantity

Techniques

Economic Order Quantity

It refers to as the size of the order that gives maximum economy in purchasing the
materials. Economic order uantity is the inventory level which minimize the total or
ordering and carrying cost.

Order Cost

Cost of placing an order and securing the suppliers. In Sangrose Laboratories the
order for chemical is 3% on every order.

Carrying Cost

Carrying cost refers to the cost of keeping the materials in the stores house keeping
the material in the stores house.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

MACHINARIES
The various types of machinery and equipment for production medicine. The plant
with machinery to produce 15000-20000 kgs is basic drug per annum and 20 lakh
capsules per shift.The plant basically the following machines;

 SS Reactor with condenser

 MS Rubber lined reactor.
 SS Reactor.
 MS glass lid reactor.
 SS centrifuge
 Rubber lined centrifuge
 Multimill [hammer]
 Soft capsulation machine
 Gelation cooking vessel
 Capsule washing equipment

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.2 HUMAN RESOURCE DEPARTMENT

The structure of Human Resource Department

HUMAN RESOURCE DEPARTMENT

PUBLIC RELATONS OFFICER

WELFARE OFFICER

Figure 5.2.

Human resource is the field of management that involves workers skill

effe?Mctively and making their jobs rewarding. In sangrose the Managing Director
in charge of the Human Resource Department. He draws a chart of the workers to be
deployed in each selection. The factory is run in to three shifts and there are
sufficient workers and no worker is continuously working. Nearly 180 people are
employed in the organization. In Sangrose, human relations are warm and cordial in
nature. The employer and the employee share a good mix of both formal and
informal relations. Sangrose implements various incentive schemes for the benefit of
the employees, thereby increasing their productivity.

Employees
Administration Staff – 35
Technical Staff - 45
Engineers -7
Marketing division -25
Workers - 72

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

The objectives of the HR department as follows.

 Individual development.
 Cordial relation between employer and employee.
 Effective moulding of human resource as contracted with physical response.
 Proper Fulfilment of the function of the department like recruitment, transfer.
 Training, Placements etc
 Good relation with trade union.

5.2.1 Functions

 Manpower planning
 Job Analysis
 Job Evaluation
 Recruitment Training and Development

5.2.2 Recruitment
Recruitment is the process of searching prospective employees and
stimulating them to apply for jobs in the organization. . The firm will call for
interview up to ten candidates
for one vacancy. From that they will select one candidate .if vacancy is more than 20
they will conduct written examination.

5.2.3 Sources of Recruitment in Sangrose

 Walk in interviews:

Sometimes the Sangrose Laboratories, advice the potential candidates for

walk in interviews. The suitable candidate will be selected for appointment.

 Advertisement:

In sangrose laboratories they used direct advertisement through news papers and
magazines. This method is advisable as they get an idea about the organization

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

 Employee Reference:

The employee reference will be considered while the emergency of workers needed in
the organization.

 Consult in:

The potential job seekers approach personally and consult Sangrose regarding the
jobs. The company selects the suitable candidate through selection process.

 From surrounding place:

The workers staying near the organization are given priority whenever they need
unskilled workers

5.2.4 Selection

Candidates who are technically, educationally and potentially qualified are selected.

5.2.5 Training and Development

Sangrose Laboratories offers a wide variety of developmental opportunities to

the employees of the organization. They are designed to promote both professional
and personal growth of workforce .The production cost can be reduced with the help
of training .accidents and wastage of raw materials can be also avoid.

5.2.6 Purpose of training

Training should be given for the purpose of the following:-

 To increase the productivity through some intellectual and methods.

 To reduce the waste
 To improve and maintain the quality of the product.
 It helps to work safely without any accidents.
Training is an unavoidable part. It is an effective tool of employees’
development.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

There are three types of training given to the employees. They are:
1. Induction training
2. External training
3. Internal training

1) Induction Training
The fresh employees and the transferred employees from other units must
undergo this training. A training schedule is prepared by the HR Department and
directs the employees to the various sections or departments for the training. The main
purpose of this training is to get acclimatize with the company.

2) External Training
External training is given to the permanent employees such as engineers,
officers and other executives. This training is conducted by the external agencies or
external organization.

3) Internal Training
This type of training is given to the technical personal working in the
various sections / divisions. These training consist of welding, market testing etc.
Management gives training for a period of six months for the fresh employees. After
the successful completion of training he/ she are recruited. On probation and after
that he/ she are appointed in regular service. This type of training is compulsory for
the company.
The other methods used by the company are

 Individual Instructions
 On the job training
 Group instructions
 Lecture method
 Demonstration method
 Written instructions
 Oral instructions conferences
 Meetings

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.2.7 Labour Welfare Facilities Provided by Sangrose

The concept of welfare implies the welfare of man ,his family and
status .i.e., health ,food ,clothing, housing ,medical facility, insurances, job security
,recreation ,etc labor welfare services include all welfare work ,statutory and non
statutory welfare facilities undertaken by the employees ,organization ,government
and trade unions.
The study reveals the following welfare facilities
 Free lunch and restaurant

For special working hours free lunch and refreshment are provided. Coffee is
provided twice a day

 Travelling Allowance
Travelling Allowance is given by the organization if the journey is for office
purpose.
 Bonus
In Sangrose Laboratories, bonus is paid more than the rules of payment of bonus.
 Insurance
All the employees are covered under E.S.I besides the employees are covered by a
special insurance policy of normal insurance company.
 Gratuity
Provides according to the rules of payment of Gratuity Act.
 Vehicle Facility
By this an employee contributes higher to the organization.

 Medical Facility
The organization arranged annual medical checkup for all employees.

 Provident Fund Scheme

It has the scheme where both the employer and employee contribute equally.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.2.8 Industrial Relation

Company can always keep good industrial relation in the organization. In the
company the employees and employer are in good terms. So there is an Atmosphere
of peace and justice.

1.Grievance procedure

It is the procedure for handling employee grievances. In the company the

employee grievance are handling through the following procedure

1. The injured party hands over the written complaint to the section officer directly
2. If the section officer is failed to solve the employ grievance he forward the complaint
to hr manager
3. The HR manager feels any difficulty to solve the problem the top management
directly entered to the grievance settlement

2. Trade union

In the organization there is no trade union

3. Discipline

The discipline actions are vented with the managing director. But the
disciplinary action and enquiries are conductedby the HR department the company is
very strictly on its disciplinary policies e.g. attendance if any Indisplinary activities
found, then the immediate superior will give the showcase notice to the concern
employee. And if it is a minor case, the employ asked to apologies. If it is a major
mistake then he will be suspended under pending enquiry and once the enquiry is
completed, the HR Manager will take action as per the findings of the enquiry.

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5.3.9 Time Office

This department concerned with registering time in and out of the employees.
Other activities relate to payment of wages, incentives, leaves etc. a register is kept for
different shifts. A leave book is maintained and it contains;

 Leave balance
 Leave credited
 Leave waited

The daily attendance reports for employees specify the following;

Shift, Date, Clock No: Hours worked, Scheduled Shift. The daily attendance
report is verified by the supervisors, shift engineer and shift head

Working Hours

First shift
Office and general shift : 9am-5.30pm
Tea break : 10.30am-10.45am
Lunch break : 1pm-1.30pm
Tea break : 3.15pm-3.30pm
Second shift : 5.30pm-2am
Break time : 7pm-7.15pm
Meals break : 9pm-9.30pm
Break time : 11.45pm-12am

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5.3 FINANCE DEPARTMENT

Structure of Finance Department

FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTANT

ACCOUNT CLERK

Figure 5.3

Finance may be defined as the art and science of managing money. In Sangrose, there is an
efficient finance department. Its main activities are to maintain the inflow and outflow of
funds, there by maintaining proper financial functioning. The Finance Manager, who is the
head of the department determines and allocates funds for the various departments and avoid
wastage of funds. Finance is the life blood of management; the financial management is
important function of management. How to procedure fund? How to utilize the fund & how
to make the profit? All are involved in it modern accounting as a dynamic and growing fields
has to monitor and analyze the rapidly changing business environment .It is to serve as a
vehicle for communicating the essential data about the financial actions of a business to its
management for making decisions. Accounting plays a critical role in the efficient use of
firm’s recourse

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

5.3.1 Objectives of financial accounting

A modern accounting system has to accomplish the following four objectives

 To identify financial events and transactional that occur in an organization

 To measure the value of these occurrences in terms of money.
 To organize the accumulated financial data into meaning full information.
 To analyze, interpret and communicate that information to a board range of persons
and groups, both within and outside the organization.
5.3.2 Functions

o Estimating capital requirements.

o Determining the composition of capital and the source of fund.
o Utilization of funds disposal of fund management of cash.
o Obtain finance from various financial institutions.
o Keeping track of credit.
o Building the capital of the company

5.3.3 Sources of funds

The major sources of fund are shareholders fund, which includes

shareholders reserves and surplus. Loan funds include secured and unsecured funds.
There was a loan of rarely 30 lakhs from KFC and about 15 lakhs from SBI.
Sangrose has received the Best Customer Award from State Bank of India. The
turnover for the company was 10crore in 2007 and 7crore in 2008 and10crore in
2009 and 12 core in 2010(expected).The main source of income are as sales and job
work(contract basis manufacturing).They were able to overcome the recession as
their main business deals with the sales of their patented product, CLOFAZIMINE.

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5.3.4 Need for working capital in sangrose laboratories

 Purchase of raw materials [ chemicals, spares and components ].

 To pay wages and salaries.
 To meet the day to day expenses and overhead cost such as power, fuel and office
expenses etc.
 To meet the selling expenditure like packing and advertising.
 To provide the credit facilities to the customer.
 To obtain the inventories.
Credit policy
Sangrose Laboratories do have any stands for credit granting. They have grantor for
selling their products who is turn sell the product . They sell on credit basis as well
as against advance payment.
Credit period
The credit period refers to the length of time consumers are allowed to pay their
purchase. Sangrose Laboratories give a credit period of 15 days ang grace period.
But for the outstation party it various from 60 days to 100 days.

5.4 MARKETING DEPARTMENT

Structure of Marketing Department

MARKETING DEPARTMENT

MARKETING MANAGER

SALES OFFICIALS

Figure 5.4

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

Marketing is the performance of business activities that direct the flow of goods and services
from producer to customer or user. Marketing is the total system of interacting business
activities designed to plan, price, promote and distribute want satisfying products and
services to present and potential customers.

Marketing is the performance by which seller find buyers and by which goods and
services move from producers to consumers. It is so important to an industry that about half
the cost of goods and services results from the marketing process. Sangrose is the market
leader in the southern region of the country; competition is quite strong as there are many
players at present, in this industry.

MARKETING DEPARTMENT OF THE COMPANY

The company has two types of product, bulk drug manufactured by the company is
exported to Switzerland with the help of a foreign company named ‘NOVATIS’. The
products are sold by sangrose in switzerland in the name of novatis. The capsules are
supplied to central purchasing committee of government of india through tender.
Black cumin seed oil capsules are also exporting to srilanka

In Sangrose Laboratories there are 25 brands of drug.some of the brands are

antibiotic, antifungal, antitoxin, vitamin E, antioxidants for sun protection,
deepickmentory agent for skin ageing. Every product is in introduction stage. Some of
the market leader’s ctively. They antifungal is zocken. The market share of the each
product category is less than .01 percent. The total selling force is 10 people. The
structure of the company is as field sales executives, regional manager and marketing
manager. The meeting of the company with the bosses and the subordinates is ones in
a month. The target is growing to 20-30 percents.

Marketing Strategy [Objective]

 Maximization sales over India.

 Project-oriented marketing.
 Providing more and more export.

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

 Share even at price, which is higher than competitors.

 Sustaining sangrose market.
 To make available the products to customer from nearby retailers.

5.4.1 Functions

a) Functions of exchange

 Buying
 Selling

b) Functions of physical selling

 Transportation
 Storage of warehousing

c) Facilitating functions

 Financing
 Pricing
 Risk bearing
 Advertising
 Standardization
 Sales promotion

In sangrose the bulk drug manufactured is exported to Swiss with the help of
foreign company named “Novartis”. The product sold by sangrose in Swiss is in the
name of Novartis. The capsules are supplied to central purchasing committee of
government of India through tender. Black Lumen seed oil capsules are also exported
to Srilanka. In sangrose there are 25 brands. Some are antibiotic, antitoxic, vitamin E,
Antioxidants. Positioning of some products is antifungal for soft gelatin capsules,
antioxidants for sun protection. Every product is in introduction stage. Some of the
market leader’s antifungal is socking. The market share of each product category is
less than 0.1%. The total selling force is 10 people. The meeting of the sales
executives and the bosses and the subordinates is once in a month. The target is
growing to 20-30%. The control has been exercised by the management. They

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An Organizational Study at Sangrose Laboratories Pvt. Ltd

motivate their salesman by incentives, recognition, awards etc. The company have
depots, stockiest and carry forward agents .The discount structure of the company is
20% to retailers and 10% stockiest. The collection system of the company is 60 days
time duration. Sangrose is engaged in following major marketing activities;

5.4.2 Marketing Research:

It is the study of problems, users of a product or service. It is also examines

the competitive products and the way in which they are sold and distributed. There are
many sources of market information.

5.4.3 Product Development:

The planners evaluate the extent and importance of idea field market needs,
through marketing research and buyers behavior and appraises the extent to which
present products fulfills. Company’s capabilities are valued as such as based on
scientific and technical knowledge of the concern for new products.

5.4.4 Distribution:

It is the movement of goods and services from producers to consumers. A

manufacturer must essentially establish a system that keeps products moving steadily
from factory to the consumers, such a system is called a marketing channel or
distribution channel.

5.4.5 Pricing

When setting the price of a product, sangrose start with their unit production
cost, the expense of making one unit of item. They add a percentage of this cost to
provide a profit for them.

5.4.6 Functions performed by marketing department are

 Analyzing markets thoroughly.

 Study consumer’s psychology and demand.
 Studying the conditions existing in competitive firms.
 Studying the market fluctuations.
 Planning of the advertisement campaign.

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5.5 QUALITY CONTROL DEPARTMENT

Structure of Quality Control Department

QUALITY CONTROL DEPARTMENT

ASST.CHEMIST

LAB ASSISTANT

CHEMIST

Figure 5.5

Every employee is expected to take responsibility for managing quality issues in order to
make sure that waste minimized and quality maximized. This is often referred to as quality
management and is part of the lean production methods used in Sangrose. The systematic
control of material, men, machines, and manufacturing conditions is Quality Control.

5.5.1 Functions;

 Identify the defective goods.

 Find the quality of mixing.
 Importance.
 It increases sales.
 Cost of manufacture could be reduced.
 Improves reputation.
 Insoaection cost reduces.
 Uniformity in manufacturer knowledge engineers.

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 Improvement in manufacturing and customer relation.

 Improvement in technical knowledge engineers data for process development of
manufacturing designs.
 Factors affecting Quality.
 Market research.
 Money.
 Management.
 Production methods and production design.

5.5.2 Quality Control Measures

 Raw Material Analysis

 In Process Analysis
 Finished Product analysis

The quality Control Laboratory functioning in the company has sophisticated

equipment like U.V. spectrophotometer, Disintegration testing equipment, Dissolution
Testing Equipment, Electronic PH meters, Digital Electronic balance etc.

5.5.3 Techniques

 Problem selection
 Brainstorming
 Data collection
 Cause and effect analysis
 Line graph

Quality Control is the statistical method of measuring deviation from standard quality
by recording sample tests on a chart which immediately shows when work is being
produced outside previously approved limits.

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5.6 MAINTENANCE AND ENGINEERING DEPARTMENT

Structure of Maintenance And Engineering Department

MAINTENANCE AND ENGINEERING DEPT.

MAINTENANCE EGINEER

WORKERS

Figure 5.6

Engineering and a mechanical Department is a support service department that

caters to the maintenance needs of the electrical, refrigeration and mechanical sections
of sangrose. The department always function in fine tune with the demands and trends
of modernization of the institute‘s Research and Development facilities. It is the place
where to minimize breakdowns and to keep the plant in good working conditions at
lowest possible cost. They are three types of maintenance of machines.

A). Preventive Maintenance

b). Breakdown Maintenance
c). Predictive Maintenance
a) Preventive maintenance
Checking the amount of lubricating oil, checking the various motor, wear & tear,
check in gears and other moving parts of the machines, working of various switches
and maintenance of various drive belts.
b) Break down maintenance
It depends on skillfulness of the worker the machine, the quickness with which the
faculty is discovered and the skill of the worker in repairing the machine.
c) Predictive maintenance
It is done by fitting gauges like devices that give an idea of the working state of
the machine. The maintenance may be either automatic as in the case of the relief

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value in the air compressor or would have to be done manually like changing the
lubricating oil within time specified by the manufacturer of the machine.

5.6.1 Functions

 Inspection
 Engineering
 Maintenance
 Clerical jobs
 Generation and distribution of power and other utilities
 Insurance administration
 Administration and supervision of labor force
 Providing plant protecting including fire protection
 Establishing and maintaining a suitable store for maintenance material
 Senatorial service

5.6.2 Mechanical Maintenance

The mechanical Maintenance Department or sectors is headed by the
Mechanical Maintenance Head. One supervisor and some helpers assist him. Usually
scheduled maintenance is carried out apart from weekly check up for machineries in
the processing department is carried out. In addition to this lathe and welding work is
also carried on. The cost of maintenance is calculated on the basis of maintenance
hours spend and the reports are submitted to the accounts department on a monthly
basis.

5.6.3 Electrical Maintenance

Electrical maintenance is headed by electrical scheduled maintenances is
carried out. The inspection and report of all electrical systems and within the factory
is carried out by the EMS.
 Description of Planned Preventive Maintenance Programme
 All equipments are cleaned thoroughly before and after production.
 At regular periods machines are reassembled and service like lubricating ids also
done.

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5.7 PURCHASE AND STORES DEPARTMENT

Structure Of Purchase And Stores Department

PURCHASE AND STORES DEPARTMENT

PURCHASE MANAGER

CLERK

STORES ASSISTANT

Figure 5.7

All item used in the plant of finished product are kept in the stores. It is divided
mainly into four sections,

 Chemical
 Packing materials
 Finished product
 General

5.7.1 Purchasing procedure

The purchase department receives a recursion of the amount required in the

plant. In case of item needed for production process through the stores department.
However, it usually makes estimation as to when referring to the stock ledge or that is
submitted to the manger every month need the requirement for local purchase that is
for those item that can be purchased locally. Local indent is made by the purchase
department and to the supplier.

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5.7.2 Receipt procedure

A purchase indent is made depending on the stock position. Inspection of the

purchased item for quality to quantity is made. After the items have been inspected
and verified they are stocked in bins or cupboards. In case, the item is not big in size
for large item. They are stocked on metallic racks.
Orders received are then entered in the Register followed by the stock receipt. This is
entered in the stores ledger. The particulars on the stores ledger are later entered in
the computer for their cases access in case the records have to be referred as a later
date

5.8 RESEARCH AND DEVELOPMENT DEPARTMENT

Structure Of Research And Development Department

RESEARCH & DEVELOPMENT DEPT.

CHEMIST

ASSISTANT CHEMIST

LAB ASSISTANT
Figure 5.8

The company has a research and development lab

functioning with all sophists Ted equipment. Their main object is to develop process
know how far life saving drugs. They also develop various combinations of those
drugs that can be produced at lower cost. Sangrose is pending a reasonable portion of
its turnover of R&D department. A qualified is constantly working with department to
development the competitive product which makes the sangrose an identifiable the
market. The team has already developed the challenging drugs

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5.8.1 FUTURE PLANS

Sangrose is expanding its product line constantly as a part; a new formulation division is on
the anvil, which can manufacture tablets liquid orals and gelatin capsules. This is unit is
proposed to commission this year. A subsidiary of sangrose drug chemicals Pvt. Ltd which
intense to manufacture in sangrose drug chemical Pvt. Ltd which intense to manufacture
basic drug. The plant is proposed to function next year following are the basic drugs, which
are planning to be manufactured in chemicals Pvt. Ltd.

1. Dapsone : BP/USP (Anti-leprosy)

2. Pyrazinamide : BP/USP (AntiTB)
3. Impiramine : BP/USP (Anti depression)
4. Ethambuttol : (Anti TB)
5. Nefedipine : BP/USP

5.9 DESIGN AND DEVELOPMENT DEPARTMENT

Structure Of Design And Development Department

DESIGN AND DEVELOPMENT DEPT

SENIOR DESIGNER

JUNIOR DESIGNER

STAFFS

Figure 5.9

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The company shall plan and control the design and development of product.
During the design and development planning the organization shall determine

1.To design and development stages

2.To review verification and validation are appropriate to each design an development

3. The responsibilities' and authorities for design and development. To identify list of
various inputs used for design and development of proposed product service project
such as of (whatever it is applicable)

 customer enquiry

 tender

 customer requirement review

 market survey

 market intelligence

 Catalogs/leaflets of similar products /services in the market.

 Data and competitors products/services

 Sample of similar products/service

 Physical parameters and working environment

 Estimated working/service life

 Maintains requirements

 Data on reliability of component and system

 Availability of material and subcontracted service

 Feedback data obtained through customer satisfaction

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CHAPTER-6

ANALYSIS

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SWOT ANALYSIS
A scan of the internal and external environment was an important part of the
strategic planning process. Environmental factors, internal to the industry are
classified as strengths or weakness and those external to the industry are classified as
opportunities or threats. Such an analysis of the strategic environment is referred as
SWOT Analysis. SWOT Analysis is an important aide for the management when it
comes from making critical decisions. SWOT is an acronym for strengths, weakness,
opportunity & threats. Threats & opportunities, represent the positive aspects, where
as the’ weakness &threats’ represent the negative aspects that the company should
try to overcome.
After a keen observation over the organization and the various department
of Sangrose the following strengths, weakness, opportunities & threats are known.
The basic objective of SWOT Analysis is to provide a frame work to reflect on the
firm ability to overcome barriers &avail of the opportunities emerging in the
environment. Indeed the dimensions of the internal capabilities have reliance is so far
as they relate to the environmental conditions. The followings are the some of the
strength, weakness, opportunities &threats of Sangrose pharmacy.

6.1 STRENGTH

 The factory is located at industrial area of the city and has all the infrastructure
facilities that require quick movements of raw material.
 Company has received GMP certificate from W.H.O equivalent to those who receive
ISO 9002.
 Only manufacturer of CLOFAZIMINE in Kerala.
 Long term relationship with the customers indicate the trust in their product.
 Production of life saving drugs.
 Products having good quality with actual quantity.
 Movements of men and material are easy.
 The company has good efficient lab technicians, chemist and workers.
 Foreign technology to suit indigenous condition.

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6.2 WEAKNESS

 No healthy communication between the departments

 Advertising expenses is very meager
 Their products are not available through local medical stores.
 The machineries are quiet costly and maintenance involves a huge expense.

6.3 OPPORTUNITIES

 Production can be in USP\BP STDS (tablets)

 Good scope in case the firm import machinery from abroad to increase the capacity
 Introducing new products to the market.
 Customers awareness over the production of sangrose had been increasing over years.
 There is a gradual growth in industries by which sangrose can get a good market.
 At preset has good raw materials source to enhance production.

6.4 THREATS

 Advertisement done by other players to capture the market

 Substitute product manufactured by other laboratories
 There is need of renovation of machinery
 Competitors pay their agents higher commission ,which creates threats to sangrose..

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PORTER’S FIVE FORCE ANALYSIS

6.5 INDUSTRY COMPETITION

 Most competitive industries with in the country with as many as 10000 different
players.
 Top player in the country has only 6% market share and top five has 18%.
 High growth prospects.
 Very low entry barriers.
 Fixed cost requirement is low and need for working capital is high.

6.6 BARGAINING POWER OF BUYERS

 End user of the product is different from the influencer (read doctor)
 Consumer has no choice but to buy what doctor says.
 Buyers are scattered and they as such does not wield much power in the pricing of
the product.

6.7 BARRIERS TO ENTRY

 Most easily accessible industries for an entrepreneur in India,

 Quality regulation by the government may put some hindrance for establishing new
manufacturing operation.
 Impending new patent regime will raise the barriers to entry.

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6.8 THREAT OF SUSTITUTES

 One of the great advantage of the pharma industry.

 Demand for pharma products.
 Key reasons for high competitiveness in the industry is that as an on go

6.9 POWER OF SUPPLIERS

 Volume benefits occur

 Available locally
 Switching cost low
 Suppliers can go for forward integration
 Raw material
 Cost constitute more than 50% of the total expenses

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Porter’s Five Force Model

POWER OF SUPPLIERS
 Volume benefits occur
 Available locally
 Switching cost low
 Suppliers can go for
forward integration
 Raw material.
 Cost constitute more than
50% of the total expenses

BARRIERS TO ENTRY INDUSTRY COMPETITION THREAT OF

SUBSTITUTES
*Most easily accessible Most competitive industries
industries for an with in the country with as
entrepreneur in India. many as 10000 different
players.
*One of the great
advantage of the pharma
*Quality regulation by the industry.
Top player in the country has
government may put only 6% market share and top
*Demand for pharma
some hindrance for five has 18%.
products.
establishing new
High growth prospects.
manufacturing operation. *Key reasons for high
Very low entry barriers. competitiveness in the
*Impending new patent industry is that as an on
Fixed cost requirement is low go
regime will raise the
and need for working capital
barriers to entry. is high.

BARGAINING POWER OF BUYERS

 End user of the product is

different from the influencer
(read doctor)
 Consumer has no choice but to
buy what doctor says.
 Buyers are scattered and they as
such does not wield much power
in the pricing of the product.

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CHAPTER-7

FINDINGS, SUGGESTIONS AND CONCLUSIONS

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7.1 FINDINGS

 SANGROSE LABORATORIES PVT. LTD is the only company in Kerala

manufacturing CLOFAZIMINE
 The company plays an important role in the National Leprosy Education Program
(NLEP) introduced by the Govt. of India under the aid of W.H.O.

 Company has received GMP certificate from W.H.O equivalent to those who receive
ISO 9002.
 Under utilization of existing plant capacity.
 There is high wastage of raw materials during the production process.
 Lack of healthy relationship between top management and the workers.

 More promotional activities is to be under taken to create customer awareness of the

product.
 There is no product diversity.
 The company is having a good administration.

 Relationship between top level management and workers must be strengthened.

 Product strategy should be designed such a way that it can capture the market share
and can be able to reduce wastage of over production.

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7.2 SUGGESTIONS

 According to the study of Sangrose, capacity utilization is very low. So the company
should try to utilize the capacity at an optimum level try to cost.
 High /low inventory level must be avoided in store.
 Department must obey the concept of EOQ strictly.
 Relationship between top management and workers must be strengthened.
 Firm should try to produce more other products.
 Strict supervision can be implemented to make the workers and the employees to do
their work properly and more efficiently.
 Product strategy should be designed in such a way that it can capture the market share
and can able to reduce wastage of over production.
 Distribution of free demonstration must be implemented to give opportunities to
customer to test the product personality. This strategy attracts more consumers and
creates customer awareness of the product.

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7.3 CONCLUSION

SANGROSE LABORATORIES is the only company manufacturing

CLOFAZIMINE in Kerala and third in India. This will create the high demand of
their products. The company is enjoying both the benefits of the small scale industry
and the company form of the organization. As it is incorporated as private limited
company and registered as a small scale industry. The company plays an important
role in the National Leprosy Education Program (NLEP) introduced by the
government of India under the aid of W.H.O. This will help the company certain
concessions for exporting.

SANGROSE LABORATORIES PVT. LTD is the capital intensive and

power oriented project in the small scale sector promoted with the objective of rural
development. It is the policy of SANGROSE LABORATORIES to supply medicines
conforming to quality standard specified by customers at agreed prices and to their
satisfaction

The promoters of the company have considered all the infrastructure facility
for starting up the required by the small-scale industry. Since the sales for
SANGROSE LABORATORIES become seasonal there is huge requirement of
working capital because the company depends on tenders invited by the Govt. of
India. This leads to heavy stocking of raw materials and finished goods at the
beginning of the financial year.

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BIBLIOGRAPHY

1. S.N Maheshwari, Financial Management

2. T. M Chhabra, Human Resources Management

3. [email protected],www.google.com

WEBSITE
www.sangrose.com

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