REPORT ON ORGANIZATION STUDY AT CIPLA PHARMCEUTICAL INDUSTRY

LIMITED

Submitted By
APOORVA.U
USN: 4MH19MBA11

Submitted To

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(SUBJECT CODE: 18MBAOS307)

Under the guidance of

PROF. DR.SHYAM.B.R
Associate Professor
Department of MBA
MITM

MAHARAJA INSTITUTE OF TECHNOLOGY MYSORE

(Affiliated to VTU, Belgaum, Approved by AICTE, New Delhi & Recognized by
Govt. of Karnataka)
Department of Management Sciences
Batch 2019-21
 DECLARATION

I am, APOORVA.U (USN: 4MH19MBA11) hereby declare that the Internship project
report entitled “CIPLA PHARMACEUTICAL INDUSTRIES LIMITED” is a record of
an original and independent work carried out by me under the guidance of prof
.DR.SHYAM.B.R, Associate Professor. Department of M.B.A. Maharaja Institute of
Technology Mysore.

I also declare that this Internship work is towards the partial fulfilment of the university
regulations for the award of degree of Master of Business Administration by Visvesvaraya
Technological University, Belgaum.

I have undergone an internship for a period of four weeks. I further declare that this
internship work is based on the original study undertaken by me and has not been submitted
for the award of any degree / recognition from some other college/institution.

Date:
Place: Apoorva.U

4MH19MBA11
 ACKNOWLEDGEMENT

I am APOORVA.U (USN: 4MH19MBA11) express my sincere gratitude to

my internal guide Prof. DR.SHYAM.B.R , Associate Professor, Department of
M.B.A, Maharaja Institute of Technology Mysore for his support and guidance in
carrying out this organization study successfully.

I thank Dr. B. G. NARESH KUMAR, Principal, MITM and Dr. RAJU

H.K., HOD & Professor, Department of MBA, MITM for their timely suggestions
and encouragement helped me to complete this internship.

Finally, I thank the All MBA Department Faculty members, Staff, My Friends,
My parents and all my well-wishers for helping and encouraging me in one or the
other way during the period of my organization study.

Place:

Date: Apoorva.U

4MH19MBA11
 TABLE OF CONTENTS

SL.NO CONTENTS PAGE

NO
1. Introduction about organization and industry

2. Organization profile

3. Mckensy’s 7S frame work and porter’s five force model

with special reference to organization under study

4. SWOT Analysis

5. Analysis of financial statement

6. Learning experience

7. Bibliography
 EXECUTIVE SUMMARY

The project gives a brief over view of the Industry profile. In order to function
efficiently and effectively every organization has a functional department. It’s
important to divide departments so that the work can be divided into units and
divisions the various departments of CIPLA PHARMACEUTICAL INDUSTRY are
Human Resource, Finance, Marketing, production, etc.
This report provides an introduction to pharmaceutical industry. And about the
products produced in the CIPLA COMPANY. And when the company coming to
exist, who are the person reason for the establishment of the CIPLA and how they
come step by step and what are the other branch of the company, about achievement
and award and the area cover by the company and vision mission and quality policy
etc.
The Mckensy’s 7S frame work which explain Hard And Soft of the company like
Strategy, Style, Structure, Staff, System, Skills and Shared value which are all tells
about the communication system , nature, work flow and value.
The study about the few essential of the CIPLA’S Strength, Weakness, Opportunity
Threats. The company having the good strength as technology and the excellent
clinical trials. And also about porters five force model which says the position of the
company.
The financial analysis which show the financial level of the company and strength
of the company. And finally what I get experience in the company
 CHAPTER-01

INTRODUCTION ABOUT ORGANIZATION AND

INDUSTRY
 CHAPTER-1

INTRODUCTION ABOUT ORGANIZATION AND INDUSTRY

INTRODUCTION ABOUT INTERNSHIP

The internship programmes aims to provide our students the opportunity to consolidate. Their
heretical foundation through practical experience .A major component of this experience is
the formation of a professional attitude. The students are expected to develop their
personality and capacity to adapt to, and handle, challenging situations in the real business
world. Through the internship program, the students should be able to acquire transferable
skills such as communication skills, interpersonal skills, and technical skills, teamwork skills,
management skills and problem-solving skills. Last but not least, the students can explore
their interest in future career development.

The internship program is designed to provide students engaged in a field experience with an
opportunity to share their insights, to explore the links between students’ academic
preparation and their field work, and to assist participants in developing and carrying out the
major research project which will serve to culminate their internship experience.

Internships are individualized and tailored to the needs and interests of each student in the
program. As part of the internship experience, students are expected to take an active role in
finding an appropriate internship for themselves. Many students pursue their own contacts
however; information is available on locating internship sites.

PURPOSE OF INTERNSHIP

 To enrich class room learning through exposure to related on-the-job experience.

 To assist in the determination of career goals.
 To provide experience in the field for those just entering the criminal justice field.
 To broaden that experience and the students perspective on criminal justice issues for
those who have prior experience in the criminal justice filed

OBJECTIVES OF THE INTERNSHIP

 The internship program is designed to help students maximize their
understanding of the criminal justice process through the integration of
theoretical classroom learning with practical learning experience.
 To understand the organization structure or hierarchy of the company
 To understand working of the various department
INDUSTRY PROFILE

HISTORY OF PHARMACEUTICAL INDUSTRY IN INDIA

The first Indian pharmaceutical company, Bengal Chemicals and Pharmaceutical Works,
which still exists today as one of 5 government-owned drug manufacturers, appeared in
Calcutta in 1930. These five public sector drug-manufacturing units under the Ministry of
Chemicals and Fertilizers are:

 Indian Drugs and Pharmaceutical Limited (IDPL),

 Hindustan Antibiotics Limited (HAL),
 Bengal Immunity Limited (BIL),
 Bengal Chemicals and Pharmaceutical Limited (BCPL) and
 Smith Stani Street Pharmaceutical Limited (SSPL).

In addition, there are a number of pharmaceutical manufacturing units under the control of
state governments such as Goa Antibiotics Ltd. and Karnataka Antibiotics Ltd. For the next
60 years, most of the drugs in India were imported by multinationals either in fully-
formulated or bulk form. There are 24,000 licensed pharmaceutical companies. Of the 465
bulk drugs used in India, approximately 425 are manufactured here. India has more drug
manufacturing facilities that have been approved by the U.S. Food and Drug Administration
than any country other than the US. Indian generics companies supply 84% of the AIDS
drugs that Doctors without Borders uses to treat 60,000 patients in more than 30 countries.

The Indian pharmaceutical industry currently tops the chart amongst India's science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. A highly organized sector, the Indian pharmaceutical industry is estimated to be
worth $ 6 billion, growing at about 10 per cent annually. It ranks very high amongst all the
third world countries, in terms of technology, quality and the vast range of medicines that are
manufactured. It ranges from simple headache pills to sophisticated antibiotics and complex
cardiac compounds; almost every type of medicine is now made in the Indian pharmaceutical
industry.

The Indian pharmaceutical sector has expanded drastically in the last two decades. The
Pharmaceutical industry in India is an extremely fragmented market with severe price
competition and government price control. The Pharmaceutical industry in India meets
around 90% of the country's demand for bulk drugs, drug intermediates, pharmaceutical
formulations, chemicals, tablets, capsules, orals and injectable. There are approximately 300
big and medium scale Pharmaceutical companies and about 8000 Small scale units, which
form the core of the pharmaceutical industry in India.

In future it will be a growth period of the Indian Pharmaceutical Industry. The growth is
expected to emerge from three major areas:

1. Contract research and development services.

2. Export led business of generics and bulk drugs and

3. Growth in specialty therapeutic areas in the domestic market.

The top ten pharmaceutical companies in Indian market are listed here under:

 Cipla ranks first with largest value growth rate of 18% and volume growth of
15.3%, with an annual value turnover of 2155crores and at the bottom of the table
is Aristo Pharmaceutical with 18.6% value growth rate and 20.1% volume growth
on an yearly turnover of 966crores.
 The other pharmaceutical companies which tops in top 10, in Indian
Pharmaceutical companies in India are

1 Cipla
2 Ranbaxy lab
3 Dr reddy’s labs
4 Sun pharma
5 Lupin ltd
6 Aurobindo pharma
7 Jubiliant pharma
8 Cadila health
9 Ipca labs
10 wockhardt

ADVANTAGE IN INDIA

 Competent workforce: India possesses a skill ful work force with high managerial
and technical competence.
 Cost-effective chemical synthesis: The track record for development, particularly in
the area of improved cost-beneficial chemical synthesis for various drug molecules is
excellent.
 Legal and Financial Framework: India is a democratic country with a solid legal
framework and strong financial markets. There is already an established international
industry and business community.
 Information and 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 constantly growing.

PHARMACEUTICAL INDUSTRY IN GLOBAL OVERVIEW

The global market for pharmaceuticals reached $1.2trillion in 2018, up $100billion from
2017, according to the global use of medicines report from the IQVIA institute for human
data science. Going forward, the global market will grow by4-5%CAGR, reaching
$1.5trillion.that rate is lower than the 6.3%CAGR of the 2014-2018 period.
For the US specifically, the 2018 spending was $485billion, up 5.2%over the previous year,
and the 2023 spending will be $625-$655, representing a 4-7%CAGR over the 5years period.
For several years now, IQVIA has been careful to distinguish “invoice” revenue (more or less
equivalent to list pricing) from “net” revenue –the revenue that actually accrues to the pharma
industry after rebates and deductions are factored in.US net revenue is expected to have risen
1.3%during 2018 and at a0-3% rate over the next 5 years

The worldwide pharmaceutical market was worth about$1.3trillion in 2019, the 10 largest
pharmaceutical companies accounted for about a third of that, worth a collective
$392.5billion in revenue.

The top 10 pharmaceutical companies, ranked by revenue

1. Pfizer-$51.75billion
2. Roche-$50billion
3. Novartis-$47.45billion
4. Merck-$46.84billion
5. GlaxoSmithKline-$43.54billion
6. Johnson &Johnson-$42.1 billion
7. AbbVie-$33.27 billion
8. Sanofi-$22.77 billion
9. Bristol-myers sqibb-$26.15 billion
10. AstraZeneca-$23.57 billion

GROWTH

As per a report prepared by the IPA, at its current rate of 7-8per cent CAGR, the Indian
pharmaceutical industry is expected to grow about USD 80-90billion by 2030.Indian
pharmaceutical industry can achieve a target of double-digit growth by 2030 through a host
of measures including regulatory support from government like increase in budgetary
allocation for promotion of innovation, with a double digit growth of 11-12 per cent, the
industry can grow about USD 65 billion by 2024 and about USD 120 to 130 billion by 2030.
Increased accessibility and affordability of healthcare, potential breakthroughs in next-
generation innovative products, strong growth in the US market, and increased growth in
large under penetrated markets such as Japan and China are some of the ways for the industry
to grow.

JOB OPPORTUNITY IN PHARMACEUTICAL INDUSTRY

The pharmaceutical -sales field, often called "recession-proof," is popular because it offers
excellent salary potential, great benefits, flexibility, and opportunity for growth. An aging
population, the shift away from clinical treatment of illnesses in hospitals, and the fact that
people seek a good quality of life as life expectancies continue to increase, these are some of
the factors spurring the growth of the pharmaceutical sector. The pharmaceutical industry is
among the largest, most stable, and fastest growing businesses in the entire world. The
industry has grown 300 per cent in the last decade, according to the Hay Group, a global
organizational and human-resources consulting firm. The pharmaceutical salesman’s job is
also seen as somewhat prestigious. "A pharmaceutical sales representative sells a
technologically advanced product to highly intelligent physicians in a very professional
environment," writes pharmaceutical sales recruiter Pat Riley, summing up the field's appeal.
Riley is author of several e-books on how to break into pharmaceutical sales.

Pharmaceutical employers frequently seek those with at least two years of sales experience,
preferably business-to-business sales. Previous jobs that offered strong sales-training
programs also are viewed favourably. A record of promotions can be a big plus. Of those
with no sales experience, candidates with a healthcare or clinical background may have an
edge. A strong record of accomplishments is also important other traits mentioned by experts
as helpful in landing a job in this field are being organized, goal-driven, creative, polished,
persuasive, motivated, energetic, trustworthy, willing to learn, aggressive, smart, ethical,
confident, ambitious, positive, self-starting, patient, persistent, a problem solver, a team
player who also performs well independently, a good time manager and prioritize, and a great
communicator. Additional desirable traits include good listening skills, integrity, negotiation
skills, and presentation skills. It's generally OK to be money-motivated. You should have
good physical stamina for the long hours and all the driving you will likely to do, as well as
carrying hefty sample and promotional cases. You may be required to travel and relocate. For
example Pfizer, which states on its sales careers page that the company seeks "college
graduates, experienced salespeople, junior military officers and anyone else with the intellect,
experience and stamina to take on the challenges of a fast-track career." The company further
seeks those with "the technical knowledge and business competencies we're looking for," as
well as those who are creative self-starters with an interest in medicine or science, and strong
interpersonal skills. Networking is a huge advantage in getting into pharmaceutical sales
because most firms advertise vacancies only when they are unable to fill them by word of
mouth.

The job opportunities include some of the following such as

 Marketing and sales-technical

 Manufacturing/production
 Environment management
 Research and development
 Quality control &quality assurance
 Regulatory affairs and IPR
 Clinical trials
 Testing laboratories-private


 CHAPTER-2

COMPANY PROFILE
COMPANY PROFILE

Khwaja Abdul Hamied (founder of cipla ltd)

HISTORY

Cipla was founded by Khwaja Abdul Hamied as ‘the chemical industry and
pharmaceutical laboratories ltd’ in 1935 headquartered in Mumbai India. Cipla first
product was launched into the market in 1937. Cipla is the 2nd largest pharmaceutical
company in India in terms of retail sales. Cipla manufactures an extensive range of
pharmaceutical and personal care products and has presence in over 170 countries
across the world. The name of the company was changed ‘Cipla Limited’ on 20 July
1984. In the year 1985, US FDA approved the company’s bulk drug manufacturing
facilities. Now it is led by the founder’s son Yusuf Hamied he is the chairman of
Umang Vohra (CEO), a Cambridge-educated chemist, the company provided generic
AIDS and other drugs to treat poor peoples in the developing world. The company has
roughly 1500 pharmaceutical products in more than 60 therapeutic categories. Some
are sold domestically, while the rest reach international markets in more than 150
countries. In 2001, cipla offered medicines (antiretroviral) for HIV treatment at a
fractional cost(less than $350 per year per patients). Cipla limited is an Indian
multinational pharmaceutical company. Cipla primarily develops medicines to treat
respiratory, cardiovascular diseases, arthritis, diabetes, weight control, depression,
cancer, and skin care. Cipla Ltd is one of the leading pharmaceutical companies in
India. The company focuses on development of new formulations and has a wide
range of pharmaceutical products. The product portfolio includes over 1500 products
across wide range of therapeutic categories. The founder of Cipla gave the company
 all his patent and proprietary formulas for several drugs and medicines without
charging any royalty.
Important dates
 On August 17 1935 Cipla was registered as a public limited company with an
authorized capital of Rs.6 lakh.
 In the year 1985 US FDA approved the company's bulk drug manufacturing
facilities.
 In the year 1988 they won National Award for Successful Commercialisation of
Publicly Funded R&D.
 In the year 1991 the company launched etoposide a breakthrough in cancer
chemotherapy in association with Indian Institute of Chemical Technology. Also they
manufactured antiretroviral drug zidovudine in technological collaboration with
Indian Institute of Chemical Technology Hyderabad.
 In the year 1994 the company commenced commercial operations in their fifth
factory at Kurkumbh Maharashtra
 In 1995, cipla launched Deferiprone, the world’s first oral iron chelator. .
 In the year 1997 they launched transparent Rotahaler the world's first such dry powder
inhaler device.
 In the year 1998 they launched lamivudine. The company becomes one of the few
companies in the world to offer all three component drugs of retroviral combination
therapy.
 In the year 1999 the company launched Nevirapine antiretroviral drug used to prevent
the transmission of AIDS from mother to child.
 In the year 2000 the company became the first company outside the USA and Europe
to launch CFC-free inhalers - ten years before the deadline to phase out use of CFC in
medicinal products.
 In the year 2002 the company set up four state-of-the-art manufacturing facilities in
Goa.
 In the year 2003 they launched TIOVA (Tiotropium bromide) a novel inhaled long-
acting anticholinergic bronchodilator that is employed as a once-daily maintenance
treatment for patients with chronic obstructive pulmonary disease (COPD). Also they
commissioned second phase of manufacturing operations at Goa.
 In the year 2005 the company set up state-of-the-art facility for manufacture of
formulations at Baddi Himachal Pradesh.
 In the year 2007 they set up state-of-the-art facility for manufacture of formulations
at Sikkim.
 In February 2007 the company entered into a development and supply agreement
with Drugs for Neglected Diseases Initiative (DNDI) a global non-profit organization
for a new anti-malarial combination drug as a global initiative.
 During the year 2009-10 the company sold their intellectual property rights and
technical know-how of 'i-pill' an emergency contraceptive brand to Piramal
Healthcare Ltd for the territory of India at an aggregate consideration of Rs.95crore.
Also they entered into a strategic alliance with Stempeutics Research Pvt Ltd.
promoted by the Manipal Group for the marketing rights of stem-cell-based products
being developed by Stempeutics. Cipla is sponsoring up to Rs.50crore in the initial
phase for research and development of these products.
 In April 2010 the company commenced commercial production of pharmaceutical
formulations at the Special Economic Zone (SEZ) project at Indore Madhya Pradesh.
This project includes facilities for the manufacture of aerosols respules liquid orals
pre-filled syringes (PFS) nasal sprays large volume parenterals (LVP) eye drops
tablets and capsules. The total investment for this project is about Rs.900crore.
 In May 2010 the company acquired an undertaking for Rs.30.64crore by way of a
slump sale arrangement. The undertaking has a manufacturing facility approved by
US FDA and WHO for APIs and intermediates. It is located at Kurkumbh (Pune
district). Also the company set up a wholly-owned subsidiary Cipla Singapore Pte
Ltd' in Singapore to aid logistics and distribution of the company's export business.
 In May 2010 the company acquired 100% shareholding of a company for
Rs.51.38crore. This company has a state-of-the-art formulations manufacturing
facility at Sikkim with capabilities to manufacture tablets capsules oral liquids
injections dry syrup and ointments/creams.
 During the year 2010-11 the company introduced a number of new drugs and
formulations such as Entavir (entecavir tablets) an antiviral for hepatitis B; Febucip
(febuxostat tablets) a drug for gout; Flosoft (fluorometholone acetate ophthalmic
suspension) a topical steroid for eye inflammation; Foracort (formoterol and
budesonide autohaler) an asthma controller therapy in a new easy-to-use breath
 actuated inhaler; Furamist AZ (fluticasone furoate and azelastine hydrochloride nasal
spray) a nasal spray for allergic rhinitis and Montair FX (montelukast and
fexofenadine tablets) an antiallergic combination for rhinitis. During the year Cipla
(Mauritius) Ltd Cipla (UK) Ltd Cipla-Oz Pvt Ltd Four M Propack Pvt Ltd
Goldencross Pharma Pvt Ltd Medispray Laboratories Pvt Ltd Meditab Holdings Ltd
Meditab Pharmaceuticals South Africa (Pvt) Ltd Meditab Specialities New Zealand
Ltd Meditab Specialities Pvt Ltd Sitec Labs Pvt Ltd and STD Chemicals Ltd. The
company is setting up API facilities at Bengaluru and Kurkumbh. They are also
upgrading the API facilities at Patalganga. The total investment for these projects is
about Rs.400crore. The company proposes to subscribe to the share capital of two
biotechnology companies located in India and Hong Kong to obtain a 40 per cent and
a 25 per cent share respectively. The total investment will be about USD 65 million in
a phased manner for setting up state-of-the-art facilities for bio similar products in
Goa and China.
 On 3 May 2012 Cipla announced a major price reduction in selected cancer drugs.
 On 21st July 2012 Cipla announced collaboration with Drugs for Neglected Diseases
initiative (DNDI) a not-for-profit research and development (R&D) organization to
develop and produce an improved first-line antiretroviral (ARV) combination therapy
specifically adapted to meet the treatment needs of infants and toddlers living with
HIV/AIDS.
 On 14 August 2012 Cipla announced the launch of `Qvir' a novel 4 drug kit priced at
Rs.158 for treating HIV/AIDS.
 On 8 November 2012 Cipla announced a major price reduction on select anti-cancer
drugs.
 On 27 February 2013 Cipla announced an offer to the shareholders of Cipla Medpro
South Africa Ltd. (Med pro) to acquire 100% of the ordinary share capital of Med pro
for ZAR 10.0 per share via a scheme of arrangement. The Board of Directors of Med
pro unanimously resolved to support and facilitate Cipla's offer and recommended to
Med pro shareholders that they vote in favour of all resolutions required to implement
the scheme of arrangement. Cipla Med pro South Africa is a leading provider of
chronic medicines to the public and private sectors.
 On 16 July 2013 Cipla announced that it had completed the acquisition of 100% of
the issued shares of Cipla Med pro South Africa Ltd. for an aggregate consideration
of ZAR 4507mn (Rs.2707crore).
 On 17 April 2013 Cipla announced the launch of the first bio-similar of Etanercept in
India for the treatment of rheumatic disorders.
 On 20 February 2014 Cipla and MSD announced the formation of an India-specific
strategic partnership whereby Cipla will have a non-exclusive license to market
promote and distribute MSD's raltegravir 400mg tablet under a different brand name
in India. The drug is used for the treatment of HIV-1 infection in adult patients as part
of combination HIV therapy.
 On 12 May 2014 Cipla through its wholly owned subsidiary Cipla (EU) Limited
announced $21 million two-phase investment in Chase Pharmaceuticals Corporation
Inc. US (Chase) to support Alzheimer's disease drug development.
 On 19 June 2014 Cipla announced that it has collaborated with Hetero to launch a
bio-similar of the drug `Darbepoetin alfa' under the brand name `Actorise'. The
product is indicated for the treatment of anaemia caused due to chronic kidney
disease.
 On 7 July 2014 Cipla announced its intention to make investments of up to 100
million in its UK subsidiary over the next few years. The investment will fund the
launch of a range of drugs in the areas of respiratory oncology and antiretroviral
medicines as well as research and development clinical trials and further expansion
internationally and in the UK. In its bid to enter the markets of Czech Republic and
Slovaki Cipla.
 On 8 September 2014 announced commercial collaboration with UK-based S&D
Pharma.
 On 15 September 2014 Cipla announced that it had signed a non-exclusive licensing
agreement with Gilead Sciences Inc. for manufacturing and distribution of Sofosbuvir
mono Ledipasvir mono the fixed-dose combination of Ledipasvir / Sofosbuvir with
each other and the combination of Sofosbuvir or Ledipasvir with other active
substances for the treatment of hepatitis C.
 On 18 September 2014 Cipla announced that it has granted Salix Pharmaceuticals Inc.
US-based speciality pharmaceutical company exclusive rights under certain patent
applications in the `Rifaximin Complexes' patent family controlled by Cipla. The
 grant is on a worldwide basis excluding the countries of Asia (other than Japan) and
Africa.
 On 8 October 2014 Med pro Pharmaceutical (Pvt) Ltd - a subsidiary company of
Cipla Med pro announced that it had entered into sales and distribution arrangement
with Teva Pharmaceuticals (Pvt) Ltd an affiliate of Teva Pharmaceutical Industries
Ltd (Teva) - the largest generic pharmaceutical manufacturer in the world for the
territory of South Africa. As per the tie-up Cipla Med pro a 100% subsidiary of Cipla
Limited will exclusively market Teva's broad pharmaceutical product portfolio in
South Africa.

Mahatma Gandhi visits cipla (July 4th 1939)

July 4, 1939 was a red-letter day for cipla, when the father of the nation mahatma
Gandhi, honoured the factory with a visit. He was “delighted to visit the Indian
enterprise”, he noted later. From the time cipla came to the aid of the nation gasping for
essential medicines during the Second World War, the company has been among the
leaders in the pharmaceutical industry in India.

CIPLA PHARMACEUTICAL LTD LOGO

NATURE OF BUSINESS CARRIED

The group’s principal activity is to manufacture chemicals and pharmaceutical products.
The products of the group include anti-asthmatics, anti-cancer, anti-inflammatory, anti-
depressant and the other therapeutic index including animal health care products. The
group also provides technology services for preparation of product and process know
how and new development.
Today, cipla is a leading player in anti-infective and anti-asthmatic formulations. The
company also specializes in the manufacturing of steroids and hormones. Cipla
manufactured ampicillin for the first time in the country in 1968. In 1983, cipla
developed 2 anti-cancer drugs, vinblastine and vincristine from the common garden plant
 vinca rosea in association with the national chemical laboratory. The company pioneered
the manufacture of the antiretroviral drug, zidovudine, in technological collaboration
with Indian institute of chemical technology in 1993. In 1997 cipla became the first
company in the world by launching transparent rota haler, a dry powder inhaler device.
In 1998 the company launched lamivudine, and became one of the few companies in the
world to offer all 3 component drugs of retroviral combination therapy (zidovudine and
stavudine already launched). Cipla received clearance from the drugs controller general
of India to manufacture and market the country’s first non-nucleoside reverse
transcriptase inhibitor (NNRTI), nevirapine, for the treatment of AIDS.

AREA OF OPERATION

 Mumbai
 Vikhroli (corporate office)
 Bangalore
 Patalganga
 Kurkumbh
 Goa
 Baddi (Himachal Pradesh)
 Sikkim

COUNTRIES OF EXPORT

 Germany
 Switzerland
 Belgium
 France
 United States
 Ireland
 United Kingdom
 Italy
 Netherlands
 Denmark
 Spain
  Canada
 Sweden
 Austria
 South Africa

VISION MISSION AND QUALITY POLICY

 Vision:

Cipla started with a vision to build a healthy India. And along the way realized that in our
own small way, we could contribute to making the world a healthier place. We’ll continue to
bring a smile on as many faces as we can to heal the world as we can to heal the world as
much we can. Because there’ll always be a better world out there for those who have the
passion to create it.

 Mission:

We use the latest pharmaceutical technology to tunnel over seven decades of

experience into one capsule that cures, one drop that defends and one puff that
protects. We explore every drug to its last particle and in still safe and sure healing to
create one does of confidence. The mission of caring life, which continues to this day
and god willing it will continue in the future.

 Quality policy:
Cipla has 34 manufacturing facilities across India. We have dedicated plants for the
technologically- challenging formulations such as oncology products, hormones,
metered-dose inhalers (MDIs), beta- lactams, cytotoxic, injectable and
cephalosporin’s. Our manufacturing plants and processes are seen as among the most
sophisticated in the world. They roll out world- class products in over 65 therapeutic
categories. We use state-of-the-art technology, the most stringent operating
procedures, a highly motivated and technically competent team, highest standards of
safety practices and environmentally green and clean processes.
Cipla earned a name in worldwide for adhering to the highest standards of quality and
have received approvals from various ministers of health and major international
regulatory agencies.
1. Food and drug administration (FDA), USA
 2. Medicines and healthcare products regulatory agency (MHRA), UK
3. Therapeutic goods administration (TGA), Australia
4. Medicines control council (MCC), South Africa
5. National institute of pharmacy (NIP), Hungary
6. Pharmaceutical inspection convention (PIC), Germany
7. World health organization (WHO) department of health, Canada
8. State institute for the control of drugs, Slovak republic ANVISA,
Brazil
WORK FLOW MODLE
Manufacturing
Manufacturing process is as follows

procurement testing dispensing

secondary in process manufacturing

packaging testing and filling

finished product
batch release
product testing dispatch

Manufacturing process
Major instruments used in production-
 Compression machine
 Autoclave
 Deduster
 Metal detector
 Peristaltic pump, blender, shiftor, rapid mixer granulator
 Coating machine
 Measuring apparatus
 DT apparatus
Tablet section
 Rapid mixer granulator
 Coating machine
 Tablet counting machine
Capsule section
 Filling machine
 Printing machine
 Polishing machine
 Counting machine
Liquid section
 Homogenizer
 Filter press
 Washing machine
 Automatic labelling machine.

Quality control

All type of testing done in the quality control department of pharmaceutical industries
is necessary as they plays an important role in defining the quality of products
manufactured in the pharmaceutical industry. These different types of testing cited
that whether the raw materials and the water used in the manufacturing of the
pharmaceutical products is right to use or not. Also plays an important role in
determination of the different components of drugs in right concentration. HPLC
technique is used most widely for the testing. This book gives a practical illustration
of most of the pharmaceutical Q. C. techniques followed in the labs including
microbial limit tests, determination of total microbial count(TMC), total bacterial
count (TBC), total fungal count (TFC), serial dilutions, tests for specified microbes,
biochemical tests, chromatographic techniques (HPLC, ion exchange
chromatography, size exclusion chromatography, affinity chromatography etc.)Cipla
quality control department has 4 major sectors:

 Raw materials section

 Instrument section
 Finished product section
  Stability section

Steps involved:
 The raw material which is bought from various companies is stored in the
storage department
 High performance liquid chromatography (HPLC), DT apparatus etc..,
 If the sample passes the test it goes to the finished product section after
production or else it goes to the raw material section and the raw material is
reversed
 After the final product is formed, it goes for packaging and thereafter it goes
to the stability section to check the stability of the product
Cipla uses state-of-the-art technology, the most stringent operating procedures, and a
highly motivated and technically competent team, highest standards of safety practices and
environmentally green and clean processes.
Packaging
Pharmaceutical packaging and labelling has to be carried out for the purpose of the safety
of the pharmaceutical preparations in order to keep them free from contamination hinder
microbial growth, and ensure product safety through the intended shelf life for the
pharmaceuticals.
Packaging labelling is ay written, electronic, or graphical communication on the package
or a separate but associated label.
Types:
 Blister packaging
 Strip pack
 Container pack
 Aerosol packing
Purpose:
 Physical protection
 Barrier protection
 Information transmission
 Marketing
 Anti-counterfeiting packaging
PRODUCT AND SERVICE PROFILE
 1. Pharmaceuticals: the company is a leading domestic pharmaceuticals major, has a
product range comprising antibiotics, antibacterial, anabolic steroids,
analgesics/antipyretics, antacids, anthelmintic, anti-arthritis, anti-inflammatory drugs,
anti-TB drugs, anti-allergic drugs, anticancer drugs, antifungal, antimalarial,
antispasmodics, antiulcer ants, immunosuppressant’s etc. it’s a leader in the anti-
bacterial and anti-asthmatic segments and is the first player in Asia to launch non-
CFC metered dose inhaler.
2. Animal health care products: these include aqua products, equine products, poultry
products, products for companion animals, and products for livestock animals, aqua
products but equine and companion animal care products continue to be its focused
area such as,
 Deworming
 Flea and tick control
 Joint care
 Skin care
 Scheduled
 Anxiety and stress
3. OTC: these include child care products, eye care products, food supplements, health
drinks, life style products, nutraceuticals and tonics, skin care products, and oral
hygiene products.
4. Flavour and fragrance: cipla manufactures a wide range of flavours, which are used
in foods and beverages, fruit juice, baked goods, and oral hygiene products. Cipla
fragrances have wide ranging applications such as in personal care product, laundry
detergents and room fresheners.
5. Active pharmaceutical ingredients(API)
Cipla is one of the biggest exporters of low cost, high quality APIs across the world.
Major bulk drugs and intermediates manufactured by cipla are: adefovir dipivoxyl,
albendazole USP, albuterol sulphate, alendronate sodium.32H20, alpra zolam,
amlodipine besylate, anastrazole, atorvastatin, aripiprazole, azelastine HCL etc…

Customers

 Core customers (doctor)

 End-customer (patient)
 Core customer (retailer)
 Core customer (stockist)
 Customer (C and FA)
OWNERSHIP PATTERN
 Founder: Dr .K. A. Hamied (1898-1972)
 Chairman and managing director: Dr .Y. K Hamied
 Joint managing director: Mr M. K. Hamied
Mr Amar Lulla
 Non- executive directors: Mr V.C. Kotwal
Dr. H. R. manchanda
Mr .S. A. A. Pinto
Mr M. R. Raghavan

AWARDS AND ACHIEVEMENTS

AWARDS:

 Cipla directors received Padma Bushan award in 2005 i.e. Dr. Y. K. Hamied.
 In 1976 cipla launches medicinal aerosols for asthma.
 In 1980 won chemexil award for excellence of exports
 In 1988 won national award for successful commercialization of publicly funded in
Research & development.
 In 1997 cipla became the first company in the world by launching transparent rota
haler, a dry powder inhaler device
 CFC-free inhalers.
 In 1998 the company launched lamivudine, and became one of the few companies in
the world to offer all 3 component drugs of retroviral combination therapy
(zidovudine and stavudine already launched).
 Set-up state of the art facility for manufacture of formulations at Sikkim in 2007.
ACHIEVEMENTS:
Mile stone of cipla
 In the year 1935, Dr K A Hamied sets up “the chemical, industry and pharmaceutical
laboratories ltd”, in a rented bungalow, at Bombay central.
 In the year 1941 as the Second World War cuts off drug supplies the company starts
producing fine chemicals dedicating all its facilities for the war effort.
 In the year 1952 the company set up first research division for attaining self-
sufficiency in technological development.
 In the year 1960 they started operations at second plant at Vikhroli Mumbai
producing fine chemicals with special emphasis on natural products.
 In the year 1968 the company manufactured ampicillin for the first time in the
country.
 In the year 1972 the company started Agricultural Research Division at Bangalore for
scientific cultivation of medicinal plants.
 In the year 1976 they launched medicinal aerosols for asthma.
 In the year 1980 the company won Chemexil Award for Excellence for exports.
 In the year 1982 the company started operations in their fourth factory at Patalganga
Maharashtra.
 In the year 1984 they developed anti-cancer drugs vinblastine and vincristine in
collaboration with the National Chemical Laboratory Pune. Also they won Sir P C
Ray Award for developing in-house technology for indigenous manufacture of a
number of basic drugs.
COMPETITORS INFORMATION

 Ranbaxy labs
 Nicholas piramal
 Sun pharma
 Novartis
 Pfizer
 Dr Reddy’s labs
 Lupin
 Glen mark
 Divis labs

OPPORTUNITIES
 International markets
 Exports will be the thrust area for growth in the near future. The company is well
geared to meet this objective with its state-of-the-art. Manufacturing facilities at Goa,
kurkumbh, Patalganga and now at Baddi. Cipla’s products are registered in over 150
countries. Strategic alliances with various partners in the regulated and other market
will contribute to future growth.
 Domestic markets
in the domestic market, cipla continued to maintain its leadership position again the
focus was not only on consolidating its existing brands but also on introducing new
products and dosage forms. The company will aim to increase its penetration and
coverage for increasing its market share further.
 Share capital
Pursuant to the scheme of arrangement sanctioned by the Bombay high court vide its
order dated 11th June 2004 and consequent to the approval already granted by the
members under section 81(1A) of the companies act, 1956 the company has allotted
8488 equity shares of Rs.2 each on 10th September 2004. These shares have been
listed on the stock exchange, Mumbai (BSE) and national stock exchange of India
limited (NSE).
 Community care
Cipla has initiated several programmes to fulfil its corporate social responsibility
(CSR) cipla has provided affordable medicines for HIV/AIDS, malaria, second-line
TB. The company’s anti- AIDS drugs are sold in more than 120 countries, as per data
collected by the world trade organization (WHO) and the Clinton foundation. One out
of every 3 HIV patients in the world receiving treatment is on an anti-AIDS drug
manufactured by cipla.
 Other welfare activities
The company also continued to support education and community welfare, directly and
through its charitable trusts. The company provided medicines to treat over a million
poor, aged patients in slums and villages through help age India as part of its social
responsibility initiative. The company also provided free medicines to the istuami-
affected in India and Srilanka.

CIPLA PRODUCTS LISTS

 8X shampoo
 9PM eye drops
  ABAMUNE tablets
 ABAMUNE-L-tablets
 ACIVIR cream
 ACIVER eye ointment
 ACIVER DT tablets
 AEROCORT inhaler
 AEROCORT rota caps
 ADGAIN capsules
 ACTEMRA*injections
 ACTIPEEL gel
 ACTORISE injection etc…
GROWTH STRATEGY AND FUTURE OUTLOOK

Growth strategy

Development of innovative drug delivery systems for new and existing active drug
substances continued to be an integral part of the country’s growth strategy. Work on new
medical devices, mainly in the area of respiratory medicine, progressed rapidly, as did its
inhaled insulin project. The company has developed a unique transdermal delivery system. It
has already launched a spray patch for testosterone and another for estradiol. Other new
developments include a novel dry powder inhaler device and a unique single-action single-
dose inhaler device. Cipla has entered into a research agreement with Avestha Gngraine
technologies private limited. Bangalore with the objective of working on a collaborative
biopharmaceutical development programme. The partnership will focus on the development
of range of bio similar products for autoimmune disorders, cardiovascular diseasesandca.

Future outlook

 Cipla keeps the steady momentum of growth with an overall growth of more than
57% in income from operations for the quarter ended march 2006.
 Currently, we are one of the largest exports of pharmaceutical products in India,
exporting APIs and formulation products to more than 160 countries including the
U.S and a number of countries in Europe, Africa. Australia, Latin America and the
middle East. Both the international as well as the domestic business have recorded
a growth of more than 56% and 63% respectively.
  In the last quarter. All the major segments including anti-asthmatics,
cardiovascular and anti-biotics/bacterials segments have shown good performance
in the domestic market.in the exports markets, anti-retrovirals, anti-malarials, anti
asthmatics,anti depressants and cardiovascular segments have performed well.
 As cipla turns 70, the company is set to achive future improvement with
commissioning of its expansion projects and launching of new products. It has 140
ongoing projects with five companies in the US.
 It has a strategic alliance with the US generics major watson, IVAX, eon etc. it
alliance partners have filed 31 ANDAs and it is expected that they will filled
additional 35 ANDAs in thenext 12-15 months.
 Cipla had a research alliance with a bangalore-based biotech compnay avesthagen,
to develop bio therapeutic products. And looking at selling its 5.8%stake in the
banglore- based company. The agreement due to avesthagen’s allwged failure to
meet targets. Under the agreement, avesthageb was supposed to develop the bio
similar products and cipla would have used its strong marketing force to
commercialize and market it.
New products
 Dove(titropium and formoterol inhaler and rotacaps)-long lasting combination
bronchodilator for COPD
 Douvir E kit(lumivudine, zidovudine and efavirenz tablets)- noval triple drug fixed
dose combination kit for HIV/AIDS
 Duonase(azelastine and fluticasone nasal spray)- new steroid decongestant
combination spray for alergic rhinitis
 Levovil(levosalbutamol inhaler,rotacaps, tablets and syrup)-the first chiral salbutamol
bronchodilator for asthma in these dosage forms
 Mucinac-(n-acetylcysteine affervascent tablets)-mucolytic antioxident
 Seroflo multi-haler (salmeterol and fluticasone).the first single action multi-dose dry
powder inhaler(DPT) for asthma and COPD
 Voltance (acceclofenac and beta-cyclodextrin tablets)-fast acting non-sterodial anti-
inflammatory drug.

INDUSTRY STRUCTURE AND DEVELOPMENT

 The Indian pharmaceutical industry grew by 4.2%during the year 2004-05. The
introduction of the patents (amendment) act, 2005, early this year brought in the product
patents regime, which came in to force on 1st January 2005. The domestic industry will
need a gear itself to meet the challenges of this new scenario and a spate of strategic
realignment and consolidation activity within the industry in anticipated.
PERFORMANCE REVIEW
Sales for the year crossed Rs.23250 million recording an impressive 18%growth over the
previous year. This was achieved despite depressed sales in 4 th q., mainly on account of
confusion related to the implementation of value added tax and the heavy of excise duty
on the MRP of formulation. Cipla maintained its leadership in the domestic market,
retaining its no 1 rank in the ORG IMS rating (retail store audit MAT march, 2005).
Exports grew by 30%, exceeding Rs.10500million. Both active pharmaceutical
ingredients (APIs) and formulations combined to the growth in business in the
international market. Overseas business now forms 45%of the company’s turnover.
The company received the express pharmacy pulse award for overall performance and
jointly the best exporter award. The company’s strategic alliances with its international
marketing partners progressed as envisioned. The overall net profit of the company at
Rs.4096 million grew up by 33%. This was mainly on account of improved product mix,
optimization of resources and higher non-operating income.
 CHAPTER-3

MCKENSY’S 7S FRAME WORK AND PORTER’S FIVE FORCE MODEL

WITH SPECIAL REFERENCE TO ORGANIZATION UNDER STUDY
MCKENSY’S 7S FRAMEWORK

McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos.
Since the introduction, the model has been widely used by academics and practitioners
and remains one of the most popular strategic planning tools. It sought to present an
emphasis on human resources, rather than the traditional mass production tangibles of
capital, infrastructure and equipment, as a key to higher organizational performance. The
goal of the model was to show how 7 elements of the company: Structure, Strategy, Skills,
Staff, Style, Systems, and Shared values, can be aligned together to achieve effectiveness
in a company. The key point of the model is its objectives.
 Improve the performance of a company
 Examine the likely effects of future changes within a company
 Align departments and processes during a merger or acquisition
 Determine how best to implement a proposed strategy
 To facilitate organizational change

The 7 elements are:

The Mckensy’s 7s model involves 7 interdependent factors which are categorized as either
“hard” or “soft” elements

hard soft
Strategy Style
Structure Staff
system Skills
Shared values

Mckensy’s 7s model
 1. STRUCTURE

Human resource

 Human resource management involves everything related to the employer-employee

relationship and is about supporting and managing the organisations people and
associated processes
 It’s seen as a core business function essential to the organizations effective operation.
 Cipla HR department has divided into 4 parts
o Time office
o Recruitment
o Payroll
o Training and development
Finance department
 The part of an organization that manages its money
 The finance department is also responsible for management of the organizations cash
flow
 The financial development is responsible for advising and sourcing longer term
financing
 Financing may be obtained through bank or private lender debt or, in applicable firms,
share issues to private investors
  The business functions of a finance department typically include planning, organizing,
auditing, accounting and controlling its company’s finances
Marketing department
 Responsibility for growing revenue, increasing market share and contributing to
company growth and profitability include a marketing director or manager plus
marketing executives responsible for functions such as advertising, publications or
events
 The marketing department works with internal and external product development
 Marketing departments plan campaigns and develop communications material to
promote products and services to customers and prospects.
Production department
 Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes
 Engages in the manufacturing or production of goods for the business organization
 The production manager is responsible for making sure that raw materials are
provided and made into finished goods effectively
 Other workers in this department include technicians, engineers, designers, machine
operators etc.

Quality assurance
 A broad practice used for assuring the quality of products or services
 Uses a number of tools for enhancing the quality practices tools vary from simple
techniques to sophisticated software systems
 Quality assurance teams of organizations constantly work to enhance the existing
quality of products and services.
 2. STAFF
In fiscal year 2018 cipla limited employed over 23 thousand employees across India.
Out of this there were around 2600 female employees and 13 employees with
disabilities. Cipla is one of the leading biotechnology companies across India, with a
focus on cardiovascular, diabetic and asthma related dieases.

3. STRATEGY

 Cipla Product Strategy:

Cipla is one of the leading pharmaceutical companies’ bases out of India. Cipla
offers vast and varied range of products and medicines in its marketing mix
product portfolio. Some of its products include:
o OTC- It includes personal care products along with the artificial sweetener,
infant food, etc. Cipla also has a dedicated division for animal health-care
products.
o Prescription- It includes steroids, anti-allergic, anti-inflammatory, anti-asthma
medicines etc.
o Fragrance- It manufactures food and beverage flavours as well.
o Active Pharmaceutical Ingredients- It is a leader in APIs which are cheaper
and of high-quality.
o Inhaled Products: More than 65 different inhaled products are sold by Cipla of
more than 20 ingredients like Synchrobreathe, multi-haler, nebulizer, nasal
spray, rota haler, etc. Cipla was the first company to manufacture oral iron
chetar in the world. Also, they are the world’s largest manufacturer of
antiretroviral drugs. Not only this, it provides services as well like
commissioning, plant engineering, etc. Needless to say, it faces tough
competition from players in the same industry like Ranbaxy Labs, Lupin, Dr
Reddy’s Laboratories, Sun Pharmaceuticals etc.

 Cipla Price/Pricing Strategy:

Cipla is the leader in India in health-care company, faces limited though tough competition
and envisions to provide affordable health facilities accessible by all, its pricing policy is well
in line with these 3 factors affecting it. It products are pocket friendly for its customers and
has managed to reduce the prices of several vital drugs in the market. Also, competitive
pricing policy is adopted by Cipla to compete with its competitors.

 Cipla Place & Distribution Strategy:

Cipla has its presence in 100 countries with wide distribution network (with 6500
distributors in India) with products being available easily at medical stores and
production facilities. In India only, it has 35 manufacturing units in 8 locations. Cipla
also has R&D units for the development of new drugs. It exports its products to nearly
160 countries which include Middle East, Australia, Africa, Latin America, Europe and
Middle East.
  Cipla Promotion & Advertising Strategy:
The promotional and advertising strategy in the Cipla marketing strategy is as follows:
The tagline of Cipla “Caring for Life” has become its mission and therefore contributes
actively to society through themes like generation of employment, education, health and
sanitation, etc. through its Palliative Care Centre, it provides to cancer patients free-of-cost
medication. The biggest value addition and promotion is done through the accolades brought
to company in several fields by widely recognised and reputed institutions around the world
in several years. Cipla won the Thomson Reuters India Innovation Award and it won Dun &
Bradstreet American Express Corporate Awards and many more. Hence this completes the
marketing mix of Cipla.
4. Styles

5. System

6. Shared value

7. Skills

1.
PORTERS FIVE FORCE MODEL

bargaining
power of
suppliers

potential of
compitation
new entry threat of
in the
into the substitutes
industry
industry

bargaining
power of
buyers

The porters five force model are:

1. Competition in the industry
2. Potential of new entrants into the industry
3. Bargaining power of suppliers
4. Bargaining power of buyers
5. Threat of substitutes

1. Competition in the Industry

The trick to developing a competitive method is to recognize the sources of the
competitive forces. Product advancement technique ought to be used if the present
market development is sluggish and the industry is filled. As quickly as your analysis
is finished, it's time to implement a strategy to expand your competitive benefit.
Consumers have power whenever there aren't a number of them, but plenty of sellers,
in addition to when it is not difficult to change from 1 company's services or items to
another. Purchaser Power Low Customers have limited power over console designers,
since the range of potential consumers is huge, the company isn't too concerned about
losing consumers. Don't forget that five forces affect various markets in a different
way and for that reason do not utilize specifically the very same outcomes of analysis
for even comparable industries.

2. Potential of New Entrants into an Industry

Supplier’s products have a couple substitutes. Powerful customers can exert pressure
to drive down rates, or boost the important quality for precisely the same rate, and so
minimize revenues in an organisation. Ford's consumers substantially help determine
the organisation. Supplier power is no problem for McDonald's in the quick food
market. The bargaining power of providers is high in the event the buyer does not
represent a big part of the provider's sales. The point is that the bargaining power of
 the provider in a market impacts the competitive environment for the purchaser and
affects the purchaser's capability to obtain profitability. Customers have power
whenever there aren't a number of them, but plenty of sellers, in addition to when it
is not tough to switch from 1 organisation's products or services to another. Buyer
Power Low Consumers have actually restricted power over console designers, since
the range of prospective consumers is big, the company isn't too concerned about
losing clients. As quickly as your analysis is done, it's time to carry out a strategy to
broaden your competitive advantage. In spite of criticisms concerning its
applicability in a far altered world, it is still one of the most commonly used methods
of industry analysis. It isn't challenging to do an important analysis, although it will
more than likely require some research. In your expert small business discussions, a
specific ought to present services based upon the carried out analysis of the business
enterprise. The analysis likewise increases your opportunities to earn more revenue
in business. Cipla Porter's five forces analysis is a significant tool for everyone
trying to evaluate the strategic standing of an existent company, or considering a
new endeavour into a present market. The analysis working with the Cipla Porter's 5
forces analysis should be a basis where the firm finds and implements their
technique which must enhance their competitive benefit.

3. Bargaining Power of suppliers

The trick to developing a competitive technique is to realize the sources of the
competitive forces. It is also handy for assisting you to customize your technique to
fit your competitive environment, and to increase your possible profit. Product
development technique needs to be utilized if today market development is slow and
the marketplace is saturated. When an industry is rewarding, or appealing in a long-
lasting tactical fashion, then it's going to be attractive to brand-new companies. As
an instance, the airline company service has fierce competitors among the 2
manufacturers, Plane and Boeing. Bear in mind that five forces impact various
markets differently and for that reason don't utilize specifically the exact same
outcomes of analysis for even similar industries! In the event the present firms do
not enable it to be difficult for other individuals to sign up with the market, the
success will have a tendency to fall towards absolutely no. Organisations can
capitalize by decreasing and raising the expense of the product, but it's typically
required to have short-term benefits. Despite the fact that it doesn't sound extremely
appealing for companies to go into the airline business, it's NOT impossible. In order
to cut the risk of brand-new entry, the business ought to develop a great brand name
image. If it have a good brand image, then consumer wants to stick with the brand
name products. It is quite hard for a company to enter the Vehicle industry and take
on among the greatest business on the planet. If there's a selection of quality
products are offered in the market in direct competitors with it, 1 company might
wind up having little or no power in its own market. In addition, it should be easy
for them to switch from one company to another. Whether there are more business
competing with one another, the resulting competitive pressure implies that costs,
revenues and method is going to be driven by it. When looking at the huge inputs
that airline organisations require, we see that they're specifically dependent upon
fuel and airplanes.

4. Bargaining Power of Customers

The Porter's Five Forces tool is quite a strong tool. Since that time, it is now a
frequently used tool for examining a company's market structure and its business
 method. Extra modelling tools will most likely help you complete your
comprehension of your company and its potential. You're anticipated to acknowledge
the strength of each one of the forces. As it will help to comprehend not merely the
strength of present competitive position but in addition the strength of an expected
position, it's very valuable. Let's look at every one of the five forces in a bit more
information to spell out the technique by which they work. It isn't constantly simple to
discover which force is the essential one. 5 Forces examines the viability of a
particular item or support. After examining the forces, you should discover methods
to influence the forces. In order to finish an entire competitive analysis, the porter's 5
forces ought to be compensated. Cipla Porter's 5 Forces is a good beginning indicates
appraise a business but shouldn't be used in isolation.

5. Threat of Substitutes
In your professional small company presentations, a specific ought to present options
based on the carried out analysis of the business enterprise. Cipla Porter's 5 forces
analysis is a substantial tool for everybody trying to examine the strategic standing of
an existing company, or thinking about a new venture into a present market. The
analysis working with the Porter's five forces analysis ought to be a basis where the
firm finds and executes their method which should boost their competitive benefit.
Bear in mind that five forces affect numerous markets differently and therefore don't
utilize exactly the same outcomes of analysis for even comparable industries! In order
to finish an entire competitive analysis, the Cipla porter's 5 forces ought to be
compensated.
 CHAPTER-04

SWOT ANALYSIS
SWOT ANALYSIS OF CIPLA LTD

1. Strengths
 Exports to over 175 countries that contribute 54%of total turnover
 Market leader in key therapeutic areas such as respiratory care and anti-viral.
 Company has an extensive distribution network
 Partnered 8 leading generic companies in the US for nearly 125 projects
 Cipla has that features among the top 300 brands.
 Largest basket of around 1500 formulations
 One of the country’s best research and development process
 Cost effective technology
 Clinical research and trials
 High standards of purity
 Future growth driver
 Chemical and process development competencies
 Excellent clinical trial center’s
 Knowledge based low-cost manpower in science and technology.
 Strong and well developed manufacturing base.
2. Weakness
 Domestic growth was steady at per cent
 Growth in formulation exports was affected due to various factors including
non-availability of important raw materials, lower tender business in anti-
retroviral.
 Impact of IPR regime
 Low Indian share in pharmaceutical market (about 2%)
 Lack of strategic planning
 Production of duplicate drugs
 Low healthcare expenditure
 Low R&D investments
  Fragmented capacities
3. Opportunities
 46 ANDAs pending for approval in US
 Plans of launching bio-similar, particularly relating to the oncology, anti-
asthmatic and anti-arthritis categories
 Around 10% contribution to the revenue from the Indore SEZ to start coming
in from FY2013E
 Bio-therapeutic: a new and promising area
 Agreement with avesthagen
 Venturing towards areas of cardiology and anti-cancer
 5-6 inhales products are at different stage of approvals
 Incredible export potential
 Increasing health consciousness
 Globalization
 New innovation therapeutic products
 Drug delivery system management
 Increased income
 Production of genetic drugs
 Contract manufacturing
 Clinical trials and research
 Drug molecules

4. Threat
 Some pending legal cases on account of alleged overcharging in respect of
certain drugs under the drug price control order
 Sensitive to fluctuation in foreign currency exchange rates
 Partnership related and
 Potential de-rating
 Small number of discoveries
 Competition from MNCs
 Out-dated sales and marketing methods
 Transformation of process patent to product patent (TRIPS).
 Non-tariffs barriers imposed by developed countries.
CHAPTER-5

ANALYSIS OF
FINANCIAL
STATEMENT
PROFIT AND LOSS ACCOUNT OF CIPLA LIMITED

PARTICULARS IN RS. CRORE March 2020 March 2019

INCOME
Sales turnover 17131.99 16362.41
Excise duty 0.00 0.00
Net sales 17131.99 16362.41
Other income 344.20 476.57
Stock adjustments 244.76 -47.04
TOTAL INCOME 17720.95 16791.94
EXPENDITURE
Raw materials 6236.18 5737.45
Power & fuel cost 327.43 335.11
Employee cost 3027.01 2856.53
Other manufacturing expenses 1017.51 928.08
Selling and administration expenses 2895.69 2734.65
Miscellaneous expenses 666.94 626.24
Less: pre-operative expenses capitalised 0.00 0.00
TOTAL EXPENDITURE 14170.76 13218.06
OPERATING PROFIT 3550.19 3573.88
Interest 197.36 168.43
Gross profit 3352.83 3405.45
Depreciation 1174.65 1326.31
Profit before tax 2178.18 2079.14
Tax 631.20 569.53
NET PROFIT 1546.98 1509.61
NET PROFIT AFTER MINORITY INTEREST 1546.52 1527.70
BALANCE SHEET OF CIPLA LIMITED

BALANCE SHEET AS ON 31ST MARCH 2020 & 2019

PARTICULARS IN RS CRORE 2020 2019

SOURCES OF FUNDS
Share capital 161.25 161.14
Reserves 15601.75 14851.14
Total shareholder’s funds 15763.00 15012.28
Secured loans 423.25 166.95
Unsecured loans 2960.52 4741.45
Total debt 3383.77 4908.40
TOTAL LIABILITIES 19441.05 20252.65
APPLICATION OF FUNDS
Gross block 15150.63 13858.09
Capital work in progress 824.53 676.18
Investments 1471.02 2554.14
CURRENT ASSETS, LOANS & ADVANCES
Inventories 4377.60 3964.83
Sundry debtors 3891.31 4150.72
Cash and bank 1003.91 618.81
Loans and advances 2411.30 2390.28
TOTAL CURRENT ASSETS 11684.12 11124.64
CURRENT LIABILITIES AND PROVISIONS
Current liabilities 3263.98 2915.17
Provisions 957.53 795.50
Net current assets 7462.61 7413.97
Miscellaneous expenses not written off 0.00 0.00
Deferred tax assets - -
Deferred tax liability - -
Net deferred tax - -
Other assets 1656.61 1767.89
TOTAL ASSETS 19441.05 20252.65
RATIO ANALYSIS OF CIPLA LIMITED

RATIOS YEAR 2020 YEAR 2019

1. Debt-equity ratio 0.00:1 0.01:1
2. Current ratio 2.80 2.52
3. Asset turnover ratio 1.97 2.08
4. Inventory turnover ratio 4.30 4.19
5. Debtors turnover ratio 3.76 4.50
6. Interest coverage ratio 83.23 147.90
7. Operating margin (%) 28.44% 24.89%
8. Net profit margin (%) 18.31% 15.26%
9. Return on capital employed (%) 17.80% 16.43%
10. Return on net worth (%) 13.97% 12.63%

INTERPRETATION OF RATIOS

Debt equity ratio =Debt equity ratio decreased it shows that company went to less debts for
raising funds and investing liability have decreases.

Current ratio = current ratio increased in the year 2020 when compared to previous year
which shows company is in the better position to pay the liability

Assets turnover ratio= from this ratio we came to know that assets has been efficiently
decreased in the current year 2020 compared to previous year 2019.
 Chapter-06
Learning experience
LEARNING EXPERIENCE
BIBLIOGRAPHY

www.business-standard.com

www.cipla.com

www.moneycontrol.com

www.scribd.com

www.slideshare.net

www.ciplawikipedia.com