Internship Research Project

On

“A Comprehensive Analysis of Shilpa Medicare Limited”

Undertaken at

Shilpa Medicare Limited

Submitted in partial fulfilment of the requirements for the award of the degree of Bachelors
of Business Administration

To

SRI VENKATESHWARA DEGREE COLLEGE, RAICHUR

( AFFILIATED TO RAICHUR UNIVERSITY)

Under the Guidance, Submitted by,

PROF. RAMYA MK SRIRAM BALDWA

Professor U23AP21M0011

Dept of Commerce VI Semester, BBA

SRI VENKATESHWARA DEGREE COLLEGE, RAICHUR

( AFFILIATED TO RAICHUR UNIVERSITY)

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Acknowledgement:

I want to sincerely thank everyone who helped with finance and accounting report and
successful conclusion of my internship.

I want to start by saying how grateful I am to my internship supervisor at Shilpa Medicare

Limited, Venkatesh Sharma, HOD. Throughout this internship, I have really improved my
knowledge and abilities thanks to your direction, mentoring and useful insights into the
finance and accounting department. Your willingness to impart your knowledge has a
significant influence on my professional progress.

I owe a debt of gratitude to Shilpa Medicare Limited’s entire staff for their cooperation and
support during my internship. Working with such devoted individuals has been a rewarding
experience and I value their patience in responding to my inquiries and guiding me through
challenging financial duties.

I want to express my gratitude to the academic staff and faculty at SRI VENKATESHWARA
DEGREE COLLEGE, especially Ms.RAMYA MK, Dept of Commerce, for their immense
support and advice in securing this internship opportunity as well as for their academic
insights which served as the basis for my internship experience.

I would also like to express my gratitude to my family and friends for their continuous
support and inspiration throughout the internship and while I was writing my report. Your
confidence in my competence has served as a constant source of inspiration.

I would want to conclude by expressing my gratitude to everyone who helped me with my

internship experience and my report, both directly and indirectly. I appreciate all of your
assistance and advice and I look forward to using the knowledge and abilities I’ve acquired
during this internship in my future work in accounting and finance.

SRIRAM BALDWA

U23AP21M0011

SRI VENKATESHWARA DEGREE COLLEGE, RAICHUR

( AFFILIATED TO RAICHUR UNIVERSITY)

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Plagiarism Report

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TABLE OF CONTENTS

Internship Certificate 02

Acknowledgement 03

Plagiarism Report 04

Executive Summary 06

Overview of the Organisation 07

Organisational Structure 09

Organisational Chart 10

Structure of various Department 11

Functions of Accounting & Finance Department 13

Internship Program 14

Current Prospects of Shilpa Medicare Limited 16

Future Prospects of Shilpa Medicare Limited 17

My Learnings 18

SWOT Analysis 19

Conclusion 21

Recommendations 21

References 22

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Executive Summary:

The six-week internship in Shilpa Medicare Limited’s Accounting and Finance Department
offered a thoughtful and immersive experience in the realm of corporate finance and
accounting. Throughout this period, I had the opportunity to engage in a diverse range of
financial functions, including accounting, accounts payable and receivable, regulatory
compliance, financial analysis and record keeping.

My involvement in financial reporting was instrumental in gaining a profound understanding

of the preparation and analysis of financial reports. This experience was essential in
enhancing my comprehension of financial statements including income statements, balance
sheets and cash flow statements. I improved my skills in utilizing financial software and tools
for generating reports and simplifying meaningful insights from these reports.

Working in both the Accounts Payable and Receivable departments was an essential part of
the internship. It provided a practical insight into efficiently managing vendor invoices and
customer invoices, a fundamental aspect of cash flow management.

The pharmaceutical industry’s stringent regulatory environment became evident during my

internship, emphasizing the importance of adhering to ethical and transparent financial
practices. Navigating complex regulatory compliance requirements and regulations was a
significant learning experience.

Lastly, the collaborative nature of the accounting and finance department and its interactions
with other departments emphasized the importance of effective communication, teamwork
and synergy in achieving common objectives. This collaborative experience sharpened my
skills in coordinating and aligning financial activities with various stakeholders.

In conclusion, the internship at Shilpa Medicare Limited’s Accounting and Finance

Department was an enriching and transformative experience. It offered a holistic
understanding of financial operations within a pharmaceutical company, equipping me with
not only practical skills but also a profound appreciation for ethics, professionalism and
effective time management in the workplace. The knowledge and skills acquired during this
internship will be invaluable assets in my future career and I am deeply thankful of this
opportunity.

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Overview of the Organisation:

Shilpa Medicare Limited (SML) was established in 1987 in Raichur, Karnataka, India. SML
is a top manufacturer of APIs and formulations with expertise in the oncology field. For
various regulated markets including the USA, Europe, Japan, South Korea, Russia, Mexico,
Brazil and other emerging markets, SML provides more than 30 oncology APIs, including
important medicines like Capecitabine, Gemcitabine Hydrochloride, Axitinib, Erlotinib
Hydrochloride and Irinotecan Hydrochloride. Although SML’s primary area of expertise is
cancer, company also makes money by selling non-oncology APIs. With Ambroxol (a
mucolytic agent) as one of the main products in Europe and Tranexmic Acid and
Ursodeoxycholic Acid in India.

• Shilpa Medicare Limited is an Indian pharmaceutical business that focuses on the

development, production and marketing of final dosage forms (FDFs) and active
pharmaceutical ingredients (APIs), primarily for the cancer and non-oncology therapeutic
segments. The business has a presence all over the world and caters to clients in more than 70
nations.

• Shilpa Medicare has a wide selection of goods to choose from, including APIs and FDFs.
The company produces cytotoxic APIs and anti-cancer medications for the oncology market.
It produces APIs for therapeutic domains such anti-asthmatic, anti-hypertensive, anti-
convulsant, and anti-platelet in the non-oncology market. The company’s extensive product
line meets the demands of patients and healthcare professionals all around the world.

• Research and Development: In order to innovation and create new goods, Shilpa Medicare
places a high priority on R&D efforts. SML has 3 R&D units (Raichur, Banglore and Hubli).
A committed group of scientists and researchers at the company are working to advance its
product pipeline. To stay on the cutting edge of pharmaceutical research and development, it
makes investments in maintaining cutting-edge R&D infrastructure and works with academic
research centres.

• Manufacturing Facilities: There are many manufacturing units of SML. They include
Raichur Unit-l, Raichur Unit-ll, Jadcherla Unit, Hyderabad Unit, Nacharam Unit-Vll etc. The
business’s manufacturing facilities use cutting-edge technologies and follow Good
Manufacturing Practises (GMP) guidelines. In order to facilitate efficient production and
satisfy the rising demand for its products on both domestic and international markets, Shilpa

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Medicare maintains a number of manufacturing facilities around India. To produce safe and
effective medicines, the organisation makes sure that high-quality manufacturing procedures
are followed.

•Shilpa Medicare has received certifications and approvals from regulatory bodies all over
the world, including the World Health Organisation (WHO), the European Medicines Agency
(EMA) and the US Food and Drug Administration (FDA). To ensure that its products meet
regulatory requirements in many regions, the company adheres to strict quality standards and
procedures.

• Strong Global Presence: Shilpa Medicare has a significant global presence and exports its
goods to more than 70 nations in Asia, Europe, the Americas, Africa and the Middle East. In
order to access a large consumer base, the company has built distribution networks and
partnerships in international markets. Its approach for international growth focuses on
breaking into new markets and boosting market positions in existing regions.

• Financial Performance: Shilpa Medicare has consistently grown its income over the years,
which has been attributed to higher sales in both home and foreign markets. The business’s
successful financial results demonstrate its capacity to seize market opportunities and provide
value to its stakeholders.

For FY23 (in ₹ Lakhs) -

 Operating Revenue- 105,011

 EBITDA- 11,968
 PBT- (3,828)
 PAT- (3,248)

• Shilpa Medicare is anticipated to expand in the pharmaceutical sector in the future. The
company is well-positioned for success in the future thanks to its dedication to R&D, diverse
product portfolio, global presence and adherence to regulatory standards. Shilpa Medicare
seeks to broaden its product portfolio, enter new markets and keep delivering cutting-edge
solutions to address the changing requirements of patients all over the world by continued
research investments and strategic partnerships.

• Total Staff strength: The total number of employees at Shilpa Medicare Limited can vary
and may include a range of professionals such as scientists, researchers, production staff,

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sales and marketing personnel and administrative staff. In accounting & finance department,
head office, Raichur there are around 25 personnel.

Organisational Structure:

 Board of Directors:
1. Mr. Omprakash Inani - Chairman
2. Mr. Vishnukant C. Bhutada – Managing Director
3. Dr. Kamal K Sharma – Independent Director
4. Mr. Kalakota Sharath Reddy – Whole Time Director
5. Ms. Sirisha Chintapalli – Independent woman Director
6. Mr. Hetal Madhukant Gandhi – Independent Director
7. Mr. Arvind Vasudeva – Independent Director
8. Dr. Anita Bandyopadhyay - Independent woman Director
 Audit Committee:
1. Mr. Hetal Madhukant Gandhi – Chairman
2. Mr. Omprakash Inani – Member
3. Mr. Arvind Vasudeva – Member
 Stakeholder’s Relationship Committee:
1. Mr. Omprakash Inani - Chairman
2. Mr. Vishnukant C. Bhutada – Member
3. Dr. Kamal K Sharma - Member
 Corporate Social Responsibility Committee:
1. Dr. Anita Bandyopadhyay – Chairman
2. Mr. Vishnukant C Bhutada – Member
3. Mr. Kalakota Sharath Reddy – Member
 Risk Management Committee:
1. Mr. Vishnukant C Bhutada – Chairman
2. Mr. Kalakota Sharath Reddy – Member
 Chief Financial Officer & Compliance Officer: Mr. Alpesh M Dalal
 Company Secretary & Compliance Officer: Ms. Ritu Tiwary
 Office and Works:
1. 100% Export-Oriented Unit – Raichur
2. SEZ Unit – Jadcherla

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3. Manufacturing unit – Bangalore
4. Biologicals Unit – Dharwad
5. Therapeutics Unit – Hyderabad

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Structure of various Department:

The department hierarchy within Shilpa Medicare Limited follows a structured framework
with various levels of management and responsibility. Below is department hierarchy of
Shilpa Medicare Limited:

1. Managing Director - Mr. Vishnukant C. Bhutada: The CEO or Managing Director

is the highest-ranking executive responsible for the overall strategic direction of the
company.

2. Executive Leadership Team: The executive leadership team may include top
executives such as Mr. Jayant Karajgi -Chief Operating Officer (COO), Mr. Alpesh
Dalal -Chief Financial Officer (CFO), Mr. Dilip Chavan -Chief Marketing Officer
(CMO), Ms. Ritu Tiwary -Company Secretary, and others.

3. Departments: Under the executive leadership team, the organization is typically

divided into various departments or divisions, each responsible for specific functions.
These departments may include:

 Research and Development (R&D): This department is responsible for

developing and improving pharmaceutical products, including active
pharmaceutical ingredients (APIs), intermediates and finished dosage forms
(FDFs).
 Production and Manufacturing: This department oversees the manufacturing
process of pharmaceutical products, ensuring that they meet quality standards
and regulatory requirements.
 Quality Assurance and Quality Control (QA/QC): QA/QC departments are
crucial in maintaining product quality and ensuring that products meet
regulatory and quality standards.
 Regulatory Affairs: This department deals with regulatory approvals and
compliance, ensuring that the company's products meet the requirements of
various regulatory agencies.
 Sales and Marketing: The sales and marketing department focuses on
promoting and selling pharmaceutical products to healthcare providers,
distributors and other customers.

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  Finance and Accounting: This department handles financial transactions,
budgeting, financial reporting and overall financial management.
 Human Resources (HR): HR is responsible for recruitment, employee training
and development, payroll and other personnel-related functions.
 Supply Chain and Logistics: This department manages the flow of materials,
products and information throughout the company’s supply chain.
 Information Technology (IT): IT oversees the company’s technology
infrastructure, including software, hardware and data management systems.
 Legal and Compliance: This department ensures that the company complies
with all applicable laws and regulations, including intellectual property,
contracts and corporate governance.
 Corporate Communications and Public Relations: This department handles
communication with stakeholders, including investors, the media and the
public.
 Environmental, Health and Safety (EHS): EHS departments focus on ensuring
a safe and environmentally responsible workplace.
4. Head of Department: Each department is typically led by a department head or
director who reports to the executive leadership team. They are responsible for
overseeing the operations, strategy and performance of their respective departments.
5. Managers & Supervisors: Within each department, there may be multiple levels of
management (including managers and supervisors), who oversee specific teams or
functions.
6. Employees: At the base of the hierarchy are the employees, workers who perform
day-to-day tasks and responsibilities within their respective departments.

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Functions of Accounting & Finance Department:

The functions of the Accounting and Finance department in Shilpa Medicare Limited are-

1. Financial Recording and Reporting: Accurately record all financial transactions,

including income, expenses, assets and liabilities in compliance with accounting
standards.

2. Financial Statement Preparation: Prepare financial statements, including income

statements, balance sheets and cash flow statements, on a regular basis to provide
insights into the company’s financial performance.

3. Budgeting and Forecasting: Develop and manage budgets and financial forecasts to
plan for future expenditures, revenue targets and resource allocation.

4. Cost Accounting: Analyse and allocate costs related to production and various
business activities, assisting in cost control and pricing decisions.

5. Tax Compliance: Ensure compliance with tax regulations, including filing tax
returns, calculating tax liabilities and optimizing tax strategies.

6. Financial Auditing: Coordinate and facilitate internal and external audits to ensure
financial transparency and compliance.

7. Risk Management: Identify, assess and mitigate financial risks, including currency
risk, interest rate risk and market volatility.

8. Financial Planning and Strategy: Develop long-term financial strategies and

provide financial insights to support the company’s mission and growth objectives.

9. Investment Management: Manage the company's investments and evaluate potential

investment opportunities to optimize returns.

10. Financial Reporting to Regulatory Bodies: Prepare and submit financial reports to
regulatory bodies including the Securities and Exchange Board of India (SEBI) and
other relevant authorities.

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Internship Program:

Accounting & Finance Department-

The accounting and finance department at Shilpa Medicare Limited is a multi-layered

division responsible for a range of financial functions. This includes the preparation of
critical financial reports, the analysis of financial data to assess the company’s performance
and the management of budgets to ensure financial goals are met. Checking of invoices, BRS,
accounting in SAP. The department also handles accounts payable and accounts receivable,
effectively managing supplier payments and customer invoices. Furthermore, it plays a
significant role in managing the company’s tax affairs, ensuring compliance with relevant tax
laws and optimizing the tax position. This department is central to maintaining regulatory
compliance, managing risks and ensuring the efficient allocation of financial resources. It
also collaborates with other company divisions to develop strategic financial plans that align
with overall business objectives.

I worked in Accounting & Finance Department for 6 weeks from 1st June 2024 to 15th July
2024 under Mr. Venkatesh Sharma, HOD.

My experience during the internship in Shilpa Medicare Limited was as follows:

Week- 01:

It was the very first day and I was quite exited. Orientation was done by my guide on that
day. There are around 25 employees in accounting and finance department. It took me couple
of days to understand the work culture of the organisation and their software system (SAP
Software). The employees were well co-ordinated, helpful and motivated. I also tried to
understand the process of accounting in real.

Week- 02:

In this week I had not much work to do. I helped Mr. Vishnu in Preparing BRS. He taught me
how to extract data from SAP, Reconcile and prepare worksheets of the same. Mr. Eshwar
and Mr. Vipul explained the working of SAP software & its codes (item’s code, company’s
code, location, how to use, etc). While Mr. Eshwar taught me how to pass Purchase,
Expenses & Sales Entries, Mr. Vipul taught further accounting process as to how to get Trial
Balance, P&L and BS from the SAP. They also taught me T-codes (short alphanumeric strings

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that represent specific entry points within an SAP system) like ZMPRG for Purchase
Register, ZSGREG for Sales Register, F.01 for Trial balance etc., Every ledger is given a
specific code and to view the same we use T-code FBL3N, similarly every Debtor and
creditor A/c is opened by giving specific codes for each party which can be viewed using the
code FBL1N for Debtors and FBL5N for Creditors.

Week- 03:

In this week initial 3 days I was still learning their SAP Process and my next task was to
check the Invoices. I was asked to check the following details in the Invoices – Party
(Vendor) Name & GSTIN, Tax Invoice, SML’s address & GSTIN, quantity, amount, price,
description of goods, etc. Also understood the accounting process like purchase procedure.

Week- 04:

It was month end and I helped Mr. Irfan in arranging documents like invoices. E-way bills,
IOM, PO, etc. for auditors. Then started accounting in SAP. This included entering invoices
in SAP.

Week-05:

In this week learnt month-end provision entries like provision for Expenses etc., SML has
practise of passing provision entries and preparing BRS for every month ending. So I was
again asked to Prepare BRS under the guidance of Mr. Vishnu Innani. This time it was easier
for me to understand and prepare BRS as he had already taught me once in earlier week.

Week-06:

In this week learnt about TDS & its working. Mr. Vinit Jain helped me in understanding and
working of TDS. Then did accounting in SAP with the help of Mr. Shashank Kote. Then at
the end of my internship at Shilpa Medicare Limited I submitted company report.

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Current prospects of Shilpa Medicare Limited:

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Future prospects of Shilpa Medicare Limited:

Shilpa Medicare is diversifying with innovative healthcare offerings like transdermal patches,
oral films, biologicals and biosimilar drugs. This strategic expansion underscores the
company’s commitment to advanced therapeutic solutions, catering to diverse medical needs.

Shilpa Medicare has established a state-of-the-art manufacturing facility, Unit VI (Dabaspet,

Bengaluru, Karnataka), dedicated to the production of transdermal patches and oral films.
Transdermal patches and oral films have gained global acclaim as potent alternatives to
traditional therapies in healthcare.

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My Learnings:
An internship in the accounting and finance department at Shilpa Medicare Limited has
provided me with valuable learning experiences and insights into the real-world application
of accounting and financial concepts and practices. Some key learnings gained from my
internship are-

1. Financial Software: Learning with financial software and tools, such as SAP and
Excel are key skills developed during my internship.

2. Audit and Compliance: I have been exposed to the audit process and the importance
of maintaining proper documentation and controls to ensure compliance with
regulations and standards.

3. Professionalism and Time Management: I developed essential professional skills

including time management and meeting deadlines.

4. Teamwork and Communication: Working with colleagues and other departments

taught the importance of effective communication and teamwork in achieving
financial objectives.

5. Problem-Solving: Overcoming financial challenges and finding practical solutions to

financial issues is a key skill in finance.

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SWOT Analysis:

A SWOT analysis is a strategic planning tool that stands for Strengths, Weaknesses,
Opportunities and Threats. It is a comprehensive framework used to assess and evaluate the
internal and external factors that can influence an organization’s current and future position.
Below is the SWOT analysis of Shilpa Medicare Limited:

Strengths:

1. Specialization in Oncology: Shilpa Medicare has established a strong presence in the

field of oncology, which is a critical and growing segment in the pharmaceutical
industry.

2. Global Market Reach: The company exports its products to over 70 countries,
indicating a broad global footprint and diverse market access.

3. Innovation and R&D: Shilpa Medicare’s commitment to research and development,

including investment in innovative technologies and products, positions it to stay
competitive and adapt to market changes.

4. Quality Standards: The company adheres to international quality standards and

certifications, ensuring that its pharmaceutical products meet stringent regulatory
requirements.

5. Operational Efficiency: The emphasis on operational efficiency and supply chain

management reflects a commitment to delivering high-quality products reliably.

Weaknesses:

1. Market Dependency: While the oncology focus is a strength, there's a risk of market
dependency. Shilpa Medicare may benefit from diversifying its therapeutic (healing)
areas to reduce vulnerability.

2. Regulatory Compliance: The pharmaceutical industry is subject to evolving and

complex regulations. Ensuring full compliance with these regulations can be a
challenge.

3. Competition: The pharmaceutical industry is highly competitive. Shilpa Medicare

must continue to innovate and adapt to maintain a competitive edge.

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 4. Market Trends: The company should remain vigilant about changing market trends,
such as the growth of biotechnology and personalized medicine.

5. Sustainability Initiatives: While Shilpa Medicare emphasizes sustainability, the

company must continue to enhance its sustainability efforts and social responsibility
to align with global goals.

Opportunities:

1. Diversification: Exploring new therapeutic areas and products can provide growth
opportunities and reduce dependency on a single market segment.

2. Market Expansion: Expanding into emerging markets or underserved regions can

lead to additional revenue streams.

3. Strategic Partnerships: Forming strategic partnerships and collaborations can

facilitate access to new technologies and markets.

4. Innovation: Fostering a culture of innovation can lead to the development of novel

pharmaceuticals and therapies, meeting unmet medical needs.

5. Sustainability Focus: Investing in sustainability initiatives can resonate positively

with stakeholders and open up new markets, especially in eco-conscious regions.

Threats:

1. Regulatory Changes: Navigating evolving and diverse global regulatory changes in

the pharmaceutical industry can be challenging.

2. Market Volatility: The industry is prone to market fluctuations, pricing pressures,

and changing exchange rates, which can impact profitability.

3. Competition: Staying ahead of competitors, particularly in the field of oncology,

requires constant innovation and differentiation.

4. Economic Factors: Economic conditions, both nationally and internationally, can

influence financial performance and market access.

5. Global Health Trends: Adapting to global health trends, such as the rise in chronic
diseases is critical for pharmaceutical companies.

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Conclusion:

Shilpa Medicare Limited is a pharmaceutical company with notable strengths in its

specialized focus on oncology, extensive global presence, commitment to research and
development, adherence to quality standards and operational efficiency. These strengths
position the company well in the competitive pharmaceutical industry.

However, the company faces significant threats and weaknesses, including a potential over-
reliance on the oncology segment, the need for ongoing regulatory compliance, the highly
competitive nature of the industry, the necessity to adapt to changing market trends, and a
continued commitment to sustainability initiatives.

Shilpa Medicare has various opportunities to pursue, including diversification into new
therapeutic areas, expansion into emerging markets, forming strategic partnerships for
innovation, and a focus on sustainability, aligning with global environmental goals.

The company also faces threats such as evolving regulations, market volatility, intense
competition, economic factors and the need to adapt to shifting global health trends.

In conclusion, Shilpa Medicare Limited is well-established and positioned to thrive in the

pharmaceutical industry, but it must address its weaknesses and challenges while capitalizing
on opportunities to ensure its future success. Proactive measures to diversify, expand,
innovate and enhance sustainability efforts will be essential for long-term growth and
competitiveness in this dynamic industry.

Recommendation:

1. Market Concentration: To mitigate the risk associated with an over-reliance on

oncology, Shilpa Medicare should consider diversifying its product portfolio.
Investing in research and development to explore new therapeutic areas, such as
immunology, cardiovascular or rare diseases, can provide growth opportunities and
reduce market dependency.

2. Regulatory Compliance: To address regulatory challenges, the company should

establish a dedicated regulatory affairs team or department. This team can closely
monitor and adapt to evolving regulations, ensuring that all products and processes
comply with local and international standards.

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 3. Intense Competition: Shilpa Medicare should continue to prioritize innovation. The
company can invest in the development of unique formulations, novel drug delivery
systems or proprietary technologies. Continuous efforts to improve product quality
and effectiveness can help maintain a competitive edge.

4. Market Trends: Adapting to changing market trends requires agility and foresight.
Shilpa Medicare should actively monitor industry trends and invest in research and
development to align with emerging therapeutic areas and patient needs.

5. Sustainability Initiatives: Enhance sustainability efforts by implementing eco-

friendly practices in manufacturing and supply chain operations. Consider obtaining
environmental certifications and communicate the company’s commitment to
sustainability through transparent reporting.

By implementing these solutions, Shilpa Medicare can address its weaknesses and mitigate
the impact of external threats. Simultaneously, the company can take advantage of the
opportunities identified in the SWOC analysis such as diversification, market expansion,
strategic partnerships, innovation and sustainability initiatives, to ensure future growth and
competitiveness in the pharmaceutical industry.

References:

1. Shilpa Medicare Limited’s official annual reports, financial statements and investor
presentations.

2. Information and publications available on Shilpa Medicare’s official website

(https://www.vbshilpa.com/).

3. First-hand information from SML’s employees.

4. www.bseindia.com

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