Nagarjuna Herbal Concentrates Limited

NAGARJUNA HERBAL CONCENTRATES LIMITED

INDUSTRY PROFILE

Ayurveda is the 5000 year’s old Indian System of medicine. The term evolved

from two words Ayur life and Veda means science .This system of medicine follows a

holistic approach, diagnosing not just the disease but the whole body constitution of the

patient. Today Ayurveda is gaining global popularity .The World Health Organization

recognizes Ayurveda as an alternative system of alternative system of medicines used

safest system of medicines.

Rejuvenation and therapeutic procedure are unique to Ayurveda .This comprehensive,

multidisciplinary system of medicine offers specialties like paediatrics, genetics

gynaecology, physiotherapy and rejuvenation.

Ayurveda was predominant in Kerala and most of the other parts of the India for

a long period .But newly developed fear of the side effects and long term ill effects of

allopathic medicines coupled with inefficiency to compact a large number of diseases

have brought the attention not only Kerala and India but whole world to the biologically

based medicines. Now it is the resurrection time of the science. A large number of new

organizations in India are entering in the area of Ayurvedic medicines manufacturing.

The curiosity of the whole world is to high and research and development taking place

all over the world in this science. Companies like Dabur and Himalaya are as strong as

any allopathic medicine company. A large number of new organizations in India are

entering in the area of Ayurvedic medicines manufacturing. The curiosity of the whole

is too high and the research and development taking place all over the world in the area

of this science. Companies like Dabur and Himalaya are as strong as any allopathic

medicine company. A large number of allopathic medicine manufacturing has started

including Ayurvedic medicines in this production list. Nagarjuna this small of Kerala

cell Ayurveda medicines to a tune of 20% of the total allopathic sales with number of

doctor’s institutions and medical shops not favourably comparable like this.

Apart from Ayurvedic medicines which is based on the traditional Indian

system of diagnosis and treatment. A large number of herbal medicines are also

available in the world market. In fact the growth of the market shores of these products

suppresses the growth of Ayurvedic market by several times. Easy method of

administration, convenient dosage, more easily understandable scientific explanation

RAJIV GANDHI INSTITUTE OF TECHNOLOGY 1


makes it more attractive. More over the possibility of the standardization of herbal

medicines is better than the Ayurvedic medicines.

Any how growth is visible in different fields like traditional classical medicines,

herbal cosmetics etc. the herbal medicine market shows a very fast growth all over the

world and its potential is extremely good.

Ayurveda practiced in India using 100% botanical preparation helps to maintain

a healthy mind and body. Ayurveda has excellent remedies for diseases like

rheumatic disease, arthritis, paralysis, spondylitis etc visit Kerala in Indian Ayurveda

offers the Ayurvedic system of traditional form of medicine from India in which people

are treated as combination of Tridoshas or bio forces. Ayurvedic science dealing not

only with the treatment of some diseases but a complete way of life. Ayurveda deals

with Panchakarma cleansing and therapeutic treatment using herbal preparation

medicated oil manufactured as per the scared books of Ayurveda Dhanwanthari the God

of Ayurveda as per the Vedas.

Ayurveda is the science of life and congevity has a history long as human

civilization and even beyond. Ayurveda consider the nature as the prime provider of life

.Ayurveda is one of the great gift of the sage of ancient India to mankind and is

accepted as the oldest scientific medical system, which a ling record of clinical

experience .Ayurveda aims at physical, mental, and spiritual wellbeing of human being.

Ayurveda treats man as a whole; is a combination of mind and soul

Ayurveda=Ayur+Veda

(Time of Birth to Death)+ (knowledge)

Nobody can point any particular period about the origin of Ayurveda. Since is

mentioned as annadi in the text. Veda’s are the earliest literature available in India.

Ayurveda is considered as the branch of Adharva Veda, one among the four Veda’s viz:

Rig, Yejur, Sama, and Adharva. Ayurvedic scholars from subsequent generations

collected the material scattered and the Vedas and arraigned them systematically from

Samhithas.Ayurvedic treatment divided into eight segments such as Kaya

Chikitsa,damsht chikitsa,Jara Chikisa and Vaisha Chikitsa.



COMPANY PROFILE

NAGARJUNA HERBAL CONCENTRATES LIMITED (NHCL)

Nagarjuna is a paradigm shift among Ayurvedic companies in that Nagarjuna

was the first corporate House in the Ayurvedic sector in Kerala as a against the family

owned Ayurvedic organizations .Beginning commercial production in 1989, Nagarjuna

has today notched up a preeminent position among frontline Ayurvedic companies,

marketing a board spectrum of Ayurvedic medicines and has achieved commendable

sales with national and international presence.

THE ENTRPRENEUR

Nagarjuna was established in the year 1989 by Sri. V.G. Devadas Nampoothirippad

with a few expert in the in the field of ayurveda in the board of management

THE FIRST

Nagarjuna has several first to its credit .Some of these pioneers are

The first to create synergy between Ayurveda and Ashtavaidia schools of

through in Ayurveda.

The first to take the franchise model of business to service health needs,

on wide scale, across the state of Kerala, particularly to the rural area.

The first to provide consistent focus on R&D actives in Ayurveda sector

in Kerala and established a full-fledged facility for the same.

The first to create widespread awareness of medicinal plants among

people and to make its cultivation a popular as well as income generating

programme.

The first to use modern promotional methods such as TV advertising on

a large scale to propagate Ayurveda.



THE GROUP

Nagarjuna Ayurveda Group presently consists of the following organizations.

NAGARJUNA HERBAL CONCENTRATES LTD (NHCL)

The flag company and the GMP Certified manufacturing facility, which began

commercial production in 1989, is situated at Alakode Panchayat, Thodupuzha in

Kerala.

NAGARJUNA AYURVEDIC CENTRE LTD (NACL)

Is the hospital providing authentic Ayurvedic Treatments, situated on the banks of

Periyar at Kalady in Kerala, in an atmosphere of tranquillity and scenic charm

NAGARJUNA AYURVEDIC RETEAT LTD (NARL)

A holistic health care centre which provide alternative therapies besides Ayurveda,

including classes in Indian philosophy and culture / well supported by a well stocked

library .Began operation in 2006 at Moolamkuzhi east of Malayattoor in Kerala.

NAGARJUNA RESEARCH FOUNDATION (NARL)

Is a charitable trust whose trustees are eminent personalities in society ,besides

research activities ,NRF has done yeoman service in popularizing the cultivation of

MEDICINAL PLANTS ,through various activities such as planting and distribution of

sapling ,imparting technical advice, considering classes and giving awards yearly

(Oushadhamitram award) So far it has distributed over 25 lakhs sapling across Kerala.

Nature of business carried

The company is mainly dealing with Ayurvedic products and services. Manufacturing of various Ayurvedic products and development of new medicines and treatment methods which are suitable and without any side effects to the costumers.

The company provides assistance to all its group institutions and the institutions in the same field with its products and other services



Vision, Mission and Quality policy

Vision

To be the best solution provider in the health care through Ayurveda

Take actions that strengthen the company and inspire the best in other ( by

setting an example in relationships, integrity, honesty, humility and hard work)

Mission

“Restoration of Ayurveda to its original glory”

Quality policy

Focusing on process and customer

Developing and empowering people

Encouraging creativity, innovation and team work

Using effective information technology

Product profile

Nagarjuna has 427 traditional medicines and 27 patent medicines.

A. . TRADITIONAL MEDICINES

The important traditional medicines of Nagarjuna are:

1. Arishtams

2. Asavams

3. Oils

4. Kuzhambus

5. Ghurutham

6. Lahyams

7. Tablets

8. Avarthis

9. Choornams

10. Kashayams

11. Kashaya choornams



1. Arishtams

These are fermented types of medicines prepared adding honey , Jiggery ,

sugar and the powder of some medicines including spices .These preparations

will have an alcohol content of 6-10% , which is generated due to the

fermentation process .Self –fermented preparations using Kashayams are called

Arishtams and using boiled and cooled water or juice of herbs is called

Asavams.

Abayarishtam

Amruitharishtam

Asokarishtam

Balarishtam

Dasamoolarishtam

Dasamoolajeerakam

2. Asavams

Aravindasavam

Bhringarajasam

Chandanasavam

Kanakasavam

Kumaryasavam

Lohasavam etc.

3. Oils

These are medicated oils. Decoction juice, milk etc, is added to oils like sesame

oil, coconut oil or and is heated with powdered raw drug, until the water content

evaporate completely. In this process, the medicinal extracts of the raw drugs

make the oils medicated.

Amruthaadhithailam

Arimedhashilam

Brahmeethailam

Balaaguloochuaadithailam

Eladi thailam



4. Kuzhambu

These are only for external application, unique to kerala. A mixture of sesame oil,

ghee and caster oil substitutes oil base of medicines for external application.

kottam chukkadi kuzhambu

panchasnecham

dhanwntharam kuzhambu

eladi kuzhambu

kaarpasathyaathi kuzhambu

saharachari kuzhambu

5. Ghurutham

Ghuruthams are medicated preparations of ghee. Ghee is medicated by adding

decoction, power, juice etc are processing until the ghee becomes medicated add

water freely.

Amrutharaasha ghurutham

Brhami ghurutham

Swaaraswatha ghurutham

Kalyanaka ghurutham

Thriphala ghurutham

7. Lehyams

Lehyams are semi- solid preparation of drug, prepared with the addition of jiggery

or sugar candy and boiled with the prescribed liquid and fine power of drugs, until

the correct constituency is obtained.

Agasthya Rasayanam

Ajamamsa Rasayanam

Chinchady Lehyam

Narasimha Rasayanam

Mahibhara Lehyam

8. Tablets



Chandrapra Gulika

Chukkumthippladhy Gulika

Kankayanam Gulika

Karuttha Gulika

Dhanandhraram Gulika

9. Aavarthies

Aavarthies come under the category of medical oil. Here the selected quantity of

oil being medicated by adding medicines repeatedly. The process of medication is

repeated to 7, 14, 41, to101 times. This enhances the potency of oil.

Dhwanandhaaram 21 Aavarthy



10. Choornams

Choornams are preparation made from into power from using heavy

pulverized

Ashta Choornams

Elaadigama Choornams

Hinguvancadi Choornams

Raasanadi Choornams

Thaaieespatradi Choornams

11. Kashayams

Disintegrated drugs are concentrated and extracted into water. The drugs

are boiled in water and are concentrated

Punarnnavady Kashayams

Naadi Kashayams

Dhashamoola Kashayams

Balaageerakadhi Kashayams

Indukandham Kashayam

12. Kashaya Choornams



Amruthotharam Kashaya Choornams

Aaragwadham Kashaya choornams

Balaguloochyaadi kashaya choornams

Dasamoolakaduthirayam kashaya choornams

Dasamoolam kashaya choornams

B. PATENTS-PROPERIETARY MEDICINES

The important patents –proprietary medicines of Nagarjuna are

1. CARDOSTAB TABLET

Effective in hypertension due to any cause

2. GASON

It is a strong anti-flatulent drug

3. HAEMATONE

Ideal medicine for splenetic and hepatic disorder

4. HALIN

Effective in common cold, nasal congestion and sinusitis

5. NAGARJUNA ELADASAMOOLA LEHYAM

For all kinds of cough, sore throat and dyspnoea

6. NATURAL TABLETS

For gas troubles, in-digestion etc.

7. RHEUMATIC BALM

External application in rheumatic etc.

8. SMRITHY GRANULES

It improves the normal brain functions. Excellent in improving memory, grasping

power intelligence thinking power especially in children

9. THALIS PATHRATHI TABLETS



Effective for cough, distaste, spruce and sore throat

10. NAGARJUNA HONEY

Honey packed in small bottles for use in homes and with food

OVER THE COUNTER PRODUCTS (OTC)

Name Packing

Ayurvedic tooth powder 50 g

Chyavanaprasam 250, 500 g 1 kg

Dandruff hair oil 100 ml

Digest drops 25 ml

Kerapookuladi Lahyams 400 g

Kids oil 100 ml

Nagarjuna agmark honey 50,100,200,500 g

Nagarjuna ayurvedic soap 15,75 g

Nagarjuna snana choornam 50 g

Nagarjuna thali podi 50 g

Neelibringadi keream 100 ml

Special eladasamoola lehyam (40g) 1 jar

Tusker balm 10 g

Area of operation

The company has not limited its operations to the Boundaries of Kerala alone, but has

extended to 17 states outside Kerala. The main areas of operations are Karnataka,

Andhra Pradesh, Goa, Delhi, Maharashtra, Gujarat, U.P, M.P, Rajasthan, Orissa, and



Uttaranchal. Nearly 150 franchises with services of Doctors and quality medicines are

already operating in outside Kerala.

Russia, Sri Lanka, U V, Bahrain etc. are some new market, which they have opened last year. They have already started a treatment centre in West Indies. Nagarjuna presences in exports now extend to Asian, South American and Middle East markets, operations have ready been started to countries such as Canada, Kuwait and other Gulf Countries, Singapore etc...

Unlike the other market, these markets are steady market where the company gets

consistent businesses.

Ownership pattern

Authorised share capital - Rs. 50000000

Issued, subscribed & paid up Capital - Rs. 26480000

Earnings per share - Rs. 1.68

Reserves and surplus - Rs. 30218000

(Of the above shares 180772 shares has been issued as fully paid up bonus shares)

Key personnel:

Managing director - V.G. Devdas Namboodiripad

Directors - P.S.Vijayakumar

- P.P.Namboodiri

- Leena Devdas

- V.G.Jathaveedan

- K. Rajan

- Vaidyabhooshanam K. Raghavan Thirumulpad

Bankers - State Bank of Travancore, SME

Branch Kalamassery



Competitor information

The major competitors of Nagarjuna Ayurvedic group are the following companies:-

i. Kottakkal aryavaidysala

ii. Ashtavaidyan Thaikkattu mooss Vaidyarnum Oushadhasala

iii. Pankaja Kasthuri herbal India limited

iv. Dhanwanthari vaidyasala

v. SD Pharmacy

vi. Oushadi

Among them the most popular or more competing companies are kottakkal

aryavaidyasala and oushadi oushadasala. A comparison between Nagarjuna and these

companies performance are as follows.

PARTICULARS NHCL KOTTAKKAL OUSHADI

MARKET SHARE 36% 28% 18%

NO.OF PRODUCTS 480 505 340

LABOUR FORCE 500 510 400

CUSTOMER

SATISFACTION

71% 69% 58%

Infrastructural facilities

The company is set up in about 8 acres of land. There are three blocks of buildings to

run the business. It does not have its own medicinal plants garden. But they provided

the necessary seeds to the local people n let them grow the plants in their own garden

and procuring from them. It has various types of plant & machines to process the



various medicines. The various types of machines and tools that are used to develop the

products are:-

Decentigator

Pulp razor

Drug boiler

Pans –open pans and close pans

Fermentation tanks

Filling machines

Evaporator

Pressing machines

Tabletting and capsuling machines

Canteen

The canteen facility is provided to employees. The canteen runs on contract basis with

the required terms and conditions. All the employees are provided with free canteen

facility and for this purpose there are some charges which they have to pay per year.

Health

The premises of the company are kept clean. Accumulation of dirt and refuse is

removed daily. All the machines and equipment used are cleaned regularly.

Ventilation and temperature

The company is well ventilated and free circulation of free and fresh air ensured. There

are measuring instruments to measure the temperature as most of the part performed

with the help of heat.

Lighting

Every part of the work place is provided with lighting and artificial lighting is present.

Drinking water



Clean and cool drinking water is provided to employees of the company. The water

provided is purified only.

Toilet facilities

Latrine and urinal accommodation is provided and maintained cleanly and provided

separate latrines for men and women.

Achievements/ Awards

Nagarjuna Herbal Concentrates Ltd is also the first corporate house in the Ayurvedic

sector in Kerala. It also has the certification of ISO 9007:2000 and the GMP (Goods

manufacturing Practices) certification. It has also got The Green Channel Award from

the Tourism department.

Work flow model

The work flow of Nagarjuna herbals concentrates Ltd are in the following way:-



.

Future growth and prospects


PROCUREMENT OF RAW MATERIALS

WARE HOUSING

POWDERING

PROCESSING

QUALITY CERTIFICATE FROM CONTROLLER

PACKING

DESPATCHING


Company will continue to focus more into providing quality Ayurvedic Treatment .The

infrastructure and other are being modernized to meet the changing demands .The

demand for quality Ayurvedic Treatment is increased and the most interesting factor is

that , people from abroad is showing involving in Ayurvedic Treatment . Company is

taking well efforts to capitalize this “Global Interest’ in Ayurvedic by providing quality

Treatments. This will help the company to grow both in terms of turnover and profits.

The company may also introduce certain quality products such products are developed

by the Research and Development Section of the company .The company may

introduce highly promotional strategy in Ayurveda. It will influence the more

consumers in the world wide. The company may develop various activities like

advertisement, free medical camp, seminars etc.

The company have the following plans to be implemented for the future growth and

prospectus:-

1) Continuation of new product development and form change of existing products

2) Standardisation of quality parameters of existing range of products

3) Development of new products range for selected diseases and general health

care

4) Collaborative research with renowned institutions

5) GLP accreditation



McKENSY’S 7S FRAME WORK



MCKENSY’S 7S FRAME WORK


STRUCTURE

STRUCTURE

STAFFSTAFF

SYSTEMSSYSTEMS

STYLESTYLE

SHARED VALUES

SHARED VALUES

STRATEGY

STRATEGY

SKILLSSKILLS


It’s all very well devising a strategy, but you have to be able to implement it

if it’s to do any good. The seven S frame works first appeared in “The Art of Japanese

management” by Richard Pascal and Antony Athos in 1981. They had been looking at

how Japanese industry had been so successful, at around the same time that Tom Peters

and Robert waterman were exploring what made a company excellent. The Seven S

model was born at a meeting of the four authors in 1978. It went on to appear in “In

search of excellence” by Peters and Waterman, and was taken up as a basic tool by the

global management consultancy Mckensy: It’s sometimes known as the Mckensy’s 7S

model.

SOFT Ss

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and

were termed as “soft Ss” by Mckensy:

Skills

The capabilities and competencies that exist within the company.

Shared values

The values and beliefs the company have. Ultimately they will guide employees

towards “valued” behaviour.

Staff

The company’s human resources and how they are developed, trained and motivated.

Style

The leadership approach of top management and the company’s overall operating

approach.

HARD Ss’

The three Ss across the top of the model are described as “Hard Ss”:



Strategy

The directions and scope of the company over the long term

Structure

The basic organisation of the company, its departments, reporting lines, areas of

expertise and responsibility and how they are inter- related.

Systems

The Formal and informal procedures that govern daily activities covering everything

from management information system to the systems at the point of contact with the

customers.



1. STRUCTURE

The structure of Nagarjuna herbal concentrates ltd is in the following way



I. Production Department

The company’s structure of the production departments as follows:

The Production plant is equipped with modern

machineries and operations are organized under watchful eyes of talented physicians

and health scientists. Production and manufacturing facilities are fully geared for mass

production of Ayurvedic medicines in strict adherence to ancient Ayurvedic scriptures.

Incorporation of modern technology for mass production, upholding traditional values

makes the facilities a well- integrated synthesis of tradition and modernity. The

company’s manufacturing operations are mechanized to a large extent by making

further contributions by way of hygiene, accuracy and speed.


Production Manager

Asst. Manager

Workers

Supervisors

Department Officers


The production function involves two essential stages such as

1. Material Management Stage

2. Manufacturing Stage

In material management stage, arranging the various raw material in the production

form. In this stage the supervisors are check the quality of the material using the

production process. The company may adopt the MRP (Material Requirement

Planning).

In manufacturing stage, the raw materials are converted in to final product of the

company .In Ayurvedic product area the quality and effectiveness is more important. So

the company may appoint various supervisors in various production levels. The

supervisors are highly skilled and trained. They are checking the Quality and Quantity

of .specialized equipments. The production manager should prepare work study and

recording the production procedure .The production manager developed techniques that

focused on economic efficiency in manufacturing and recording the production

procedures.

II. Marketing Department

The structure of the marketing department of the organization as follows:


Marketing Manager

Sales Representatives

Area Sales Manager

Department Officers


Nagarjuna has emerged as one of the top –most leader of Ayurveda Market in

Kerala by means of its marketing strength. The core of the marketing network is a chain

of exclusive franchisee clinics spread over the states of India namely Kerala,

Tamilnadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Goa and Delhi.

Nagarjuna has a very good and wide marketing net work, which includes over

800 franchisee outlets in the state of Kerala and 150 franchisees outside the state. The

unique features of these franchisee clinics are the availability of a doctor and

availability of Nagarjuna brand medicines at all times. Sales depots service these

franchisees. There are four sales depots in the state of Kerala. The entire marketing

operations are controlled from the Head Office situated at Thodupuzha of Idukki

district.

The marketing program includes propagation to Ayurvedic, which is facilitated

through sales promotion programs, social promotion programs, social marketing

activities like medical camps, seminars, awareness camps etc.

III. Finance Department

The company structure of financial department as follows:

The main objectives of financial department as follows:


Asst. Manager

Asst. General Manager (Finance)

Executives

Office Assistance


Planning and controlling of firms financial resources

Managing the fund raising program

Determining the various investment opportunities

Prepare accurate accounts and statement of business operation

Determine the financial position of the company

To take dividend policy decision

Arranging the working capital at timely

Determining and analyzing the various accounting ratios

To prepare effective and efficient budget in periodical manner

Participating the company’s future growth planning programmed

In financial department all the office works are computerized .So the account

works are quick and accurate.

IV. Human Resources Department


Legal Officer

Executives

Dept. Staff

Personnel officer

HR Manager


The main functions of Human Resource Department are:

Selection

Select the appropriate Human Resources in the

organization

Recruitment

Search for prospective employees and stimulating them to apply for job in the

organization. The company may choose internal and external sources for the

recruitment function.

Training and Development

The company provides quarterly or yearly training and development programme

to the employees of the organization. This program will be helpful for:

Increasing productivity

Increasing morale of the employees

Increasing organizational stability

The company provides both on the job and off the job training programme.

V. Maintenance Department


Maintenance officer

Technicians


The Main functions of this department are follows:

Building and civil construction supervision

Maintaining equipments, machinery, material handling equipments, tools,

metrology tools, office equipment (computer, fax, Photo copy machines) etc.

Maintenance is an essential activity in every manufacturing firm .This department

managing the day to day problem of keeping the physical plant in good operating

condition.

VI. Purchase Department

This department held with the purchasing function of the organization. The main

functions are:

Purchasing right and required quality raw materials in appropriate time

Purchase machinery, office furniture, tools etc.

Purchasing the office assisting things like papers, pen, printing equipments etc.

Selecting suitable suppliers

Determining the materials stock levels Like EOQ (Economic Order Quality)

Recorder period etc.


Purchase manager

Assistant manager

Store manager


VII. Sales Department

This department may planning and controlling the sales activities of the concern .This

department is more important is more effective because sales turnover is the most

important factor in company’s growth level .This department is coordinating the all

sales action of the company. Exporting action is also controlled by the sales department.

The main functions of the department are the following:

Determining distribution channel

Selecting agency

Collecting the sales report and analyzing that report

To achieving the sales targets of the company

To maintain proper sales procedure

The sales department is also coordinate with the marketing department of the company.

VIII. Research and Development

The Nagarjuna group holds the second position in the industry .This has been

possible through a systematic R&D programme under the able guidance of the

Technical Directors like Vaidyabhidhanam K.Raghavan Thirumulpad who is a modern

Rishi of Ayurveda . The highly trained teams of scientists and physicians from different


AGM

Manager

Depot managers


have successfully developed several valuable formulations which have helped the group

of set new standards of excellence in natural healthcare.

The R&D division has evolved stringent methods of analyzing and testing of raw

material and end products .A dedicated team of Research Scientists and quality experts

are engaged in research and development of new formulation and standardization of

drugs. The Team led by persons of proven experience and creativity are focusing at

Raw material standardization and sharing of the technology with the industry.

Production development with proof in allopathic language

Process R &D for production process standardization

Presenting the traditional products in the modern convenient forms

Nagarjuna has been successfully established standard parameters for medical herbs,

operating procedures in the manufacturing process as well as developed and fixation of

scientific criteria for the different classes of finished goods (medicines) .Introducing

standards in to packing also is an objective of this Research and Development wing.

Skill

A skill is the ability, knowledge and understanding to accomplish a task. Skills may be

defined as what the company does best that distinctive capabilities and competencies

that reside in the organisation.

The major skill that the employees in the organization required is experience. The

workers should have reasonable theoretical as well as practical knowledge in the

specified fields.

Style

The company have various departments for their functioning. The activities of

marketing departments are de-centralised manner whereas distribution is through



various depots which consist of 2-3 districts of the state. Rest of all the departments’

activities are centralised.

The employees in the process of manufacturing are skilled to their own operation. The

supervisors in the various levels and field are having high attitude to motivate the

employees to achieve the organisational goals

The middle level and the top level management are highly dedicated and they can

coordinate the various functions.

The styles used by the NHCL are:

a) Top down approach

b) Authoritarian approach

a) Top down approach

It is a style of decision making where all the decisions flow from top management to

lower level workers. In this mill each and every decision is taken by management only.

The worker should not be involved in taking decisions. The decision taken by the top

management in day-to-day operation of the mill is: Salary increment, infrastructure

facilities, uniform decision etc.

In certain rare cases management using bottom-up style. The workers can give there

suggestions.

b) Authoritarian approach

The NHCL follows the authoritarian style of management. The management is all

powerful in the mill. The centralized decision making process follows in the mill

Conducting of the meeting

Mills rules and regulation

Deciding of auditor



Strategy

The company has various strategies which are formulated on the basis of the vision,

mission of the company. The main strategy is to carry on the business in such a way

where the customers and employees are kept as the supreme and satisfied.

NHCLs strategy is to attain total competence in their quality products

has served as the building block for creating a good brand. NHCL is focusing on the

well relationship with the employees.

The route the organization has to choose for its future growth, a plan that

the organization formulates to gain a substantial competitive advantage.

The management is not only targeting the Indian market but also the foreign

market. They are also thinking of increasing the sales within the country

Strategies are introduced to compete with the new upcoming

competitions because of the globalization. New marketing strategies are being

introduced by them

Cost cutting strategies

Operational excellence

Product innovation

Customer intimacy

System

All the departments in the company have their own information systems and are fully

computerised. Each and every department have its own systems and the company have

a common management information system. The company have a separate IT

department for setting up new and effective information system for different levels. The

major information systems in the company are



Merit rating system

After training is conducted performance appraisal of trainees is done in the mill.

Management will observe the candidate for 3 months after the training. Training -in -

charge observes of the trainees the attendance, discipline, dependability, interest on

work, job knowledge, skill etc.The method used in performance appraisal is Ranking

method.

Behaviour ranking method

Under this method, “the supervisor or the evaluator rates or arranges his men in order of

merit from the most efficient”.

In this method they will rank the employees depending upon the criteria like attendance,

working performance, behavior. The criteria and marks for ranking are given below:

4 marks for attendance, 3 marks for work performance and 2 marks for behaviour.If the

trainee scores good marks, the wages will be increased from Rs50 to Rs60 or from Rs

60 to 70, depending on performance. If the trainee scores the marks the trainee will be

removed from the job.

Staff

The company have around 500 workers which are employed to carry out the various

works of the company. Out of these 500 around 200 people are management staff and

rest of them are lower level workers. The company have got a lot number of dedicated

workers and they have been provided with attractive salary packages. In general, the

average salary package is Rs. 10,000 for administrative staff and Rs.8500 for lower

level workers.



Shared values

Nagarjuna herbals concentrate limited has got its own prestige and status among its

customers and competitors. Nagarjuna group stands the second largest company in

Kerala in the field of Ayurvedic products. The company has got a very nice picture

among the costumers. It makes the advantage of the market leader and social

beneficiary for the state. It has its own contribution in helping Kerala in the promotion

of the tourism. The workers are are more loyal to the company.

The basic philosophy of Corporate Governance at NHCL is to achieve business

excellence and to create and enhance the value for its Customers, Employees and

Business Associates and thereby to make a significant contribution to the Economy.

The company endeavors to achieve the highest level of transparency, accountability,

integrity and responsibility by following the best practices in corporate Governance.



SWOT ANALYSIS OF NHCL



SWOT ANALYSIS OF NAGARJUNA HERBALS CONCENTRATES LIMITED

Strength:

Since Nagarjuna products are manufactured as per strict guidelines, they are able

to make high quality products.

Company has a policy of continuous development and innovation in products that

enables it to maintain high marketing share.

Frequent meeting between the owners and employers helps to build a good

employer-employee relationship.

Efficient R&D departments to develop new and efficient products.

Excellent brand image

Good costumer relationship

Wide variety of products

Good relationship between management and trade union

Good customer satisfaction index

Weakness:

Lack of enough advertisement

Low number of production and manufacturing units

Lack of enough medicinal gardens

Opportunities:

Growing market demand.

Expanding its distribution area

Link with tourism area

Development of its own medicinal plants garden

Scope for innovation of Research & Development



Treats:

Transportation problems.

Entry of duplicates

Scarcity of raw materials

Cut throat Competition (e.g.: Kottakkal, Oushadhi, Dhanwandhari)

Customers may substitute other products



SUMMARY OF ANNUAL REPORT

FOR THE YEAR 2006-2007



Summary of the financial report

Gross revenue of the company has been gone up by 411.83 lacs from the past years revenue of 1830.6 lacs. The percentage of increase in gross revenue is 22.497%

The profit before depreciation and preliminary expenses are increased by 19.16 lacs from the past years profit of 77.92 lacs. The percentage of increase in the present year than that of previous year is 24.58%.

The amount of profit transferred to general reserve in the present year is 44.54 lacs which is more by 21.43 lacs than that of previous years transfer. The profit earned by the company is transferred to general reserve which made a 17.29% increase in the reserve fund.

The company has employed its fund for the acquisition of investment in outside the company. The total of investment in the present year is increased by 28,12,930 from the balance of previous year, i.e., 91.04 lacs. Thus the increase percentage is 30.898%.

The amount of net fixed assets of the company has been increased by 20,69,631. The percentage of increase is by 5.15%. The total amount of fixed assets has been affected by the increased in depreciation rates.

The amount of sundry debtors has been increased by 12769836. It makes the company to employ more funds for its working capital management. The percentage increase in the debtors’ is 37.23%.

The net current assets of the company have been gone up by 8108391 than that of the previous year balance of 69901902. This lead to a 11.599% increase in the total net current asset for the year.

The earning per share for the year is 1.68 which is increased by 0.81 than that of the EPS of 0.87.The percentage increase in the EPS is 93.10%. Thus the company is giving a high return margin to its investors.



LEARNING EXPERIANCE DURING IN-PLANT TRAINING

The company has got a very good quality control section which provides me the

important information regarding the quality assurance in the product development.

During my in-plant training in Nagarjuna herbal concentrates limited, was a very

good experience all together. I learnt so many things about the company like how

the things are done in a company and how people work in teams. It is a company

where, even the plant manager sits down with workmen to work on machine. I got

to know how the bottle necks come when everything is going right in the

production and how to approach their remedies.

I got to learn about the functioning of the HR department as my external guide

was a personnel officer. Further I learnt how promotions were given in the

company and how the incentives and pay is raised.

I learnt the problems faced by a manager when he is leading a team of workers.

He has to understand the capabilities of each and every member of the team and

assign work according to it. Plant manager is responsible for every process through

which production happens in a plant.

I could view a friendly atmosphere in the office premises among all both in

horizontal level as well as vertical. It makes the employees feel relaxed and will not

go through a stress at the time of their work. This boosts the morale of the

employees and promotes a sense of responsibility, co-operative attitudes and good

relationships and most importantly it improves the quality.



BIBLIOGRAPHY

1. www.nagarjun.com

2. www.google.co.in

3. Kothari C.R. (1997)Research Methodology ,New Delhi: Wishwa prakasham.

4. Philip Kottler, (2001) Marketing Management – The Millennium Edition, New

Delhi: Prentice Hall of India Pvt Ltd.


http://www.nagarjun.com/


Annexure

FINANCIAL RESULTS Current year( 2006- 07) (Rs. in Lakhs)

Previous year (2005-06) (Rs. In Lakhs)

Gross revenue 2242.43 1830.6

Profit/ loss before depreciation and preliminary expenses

97.08 77.92

Depreciation and preliminary expenses

32.58 29.83

Profit (loss) before taxation 64.5 48.09

Provision for taxation 12.5 3.5

Deferred tax 4.10 17.14

Fringe benefit tax 3.15 4.35

Prior period taxes 0.21 0.00

Profit /loss carried to Balance sheet 44.54 23.11

Appropriations :

a) Proposed dividend 0.00 0.00

b) Tax on proposed dividend 0.00 0.00

c) General reserve 44.54 23.11



BALANCE SHEET

As at 31st march 2007 and as at 31st march 2006

PARTICULARS SCH. Nos.

AS AT 31.03.2007

AS AT 31.03.2006

SOURSES OF FUNDS

I. Share holders fund:

Share capital 1 26480000 26480000

Share capital advance 0 0

II. Reserves and surplus 2 30217881 25763895

III. Loan funds

A) Secured loans 3 59813033 50453076

B) Unsecured loans 4 10241000 11474000

IV. Deferred tax liability 5450000 5040000

TOTAL 132201914 119210962

APPLIACTION OF FUNDS

I. Fixed asset

Gross block 5 77774727 72951902

Less: depreciation 35525954 32772760

Net block 42248773 40179142

Capital work in progress 25918 25918

II. Investments 6 11916930 9104000

III. Current assets, loans & advances

7

a) Inventories 58367007 56618141

b) Sundry debtors 47066018 34296182



c) Cash & bank balances 1984628 5354196

d) Other current assets 105976 96145

e) Loans and advances 19199141 1418512

126722770 110549789

Less: current liabilities and provisions

8 48712477 40647887

Net current assets 78010293 69901902

TOTAL 132201914 119210962



PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2007 and 31.03.2006

PARTICULARS SCH.NOS

For the year ended 31.03.2007

For the year ended 31.03.2006

I. Income

Sales 9 224243415 183036478

Stock differential 10 384938 6069837

Other income 11 1116036 1477765

225744389 190584181

II. Expenditure

Material consumed 12 101424087 86175002

Manufacturing administrative and selling expenses

13 98478752 82747085

Excise duty 9165265 6782997

Financial charges 14 6967816 7085719

216035920 182790803

Profit/loss before depreciation 9708469 7793378

Depreciation 15 3258169 2983457

Operating profit 6450300 4809921

Less: provision for taxation

Current tax 1250000 350000

Deferred tax written back 410000 1714000

Fringe benefit tax 315000 435114

Prior period taxes 21314 0

Profit transferred to general reserve

4453986 2310806

EPS fully paid up shares 1.68 0.87



RELEVANT RATIOS

I. Gross profit ratio

Gross profit/ net sales * 100 =

9708469/ 224243415 * 100 = 4.329%

The company is performing in a efficiently where the profitability ratio shows 4.329% of its annual sales.

II. Net profit ratio

Net profit/net sales*100 =

4453986/ 224243415 * 100= 1.986%

The earning capacity of the firm is satisfactory as it has 1.986% of the annual sales as the profit margin which has to be transferred to the general reserve.

III. Current ratio

Current assets/ current liabilities

126722770/ 48712477 = 2.6:1

The company has a safe a very good current ratio as the standard ratio is 2:1 which gives the company more liquidity

IV. Liquid ratio

Liquid asset/ current liabilities =

68355763/ 48712477 = 1.403:1

The company is having a good liquid ratio of 1.403:1 where the standard ratio is 1:1.

V. Debt equity ratio

Total debt capital/ equity capital

75504033/56697881 =1.332:1

The debt equity ratio shows a satisfactory relation in the mix of debt and equity of the firm where as the optimum one is 2:1

VI. Fixed assets ratio

Fixed assets/ Net sales = 40179142/ 224243415 = 0.179: 1.



To,

The HOD,

Department of MBA

Rajiv Gandhi institute of technology

Hebbala, R T Nagar post

Bangalore

Sir/madam,

Sub: weekly report-I regarding in-plant training

I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, I am undergoing my in-plant training in Nagarjuna herbal concentrates limited on ..........., I reported to the organisation . On the first day i underwent an introduction training which was mandatory to all trainees. During this week i was told about the history of the organisation, nature of business, its competitors, vision, mission, awards and achievements.

Thank you

yours sincerely,

Tom.C.Saji

Internal guide

Prof. Pundareek vittala

Finance faculty



RGIT

To,

The HOD,

Department of MBA



Bangalore

Sir/madam,

Sub: weekly report-II regarding in-plant training

I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during this week I had been to production department, human resources department and marketing department.

Thank you

yours sincerely,

Tom.C.Saji

Internal guide




Finance faculty

RGIT

To,

The HOD,

Department of MBA



Bangalore

Sir/madam,

Sub: weekly report-III regarding in-plant training

I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, During this week i. Started the McKensys 7S frame work. I also did the study in all other departments.

Thank you

yours sincerely,

Tom.C.Saji



Internal guide


Finance faculty

RGIT

To,

The HOD,

Department of MBA



Bangalore

Sir/madam,

Sub: weekly report-IVregarding in-plant training

I am Tom.C.Saji (1RG07 MBA 51) pursuing MBA in your college, during the last week i did the DWOT analysis of the company. I also collected the balance sheet and other subsidiary datas for the project completion.

Thank you

yours sincerely,

Tom.C.Saji



Internal guide

Prof. Pundareeka vittala

Finance faculty

RGIT

1. Main entrance of the company

2. The copy of ISO certificate



3. A visit in the herbal plant garden maintained in the company compound




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