Nutra Plus Products

7/28/2019 Nutra Plus Products

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A

Summer Internship Project Report

on

Possibilities of Diversification & Enlargement of market share

at

Nutra Plus Products (India) Limited

Submitted to:-

Gujarat Technological University

Prepared by:-

SHETH JAYDEEP HARESHKUMAR

Enrollment No. 097030592003

Under the guidance of

Mr. Nishant Dhruv

MBA Department,

Atmiya Institute of Technology and Science, Rajkot,

Batch - 2009 2011

July- 2010


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DECLARATION

I, the undersigned , Sheth Jaydeep H, a student of MBA of AITS, hereby

declare that this project work entitled A SUMMER INTERNSHIP PROJECT REPORT

ON NUTRA PLUS PRODUCTS (INDIA) LTD submitted by me to the Gujarat Technological

University for the partial fulfillment of the requirement for the award of the degree of Master in

Business and Administration (MBA), is solely my own work. The report embodies the findings

and various other information based on my own study and observation of the company only and

not any else.

Place: RAJKOT

Date: / /2010 (JAYDEEP SHETH)

III


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ACKNOWLEDGEMENT

During the practical training at NUTRA PLUS- PR LTD. and while preparing this

report many known and unknown faces have directly and indirectly helped me.

I would like to take this opportunity and sincerely convey my thanks to all the people

who have helped me for the training and preparation of the report. I am extremely thankful to

SHRI MUKESH BHAI NAIK for getting me acquainted to the company and giving me the

golden opportunity to carry out this interesting training atNUTRA PLUS PR LTD.

I am grateful to each one working in the organization for their humble and generous

behavior towards me. I am sincerely thankful to the entire team of NUTRA PLUS-PR ltd. In

addition of allowing me for the industrial training of the company and study of the organization

and various aspects of the managerial functions they also provided me many details and ideas in

the preparation of this project report.

Moreover I would like to thank and express my sincere gratitude to our

, Head of MBA department Mr. Sunil Misra, My project guide Mr. Nishant Dhruv and other

faculty members of the institute, who have significantly helped and supported me and provided

me all the facilities to make my industrial training more fruitful.

PREFACEIV


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Man cannot develop himself through the theoretical knowledge .Practical

Knowledge is also required in each and every field and aspect of life, with this purpose, Gujarat

Technological University has made, a compulsory Summer Project Training for the students of

MBA. This project report prepared provides the overview of the pharmaceutical industry

together with aspects like challenges, opportunities of the industry as well as the major players in

the industry in India. After consideration of the industry the report then focuses attention on one

of the players (company) of the industry namely NutraPlus Products(India) Ltd. The overviews

of the various departments of the Nutra Plus Products (India)Ltd is then given .Finally the report

contains the recommendations and the suggestions made to the company on the basis of

Preliminary research.

V


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CHAPTER - 1

1.1 Industry Overview

INDIAN PHARMACEUTICAL INDUSTRYThe Indian pharmaceutical sector has come a long way, being almost non-

existent before 1970 to a prominent provider of healthcare products, meeting almost

95 per cent of theCountrys pharmaceuticals needs.

The Industry today is in the front rank of Indias science-based industries with

wide ranging capabilities in the complex field of drug manufacture and technology. It

ranks very high in the third world, in terms of technology, quality and range of

medicines manufactured. From Simple headache pills to sophisticated antibiotics and

complex cardiac compounds, almost every type of medicine is now made

indigenously.

Playing a key role in promoting and sustaining development in the vital field

of medicines, Indian Pharmaceutical Industryboasts of quality producers and many

units approved by Regulatory authorities in USA and UK. International companies

associated with this sector have stimulated, assisted and spear headed this dynamic

development in the past 53 years and has helped to put India on the pharmaceutical

map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000

registered units with severe price competition and government price control. It has

expanded drastically in the last two decades.

There are about 250 large units that control 70 per cent of the market with

market leaderholding nearly 7 per cent of the market share and about 8000 Small

Scale Units together which Form the core of the pharmaceutical industry in India

(including 5 Central PublicSector Units). These units produce the complete range of


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pharmaceutical formulations like medicines ready for consumption by patients and

about 350 bulk drugs and chemicals having therapeutic value and used for production

of pharmaceutical formulations.

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

for most ofthe drugs and pharmaceutical products has been done away with.

Manufacturers are free to produce any drug duly approved by the Drug Control

Authority. Technologically strong and totally self-reliant, the pharmaceutical industry

in India has low costs of production, low R&D costs, innovative scientific manpower,

strength of national laboratories and anincreasing balance of trade.

The total Indian production constitutes about 13 per cent of the world market

in value terms and, 8 per cent in volume terms. The per capita consumption of drugs

in India, stands at US $ 3, is amongst the lowest in the world, as compared to Japan-

US $ 412, Germany- US $ 222 and USA- US $ 191.

Current Status:-India's 9.4 billion US $ pharmaceutical industry is growing at the rate

of 14 percent per year. It is one of the largest and most advanced among the

developing countries.The Indian pharmaceutical industry can reach a market size of

US $ 14.6 billion by 2013.The graph of US $ in billion Vs Years is shown below. It

shows how the Indian pharmaceutical industry has grown in just time span of 5-6

years and if it continues to grow at this rate then according to the research report of

WHO it will become around 14.6 US $ industry by 2014.


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US $

Years (Source: Indian Pharmaceutical Report)

Figure 1.1

A beginning has been made with the signing of General Agreement on Tariffs

and Trade in January 2005 with which India began recognizing global patents. Soon

after, the Indian pharmacy market became a sought after destination for foreign

players. Foreign direct investment into the countrys pharmacy industry touched US $

172 million during 2005-06 having grown at a CAGR of 62.6 per cent during the

period beginning 2002-06.

A beginning has been made with the signing of General Agreement on Tariffs

and Trade in January 2005 with which India began recognizing global patents. Soon

after, the Indian pharmacy market became a sought after destination for foreign

players. Foreign direct investment into the countrys pharmacy industry touched US $

172 million during 2005-06 having grown at a CAGR of 62.6 per cent during the

period beginning 2002-06.

The sector recorded strong growth in the second quarter ended in September

2009, driven by launch of new generic drugs with 180 days exclusivity period in the

US market. The top ten pharmacy companies reported an impressive 57 per cent

growth in consolidated net profit at US $ 314.3 million, as against US $ 200.7 million

in the same quarter of the previous year, while consolidated net sales were up 51 per

cent at US $ 1.7 billion. These Statistics of the top 10 companies are shown below in

the following table:-

The sector recorded strong growth in the second quarter ended in September

2009, driven by launch of new generic drugs with 180 days exclusivity period in the

US market. The top ten pharmacy companies reported an impressive 57 per cent

growth in consolidated net profit at US $ 314.3 million, as against US $ 200.7 million

in the same quarter of the previous year, while consolidated net sales were up 51 per

cent at US $ 1.7 billion. These Statistics of the top 10 companies are shown below in

the following table:-


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Table 1.1

There are 74 U.S. FDA approved manufacturing facilities in India, more than

in any other country outside the U.S, and in 2005, almost 20 per cent of all

Abbreviated New Drug Applications (ANDA) to the FDA were filed by Indian

companies. Growth in other fields not enough generics is still a large part of the

picture. London Research Company, Global insight estimates that Indias share of the

global generics market will have raised from 4 per cent to 33 per cent by 2007 .

The focus of the Indian pharmaceutical companies is also shifting from

process improvisation to drug discovery and R&D the Indian companies are setting up

their own R&D setups and are also collaborating with the research laboratories like

CDRI, IICT etc.

The Changing Perception of the growing pharmaceutical industry:-

As per WTO, from the year 2005, India granted product patent recognition to

all new chemical entities (NCEs) i.e., bulk drugs developed then onwards. This

introduction of product patent regime from January 2005 is leading into long-term

growth for the future which mandated patent protection on both products and

processes for a period of 20 years. Under this new law, India will be forced to


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recognize not only new patents but also any patents filed after January 1, 1995. Under

changed environment, the industry is being forced to adapt its business model to

recent changes in the operating environment.

Indian pharmaceutical industry is mounting up the value chain. From being a

pure reverse engineering industry focused on the domestic market, the industry is

moving towards basic research driven, export oriented global presence, providing

wide range of value added quality products and services, innovation, product life

cycle management and enlarging their market reach. The old and mature categories

like anti-infective, vitamins, analgesics are de-growing while, new lifestyle categories

like Cardiovascular, Central Nervous System (CNS), Anti Diabetic are expanding at

double-digit growth rates.

The industry has now started to utilize the more advanced models for gaining

the faster growth. The classical models were Integrated Operations and In house

manufacturing and marketing operations. The emerging models are Contract R & D,

Contract Co-marketing and alliance. The Contract R & D model is mainly adoptable

one to the formulations area in the pharmaceutical industry. The Contract Co-

marketing and alliance model are mainly adoptable one to the bulk drug industry

especially Active Pharma Ingredients and Intermediate producing companies. There

are certain Companies also which adopt the combination of both the models such

companies are usually concentrated on the export side. Such companies often adopt

the combination strategy this significantly helps them in capturing the major market

share

The various business models that were adopted by the industry and which the

industry is now adopting are shown below.


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Figure 1.2 (Source: Indian Pharmaceutical Report)

Where: - DD & D = Drug, discovery and development

CTO = Clinical Trial Organizations

CM = Contract Manufacturing

The Indian companies are putting their act together to tap the generic drugs

markets in the regulated high margin markets of the developed countries. The US

market remains to be the most lucrative market for the Indian companies led by its

market size and the intensity of blockbuster drugs going off patent. An estimated US

$ 45 billion of drugs expected to go off patent by 2007 in US alone. The Indian

pharmaceutical industry is also getting increasingly U.S. FDI compliant to harness the

growth opportunities in areas of contract manufacturing and research. Indian


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companies such as Ranbaxy, Sun Pharma, and Dr. Reddy's are increasingly focusing

on tapping the U.S. generic market.

Outsourcing in the fields of R&D and manufacturing is the next best event in

the pharmaceutical industry. Spiraling cost, expiring patents, low R&D cost and

market dynamics are driving the MNCs to outsource both manufacturing and research

activities. India with its apt chemistry skills and low cost advantages, both in research

and manufacturing coupled with skilled manpower will attract a lot of business in the

days to come.

The Indian Government's decision to allow 100 percent foreign direct

investment into the drugs and pharmaceutical industry is expected to aid the growth of

contract research in the country. MNCs in India is facing the problem of having a very

high Drugs Price Control Order (DPCO) coverage, weakening their bottom lines as

well as hindering their growth through the launch of new products. DPCO coverage is

expected to be diluted further in the near future benefiting the MNCs.

EMERGING TREND IN PHARMACEUTICAL INDUSTRY:-

The Indian pharmaceutical industry is now discovering new opportunities of

growth in clinical research, contract research, manufacturing and innovation

opportunities. This path can lead the Indian pharmaceutical industry to huge success

endeavors.

The various areas where considerable amount of attention is now being

focused are briefly discussed as under. These areas are of major concern because by

focusing on that area the industry can significantly boost itself in line with

international industries in the same area

1) Research & Development:-


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Research & Development is the key to the future of pharmaceutical industry.

The pharmaceutical advances for considerable improvement in life expectancy and

health all over the world are the result of a steadily increasing investment in research.

There is considerable scope for collaborative R & D in India. India can offer several

strengths to the international R & D community. These strengths relate to availability

of excellent scientific talents who can develop combinatorial chemistry, new synthetic

molecules and plant derived candidate drugs.

The R & D expenditure by the Indian pharmaceutical industry is around 1.9

per cent of the industrys turnover, which is a little low as compared to foreign

research based pharmaceutical companies. However, now that India is entering into

the Patent protection area, many companies are spending relatively more on R & D.

When it comes to clinical evaluationat the time of multi-center trials, India is

providing a strong base considering the real availability of clinical materials in diverse

therapeutic areas. The emerging Scenario of the industry is described in the following

figure. There are basically four dimensions and these include contract research,

clinical research, Manufacturing opportunities and Innovation opportunities. The

contract research and clinical research are the dimensions related to the

pharmaceutical companies which are on the side of exports. While Innovation is the

strategy and dimension available to the companies in the entire sector. The companies

can emerge as the major market occupier by adoption of the innovation strategies.

Research scenario emerging in the pharmaceutical industry is shown below:-


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Indian

Pharmaceutical

Industry

(Source: Indian Pharmaceutical Report)Figure 1.3

According to a survey by the Pharmaceutical Outsourcing Management

Association and Bio/Pharmaceutical Outsourcing Report, pharmaceutical companies

are utilizing substantially the services of Contract Research Organizations(CROs).

Indian Pharmaceutical Industry, with its rich scientific talents, provides cost-

effective clinical trial research. It has an excellent record of development of improved,

cost-beneficial chemical synthesis for various drug molecules. Some MNCs are

already sourcing these services from their Indian affiliates.

2) Product Development:-

For years, firms have made their ways into the global market by researching

generic competitors to patented drugs and following up with litigation to challenge the

patent. This approach remains untouched by the new patent regime and looks to


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increase in the future. However, those that can afford it have set their sights on an

even higher goal new molecule discovery. Although the initial investment is huge,

companies are lured by the promise of hefty profit margins and the recognition as a

legitimate competitor in the global industry.

Domestic demand prevailing in the industry:-

The industry has enormous growth potential. Various factors which determine

the rising demand for pharmaceuticals are: The growing population of over of a

billion, Increasing income, Demand for quality healthcare service, Changing lifestyle

has led to change in disease patterns, and increased demand for new medicines to

combat lifestyle related diseases.

More than 85 per cent of the formulations produced in the country are sold in

the domestic market. India is largely self-sufficient in case of formulations. Some life

saving, new generation under-patent formulations continue to be imported, especially

by MNCs, which then market them in India. Overall, the size of the domestic

formulations market is aroundRs160 billion and it is growing at 10 per cent per

annum.

The market share of the different pharmaceutical product categories like

antibiotics, opthologicals, Cardiac drugs, Energy supplements and such other

categories in the industry is shown below:-


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Figure 1.4 (Source: Indian Pharmaceutical Report)

Demand for drugs for treatment of life style-related diseases such as diabetes,

cardiovascular diseases, and central nervous system are on the increase. There are

around 700,000 new cases of cancer each year and total of around 2.5 million cases. It

is estimated that there are around 40 million people in India with diabetes and the

number is rising, 5.1 million HIV/AIDS patients, and 14 million tuberculosis cases.

According to industry reports, while the Indian pharmaceutical industry witnessed a

growth of 7 percent, the cardio-vascular segment recorded 15 to 17 percent growth

and anti-diabetes segment of over 10-12 percent growth.

Exports made by the pharmaceutical industry:-

Over 60 per cent of Indias bulk drug production is exported. Indias

pharmaceutical exports are to the tune of Rs.87 billion, of which formulations

contribute nearly 55 per cent and therest 45 per cent comes from bulk drugs. In

financial year 2005, exports grew by 21 per cent.The Indian pharmaceutical market

has been forecasted to grow to as much as US $ 25 billion by the end of year 2010 as


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per Organization of Pharmaceutical Producers of India (OPPI) estimates. However,

Espicoms market projections forecast more modest but stable annual marketgrowth

of around 7.2 per cent, putting the market at US$ 31.6 billion by 2013

Domestic pharmaceutical exports, growing at 30 per cent per annum, touched

a new height of US $ 4.8 billion in the financial year 2006-07. The Years exports will

push the drug sectors contribution to Indias Exports earnings to 7.75 per cent from

the current 5 per cent. The growth in drug exports, despite the pressing generic

competition in the global market, is attributed to increased Abbreviated New Drug

Applications (ANDAs) approvals in the US market and contribution from

unconventional markets in Latin America, Australia and the emerging markets in the

Middle East and African Region.

Revenue from exports:-

The export revenue now contributes almost half of the total revenue for the top

three pharmaceutical majors: Dr Reddys, Ranbaxy and Cipla. The other major

exporters are Wockhardt Limited, Sun Pharmaceutical Industries Ltd. and Lupin

Laboratories. The formulations and exports are largely to developing nations in

CIS,South East Asia, Africa and Latin America. In the last 3 years generic exports to

developed countries have picked up. In the coming years, opening up of US generics

market and anti AIDS market in Africa will boost exports. India accounts for less than

two per cent of the world market for pharmaceuticals, with an estimated market value

of US $ 10.4 billion in 2007 at consumer prices, or around US $ 9 per capita.

India currently represents just U.S. $ 6 billion of the $ 550 billion global

pharmaceutical industry but its share is increasing at 10 percent a year, compared to 7

percent annual growth for the world market overall. Also, while the Indian sector

represents just 8% of global industry total by volume, putting it in fourth place


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worldwide, it accounts for 13 percent by value and its drug exports have been

growing 30 percent annually.

The Indian market for over-the-counter medicines (OTCs) is worth about $940

million and is growing 20 percent a year, or double the rate for prescription

medicines. The industry's exports were worth more than $ 3.75 billion in 2004-05 and

they have been growing at a compound annual rate of 22.7 percent over the last few

years, according to the government's draft National Pharmaceuticals Policy for 2006,

published in January 2006. The Policy estimates that, by the year 2011, the industry

has the potential to achieve the target of US $ 22.40 billion in formulations, with bulk

drug production going up from $ 1.79 billion to $ 5.60 billion.

Challenges and Opportunities of the pharmaceutical industry

Major Challenges of the industry:-

Underdeveloped new molecule discovery program:-

The main weakness of the industry is an under developed new molecule

discovery program. Even after the increased investment, market leaders such as

Ranbaxy and Dr. Reddys Laboratories spent only 5-10 per cent of their revenues on

R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last

year was greater than the combined revenues of the entire Indian pharmaceutical

industry. This disparity is too great to be explained by cost diffentials, and it comes

when advances in genomics have made research equipment more expensive than ever.

The drug discovery process is further hindered by a dearth of qualified

molecular biologists.Due to the disconnect between curriculum and industry, Pharma

in India also lack the academic collaboration that is crucial to drug development in the

West.


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Hue & cry against exploitation:-

In clinical testing persons from developing countries will be used to generate

data about possible effects of a drug. A feeling of unrest among them or some section

of society might develop that we are being used as guinea pigs. It might lead to

demonstrations or legislations which will hamper the growth of industry.

Back lash against outsourcing:-

Similar to BPO there might be unrest in developed nations that outsourcing of

clinical trials will lead to job loss culminating into legislation banning the whole

procedure.

Restricted items:-

There are a lot of items that are restricted under the EXIM policy from free

trading. These restrictions are a weakness for the industry and hence pose to be a

threat for its development.

Reservation for small scale industries:-

Some drugs are reserved for exclusive manufacture by the small scale units.

These are Niacinamide, Paracetamol, Glycero Phosphates, Nicotinic Acid. Corporate

Catalyst India Indias Pharmaceutical Industry. The present investment limit for units

to qualify as a small scale unit is Rs. 30 million.

No brand value:-

India has a low beep on the radar screen of MNC drug companies as no potential

clinicaltesting has been ever outsourced to India. So we have a low brand value in

global arena.


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Generic competition:-

Generic substitution is a policy for health care cost containment. National

reimbursement and insurance bodies are providing physicians and pharmacists with

incentives for prescribing cheaper generic drugs. There is increased pressure on

revenues for pharmaceutical companies, which have to concentrate on lifecycle

management. The pharmaceutical industry will experience a significant reduction in

the revenues associatedwith their blockbuster products as generic competition

captures market share. As a result given that R&D productivity is low and the cost of

developing new drugs at an all time high, the pharmaceutical industry faces

considerable hurdles with respect to maintaining revenue and earnings growth in the

future.

Opportunities in the pharmaceutical industry:-

The Indian pharmaceutical industry has a lot of strengths and hence ample of

opportunities. A few important strengths are mentioned below:-

Competent workforce:-

India has a pool of personnel with high managerial and technical competence

as skilled workforce. It has the largest English speaking population in the world.

Professional services are easily available.

Cost-effective Chemical Synthesis:-

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

beneficial chemicals synthesis for various drug molecules is excellent. It provides a

wide variety of bulk drugs an exports sophisticated bulk drugs.

Legal & Financial Framework:-

India has a 53 year old democracy and hence has a solid legal framework and

strong financial markets. There is already an established international industry and


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business community.

Information & Technology:-

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

strengths in Information Technology.

Globalization:

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

70 million middle class market, which is continuously growing.

Low priced products:-

The industry has thrived so far on reverse engineering skills exploiting the lack of

process patent in the country. This has resulted in the Indian pharmaceutical players

offering their products at some of the lowest prices in the world.

Quality assurance:-

The quality of the products is reflected in the fact that India has the highest

number of manufacturing plants approved by US FDA (61 plants), which is next only

to that in the US.

Dominance in the market:-

Multinational companies have traditionally dominated the industry, which is

another trend seeing a reversal. Currently, it is the Indian companies which are

dominating the market place with the local players dominating a number of key

therapeutic segments.

Self-reliance:-

Self reliance is displayed by the production of 70 per cent of bulk drugs and

almost the entire requirement of formulations within the country.


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Other Strengths:-

Low cost of production, Low R&D costs, innovative scientific manpower and

increasing balances of trade in Pharma sector are also significant strengths of the

Indian pharmaceutical industry.

Labor force:-

With one of the largest and most genetically diverse populations in any single

country, India can recruit for clinical trials more quickly and perform them more

cheaply than countries in the West.

Ageing and obese population:-

Health care needs will increase and drugs will be used for longer. For instance,

an ageing global population is poised to drive pharmaceutical drugs for indications

such as Alzheimers disease. Drugs that address rising multifactorial disorders such as

cancer as well as life style disorders such as obesity are also likely to experience

strong revenue growth.

Major Players of Indian Pharmaceutical Industry:-

There are five government-owned companies the Indian public sector. These

companies are the Indian Drugs and Pharmaceuticals, Hindustan Antibiotics Limited,

Bengal Chemicals and Pharmaceuticals Limited, Bengal Immunity Limited and Smith

Stanistreet Pharmaceuticals Limited.

Some of the major Indian private companies are Alembic Chemicals,

Aurobindo Pharma, Cadila Healthcare, Cipla, Dr.Reddys, Jagsonpal Pharma, Lupin

Labs, Lyka Labs, Nicholas Piramal, Ranbaxy Labs, Matrix Laboratories, Orchid

Chemical and Pharmaceuticals, Sun Pharmaceuticals, Ranbaxy Laboratories, Torrent

Pharma, Unichem Labs, and Wockhardt.


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The foreign companies in India include Abott India, Astra Zeneca India,

Aventis Pharma India, Glaxo SmithKline, Novartis, Pfizer Limited

The revenues earned by the abovementioned various companies in US $ in

billion are shown graphically as under:-

Figure 1.5 Source : (Indian Pharmaceutical Report)


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1.2 COMPANY PROFILE

BACKGROUND OF THE NUTRAPLUS PRODUCTS (INDIA) LTD.

Nutra Plus Products (India) Limited. is one of the fastest growing and one of

the most leading company of the Indian pharmaceutical industry which is actively

engaged in manufacturing and producing Active Pharma Ingredients (API) and

specialized Intermediate Products (I.P).

Nutraplus Products (India) Limited is benchmarked as a reliable source by

leading Multinational as well as leading Pharmaceutical companies.

Nutra plus Products (India) Limited has attained a global leadership in

manufacturing of various APIs and various other Intermediates. Today Nutra Plus

has strategically positioned itself as a non competing supplier to Global Generic

players in pharmaceutical industry across the country. NPIL was incorporated as a

private limited company in February 1990 and was turned into a public limited

company in June 1992. Manufacturing unit was commissioned to make APIs and

Intermediates in 1995. NPIL is engaged into manufacturing of APIs and its

intermediates.

The company has state of manufacturing facilities at Tarapur in the state of

Maharashtra. The Head quarters/Main corporate office of the company is located at

the Jogeshwari (East) Mumbai.

CORPORATE VISION OF THE COMPANY:-

To be a global life science company through innovation, cost

leadership, and optimizing the economic value creation for shareholders.


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CORPORATE MISSION OF THE COMPANY:-

To operate in existing and new business which will enhance the Nutra Products

(India) limited brands and corporate image of the company through reliability and

integrity.

To provide the customer superior products through continuous improvement in the

quality as well as superior customer service.

To strive for excellence by nurturing, developing and empowering the company

employers and suppliers.

To provide free and open atmosphere in the company and encourage conductivity to

learning and teamwork.

PROFILE OF THE PROMOTER OF THE COMPANY:-

Main promoter and Chairman & Managing Director is MR.

MUKESHBHAI NAIK. Brief Bio-data is as follows.

A Chemical Engineering graduate, aged around 54 years, had also

secured diploma in Administrative Management. From 1977 till 1983 he worked in

various chemical manufacturing companies. Job responsibilities included process

development, scale up studies, engineering and production. Employers include M/s.

Themis Pharmaceuticals, Piramal Organic Chemicals, and Shrivin Drug Pharma &

Orex Pharma. Considerable experience in making various API and their Intermediates

was gained by him. From 1983 till 1990 he worked on his own as a Project Consultant


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to provide turnkey assistance in APIs and their Intermediates. His firm was on panel

of financial institutions like IDBI, ICICI and IFCI.

In 1990 February, he marked on setting up this company as Chief promoter

and set up the manufacturing unit at Tarapur MIDC estate. From that time onwards,

he looks after the affairs of the company as full time Chairman & Managing Director.

EXCLUSIVE AND UNIQUE CHARACTERISTICS OF THE

COMPANY:-

NPIL is engaged into custom synthesis of APIs and its intermediates ,engaged

in manufacturing of its own products as well as exclusive custom synthesis for Indian

MNCs .NPIL is pioneer in handling hazardous chemicals and reactions, some of the

reactions specialized by NPIL are as follows:

Nitration, Halogenation, Friedel Krafts Reaction, Bromination, Reduction,

Methylation with Dimethyl Sulfate, Amidation, Amination, High Pressure Reactions,

Condensation, Reaction in Liquid Ammonia, Diazotisation,

Moreover the company has also a very long about 19 years experience in

handling hazardous chemicals and solvents the company has readily handled the

following chemicals in bulk like Dimethyl Carbonate, Liquid Bromine, Na Metal,

Oleum.Various Certifications Obtained by the Company:-

Tarapur based manufacturing facilities hold the following major accreditations:-

NPIL has local schedule M CGMP certification, Indian FDA approved and certified

facilities, NPIL is a member of local CETP ( Common Effluent Treatment Plant),

hence the effluents are sent to the CETP for treatment and disposal.


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Manufacturing facilities of the company:-

NPIL has local Schedule M CGMP certification and has FDA approved

facilities by Indian FDA.NPILs main manufacturing unit is located at Tarapur, in the

state of Maharashtra. NPIL facility comprises of 25 reactors, Centrifuge, Tray Driers,

Filters, and Storage Tanks.

Infrastructure:

Name of Company Total Plot Area(in

Sq.Mtr)

Building Constructed

Area((in Sq.Ft)

Nutraplus Products India

Ltd

N-92

1800 16230(around 1500 sq.mt)

Moreover NPIL has another sister concern called VET PHARMA NITRO

PRODUCTS LTD.(VNPL). VNPL is a 100% family owned concern of

MR.MUKESHBHAI NAIK, which carries out the manufacturing activities for Nutra

plus Products (India) ltd. VNPL manufacturing facility comprises of around 40

Reactors, Centrifuges, Tray Dryers, Fluid Bed Dryers, Storage tanks and many other

major Pharma equipments.

Financials of the company:

NPIL is a Public limited company listed on Bombay Stock Exchange and is a

financially sound organization enjoying 4.5 Crore Working Capital from The Sara

swat Co-operative Bank Ltd.


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1.3 PRODUCTION DEPARTMENT

The production department is the heart of the company consisting of both

skilled and unskilled labourers. The production department of Nutra plus Products

(India) Ltd. is actively engaged in the manufacturing of its own products as well as

exclusive custom synthesis for Indian MNCs.

It is one of the pioneers in handling hazardous chemicals and reactions. Some

of the major reactions specialized by NPIL are as follows:-

Nitration, Halogenation, Bromination, Friedel Krafts Reaction, Amination,

Amidation, Reduction, High pressure Reactions, Diazotization, Reaction to liquid

ammonia, Methylation with Dimethyl sulfate, condensation. NPIL has more than 19

years of experience in handling hazardous chemicals and solvents. Some of the

hazardous chemicals which were handled in bulk by NPIL are as follows:-

Di methyl Carbonate, Liquid Bromine, Na (sodium Metal) and Oleum.

Various Activities undertaken by the production department are:-

Receiving raw materials from stores department. Co-ordination with the

purchase department for purchase of raw material in case of non availability in store.

Planning of manpower for daily operation. Monthly planning of production activity.

To ensure and maintain production quality. To achieve production target. To ensure

optimum utilization of resources. To organize training programme in case of

introduction of new production equipments and for newly employed labourers.


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Co-ordination of Production Department with other Departments:-

Production department is co-ordinated with and supported by various other

departments like maintenance department, Quality analysis and quality control

department , R &D department, stores department and purchase department.

Stores and Production Department:-

Store and Production department are inter-related and co-ordinate in the

manner as follows Production is based on raw material which is being stored in the

stores department and when production department require raw material then they

send intimation or list to the stores department. Now when raw material becomes

finished goods it will be sended to store department for storage purpose.

Purchase and Production Department:-

Purchase and production are dependent on each other. All the requirements

as per different products and their specification for the purchase of raw material and

machine parts are sent by production department through Demand slip.

Dispatch and Production Department:-

First of all the production department receives target from marketing

department and marketing department also gives dispatch schedule to dispatch.

department and as dispatch department receive dispatch schedule from Marketing

department dispatch department give dispatch schedule to production department and

therefore production department has to see that demand put forth by dispatch

department is fulfilled on time and as per the specifications.


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Maintenance and Production Department:-

Maintenance Department is the backbone of the production department. It is

the maintenance departments which enable the production department to function in

the smooth manner. Personnel of the maintenance department checks the machine and

various other required equipments on regular basis. Equipments are washed

throughouly with various chemicals on every week so as to keep them clean and free

from corrosion. Machines are checked also on weekly basis and necessary

adjustments are made and required lubricants are used for enabling the machines to

run smoothly for days together. Moreover extra machines are also kept in up to date

condition so that they can be taken into use when particular machine beaks down.

Quality Assurance and Production Department:-

After completion of one batch they send finished product for quality

assurance inspection. Quality assurance doing sampling and testing as per the

specification. If all parameters are within the specification limit, then they send

finished product into the store department which will be sake as a finished goods.

Details of the equipments used in the production department:-

In the company products are usually produced in the batches always and

mostly the following equipments are used.

At present NPILs Tarapur based plant comprises of reactor, centrifuge,

Tray dryers, filters, and storage tanks around 25 in number. Moreover Companies

sister concern named VET PHARMA INTRO PRODUCTS LTD. comprises of

reactors, centrifuge, tray dryer, FBP, storage tanks around 40 in number. The various

equipments along used in the production department are S.S.Reactor, Glass Line


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Reactor, Receivers, Day Tanks, Tray Dryers, Fluid Bed Dryers, Centrifuge,

Condensers, Filters, Multimill and Sifter

Departmental Structure of the production Department:- The production

department is main backbone of the company and comprises of the various personals

as under:-

WorkersOperators

Manufacturing Personnel

LaboratoryPersonnel

Chemists

TechnicalDirectorofthecompany

Managing DirectorandChairman

Of the company

Figure 1.6 (Source: Company Report)

Duration of the production:-

The production is carried out by the company in two shifts .The timings

of the shifts for management and non-management staff are as under:-

General shift: - 9:30 a.m. to 6:30 p.m.

First shift: - 8:00 a.m. to 4:00 p.m.

Second shift: - 4:00 p.m. to 00:00 a.m.


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1.4 Marketing Department

Today the world has become the small village and if any company wants to

survive in this era, it needs to prove itself better than the others. Company has to

become aware about its competitors and customers.

It is the marketing that enable the company to become aware about its

customers and competitors. Marketing is a social process by which individuals and

group obtains what need and want through creating and freely exchanging the

products and services of value with others

Departmental Structure of the Marketing Department:-

In order to make the company a leader in the industry, the marketing

department of the company must be under the direct supervision and control of the

chief executive of the company. With this view, at NPIL, the marketing department is

handled directly by the Chairman and Managing Director of the company SHRI

MUKESHBHAI NAIK. Besides above there are others also in the department which

comprises of the sales executive & marketing executive. The structure is as under:-

Sales Executive

MarketingExecutive

Boardof

Directors

ManagingDirectorofthecompany



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Major activities of the marketing Department:-

The various activities of the marketing department are:-Dealing with the

customers. Sending sales report to the unit office. Find out the new ways of the

packaging the product. Find out the new set of customers. To look after the bugted

sales and make estimation of demand. To look after the customer complaints and their

satisfaction. To provide customers superior customer service by satisfying their

requirements.

Present Product Mix:- The present Products of NPIL include the following.

Active Pharma Ingredients:- Active Pharma Ingredients (API) is any

substance or mixture of substances intended to be used in the manufacturing of a drug

(medical) product and that, when used in the production of a drug, becomes an active

ingredients of the drug product, such substances are intended to furnish

pharmacological activity or other direct effect in the diagnosis, cure, mitigation,

treatment, or preparation of disease or to affect the structure and function of the body.

The major type of API that is manufactured by NPIL is Nimesulide.

Nimesulide:- Nimesulide is a relatively COX-2 selective, non-steroidal anti-

inflammatory drug (NSAID) with analgesic and antipyretic properties. Its approved

indications are the treatment of acute pain, the symptomatic treatment of osteoarthritis

and primary dysmenorrhoea in adolescents and adults above 12 years old. Due to

concerns about the risk of hepatotoxicity, nimesulide has been withdrawn from

market in many countries. It is available in a variety of forms: tablets, powder for

dissolution in water, suppositories and topical gel (Sulidin gel).


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A recent evaluation from EMA (the European Medicines Agency) concluded

that the overall benefit/risk profile of nimesulide is favourable and in line with that of

the other NSAIDs (such as for example, diclofenac, ibuprofen, naproxen).

Intermediates:- The various intermediates manufactured by the company are 3

Bromo Anisole ( Tramadol HCI intermediate), 2,5 Dibromo Aniline, N Bromo

Succinimide .

N-Bromosuccinimide orNBS is a chemical reagentwhich is used in radical

substitution and electrophilic addition reactions in organic chemistry. NBS can be

considered a convenient source of cationic bromine. NBS is commercially available.

It can also be synthesized in the laboratory. To do so, sodium hydroxideand bromine

are added to an ice-water solution of succinimide. The NBS product precipitates out

and can be collected by filtration.

New Products:-

1) Diclofenac Sodium (I.P, B.P):- This medication is a nonsteroidal anti-

inflammatory drug which relieves pain and reduces inflammation (swelling). It

is used to treat headaches, muscle aches, dental pain, and athletic injuries. It is

commonly used to treat the pain, swelling and stiffness associated with

arthritis..

2) Diclofenac Potassium (I.P, B.P):- A non steroidal anti-inflammatory drug

used to treat pain. The potassium salt of diclofenac is administered orally in

the treatment of rheumatoid arthritis, osteoarthritis, ankylosing, spondylitis,

dysmenorrhea and a variety of non rhematic inflammatory conditions.


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Accelofenac:- Accelofenac is a non-steroidal anti-inflammatory drug. It is

manufactured by pharmaceutical companies, under the various trade names and in

various forms (tablets, gel, injection etc.). Many pharmaceutical companies

manufactures Aceclofenac in combination with Paracetamol under the trade names

like "Cincofen" (Aceclofenac 100mg + Paracetamol 500mg). It is used for the relief

of pain and inflammation in rheumatoid arthritis, osteoarthritis and ankylosing spondylitis.

The dose is 100 mg twice daily. It should not be given to people with porphyria or very old

persons, and is not recommended for children. Aceclofenac has higher anti-inflammatory

action than conventional NSAIDS. It is a cytokine inhibitor. Aceclofenac works by blocking

the action of a substance in the body called cyclo-oxygenase. Cyclo-oxygenase is involved in

the production of prostaglandins (chemicals in the body) which cause pain, swelling and

inflammation. The company is also actively engaged in handling following chemicals

in bulk. They are Dimethyl carbonate, Dimethyl sulfate, Liquid Bromine, Na Metal

and Oleum

Target Market / Customers / clients :-

The major clients of the Nutra Plus are Formulation companies, Traders,

Agents and Pharmaceutical Multinational Companies

Customer Satisfaction Measure:-

For the satisfaction of the customers NutraPlus Products (India) ltd. do the

following things such Always try to deliver the best quality products. Always try to

deliver the products at the right time. Always try to satisfy the customer by

providing the products as cheaper as possible. Always try to handle the customer

problem as quickly as possible.


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1.4 Human Resource Department

Today Human element is considered as the most important part of the

business and the most valuable asset. Success in business depends to great extent on

effective management of the human resource. Management of human beings in the

company is known by different names such as personnel management, Manpower

management, HR management etc.

Human Resource Management is defined as the planning, organizing

and controlling the activities of the human force in the organization so as to concile

the individual goals with organizational goals and of dealing with various issues of

employees like compensation, leave, retirement benefits etc.

HR Mission:-

NPIL believes that business excellence is achieved through competent

and motivated human resources and ensures this by a highly challenging productive

working environmment, continuous up gradation, competence and process

commensurate, appropriate compensation, reward and recognition to performer.

Present Manpower status:-

The man power in the company can be divided into two basic

categories as under:

A)Non-management staff

B) Management staff


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Classification of the Non- Management staff:-

The non-management staff in the company along with their

designations and also total number of them in the company is as under:-

Table 1.2

Designation Total No. in thecompany

Plant Chemist 3

Laboratory Chemist 1

Laboratory Assistant 4

Plant Operators 40

Maintenance Personnel 3

Technical Director & Head 1

Non-Management Staff(office) 4

Classification of the Management Staff:-

The management staff in the company along with their designations and also

total number of them in the company is as under:-

Table 1.3

Designation Total No. in the company

Chairman & Managing DirectorOf the company

1

Accountant 1

Management Staff (Factory) 4

Purchase Manager 1

Taxation & Salary Personnel 1


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Various activities performed by the HR department are as under:-

Conducting Recruitment and selection activities from time to time as and

when requirement arises.

Arranging orientation programs for the newly employed personals. Arranging

the training and development programs for employees working in the

organization.

Handling the various activities related to promotion and transfer.

Carrying out the performance appraisal on the regular basis.

Fixation of the wages and salaries after periodically reviewing them.

Employee Grievarance Handling

Making various agreements with the employee group.

Periodically reviewing the health and safety measures undertaken by the

company for its employees.

Maintaining the sound and cardinal relations with the industry partners.

Periodically reviewing the company policies relating to personnel

management.

Carrying out skills and gap analysis.

Reviewing the working of ESI scheme adopted by the company.

To make adequate arrangements for providing things like bonus, incentives,

retirement benefits etc.


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Organizational Chart:-

The organizational chart of the company along with details of Main personnel

is as under:-



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Human Resource Planning, Recruitment & Selection in the company:-

Human resource planning is the process by which management determines

how an organization should move from its current manpower position to desired

manpower position. Through planning a management strives to have the right number

and the right kind of people at the right time to do things, which result in both the

organizational and the individual receiving the maximum long range benefits.

Major motives behind human resource planning in the NPIL are as follows:-

1) To acquire human resources so that present and future needs of the

organization for correct manpower is fulfilled.

2) To prepare job description and job specification so that most eligible

person can fulfill the vacant position.

Human resource planning for permanent jobs at managerial level is done at

NPILs Headquarters. Human resource planning at NPIL is through job analysis .

Recruitment:-

Recruitment has been regarded as the most important function of personnel

and administrative department because unless the right type of people are hired even

the best plans, systems would not be able to work. Recruitment is defined as the

process of searching for prospective employees and stimulating and encouraging them

to apply for the job in an organization.

Sources of Recruitment:-

Nutra plus Products (India) ltd. uses two sources of recruitment as follows:


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a) Internal Source of Recruitment:-These sources at NPIL are mostly used for filling the management position in

the organization. It includes its present workforce who is already on payroll.

Whenever a vacancy arises for management cadre, somebody from within the

organization is promoted and transferred. This source also includes those persons who

were employees previously.

b) External source of Recruitment:-This source is mainly used for filling up non-management position. This

source contains things such as advertisement in newspaper, consulting management

and other consultant agencies that can supply good personnel .They are recruited by

personal interview.

Process of Recruitment:-

Based on Human Resource Planning the company identifies the future

requirement of the personnel in the organization. The procedure for recruiting new

personnel differs from organization to organization. Every organization has its own

procedure, which brings its desired quality of personnel at the minimum possible time

and cost.

All the recruitment in management cadre will be against sanctioned vacancies,

with written approval of the Chairman and Managing director of the company. Each

indenting department head requiring additional manpower / replacement will forward

its proposal to corporate HR department in the Personal Requisition Form. The

reason for the vacancies, job description of the post, the type of candidate likely to


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meet in terms of qualification, experience desired, salary level etc as per the format

applicable are provided to the corporate department.

The corporate HR department initiates recruitment only after the receipt of this

written requisition duly approved by Managing director of the company.

The corporate HR department handles the advertisement or correspondence

with consultant for recruitment for management cadre and for non-management cadre

persons only after the written approval given by the Managing Director. For all

recruitment in non-management trainee cadre, the senior management cadre is

authorized to accord approval for recruitment issue letter of intent and appointment

letters. Employee is not authorized to deal directly in this matter

Employee is not authorized to recruit or give a commitment for recruitment, or

of terms of appointment etc. The approval to appoint or allow a person join duties

must be confirmed in writing by each concerned department to the personnel and

administrative department in the form letter of intent / appointment letter signed by

the competent authority.


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The following flow chart shows the selection process:-

ManpowerRequisitionbyHeadofDepartment

(Therequisitionmaybeforreplacement,temporarypostoradditionalvacancy)

Shortlistedcandidatesarecalledfortheinterview

Screeningoftheapplication

Invitationofapplicationthroughadvertisementinlocalnewspaper

Negotiationtakesplace

Shortlistedcandidatesfromverbalinterviewareadvisedtogoforfurtherprocess

Duringtheinterviewcandidatearerequiredtocleartosubjecttest,IQtestandEnglishtest

Documentsandofficialletters(Joiningtime)

Copyofservicecertificate

ReferenceCheck

Induction

QuarterlyReview

Figure 1.9 (Source:-Company Report)


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Training and Development programs undertaken by the company:-

Training is the process of improving skills and knowledge of employee so that

he can perform his job in better manner. Training is not only given to employee on

basis of designation but also as per the requirement of job and experience of the

employee.

Identification of training needs will be drawn from result of performance

appraisal of employees. Manager personal department is responsible for co-

coordinating and reporting to the corporate office regarding the training carried out

Tarapur. The identification of training is done by HOD and organizes various types of

training. Generally following types of training provided to the employees:-

Training given by supervisor at workplace.

Common training for all departments.

External Training.

There are other training programs also available and provided to employees

like cross functional training for developing multi skill of employees etc. The

company has different training modules for employee for giving training.

Following Types of Training are generally carried out at NPIL:-

The various training given at NPIL are Behavioral Training, Functional

Training, Safety and Health Training, Fire Fighting Training and Cross Functional

Training.


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Promotion Policy:-

Promotion is the term which covers vertical or upward movements of an

employee in the organization which calls for greater responsibility and usually

involves higher pay and better terms and conditions of services and therefore a higher

status or rank. The promotion of employee of NPIL is given subjected to availability

of vacancy in the next higher grade, suitability, and the organization. At NPIL

promotion decision are taken carefully by keeping in mind the career development of

the employees and considering the performance reviews and merit and seniority in

terms of experience and qualification.

Performance Appraisal System:-

The performance appraisal system undertaken by the company include the

following factors:-Leadership and Teamwork, Customer Orientation, Accountability,

Achievement orientation, Flexibility and AdaptabilityPerformance Management.

Welfare Provisions:-

The term welfare suggests any ideas and meaning such s the state of

wellbeing, happiness and development of Human resource. The word welfare means

The adoption of measures to promote physical and general well being of working

population. NPIL takes special attention in providing various welfare measures to the

employees so that they can make their best effort in achievement of the organizational

goals.


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NPIL provides the following welfare facilities to its employees:-

Medical Facility:-

All the employees are covered under Mediclaim Policy by company.

Company carries out yearly health checkups for all employees. Company has made

enough provisions for providing first aid facilities on the spot for its employees.

Employee State Insurance Scheme:-

From the welfare of the employees, company has the policy of

providing accidental insurance. When any employee met with an accident while on

duty is covered under this scheme, accident insurance is provided to them. The

scheme of accidental insurance is different for executives and non-executives.

Provident fund scheme:-

All the employees of the company are covered under the provident

fund scheme.


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1.5 Finance Department

Various activities performed by the finance department are as under:-

Auditing:- Various types of audit are carried out by the finance department in

the company some of them are cost audit, efficiency audit, propriety audit.

Bill Payment and passing: - It includes the things like Raw material and

packaging material bills, Administration Bills, General engineering and auxiliary

purchase and Telephone bill, travel and travel expense

Salary Payment: - Responsible for timely payment of salary.

Bill Posting: - It includes job work bill posting and import bill posting.

Entry of Bills: - It includes the act of entry of bills in the various systems in

plant.

Filing IT, Excise and VAT Returns:- It includes the things such as VAT

payments, TDS deducted from employees and supplier, Excise duty and advance

tax payments. Professional and Corporate tax payment and Mandatory Return to

be prepared

Maintaining the complete accounts of the company: - It includes the

things such as costing, petty cash payments and financial approval for the

purchase of raw material..


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Budgeting: - At the end of every month budget is prepared. Various budgets

usually prepared include sales budget, purchase budget, collection budget, and

market conditions.

Financial Details of the company:-

NPIL is a Public limited company listed on Bombay Stock Exchange and is a

financially sound organization enjoying 4.5 Crore Working Capital from The Sara

swat Co-operative Bank Ltd.

The audited financial results of the company for the year ended on March

2010 are given in the Annexure 1. The annexure reveals the following things such

as under:-

Sales:- 1187.93 Lakhs (April-2008 to March 2009)

1491.96 Lakhs (April-2009 to March 2010)

Profit:- 123.09 Lakhs (April-2008 to March 2009)

169.05 Lakhs (April-2009 to March 2010)

Earning Per share:-There is an increase in the EPS of the share from 0.81 to 1.23

which shows that Net return to shareholders is increased nearly by 50%.

The balance sheet of the company is shown in the annexure 2. It reveals the

things such as Shareholders Funds and Fixed Assets of the company.

The Shareholders Funds increased from 405.00 Lakhs to 437.00 Lakhs

during the year . There is also an increase in the companys fixed assets from 754.97

Lakhs to 1054.98 Lakhs.


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1.6 Warehouse / Stores Department

Various activities performed by the warehouse department are as

follows:-

1) Receipt Procedure of Raw Material:-Entry at gate. Reach to the store department. Material unloading. Verifying

with bill (quantity check). Material goes in de-dusting area (cleaning of drums).

Check weight and field format. Then prepare GRN (Good Receipt Note). Material

kept under test area. Based on Good Receipt Note quality check, samples are taken.

After analysis, approval or reject decision is taken. Again material is transferred to the

proper place

2) Issue Procedure of the Material:-

Amount of materials needed are decided by the production department. Slip of

the materials needed is issued to the warehouse department mentioning the type

and amount of material needed. On the basis of the amount mentioned in the slip

accordingly material is issued by the warehouse department

Process of storing the Material:-

When the materials are entered in the company, it will be checked as per

purchase order. After that the material will be unloaded on the conveyer belt by which

it went into the de-dusting booth. In the du-dusting booth it will become free from

dust and after that it will be weighted. As now goods are received Good receipt note is

prepared and entry is done. Now as soon as goods enter in the store sampling is

done.Once sampling is completed, label will be placed for approval and non-approval

of the goods. The particular color label is used for approved goods and other color


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label is used for non-approval of goods. Now, if goods will be rejected it will be sent

to raw material rejection store. Issue of raw material will be done as per the

requirement of production department.

Types of Material :-

At NPIL, mainly there are three types of material handled. They are solid,

liquid and hazardous chemicals. Moreover In store department there are special cells

for storage of specific material likeA / C rooms, open cells, drums to store liquid etc.

Material Handling Equipments:-

For Material handling various types of equipments often used are Stacker,

Fork lift, Hand pallet trolley, Barrel trolley, Cylinder trolley, Hydraulic trolley.

Stock Verification:-

It is done internally after each month as per the standards of theindustry.

1.7 Environment, Health & Safety Department

Environment and Social Concern:-

Tarapur factory of NPIL has been using Indian FDA approved

facilities. Here in the main focus is on preventing pollution and keep all the plant buildings

clean and surroundings environment friendly. The Tarapur based factory of NPIL is a

member of localCETP (Common Effluent Treatment Plant) hence effluents are sent to CETP

for effluents treatment and disposal. Moreover various measures are undertaken by the

management and factory personnel for identifying the waster and eliminating the same.

Moreover various energy conservation measures are also been undertaken by the company.


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1.8 Research and Development Department

Equipments available for R and D:-

NPIL houses all the instruments and equipments required in a laboratory

for QC and QA analysis headed by an R & D chemist are Gas chromatograph, HPLC,

Karl Fischer Titrator, Furnace, Melting and Boiling Pt Apparatus.

Activities of R and D department:-

The various activities of the R and D department are :-

Focus on adding value to some of the companys by-product.

To do collaborative research along with the customer.

Customization of the raw material and manufacture process to suit the needs

of a single high volume customer.

Expanding the companys profiting capabilities by incorporating or

outsourcing the use of instrumental analytical tools.

1.9 Maintenance Department

Activities of the Maintenance Department:-

Maintenance Department is the backbone of the production department. It is

the maintenance department which enables the production department to function in

smooth manner. Personnel of the maintenance department checks the machine and

various other required equipments on regular basis. Equipments are washed

throughouly with various chemicals on every week so as to keep them clean and free

from corrosion. Machines are checked also on weekly basis and necessary


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adjustments are made and required lubricants are used for enabling the machines to

run smoothly for days together. So that they can be taken into use when particular

machine breaks down. Lighting facilities are also checked on a monthly basis so as to

ensure that enough amount of light both artificial and natural, are available at the

required places of production.

The company also has enough amounts of fire extinguishers which are

also maintained by the maintenance department.

Another activity performed by the maintenance department is that it

ensures that enough amount of water is available across the factory for both

manufacturing and drinking purposes.

Maintenance department also ensures that various safety measures taken

by the company are in up to date condition such as safety doors are in working

condition, there are no sparks occurring in any of the equipments and such other

safety measures. Currently there are 3 main personal in the maintenance department

of the company.

1.10 Quality Assurance and Quality Control Department

At NPIL, all the members of the company are committed to build quality

products meeting highest global quality standards through continuous improvement in

the quality and customer service.

Quality Objectives:-

To provide to the customers world class quality products through consistent

improvement in the quality.


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To provide right products first time and every time and in full by utilizing efficient

cost effective methods.

To provide customers with the best value for the products.

To provide systematic validation and control of manufacturing, operational and

quality processes.

To provide a system of continuous improvement across all disciplines.

Quality Assurance:-

Various activities undertaken by the company for quality assurance are as

under:-

Audit of Manufacturing Facilities: - To ensure compliance to Industrial

Standards and assure product integrity.

Audit of Suppliers of critical raw materials: - To ensure that input raw

materials have the desired purity.

Technology Transfer Activity: - To ensure that the development work at R&D

are inCompliance to GMP requirements and the Manufacturing units receive

accurate process package.

Documentation and Data control: - To ensure data and documents and trace

ability.

Verification and Process Validation:- To ensure that all the equipments /

instruments are in working condition and all operations are validated.


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Quality control activities:-

Various quality control activities undertaken are as follows:- Raw

material and Packing material testing. In process testing. finished product testing.

microbiological monitoring of water system, finished product and clean areas,

Stability studies and hold time studies of intermediates, Trend analysis of

intermediates and finished products, Qualifications validations, all the activities

complying with industry standards.


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1.11 SWOT ANALYSIS

The SWOT Analysis mainly reveals S=Strengths, W=Weakness, O=Opportunities

and T=Threats of the company.

Main strengths of the Company:-

Company is coupled with efficient sourcing and coverage of raw material and

exploiting capacity of the manufacturer facilities to their fullest level.NPIL is actively

engaged in manufacturing of its own products as well as exclusive custom synthesis

for Indian MNCs. Promoters and Directors of the company are Engineers and

Technical persons so quality of product is consistently maintained.

NPIL is the only company in the region handling hazardous chemicals and

reactions, some of the reactions specialized by NPIL are as follows:-Nitration,

Halogenation, Friedel Krafts reaction, Bromination, Amidation etc. As NPIL only

company in the region so it is the leader in the region. Moreover NPIL has very long

experience of nearly around 20 years in handling in bulk drugs such as- Dimethyl

Carbonate, Dimethyl Sulfate, Liquid Bromine, Na Metal, Oleum etc. as result it has

been able to build strong customer base and brand loyalty.

Weakness:-

The main weakness of company is number of Management staff is

comparatively less in number than the Non- Management Staff. Moreover the training

programmes for the higher level executives should be thoroughly reviewed so as


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provide them better around development. The company is not still exporting as result

it is lagging behind the other companies in that area. Moreover as compared to the

other companies in the region the company is not also in the area of Retail sector so it

is also lagging in the sector.

Opportunities:-

Increased global demand and companys reputation for its consistent supply

and quality suited to the needs of the customers provide good opportunities for growth

and expansion for the chemical division. New capacity addition in the industries is

likely to increase the competition from supply side of the raw materials.

Threats:-

Fluctuations in cost and availability of raw material from the suppliers of the

raw material to the company. Legislative changes resulting in a change in the taxes,

duties and levies whether local or central have significant impact on the business,

performance and the relative competitiveness of the industry and the business of the

company.


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1.12 Literature ReviewPooja Gupta (2009):- This research paper reviews innovation strategies adopted by

the bulk drug manufacturers in India Vis a Vis their effect on the bottom lines and

sustainable competitive advantage.The research seeks answers to questions like which of

the innovation strategies at various levels would prove effective for an Indian company in

the bulk drug industry to grow and how to formulate a competitive growth strategy and

how does innovation help in developing competitiveness; competitiveness being

measured in terms of turnover, profits & market share?

Bruce Rasmussen (2002):- This research paper mainly discusses which strategies

especially on the Diversification side the company could adopt in order expand its

revenues and sales. The implications are mainly given on the basis of the research study

conducted for companies in Australia.

Franscesca Gino (2006):-This paper mainly explores the issue of R&D portfolio

diversification and relatedness through the lens of information-processing. It shows how the

diversification in the area of the R & D can help the company to grow on a global scale

Dinar Kale (2008):- The Research paper shows how Indian pharmaceutical firms

are internationalizing by acquiring small firms as well as setting up their subsidiaries,

in order to access resources, move up value chain and enter new markets. The paper

also shows that how Indian pharmaceutical firms are internationalizing by acquiring

small firms as well as setting up their subsidiaries, in order to access resources, move

up value chain and enter new markets.

Sean Eric Smith(2000):- This research paper how the Indian firms thrive as low-cost

manufacturers of off-patent generics, selling them internationally through MNCs, or even

directly, as Indian-branded products and how Indian pharmaceutical MNCs themselves


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emerge with their own branded and internationally patented drugs through their own

strategies of expansion.

John Buckley (2003):- This paper reviews current marketing practices in the

pharmaceutical sector, and their impact on consumer and doctor behavior. It identifies

negative impacts which include misleading advertising, disease monitoring and

escalating costs. It argues the need to move from industry self-regulation to an

independently monitored code of practice for pharmaceutical marketing.

J.L Solereo (2000):- The article of the paper throws light on how the company

which are only in small scale business can emerge out to be major market challenger

in the market. The paper cities the examples of the various pharmaceutical companies

and their strategies.

Manthan R Janodia(2009):- The article describes how the company can be

benefited from the obtaining patents and adopting a appropriate strategy for expansion

and diversification and hence can grab the market share in the particular area. The

paper particular cities the strategies of the Pharma companies.

G.Chappell (2003):- The article discusses about the companies can get itself

benefited by adopting the various product innovation strategies such as automation

and diversification to get itself top on the list of the market leaders. The article

discusses about various such strategies adopted by pharmaceutical companies.

Indian Pharma Report(2009):- The report describes how the companies in India

especially in the pharmaceutical sector has emerged through diversification and

expansion. The report mainly cities the examples of the major players of the industry

which emerged through the diversification and expansion in last few years. The report

has provided the example the Dr. Reddy.


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1.13 Relevance of the Present Study

A Summer Internship Project gives an opportunity to the students to interact

closely with the industry. After the completion of foundation courses, SIP gives the

student a chance of doing the work on the one hand and gaining the practical

experience on the other. The theory that one had learnt in classrooms and the real

aspects in the industry vary drastically. At the first instance it might seem as that

theory would be of no help in dealing with the real life cases and situations. But once

on dealing with those situations one would realize how important the theoretical

framework is in building a strong foundation through which one can approach any

problem with multiple perspectives and that too with the confidence into me.

This project was a wonderful opportunity to put into practice the tools,

techniques and skills learnt in the first year of my MBA course. It has been an

amazing experience to put in the application almost all the subjects that I had learnt

into one single project. Right from the approach to the problem till the report writing

and presentation of the recommendations these skills and techniques learnt have been

the great aid. The basic approach to any problem with clear understanding of the

objective of the problem and then moving on to determing the methodology to solve

the problem at hand, which was taught as a part of the human resource course, came

in handy to get the right start for the project. The summer internship project has

brought in me one major change which I am sure would be the key to success in all

my future endeavors. There has been a change in my attitude. I have learnt that to

succeed one cannot be sufficient with the specialized and limited knowledge rather


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one should always be open to continual learning and bring in discipline in life to

channelize the ones strengths in the right direction.

CHAPTER 2

Research Methodology

Basically Research means systematic investigation to establish facts or

principles or to collect information on a subject. In the broadest sense of the word, the

definition of research includes any gathering of data, information and facts for the

advancement of knowledge. With this view the research is undertaken as under:-

2.1Research Objective:-Finding out the opportunities for expansion of the capabilities, diversification

and enhancement / enlargement of the market share of the Nutra Plus Products

(India) Limited.

2.2Research Design:-- Types of Research: -The research undertaken includes both the

descriptive research and objective research. The objective research was

undertaken for consumer survey and descriptive research was undertaken

for competitive analysis.

- Data Sources: - The data sources utilized for resource includes both the

primary data and secondary data. The primary data was utilized for the

consumer survey while secondary data was utilized for competitive

analysis.


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- Research Methods: - The methods utilized for research comprises of

survey / schedule method as well as also involves the personal interaction.

The survey method was adopted for consumer survey while personal

interaction strategy was adopted for competitive analysis.

- Research Technique: - For making the consumer survey the research

technique adopted was structured questionnaire.

- Type of Questions: - The Questions included in the questionnaire for

consumer Survey were the closed ended ones.

- No of Questions: - The Questionnaire includes 5 questions.

- Place of Research: - The consumer survey was conducted in the retail

Medical shops in suburbs of Mumbai.

- Sampling Method: - The Sampling Technique used was convenience

Sampling

- Sample Size: - The sample size selected for consumer research was 25

chemist shops and for competitive analysis of 6 similar bulk drug

manufacturing companies in the same region was selected.


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CHAPTER -3

Research Findings and Analysis:-

A)From Customer Survey.

B) From Companies (Competitive Analysis) Analysis.

Major Findings and Analysis from customer survey are ----


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Analysis: Hence nearly around 59% of shops being surveyed are having customers in

the range of 50-100. This shows that there is a huge demand of the medicines in the

market due to the factors like emergence of new types of diseases which are highly

infective in nature, rise in the pollution levels and such others.


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Analysis: Hence it can be seen that there is a huge demand of analgesics in the

market because majority of consumers are suffering minor type of pains. Moreover

there is also a considerable demand of antibiotics and anti-inflammatory drugs due to

rise of highly infective type diseases. So the major segments where company should

concentrate its manufacturing and selling in order to boost its revenue and capture

good share in the market are analgesics, antibiotics and anti-inflammatory drugs.


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Analysis:-Hence besides tablets and capsules majority of customers prefer gels. The

reason for the preference for gels is that the gels could be applied directly on the skin

and are able to provide rapid actions from outside the body without any pain. The

consumers also have considerable liking for the syrups also due to their ability to

provide good actions. Hence if the company starts manufacturing its formulations in

the form of gels and syrups then the company may be able to grab good market share.

-------------------------------------------------------------------------------------------------------

Analysis:-Hence on an average most of customers are repeating their cycle after 2

weeks. This shows that regular drug users buys the amount of drug he requires about

2 times in month. So if the company provides good quality medicines in various

forms which can be able to provide highly effective and rapid actions then it will be

able to build highly customer base which would help company to remain at good

position in the market.


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Analysis:- Hence Chemists must be made aware about the exact effects of the drug of

the company and their prices as compared to the competitors. This will help the

company to increase its customers within very short period of time.

Interpretations and Recommendations :-

The survey of Retail medical shops indicates some of the major things.

The important things are as under:-

Besides concentrating on selling the products like Accelofenac formulations to other

major drug manufactures, the company itself should concentrate on manufacturing the

drugs for direct consumers.

Besides making Accelofenac, company should start making paracetemol and

ibuprofen formulations, as well as drugs containing paracetomols and ibuprofen. This

will significantly boost the sales of company in its API category.

The company will be able to grab considerable market share, if it also makes gels /

creams of the equivalent drugs which can applied on the skin directly.


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Moreover there is a considerable demand of the anti- inflammatory drugs in the

market. The company is already in the process of making formulations containing

diclofenac sodium and diclofenac potassium. So if company concentrates its efforts

also in making tablets and capsules containing the diclofenac sodium and diclofenac

potassium then the company may get significantly benefited.

In order to make powerful entry in retail sector, the company must recruit extra sales

person and also adopt the marketing strategy of personal especially door to door to

selling for few months so as to make consumer familiar with its new drug.

For capturing the major market share, the company must also make the retail chemists

aware about its drugs by arranging special programmes so that they become aware

about the drug and could recommend the same to the patients.

Moreover drugs which do not require medical prescription should be considered to be

sold through the outlets other than the medical stores.

After conducting the retail chemist shop survey it has been found that there is

a conside