EXECUTIVE SUMMARY

The “Organizational Study” for the duration of one month was an

attempt to have an exposure for practical corporate world. In this duration there was
a good exposure for day to day operations of an organization and connectivity
between various department head or top management deals with well educated
employees. Pharmaceutical Industry is playing a key role in promoting and
sustaining development in the vital field of medicines.

SANGROSE LABORATORIES PVT LTD is the only company in

Kerala manufacturing the drug CLOFAZIMINE AND 3rd in India. The company
plays an important role in the National Leprosy Eradication Program (NLEP)
introduced by the Government of India under the aid of WHO.

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 INTRODUCTION
An Organization is a group of people who form a business, club etc together
in order to achieve a particular aim .every organization has deferent functional
departments like finance ,human resource ,marketing ,production ,purchase etc.
Organizational study is a direct investigation about the functions and activities carried
out in an organization. An organization study helps us to know in general about an
organization and in particular about its different functional areas

SANGROSE LABORATORIESPVT LTD is the only company in Kerala

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

The company has different departmental structure. Highly qualified

professionals in this company have major skills like technical, financial, economical,
and public relation skills. Sangrose is following a participative style of management it
believes in team work. The pricing policy of Sangrose laboratories Pvt. Ltd. which is
basically responsibility of the marketing department is a function basically of cost
&demand factors. A method by which Sangrose pharmacy department improved its
purchasing & inventory control system is described production manager is supposed
to have the control over the cost of production by reducing wastage of man and
materials. The staffs were very much committed for their organisation. Provision for
gratuity liability is made as per actuarial valuation. The shared values of the company
have a common goal and it sees that each and every person should work towards
attaining this goal.

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 After the keen observation over the organization and various departments of
Sangrose the following strengths, weakness, opportunities & threats are known. A
good leadership network, only manufacture of Clofazimine in Kerala. Good
manufacturing product certificate which is equivalent to ISO 9002 certification are
the some of the strengths. The weakness is lack of efficient system analysts,
advertising expense is very meager the machinaries are quiet costly maintenance
involves a huge expense. Production can be in USP/BP standards good scopes of
imported machines are installed are some of the opportunities facing Sangrose.
Substitute product manufactured by other companies the overhead cost of competitors
is low as compared to Sangrose. These are the some of the main threats facing by
Sangrose.

I learn more at my internship at Sangrose than I could have ever imagined. I

had the opportunity to learn more about current events in pharmacy, drug information
research and production tactics of pharmaceutical companies.

1.1 OBJECTIVES OF THE STUDY

The organizational study at SANGROSE LABORATORIES PVT LTD is

undertaken with certain clear cut objectives which are classified as:

PRIMARY OBJECTIVES
1) To acquire knowledge about functional as well as managerial aspects of
SANGROSE LABORATORIES PVT LTD.
2) To compare theoretical knowledge with actual practices.

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SECONDARY OBJECTIVES
1) To understand the various departmental functions that ensures smooth
running of the organization.
2) To interact with managers at different levels and find out their duties and
responsibilities.
3) To find out various departmental processes carried out in SANGROSE
and to know about its future plans.
4) To find out the various technical collaborations in SANGROSE and to
check the importance and effectiveness of such collaborations.
5) To undertake SWOT analysis and to give suggestions if any.

1.2 SCOPE OF THE STUDY

The theoretical scope of the study was aimed at covering the functional
departments of the organization. It was to make us aware about the various operations
in the organization. The study is mainly based on the details collected from each
department. Each and every activities followed by the company is studied carefully
with the available data.
1.3METHODS OF DATA COLLECTION
Data collections are of primary and secondary type. The main source of data
are
 Personal visit to plant
 Having formal and informal interview and discussion with managers and
officials at various levels
 Data collected from published and unpublished sources
 Organizational manuals
 Department manuals
 Official records
1.4 LIMITATIONS OF THE STUDY
1) Environment was not conducive for the study.
2) Time constraint-It was not possible to get an in-depth knowledge of each and ever
work in the organization because of tight time of the selected staffs.

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INDUSTRIAL PROFILE

5
Pharmaceutical Industry:
Pharmacy is the art and science of preparing and dispensing medication and
the provision of drug related information to the public. The modern Indian
Pharmaceuticals industry is laid’s its foundations in the beginning of the previous of
century in 1901, a small factory known as the ‘BENGAL CHEMICAL AND
PHARMACEUTICAL WORKS’ was established in Calcutta. India took some steps
to strengthen its drugs and Pharmaceuticals field, after independence. To day India is
in position to meet 70% of the countries requirements of drugs and almost all the
demands for formulation.

INDIAN PHARMACEUTICAL INDUSTRY

The Pharmaceutical industry in India meet around 70% of the countries
demand for bulk drugs, drugs intermediaries, pharmaceutical formulations, chemicals,
tablets, capsules, orals and injection. There are about 250 large units and about 8000
small scale units, which form core of the Pharmaceuticals industry in India. These
units produce the complete range of Pharmaceutical formulations i.e. medicines ready
for consumption by patients and about 350 bulk drugs i.e. chemicals having
therapeutic values and used for production of Pharmaceuticals formulations.
The production value of the bulk drugs during the year 1997 -98 was 2623 and
that of Pharmaceutical formulations was Rs.12068 cores. The production of
Pharmaceuticals in India increased by 13.68% during the year 1997-1998 against the
previous year. The exports of the during the year 1998-1999 were Rs. 49780 million.
From a meager Rs.46 crore worth of Pharmaceuticals, drugs and fine chemicals
exports in 1980-1981, Pharmaceuticals exports has risen to approximately Rs.6152
crores , a rise of 11.91% against last year exports.
The Indian Pharmaceuticals industry today is in front rank of India’s science –
based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. A lightly organized sector, the Indian Pharmaceutical
industry is estimated to be worth $4.5 billion, growing at about 8 to 9 percent

6
annually. It ranks very high in the third world. In terms of technology, quality and
range of medicines manufactured.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading 250
Pharmaceutical companies control 70% of the market with market leader holding
nearly 7% of the market share. It is an extremely fragmented market with severe price
competition and Govt. price control.
Following the de-licensing of the Pharmaceutical industry, industrial licensing
for most of the Drugs and Pharmaceutical products has been done away.
Manufactures are free to produce any Drugs duly approved by control Authority.
Technically strong and totally self-reliant, the Pharmaceutical industry in India has
low costs of production, low R&D costs, innovative scientific manpower, strength of
national laboratories and an increasing balance of trade. The Pharmaceutical industry,
with its rich scientific talents and research capabilities, supported by Intellectual
Property Protection regime is well set to take all the international market.

THE GROWTH OF THE SCENARIO

India’s US$ 3.1 billion Pharmaceutical industry is growing at the rate of 14%
per year. It is one of the largest and most advanced among the developing countries.
Over 20000 registered Pharmaceutical manufactures exist in the country. The
domestic Pharmaceutical industry out put is expected to exceed Rs.260 billion in the
financial year 2002, which accounts for merely 1.3 % of the global Pharmaceutical
sector. Of these, bulk Drugs will account for Rs.54 bn. (21%) and formulation,
remaining Rs.210 billion (79%). In the financial year 2001, imports were Rs.20
billion while exports were Rs.87 billion.

STEPS TO STRENGTHEN THE INDUSTRY

Indian companies need to attain the right product mix for sustained future
growth. Core competencies will play an important role in determining the future of
many Indian Pharmaceutical companies in the post product patent regime after 2005.

7
Indian companies, in an effort to consolidate their position, will have to increasingly
look at merger and acquisition options of the either companies or products.
This would help them to offset loss of new product options, improve their
R&D efforts and improve distribution to penetrate markets. R&D has always taken
the backseats amongst Indian Pharmaceutical industry. In order to stay competitive in
the future, Indian companies will have to refocus and invest heavily in R&D.
The Indian Pharmaceutical industry also needs to take advantage of the recent
advances in bio technology and information technology. The future of the industry
will be determined by how well it markets its products to several regions and
distributors risk, it forward and backward integration capabilities, it’s R&D, its
consolidation through merger and acquisition, co-marketing and licensing agreements
Indian Pharmaceutical industry whose output exceeded US$ 4.3 billion in
fiscal in 2000 is one of the fastest growing markets in the world. In terms of value,
the industry accounts for less than 2% of the global market. However, this industry is
expected to grow at rates nearly 200% higher than the global market in the near
future.

TOP TEN PLAYERS IN MARKET

1. DR. REDDY’S LABS
2. CIPLA
3. RANBAXY LABORATORIES
4. GLAXO SMITHKLINE
5. SUN PHARMACEUTICAL INDUSTRIES
6. CADILA HEALTHCARE
7. PFIRE
8. WOCKHARDTH
9. NOVRTIS INDIA
10. AVENTIS PHARMA

DIFICULTIES/DRAWBACKS OF THE INDIAN PHARMACEUTICAL

INDUSTRY

8
COMPANY PROFILE

9
COMPANY PROFILE

SANGROSE LABORATORIES PVT.LTD was incorporated in the year 1987

as a private limited company under the Indian companies act, 1956.
The company register as a small scale industry with the main object of
manufacturing Basic Drugs is located in the industrial Estate, Kollakadavu in Vettiyar
Village Mavelikara Taluk in the notified Industrial Backward district Alleppy, in
Kerala State.
The company is having branch office in Piramal Nagar, Bombay. The
Commercial production of the basic drugs ‘CLOFAZIMINE’ was started in the year
1989 CLOFAZIMINE is the main Drug recommend big world health organization
(WHO) for the treatment of leprosy under its Multi Drug Therapy (M.D.T) and is also
used for the treatment of T.B. and Aids patients.
SANGROSE LABORATORIES PVT.LTD is the only company in Kerala
manufacturing this drug and is the 3rd in India. The other two being multinational
competition is avoided by maintaining the quality of the product.
Recently SANGROSE LABORATORIES PVT.LTD., is developed in our
manufacturing and Services. The Company provides exporting, manufacturing,
marketing of medicines manufacturing for other companies medicine (order base)
The company plays an important role in the National Leprosy Education
Program (NLEP) introduced by the government of India under the aid of WHO.

LOCATION AND IMPORTANCE OF GOOD LOCATION

Location is the important factor of promoting manufacturing and business. It

means availability of raw materials, transportations facility, and availability pf
employees. Climate condition, frequent supply of power. So good location is
necessary .In this company very beautiful location and calm atmosphere and better
environment for manufacturing process.

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LOCATION OF SNGROSE
The Sangrose Laboratories Pvt.Ltd is ideally located in the Kollakadavu.
Industrial Estate, one of the oldest industrial estates of kerala in Alleppy District. The
company is allegeable for all incentives offered by the state government like subsidy,
sales tax exemption etc. the basic infrastructures required for the company is easily
available at the industrial estate and the company does not envisage any difficulty in
availing them.
The factory is located near the river achenkoil. The quality and plenty of water
at reasonable depth is very good. The industrial estate has its own water supply
system. In addition to this the company has dug wells in the nearly private land in the
possession of the company. The water supply is also available to the company.
The company already has a low tension connection of 100kva. But the
company intends to convert it into a high tension connection of 250kva by installing
its own transformer.
The industrial estate has well connection internal roads with access to the
main roads. The nearest railway station is just 5km away and the national highway is
15km away.
Factors affecting the location of sangrose
The location of a plant is determined by a number of factors. They are
 Availability of raw material
 Power &fuels
 Transportation
 Markets
 Meteorological conditions and geography
 Labour
 Supplement and complimentary industries
 Banking
 Local taxes
 Water
 Momentum of costly start
 Personal factors

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  Political stability
 State assistance
 Waste disposal
 Commercial services
 Communication
 Attitude of local people
 Availability of amenities
 Price of land or place

LAYOUT AND DESIGN OF THE FIRM

Sangrose Laboratories Pvt.Ltd is fully equipped with plant and machinery that
are necessary for manufacturing 18 tons basic drugs per annum and 10 lakhs capsules
per shift. All the machines and tools are of good quality and are in good working
condition. The factory also has campus area for smooth working

SOURCES OF PRODUCT
The product shall be the main ingredients of any manufacturing unit if the
input is in abundance the production process will not suffer. The manufactures should
therefore see that input is in continuous supply. The manager should take all the steps
to provide the supply of input. In SANGROSE LABORATORIES PVT.LTD main
raw materials is a chemical.
Following are some of the important raw materials used in Sangrose Laboratories
Pvt.Ltd
 AMINO COMPOUND
 ACETIC ACID
 METHANOL
 GLYCERIN
 SORBITOL
 ISOPROPANOL
 METHYLSALICYLATE
 CARBONTETRA CHLORIDE

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 ORGANIZATION AND MANAGEMENT

Sangrose Laboratories Pvt.Ltd was in corporate in 1987 under the companies

act, 1956. The authorized share capital of the company is 24000 equity shares of Rs
100 each. The unit was setup as small scale industry. The present directors of the
company are Mr. Thomas Samuel and Mr. George Mathew with Mr. C.K Alexander
as the managing director.
The managing director is at the powers to makes decisions for smooth running
of this company. He formulates all process and rules and regulations. He also co-
ordinates and control the management function and fixes responsibility and has this
field has resulted in the rapid development of this company.

TECHNICAL BACKGROUND OF THE PROMOTERS

Managing director MR.C.K.ALEXANDER is a postgraduate, approved
manufacturing and quality control chemist, he is having 25 yrs experience in
pharmaceutical industry of which 10 yrs is in top level management in developing
and implementing project where administrative technical, marketing and financial
skill are required. He was the joint managing director of m/s earnest health care
limited and director of ethic pharma laboratories private limited. He is also having
three years experience in research and development process know how for a number
of life saving drugs
Mr. Thomas Samuel: - The finance director, a postgraduate in business
administration is well experienced in funds management. The sound financial health
of the company proves his expertise in the filed.
Mr. George Mathew:-with three year experience in a chemist in Bombay is a
senior manager in international Airlines for the last ten years.
Brief history
Sangrose Laboratories Pvt.Ltd was incorporated in the year 1987 as a private
limited company under the Indian companies act, 1956.

13
 The company register as a small scale industry with the main object of
manufacturing Basic Drugs is located in the industrial Estate, Kollakadavu in Vettiyar
Village Mavelikara Taluk in the notified Industrial Backward district Alleppy, in
Kerala State.
The company is having branch office in Piramal Nagar, Bombay. The
Commercial production of the basic drugs ‘CLOFAZIMINE’ was started in the year
1989 CLOFAZIMINE is the main Drug recommend big world health organization
(WHO) for the treatment of leprosy under its Multi Drug Therapy (M.D.T) and is also
used for the treatment of T.B. and Aids patients.
In 1994 the capacity was enhanced from one ton to 18 ton per annum. Besides
the expansion a diversification was also undertaken where by the soft gelatin
capsulation plant was setup. Thus incrementing the product range of Basic Drugs
‘CLOFAZIMINE’ with soft capsules of ‘CLOFAZIMINE’ itself.
Recently agreement was entered in to with Nigerian company for the
manufacturing of ‘GLOVITE’ capsules, a combination of ginseng extract with
minerals and vitamins, exclusively for the sale in Nigerian

Vision
“The vision of the company is to become a leader in the Indian
pharmaceuticals industry and a significant global player, providing customers delight
and enhancing shareholders values”.
CORE VALUES
 C- Care for customers.
 R- Respect for associates.
 E- Excellent teamwork.
 A-Always learning.
 T- Trust mutually.
 E- Ethical practices.

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OBJECTIVES OF THE COMPANY

 To manufacture, produce, refine process ,formulate bye sell, import, export or

otherwise deal in Basic Drugs Pytho chemicals, plant extracts, dyes pesticides
and their immediate, laboratory and scientific chemicals used or capable of
being used. In the pharmaceuticals, textiles, agriculture, fertilizers, petro
chemicals or any mixtures deviates and compound there of.
 To manufacture, produce, distribute, sell makes research, export and to deal in
pharmaceuticals, drugs, chemicals, medicine preparation, dyes pesticides,
cosmetics, their intermediate including sophisticated item oils, injection, orals,
syrups, tablets capsules and in any such other forms of human as well as
animal use.
 To carry on the business of chemicals, druggists importers and manufactures
of and dealers in pharmaceuticals, medical chemical, pathological , clinical,
industrial and other preparation and articles compounds drugs and dealers in
chemicals surgical and scientific apparatus and material.

HIGHLIGHTS OF THE COMPANY

 Nominate as the best small-scale industry Alleppy District consecutively for
3yrs and forth in the state.
 Runner up for the management excellence award of Berchmans institute of
management.
 Selected as one of the best entrepreneur of the state.
 Gold card member of kerala financial corporation, the agency based on
growth expansion and prompt repayment.
 The firm has been closely associated with national leprosy eradication
program of Govt of India by being the supply of ‘CLOFAZIMINE’ for the
past five years.
 Supplying capsules and tablets as per the order required from government and
central purchase committee.

15
Present status

Since this is only company manufactures ‘CLOFAZIMINE’ in kerala they

have total market share aboard. The products basically capsules have captured the
entire market in kerala because they seek the help from central purchasing committee.
They enjoy complete monopoly by beating the upcoming manufactures. Currently
they don’t have tough competitors as they bench mark their product with of the
national level manufactures. Now day’s lots of promotional activities are on the move
there fore better publicity and reduce the competition. As mentioned before, they rank
3rd in India.

PRODUCT PROFILE

1. CLOFAZIMINE

Basic drug manufacturing for the treatment of leprosy as recommend

by W.H.O. under its multi drug therapy is also for the treatment for TB and
AIDS.

2. Capsules

 Vitamin A, D is used for dye and calcium form

 Black cumin seed oil
 GLOVITE
 NIFEDIPINE (For the Treatment of High Blood Pressure.)
 CEFOZ
 REJUVEN

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 PARACETAMOL
 PAINKILLER
 SALBUTAMOL
 ERYTHROMYCIN
 RANTIDINE TABLET

These are targeting the local as well as national customers

1. NOVA MILLENNIUM PHARMA, CHENNAI

2. ABL BIO TECHNOLOGIES, CHENNAI

3. NOVEAU MEDICAM, CHENNAI

4. BENZOR PHARMA, COCHIN

5. HOUCHE REMEDYS, THRISSUR

6. ENKA HEALTHCARE DELHI

17
HUMAN RESOURCE MANAGEMENT

18
HUMAN RESOURCE MANAGEMENT

The principal component of an organization is its ‘Human Resource ‘. It is one

of the important factors of production. It is this Human Resource that is the
paramount importance for the success of any organization may be a manufacturing, a
business concern, an insurance company, a Government agency Social organization
or Religious trust.

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT

PUBLIC REALTION OFFICER

WELFARE OFFICER

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LABOUR WELFARE PROVIDED BY THE COMPANY
Labor is an important element of any organization contributes much to the or
face of the organization. Hence it is very important to keep the workers always
satisfied. The workers can be satisfied by the provision of various facilities.
Following are some of the important Labour welfare facilities are undertaken by the
organization.
1. FREE LUNCH AND REFRESHMENT
For the normal working hour no lunch of refreshment is provided but if the
employees are working more than normal working hours, which is more than 9 hours
a day, then free lunch of Refreshment are provided, coffee is provide twice in a day.
2. VEHICLE FACILITIES
The basic creation for determines the vehicles facilities are the need of the
employee to the organization and his contribution to the organization by providing the
vehicle it can an employee really contribute higher to the organi zation. Vehicle
facilities will be given.

3. TRAVELLING ALLOWANCE
Traveling allowance is given by the organization it is for office purpose only.
Attending to the office every day is not considered as office purpose. So hence no
traveling allowances are given for coming to the office.
    4. BONOUS
    The company is paying is 20 % bonus to the workers during the financial
year. In Sangrose bonus is paid more than the rules of payment of bonus act.
According to the act even if the firm in curse loss minimum bonus of 8.33% of the
total wages as to be given to the workers.
   
5. INSURANCE BENEFITS
In Sangrose all employees are covered under employee’s state insurance
(ESI). Beside that employees are covered by a special group insurance policy of
normal insurance company.

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  6. GRATUITY
Gratuity is an amount paid to an employee on his retirement or death in
appreciation of his post sources in organization.
In Sangrose gratuity is paid according to the rules of payment of gratuity Act.

7. MEDICAL FACILITIES

The organization is also having provision of module facilities. It an employee

full 175 or meats with accident etc. The organization is bearing all the module
expenses. Besides that the company arranged annual medical check up for all
employees.

8. PROVIDENT FUND SCHEME.

The company is having provident fund scheme which employee and employee
contributes equally, generally 12% of salary is deduction and for which the amount
will be contributes by the management. This type of scheme will helps to increase the
satisfaction of employees that as they will get lump sum amount while living the job.

MEASURES TAKEN BY THE MANAGEMENT FOR WORKER SAFETY

Employees are asset of any firm. They are just like the heart of the human
body .If all the employees work hard and given their whole hearted co-operation than
only an establishment will have 1 op and run smoothly.
In Sangrose Laboratories workers (Chemists, and Assist Chemists and Lab
Assistant) who are production department in provided with aprons, Mask, gloves etc
for materials handlings. The factory is tally equipped with fire fighting equipment
training are given to all employees to operate the firm fighting equipment.

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SOURCES OF RECRUITMENT IN THE COMAPANY

a) Advertisement
In Sangrose they use d Direct Advertisement method through newspapers and
magazines.
This direct method is advisable as applicant get on idea about the organization

b) Employee Reference
The workers introduce their friends and relatives having good knowledge in
the field. This hill is taken into Consideration while the emergency of workers needed
in the Organization.

c) Consult In
The potential job sackers approaching personally so Consult Sangrose
regarding the jobs. The company selects the suitable candidate from among rich
candidate through selection process.

d) From Surrounding Place

          The working staying nearby the organization is been given priority whenever
they need unskilled workers.

f) Walk in
Some times the Sangrose company advise the potential candidates to attend
for a interview directly is without a prior application or a specified date, time so at a
specified place. The suitable candidate from among the interviews will be selected for
appointment after screening the candidate through test so interviews.

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SELECTION PROCESS
Selection either internal or external is deliberate effort of the organization to
select a fixed number of personnel from a large number of applicants. The primary
aim of employee selection is to choose those persons who are most likely to perform
their jobs with maximum effectiveness so and to remain with the company.
The selection pattern however is not common for all organization. It varies
from one to another depending on the situation and needs of the organization.
Therefore Sangrose Laboratories they involved application balance, interview so
medical test in the selection procedure.
Application bank will help the company to learn an applicant’s bank growing
so life history. After study of the application bank they select the qualified applicant
and call them for interview. The recruiting officers put questions to the candidates on
various topics and judge their ability to suitability.
When a candidate is found suitable before he is given appointment a medical
test is taken to see that he does not suffer from any diseases. After medical test
candidate found suitable for the jobs are given appointment.

TRAINING
Training is a process of learning a sequence of programmer’s behavior. It is
application of knowledge it gives people an awareness of the rules and procedures
guide their behavior. It attempts to improve their performance on the current job or
prepare them for an intended job.
In Sangrose Laboratories the new works are put to work with the experience
worker, how worker learned form experienced workers gives him necessary
instruction. This method is useful where an experienced or skilled worker requires
helps. In sangrose laboratories follows direct training method to the employees.

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PAYMENT OF WAGES AND SALARY

All employees of the company are paid per day to the pay ‘scale ‘workers are
paid per day wage so staff is paid monthly salary.

WORKING CONDITIONS AND FACILITIES

The firm maintained good working conditions working surroundings are

hygienic and important is given to maintain the cleanliness. Employees have been
provided with adequate and spacious rest rooms. Proper care has been taken to avoid
accidents of any nature since the managing director himself is easily accessible to
workers a good labour manage relationship exists in the firm and hence there is rest
single include of labour dispute in the history of Sangrose Laboratories.

ENTRY AND EXIT

The security section regulates the entry and exit of the personnel and material
to the factory. In case of materials, gate pass is necessary for both entry and exit. Out
Pass systems is also their, were the INS and OUTS are recorded by the security
officer at the gate.

INDUSTRIAL RELATIONS

A good industrial relation is existing in the organization. The management and

the employees jointly find the solution for the problems. There exist a well
maintained relation between employer and employee.

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TRADE UNION

In sangrose laboratories there is no trade union, because there exist a well

maintained relation between employer and employee.
GRIEVANCE

Generally speaking, dissatisfaction is any state or feeling of discontent,

whether it is innate and unexpressed or explicitly expressed. A dissatisfaction which
is orally made known by one employee to another is known as a complaint. A
complaint becomes grievance when this dissatisfaction, which is mostly related to
work, is brought to notice of the management.
In sangrose laboratories their is no grievance, because there exist a well
maintained relation between employer and employee.

MISSION STATEMENT OF THE COMPANY

Mission of the company is for the treatment of leprosy under its multi drug
therapy (M.D.T) and is also used for the treatment of T.B. and Aids patients

25
PRODUCTION DEPARTMENT

26
 PRODUCTION DEPARTMENT

PRODUCTION DEPARTMENT

BULK DRUGS DEPT CAPSULATION DEPT

PRODUCTION CHEMIST PRODUCTION CHEMIST

ASSISTANT CHEMIST
ASSISTANT

WORKERS
LAB ASST

WORKERS

PRODUCTION DEPARTMENT
Product system consists of input at one end and the output at the other. The input and
output are connected by a series of operation or process storage so inspections.

27
PRODUCTION IN SANGROSE
The Sangrose laboratories are producing Basic Drugs and Capsules. Some of the
licensed products are as follows:-
 Basic Drugs – CLOFAZIMINE.
 Capsules – Vitamin A+D
 CLOFAZIMINE
 Black Cumin Seed Oil
 GLOVITE
 NIFEDIPINE
 CEFOZ
 REJUVEN
 ALPRAZOLAM
 PARACETAMOL
 ATENOLOL
 BRUFIN
 PAINKILLER
 SALBUTAMOL
 ERYTHROMYCIN
 RANTIDINE TABLET

MACHINERIES
The various types of machinery and equipment are necessary for the
production of medicine .The plant is equipped with machinery to produce 15000-
20000 kgs basic drug (CLOFAZIMINE) per annum so 20 lack capsules per shift.
The plant basically requires the following machines.
 SS Reactor with condenser
 MS Rubber Lined Reactor
 SS Reactor
 MS Glass Line Reactor

28
  SS Centrifuge
 Rubber Lined Centrifuge
 Multimill (Hammer type)
 Soft Capsulation machines
 Gelatin Cooking Vessel
 Capsulation washing equipment

PRODUCTION REQIUISTIES
To run the plant smoothly so continuously it requires adequate supply of Raw
materials, Electricity and water.
1. Raw materials
The man requites the medicine processing is chemicals. In Sangrose
Laboratories put limited put ltd., the most important raw materials Amino compound
and it is purchased from Baroda.
2. Power and fuel
In Sangrose Laboratories electricity is used as power 90 is required for
working machines so lighting facilities. The company has low tension connection of
100 KVA. But the company intends to convert it into a High tension connection of
250 KVA by installing its own Transformer.

3. Water
The company has pay well in the near by private land in the possession of the
company. The Panchayath water supply is also available to the company. In addition
to this the industrial Estate has its own water supply system.

29
 PRODUCTION PROCESS

RAW MATERIALS

MIXING

ENCAPUSULATION

WASHING

DRYING (2-3 hrs)

WASHING

PACKING

DISPACHING

PRODUCTION PROCESS.
Sangrose Laboratories Pvt. Ltd. is a medicine manufacturing company. As it
has got its own formulas the production process is to be kept secret. It will not
disclose even with the employees of the company. The Managing Director MR.C.K

30
ALEXNANDER, who is the chief chemist in the production unit. Is the key factor
behind the formulation of the medicines.
PACKING
Firstly the Bulk Drug will filled in plastic bag then put it into the metal drums
and sealed. The Drug packed metal Drums contains 35 kg capacity and capsules are
packing in Blisters.

EFFLUENT TREATMENT
The environment is considered as a gift preserved for the future generation our
right is only to protect if not to destroy it.
In Sangrose Laboratories Pvt. Ltd about 15% of its total capital outlay is for
environmental protection. A well defined treatment system has been evolved for the
treatment of effluent
Generated from the manufacture area. A continuously monitory system has
been set into ensure that no harms done to the environment other than daily internal
monitoring an external agency has been appointed for a monthly counter monitoring
of the System.
The Effluent treatment plant has a capacity to treat appointed for a monthly
counter monitoring of the system.
The Effluent treatment plant has a capacity to treat 6000 litters per day both
chemically and biologically. The treated water is used for the cultivation of land.

EFFLUENT TREATMENT PROCEDURE

Row Effluent:-
The Row Effluent being very little in quantity is collected a Rubber lined
concrete tank heated and aerated to concentrate. When a sufficient quality is obtained
it is to be sold to the consultants of the company for neutralizing the alkaline effluents
of other industries.

31
Wash Water:-
The wash water form the production area is collected a separate Rubber lined
tank for treatment. The Effluent is pumped into a mixer come flocculation tank.
Where liquor ammonia or lime is added for neutralizing. The dried mass is permitted
to be used as a land fill by the pollution in Drums and kept sealed for incinerating
they will be incinerated.
The clear overview form the location tank and the filter bed are pumped into
on aeration tank where the clear liquid is generated and then passed into a carbon
filter bed to absorb and then passed into a carbon filter bed to absorb any remaining
organic matters. The filtered liquid is collected in hopper bottom secondary setting
tank. From the secondary setting tank. From the secondary setting tank it is pumped
into another creation tank and biomass is added. After sufficient creation the over
flow passed into clarifier where any suspended biomass is collected into be sludge put
and the clear water is directly passed 3.5 acres of agricultural land for irrigation as
permitted by the pollution control board.
There are above 106 people working in the Company who are regularly
subjected to medical examination by qualified medical practitioner as per the
direction of Drugs controller of Kerala and so far no case of any contagious or other
diseases are reported.

PRODUCTION PLANNING AND CONTROL

Production planning and control are two main aspects of production
management. Production planning and control is an important department of the
company, headed by the senior manger, a senior assistant manger and an assistant
manager are in charge of the day to day activities of the department. Production
planning and control is the planning and organization of the manufacturing process
and co-ordinates the series of function.

32
The elements and functions of Production planning and control are the
following:-
 Routing:-determining the route part for the movement of manufacturing lot
through factory.
 Loading: - refers to work load against a machine or a worker.
 Scheduling:-determines the time of starting and completion of various
operation to be performed.
 Dispatching:-sets the productive activities in motion through release of
order’s and instructions according to timings given in operation sheets, route
card and loading schedules.
Follow Up: - ensures that the necessary instructions have been followed in
their right spirit and necessary materials and tools are made available to workers.
INVENTORY CONTROL
Production manger is supposed to have the control over the cost of production
by reducing wastage of man and materials. So he is to make the best use of materials.
For these purpose, is determined the economic lot sizes, economic order quantity, re
order levels .so that the problems of over and under stock of materials may not arise.
This involves the physical and financial control of materials. Thus is to arrange
procurements of raw materials.

Inventories may be classified into four classes: - Raw Materials, Supplies,

Working in Progress and finished goods. Raw materials for Sangrose Laboratories
are chemicals which are held for processing and production .working in progress are
the raw materials (chemicals) open which work has been performed. Finished goods
are CLOFAZIMINE, BASIC DRUGS I.P/B.P that are ready for sales.

In Sangrose Laboratories Raw materials are stocked for about 3-6 months
due to the seasonal fluctuations. In Sales, stores and spares are maintained to avoid
sporadic break downs, finished goods are marketed immediately because of the high
demand for their product.

33
Objective of inventory control

Fundamental objectives of a good system of operating control of inventories

to be able to place an order at the right time from the right source price and of right
quantity.

Techniques:-
a) Economic Order Quantity.
It refers to as the size of the order that gives maximum economy in purchasing
the materials. Economic Order Quantity is the inventory level which minimize the
total or ordering and Carrying Costs.

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

c) Carrying Cost
Carrying cost refers to the cost of keeping the materials in the stores house
keeping the materials in the stores house. Sangrose Laboratories their carrying
cost is 1% per month.

34
QUALTITY CONTROL DEPARTMENT

35
 QUALTITY CONTROL DEPARTMENT

QUALTITY DEPARTMENT

QUALTITY CONTROL CHEMIST

JUNIOR CHEMIST

LABORATORY ASSISTANT

QUALITY CONTROL DEPARTMENT

Quality of a product depended upon the application if material, men, machines
and manufacturing conditions. The systematic control of these factors is the Quality
control.
Importance of a Quality control
These are many importance by controlling the product Quality. Some of them are
listed below
1. Quality of product is improved which in turn increases sales.
2. Scrap rejection or rework are minimized those reducing wastage. So the cost
of manufacture reduces.

36
 3. A good Quality product improves Reputation.
4. Inspection cost reduces to a great extent.
5. Uniformity in manufacturer knowledge engineers.
6. Improvement in manufacturer and customer relation.
7. Improvement in technical knowledge engineers data for process Development
of manufacturing designs.
Factors Affecting Quality
In addition to men, material machine of manufacturing condition those are
some other factors, which affect the product quality. These are
1. Market Research (Demand of purchase)
2. Money (Capability to invest)
3. Management (Management Packing for quality levels)
4. Production method $ Production Design
Apart from poor packing, in appropriate transportation of poor after sales service
are the areas that can cause damage to company quality image.
In Sangrose Laboratory Pvt.Ltd., the quality control department uses the
following quality control measures
1. Raw material analysis
2. In process analysis
3. Finished Product Analysis
The quality control Laboratory functioning in the company has sophisticated
equipment like U.V Spectrophotometer ,Disintegration testing equipment dissolution
testing equipment ,Electronic PH meters digital electronic balance etc. The qualified
of approved chemists and pharmacists working the company ensure quality to the
product

37
 QUALITY CONTROL TECHNIQUES
 Problem selection.
 Brainstorming.
 Data collection
 Cause and effects analysis.
 Line graph.

QUALITY CONTORL POLICY OF SANGROSE LABORATORIES

VISION QUALITY PLEDGE

We the people of Sangrose limited will
It is our vision to cherish and nurture
create an enterprise committed to
Sangrose laboratories .in the position of
quality. it is our policy to design
a leader of the pharmaceuticals in India,
manufacture and service our products to
who is also recognize and respected as a
provide level of products of quality and
manufacturer of world class product.
value that meets customers need,
We shall create in Sangrose Limited a
We will aim to generate customer’s
company of people who enjoy working
enthusiasm through continuous
as a team and with our customers to
improvement in our product and
create the superior and distinct product
services.
and services.
Focused fast and flexible we seek never
ending improvements in order to create We are committed to excellence in the
an enterprise that is dynamic, ever way we work together with in the
expanding and profitable and in organization as well as out side aimed at
constant persist of customer total customer satisfaction.
satisfaction.

38
MAINTENANCE AND ENGINEERING DEPARTMENT

In Sangrose, maintenance of engineering Department deals with the

mechanical as well as the electrical maintenance even through production department
has their own set of inspection of maintenance supervisors, major repairs are carried
out by the maintenance departments.
MECHANICAL MAINTENANCE

The mechanical maintenance department or sectors is headed by the

mechanical maintenance head. One supervisor and some helpers assist him. Usually
scheduled maintenance is carried out. Apart from weakly checkup for

Machineries in the processing department is carried out. In addition to this

lathe and welding work is also carried on.
The cost of maintain is calculated on the basis of maintain hours spend and the
reports is submitted to the account departments on a monthly basis.
ELECTRICAL MAINTENANCE

Electrical maintenance section is headed by electrical scheduled maintenances

is carried out .The inspection and report of all electrical systems and within the
factory is carried out by the electrical maintenance section.
Description of Planned Preventive Maintenances Programme.
 All equipments are cleaned thoroughly before and after production.
 At regular periods machines are reassembled and service like lubricating is
also done.
 Individual maintenance manuals are kept for equipment and any servicing or
replacement is dully recorded.

39
PURCHASE & STORES DEPARTMENT

The importance of the purchasing function varies with the nature & size of the
industry. In small factories this function is performed by works manages but in large
manufacturing concerns where large qualities of materials are consumed, the buying
function is given to a separate department.
Objectives
The main objectives of purchasing department are:
1. To purchase required products of light quantity
2. To purchase at right time
3. To purchase from a reliable supplier
4. To purchase in right quantity
5. To purchase economically.

PURCHASE DEPARTMENT
This department is in change of all purchases connected to the company.
Right from stationary to plant materials. Stationary fall under general stores. The over
all stores department is under the management of purchase department

ACTIVITIES OF THE PURCHASE DEPARTMENT

The department is responsible for the procurement of the required material as
well as issuing the items to the different departments according through its structures
development.
PURCHASING PROCEDURE
The purchase department receives a recursion of the amount required in the
plant in case of items needed for production process through the stores department.
However, it usually makes estimation as to when referring to the stock ledge or that is
submitted to the manager every month needs the requirements for local purchase that

40
is for those items that can be purchased locally local Indent is made by the purchase
department & send to the supplier.

STORES DEPARTMENT

STORES DEPARTMENT

STORE MANAGER

STORE IN CHARGE

STORE KEEPER

STORES DEPARTMENT
All items used in the plant of finished products are kept in the stores. It is divided
in to four sections namely.
1. Chemical
2. Packing materials
3. Finished product
4. General

41
RECEIPT PROCEDURE

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

purchased item for quality to quantity is made. After the items have been inspected
and verified they are stocked in bins or cupboards. Incase the items is not big in size
for large items. They are stocked on metallic racks the packs.

Orders received are then entered in the Register followed by the stock receipt.
This is entered in the stores ledger. The particular on the stores ledger are later
entered in the computer for their cases access in case the records have to be referred
as a later date.

ISSUE PROCEDURE:

The issuing of materials is done on F1F0 basis.

After the materials are issued its particular are entered on the stores ledger.
These particulars on the stores ledger are entered into the computer.

 rade
 Hours worked
 Scheduled Shif
WORKING HOURS
FIRST SHIFT
Office and general shift : 9.00.Am to 5.30.Pm.
Tea break : 10.30. Am to 10.45 Am.
Lunch break : 1.00.Pm to 1.30.Pm.
Tea break : 3.15.Pm to 3.30.Pm.

SECOND SHIFT
Second shift : 5.30.pm to 2.00.Am.
Break time : 7.00.Pm to 7.15.Pm.

42
Meals break : 9.00.Pm to 9.30.Pm.
Break time : 11.45.Pm to 12.00.Pm.

MARKETING DEPARTMENT

43
 MARKETING DEPARTMENT

MARKETING DEPARTMENT

MARKETING MANAGER

STAFF OFFICIAL

MARKETING DEPARTMENT

The term “market” is divided from the Latin work marketers, which means
trade, merchandise, ware, traffic or place of business. In short, it means a certain
place where goods are bought and sold. It is the market that provides a basis for
marketing.
Marketing is an economic process by means of which goods and services are
exchanged and their values determined in terms of money prices. It is the sum total of
all those activities which are related to the flow of goods from the point of origin to
the point of consumption or use. It can also be defined as those activities through
which human wants are satisfied by exchanging goods and service. It is also a skill of
selecting and fulfilling consumer desires in such a way that a certain quantity of
money put in brings back maximum return.

44
 In the word of “C.C.knight “ marketing embraces all efforts made in the
discovery of consumers actual and potential requirements for commodities and
services and the steps taken for securing their actual distribution.
Marketing is gigantic machinery that creates a bridge between producers and
consumers and makes the good move by creating time, place and possession utilities.
It is the sum total of all those activities that are related to the free flow of goods from
points of production to points if consumption. Turning out a product is not an end
itself. Getting some one to buy that product is the main objective.
Thus, this scope of marketing includes all these activities in discovering the
potential requirements of consumers for goods and services and is distributing them
from producers to the consumers.

MARKETING DEPARTMENT OF THE COMPANY

In the earlier chapter already mentioned that the company has two types of
product, basic drugs and capsules. Bulk drug manufactured by the company is
exported to Switzerland with the help of foreign company named “NOVAT IS” the
products are sold by SANGROSE LABORATORIES PVT.LTD in Switzerland in the
name of Novatis. The capsules are supplied to central purchasing committee of Govt
of India through tender. Black cumin seed oil capsules are also exporting to Srilanka.

In Sangrose Laboratories there are 25 brands. Some of the brands are

antibiotic, antifungal, antitoxin, vitamin E, antioxidants. Positioning of some products
are antifungal for soft gelatin capsules, antioxidants for sun protection,
deepickmentory agent for skin ageing. Every product is in introduction stage. Some
of the market leader’s antifungal is zockon. The market share of the each product
category is less than .01 percent.

The total selling force is 10 peoples. The structure of the company is as field
sales executives, regional manger and marketing manger. The meeting of the
company with the bosses and the subordinates is once in a month. The target is
growing to 20-30 percents. Control is been exercised by the administrative control.

45
They motivate their sales man by incentives, recognition, awards etc. the company
have a depots and also have stockiest and carry forward agents. The discount
structure of the company is 20 percent to retailers and 10 percents to stockiest. The
collection system of the company is 60 days time duration.

Competitors:-
The company enjoys monopoly position in the production of the Basic Drugs
‘CLOFAZIMINE’. In the case of other drugs they face little competition from Lark
Laboratories, Invines Laboratories etc.

PRICING POLICIES
Pricing is the marketing function whose importance is acknowledged even
more easily than that of other functions. From the point of view the consumer, the
price of the medicine products as compare with the quality, quantity and package
offered by Sangrose Laboratories determines weather he will consider buying the
product or not.
Price denotes the value of the product of service expressed in money. It
regulates business profits, allocates the economic resources for maximum production
and distribution. Thus it is the prime regulator of production, distribution and
consumption of goods. Every marketing plan involves pricing decisions and hence
price is a powerful marketing function.
Decisions on pricing are taken on the basis of various factors influencing
price, such as demand for the product, acceptance of product, completion and other
existing market conditions. The pricing policy of Sangrose Laboratories Pvt.Ltd,
which is basically responsibility of the marketing department, is a function basically
of cost and demand factors. The price charged must be enabling the Sangrose
Laboratories products to recover the cost of production and also earn a reasonable
margin of profit.

46
ADVERTISING
The term ‘advertising’ is derived from the Latin word ‘advert era’ that means
to ‘turn the mind to ‘. In abroad sense, anything that turns attention to an appeal made
to a large number of people. It constitutes a mass approach contrary to the limited
approach in the salesmanship of the salesman. Advertising is employed to promote
bright image of the firm in the society.
The Sangrose Laboratories Pvt.Ltd is the only company in Kerala
manufacturing ‘CLOTAZIMINE’ and is the third in India. The other two being
multinational competition is avoided by maintaining the quality of the product.
The company concentrates only in institutional or good will type
advertisement. Institutional advertising is designed to promote an idea or the name of
the company in the eyes of public.
Sangrose Laboratories expense on advertising is very meager that does not
mean to say that the company has compromised on advertising. The firm has
advertised its product effectively and adequately. This can easily be judged by the
reputation enjoyed by its products both in domestic and international market.
SALES PROMOTION
Sales promotion is an important marketing strategy. It is concerned with the
creation, application and dissemination of materials and techniques that supplement
advertising and personal selling. In present days sales promotion activities are viewed
more from the angle of an investment in business rather than expenditure it is an
necessarily and not merely a luxury or a fashion.

Sales promotion undoubtedly days rich dividends in the long run. It is

responsible for awakening and stimulating consumer demand for a product. Its
importance can be judged from its ability to create demand, captivate demand from
rivals and maintain demand for their products even against keen competition.
SALES MANAGEMENT
The sales function of a business is basic function particularly in a commercial
concern that is whole sale or retail trade. The volume and the value of sales and

47
consequent margin of profit ultimately govern the size of a business, its pattern of
organization and the financial and personal problems.

The sales management is a term applied to the process of distributing the

goods form the producer to the ultimate user or consumer. It covers selling,
advertising and sales promotion, transportation handling, financing and risk taking.

Sales management represents one of the most important functional areas of

management in Sangrose Laboratories Pvt. Ltd. The firm has successfully coordinate
activities such as planning, organizing, direction, motivation, and control and applied
those sales management for securing better performance namely reasonable profit
through service.
SALES PLANNING
Planning is a managerial function. It invokes the selection from among several
alternatives, enterprises, objectives, policies, and procedures, programmers and
schedules. As a part of marketing planning covers sales forecast, sales programmers
to achieve sales goal and marketing planning covers sales forecast, sales programmers
to achieve sales goals and marketing future course of action regarding the marketing
and selling of a product. The picture of sales program in connection with the
launching of sales campaign in future is based on objectives, policies and procedures.

Sangrose Laboratories sales planning is initiated by laying down the

objectives desires to be achieved. The various alternatives before it are evaluated and
form among those the most appropriate course of action is selected which may fulfill
predetermined goals. Finally the selected plan of action is chattered out and
implemented.
MAJOR CUSTOMERS OF THE COMPANY
Sangrose Laboratories sell its products to local area and also export their
products. Therefore the company is having local customers and international
customers.
Given below are the customers of the company

48
 1. Overseas customers.
2. Local customers.
3. Government supply (central purchasing committee).
4. Outside state customers.

SOME OF THE NATIONAL LEVEL OF CUSTOMERS:

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

These are the customers for capsules in India. The final products are handed
over to the excise and they check them for dispatching .CPC is basically their
customer. The distribution is by Road and Rail.

CHANNELS OF DISTRIBUTION
Distribution is defined as the process of getting the product form the factory
into the hands of the ultimate consumer or users. Distribution is an important function
of modern marketing, which enables the consumer to enjoy higher standards of living
and get more enjoyment and comfort out of life.

DISTRIBUTION CHANNELS
Distribution channels are the various routes or path ways through which goods
and services flow from producers to consumers, in the right quantity at the right place
and at the right time.
A distribution channel may have a number of stages and a number of
intermediates between the producer and the buyer. Distribution channels vary among

49
different industries. Each channel pays a significant role in distribution having their
own distinct advantages and disadvantages.

DISTRIBUTION CHANNELS SET UP AT SANGROSE LABORATORIES

Manufacturer –Importer- Conversion of basic drug to capsules - Consumers.
CAPSULES
Manufacture- Central purchasing- Committee- Consumers.

FINANCE DEPARTMENT

50
 FINANCE DEPARTMENT

FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTANT CLERK

FINANCE DEPARTMENT
Before knowing about the financial management it is necessary to know
ACCOUNTANT
something about finance. A.L. King has started “Finance is only common denomination
for a vast range of corporate objectives. The major part of any corporate plan must be
expressed in financial terms”. Finance holds the key to all human activity it is the guide
for regulating investment decision and expenditure and endeavors to queeze the most out
of every available rupee
Financial management is an important branch of business administration. In the
words of Howard and Upton “financial management principle to a practiced of operation.
Financial management is that part of the management concerned with the
procurement of funds in most suitable and economical manner using the funds procured
profitability, planning future operations and controlling current performance and future
development through cost accounting budgeting statistics and so on. It provides the guide
for future resource allocation by a firm.
Financial management is the dynamic evolving or making of day to day financial
decision in a business of any size. It is important because it has an impact on all51the
activities of a firm.
 Financial management applies to an organization irrespective of its size,
nature of ownership and control and whether it is manufacturing or service
organization. So on modern money oriented economy for any organization with out
effective and efficient financial management the survival and the growth will be a
dream.

OBJECTIVE OF FINANCE DEPARTMENT IN THE COMPANY

Financial management is that managerial activity which is concerned with

planning controlling rising and administration of funds used in the business. It
involves a sound judgment combined with a logical approach to decision making.
Following Are the Objective of Financial Management

MAXIMIZATION OF PROFIT

Profit maximization is the basic criteria for the decision arrived at by the
financial managers where the benefits and the cost of a course of action can be
quantified, value maximization is appropriated criterion. The profit maximization is
important criterion because the business is considered as an economical institution
and profit isolation as a rational indicator of the success of the business.

MAXIMIZATION OF WEALTH

52
 This objective is as important as the profit maximization. Maximizing the net
present worth of a firm can do this. Raising the price of the common stock can
maximize the wealth of the owners of the organization.

MAINTAINING LIQUIDITY AND PROFITABILITY

The immediate object of financial management is to maintain liquidity and

improve profitability. Maintaining liquidity is concerned with current assets
management. Hence it is seen that the stock turnover is very high by medically selling
the finished product and the proceeds are used for the procurement of the raw
materials.

GRAPHICAL REPRESENTATION OF VOLUME OF PROFIT AND LOSS.

Given below is the volume of profit and loss for the last 5years of
SANGROSE LABORATORIES PVT.LTD.

WORKING CAPITAL MANAGEMENT

The success of many business operations depends upon the manner in which
its capital is managed. Thus working capital is considered as the life hood of a
business concern.
Working capital is simple terms is the amount of funds which a business
concern has to finance in its day to day operation. It can also be regarded as that
proportion of a company’s total capital which is employed in short teem operations.
Two important concepts of working capital.
1. Gross concept
2. Net concept

53
FACTORS INFLUENCING THE WORKING CAPITAL REQUIREMENTS
IN THE COMPANY

Working capital management is a significant fact of substantial management.

Are working capital needs of a firm are influenced by following factors.

NATURE AND SIZE OF THE BUSINESS:-

The working capital requirements of a firm are closely related to the nature of
the business. In the pharmaceuticals industries like Sangrose Laboratories, they are
manufactures of Basic Drugs and Capsules. They do both trading and manufacturing
activities so they require more working capital.

SEASONALITY OF OPERATIONS:-

Firms, which have a market seasonally in their operations usually, have highly
fluctuating working capital requirements. The sales for the Sangrose Laboratories
become seasonal as the company depends on tenders invited by the Govt of India.
This leads to heavy stoking of raw materials and finished goods at the beginning of
the financial year.
The sales of Sangrose become seasonal as the company depends on tenders
invited by the Govt of India. This leads to heavy stocking of Raw materials and
finished goods at the beginning of the financial year.

CONDITIONS OF SUPPLY

The inventories of raw materials, spares and stores depend on the conditions
of supply. In Sangrose Laboratories chemical, mainly imported are the raw materials.
They have to be stored for future. When they are not available indigenously. They
store at least 3-6 months,

54
AVAILABILITY OF CREDIT

If cheap and liberal credit facilities are available, then the working capital
requirements may be less because of excess of working capital requirement may be
financed by such credit. In Sangrose Laboratories, raw materials are stocked for about
3 to 6 months due to seasonal fluctuation in sales.

NEED FOR WORKING CAPITAL

Thus working capital is needed for the following purpose.

 Purchase of raw materials (chemicals, spares and components).
 To pay wages and salaries.
 To meet the day to day expenses and over head cost such as power, fuel and
office expenses etc.
 To meet the selling expenditure like packing and advertising.
 To provide the credit facilities to the customer.
 To maintain the inventories.

FACTORS DETERMINING WORKING CAPITAL IN THE COMPANY

The determinant for working capital arises because of time gap in

manufacturing and marketing cycle of business operations. This time gap is due to
time gap between (a) purchase and production. (b) Production and sales (c) sales and
realization of cash.
During those intervals, the company should have ready working or operating
funds to keep the business going. Thus the working capital is needed for the
following purposes.
 Purchase of raw materials (chemicals), spares and components.
 To pay wages and salaries

55
  To meet the day to day expenses and over head costs such as power fuel and
office expenses etc.
 To meet the selling expenditures like packing and advertising.
 To provide credit facilities to the customers.
 To maintain the inventories.

CREDIT POLICY
The company should have standards applied in accepting and rejecting a
credit. Sangrose Laboratories do have some stands for credit granting. They have
grantor for selling their products who in turn sell the product. They sell on credit basis
and to new against advance payment.
CREDIT PERIOD
The credit period refers to the length of time customers are allowed to pay for
their purchase. Sangrose Laboratories give a credit period of 15 days and grace
period but for the outstation party it various from 60 days to 100 days.
TRADE DISCOUNTS
Firm generally offer trade discounts to induce customers to increase sales.
Sangrose Laboratories gives Trade Discount for the bulk purchases.

COLLECTIONS
The collection programs of the firm aimed at timely collection of receivables.
In Sangrose Laboratories collection are done through bank where letter of credit is
only for export goods. They do have concentrating bank system in Bombay.

CREDIT EVALUATION
Before granting credit the firm most knows the credit worthiness of customer’s.

MANAGEMENT OF CASH

56
 Cash management is one of the key areas of working capital management cash is
the basic input needed the business running on a continuous basis. Cash is the most
liquid asset.
 Cash management is concerned with managing of:-
 Cash flows inflows and outflows of the organization.
 Cash flows with in the firm
 Cash balance retained with firm where there is deficit or when is surplus cash
for investing.

RATIO ANALYSIS
A Ratio analysis is a simple arithmetical expression of the relationship one
number to another. Ratio analysis is technique of analysis and interpretations of
financial statements of a company. A Ratio analysis helps the analysts to make
qualitative about the company finance performance.

ANALYSIS FOR LIQUIDITY

Liquidity refers to the ability of a concern to meet its current obligation as and
when they became due the following ratios are applied to judge the liquidity.
 Current ratio
 Acid test ratio
Current Ratio
Current ration is the important term of ratio analysis. It means the relation
between current asset and current liabilities. By computing current ratio is dividing
current asset and current liabilities

Current Ratio = Current Asset

Current liabilities

ACID TEST RATIO

Liquid or acid test ratio is rigors test of Liquidity then the firm the Liquidity
refers to the ability of a firm of pay its short firm obligation as and when they are due

57
quick ratio may be defined as the relationship may be defined as the relationship
between quick asset (excluding inventory and prepaid expense) and current liabilities.
Quick Ratio = Quick Asset
Current liabilities
Preparation of Final Accountant
In preparation of final accountant is the important task. It ascertains the firm’s
financial positions .in Sangrose Laboratories final accountant prepared for every
financial year 31st march. And also prepared for six month cash trial.

COST ACCOUNTING

It is the method of accounting for cost. .cost accounting is the process of

recording, classifying, allocating and reporting various costs incurred in the
operations of an enterprise. In Sangrose Laboratories maintain the cost accounting
system and also maintain standard costing. It helps to ascertain the cost of finished
products.

SYSTEM OF INVENTORY CONTROL

Production manger is supposed to have the control over the cost of production
by reducing wastage of man and materials. So he is to make the best use of materials.
For these purpose, is determined the economic lot sizes, economic order quantity, re
order levels .so that the problems of over and under stock of materials may not arise.
This involves the physical and financial control of materials. Thus is to arrange
procurements of raw materials.

Inventories may be classified into four classes: - Raw Materials, Supplies,

Working in Progress and finished goods. Raw materials for Sangrose Laboratories
are chemicals which are held for processing and production .working in progress are
the raw materials (chemicals) open which work has been performed. Finished goods
are CLOFAZIMINE, BASIC DRUGS I.P/B.P that are ready for sales.

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 In Sangrose Laboratories Raw materials are stocked for about 3-6 months
due to the seasonal fluctuations. In Sales, stores and spares are maintained to avoid
sporadic break downs, finished goods are marketed immediately because of the high
demand for their product.

RESEARCH AND DEVELOPMENT

The company has a research development lab functioning with all

sophisticated equipment. Their main object is developing process know-how for life
saving drugs. They also develop combination of those drugs that can produce at lower
cost. Sangrose is spending a reasonable portion of its turnover for its R&D
department. A qualified team is constantly working with the department to develop
the competitive products which makes Sangrose an identifiable company in the
market. The team developed some challenging and intends to start manufacturing
them in the near future.

FUTURE PLANS

Sangrose laboratories are expanding its product line constantly. As a part, new
formulation division is on the anvil which can manufacture tablets, liquids orals and
hard gelatin capsules. This unit proposed to commission this year. A subsidiary of
Sanagrose is on the pipe line named Sangrose Drug Chemicals Pvt.Ltd, which
intends to manufacture basic drug. The plant is proposed to function in the next year.
Following are the basic drugs, which are planning to be manufactured in Sangrose

Drug Chemicals.Ltd
Dapsone –BP/USP (Anti Leprosy)

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Pyrazinamide -BP/USP (Anti T B)
Imipramine -BP/USP (Anti Depressment)
Ethambutol - (ANTI TB)

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 SWOT ANALYSIS
A scan of the internal and external environment was an important part of the
strategic planning process. Environmental factors, internal to the industry are
classified as strengths or weakness and those external to the industry are classified as
oppertunities or threats. Such an analysis of the strategic environment is reffered as
SWOT Analysis. SWOT Analysis is an important aide for the management when it
comes from making critical dicisions. SWOT is an acronym for strengths, weakness,
opportunity & threats.’ Threats & oppertunities ‘ represent the positive spects ,
where as the’ weakness &threats’ represent the negative aspects that the company
should try to overcome.

After a keen observation over the organisation and the various department of
Sangrose the following strengths, weakness, oppertunities & threats are known. The
basic objective of SWORT Analysis is to provide a frame work to reflect on the firm
ability to over come barriers &availof the opportunities emerging in the environment.
Indeed the dimensions of the internal capabilities have relianceis so far as they relate
to the environmental conditions. The followings are the sme of the strength,
weakness, opportunities &threats of Sangrose pharmacy.

STRENGTH
 GMP Certificate
 Only manufacturing of CLOFAZIMINE in Kerala
 Long term relationship with the customers indicate the trust in their product
 Industrial Estate

WEAKNESS
 No healthy communication between the departments
 Advertising expenses is very meager

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 OPPORTUNITIES

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

 Good scope in case the firm import machinery from absorb to increase the
capacity
 Direct marketing

THREAT
 Advertisement done by other players to capture the market
Substitute product manufactured by other laboratories.

FINDINGS
 According to the study of sangrose capacity utilization is very low.

 Most of the times the company is facing the problem of high or low inventory
level which is resulting in high inventory cost.

 The relationship between top level management & workers is not good
enough.

 More promotional measure are to be under taken to create customer awareness

of the product.

 There is high wastage of raw materials during the production process.

 There is no product diversity.

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SUGGESTIONS

 So the company should try to utilize its capacity at an optimum level to reduce
cost
 High/low inventory level must be avoided in stores department. For this
purchase department must follow the concept of EOQ strictly.
 Relationship between top level management &workers must be strengthened.
 Duration of free demonstrated must be implemented to give opportunities to
customer to test the product personally. This strategy attract more consumers
& create customer awareness of the product.
 Product strategy should be designed such a way that it can capture the market
share &can be able to reduce wastage of over production.
 Firm should be produce more other products.

After conducting the organization study at sangrose laboratories one can

understand how well they manage the entire plant how to keep the process going at
times of crisis.The study gives an insight in to the majour financial areas namely
production , HR, finance & marketing. Though this study it is understood that no
importance is given for quality of work life & quality circle. Thus management need
to focus on the aspects. Even free lunch & recreational programmers can motivate
them.

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 Plant Layout

Effluent
treatment plant

W Plant No 1 Plant No 2
o
r
k
s
QA QC R&D
h
o
p Soft capsule plant

W
a
r MD’S CONCLUSIONS Guest Room
e Cabin
h
o Office
u Administration
s
e Marketing Finance

E
n
t
r
a
n
c Cream & Tablet Packing
e Oilment Section

Liquid & Head Packing

Syrup gelatin

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 CONCLUSION

SANGROSE LABORATORIES is the only company manufacturing

CLOFAZIMINE in Kerala and third in India. This will created the high demand of
their products.
The company is enjoying both the benefits of the small scale industry and the
company form of the organization. As it is incorporated as private limited company
and registered as a small scale industry.
The company plays an important role in the National Leprosy Education
Program (NLEP) introduced by the government of India under the aid of WHO. This
will help the company certain concessions for exporting.
SANGROSE LABORATORIES PVT LIMITED is the capital intensive and
power oriented project in the small scale sector promoted with the objective of rural
development.
It is the policy of SANGROSE LABORATORIES to supply medicines
conforming to quality standard specified by customers at agreed prices and to their
satisfaction.
The promoters of the company have considered all the infrastructure facility
for starting up the required by the small-scale industry.
Since the sales for SANGROSE LABORATORIES become seasonal there is huge
requirement of working capital because the company depends on tenders invited by
the Govt of India. This leads to heavy stocking of raw materials and finished goods at
the beginning of the financial year.

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 BIBLIOGRAPHY

1. BERI G.C.Marketing research, New Delhi.

2. Gupta S.P, Statistical Method, New Delhi, S.Chand and Company Ltd
3. www.sangrose.com
4. www.google.com
5. Published document of the company.

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