Himalaya Drugs Company 1289-2
Himalaya Drugs Company 1289-2
Himalaya Drugs Company 1289-2
CHAPTER -1
INTRODUCTION
The internship program gives the required knowledge, experience and skill sets in which to those
people who are looking out to explore their careers in the coming future times Generally, an
internship consists of an exchange of services for experience between the student and an
organization.
Internship program is a 4 week based program to serve the twin objectives of better learning
skills and providing the most critical business insight.
Internship program is done at Himalaya Drugs Company for the following topic,
INDUSTRY PROFILE
Pharmaceutical companies can be divided between those who deal in generic and brand
medications. To elaborate a bit on the process, drug development refers to activities undertaken
after a compound is identified as a potential drug in order to establish its suitability as a
medication. Companies then apply for patents which grant exclusive rights for a drug or it’s
processing for up to 20 years. Such patent protection enables the owner of the patent to recover
the costs of research and development through high profit margins for the branded drug. After all
licensing and approvals, pharmaceutical companies then spend massive amounts on advertising
and marketing.
By the 19th century, many of the drugstores in Europe and North America had eventually
developed into larger pharmaceutical companies. The pharmaceutical industry has two distinct
functions: research and development (R&D), and manufacturing.
Research-oriented firms include the large, well-known drug producers, which are often
multinational firms with a presence in the three largest drug markets The United States, Europe,
and Japan. Others are smaller, and usually younger, firms that are attempting to develop a
narrower range of products. This grouping includes most biotechnology firms, few of which
have so far succeeded in bringing the results of their research to market.
Pharmaceutical industry in India
The Indian Pharmaceutical Industry currently tops the chart amongst India's science-based
Industries with wide ranging capabilities in the complex field of drug manufacture and
Technology. A highly organized sector, the Indian pharmaceutical industry is estimated to be
worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high amongst all the
Third world countries, in terms of technology, quality and the vast range of medicines that are
manufactured almost every type of medicine is now made in the Indian pharmaceutical industry.
There are approximately 250 large units and about 8000 Small Scale Units, which form the core
of the pharmaceutical industry in India. Recognizing the potential for growth, the Government of
India took up the initiative of developing the Indian Pharmaceuticals sector by creating a
separate Department in July 2008. The Department is entrusted with the responsibility of policy,
planning, development and regulation of Pharmaceutical Industries.
An assessment of the Indian Pharmaceutical Industry strength reveals the following key
features:
Strong export market- India exported drugs worth US$ 8 billion to more than 200
countries including highly regulated markets in the US, Europe, Japan and Australia
.Large Indian pharma companies have emerged as among the most competitive in the
evolving generic space in North America and have created an unmatched platform in this
space. Indian companies are also making their presence felt in the emerging markets
around the world.
Indian players have also developed expertise in significant biologics capabilities.
Low cost of production.
Low R&D costs.
Innovative Scientific manpower.
Excellent and world-class national laboratories specializing in process development and
development of cost effective technologies.
Increasing balance of trade in Pharma sector.
An efficient and cost effective source for procuring generic drugs, especially the drugs
going off patent in the next few years.
The Department of Pharmaceuticals was created on the 1st of July in the year 2008 in the
Ministry of Chemicals & Fertilizers so as to provide greater focus for the growth of the high
potential Pharmaceuticals industry.
The Ministry has been given the following mandate for catalyzing the growth of the pharma
industry in the country -
Education and training including high end research and grant of fellowships in India and
abroad, exchange of information and technical guidance on all matters relating to
pharmaceutical sector.
Promotion of public - private - partnership in pharmaceutical related areas.
International cooperation in pharmaceutical research, including work related to
international conferences in related areas in India and abroad.
Current Scenario
India's pharmaceutical market grew at 15.7 per cent during December 2017. Globally, India
ranks third in terms of manufacturing pharma products by volume. The Indian pharmaceutical
industry is expected to grow at a rate of 9.9 % till 2016 and after that 9.5 % till 2015. The Indian
pharmaceutical market is expected to touch US$ 74 billion sales by 2020 from US$ 11 billion.
The market has the further potential to reach US$ 70 billion by 2020 in an aggressive growth
scenario.
Moreover, the increasing population of the higher-income group in the country will open a
potential US$ 8 billion market for multinational companies selling costly drugs by 2015.
Besides, the domestic Pharma market is estimated to touch US$ 20 billion by 2015, making India
a lucrative destination for clinical trials for global giants. Further estimates the healthcare market
in India to reach US$ 31.59 billion by 2020.
Government Initiative:
100 per cent foreign direct investment (FDI) is allowed under the automatic route in the
drugs and pharmaceuticals sector including those involving use of recombinant
technology. (DIPP)
The Government plans to set up a US$ 639.56 million venture capital (VC) fund to give a
boost to drug discovery and strengthen the Pharma infrastructure in the country.
The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making
India one of the leading destinations for end-to-end drug discovery and innovation and
for that purpose provides requisite support by way of world class infrastructure,
internationally competitive scientific manpower for Pharma research and development
(R&D), venture fund for research in the public and private domain and such other
measures.
Investment:
The healthcare sector has attracted growing investor support in 2010 with nearly a tenth of the
total private equity funding going to this sector. In the third quarter the calendar year 2010, a
total of US$ 2,047 million was invested across 88 deals, of which 9 per cent were healthcare
deals.
The Pharma, healthcare and biotech sector witnessed five merger and acquisition transactions
(M&A) worth US$ 250 million.
The drugs and pharmaceuticals sector has attracted FDI worth US$ 1,825.43 million between
April 2011 and September 2020.
Hyderabad-based Natco Pharma plans to raise US$ 22.22 million to fund its expansion
plans and research activities.
Private equity major Capital has made its first investment in the pharmaceutical sector in
the country by investing US$ 15.86 million into Celon Labs, which will use the funds to
double its manufacturing facility.
Belgium based Helvoet Pharma, part of the Daetwyler Group is setting up its first
Greenfield production facility in Khandala Industrial Area, phase I (SEZ), on Pune -
Bangalore Highway, near Pune. The company has invested US$ 26.56 million for the
plant.
Swiss Pharma major invest around US$ 55.33 million through its Indian subsidiary in a
phased manner in Genome Valley project, Hyderabad, said Stefan Borgas, CEO, Lonza.
CHALLENGES:
Over the past decade, pharmaceutical companies have entered a difficult period where
shareholders, the market and regulators have created significant pressures for change within the
industry. The core issues for most of drug companies are declining productivity of in-houseR &
D, patent expiration of number of block buster drugs, increasing legal and regulatory concern,
and pricing issue. As a result larger pharmaceutical companies are shifting to new business
model with greater outsourcing of discovery services, clinical research and manufacturing.
Current global financial conditions and the threat of a broad recession accelerated the timetable
for implementing transformational changes in global organizations, as the industry confronts
lower corporate stock prices and an increasingly cost-adverse customer. Leaders of the largest
global pharmaceutical companies recognize the need for transformational change in their
organizations, but will need to move swiftly to ensure sustained growth.
Today Indian pharmaceutical Industry can look forward to the years to come, with great
expectations. There are opportunities in expanding the range of generic products as more
molecules comes off patent, outsourcing, and above all, in focusing into drug discovery as more
profits come from traditional plays. At the same time, the Indian Pharma Industry would have to
contend with several challenges particularly the
CHAPTER – 2
COMPANY PROFILE
The Himalaya Drug Company is a company established by M Manal in 1930 and based
in Bangalore, India. It produces health care products under the name Himalaya Herbal
Healthcare whose products include ayurvedic ingredients. It is spread across locations in India,
the United States, the Middle East, Asia and Europe., while its products are sold in 92 countries
across the world.
The company has more than 290 researchers that utilize ayurvedic herbs and
minerals. An Hepatic drug, named Liv.52, is its flagship product, first introduced in 1955. Liv.52
to date has now over 215 clinical trials backing it
Himalaya Global Holdings Ltd. (HGH), is the parent of The Himalaya Drug Company
worldwide. It is also the global headquarters of all Himalaya subsidiaries.
The Himalaya Drug Company
Type Private
Founded 1930; 88 years ago
Headquart Bangalore,
ers
Area Worldwide
served
Key people M.Manal(Founder),PhilipHaydon
(CEO),Nabeel Manal (CEO)
Products Herbal ayurvedic medicine, Nutrition,
Personal Care, Baby Care , Animal
Care
Founded by M Manal, the Himalaya Drug Company's history began in 1930. According
to Himalaya Wellness, Manal's motivation and "vision was to bring the traditional science
of Ayurveda to society in a contemporary form." Nonetheless, in 1934, Serpina, derived from
Rauwolfiaserpentina, became "the world's first natural antihypertensive drug". Another product
soon became the Himalaya drug company's bestselling medicine, Liv. 52. This product, created
in 1955, is "a liver formulation that ensures optimum liver function.” In the 1930s, the company
was based in Dehradun, but subsequently it advanced to Mumbai and extended across India.
Then, in 1975, it established a factory in Makali, Bangalore. Finally, in 1991, the company
moved its research and development facility to Bangalore. Meraj Manal pioneered the growth of
the company in the USA, first with a range of dietary supplements falling in line with the norms
of the Dietary Supplement Health and Education Act of 1994 in 1996, and then personal
careproducts in 1999, under the brand name Ayurvedic Concepts, that later bloomed into the
exquisite Himalaya Herbals. Today, the company has offices across the globally , including
India, USA, South Africa and other countries in Europe, the middle east, and Asia.
Every year, 300 million Himalaya products enter the homes of consumers around the
world. With a range of over 300 healthcare and personal care products including brands like
Liv.52, Cystone, and Bonnisan, we touch the lives of millions of customers worldwide, giving
them products that help them lead healthier, enriched lives.
In a time when herbal products were regarded with scepticism, our founder's belief in the
healing power of herbs was unwavering. He felt that if people were offered safe and effective
herbal medicines, they would come to accept them as part of their healthcare routine. He
believed that herbal medicines could and should be evaluated on the same quality and efficacy
parameters as conventional medicine. This was possible through empirical research. Once
scientific research proved that herbal products worked, even doctors could be won over. This
was a big dream with big challenges. But he persevered on despite the obstacles.After four years
of researching the herb Rauwolfiaserpentina, Serpina®, the world's first natural antihypertensive
drug was launched in 1934.
Himalaya shares a close relationship with nature. We are in the business of not only
promoting good health but also safeguarding the health of our planet. Ever since our inception,
we have taken great care to protect biodiversity, collect herbs in a sustainable way and promote
good agricultural practices.
In 1955, Himalaya introduced Liv.52, a liver formulation that ensures optimum liver
function. The product soon became our flagship brand and a top selling herbal medicine. Other
brands soon followed including Cystone, Bonnisan and Rumalaya forte, products that went on to
become household names.
A year later, we expanded our portfolio to include animal health products with the
objective of caring for the health and well-being of animals.
With our expanding wide range of products and growth in international markets, Himalaya
underwent a rebranding where the entire range was brought under a single umbrella- Himalaya
Herbal Healthcare. With the present portfolio of pharmaceuticals, personal care, baby care, well-
being and animal health products.
Himalaya's therapeutic products have brought relief to people suffering from ailments like liver
disorders, diabetes to kidney stones and joint disabilities. Our personal care range captures the
best in nature and science, giving our customers products that are gentle, effective and safe for
long-term use. Our vision is to offer wellness in every home and for the whole family through
our herbal healthcare and personal care products.
Today, the Himalaya brand is synonymous with safe and efficacious herbal products.
Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to
Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility
in Makali, Bengaluru, India. In 1991, the company relocated its R&D facility to Bengaluru.
Vision
To make India the Largest Global Provider of Quality Medicines at Reasonable Prices.
Mission
Develop Human Resources for Pharmaceutical Industry and Drug Research and
Development
Promote Public-Private Partnership for development of pharmaceuticals Industry
Promote Pharma Brand India through International Cooperation
QUALITY POLICY
Quality Assurance Quality covers two areas - Quality Assurance and Quality Control.
Pharmaceutical products are designed and developed with the following requirements - GMP
(Good Manufacturing Practices) GLP (Good Laboratory Practice) GCP (Good Clinical Practice)
GMP (Good Manufacturing Practices) for pharmaceuticals include assessment of quality, safety
& efficacy:
Aactaril Soap
Active Fresh Gel
Bleminor
Bresol
Anti-Dandruff Shampoo
Bresol-NS (Drops/Spray)
Anti-Dandruff Conditioner
NUTRITION
HiOwnakidz
Balanced nutritional supplement to improve physical, mental and immune development in
children
HiOwna
HiOwnaMomz
QUISTA PRO
THE OWNER
It all began in 1930 with his mother's pawned bangles. A young man with a very curious
mind pondered the idea of presenting herbal medicine in a contemporary form. He spent his days
riding his bicycle through the forests and learning about herbs from the local healers. He knew
he must scientifically prove that herbal medicines do work. He also wondered how to make an
herbal tablet. He was advised to add kerosene to the powdered herb to help the tablet keep its
form. And he tried it too, only to quickly realize that he had been tricked! He continued his
efforts on his hand-operated tablet-compressing machine. At night, his shoulders would ache
after struggling to manually produce a few hundred tablets, one tablet at a time. Simple as it may
sound, the reality was that in his time this had never been done. I sit here today, billions of
tablets later, amazed by the man who started it all: my legendary father.
Eighty years later, Himalaya has spread its wings to several parts of the globe. With
offices in Bangalore, Dubai, Grand Cayman, Houston, Johannesburg, Riga and Singapore, we
are on a roll. It is our vision to make Himalaya a household name, a trusted head-to-heel brand
providing scientifically researched herbal solutions for the entire family. Indeed, brand Himalaya
has substantially increased its visibility in several important markets globally. We will continue
to build on this foundation. Despite our global ambitions, our commitment to our core values
remains strong. We will continue to operate our business with the highest ethical standards set by
my father. We will be honest and truthful in all our dealings. As I have said before: Each person
who comes in touch with Himalaya must be delighted with his or her experience. Nothing less is
acceptable. With your help and support, I am confident that Himalaya will continue to make
history in the next seventy-five years. Thank you for being a part of this incredible journey.
2017
MAGAZINES
Cleo Clear Skin Awardswinner:Best Cleanser for enlarged Pores: Gentle Exfoliating Daily Face
Wash
Cleo Beauty Hall of Fame : Best Night Cream under $50: Revitalizing Night Cream
Cleo Beauty Hall of Fame : Best Lip Balm: Intensive Moisturizing Cocoa Butter Lip Balm
Women’s Weekly Best Beauty Buys : Best Foot Care Cream: Himalaya Herbals Foot Care
Cream
Guardian Health & beauty Award : Best Selling Moisturizer- Nourishing Skin Cream
Watsons HWB : Best Selling Herbal Shampoo- Himalaya Herbals Anti Hair Fall Shampoo
Watsons HWB : Best Selling Moisturizing Cream- Himalaya Herbals Nourishing Skin Cream
Gentle Exfoliating Face Wash own the award for Womens health Indonesia choice award.
2014
MAGAZINES
Brightening Cleansers
Cleo Body Award: Category: Best purifying face wash Winner: Himalaya Purifying Neem Face
Wash
Best Selling Facial wash - Himalaya Herbals Purifying Neem Face Wash
Best Selling Anti Hair Fall Herbal Shampoo - Himalaya Herbals Anti Hair Fall Shampoo
2013
WATSONS
Best selling foaming face wash - Purifying Neem foaming face wash
Health & Beauty Expert- Herbal Face Wash: Neem Face wash
2.7 COMPETATORS:
P&G
HUL
ITC
DABUR
PATANJALI
The Indian pharmaceutical market reached US$ 10.04 billion in size, with a value-wise growth
rate of 20.4 per cent over the previous year’s corresponding period on a Moving Annual Total
(MAT) basis for the 12 months ended July 2017.
Amazon maintained its leadership position in the domestic market with 5.27 per cent share,
followed by Nova500.
The pharmaceuticals industry in India will grow by over 100 per cent over the next two years.
The sale of all types of medicines in the country stands at US$ 9.61 billion this is expected to
reach around US$ 19.22 billion by 2016.
India's domestic pharmaceutical market is valued approximately at US$ 12 billion in 2017, and
has shown a strong growth of 21.3 per cent for the 12 months ending September 2017.
PROSPECTUS
The Indian pharmaceuticals market witnessed growth at a CAGR of 5.64 percent, during
FY11-16, with the market increasing from US$ 20.95 billion in FY11 to US$ 27.57 billion in
FY16. The industry’s revenues are estimated to have grown by 7.4 per cent in FY17.
Indian pharmaceutical market grew 5.5 per cent in CY2017 in terms of moving annual
turnover. In March 2018, the market grew at 9.5 per cent year-on-year with sales of Rs
10,029 crore (US$ 1.56 billion).
By 2020, India is likely to be among the top three pharmaceutical markets by incremental
growth and 6th largest market globally in absolute size.
CHAPTER 3
The McKinsey’s 7s framework essentially looks at seven elements of an organization that must
be understood when seeking to work out how it works and how to bring about any sort of change
in the organization.
These are:-
The hard Ss
Strategy
Structure
System
The soft Ss
Style
Staff
Skills
Shared values
STRATEGY
This represents the plans for the allocation of firm’s scarce resources, over time, to reach
identified goals.
Marketing Strategy:
Himalaya has producing the healthcare products which are segmented based on customer groups
and usage such as personal care products for customers of all ages, nutrition and wellness
products which are health supplements for deficiency of minerals and vitamins primarily for
children’s and old age customers, mother care and baby care products.
SYSTEM
The system of work will be usually defined by the nature of the work taken up by the
department.
1. Inventory systems
2. Quality control systems
3. Production system
4. Marketing system
5. Welfare and human resources system
STYLE
Style refers to the cultural style of the organization and how key managers behave in achieving
the organization goals.
Leadership style refers to the leader behavior. It is the result of the philosophy, personality and
experience of the leader.
The democratic leadership style is also called the participative style as it encourages employees
to be a part of the decision making. The democratic manger keeps his or her employees informed
about everything that affects their work and shares decision will impart a better decision for the
welfare of the booth the organization and the customers, these days’ employees have also been
given opportunities to represent their views in such type of participative decisions. Hence,
organization style of working has become more transparent.
STRUCTURE
Structure is the organization chart and associated information that shows who reports to whom
and how tasks are both divided up and integrated. In other words, structures describe the
hierarchy of authority and accountability in an organization.
STAFF:
Refers to the number and types of personnel within the organization. At present,HIMALAYA
DRUG COMPANY. has manpower strength of 800 Employees (including scientists) which is
proposed to be enhanced to increase during the next years.
In the HIMALAYA DRUG COMPANY the total human resources is classified into
three categories:
• Office
• Staff
• Workers
• Permanent workers
• Trainees or apprentices
SKILLS
Scientific staff
Scientists
Scientific assistants
Administrative staff
Head of administration
Head finance
Office assistants
Liaison services
Head of division
Project monitoring
Electrical maintenance
Managers X
Supervisors X X
Executive X X X
Technician
X X X X
s
Skill Matrix
SHARED VALUES
“Superordinate goals” when the model was first developed, these are the core values of the
company that are evidenced in the corporate culture and the general work ethic.
Himalaya drug company main aim to Provider of Quality Medicines at Reasonable Prices.
CHAPTER - 4
STRENGTHS
1. Location is a positive aspect for the business – The location brings an added advantage
to the business as it is located in the foothills of the Himalayas which sends an altogether a
different message to the customers of being organic in nature.
2. Customer Perception is positive – The name of the brand creates a positive perception
in the minds of the customer and again the products are manufactured in the foothills
which further enhances the trust in the brand.
3. First Mover Advantage – The brand leapfrogged the competition by being the number
in the industry to serve frozen foods.
WEAKNESSES
1. Big Working Capital – The business needs big capital for its operations and hence there
is a continuous need of cash flow which is required to deliver end products to the
customer.
2. High Dependence on Raw Materials –There is a high dependence on the raw materials
which are seasonal in nature and hence the non-availability of raw materials adds to the
hindrance in the manufacturing of goods and also it adds to the cost of the food ass the raw
materials need to be over cultivated and kept in storage to be preserved.
3. High Sensitivity of Crops – The crops are highly sensitive to the preservatives and
pesticides which are used to enhance the cultivation and hence there is a high cost
involved in the production of raw materials as there are potential losses to the crop.
OPPORTUNITIES
THREATS
1. Inventory costs are high – The business has a high increasing cost because the
manufacturing cost is high as it involves a huge investment to cultivate the crops and
hence the inventory costs are high.
2. Threat of new entrants – As the industry is developing and lot of research has happened
in this domain has attracted a lot of established global players which are entering the
market and hence can pose a challenge to the business
3. High Cost of Products – There is a financial crisis in the world and with products being
costly the consumers need a lot of push to understand the importance of the products so
that they can use it.
CHAPTER – 5
FINANCIAL STATEMENT
BALANCE SHEET OF HIMALAYA DRUG COMPANY
------------------- in Rs. Cr. -------------------
Particulars Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 months 12 months 12 months 12 months 12 months
Sources Of Funds
Total Share Capital 57.87 57.87 55.02 52.30 51.40
Equity Share Capital 57.87 57.87 55.02 52.30 51.40
Share Application Money 0.00 0.00 3.76 2.09 0.00
Reserves 96.34 98.78 119.41 155.77 168.65
Networth 154.21 156.65 178.19 210.16 220.05
Secured Loans 174.62 179.33 172.25 128.21 116.59
Unsecured Loans 0.00 0.00 0.00 0.17 0.00
Total Debt 174.62 179.33 172.25 128.38 116.59
Total Liabilities 328.83 335.98 350.44 338.54 336.64
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 months 12 months 12 months 12 months 12 months
Application Of Funds
Gross Block 251.05 247.34 246.00 246.85 206.21
Less: Accum. Depreciation 88.88 77.49 65.98 46.79 37.67
Net Block 162.17 169.85 180.02 200.06 168.54
Capital Work in Progress 52.53 0.00 52.41 38.65 54.36
Investments 0.00 0.00 0.00 0.00 11.49
Inventories 65.44 60.08 61.10 63.43 62.85
Sundry Debtors 36.40 33.71 26.94 20.43 34.08
Cash and Bank Balance 2.15 1.41 1.83 1.40 1.41
Total Current Assets 103.99 95.20 89.87 85.26 98.34
Loans and Advances 44.99 46.37 46.74 46.33 24.57
Total CA, Loans & Advances 148.98 141.57 136.61 131.59 122.91
Current Liabilities 31.14 24.40 15.16 28.45 17.37
Provisions 3.71 3.57 3.45 3.32 3.31
Total CL & Provisions 34.85 27.97 18.61 31.77 20.68
Net Current Assets 114.13 113.60 118.00 99.82 102.23
Total Assets 328.83 283.45 350.43 338.53 336.62
Contingent Liabilities 18.05 16.63 1.01 26.70 28.61
Book Value (Rs) 26.65 27.07 31.70 39.78 42.81
CURRENT RATIO;
The asset turnover ratio is calculated by dividing net sales by average total assets.Net
sales ,found on the income statement ,are used to calculate this ratio returns must be backed out
of total sales to measure the truly measure the firms assets ability to generate sales.
NPAT/REVENUE*100
CHAPTER - 6
LEARNING EXPERIENCE
I have gained a lot of knowledge about organization culture and its process. This 1 month of
internship helped me to learn about corporate discipline, corporate ethics and values, various
aspects of management and HR policies, strategies, problem solving, etc.…
I have learnt the importance of different management function such as planning, organizing,
staffing, directing, and controlling.
This is the place where you will experience, courage, love, fun, peace and lot of learning.
BIBLIOGRAPHY
1. Human Resource and Personal Management Aswathappa.K (2005), (3rd Edition), Tata
McGraw-Hill
2. Marketing Management Kotler, Phi lip and Keller, Kevin Lane (2006), (12th Edition),
Pearson Education
3. Company journals
Websites
www.himalayadrugscompany.com
www.himalayahelth.com
www.en.wikipedia.org./wiki/pharmaceutical-drug
www.en.wikipedia.org./wiki/pharmaceutical-industy
Pharmaceuticals.gov.in