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HIMALAYA DRUG COMPANY

CHAPTER -1

INTRODUCTION

INTRODUCTION ABOUT INTERNSHIP

An internship is a structured work experience related to a student’s major career goal. It is


supervised by a professional in the field. It is an experience that is mutually agreed upon by the
student, organization and faculty member.

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,

“THE ORGANIZATIONAL STUDY in Himalaya Drugs Company” provided an understanding


that Himalaya Products is having very good marketing strategies in the market to attract the
customers all over the world.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 1


HIMALAYA DRUG COMPANY

INDUSTRY PROFILE

Pharmaceutical companies are allowed to deal in generic or brand medications and medical


devices. They are subject to a variety of laws and regulations regarding the patenting, testing and
ensuring safety and efficiency and marketing of drugs. The word pharmaceutical comes from the
Greek word pharmakeutikos.(from pharmakeutes 'druggist', from pharmakon 'drug').

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 2


HIMALAYA DRUG COMPANY

Pharmaceutical industry in India

The Pharmaceutical industry in India is the world's third-largest in terms of volume of


production and 14th in terms of value globally. According to Department of
Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's
pharmaceuticals industry is approximately US $1billion in 1990 over US $ 20billion in 2010 of
which the export turnover is approximately US $ 8 billion. While the domestic market was
worth US$12.26 billion. Sale of all types of medicines in the country is expected to reach
around US$19.22 billion by 2012.

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.

It has shown tremendous progression terms of infrastructure development, technology base


creation and a wide range of products. It has established its presence and determination to
flourish in the changing environment. The industry now produces bulk drugs belonging to all
major therapeutic groups requiring complicated manufacturing technologies. Formulations in
various dosage forms are being produced in Good Manufacturing Practices compliant facilities.
Strong scientific and technical manpower and pioneering work done in process development
have made this possible.

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 3


HIMALAYA DRUG COMPANY

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 -

 Drugs and Pharmaceuticals sector development.


 Promotion and co-ordination of basic, applied and other research in areas related to the
Pharmaceuticals sector.
 Development of infrastructure, manpower and skills for the Pharmaceuticals sector and
management of related information.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 4


HIMALAYA DRUG COMPANY

 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 INITIATIVES AND INVESTMENT

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 5


HIMALAYA DRUG COMPANY

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.

Some of the major investment developments in the sector include:

 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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 6


HIMALAYA DRUG COMPANY

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

 Effects of new product


 Drug price control
 Regulatory reforms
 Infrastructure development
 Quality management.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 7


HIMALAYA DRUG COMPANY

CHAPTER – 2

COMPANY PROFILE

2.1 BACKGROUND OF THE ORGANIZATION

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 8


HIMALAYA DRUG COMPANY

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 9


HIMALAYA DRUG COMPANY

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.

We operate in over 90 countries, our products are prescribed by 400,000 doctors


worldwide, and millions of customers trust us for their health and personal care needs. Himalaya
Global Holdings Ltd. (HGH) is the parent of all Himalaya subsidiaries.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 10


HIMALAYA DRUG COMPANY

2.2 NATURE OF BUSINESS

Nature of Business Wholesaler

Additional Business Manufacturer

2.3 VISION, MISSION AND QUALITY POLICY

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:

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 11


HIMALAYA DRUG COMPANY

2.4 PRODUCT PROFILE

Pharmaceuticals Personal Care

Aactaril Soap
Active Fresh Gel

Age Defying Hand Cream


Abana

Almond & Rose Soap

Bleminor

Aloe & Cucumber Refreshing Body


Lotion
Bonnisan

Anti-Dandruff Hair Cream


Bonnispaz

Anti-Dandruff Hair Oil

Bresol

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 12


HIMALAYA DRUG COMPANY

Anti-Dandruff Shampoo

Bresol-NS (Drops/Spray)
Anti-Dandruff Conditioner

Chiropex Anti-Hair Fall Cream

Anti-Hair Fall Hair Oil


Clarina Anti-Acne Cream

Anti-Hair Fall Shampoo


Clarina Anti-Acne Face Mask

Anti-Hair Fall Conditioner


Clarina Anti-Acne Face Wash Gel

Clarina Anti-Acne Kit

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 13


HIMALAYA DRUG COMPANY

ANIMAL HEALTH BABY CARE

YuccaFresh Gentle Baby Shampoo


Natural ammonia binder Hair kept so soft

FreshCoat Baby Cream


No rinse spray for pets Keeps babies healthy and happy

Furglow Diaper Rash Cream


Oral Coat Conditioner For happy baby bottoms

Erina Baby Lotion


Coat cleanser A natural moisturizer

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 14


HIMALAYA DRUG COMPANY

Erina-EP Himalaya Soothing Calamine Baby Lotion


Ectoparasiticidal Shampoo & Powder Effective relief from skin rashes

Erina Plus Baby Massage Oil


Coat Cleanser with Conditioner Oil massage to health

Digyton Baby Powder


Digestive stimulant and bowel regulator To keep cool and stay fresh

Digyton PLUS Prickly Heat Baby Powder


Digestive stimulant for adult pets Ditch the itch

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 15


HIMALAYA DRUG COMPANY

healthytreats - puppy Baby Diapers


Treats with Special Health Benefits The bottom line on diapers

healthytreats - adult Total Care Baby Pants


Treats with Special Health Benefits Total care and protection of baby's skin

healthytreats - senior Gentle Baby Wipes


Treats with Special Health Benefits Simple, smart wipes

Extra Large Gentle Baby Wipes


Enjoy the convenience of "head-to-heel"
cleansing with just one wipe!

Soothing Baby Wipes


Soothes skin and relaxes baby

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 16


HIMALAYA DRUG COMPANY

NUTRITION

HiOwnakidz
Balanced nutritional supplement to improve physical, mental and immune development in

children

HiOwna

Nutrition and good health...Naturally!

HiOwnaMomz

Essential nutritional support for mothers!

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 17


HIMALAYA DRUG COMPANY

QUISTA PRO
 

2.5 OWNERSHIP PATTERN

The Himalaya Drugs company – Non-Govt. Company

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 18


HIMALAYA DRUG COMPANY

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.

2.6 ACHIEVEMENTS / AWARDS

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

Best Brightening Toners

Brightening Cleansers

Cleo Clear Skin Award: Purifying Neem Face Wash

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 19


HIMALAYA DRUG COMPANY

Cleo Body Award: Category: Best purifying face wash Winner: Himalaya Purifying Neem Face
Wash

WATSONS HWB 2014


Brand Growth of the year – Beauty: Himalaya Herbals

Best Selling Facial wash - Himalaya Herbals Purifying Neem Face Wash

Best Selling Skin Cream - Himalaya Herbals Nourishing Skin Cream

Best Selling Anti Hair Fall Herbal Shampoo - Himalaya Herbals Anti Hair Fall Shampoo

2013
WATSONS

Best selling herbal slimming supplement - AyurSlim

Best selling herbal shampoo - Anti Hair Fall shampoo

Best selling skin cream - Nourishing Skin Cream

Best selling foaming face wash - Purifying Neem foaming face wash

Health & Beauty Expert- Herbal Face Wash: Neem Face wash

Health & Beauty Expert - Slimming – AyurSlim

2.7 COMPETATORS:

 P&G
 HUL
 ITC
 DABUR
 PATANJALI

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 20


HIMALAYA DRUG COMPANY

2.8 FUTURE GROWTH AND PROSPECTUS


Growth:

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 21


HIMALAYA DRUG COMPANY

CHAPTER 3

THE MCKINSEY 7’S FRAME WORK

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 22


HIMALAYA DRUG COMPANY

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.

Main systems on Himalaya Drug Company are as follows:

1. Inventory systems
2. Quality control systems
3. Production system
4. Marketing system
5. Welfare and human resources system

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 23


HIMALAYA DRUG COMPANY

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.

HIMALAYA DRUG COMPANY. adopts democratic/ participative and supportive leadership


style .

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 24


HIMALAYA DRUG COMPANY

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 25


HIMALAYA DRUG COMPANY

STAFF EXISTING IN THE ORGANIZATION:

v Supportive technical staff


v Skilled workers
v Clerical and office staff
v Unskilled workers
v Semi skilled workers
v Temporary and casual worker

In the HIMALAYA DRUG COMPANY the total human resources is classified into
three categories:

• Office

• Staff

• Workers

Workers are again classified into:

• Permanent workers

• Trainees or apprentices

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 26


HIMALAYA DRUG COMPANY

SKILLS

Skills are the distinctive capabilities of personnel or of the organization as a whole.

The general skill of HIMALAYA DRUG COMPANY employees are:

Scientific staff

Head of discipline/ division

Scientists

Scientific assistants

Administrative staff

Head of administration

Head finance

Office assistants

Liaison services

Head of division

Project monitoring

Library and documentation

Maintenance and support staff

Campus and assets maintenance

Electrical maintenance

Drivers/ record clerks

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 27


HIMALAYA DRUG COMPANY

Description Managerial Analytica Supervisor Communication Technical


Skills l Skills y Skills Skills Skills

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 28


HIMALAYA DRUG COMPANY

CHAPTER - 4

SWOT ANALYSIS OF HIMALAYA DRUG COMPANY

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 29


HIMALAYA DRUG COMPANY

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 30


HIMALAYA DRUG COMPANY

OPPORTUNITIES

1. Global markets – The business should expand globally as there is a ready market for


organic produce. The preferences of the customers are changing and hence a proper
marketing can lead to great benefits to the business.
2. Changing Demographics and Segmentation Variables – The business can be
beneficial because of the changing lifestyle of the consumers who are inclining towards
the organic products and hence the industry is increasing.
3. Marketing and promotion – The industry is nascent in nature and hence with proper
marketing and promotions of the products the industry can be developed
and positioning of the products can be done with positives of using the organic products.

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 31


HIMALAYA DRUG COMPANY

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 32


HIMALAYA DRUG COMPANY

PROFIT AND LOSS ACCOUNT OF HIMALAYA DRUG COMPANY


------------------- in Rs. Cr. -------------------
 Particulars Mar Mar '16 Mar '15 Mar '14 Mar '13
'17
  12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 121.29 113.60 100.92 189.13 166.68
Net Sales 121.29 113.60 100.92 189.13 166.68
Other Income -0.08 -0.25 0.96 -10.63 39.42
Stock Adjustments 7.33 0.81 -9.04 4.57 2.75
Total Income 128.54 114.16 92.84 183.07 208.85
Expenditure
Raw Materials 40.28 36.10 43.50 103.14 73.53
Power & Fuel Cost 11.57 10.95 6.65 7.39 7.24
Employee Cost 6.32 6.26 6.12 6.68 6.37

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 33


HIMALAYA DRUG COMPANY

Other Manufacturing Expenses 16.74 18.10 14.07 22.23 13.01


Selling and Admin Expenses 0.27 0.04 0.00 0.00 0.00
Miscellaneous Expenses 24.97 30.03 15.81 29.46 28.46
Total Expenses 100.15 101.48 86.15 168.90 128.61
  Mar Mar '16 Mar '15 Mar '14 Mar '13
'17
  12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 28.47 12.93 5.73 24.80 40.82
PBDIT 28.39 12.68 6.69 14.17 80.24
Interest 19.36 21.03 33.73 16.05 16.42
PBDT 9.03 -8.35 -27.04 -1.88 63.82
Depreciation 11.38 11.52 12.64 9.12 8.78
Profit Before Tax -2.35 -19.87 -39.68 -11.00 55.04
PBT (Post Extra-ord Items) -2.35 -19.87 -39.68 -11.00 55.04
Tax 0.10 1.04 0.68 1.97 1.87
Reported Net Profit -2.44 -20.91 -40.37 -12.97 53.16
Total Value Addition 59.87 65.38 42.65 65.76 55.08
Per share data (annualized)
Shares in issue (lakhs) 578.73 578.73 550.22 523.00 514.04
Earnings Per Share (Rs) -0.42 -3.61 -7.34 -2.48 10.34
Book Value (Rs) 26.65 27.07 31.70 39.78 42.81

CURRENT RATIO;

Current ratio is calculated by dividing current asset by current liabilities

CURRENT RATIO = CURRENT ASSETS / CURRENT LAIBILITIES

Ye Current Current Current


ar Asset Ratio
Liability

2016 95.20 24.40 3.90


DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 34
2017 103.99 31.14 3.33
HIMALAYA DRUG COMPANY

TOTAL TURN OVER 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.

NET SALES/TOTAL ASSET

Year Net Sales Total Asset Total asset


turnover
Ratio

201 113.60 283.45 0.400


6

201 121.29 328.83 0.368


7

NET PROPIT RATIO

NPAT/REVENUE*100

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 35


HIMALAYA DRUG COMPANY

Year Net profit after Revenue Net Profit


tax Ratio

201 65.38 113.60 57.55%


6

201 59.87 121.29 49.36%


7

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.

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 36


HIMALAYA DRUG COMPANY

BIBLIOGRAPHY

BOOKS FOR REFERENCE

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

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 37


HIMALAYA DRUG COMPANY

 www.himalayadrugscompany.com
 www.himalayahelth.com
 www.en.wikipedia.org./wiki/pharmaceutical-drug
 www.en.wikipedia.org./wiki/pharmaceutical-industy
 Pharmaceuticals.gov.in

DEPARTMENT OF MANAGEMENT STUDIES, SIR.MVIT 38

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