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SHILPA MEDICARE LTD, 100% EOU
PART-A
INDUSTRY PROFILE
The roots of the pharmaceutical industry lie back with the apothecaries and
pharmacies that offered traditional remedies as far back as the middle ages, but the
industry as we understand it today really has its origins in the second half of the
19th century. Whilst the scientific revolution of the 17th century had spread ideas
of rationalism and experimentation, and the industrial revolution had transformed
the production of goods in the late 18th century, the marrying of the two concepts
for the benefit of human health was a comparatively late development.
Merck in Germany was possibly the earliest company to move in this direction.
Originating as a pharmacy founded in Darmstadt in 1668, it was in 1827 that
Heinrich Emanuel Merck began the transition towards an industrial and scientific
concern, by manufacturing and selling alkaloids¹. Similarly, whilst
GlaxoSmithKline’s origins can be traced back as far as 1715, it was only in the
middle of the 19th century that Beecham became involved in the industrial
production of medicine, producing patented medicine from 1842, and the world’s
first factory for producing only medicines in 1859².
Meanwhile, in the USA, Pfizer was founded in 1849, by two German immigrants,
initially as a fine chemicals business. They expanded rapidly during the American
civil war as demand for painkillers and antiseptics rocketed³. Whilst Pfizer was
providing the medicines needed for the Union war effort, a young cavalry
commander named Colonel Eli Lilly was serving in their army. A trained
pharmaceutical chemist, Lilly was an archetype of the dynamic and multi-talented
19th century American industrialist, who after his military career, and trying his
hand at farming, set up a pharmaceutical business in 1876. He was a pioneer of
new methods in the industry, being one of the first to focus on R&D as well as
manufacturing. Another military man in the drugs business was Edward Robinson
Squibb, who as a naval doctor during the Mexican-American war of 1846–1848
threw the drugs he was supplied with overboard due to their low quality. He set up
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a laboratory in 1858, like Pfizer supplying Union armies in the civil war, and
laying the basis for today’s BMS.
Switzerland also rapidly developed a home-grown pharmaceutical industry in the
second half of the 19th century. Previously a centre of the trade in textiles and
dyes, Swiss manufacturers gradually began to realise their dyestuffs had antiseptic
and other properties and began to market them as pharmaceuticals, in contrast to
the origin in pharmacies of other enterprises. Switzerland’s total lack of patent
laws led to it being accused of being a “pirate state” in the German Reichstag.
Sandoz, CIBA-Geigy, Roche and the Basel hub of the pharmaceutical industry all
have their roots in this boom.
It wasn’t just Swiss companies had their roots in the dye trade. Bayer was founded
in 1863 as a dye maker in Wuppertal, the hometown of Karl Marx’s collaborator
Friedrich Engels. It later moved into medicines, commercializing aspirin around
the turn of the 20th century, one of the most successful pharmaceuticals ever at
that point.
The unregulated nature of the trade in medicines during this period ensured there
was a far less strict delineation between “pharmaceutical” and “chemical”
industries than we have nowadays. These companies focused as much on cod liver
oil, toothpaste, citric acid for soft drinks, and hair gel as on prescription
medicines, as well as selling products like heroin on the over-the-counter market.
The national rivalries and conflicts that characterized this period also had their
impact on the developing industry; Bayer had the aspirin trademark and its US
assets seized during World War One, whilst “American” Merck (now Merck &
Co. in the US or Merck Sharp & Dohme [MSD] elsewhere) was compulsorily
split off from its Germany parent company (Merck KGaA) at the same time.¹
Bayer also had its Russian subsidiary seized during the Russian revolution. This
disruption to Germany’s position as the leader in pharmaceuticals in the early 20th
century by the war meant that others, particularly in the US, could take relative
advantage. The beginnings of the globalization of the industry were seen both
before and after the war – in the UK, import duties incentivized many foreign
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companies such as Wyeth, Sandoz, CIBA, Eli Lilly and MSD to set up
subsidiaries in Britain in the post-war years.
The interwar years also marked two breakthroughs that presaged the arrival of the
pharma industry as we know it today. The first was insulin; Frederick Banting and
colleagues managed to isolate insulin that could treat diabetes, up until that point a
fatal condition. But it was only in collaboration with the scientists at Eli Lilly that
they were able to sufficiently purify the extract and industrially produce and
distribute it as an effective medicine.
The second was penicillin, a discovery of an impact possibly unparalleled by any
other in medicine. After Alexander Fleming’s initial discovery of the penicillium
mould’s antibiotic properties in 1928, and Howard Florey and Ernst Chain’s
further experimentation, a government-supported international collaboration
including Merck, Pfizer and Squibb worked on mass producing the drug during
World War Two, saving thousands of soldiers’ lives. The immense scale and
sophistication of the penicillin development effort marked a new era for the way
the pharmaceutical industry developed drugs.
After the war, the arrival of social healthcare systems such as the UK’s National
Health Service (NHS) in Europe created a much more structured system; both for
prescription of drugs and their reimbursement. In 1957, the NHS brought in what
was essentially a price fixing scheme to allow reasonable return on investment for
drug manufacturers, solidifying the incentive to invest in new medicines. This
greater role for the state in healthcare was paralleled on both sides of the Atlantic
in increasing government regulation of medicine production. The Thalidomide
scandal of 1961 prompted an increase in the regulation and testing of drugs before
licensing, with a new amendment to US Food and Drug Administration (FDA)
rules demanding proof of efficacy and accurate disclosure of side-effects for new
medications (the Kefauver Harris Amendment) being implemented in 19624.
Likewise, the 1964 Declaration of Helsinki put greater ethical strictures on clinical
research, clearly cementing the difference between production of scientific
prescription medicines and other chemicals.
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But whilst there were some breakthroughs, the enormous expense and risks
involved in R&D caused many to merely ape their competitors, trying to get a cut
of market-share using “me too” formulations rather than innovating novel
medications. For example, AstraZeneca’s popular proton pump inhibitor Nexium
(esomeprazole), released in 2001, is merely a purified single isomeric version of
an older drug which happened to be losing patent protection. Patents, or the lack
of them, became a problem for the industry. The Hatch-Waxman Act of 1984
regularised generic production in the US, and some developing countries made
policy decisions to ignore medical patents. The industry’s focus increased on
marketing to maintain market share, on lobbying politicians to protect commercial
interests, and on lawyers to enforce legal claims on intellectual property rights.
These activities have brought a greater suspicion of the industry in the public at
large. However, this can be linked to a wider anti-science feeling and more
pessimistic outlook on the possibilities of technology in society, as seen in panics
over issues such as genetically-modified crops and suspicion towards nuclear
power.
Companies have tried to overcome some of these problems by outsourcing various
aspects of their processes, and through buying up smaller companies that perhaps
retain more of the innovative entrepreneurialism of the pioneers of the 19th
century. But new technologies are what really promise a positive future for the
industry in the 21st century. Both computing and biotechnology have allowed
great leaps forward in both development and production of new drugs.
Automation of the drug discovery process through high-throughput screening, and
the computerisation of genomics have allowed breakthroughs at a much higher
rate than previously. Starting with insulin in the 1970s, genetic modification has
allowed production of human proteins by bacteria. And biological drugs such as
the monoclonal antibodies, introduced around the turn of the millennium, hint at a
whole new panorama of far more specific drugs that could impact on human
health as much as the medicines of last century.
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Pharmaceutical industry in India :
The Pharmaceutical industry in India is the world's third-largest in terms of volume and
stands 14th in terms of value. According to Department of Pharmaceuticals, Ministry of
Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between
2008 and September 2009 was US$21.04 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.
Exports of pharmaceuticals products from India increased from US$6.23 billion in
2006-07 to US$8.7 billion in 2008-09 a combined annual growth rate of 21.25%.
According to PricewaterhouseCoopers (PWC) in 2010, India joined among the
league of top 10 global pharmaceuticals markets in terms of sales by 2020 with
value reaching US$50 billion. Some of the major pharmaceutical firms including
Sun Pharmaceutical, Cadila Healthcare and Piramal Healthcare.
The government started to encourage the growth of drug manufacturing by Indian
companies in the early 1960s, and with the Patents Act in 1970. However,
economic liberalization in the 1990s by the former Prime Minister P.V.
Narasimha Rao and the then Finance Minister, Dr. Manmohan Singh enabled the
industry to become what it is today. This patent act removed composition patents
from food and drugs, and though it kept process patents, these were shortened to a
period of five to seven years.
The lack of patent protection made the Indian market undesirable to the
multinational companies that had dominated the market, and while they streamed
out. Indian companies carved a niche in both the Indian and world markets with
their expertise in reverse-engineering new processes for manufacturing drugs at
low costs. Although some of the larger companies have taken baby steps towards
drug innovation, the industry as a whole has been following this business model
until the present.
India's biopharmaceutical industry clocked a 17 percent growth with revenues of
Rs.137 billion ($3 billion) in the 2009-10 financial year over the previous fiscal.
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Bio-pharma was the biggest contributor generating 60 percent of the industry's
growth at Rs.8,829 crore, followed by bio-services at Rs.2,639 crore and bio-agri
at Rs.1,936 crore.
Pharmaceutical industry today
The number of purely Indian pharma companies is fairly low. Indian pharma
industry is mainly operated as well as controlled by dominant foreign companies
having subsidiaries in India due to availability of cheap labour in India at lowest
cost. In 2002, over 20,000 registered drug manufacturers in India sold $9 billion
worth of formulations and bulk drugs. 85% of these formulations were sold in
India while over 60% of the bulk drugs were exported, mostly to the United States
and Russia. Most of the players in the market are small-to-medium enterprises;
250 of the largest companies control 70% of the Indian market. Thanks to the
1970 Patent Act, multinationals represent only 35% of the market, down from
70% thirty years ago.
Most pharma companies operating in India, even the multinationals, employ
Indians almost exclusively from the lowest ranks to high level management.
Mirroring the social structure, firms are very hierarchical. Homegrown
pharmaceuticals, like many other businesses in India, are often a mix of public
and private enterprise. Although many of these companies are publicly owned,
leadership passes from father to son and the founding family holds a majority
share.
In terms of the global market, India currently holds a modest 1-2% share, but it
has been growing at approximately 10% per year. India gained its foothold on the
global scene with its innovatively engineered generic drugs and active
pharmaceutical ingredients (API), and it is now seeking to become a major player
in outsourced clinical research as well as contract manufacturing and research.
There are 74 U.S. FDA-approved manufacturing facilities in India, more than in
any other country outside the U.S, and in 2005, almost 20% of all Abbreviated
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New Drug Applications (ANDA) to the FDA are expected to be filed by Indian
companies. Growth in other fields notwithstanding, generics are still a large part
of the picture. London research company Global Insight estimates that India’s
share of the global generics market will have risen from 4% to 33% by 2007. The
Indian pharmaceutical industry has become the third largest producer in the world
and is poised to grow into an industry of $ 20 billion in 2015 from the current
turnover of $ 12 billion
Advantage to India
Competent workforce:
India has a pool of personnel with high managerial and technical
competence as also skilled workforce. It has an educated work force and English is
commonly used. Professional services are easily available.
Cost-effective chemical synthesis:
Its track record of development, particularly in the area of improved cost-
beneficial chemical synthesis for various drug molecules is excellent. It provides a
wide variety of bulk drugs and exports sophisticated bulk drugs.
Globalization:
The country is committed to a free market economy and globalization.
Above all, it has a 7 million middle class market, which is continuously growing.
Consolidation: For the first time in many years, the international pharmaceutical
industry is finding great opportunities in India. The process of consolidation , which
has become a generalized phenomenon in the world pharmaceutical industry, has
stated taking place in India.
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The growth scenario
India’s US$ 3.1 billion pharmaceutical industry is growing at the rate of 14
percent per year. It is one of the largest and most advanced among the developing
countries.
Over 20,000 registered pharmaceutical manufacturing exist in the country.
The domestic pharmaceutical industry output is expected to exceed Rs260 billion in
the financial year 2002, which accounts for merely 1.3 percent of the global
pharmaceutical sector. Of this, the remaining Rs 210 billion (79 percent). In financial
year 2001, imports were Rs 20 billion while exports were Rs87 billion.
Shilpa Medicare Ltd., formerly known as Shilpa Antibiotics was
incorporated as a private limited company in Nov.'87 and has been promoted by
Vishnukant C Bhutada and his associates. The company produces trimethoprim, an
anti-biotic bulk drug. It also manufactures the product for other reputed companies like
Eskayef, Bombay Drugs & Parma’s, Bombay Drug House, US Vitamins, Sandoz
India, etc, for their export commitments. Circa 1992, the company installed production
facilities to manufacture sodium methoxide. SAL is the recipient of the World Health
Organization - Good Manufacturing Practices (GMP) certificate. It exports its products
to hard-currency areas. The company manufactures 1-methyl, amino-1-methyl, thio-2-
nitro ethane, a drug intermediate used in the manufacture of ranitidine, an anti-ulcer
drug. The company proposes to embark upon an expansion project which involves the
addition of one more bulk drug to its existing product range -- norfloxacin -- and
expand the production capacity of the existing products of the company -- sodium
methoxide and trimethoprim
Indian pharmaceutical industry is mounting up the value chain. From
being a pure reverse engineering industry focused on the domestic market, the industry
is moving towards basic research driven, export oriented global presence, providing
wide range of value added quality products and services, innovation, product life cycle
management and enlarging their market reach. The old and mature categories like anti-
infective, vitamins, analgesics are de-growing while, new lifestyle categories like
Cardiovascular, Central Nervous System (CNS), Anti Diabetic are expanding at
double-digit growth rates.
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SHILPA MEDICARE LTD, 100% EOU
COMPANY PROFILE
Name of the Company : SHILPA MEDICARE PVT LTD
Address of the Company : Plot No: 33-33A Raichur Industrial Grow,
Wadloor Raod Chicksugur Cross,Hyderabad
Road, Chicksugur-584170
Incorporation Date : 20/11/1987
Area : 20 Acers
BOARD OF DIRECTORS : Shri Omprakash Inani (Chairman)
Shri Vishnukant Bhutada(ManagingDirector )
Shri Pramod Kasat (Director)
Shri Carlton Periera (Director)
Shri Abhay B Upsani (Director)
Shri Ajeet Singh Karan (Director)
AUDITORS : M/S Bohra Bhandari Bung & Associate, Raichur
BANKERS : Lakshmi Vilas Bank Ltd
State Bank of India
ICICI Bank Ltd
Axis Bank Ltd
Company Head Office / Quarters : 10/80 1st Floor, Rajendra gunj, Raichur,
Karnataka-584102
Fax : 91-08532-235876
Phone : 91-08532-235006/23570
E-mail : info@vbshilpa.com
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Web : http://www.vbshilpa.com
Background and inception of the company :
Established in 1987, Shilpa Medicare Limited has carved a niche for itself
in the exceedingly competitive and quality-conscious sphere of pharmaceutical
manufacturing. It produce and export consistently high-quality active pharmaceutical
ingredients fine chemicals, intermediates, herbal products and specialty chemical
products using sophisticated technology, meticulously following international
specifications. The company has earned its spurs as a successful and reliable partner
within the pharmaceutical industry. Buyers within the country and from across the
borders count on its fast track integrated process development and finely honed
expertise of its skilled and experienced personnel. The Company is already exporting
to USA, Canada, Australia, Japan and European Countries viz., Germany, Switzerland,
Netherlands, Belgium, Spain, Greece, Cyprus, Italy, United Kingdom etc., South
American Countries like Mexico, Brazil, Columbia etc., African Countries like Kenya,
Nigeria and West Indies etc., Asian Countries like Singapore, Taiwan, China,
Malaysia, Thailand and closer to home to Iran, Egypt, Pakistan and Bangladesh. Shilpa
Medicare is synergizing strength through tie-ups for manufacturing products and co-
marketing rights, for it believes in working together and sharing success. Being
proactive in approach, the company continually seeks out enquiry's for development of
new products drawing from the extensive knowledge-base of its qualified and
experienced people as well as sophisticated facilities.
Nature of the business carried:
Reliable Partner for API's & Customs Synthesis; recognized by Govt. of
India & Export House. It is the largest Manufacturer and Exporters of Oncology API's
from India & Bulk Drugs. Products registered in Europe, Russia, Korea, Iran, Canada,
Japan, Australia, etc. With World class State of the art facility. WHO GMP Approved
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Plant. Patents filed for non-infringing manufacturing process. Highly efficient & cost
effective technology & manufacturing process.
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Vision, Mission and Quality policy:
Vision
To become a leading supplier in pharmaceuticals in the world by 2010 with a
focus on Oncology API's and formulations and contract research and manufacturing
Services.
Mission
Shilpa's primary goal is to create cGMP facilities to manufacture Oncology
Products that will enable to obtain approvals from EDQM, UK MHRA, TGA
Australia, Health Canada and USFDA. By supplying products complying the above
regulatory authorities to the pharmaceutical companies worldwide, Shilpa will provide
an optimum return on investment to our investors, shareholders and our employees.
The common people will also enjoy the highest quality products at affordable prices
Quality policy
To provides consistent quality to the customers. Our business aim is to
follow a safety system, and adhere to the responsible care programme and most of all
provide customer satisfaction. To achieve and sustain market leadership for the
products in national & international market by providing to meet the requirements of
customer. Adherence to cGMP norms as an integral part of the total quality
management system.
Product/ Service Profile:
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1. Oncology products 2. Non-Oncology product
Anastrozole Abacavir Sulfate
Bendamustin HCI Ambroxol HCl
Bicalutamide Acebrophylline
Bortezomib Buflomedil HCl
Busulfan Lamivudine
Capecitabine Nifedipine
Carboplatin Phenylephrine HCI
Cisplatin Sildenafil Citrate
Cladribine Ranelate
Decarbazine Terfenadine
Docetaxel Ticlopidine HCl
5-Fluoro Uracil
Gefitinib
Gemcitabine HCl
Hydroxy urea
Imatinib Mesylate
Irinotecan HCl Trihydrate
Lenalidomide
Letrozole
Oxaliplatin
Paclitaxel
Pemetrexed Disodium
Temozolomide
Thalidomide
Topotecan HCl
Zoledronic acid
1. Under Development-Oncology
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Altretamine
Azacytidine
Cladribine
Cyclophospamide
Dasatinib Monohydrate
Disodium Pamidronate
Cytrabine
Decitabine
Estramustine
Erlotinib HCl
Exemestane
Fludarabine Phosphate
Ifosfamide
Lapatinib Distosylate
Melphalan
Mitotane
Methotrexate
Nilotinib
Pazopanib
Sorafenib Tosylate
Sunitinib
Tandutinib
2. Under Development- Non Oncology
Aliskiren
e. Area of Operation: (Global)
o Italy
o Germany
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o China
o Japan
o Australia
o USA
o Turkey
Ownership Pattern:
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SHILPA MEDICARE LTD, 100% EOU
Shilpa Medicare Ltd is a privately owned company which is under taken by
the following members:
Chairman : Shri Omprakash Inani
Managing Director : Shri Vishnukant Bhutada
Directors : Shri Pramod Kasat (Director)
Shri Carlton Periera (Director)
Shri Abhay B Upsani (Director)
Shri Ajeet Singh Karan (Director)
Other Directors : Shri Rajendra Sunki Reddy
Shri N P S Shinh
f. Competitors information:
Anjaneya Life Care Ltd
Aarey Drugs & Pharmaceutical Ldt
Aarti Drugs Ltd
Abbott India Ltd
ABL Bio-Technologies Ltd
Addlife Pharma Ltd
Cipla
Piramal Healthcare
Ranbaxy Labs
Dr Reddys Lab
Sun Pharma
Infrastructural Facilities:
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The Company has state of the art facilities for the employees. It gives
importance to the environment and takes the utmost care of health of the workers. The
company is situated in the outskirts of the city and is away from the pollution causing
due to vehicles. The company has 20 acres. The space is also used for greenery
concentrating on the environment that creates a good working condition for the
employees. The company provides all the facilities to the employees, like:
Canteen Facility
Quality assurance
Planning
Better Sales and services
Wash rooms
Drinking water
Transport facility
First Aid
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ACHIEVEMENTS/ AWARDS:
Karnataka State Govt. ''Best Enterpreneur Award''.
Govt. of India ''Best Enterpreneur Award''.
''Star Export House'' Status from Ministry of Commerce and Industry, Govt. of
India.
''Best Export Award'' from Visvesvaraya Industrial Trade Centre, Bangalore,
Govt. of Karnataka, India.
''Outstanding Industrial Award'' from Indian Junior Chamber.
''Registration with ''Russian Health Authority'' for Ambroxol HCl.
''Certificate of Suitability'' received from EDQM for Ambroxol HCl (R0-CEP
2004-201-Rev 00).
''Certificate of Suitability'' received from EDQM for Ticlopidine HCl (R0-CEP
2005-004-Rev 00).
''Certificate of Suitability'' received from EDQM for Carboplatin (R0-CEP 2006-
212-Rev 00).
Patent application on Irinotecan HCl Trihydrate "An improved process for the
preparation of Irinotecan HCl Trihydrate" published as WO2006016203 on date
2006-02-16.
Patent file for Gemcitabine HCl and Anastrozole manufacturing process.
Filed ASMF/EDMF of Gemcitabine HCl over 21 EU countries.
Filed ASMF/EDMF of Irinotecan HCl Trihydrate HCl over 27 EU countries.
Filed ASMF/EDMF of Oxaliplatin HCl over 11 EU countries.
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"Best District Export Award" received from FKCCI, Bangalore on 16.06.2007.
Korean FDA Approved for Gemcitabine HCl & Ambroxol HCl.
COS received from EDQM for Buflomedil HCl (R0-CEP 2006-080-Rev.00).
COS received from EDQM for Oxaliplatin EP (R0-CEP 2006-201-Rev.00).
"Best District Export Award" received from FKCCI, Bangalore on 20.06.2008.
COS received from EDQM for Gemcitabine HCl EP (R0-CEP 2006-222-Re
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Work flow model (End to End):
STAGE: 1
STAGE: II Stage: I
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QC Analysis
Drying
Filtration
Additions
Raw material
Addition of Raw materials
Filtrations
Drying
QC Analysis
SHILPA MEDICARE LTD, 100% EOU
STAGE: III
STAGE: II
Reaction
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Addition Raw materials
Filtration
Drying
Milling
Shifting
Packing
Product Export
SHILPA MEDICARE LTD, 100% EOU
Future growth and prospects:
Shilpa medicare is expecting to construct Raichem Medicare Pvt Ltd
opposite to shilpa medicare ltd
Constructing Raichem Life sciences Pvt Ltd (Formulation Unit).
It has strong determination to expand its plant.
The important plan of the company is to be the leader in the market or to be
in the leading position.
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MCKINSEY’S 7S FRAME WORK
Introduction
The 7-S framework of Mckinsey is a management model that describes 7 factors
to organize a company in a holistic and effective way. Together these factors
determine the way in which a corporation operates. Management should take into
account all of these factors, to be sure successful implementation of strategy. Large
or small, they are interdependent, so if u fails to pay proper attention to one of them,
this may affect all others as well. On top of that the relative importance of each
factor may vary over time.
The 7-S framework was first mentioned in “The art of Japanese Management” by
Richard Pascale and Anthony Athos in 1981. They had been investigating how
Japanese industry had been so successful. At around the same time that Tom Peters
and Robert Waterman were exploring what made a company excellent. The 7-S
model was born at a meeting of these four authors in 1978. It appeared also in “In
search of Excellence” by Peters and Waterman, and was taken up as a basic tool by
the global management consultancy company Mckinsey. Since then it is known as
their 7-S Model.
Let’s look at each of the elements specifically:
Strategy: The plan devised to maintain and build competitive advantage over
the competition.
Structure: The way the organization is structured and who reports to whom.
Systems: The daily activities and procedures that staff members engage in to get
the job done.
Shared Values: Called “Super Ordinate 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.
Style: The style of leadership adopted.
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Staff: The employees and their general capabilities.
Skills: The actual skills and competencies of the employees working for the
company.
Fig 1: Mckinsey’s 7s frame work
Strategy :
To maintain and build competitive advantage over the competition.
Shilpa Medicare follows competitive strategy. As the company wants to expand their
business by providing good quality and to create good work environment in the
organization.
The other strategies used by the company are:
To perform beyond customer expectation and to create a long term
relationship with customers.
To provide products and services of high quality.
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Staff :
The employees and their general capabilities which are necessary to
accomplish the job which leads to achieve organization goals effectively and
efficiently. Staff refers to the number of employees and types of employees in an
organization. Staff is responsible for the development of the organization. Shilpa
Medicare consists of skilled, semiskilled and unskilled employees. The Strength (size)
is 190 on role (permanent employees), 60 contractors all together 250 employees.
Shilpa Medicare PVT LTD staff
* Office Staff - 80
* Skilled employees - 60
* Semi – Skilled - 30
* Unskilled - 20
Structure :
The way the organization is structured and who reports to whom is all
included in the structure of the organization. The design of the organization structure
is critical task of the management of an organization. It is the skeleton of the whole
organization. The organization structure refers to relatively more durable
organizational arrangements and relations. Shilpa medicare pvt ltd has implemented
and successfully working with “FUNCTIONAL ORGANIZATION STRUCTURE”.
ORGANISATION CHART
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Chairman
Omprakash Inani
SHILPA MEDICARE LTD, 100% EOU
PRODUCTION DEPARTMENT
Production is the basic activity of all industrial units. All other activities
revolve around this activity. The end product of the production activity is the creation
of goods and services for the satisfaction of the human wants. The production activity
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Managing Director
B.Vishnukant
Finance Manager Ramakant Inani
General Manager Operations
K.Sharath Reddy
Vice President, R&D
Prashant Purohit
Vice president Q.A & Regulatory affairs Pramod kumar
Store & excise Manager
Purchase manager
HRD Manager
Accounts Manager
Manager, R&D
R&D chemist
Q.A manger
QC, QA chemist & microbiologist
Maintenance manger
Maintenanace supervisor
Chemists
Shift in charges
Production manger
Operators
Electricians Filters Welders
SHILPA MEDICARE LTD, 100% EOU
is nothing but the step-by-step conversion of one form of material into another either
chemically or mechanically. This is done in factories which house manufacturing
processes. The basic input of the production processes is men, machines, plants,
services and methods
World-class production facilities
Reactor capacities ranging from 63 L to 6000 L capacities for low volume-high
cost and high volume-low cost products.
State-of-the-art facilities at Shilpa Medicare are geared to manufacture quality
bulk drugs. They include stainless steel and glass-lined reactors having capacity
ranging from 350-5000 liters. Production processes used at Shilpa Medicare are
environment friendly.
Served by steam, brine, nitrogen and vacuum services.
Range of Temperatures: - 25ºC to +300ºC.
Vacuum: < 1 mm/Hg.
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SHILPA MEDICARE LTD, 100% EOU
Tray and Air-bed Drier, Centrifuges, Blenders and Jet Mill.
Bulk storage of solvents including fully closed and delivery systems to reactors.
Chemical and biological waste water treatment.
RESEARCH AND DEVELOPMENT DEPARTMENT
Shilpa Medicare is a fast growing pharmaceutical active ingredient
manufacturing company engaged in manufacturing of world class pharmaceutical
bulk drugs, under WHO-GMP guide lines. Our manufacturing plant is equipped to
manufacture API’S and chemicals and having all the facilities of in house testing and
R & D.
Shilpa Medicare is fully focused on R&D as a means to offer quality
products at competitive price and also for development of new products. We
undertake innovation of new products as per customers' requirement. The production
technologies of all existing products have been developed in-house and the R&D
efforts are aimed at developing highly efficient and cost-effective technologies and
manufacturing process
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SHILPA MEDICARE LTD, 100% EOU
Quality Assurance Department
Shilpa Medicare provides consistent quality to the customers. Strict quality
assurance is inherent in every step of our process, from incoming raw materials to
shipment of the finished product. Each of our raw materials is selected by our
experienced purchasing department, based on strict physical and chemical criteria.
Upon arrival at shilpa’s facility, each ingredient lot is carefully checked and analyzed
by our quality control personnel.
The Quality Assurance Department ensures that the manufacturing
facilities and procedures are standardized to provide the international quality
attributes to the products consistently for each batch through a well-documented,
validated and audited system.
Shilpa Medicare is fully equipped with gas chromatograph, spectrophotometers
and other high-tech apparatus; as also micro-biological facilities to check the quality
of raw material, semi-finished products and finished products following Good
Laboratory Practices by qualified and approved chemists.
Skill :
Skilled: The actual skills and competencies of the employees working for the
company. Skills of the work force are technically qualified like ITI’s, chemical
technology (practical knowledge), Engineers or any specified courses completed.
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SHILPA MEDICARE LTD, 100% EOU
Semi killed: Semi skilled employees will be having basic knowledge about the
work, they will not be holding any technical education Semiskilled employees
qualifications like 8th or 10th pass out.
Unskilled: No qualification is required, employees like Helper (loading and
unloading the material, movement of materials from one place to another), Office
Boys.
Style :
Autocratic leadership style is followed in Shilpa Medicare. Employees are very
cooperative with their co-workers.
System :
Shilpa Medicare Pvt Ltd. uses the complete systematic processes in all the
fields liquality control systems, standardized Operating Procedure (SOP), and the date
and time analysis Systems for manufacturing processes.
Employee attandence
Attendance is one of the most important tools of evaluation of an employee.
In Shilpa Medicare Pvt. Ltd., the employee attendance is maintained manually in a
register. Whenever the employee enters the organization, he needs to enter the name,
date, time of entrance, signature etc in a register that is maintained at the office as well
as punch card machine is used where employees need to punch the card while incoming
and outgoing from the organization. At the end of every month the number of days
attended by the employee will be assessed and the salary is calculated accordingly.
Wages and salary system
The employees get adequate and equitable remuneration for the work done by
them. In Shilpa Medicare Pvt. Ltd., the jobs are evaluated and based on this salary to be
paid is determined. Salary is paid to the employees in the first week of the every month.
Share value :
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SHILPA MEDICARE LTD, 100% EOU
Shared Values observed in Shilpa Medicare Pvt. Ltd., are:
Discipline
Unity
Team work
Belongingness
Coordination
Concern for environment
Aim for excellence in every area.
SWOT analysis
Strengths:
Communication channels operate well, the ways and directions of the
communication channels are clearly defined.
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SHILPA MEDICARE LTD, 100% EOU
The products are well-packed and precisely labeled, they can be clearly
identified.
The delivery takes place subsequently to the event of ordering, payments
deadlines are kept.
Low cost of production
Experienced staff
Benefits provided by government to 100% EOU Unit
Weaknesses:
Company not getting quality man power available in this region.
Workers absenteeism
Transportation costs are high
Modern machines are equipments are not installed in the company.
Opportunities:
Better network of customers
Availability of cheap and efficient labor in Raichur.
Better opportunity to set up a new plant in abroad since the export market for
Shilpa Medicare Products is very well established
Drugs that address rising multifactorial disorders such as cancer as well as
lifestyle disorders such as obesity are also likely to experience strong revenue
growth
Threats:
Competitors
Competitive prices
Economic crisis
Analysis of Financial statement :
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2011
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SHILPA MEDICARE LTD, 100% EOU
Particulars Current year
(31st March, 2011)
Previous year
(31st March, 2010)
INCOME
Sales Turnover 263.37 240.67
Excise Duty 5.82 5.43
NET SALES 257.54 235.24
Other Income 0.00 0.00
TOTAL INCOME 261.30 235.44
EXPENDITURE:
Manufacturing Expense 7.79 6.67
Material Consumed 154.26 128.36
Personal Expenses 17.59 12.12
Selling Expenses 3.89 5.56
Administrative Expenses 4.23 4.33
Expenses Capitalised 0.00 0.00
Provisions Made 0.00 0.00
TOTAL EXPENDITURE 187.76 157.05
Operating Profit 69.79 78.19
EBITDA 73.54 78.40
Depreciation 10.42 9.76
Other Write-offs 0.00 0.00
EBIT 63.12 68.63
Interest 2.27 5.49
EBT 60.85 63.14
Taxes 14.91 21.23
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SHILPA MEDICARE LTD, 100% EOU
Profit and Loss for the Year 45.94 41.91
Non Recurring Items 4.86 3.96
Other Non Cash Adjustments 0.09 0.24
Other Adjustments 0.04 -01
REPORTED PAT 50.93 46.01
KEY ITEMS
Preference Dividend 0.00 0.00
Equity Dividend 1.92 1.54
Equity Dividend (% 40.00 35.00
Shares in Issue (Lakhs) 240.24 220.24
EPS - Annualised (Rs) 21.20 20.89
Balance Sheet as at 31st March 2010
Particulars Current year Previous year
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SHILPA MEDICARE LTD, 100% EOU
(31st March, 2011) (31st March, 2010)
Liabilities
Share Capital 9.18 4.40
Reserves & Surplus 226.03 107.79
Net Worth 235.21 112.19
Secured Loans 50.97 67.47
Unsecured Loans 0.00 0.00
T OTAL LIABILITIES 286.18 181.19
Assets
Gross Block 163.00 155.96
(-) Acc. Depreciation 35.90 28.02
Net Block 127.09 127.94
Capital Work in Progress 3.01 3.69
Investments 28.08 3.69
Inventories 37.44 43.65
Sundry Debtors 33.63 31.49
Cash And Bank 83.75 2.09
Loans And Advances 32.09 42.23
Total Current Assets 186.91 120.45
Current Liabilities 41.05 52.02
Provisions 17.87 21.93
Total Current Liabilities 58.91 73.95
NET CURRENT ASSETS 128.00 46.50
Misc. Expenses 0.00 0.00
TOTAL ASSETS (A+B+C+D+E) 286.18 181.19
Analysis of financial statement:
Calculation of working capital: Current asset-Current liability
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SHILPA MEDICARE LTD, 100% EOU
2010= 119.46 – 45.53 = 73.93
2011= 186.91 – 128 = 58.91
Calculation of current ratio: Current asset
Current liability
2010= 119.46 / 73.95 = 1.6154
2011= 186.91 / 58.91 = 3.1729
Calculation of quick Ratio: Current Asset – Inventory
Current liability
2010= 119.46 – 43.65= 1.0251
73.95
2011= 186.91 – 37.44 = 2.5372
58.91
Calculation of cost benefit ratio = Profit
Capital
2010= 46.01= 10.4569
4.40
2011= 50.93= 39.8692
9.18
Profit margin increased in the year 2011 compared to 2010.
INTRODUCTION TO TOPIC- “Quality of work life”.
I have under taken project on “Quality of work life”. The main reason is to
learn how different work life situations affect employees in their working styles. The
main aim is to understand what good quality work life means to employees and how it
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SHILPA MEDICARE LTD, 100% EOU
affects the companies. The project helps me to understand how a company‟s HR
Department try to improve their business by keeping good relation with employee. It
helps to understand how good working conditions help employees to work more
efficiently. “Quality work life” emphasises on how an employee and employer should
keep a proper balance between their work and family
WHAT IS QWL?
The term refers to favorableness and unfavourableness of a total job environment for
people. QWL program are another way in which organizations recognize their
responsibility to develop jobs and working conditions that are excellent for people as
well as for economic health of the organization. The elements in a typical QWL
program includes - open communication. The reward system. A concern for employees
job security and satisfying careers and participation in decision making.QWL
programs usually emphasis development of employee’s skills, the reduction of
occupational stress and the development of more co-operative employee-employer
relations.
QWL means having good supervision, good working conditions, good pay and
benefits and an interesting, challenging and rewarding job. High QWL means an
employee philosophy that encourages the use of QWL efforts, which are
systematically attempts by an organization to give workers greater opportunities to
affect their jobs and their contribution to the organization’s overall effectiveness. i.e.;
a protective human resource department finds ways to empower employees so that
they draw on their “brains and wits,” usually by getting the employees more involved
in their decision making process.
Employee welfare measures are provided in almost all organizations today. However
quality of work life goes beyond just welfare measures. Many studies have been on
the quality of work life in software or high-tech companies, but very few studies are
conducted on manufacturing industry, Therefore, this study intends to establish the
impact of work environment on the quality of work life of employees in a
manufacturing company.
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SHILPA MEDICARE LTD, 100% EOU
There has been much concern today about the decent wages, convenient
working hours, conducive working conditions, etc. Their term “Quality of Work life”
has appeared in Research Journals and press in USJ only in 1970s.There is no
generally acceptable definition about this term. However, some attempts were made to
describe the term quality of work life QWL. It refers to the favorableness or
unfavourableness of a job environment for people. J. Richardand J. Lay define QWL
as ‘ the degree to which members of a work organization are able to satisfy important
personnel needs through their experience in the organization.”Quality of work life
improvements are defined as any activity which takes place at every level of an
organization, which seeks greater organizational effectiveness through the enhance me
of human dignity and growth. A process through which the tock-holders in the
organization management, unions and employees—learn how to work together better
to determine for themselves what actions, changes and improvements are desirable and
workable in order to achieve the twin and simultaneous goals of an improved quality
of life at work for all members of the organization and greater effectiveness for both
the. company and the unions. Richard E. Walton explains quality of work life in terms
of eight broad conditions of employment that constitute desirable Quality of Work life
(QWL). He proposed the same criteria for measuring QWL.
The quality of work life(QWL) is a wide term covering an immense
variety of programmes, techniques, theories and management styles through which
organizations and jobs are designed so as grant employees more autonomy,
responsibility and authority than is usually done. It is a comprehensive, department-
wide program designated to improve employee satisfaction, strengthening workplace
learning and helping employees (Anonymous, 2005).A high quality of work life is
essential for organizations to continue, to attract and retain employees (Sandrick,
2003). Many factors contribute to QWL which includes adequate and fair
remuneration, safe and healthy working conditions and social integration in the work
organization that enables an individual to develop and use all his or her capacities; it
holds that people are the most important resource in the organization as they are
trustworthy, responsible and capable of making valuable contribution and they should
be treated with dignity and respect. (Straw, R.J. and C.C. Heckscher, 1984).
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SHILPA MEDICARE LTD, 100% EOU
NEEDS &SIGNIFICANCE OF THE STUDY
Quality of work life programs has become important in the work place for the following
reasons:
Social integration in the company
Increased responsibility for elders
Increased demands at work
Loss of long term employment guarantees
The need for enhanced work place skills
QWL Plans are designed to accomplish the following:
Improve communication with employees;
Strengthen family friendly programs;
Increase investment in work place learning;
Increase the effectiveness of the supervisors and team leaders;
Improve ability to manage change and transition.
QWL programs have been found to:
Improve work place morale
Encourage employees commitment
Support recruitment
Encourage retention
Enhance productivity
Reduce absenteeism
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SHILPA MEDICARE LTD, 100% EOU
SHILPA MEDICARE LTD, 100% EOU
ANALYSIS, INTERPRETATION OF RESULTS:
1. Experience in SHILPA MEDICARE PVT LTD
Rating scale Total Percentage
Less than one year 17 34
One-Tow years 18 36
Two-Five years 2 4
Five years 13 26
34%
36%
4%
26%
Less than one yearOne-two yearsTow-five yearsFive years or more
Analysis:
Above table already says that 36% of respondents are having experience of less than two
year & 34% people are having less than one years experience, 26% are having experience
of more than five years & 4% are having experience of less than five years.
Interpretation:
From the above analysis it shows that more number of employees who are working in
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