A Report on Industrial visit of IBIV

Submitted to: Jitendra Sharma Submitted By :Tejas Prajapati

Company Overview

Zydus Cadila Zydus Cadila is a fully integrated, global healthcare provider, with strengths all along the pharmaceutical value chain. With a core competence in the field of healthcare, Zydus Cadila provides total healthcare solutions ranging from formulations, active pharmaceutical ingredients and animal healthcare products to cosmeceuticals.

The groups origin can be traced to 1952 when it was founded by Late Mr. Ramanbhai B. Patel, a first-generation entrepreneur and one of the stalwarts of the Indian Pharmaceutical Industry. In 1995, the group restructured its operations and Cadila Healthcare came into being under the aegis of the Zydus group. Zydus Cadila, today, is spearheaded by Mr. Pankaj R. Patel, the Chairman and Managing Director of the group. From a turnover of Rs 2.5 billion in 1995, the groups turnover soared to over Rs 2900 corers in 2008-09.

Mission In all its dimensions, our world is shaped by a passion for innovation, commitment to partners and concern for people in an effort to create healthier communities, globally. Vision To be a leading global healthcare provider with a robust product pipeline, Stepping beyond the billion we shall achieve sales of over $3bn by 2015 and be a research driven Pharmaceuticals Company by 2020.

Home Markets

India Maintained leadership positions in the Cardiology, Gynecology, Gastro Intestinal and Respiratory therapy segments (represented markets) and outpaced the overall market growth of 12% (Source: AIOCD AWACS MAT Mar-13). Restructured operations at Biochem to establish a strong foundation for achieving mid and long term growth plans. Launched over 90 new products (including more than 50 line extensions) in India, of which, 21 were first in India. Overall, formulations business in India posted sales of Rs.23, 232 Mio. Up by 23%.

Foreign Markets

Us Launched 7 new products, including one controlled substance product from Nesher, in the US market. US business posted sales of Rs.15,068 Mio., up by 21 %.

Brazil Continued focus on brand building initiatives in keeping with the aim to be a leading player in chronic therapy segments like cardiovascular, diabetes and neuro psychiatry and launched 2 new products in Brazil. Overall, the operations in Brazil posted sales of Rs.2,384 Mio.

Mexico Undertook several initiatives to launch commercial operations in 2013.

Europe Continued to progress well in France on the back of high growth of the French generic market. In Spain, continued to outperform the market growth rate. Launched 13 new products in the French generic market, of which, 5 were Day-1 launches. Overall, European business posted sales of Rs.3,697 Mio., up by 24%.

Other Businesses

Emerging Markets Launched more than 30 new products in the key markets of Asia Pacific, Africa and Middle East during the year. Overall, Emerging Markets business posted sales of Rs.3,134 Mio., up by 66%. Consumer Wellness Sugar Free, Indias leading sugar substitute, continued to maintain its leading position with a market share of more than 92%. Revamped EverYuth brand with the launch of new variants of face washes, scrubs and premium range of soaps. EverYuth Menz was also revamped and re-launched during the year. In the Nutralite category, launched the premium variant namely Omega 3 in order to enhance the health offerings of the brand. This new variant was declared as the 'Product of the Year'. During the year, Zydus Wellness Ltd. registered sales of Rs.4,100 Mio., up by 19% and net profit of Rs.971 Mio., up by 43%.

GDSO and why it is so importance in Pharma business?GDSO stands for Global demand & Supply Organization this is the main part of ZYDUS because this department handling the all the demand and supply of the global operations. GDSO is handling the supply chain and orders from their foreign clients. And also it is multinational company so it is require maintaining global supply chain in proper manner if it not proper then its difficult to remove bullwhip effect.

IRDA why it is important?IRDA stands for Insurance Regulatory and Development Authority is the part of the Govt. and every exporter party has to take permission from the Govt. and has to registration of their products for safety of the product process and quality

USFDA?USFDA stands for United States Food and Drug Administration and The Food and Drug Administration (FDA) is an agency within the U.S. Department of Health and Human Services. It consists of the Office of the Commissioner and four directorates overseeing the core functions of the agency: Medical Products and Tobacco, Foods and Veterinary Medicine, Global Regulatory Operations and Policy, and Operations. ZYDUS and the other pharmaceutical companies have to take the license from USFDA and have to submit their production formulas also.

About WindsorThe company set up operations at Thane (near Mumbai) in 1964, under collaboration from R. H. Windsor of U.K. In 1984, it became a part of worldwide operations of Klockner - Werke, Germany and renamed as Klockner Windsor India Limited. Subsequent to the disinvestment of equity by Klockner to Mr. Dilip G. Piramal in 1994, the Company was named as DGP Windsor India limited. Since 2005, the company has been rechristened as WINDSOR MACHINES LIMITED.In 2008, the company underwent a major transformation when Kundalias took over the reins to revive the company and restore it to its rightful position. Under the visionary leadership of Mr. Prakash Kundalias, the company rose like a phoenix with a new sense of purpose, urgency and hitherto unknown vitality. The company turned around in the very first year, becoming profitable and set out to fulfill its destiny of being the leader in the plastic processing machinery industry. In the year 2009-2010 we crossed a turnover of Rs. 200 crores with more than 100% growth and are poised to maintain the pace.Our philosophies of working for customers profits and being a machinery supplier with lowest running cost (per kilo of polymer processed) have resulted in wide acceptance by the industry. Today, we have an installed global base exceeding 15,000 machines.

Vision To be a Market leader in plastic processing machinery industry thinking innovatively and

providing measurable solutions to our customers. To be a global organization having holistic concern for its employees, stakeholders, and

society; striving to generate optimum value for all by adopting the best global practices To be an institution with a conscience and horizon working in harmony with nature to reduce

the carbon footprint

OPERATIONS: During the year under review, your Company has sold 436 machines to achieve turnover of Rs. 214.48 chores as compared to 489 machines in the previous year with a turnover of Rs. 219.35 crores. During the year, sales and profit of the Company have been affected by adverse market condition. During the year your Company has extended its customer base by launching machines for special applications and concentrated in launching new product range.

Major Markets: The major market of such product is Africa and Middle East, countries like Oman and Saudi Arabia. In North Africa they are exporting into caniya Tanzania, Ethiopia, Uganda, and Mozambique. They are exporting all the countries of east Africa. In West Africa they are exporting to Francophone, Ghana, and Nigeria In South Africa they generally export to Zambia, Mozambic and Angola etc

Payments: They are expecting and receiving the payment only in the following two ways: By TT and at 30% advance along with the order and then after at the dispatch/ before the dispatch they take the remaining 70% of the payment. That means they are taking 100% payment before the dispatch take place. Confirmed and irrevocable L/C (Letter of Credit) only through prime international banks.

Modes of Entry: The mode of entry in other country is via Exports, they get the orders from online or one person comes here from that country and give the order Generally they are exporting 20% of machinery which they are manufacturing and yearly they are manufacturing 420 to 480 machines per year so monthly they are manufacturing 35 to 40 machines so monthly they are exporting 7 to 8 machines.

Factors considered while selecting new market: It is based on demand of such machines in that market Competitors strength in that new market

4Ps: Product Their products are plastic articles i.e. injection moulding machines. They are manufacturing small sized machines, medium sized machines and heavy machineries as well. Their product ranges are as follows: Blown Film Extrusion Lines Pipe Extrusion Lines and Blow Moulding Machines Armour Sprint and Castle

Place: They are exporting in to African countries, Gulf Countries, European Countries, and Far East countries.

Promotion: They use to promote themselves through updating their websites, gives add in online business directories, participating in trade fares in other countries, through agents and through many more.

Price: The price of the machine is decided on the capacity of the machine, minimum price of machine is 15 lakes and maximum price is 1 cr, it depends on size, capacity, etc

Ports they are using: The major ports which they are using are Mundra port, Pipava port, JNPT port. This is the major three ports which they are using for exporting their machines from one country to another Factors Consider by selecting Freight Forwarder: The factors that are considered while selecting the freight forwarder or CHA are as follows: Overseas Presences Low Freight Rate Services provided by the Freight forwarder or CHA Documentation turnaround time Freight Forwarder always create good relation with shipper and also maintain relation by giving good service, communications, follows up etc. and the shipper is satisfied with all this he is going to select freight forwarder or CHA.

Challenges Faced by shipper: In case of any mistake done by themselves than they have to bear the cost and in case of mistake done by the freight forwarders than freight forwarders need to bear the costs. Generally the mistakes dose not takes the place.

Learning:Value Proposition from the Customers Point of View

Through I come know documentation in approve in export product.

Buyer's Details 2) Consignee Details 3) Mode of Shipment 4) Inco-Terms & Terms of Payment 5) Port of Discharge 6) Product Name, Product Quantity, Rate, Currency, Shipping Marks

Pre Shipment documentation, 1). Checklist with costing and finance approval. 2). Original Letter of Credit copy 3). Certificate of analysis 4). One sample of any one batch of each product required for customs passing Driver at time of dispatching the goods. 5). Drug Manufacturing License Copy & Product List same should be enclosed with all pre6). Customs Invoice mentioning incentive scheme, Commission & Packing List (Packing details to be entered in SAP by respective plant Warehouse person against order provided by Export Logistics7).Shippers Letter of instruction 8). Self Declaration Form (SDF) (02 copy / Invoice)

I dont see any difference or clear advantage in this companys offer compared to others. Ill be persuaded (for now) by sales or marketing tactics rather than the virtues of the product or service.

This company provides a product

or service that is basic but serves

my purpose well.The price is cheaper - why pay more for features I dont

need.

from the Customers Point of View

Through I come know documentation in approve in export product.

Terms & Terms of Payment

6) Product Name, Product Quantity, Rate, Currency, Shipping Marks

1). Checklist with costing and finance approval.

4). One sample of any one batch of each product required for customs passing To be given to Truck Driver at time of dispatching the goods. 5). Drug Manufacturing License Copy & Product List to be given by Plant Regulatory one time (The

enclosed with all pre-shipment documents for CHA). 6). Customs Invoice mentioning incentive scheme, Commission & Packing List (Packing details to be entered in SAP by respective plant Warehouse person against order provided by Export Logistics

8). Self Declaration Form (SDF) (02 copy / Invoice)

This company provides products or services that offer a desirable benefit that I care about.For this, I am prepared to pay a premium

This company draws on its expertise

and assembles resources to provide a

unique solution to my problem.Im prepared to enter into a longterm relationship with them.

VALUE

PRICEDOFFER

CUSTOM MADE

SOLUATION

PREMIUM

OFFER

IN-BETWEEN

OFFER

To be given to Truck

to be given by Plant Regulatory one time (The

6). Customs Invoice mentioning incentive scheme, Commission & Packing List (Packing details to be entered in SAP by respective plant Warehouse person against order provided by Export Logistics

This company provides products or services that offer a desirable benefit that I care about.For this, I am prepared to pay

This company draws on its

and assembles resources to

unique solution to my problem.Im prepared to enter into a longterm relationship with them.

9). ADC Sheet 10). Value Declaration (Annexure A)(1 copy / Invoice) 11). Certificate of Analysis (Product wise) 12). Drug Manufacturing Permission along with License. 13). Non Hazardous Certificate. 14). Air Waybill / Bill of Lading Instruction (any one as applicable) 15). Duty Drawback / Advance Authorization Declaration (any one as applicable) 16). Are1 to be given with cargo 17). Central Excise Invoice to be given with cargo

Operations

Reliability and capacity improvements require a commitment from both Maintenance and Operations.Operational processes and procedures ensure a standardized approach to all activities performed. No organization can afford numerous ways to accomplish activities, nor can it afford additional opportunities to induce failure from lack of defined and documented operational process andprocedures.

A)(1 copy / Invoice) 11). Certificate of Analysis (Product wise) 12). Drug Manufacturing Permission along with License.

14). Air Waybill / Bill of Lading Instruction (any one as applicable) 15). Duty Drawback / Advance Authorization Declaration (any one as applicable)

to be prepared by Warehouse Department of respective plant. to be given with cargo to be prepared by Warehouse Department of

Reliability and capacity improvements require a commitment from both Maintenance and Operations.ocedures ensure a standardized approach to all activities performed. No

organization can afford numerous ways to accomplish activities, nor can it afford additional opportunities to induce failure from lack of defined and documented operational process and

respective plant. to be prepared by Warehouse Department of

Reliability and capacity improvements require a commitment from both Maintenance and Operations.ocedures ensure a standardized approach to all activities performed. No

organization can afford numerous ways to accomplish activities, nor can it afford additional opportunities to induce failure from lack of defined and documented operational process and

Overview

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and along the way, a strong view had emerged that there was a need to set up a separate pro-active organization for promoting and managing the growth of containerization in India.

Concor

Container Corporation of India Ltd. (CONCOR) was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 59 ICDs from the Indian Railways. The company developed multimodal logistics support for Indias International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road services and also provided to cater to the need of door-to-door services, whether in the International or Domestic business. CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics solution to its customers. It strives to be the first choice for its customers. CONCOR is a customer focused, performance driven, result oriented organization, focused on providing value for money to its customers.

Policy of Concor They are committed to provide reliable, responsive, safe and value Added logistic services in a cost effective & consistent manner Using latest innovations to ensure complete customer Convenience & satisfaction and value for money through Continual improvement of our quality management systems and Processes

Facilities & Services Train Handling. Stacking of Containers. Customs clearance of Import/export cargoes. Warehousing of cargo (transit, bonded, LCL consol, multi-stack, specialized AC, Air). Associated Value Added Services. Door to Door Solutions

Containerization of exports and imports does not begin and end at the ports. CONCOR provides transport linkages between ports and the hinterland. Regular container trains are run to and from ports to CONCOR's terminals in the hinterland. Some of the terminals are also served by road. With liberalization and opening up of the India economy, lowering of import tariffs and reduction in the number of commodities whose import/export was prohibited by the Government, there is an increasing trend of containerized imports/exports into/from India. Along with the growth of container business at Indian Ports, the level of containerization itself is increasing.

FACTORY STUFFING / DESTUFFING

Keeping in time with the international trend, containers are now going to shipper's units more and more for cargo stuffing/ destuffing, as against the general trend a decade earlier, when most of the cargo was getting stuffed/destuffed at the ports/ICDs. CONCOR's ICDs are now fully geared to provide the requisite "on-carriage" and "pre-carriage" facilities to shippers, hence fully eliminating any cargo handling enroute. While such facilities are often available through private channels, CONCOR also has arrangements for providing such services on-demand at competitive rates as part of its efforts to provide single-window services. Customer Satisfaction They are regularly making efforts to improve our business processed to provide for improved quality of customer satisfaction. Some of the practices adopted by the organization for achieving these goals are listed below: On line Information & Container Tracking Container Repair & Cleaning Facilities Cargo Palletisation, Strapping etc. Cargo Lashing/Choking Facility Fumigation of Cargo/Containers Supply Chain Management Door Delivery/Pick Up of Containerized cargo Container/Cargo Survey Pre Deposit Accounts Round the Clock Security at Terminals Facilitation of Customs Clearance Flexible Payment Arrangements They conduct Customer Satisfaction Survey regularly to get a feedback from the customers and also take action to rectify/improve our services.

Challenges ShippingLineshavebeenperformingbadlywithmajorlinessufferinglossesandgrowthexpectedtobeslowinthenextfewquartersalso. TheEXIMtradegrowthhadbeensluggishinFY10. FY11witnessed growth in later part of the year, how ever there was a heavy imbalance of Exports and Imports. The above problems of EXIM industry resulted in: Mushrooming of Port side Container Freight Stations to enable quick repo of container south of country. Reduced Hinterland movement of Containers by Rail To retain the Rail Share, there will be a continuous need to reduce the tariffs to keep it competitive vis--vis road

Warehouse facilities in ICD Bonded warehousing offers a dual advantage to the importer. On the one hand, it allows the deferral to duty payment, and at the same time, allows for cargo to be stored under the relatively cheaper option of warehouse storage as opposed to holding on to an ISO container for which dollar lease rentals accrue on the importer. There is an increasing demand for bonded warehousing in all parts of the country. CONCOR has a unique advantage in offering this service. Its warehouses are located in close proximity to the sidings/ICDs where imports arrive in the first place. This makes bonding of cargo a very cost effective option, as there is practically no transfer costs involved in the movement of cargo from landing facility to a nominated bonded warehouse.

Excellent utilization of dock resources because the receiving and shipping processes can share dock doors

Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled

Excellent lift truck utilization because put away and retrieval trips are easily combined and because the storage locations are closest to the receiving and shipping docks, they become natural locations to house fast moving items

Yields excellent security because there is a single side of the building used for entry and exit

Through' flow happens when separate loading bay facilities are available for Inbound and shipping are provided, often at opposite ends of warehouse Products flow in at receiving, move into storage, picking area and then the staging area and dispatch area in a straight line

Items with a higher throughput level are located at the centre of the warehouse because the total distance travelled would be shorter

Silent Feature of ICD

1. Tondiarpet is the only Hub point in South India with Rail/Road Connectivity to Major Ports/ICDs 2. Offering competitive rates 3. Lock fast facility for sensitive cargo 4. Bonding facility for LCL Cargo 5. Warehousing of Export cargo 6. Hastle free, Safe, Secure, State of the art Service 7. Trained Labour, Battery Operated FLTs for LCL 8. Office Space for shipping line, NVOCC and Consolidators in the same complex 9. Weighment facility 10. on chassis stuffing/De-stuffing 11. Facility for Lashing, Packing, Palletizing etc 12. Transportation from and to port available 13. Warehousing/Quick clearance available at ICD/WFD. 14. Warehousing space on Lease available 15. Closed circuit TV at the warehouse for strict security check.

Requirements of manpower in the ICD

Manpower is divided into management/administration and operations. The number of staff for management and operations can be determined based on throughput. Concor provided manpower figures for ICD as reference. Table shows some of these reference numbers.

Table ICD Manpower Requirements ICD Volume (TEU) 50,000 150,000 200,000 Stuffing/stripping (TEU) 20,000 35,000 67,000 Management 42 48 54 Operations 234 371 483 Yard Operations 27 44 61 Stuffing/Stripping 170 282 368 Documentation 37 45 54

Container depot requires manpower at two levels, i.e. management and operations. Management or administration requirements are contingent on organizational structure, remain relatively fixed in quantity over time, and do not vary proportionally with traffic volume. Instead, operations requirements change according to the container volume processed by ICD, which typically demand manpower according to handling equipment, and ratio of stuffed/stripped containers to total container volumes, and other factors, which frequently necessitate more than one work shift per day.

Layout of ICD Khodiyar.

165 m

N 142.8m

Demolished

Roadway Roadway 5m

Loaded Loaded Loaded LoadedWarehouse Stack Stack Stack Stack

20 TEU= 19 TEU=

163mRoadway 129m 122.55m

163 m197mRoadway

Empty10m Stack10m

Roadway Roadway20m Crossdock 5m

GateNew Warehouse Gate

Office

Note: Given the limitations of land availability and shape, the above figure shows two alternatives in the length of loaded container stacks: either 19 TEU or 20 TEU.

Learning:

First, any logistic model must be grounded on the realistic characteristics and essence of real world problems. That is, a model must abstract the most basic and crucial elements of reality, further explain the intrinsic intricacy, and finally control and predict the change of problems. Hence, for a specific problem, the realism of the proposed logistic model is even of more important than the sophistication of the designed solution algorithm in the sense that the realism of a model is the premise of a goodsolution to the problem.

Second, no formulation exists that embodies all facets of a realistic problem although many modelers have tried to rationally incorporate realism. Given such circumstances, the optimal solution produced by theoretical optimal algorithms does not mean that this solution is optimal to realistic problems.