MEDICINESURVEY REPORT

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Segment Medicine Companies involved GSK , Cadila ,Macleods , Intas Pharma

Zydus cadila ,Aventis, Dr.Reddy ,Novartis Nicholas ,Paras pharma, Cipla, Morpen, HA, Vilco, Zero, DWD, Phyto .

Vehicles used in segment- LTV-ape3wheeler,mahindra,bajaj,apetruk,tata

ace,minidor HTV- TATA -407,709,trucks

The Indian Pharmaceutical Market

The Indian pharmaceutical market is the world's fourth largest by volume (8% of global total) and thirteenth largest by value (less than 1% of global total). Although prices are the lowest in the world, 70% of the population does not have access to drug therapy and 2002 per capita consumption was only $3.33. The lack of pharmaceutical patents means that there is an average of 200 brands for every molecule on the market.

Research methodology Primary research Developing questionnaire. Testing questionnaire on field. Direct interview with dealers,

distributors,c&f agents

Measuring the distribution network. Analysis of operating cost model. Collation of the data.

DISTRIBUTION NETWORK

COMPANY

HOSPITALS

DRUG STORES

PRIMARY

DISTRIBUTION

SECONDARY

DISTRIBUTION

TERTIARY

DISTRIBUTION

Primary distributionCompany

Mother godown

Central warehouse

Company : -Cipla-Dr.Reddy-Ranbaxy-Rizlon-Cadilla-Zydus-Paras -Nicholas-GSK-Aventis-Vilco-Sigma-Lyka-Morpen-Novartis -sanders-cosme

Central warehouse

IndoreMumbaiNagpur

pune

FursungiUruliDevachiKondwawagoli

HCV HCV

Transportation mode-(HTV) Trucks: (6,8,10 tyres),cargo trucks Load carrying capacity Trucks-6 tyre -800 cartons 8 tyre -1200 cartons 10 tyre-1600 cartons Delivery days Days-10(twice a week) Number of trucks delivering -40/ Delivery charges: Based on cartons-Rs1.8/Carton

Secondary distributionRegional

warehouseDistributors

LTV

FursungiUruliDevachiWagoliKondvaHadapsar saswad

Sadashiv pethDavabazar(pcmc)

RanbaxyRevlonCiplaDr .ReddyCadilaParas pharmaAventisAriharant generic

AlembicSandersCosmeUniversal medical Hindustan antibiotic

Transportation Mode:

Vehicles used -Tata 407,Tata 709,Tata ace -Ape3wheeler,Minidor,Bajaj -Maxpickup,Mahindra Alfa

Working days no of days-6/week

Transportation mode Vehicles used

Ape3wheeler Bajaj Mahindra Alfa Tata ace Two wheelers Cycles Working days:6/week

Distributors(Sadashiv peth,pcmc)

•Dealers •Marketing representatives •Drug stores•Hospitals (Pune city)

LTV

Tertiary distribution•Dealers •Marketing representatives •Drug stores•Hospitals

customers

Counter selling

Ranbaxy Revlon Cipla Dr .Reddy Cadila Paras pharma Aventis Ariharant generic Alembic Sanders Cosme Universal medical Hindustan antibiotic

Ointments Liquid syrup Tablets capsules Gel Injections

Product

Ware house standing capacity -65000 carton Number of cartons supplied/day -500 Rate of supply of products are high during

first 10 days of the month

General store profile

Cartons variety:(weight basis) Kilos-2,5,7,8,9,10,12,15,18,24 Most used: 5kg,10kg,12kg,15kg For liquid products-12kgs,15kgs For tablets -5kg,8g,10kg,12kg For direct retail suplly-2kgs,5kgs

packaging

2kg 5kg 7kg 8kg 9kg 10kg 12kg 15kg 24kg

Vehicles usedcartons

Tataace,Mahindrapickup,Ape3wheeler,Minidor,Mahindra alfa,Tata407

Mahindrapickup,Tataace,407,

Consignment charge: Distributors-350/order Marketing representatives-200/order Carton charge:15rs/carton Billing charge: Order basis-10rs/order Delivery charges: Carton charge-18rs/carton Octroi charges:Rs80/vehicle(pune) Amount paid to (HTV)-1.8rs/carton Delivery boy charge-700/shop (Distributors Dealers/retail)

Pricing pattern

Medicine cartons loaded in ape 3 wheeler

Cipla warehouse

Name Area coverage

Vehicle model

Hired/own

Km/day

Load carried Deliver charge

mileage Driver pay

Emi tyre Maintenance cost

Fuel

Avg Max Wl l

Ranbaxy

60kms Ape3 wheeler

Hired 100 60 85 18/box 32 30 4500 4000 400 500 2500

60kms Tata ace

Hired 160 125 200 18/box 20 16 5000 7000 700 1100 8000

cipla 60kms Tata ace

Hired 150 120 200 18/box 17 14 5000 7000 700 1200 8000

tadpadiya

50kms Ape3 wheeler

Hired 100 70 80 10/box 32 30 5000 4000 400 500 2500

Company Profiles:

Name Area coverage

Vehicle model

Hired/own

Km/day

Load carried Deliver charge

mileage Driver pay

Emi tyre Maintenance cost

Fuel

avg max Wl l

Parekh 60 Tata ace

hired 100 150 200 18/box 18 15 5000 7000 700 1200 8000

Dr.reddy

70km ape3wheeler

Hired 100 60 100 15/box 30 28 4500 4000 400 500 2400

Revlon 60km Ape3wheeler

Hired 100 60 100 18/box 330

28 4500 4000 400 500 2200

Name Area coverage

Vehicle model

Hired/own

Km/day

Load carried Deliver charge

mileage Driver pay

Emi tyre Maintenance cost

Fuel

avg max Wl l

Chintamani

60 Ape 3wheeler

Hired

80 70 100 18/box 32 28 4000 4000 400 500 2500

Nitin distributors

60km bajaj owned

60 40 60 ----- 24 22 4500 4000 400 1500 6000

Cost of operationApe 3 Wheeler Tata Ace

Fixed cost

Drivers pay 4000 5000

Loan EMI 4500 7000

Maintenance cost 500 1200

Tyre cost 400 800

Insurance 400 700

Variable cost

Fuel cost 2500 8000

Mileage 30 16

Kms/day 100 120

Total operating cost

12300 22500

Ape3wheeler

4.7rs/km

Operating cost/km

Ape 3 wheeler operating cost is 35% lower than Tata ace.

EMI for ape 3 wheeler is lower than Tata ace.

Maintenance cost low for Ape 3 wheeler than Tata ace

Competitive advantage

Use of Ape3wheeler more in secondary distribution

Direct supply from warehouse to retail is also observed

Along with ape3wheeler tata ace and Mahindra Alfa are the other vehicles being used for transportation.

Various transport services are utilized on contract basis for the transportation

conclusion