Project ON BUSINESS PLANNERS INFLUENCE ON BUSINESS DECISSION

Name: M.Sai Ramesh Roll no: 11R21E0034 Indian Pharmaceutical industry

The Indian Pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs are available at affordable prices to the vast population of this sub-continent Core need of Pharmaceutical industry: It is often said that the basic needs for a man are food, shelter and cloths. But it is often said that the basic needs for a man without life needs these basic needs and can acquire them. Therefore it is a fundamental truth that all the basic needs are aimed towards life of the men which is most important. If those needs that are facilitate life indirectly are given such important. If those needs that facilitate life indirectly are given to health which is directly related to health and is responsible for the existence of man of course all those needs such as food shelter and cloths provide short term satisfaction and are given more importance compared to health which provides long term satisfaction. Pharmaceutical industry is that industry whose core needs lies in the health and therefore plays an important role in the humans life. As stated before its important has been over looked many of times but the strength in the core need has brought glory to the industry in the recent past. The Pharmaceutical industry plays a crucial role in building a countrys human capital. In India, it is among the top science based industries with a wide range of capabilities in the complex field of drug industries with a wide range of capabilities in the complex field of drug technology and manufacture. Achievements of the industry during the last three decades have been spectacular by any standards from a mere processing industry it has grown into a sophisticated sector with advanced manufacturing technology, modern equipment and stringent quality control. Pharma Industry:

The Indian Pharmaceutical Industry today is in the front rank of Indias science based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharmacy Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expended drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. Indian Pharmacy industry supplies essential drugs to consumers at must lower prices than any of its counterparts in the world. For example, rises of Cardiovascular drugs such as Atenolol and Enlapril are one-twentieth or on thirtieth of us prices. This is particularly significant in a country where availability of in expensive medicines is crucial to healthcare of the masses. Huge price differential can be attributed to the significant strides made by the Indian industry in the last 50 years. The top ten companies in the industry control around 31% of the market, no one can consider the primary aspect of the industry.

THE GROWTH SCENARIO OF INDIAN PHARMA INDUSTRY Indias 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 manufacturers exist in the country. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2006, which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 billion (21%) and formulations, the remaining Rs 210 billion (79%). In financial year 2001, imports were Rs 20 billion while exports were Rs87 billion. Today, the Indian pharmacy industry is known globally for its proven high quality, low cost advantage in delivering safe and effective pharmaceuticals. This transition, a tough and often-perilous one, was made possible by the pioneering efforts of many companies such as Dr.Reddys Laboratories. The new WTO rules imply that India will have to switch to a product patent regime post 2005 from its current process patent regime. This would alter the scenario in the India market around the next 10 to 15 years.

OBJECTIVES OF THE STUDY

Besides a general study of capitalization of the existing system of capitalization of fixed assets in Dr.Reddys Laboratories. To examine the present system of capitalization of fixed assets in Dr.Reddy Laboratories. To give suggestions if any to decrese the cost of production. To analyze the procedural aspects and accounting of capital expenditure, budgeting of capital expenditure, approval process to be followed. To communicate with the related department people regarding their machines and assets. To know the new procedure s to do the capitalization.

SCOPE OF THE STUDY Understanding the importance of capitalization of fixed assets in Dr.Reddys Laboratories Ltd. Evaluating an investment proposal of setting up facility at Dr. Reddys Laboratories Ltd., for manufacturing New Drug Launch. Limitations: The study was conducted with the data available and analysis was made accordingly. Due to the confidential financial records, the data is not exposed so the study may not be detailed and fully fledged. Since the study is based on the financial data that are obtained from the companys financial statements, the limitations of financial statements shall be equally applicable.

CHAPTER 2

METHODOLOGY DATA COLLECTION:

Information is collected from primary and secondary sources.

Primary Data:

The data has been gathered though interactions and discussions with the executive working in the division. Some important information has been gathered through couple of unstructured interviews of executive.

Secondary Data:

Referred standard text and reference books for collecting the information regarding the theoretical aspects of topic.

Annual reports and other magazines published by the company are used for collecting the required information.

COMPANY PROFILE

Core Purpose :
To help people lead healthier lives

Vision :
To become a doscovery led global pharmaceutical company

Values :

Quality Harmony and Social Responsibility Respect for the individual Collaboration and Teamwork Innovation & Continious Learning

FOUNDER OF THE COMPANY

Dr.REDDYS LABORATORIES LTD was founded by LATE Dr. Anji Reddy, an entrepreneur-scientist, in 1984. The DNA of the company is drawn from its founder and his vision to establish Indias first discovery led global pharmaceutical company. In fact, it is this spirit of entrepreneurship that has shaped the company to become what it is today.

Dr. Anji Reddy, having moved out of Standard Organics Limited, a company he had successfully co-founded, started Dr. REDDYSLABORATORIES LTD with $40,000 in cash and $120,000 in bank loan! Today, the company with revenues of Rs. 2,247 Crore (US $546 million), as of fiscal year 2006, is Indias seconds largest pharmaceutical company and the youngest among its peer group.

The company has several distinctions to its credit. Being the first pharmaceutical company from Asia Pacific (outside Japan) to be listed on the New York Stock Exchange (on April 11, 2001) is only one among them. And as always, Dr.Reddys chose to do it in the most difficult of circumstances against widespread skepticism. Dr. Reddys came up trumps not only having its stock oversubscribed but also becoming the best performing IPO that year.

Dr. Anji Reddy is well known for his passion for research and drug discovery. Dr. Reddys started its drug discovery programmer in 1993 and within three years it achieved its first breakthrough by out licensing an anti-diabetes molecules to Novo nor disk in March 1997. With this very small but significant step, the Indian industry went through a paradigm shift in its image from being known as just

copycats to innovators! Through its success, Dr.Reddys pioneered drug discovery in India. There are several such inflection points in the companys evolution from a bulk drug (API) manufacturer into a vertically integrated global pharmaceutical company today.

Today, the company manufactures and markets API (Bulk Actives), Finished Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising Drug Discovery Pipeline. When Dr.Reddys started its first big move in 1986 from manufacturing and marketing bulk actives to the domestic (Indian) market to manufacturing and exporting difficult-to-manufacture bulk actives such as Methyldopa to highly regulated overseas markets, it had to not only overcome regulatory and legal hurdles but also battle deeply entrenched mind-set issues of Indian Pharma being seen as producers of cheap and therefore low quality pharmaceuticals. Today, the Indian Pharma industry, in stark contrast, is known globally for its proven high quality-low cost advantage in delivering safe and effective pharmaceuticals. This transition, a tough and often perilous one, was made possible thanks to the pioneering efforts of companies such as Dr. Reddy, s.

Today, Dr. Reddy, s continues its journey. Leveraging on its Low Cost, High Intellect advantage. Foraying into new markets and new business. Taking on new challenges and growing stronger and more capable. Each failure and each success renewing the sense of purpose and helping the company evolve.

ABOUT Dr.REDDY,S LABORATORIES Dr.Reddy,s Laboratories Ltd is a research-driven emerging global

pharmaceutical company. The company develops, manufactures and markets wide range of products in India and overseas. Dr. Reddy,s laboratories produce finished dosage forms, active pharmaceutical ingredients, and critical care, diagnostics and biotechnology products, The basic research programmed focuses on Cancer, Diabetes, Bacterial infection and pain management. Since the companys inception in 1984, Dr. Redyy,s has chosen to walk the path of discovery and innovation in health sciences. The company has been a quest to sustain and improve the quality of life, and it had nearly two decades of creating safe pharmaceutical solutions with the ultimate purpose of making the world a healthier place. The companys research centre uses cutting-edge technology and has discovered breakthrough pharmaceutical solutions in therapeutic areas. In a short span of operations, it has filed more than 75 patents. DRL is the first Indian company to out license an NCE molecule for clinical trials. To strengthen their research arm, they have set up a research subsidiary, Reddy US Therapeutics Inc., in Atlanta, USA. The company exports API, branded formulations and generic formulations to over 60 countries. The inherent strength lies in identifying relevant API and formulations, and selling them at affordable prices across the world. A few of our API such as Norfloxacin, Ciprofloxacin and Enrofloxacin enjoy a large customer base. The finished dosages have an enviable track record. Some of them such as Nise, Omez, Enam, Stamlo, Stamlo Beta, Gaiety and Ciprolet are among the top brands in

India, and many have become households names in near-regulated countries too. The generic formulations have also become very popular in quality-conscious regulated markets such as the US and Europe. All this has been possible because of its innovative and sustained marketing efforts. The company set to spread its wings further and touch more lives across the globe. BUSINESS DIVISIONS OF DR REDDYS LABORATORIES Dr. Reddys is a vertically integrated, global pharmaceutical company with proven research capabilities and presence across the pharmaceutical value chain. We manufacture Active Pharmaceutical Ingredients and Finished Dosage forms and market them globally, with a focus on United States, Europe, India and Russia. In addition, the drug discovery arm of the company conducts basic research in the areas of diabetes, cardiovascular, inflammation and bacterial infection.

Business core areas

Dr.Reddy core businesses of Active Pharmaceutical Ingredients (API) and Branded Formulations are well established with an impressive track record of growth and profitability. Generics business of it started operations in 2001 to focus primarily on the North America and EU markets. DRL have built a robust pipeline of generic products, which will help us drive growth in the medium and long term. In addition,

The company is investing in creating businesses of the future - the innovation led businesses of Specialty and Drug Discovery. Dr. Reddys is a global pharmaceutical powerhouse committed to protecting and improving health and well-being. Their strategic business units are as follows Active Pharma Ingredients Global Generics PSAI Propritory products

RESEARCH AND DEVELOPMENT The Research and Development division, established in the late 1980s, is central to the Active Pharmaceutical Ingredients business. It contributes significantly to the business by creating intellectual property, providing research to reduce the cost of production of the products and playing an active role in the selection and development of new products. The Analytical research group supports the development activity by carrying out impurity profiling, structure elucidation and stability studies. MANUFACTURING CAPABILITIES Dr. Reddys bulk manufacturing operations are spread across 6 units in Andhra Pradesh, India, with a total manufacturing capacity of over 1950 KL. These facilities have been built and are operated in accordance with the latest regulatory guidelines on CGMP. The facilities have been inspected by the USFDA and numerous other

international regulatory agencies for all the major products. The manufacturing facilities are capable of supporting the product development effort by way of concurrent scaling-up and piloting of feasible routes as they are developed by the R&D teams. State-of-the-art equipment are instruments give them the edge to compete globally. A Central Process Engineering Lab, in tandem with R&D labs, manages issues involved in the scaling-up of products that exhibit polymorphism. Continuous cost reduction has been possible because of the proven in process research skills of technical, executives, The companys operations are fully integrated with the supply chain and ERP systems (SAP R/3), which enable seamless response to customers. Tie-ups with leading cargo handlers enable them to provide faster service to customers across the world. REGULATORY CAPABILITIES Reddys is committed to the manufacture of premium quality products in Dr Compliance with allow regulatory requirements and customer expectations. The operate in accordance with GMP requirements and the USFDA and ICH guidelines & regulations. All the manufacturing facilities are successfully inspected for several products by the USFDA and various other Agencies. They are aided by a strong Regulatory Affairs Team and support their customers with DMFs for their dosage form approvals / ANDA filings. They have filed several DMFs in US, Canada (PMFs), Europe, Turkey, Korea, CIS and many more in other parts of the world. Some of the products have also received the Certificate of Suitability (CAS) from European Pharmacopoeia

PRODUCTS Dr.Reddys bank on the strength of their products. Not only are they the results of their efforts, they are also a means of achieving the end purpose of helping people lead healthier lives Products are the only aspect of the pharmaceutical value chain, which directly touch peoples lives.

BRANDED FDORMULATIONS Branded Formulations is one of the core business units of Dr. Reddys Laboratories. They are continuously breaking new grounds with high products and innovative marketing. They are driven by one corporate purpose To help people lead healthier lives by focusing on innovation, entrepreneurs and globalization product introductions in core therapeutic areas have propelled them into one. Indias largest pharmaceutical player. Alliances and joint ventures have he them to rapidly grow on international operations. In addition to their own pipeline, they are actively seeking in licensing opportunities from potential collators and apartments globally, based on mutual-strategic, scientific and commercial merits.

BOARD OF DIRECTORS

G.V.Prasad Satish Reddy

Chairman & Chief Executive Officer Vice Chairman and Managing Director

Independent & Non Whole time Directors:

Dr.Omkar Goswani Ravi Bhwothalingam Dr.Bruce LA Carter Anupam Puri Ms. Kalpana Mortaria

Asset Corporate Awards 2012 Dr. Reddys won the Titanium Award for Corporate Governance and Investor Relations, Medical and Healthcare sector from The Asset Magazine, Hong Kong.

Quality Leadership Award Saumen Chakarborty, President, CFO and Global Head of HR and IT&BPE was conferred the Quality Leadership Award at the World Quality Congress and Awards 2012

Lifetime Achievement in Health Award 2012 for Dr. Anji Reddy Dr. Anji Reddy conferred with India Business Leader Award (IBLA) for LIfetime Achievement

Best Learning Organization Of Asia 2012 Award Conferred the second runners up award for its unique learning practices and clearly defined learning agenda at the L&OD Round table

Best Managed Boards of India award Awarded the Best Managed Boards of India by the Stars of the Industry Group, Asian Confederation of Businesses at their Corporate Excellence Awards.

'Best CFO of India award Umang Vohra, Executive Vice President and Chief Financial Officer, Dr. Reddys was awarded the Best CFO of India Award by the Stars of the Industry Group, Asian Confederation of Businesses at their Corporate Excellence Awards.

Dr Anji Reddy wins the Executive of the Year award from Biopharma Singapore 2012 for exhibiting visionary leadership, leading and communicating change, building partnerships, portraying business acumen, promoting optimal results, and outstanding commitment to disease prevention and treatment.

Award for Learning & Talent Initiative Excellence 2nd STAR News HR & Leadership Awards at World HRD Congress in Mumbai

Dr. K. Anji Reddy, Founder and Chairman of Dr. Reddy's Laboratories Ltd., has been honoured with the Lifetime Achievement in Health award in the Asian Voice Political & Public Life Awards for 2012 at London for his lifetime commitment to medical research, and improving the lives of others.
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