A Report on

Piramal Healthcare

Submitted by

Tushar Gargava PGP16097

Sourabh Pareek PGP16096

Anmol Shankar PGP16122

Abinash Gupta PGP16123

Piyush Kumar PGP16126

Arun Thalapathi PGP16085

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 TABLE OF CONTENTS

1. ABOUT THE COMPANY ................................................................................................................... 4

1.1. Verticals................................................................................................................................... 4

2. PURPOSE AND VALUES ................................................................................................................... 5

3. HISTORY AND ACQUISITIONS ......................................................................................................... 6

3.1. Recent Acquisitions ................................................................................................................. 6

5. CURRENT PERFORMANCE & TAKEAWAYS ..................................................................................... 9

6. VALUE CHAIN OF THE INDUSTRY.................................................................................................. 10

6.1. Manufacturing the Medicine ................................................................................................ 10

6.1.1. Determinants of Manufacturer Price ............................................................................ 10

6.1.2. Costs Incurred by Manufacturers ................................................................................. 11

6.1.3. Value Added by Manufacturers .................................................................................... 11

6.1.4. Levels of Manufacturer Cost ......................................................................................... 12

6.2. Distribution to the Dispensing Point ..................................................................................... 12

6.2.1. Determinants of Distributor Margin ............................................................................. 12

6.2.2. Costs Incurred by Distributors .......................................................................................... 13

6.2.3. Value Added by Distributors ......................................................................................... 13

6.2.4. Levels of Distribution Margin ........................................................................................ 14

6.3. Dispensing to the Patient ...................................................................................................... 14

6.3.1. Determinants of Retailer Remuneration ...................................................................... 14

6.3.2. Competition and Purchasing Power ............................................................................. 14

6.3.3. Costs Incurred by Retailers ........................................................................................... 15

6.3.4. Value Added by Retailers .............................................................................................. 15

6.3.5. Levels of Retailer Margin .............................................................................................. 16

7. KEY SUCCESS FACTORS ................................................................................................................. 17

8. PRODUCT PORTFOLIO .................................................................................................................. 18

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9. EMPLOYEE SKILLS REQUIRED ....................................................................................................... 19

10. STRUCTURE AND CULTURE ....................................................................................................... 20

10.1. Culture............................................................................................................................... 20

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 1. ABOUT THE COMPANY
 Piramal Group >> Piramal Enterprises >> Piramal Healthcare.
 Piramal group forayed into the healthcare space in 1988 (25 years ago).
 One of the most respected and recognizable names in the industry.
 Manufacturing bases across India, UK, Scotland, USA and Canada through
subsidiaries.
 Products are available in over 100 countries. They are presently the third largest
player in the global Inhalation Anesthesia (IA) market, and the only company in the
world with a complete product portfolio of Inhalation Anesthetics drugs.
 One of the largest custom manufacturing companies in the world. The ‘UN
Conference on Trade and Development's World Investment Report 2011' ranks them
among the top 5 in the world.

1.1. Verticals

 Pharma Solutions: Contract manufacturer (generic drugs) and development

organization (research, testing etc). 2 manufacturing facilities:- Hyderabad and one
in Bethlehem, Pennsylvania USA
 Critical Care: A global leader in the field of anesthesia.
 Imaging
 Consumer Products: Self care products. (Lacto Calamine. Started with the acquisition
of
 Phytomedicines

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 2. PURPOSE AND VALUES
All the divisions of the Piramal group abide by the following purpose and values.

Purpose: Doing Well and Doing Good

 Making a positive difference

 Serving people
 Living our values

Values:
 Knowledge (Expertise/Innovation)
 Action (Entrepreneurship/Integrity)
 Care (Trusteeship/Humility)

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 3. HISTORY AND ACQUISITIONS

3.1. Recent Acquisitions

Acquired Ash Stevens Inc. USA (contract drug manufacturer) for 53mn$ in an all cash
deal.

Acquired four brands from Pfizer for 110 crore. These four brands
include Ferradol, Neko, Sloan's and Waterbury's compound (Sep 16)

1947
The Company was incorporated on 26th April, under the name of Indian Schering,
Ltd., U.K. as a subsidiary of British Schering, Ltd.

1979
Nicholas of India, Ltd. transferred to the Company the business and undertaking of
its Indian branch as a going concern with effect from 1st July. The name of the
Company was changed from Indian Schering, Ltd. to Nicholas Laboratories India, Ltd.,
with effect from 27th September.

1988
The Pharmaceutical division of the Company introduced another medicine called
`Mono Sorbitrate' for cardiac patients.

1990
With effect from 1st April, Gujarat Glass Ltd. (GGL) was merged with the Company.
As per the terms of the scheme 16,50,000 No. of equity shares of Rs 10 each of the
Company were allotted to the equity shareholders of GGL without payment in cash
in the ratio of one equity share of the Company for every two shares held in GGL.

1991
During the year, the new formulation plant at Pithampur in Madhya Pradesh was
commissioned.

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1992
The Company was setting up a second formulation plant at Pithampur in Madhya
Pradesh with the State-of-the-art manufacturing facilities. The plant was
commissioned in March.

With effect from 2nd December, the name of the Company was changed from
`Nicholas Laboratories, Ltd.' to `Nicholas Piramal India, Ltd.'

1993
The Company entered into a joint venture agreement with Allergan of U.S.A., the
leading manufacturers of Ophthalmic products.

1995
The Company has entered into a product tie-up with F. Hoffman-La-Roche and
Boehringer Mannheim, both leads in Pharma research.

2000
The Company acquired a 40 per cent stake in Rhone-Poulenc India Ltd - which makes
it the second largest pharmaceutical group in India.
The Company has entered into a strategic alliance with MDIndia Healhtcare Services
Pvt. Ltd. where NPIL will sponsor five Internet hub centres (IHCs).
Nicholas Piramal India and the Reckitt Benckinser group are planning to alter the
nature of their joint venture, Reckitt Piramal.

2002
ICI India transfers pharmaceuticals business to Nicholas Piramal.
Nicholas Piramal India Ltd's (NPIL) Wellquest, the independent clinical research
division becomes the first Indian CRO (Clinical Research Organization) to receive the
Statement of GCP (Good Clinical Practices) Compliances from the UK MHRA
(Medicines & Healthcare Products Regulatory Agency), for clinical studies carried out
to support the registration of generics products in the international regulated

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 markets.
Nicholas Piramal - Acquisition of Pfizer’s Morpeth UK facility

2008
Company name has been changed from Nicholas Piramal India Ltd to Piramal
Healthcare Ltd.

2010
Piramal Health - Piramal Healthcare Limited Acquires "i-pill", India's No 1 emergency.
Piramal Healthcare has purchased Cipla's i-pill - an oral contraceptive brand, for Rs.
95 crore.
Abbott-Piramal deal done for $3.72 billion

2011
Piramal Healthcare has entered into an agreement with telecom major Vodafone
Essar to acquire 5.5 percent stake in the equity share capital of Vodafone Essar
Limited

2014
Piramal forms JV with Navin Fluorine to develop applications in healthcare -Piramal
Enterprises clarifies on buzz over selling diagnostic solution business -APG and
Piramal Enterprises Limited Announce Strategic Investment Alliance.

Further reading: http://economictimes.indiatimes.com/piramal-enterprises-

ltd/infocompanyhistory/companyid-13332.cms

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 5. CURRENT PERFORMANCE & TAKEAWAYS

Piramal Healthcare accounted for nearly 54% of the total revenues of Piramal
Enterprises which stood at 6610 Cr in the financial year 15-16.
Further Breakup:

1. Pharma Solutions:
 Revenues: 2290 Cr
 18% 5- year Revenue CAGR
 10 manufacturing facilities across the eastern and western parts of the world
 Serve most of the top 7 global pharma companies
 World’s leader in Antibody Drug Conjugates (ADCs)
 Growing faster-than-market over years

2. Critical Care
 Revenues: 896 Cr
 18% is 5- year Revenue CAGR
 Among top three players in Inhalation Anaesthesia segment globally
 Only global company with all four generations of inhalation anaesthetic
products
 Rapidly grew its global market share from 3% in FY2009 to 12% currently
 Presence in 118 countries, including a strong presence across major markets
such as US, Europe and Japan
 State-of-the-art manufacturing facilities located in the US and India, in
adherence to global standards
3. Consumer Products OTC:
 Revenues : 393 Cr
 18% 7- year Revenue CAGR
 Strong brand portfolio - include key brands such as Saridon, i-pill and Lacto
Calamine
 In India’s OTC market, the business has moved up from the 40th position in
2007 to 7th position currently
JV with Allergan is the India leader in ophthalmology

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 6. VALUE CHAIN OF THE INDUSTRY

The value chain of an industry can be listed as the set of activities that add value to the product
being delivered to the consumer. In this case, pharmaceutical industries, the value chain can be
narrowed down to three key activities:

1. Manufacturing of the medicine

2. Distribution to the dispensing point
3. Dispensing to the end user

In the following sub-sections will be a detailed explanation of each of these points as the value
chain is explored. Starting from the phase of initial research and development for manufacturing a
medicine to providing the correct medicine dosage and form to the right patient, all the activities will
be elaborated.

6.1. Manufacturing the Medicine

This process is divided in two major forms. The manufacturing of raw ingredients used in the
medicines, and the manufacturing of the finished products which is sold to the consumers.

The major points worth observing in manufacturing of medicines are:

6.1.1. Determinants of Manufacturer Price

Unlike prices for other products, medicine prices are set by pricing policies which are unique
to each country. For example, in Russia the maximum ex-manufacturer price for drugs on the essential
drugs list is based on product type and whether the product is manufactured in Russia. In contrast, in
Brazil, trade and end user prices are regulated and the price at which the pharmacy purchases
medicine (plus VAT) must not exceed this regulated trade price, leaving wholesalers to negotiate their
discounts with the manufacturers.

The official (regulated) or negotiated price however, is not always the price that the
manufacturer receives. There are a number of factors which impact the level of a manufacturer’s net
price. One of the largest is trade discounts which are offered by manufacturers to wholesalers or
pharmacies and are negotiated in business to business transactions. These discounts vary in size
depending on the purchasing power of the buyer and level of competition, but as a general rule of
thumb generic manufacturers often offer much larger discounts in order to secure volume share. For

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example in Brazil generic manufacturers may offer discounts of over 50% from list prices, while
originators may offer discounts in the range of 10-15%.

6.1.2. Costs Incurred by Manufacturers

For originators, the first and most expensive step of bringing a new medicine to market is the
drug discovery phase, which identifies new chemical or biologic entities that have the potential to
advance the current standard of disease treatment.

Following the discovery phase, potential candidates are subject to rigorous testing through
clinical trials, which many will fail to complete. Those that achieve their desired endpoints are then
subject to a regulatory phase, whereby clinical trial results and details of the manufacturing process
are submitted to regulatory agencies to evaluate the safety and effectiveness of medicines, before
they receive approval to be launched on the market. In total, this development phase can last up to
13 years and is becoming more difficult as the diseases that are being targeted are becoming
increasingly complex and therefore require even greater investments. It is difficult to put an exact
figure on the cost involved in bringing a medicine to market, as this will differ between the type of
drug, level of innovation and magnitude of risk involved.

Once a new medicine is available on the market there is then a cost involved in order to
promote and educate key stakeholders about the product and the benefits it can bring to patients.

In contrast, generic manufacturers normally have relatively low development and

manufacturing costs. Their main means of promotion is through trade incentives, offering larger
discounts to secure volume sales.

6.1.3. Value Added by Manufacturers

The value added from the generation of new medicine is first and foremost that which directly
relates to patient treatment. Such advances may tackle a new disease or indication, improve health
outcomes, treatment safety, tolerability and/or side effects and the ability to better treat specific
patient sub-populations. In addition, there are wider benefits to the health system such as decreasing
the burden on other health resources and overall societal benefits such as enabling people to return
to work.

Although the main cost involved in drug discovery is R&D, the value added is not only the
medicine produced. On top of this, there is scientific knowledge and technological advancements
which have the potential to diffuse to and advance other areas of industry. In addition, the
promotional and educational efforts made on the ground can help those working directly with patients
to ensure the most appropriate, effective and highest quality standard of care is offered.

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 The value added from generic manufacturers is that of introducing competition into the
market, which in an efficient market can help payers achieve savings on older treatments in order to
invest in new ones or offer lower cost alternatives to patients in out-of-pocket markets.

6.1.4. Levels of Manufacturer Cost

Manufacturer costs relative to end user price vary widely across the countries studied, and
range from 24% in Kenya, to over 64% in the Netherlands. At an individual therapy class level, the
range was also significant in certain countries. For example, in Brazil the average for antibiotics was
31% of end user price, but 42% for respiratory drugs, while the Netherlands saw the widest variation
with 38% for antibiotics and 78% for respiratory. There can also be differences in total therapy drug
costs based on the mix of different types of drugs which have different costs relative to end user price.
For example, in South Africa manufacturer selling price for generics typically average 52%, versus 63%
for protected branded products and 57% for unprotected branded products.

6.2. Distribution to the Dispensing Point

The distribution of medicines in most markets is carried out by importers and wholesalers,
which act as a link between manufacturers and retailers to ensure the continuous supply of medicine,
regardless of the geographical location and portfolio of medicine required. For those medicines which
are imported, there is often an additional step from the importer who organizes the logistics of
bringing the medicine into the country which are then transferred to the wholesaler for domestic
distribution. In some cases the two entities are vertically integrated, decreasing the number of steps
in the distribution stage of the value chain. In others scenarios, particularly when supplying to rural
regions, wholesalers may engage sub-wholesalers, thereby increasing the distribution complexity.

6.2.1. Determinants of Distributor Margin

Distributors are traditionally paid on a regulated margin basis set as a fixed percentage of the
price. In some countries, this has become a regressive margin with a lower percentage applied for
more expensive packs. In markets with regulated margins, discounts from the manufacturer might
also exist; in other countries and for some categories of products, discounts may not be allowed.

Generally, discounts are given when the wholesalers can influence which manufacturer’s
product is sold, meaning that they are more common on products without patent protection (no
longer protected originals or generics). Some countries have moved to a “fee-for-service model” in
which the margin for the wholesaler is negotiated between the distributor and the manufacturer.

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 6.2.2. Costs Incurred by Distributors

Pharmaceutical distribution needs to meet the logistical challenge of serving a large number
of pharmacies with products sourced from many manufacturers and often in a short period of time.
At the same time regulation may require a certain level of distribution standards to ensure that
medicines are handled according to Good Distribution Practice.

The distributor invests in inventory to be able to service its customers. The distributor might
typically be holding one to two months’ worth of inventory and the cost to carry inventory includes
warehousing cost, capital cost, and obsolescence. The working capital, both for the inventory held and
supply stock to pharmacies is done on a credit cycle which can range from 28 days in the Netherlands
to 120-150 days in Kenya (90 days to get paid by the retailer and two months of stock holding). For
the wholesaler this results in additional costs from interest and the risk that pharmacy repayment may
be delayed or in a worst case scenario, default on their obligations. Furthermore, in countries such as
Kenya, the importer is unlikely to pay for goods with domestic currency and will be impacted by the
financial cost of acquiring foreign currency and any fluctuations in exchange rate when purchasing
medicines from manufacturers.

Depending on what scripts pharmacies receive, they can place orders with wholesalers up to
three times a day. Ordering can be done over the phone or electronically depending on the
sophistication of the infrastructure within the country. Selecting the products under order can be
manual or highly automated and may also require a quality assurance step. The cost of delivery is
highly dependent on the frequency and volume of medicine delivered. The more often a wholesaler
is required to make trips to a retailer, the higher the cost for the wholesaler.

6.2.3. Value Added by Distributors

The key function of wholesaler is to resolve the challenge of being able to meet varied and
un-predictable patient needs, by supplying medicines from manufacturers, without requiring the
retailer to hold large inventories on-site. A second major function (and cost) is to provide the necessary
working capital for pharmacies to allow them to purchase the required drugs, before receiving end
user payment. Finally, in some markets wholesalers provide a broad set of commercial support to
independent pharmacies to improve the operation of the business, such as category management
(retail initiatives to help grow the pharmacies business), sales training, accounting and continuing
education for pharmacies.

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 6.2.4. Levels of Distribution Margin
Across countries the total distribution margin can vary from 2% of the end user price in the
Netherlands to 22% in Kenya. There may however, be a need for these types of differences. For
example longer payment cycles for pharmacies in Kenya and a greater reliance on labor force versus
wholesalers in the Netherlands means that operating and labor costs are likely to be substantially
higher. For example, Kenyan wholesalers will run call centers to deal with pharmacy orders, while in
the Netherlands much of this is automated.

In India, under the Drugs Price Control Order 2013, both the wholesaler and retailer margins
are differentially regulated based on essential drug classification, with maximum margin for
distributors at 8% for scheduled drugs and 10% for non-scheduled drugs. In Russia, distributor margins
are regulated for products on the essential medicine list and differ according to the geographic
location in which the medicine is purchased, as regional authorities are required to calculate maximum
mark-up for both wholesalers (and retailers) for products on the essential drugs list.

6.3. Dispensing to the Patient

6.3.1. Determinants of Retailer Remuneration

Retailer remuneration is determined by two key factors. Firstly the level of discounts
negotiated from the wholesaler, which determines the acquisition cost of the medicine. Secondly, the
margin made on the acquisition cost of the medicine paid by the end user.

Mark-up/margin can be set by free pricing, a regulated fixed percentage of the acquisition
cost and/ or a regulated fixed dispensing fee. The most common method of regulation used in the
markets studied was the percentage mark-up/margin model. South Africa uses a mixture of a fixed
and percentage variable component, while the Netherlands is the only country where remuneration
is a fixed fee per prescription (regardless of the number of packs dispensed).

6.3.2. Competition and Purchasing Power

Retail dispensing fees in many of the markets analyzed - Brazil, India, Russia and South Africa
are capped to help regulate the end-consumer price. However, to differentiate themselves from
competition, pharmacies may charge below this maximum either by foregoing or reducing the
dispensing fee (South Africa) or passing on discounts acquired from the wholesaler to the patient
(Brazil). This means that the prices of drugs are often well below the official regulated end user price.
However, the ability to discount varies between types of pharmacies. Those which are able to
negotiate high discounts from wholesalers – normally the large chains- are subsequently able to offer

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cheaper prices to patients than smaller independent pharmacies which are unable to run on smaller
margins. This means that there is potential for variations in the end user price as demonstrated in the
Kenyan market.

In some markets, retailers make a loss from selling prescription medicine, profit is instead
generated from additional over-the-counter and health and beauty sales. An alternative business
model finds other retailers which are very much focused on prescription drug dispensing to drive their
business profitability.

6.3.3. Costs Incurred by Retailers

Retailer costs can be split into those which are fixed and those which vary depending on the
level of business. Fixed costs include the cost of labour (pharmacist, etc), facilities, equipment
(including information technology), utilities and insurance. Variable costs include product acquisition
cost and the volume being purchased; medicine wastage resulting from expiry or damage; and the
capital cost of inventory. The costs of running a retailer in a rural location compared to an urban area
can be quite different. The size of a retailer in a rural location is often much smaller, clientele is scarcer
and often poorer, both of which reduce the opportunity to recover fixed costs

6.3.4. Value Added by Retailers

One fundamental role of a retail pharmacist is that of logistics: being able to dispense the right
drug, to the right time at the correct dosage. This in itself is an over-simplification as this task also
entails correcting prescribing errors, processing the prescription, labelling etc. and advising and
educating patients on the safe use of prescribed drug, contraindications, interactions and side effects.
For example, some pharmacists in the Netherlands suggest that 15% of prescriptions require an
intervention from the pharmacist, e.g. adjusting dose to patient weight, change of label due to
preference etc.

In recent years, medicine shortages have become a global issue.8,9 Even in a market known to
be one of the most efficient in Europe, reports from the Netherlands indicate that 3-5% of drugs are
un-available at the time they are ordered. The impact of medicine shortages can range from patient
inconvenience to adverse health outcomes and generally requires patients to switch medication. To
mitigate the impact of medicine shortages on patients, pharmacists dedicate a substantial amount of
time either sourcing drugs or finding alternatives.

As retailer business models evolve, additional services are becoming more common and the
role of a pharmacist is no longer just about medicine provision, but the provision of services which
help maintain patient health.12 These can include training on the administration of medications

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including inhalation and injectables, blood pressure testing and measurement of blood glucose and
triglyceride levels, education on disease management through non-medical means such as nutrition
and other lifestyle factors, and improving patient adherence through education and patient
monitoring.

Such initiatives have the potential to improve patient health outcomes and reduce health
service utilization, which can ultimately reduce the burden on the overall health system.12

6.3.5. Levels of Retailer Margin

The average level of retailer margin ranges from 15% of end user price in India and 50% in
Kenya. The magnitude of retailer margin can also differ between therapy area and product types
depending in part on the level of regulation or negotiation that retailers have with wholesalers and
manufacturers.

For example, in Brazil in 2012, wholesalers on average provide discounts to pharmacies of

approximately 60.4% of the regulated trade price for generics, 30.3% for branded originals, and 16.2%
for off-patent branded originals. Similarly in the Netherlands, the implementation of a fixed dispensing
fee means that in areas where there are largely patented protected brands, these more expensive
medicines make up a smaller proportion of the total price build-up, compared to their lower cost
generic counterparts.

In South Africa, where there is a combination of chain and independent pharmacies,

differences in the price build–up can vary drastically. While there is a maximum margin in place, for
larger chains a lower price can be offered to patients without negatively impacting business viability.15
Furthermore, while trade discounts are prohibited in South Africa, logistics providers pay fees to the
pharmacy under the guise of ‘marketing fees’ and ‘data fees’ which act as incentives to purchase from
certain logistics providers, or to stock certain manufacturers’ products as priority. The Department of
Health is currently proposing to ban such practices, as well as reviewing retailer dispensing fees to
help adjust for the loss retailers receive from such practices.

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 7. KEY SUCCESS FACTORS

There is a lot riding on Piramal’s brand name. Some of the points are listed below:

 A clearly defined target of $20 billion by 2020 at 20% annual growth rate. Ajay Piramal,
founder of Piramal Group, loves to keep things clear, as suggested by his many interviews.
 They merge and dissolve unhesitatingly. In 2010, they sold off the group’s domestic
formulations business to Abbott because (quoting Ajay Piramal) “I realised that we would
have to grow our business at 20 per cent year-on-year with an operating margin of 35 per
cent for the next 20 years to break even. We realised we could not grow at that rate on such
a high base.”
 On the back of acquisitions, the company is the third-largest player globally in inhalation
anaesthesia market and is the seventh largest player in the over-the-counter wellness
products. The pharmaceutical division of the group seeks to partner with big pharmaceutical
companies and do custom manufacturing for them rather than compete with them in the
generics space. Headed by Vijay Shah, the pharmaceutical business generates Rs 1,700 crore
in sales.
 Information technology is going to be another growth engine for the group as Piramal
believes data will be the oil of the 21st century. With that objective, the group acquired US-
based information systems management company Decision Resources Group in 2012 for
$635 million. All their businesses are those that will be big in the future (over-the-counter-
medicines, imaging business and the information management business).
 Unparalleled global footprint and aggressive acquisitions set the pharmaceutical company
apart.

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 8. PRODUCT PORTFOLIO

The products that are in the leadership position are:

 Saridon: Largest in oral analgesic. Recognized as “Super Brand”

 i-pill: 2nd largest in emergency contraceptive

 Caladryl: Largest in anti-allergy and anti-itch topical application segment

 Lacto: No. 1 among calamine lotions

 Polycrol: Largest antacid in East India

 Tetmosol: Largest in medicated soaps for scabies

 Jungle Magic: Leading brands for kids

 Quikkool: Respected brand in Mouth Ulcer

 Throatsil: Sore throat pain relief product

 Acquired Little’s- a baby care brand for babies in the 0-4 age group

 Acquired brands in Gastro-Intestinal

 Allergan India, a JV with Allergan - India leader in ophthalmology

 Focused on launching innovative products for children

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 9. EMPLOYEE SKILLS REQUIRED

Skills essential for managers in pharmaceutical industry:

1. Ability to work in a team in a product development setting.

2. Team Building
3. Risk analysis and decision making
4. Explore group dynamics
5. Communication skills
6. Presentation skills
7. Comprehensive understanding of the regulations and the industry
8. Ability to resolve conflicts and provide constructive feedback
9. Delegation techniques and time management skills
Basically every skill a management student is supposed to have.

http://www.streetdirectory.com/travel_guide/192774/careers_and_job_hunting/skills_demanded_i
n_the_bio_techpharmaceutical_industry.html

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 10. STRUCTURE AND CULTURE

10.1. Culture

At Piramal, they derive strength from their values – knowledge, action and care. These values
drive their overall organization’s purpose of doing well and doing good which forms a core of their
people practices across the group.

The group’s culture is defined by their sub values and every existing and prospective employee
is encouraged to live these values at each stage of their life with them.

The culture allows one to innovate, learn, share and grow and at the same time, be aware of
the stakeholders, internal and external, and protect their interests. The values are imbibed in their
processes and people feel it right from the time they decide to work with them. With people of
nationalities working with them in countries across the globe, diversity in thoughts is lived by and
encouraged across the group. From cross boundary workgroups to special assignments in a different
region, they encourage employees to gain multiple perspectives as they move up in their careers with
them.

They believe that an employee is the most important stakeholder and therefore by living their
value of care, they ensure that a prospective employee gets inducted and engaged right at the stage
of accepting the offer. This also ensures that the transition to their system is seamless and the person
feels welcomed and at home even before s/he joins the organization.

Living the value of integrity and trusteeship, their performance management system is
designed to encourage high performance across the functions and businesses. They have incorporated
best practices like coaching people, designing their development plans right in the beginning of the
year and rewarding employees through their performance linked programs like Total Value Added
(TVA). The process aims to balance transparency and fairness thereby rewarding performance and
potential at all levels.

The inhouse learning university offers range of course for employee development right
through the year. Their all-round performance discussion and the strong feedback mechanism
provides valuable inputs in designing such programs. Each program is measured for its effectiveness
in driving specific business priority and enhancing individual performance. Employees enroll with the
university in the quest to develop their leadership capabilities and thereby live their value of

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Entrepreneurship and Expertise. High performing individuals are given opportunities to pursue their
higher studies and brighten their career path within the organization.

Humility is lived and practiced at each level as they consciously listen and act upon the views
and suggestions of the employees. Bandhan – their employee engagement survey is an anonymous
tool to reach out to the employees and seek their insights on making the group a good place to work.
Over the last seven years, the initiative has become a way of life for them and their year on year top
quartile scores are a testimony to this.

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