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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 alkaloids. Similarly, whilst GlaxoSmithKlines 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 worlds first factory for producing only medicines in 1859. 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 rocketed. 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 18461848 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 todays 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. Switzerlands 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 wasnt 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 Marxs 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. Bayer also had its Russian subsidiary seized during the Russian revolution. This disruption to Germanys 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 Flemings initial discovery of the penicillium moulds antibiotic properties in 1928, and Howard Florey and Ernst Chains 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 UKs 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, AstraZenecas 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 industrys 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 Indias 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 costbeneficial 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 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 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 & Parmas, 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-2nitro 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 antiinfective, 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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COMPANY PROFILE
Name of the Company Address of the Company : SHILPA MEDICARE PVT LTD : Plot No: 33-33A Raichur Industrial Grow, Wadloor Raod Chicksugur Cross,Hyderabad Road, Chicksugur-584170 Incorporation Date Area BOARD OF DIRECTORS : 20/11/1987 : 20 Acers : 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 BANKERS : M/S Bohra Bhandari Bung & Associate, Raichur
: 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 Phone E-mail : 91-08532-235876 : 91-08532-235006/23570 : 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 comarketing 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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SHILPA MEDICARE LTD, 100% EOU 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.

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SHILPA MEDICARE LTD, 100% EOU Product/ Service Profile:

1. Oncology products Anastrozole Bendamustin HCI Bicalutamide Bortezomib Busulfan Capecitabine Carboplatin Cisplatin Cladribine Decarbazine Docetaxel 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

2. Non-Oncology product
Abacavir Sulfate Ambroxol HCl Acebrophylline Buflomedil HCl Lamivudine Nifedipine Phenylephrine HCI Sildenafil Citrate Ranelate Terfenadine Ticlopidine HCl

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1.

Under Development-Oncology 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

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SHILPA MEDICARE LTD, 100% EOU e. Area of Operation: (Global)

o Italy o Germany o China o Japan o Australia o USA o Turkey

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SHILPA MEDICARE LTD, 100% EOU Ownership Pattern:

Shilpa Medicare Ltd is a privately owned company which is under taken by the following members: Chairman Managing Director Directors : Shri Omprakash Inani : Shri Vishnukant Bhutada : 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

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SHILPA MEDICARE LTD, 100% EOU Infrastructural Facilities:

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 2006212-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.

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Filed ASMF/EDMF of Oxaliplatin HCl over 11 EU countries. "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

Raw material

Additions

Filtration

Drying

QC Analysis

STAGE: II

Stage: I

Addition of Raw materials

Filtrations

Drying

QC Analysis

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STAGE: III

STAGE: II

Addition Raw materials

Reaction

Filtration

Drying

Milling

Shifting

Packing

Product Export

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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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MCKINSEYS 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. Lets 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.

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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. Staff: The employees and their general capabilities. Skills: The actual skills and competencies of the employees working for the company.

Fig 1: Mckinseys 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:

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To perform beyond customer expectation and to create a long term relationship with customers. To provide products and services of high quality.

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 * Skilled employees * Semi Skilled * Unskilled - 80 - 60 - 30 - 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.

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SHILPA MEDICARE LTD, 100% EOU ORGANISATION CHART

Chairman Omprakash Inani

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

Manager, R&D Purchase manager Store & excise Manager HRD Manager Accounts Manager

Q.A manger

R&D chemist

QC, QA chemist & microbiologist

Production manger

Maintenance manger

Shift in charges

Maintenanace supervisor

Chemists Filters Operators Welders Electricians

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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 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

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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: - 25C to +300C. Vacuum: < 1 mm/Hg. 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 APIS 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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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 shilpas 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.

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Skill :
Skilled: The actual skills and competencies of the employees working for the

company. Skills of the work force are technically qualified like ITIs, chemical technology (practical knowledge), Engineers or any specified courses completed. 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.

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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 :
Shared Values observed in Shilpa Medicare Pvt. Ltd., are: Discipline Unity Team work Belongingness Coordination

Concern for environment Aim for excellence in every area.

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SWOT analysis
Strengths:
Communication channels operate well, the ways and directions of the communication channels are clearly defined. 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

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Analysis of Financial statement :

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2011

Particulars

Current year (31 March, 2011)

st

Previous year (31st March, 2010)

INCOME Sales Turnover Excise Duty NET SALES Other Income TOTAL INCOME 263.37 5.82 257.54 0.00 261.30 240.67 5.43 235.24 0.00 235.44

EXPENDITURE: Manufacturing Expense Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made TOTAL EXPENDITURE 7.79 154.26 17.59 3.89 4.23 0.00 0.00 187.76 6.67 128.36 12.12 5.56 4.33 0.00 0.00 157.05

Operating Profit EBITDA Depreciation Other Write-offs EBIT

69.79 73.54 10.42 0.00 63.12

78.19 78.40 9.76 0.00 68.63

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Interest EBT Taxes 2.27 60.85 14.91 5.49 63.14 21.23

Profit and Loss for the Year Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT

45.94 4.86 0.09 0.04 50.93

41.91 3.96 0.24 -01 46.01

KEY ITEMS Preference Dividend Equity Dividend Equity Dividend (% Shares in Issue (Lakhs) EPS - Annualised (Rs) 0.00 1.92 40.00 240.24 21.20 0.00 1.54 35.00 220.24 20.89

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Balance Sheet as at 31st March 2010

Particulars Current year (31st March, 2011) Liabilities Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans T OTAL LIABILITIES 9.18 226.03 235.21 50.97 0.00 286.18 4.40 107.79 112.19 67.47 0.00 181.19 Previous year (31st March, 2010)

Assets Gross Block (-) Acc. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash And Bank Loans And Advances Total Current Assets Current Liabilities Provisions Total Current Liabilities NET CURRENT ASSETS Misc. Expenses 163.00 35.90 127.09 3.01 28.08 37.44 33.63 83.75 32.09 186.91 41.05 17.87 58.91 128.00 0.00 155.96 28.02 127.94 3.69 3.69 43.65 31.49 2.09 42.23 120.45 52.02 21.93 73.95 46.50 0.00

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TOTAL ASSETS (A+B+C+D+E) 286.18 181.19

Analysis of financial statement:

Calculation of working capital: Current asset-Current liability 2010= 2011= 119.46 45.53 = 73.93 186.91 128 = 58.91

Calculation of current ratio:

Current asset Current liability

2010= 2011=

119.46 / 73.95 = 1.6154 186.91 / 58.91 = 3.1729

Calculation of quick Ratio: Current Asset Inventory Current liability 2010= 119.46 43.65= 73.95 2011= 186.91 37.44 = 58.91 Calculation of cost benefit ratio = Profit Capital 2010= 46.01= 4.40 2011= 50.93= 9.18 39.8692 10.4569 2.5372 1.0251

Profit margin increased in the year 2011 compared to 2010.

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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 affects the companies. The project helps me to understand how a companys 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 employees 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 organizations 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

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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. 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 employeeslearn 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, departmentwide 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

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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).

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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ANALYSIS, INTERPRETATION OF RESULTS:

1. Experience in SHILPA MEDICARE PVT LTD Rating scale Less than one year One-Tow years Two-Five years Five years Total 17 18 2 13 Percentage 34 36 4 26

26%
34% Less than one year One-two years 4% Tow-five years Five years or more 36%

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 Shilpa medicare is having experience of less than two year.

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