Background

Square Pharmaceuticals Ltd. (SPL), the pharmaceutical giant in the country, is a trusted name
in the industry of manufacturing quality medicines for more than four decade.
SQUARE today symbolizes a name a state of mind. From the inception in 1958, it has today
burgeoned

into

one

of

the

top

line

conglomerates

in

Bangladesh.

SQUARE Pharmaceuticals Ltd., the flagship company, is holding the strong leadership
position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to
becoming a high performance global player.
SPL was

FIRST to manufacture and market Metronidazole, Ampicillin and Cotrimoxazole after the
expiry of patents.
FIRST to export antibiotics and other ethical drugs overseas.
FIRST to develop sustained release technology locally.
FIRST to achieve an all time industry high record sales turnover of US$ 25 million.
FIRST to locally produce high tech Metered dose Inhalation (MDI) formulations.
FIRST to locally produce diclofenac sodium in the chemical division.
In addition to these FIRSTs, SQUARE Pharmaceuticals Limited (SPL) was always ahead in
introducing new products in the market.

1.1

Profile of Square Pharmaceuticals Ltd.

Corporate Headquarters

SQUARE CENTRE

48, Mohakhali Commercial Area

Dhaka 1212, Bangladesh
Factory

Shalgaria, PabnaTown, Pabna

Established

1958

Constitution

Public Limited Company

Chairman

Mr. Samson H. Chowdhury

Managing Director

Mr. Tapan Chowdhury

Details of Business

Pharmaceutical Products/ Bulk Chemicals/ AgroVet

Products
Authorized Capital

Tk. 1000 million

Paid-up Capital

Tk. 496.8 million

No. of Employees

2703

ProductRange

Pharma

Chemical Division

7 products

91 products in 185 dosage forms

AgroVet Division 7 products

Name of the Banker

Janata Bank, 1, Dilkusha, Dhaka

CitiBank N.A., 122-124, Motijheel, Dhaka

Standard Chartered Bank, 18-20, Motijheel, Dhaka
Credit Agricole Indosuez, 47, Motijheel, Dhaka
Bank Asia Ltd., 113-116,Tejgaon, Dhaka
Manufacturing Units

1. Pharmaceutical Division

2. AgroVet Division
3. Chemical Division
Square Pharmaceuticals Ltd. (SPL), the pharmaceutical giant in the country, is a trusted name
in the industry of manufacturing quality medicines for more than four decade.
With a capital of Tk. 55,000, a floor space of 3000 sft, and a team of 12 persons, SPL made its
humble debut as a partnership firm in 1958.
Within a span of only six years, under the farsighted vision of the management, and the
dedicated efforts of the company, its turnover reached the mark of Taka one million. With the
growth of turnover came the increase in number of employees, which in 1964stood to 50. At
this point of time the partnership firm was transformed into Private Limited Company. In 1964,
PLs Authorized Capital was Tk. 5,00,000 and the Paid up Capital was 4,00,000.
During the mid-seventies (1975) SPL entered into a technical collaboration agreement with
Janssen Pharmaceuticals, Belgium, which is a subsidiary of Johnson and Johnson
International, USA. Since its inception SPL practices Good Manufacturing Practices (GMP), as
recommended by the World Health Organization (WHO).
Another technical collaboration came under way, this time with F Hoffmann-La Roche Ltd.,
Switzerland, in 1982. But the fruits of this agreement could not be reaped on the account of
the Drug Ordinance of 1982. Nevertheless, SPLs growth was not being stunted. In 1982,
turnover reached over Tk. 240 million, and the payroll increased 400 heads, and by 1988
SPLs turnover exceeded half a billion taka., and the number of employees to 750.
A new factory built in 1987, with all the modern machinery, extensive development of the
domestic market, and infiltration into foreign ones like UK and Singapore. Led to this
phenomenal growth SPL is the first company in the country ever to export pharmaceuticals
finished goods abroad. At present SPL is exporting its products to Nepal, Myanmar, Pakistan,
Sri-Lanka, Combodia, and Russia.
With its finished goods already dominating markets at home and abroad, SPL started
production of pharmaceutical raw materials groom its new unit, christened as Square

Chemical Division, in 1995. The items in production under this unit are Diclofennac Sodium,
Amoxycillin, Cloxacillin and Paracetamol.
To sustain the changing environment SPL made convert itself into Public Limited Company in
1991. With a brilliant track record SPL became the first company in Bangladesh to cross the
Billion Taka mark turnover in 1992. In 1994 SPL got its share listed in the Dhaka and
Chittagong Stock Exchanges. Authorized Capital towered to billion taka and paid up capital by
now is taka 250 million. Presently Square is family of 1321 members.
In 1996 an agreement was signed with M/s Tanvec, UK for the establishment of the second
formulation unit (Pharma II) at Kaliakoir, Gazipur. This factory, which built with a view to get
the approval of USFDA/MCA, is completed in the year 2000, and without doubt, help SPL
continue to command its leadership through the next millennium as well.

1.2

Chronology since inception

Year
1958 :
1964 :
1974 :
1982 :
1985 :
1987 :
1991 :
1994 :
1995 :
1997 :
1998 :

Events
Debut of Square Pharma as a Partnership Firm.
Converted into a Private Limited Company.
Technical Collaboration with Janssen Pharmaceutica, Belgium, a subsidiary of Johnson and Johnson
International, USA.
Licensing Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland.
Achieved first position in the Pharmaceutical Market of Bangladesh among all national and multinational
companies.
Pioneer in pharmaceutical export from Bangladesh.
Converted in to a Public Limited Company
Initial Public Offering of Square Pharmaceutical Shares.
Chemical Division of Square Pharmaceuticals Ltd. starts production of pharmaceutical bulk products (API).
Won the National Export trophy for exporting pharmaceuticals.
Agro-chemicals & Veterinary Products Division of Square Pharma starts its operation.

2001 :

US FDA/UK MCA standard new Pharmaceutical factory goes into operation built under the supervision of
Bovis Lend Lease, UK.

2004 :

Signing of agreement with ROVIPHARM, Vietnam to manufacture and market SQUARE products under
license in Vietnam.
Secured the top position for the best published accounts and report for 2003 in the manufacturing category
for transparency and excellence in corporate reporting.

2005

New State-of- the-Art Square Cephlosporins Ltd. goes into operation; built under the supervision of
TELSTAR S.A. of Spain as per US FDA/ UK MHRA requirements.

1.3

Global Operations of SPL

SQUARE has extended its range of services towards the highway of global market. It
pioneered exports of medicines from Bangladesh in 1987. Through its extended marketing
operations, SQUARE is now selling its finished goods in many countries of Asia and Europe

including:
Cambodia
Myanmar
Nepal
Pakistan
o
Russia
o
Sri Lanka
o
Ukraine
o
Yemen

In addition, registration of many of SQUAREs finished goods in other countries of Asia, Europe,
and Africa is now under process.

1.3.1

Partnership and agreement with different world players

1974

: Technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of

Johnson &
1982

Johnson International, USA

: Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland

1999

: Agreement with Bayer AG, Germany

1999

: Agreement with Eisai Co. Ltd., Japan

1999

: Technical know-how transfer to foreign pharmaceutical company

2000

: Establishment of Square Spinnings Limited.

2001

: Operation of new factory with a view to get USFDA/MCA approval and production

support for

expanding export operations.

2002

: Establishment of Square Fashions Limited and Square Knit fabrics Limited.

2003

: Turnover crosses Four Billion Taka mark.

Overview of Square Pharmaceuticals Ltd.

Chapter
2

2.1

Manufacturing Facilities

SQUARE is committed to ensure strict compliance with CGMP norms and regulatory
requirements in every phase of manufacturing, quality assurance, and distribution of medicines.

To comply with CGMP SQUARE has state-of-the-art technology in production and quality control.
In addition, USFDA/MCA standard new plant is now at the completion stage.
Documented Quality Management System (QMS) is integral part of all of SPL operations. People
at all levels are committed to adopt advanced technology for continuous development. Being
confident with the sophisticated manufacturing and quality assurance technology of SQUARE,
multinationals from industrialized countries now have agreements with Square for having their
products manufactured in Bangladesh.

2.2

Product Mix

SQUARE has latest technologies for production of a wide varieties of dosage forms including
Tablet, Sustained Release formulation, Capsule, Metered Dose Inhaler (MDI), Injectable, Syrup
(liquid and dry), Suspension (liquid and dry), Pediatric Drops, Nasal & Ophthalmic formulations,
Topical Gel/Ointment/Cream, and oral care formulations.
Current product mix of Square Pharmaceuticals Ltd. comprised of products from the following

types of Drug Delivery Systems:

Tablets
o
Non-coated (Vaginal, Dispersible, Chewable, Plain)
o
Coated (Sugar coated, Film coated, Enteric coated)
o
Sustained released (coated/non-coated)
o
Capsules
o
Injectables

Vials containing dry powder for injections

Small volume parenterals

Liquids

Oral (suspension, syrup, drops, and stomatologicals)

Topical solutions

Nasal drops

Dry powders

Oral (for reconstitution to make suspension, syrup and drops)

Topical

Semisolids (creams, ointments and gels)

Solid suppository formulations

Metered Dose Inhalers (MDIs)

Dry Powder Inhalers (DPIs)

Sterile Ophthalmic Formulations (drops)

Therapeutic Range (Formulation)
Analgesics/AntipyreticsAnthelmintics

Antiallergics

AntiviralsBone resorption preparations

Dermatologicals

Antidepressants

Enzymes

Antidiabetics

Expectorants/Antitussives

Antidiarrheals

Hematinics

Antiemetics/Gastroprokinetics

Lipid modifiers/Antiobesity

Antifungal Systemic

Nootropics

Antigout

NSAIDs

Antihistaminics

Ophthalmic preparations

Antihypertensive / Antianginal

Sedatives/Tranquilizers/Muscle Relaxants

Antiinfectives/Antibacterial

Bronchodilators/Antiasthmatic

Antimalarial

Vitamin and mineral preparations

Antiprotozoals

Androgen suppressants

Antiseptics/Disinfectants

Anti-migraine

Antispasmodics

Laxatives

Antiulcerants

Neurological

2.3

Quality

SQUARE is committed to ensure better life through quality medicine. SPL has defined its Quality
Policy to fulfill this commitment. To achieve and maintain a steady quality, a range of
sophisticated state-of-the-art technology is engaged in operation. SQUARE has adopted the
latest quality philosophy by organizing a well-equipped Quality Assurance Department in the
plant in addition to Quality Control Department. Above all highly qualified, well-trained,
experienced and dedicated professionals are most valuable assets of Square Pharmaceuticals
Ltd.

2.4

Research and Development

SPLs Research and Development is devoted to improve the health care facility of people. Square
Pharmaceuticals Ltd. has brought in advanced technology for its Research and Development
works. Research & Development includes the bibliographic search aided by a resourceful library,
design and selection of process that maximizes efficiency and minimizes the environmental
impact, accelerated and long term stability testing, product quality optimization and translation of
new scientific insights into the products. R&D Department is also devoted to extensive research
and development work in synthesizing bulk chemicals for Chemicals Division. Having started as
an importer of technology, R&D Dept. from 1999 has started to export technology to SQUAREs
global customers. To support Research and Development work latest Information Technology (IT)

is available with us and SQUARE is now fully prepared to meet the challenge of twenty-first
century.

2.5

Chemicals Division for Bulk Drug Manufacturing

In 1995, SQUARE has established a separate division for the manufacturing of bulk drugs.
Currently this division is producing the following bulk chemicals for the domestic pharmaceutical
companies:
Paracetamol BP/USP
Diclofenac sodium BP
Diclofenac free acid INN
Diclofenac diethylamine
Diclofenac potassium INN

Flucloxacillin sodium BP
Amoxicillin trihydrate BP/USP (compacted and micronized)
Cloxacillin sodium BP/USP (compacted and micronized)
Ampicillin trihydrate BP/USP (compacted and micronized)
Cephalexin monohydrate BP/USP (compacted and micronized)

2.6

Distribution Network

SQUARE is committed to ensure better life through quality medicine. The ultimate motto is to
ensure customer satisfaction by exceeding their level of expectations. SPL has 14 Sales and
Distribution offices in the following places in Bangladesh:

Depot
Dhaka

Address
355-356, Tejgaon Industrial Area, Dhaka-1208.

Phone
(880-2)
8828775

Pabna

Hospital Road, Salgaria, Pabna.

(880-731)
66580

Bogra

877/A, MS Road, Bakshi Bazar, Malati Nagar, Bogra

(880-051)
64747

Rangpur

House # 36, Road # 2, R K Road, Islambag ,

Rangpur.

(880-0521)
63588

Khulna

Alhamdulillah, 25 Usufe Road, Mirzapur, Khulna-9100

(880-041)
732330,

724654
Barisal

502/532 South Alekanda, 1 No. C & B Pool, C & B

Road, Barisal.

(880-0531)
53661, 56778

Comilla

400/363, Shishu Mangol Road, Kandirper Comilla.

(880-081)
72320

Mymensingh

5/A/04 & 5/A/05, Shaheb Quarter, Kachijuli,

Mymensingh

(880-091)
55143

Chittagong

House No-1/C, Baijid Bostami Road, East Nasirabad,

Chittagong-4000.

(880-031)
654423

Maizdee

234/B, Hospital Road, Maizdee Court, Noakhali.

(880-0321)
61683

Sylhet

Sabina Mohal, 44, Payra, Darshandewry, Dorga

Mohalla, Sylhet.

(880-0821)
725298

Tangail

Biswas Betka, Dhaka Road, Tangail

(880-0921) 53488

Rajshahi

106, Ambagan, Senanibas Sarak, Rajshahi

(880-0721) 760877

Faridpur

Mission Road, Christian Mission, Police Line,

Faridpur

(880- 0631) 63561

The extensive marketing network comprising of latest technical and logistic support along with
887 skilled and qualified field staffs is a key to succeed in achieving customer satisfaction level
beyond their expectation. The modern warehousing and completely computerized invoicing
facilities of SQUARE ensures just-in-time delivery and high customers satisfaction.
Resources
Total Distribution personnel :

Central Depot :

Depot :

887
Permanent :

420

Casual :

467

01

14

Vehicles :

2.7

212

New Plant of SPL

SQUARE is now on its way to becoming a high performance global company. To this end
SQUARE has built a new plant that went into operations by the end of 2001. This plant is the first
of its kind in Bangladesh with its MCA of UK and USFDA standard manufacturing and quality
assurance facilities.
The implementation of Pharma Unit at Dhaka (Kaliakoir) is carried out under the supervision of
M/s. Tanvec Ltd. of UK. In view of the complex and complicated design and high quality standard
required for USFDA/EU/MCA specifications the progress of implementation has to be slower. It
may be noted that during the year under review total investment increased by Tk. 463,667,368
from Tk. 317,321,566 as on 31-03-98 to 780,988,934 as on 31-03-99 on various heads as shown
below:
Square Dhaka Unit Project work was started from October 1996. After technical review and in the
best interest of the project in order to achieve quality work as State-of-the-art facility to meet the
requirement of the USFDA/MCA Good Manufacturing Practice the original project completion
schedule had to be extended.
The Dhaka Unit New Pharmaceuticals Production Facility at Kaliakoir is one of its kind in the
country to face the challenge of free world market in the beginning of new millennium.
The State-of-Art Facility incorporated certain basic requirement in the area of Purified Water
System. Floor Construction, HVAC System Process Equipment and Validation/ Qualification
Documentation as stipulated by USA, EU and other developed countries.

2.8

Export market

In an effort to expand the market for the pharmaceutical products beyond the border, the
company has been successful in exporting to several countries at an increasing ratio of its
turnover as indicated below:
Taka in 000)
Year

Turnover (Gross)

Exports

% age of GT

2001-2002

2,422,785

44,361

1.83%

2000-2001

2,055,418

15,082

0.73%

1999-2000

1,827,983

11,503

0.63%

1998-1999

1,595,590

163

0.01%

The company has so far been able to enter into the markets of Russia, Pakistan, Sri Lanka,
Myanmar, Nepal, and Cambodia. It is expected that after the Dhaka Unit goes into production the
company will succeed in entering the markets of developed countries with expanded share of
exports.

2.9

Corporate Financial Highlights

Head

Amount

Authorized Capital

Tk. 1000 Million

Issued, Subscribed and Paid-up Capital

Tk. 496.8 Million

Reserve/Surplus (Retained Earnings)

Tk. 872 Million

Share Premium

Tk. 800 Million

Long Term Loan

Tk. 210 Million

2.10Marketing Performance
2.10.1

Product

Squares product is viewed among the most quality products in the country. This quality image
has increased its credibility among the doctors. It is also pioneer in introducing many new
products sought by the doctors. Introducing new products is one of the important objectives of the
company. But there are some complaints regarding packaging of the products. But the company
has now concentrated in this area and working hard to bring attractive and good packaging

2.10.2

Pricing

Government fixes Price of most of the essential drugs. The number is 118 products. The
company can fix price of other products but needs to take approval of government. In pricing a
product, Square Pharmaceuticals Ltd. usually follows target pricing. Premium prices cannot be
charged, as all the competitor products are similar and not much distinguishable from each other.
But prices of some products are still higher than the competitors. But since Square
Pharmaceuticals Ltd. does not compromise with the quality, sometimes they have to charge
higher to ensure the highest quality possible.

2.10.3

Promotion

Personal selling is the main weapon in pharmaceutical industry. Medical representatives of the
company go to the doctors to promote the products. The quality of medical reps is assumed to be
the best in Square Pharmaceuticals Ltd. They are selected after a careful scrutiny and are sent to

market after some extensive training. This helps Square Pharmaceuticals Ltd. to maintain the
quality of its medical reps. Advertising can be given only in magazines related to health
profession. Square also utilizes every opportunity to explore this area

2.10.4

Distribution

Square distributes its products all over the country using its own distribution channel. It has a
large number of vehicles and sales depots to ensure coverage of the whole country. Its coverage
is the best in the country.
SQUAREs NATIONWIDE DISTRIBUTION
Corporate Profile of SQUARE
Chapter
3

Although Square started its operation in pharmaceutical sector and leader in the field, it is today a
synonym of quality toiletries, health products, textile products and AgroVet products. It has also
expanded its business in real estate, engineering construction, hospitals, electronic media and
other trade & services. SQUARE is now one of the fastest growing and fastest diversifying
conglomerate in Bangladesh.

3.1

Square Family

Square family is currently comprised of following companies:

Square Pharmaceuticals Ltd.
Square Textiles Ltd.
Square Spinnings Ltd.
Square Toiletries Ltd.
Square Consumer Products Ltd.
Square Informatix Ltd.
Square Health Products Ltd.
Square Agro Ltd.
Mediacom Ltd.

3.2

Associated Companies

As part of vast diversification, SQUARE has the following associated companies:

Sheltech
Pioneer Insurance Company Ltd.
Mutual Trust Bank Ltd.
National Housing Finance And Investment Ltd.
Aegis Services Ltd.
Maasranga Productions

3.3

Corporate Headquarters:

Corporate Headquarters of SQUARE is now located at the following address:

SQUARE CENTRE
48, Mohakhali Commercial Area, Dhaka-1212, Bangladesh
Tel. : (880)-2-8827729 (10 lines); Fax : (880)-2-8828608, 8828609
Email: square@bangla.net, Web: http://www.square-bd.com

3.4

Board of Directors

Mr. Samson H. Chowdhury

Chairman

Mr. Tapan Chowdhury

Managing Director

Dr. Kazi Harunar Rashid

Director

Mr. Samuel S. Chowdhury

Director

Mr. Anjan Chowdhury

Director

Mr. Kazi Iqbal Harun

Director

Mrs. Jahanara Chowdhury

Director

3.5

Human resources

In its efforts for human resources development in all spheres of its activities the company offered
various courses of training. The company conducted in-house courses of different duration for
upgrading skill of 395 employees during the financial year of 1998-1999. 22 employees were sent
to various local institutes for training on different topics, 7 employees were sent abroad for
training/attending seminars/symposiums on various subjects including general management, 3

expatriates were also invited for holding various discussion forums for officers/staff of the
company.

The Breakdown of HR
Job Location

Manager and

Executive

Non Executive

Total

46

123

123

292

Chemicals Division

12

64

78

Pabna Plant

19

59

459

537

Dhaka Unit

14

61

168

243

Distribution

17

174

194

above
Corporate
Headquarters

Field Force(SPL)

942

Field Force(Agrovet)

70

Field Force(Pesticide)

25

Total HR

84

272

988

2381

The Supervision Ratio

Criteria

Manager

Executive

Span of Supervision

Supervision

84

272

1:3

Executive

Non Executive

272

988

3.6

1:4

Activities of Key Functional Departments in SPL

As per the latest organogram SPL had 20 (twenty) functional departments for its operation. The
names of the departments are as follows:
1.
Information Technology (IT) Department
2.
Medical Services Department (MSD)
3.
Product Management Department (PMD)
4.
Sales Department

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Distribution Department
International Marketing Department
Market Research and Planning Cell
Quality Management and Audit Dept.
Production Planning and Inventory Cell
Engineering Department
Production Department
Commercial Department
Personnel and Administration Department
Technical Services Department
Human Resource Training and Development Department
Quality Control Department
Quality Assurance Department
AgroVet Department
Accounts and Finance Department
Accounts (New Venture) Department

Organizational Structure

Managing Director

Marketing

Product

Senior

Brand

Services

Group

Brand

Manager

Officer

Manager

Manager

The following departments manage domestic marketing operation:

1.
2.
3.
4.
5.

Product Management Department (PMD)

Sales Department
Medical Services Department (MSD)
Distribution Department
Market Research and Planning Cell

The following paragraphs describe the key functions of the above-mentioned Departments:
Information Technology (IT) Department
The main functions of IT Department are as follows:
1.
2.
3.
4.

Provide computer and other related accessories supports to all the user
Maintenance of server and ensure smooth LAN operation
Provide up to date technical and software support to all the sectors of SQUARE
Development and maintenance of centralized databases and provide routine and ad hoc
reports for management decision making.

Medical Services Department (MSD)

The main functions of MSD are as follows:
Arranging clinical meeting with the physicians on different products
Provide answers to different queries of the physicians through mail or telephone
Arranging education programs for the rural medical practitioners
Publishing of medical journals
Arranging of special promotional campaign of different products
Product Management Department (PMD)

PMD is the core and centralized department for managing the total marketing effort. Basically
PMD performs the all planning, implementation of plans as part of marketing management
functions. The two key functions of PMD are as follows:
1.
Introduction of new product into the market
2.
Manage the existing portfolio to achieve the marketing objectives.
To this end PMD undertakes all relevant activities including the following:
1.
Preparation of Marketing Plan.
2.
Designing and development of promotional materials
3.
Training of field forces
4.
Feasibility study of new products
5.
Management of regulatory affairs with Drugs Administration
6.
Preparation of printed promotional material (literature/pad/brochure/show card etc.).
7.
All relevant coordination works with supplier/factory and procurement department concerning
machinery and raw materials that will be used to manufacture the concerned brands.
Sales Department
1.
Pay regular visit to the doctors; show the benefits of new existing products with the help of
promotional tools.
2.
Monitor the competitors activities.
3.
Handles initial product queries from doctors and product complain from the market.
4.
Receive sales order from the retailers /drug stores.
5.
Coordination among different markets
6.
Market rearrangement
7.
Handling different problems of field forces
Distribution Department
Ensure smooth distribution of products to all over the country
Collection of payments from the customers
Performs functions as the representative of SPL at the depot level.
Maintenance of vehicles and depots
International Marketing Department
Exploration of new markets all over the world
Operating of export business in the different countries
Provide training to field forces in overseas countries
Provide all types of documents for registration of SPLs products in overseas countries.
Market Research and Planning Cell
Performing market survey on the Bangladesh Pharmaceutical Market
Regular prescription share analysis and report generation for SPL market share analysis.
Performing different market research work on different issues
Provide all kinds of support to Field Colleagues in effective planning in the market level.

Quality Management and Audit

Ensure the practices of Quality Management System (QMS) at every stage of operations of SPL
in full compliance with ISO 9001.
To monitor the activities to ensure compliance with defined quality policy at every stage of
business.
Develop process and instructions for continuous development of operations to increase
productivity.
Production Planning and Inventory Cell (PPIC)
Prepare the monthly production schedule of different products
Maintain the inventory status of different raw materials and packaging materials
Technical Services Department (TSD)
Provide technical support to QC, QA, Production and other departments with regards to any
kind of technical issues.
2.
To procure new Raw Material and production and quality facilities in coordination with
Commercial Dept.
3.
Development of formulation of new products
4.
Selection of machinery and equipment including spare parts.
5.
Coordination and follow-up of the designing and implementation of the Master Plan of the
factory. All matters related to development of factory facilities.
6.
Handling various forms of product complaints from market, field forces, and different
departments.
7.
Recipe development and necessary changes in formulations, product improvement.
1.

Current performance of SPL

Chapter
4

4.1

Corporate financial highlights

As on March 31, 2006 the corporate financial position of SQUARE was as follows:
1. Authorized Capital

Tk.

1000 Million

2. Issued, Subscribed and Paid up Capital

Tk.

436.8Million

3. Reserve/Surplus (Retained Earnings)

Tk.

872 Million

4. Share Premium

Tk.

800 Million

5. Long Term Loans

Tk.

210 Million
13,206

6. Number of Shareholders (2006)

4.2
results

Corporate

operational

The following three years financial data proves that SPL is operating through maximizing the
shareholders benefits.
(Figures in thousands)

4.3

2003-2004

2004-2005

2005-2006

(12 months)

(12 months)

(12 months)

Turnover (Gross)

3451523

4234244

4729743

Value Added Tax

450577

563433

663892

Turnover (Net)

3000946

3670811

4065851

Gross Profit

1081340

1435655

1466282

Net Profit before Tax

691636

905736

929604

Net Profit after Tax

573677

759448

764885

Paid-up Capital

300,000

300,000

300,000

Earning per Share

229.47

253.15

254.96

Dividend per Share

70.00

75.00

70.00

Output/Capacity utilization

The actual production of the various categories of products (except inhalers) including chemicals
increased substantially leading to higher capacity utilization as summarized below:

Product

Units

Categories

Production (000)
2005-

2004-

2006

2005

% age
increase /
(Decrease)

Capital Utilization
2005-

2004-

2006

2005

Tablets

Pcs

1829089

1736561

5%

105%

231%

Capsules

Pcs

295234

286350

3%

96%

119%

Liquids

Bottles

21210

16105

32%

118%

153%

Injectables

Pcs

13325

23075

(42%)

74%

90%

ENT

Phials

8651

10778

(20%)

192%

207%

Phials

1083

966

12%

181%

116%

Preparations
6

Opthal
Preparations

Dry Syrup

Bottles

4048

2634

54%

169%

88%

Inhalers

Can

298

148

101%

50%

Basic

Kg

219

201

9%

64%

59%

Pcs

1262

1697

(26%)

67%

99%

Gm

34911

15252

129%

189%

127%

Chemicals
10

TabletsAgroVet

11

PowderAgroVet

The capacity utilization rate in some areas of production decreased due to strategic changes in
favor of increased production of higher value added products in each category resulting in higher
turnover in value.

4.4

Dhaka Expansion

Despite numerous oddities and complex artifices usually associated with a state-of-art plant, the
management is in the final phase of implementation of the project with the planning, supervisory
and technical support form the consultants e.g. M/s Bovis Lendles and Tanvec of UK and KUPPA
collaboration of Thailand, though the target of commissioning had to be revise / shifted a few
times in the past. It may be appreciated that the project in hand is only of its kind in the region
with USFDA and EU pharmaceutical manufacturing standards requiring highly rigid and

unquestionable quality of materials, workmanship, and performance. The process of

implementation has often suffered from various hazards of communication, transports,
movements and planned accomplishments was not achieved fully due to malfunctioning of ports,
airports, airlines, shipping services, etc. Due to carious reasons as are rampant in the country
since the project was taken in hand. Considering all these factors and the technical complexities
of such a project as well as non-availability of requir5ed man-machine-material in Bangladesh,
the delay in implementation of the project would not be termed unusual and abnormal. It may
also be mentioned that the consultants also had often failed to identify and consider every
possible situation in Bangladesh. In spite of these the unit is scheduled to start functioning by end
2001.
During the year 2005-2006, an amount of Tk. 807,016,104 has been invested on various heads
as detailed below:

Particulars

As on 31-03-05

As on 31-03-06

Increase

86,725,346

107,550,519

20,825,173

Building/Civil Work

318,783,360

812,111,406

493,328,043

Imported Plant & Machinery

348,897,963

576,923,068

228,025,105

Other Assets

6,315,634

19,954,395

13,638,761

Interest during Construction Period

5,577,622

47,501,489

41,923,867

Unallocated Expenditures

14,689,009

23,964,161

9,275,152

780,988,934

1,588,005,038

807,016,104

Land & Land Development

Total Tk.

The remaining implementation work is expected to be now completed by end of 2004 at an

estimated final cost of Tk. 1,830 million and commence production thereafter.
Square Dhaka Unit Project work was started from October 1996, which completed by end of
March 2000. After technical review and in the best interest of the project in order to achieve
quality work as State-of-the-art facility to meet the requirement of the USFDA/MCA Good
Manufacturing Practice the original project completion schedule had to be extended.
The Dhaka Unit New Pharmaceuticals Production Facility at Kaliakoir is going to be one of its
kind in the country to face the challenge of free world market in the beginning of new millennium.

The State-of-Art Facility incorporated certain basic requirement in the area of Purified Water
System. Floor Construction, HVAC System Process Equipment and Validation/ Qualification
Documentation as stipulated by USA, EU and other developed countries.

4.5

Export market

The companys export drive is being continued with great stress. However, there are number of
problems in exports of medicines from Bangladesh. As a result, the value of exports in Taka
declined by 9.1%. To counter this in future, registration process of products for export purposes
has been initiated in few more countries. The company expects to make a break through in
exports when the Dhaka Unit is commissioned.
(Taka in 000)
Year

Turnover (Gross)

Exports

% age of gross turnover

2005-2006

2,655,952

40,324

1.52%

2004-2005

2,422,785

44,361

1.83%

2003-2004

2,055,418

15,082

0.73%

The company has so far been able to enter into the markets of Russia, Pakistan, Sri Lanka,
Myanmar, Nepal, Combodia. It is expected that after the Dhaka Unit goes into production the
company will succeed in entering the markets of developed countries with expanded share of
exports.

4.6

Financial results

The operating financial results of the company for the year under report as compared to the
previous year are as follows:
Figure in thousand : BDT

Turnover
(Gross)

Value Added
Tax

2005-

2004-

2003-

2002-

2001-

06

05

04

03

02

7,085,55

6,199,13

5,482,08

5,482,08

995,648

867,088

760,536

663,892

4,234,244

563,433

Turnover
(Net)

Gross Profit

Net Profit
before Tax

Net Profit
after Tax

Shareholder
s Equity

Total Assets

Total Bank
Borrowings

Total Current
Assets

Total Current
Liabilities

Current
Ratio

6,089,90

5,332,04

4,721,55

4,065,85

3,670,811

2,564,50

2,172,59

1,906,59

1,466,28

1,533,04

1,513,01

1,151,63

929,604

905,736

1,165,86

1,255,84

970,044

764,885

759,448

6,402,01

5,568,79

4,590,14

3,851,09

3,273,714

9,298,98

7,907,93

6,021,49

5,164,32

2,334,92

1,902,33

988,611

1,070,16

4,031,68

3,242,50

2,016,05

1,441,55

2,260,75

1,949,94

1,250,67

1,247,96

1.78

1.66

1.62

1.16

1,435,655

4,526,115

1,098,874

3
1,452,494

1,181,473

1.23

4.7

Concluding comments

Square Pharmaceuticals Ltd. has a very good working environment where the employees get
enough opportunity to show their ability and creativeness. Its communication channel is superb.
Informal channel of communication is very active. Many interdepartmental issues are solved in
informal meetings, often over a cup of tea. Introduction of LAN has smoothened the process.
Every member of Square Pharmaceuticals Ltd. feels like he or she is a member of the Square
family. This family feeling is a big asset for this company. Most of the employees are dedicated
and motivated to work. Since good performance is always highlighted and creative ideas
welcomed people are eager to contribute their best.
Square Pharmaceuticals Ltd. believes in honesty in every phase of business. The management
promotes this idea to its workers. The image of the company is also good all over the country.
Customers all over the country recognize Square as a quality company and an honest company.