HRM 380 2013 Summer Case 3 1 ACI Bangladesh

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Author: Tajuddin Ahmed

Faculty: North South University, Dhaka, Bangladesh

Sayed Qayem Hussain was relaxing on his office desk, just after attending anoffice party hosted in his farewell at his Manhattan Office of Johnson &

Johnsons. His parent company has acquired Advanced Chemical Industries

Limited (ACI) of Bangladesh, and has assigned Hussain to lead a prosperous

company of a very promising industry of Bangladesh.

Bangladesh being a third world country is relieved from Patent Right of thePharmaceutical Industry, has a comparatively low labor cost and has Preferential

Export Right to many of the Developed Nation including the countries of the

European Union.

Johnson & Johnsons acquired ACI to explore the entire prospective horizon and

establish its market dominance in Bangladesh as a follow-up of its rivals, such as

Novartis, Roche, and other Pharma giants.

Hussain joined Johnson & Johnsons in the year 1998 after his MBA with a

Human Resource Management, and BBA in Finance major. He has been involved

in the same job of leading the first stage at Venezuela when Johnson & Johnsons

acquired a company there. Hussain pulled up all the files that was provided to himbefore his new assignment and began his investigation.

Background of ACI

ICI Plc of UK had a pharmaceutical business in Bangladesh. In 1992 the business

was sold to management and the name of the company changed to Advance

Chemical Industries Limited. ACI inherited the rich ICI culture of product quality,

customer service and social responsibility and continuous to nurture.

ACI is the first company in Bangladesh to obtain certification of ISO 9001 Quality

Management System in 1995. ACI is also the first Company in Bangladesh to get

certification of ISO 14001 Environmental Management System in 2000. ACI

employees are proud of their work culture, business ethics and environmental

consciousness.

ACI values are embodied in its vision and mission statements. ACI quality and

environmental concerns clearly state through declared policies.

Written and Structured for Case Analysis

by Tajuddin Ahmed, Faculty North South University

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What was primarily a pharmaceutical business in 1992 with a turnover of tk.80million with stagnant growth, the new management brought about fundamental

changes in policies and has in year 2002 grown to over Tk. 2000 million in

turnover through diversified business interest including personal care products,

food products, animal health, agrochemicals and seeds in addition to gaining a

strong position in pharmaceuticals. The earning per share is increasing from 2000

to 2002, which was 3.97 and 6.75 respectively.

ACI represents principals like AstraZeneca, Eli Lilly, UCB, Searle and Fujisawa

in pharmaceuticals business; Colgate-Palmolive, Heinz and Dabur in Consumer

products sector; Synzenta in Agrochemicals; Ranbaxy, Dabur, Wockhardt, Sanofi

and Invesa in animal Health sector. It has five subsidiary companies and is one of

the largest conglomerates in Bangladesh.

The trading subsidiary of ACI represents in Bangladesh principals like ICI,

Exxon-Mobile, Bayer, and Stahl.

History of ACI Pharmaceutical Ltd

Bangladesh is a country with plenty of people. Actually, these people are a bank of

huge human resource. As the population grows the need for medications is

increased. And as the most of the people of our country are below the poverty line,

they always look for cast- effective and quality medications. To improve lives by

providing cost-effective high quality pharmaceutical products ACI stated theiroperation with this mission. It holds the eight positions in the Bangladeshi

Pharmaceutical market ACI Pharmaceutical Ltd. is one of the largest

manufacturers of quality medicines in Bangladesh.

In 1973, the UK based multinational pharmaceutical company, ICI plc,

established a subsidiary in Dhaka, known as ICI Bangladesh Manufacturers

Limited. In 1992 , ICI plc divested its share to local management , and the

company was renamed Advanced Chemical Industries [ACI] Limited.

ACI formulates and markets a comprehensive range of more than 125 products

covering all major therapeutic areas, which come in tablet, capsule, powder,

liquid, cream, ointment, gel and injection forms. ACI also imports products from

world-class multinational companies like ASTRAZENECA, UK; ELILILLY,

USA and UCB, BELGIUM and markets world-renowned brands like Diprivan,



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Fluothane, Nolvadex, Accolate, Meronem, Atarax, Humulin, Ceclor etc. inBangladesh.

ACI is actively engaged in introducing newer molecules and new drug delivery

systems to meet the needs of the future.

ACI introduced the concept of quality management systems by being the firstcompany in Bangladesh to achieve ISO 9001 certification in 1995 and follows the

policy of continuous improvement in all its operations.

ACI maintains a congenial and supportive relationship with the healthcare

community of Bangladesh, with the belief that business excellence can only be

achieved through pursuit of quality by understanding, accepting, meeting and

exceeding customer expectations.

The management of ACI, a competent team of professionals, thus operates with a

progressive attitude to provide effective solutions to satisfy the customers needs,

through its products and services of uncompromising quality.

It is engaged in resource and development, manufacture and marketing of

prescription and non-prescription pharmaceuticals. They realize that

pharmaceuticals are directly to human lives and thus feel that it has an incalculable

social liability of providing safe medicine.

ACI pharmaceutical Ltd is perceives to be one of the finest business entities by the

members with whom it interacts specially the physicians and other health care

professionals. Most of the products that it actively markets enjoy leadership

position demonstrating incomparable trust that it enjoys from the health care

professionals.

In 1992, this company entered in the international business arena with the exportof basic materials to UK It had to face many hindrances in the beginning.



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Now they export their products in different countries. Presently they export in the16 countries. Those are UK, USA, Germany, Holland, Italy, France, Hungary,

Japan, China, Korea, Thailand, Malaysia, Indonesia, India, Pakistan, Singapore

and Taiwan.

They face the economic and social challenges in this century and they preparethemselves to step in to that. Whatever the challenges they face, their motto of

providing both human and animal health care sector with the quality products will

never be compromised.

ACI pioneered in the launching of anti-migraine drug in Bangladesh. ACI motto is

contributing in the both human and animal health sectors by providing important

medications not available in our country.

The company also diversified into new entities in the fine chemicals. They

committed to achieve world class standards is not only limited to formulations but

also to its fine chemical business. This policy ensures supply of cost effective

quality materials to other local companies as well as for use in its own formulatedproducts.

After several years in this business, ACI realized the role of positive work ethic.

As they are in such a business where ethic and moral values are very much

needed.And regarding the pharmaceuticals business they are really following anethic. Finally it is their strength to get customer satisfaction.

Over the year of the company has acquires a high degree of the ability of

transforming technological know ledge into commercially viable products through

in house expertise and use of international consultant.

As they are new in the market and have good marketing channels and they are

producing good quality medicines, so there is a scope for them to expand. They

can increase the production capacity and try to make some new channels to covermore area and sell their product throughout Bangladesh. They can also increase

their product line. If they introduce some new brands in the market then there is a

chance to acquire good response from customers.



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Through its creation of subsidiaries and affiliation in overseas pharmaceuticalmarkets, ACI has been actively working towards the internationalization process

and building the brand image of the companys products worldwide. ACI has

established an international marketing network, which has made it the largest

exporter of pharmaceuticals from Bangladesh

Mission

ACI mission is to play a leading role in enhancing the quality of life and well

being of the people of Bangladesh through responsible application of knowledge

and skills.

Vision

To attain the vision ACI will devote its resources to provide products and

services of high and consistent quality, which ensure value for money to its

customers.

Endeavor to attain a position of leadership in each category of its business

To create an image for quality of its products and services, productivity of

its operations and innovative abilities of its employees.

To ensure superior return on investment through healthy and sustainable

growth of the company.

To contribute to the personal well being of their employees.

To encourage and support qualitative improvement of the services of or

distributors and suppliers.

To participate in selected government / NGO projects and in community

services for the attainment of social goals.



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ACI business divisions

ACI is concentrating in many businesses. The main business divisions are

following below:

Pharmaceuticals

Health CareConsumer Brands

Agribusinesses

Trade

Products

Diagnostics and Medical Devices

Name of the company

Flyban Insecticides Ltd.

ACI Trading Ltd.

ACI Formulations Ltd.

Mutual Trust Bank Ltd.Central Depository Bangladesh Ltd.

Computer Technology Ltd.

Apex Leather craft Ltd.

Tetley ACI (BD) Ltd.

Quality Policy

ACIs mission is to achieve business excellence through quality by understanding,

accepting, meeting and exceeding customer expectations.

ACI follows international Standards of Quality Management System to ensure

consistent quality of products and services to achieve customer satisfaction. ACI

also meets all national regulatory requirements relating to its current businesses

and ensure that current Good Manufacturing Practices (cGMP) as recommendedby World Health Organization is followed for its pharmaceutical operations.



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Their primary mission is to contribute to better health and quality of life forpeople.

The management of ACI commits itself to quality as the prime consideration in all

its business decisions. All employees of ACI must follow documented procedures

to ensure compliance with quality standards.

The pool of human resources of the company will be developed to their full

potential and harnessed through regular training and their participation on seeking

continuous improvement of work methods.

Environmental Policy

ACI Limited is committed to maintain the harmonious balance of our eco-system

and therefore constantly seeks ways to manufacture and produce product in an

eco-friendly manner so that the balance of nature remains undistributed and the

environment remains sustainable.

In pursuit of this goal, ACI will

Comply fully with all local and national environmental regulations

Conserve natural resources like water and energy for sustainable

development, and adoptEnsure appropriate treatment of all effluents prior to discharge, to

discharge, to prevent pollution or

Ensure appropriate communication and cooperate with internal and external

interested

Create awareness on environmental issue among their employees and

suppliers.

Adopt modern waste management technology.

Business Opportunities

Drug & Drug Discovery Service:

ACI Pharmas Drug & Drug Discovery Service offers contract services to:

Pharmaceutical manufacturers,

Biotech researchers, and



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Biopharmaceutical companies.

They are open for business development collaboration, strategic alliances and joint

venture. They offer quality services and support under one roof in the hands of

highly qualified professionals.

Their professionals are trained in some of the best laboratories in the world such as

MIT, Cambridge, USA; UC Berkeley, USA; Max Plank Institute, Germany; and

some of the best industrial organizations.

Quality and Reliability is our hallmark of success. Customer satisfaction is their

highest policy. All under an environment of high confidentiality. Helping to build

a healthier society is their mission for the elevation of human suffering?

Business Development

ACI Pharm's Business Development group works with the:

Business Development Department of leading pharmaceuticals andbiotechnology companies to acquire products for ACI Pharm's worldwide

pharmaceutical business.

Provides commercial input into the product development of leading

pharmaceutical companies on global basis.

To meet these objectives, ACI Pharm seeks to form alliances with

biotechnology companies, small to medium sized pharmaceutical

companies, academic institutions, and other organizations, which may have

products and/or technologies, which fit into ACI Pharm's business

objectives.

Licensing candidates and manufacturers with vision to reach global

customers are being sought in the areas of cardiovascular diseases,

oncology, bone disorders, gastoentrology, immunology, infections,hematology, and cerebrovascular diseases.



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Corporate Information

ACI Pharm is a highly regarded professional organization committed to quality

health care. We aim to provide sound health and longer enjoyment of life for users

of our products.

ACI Pharm is a science based pharmaceutical company committed to meet theneeds of its valued customers through:

Research,

Development,

Supply,

Distribution, and

Marketing of the highest quality healthcare products.

Since its inception, they have been striving to broaden our services and product

ranges to meet market needs.

As a team of Qualified Researchers, Production, Technical, Marketing,Management, and Sales force, they strive to accomplish the mission through their

commitment to high values and ethics in healthcare.

Consciousness on consumer-oriented strategies guided them to:

Futuristic research,

Commercialization of latest technologies,

Superior customer service,

Proficient distribution services,

Long-term strategic alliances, and

Advanced information technologies applications.



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Professionals at ACI Pharm have extensive and diverse pharmaceutical /healthcare industry experience and global business expertise. You will find us

uniquely qualified to help you meet the challenges of guiding a product through its

entire life cycle.

Financial Performance

Sales turnover increased by 25.4% and Gross Profit increased by 39.1%. Cost of

Goods Sold was reduced to 69.3% from 72.3% of last year. These improvements

are due to higher proportionate sales of pharmaceutical product than last year.

Profit after tax increased by 19.04% to Tk. 109.18 million over the previous year.

The Earning Per share (EPS) stood at 6075 this year against Tk. 5067 of last year.

Six Years Comparative Statistics 1997-2002

Taka

Particulars 1998 1999 2000 2001 2002

Authorised

Capital

500,000,000 500,000,000 500,000,000 500,000,000 500,000,000

Issued & Paid

Capital

161,700,000 161,700,000 161,700,000 161,700,000 161,700,000

Turnover

(Net)

963,316,614 1,199,463,566 1,410,616,965 1,637,408,231 2,052,913,536

Gross Margin 315,950,870 360,015,967 402,365,474 453,333,979 630,665,988

Profit Before

Tax

68,173,879 74,758,879 94,929,607 136,715,428 163,602,582

Profit After

Tax

52,673,879 58,258,879 64,129,607 91,715,428 109,180,668

Current

Assets

535,009,472 687,478,392 694,845,668 816,320,886 1,062,983,169

Net Current

Assets

296,407,292 273,778,940 236,216,896 206,400,779 192,222,033

Shareowners

Equity

499,230,444 508,573,073 516,107,680 547,185,608 590,383,526

Dividend 40,425,000 48,510,000 56,595,000 60,637,500 60,637,500

Current Ratio 2.16 1.49 1.52 1.34 1.22

Quick Ratio 0.89 0.51 0.49 0.57 0.54



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Return onEquity

10.55% 11.46% 12.43% 16.76% 18.49%

InventoryTurnover 1.8 2.2 2.2 2.5 2.7

Debtors

Period

17 18 20 24 23

W. C.

Turnover

3.3 5.3 6 7.9 10.7

F. A.

Turnover

4.9 5.8 6.5 7.7 8.8

Net Asset PerShare

30.87 31.45 31.92 33.84 36.51

Market Price/Share

42.54 27.29 50.45 55.31 54.19

Earnings /

Share

3.26 3.60 3.97 5.67 6.75

Dividend /

Share

2.50 3.00 3.50 3.75 3.75

Dividend

Ratio

25% 30% 35% 37.50% 37.50%

P E Ratio 13.05 7.58 12.71 9.75 8.03

Div. Payout

Ratio

77% 83% 88% 66% 56%

E Dividend

Rate

6% 11% 7% 7% 7%

No. of Emps 1,047 1,161 1,157 1,284 1,662

Production Capacity

Production capacity of the pharmaceutical unit 1 is 1,500,000-unit pack per 8hr/

month and current utilization is 136% and Production capacity of thepharmaceutical unit2 is 375,000 units per 8hr/month and current utilization is

82%. Production capacity of Animal Heath unit 4 is 175,00 unit 8hr/month and

current utilization is 30%.



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Medical information update

ACI will shortly introduce a flash mail service and its website updates for the

members of medical profession with latest information for their professional

practices.

In Bangladesh, ACI introduced the concept of quality management by being the

first company in Bangladesh to achieve ISO 9001 certification that reflects its

commitment to quality in every aspect of business.

ACI wishes to introduce a flash mail service that will update whenever latest

information important for their professional practices becomes available.

The efficient management and expertise strengthen the industry being well

equipped with modern machineries and equipments. The commercial production

started in April 1992 with 8 (eight) antibiotic products. During end of 1996 the

production range expanded up to 41 numbers. Recently ACI Pharmaceuticals Ltdachieved ISO 9001 for its Production, Distributions Marketing, Quality Control,

and Sales.

ACI covers the health care community of whole Bangladesh based in both urban

and rural markets, through its 18 strategically located depots.

Markets

International market

To fuel the continuous growth of ACI, the company has started exploring

international markets. The quality of ACI products, strengthened by its ISO 9001

certification, has brought immediate success in Sri Lanka, Yemen and Myanmar.

Product registration in Singapore has just been completed.

Domestic market

Being a developing country, the pharmaceuticals market and at the same time, the

pharmaceuticals industry of Bangladesh is growing. In this growing market, ACI



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has been able maintain its growth above the market growth through its innovativemarketing strategies as well as products and services of uncompromising quality.

Scientific seminars

ACI frequently arranges seminars and symposia covering a wide range of medical

topics attended by members of health care community. The faculty of theseprograms usually consist of both reputed medical experts and experts from

marketing team of ACI and its international principals.

Continuing medical education of physicians and surgeons

ACI regularly arranges CME programs of both physicians and surgeons all overthe country. These programs cover medical problems frequently faced by the

practitioners, update their knowledge, and make them aware of the new therapies

and medical technologies.

Responding to doctors queries

It is the most regularly performed task of the marketing team of ACI. The

company has developed a postage paid business reply care attached to every

literature in which the doctors usually send their queries. ACI tried to provide a

comprehensive answer to the queries of the physicians covering all the details. TheACI is also planning to provide more specialized services to doctors of various

disciplines. So doctors will prescribe more medicine of ACI. The medical

department is also planning to publish helpful and practical handbooks or

guidebooks of different disciplines.

Medical illustration and audiovisual aids

ACI is ready to assist in preparing presentation packages including computer

slides, transparencies and printed text whenever medical experts wish to sharetheir experiences and results of their research with the health care community.

Reprint services



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ACI provides the doctors with reprints of selected publications on topics that canassist the doctors in their professional practices.

Facilities

The plant is well designed and well equipped with all latest facilities and state-of-the-art technologies. The responsibility team of plant workers, supervisors,

officers and managers strictly follow cGMP recommended by WHO and In-

process Quality control methodology for production and meets all national

regulation requirements. All the departments of ACI Pharmaceuticals have well

experienced professional parsons. The present sales are showing upward trend and

it is expected that within next two years the sales will reach over 20 million Taka

per month. This project is self financed and the factory has over 5 acres of land forfurther expansion and modernization.

Thus the total endeavor is aimed at the welfare and good health of the people so as

to present a healthy society.

Prescription Drugs

Prescription drugs are drugs that are not locally available without a physician's

prescription.

Anti-convulsant Drugs

Anti-Angina Drugs

Anti-Fungal Drugs

Anti-Itch Drugs

Anti-Viral Drugs

Anti-Diabetic Drugs

Anti-Asthmatic Drugs

Anti-Hypertensive Drugs

AntibioticsAnti-Migraine Drugs

Anti-Rheumatic Drugs

Anti-Protozoal Drugs

Tricyclic Anti-depressants

Anti-Arrhythmic Drugs



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Anti-nausea DrugsAnti- Parkinson Drugs

Anti-Psychotic Drugs

Muscle Relaxants

Digitalis Drugs

Anti-Gastroesophageal Reflux Drugs

Anti-Retroviral DrugsAnti-Tuberculosis Drugs

Anti-Ulcer Drugs

Anti-Hemorrhoid Drugs

Anti-Spasmodic Drugs

Anti-malarial Drugs

Non-steroidal Anti-inflammatory Drugs: Some can be bought over the

counter; others are available only with a prescription from a physician ordentist.

Immuno-Suppressant Drugs

Anti-Insomnia Drugs

Anti-helminthic Drugs

Central Nervous System StimulantsDecongestants: Some decongestant products require a physician's

prescription but there are also many non-prescription (over-the-counter)

products.

Anti-Coagulant Drugs

Bone Disorder DrugsInfertility Drugs

Topical Antibiotics: Some topical antibiotics are available with a

prescription only.

Diuretics

Vasodilators: In the forms used for treating high blood pressure (tablets or

injections), these drugs are available only with a physician's prescription.

Blood-viscosity Reducing Drugs

Beta BlockersExpectorants: Some products that contain are available only with a

physician's prescription

Anti-histamines: Some Anti-histamine products are available only with a

physician's prescription.

Penicillins



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BarbituratesLaxatives

ACE inhibitors

Anti-anxiety Drugs

Urinary Anti-infectives

MAO Inhibitors

Opioid AnalgesicsBronchodilators

Ophthalmic Antibiotics

Smoking Cessation Drugs: Some products are available only with a

prescription.

Protease Inhibitor

Anti-depressant Drugs

Alpha1-adrenergic BlockersTetracyclines

Products

ACI Pharm's Herbals and Nutraceuticals division is engaged in developing,

producing and marketing herbal medicines, nutraceuticals and food supplements.They apply scientific knowledge of medicinal plants and herbs to meet the

growing demand for natural health products. They use proprietary technologies toimprove the efficacy of natural substances and conducts clinical studies that

follow the rigorous guidelines of the pharmaceutical industry to provide empirical

evidence of health benefits.

The company employs experts in the fields of ethnobotany, nutrition, and various

medical disciplines and works closely with major hospitals, patient groups and the

food and health regulatory agencies. All products are manufactured in compliance

with GMP standards of high quality control.



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ACI veterinary Science specializes in the development, manufacture, andmarketing of original veterinary and nutritional products. The company has a

broad range of nutritional, antibiotic, anthelmentics, blood protozoan disease,

ruminotonic, flukicides, and Vitamin supplements to enhance animal health and

productivity.

Products are marketed around the world and include:

Antibiotics

FlukicidesRuminotonic

Anthelmentics

Corticos Steroides

Anti-Mycoplasmic Drugs

Inflammary Infusion for Mastitis

Drugs for Blood Protozoan Diseases

Vitamins Supplements & Nutritional Products

Service

Supply Management

For Pharmaceutical customers: Supply management resource provides you theservices of order management, supply management, and distribution support for

pharmaceutical and medical-surgical supply needs. Supply Management offers

advanced order management capabilities including full catalog searches, customer-

specific pricing, product availability, and order status - all provided with up-to-

the-minute, real-time accuracy. ACI Pharm is an important link between suppliers

& buyers on global basis. Associate companies of ACI Pharm manufacture quality

pharmaceutical products and are involved in Research and Development. They area young, dynamic and growing

company focused on supply chain management (distribution, supply, and

marketing pharmaceutical products).



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Pharmaceuticals Marketing & Management

ACI Pharm. Inc, provides a full spectrum of market development, product

development, sales force management, direct-to-consumer advertising, global

product launches, and product life cycle management and targeted

communications services in support of product launch.

They provide technical expertise in regulatory affairs, industry training, sales and

marketing training, international business development, registration,

commercialization and management consulting. Their market chemicals,

laboratory reagents,diagnostics,pharmaceuticals,nutraceuticals, herbaceuticals, and

health food supplements. They also help companies and organizations to focus

their efforts in order to capture niche markets. They maintain excellentpartnerships with consumer product companies in understanding the regulatory

hurdles and help us in market development.

Their strategic alliances and in depth market knowledge enable us to deliver a fullrange of innovative product commercialization, marketing, and distribution

offerings for many of the leading pharmaceutical manufacturers. With superb

management skill, sound financial strength, and capability to maintain the strategic

competitive advantage provide both the products and service of your choice. They

offer customized solutions to each associate company and its products in differentmarkets. Their people work closely with customers and professionals to

understand consumer's changing and devise strategies to support their business

objective. They commitment to meet the requirements of different types of

pharmacies ushered their to develop various types of marketing tools. In pursuit of

their vision for the future of healthcare, ACI Pharmaceutical offers a complete

package in supply, distribution, and marketing.

ACI Pharm's uniqueness is not only the breadth of service offerings, but also its

ability to help us drive market share and capitalize on business opportunities whenthey arise, whether it's accelerating adoption during product launch or increasing

market share from growth to maturity. Wherever your product is, and wherever

you need to take it, you'll see the value of working with strategic thinkers who are

committed to customized solutions- and a level of personal involvement that sets

them apart.



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Their day-to-day activities include:

Preparation of regulatory affairs documentation.

Registration of products with respective regulatory organization and

ministry.

Trade mark and brand name registration with respective ministry.

Market research and strategic marketing for associate companies.

Product concept to product development and clinical trails.

Obtain import licenses and temporary quotas for products.

Preparation of culture and language based customized marketingcommunication materials, e.g. detail kits, promotional literature,

advertising, seminars, etc..

Daily retail and wholesales customer visits by qualified professionals.

Pharmaceuticals markets and products database management and

supply.

Systems analysis and development of user specific software for

manufacturers, retailers, and hospitals.



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The animal health division and the Present Problem

The animal health division of ACI Pharmaceutical started its journey in the year

2000with the purpose to supply animal health care products to the market. And

from the very beginning of their journey this division of ACI Pharmaceuticals was

performing well to satisfy their in-house customers. They have started with a very

small product line and within this short period of time they have increased theproduct line. At present they are having 50 different products including vitamin,

Feed Premix and antibiotic.

Although the animal health care division have some limitation but even though

they have shown a good performance and lastly it has been found that they have a

huge demand in the local market. These demands compel them to supply product

to the customers.

Unethical business policy of market

ACI is a one of the best leading Pharmaceuticals Company in our country. ACI is

also the first Company in Bangladesh to get certification of ISO 14001. ACI mottois to contribute in the both human and animal health sectors by providing

important medications which are not available in our country. They face the

economic and social challenges in our country. Whatever the challenges they face,

their motto of providing both human and animal health care sector with the quality

products will never be compromised. ACI employees are proud of their workculture, business ethics and environmental consciousness.

After several years in this business, ACI realized the role of positive work ethic.

As they are in such a business where ethic and moral values are very much

needed. And regarding the pharmaceuticals business they are really following an

ethic. But there are some unethical business policies in the medicine market that is

very unexpected. In our country every year almost one new pharmaceutical

company establish. For marketing their new products they follow the unethical

business policy. Some of the small companies give bribe to some doctors to writedown their medicines in the patients prescription. But it is very illegal according

to our countrys law and also condemnable acts. In this way they want to expand

their marketing. But it has a bad impact on medicine market. It will resist the

improvement of quality of the medicines. And public health will be harmful. So, it



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should be strictly protected. Government should take the necessary step to stopthese unethical businesses. By concerning of public it can resist.

Under rate crisis

In our country every year almost one new pharmaceutical company is being

established. For marketing their new products they follow the unethical businesspolicy. Some of the small companies give bribe to some doctors to write down

their medicines in the patients prescription and some of the companies are trying

to market their products under actual rates. They supply the medicines in the

marketing below the average market rates. In this way they want dumping and

influence into their products over other companies products. But it is very illegal

according to our countrys law and also condemnable acts. In this way they want

to expand their marketing. But it has a bad impact on medicine market.

In the case of promoting the product at present they do not have any promotional

activity. They only have the brochure where they try to introduce their products.

Besides the health care division does not have any separate marketing channel.

The management of ACI Pharmaceuticals by the time has found a favorable notion

from this animal health care Division. And for that reason they want to start a new

journey. But they are having some problem regarding the market potential. So they

need to justify the demand of the health care products. And for doing that they arefacing some problems.

Animal Health Care Products

Vitade

Oxin WS

Sulfamix+K

Enro 10

TylosVital C

Polymix WP 10 for Layer

Polymix WP 21

Polymix WP 22

Polymix Salinomicin-mix 12%



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Polymix Amprol-Mix 25%Polymix CLS 1500 WS

Polymix SPS Super

Polymix Flavomycin-Mix 10%

Polymix Multivit Amino 26

Polymix SPT-5

Polymix Liquid DisinfectantLivasol WS

Daxolite

Medicines - an important material for commercial poultry farm

Unlike other countries, Bangladesh is also facing the problems of animal diseases.The diseases are affecting the Poultry Firms directly and indirectly. So, at any cost

farmers are maintaining the firms out from diseases otherwise starting from

epidemic to severe financial loss may incur. Usually Bacteria, Virus, Saprophytes,

Fungus, Malnutrition, Chemical Reaction and some other unknown diseases are

responsible for direct and indirect infections. Generally the Bangladeshi farmersdo not know that much about the poultry diseases. Farmers think about the

treatment after the diseases attack the poultry. Most of the cases small farmers do

not show interest to take prevention about diseases in order to avoid the cost.

Though some farmers has the vaccination, still they do not bother for the Chemical

Reaction, malnutrition and other diseases and as a result they become the victimwithout being aware of it. Infections are always a big threat for Poultry health.

Ranikhet, Gamboro, Faul Pox, Infectitous Broncataties, Coccideosis, Infectus

Coraiga, Aflatoxicosis, Eggdrop syndrome etc are having a direct effect on poultry

firms. If not controlled it can be turned into an epidemic. Also birds are affected

with malnutrition for feeding of low quality foods.

Medicines, Vaccines and Vitamins are very important among the other

ingredients. Most of these ingredients are imported from Europe, America, Korea,

Singapore, and India. There are some reputed companies who are importing andmarketing these medicines, vaccines and vitamins. Now vaccines worth have 16-

core and medicines worth of 60 core are available in Bangladesh but farmer are

being deceived because of the supply of some low quality products from some

companies. As small farmers are more dependent on dealers and agents, the

possibility of being deceived is higher for them.



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The management of ACI Pharmaceuticals by the time has found a favorable notion

from this animal health care Division. And for that reason they want to start a new

journey. The animal health care division of ACI Pharmaceuticals thus has a good

prospect in the present market. This is indeed a great opportunity of ACI to in

crease their market.

Some of them are doing unethical practice by supplying the medicines at a high

rate, which is a huge waste of money. The farmers should be aware about them

and they should collect the medicines from the reputed companies but recently

farmers are becoming more aware about

the diseases and they are trying to learn about the diseases so that they can avoid

the situation.

Diagnosis of disease: an important activity to save the poultry industry

Disease creates problems in the good health of different parts of the body. Not

only for human being, it is applicable for all the animals of the earth, which is verytrue about the poultry chicken because they are very sensitive about any

mismanagement. They need some extra care as they grow in a sensitive

environment. They also may react in different weather and the diseases may attack

climate and the chickens and hens if the environment is not controlled. That's why

it very important to save them from any kind of diseases for marketing the poultry.Though generally farmers give vaccines to the poultry but it has been found that

the poultry are becoming sick and epidemic. The reason behind is farmers do not

check whether the vaccines are ineffective or not. Vaccines is use to protect the

poultry from the diseases and microbes are entered through the vaccines and if

microbes do not enter in sufficient amount and if the activity does not contain the

security then the vaccination will be a lost project. As farmers have least idea

about Ranikhet, Gamboro, Faul Pox, Infectitous Broncataties, Coccideosis,

Infectus Coraiga, Aflatoxicosis, Eggdrop and there is a very high possibility to be

infected by them, the farmers should have the clear concept about the diagnosis. If

the farmers can detect the diseases beforehand then by taking preventive measuresthey can save some abnormal loss and that's why it is very important to know

about the diagnosis of the diseases.



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As Bangladeshi farmers are weak in poultry management, in the same way theyhave lack of knowledge about the proper diagnosis of the poultry also. It is one of

the major reasons that epidemic takes place. To save the poultry from all the

diseases and infections the farmers should have a strict organic security and also

they have to monitor whether the poultry conducting any unusual behavior or not.

It's better to prevent them by taking the necessary action beforehand rather than

taking the action to feed the medicines after the infection. This willgive two advantage, one is it will save some unusual expenses and it will have less

indirect effect on human body. So it will be a profitable thing if farmers take care

about proper diagnosis of the poultry. That's why farmer should take necessary

training on diagnosis and should maintain a regular communication with the

diagnostic centers and if necessary there should special diagnostic zones adjacent

to the big farms. The officials of different diagnostic centers can visit the farms

often and through that the farmers can learn to diagnosis and to take the properhelp form the concerned department. Government, Private sector and other big

entrepreneurs can invest to establish diagnostic centers.

Foreign Investors can also be called for this. It is necessary to establish the latest

and scientific diagnostic laboratory in Bangladesh. There are few diagnosticcenters that are not sufficient enough to meet the demand of the poultry industry.

It is agreed that to make the poultry industry profitable, it is necessary to give

importance to the diagnosis sector and establish latest and scientific diagnostic

centers.

Animal health care products and ACI Pharmaceuticals

In Bangladesh private sector investment in rural based agro-industries is

significant enough. Established business houses are yet to divert their attention in

such non-traditional propositions. However, towards end 80's a huge number of

poultry farms have come up with keen interest in development of poultry sector

and subsequently became active as multidimensional conglomerate. As a result it

has been noticed that a strong demand has risen up for animal health care products

among which different types of veterinary items are mostly noticeable.

In Bangladesh per capita consumption of meat is below 1kg.Assuming that, if we

can increase this figure up to 1.5 kg then a dramatic change in our poultry sector

can be observed.



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To fulfill this gap in between high demand and poor supply of animal health care

products domestically ACI Pharmaceuticals has recently introduced a new product

line that gives much emphasis on Vitamins (different kinds of vitamins which are

required for the rapid growth of chicken) and Ox Tetracycline (a kind of medicine

used for preserving poultry feed) required for poultry farming. This recent project

follows up the company's new idea to establish a full-fledged animal health caredivision namely ACI health care division with its marketing infrastructure. The

company has set up its target to gain 25% to 30% market share of the domestic

market of animal health care products. Simultaneously, the project goal is to hold

the position among the top five companies in the related field by the year

2005/2006.

Within the next few months ACI Pharmaceutical is planning to launch their animalhealth based products in the market. As a result, in present days, they are passing

through a situation, which need information to make decisions regarding the

market of the products of animal heath care product line of the company. In this

respect, the company is in a need to figure out the market potential for animal

health based products.

As the prime products of this animal health care product line are Vitade (Vitamin

83Ad3E) and Oxin WS (Oxytetracycline Hydrochloride) the company is interested

to consider these two products for measuring market potential. Here market

potential has been defined as the current demand among the customers of ourcountry for animal health care products of ACI Pharmaceuticals.

Consumption of Animal Heath care products

In this case ACI only concentrate to the information about the Animal health care

products. Animal health care products increase in Consumption in many reasons:

Festivals Like Eid

Weather FluctuationSeasonality Effect

Temperature Fluctuation

Others



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For these following-mentioned two generalized reasons the animal health careproduct will be getting popular day by day and that is why there is a market

potentiality for this product.

Increase in consumption for both the increases in demand during festivals, and

fluctuation of weather.

Increase in consumption during the pick season.



HRM 380 2013 Summer Case 3 1 ACI Bangladesh

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