EXECUTIVE SUMMARY

An organization study has been conducted by me at Sangrose laboratories,

Kochalumoodu, Mavelikara subject to MIB course. Sangrose laboratories is a

pharmaceutical company privately owned and operated by Mr. C.K Alexander who is an

entrepreneur – research chemist.

The company is well known as it is the only producer of Clofazimine. I planned to chose

this company to conduct my study as Sangrose is a major producer of basic drugs and

also deals with simple pain killers to complex cardiac compounds.

My aim was to conduct this study in a company which owns several functional

departments and which can offer me good industry interaction and experience. I could

make me analyze and study in depth how an organization functions, how systematic

activities are to be undertaken for the its smooth functioning. It gave me an opportunity to

compare the theoretical practices with the practical situations. The study also aimed to

understand the different departmental functions, interact with the managers at different

levels, importance of technical advancements and innovations, importance of

communication, etc.

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CHAPTER – 1

INTRODUCTION

An industry produces goods and services for human consumption inorder to satisfy

human wants. The entire range of human activities in which men and women play a

dominant role is measured and is economically valued in terms of money. Industrial

sector is one which helps in the overall development of a country in terms of

infrastructure as well as economic. Industrial development helps to measure the richness

of a country.

Industry is divided into four broad segments such as:

1. Manufacturing

2. Extractive

3. Exchange

4. Service

This study facilitates in understanding the size, geographic distribution,

employment, production, sales, and economic condition of the pharmaceutical industry.

SANGROSE LABORATORIES PVT.LTD is a pharmaceutical industry founded

in 1987 by Mr. C.K. Alexander who is an entrepreneur – research chemist. His vision

was to establish his company as world’s largest and only producer of ‘clofazimine’. The

company was incorporated as a private limited company under the Indian Companies

Act,1956. The company is a registered small scale industry with the main objective of

manufacturing basic drugs and is located in kochalumoodu industrial estate which is in

Alappuzha district.

1.1Importance of the Study

Organizational study is carried out mainly with an objective of gaining practical

experience in organizations. The theoretical scope of the study was aimed at covering the

functional departments of the organization. It was to create awareness about the various

operations in the organization. As the study is mainly based on the evaluation of different

departments it enables to get a detailed knowledge regarding the functioning of the

organization. As management students it is important to gain a practical industry

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experience along with the theoretical principles. This study is an important part of the

course as it gives a

chance to experience the practical constraints faced by the managers while putting theory

into practice. It also helped to understand the tactics applied and the way the managers

solve the problems encountered by them.

1.2Objectives of the Study

The organizational study was conducted at SANGROSE LABORATORIES

PVT.LTD. is undertaken with certain clear cut objectives which is classified as:

PRIMARY OBJECTIVES:

To study about the organization

To acquire knowledge about functional as well as managerial aspect of Sangrose

Laboratories Pvt.Ltd.

To compare theoretical knowledge with actual practices.

SECONDARY OBJECTIVES:

To examine criticaly the organizational structure.

To study and understand the various functional areas of the company.

To understand the actual flow of communication procedure followed in an organization.

To analyze the industry and company profile with an overview of the strengths,

weaknesses, opportunities and threats of the organization.

To find out the various technical collaborations in Sangrose and check the importance

and effectiveness of such collaborations.

To identify the external and internal factors affecting the strengths, weaknesses,

opportunities and threats affecting the operations of the organization.

To interact with managers at different levels and find out their duties and responsibilities.

1.3Methodology

The methodology adopted to carry out this study includes the collection of primary and

secondary data. The primary data was collected through personal interview and

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discussions conducted with management. Secondary data was obtained from the

company file, brochures, records and websites.

The methods of data collection are:

1. Primary Data

Primary data are those data that are collected directly through direct personal

interview, oral investigations, observation method, case study method, experimental

method, survey method, etc. Survey method was conducted on the employees in

Sangrose Laboratories Pvt. Ltd.

Survey means a planned effort to collect relevant information from a

representative of the selected population. This survey can be classified into three

categories:

a. Personal interview

b. Telephonic interview

c. Mail survey

The primary data was collected by

Interview

Observation

Discussions with departmental heads

Interview

Personal interviews were conducted with departmental managers, company officials and

employees of the organization.

Observation

During the 4 weeks organization study the general functioning of the organization was

keenly observed. It is an important method as it provides an opportunity to study about

the functioning of the organization.

Discussions with departmental heads

Questionnaires were prepared for each and every department and information was

collected from the respective departmental heads. It helped to understand the major

functions of each department.

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2. Secondary Data

Secondary data are those data that are collected from the already existing data.

Secondary data can be from external sources and internal sources. Internal sources

include financial statements analysis, sales force report.

External sources include information from published records and includes,

Company website www.sangroselabes.com

Company documents

Company journals

Company records

Annual reports

1.4Limitations

a. Time constraint: It was not possible to get a deep knowledge about the functioning of the

organization as well as to experience the real business situations as time was very limited.

b. Lack of previous experience

c. The study was mainly a descriptive one

d. Secret nature of business data – secret business data are not made available to the

observer.

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CHAPTER 2

INDUSTRY PROFILE

2.1Historic outline of the industry

Industry is concerned with the process of extraction of raw materials from the

nature andthe various other process of transforming these raw materials into consumable

goods. It deals with the function of converting or transforming these materials extracted

from nature and to make them fit for human use or consumption. In brief, industry deals

with the production of goods of value.

SMALL SCALE INDUSTRY

Small scale industries are the significant segments of the Indian economy. The basic

objectives underlying the development of small and medium scale industries are the

increased supply of manufactured goods, the promotion of capital formation, the

development of indigenous entrepreneurial skills and the creation of employment

opportunities. In addition to this, they also include such socio economic goals or the

decentralization and dispersal of manufacturing activities from the metropolitan areas to

rural areas, reduction of regional economic imbalances within a country and promotion of

entrepreneurial and managerial activities and skills as well as of technology throughout

the country.

Small scale industry plays a vital role in the economic development of a country in the

following ways:

a. To generate large scale employment opportunities with relatively low capital

investments

b. To find solution for the unemployment in the country

c. To promote balanced regional development of the nation

The highlights of small scale industry are:

They are capital light

They are labour intensive

They are skill light

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2.2 Present structure of the industry

Pharmacy is an art and science of preparing and dispensing medication and providing the

public with drug related information. The modern Indian pharmaceuticals industry has

laid its foundation in the early 19th century and it was through a small factory known as

‘bengal chemical and pharmaceutical works’, Calcutta. Indian pharmaceutical industry

has grown tremendously and presently is in a position to meet 70% of the requirements of

drugs of the country.

INDIAN PHARMACEUTICAL INDUSTRY

Indian pharmaceutical industry is playing a key role in promoting and sustaining

development in the vital field of medicines. Around 70% of the country’s demand for

bulk drugs, drug intermediates, chemicals, tablets, capsules, orals and vaccines is met by

Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to

highest quality standards and is approved by the regulatory authorities in USA and

UK.The production value of the bulk drugs during the year 1997-98 was Rs.2623 and that

of pharmaceutical formulations was Rs.12068 Crores. The production of pharmaceuticals

in India increased by 13.68% during the year 1997-1998 against the previous year. Now

it has rose up to30%.

The Indian pharmaceutical industry today has occupied the first rank in the India’s

science based industries with wide range of drugs .a lightly organized sector, the Indian

pharmaceutical industry is estimated to be worth $4.5 billion, growing at about 8 to 9

percent annually. It ranks very high in the world in terms of the quality, technology and

range of medicines manufactured.

2.3 Major government policies

The government is the agency that is responsible for fixing various prices for the drugs.

Following the de-licensing of the pharmaceutical industry, industrial licensing for most of

the drugs and pharmaceutical products has been done. Manufacturers are free to produce

any drugs that are duly approved by the controlling authority. Technically strong and

totally self reliant, the pharmaceutical industry in India has low cost of production, low

research and development cost, innovative scientific manpower, strength of national

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laboratories and an increasing balance of trade. The pharmaceutical industry with its rich

scientific talents and research capabilities, supported by intellectual property protection

regime is well set to take all the international market.

2.4 Predicted scenario of industry

India holds the lion share of the world’s contract research business. Over 15 prominent

contract research organizations (CROs) are now operating in India, attracted by her

ability to offer efficient R&D on a low cost basis. Thirty five percent of business is in the

field of new drug discovery and the rest sixty five percent of the business is in the clinical

trials arena. India offers a huge cost advantage in the clinical trials domain compared to

the western countries. The cost of hiring a chemist in India is one – fifth of the cost of

hiring a chemist in the west.

Indian companies in an effort to consolidate their position will have to increasingly look

at the merger and acquisition options of either companies or products. This will enable in

offsetting the loss of new product options, improve the R&D efforts and to improve the

distribution to penetrate into new markets. In order to stay competitive in future, Indian

companies will have to refocus and invest heavily in R&D.

Top ten players in the market

1. Ranbaxy laboratories

2. Dr. Reddy’s laboratories

3. Cipla

4. Nicholas Piramal

5. AurobindoPharma

6. GlaxoSmithKline

7. Pfrie

8. Sun pharmaceutical industries

9. Cadila healthcare

10. Aventis pharma

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CHAPTER 3

COMPANY PROFILE

3.1 Background of the company

The Indian pharmaceutical industry today is in the front rank of India’s science – based

industries with wide ranging capabilities in the complex field of drug manufacture and

technology. Pharmaceutical industry is playing a key role in promoting and sustaining

development in the vital field of medicines. The pharmaceutical industry, with its rich

scientific talents and research capabilities, supported by intellectual property protection

regime is well set to take on the international trade.

SANGROSE LABORATORIES PVT.LTD.Was incorporated in the year 1987 as a

private limited company under the Indian Companies Act, 1956. The company registered

as a smallscale industry with the main objective of manufacturing basic drugs is located

in the Industrial Estate, Kollakadavu in Vettiyar village, MavelikaraTaluk in the notified

industrial backward district Allepey, in Kerala state. The main functions of the Bombay

office are purchase as well as collection forum, to deal and maintain a cordial relation

with suppliers.

TECHNICAL BACKGROUND OF THE PROMOTERS

SANGROSE LABORATORIES PVT. LTD. Was founded in the year 1987 byMr.

C.K.Alexander who is an entrepreneur – research chemist. The DNA of the company is

drawn from its founder and his vision to establish world’s only largest producer of

clofazimine. “The vision of a research chemist takes on social and commercial

expressions that’s in the nutshell, briefly explains the genesis and growth of Sangrose

labs.”

Mr. C.K.Alexander the founder and managing director was born and brought up in the

tradition of Kerala. He is a post-graduate, approved manufacturing and quality control

chemist, having 25 years of experience in pharmaceutical industry of which 10 years he

had gained experience in working with the top level management in developing and

implementing project where administrative, technical, marketing and financial skills were

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required. He also have a three year’s experiences in research and haddeveloped process

know how for a number of life saving drugs.

Mr. Thomas Samuel, the finance director a post graduate in business administration is

well experienced in funds management. The sound financial health of the company

proves his expertise in this field. Mr. George Manuel have three years of experience as a

chemist in Mumbai and was the senior manager in an International Airlines for the past

10 year.

NATURE OF THE BUSINESS

SANGROSE LABORATORIES has tie ups in the mantra to success in this age of

globalization “east meets west” as transnational companies reach out for synergistic

partners to enhance their competitiveness in the global market. Companies seek partners

who have the state of art research and development, manufacturing facilities with

excellent customer care. Sangrose caters to all as it believes in value added support.

Sangrose seeks partnership with pharmacy companies around the world by offering

facilities for contract manufacturing API and drug intermediaries. Its group ethos is based

on achieving excellence in bringing out therapeutically active products.

MISSION:

The mission of Sangrose is to dedicate itself through the creation of innovative

medical products and services for the benefit of the medical community and human

health around the world.

VISION:

The vision of the company is to become a leader in the Indian Pharmaceuticals Industry

and a significant global player, providing customers delight and enhancing shareholders

value.

INNOVATION:

Sangrose aims at creating an environment suitable for individuals to bring out the skills to

innovate which in turn help one to excel out.

TEAMWORK:

Sangrose aims at creating better sense of teamwork, the ability to work together, ability to

direct individual accomplishment towards organizational objectives.

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CORE VALUES:

C - Care for customers

R - Respect for associates

E - Excellent teamwork

A - Always learning

T - Trust mutually

E - Ethical practices

OBJECTIVES OF THE FIRM

To manufacture, produce, refine, process, formulate, buy, sell, import, export or

otherwise deal in the basic drugs, python chemicals, plant extracts, dyes pesticides.

To manufacture, produce, distribute, sell, make, research, export and to deal in

pharmaceuticals, drugs, chemicals, medicine preparation, dyes pesticides, cosmetics, their

intermediates including sophisticated item oils, injection, orals, syrups, tablets, capsules

and in such other form for human and animal use.

To carry on the business of chemicals, drugs, import, manufacture and deal in

pharmaceuticals, chemicals for medical purposes, pathological, clinical, industrial and for

other preparations and articles, compounds, drugs and deal in chemicals, surgical

apparatus and materials.

PRODUCTS

1. BASIC DRUGS

The company presently manufacturing anti leprosy Basic Drug – Clofazimine I.P/ B.P

only on its basic drugs units.

2. SOFT GELATIN CAPSULES

The fully air conditioned soft Gelatin Capsule unit is having a production of 50000 per

hour. Utmost care is taken in each stage of production in order to ensure the total quality

of the capsules

RAWMATERIALS OF THE PRODUCT

SANGROSE LABORATORIES PVT. LTD make use of chemicals as raw materials. The

following are some of the important raw materials used in the laboratory and they are:

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Amino compound

Acetic acid

Methanol

Glycerin

Sorbitol

Isopropanol

Methylsalicyclate

Carbon tera chloride

Imiazole

O- chloro benzoic acid

MAJOR CUSTOMERS

Overseas customers

Government supply

Outside state customers

National level

Local level

NATIONAL LEVEL CUSTOMERS

Nova millennium pharmacy, Chennai

ABL Biotechnologies, Chennai

Nouvenavmedicam, Chennai

House Remedy’s, Chennai

Enka health care, Delhi

COMPETITORS ANALYSIS

It is really a pride for Sangrose laboratories as the company enjoys a monopoly position

in the production of the basic drug Clofazimine. In the case of other drugs, competitions

are with the following:

RKG Pharmacy Pvt Ltd

Lark Laboratories

Invies Laboratories

Unicare India Pvt. Ltd

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ACHIEVEMENTS

Sangose Laboratories has received GMP Certificate from WHO which is equivalent to

ISO

Nominated as the best small scale industry of Alappuzha District consecutively for three

years and fourth in the state

Runner up for the management excellence award of Berchamans Institute of Management

Selected as one of the best entrepreneurs of the state

Gold card member of Kerala Financial Corporation, the finance agency based on growth

expansion and prompt payment

The firm has been closely associated with National Leprosy Eradication Proggramme of

Government of India by the supply of clofazimine

3.2 Product Profile

1. In the management of Eczema, Dermatitis, Druritus& Psoriasis

CLO-B

Clobetasol Propionate cream 0.05% w/w

Highly effective in the treatment of eczema, dermatitis, druritus and non scalp psoriasis

CLOSAL

Clobetasol and salicylic acid

Rapid clearing of scaling, pruritus and inflammation

Rapid onset of action

Salicylic acid

Softens keratin, loosens cornified epithelium and desquamates the epidermis

Make the underlying layers more accessible to steroid

CLOGEN

Clibetasol and Gentamicin

Arrest the growth of pathogenic agents

Satisfactory results obtained in 97.5% cases

Good relief from symptoms

Rapid healing of lesions

2.In the management of steroid responsive dermatoses

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EMSONE

MometasoneFuroate 5 Gms

Used in the treatment of dermatitis, psoriasis, eczema and other steroid dermatoses

Safety and efficiency has been well established.

3. In the treatment of primary and secondary skin infections

U-PRO

Mupirocoin 2% Oinment

Effective against a variety of superficial skin infections

Effective against a wide range of GRAM + VE( including staphylococci, streptococci)

and moderately active against GRAM –ve bacteria

Effective in the treatment of IMPETIGO

4. To provide complete protection from sunlight

Beta carotene containing Highcaro(HIC)

Total protection from sunlight

Prevents cellular damage

5. In the treatment of psoriasis

ZEMEGA – 3

Epa 180 mg, DHA 120mg

Ameliorates symptoms of psoriasis

Significant reduction in itching, erythema and scaling

6. In the treatment of hyper pigmentation

KOJI CLEAN

Koji acid and alpha lipoic acid cream

Removes pigment spots faster effectively and maintains natural skin colour

Kojic acid:

Slows down melalin production by inhibiting tyrosinase

Alpha Lipoic Acid

Scavenges ROS

Regenerates vitamin A and C

Prevents oxidative damage

Prevents wrinkling of skin by inhibiting cross linking of protein with macro

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molecules

7. In the treatment of skin diseases

VITA – E 400

Reduces formation of FR

Prevents lipid peroxidation

Maintains skin integrity

Reduces trans epidermal water loss

Strengthens skin barrier function

8. When the need is for an anti – histamine

ZENTIN – L

Levocetrizine 5 mg

Rapid therapeutic reaponse

Higher bio availability

Higher affinity towards H1 receptor

9. In the treatment of fungal infections

SANFLU – 150

Fluconazole 150 mg

Enhanced bio availability

Better absorption

Masks odour

Larger shelf life

Better appearance

TERBINORM (TERBINAFINE 250MG)

Highly effective in dermatophytosis and onychomycosis

Low relapse rate

10. In contact of dermatitis of thin skin

HYDROSTER

Purest hydrocortisone safe on face and thin skin

Provides moisturisation

Smoothen skin by filling up spaces between skin flakes

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11. In hyperkeratosis – warts, corns and psoriasis

Mild conditions – akralic 3%

Moderate conditions – akralic 6%

Severe conditions – akralic 12%

12. To treat severe recalcitrant cystic acne

RETISO – 20

Isotretinoin 20mg

Dramatically reduces elevated sebum production, comedogenesis and ductual

colonization of psoriasis acnes

High cure rates

13. In the treatment of skin disease of mixed actiology

GENCLOBEC

(gentamicin, clotrimazole, beclomethasone cream)

Arrests the growth of pathogenic agents

14. In the management of neurological disorders

Vit – axon

Soft gels

Benfotiamine 100mg

Methylcobalamin 500 mg

Alpha lipoic acid 100mg

Vitamin C 75mg

Vitamin B2 10 mg

Pyridoxine hydrochloride 3mg

Vitamin E acelate 25mg

Zinc 15mg

Pantothenic acid 50m

3.3 Organization Structure

Organization chart is the pictorial or graphical representation and arrangement of

position in an organization and normally positions are arranged in a sequential order on

the basis of their authority and responsibility. With the help of a planned and well

designed organization structure we are able to get an overview of the functioning of the

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organization. Authority and responsibility positions can be easily recognized with the

help of this chart.

FUNCTIONAL AREAS

Every organization performsseveral functions and this enables to reduce the

complications. Departmentalization enables in specialization of the job. Effective

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supervision is also possible and better results are the outcome of such functional

departments. Division of work enables in achieving the organizational objectives. Every

manager can efficiently manage the work when the different activities are categorized

into a common group.

The different departments in Sangrose laboratories are:

1. PRODUCTION DEPARTMENT

2. HUMAN RESOURCE DEPARTMENT

3. FINANCE DEPARTMENT

4. MARKETING DEPARTMENT

5. QUALITY CONTROL DEPARTMENT

6. RESEARCH AND DEVELOPMENT DEPARTMENT

3.4 Production department

Production is the department in which the process of conversion of raw materials and

inputs required for production is converted into output or finished products. Production is

the basic or primary function as everything starts from it. Production system consists of

inputs at one end and at the other end these outputs are connected by a series of

operations, processes, storage and inspections. It is the department responsible for the

creation or manufacture of a product. Its sub departments are stores department, quality

control department and maintenance department.

FUNCTIONS

To produce the required number of products that cater to the current demand.

To set proper manufacturing schedules inorder to ensure timely completion and supply of

products.

To ensure minimum wastage

Optimum utilization of men, machines, materials and money.

PRODUCTION DEPARTMENT CHART

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Purchase& Store Department

Purchase Manager

Purchase in Charge Store in Charge

Store keeper

PRODUCTION IN SANGROSE

The sangrose laboratories produce basic drugs and capsules and they are:

Basic Drug : CLOFAZIMINE

Capsules :Vitamin A & D

Black lumen seed oil

Glovite

Nifedipine

Vitamin A Capsule U.S.P

Vitamin E Capsule U.S.P

Cefoz

Rejuven

Alprazolam

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Paracetamol

Atenolol

Ranitidine tablet

Brufin

PRODUCTION REQUISITES

Raw materials:The most important raw material is amino compound purchased from

Baroda.

Power and fuel: In sangrose, electricity is used as power and is required for working

machines and lighting facilities and for this purpose KSEB Subtraction is very near.

Water : The company has dug wells in the nearby private land in the possession of the

company. In addition to this the industrial estate has its own water supply system.

MACHINERIES

Various types of machinery and equipments are necessary for the production of

medicines. The plant is equipped with machinery to produce 15000 – 20000 kgs basic

drug (clofazimine) per annum and hence 20 lakhs capsules are manufactured per shift.

The plant basically requires the following machines:

MS Rubber Lined Reactor

SS Reactor with condenser

SS Reactor

MS Glass Line Reactor

SS Centrifuge

Rubber Lined Centrifuge

Multimill (hammer type)

Soft Capsulation Machines

Gelatin Cooking Vessel

PRODUCTION PROCESS

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Sangrose is a medicine manufacturing company. As it has got its own policies it keeps its

production process secret. The MD who is the main chemist in the production unit, is the

key factor behind the formulation of the medicines.

PRODUCTION UNIT CHART

RAW MATERIALS

MIXING

ENCAPSULATION

WASHING

DRYING

WASHING

PACKING

DISPATCHING

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Effluent Treatment Procedure

RAW EFFLUENT:

The raw effluent being very little in quantity is collected in a rubber lined concrete tank

heated and allowed to concentrate. When a sufficient quantity is obtained it is to be sold

to the consultants of the company for neutralizing the alkaline effluents of other

industries.

WASH WATER:

The wash water from the production area is collected in a separate rubber linked tank

for treatment. The effluent is pumped into a mixer cum flocculation tank where liquor

ammonia or lime is added for neutralizing. The dried mass is permitted to be used as a

land fill.

The clear overview from the location tank and the filter bed arw pumped into an

aeration tank where the clear liquid is generated and then passed in carbon filter bed to

absorb any remaining organic matters.the filtered liquid is collected in hopper bottom

secondary setting tank. From the secondary tank it is pumped into another creation tank

and biomass is added. After sufficient creation of the mixture the overflow is passed into

a clarifier where any suspended biomass is collected into the slubge put and the clear

water is directly passed to 3.5 acres of agricultural land for irrigation as permitted by the

pollution control board.

There are above 100 people working in the company who are regularly subjected to

medical examination by qualified medical practitioner as per the direction of the drugs

controller of Kerala and so far no cases of any contagious or any other diseases are

reported.

PRODUCTIONPLANNING AND CONTROL

Production planning and control are the two major aspects of production management. It

is an important department of the company which is headed by the senior manager, senior

assistant manager, and an assistant manager in charge of the day to day activities of the

such department. Production planning and control is the planning and organization of the

manufacturing process and to co-ordinate the series of functions.

The elements and function of production planning and control arehe following;

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ROUTING:

Determining the route part for the movement of manufacturing lot through factory

LOADING:

Refers to the work load against a machine or a worker.

SCHEDULING:

Determining the start time and completion time of various operations to be

Performed

DISPATCHING:

Sets the productive activities in motion through the release of orders and instruction

according to timings given in operation sheets, route card and loading schedule.

FOLLOW UP:

It ensures that the necessary instruction has been followed in their unit and required tools

and materials are made available to the workers.

INVENTORY CONTROL

Production Manager is the complete authority who is having control over the production.

He is responsible to reduce the cost of production, wastage of raw materials, timely

production, etc. economic lot sizes, economic order quantity, reorder levels etc are fixed

by this department.

Timely actions help to prevent over and under stocking of raw materials. For this it is

essential to control the physical flow of raw materials. It is essential to arrange the

procurement of raw materials from a supplier who offers continuous supply.Inventories

may be classified into four classes:-Raw materials, supplies, work in progress and

finished goods. Raw materials in sangrose are chemicals that that are processed and

converted into finished products such as clofazimine, basic drugs.

The main objective of inventory control is to enable to place an order at the right time

from the right source price and of right quantity.

a) Economic Order Quantity:

It refers to the specific order size that gives maximum economy in purchasing the

materials. Economic order quantity is the inventory level which minimize the total

ordering or carrying costs

b) Ordering cost:

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Cost of placing an order and securing the suppliers.

c) Carrying cost:

Refers to the cost of keeping the materials in the store house.

3.5 Human Resource Department

Human resource is the field of management which controls the human resource in an

organization. Human resource department maintains a complete list of all the workerd

deployed in the organization. The work is performed in three shifts and around 100

employees are working here. Sangrose maintains cordial relationship with its workers.

Good formal and informal relations are maintained between the employees and

employers. Sangrose implements various incentive schemes for the benefit of the

employees which can motivate the employees to work more.

The functions of human resource department:

Manpower planning

Job analysis

Job evaluation

Recruitment training and development

RECRUITMENT

Recruitment is the process of searching prospective employees and stimulating them to

apply for jobs in the organization. The firm usually calls interview for ten candidates for

one vacancy and will resort to written examination if the candidates exceeds 20.

Sources of Recruitment

Walk in interviews:

Sometimes the Sangrose laboratories conduct interviews to prospective candidates. The

suitable candidate will be selected for appointment.

Advertisement:

Newspapers and magazines are the common media in which sangrose provides

advertisement.

Employee reference:

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The employee reference will be considered when there is an emergency need for an

employee.

Consult in:

The potential job seekers approach the officials personally and in the regular selection

process a suitable candidate is selected.

Nearby locality:

Unskilled workers are usually selected from the nearby locality

SELECTION

Candidates who are technically skilled, educationally qualified and potentially able are

selected.

TRAINING AND DEVELOPMENT

Sangrose laboratories offer a wide variety of developmental opportunities to the

employees of the organization. They are designed to promote professional and personal

growth of workforce. Training enables employees to be technically skilled which can

lead to low wastage of raw materials.

PURPOSE

Enables in reducing the accidents To increase the productivity

Quality of the product

To reduce the wastage in production

To improve and maintain the during production

Three types of training are provided to the employees:

a. Induction training

b. External training

c. Internal training

a.Induction training:

This training is meant for the fresh employees and those employees who have been

transferred from other departments of the organization.HR department is responsible for

preparing the training schedule.The main purpose of training is to get accomplish with

Co.

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b.External training:

It is given to the permanent employees such as engineers, officers and other executives.

This training is conducted by theexternal agencies or external organization.

c.Internal training:

This type of training is given to the technical personnel working in the various sections or

divisions. The training consist of welding, market testing, etc. Management provides

training for a period of six months for the fresh employees. Only after the successful

completion of the training the candidates are permanently appointed. This type of training

is compulsorily practiced.

LABOUR WELFARE ACTIVITIES PROVIDED BY SANGROSE

Maslow’s need hierarchy theory mentions several human needs like self actualization,

esteem needs, safety needs, etc. is inevitable to an organization. Better working

conditions, job security, insurance, medical facility, recreational facilities, etc should be

provided to the employees.The welfare activities commonly practiced in Sangrose are:

Free lunch and restaurant

For special working hours free lunch and refreshment are provided. Coffee is provided

twicea day.

Travelling allowance

For every official journey sangrose provides proper travelling allowance

Bonus

A proper amount of bonus is calculated and provided to the employees

Insurance

All the employees are covered under ESI

Gratuity

Gratuity calculated as per the rules of payment of gratuity

Vehicle facility

Vehicle facilities are arranged to fetch the local employees

Medical facility

Annual medical checkups are arranged for every employee

Provident fund scheme

Every employee and employer contributes equally to the provident fund scheme

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TIME OFFICE:

This department records the time in and time out of the employees. Other activities

related to payment of wages, incentives, leaves etc are recorded in a register. Different

registers are maintained for different shifts. A leave book is maintained and it records;

Leave balance

Leave credited

Leave awaited

The daily attendance reports for employees specify the Shift, date, clock No, hours

worked, scheduled shift. The daily attendance report is verified by the supervisors, shift

engineers and shift head.

HR DEPARTMENT CHART

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HUMAN RESOURCE DEPARTMENT

PUBLIC RELATIONS OFFICER

WELFARE OFFICER

EMPLOYEES

3.6 Finance department

Finance may be defined as the art and science of managing money. An efficient finance

department is the backbone of an organization. Its main activity is to maintain the cash

inflows and outflows in the organization. The finance manager who is the head of the

department determines and allocates funds for the various departments and helps to avoid

the wastage of funds. As finance is the life blood of the organization it provides solution

to the questions such as, how to procure fund and how to utilize the fund and how to

make profit.

OBJECTIVE OF FINANCE DEPARTMENT

Financial management is the managerial activity which is concerned with planning,

controlling and administration of funds used in business. It involves a sound judgement

combined with a logical approach to decision making.The finance department is

primarily concerned with the following objectives:

Maximization of profit:

Profit maximization is the basic criteria considered by the managers while taking a

decision. As a business organization the primary objective is to maximize the profit. It is

essential for the further smooth working of the organization.

Maximization of wealth:

This objective is as important as maximization of profit. This is possible by maximizing

the net present worth of the firm.

Working capital management:

Working capital management has great importance as the success of every business

depends upon the management of the working capital. Working capital in simple terms is

the amount of funds which a business concern has to finance in its day to day operations.

It can also be regarded as that proportion of a company’s total capital which is employed

in short term operations.

CREDIT POLICY

The company have its own policies regarding credit and they sell their products on credit

basis. The credit period of 15 days and grace period is usually provided to the customers.

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If the customer is an outstation party it varies from 60 to 100 days.Trade discounts are

also provided to the customers to increase sales and this is usually allowed on bulk

purchases.

FACTORS INFLUENCING THE WORKING CAPITAL REQUIREMENTS

Working capital management is a significant fact of substantial management. The

working capital needs are influenced by the following:

Nature and size of the business:

The working capital requirements of a firm are closely related to the nature of the

business.

In a pharmaceutical industry like Sangrose laboratories, which manufactures basic drugs

and capsules working capital requirements are relatively high.

Seasonality of operations:

Firms which have a market seasonally usually have high fluctuating working capital.the

sales for sangrose is also seasonal as the company depends on tenders invited by the Govt

of India. this leads to heavy stocking of raw materials and finished goods at the beginning

of the financial year.

Conditions of supply:

The inventories of raw materials, spares and stores depend on the conditions of supply.

The raw materials used here are always not abundantly available and hence sufficient

arrangement for early procurement of raw materials are implemented and also for

stocking it for future use. They are stored for 3 – 6 months.

NEEDS FOR WORKING CAPITAL

Purchase of raw materials( chemicals, spares and components)

Payment of wages and salaries

To meet the day to day expenses and overhead cost such as power, fuel and office

expenses

To meet the selling expenditure like packing and advertising

Maintain the inventories

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SOURCES OF FUNDS

The major sources of fund are shareholders fund, which includes shareholders reserve

and surplus.the loan amount stood up to 30 lakhs from KFC and about 15 lakhs from SBI.

Sangrose has received the best customer award from State Bank of India.

The turnover for the company was 10 crore in 2007 and 7 crore in 2008 and 10 crore in

2009 and 12 crore in

The years 2010. The main sources of income are sales and contract basis manufacturing.

They were able to overcome the recession as their main business deals with the sales of

their patented product, CLOFAZIMINE.

FINANCE DEPARTMENT CHART

FINANCE DEPARTMENT

FINANCE MANAGER

CHIEF CLERK

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ACCOUNTANT

3.7 Marketing department

Marketing involves all those processes and activities that direct the flow of goods and

services from producer to customer. Marketing is the activities that are aimedat the

planning, pricing, promoting and distributing want satisfying products and services to the

present and potential customers. It is also important to an industry as half of the cost of

goods and services results from the marketing process.

FUNCTIONS

Functions of exchange:

Buying

Selling

Functions of physical selling:

Transportation

Storage of warehousing

Facilitating functions:

Financing

Pricing

Risk bearing

Advertising

Standardization

Sales promotion

IMPORTANCE

Analyzing markets thoroughly

Study consumers psychology and demand

Studyig the conditions existing in competitive firms

Studying the market fluctuations

Planning of the advertisement campign

Preparing sales budget from marketing plan

Exploring the markets for selling the products

.

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MARKETING DEPARTMENT CHART

MARKETING MANAGER

MARKETING SUPERVISORS

SALES OFFICIALS

3.8 Quality Control Department

Quality is one of the major aspects that the organization is concerned with the systematic

control of material, men, machines, manufacturing conditions is quality control.

FUNCTIONS

Identify the defective goods

Find the quality of mixing

Ways to reduce the cost of manufacture

Improvement of manufacturing and customer relation

Market research

Production methods and production design that improves quality

Factors affecting quality

QUALITY CONTROL MEASURES

Raw material analysis

In process analysis

Finished product analysis

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The quality control laboratory functioning in the company has sophisticated equipment

like U.V spectrophotometer, disintegration testing equipment, dissolution testing

equipment, electronic PH meters, digital electronic balance, etc.

Quality control is the statistical method of measuring deviation from standard quality by

recording sample tests on a chart which immediately shows when work is being

deviated from approved limits

QUALITY CONTROL DEPARTMENT

QUALITY CONTROLDEPARTMENT

CHEMIST

ASST.CHEMIST

LAB ASSISTANT

3.9 Rerearch and development department

The company has a research development lab functioning with all sophisticated

equipment. Their main objective is developing process knowhow for life saving drugs.

They also develop combination of those drugs that can be produced at lower costs.

Sangrose is spending a reasonable portion of its turnover for its R&D department. A

qualified team is working with the department to develop competitive products which

identifies sangrose among other pharmaceutical companies.

Sangrose is expanding its product line consistently. A new division that is expected to

produce tablets, liquids, orals and hard gelatin capsules. A subsidiary of sangrose is on

the development process and which is proposed to be named as SangroseDrugs

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Chemicals Pvt Ltd. Which intends to manufacture the basic drugs. The plant is proposed

to function from the coming year onwards.

Following are some of the basic drugs:

Dapsone (anti-leprosy)

Pyrazinamide (anti- TB)

Imipramine (anti-depressment)

Enthambutol (anti-TB)

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CHAPTER 4

FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 Findings

Capacity utilization is low

Faces the problem of high inventory or low inventory level which is resulting in high

inventory cost

Relationship between top level management and workers is not good enough

High wastage of raw materials

No product diversity

4.2 Suggestions

Try to utilize its capacity at an optimum level to reduce cost

Purchase department must follow the EOQ strictly

Relationship between top level and workers should be strengthened

Distribution of free samples must be implemented

Promotion activities should be carried out

Updated Technology should be used

4.3Conclusion

SANGROSE LABORATORIES is the only company manufacturing CLOFAZIMINE in

Kerala and third in India. This in turn results in the creation of huge demand for their

products. The company is enjoying the benefit of both small scale industry and company

form of organization.

The company plays a significant role in the National Leprosy Eradication Programme

introduced by the government of India under the aid of World Health Organization

(WHO). It is a capital intensive and power oriented project in the small scale sector

promoted with the objective of rural development.

It is the policy of Sangrose to supply medicine conforming to quality standards specified

by customers at agreed prices and to their satisfaction. The promoters of the company

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have brought in all the infrastructure facilities for setting up the laboratory to the

requirements of small scale industry.

Since the sales for Sangrose has become seasonal there is a huge requirement of working

capital because the company depends on the tenders invited by the Government of India.

This leads to the need for the heavy stocking of raw materials and finished goods at the

beginning of the financial year. With continuous efforts sangrose laboratories can reach

global heigh

BIBLIOGRAPHY

1) Company brochures of Sangrose Laboratories Pvt. Ltd

2) R. Amsaveni; “Impact of leverage on profitability of primary aluminum industry in

India” Indian Journal of Finance, Vol.III, No.II, Nov 2009 pp. 33-41

3) Kothari.C.R, Research Methodology: Methods and techniques, New Age International

Publishers, New Delhi, Reprint edition, 2007

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