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Dec 5, 2012 (4 years and 11 months ago)

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PRESENTATION STRATEGIC
MANAGEMENT AT
RANBAXY LABORATORIES Ltd

GROUP:
-
”12”

Prepared By:

Ragini Patel Roll No.34

Rakesh Patel Roll No.35

Rimple Patel Roll No.36

RANBAXY LABORATRIES

Type : Public

Founded : 1961

Headquarters : Gurgaon, Haryana, India

Key People : Tejandra Khanna, Chairman


Brian Tempest, Vice Chairman


Malvinder Singh, CEO

Industry : Pharmaceutical


Total revenue : Rs. 5,188 crore

Global revenue : Rs. 3,819 crore

Market cap : Rs. 15,077 crore

Number of countries : 49

where it is present

Countries where it has : 8

manufacturing units


Revenue targeted by : Rs. 9,400 crore ($ 2 billion)

December 2007

Revenue targeted by : Rs. 23,520 crore ($ 5 billion)

December 2012


Employees : 1100 in R&D


Website : www.ranbaxy.com


BOARD OF DIRECTORS

Mr. Tejandra Khanna Chairman

Brian.W. Tempest Vice Chairman

Mr. Malvinder Mohan Singh CEO & MD

Mr. Atul Sobti President

Dr. P.S Joshi Director

Ramesh L. Adige Executive Director

Recent Acquisitions & Alliances


Terapia
(Romania)


Be
-
Tabs
(South Africa)


Allen
(Italy)


Ethimed
(Belgium)


Mundogen
(Spain)



Zenotech
(India)


Krebs

(India)


Jupiter Biosciences
*(Ind.)


Cardinal Drugs

(India)


Auto
-
injector Tech
.(USA)

* Subject to due diligence

PRODUCTS OFFERED



ANTI


INFECTION



G.I & NUTRITIONALS



CVS & DIABETES



CNS



NS AID & RELATED



ANTI ALLERGANTS



ANTI RETROVIRALS



UROLOGY



OTHERS


MISSION:

“To become research based International pharmaceutical company.”


VALUES:


Achieving

customer

satisfaction

is

fundamental

to

our

business
.


Provide

products

&

services

of

highest

quality
.


Practice

dignity

and

euity

in

relationship

and

provide

opportunities

to

our

people

to

realise

their

full

potential
.


Ensure

profitable

Growth

and

enhance

wealth

of

the

shareholders
.


Fosters

mutually

beneficial

relations

with

all

our

business

partners
.


Manage

our

operations

with

high

concern

for

safety

and

environment
.


Be

a

responsible

corporate

citizen





VISION 2012:

“Achieve

significance

business

in

proprietary

prescription

products

by

2012

with

a

strong

presence

in

developed

markets
.


ASPIRATIONS

2012
:


Significant

income

from

proprietary

products
.



It

also

aspires

to

be

amongst

the

Top

5

generic

players
.


Aspire

to

be

$

5

billion

company
.


SWOT ANALYSIS:

STRENGTH:


Presence in 23 of the 27 EU countries.


Low cost of production.


Efficient technologies for large number of Generics.


Large pool of skilled technical manpower both in India and abroad.


Increasing liberalization of government policies.


Well developed industry with Strong manufacturing Base.


Rich Bio
-
diversity.


Non Infrenging products of Active Pharmaceuticals Ingredients.


High standards of purity.


Opportunities:



Growing incomes.


Growing attention for health.


New diagnoses and new social diseases.


New therapy approaches.


Spreading attitude for soft medication (OTC drugs)


Spreading use of Generic Drugs.


Globalization


Easier international trading.


New markets are opening.


Supply of generis drugs to developed markets



Contarct manufacturing arrangements with MNCs.


Niche player of global Pharmaceuticals and R&D




WEAKNESS:



Fragmentation of installed capacities.



Low technology level of Capital Goods of this section.


Non
-
availability of major intermediaries for bulk drugs.


Lack of experience to exploit efficiently the new patent regime.


Low share of India in World Pharmaceutical Production (1.2% of
world production but having 16.1% of world''s population).


Very low level of Biotechnology in India and also for New Drug
Discovery Systems.


Low level of strategic planning for future and also for technology
forecasting.


Production of spurious and low Quality drugs tarnishes the
images of industry at home and abroad.


Production of Duplicate drugs


Absence of Association between Institutes and Industry..



THREATS
:


Competition From MNCs


Containment of rising health
-
care cost.


High Cost of discovering new products and fewer discoveries.


Transformation of process patent to product patent.


Stricter registration procedures.


High entry cost in newer markets.



High cost of sales and marketing.


Non tarrif barriers imposed by developed countries.


Competition, particularly from generic products.


Switching over form process patent to product patent.


Drug price control order put unrealistic ceilings on product
prices and profitability and preventa company from generating
investible surplus

STRATEGIES

Ranbaxy

is

focused

on

increasing

the

momentum

in

the

generics

business

in

its

key

markets

through

organic

and

inorganic

growth

routes
.

Growth

is

well

spread

across

geographies

with

focus

on

emerging

markets

The

Company

continues

to

evaluate

acquisition

opportunities

in

India,

emerging

and

developed

markets

to

strengthen

its

business

and

competitiveness
.

Ranbaxy

has

forayed

into

high

growth

potential

segments

like

Biologics,

Oncology

and

injectables
.

These

new

growth

areas

will

add

significant

depth

to

the

existing

product

pipeline
.



The Globalization Strategy



Growth Strategy



Poised For Growth



API Development And Production



Dosage Form Development And Manufacturing



Contract Manufacturing

Key Drivers of Growth Strategies:




Significant patent expiries


through 2011



Rationalizing Healthcare costs


-

key priority for Governments



Increasing genericisation



0
5
10
15
20
25
30
35
2006
2007
2008
2009
2010
2011
France

Spain

Italy

Russia

South Africa

India

$ Bn

Value

of Drugs going off patent 2006
-

11

Source : IMS



Accelerating branded generics



API

Development

and

Production



Ranbaxy

can

provide

Active

Pharmaceutical

Ingredients

(API)

for

companies

that

want

to

manufacture

their

own

product

or

brand

without

incurring

the

time

and

costs

associated

with

developing

the

API,

eliminating

this

step

from

the

overall

manufacturing

process
.

Key

advantages

of

using

Ranbaxy's

vertically

integrated

system

are
:



Continuity

of

supply,Consistent

quality

of

product

,Competitive

costs,Flexibility

and

resources

to

respond

to

changing

market

dynamics


Dosage

Form

Development

and

Manufacturing


Ranbaxy's

experience

as

a

global

manufacturer

makes

it

an

ideal

partner

to

take

on

the

complex

process

of

solid

or

liquid

dosage

form

development
.

Ranbaxy

continually

uses

reverse

engineering

to

improve

upon

its

development

and

manufacturing

processes

and

enhance

yield,

with

a

focus

on

achieving

greater

cost

efficiencies
.





Contract

Manufacturing


To

expand

product

lines

with

minimum

investment,

Ranbaxy

provides

turnkey

manufacturing

services,

including

API

and

dosage

form

development,

to

allow

companies

to

focus

on

marketing

and

selling

the

product
.

This

is

an

efficient

way

to

diversify

product

lines

and

increase

profit

margins,

taking

advantage

of

Ranbaxy's

manufacturing

capabilities

and

expertise
.

Marketing

Strategies
:



Marketing

Strategies

is

the

department

focused

primarily

on

developing

and

executing

strategies

for

the

promotion

and

distribution

of

branded,

generic

and

OTC

products

for

RPI
.


One

of

the

key

tasks

for

the

department

is

to

identify

opportunities

in

different

markets

and

distribution

channels

and

pursue

those

to

developing

and

establish

new

relationships

in

the

marketplace
.

Managed

Care

and

Internet

marketing

are

a

couple

of

key

areas

that

the

department

is

looking

to

introduce

into

its

ever
-
expanding

service

offerings
.




Threat of
Substitute
Products

Threat of
New
Entrants

Threat of
New
Entrants

Rivalry Among
Competing Firms
in Industry

Bargaining
Power of
Buyers

Bargaining
Power of
Suppliers

Porter’s Five Forces

Model of Competition

Industry Competition:

Pharmaceuticals

Industry

is

one

of

the

most

competitive

industrys

in

the

country

with

as

many

as

10
,
000

different

players

fighting

for

the

same

price
.
The

top

players

in

the

country

has

only

6
%

market

share

and

top

5

players

together

has

about

18
%

market

share
.

Competitors of Ranbaxy in India are:
-


Dr. REDDY‘s



CIPLA



NICHOLAS PIRAMAL


AUROBINDO PHARMA


GLAXO SMITH KLINE



LUPIN



SUN PHRMACEUTICALS


CADILLA HEALTHCARE


WOCKHARDT




Product

Differentiation

is

one

of

the

key

factor

for

competitive

advantage

in

the

Ranbaxy
.

Entry

barriers

in

pharma

industry

is

low
.

Competitive Analysis
:
-




0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Ranbaxy
GSK
Reddy's
Cipla
Nicholas
Turnover
PBT
PAT
Market cap
Bargaining Power of Suppleir:
-

Ranbaxy

depends

on

certain

organic

chemicals

.
The

chemical

industry

is

again

very

competitive

and

fragmented
.
The

chemicals

used

in

the

pharma

industry

are

largely

a

commodity
.
The

suppliers

have

very

low

bargaining

power

and

the

Ranbaxy

can

easily

switch

from

their

suppliers

without

incurring

a

very

high

cost
.



Bargaining Power of Buyers:
-

In

Ranbaxy

or

in

any

Pharma

industries

the

buyers

are

scattered

and

they

as

such

does

not

yeild

power

in

the

pricing

of

the

products
.
However

government

with

it’s

policies,plays

an

important

role

in

regulating

pricing

through

the

NPPA(National

Pharmaceuticals

Pricing

Authority)
.


Barriers to Entry:
-

Pharmaceutical

Industry

is

one

of

the

most

easily

accessible

industries

for

an

entrepreneur

in

India
.
The

capital

requirement

for

an

industries

is

very

low

so

creating

a

regional

distribution

network

is

easy

since

the

point

of

sales

is

restricted

in

this

Industries

in

India
.
However

creating

the

brandawareness

franchisee

amongst

the

doctor

is

the

key

for

the

long

term

survival
.
Also

quality

regulations

by

government

may

put

some

hindrance

for

establishing

new

manufacturing

operations
.

In

recent

times

the

advances

made

in

the

field

of

Bio
-
technology

can

prove

to

be

a

threat

to

synthetic

pharmaceutical

industries
.

Thank You