Assignment Point (http://www.assignmentpoint.

com/)

|||

Global Pharma
Supplier
Over 135000 product line including.
Orphans, Unlicensed, Specials, Onco

Report on Square Pharmaceuticals Ltd

Background
Square
Pharmaceuticals
Ltd
(http://www.assignmentpoint.com/business/organizational-behavior/internship-reportsquare-pharmaceuticals-ltd.html). (SPL), the pharmaceutical giant in the country, is a
trusted name in the industry of manufacturing quality medicines for more than four
decade.
SQUARE today symbolizes a name a state of mind. From the inception in 1958, it has
today burgeoned into one of the top line conglomerates in Bangladesh. SQUARE
Pharmaceuticals (http://www.assignmentpoint.com/science/pharmacy/assignment-onpharmaceuticals-sector-of-bangladesh.html) Ltd., the flagship company, is holding the
strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and
is now on its way to becoming a high performance global player.
SPL was

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

1.1 Profile of Square Pharmaceuticals Ltd.

Corporate Headquarters : SQUARE CENTRE
48, Mohakhali Commercial Area
Dhaka 1212, Bangladesh
Factory : Shalgaria, PabnaTown, Pabna
Established : 1958
Constitution : Public Limited Company
Chairman : Mr. Samson H. Chowdhury
Managing Director : Mr. Tapan Chowdhury
Details of Business : Pharmaceutical Products/ Bulk Chemicals/ AgroVet
Products
Authorized Capital : Tk. 1000 million
Paid-up Capital : Tk. 496.8 million
No. of Employees : 2703
ProductRange : Pharma 91 products in 185 dosage forms

Chemical Division 7 products

AgroVet Division 7 products
Name of the Banker : Janata Bank, 1, Dilkusha, Dhaka
CitiBank N.A., 122-124, Motijheel, Dhaka
Standard Chartered Bank, 18-20, Motijheel, Dhaka
Credit Agricole Indosuez, 47, Motijheel, Dhaka
Bank Asia Ltd., 113-116,Tejgaon, Dhaka
Manufacturing Units : 1. Pharmaceutical Division
2. AgroVet Division
3. Chemical Division
Square Pharmaceuticals Ltd. (SPL), the pharmaceutical giant in the country, is a trusted
name in the industry of manufacturing quality medicines for more than four decade.
With a capital of Tk. 55,000, a floor space of 3000 sft, and a team of 12 persons, SPL
made its humble debut as a partnership firm in 1958.
Within a span of only six years, under the farsighted vision of the management
(http://www.assignmentpoint.com/business/management), and the dedicated efforts of
the company, its turnover reached the mark of Taka one million. With the growth of
turnover came the increase in number of employees, which in 1964stood to 50. At this
point of time the partnership firm was transformed into Private Limited Company. In
1964, PLs Authorized Capital was Tk. 5,00,000 and the Paid up Capital was 4,00,000.
During the mid-seventies (1975) SPL entered into a technical collaboration agreement
with Janssen Pharmaceuticals, Belgium, which is a subsidiary of Johnson and Johnson
International, USA. Since its inception SPL practices Good Manufacturing Practices
(GMP), as recommended by the World Health Organization (WHO).
Another technical collaboration came under way, this time with F Hoffmann-La Roche
Ltd., Switzerland, in 1982. But the fruits of this agreement could not be reaped on the
account of the Drug Ordinance of 1982. Nevertheless, SPLs growth was not being

stunted. In 1982, turnover reached over Tk. 240 million, and the payroll increased 400
heads, and by 1988 SPLs turnover exceeded half a billion taka., and the number of
employees to 750.
A new factory built in 1987, with all the modern machinery, extensive development of the
domestic market, and infiltration into foreign ones like UK and Singapore. Led to this
phenomenal growth SPL is the first company in the country ever to export
pharmaceuticals finished goods abroad. At present SPL is exporting its products to
Nepal, Myanmar, Pakistan, Sri-Lanka, Combodia, and Russia.
With its finished goods already dominating markets at home and abroad, SPL started
production of pharmaceutical raw materials groom its new unit, christened as Square
Chemical Division, in 1995. The items in production under this unit are Diclofennac
Sodium, Amoxycillin, Cloxacillin and Paracetamol.
To sustain the changing environment SPL made convert itself into Public Limited
Company in 1991. With a brilliant track record SPL became the first company in
Bangladesh to cross the Billion Taka mark turnover in 1992. In 1994 SPL got its share
listed in the Dhaka and Chittagong Stock Exchanges. Authorized Capital towered to
billion taka and paid up capital by now is taka 250 million. Presently Square is family of
1321 members.
In 1996 an agreement was signed with M/s Tanvec, UK for the establishment of the
second formulation unit (Pharma II) at Kaliakoir, Gazipur. This factory, which built with a
view to get the approval of USFDA/MCA, is completed in the year 2000, and without
doubt, help SPL continue to command its leadership through the next millennium as well.

1.2 Chronology since inception

Year Events

1958 :

Debut of Square Pharma as a Partnership Firm.

1964 :

Converted into a Private Limited Company.

1974 :

Technical Collaboration with Janssen Pharmaceutica, Belgium, a subsidiary of

Johnson and Johnson International, USA.

1982 :

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

1985 :

Achieved first position in the Pharmaceutical Market of Bangladesh among all

national and multinational companies.

1987 :

Pioneer in pharmaceutical export from Bangladesh.

1991 :

Converted in to a Public Limited Company

1994 :

Initial Public Offering of Square Pharmaceutical Shares.

1995 :

Chemical Division of Square Pharmaceuticals Ltd. starts production of

pharmaceutical bulk products (API).

1997 :

Won the National Export trophy for exporting pharmaceuticals.

1998 :

Agro-chemicals & Veterinary Products Division of Square Pharma starts its

operation.

2001 :

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

2004 :

Signing of agreement with ROVIPHARM, Vietnam to manufacture and market

SQUARE products under license in Vietnam.

Secured the top position for the best published accounts and report for 2003 in
the manufacturing category for transparency and excellence in corporate
reporting.

2005

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

1.3 Global Operations of SPL

SQUARE has extended its range of services towards the highway of global market. It
pioneered exports of medicines from Bangladesh in 1987. Through its extended
marketing operations, SQUARE is now selling its finished goods in many countries of
Asia and Europe including:
Cambodia
Myanmar
Nepal
Pakistan
Russia
Sri Lanka

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

1.3.1 Partnership and agreement with different world players

1974 : Technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of
Johnson & Johnson International, USA
1982 : Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland
1999 : Agreement with Bayer AG, Germany
1999 : Agreement with Eisai Co. Ltd., Japan
1999 : Technical know-how transfer to foreign pharmaceutical company
2000 : Establishment of Square Spinnings Limited.
2001 : Operation of new factory with a view to get USFDA/MCA approval and
production support for expanding export operations.
2002 : Establishment of Square Fashions Limited and Square Knit fabrics
Limited.
2003 : Turnover crosses Four Billion Taka mark.
Overview of Square Pharmaceuticals Ltd.
Chapter
2

2.1 Manufacturing Facilities

SQUARE
is
committed
to
ensure
strict
compliance
(http://www.assignmentpoint.com/business/report-on-compliance-of-bando-designlimited.html) with CGMP norms and regulatory requirements in every phase of
manufacturing, quality assurance, and distribution of medicines. To comply with CGMP
SQUARE has state-of-the-art technology in production and quality control. In addition,
USFDA/MCA standard new plant is now at the completion stage.

Documented Quality Management (http://www.assignmentpoint.com/business/management)

System (QMS) is integral part of all of SPL operations. People at all levels are committed to
adopt advanced technology for continuous development. Being confident with the
sophisticated manufacturing and quality assurance technology of SQUARE, multinationals
from industrialized countries now have agreements with Square for having their products
manufactured in Bangladesh.

2.2 Product Mix

SQUARE
has
latest
technologies
for
production
(http://www.assignmentpoint.com/business/economics/lecture-on-production-andgrowth.html) of a wide varieties of dosage forms including Tablet, Sustained Release
formulation, Capsule, Metered Dose Inhaler (MDI), Injectable, Syrup (liquid and dry),
Suspension (liquid and dry), Pediatric Drops, Nasal & Ophthalmic formulations, Topical
Gel/Ointment/Cream, and oral care formulations.
Current product mix of Square Pharmaceuticals Ltd. comprised of products from the
following types of Drug Delivery Systems:
Tablets
Non-coated (Vaginal, Dispersible, Chewable, Plain)
Coated (Sugar coated, Film coated, Enteric coated)
Sustained released (coated/non-coated)
Capsules
Injectables
Vials containing dry powder for injections
Small volume parenterals
Liquids
Oral (suspension, syrup, drops, and stomatologicals)
Topical solutions
Nasal drops

Dry powders
Oral (for reconstitution to make suspension, syrup and drops)
Topical
Semisolids (creams, ointments and gels)
Solid suppository formulations
Metered Dose Inhalers (MDIs)
Dry Powder Inhalers (DPIs)
Sterile Ophthalmic Formulations (drops)
Therapeutic Range (Formulation)
Analgesics/AntipyreticsAnthelmintics

AntiviralsBone resorption preparations

Antiallergics

Dermatologicals

Antidepressants

Enzymes

Antidiabetics

Expectorants/Antitussives

Antidiarrheals

Hematinics

Antiemetics/Gastroprokinetics

Lipid modifiers/Antiobesity

Antifungal Systemic

Nootropics

Antigout

NSAIDs

Antihistaminics

Ophthalmic preparations

Antihypertensive / Antianginal

Sedatives/Tranquilizers/Muscle Relaxants

Antiinfectives/Antibacterial

Bronchodilators/Antiasthmatic

Antimalarial

Vitamin and mineral preparations

Antiprotozoals

Androgen suppressants

Antiseptics/Disinfectants

Anti-migraine

Antispasmodics

Laxatives

Antiulcerants

Neurological

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

2.4 Research and Development

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

2.5 Chemicals Division for Bulk Drug

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

Flucloxacillin sodium BP

Amoxicillin trihydrate BP/USP (compacted and micronized)

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

2.6 Distribution Network

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

Depot

Address

Phone

Dhaka

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

(880-2) 8828775

Pabna

Hospital Road, Salgaria, Pabna.

(880-731) 66580

Bogra

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

Bogra

(880-051) 64747

Rangpur

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

(880-0521) 63588

Rangpur.
Khulna

Alhamdulillah, 25 Usufe Road, Mirzapur, Khulna- (880-041)

9100
724654

732330,

Barisal

502/532 South Alekanda, 1 No. C & B Pool, C & B (880-0531)

Road, Barisal.
56778

53661,

Comilla

400/363, Shishu Mangol Road, Kandirper

Comilla.

(880-081) 72320

Mymensingh

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

Mymensingh

(880-091) 55143

Chittagong

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

Nasirabad, Chittagong-4000.

(880-031) 654423

Maizdee

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

(880-0321) 61683

Sylhet

Sabina Mohal, 44, Payra, Darshandewry, Dorga

Mohalla, Sylhet.

(880-0821) 725298

Tangail
Rajshahi
Faridpur

Biswas Betka, Dhaka Road, Tangail

106, Ambagan, Senanibas Sarak, Rajshahi
Mission Road, Christian Mission, Police Line,
Faridpur

(880-0921) 53488
(880-0721) 760877
(880- 0631) 63561

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

887

Permanent :

420

Casual :

467

Central Depot :

01

Depot :

14

Vehicles :

212

2.7 New Plant of SPL

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

2.8 Export market

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

Turnover (Gross)

Exports

% age of GT

2001-2002

2,422,785

44,361

1.83%

2000-2001

2,055,418

15,082

0.73%

1999-2000

1,827,983

11,503

0.63%

1998-1999

1,595,590

163

0.01%

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

2.9 Corporate Financial Highlights

Head Amount

Authorized Capital Tk. 1000 Million

Issued, Subscribed and Paid-up Capital Tk. 496.8 Million
Reserve/Surplus (Retained Earnings) Tk. 872 Million
Share Premium Tk. 800 Million
Long Term Loan Tk. 210 Million

2.10Marketing Performance
2.10.1 Product
Squares product is viewed among the most quality products in the country. This quality
image has increased its credibility among the doctors. It is also pioneer in introducing
many new products sought by the doctors. Introducing new products is one of the
important objectives of the company. But there are some complaints regarding
packaging of the products. But the company has now concentrated in this area and
working hard to bring attractive and good packaging

2.10.2 Pricing
Government fixes Price of most of the essential drugs. The number is 118 products. The
company can fix price of other products but needs to take approval of government. In
pricing a product, Square Pharmaceuticals Ltd. usually follows target pricing. Premium

prices cannot be charged, as all the competitor products are similar and not much
distinguishable from each other. But prices of some products are still higher than the
competitors. But since Square Pharmaceuticals Ltd. does not compromise with the
quality, sometimes they have to charge higher to ensure the highest quality possible.

2.10.3 Promotion
Personal selling is the main weapon in pharmaceutical industry. Medical representatives
of the company go to the doctors to promote the products. The quality of medical reps is
assumed to be the best in Square Pharmaceuticals Ltd. They are selected after a careful
scrutiny and are sent to market after some extensive training. This helps Square
Pharmaceuticals Ltd. to maintain the quality of its medical reps. Advertising can be given
only in magazines related to health profession. Square also utilizes every opportunity to
explore this area

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

Corporate Profile of SQUARE

Chapter
3

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

3.1 Square Family

3.1 Square Family

Square family is currently comprised of following companies:
Square Pharmaceuticals Ltd.
Square Textiles Ltd.
Square Spinnings Ltd.
Square Toiletries Ltd.
Square Consumer Products Ltd.
Square Informatix Ltd.
Square Health Products Ltd.
Square Agro Ltd.
Mediacom Ltd.

3.2 Associated Companies

As part of vast diversification, SQUARE has the following associated companies:
Sheltech
Pioneer Insurance Company Ltd.
Mutual Trust Bank Ltd.
National Housing Finance And Investment Ltd.
Aegis Services Ltd.
Maasranga Productions

3.3 Corporate Headquarters:

Corporate Headquarters of SQUARE is now located at the following address:
SQUARE CENTRE
48, Mohakhali Commercial Area, Dhaka-1212, Bangladesh
Tel. : (880)-2-8827729 (10 lines); Fax : (880)-2-8828608, 8828609
Email: square@bangla.net (mailto:square@bangla.net), Web: http://www.square-bd.com
(http://www.square-bd.com/)

3.4 Board of Directors

Mr. Samson H. Chowdhury

Chairman

Mr. Tapan Chowdhury

Dr. Kazi Harunar Rashid

Managing Director
Director

Mr. Samuel S. Chowdhury

Director

Mr. Anjan Chowdhury

Mr. Kazi Iqbal Harun

Director
Director

Mrs. Jahanara Chowdhury

Director

3.5 Human resources

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

Manager

and Executive

Non Executive

Total

above
Corporate

46

123

123

292

Chemicals Division

12

64

78

Pabna Plant

19

59

459

537

Dhaka Unit

14

61

168

243

Distribution

17

174

194

Headquarters

Field Force(SPL)

942

Field Force(Agrovet)

70

Field Force(Pesticide)

25

Total HR

84

272

988

2381

The Supervision Ratio

Criteria

Manager

Executive

Span of Supervision

Supervision

84

272

1:3

Executive

Non Executive

272

988

1:4

3.6 Activities of Key Functional Departments in SPL

As per the latest organogram SPL had 20 (twenty) functional departments for its
operation. The names of the departments are as follows:
1. Information Technology (IT) Department
2. Medical Services Department (MSD)
3. Product Management Department (PMD)
4. Sales Department
5. Distribution Department
6. International Marketing Department
7. Market Research and Planning Cell
8. Quality Management and Audit Dept.
9. Production Planning and Inventory Cell
10. Engineering Department
11. Production Department
12. Commercial Department
13. Personnel and Administration Department
14. Technical Services Department
15. Human Resource Training and Development Department
16. Quality Control Department
17. Quality Assurance Department

18. AgroVet Department

19. Accounts and Finance Department
20. Accounts (New Venture) Department
Organizational Structure

Managing Director

Marketing

Product Group

Senior

Services Officer

Manager

Manager

Manager

The following departments manage domestic marketing operation:

Brand

Brand


1. Product Management Department (PMD)
2. Sales Department
3. Medical Services Department (MSD)
4. Distribution Department
5. Market Research and Planning Cell

The following paragraphs describe the key functions of the above-mentioned

Departments:

Information Technology (IT) Department

The main functions of IT Department are as follows:

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

Medical Services Department (MSD)

The main functions of MSD are as follows:

Arranging clinical meeting with the physicians on different products

Provide answers to different queries of the physicians through mail or telephone

Arranging education programs for the rural medical practitioners

Publishing of medical journals
Arranging of special promotional campaign of different products

Product Management Department (PMD)

PMD is the core and centralized department for managing the total marketing effort.
Basically PMD performs the all planning, implementation of plans as part of marketing
management functions. The two key functions of PMD are as follows:
1. Introduction of new product into the market
2. Manage the existing portfolio to achieve the marketing objectives.
To this end PMD undertakes all relevant activities including the following:
1. Preparation of Marketing Plan.
2. Designing and development of promotional materials
3. Training of field forces
4. Feasibility study of new products
5. Management of regulatory affairs with Drugs Administration
6. Preparation of printed promotional material (literature/pad/brochure/show card
etc.).
7. All relevant coordination works with supplier/factory and procurement department
concerning machinery and raw materials that will be used to manufacture the
concerned brands.
Sales Department
1. Pay regular visit to the doctors; show the benefits of new existing products with
the help of promotional tools.
2. Monitor the competitors activities.
3. Handles initial product queries from doctors and product complain from the
market.
4. Receive sales order from the retailers /drug stores.
5. Coordination among different markets
6. Market rearrangement
7. Handling different problems of field forces

Distribution Department
Ensure smooth distribution of products to all over the country
Collection of payments from the customers
Performs functions as the representative of SPL at the depot level.
Maintenance of vehicles and depots
International Marketing Department
Exploration of new markets all over the world
Operating of export business in the different countries
Provide training to field forces in overseas countries
Provide all types of documents for registration of SPLs products in overseas countries.
Market Research and Planning Cell
Performing market survey on the Bangladesh Pharmaceutical Market
Regular prescription share analysis and report generation for SPL market share analysis.
Performing different market research work on different issues
Provide all kinds of support to Field Colleagues in effective planning in the market level.

Quality Management and Audit

Ensure the practices of Quality Management System (QMS) at every stage of operations
of SPL in full compliance with ISO 9001.
To monitor the activities to ensure compliance with defined quality policy at every stage
of business.
Develop process and instructions for continuous development of operations to increase
productivity.

Production Planning and Inventory Cell (PPIC)

Prepare the monthly production schedule of different products

Maintain the inventory status of different raw materials and packaging materials

Technical Services Department (TSD)

1. Provide technical support to QC, QA, Production and other departments with
regards to any kind of technical issues.
2. To procure new Raw Material and production and quality facilities in coordination
with Commercial Dept.
3. Development of formulation of new products
4. Selection of machinery and equipment including spare parts.
5. Coordination and follow-up of the designing and implementation of the Master
Plan of the factory. All matters related to development of factory facilities.
6. Handling various forms of product complaints from market, field forces, and
different departments.
7. Recipe development
improvement.

and

necessary

changes

in

formulations,

product

Current performance of SPL

Chapter
4

4.1 Corporate financial highlights

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

Tk.

1000 Million

2. Issued, Subscribed and Paid up Capital

Tk.

436.8Million

3. Reserve/Surplus (Retained Earnings)

Tk.

872 Million

4. Share Premium

Tk.

800 Million

5. Long Term Loans

Tk.

210 Million

6. Number of Shareholders (2006)

13,206

4.2 Corporate operational

results
The following three years financial data proves that SPL is operating through maximizing
the shareholders benefits.
(Figures in thousands)
2003-2004

2004-2005

2005-2006

(12 months)

(12 months)

(12 months)

Turnover (Gross)

3451523

4234244

4729743

Value Added Tax

450577

563433

663892

Turnover (Net)

3000946

3670811

4065851

Gross Profit

1081340

1435655

1466282

Net Profit before Tax

691636

905736

929604

Net Profit after Tax

573677

759448

764885

Paid-up Capital

300,000

300,000

300,000

Earning per Share

229.47

253.15

254.96

Dividend per Share

70.00

75.00

70.00

4.3 Output/Capacity utilization

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

Units

Production (000)

Categories

ageCapital Utilization

increase

2005-2006 2004-2005 (Decrease)

2005-20062004-2005

Tablets

Pcs

1829089

1736561 5%

105%

231%

Capsules

Pcs

295234

286350

3%

96%

119%

Liquids

Bottles 21210

16105

32%

118%

153%

Injectables

Pcs

23075

(42%)

74%

90%

ENT
Preparations

Phials 8651

10778

(20%)

192%

207%

Opthal

Phials 1083

966

12%

181%

116%

13325

Preparations
7

Dry Syrup

Bottles 4048

2634

54%

169%

88%

Inhalers

Can

298

148

101%

50%

Basic Chemicals Kg

219

201

9%

64%

59%

1262

1697

(26%)

67%

99%

10 Tablets-AgroVet Pcs

11 Powder-AgroVet Gm

34911

15252

129%

189%

127%

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

4.4 Dhaka Expansion

Despite numerous oddities and complex artifices usually associated with a state-of-art
plant, the management is in the final phase of implementation of the project with the
planning, supervisory and technical support form the consultants e.g. M/s Bovis Lendles
and Tanvec of UK and KUPPA collaboration of Thailand, though the target of
commissioning had to be revise / shifted a few times in the past. It may be appreciated
that the project in hand is only of its kind in the region with USFDA and EU
pharmaceutical manufacturing standards requiring highly rigid and unquestionable
quality of materials, workmanship, and performance. The process of implementation has
often suffered from various hazards of communication, transports, movements and
planned accomplishments was not achieved fully due to malfunctioning of ports,
airports, airlines, shipping services, etc. Due to carious reasons as are rampant in the
country since the project was taken in hand. Considering all these factors and the
technical complexities of such a project as well as non-availability of requir5ed manmachine-material in Bangladesh, the delay in implementation of the project would not be
termed unusual and abnormal. It may also be mentioned that the consultants also had
often failed to identify and consider every possible situation in Bangladesh. In spite of
these the unit is scheduled to start functioning by end 2001.

During the year 2005-2006, an amount of Tk. 807,016,104 has been invested on various
heads as detailed below:

Particulars

As on 31-03-05

As on 31-03-06

Increase

Land & Land Development

86,725,346

107,550,519

20,825,173

Building/Civil Work

318,783,360

812,111,406

493,328,043

Imported Plant & Machinery

348,897,963

576,923,068

228,025,105

Other Assets

6,315,634

19,954,395

13,638,761

Interest during Construction 5,577,622

47,501,489

41,923,867

Period
6

Unallocated Expenditures

14,689,009

23,964,161

9,275,152

Total Tk.

780,988,934

1,588,005,038

807,016,104

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

an estimated final cost of Tk. 1,830 million and commence production thereafter.
Square Dhaka Unit Project work was started from October 1996, which completed by end
of March 2000. After technical review and in the best interest of the project in order to
achieve quality work as State-of-the-art facility to meet the requirement of the
USFDA/MCA Good Manufacturing Practice the original project completion schedule had
to be extended.
The Dhaka Unit New Pharmaceuticals Production Facility at Kaliakoir is going to be one
of its kind in the country to face the challenge of free world market in the beginning of
new millennium.
The State-of-Art Facility incorporated certain basic requirement in the area of Purified
Water System. Floor Construction, HVAC System Process Equipment and Validation/
Qualification Documentation as stipulated by USA, EU and other developed countries.

4.5 Export market

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

Turnover (Gross)

Exports

% age of gross turnover

2005-2006

2,655,952

40,324

1.52%

2004-2005

2,422,785

44,361

1.83%

2003-2004

2,055,418

15,082

0.73%

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

4.6 Financial results

The operating financial results of the company for the year under report as compared to
the previous year are as follows:
Figure in thousand : BDT
2005-06

2004-05

2003-04

2002-03

2001-02

Turnover (Gross)

7,085,553 6,199,135 5,482,088 5,482,088 4,234,244

Value Added Tax

995,648

Turnover (Net)

6,089,905 5,332,047 4,721,552 4,065,851 3,670,811

Gross Profit

2,564,503 2,172,593 1,906,592 1,466,282 1,435,655

Net Profit before Tax

1,533,043 1,513,019 1,151,636 929,604

905,736

Net Profit after Tax

1,165,865 1,255,848 970,044

759,448

Shareholders Equity

6,402,015 5,568,790 4,590,142 3,851,098 3,273,714

Total Assets

9,298,987 7,907,933 6,021,497 5,164,320 4,526,115

867,088

760,536

663,892

764,885

563,433

Total Bank Borrowings

2,334,925 1,902,331 988,611

Total Current Assets

4,031,685 3,242,502 2,016,056 1,441,552 1,452,494

Total Current Liabilities

2,260,755 1,949,949 1,250,676 1,247,967 1,181,473

Current Ratio

1.78

1.66

1.62

1,070,163 1,098,874

1.16

1.23

(http://www.assignmentpoint.com/wpcontent/uploads/2013/03/profit-graph.jpg)
4.7 Concluding comments
Square Pharmaceuticals Ltd. has a very good working environment where the employees
get enough opportunity to show their ability and creativeness. Its communication
channel is superb. Informal channel of communication is very active. Many
interdepartmental issues are solved in informal meetings, often over a cup of tea.
Introduction of LAN has smoothened the process.

Every member of Square Pharmaceuticals Ltd. feels like he or she is a member of the
Square family. This family feeling is a big asset for this company. Most of the employees
are dedicated and motivated to work. Since good performance is always highlighted and
creative ideas welcomed people are eager to contribute their best.
Square Pharmaceuticals Ltd. believes in honesty in every phase of business. The
management promotes this idea to its workers. The image of the company is also good
all over the country. Customers all over the country recognize Square as a quality
company and an honest company.
Subject : Business (http://www.assignmentpoint.com/category/business), Organizational Behavior
(http://www.assignmentpoint.com/category/business/organizational-behavior), Pharmacy
(http://www.assignmentpoint.com/category/science/pharmacy), Science
(http://www.assignmentpoint.com/category/science) Category : Report
(http://www.assignmentpoint.com/tag/report)

Unmissable
Pharma News
Leading Pharma, Biotech & Generics
Industry news comment and analysis

Like

2015 AssignmentPoint.com

18k

Tweet

32

712