STANDARD OPERATING PROCEDURE APPOINTMENT OF OTC DISTRIBUTOR PURPOSE The purpose of the SOP is to define guidelines to be followed towards appointment of distributor for OTC div ~ Lupin Life Consumer Healthcare. This documents will ensure that all checks and balances are in place before appointing OTC distributors. SCOPE This SOP shall be followed for appointment of OTC distributor anywhere in India and for conducting business for Lupin Life Consumer Healthcare division. RESPONSIBILITY Zonal Sales Manager & his team — Y Toidentify towns and plan desired number of distributors in a town to ensure expected outlet coverage. ‘Town geography in terms of outlet availability spread need to be evaluated. ¥ Toattach and submit all the necessary documents of the distributors which are mandatory for operating as distributor Number of distributors per town needs to be planned keeping in view the coverage feasibility in close vicinity to ensure coverage execution. Validate the credential of the distributor — Reputation in market ¥ Distributor should have strong relationship in chemist as well as in alternate channels in the area to ensure Lupin Life product availability Distributor need to operate on minimum 20 days of inventory. ¥ Distributor shall work on ROI (Return on Investment) model. Company official ZBM/ABM will evaluate RO! on ‘quarterty/ half yearly basis and will maintain 24% ROI on annual basis. ¥ Distributor shall maintain minimum 20 days of stock inventory. Large part of his investment will be in the form of stocks in his warehouse. This stock includes damage stocks, stock returns from the market etc or any form of paid up stock. Y Distributor Investment includes ~ Warehouse (to be calculated on our business ratio in his overall firm turn over) Office (to be calculated on our business ratio in his overall firm turn over) Stocks (Lupin Life stocks) Market Credit (Lupin Life products) Pending Claims with Company Damage stocks Delivery expenses (Stock delivery from distributor point to retailers) Should have team of Salesman, who will drive distribution depth and width in market place, Salesman cost and expenses will be part of ROI calculation ¥ Distributor shall execute all POBS in timely manners and should have required infrastructure like delivery vehicle ¥ Distributor should be working for leading OTC/ Consumer healthcare/ FMCG Company. 200000000 Dad HEALTH CARE Dis b $82 HATPARA RC SOUTH 24 PGS, WEST 8:Verifying the credentials of the distributor On receipt of application form for appointment of distributor along with all the supporting documents. Distribution team will verity various parameters leading for the need to appoint a distributor, Market information to be obtained w.r.t the area where the distributor is to be appointed and the ‘reas which will be serviced by him, Distribution team ensures that all the statutory documents ‘ike, Drug License, Sales tax registration certificates, assessment papers are checked, To ensure financial stability we need to go through 3 months bank statements provided by the distributor and look for the below mentioned parameters :- * Balance in the account ‘Instance of cheque bounce ‘Any penalty paid by the party = _ Instances of overdraft facility availed * Value of average business being done by the party UUst of documents to be submitted by the Distributors Below given is the list of documents which have to be ‘submitted by the distributor as the same are ‘mandatory to commence business with the company * Copies of valid Drug License ~ 208/218 * FSSA for food products * Letter of interest on distributor letter head "Sales Tax Registration Certificate ~ GsT * Last three month bank statement distributors * Copy of proprietorship / partnership deed * Incase of Pvt Itd obtain copy of incorporation, Workflow Distributor Appointment System (DAS) ‘ser Lupin SOP, point no 7 to raise the request for distributor ‘appointment.