GROUP 14

EPGCMM-12-014 Sachin Vijayan (sachin12mm@iimk.edu.in) CASE –

EPGP-11-011
EPGP-11-063
Anala Tendolkar (anala11a@iimk.edu.in)
Mohanish Rao Ghorpade (mohanish11a@iimk.edu.in) PARKIN
EPGP-11-116
EPGP-11-173
Subhasish Roy (subhasish11a@iimk.edu.in)
Mackson Joseph Mathew (mackson11b@iimk.edu.in) LABORAT
EPGP-11-221 Shiv Shankar Gautam (shiv11b@iimk.edu.in)
COMPANY BACKGROUND

 Launched in 1987 with a capital of US $1Million and 10 employees

 Antibiotic – Cefokin launch in India – Within 1 years of operation

Subsequently emerged among the top 50 fastest growing pharmaceutical

companies of India with an employee strength of 800.

Aiming an net revenue of US $500 Million in 2012

INDIAN PHARMACEUTICAL
INDUSTRY
 CAGR of more than 15% over last 5 years

 Current (2012) sales of $11 Billion and estimated to reach $74 Billion by 2020.

Factors that has contributed to high increase in market share and higher market
penetration are:

low drug penetration, Rising middle class, Increasing spending on the health care
infrastructure, medical insurance, changing demographic patterns etc.
1. CRITICALLY REVIEW THE SALES
PERFORMANCE. HAVE APPROPRIATE
TARGETS BEEN SET FOR EACH ZONE?
Zone Target Jan-Sept Jan -Sept % Target
growth in 2011 2012 growth set in The distribution of the sales target over
% over Actual Target Jan-Sept 2012 the regions is not even, with the West
2011 (US$ (US$
million) million)
over actual of
Jan-Sept 2011
having the highest share of 25% growth
over the previous year, followed closely
by North and East, and the Central and
North 24.2105263 69 88.5 28.26086957
2 South regions have the least targeted
East 21.4285714 64 76.5 19.53125 growth. The reason for this is not clearly
3 stated in the case.
South 16.3265306 76 85.5 12.5
1
West 25.6410256 57 73.5 28.94736842
4
Central 10.7692307 45 54 20
7
Total 20 311 378 21.54340836
Zone Target Jan-Sept Jan -Sept % Target
growth in 2011 2012 growth set in
% over Actual Target Jan-Sept 2012
2011 (US$ (US$ over actual of The target sales growth of 2012
million) million) Jan-Sept 2011 over 2011 figures for the and
the target sales growth of Jan-
Sept 2012 over 2011 do not
North 24.2105263 69 88.5 28.26086957 match.
2
While the target from Jan-Sept
East 21.4285714 64 76.5 19.53125 for North, West and Central
3
regions are more than the target
South 16.3265306 76 85.5 12.5 for the year, the target from
1 Jan-Sept are lesser than the
West 25.6410256 57 73.5 28.94736842 East and South regions.
4
Central 10.7692307 45 54 20
7
Total 20 311 378 21.54340836
 Zone Jan -Sept 2012 Jan-Sept 2012 Actual sale achieved The actual sales achieved w.r.t. the target
Target Actual compared to target sales in all the zones from January to
(US$ million) (US$ million) in % (Jan-Sept 2012) September 2012 are close to 90%
North 88.5 77 87.00564972
East 76.5 69 90.19607843
South 85.5 83 97.07602339
West 73.5 65 88.43537415
Central 54 50 92.59259259 In spite of the not achieving the target
Total 378 344 91.00529101 sales, managed to exceed the growth
rate

Zone Target growth Jan-Sept Jan-Sept Growth of Jan-

in % over 2011 2011 2012 Sept 2012 over The actual growth rate in Jan-Sept 2012
Actual Actual Jan-Sept 2011
w.r.t. Jan-Sept 2011 is 10.6%
(US$ million) (US$ million)
This shows a very poor performance of all
North 24.21052632 69 77 11.5942029
the regions except Central, when compared
East 21.42857143 64 69 7.8125 to the overall target growth of 20%
needed to be achieved.
South 16.32653061 76 83 9.210526316
All the regions have not been able to come
West 25.64102564 57 65 14.03508772 close to achieving the target growth rate,
with an exception of Central region which
Central 10.76923077 45 50 11.11111111
has exceeded the target by ~1%, with the
Total 20 311 344 10.61093248 rest managing to achieve less than half the
targeted figures.
THANK YOU