3. INDUSTRY ORIGIN
1970-1990
•Patent act 1970
•Domestic companies
•Product and export initiative taken
1990-2010
•Operations in foreign countries
•Liberalized market
•Generic drug
2010
•Patent filling by pharma players
•Key account management
•Contract sales organization
2010-
2015
• Price reduces to 80% in 2013
• FDI( 100%) on medical devices
• 10,500 manufacturing units
2015-
2020
• In union budget , FDI increased 74% in
existing pharmacy
• Pharma vision 2020
4. COMPANY ORIGIN
Started as partnership firm by Mr. Dilip Shanghavi in 1983 in
Vapi with just five products to treat psychiatry ailments. The
Company was incorporated as a partnership firm by Dilip
Sanghvi & his family to manufacture pharmaceutical
formulation at Vapi, Gujarat. It was converted into a public Ltd.
Company effective 1st March. The company was promoted by
Dilip Sanghvi. The Company specialises in selected therapeutic
segment to psychiatry, cardiology, neurology and
gastroenterology.
7. PROFITABILITY OF INDUSTRY
• Indian domestic pharmaceutical market turnover
reached rs 1.6 lakh crore ( US$21 billion in 2020)
from Rs 1 34000 crore ( 19.5 billion dollars) in 2019
• In 2018 the market turnover was 18.12 billion
dollars
• Gross profit margin in 2018 was 60.59
• 2019- 65.28
• 2020- 66.46%
• Net profit margin in 2020 was 11.27
• 2019- 13.54
• 2018- 8.98
11. SWOT ANALYSIS
•Increase in per capita
income
•Global demand for
generic
•Medical tourism
•Other low cost
countries affecting
demand
•Govt. regulations
changing
•Wage inflation
•Stringent pricing
regulations
•Poor transport and
medical infrastructure
•Very competitive
environment
•Low cost of skilled
manpower
•Access to large pool of
highly trained
scientists
•Strong marketing and
distribution network
Strength Weakness
Opportunity
Threats
15. Focus on expansion of its specialty branded business worldwide through
development of inhouse infrastructures and through partnerships in different
geographies.
Seek cost leadership, create sustainable revenue streams and balance profitability
and investments for future.
Will continue to focus on growing business faster than market.
More focus on human resource acquisition
Make more CSR activities to connect with people.
Innovative R&D partnerships and reshaping of marketing plans