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MEDco pharmaceuticals manufacturing firm
1. MedCo PHARMACEUTICAL
MANUFACTURING FIRM
MedCo PHARMACEUTICAL
MANUFACTURING FIRM
SICOP INDUSTRIAL COMPLEX, GANGYAL , JAMMU (J&K)
Submitted by:
RADHIKA GANDOTRA (45-MBA-15)
SAHIL SHARMA (49-MBA-15)
SATYA DEV SINGH (52-MBA-15)
TUSHAR GUPTA (65-MBA-15)
VIDHU ARORA (68-MBA-15)
Semester: 2
Section: B
Subject : Production and Operation Management
Submitted to : Mrs. Farah Choudhary
Semester: 2
Section: B
Subject : Production and Operation Management
Submitted to : Mrs. Farah Choudhary
2. WHY PHARMACEUTICAL ?WHY PHARMACEUTICAL ?
• The Pharmaceutical Industry is important because
it’s a major source of medical innovation.
• The Pharmaceutical In India is the world third
largest in terms of volume and stands 14th
in terms
of values.
• Huge progress is expected in the field of
pharmaceuticals
• Now a days people are facing HEALTH ISSUES, so
our motive is to produce High Quality Medicines
at affordable prices.
3. BUSINESS DESCRIPTIONBUSINESS DESCRIPTION
• An industrial unit in the small scale sector at SICOP, Industrial
Estate, Gangyal Jammu for the manufacturing of Oflox Tablet ,
Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.
• A partnership firm that will be registered under Indian
Partnership Act, 1932
• The installed capacity of the unit is envisaged at 1800 MT of Oflox
Tablet , Ciprovid Tablet , Glycomet Capsule , Glyciphage Capsule.
• It is being proposed to manufacturer Quality products as per the
specific standards which would be acceptable in the market.
• UNIT requires – necessary items of Plant and Machinery along
with auxillary and testing equipments.
• The proposed unit would be registered with the office of General
Manger, District Industries Centre, Jammu.
4. Vision & Mission of the CompanyVision & Mission of the Company
VISION MISSION
7. BRAND LOGO AND BRAND NAMEBRAND LOGO AND BRAND NAME
“LIVE LIFE WELL”
8. LOCATION JUSTIFICATIONLOCATION JUSTIFICATION
• While setting up of any industry, the prime factor to be taken into
consideration is
the location of the unit.
• We have decided to locate our factory at SICOP industrial Complex, Gangyal
Jammu where we can avail of the following locational advantages:
Easy availability of both skilled and unskilled labour. Labour can be easily
available at apt rates in nearby villages.
All the Infrastructural facilities of Power, Water, Banking, Transportation,
Warehousing, etc. can be easily available in SICOP because it is well developed
industrial area.
The main factor of location is the market of the product. As Medicines are
needed by hospitals and by many chemist shops
The cost estimates of land and site development are given in further slides.
9. Requirements for setting up a factory:Requirements for setting up a factory:
• Land:
location of the industry will be 10 kms away
from Jammu city (Gangyal).
• Clearance certificate
Sales tax/VAT, Central excise
Electricity clearance
Certificate of power availability
Consent for operation from Pollution Control Board
Water supply
Approval of construction activity and building plan
13. AREA IN (SQ. FT.)AREA IN (SQ. FT.)
SR.NO. PARTICULAR Sq. Ft.
TOTAL AREA 22400
1 OPEN AREA 7944
2 PRODUCTION DEPT 6480
3 GODOWN ( 2 ) 3312
4 QUALITY CONTROL AREA 1104
5 PACKING DEPT 960
6 MAINTENANCE AREA 680
7 WASTE MATERIAL STORE 300
8 PRODUCTION OFFICE 480
9 WATER SYSTEM AREA 564
10 REST ROOM 360
11 WASHROOM (2) 216
24. MARKET POSITION
• Marketing is an important area of management
in an industrial enterprise. The old concept of
marketing was product oriented whereas the
new concept is customer-oriented.
• It gives the company an upper hand in the
competition . The gap between the demand and
supply of manufacturing of medicines can be
targeted by the use of efficient marketing
strategies.
25. In what ways Marketing being done?In what ways Marketing being done?
• DIRECT MARKETING:- It is an form of advertising which allows business
to communicate straight to the customer, with advertising techniques that
can include cell phone text messaging, email, interactive customer. So we
can use these techniques to increase our client base and make that strong.
• MARKETING CONSULTANTS:- By hiring a Marketing consultant we will
improve our fuel filter business. It will also provide the expertise we need to
identify the most productive marketing channels and will help in raising the
brand profile within the industry.
• ONLINE MARKETING:- It is also called as Internet advertising. It is a form
of marketing which uses the internet to deliver the promotional marketing
messages to consumers. It is also a best form of marketing for fuel filters
businesses.
28. CERTIFICATESCERTIFICATES
Constitution of the unit
i. Deed of partnership
ii. General Power of Attorney
iii. Name & Address of the Partners
Iv. PAN Card of the Partners
Registration of industrial unit
Statement of Plant and Machinery
Sanction letter from the financial Institution / Banks for term loan & working
capital
Certificate from a Chartered Accountant regarding Sources of Finance
First bill(s)/money receipt of purchase of raw material
List of employees with name, address and designation
30. LAND & BUILDINGLAND & BUILDING
Sr.no. Particular Sq. Ft. Lease rate
(40 years)
Total
1 Total area 22400
(4 kanal)
Rs. 5,00,000/ kanal 20,00,000
Total Construction Cost @ Rs 400 per sq ft
• Constructed Area = ( 14456 x 400 ) = Rs. 57,82,400
open area cost @ Rs 200 per sq feet
• Open Area = (7944 x 200) = Rs. 15,88,800
Total Fixed Cost of Land + Building= Rs. 93,71,200
31. SOURCES OF FINANCESOURCES OF FINANCE
Sr.no. Details Amount Interest Interest Per
year
1 SBI bank loan 50,00,000 12.5% 6,25,000
2 Unsecured loan
(5x 10,75,000)
53,75,000 10% 5,37,500
Total 1,03,75,000 11,62,500
32. MACHINERYMACHINERY
Sr.no Name of machines Quantity Amount
Rs.
1 Cypter Machine 1 100000
2 Vibrator 4 400000
3 Cone Blender 4 120000
4 Mass Mixture 2 300000
5 Fluid Bed Dryer (FBD) 2 300000
6 Coating Pan and coating gun 2 200000
7 quality control instruments 250000
8 Water Tanks 1 500000
9 Pulveriser 1 360000
10 Compressing Machines 4 160000
11 Electrification and Installation 400000
Total Amount 29,90,000
Rs. 93,71,200 ( Land + Building) + 29,90,000 (Machinery) = Rs 1,23,61,200
= Rs. 1,24,00,000 (approx.)
33. COST OF MATERIAL
Sr no. Details Per Month Rate / kg Total(Rs.)
Per month
1 Ciprofloxacin 50 kg Rs. 1330 66,500
2 Metaformine 60 kg Rs 160 9,600
3 Glimapride 30 kg Rs 16000 4,80,000
4 Alenof 40 kg Rs. 1145 45,800
5 Metroniderote 50 kg Rs 850 42,500
6 Packing boxes
( 3” x 1” x 2.5”)
2 tablets
2000
Boxes
Rs . 3 / Box 6,000
7 Packing boxes
( 1” x 1” x 0.5”)
2 capsules 0
2000
Boxes
Rs. 2 / Box 4,000
Total 6,54,400
Annual cost of material is 6,54,400 x 12 = Rs. 78,52,800
34. SALARY & WAGESSALARY & WAGES
Sr.No. Details No. Of
Staff
Per head Monthly Yearly Rs.
1 Quality Check Officer 1 15000 15000 1,80,000
2 Production Manager 1 15000 15000 1,80,000
3 Capsule Production
Manager
1 15000 15000 1,80,000
4 Tablet Production
Manager
1 10000 10000 1,20,000
5 Peon 2 1500 3000 36,000
6 Skilled workers 4 3500 14000 1,68,000
7 Semi-skilled
Workers
4 2000 8000 96,000
Total 80000 9,60,000
35. WORKING EXPENSESWORKING EXPENSES
Sr.no Details Per month
(Rs.)
Per annum
(Rs.)
1 Electricity 10,000 1,20,000
2 Insurance 30,000 3,60,000
3 Repair & maintenance 15,000 1,80,000
DEPRECIATIONDEPRECIATION
Sr. no Details Rate Total (Rs.)
1 Machinery 10% 2,99,000
2 Building 5% 2,89,120
Total 5,88,120
36. ADMINISTRATIVE EXPENSESADMINISTRATIVE EXPENSES
Sr. no Details Monthly Rs. Yearly Rs
1 Accounts 1000 12000
2 Printing and stationary 500 6000
3 Postage and telegrams 500 6000
4 Others 200 2400
Total 2200 26400
SALES & DISTRIBUTION EXPENSESSALES & DISTRIBUTION EXPENSES
Sr. no Details Amount Rs.
1 Commission 40000
2 Advertising 60000
3 Salesman 30000
4 Compensation 15000
Total 145000
37. Medicine Cost per strip
of 10 tablet
Cost per box Monthly
production
cost
Annual
production
oflox 59 590 5,90,000 70,80,000
ciprovid 45 450 4,50,000 54,00,000
glycomet 20 400 4,00,000 48,00,000
Glyciphage 150 3000 30,00,000 3,60,00,000
5,32,80,000
Total sales : Rs 1,78,00,000
Closing stock : Rs 3,54,80,000
38. Particular Amount[ cr.] Amount [dr.]
Total sales 1,78,00,000
Less:
Cost of production :
Raw material
Packaging
Salary and wages
Electricity consumed
insurance
Repair and maintenance
Interest on loan
Depreciation
Administrative expenses
Sales and distribution expenses
77,32,800
1,20,000
9,60,000
1,20,000
3,60,000
1,80,000
11,62,500
5,88,120
26,400
1,45,000
Gross profit 640518
Less tax @ 35%
Net profit 39,82,017
39. 1. Gross profit ratio:
GPR = gross profit x 100
Net sales= 61, 26,180 / 15000000 * 100 = 40.95%
2. Net profit ratio:
NPR = net profit x100
Net sales= 39, 82,017/ 15000000 * 100 = 26.54%
40. FUTURE SCOPE AND EXPANSIONFUTURE SCOPE AND EXPANSION
• As of now the reach of our company is lie in north
India but we want to expand our business. Our dream
is to take the business to all India level. Selling our
business does not feature in our future plans. We
intend to establish our company as the largest
pharmaceutical manufacturer of the country. As of
now the parts which we are importing from others in
future we intend to manufacture those parts by
ourselves.
• Another ways like expanding our products is the
internet or by establishing one or more factory
outside Jammu.