14215226-ranbaxy-labortites

7/29/2019 14215226-RANBAXY-LABORTITES

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PRESENTATION STRATEGIC

MANAGEMENT AT

RANBAXY LABORATORIES LtdGROUP:-12

Prepared By:

Ragini Patel Roll No.34

Rakesh Patel Roll No.35

Rimple Patel Roll No.36


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RANBAXY LABORATRIESType : Public

Founded : 1961Headquarters : Gurgaon, Haryana, India

Key People : Tejandra Khanna, Chairman

Brian Tempest, Vice ChairmanMalvinder Singh, CEO

Industry : Pharmaceutical

Total revenue : Rs. 5,188 crore

Global revenue : Rs. 3,819 crore

Market cap : Rs. 15,077 crore


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Number of countries : 49

where it is present

Countries where it has : 8

manufacturing units

Revenue targeted by : Rs. 9,400 crore ($ 2 billion)

December 2007

Revenue targeted by : Rs. 23,520 crore ($ 5 billion)

December 2012

Employees : 1100 in R&D

Website : www.ranbaxy.com


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BOARD OF DIRECTORS

Mr. Tejandra Khanna Chairman

Brian.W. Tempest Vice Chairman

Mr. Malvinder Mohan Singh CEO & MD

Mr. Atul Sobti President

Dr. P.S Joshi Director

Ramesh L. Adige Executive Director


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Recent Acquisitions & Alliances

Terapia (Romania)

Be-Tabs (South Africa)

Allen (Italy)

Ethimed (Belgium)

Mundogen (Spain)

Zenotech (India)

Krebs (India)

Jupiter Biosciences*(Ind.)

Cardinal Drugs (India)

Auto-injector Tech.(USA)

* Subject to due diligence
http://images.google.co.in/imgres?imgurl=www.psconsortium.net/Images/alliances.jpg&imgrefurl=http://www.psconsortium.net/Alliances.html&h=200&w=320&prev=/images%3Fq%3Dalliances%2B%26start%3D40%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN


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PRODUCTS OFFERED

ANTI INFECTION G.I & NUTRITIONALS

CVS & DIABETES

CNS

NS AID & RELATED

ANTI ALLERGANTS

ANTI RETROVIRALS

UROLOGY

OTHERS


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MISSION:

To become research based International pharmaceutical company.

VALUES:Achieving customer satisfaction is fundamental to our business.Provide products & services of highest quality.Practice dignity and euity in relationship and provide

opportunities to our people to realise their full potential.Ensure profitable Growth and enhance wealth of the shareholders.Fosters mutually beneficial relations with all our businesspartners.

Manage our operations with high concern for safety andenvironment.Be a responsible corporate citizen


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VISION 2012:

Achieve significance business in proprietaryprescription products by 2012 with a strong

presence in developed markets.

ASPIRATIONS 2012: Significant income from proprietary products.

It also aspires to be amongst the Top 5

generic players. Aspire to be $ 5 billion company.


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SWOT ANALYSIS:

STRENGTH:

Presence in 23 of the 27 EU countries.

Low cost of production.

Efficient technologies for large number of Generics.

Large pool of skilled technical manpower both in India and abroad.

Increasing liberalization of government policies.

Well developed industry with Strong manufacturing Base.

Rich Bio-diversity.

Non Infrenging products of Active Pharmaceuticals Ingredients.

High standards of purity.


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Opportunities:

Growing incomes.

Growing attention for health.New diagnoses and new social diseases.New therapy approaches. Spreading attitude for soft medication (OTC drugs)

Spreading use of Generic Drugs. Globalization Easier international trading.New markets are opening. Supply of generis drugs to developed markets

Contarct manufacturing arrangements with MNCs.Niche player of global Pharmaceuticals and R&D


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WEAKNESS:

Fragmentation of installed capacities. Low technology level of Capital Goods of this section.Non-availability of major intermediaries for bulk drugs. Lack of experience to exploit efficiently the new patent regime. Low share of India in World Pharmaceutical Production (1.2% of

world production but having 16.1% of world''s population). Very low level of Biotechnology in India and also for New Drug

Discovery Systems. Low level of strategic planning for future and also for technology

forecasting.

Production of spurious and low Quality drugs tarnishes theimages of industry at home and abroad.

Production of Duplicate drugs Absence of Association between Institutes and Industry..


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THREATS:

Competition From MNCs

Containment of rising health-care cost.

High Cost of discovering new products and fewer discoveries.

Transformation of process patent to product patent.

Stricter registration procedures.

High entry cost in newer markets.

High cost of sales and marketing.

Non tarrif barriers imposed by developed countries.

Competition, particularly from generic products.

Switching over form process patent to product patent.

Drug price control order put unrealistic ceilings on productprices and profitability and preventa company from generatinginvestible surplus


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STRATEGIESRanbaxy is focused on increasing the momentum in the generics

business in its key markets through organic and inorganic growth

routes. Growth is well spread across geographies with focus onemerging markets The Company continues to evaluate acquisitionopportunities in India, emerging and developed markets to strengthenits business and competitiveness. Ranbaxy has forayed into high growth

potential segments like Biologics, Oncology and injectables. These newgrowth areas will add significant depth to the existing product pipeline.

The Globalization Strategy

Growth Strategy

Poised For Growth

API Development And Production

Dosage Form Development And Manufacturing

Contract Manufacturing


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Key Drivers of Growth Strategies:

Significant patent expiries

through 2011

Rationalizing Healthcare costs

- key priority for Governments

Increasing genericisation

0

5

10

15

20

25

30

35

2006 2007 2008 2009 2010 2011

France Spain Italy

Russia South Africa India

$ Bn

Valueof Drugs going off patent 2006 - 11

Source : IMS

Accelerating branded generics


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API Development and Production

Ranbaxy can provide Active Pharmaceutical Ingredients (API) for

companies that want to manufacture their own product or brandwithout incurring the time and costs associated with developingthe API, eliminating this step from the overall manufacturing

process. Key advantages of using Ranbaxy's vertically integratedsystem are:

Continuity of supply,Consistent quality of product ,Competitivecosts,Flexibility and resources to respond to changing marketdynamics

Dosage Form Development and Manufacturing

Ranbaxy's experience as a global manufacturer makes it an idealpartner to take on the complex process of solid or liquid dosageform development. Ranbaxy continually uses reverse engineeringto improve upon its development and manufacturing processes andenhance yield, with a focus on achieving greater cost efficiencies.


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Contract Manufacturing

To expand product lines with minimum

investment, Ranbaxy provides turnkey

manufacturing services, including API and

dosage form development, to allow companies to

focus on marketing and selling the product. Thisis an efficient way to diversify product lines and

increase profit margins, taking advantage of

Ranbaxy's manufacturing capabilities andexpertise.


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Marketing Strategies:

Marketing Strategies is the department focused primarilyon developing and executing strategies for the promotionand distribution of branded, generic and OTC productsfor RPI.

One of the key tasks for the department is to identifyopportunities in different markets and distributionchannels and pursue those to developing and establishnew relationships in the marketplace. Managed Care and

Internet marketing are a couple of key areas that thedepartment is looking to introduce into its ever-expanding service offerings.


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Threat of

Substitute

Products

Threat of

Substitute

Products

Threat ofNew

Entrants

Threat of

New

Entrants

Threat of

New

Entrants

Rivalry Among

Competing Firms

in Industry

Rivalry Among

Competing Firms

in Industry

Bargaining

Power of

Buyers

Bargaining

Power of

Buyers

Bargaining

Power of

Suppliers

Bargaining

Power of

Suppliers

Porters Five Forces

Model of Competition

Porters Five Forces

Model of Competition


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Industry Competition:Pharmaceuticals Industry is one of the most competitive

industrys in the country with as many as 10,000different players fighting for the same price.The topplayers in the country has only 6% market share and top5 players together has about 18% market share.

Competitors of Ranbaxy in India are:- Dr. REDDYs

CIPLA

NICHOLAS PIRAMAL

AUROBINDO PHARMA

GLAXO SMITH KLINE LUPIN

SUN PHRMACEUTICALS

CADILLA HEALTHCARE

WOCKHARDT


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Product Differentiation is one of the key factor for

competitive advantage in the Ranbaxy.

Entry barriers in pharma industry is low.

Competitive Analysis:-

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Ranbaxy GSK Reddy's Cipla Nicholas

Turnover

PBT

PAT

Market cap


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Bargaining Power of Suppleir:-

Ranbaxy depends on certain organic chemicals .The

chemical industry is again very competitive and

fragmented.The chemicals used in the pharma

industry are largely a commodity.The suppliers have

very low bargaining power and the Ranbaxy caneasily switch from their suppliers without incurring a

very high cost.


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Bargaining Power of Buyers:-

In Ranbaxy or in any Pharma industries the buyers

are scattered and they as such does not yeildpower in the pricing of the products.However

government with its policies,plays an important

role in regulating pricing through theNPPA(National Pharmaceuticals Pricing

Authority).


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Barriers to Entry:-Pharmaceutical Industry is one of the most easily

accessible industries for an entrepreneur in India.Thecapital requirement for an industries is very low socreating a regional distribution network is easy sincethe point of sales is restricted in this Industries in

India.However creating the brandawarenessfranchisee amongst the doctor is the key for the longterm survival.Also quality regulations bygovernment may put some hindrance forestablishing new manufacturing operations.

In recent times the advances made in the field of Bio-technology can prove to be a threat to synthetic

pharmaceutical industries.


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Thank You

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