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ORGANISATION

An organisation is a social arrangement which pursues

collective goals, controls its own performance, and has a

boundary separating it from its environment. The word isderived from the Greek word organon, itself derived from the

better-known word ergon. An organizational structure is a

mainly hierarchical concept of subordination of entities that

collaborate and contribute to serve one common aim.

Organizations are a variant of clustered entities. An

organization can be structured in many different ways and

styles, depending on their objectives and ambience.

Organizational structure allows the expressed allocation of

responsibilities for different functions and processes to different

entities such as

the branch, department,workgroup and individual. Individuals in

an organizational structure are normally hired under time-

limited work contracts or work orders, or underpermanent

employment contracts or program orders.

INDUSTRY PROFILE

Ayurveda is a system of traditional medicinenative to

the Indian Subcontinent and practiced in other parts of the

world as a form of alternative medicine. InSanskrit, the word

Ayurveda consists of the wordsyus, meaning 'life', and veda,

meaning 'related to knowledge' or 'science' Evolving throughoutits history, Ayurveda remains an influential system of medicine

inSouth Asia. The earliest literature of Ayurveda appeared

during the Vedic period in India. The Sushruta Samhita and

the Charaka Samhita were influential works on traditional

medicine during this era. Ayurvedic practitioners also identified

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a number of medicinal preparations and surgical procedures for

curing various ailments and diseases.

Ayurveda is the science of life. Unlike all other branches

of medicine, Ayurveda observes a patient in entirely onphysical, mental and spiritual levels. While treating diseases it

is well established by the modern medicine beyond any doubt

that ones mind has a very strong influence on his body. With

this enormous understanding on human mind, body and spirit,

Ayurveda offers treatment for almost all known diseases.

Ayurveda is considered to be a form ofcomplementary and

alternative medicine (CAM) within the western world, where

several of its

methods, such as the use of herbs, massage, andYoga as

exercise or alternative medicine, are applied on their own.

Ayurveda is grounded in a metaphysics of the

'five great Elements [; earth, water,fire, air and ether)all of

which compose the Universe, including the human body.

Ayurveda deals elaborately with measures of healthful living

during the entire span of life and its various phases. According

to Ayurveda, these three regulatory principles Doshas

(literaly that which deteriorates - )are important for health,

because when they are in balanced state, the body is healthy,

and when imbalanced, the body has diseases. Ayurveda hold

that each human possesses a unique combination ofDoshas.

In Ayurveda, the human body perceives attributes ofexperiences as 20 Guna ( meaning qualities) It is believed that

building a healthymetabolic system, attaining good digestion,

and properexcretion leads to vitality. Ayurveda also focuses on

exercise, yoga, meditation, and massage. Thus, body, mind,

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and spirit/consciousness need to be addressed both

individually and in unison for health to ensue.

Ayurveda is a science which intended to benefit the

entire world. In ancient India, It was considered as a greatscience in touch with Indian philosophical thoughts. It utilizes

wealth of nature for increasing the natural resistance of the

body. Ayurveda favours administration of natural raw drugs

(plants/animal/mineral/metal/marine origin) and their

preparations. Generally Ayurvedic medicines are non toxic, well

tolerated and estimated that Rs 500 crores. The field of herbal

products in international market is fast growing.

Eight disciplines of Ayurveda treatment, called

Ashtangas:

y Internal medicine (Kaaya-chikitsa)

y Paediatrics (Kaumarabhrtyam)

y Surgery (Shalya-chikitsa)

y Treatment of diseases above the clavicle(Salakyam)

y

Demonic possession (Bhuta vidya):Bhuta vidya hasbeen called psychiatry.

y Toxicology (Agadatantram)

y Prevention diseases and

improving immunityand rejuvenation (rasayana)

y Aphrodisiacs and improving health of progeny

(Vajikaranam)

COMPANY PROFILE

The Pharmaceutical Corporation (I.M) Kerala limited,

Thrissur popularly known as OUSHADHI is an Ayurvedic

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medicine manufacturing company fully owned by Government

of Kerala. Oushadhi is the largest producer of Ayurveda

medicines in public sector inIndia. It is one among the few

public sector companies, consistently making profit since1999.It is a GMP and ISO 9001 2000 certified company. It

produces around 500 Ayurvedic formulations both classical

and proprietary. Oushadhi is directly controlled by Health and

Family Welfare Department of Kerala State

Government.Oushadhi was originated as Sree Kerala Varma

Govt. Ayurvedic Pharmacy in 1941 at the instance of His

Highness the Maharaja of Cochin, for the supply of medicines

to Govt.Ayurvedic Hospitals in Thrissur and erstwhile princely

family of Cochin State. In 1975 , it was renamed as The

Pharmaceutical Corporation (I.M.) Kerala Ltd, Thrissur.

Oushadhi is the sole supplier of medicines

to Government AyurvedaHospitals and Dispensaries in Kerala.

It is also a supplier of Ayurvedic medicines to Government

Hospitals and dispensaries of other states like Madhyapradesh,

Chattisgarh, and Pondicherry etc.

Profile

* Largest producer of Ayurveda medicines in public sectorin India* One among the few Public Sector companies, consistentlymaking profit and paying dividend to Government of Keralasince 1999.

* Supplies medicine to Government of Kerala for thedistribution to common man through ISM Dept.* A GMP and ISO 9001-2000 certified company.* Produces 450 Ayurvedic formulations - both classical andproprietary.* Sole supplier of medicinesto Government AyurvedaHospitals and proprietary.

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* Supplier of Ayurvedic Medicines to Government Hospitalsand dispensaries of other states like Madhya Pradesh,Chattisgarh, Pondichery, Rajasthan, Orissa, New Delhi etc.* Caters to the need of public through a vast network of 610

agencies spread all over the nation.* Governed by dedicated board of directors.

LOCATION

Registered Office: Shoranur road, Thrissur, Kerala,South India.

Factory: Kuttanellur, 8 Kms from Thrissur Town.

Office: Kuttanellur, 8 Kms East from Thrissur Town.

MILESTONES

1941Commenced by His Highness, The Maharaja of Cochin as

Sree Kerala Varma Ayurveda Pharmacy.

1959 Converted into Co-operative Society viz Sree Kerala VarmaAyurveda Pharmacy and stores Ltd.

1975 - Registered as a Company under Indian Companies Act and

renamed as The Pharmaceutical Corporation (Indian

Medicines) Kerala Ltd. Thrissur.

1991 - Commissioned modern manufacturing unit at Kuttanellur and

shifted the factory to the new premises.

2004 - Started a new Panchakarma Hospital and ResearchInstitute at Thrissur.

2007 - The entire Office shifted to the Factory premises at

Kuttanellur.

2008 - Commenced full - fledged R&D Center at Kuttanellur and

regional distribution unit at Kannur.

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VISION

A leading world class Ayurveda Industry in the country by 2020.

DEPARTMENTS

y Administration

y Human Resources

y Finance & Accountsy Purchase

y Production

y Marketing

y Quality Control, Research & Development

y Maintenance

y Panchakarma Hospital & Research Centre

AdministrationProvides support and service for the activities of the Board of

Directors

Coordination of Bank branch activities and provision of

interaction between branches and the main office.

Expanding and reorganization of Bank market network.

To create appropriate condition for efficient operation of

structural Bank subdivisions.

Currency control of Bank branches.

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Control of money transfer in foreign currency.

Coordination of construction, maintenance, rent and keeping

buildings issues.

Coordination of issues as logistical support of Bank activities.

Human Resources

The Human Resources Management (HRM) function includes a

variety of activities, and key among them is deciding what

staffing needs you have and whether to use independent

contractors or hire employees to fill these needs, recruiting and

training the best employees, ensuring they are high performers,

dealing with performance issues, and ensuring your personnel

and management practices conform to various regulations.

Activities also include managing your approach to employee

benefits and compensation, employee records and personnel

policies. Usually small businesses (for-profit or nonprofit) have

to carry out these activities themselves because they can't yet

afford part- or full-time help. However, they should always

ensure that employees have -- and are aware of -- personnel

policies which conform to current regulations. These policies

are often in the form of employee manuals, which all

employees have.

Finance & AccountsThe finance department of a business takes responsibility for

organising the financial andaccounting affairs including the

preparation and presentation of appropriate accounts, and theprovision of financial information for managers. The main areas

covered by the financial department include:

y Preparation of budget, appropriation of accounts, re-

appropriations, surrender and savings

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y Control of expenditure and ways & means position.

Audit

y Treasury administration

y

Administration of Taxes i.e. Sales Tax, Entertainment Tax,Luxury Tax and Entry Tax etc.

y Service Conditions including Freedom Fighters Pensions.

y Resource mobilization through loans, Institutional Finance,

Small Savings, Credit and Investment and public debt.

y Financial concurrence and advice.

y Compilation of Codes, Rules and procedures concerning

financial transactions and having bearing on State finance and

their implementation.

y Safety and investment of funds from consolidated funds,

contingency fund and public account.

y Contract, recovery and refund of revenue etc

Purchase DepartmentThe Purchasing Department is responsible for coordinating the

acquisition raw materials and other needs of the company and ensuring

that they are bought at the minimum cost and offer value for the money

spent. The purchase department id headed by purchase manager who is

assisted by assistant manager. This department is responsible for

purchasing all the goods and raw materials needed for Oushadhi; hence

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they are following a centralized purchasing system. They purchase raw

materials through open tender.

System Followed For Purchase Of Raw Materials.

The most important function of purchase department ispurchasing of raw materials. They purchase raw materials through

tenders. The procedure for purchase starts when the purchase

department receives a request from any department for purchase of

goods. Then the purchase department invites quotations from various

suppliers of that particular product. After careful analysis of the received

quotations they select the quotation which has the minimum price and

place order to them mentioning the quantity and quality of the goods

required.

When the goods are received they are examined by set of doctors to

check whether the goods are up to the quality ordered. If the goods are

not up to the required quality they will be sent back. Good quality raw

materials will be received and stored in the stores and will be issued to

the concerned department which ordered the goods according to their

request of FIFO basis. Finally after receiving the goods the purchase

department initiates the accounts department to make payment to the

supplier as per their terms in their quotation.

Features OfPurchase Department

y Purchase more than 600 varieties of raw materials through open tender.

y Standardized procedure to verify the variety of raw materials.

y More than 60% raw materials comes from the forest.

y Annual purchase of 7 9 crores.

y Buy back agreement with farmers.

y Maintaining data base of raw materials.

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Productiony Produces 450 Ayurvedic formulations - both classical and

proprietary.

y Qualified and experienced doctors to supervise productions.

y Production of medicine as per GMP norms.

y Quality control to ensure quality of raw materials and finished goods.

y Modern dosage forms like, tablets, ointments, etc are introduced.

1. The production and planning department will

setstandards and targets for each section of the production

process. The quantity and quality of products coming off a

production line will be closely monitored. In businesses

focusing on lean production, quality will be monitored by

allemployees at every stage of production, rather than at the

end as is the case for businesses using a

quality control approach.

2. The purchasing department will be responsible for providing

the materials, components and equipment required to keep the

production process running smoothly. A vital aspect of this role

is ensuring stocks arrive on time and to the right quality.

3. The stores department will be responsible for stocking all the

necessary tools, spares, raw materials and equipment requiredto service the manufacturing process. Where sourcing is

unreliable, buffer stocks will need to be kept and the use of

computerised stock control systems helps keep stcoks at a

minimal but necessary level for production to continue

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unhindered.

4. The design and technical support department will be

responsible for researching new products or modifications toexisting ones, estimating costs for producing in different

quantities and by using different methods. It will also be

responsible for the design and testing of new product

processes and product types, together with the development of

prototypes through to the final product. The technical support

department may also be responsible for work study and

suggestions as to how working practicescan be improved.

5. The works department will be concerned with the

manufacture of products. This will include the maintenance of

the production line and other necessary repairs. The works

department may also have responsibility for quality control

and inspection.

Marketing

Marketing involves a range of processes concerned with finding

out what consumers want, and then providing it for them.

There are two main types of market

research:Quantitative research involves collecting a lot ofinformation by using techniques such as questionnaires and

other forms of survey. Qualitative research involves working

with smaller samples of consumers, often asking them to

discuss products and serviceswhile researchers take notes

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about what they have to say. The marketing department will

usually combine both forms of research.

The marketing department will seek to make sure thatthe company has a marketing focus in everything that it does. It

will work very closely with production to make sure that new

and existing product development is tied in closely with the

needs and expectations ofcustomers.

Quality Control, Research & Development

R&D is the key for any pharmaceutical industry. Although there

is lot of knowledge in the ancient text of Ayurveda R&D is

necessary to make it suitable in todays context.

Every product of Oushadhi that is manufactured is preliminarly

tested and developed here . R & D department has

miniaturized forms of all sorts of commercialized equipments .

They have recently published a magazine called Oushadhi

Sandesh. It has constructive articles and also contains Articles

about Quality Control like Instant Checks for adulteration .

The magazine also contains various information about other

departments also.

R&D has a special economic significance apart from its

conventional association with scientific and technological

development. R&D investment generally reflects a

government's or organization's willingness to forgo current

operations or profit to improve future performance or returns,

and its abilities to conduct research and development.Although R&D department had been existing in the company

a separate existence was formed only in 2008.

Maintenance departmenty Procurement of plant and machinery.

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y Up keep and maintenance of all plant and machinery.

y Construction of civil work.

y Power and water supply.

y

Effluent treatment.

y Maintenance of campus.

Panchakarma Hospital & Research Centrey Located at Shornur Road, Thrissur.y Started functioning on 18.10.2004.

y Both in patient and out-patient section.y 30 bedded modern hospital.y Round the clock service of 4 Ayurvedic Doctors.y Average number of patients per year-2000.y Average turnover from Hospitals, Rs. 18 lakhs/year.y Average turnover from pharmacy Rs. 6 lakhs.y Clinical trial cell.y Famous for Panchakarma therapy.

Medical Plant Cultivation

y Two medicinal plant nurseries at Kuttanellur and Pariyaram,supported by SMPB.

y Annual distribution of 3 Lakh seedlings of 20 leading species.y Cultivated 15 acres of land at Kuttanellur with 20 species of

medicinal trees species.y Raised medicinal trees on 50 acres of land at Pariyaram,

Kannur District.y Raised medicinal plant gardens in 150 selected schools in

Thrissur and Kannur Districts of Kerala.

OUSHADHIIS A 100% GOVERNMENT OF KERALA OWNED AYURVEDIC MEDICINE

MANUFACTURING COMPANY SITUATED IN KUTTANELLUR,

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NEAR OLLUR, THRISSUR CITY, KERALA STATE. DIRECTLY CONTROLLED BY

HEALTH AND FAMILY WELFARE DEPARTMENT OF KERALA STATE GOVERNMENT, IT HAS

WIDENED ITS SERVICE TO AYURVEDIC HEALTH CARE BY ESTABLISHING PANCHA KARMA

HOSPITAL AND RESEARCH INSTITUTE AT THRISSUR WITH MOST MODERN

AMENITIES.

STRENGTHS Established brand image

Continuous government support.

Huge market demand.

Dedicated work force.

CORE VALUES

* Mutual trust and respect* Customer satisfaction* Quality control* Professional ethics* March with time

WEAKNESSThe absence of certain strengths may be viewed as a weakness. For

example, each of the following may be considered weaknesses:

Infancy stage of research & development Department.

Lack of modern technology in R&D compared to private sector Ayurvedic

medicine manufacturing companies.

Strikes by trade unions, even though strikes are less they hinder

production.

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Procedural delays due to government interventions.

OPPORTUNITIESy Monopoly of medicine supplier to governmentAyurveda Hospitals and

dispensaries in Keralay Raising interest towards Ayurveda

y Huge market demand.

y They are the market leader in manufacturing and sale of Ayurvedic

medicines.

y Support from various organisation like state forest department SC/ST

federation etc and general public.

THREATSy Difficulty in standardization, and validation of Ayurvedic medicine as

per the modern trials for selling larger market outsidey Usually people do not prefer Ayurveda for serious diseases.

y Presence of fraud Ayurveda doctors caused a black mark for this

industry.

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ORGANISATIONAL STRUCTURE

CHAPTER 2

DATA PRESENTATION AND ANALYSIS

THE PHARMACEUTICAL CORPORATION (IM)

KERALA LTD OUSHADHI

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The Pharmaceutical Corporation (IM) Kerala Ltd popularly

known as Oushadhi is a fully owned Government owned

Ayurvedic medicine manufacturing company. It was originated

as Sree Kerala Varma Government Ayurvedic pharmacy in

1941 at the instance of His Highness The Maharaja of Cochin,

for the supply of medicines to the Government Ayurvedic

Hospitals in Thrissur and erstwhile princely family

ofCochin state. In 1959, it was converted and registered as a

co-operative society & Stores Ltd No: 4318 Thrissur.

On 8th

September 1975 it was incorporated as acompany under the Indian companies Act ,1956 and renamed

as The Pharmaceutical Corporation (Im) Kerala Ltd Thrissur

and its operation started on 10thJuly 1976 , with the take over of

business of SKVAC pharmacy.

Objectives of Oushadhi

Manufacturing and Marketing of high quality Ayurvedicmedicines.

Research and Developmental studies on Ayurvedicformulations.

Maintenance of medical plants herbarium and Cultivation.

Health care and clinical Research programme.

Implementation of Government of Kerala Health careprogramme

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Propagation of Ayurveda and connected systems all over theworld.

Promoting Ayurvedic education and establishing institutions forthe same.

Implementation of Community Development Programmes withspecial reference to women and child Development

CHAPTER 3

SOCIAL RESPONSIBILITY OF OUSHADHI

Business which is the hard core of the economic system has

realised and has been made to realize by social, economic and

political forces that it has social obligations to fulfill besides

ensuring its own existence through profit an activity.

There are various objectives of business in it and

important objective is the public or social responsibility of a

business enterprise. This is an objective which cannot be

stated in as tangible terms as others and yet recent

development in our economy as well as others brings out its

crucial importance. It will be useful to go into formed and

persuaded business men to consider their responsibilities and

the conditions which were favourable to the development of

businessmens concern with social responsibilities.

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About Company

Some of the important them are:

i) The development of professional managerial class with a differentmotivation and point of view due to the separation of ownership

from management in corporate enterprise.

ii) The change in public opinion about role of business in modern

society

iii) The increased complexity of the decision making processors

in which various points of view and diverse interests are

expressed.

iv)The threat of public regulation or public ownership

v) The pressure of Labour movement

vi)The development of business education and contact with

government and its problems.

vii) The development of moral values and social standards

applicable to business man

viii) Recognition of human factors contributing to the long- run

interests of the business people

Some of specific responsibilities to various sections are:

a) The Enterprise and Shareholders

In the first place, corporate business must provide a fair

return on capital to shareholders and must provide them

regular, accurate and full information about the working of the

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enterprise. The shareholders should also meet their

obligations by envicing been interest in company affairs.

1) It must ensure the safety of the funds invested by shareholders

or owners

2) It must ensure effective utilization of funds provide by them.

3) It must provide fair and reasonable return on investment in long

run

4) To ensure full participation of owners in management of the

affairs of the concerns.

5) To provide a fair and honest report of business operation

6) To offer reasonable appreciation of capital through growth,

innovation and diversification of business activities.

b) Enterprise and Workers

It is the responsibility of the management to provide

opportunities to the workers for meaningful work. Also, the

management of a business should try to win the cooperation of

the workers by creating the right conditions in the enterprise.

The business enterprise owes it to the workers unions, accept

the workers right to associate and assure a fair wage and a fair

deal of to the workforce. The workers need to be helped to

develop their own leadership qualities in unions through

education. Social security, profit sharing, fair promotions,

proper grievance settlement and employee welfare are some of

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the other well recognized responsibilities of business firm to

their employees.

1) Provide recreation, sanitation and medical facilities

2) To ensure job security for the workers

3) To maintain cordial relationship with employees

4) To ensure fair opportunities to workers for their promotion,

growth and development.

5) Provision and recognition of genuine trade union rights of

workers

6) Proper steps should be taken to ensure social security.

7) It must ensure fair and courteous treatment to the workers.

8) To recognize the needs of workers.

9)

Recognize thee collective targaining and encourage it.

10) To ensure protection of workers from occupational hazards.

11) Recognize workers as human resources and treat them as

asset instead of a factor of production.

12)A grievance handling procedure should be established for the

redressal of the grievance of employees.

C. Enterprise and the Consumers

A business enterprise has the responsibility of providing

the goods and services needed by the community at most

reasonable process. It must guard against adulteration, poor

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quality, lack of service and courtesy to customers, misleading

and dishonest advertising etc. The consumers also need

protection against monopoly and restrictive trade practices.

Such protection can be provided best if business learns to play

its part of the game with fairness and liberalism.

1. To encourage the formalion of association of consumers for

their satisfaction and welfare.

2. To ensure a fairly wide distribution of products among all

sectors of the consumers.

3. It must guard against adulteration, poor quality hoarding, black

marketing etc.

4. Proper after sales service to the customers should be ensured.

5. It must guard itself against obscene and misleading

advertisement

6. Prompt services to customers must be ensured.

7. Exploitation of consumers should be avoided.

8. Consumers should be given adequate freedom to select the

products which they require

9. Heavy burden in the form of high process should not be

imposed on consumers.

10. Introduction of new products should be made known to

the consumers.

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D) Enterprise and Community

An enterprise must respect the two any pay taxes

regularly and honestly. It must behave as a good citizen and

take care to avoid bad affluent, smoky chimneys and to devote

attention to housing and workers living conductions. It has the

responsibility of maintaining proper relations with the

community through press and meetings.

1. To minimize all kinds of pollution.

2. To ensure safety of the people who are living near thebusiness establishment.

3. To develop a good relationship with community.

4. To channelise the resources of the society in production lines

and make their best use.

5. To give cash donations and provide jobs to the disabled person

and widows.

6. It should rehabilitate the people who are suffered due to the

business operations.

7. It must try to create new opportunities for employment to solve

unemployment problems.

8. National resources must be utilized efficiently and without

wastage.

9. To help the community by opening schools, dispensaries,

chartable institution etc.

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10. To refrain from indulging in anti social business

activities.

11. To organize the cultural and religious function for the

community, for improvement of society

12. To sustain a congenial and neatly environmental

conduction.

E) Enterprise and Government

1. Firms should pay tax in time. It should not try to indulge or

avoid tax.

2. The main responsibility of the business is to obey to laws by

government.

3. It should invest their surplus funds, in infrastructure bonds,

government bonds etc.

4. It must not allow unfair trade practices.

5. It must co-operate with government to implement social

activities.

6. Discourage unhealthy practices like influencing government

officials to carry, favours obtaining license.

They should not try to indulge in malpractices like hoarding,

black marketing to create artificial shortage.

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BRANCHES

Arogyabhavan, Thiruvananthapuram

Poojappura, Thiruvananthapuram

Pariyaram, Kannur

SUPPORTERS

Govt. of Kerala

Ayush Department of Govt. of India

ISM Dept. of Govt. of Kerala

General Public

National Medicinal Plant Board

State Forest Departments

Reputed organizations like KFRI, TBGRI,

Agl. Universities, Ayurveda Research Centres.

SC/ST Federation

Wholesale dealer of Raw materials.

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Findings and Suggestions

Oushadhi supplies saplings of medicinal plants to the public atconcessional rate.

Provides medicinal plants to schools and colleges at free ofcost.

Provides technical assistance for the extensive cultivation ofmedicinal plants.

Effective system of pollution control system has been adopted.

Manufacture more than 400 Ayurvedic formulations for thewellbeing of the public.

The whole manufacturing activities are under the direct andexpert supervision of qualified Ayurvedic physicians.

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Quality medicines are made available to public at reasonableprices.

Meets the entire medicine requirements of GovernmentAyurvedic hospital and dispensaries.

Meets public demands through network of exclusive Oushadhidealers and agents.

Distributionship started in Karnataka, Chennai and A.P.

CONCLUSION

RECOMMENDATIONS AND SUGGESTIONS

More promotional activities must be done including socialresponsibility.

Oushadhi must go for a diversification of programmes.

More emphasis must be given for community medicines.