EXECUTIVE SUMMARY An organization study has been conducted by me at Sangrose laboratories, Kochalumoodu, Mavelikara subject to MIB course.

Sangrose laboratories is a pharmaceutical company privately owned and operated by Mr. C.K Alexander who is an entrepreneur research chemist. The company is well known as it is the only producer of Clofazimine. I planned to chose this company to conduct my study as Sangrose is a major producer of basic drugs and also deals with simple pain killers to complex cardiac compounds. My aim was to conduct this study in a company which owns several functional departments and which can offer me good industry interaction and experience. I could make me analyze and study in depth how an organization functions, how systematic activities are to be undertaken for the its smooth functioning. It gave me an opportunity to compare the theoretical practices with the practical situations. The study also aimed to understand the different departmental functions, interact with the managers at different levels, importance of technical advancements and innovations, importance of communication, etc.

1|Page

CHAPTER 1 INTRODUCTION An industry produces goods and services for human consumption inorder to satisfy human wants. The entire range of human activities in which men and women play a dominant role is measured and is economically valued in terms of money. Industrial sector is one which helps in the overall development of a country in terms of infrastructure as well as economic. Industrial development helps to measure the richness of a country. Industry is divided into four broad segments such as: 1. Manufacturing 2. Extractive 3. Exchange 4. Service This study facilitates in understanding the size, geographic distribution, employment, production, sales, and economic condition of the pharmaceutical industry. SANGROSE LABORATORIES PVT.LTD is a pharmaceutical industry founded in 1987 by Mr. C.K. Alexander who is an entrepreneur research chemist. His vision was to establish his company as worlds largest and only producer of clofazimine. The company was incorporated as a private limited company under the Indian Companies Act,1956. The company is a registered small scale industry with the main objective of manufacturing basic drugs and is located in kochalumoodu industrial estate which is in Alappuzha district.

1.1Importance of the Study Organizational study is carried out mainly with an objective of gaining practical experience in organizations. The theoretical scope of the study was aimed at covering the functional departments of the organization. It was to create awareness about the various operations in the organization. As the study is mainly based on the evaluation of different departments it enables to get a detailed knowledge regarding the functioning of the organization. As management students it is important to gain a practical industry
2|Page

experience along with the theoretical principles. This study is an important part of the course as it gives a chance to experience the practical constraints faced by the managers while putting theory into practice. It also helped to understand the tactics applied and the way the managers solve the problems encountered by them.

1.2Objectives of the Study The organizational study was conducted at SANGROSE LABORATORIES PVT.LTD. is undertaken with certain clear cut objectives which is classified as: PRIMARY OBJECTIVES: To study about the organization To acquire knowledge about functional as well as managerial aspect of Sangrose Laboratories Pvt.Ltd. To compare theoretical knowledge with actual practices.

SECONDARY OBJECTIVES: To examine critically the organizational structure. To study and understand the various functional areas of the company. To understand the actual flow of communication procedure followed in an organization. To analyze the industry and company profile with an overview of the strengths, weaknesses, opportunities and threats of the organization. To find out the various technical collaborations in Sangrose and check the importance and effectiveness of such collaborations. To identify the external and internal factors affecting the strengths, weaknesses, opportunities and threats affecting the operations of the organization. To interact with managers at different levels and find out their duties and responsibilities.

1.3Methodology The methodology adopted to carry out this study includes the collection of primary and secondary data. The primary data was collected through personal interview and

3|Page

discussions conducted with management. Secondary data was obtained from the company file, brochures, records and websites.

The methods of data collection are: 1. Primary Data Primary data are those data that are collected directly through direct personal interview, oral investigations, observation method, case study method, experimental method, survey method, etc. Survey method was conducted on the employees in Sangrose Laboratories Pvt. Ltd. Survey means a planned effort to collect relevant information from a representative of the selected population. This survey can be classified into three categories: a. Personal interview b. Telephonic interview c. Mail survey The primary data was collected by Interview Observation Discussions with departmental heads Interview

Personal interviews were conducted with departmental managers, company officials and employees of the organization. Observation

During the 4 weeks organization study the general functioning of the organization was keenly observed. It is an important method as it provides an opportunity to study about the functioning of the organization. Discussions with departmental heads

Questionnaires were prepared for each and every department and information was collected from the respective departmental heads. It helped to understand the major functions of each department.

4|Page

2. Secondary Data Secondary data are those data that are collected from the already existing data. Secondary data can be from external sources and internal sources. Internal sources include financial statements analysis, sales force report.

External sources include information from published records and includes, Company website www.sangroselabes.com Company documents Company journals Company records Annual reports

1.4Limitations a. Time constraint: It was not possible to get a deep knowledge about the functioning of the organization as well as to experience the real business situations as time was very limited. b. Lack of previous experience c. The study was mainly a descriptive one d. Secret nature of business data secret business data are not made available to the observer.

5|Page

CHAPTER 2 INDUSTRY PROFILE 2.1Historic outline of the industry Industry is concerned with the process of extraction of raw materials from the nature andthe various other process of transforming these raw materials into consumable goods. It deals with the function of converting or transforming these materials extracted from nature and to make them fit for human use or consumption. In brief, industry deals with the production of goods of value. SMALL SCALE INDUSTRY Small scale industries are the significant segments of the Indian economy. The basic objectives underlying the development of small and medium scale industries are the increased supply of manufactured goods, the promotion of capital formation, the development of indigenous entrepreneurial skills and the creation of employment opportunities. In addition to this, they also include such socio economic goals or the decentralization and dispersal of manufacturing activities from the metropolitan areas to rural areas, reduction of regional economic imbalances within a country and promotion of entrepreneurial and managerial activities and skills as well as of technology throughout the country. Small scale industry plays a vital role in the economic development of a country in the following ways: a. To generate large scale employment opportunities with relatively low capital investments b. To find solution for the unemployment in the country c. To promote balanced regional development of the nation The highlights of small scale industry are: They are capital light They are labour intensive They are skill light

6|Page

2.2 Present structure of the industry Pharmacy is an art and science of preparing and dispensing medication and providing the public with drug related information. The modern Indian pharmaceuticals industry has laid its foundation in the early 19th century and it was through a small factory known as bengal chemical and pharmaceutical works, Calcutta. Indian pharmaceutical industry has grown tremendously and presently is in a position to meet 70% of the requirements of drugs of the country. INDIAN PHARMACEUTICAL INDUSTRY Indian pharmaceutical industry is playing a key role in promoting and sustaining development in the vital field of medicines. Around 70% of the countrys demand for bulk drugs, drug intermediates, chemicals, tablets, capsules, orals and vaccines is met by Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to highest quality standards and is approved by the regulatory authorities in USA and UK.The production value of the bulk drugs during the year 1997-98 was Rs.2623 and that of pharmaceutical formulations was Rs.12068 Crores. The production of pharmaceuticals in India increased by 13.68% during the year 1997-1998 against the previous year. Now it has rose up to30%. The Indian pharmaceutical industry today has occupied the first rank in the Indias science based industries with wide range of drugs .a lightly organized sector, the Indian pharmaceutical industry is estimated to be worth $4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the world in terms of the quality, technology and range of medicines manufactured.

2.3 Major government policies The government is the agency that is responsible for fixing various prices for the drugs. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done. Manufacturers are free to produce any drugs that are duly approved by the controlling authority. Technically strong and totally self reliant, the pharmaceutical industry in India has low cost of production, low research and development cost, innovative scientific manpower, strength of national

7|Page

laboratories and an increasing balance of trade. The pharmaceutical industry with its rich scientific talents and research capabilities, supported by intellectual property protection regime is well set to take all the international market.

2.4 Predicted scenario of industry India holds the lion share of the worlds contract research business. Over 15 prominent contract research organizations (CROs) are now operating in India, attracted by her ability to offer efficient R&D on a low cost basis. Thirty five percent of business is in the field of new drug discovery and the rest sixty five percent of the business is in the clinical trials arena. India offers a huge cost advantage in the clinical trials domain compared to the western countries. The cost of hiring a chemist in India is one fifth of the cost of hiring a chemist in the west. Indian companies in an effort to consolidate their position will have to increasingly look at the merger and acquisition options of either companies or products. This will enable in offsetting the loss of new product options, improve the R&D efforts and to improve the distribution to penetrate into new markets. In order to stay competitive in future, Indian companies will have to refocus and invest heavily in R&D.

Top ten players in the market 1. Ranbaxy laboratories 2. Dr. Reddys laboratories 3. Cipla 4. Nicholas Piramal 5. AurobindoPharma 6. GlaxoSmithKline 7. Pfrie 8. Sun pharmaceutical industries 9. Cadila healthcare 10. Aventis pharma

8|Page

CHAPTER 3 COMPANY PROFILE 3.1 Background of the company The Indian pharmaceutical industry today is in the front rank of Indias science based industries with wide ranging capabilities in the complex field of drug manufacture and technology. Pharmaceutical industry is playing a key role in promoting and sustaining development in the vital field of medicines. The pharmaceutical industry, with its rich scientific talents and research capabilities, supported by intellectual property protection regime is well set to take on the international trade. SANGROSE LABORATORIES PVT.LTD.Was incorporated in the year 1987 as a private limited company under the Indian Companies Act, 1956. The company registered as a smallscale industry with the main objective of manufacturing basic drugs is located in the Industrial Estate, Kollakadavu in Vettiyar village, MavelikaraTaluk in the notified industrial backward district Allepey, in Kerala state. The main functions of the Bombay office are purchase as well as collection forum, to deal and maintain a cordial relation with suppliers.

TECHNICAL BACKGROUND OF THE PROMOTERS SANGROSE LABORATORIES PVT. LTD. Was founded in the year 1987 byMr. C.K.Alexander who is an entrepreneur research chemist. The DNA of the company is drawn from its founder and his vision to establish worlds only largest producer of clofazimine. The vision of labs. Mr. C.K.Alexander the founder and managing director was born and brought up in the tradition of Kerala. He is a post-graduate, approved manufacturing and quality control chemist, having 25 years of experience in pharmaceutical industry of which 10 years he had gained experience in working with the top level management in developing and implementing project where administrative, technical, marketing and financial skills were a research chemist takes on social and commercial expressions thats in the nutshell, briefly explains the genesis and growth of Sangrose

9|Page

required. He also have a three years experiences in research and haddeveloped process know how for a number of life saving drugs.

Mr. Thomas Samuel, the finance director a post graduate in business administration is well experienced in funds management. The sound financial health of the company proves his expertise in this field. Mr. George Manuel have three years of experience as a chemist in Mumbai and was the senior manager in an International Airlines for the past 10 year. NATURE OF THE BUSINESS SANGROSE LABORATORIES has tie ups in the mantra to success in this age of globalization east meets west as transnational companies reach out for synergistic partners to enhance their competitiveness in the global market. Companies seek partners who have the state of art research and development, manufacturing facilities with excellent customer care. Sangrose caters to all as it believes in value added support. Sangrose seeks partnership with pharmacy companies around the world by offering facilities for contract manufacturing API and drug intermediaries. Its group ethos is based on achieving excellence in bringing out therapeutically active products. MISSION: The mission of Sangrose is to dedicate itself through the creation of innovative medical products and services for the benefit of the medical community and human health around the world. VISION: The vision of the company is to become a leader in the Indian Pharmaceuticals Industry and a significant global player, providing customers delight and enhancing shareholders value. INNOVATION: Sangrose aims at creating an environment suitable for individuals to bring out the skills to innovate which in turn help one to excel out. TEAMWORK: Sangrose aims at creating better sense of teamwork, the ability to work together, ability to direct individual accomplishment towards organizational objectives.
10 | P a g e

CORE VALUES: C - Care for customers R - Respect for associates E - Excellent teamwork A - Always learning T - Trust mutually E - Ethical practices OBJECTIVES OF THE FIRM To manufacture, produce, refine, process, formulate, buy, sell, import, export or otherwise deal in the basic drugs, python chemicals, plant extracts, dyes pesticides. To manufacture, produce, distribute, sell, make, research, export and to deal in pharmaceuticals, drugs, chemicals, medicine preparation, dyes pesticides, cosmetics, their intermediates including sophisticated item oils, injection, orals, syrups, tablets, capsules and in such other form for human and animal use. To carry on the business of chemicals, drugs, import, manufacture and deal in pharmaceuticals, chemicals for medical purposes, pathological, clinical, industrial and for other preparations and articles, compounds, drugs and deal in chemicals, surgical apparatus and materials.

PRODUCTS 1. BASIC DRUGS The company presently manufacturing anti leprosy Basic Drug Clofazimine I.P/ B.P only on its basic drugs units. 2. SOFT GELATIN CAPSULES The fully air conditioned soft Gelatin Capsule unit is having a production of 50000 per hour. Utmost care is taken in each stage of production in order to ensure the total quality of the capsules RAWMATERIALS OF THE PRODUCT SANGROSE LABORATORIES PVT. LTD make use of chemicals as raw materials. The following are some of the important raw materials used in the laboratory and they are:
11 | P a g e

Amino compound Acetic acid Methanol Glycerin Sorbitol Isopropanol Methylsalicyclate Carbon tera chloride Imiazole O- chloro benzoic acid MAJOR CUSTOMERS Overseas customers Government supply Outside state customers National level Local level NATIONAL LEVEL CUSTOMERS Nova millennium pharmacy, Chennai ABL Biotechnologies, Chennai Nouvenavmedicam, Chennai House Remedys, Chennai Enka health care, Delhi COMPETITORS ANALYSIS It is really a pride for Sangrose laboratories as the company enjoys a monopoly position in the production of the basic drug Clofazimine. In the case of other drugs, competitions are with the following:

RKG Pharmacy Pvt Ltd Lark Laboratories Invies Laboratories

12 | P a g e

Unicare India Pvt. Ltd ACHIEVEMENTS Sangose Laboratories has received GMP Certificate from WHO which is equivalent to ISO Nominated as the best small scale industry of Alappuzha District consecutively for three years and fourth in the state Runner up for the management excellence award of Berchamans Institute of Management Selected as one of the best entrepreneurs of the state Gold card member of Kerala Financial Corporation, the finance agency based on growth expansion and prompt payment The firm has been closely associated with National Leprosy Eradication Proggramme of Government of India by the supply of clofazimine

3.2 Product Profile 1. In the management of Eczema, Dermatitis, Druritus& Psoriasis CLO-B Clobetasol Propionate cream 0.05% w/w Highly effective in the treatment of eczema, dermatitis, druritus and non scalp psoriasis CLOSAL Clobetasol and salicylic acid Rapid clearing of scaling, pruritus and inflammation Rapid onset of action Salicylic acid Softens keratin, loosens cornified epithelium and desquamates the epidermis Make the underlying layers more accessible to steroid CLOGEN Clibetasol and Gentamicin Arrest the growth of pathogenic agents Satisfactory results obtained in 97.5% cases Good relief from symptoms

13 | P a g e

 Rapid healing of lesions 2.In the management of steroid responsive dermatoses EMSONE MometasoneFuroate 5 Gms Used in the treatment of dermatitis, psoriasis, eczema and other steroid dermatoses Safety and efficiency has been well established. 3. In the treatment of primary and secondary skin infections U-PRO Mupirocoin 2% Oinment Effective against a variety of superficial skin infections Effective against a wide range of GRAM + VE( including staphylococci, streptococci) and moderately active against GRAM ve bacteria Effective in the treatment of IMPETIGO 4. To provide complete protection from sunlight Beta carotene containing Highcaro(HIC) Total protection from sunlight Prevents cellular damage 5. In the treatment of psoriasis ZEMEGA 3 Epa 180 mg, DHA 120mg Ameliorates symptoms of psoriasis Significant reduction in itching, erythema and scaling 6. In the treatment of hyper pigmentation KOJI CLEAN Koji acid and alpha lipoic acid cream Removes pigment spots faster effectively and maintains natural skin colour Kojic acid: Slows down melalin production by inhibiting tyrosinase Alpha Lipoic Acid Scavenges ROS

14 | P a g e

 Regenerates vitamin A and C Prevents oxidative damage Prevents wrinkling of skin by inhibiting cross linking of protein with macro molecules 7. In the treatment of skin diseases VITA E 400 Reduces formation of FR Prevents lipid peroxidation Maintains skin integrity Reduces trans epidermal water loss Strengthens skin barrier function 8. When the need is for an anti histamine ZENTIN L Levocetrizine 5 mg Rapid therapeutic reaponse Higher bio availability Higher affinity towards H1 receptor 9. In the treatment of fungal infections SANFLU 150 Fluconazole 150 mg Enhanced bio availability Better absorption Masks odour Larger shelf life Better appearance TERBINORM (TERBINAFINE 250MG) Highly effective in dermatophytosis and onychomycosis Low relapse rate 10. In contact of dermatitis of thin skin

15 | P a g e

HYDROSTER Purest hydrocortisone safe on face and thin skin Provides moisturisation Smoothen skin by filling up spaces between skin flakes 11. In hyperkeratosis warts, corns and psoriasis Mild conditions akralic 3% Moderate conditions akralic 6% Severe conditions akralic 12% 12. To treat severe recalcitrant cystic acne RETISO 20 Isotretinoin 20mg Dramatically reduces elevated sebum production, comedogenesis and ductual colonization of psoriasis acnes High cure rates 13. In the treatment of skin disease of mixed actiology GENCLOBEC (gentamicin, clotrimazole, beclomethasone cream) Arrests the growth of pathogenic agents 14. In the management of neurological disorders Vit axon Soft gels Benfotiamine 100mg Methylcobalamin 500 mg Alpha lipoic acid 100mg Vitamin C 75mg Vitamin B2 10 mg Pyridoxine hydrochloride 3mg Vitamin E acelate 25mg Zinc 15mg Pantothenic acid 50m
16 | P a g e

3.3 Organization Structure Organization chart is the pictorial or graphical representation and arrangement of position in an organization and normally positions are arranged in a sequential order on the basis of their authority and responsibility. With the help of a planned and well designed organization structure we are able to get an overview of the functioning of the organization. Authority and responsibility positions can be easily recognized with the help of this chart.

17 | P a g e

FUNCTIONAL AREAS Every organization performsseveral functions and this enables to reduce the complications. Departmentalization enables in specialization of the job. Effective supervision is also possible and better results are the outcome of such functional departments. Division of work enables in achieving the organizational objectives. Every manager can efficiently manage the work when the different activities are categorized into a common group. The different departments in Sangrose laboratories are:

1. PRODUCTION DEPARTMENT 2. HUMAN RESOURCE DEPARTMENT 3. FINANCE DEPARTMENT 4. MARKETING DEPARTMENT 5. QUALITY CONTROL DEPARTMENT 6. RESEARCH AND DEVELOPMENT DEPARTMENT

3.4 Production department Production is the department in which the process of conversion of raw materials and inputs required for production is converted into output or finished products. Production is the basic or primary function as everything starts from it. Production system consists of inputs at one end and at the other end these outputs are connected by a series of operations, processes, storage and inspections. It is the department responsible for the creation or manufacture of a product. Its sub departments are stores department, quality control department and maintenance department. FUNCTIONS To produce the required number of products that cater to the current demand. To set proper manufacturing schedules inorder to ensure timely completion and supply of products. To ensure minimum wastage Optimum utilization of men, machines, materials and money.

18 | P a g e

PRODUCTION DEPARTMENT CHART

Purchase& Store Department

Purchase Manager

Purchase in Charge

Store in Charge

Store keeper

PRODUCTION IN SANGROSE The sangrose laboratories produce basic drugs and capsules and they are: Basic Drug : CLOFAZIMINE Capsules :Vitamin A & D Black lumen seed oil Glovite Nifedipine Vitamin A Capsule U.S.P Vitamin E Capsule U.S.P Cefoz
19 | P a g e

Rejuven Alprazolam Paracetamol Atenolol Ranitidine tablet Brufin

PRODUCTION REQUISITES Raw materials:The most important raw material is amino compound purchased from Baroda. Power and fuel: In sangrose, electricity is used as power and is required for working machines and lighting facilities and for this purpose KSEB Subtraction is very near. Water : The company has dug wells in the nearby private land in the possession of the company. In addition to this the industrial estate has its own water supply system.

MACHINERIES Various types of machinery and equipments are necessary for the production of medicines. The plant is equipped with machinery to produce 15000 20000 kgs basic drug (clofazimine) per annum and hence 20 lakhs capsules are manufactured per shift. The plant basically requires the following machines: MS Rubber Lined Reactor SS Reactor with condenser SS Reactor MS Glass Line Reactor SS Centrifuge Rubber Lined Centrifuge Multimill (hammer type) Soft Capsulation Machines Gelatin Cooking Vessel

20 | P a g e

PRODUCTION PROCESS Sangrose is a medicine manufacturing company. As it has got its own policies it keeps its production process secret. The MD who is the main chemist in the production unit, is the key factor behind the formulation of the medicines.

PRODUCTION UNIT CHART

RAW MATERIALS

MIXING

ENCAPSULATION

WASHING

DRYING

WASHING

PACKING

DISPATCHING

21 | P a g e

Effluent Treatment Procedure RAW EFFLUENT: The raw effluent being very little in quantity is collected in a rubber lined concrete tank heated and allowed to concentrate. When a sufficient quantity is obtained it is to be sold to the consultants of the company for neutralizing the alkaline effluents of other industries. WASH WATER: The wash water from the production area is collected in a separate rubber linked tank for treatment. The effluent is pumped into a mixer cum flocculation tank where liquor ammonia or lime is added for neutralizing. The dried mass is permitted to be used as a land fill. The clear overview from the location tank and the filter bed arw pumped into an aeration tank where the clear liquid is generated and then passed in carbon filter bed to absorb any remaining organic matters.the filtered liquid is collected in hopper bottom secondary setting tank. From the secondary tank it is pumped into another creation tank and biomass is added. After sufficient creation of the mixture the overflow is passed into a clarifier where any suspended biomass is collected into the slubge put and the clear water is directly passed to 3.5 acres of agricultural land for irrigation as permitted by the pollution control board. There are above 100 people working in the company who are regularly subjected to medical examination by qualified medical practitioner as per the direction of the drugs controller of Kerala and so far no cases of any contagious or any other diseases are reported.

PRODUCTIONPLANNING AND CONTROL Production planning and control are the two major aspects of production management. It is an important department of the company which is headed by the senior manager, senior assistant manager, and an assistant manager in charge of the day to day activities of the such department. Production planning and control is the planning and organization of the manufacturing process and to co-ordinate the series of functions.
22 | P a g e

The elements and function of production planning and control arehe following; ROUTING: Determining the route part for the movement of manufacturing lot through factory LOADING: Refers to the work load against a machine or a worker. SCHEDULING: Determining the start time and completion time of various operations to be Performed DISPATCHING: Sets the productive activities in motion through the release of orders and instruction according to timings given in operation sheets, route card and loading schedule. FOLLOW UP: It ensures that the necessary instruction has been followed in their unit and required tools and materials are made available to the workers. INVENTORY CONTROL Production Manager is the complete authority who is having control over the production. He is responsible to reduce the cost of production, wastage of raw materials, timely production, etc. economic lot sizes, economic order quantity, reorder levels etc are fixed by this department. Timely actions help to prevent over and under stocking of raw materials. For this it is essential to control the physical flow of raw materials. It is essential to arrange the procurement of raw materials from a supplier who offers continuous supply.Inventories may be classified into four classes:-Raw materials, supplies, work in progress and finished goods. Raw materials in sangrose are chemicals that that are processed and converted into finished products such as clofazimine, basic drugs. The main objective of inventory control is to enable to place an order at the right time from the right source price and of right quantity. a) Economic Order Quantity: It refers to the specific order size that gives maximum economy in purchasing the materials. Economic order quantity is the inventory level which minimize the total ordering or carrying costs
23 | P a g e

b) Ordering cost: Cost of placing an order and securing the suppliers. c) Carrying cost: Refers to the cost of keeping the materials in the store house.

3.5 Human Resource Department Human resource is the field of management which controls the human resource in an organization. Human resource department maintains a complete list of all the workerd deployed in the organization. The work is performed in three shifts and around 100 employees are working here. Sangrose maintains cordial relationship with its workers. Good formal and informal relations are maintained between the employees and employers. Sangrose implements various incentive schemes for the benefit of the employees which can motivate the employees to work more. The functions of human resource department: Manpower planning Job analysis Job evaluation Recruitment training and development

RECRUITMENT Recruitment is the process of searching prospective employees and stimulating them to apply for jobs in the organization. The firm usually calls interview for ten candidates for one vacancy and will resort to written examination if the candidates exceeds 20. Sources of Recruitment Walk in interviews: Sometimes the Sangrose laboratories conduct interviews to prospective candidates. The suitable candidate will be selected for appointment. Advertisement: Newspapers and magazines are the common media in which sangrose provides advertisement. Employee reference:
24 | P a g e

The employee reference will be considered when there is an emergency need for an employee. Consult in: The potential job seekers approach the officials personally and in the regular selection process a suitable candidate is selected. Nearby locality: Unskilled workers are usually selected from the nearby locality SELECTION Candidates who are technically skilled, educationally qualified and potentially able are selected. TRAINING AND DEVELOPMENT Sangrose laboratories offer a wide variety of developmental opportunities to the employees of the organization. They are designed to promote professional and personal growth of workforce. Training enables employees to be technically skilled which can lead to low wastage of raw materials. PURPOSE Enables in reducing the accidents To increase the productivity Quality of the product To reduce the wastage in production To improve and maintain the during production Three types of training are provided to the employees: a. Induction training b. External training c. Internal training a.Induction training: This training is meant for the fresh employees and those employees who have been transferred from other departments of the organization.HR department is responsible for preparing the training schedule.The main purpose of training is to get accomplish with Co.

25 | P a g e

b.External training: It is given to the permanent employees such as engineers, officers and other executives. This training is conducted by theexternal agencies or external organization. c.Internal training: This type of training is given to the technical personnel working in the various sections or divisions. The training consist of welding, market testing, etc. Management provides training for a period of six months for the fresh employees. Only after the successful completion of the training the candidates are permanently appointed. This type of training is compulsorily practiced. LABOUR WELFARE ACTIVITIES PROVIDED BY SANGROSE Maslows need hierarchy theory mentions several human needs like self actualization, esteem needs, safety needs, etc. is inevitable to an organization. Better working conditions, job security, insurance, medical facility, recreational facilities, etc should be provided to the employees.The welfare activities commonly practiced in Sangrose are: Free lunch and restaurant For special working hours free lunch and refreshment are provided. Coffee is provided twicea day. Travelling allowance For every official journey sangrose provides proper travelling allowance Bonus A proper amount of bonus is calculated and provided to the employees Insurance All the employees are covered under ESI Gratuity Gratuity calculated as per the rules of payment of gratuity Vehicle facility Vehicle facilities are arranged to fetch the local employees Medical facility Annual medical checkups are arranged for every employee Provident fund scheme Every employee and employer contributes equally to the provident fund scheme
26 | P a g e

TIME OFFICE: This department records the time in and time out of the employees. Other activities related to payment of wages, incentives, leaves etc are recorded in a register. Different registers are maintained for different shifts. A leave book is maintained and it records; Leave balance Leave credited Leave awaited The daily attendance reports for employees specify the Shift, date, clock No, hours worked, scheduled shift. The daily attendance report is verified by the supervisors, shift engineers and shift head.

HR DEPARTMENT CHART

HUMAN RESOURCE DEPARTMENT

PUBLIC RELATIONS OFFICER

WELFARE OFFICER

EMPLOYEES

27 | P a g e

3.6 Finance department Finance may be defined as the art and science of managing money. An efficient finance department is the backbone of an organization. Its main activity is to maintain the cash inflows and outflows in the organization. The finance manager who is the head of the department determines and allocates funds for the various departments and helps to avoid the wastage of funds. As finance is the life blood of the organization it provides solution to the questions such as, how to procure fund and how to utilize the fund and how to make profit.

OBJECTIVE OF FINANCE DEPARTMENT Financial management is the managerial activity which is concerned with planning, controlling and administration of funds used in business. It involves a sound judgement combined with a logical approach to decision making.The finance department is primarily concerned with the following objectives: Maximization of profit: Profit maximization is the basic criteria considered by the managers while taking a decision. As a business organization the primary objective is to maximize the profit. It is essential for the further smooth working of the organization. Maximization of wealth: This objective is as important as maximization of profit. This is possible by maximizing the net present worth of the firm. Working capital management: Working capital management has great importance as the success of every business depends upon the management of the working capital. Working capital in simple terms is the amount of funds which a business concern has to finance in its day to day operations. It can also be regarded as that proportion of a companys total capital which is emp loyed in short term operations. CREDIT POLICY The company have its own policies regarding credit and they sell their products on credit basis. The credit period of 15 days and grace period is usually provided to the customers.

28 | P a g e

If the customer is an outstation party it varies from 60 to 100 days.Trade discounts are also provided to the customers to increase sales and this is usually allowed on bulk purchases. FACTORS INFLUENCING THE WORKING CAPITAL REQUIREMENTS Working capital management is a significant fact of substantial management. The working capital needs are influenced by the following: Nature and size of the business: The working capital requirements of a firm are closely related to the nature of the business. In a pharmaceutical industry like Sangrose laboratories, which manufactures basic drugs and capsules working capital requirements are relatively high. Seasonality of operations: Firms which have a market seasonally usually have high fluctuating working capital.the sales for sangrose is also seasonal as the company depends on tenders invited by the Govt of India. this leads to heavy stocking of raw materials and finished goods at the beginning of the financial year. Conditions of supply: The inventories of raw materials, spares and stores depend on the conditions of supply. The raw materials used here are always not abundantly available and hence sufficient arrangement for early procurement of raw materials are implemented and also for stocking it for future use. They are stored for 3 6 months.

NEEDS FOR WORKING CAPITAL Purchase of raw materials( chemicals, spares and components) Payment of wages and salaries To meet the day to day expenses and overhead cost such as power, fuel and office expenses To meet the selling expenditure like packing and advertising Maintain the inventories

29 | P a g e

SOURCES OF FUNDS The major sources of fund are shareholders fund, which includes shareholders reserve and surplus.the loan amount stood up to 30 lakhs from KFC and about 15 lakhs from SBI. Sangrose has received the best customer award from State Bank of India. The turnover for the company was 10 crore in 2007 and 7 crore in 2008 and 10 crore in 2009 and 12 crore in The years 2010. The main sources of income are sales and contract basis manufacturing. They were able to overcome the recession as their main business deals with the sales of their patented product, CLOFAZIMINE.

FINANCE DEPARTMENT CHART

FINANCE DEPARTMENT

FINANCE MANAGER

ACCOUNTANT

CHIEF CLERK

30 | P a g e

3.7 Marketing department Marketing involves all those processes and activities that direct the flow of goods and services from producer to customer. Marketing is the activities that are aimedat the planning, pricing, promoting and distributing want satisfying products and services to the present and potential customers. It is also important to an industry as half of the cost of goods and services results from the marketing process.

FUNCTIONS Functions of exchange: Buying Selling Functions of physical selling: Transportation Storage of warehousing Facilitating functions: Financing Pricing Risk bearing Advertising Standardization Sales promotion IMPORTANCE Analyzing markets thoroughly Study consumers psychology and demand Studyig the conditions existing in competitive firms Studying the market fluctuations Planning of the advertisement campign Preparing sales budget from marketing plan Exploring the markets for selling the products .

31 | P a g e

MARKETING DEPARTMENT CHART

MARKETING MANAGER

MARKETING SUPERVISORS

SALES OFFICIALS

3.8 Quality Control Department Quality is one of the major aspects that the organization is concerned with the systematic control of material, men, machines, manufacturing conditions is quality control. FUNCTIONS Identify the defective goods Find the quality of mixing Ways to reduce the cost of manufacture Improvement of manufacturing and customer relation Market research Production methods and production design that improves quality Factors affecting quality QUALITY CONTROL MEASURES Raw material analysis In process analysis Finished product analysis
32 | P a g e

The quality control laboratory functioning in the company has sophisticated equipment like U.V spectrophotometer, disintegration testing equipment, dissolution testing equipment, electronic PH meters, digital electronic balance, etc.

Quality control is the statistical method of measuring deviation from standard quality by recording sample tests on a chart which immediately shows when work is being deviated from approved limits

QUALITY CONTROL DEPARTMENT

QUALITY CONTROLDEPARTMENT

CHEMIST

ASST.CHEMIST

LAB ASSISTANT

3.9 Rerearch and development department The company has a research development lab functioning with all sophisticated equipment. Their main objective is developing process knowhow for life saving drugs. They also develop combination of those drugs that can be produced at lower costs. Sangrose is spending a reasonable portion of its turnover for its R&D department. A qualified team is working with the department to develop competitive products which identifies sangrose among other pharmaceutical companies. Sangrose is expanding its product line consistently. A new division that is expected to produce tablets, liquids, orals and hard gelatin capsules. A subsidiary of sangrose is on the development process and which is proposed to be named as SangroseDrugs
33 | P a g e

Chemicals Pvt Ltd. Which intends to manufacture the basic drugs. The plant is proposed to function from the coming year onwards.

Following are some of the basic drugs: Dapsone (anti-leprosy) Pyrazinamide (anti- TB) Imipramine (anti-depressment) Enthambutol (anti-TB)

34 | P a g e

CHAPTER 4 FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 Findings Capacity utilization is low Faces the problem of high inventory or low inventory level which is resulting in high inventory cost Relationship between top level management and workers is not good enough High wastage of raw materials No product diversity

4.2 Suggestions Try to utilize its capacity at an optimum level to reduce cost Purchase department must follow the EOQ strictly Relationship between top level and workers should be strengthened Distribution of free samples must be implemented Promotion activities should be carried out Updated Technology should be used

4.3Conclusion SANGROSE LABORATORIES is the only company manufacturing CLOFAZIMINE in Kerala and third in India. This in turn results in the creation of huge demand for their products. The company is enjoying the benefit of both small scale industry and company form of organization. The company plays a significant role in the National Leprosy Eradication Programme introduced by the government of India under the aid of World Health Organization (WHO). It is a capital intensive and power oriented project in the small scale sector promoted with the objective of rural development. It is the policy of Sangrose to supply medicine conforming to quality standards specified by customers at agreed prices and to their satisfaction. The promoters of the company

35 | P a g e

have brought in all the infrastructure facilities for setting up the laboratory to the requirements of small scale industry. Since the sales for Sangrose has become seasonal there is a huge requirement of working capital because the company depends on the tenders invited by the Government of India. This leads to the need for the heavy stocking of raw materials and finished goods at the beginning of the financial year. With continuous efforts sangrose laboratories can reach global heigh

BIBLIOGRAPHY

1) Company brochures of Sangrose Laboratories Pvt. Ltd 2) R. Amsaveni; Impact of leverage on profitability of primary aluminum industry in India Indian Journal of Finance, Vol.III, No.II, Nov 2009 pp. 33-41 3) Kothari.C.R, Research Methodology: Methods and techniques, New Age International Publishers, New Delhi, Reprint edition, 2007

36 | P a g e

37 | P a g e