Project Report On Factors Influencing Doctors To Prescribe Multivitamin Syrup

PROJECT REPORT ON
Factors Influencing Doctors to Prescribe Multivitamin Syrup
ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

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ACKNOWLEDGEMENTS
I take this opportunity to acknowledge and express my gratitude towards some
of the most eminent people whose presence is noteworthy & seminal in giving
me a grand opportunity to associate myself with an esteemed organization like
Indoco Remedies Limited.
I am grateful to Mr. Hemant atnurkar (DBM) Sales Manager-xtend at
Indoco Remedies Limited for entrusting upon me confidence and providing
me a chance to get an on-the-job experience in the various fields of Marketing.
I am thankful to him for his Endeavour towards providing continuous guidance to
help build an understanding of the practical aspects of the work, gain knowledge
& valuable experiences. I am grateful to him for his outreaching support and
helping to build a motivating work environment and inculcating a feeling of
constantly striving to achieve higher goals.
His enterprising, dynamic, forward-looking, radical approach provides an
opportunity to work under an accomplished mentor like him to inculcate and
install valuable talent. I consider my nearly two months Summer Internship at
Indoco remedies ltd. to be a crucial learning period. I am deeply indebted to
all the supervisors for providing all the support when necessary.
I am also thankful to Faculty Member Prof. Prabhudeva chimad for their
helpful
nature
and
valuable
guidance
provided
time
and
again.
Their
suggestions have been instrumental in building the foundation for the draft
report.
Finally, I would like to extend my sincere gratitude to all the involved persons in
this project namely Mr Ajay Kharjgi (Head of Marketing), Mr. Yuvraj patil
(FSO).
Sidheshwar Dessai
MBA - Marketing (2AG11MBA46)

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EXECUTIVE SUMMARY
The summer training that we do is to get an experience of how the corporate world functions and
how the theory is different from the practical aspects of the industry. For the same purpose I got
an opportunity for my training at Indoco remedies Ltd in Xtend Division in Marketing
Department. There
1.) Doctors perception while prescribing Multi-Vitamin syrup. This project was to find out
what doctors think in a patient and in a medicine, before they prescribe it
to a patient. First I
was to select the appropriate research method, which was taken up as survey method through
filling up of questionnaires by doctors. To start with I visited a few doctors in advance to collect
all the factors upon which I have to search upon and to learn about all the constraints I can face
up at the time of research.

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INDUSTRY PROFILE
THE HISTORY OF PHARMACUTICAL COMPOUNDING
The History of the Pharmacy and Pharmacology dates back to
the medieval times with priests, both men and women, who ministered
to the sick with religious rites as well. Many peoples of the world
continue the close association of drugs, medicine, and religion or faith.
Specialization first occurred early in the 9th century in the civilized
world around Baghdad. The notion of an Egyptian origin has a certain
romantic appeal, but in all likelihood the word "pharmacy" and its
many cognates derive, like so many other scientific terms, from the
Greek.
GREEK NATURAL PHILOSOPHY

The first culture to consider these ideas scientifically was that of
the Greeks. From the time of Thales, about 600 BC, Greek philosophers
were making logical speculations about the physical world rather than
relying on myth to explain phenomena. Thales himself assumed that all
matter was derived from water, which could solidify to earth or
evaporate to air. His successors expanded this theory into the idea that
four elements composed the world: earth, water, air, and fire.

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THE INDUSTRIAL REVOLUTION

The rapid change from hand methods to machine methods of
production that characterized the Industrial Revolution found a ready
application in pharmacy, especially under the impact of the scientific
developments of the nineteenth century. Photochemistry and synthetic
chemistry created new derivatives of old drugs and new chemical
entities of medicinal value that strained the capacity of the individual
pharmacy. Large scale drug manufacturing had its strong hold on
society
with
the
advent
of
machines
and
patents.
The progress made by this new industry is demonstrated by the

catalogue of the American firm G.D. Searle, which by the late 1880s
listed 400 fluid extracts, 150 elixirs, 100 syrups, 75 powdered extracts,
and 25 tinctures and other drug forms.
THE TWENTIETH CENTURY PHARMACIST

The most notable change in pharmacy in modern times has been
the virtual disappearance of the preparation and compounding of
medicines. Whereas in the 1920s, 80 percent of the prescriptions filled
in American pharmacies required knowledge of compounding, by the
1940s the number of prescriptions requiring compounding had
declined to 26 percent. As far back as 1971, only 1 percent, or less, of
all prescriptions combined two or more active ingredients .

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PHARMACEUTICAL INDUSTRY
Marketing changed dramatically in the 1990s, partly because of a
new consumerism. The Internet made possible the direct purchase of
medicines by drug consumers and of raw materials by drug producers,
transforming the nature of business. In the US, Direct-to-consumer
advertising proliferated on radio and TV because of new FDA
regulations in 1997 that liberalized requirements for the presentation
of risks. The new antidepressants, the SSRIs, notably Fluoxetine
(Prozac), rapidly became bestsellers and marketed for additional
disorders.
Drug discovery is the process by which potential drugs are
discovered or designed. In the past most drugs have been discovered
either by isolating the active ingredient from traditional remedies or by
serendipitous discovery. Modern biotechnology often focuses on
understanding the metabolic pathways related to a disease state or
pathogen, and manipulating these pathways using molecular biology
or Biochemistry. A great deal of early-stage drug discovery has
traditionally been carried out by universities and research institutions.
Drug development refers to activities undertaken after a compound
is identified as a potential drug in order to establish its suitability as a
medication.
Objectives
of
drug
development
are
to
determine
appropriate Formulation and Dosing, as well as to establish safety.

Research in these areas generally includes a combination of in vitro
studies, in vivo studies, and clinical trials. The amount of

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Capital required for late stage development has made it a historical

strength of the larger pharmaceutical companies.
ORIGINS AND EVOLUTION

The modern pharmaceutical industry is a highly competitive nonassembled1 global industry. Its origins can be traced back to the
nascent chemical industry of the late nineteenth century in the Upper
Rhine Valley near Basel, Switzerland when dyestuffs were found to
have
antiseptic
properties.
host
of
modern
pharmaceutical
companies all started out as Rhine-based family dyestuff and chemical

companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of
merger between Ciba and Geigy), Novartis2 etc. Most are still going
strong today.
Over time many of these chemical companies moved into the
production of pharmaceuticals and other synthetic chemicals and they
gradually evolved into global players. The introduction and success of
penicillin in the early forties and the relative success of other
innovative drugs, institutionalized research and development (R&D)
efforts in the industry 4. The industry expanded rapidly in the sixties,
benefiting from new discoveries and a lax regulatory environment.
During this period healthcare spending boomed as global economies
prospered.
The
industry
witnessed
major
developments
in
the
seventies with the introduction of tighter regulatory controls, especially

with the introduction of regulations governing the manufacture

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ofgenerics5. The new regulations revoked permanent patents and

established fixed periods on patent protection
For branded products, a result of which the market for branded

generics emerged.
INCREASING POLITICAL ATTENTION:

Over the years, the industry has witnessed increased political attention
due to the increased recognition of the economic importance of
healthcare as a component of social welfare. Political interest has also
been generated because of the increasing social and financial burden
of healthcare. Examples are the UKs National Health Service debate
and Medicare in the US.
THE SOCIAL DIMENSION

Good health is an important personal and social requirement and the
unique role pharmaceutical firms play in meeting societys need for
popular wellbeing cannot be underestimated. In recent times, the
impact of various global epidemics e.g. SARS, AIDS etches also
attracted popular and media attention to the industry. The effect of the
intense media and political attention has resulted in increasing
industry efforts to create and maintain good government-industrysociety communications.
TECHNOLOGICAL ADVANCES

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Modern scientific and technological advances in science are forcing

industry players to adapt ever faster to the evolving environments in
which they participate. Scientific advancements have also increased
the need for increased spending on research and development in order
to encourage innovation.
LEGAL ENVIRONMENT
The pharmaceutical industry is a highly regulated and compliance
enforcing industry. As results there are immense legal, regulatory and
compliance overheads which the industry has to absorb.
INCREASED COMPETITION
A major issue facing the industry is the intense competition and the
changing face the Pharmaceutical market. The industry has seen a
legion of new market entrants, increased Competition among key
players and industry consolidation. A host of large-scale mergers and
acquisitions have taken place over the last two decades. Competitive
advantage within the industry is being constantly redefined and to
maintain their presence, key industry players are being forced to
revamp their organizational structure, overcome huge barriers in R&D,
clinical trials simply to ensure continuity and maintain profitability.
INDIAN PHARMACEUTICAL INDUSTRY

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The Indian pharmaceutical industry is the world's secondlargest by volume and is likely to lead the manufacturing sector of
India. India's bio-tech industry clocked a 17 percent growth with
revenues of Rs.137 billion ($3 billion) in the 2009-10 financial year over
the previous fiscal. Bio-Pharma was the biggest contributor generating
60 percent of the industry's growth at Rs.8,829 crore, followed by bioservices at Rs.2,639 crore and bio-agri at Rs.1,936 crore. The first
pharmaceutical
company
are
Bengal
Chemicals
and
Pharmaceutical Works, which still exists today as one of 5 governmentowned drug manufacturers, appeared in Calcutta in 1930. For the next
60 years, most of the drugs in India were imported by multinationals
either in fully-formulated or bulk form. The government started to
encourage the growth of drug manufacturing by Indian companies in
the early 1960s, and with the Patents Act in 1970, enabled the industry
to become what it is today. This patent act removed composition
patents from food and drugs, and though it kept process patents, these
were shortened to a period of five to seven years. The lack of patent
protection made the Indian market undesirable to the multinational
companies that had dominated the market, and while they streamed
out, Indian companies started to take their places.
The Indian pharmaceutical industry ranks third in volume terms
globally (valued at approximately USD18 bn which is 10% of the global
pharma output) and 14th in terms of value. The exports for 2009 grew
by around 14% compared to 2008 at USD8.6 bn. The contribution from

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formulation segment was 65% and that from intermediates and Active
Pharmaceutical Ingredients (APIs) was around 35%. (Source: Industry)
The Indian pharma industry is expected to grow between 12-14% over
next few years backed by triggers of increase in lifestyle-related
chronic diseases, better medical facilities and increasing awareness
and per capita income improvements. A similar trend seen in the
emerging markets is providing
impetus to Indian pharma companies and helps maintain the growth

momentum. (Source: Industry)
PATENTS AND GENERICS

Depending on a number of considerations, a company may apply
for and be granted a patent for the drug, or the process of producing
the drug, granting exclusivity rights typically for about 20 years.
However, only after rigorous study and testing, which takes 10 to 15
years on average, will governmental authorities grant permission for
the company to market and sell the drug. Patent protection enables
the owner of the patent to recover the costs of research and
development through high profit margins for the branded drug. When
the patent protection for the drug expires, a generic drug is usually
developed and sold by a competing company. The development and
approval of generics is less expensive, allowing them to be sold at a

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lower price. Often the owner of the branded drug will introduce a
generic version before the patent expires in order to get a head start in
the generic market.
DIAGNOSTIC OUTSOURCING/ CLINICAL TRAILS

The Indian diagnostic services are projected to grow at a CAGR of more than 20
per cent during 2010-2012. Some of the major Indian pharmaceutical firms,
including Sun Pharma, Cadilla Healthcare and Piramal Life Sciences, had applied
for conducting clinical trials on at least 12 new drugs in 2010, indicating a
growing interest in new drug discovery research.
GENERICS
India tops the world in exporting generic medicines worth US$ 11 billion and
currently, the Indian pharmaceutical industry is one of the world's largest and
most developed. Moreover, the Indian generic drug market to grow at a CAGR of
around 17 per cent
between 2010-11 and 2012-13. Union Minister of Commerce and Industry and
Minister for Trade and Industry, Singapore, have signed a 'Special Scheme for
Registration of Generic Medicinal Products from India' in May 2010, which seeks
to fast-track the registration process for Indian generic medicines in Singapore.
ADVANTAGE INDIA

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The Indian Pharmaceutical Industry, particularly, has been the front runner in a
wide range of specialties involving complex drugs' manufacture, development
and technology. With the advantage of being a highly organized sector, the
pharmaceutical companies in India are growing at the rate of $ 4.5 billion,
registering further growth of 8 - 9 % annually. More than 20,000 registered units
are fragmented across the country and reports say that 250 leading Indian
pharmaceutical companies control 70% of the market share with stark price
competition and government price regulations. Competent workforce: India has
a pool of personnel with high managerial and technical competence as also
skilled workforce. It has an educated work force and English is commonly used.
Professional services are easily available. Cost-effective chemical synthesis: Its
track record of development, particularly in the area of improved cost-beneficial
chemical synthesis for various drug molecules is excellent. It provides a wide
variety of bulk drugs and exports sophisticated bulk drugs. Legal & Financial
Framework: India has a 53 year old democracy and hence has a solid legal
Framework and strong financial markets. There is already an established

international industry and business community. Information & Technology: It has
a good network of world-class educational institutions and established strengths
in Information Technology. Globalization: The country is committed to a free
market economy and globalization. Above all, it has a 70 million middle class
market, which is continuously growing.
Consolidation: For the first time in many years, the international pharmaceutical
industry is finding great opportunities in India. The process of consolidation,
which has become a generalized phenomenon in the world pharmaceutical
industry, has started taking place in India. (Source of information: internet)
GOVERNMENT INITIATIVES AND INVESTMENT

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GOVERNMENT INITIATIVE
100 per cent foreign direct investment (FDI) is allowed under the automatic
route in the drugs and pharmaceuticals sector including those involving use of
recombinant technology. (DIPP)
The Government plans to set up a US$ 639.56 million venture capital (VC) fund
to give a boost to drug discovery and strengthen the pharma infrastructure in
the country.
The Government had issued an expression of interest (EoI) for technical and
financial bids for the selection of a global level consultant (GLC) for the
preparation of a detailed project report (DPR) in order to develop India as a drug
discovery and pharma innovation hub by
2020. The Drugs and Pharmaceuticals Manufacturers Association has received
an in-principle approval for its proposed special economic zone (SEZ) for
pharmaceuticals, bulk drugs, active pharmaceutical ingredients (APIs) and
formulations to be located at Nakkapalli mandal in Visakhapatnam district.
The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for
making India one of the leading destinations for end-to-end drug discovery and
innovation and for that purpose provides requisite support by way of world class
infrastructure, internationally
competitive scientific manpower for pharma
research and development (R&D), venture fund for research in the public and
private domain and such other measures.
The government plans to open 3,000 Jan Aushadhi stores, which sell unbranded
generic drugs at heavy discounts to branded drugs, in the next two years.

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INVESTMENT
The healthcare sector has attracted growing investor support in 2010 with
nearly a tenth of the total private equity funding going to this sector. In the third
quarter the calendar year 2010, a total of US$ 2,047 million was invested across
88 deals, of which 9 per cent were healthcare deals.
The pharma, healthcare and biotech sector witnessed five merger and
acquisition transactions (M&A) worth US$ 250 million.
The drugs and pharmaceuticals sector has attracted FDI worth US$ 1,825.43
million between April 2000 and September 2010.
Some of the major investment developments in the sector include:
Hyderabad-based Natco Pharma plans to raise US$ 22.22 million to fund its
expansion plans and research activities.
Private equity major Sequoia Capital has made its first investment in the
pharmaceutical 12
sector in the country by investing US$ 15.86 million into
Celon Labs, which will use the funds to double its manufacturing facility.
Belgium based Helvoet Pharma, part of the Daetwyler Group is setting up its
first greenfield production facility in Khandala Industrial Area, phase I (SEZ),
on Pune- Bangalore Highway, near Pune. The company has invested US$
26.56 million for the plant.
Swiss Pharma major Lonza AG, would invest around US$ 55.33 million
through its Indian subsidiary in a phased manner in Genome Valley project,
Hyderabad, said Stefan Borgas, CEO, Lonza.
Chennai-based Bafna Pharmaceuticals plans to raise around US$ 4.43
million for its future expansion by issuance of warrants and shares.

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Hyderabad Menzies Air Cargo Private Limited, a joint venture between GMR
Hyderabad International Airport Limited (GHIAL) and Menzies Aviation, has
launched India's first airport-based pharma zone, dedicated pharmaceutical
cargo storage and handling facility, at Hyderabad. The project involved an
investment of US$ 1.22 million.
THE CHANGING PRESCRIPTION

As per WTO, from the year 2005, India granted product patent recognition to
all new chemical entities (NCEs) i.e., bulk drugs developed then onwards.
This introduction of product patent regime from January 2005 is leading into
long-term growth for the future which mandated patent protection on both
products and processes for a period of 20 years. Under this new law, India
will be forced to recognize not only new patents but also any patents filed
after January 1, 1995. Under changed environment, the industry is being
forced to adapt its business model to recent changes in the operating
environment.

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Indian
Indian pharmaceutical industry is mounting up the value chain. From being a

pure reverse engineering industry focused on the domestic market, the
industry is moving towards basic research driven, export oriented global
presence, providing wide range of value added quality products and services,
innovation, product life cycle management and enlarging their market reach.

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The old and mature categories like anti-infectives, vitamins, analgesics are
de-growing while, new lifestyle categories like Cardiovascular,
Central Nervous System (CNS), Anti Diabetic are expanding at double-digit

growth rates.
EMERGING TREND
The Indian pharmaceutical industry is now discovering new opportunities of
growth in clinical research, contract research, manufacturing and innovation
opportunities. This path can lead the Indian pharmaceutical industry to huge
success endeavors.
RESEARCH & DEVELOPMENT

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Research & Development is the key to the future of pharmaceutical industry.

The
pharmaceutical
advances
for
considerable
improvement
in
life
expectancy and health all over the world are the result of a steadily
increasing
investment
in
research.
There
is
considerable
scope
for
collaborative R & D in India. India can offer several strengths to the

international R & D community. These strengths relate to availability of
excellent
scientific talents who can develop combinatorial chemistry, new synthetic

molecules and plant derived candidate drugs

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15 The R & D expenditure by the Indian pharmaceutical industry is around

1.9 per cent of the industrys turnover, which is a little low as compared to
foreign research based pharmaceutical companies. However, now that India
is entering into the Patent protection area, many companies are spending
relatively more on R & D. When it comes to clinical evaluation at the time
of multi-center trials, India is providing a

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strong base considering the real availability of clinical materials in diverse

therapeutic areas. According to a survey by the Pharmaceutical Outsourcing
Management
Association and Bio/Pharmaceutical Outsourcing Report, pharmaceutical
companies are utilizing substantially the services of Contract Research
Organizations
(CROs). Indian Pharmaceutical Industry, with its rich
scientific talents, provides cost-effective clinical trial research. It has an

excellent record of development of improved, cost-beneficial chemical
syntheses for various drug molecules. Some MNCs are already sourcing
these services from their Indian affiliates.
PRODUCT DEVELOPMENT
For years, firms have made their ways into the global market by researching
generic competitors to patented drugs and following up with litigation to
challenge the patent. This approach remains untouched by the new patent
regime and looks to increase in the future. However, those that can afford it
have set their sights on an even higher goal: new molecule discovery.
Although the initial investment is huge, companies are lured by the promise
of hefty profit margins and the recognition as a legitimate competitor in the
global industry.
SMALL AND MEDIUM ENTERPRISES
The excise structure changed so that companies now have to pay a 16 per
cent tax on the maximum retail price of their products, as opposed to on the
ex-factory price. Consequently, larger companies are cutting back on
outsourcing and what business is left is shifting to companies with facilities in
the four tax-free states - Himachal Pradesh, Jammu & Kashmir, Uttaranchal
and Jharkhand. SMEs have been finding it difficult to find the funds to
upgrade their manufacturing plants, resulting in the closure of many

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facilities. In terms of the global market, India currently holds a modest 1-2
per cent share, but it has been growing at approximately 10 per cent per
year. India gained its foothold on the global scene with its innovativelyengineered generic drugs and active pharmaceutical ingredients (API), and it
is now seeking to become a major player in outsourced clinical research as
well as contract manufacturing and research.

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COMPANY PROFILE
History
In 1945, a Goan entrepreneur Mr. Govind Ramnath Kare, who was in the
business of wholesale and retail trade of pharmaceuticals, started a firm
which he named Indo Continental Trading Company. The principal business
of this firm was to import pharmaceutical formulations from Europe and
distribute them in Western India.
However in 1947, after India became
independent, the new Government in its bid to encourage indigenous

manufacturing of medicines banned import of several formulations. Mr. G.R.
Kare instead of being discouraged, decided to venture into manufacturing of
pharmaceuticals. Accordingly, on 23rd August 1947, a week after India's
independence, a new Company was founded with the intent to manufacture
and sell pharmaceutical formulations. Thus, Indo Continental Trading
Company became Indoco Remedies Limited.
NATURE OF BUSINESS:
Indoco Remedies Ltd (Indoco) is engaged in the manufacturing and
marketing
of
Formulations
(Finished
Dosage
Forms)
and
Active
Pharmaceutical Ingredients (APIs) in India. It has a strong international

presence in the Regulated and Emerging markets. The Company is looking at
various opportunities in untapped markets and association with business
partners in the global markets to boost its revenues. Indoco has a well-built
brand portfolio of ~200 products in various therapeutic segments, including
different high margin life style segments such as Cardiovascular, Anti-

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Diabetics, Central Nervous System, Musculo-Skeletal, Nutrition and Dental

care to mention a few.
MISSION:
To be continue to be quality driven, research based, focused pharmaceutical
company.
To adapt and assimilate cGMP( current Good Manufacturing Practices) with strict
adherence to environmental safety.
To build on the trust generated by the medical fraternity.
VISION:
To improve the quality of life by making available products of highest quality
at affordable process.
To ensure that quality becomes a habit, a commitments that finds expression
at every stage from production, testing, marketing to employee relations.
To be research based globally known company presents in all continents of
the worlds.
MILESTONES:
2012 - Indoco announced the signing of an agreement with DSM, a 9 billion
Company, for commercial cooperation for Active Pharmaceutical Ingredients

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(APIs). Indoco and DSM have formed a strategic alliance, wherein DSM shall
be marketing and selling the APIs manufactured by INDOCO.
ACCOLADES:
LIFE TIME ACHIEVEMENT AWARD
Mr. Suresh G. Kare received the prestigious Excellence Award-2004 from
Pharma Business and Technology.
GOA PLANT I:
The Solid Dosage Forms and Externals Facility received the IDMA Quality
Excellence Awards 2008 - Silver Award, for the third time.
The Solid Dosage Forms and Externals Facility received the IDMA Quality
Excellence Awards 2003 - Formulations - Gold Award, second time
since commissioned in 1997.
GOA PLANT II:
The Sterile Facility received the IDMA Quality Excellence Awards 2008 Gold Award, for the third time.
The Sterile Facility for Injectibles and Ophthalmics received the IDMA
Quality Excellence Awards 2003 - Formulations - Silver Award.

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SOCIAL RESPONSIBILITY:
At Indoco Remedies, we believe that any high performance sustainable
organization
rests
on
the
three
pillars
of
Economics,
Society
and
Environment. To be a truly sustainable organization, in the broadest

definition of its terms, an organization must perform well across all three
dimensions.
As a company, we entirely believe in healing several lives, but also
understand our responsibility towards the welfare of human life.
Scholarships: With the avowed aim of helping the needy and deserving
students wanting to undertake post graduation/ higher studies in Pharma
Science in India and abroad, the company through the Suresh Kare-Indoco
foundation sponsors the scholarships.

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OWNERSHIP PATTERN
Mr. Suresh G. Kare : Executive Chairman
He is the Executive Chairman of Indoco Remedies Ltd. He has been at the helm of the companys
affairs for forty-nine years and is responsible for the its transformation from a small sick unit in
1963, to the global, fast growing, profitable organization that it is today. Suresh G. Kare has a
technical background and is recognized for his leadership and vision. He is a multi-faceted
personality whose love for arts, sports and social service complements his strong business acumen.
Under his stewardship, Indoco has achieved innumerable milestones. Suresh G. Kares four decades
of pharmaceutical experience is the key to the companys fast paced growth in the domestic and
international arena. He is also the immediate Past-president of the Indian Drug Manufacturers Association (IDMA).
Ms. Aditi Kare Panandikar : Managing Director
Having worked in various departments in different capacities, Aditi has steadily climbed the
corporate ladder and is now a Managing Director on the board at Indoco Remedies Limited. She
heads Domestic Marketing, Business Development, Technical, H.R. and the API Business at Indoco.
Aditi Kare Panandikar, a Pharmacist by profession, has earned her basic degree in Pharmaceutical
Administration from the Ohio State University, USA. A third generation entrepreneur, she joined the
family business soon after returning back in 1992.
Mr. Sundeep V. Bambolkar : Jt. Managing Director
A Pharma professional with over 25 years experience in the industry, across various functions such
as Finance, Operations, Purchase, Projects and International Business. As Jt. Managing Director he is
overall responsible for all Manufacturing as well as Supply Chain Operations, the Finance Portfolio
and
the
International
Formulation
Business
at
INDOCO.
He is a science graduate and holds a Masters degree in Business Administration from the Mumbai
University. He has also trained in the field of management at the Indian School of Business,
Hyderabad and the Kellogg School of Business, Chicago, USA. Sundeep V. Bambolkar has been with the group since
1982.
Mr. D. M. Sukthankar - Non-Executive Director

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He holds Master Degree in Commerce from Bombay University. He was selected for IAS (Indian
Administrative Service) in 1956 and served in various capacities in different departments of the
Govt. of Maharashtra and the Govt. of India for a period of 35 years, prior to his retirement on 31st
August 1990 as Chief Secretary to the Govt. of Maharashtra. During the period from May, 1981 to
November 1984, he also worked as the Municipal Commissioner of Greater Bombay. After his
retirement, he has worked and is working as chairman or member of various Boards/Committees
appointed by the Government of India and Government of Maharashtra. Mr. Sukthankar was
appointed on the Board on September 10, 1994.
Mr. D. M. Gavaskar - Non-Executive Director
He is a Chartered Accountant and Company Secretary. Mr. Gavaskar is a Commerce Graduate from
the University of Bombay and he has also completed from U.K. a course in Strategic Management
and another course for Senior Management from Templeton College, Oxford University, and Henley
College of Management, respectivelyMr. Gavaskar has been inducted as an Additional Director on the
Board with effect from April 11, 2005 and would hold office until the next Annual General Meeting.
Mr. Sharad P. Upasani - Non-Executive Director
He has occupied the highest position in Maharashtra State Administration as Chief Secretary. He
joined Indian Administrative Service in 1962. Prior to that he had obtained post-graduate degree of
Master of Commerce and also did Bachelor of Law from University of Bombay. After joining service in
1968 he did Masters of Business Administration in U.S.A. Shri. Upasani has varied experience in
Administration as he had the opportunity to work both in State and Central Government and Public
Sector Corporations. From 1974 to 1978, Shri. Upasani was on deputation to International Monetary
Fund,
Washington,
USA.
After retirement in 1996, Upasani is practicing in the field of Corporate Law and has acted as Arbitrator in variety of
cases including infrastructure projects. In addition to his legal practice and arbitrations, Shri. Upasani is also VicePresident of M. Visvesvaraya Industrial Research & Development Centre, (World Trade Centre), Mumbai and
President of Consumer Council of India.
INFRASTRUCTURE FACILITIES
Chart 5: Existing Manufacturing Facilities :
Site
Goa I
Dosage Form
Tablets UKMHRA,
Approvals
German Brazil ANVISA, MCC,
SA,TGA

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Creams and Ointments

Goa II
UKMHRA
Sterile Eye drops
Goa III
Tablets/Cap
USFDA, MCC, SA
UKMHRA, German Brazil
ANVISA, MCC, SA,TGA

Waluj
Tablets
Baddi
ROW
Tablets & Liquid
UKMHRA,GMP approval
from JAZMP, agency for
Orals Creams
the
medical products and medical devices of
Republic and Ointments Toothpastes of Slovenia
FACILITIES UNDER DEVELOPMENT

Besides the above mentioned facilities, to cater to the increasing demand
and opportunities, the company has various other expansions being
undertaken.
Goa Expansion: The Company is setting up a new plant in Goa (Plant II)
with the allocation of `480 mn. Through this expansion the company would
double its tablet manufacturing capacity to 10 bn per annum. The trials,

Page 29 of 73
production and validation activities are expected to commence by January,

2011.
Ophthalmic facility: Indoco has completed the expansion of the

ophthalmic sterile facility. The validation activities are in progress and the
company is expecting to start manufacturing the exhibit batches in the
current quarter.
Expansions at Aurangabad: The Company has also acquired a plot in

Aurangabad which would have a unit to serve the emerging markets. The
existing storage of the company will be shifted to the new premises
purchased.
At the vacant space, Indoco intents to put up a tablet
manufacturing plant and construct a well equipped laboratory and QC facility

at the plant. The capitalization of this activity would be done by March 2011.
Modernization
activities:
The
Company
is
also
undertaking
modernization of its existing facilities at Baddi and Waluj facility after the API
facility at Patalganga is done. Part of the capex would also be spent towards
its R&D facilities.
All of these expansions being undertaken by the company should help it
enhance its capacities to meet the increasing demand.
BUSINESS PROFILE OF THE COMPANY

The major business segments of the company include Formulations, API and
R&D. About 70% of the revenues come from the domestic markets &
remaining through exports. 95% of the revenues are derived from the

Page 30 of 73
Formulations space and the balance by the API. 80% of the total exports is
contributed by the regulated markets dominated by UK and Germany while
the remaining from the emerging markets. Chart 6: Business Model and
Geographical distribution:
BUSINESS MODEL
Domestic formulations business: contributes 65% to the revenues:
Indoco currently markets 200 products (incl. line extensions) focusing mainly
on Anti-infectives, Respiratory & Dental that comprise of ~ 56% of the total
domestic formulation revenues.
There are 7 major marketing divisions including the two new divisions
introduced, through which the company focuses on different therapeutic
segments. It has a product basket of branded generics and value added
generics across these divisions.
Indoco: It is one of the largest & oldest divisions with a contribution of
~48% to the revenues catering to
segments like anti-infectives, GI,
respiratory and dermatologicals. The top products include Cyclopam, Vepan,

Oxipod, Cloben-G and Karvol plus.
Spade: This division caters to the therapeutic segments of Anti-cold, Antiinfectives, Haematinics and Calcium supplementation. The top products
include Febrex Plus, ATM, Aloha XT and Methycal which are also the potential
products in terms of future growth.

Page 31 of 73
Warren: This division is formed from the acquired company Warren Pharma
Ltd in 1999. It is at the numero uno position in the dental care category. The
other therapeutics includes stomatological, anti-infectives and analgesics. In
terms of the products, the top performers are Sensodent K, Sensoform,
Sensodent KF & Lignox 2%.
Spera: This division has been formed by transferring some of the potential
products from the Indoco division. Some of these products include Cital,
Carmicide that are growing at around 30%.
Excel: This niche segment caters to the needs of Ophthalmologists and ENT
specialists. The growth of this segment is attributed to the products like
Homide, Dexoren-S, Renolen etc.
New division
Xtend: This division is launched to strengthen & increase the presence in
the extra-urban towns for the key therapeutics like anti-infectives, pain
management,
anti-peptic
ulcerants,
appetite
enhancers
and
lipid
management.
Eterna: With the intention of building up on the growing doctor specialities
such as the CPs, Orthopaedicians, Gastro-enterologists and top GPs, Eterna is
started catering to anti-infectives, gasto-intestinals, pain management to
mention a few. Thus, with the different divisions mentioned above, Indoco
has established brands that have a leadership position in their respective
therapeutic segments.

Page 32 of 73
FUTURE GROWTH AND PROSPECTS

industry.
INTERNATIONAL STRENGTH:
Exports: Formulations segment:
This segment contributes around 29% of the total formulations sales of the
company.
Through
this
business
segment,
Indoco
does
contract
manufacturing and supplies different molecules. It sells dossiers and has tieups for certain ANDA's. Added to this it has started filing its own ANDA's as
well. Also deals with the MNCs (Watson and Aspen) that Indoco has recently
entered, should help add to the contribution from this division. These would
gradually have substantial inputs to the business.
Major contributor for formulations: Regulated markets: Around 83% of the
Export Formulations business is through the regulated markets catering to
countries like US, UK, Germany, Eastern Europe, South Africa, Australia and
New Zealand of which UK and Germany are at the forefront. The UK markets
contribute more than 50% of the total regulated markets contributions and
Germany more than 25%. The share is expected to further increase backed
by the contractual supplies and tender business respectively.
Increasing the market exposure:
P Progress in Europe: The Company has spread its wings in the European
markets with the focus on licensing or selling of Indoco's own intellectual

Page 33 of 73
property (dossiers). The filings in South Africa, Australia and New Zealand are
progressing well for the company.
P Debut in South Africa: South Africa is emerging as an important market for
Indoco considering the future prospects. The Company has various generic
companies
with
developments.
which
it
has
partnered
for
products
and
dossier
With a dozen of products that it already supplies, it is
expected to increase further due to the conscious focus on tapping this

market by Indoco.
TENDER BUSINESS
This is one of the important segments of the regulated markets business of
the company. Indoco is in plans to increase the number of product
applications in the follow up round of bidding for the tender business in
markets of Germany, South Africa and New Zealand. This should provide
further impetus to the business. In
Germany, Indoco plans to file for new AOK tenders that are lined between
March 2011-13 (5 products through its partners). In the previous round of
bidding the company had filed for 2 products and received approval for one.
The supplies for the tender that was bagged in Q3FY10 from Kenya have
started from February 2010. Going forward such tenders are expected from
different other markets as well that are catered by the company.
TO CAPTURE THE SEMI-REGULATED MARKET OPPORTUNITIES
Indoco has commissioned a dedicated ophthalmic facility that would cater to
the regulated markets and is expected to go on-stream from FY12E. This step

Page 34 of 73
has been taken as the company plans to file ANDAs and enter into the US
markets (mainly caters to the ophthalmic space) which did not contribute
substantially owing to the slowdown in business from its US partner Amneal
Pharmaceuticals. This would also get a further impetus through the product
development alliance that the company has recently entered into with
WATSON for seven sterile products which includes ophthalmic products as
well.
TO CAPTURE THE SEMI-REGULATED MARKET OPPORTUNITIES

In the semi-regulated markets that Indoco caters to namely CIS, Latin
America, Africa and South East Asia, receivables have always been an issue.
These markets have the major hurdle of payment related issues. To deal with
these the company is venturing into tender based business model and
partnerships/alliances for better placing in these markets and further
penetration. Besides the core business, Indoco has also entered into new
dossier licensing and supply deals with Watson Inc. (WATSON) and Aspen
Pharmacare (ASPEN) in Q4FY10. Both these deals are the key growth drivers
for Indoco post FY12E once all the approvals and other regulatory issues are
in place.
DEAL WITH WATSON
Indoco entered into an alliance for generic product development with
WATSON for seven sterile products in Feb, 2010 having a market size of

Page 35 of 73
~USD 679 mn. The deal includes ophthalmic and a few patented products
also.
DEAL WITH ASPEN
Indoco entered into a dossier licensing and supply deal with Aspen
Pharmacare, South Africa for supply of 7 ophthalmic products to 30 emerging
countries in March, 2010. Under the agreement, Indoco will licence out the
technology and supply the products. Aspen will market the products in
emerging markets. It is expected that the arrangement would boost sale
proceeds of the Company. ASPEN is in the process of getting the regulatory
approvals.
Second Line of Business: API (Active Pharmaceutical Ingredients):

The Second line of business for Indoco is the API manufacturing that it offers
to the domestic as well as the international markets. The Company has
recently completed the expansion at its API facility at Patalganga. Besides
the markets that it caters to, the API segment also contributes to the cost
efficiency of the formulation business as it serves for captive consumption.
The Company has 8 USDMFs and 5 CEPs (Certificate of Suitability) with many
other projects under development and regulatory submissions.
Growth maintained through the base business:

The base business of the company would remain the key factor for growth, a
combination of the domestic divisions as well as the export business. The

Page 36 of 73
strategies to capture the regulated markets are in place. The base business
through the semi-regulated markets would remain flat due to the payment
issues in selected CIS countries which is being addressed by the company,
sorting measures to insulate itself from this dependency by adopting the
tender business model and entering into partnership as mentioned earlier.
Source: Company
PRODUCT
Through its different marketing divisions, the company caters to different
therapeutic segments each of which has key brands to offer. With regards to
its top brands, the top 12-13 products contribute around 60% of the total
revenues.
Key Therapeutic Areas
Therapeutic Segment
Contribution
Anti-infectives
21%
Dental
15%
Respiratory & Anti-allergy
19%
Alimentary Systems
13%
Source: Company
DPCO (Drug price Control Order) hurdle: Of the total product profile,
12% by value is under the DPCO bracket. Only one of the top brands, namely
Vepan falls under the
DPCO control which had discouraged the company from promoting the
brand. However, it would now be back on the promotional radar as the raw
material suppliers for the product have agreed to give further discounts to

Page 37 of 73
the company. This has made the supply of Vepan viable for Indoco and
should again start contributing to the top line of the company.
:
Major Brands of the Company
Product basket
Category
Cyclopam
Antiplasmodic
278
Febrex Plus
Anti-Cold
316
Vepan
Brand Value (In Mn)
Anti-infective
Sensodent
Dental
167
214
ATM
Anti-infective
154
Oxipod
Anti-infective
21
Clamchek
Anti-infective
44
Sources: ORG DATA
Therapeutic Performance (In mn):

Particulars
AprMar 10
Contribution
(%)
Anti-infective
Resp & Anti-allergy
584
521
19
Dental
420
Alimentary Systems
369
Opthalmic/ENT
152
Anti-Diabetic
135
Dermatology
21
15
13
6
5
133
Nutrition
132
Urinary
96
Analgesics & Antipyretics 73
Cardiovascular System
73

Page 38 of 73
Anti-haemorrhagics
38
Musculo-skeletal disorders
TOTAL
14
0.49
2740
100
Recent Reporting of product performance: (In ` mn)

Particulars
AprJun 10
AprJun 09
Growth
Anti-infective
Stomatologicals
12595
12051
5%
11918
9613
11853
11378
24%
Gastro Intestinal
4%
Respiratory
10756
10264
5%
Gynaec
5255
Ophthal / Otologicals
4263
Vit / Minerals / Nutrients

Pain / Analgesic
Diabetic & Cardiac
4652
3605
3742
3737
18%
3147
3352
5343
13%
19%
11%
6526 -
18%
Dermatology
3455
3294
5%
Source: Company
Product Pipeline:
The bio equivalence study for the anti-psychotic formulation has been
cleared thus paving way for dossier filing in Australia and South Africa. The
plan to file this dossier in EU and US is being taken further in view of the

Page 39 of 73
expected positive move of bioequivalence studies with the product in

reference to the Australian markets. The bio
studies for a cholesterol lowering formulation is in progress and the results
will be known by Q2-Q3 FY11E.
R&D Activities:
Indoco has a state-of-the art R & D centre located at Rabale, Navi Mumbai
where it undertakes formulation development, API research and regulatory
activities. Indoco's specialization includes New Drug Delivery systems
(NDDS) and Technology Platforms for finished dosages and no infringing
processes for APIs and Intermediates. The company has over 50 scientists
that are estimated to go to 90-95 gradually. It has 926 formulation dossiers
of 161 products submitted to 54 countries. Indoco has submitted 20 dossiers
to
theEuropean authorities and is developing 22 more dossiers for the
European markets. It has submitted 8 MF with USFDA and 1 to Canadian drug

authorities. It has submitted 20 dossiers to 50 customers in Europe,
Australia, New Zealand and S. Africa. (Source: Company)
Regulatory Status of the Company
API
DMF/CoS filing status:
Project
US DMF
Status of Projects
8
Canada
Cyprus

Page 40 of 73
US DMF under progress
EU DMF under progress
COS approval received
Finished Dosages
Dossier Filing Status:
Project
Status No of Projects
US ANDA
EU CTD
20
Emerging Market
961
US ANDA under progress
EU CTD under progress
Emerging Market under progress
20
API
Patents filed till date
No of Patents
India
12
PCT application
Finished Dosages
Patents filed till date
India
No of Patents
13
PCT application
Source: Company

Page 41 of 73
During the next couple of years, Indoco plans to have a dozen ANDA's filed in
its name. The company is also contemplating on its plans to register its own
dossiers in Europe through DCP (Decentralized Procedure) & MRP (Mutual
Recognition Procedure).
COMPETITORS
There are no such direct peers for the company, however across the different
business segments there could be an indirect comparison with companies
like Unichem Laboratories (Formulations and API manufacturer) and FDC
(into the bulk drugs, formulations and API space). Elder Pharma (API
manufacturer), Indoco is also another company that can be an indirect peer
for Indoco.
Key Risks
Impact due to exchange fluctuations: With increasing growth in the
exports business there is a gradual increase in the exposure of the company
to forex transactions and currency related risks. However, the company is
taking initiatives to hedge using forward contracts.
Price Control: Currently Indoco is complying with the prices fixed for its
product basket by the DPCO. However, any further reduction in these prices
or addition of newer products under the DPCO cover would affect the
revenues and margins of the company.
Delay in execution of contracts: Key to profitability is execution and
timely delivery of products to clients. Any delay in execution of contracts will
have impact on revenue and profitability.

Page 42 of 73
Sustainability of the partnership model: Indoco had a muted JV with

Amneal pharma for ophthalmic products wherein the deal is trimmed to a
limited few products. Any
such outcomes in terms of the deal signed with Watson and Aspen could
hamper the earnings going forward.
Pharmas New DTC Guidelines
Companies
should
submit
all
new
direct-to-consumer
television
advertisements to the FDA before releasing them for broadcast
DTC television advertising that identifies a product by name should

clearly state the health conditions for which the medicine is approved
and the major risks associated with the medicine being advertised
DTC television and print advertising should be designed to achieve a

balanced presentation of the benefits and risks associated with the
advertised
prescription
medicine.
Specifically,
risks
and
safety
information in DTC television advertising should be presented in clear,

understandable language, without distraction from the content, and in
a manner that supports the responsible dialogue between patients and
health care professionals
Companies should spend an appropriate amount of time to educate

health
professionals
about
new
medicines
or
new
therapeutic
indications before beginning the first direct-to-consumer advertising

campaign

Page 43 of 73
SWOT Analysis
STRENGTHS:
1. Low cost of production.
2. Large pool of installed capacities
3. Efficient technologies for large number of Generics.
4. Large pool of skilled technical manpower.
5. Increasing liberalization of government policies.
OPPORTUNITIES:
1. Aging of the world population.
2. Growing incomes.

Page 44 of 73
3. Growing attention for health.

4. New diagnoses and new social diseases.
5. Spreading prophylactic approaches.
6. Saturation point of market is far away.
7. New therapy approaches.
8. New delivery systems.
9. Spreading attitude for soft medication (OTC drugs).
10. Spreading use of Generic Drugs.
11. Globalization
12. Easier international trading.
13. New markets are opening.
WEAKNESS:
1. Fragmentation of installed capacities.
2. Low technology level of Capital Goods of this section.
3. Non-availability of major intermediaries for bulk drugs.
4. Lack of experience to exploit efficiently the new patent regime.
5. Very low key R&D.
6. Low share of India in World Pharmaceutical Production (1.2% of
world production but having 16.1% of world''s population).
7. Very low level of Biotechnology in India and also for New Drug
Discovery Systems.
8. Lack of experience in International Trade.
9. Low level of strategic planning for future and also for technology
forecasting.

Page 45 of 73
THREATS:
1. Containment of rising health-care cost.
2. High Cost of discovering new products and fewer discoveries.
3. Stricter registration procedures.
4. High entry cost in newer markets.
5. High cost of sales and marketing.
6. Competition, particularly from generic products.
7. More potential new drugs and more efficient therapies.
8. Switching over form process patent to product patent.
Opportunities and Threats
There is a huge opportunity of $170 billion worth drugs going off patent by
2015, coupled with healthcare reforms across geographies turning progeneric. India still remains a major force in the Pharma space and has
tremendous potential to excel, both within the country and globally.
On the domestic front, the GDP growth of around 7%, increase in healthcare
access and higher penetration into smaller towns will boost the growth rate.
The Industry is facing certain challenges in the areas of price control,
increasing scrutiny by regulatory authorities and delayed product approvals.
Fluctuation in currencies, field force attrition and counterfeit drugs are some
of the other factors that adversely affect the growth of the Indian
Pharmaceutical Industry.
At the micro level, pricing pressure especially in anti-infectives is increasing.
The new price-control mechanism being formulated by the Government is
expected to create challenges for the progress of the industry. In spite of
these challenges, the burgeoning Indian population with increase in income

Page 46 of 73
levels, health awareness and better reach of medicines offers tremendous

growth opportunities for the Pharma.
WORK FLOW MODEL (END TO END)

COMPANYS MARKETING & DISTRIBUTION:
Indoco follows push strategy with robust distribution system as
Follows:
INDOCO
PLANT
COMPANY
WAREHOUSE
C&F
CONSUMERS
DISTRIBUTORS
WHOLESALE
&
RETAILER
The sale generated by company to distributor is termed as Primary

Sales.

Page 47 of 73
Indoco doesnt believe in advertisement. It has aggressive and

Vibrant field force to promote their products in the market especially
To stockiest, retailers as follows:
ASE
ASM
SRVP
RSM
GM
ZSM/DSM
DGM
SM
DIRECTOR
The sale generated via this channel is termed as Secondary sales.
ANALYSIS OF FINANCIAL STATEMENT
BALANCE SHEET
As at 31st March, 2012
(` lakhs)
As at 31.03.2012 As at 31.03.2011
I. EQUITY AND LIABILITIES

1) Shareholders Funds
(a) Share Capital.
(b) Reserves & Surplus ..
2) Non-Current Liabilities
(a) Long Term Borrowings.
(b) Deferred Tax Liabilities (Net).
Current
Year
previousYe
ar
1,228.67
37,247.38
38,476.05
1228.67
33791.26
35019.93
4,677.64
2,938.19
5404.54
2572.02

Page 48 of 73
(c) Other Long Term Liabilities .

(d) Long Term Provisions .
3) Current Liabilities
(a) Short Term Borrowings..
(b) Trade Payables.
(c) Other Current Liabilities .
(d) Short Term Provisions
TOTAL
II. ASSETS
1) Non Current Assets
(a) Fixed Assets
(i) Tangible Assets.
(ii) Intangible Assets.
(iii) Capital Work In Progress
(iv) Intangible Assets Under Development
(b) Non Current Investments
(c) Long Term Loans And Advances
(d) Other Non Current Assets
2) Current Assets
(a) Inventories
(b) Trade Receivables
(c) Cash and Bank Balances
(d) Short Term Loans And Advances
(e) Other Current Assets
TOTAL ................................................
914.82
456.3
8,986.95
883.95
349.51
9210.02
4,146.14
7,645.42
4,949.38
1,432.75
18,173.69
65,636.69
2277.40
4660.82
3746.31
1407.34
12091.87
56321.82
28,343.80
1,818.50
1,688.61
1,572.17
12.1
5,518.67
294.06
39,247.91
20633.59
628.13
3297.37
1972.29
2.10
6881.45
325.13
33740.06
10,188.70
11,371.36
1,047.93
3,550.24
230.55
26,388.78
65,636.69
8042.10
9178.65
2379.74
2926.01
55.26
22581.76
56321.82
RECOMMENDATION
Indoco Remedies Limited is involved in API, Formulation and CRAMS business
and with a wellbuilt brand portfolio, it caters to various therapeutic
segments, including high growth life style segments such as AntiInfectives,
AntiDiabetics, Cardiovascular, Central Nervous System, MusculoSkeletal,
Nutrition and Dental care. It derives approximately 98.0% of its total

Page 49 of 73
revenues from Formulations business and balance from API. Its recent
alliance with Watson Pharma and Aspen Pharma would help it increase its
presence in USA and Africa region.
IRL has posted numbers which are very much inline with our estimates at the
topline and bottomline levels. We have broadly maintained our Revenues and
Profit estimates for FY 2012 and also introduced FY 2013 estimates. Due to
lack of information on contribution from Aspen and Watson deals, we have
not incorporated the numbers from them in our valuation for FY13. We
expect its Revenues to grow by 19.8% in FY12E & by 19.0% in FY13E and its
APAT to grow by 13.8% & 24.9% in FY12E & FY13E respectively. With various
cost cutting measures, we expect IRL to achieve EBITDA margin of 15.7%
during FY 2013. At the current market price of ` 423, IRL is available at 7.2x
its FY13E EPS of ` 59.1 and 1.1x of its FY13E Book Value. It is currently
trading at 0.8x its FY13E Sales. We maintain our BUY rating on the stock at
current levels for target price of ` 587. (10.0x FY13E EPS).
Valuations and Comments:

With the backing of the marketing divisions, Indoco has a strong foothold in
the domestic markets. Through these divisions, the company serves a huge
doctor's base catering to a wide range of therapeutic segments. Besides this,
on the international front, along with the traditional business model, the
company has entered into alliances with MNCs in order to add new
customers and markets to its kitty. The signing of the
contracts has established the company's credentials as a reliable service
provider for finished dosage forms. (FDFs). Maintaining a positive outlook on
the company with the triggers being the potential upside from strong growth

Page 50 of 73
in the domestic market, long-term contracts with Watson and Aspen and
growth expected from the global markets we initiate a BUY rating on Indoco
Remedies Ltd with the target of `578 over the next 12 months.
We have valued the company on the basis of the PER valuation methodology.
At a CMP of `448, the stock is trading at 11x and 10x its FY11E and FY12E
EPS of `42 and `44 resp. Our one year price target of `578 for Indoco would
provide 29% upside from current levels. (SOURCE IOF INFORMATION :
INTERNET )
Overall summery
During the year, Indoco registered a growth of 16.9% in revenue , despite the
year being full of challenges.
The domestic business a growth of 11.0% at rs 3575.0 million as against rs
3219.6 million last year.
In the international space , Indoco has performed well by a growth of over
28.9%, despite the slow down in the US and euro zone.
The companys API business, which is still in a nascent stage , grew by 20%
at rs 355.2 million as aginst rs 296.1 million in the last year.
LEANINGS EXPERIENCE
Learning beyond classroom
Platform for implementing theoretical concepts
Exposure to corporate culture

Page 51 of 73
Experience under belt

Insight of actual strengths and weaknesses
Developing a network
Refinement of Career goals

Soft skill development
Impart Winning Edge
SWOT ANALYSIS
STRENGTHS:
1. Low cost of production.

2. Large pool of installed capacities
3. Efficient technologies for large number of Generics.
4. Large pool of skilled technical manpower.
5. Increasing liberalization of government policies.
OPPORTUNITIES:
1. Aging of the world population.

2. Growing incomes.
3. Growing attention for health.
4. New diagnoses and new social diseases.

Page 52 of 73
5. Spreading prophylactic approaches.

6. Saturation point of market is far away.
7. New therapy approaches.
8. New delivery systems.
9. Spreading attitude for soft medication (OTC drugs).
10. Spreading use of Generic Drugs.
11. Globalization
12. Easier international trading.
13. New markets are opening.
WEAKNESS:
1. Fragmentation of installed capacities.

2. Low technology level of Capital Goods of this section.
3. Non-availability of major intermediaries for bulk drugs.
4. Lack of experience to exploit efficiently the new patent regime.
5. Very low key R&D.
6. Low share of India in World Pharmaceutical Production (1.2% of
world production but having 16.1% of world''s population).
7. Very low level of Biotechnology in India and also for New Drug
Discovery Systems.
8. Lack of experience in International Trade.
9. Low level of strategic planning for future and also for technology
forecasting.
THREATS:
1. Containment of rising health-care cost.
2. High Cost of discovering new products and fewer discoveries.
Page 53 of 73
3. Stricter registration procedures.

4. High entry cost in newer markets.
5. High cost of sales and marketing.
6. Competition, particularly from generic products.
7. More potential new drugs and more efficient therapies.
8. Switching over form process patent to product patent.
PART B
GENERAL INTRODUCTION
During my summer internship, I was assigned the project on the new product
of Indoco Remedies Ltd., i.e. PROFERRIN SYRUP of XTEND division, this
product was launched in year March 2011 April 2012 the sale was
between 1500 to 2000 bottles and in 2012 - 2013 financial year sale
come down to 300 bottles, doing its doctor perception analysis, assisting
retailers, and promoting the product to get and upper hand over the
competitors product with the same formula/composition. For these I need to
study the MULTI- VITAMIN market of Goa for this formula, specifically
marketing and sales strategy of Indoco Remedies Ltd. as well as of its
competitors like Sun Pharma, Cipla, FDC, Mankind, Intas, and find out the
regions where Indoco is leading or lacking its competitors. My project was to
study all the major supported products of multi-vitamin formula and
comparing on how Indoco stands against its competitors. Indoco has

Page 54 of 73
launched this product which has got its own USP, i.e. it is mango flavored
and has lowest price, which today no other product has, and this has a
great advantage for Indoco in capturing the market with multi-vitamin
formula.
Product details:
PROFERRIN SYRUP (vitamin, calcium, protein, iron)
Each 5ml contains:

Protein Hydrolysate (milk casein) 1gm
, (equivalent to nitrogen content
0.12gm) vit b2 -2.5 mg, vit b6- 1.5mg, vitb12-2.5mcg, niacinamide- 25mg ,
d-panthenol- 5, ferrous gluconet-100mg, calcium gluconet- 100mg, sorbitol
solution 70% i.p (n.c garde) 0.5gm
Defining the problem

The definition of problem includes the study of Survey to check sale of
Proferrin syrup and multivitamin brands available in the market.
Objectives of the study
To implement theoretical concepts into Corporate by doing marketing
research for Indoco Remedies Ltd.
To find the reasons for less sale of proferrin syrup in goa and to know
possible steps in order to increase the sale.

Page 55 of 73
The main objective of this project is to conduct a Business Research to know

Doctors perception about the products. This study will also assist Indoco to know
where they have to improve to treat Doctors and patients better.
To assist Indoco in promotion of PROFERRIN SYRUP and know where they have
to improve in their service toward Doctors and patients.
SCOPE OF THE STUDY

To study about competitors product, price, pack size and sales thereby
providing significant information to the company.
After the completion of this project, we will have a deeper insight into the multivitamin market in Goa and would make us understand where Indoco actually
lacks and where it has a competitive edge. We will get to know whether it is
customer service or the product itself responsible for its kind of market share or
is there any problem with the brand awareness? After this study we will be able
to know what the Doctors think about Indoco Remedies Limited.
Purpose: To learn as much as I can from Market exposure so that can

contribute to the companys strategy formation.
METHODOLOGY
Visiting Doctors in various regions of South and north of Goa with different
specializations, (MBBS, BHMS, MS, MD, DVD, and GYNAC).
Study Design: The study was done to know the perception of the Doctor,
their attitude towards companys product and promotions.

Page 56 of 73
Sample Design: Collect primary data through exploratory research

specifically field survey by Visiting Doctors of varied kind of specialization.
Tools of data collection:

Questionnaire:
A questionnaire is a research instrument which consists of series of questions
and other prompts for the purpose of gathering information from respondents.
Although they are often designed for statistical analysis of the responses, this is
not always true.
Questionnaires have advantages over some other types of surveys in that they
are cheap, do not require as much effort from the questioner as verbal or
telephone surveys, and often have standardized answers that make it simple to
compile data.
Description of the concepts introduced in the study

An Exploratory Research method i.e. Field Survey was used in this study to collect the data from
various Doctors in goa and the chemists shops near around.
Exploratory research helps us to determine the best research design and data collection method.
There are various data limitations; we need to take decision in short period of time for which
exploratory research is suitable.
Analysis of Survey:

Page 57 of 73
1) Area visited
A) Margao
B) Savordem
C) Ponda
D)Panaji
E) Cansaulim
F) Verna
G) Colva
2) Specialization of a Doctor:
A) MBBS
B) MD (MED)
C) DVD
D)MS (ENT)
E) MD (GYNC)
F) BHMS
G) MD (PED)
H)MS

Page 58 of 73
Total no of doctors as per the specialization who like to prescribe

multivitamin syrup are 120.

Page 59 of 73
Above graph based on pharmacy survey:

Page 60 of 73
DATA ANALYSIS AND ITS INTERPRETATION
1. Do you know about Indoco Remedies Ltd. Company?

RESPONSES
YES
NO
% OF RESPONDENTS
100
0
Interpretation:
As per the doctors survey all doctors knows about Indoco and
talking to them I find Indoco has maintained good repo with doctors.
2) Do you know Proferrin Syrup of Indoco Remedies Company?

Page 61 of 73
ANSWER
YES
NO
% OF DOCTORS
89.16666667
10.83333333
NO OF DOCTORS
107
13
Interpretation:
As per above graph 89% of doctors says that they knows about proferrin
syrup and 11% doctors from north goa they were unknown about it.

Page 62 of 73
3) Does reminding product by keeping small gifts (like stapler,

pen stand, note pads etc) on your table would make you to
remember the brand name?
likert scale
%
of
doctors
no
of
doctors
Strongly
agree
Agre
e
Niether agree
disagree
and
Nor
Disagree
strongly
disagree
50
25
8.333333
16.66667
60
30
10
20
Interpretation:
50% of doctors strongly agree that if the company reminds them
about product by offering gifts like stapler, pen stand, note pads,
calendars, they will remember the products better, 25% of
doctors agrees to receive such gifts and they can remember, but
8% of doctors neither agree nor disagree specially consultant
doctors, 17% of doctors say that they dont require any gifts as
such they said they only want regular visit of medical reps.

Page 63 of 73
4)
Which company multivitamin brand you prefer to prescribe
most?
NAME OF COMPANY
% OF DOC
NO OF DOCTORS
ALKEM LAB LTD

INTAS
44.1666667
4.16666667
53
5
INDOCO
LUPIN
35
4.16666667
42
5
12.5
15
RANBAXY
Interpretion:
44% of doctors prescribe Alkem ltd product, where as only
35% of doctrs prescribe Proferrin syrup of indoco, 4% 0f
doctors prescribe intas , 13% of doctors prscribe ranbexy
and 4% of doctors prescribr lupin brand.

Page 64 of 73
5) Does regular visit of medical representatives to

doctors is Important?
Likert Scale
% of Doctors
No of Doctors
Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree
66.66666667
29.16666667
4.166666667
0
0
80
35
5
0
0
Interpretation
Above graph shows that if the MR regularly visits doctors twice a month then
67% of doctors says that they will remember product better and they will
prescribe, even if they know product and if MR dont visit them then they
may not prescribe,
29 % of doctors say that regular visit helps them to remember product and
MR should meet as per told to them (appointment). 4% doctors did not say
anything but they say if MR with same company and product is working for

Page 65 of 73
more then 10 years then they may not require regular visit, even one sms
will do.
6) Does
high
price
of
product
effects
doctor
Prescriptions?
Likert Scale
Strongly Agree
Agree
% of Doctors
58.33333333
25
No of Doctors
70
30

Disagree
11.66666667
4.166666667
14
6
Strongly Disagree
Interpretation
If the product is priced very high as compared to competitors
brand then 58% of doctors will change brand who is priced low ,
25% of doctors says they will give some prescription if MR is
visiting regular , 12% of doctors dont say anything , 4% of

Page 66 of 73
doctors say price doesnt matter if product is really effective to

patients.
7) Does bounce of prescriptions will make you to change

preferred brand?
Likert Scale
Strongly Agree
Agree
Disagree
Strongly Disagree
Grades (L.S)
1
2
3
4
5
%
Doctors
33
42
6
10
9
of
No of Doctors
40
50
7
12
11
Interpretation
If the doctor prescribe medicine and if that medicine is not
available in the nearby pharmacy then 33% of doctors strongly

Page 67 of 73
agree that they will change the preferred brand and they may not
prescribe it in future , 42% of doctors will says they will change at
that moment but will continue when it will available , 6% says
that it doesnt matter , 10 % of doctors say that they
will not change their brand in future , 9% says that they will never
change , so major doctors says that they may change their prefer
brand , thats why
8) Does frequent change in company representatives makes me

to stop prescribing proferrin syrups?
REPLY
YES
NO
% OF DOCTORS
NO OF DOCTORS
90
10
108
12

Page 68 of 73
If yes how long you will take to restart prescription of

same product?
DELAY IN MONTHS
1
>1<2
>2<3
>3<4
>4<5
>5<6
% OF DOCTORS
17
25
38
8
8
4
NO OF DOCTORS
20
30
45
10
10
5
Interpretation
90% of doctors says that if medical representatives (MR) resign
soon from job then they will stop prescribing and even after new
MR re joins, on an average at least for three months they will not
prescribe , doctors will observe if MR is regular or not or his
intention to leave job . If they found that MR is regular and loyal

Page 69 of 73
to company then they will start prescribing heavily. And 10% of

doctors dont find any difference they said that product is very
effective and they will prescribe because of company reputation
and not for MR.
LIMITATIONS OF THE STUDY

1. Found a little bit difficulty initially in meeting with the company guide to
get the assignments due to his busy schedule.
2. Company didnt want to involve trainees in their business directly.
3. Most of the chemist doesnt provide their Sales information easily.
4. Some doctors dont allow inside clinic due to heavy patients.
CRITICAL ANALYSIS:
On the period of internship I observed Job Descriptions and Responsibilities of
the employees were Multi-tasking. The environment of the workplace is
entirely different from the concepts which I studied in books. So I found that
to survive in the cut-throat competitive era we need to develop multi-tasking
skills along with dynamic personality and strong communication skills.

Page 70 of 73
RECOMMENDATIONS
There are few recommendations from my side which can be beneficial for the
company
Are:1) Employees should be trained according to the changing standards of
the
Organization.
2) Company should conduct survey from time to time according to which
changes can be introduced in the organization to stay updated in the
market.
8) They should introduce creativity into the work, so that the employees
can do their work passionately.
4)
Employees should be more involved in decision making to become
more
Differentiated.
5) Company must take good care of their MRs so that they will not leave
job soon. If they do so it will effect the reputation of company.

Page 71 of 73
FINDING
Pharmaceutical industry totally depends on the relationship among the
doctors and the chemist shops. Medical representative has to maintained
good relationship with the doctors and chemists to get good business.
I have notice that if medical representative resign from job then doctors stop
prescribing , even after new MR join at least for first three months doctors
will not prescribe. And during 2012- 2013 ABM , two MR resign from job
which effects sale.
Indoco has approximately 35 % of market share among the selected
company.
Indoco is facing great competition from its competitors. The medical
representative of competitors is very much active.
Companies present marketing efforts is able to convenience 35% of doctors
to prescribe
Proferrin syrup to their patients. And doctors respond well to
the activities.
Company reputation plays very important role in market.

Page 72 of 73
Conclusion
There can be various ways through which a business organization can
achieve success in the market. It can be rightly said it revolves specially
around three parties or more ; the triangular linkage or the relationship
between these three parties ( company , customer and competitors )
determine the success and failure of business organization. In the medium to
long run, the domestics pharmaceutical market has increasing prevalence of
nutritional supplements segments. The basis of success in any competitive
context can be, at the most , elemental level commercial success; and
commercial success can be derived either from a cost advantage or value
advantage or ideally from a combination of both. The most important thing
is maintaining a good relation with the doctors and the druggist. By
considering these facts Indoco should create its strategies to increase its
market share of the multivitamin segments.

Page 73 of 73

Project Report On Factors Influencing Doctors To Prescribe Multivitamin Syrup

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PROJECT REPORT ON

Factors Influencing Doctors to Prescribe Multivitamin Syrup

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

GREEK NATURAL PHILOSOPHY

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

THE INDUSTRIAL REVOLUTION

The progress made by this new industry is demonstrated by the

THE TWENTIETH CENTURY PHARMACIST

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

appropriate Formulation and Dosing, as well as to establish safety.

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Capital required for late stage development has made it a historical

ORIGINS AND EVOLUTION

companies all started out as Rhine-based family dyestuff and chemical

seventies with the introduction of tighter regulatory controls, especially

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ofgenerics5. The new regulations revoked permanent patents and

For branded products, a result of which the market for branded

INCREASING POLITICAL ATTENTION:

THE SOCIAL DIMENSION

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Modern scientific and technological advances in science are forcing

INDIAN PHARMACEUTICAL INDUSTRY

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

impetus to Indian pharma companies and helps maintain the growth

PATENTS AND GENERICS

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

DIAGNOSTIC OUTSOURCING/ CLINICAL TRAILS

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Framework and strong financial markets. There is already an established

GOVERNMENT INITIATIVES AND INVESTMENT

competitive scientific manpower for pharma

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

sector in the country by investing US$ 15.86 million into

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

THE CHANGING PRESCRIPTION

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Indian pharmaceutical industry is mounting up the value chain. From being a

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Central Nervous System (CNS), Anti Diabetic are expanding at double-digit

RESEARCH & DEVELOPMENT

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Research & Development is the key to the future of pharmaceutical industry.

collaborative R & D in India. India can offer several strengths to the

scientific talents who can develop combinatorial chemistry, new synthetic

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

15 The R & D expenditure by the Indian pharmaceutical industry is around

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

strong base considering the real availability of clinical materials in diverse

(CROs). Indian Pharmaceutical Industry, with its rich

scientific talents, provides cost-effective clinical trial research. It has an

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

However in 1947, after India became

independent, the new Government in its bid to encourage indigenous

Pharmaceutical Ingredients (APIs) in India. It has a strong international

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

Diabetics, Central Nervous System, Musculo-Skeletal, Nutrition and Dental

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,

ANGADI INSTITUTE OF TECHNOLOGY & MANAGEMENT, BELGAUM,