Industry Profile: Shree Swami Atmanand Srarswati Ayurvedic Co-Operative Pharmacy LTD

Shree Swami Atmanand Srarswati Ayurvedic Co-operative Pharmacy Ltd.
INDUSTRY PROFILE
 Introduction:-
Figure 1
Ayurvedic medicines are produced by several thousand companies in India,

but most of them are quite small, including numerous neighborhood pharmacies that compound
ingredients to make their own remedies.
The industry has been dominated by less than a dozen major companies for
decades, joined recently by a few others that have followed their lead, so that there are today 30
companies doing a million dollars or more per year in business to meet the growing demand for
Ayurvedic medicine.
The products of these companies are included within the broad category of “fast
moving consumer goods”. Most of the larger Ayurvedic medicine suppliers provide materials
other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries, where
there may be some overlap with Ayurvedic, such as having traditional herbal ingredients in the
composition of toiletries.
Shree Uttar Gujarat BBA College Page 1

Figure 2
Dhanvantari, the god of Ayurveda, worshipped at an Ayurveda expo in
Bangalor.
Ayurveda medicine, is a system of medicine with historical roots in the Indian
subcontinent.Gobalized and modernized practices derived from Ayurveda traditions are a type of
complementary or alternative medicine.
In the Western world, Ayurveda therapies begin with legendary accounts of the
transmission of medical knowledge from the Gods to sagas, and thence to human physicians.
Thus, the Sushruta Samhita narrates how Dhanvantri,” greatest of the mighty
celestial,” incarnated himself as Divodasa, a mythical king of Varana, who then taught medicine
to a group of wise physicians,including Sushruta himself.
Ayurveda therapies have varied and evolved over more than two
millennia.Therapies are typically based on complex herbal compounds, while treatises
introduced mineral and metal substances. Ancient Ayurveda treatises also taught surgical
techniques, including rhinoplasty, perineal lithotomy, the suturing of wounds, and the extraction
of foreign objects.

 MARKET IN INDIA
Table 1
Marketing always starts with the customer and ends with the
customer as they are the valuable assets for the country. Marketing is a business activity by which
it means the flow of goods and products from the manufacturer to the customer.
According to Philip Kotler who is known as the" Father of Marketing"
defines marketing as "A social and Management process by which individuals and groups obtain
what they need and want through creating, offering and exchanging products of value with
others" is known as marketing.

What are the needs for Pharmaceutical Marketing?
India is emerging as the global hub for contract research and

manufacturing services due to its low cost advantage and world class quality standards. The
introduction of product patent in India has brought some fundamental changes in strategies of
Indian pharmaceutical companies, with focus shifting more towards Research and
Development.India pharmaceutical products are exporting to more than 200 countries around the
world.


Therefore Pharmaceutical marketing helps:
To have a healthy competition

To increase the customer knowledge
To have a better customer relationship
To reduce the initial development costs.

What are the key characteristics of Indian Pharmaceutical Industry?
Low Research and Development Costs
Self-reliance by the production of 70% of bulk drugs and the entire requirement of formulations
within the country
Innovative scientific manpower
Increasing balance of trade in pharma sector

Excellent centre for clinical trials in view of the diversity in population
Increasing balance of trade in pharma sector
Excellent centre for clinical trials in view of the diversity in population

Market share of company in specific industry
The Indian Pharmaceutical industry has been witnessing phenomenal growth
in recent years, driven by rising consumption levels in the country and strong demand from
export markets. The Indian pharmaceutical industry is the most progressive and advanced among
all the developed and developing countries.
Today, India is among the top five pharmaceutical emerging markets in the world.
The market is expected to grow at a compound annual growth rate (CAGR) of 14-17% over
2012-2016. At the projected scale, this market will be comparable to all developed markets other
than the US, Japan and China. The growth in Indian domestic market will be boosted by
increasing consumer spending, rapid urbanization and increasing healthcare insurance.
Indian pharma companies have a large chunk of their revenues coming from
exports. While some are focusing on the generics market in the US, Europe and semi-regulated
markets, others are focusing on custom manufacturing for innovator companies.


Indian Pharmaceuticals – Highlights
Leading Pharma producer: In terms of value the country's pharma industry accounts for 1.4%
and 10% in terms of volume of the global pharma industry.
Among fastest growing Industries: The IPI (Indian Pharmaceutical Industry) revenue is expected
to expand at a CAGR of 17.8 % during 2008-16 and reach USD36 billion.
Rapid growing healthcare sector: By 2015, the healthcare sector is expected to reach USD 100
billion from the current USD65 billion.
Growing Generic Market: The generic market is expected to grow to USD26.1 Billion by 2016
from current USD11.3 billion in 2011; India generics Market has immense potential for growth.
th
Ranked 5 in terms of attracting FDI: Attracted 5% of the total FDIs into India from April
2000 to March 2013.
ECONOMIC ANALYSIS
Table 2
Indian pharmaceutical sector accounts for about 2.4 per cent of the global
pharmaceutical industry in value terms and 10 per cent in volume terms and is expected to

expand at a Compound Annual Growth Rate (CAGR) of 15.92 per cent to US$ 55 billion by
2020 from US$ 20 billion in 2015.
With 71 per cent market share, generic drugs form the largest segment of the
Indian pharmaceutical sector. By 2016, India is expected to be the third-largest global generic
Active Pharmaceutical Ingredient (API) merchant market
Indian drugs are exported to more than 200 countries in the world, with the US as
the key market. Generic drugs account for 20 per cent of global exports in terms of volume,
making the country the largest provider of generic medicines globally and expected to expand
even further in coming years.
The Government of India plans to set up a US$ 640 million venture capital fund
to boost drug discovery and strengthen pharmaceutical infrastructure. The ‘Pharma Vision 2020’
by the government’s Department of Pharmaceuticals aims to make India a major hub for end-to-
end drug discovery.
Figure 3

The United Nations Industrial Development Organization (UNIDO)

has identified about 388 clusters in India in various sectors from textile to chemicals and
pharmaceuticals to food processing. Of these 11 clusters are situated at Cuttack in Orissa,
Hyderabad in Andhra Pradesh, Indore in Madhya Pradesh, Thane, Pune, Aurangabad and
Mumbai in Maharashtra, Margao in Goa, Valsad/Bharuch, Baroda and Ahmedabad in Gujarat, all
dedicated to pharmaceuticals. These clusters are into bulk/ basic drugs manufacturing
SWOT analysis of industry
Strengths :
Wide variety of agro-climatic zones which allows us to grow almost every type of crop/herb in
India.
We also have the requisite expertise - technical/academic as well as operational.
Only issue is that somebody, preferably a Govt.
body has to take the initiative in the correct earnest.
Weakness :
Lack of awareness amongst the growers.
Lack of Marketing infrastructure which leads to distress selling and hence
low revenue generation amongst the few ones who dare to venture into
something that is not routine.
High Cost due to low yield & poor quality of the produce due to non-usage of latest/ scientific
farming technic.
Lack of proper Govt Support. Often it is found that Stae Government officials are not able to
help the farmer in the correct way.
Opportunities :
Plenty. One can go on and on mentioning them.
In gist, the huge potential for increased revenue generation both in the export as well as in the
domestic sector is really very encouraging.

We have a old cultural heritage of Ayurvedic medicine and hence identifying the correct crop
for a particular agro-climatic zone is not a problem at all.
c) Experts/NGOs can help market the produce.
d) Generating employment amongst among the rural folk.
Threats :
Lack of education amongst the farmers makes them very vulnerable especially in the hands of
unscrupulous people.
Indiscriminate shifting from cereals to cash crop can affect the food balance

MARKET SHARE
Total global herbal market is of size 62.0 billion dollars, in this India’s
contribution is only one billion dollars.
It is authentically explained that the position of India in the global market is
very very poor. European union is the biggest market with the share 45% of total herbal market.
Figure 4


Market share of companies in specific industry
TOP LEADING PLAYERS OF INDIAN PHARMACEUTICALS
Revenue Market Total

S. Company Income
(USD in Cap (Rs in
No Name (Rs in
Millions) millions)
millions)
85757(Year
1 omshiva 1566.86 465877.15 ending Mar
2013)
71458.2
2 patanjali 1323.45 438927.25 (Year
ending Mar
2013)
27028.9
3 Ganga 463.934 1293856.0 (Year
9 ending Mar
2013)
65607.07
4 Shri shri 1151.28 198976.82 (Year
7 ending Mar
2012)
84315.5
5 BAPS 1527.95 312456.84 (Year
ending Mar
2013)
Table 3

 Dabur India Ltd.
Dabur derived from Daktar Burman is India’s largest Ayurvedic medicine

manufacturer. Dabur’s Ayurvedic Specialities Division has over 260 medicines for treating a
range of ailments and body conditions-from common cold to chronic paralysis. Dabur India
Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care,
Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the bylanes of
Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long
way today to become a leading consumer products manufacturer in India. For the past 125 years,
we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.
 SHRI BAIDYANATH
One of India’s most respected Companies, Shree Baidyanath Ayurved Bhawan

(p) Ltd. (Kolkata), popularly known as Baidyanath, is the acknowledged leader of Ayurvedic
know-how. Established in 1917, the Company has played a pioneering role in re-establishing
ancient knowledge with modern research and manufacturing techniques. To be the global numero
uno in AYURVEDA and its related spheres by leveraging on the brand equity, vast experience,
core knowledge and competence, procurement expertise, modern manufacturing and research
capabilities.

 ZANDU PHARMACEUTICAL WORKS
Zandu Realty Limited (formerly Zandu Pharmaceutical Works Limited) is a

Pharmaceutical Company based in Mumbai, India. Company’s core business of manufacturing
and dealing in ayurvedic and medicinal preparations. The Company was established in 1910 and
went public in 1919. The company derives its name from Vaidhya Zandu Bhattji, the original
founder of the firm named Zandu Pharamceuticals. He was a renowned Vaidhya not only of
Gujarat but India in late 19th century & early 20th century. The Vaidhya family’s stake has been
sold to Emami recently.
 THE HIMALAYA DURG COMANAY
The Himalaya Drug Company is a company established by M. Manal in

1930 and based in Bangalore, India. It produces health care products under the name Himalaya
Herbal Healthcare, which include ayurvedic ingredients. It is spread across locations in India, the
United States, the Middle East, and Europe, while its products are sold in 60 countries across the
world. The company has 70 researchers that study ayurvedic herbs and minerals. A Hepatic drug,
named Liv.52, is its flagship product, first introduced in 1955.

 CHARAK PHARMACEUTICALS
Visionary brothers Mr D.N. Shroff and Dr. S.N. Shroff, in the year 1947,
were amongst the pioneers of manufacturing Ayurvedic medicines in India. They drew
inspiration from one of the most authoritative sources on the subject ” The Charak Samhita”
compiled by the sage Charaka Circa 1000 BC. Thus was born Charak Pharma Pvt. Ltd, today one
of the largest producers of high quality Ayurvedic products in India.
 Vicco Laboratories
Under the able guidance of Shri. G.K.Pendharkar, Chairman, the company has
established strong foothold in almost every developed country in Asia, Europe, America, Africa
and Australia. Their best known products are Vicco Turmeric skin / sun screen cream, Vicco
Vajradanti powder and paste and Vicco SF (Sugar free) paste. About 15% of company’s total
production goes to overseas market. VICCO products constitute 4% of India’s paste market. For
its founding father, the Pendharkar, it has been indeed a long journey. But for a concern, its only a
humble hop.

COMPANY PROFILE

HISTORY & FOUNDATION
Shree Swami Atmanand Saraswati Ayurvedic Co-operative Pharmacy

ltd.(Asfa) was founded by His Holiness Shree Atmanand Saraswati Swami Maharaj.
The Holy saint from Varanasi came to Surat and along with delivering
religious discourses on “Gita” in the year of 1925, He started teachings of the ashram to the
students and Later on, started teaching Ayurveda and started preparing Ayurvedic medicine for
the needy and poor patients, at place where today we have got renowned Ayurvedic drug
Manufacturing co-operative pharmacy since 1949 this pharmacy Manufacturing about 310
Ayurvedic single and compound standard drugs as prescribed in the recognized books.
This factory having GMP Standard and iso mark ISO 9001-2008 It has about
5 corers turn over.Second drug manufacturing unit is at Navagam industrial estate on
Nationalhigh-wayno8NearKamrejDis.surat Asfa has got about 100 employees well trained and
experienced for Manufacturing with latest Machinery and expert administrative wing. we are
using latest technology and have well equip. laboratory too.
We have own shops, 2 at surat,1 at each Valsad, Baroda, Ahemdabad, Bardoli,
Bharuch. At earliest. ASFA is manufacturing cheap and qualitative Ayurvedic medicine.
The firm is selling through dealers and own branch network. The firm is
manufacturing wide range of Ayurvedic medicine viz. Churn, Vati, Pills, Tablets, Syrup, Asav,
Ghrit, Tail, Avleh, Sarbat, Bhasma.
The entire Activities of Asfa is controlled and governed by board of directors,
elected amongst 4500 Share holders. The organization aimed to provide cost effective quality
Ayurvedic medicine by adopting latest technology in manufacturing with continual improve
quality management system for better customer satisfaction.

Organization structure
1. Name of the company: - SHREE SWAMI ATMANAND SARASWATI

AYURVEDIC CO-OPRETIVE PHARMACY LTD (ASFA)
2. Symbol of the company:- “ASFA”

3. Incorporation of the company:- 1949

4. Category of the company: - Public Ltd.
5. Register Office:- Kalakunj society,
Near varachha Water Works,
Varachha,
Surat-395006
Email : info@swamiasfa.com
asfaayu@yahoo.in
Website:www.swamiasfa.com
Phone no:02612580964
6. Director
a) Dr.N.B.Patel(Chairman)
b) Shri A.M.Patel (managing director)
c) Dr.P.P.Mistri (director, planning & development)
d) Dr. K.G.Mavani (director)
e) Shri S.J.Patel (director)
f) Shri R.P.Patel (director)
g) Dr B.R.Dhakar (director)
h) Shri J.P.Patel (director)
6. Solicitors:- Bhalshenker Kanga & Girdbarial
7. Auditors:- M.K I.Kapadiya(C.A.)
8. Branches:-
a) Surat
b) Ahmedabad
c) Vadodara
d) Bharuch
e) Bardoli
f) Valsad
 ORGENISATION STRUCTURE:

Figure 5

HUMAN RESOURCE MANAGEMENT

Introduction
H R Management is that the part of management process, which concerned, with
the human part of an organization and the relation between employers and employees.
In Asfa personal manager in its real sense deals with planning, organizing,
directing and control of personnel i.e.
1- Planning the future requirement, selection, training and so on and rate of labour turnover.
2- Decide on the structure of the company by determining the cost of individual in managerial and
operative work.
3- Issue instruction, develop communication network and integrate them.
4- He controls the quality, time and performance of workers.

OBJECTIVE PERSONNEL MANAGEMENT
The objectives of the H R management are as follows:


To establish guidelines for Personnel and Administration department to work as per companies
policy and maintain local regulations as applicable for the organization.

To train personnel and evaluate performance for better working ethics.

To generate system for data collection, review and necessary actions.


IMPORTANCE OF H R MANAGER
Importance of the H R manager is as follows:-

1. It enable to selection of suitable candidate for the post.
2. It provides workers skilled enough to their jib.
3. Works are delegated as per the proper rules established.
4. It helps in maintaining healthy industrial relationship.
5. It increases productivity and reduce the production cost.
These all qualities play a very important role in the field of personnel manager.

FUNCTION OF H R MANAGEMENT:
There are some of the functions of H R management in Asfa, they are:-

1. To recruit a person and to set the recruitment policies and systems.
2. To plan manpower and to fulfill the requirement of manpower whenever required.
3. To train the manpower and employees of the company.
4. To develop and identify the potential personnel for the specific job requirement.
5. To recommend management on wages issue.
 RECRUITMENT
Figure 6

Recruitment is a linking activity bringing together those within the job and those seeking
jobs. It is a positive process because it increases the selection ratio by attracting large number of
applicants for the job. It enables the management to select suitable employees for different jobs.
Its major objective is to develop and maintain adequate manpower measures with then required
skills.

SOURCES OF RECRUITMENT
There are two type of source of recruitment they are:


Internal sources.

External sources.
These both source are undertaken by the Asfa pharmaceutical work ltd.

Internal source:-

PROMOTION:
It means shifting employee to a higher position carrying higher responsibilities, facilities,
status and salary.
Mostly in Asfa promotion system is very less applicable.
1. TRANSFER:
Figure 7

It means to change a job assignment. It involves a promotion or a demotion or no

change in term of responsibility and status. It refers to the horizontal mobility of the employees.
It includes the shifting of a person from on unit to another according to the
requirement.
 External source:-
Figure 8
External source as follows:-

1. ADVERTISING:
Advertising in newspaper and periodicals play a very important role in requirement
of management and technical personnel.
In Asfa advertisement is mostly given in local newspaper like Gujarat Samachar,
Gujarat Mitra, Economic Times and Mid-Day.
2. LABOUR CONTRACTOR:
In Indian industries workers are recruited through contractors who are themselves
the employees of this organization.
In Asfa employees are provide by labour contractor who themselves are employees
of the organization. Whenever labours are required on temporary basis labour contractor are
contacted.
 SELECTION:

Figure 9
The selection process of a person in Asfa is as follows:

1. Firstly the company gives advertisement in the local newspaper for the required job.
2. Then the applicant has to fill ZA16 Form.
3. The ZA16 Form chooses some applicants and then the head of the company takes their interview.
4. Then the ZA16 Form and the details of the interview are sended to the head office.
5. There the heads checks the references and appoints the person for the relevant job for the
temporary bases.
6. If the head office approves him then an appointment letter mentioning the terms of the
employment is sended to him.
 TRANING:
Figure 10
Training is the theoretical and practical education being imparted to the

employees for getting proficiency in a particular field.
After selection the employees are generally employed for the six-month
probationary period during which they are given on the job training for managerial staff and
goods manufacturing practice training and workers.

The facilities to workers include house rent allowance, medical reimbursement,

lunch subsidies , traveling concession, two pairs dresses every year, shoes every year, umbrella
every two year and also attendance allowance.
New residential quarters are being built to provide residential facilities for those
staff members who reside outside Surat.
The company also provides 20% bonus and productivity based bonus to all its
workers once in a year.

WORKING ENVIRONMENT
Working environment plays an important role in the company. The working
environment in Asfa is always smooth and safe free from any kind of risk and hazards. Generally
pharmaceutical company does not have any dangerous or heavy plant and machinery so in Asfa
also has no much risk to the life and limb of its workers. The staff members and the workers are
very much co-operative in nature.

INCENTIVES AND AMENITIES
The company Asfa tries to provide maximum facilities to its workers. It includes
house rent allowance., medical allowance, and educational facilities for their children, travelling
allowance, land subsidies, and allowances in respect of electricity, water. Repairs and formation,
leave concessions, family and personnel allowances, are provided to its managerial staff.
The facilities to workers include house rent allowances, medical reimbursement,
lunch subsidies, travelling concession, two pairs dresses every year, shoes every year, umbrella
every two year and also attendance allowance.
Workers are given one month free paying in their marriages or in their children
marriages. Provident fund and pension as per pension scheme established in 1995 is provided to
the entire employee.
New residential quarters are being built to provide residential facilities for those
staff members who reside outside Surat.
The company also provide 20% bonus and productivity based bonus to all its
workers once in a year.

WAGE AND SALARY
Wages and salaries are that remuneration paid by the employers to its employees
for the work done by them.

In Asfa wages are determined as per the minimum wages Act, 1948 and also by the
special allowance Act, decide by the Gujarat Govt. and by mutual understanding between
labour union and management. Special Allowance Act is revised after every first of October and
April. Basic allowance is revised after every 5 to 10 years.
Labour union settles wages with management every three years. Govt. labour
officers inspect the company to check out wages are given as per the act decided by Govt.

Salary Structure:
Salary structure in Asfa is as follows:
POSTS SALARY
ADMINISTRATIVE STAFF 15000-20000
OFFICIAL STAFF 4000 – 12000
WORKDERS 3000 – 5500
Table
4
DISCIPLINE
In Asfa a good atmosphere with complete discipline is found. Discipline is must
in Asfa for every personal i.e. form the top (officer) to bottom (workers). All those who goes
against discipline are first warned then showcase notice or memo is provided.

MARKETING DEPARTMENT

MARKETING INNTRODUCTION:
Marketing is an important activity in our society. The simple meaning of
marketing is to sale of goods and services. Marketing is not only related with selling. Selling is a
part of marketing. Marketing today requires more proximity towards customer. It also requires:-
1) More understanding of end-users.
2) Creating more moment of truth and delight.
3) Retaining customer.
4) Relationship marketing.
Modern definition of marketing is:-
“Marketing is a continues process of discovery and translating consumer wants in to
appropriate product services. Creating demand for this product and serving the demand with the
help of channels of distribution such as wholesaler and retailer.”

Introduction
Marketing management is an on going process involving identification of consumer

need and wants of converting them into appropriate products and satisfying the demand of
consumer who are the most merciless, meanest and toughest market disciplinarians. It is an
important functional area of business.

MARKETING ADVANTAGES
1. Improves pharmaceutical products and company image.

2. Pharmaceutical product differentiation.
3. Clear response to medical staff needs.
4. Measures accurate dosage.
5. Boost to sales and marketing efforts.

6. Lower contamination risk.

7. Easier pharmaceutical product identification.
8. A correct needle for medical application.
 ORGANISATINALSTRUCTUREOF MARKETING
DEPARTMNET
The marketing department of Asfa consists of one marketing manager, Swati
manager and regional manager and area manager. There are 3 sales officers, 13 sales
representatives and 9 medical representatives in Gujarat itself.
The marketing manager is the main head who is responsible for achieving the fixed
target. He then divides the work among various officers under him. The sales officer reports daily
to the head office while the regional manager report monthly to the head office.
Figure 11

STRATAGIES RELATED TO PRODUCT
A product means a bundle of benefits, which satisfy the human needs.
According to William Stenton,”A product is a complex of tangible attributes
including packing, color, price, manufacture’s prestige, retailer’s prestige and services which the
buyers expect as offering of satisfaction of wants and needs.”
The products in Asfa are all Ayurvedic products. It is divided into general and
medicines and ethical products. It may be in form of Blam, liquids, tablets, churn etc. 5A’s in relation to
product are:

1. Availability.
2. Accessibility.
3. Affordability.
4. Acceptability.
5. After sales service.
Mostly the customer will favour those products that offer high quality at
satisfactory prices. Also the brand image and the company image take more importance. The
advertisement is an effective tool in increasing the sale of the product.

BRAND NAME:
Brand name is the effective tool to identify and to differentiate the product from
the competitor’s product.
Brand name is an attractive parameter for the customer while they choose one
among different product.
Asfa pharmaceutical works ltd. has the brand name “ASFA” itself. Asfa has
adopted picture of “GOD DHANVANTARI” to be printed as a symbol with the brand name
“ASFA”.

Strategies Related To Promotion:
Promotion plays a distinct role in marketing. It is a combined effort of salesmen,

advertisement and marketing channels.
Promotion mix is a combination of:
Advertising
Sales promotion.
Personnel selling.
Publicity / Public relation.

Every industry and every company chooses a unique promotion mix depending upon its
objectives, capability and markets.

In Asfa, at the head office in Surat Swatiben N Nayak along with other team members have been
working effectively to focus usefulness and effectiveness of Asfa products to public, with the
help of advertisements.

Asfa Company spends more money on advertisements and other promotional activities during
winter season


Advertisement:
Advertisement is a process by which a company directly or indirectly introduces
its product to the consumers. It is any paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor.

Competition:
Competition is an important factor affecting the company in all the matter.

Competition is important for the success of every company. It enables the company to make
innovation in its product to improve its quality and to charge economical prices. The major
competitors of Asfa are Baidyanath Ayurvedic Co, Dabur, Unza Pharmaceuticals, Nahar
Ayurveda etc.

Marketing Research And Feedback:

Marketing Research is an important part of marketing management. It serves as a tool to
management in solving out the problems in any field.

“Marketing Research is a systematic recording and analyzing of data about problems related to
marketing”.

Asfa conducts surveys to get information about its product in the market. Consumer feedback is
brought by the representative of the company, which enables the company to know about the
demand of its product, consumer requirement, consumer behavior etc, towards the product.
 This surveys and feedback serve as a useful tool to the company in taking further decision about
the product and its problems.

Broadcast Advertisement:
ASFA gives advertisement for its product on different television channels like:

DD-1

Star TV

Metro

Print Advertisement:
Advertisement of ASFA product can be shown in many newspapers and

magazines. Company not always uses the same newspaper and magazine for the advertisement
purpose. They select it, according to needs and a want arises with the changing condition. Some
of the sources of advertisements are: -
Newspapers Magazines
* The Economic Times. * Abhiyan.

* The Time of India. * Pharma Plus.

* Indian Express. * Business World
* A Mid Day. * Gruh Shobha.
*Gujarat Mitra. * India Today.
A committee then to inspect the employee and his behavior. The committee then
submits the report to the head that finally takes the decision.
 MARKETING DEPARTMENT STRUCTURE.
Head office
Surat
Department head
Mr. Nikunj A Tripathi
Gujarat Ahmadabad
(Bardoli,vadodara)
Sales executive Sales executive
Staff Staff

PRODUCTION DEPARTMENT

PLANT LOCATION AND LAYOUT
Asfa is located at Kalakunj. area of Surat which is the industrial area so all types
of facilities are available there very easily.
The most important part of production is to get the raw material; the facility of
getting raw material is easier because here the transportation can easily be done. And at this
location both skilled and unskilled workers are easily available, as the villages and many
civilized areas are near by.
Asfa is located near highway, which makes the transportation easier. Other facility
like railway facility is also near by only. As it is in the industrial area so electricity, water, gases,
land etc are all easily available at the site.

 QUALITY:
Figure 12
For Asfa pharmaceutical work ltd. Quality stand at a first place. And it is most
important term related to any product.
Consumer satisfaction is the best scale for the quality measure and they are in
favour of Asfa. So for this reason Asfa has its own Quality Control lab to check the quality of the
goods. Here they check the raw materials, the packing material and also the finished goods before
packing.

PACKING AND LABELLING:
Figure 13
In Asfa, products are packed as per the convenience of consumer. So packing can
be changed on the basis of the feedback of the customer.
Liquid products are generally packed in bottles either of glass or of plastic. Tablets
are packed in the aluminum and plastic foil. Chyavanprash is packed in the plastic jars, honey in
glass bottles, churan in plastic jars is packed as per the convenience of the customer and these

are further packed in the paper cartons for quick and easy handling and transportation of goods.
The products for changed on the basis of the customer feedback. The products for exporting are
packed separately using some specific material only.
The batch number and the lot size printed separately on every box. This is done for
the quick clarification of product.

MASTER PRODUCTION SCHEDULE
MEANING:
It is defined as a process of deciding amount and timing of all the items to be
produced over a specific planning horizon.
The Company is having a following process:

1. Demand
2. Material Availability Checking
3. Material Available
4. Capacity Availability Checking
5. Capacity Available
6. Start Production
7. Send Material to mark

PROCUTION PLANNING OF ASFA:
Asfa is a company that produces Ayurvedic products. Before producing Product
Company plans a schedule on yearly bases, monthly bases and it goes very deeply by preparing a
weekly schedule.
For preparing this schedule they consider the following points.

The lead-time of the product.

The preparation time of the product.

The demand of the product in the market.

Three months requirements are stated.

The stock of finished goods at the depots and in the god owns.
Accordingly to these points they plan the schedule and give the order to produce the
product.


RESPONSIBILITIES OF PRODUCTION MANAGER
The responsibilities of the production manager in relation to the Asfa Company are
as follows:

To fulfill the demand of the customers.

To plan production schedule.

To control the cost of production.

To motivate worker for the maximum efforts.

To avoid defective goods.

To manufacture quality goods.

To ensure that stock is available whenever required.

To maximize utilization of machinery and manpower.

PRODUCTION SYSTEM
Asfa has process as well as product layout.
PRODUCT LAYOUT
TYPE
CHURNA PROCESS
LAYOUT
TABLETS PROCESS
LAYOUT
SYRUP PRODUCT
LAYOUT
BLAM PRODUCT
LAYOUT
Table 5
The manufacturing process of ASFA is concern with batch wise production system and it
is continues process. Batch size and lot size of all products are fixed in this system. And each
such final lot size is kept separately at specific fixed identified area.

 Manufacturing process :
1. FILLING MACHINE:
To fill liquid in the bottles.16 bottles can be filled at a same time with the help of this
machine.
2. CAPPING MACHINE:
It is used for capping the filled bottles.
3. LABELING MACHINE:
For labeling on the bottles and jars.
4. Taping machine:
For sealing the cartoons.
5. WEIGHT MACHINE:
For checking the weight of the bottles & jars.
6. GRANULATION MACHINE:
To make the powder of different tablets.
7. TABLET COLOUR COATING MACHINE:

To make the different tablets in different colours.
8. NEOCOTA MACHINE:
To make the tablet in very big numbers.
9. DRY MACHINE:
To make the tablet dry.
10. CADMILL MACHINE:

For making pieces to make tablets.
Figure 14

PROCRSS OF CHURNA:-
(1) Receiving of raw materials from the stores.

(2) Feeding Raw materials into grinding machine.
(3) Mixing of Grind material.
(4) Checking of finished product (Churna) in Q.C. Department.
(5) If the product approved by the Q.C. department, product will send in packing department.
(6) After packing of finished product it will send for Dispatch.

Flow Chart of Churna:
Raw material Receiving
From Stores
Shifting of martial in
Grinding machine
Mixing of grinding
material
Checking in Q.C. Dep.,
Packing
Dispatch
Figur 15

Figure 15

Process of Tablets:
(1) Receiving of grinding materials.

(2) Preparation of Grenus.
(3) Send grenus in Dryer.
(4) Mixing of lubricant in dry powder.
(5) Dry powder feed into compressor as per product cotting is done.
(6) Sela cotting (Alcohole + gum powder) is done as per product
required. Sela cotting is useful to product tablets from moisture.
(7) Silver cotting as done.
(8) Telcum cotting is useful for making tablets smooth.

Flow Chart of Tablets:
Receiving Grinding Material
Grenus
Lubricant
Compressor (As per product)
Silver Cotting
Sela Cotting
Telecom Cotting
Checking in Q.C. Dep.,

Shree Uttar Gujarat BBA College Packing Page 34
 Abhayarishtam Syrup
Figure 16
 Process of Syrup:
(1) Receiving of raw material from raw materials.
(2) Raw materials are boiled.
(3) Boiled materials are mixed in machine.
(4) Mixed materials are boiled in machine.
(5) After mixing finish syrup will ready.
(6) Finished products are sent in Q.C. department.
If Q.C. approved it, Syrup will send in packing department
 Flow Chart of Syrup:

Raw material receiving
From Stores
Boiling
Mixing
Boiling
Checking in Q.C. Dep., Filling & Packing


MAINTENANCE PLANNING SYSTEM
In Asfa, they maintain machines monthly or yearly basis as per machine required
Sometimes, they will maintain machine by preventive maintenance

Workforce of maintenance department.
Workforce of department must be educated means they must have knowledge in

machines. They must be skilled.
In Asfa, There are twelve workers and two supervisors in maintenance department.
They all are permanent a skilled.
% of wastages:
In Assfa, they reuse wastages in production. So, wastage is very less.

IDLE TIME (MEN & MACHINE)
Generally men and machines will be idle at the time of Breakdown, power cut, etc.
otherwise men and machine will be working.

Pollution control:
Asfa manufacture Ayurvedic health care products. So, the pollution is very less in
comparison of the other company. So, they does not require ant pollution control process.
Duties of production manager:
Mr. Viraj H Mistri at is a production manager in Asfa. According to him production
manager has to perform following duties.
(1) Supervision of plant, process of production.
(2) Look after on production supervisors and workers. And solved their problems regarding
production system.
(3) Constant flow of production.

QUALITY CONTROL DEPARTMENT
Quality control is a facilitating service to manufacturing. It directs and checks the
course and progress of works. Asfa has a Seprate and speclal Quality Control Department or
Laboratory. This is maintained to keep up the quality of its product and to progress its name.
Here they the check the raw material and also the finished product before packing.
The raw material is checked so as: -
1. To prevent defective goods.
2. To maintain quality.
3. To see whether it suits the requirement of the product.

4. To produce right goods.


Final product is checked so as:
1. To maintains its quality.
2. To verify the moisture level, thickness, hardness.

Quality objectives of ASFA is to
1. Make available, reliable, uninterrupted and quality power to its customers.
2. Provide reliable, prompt and economical value added services to its customer.
3. Insure continuous improvements in system and processes by incorporating the latest technology
and confirming to national and international standard.
4. Develop and maintain a highly motivated trained and courteous work to understand and meet the
changing needs of the customers.

INVENTORY MANAGEMENT
Store department is the place where goods are stored. Here in store department
orders are placed by different departments of the plants, and as per the requirement order is send
in the written form, to the head office finds three before 8-15 days, then according to the order
head office finds three parties who can provide good quality and at low or at proper. At least 3
parties quotation is taken for the purchase of raw material then the order is given to any one of
the parties.
The store department of the Surat unit is the main unit from here the raw
material is send to different units of Asfa. Here the transport of raw material is done by railways
and by roadway and by airways also.
There is different procedure, which has to be checked out when the raw materials
come to the doorsteps of the company. Here when the goods come to doorsteps then they check
the order number and check the goods. They randomly weight some of the raw material and
check the order according to the document and then they fill the goods received note (G R N).
They send some part of raw material to quality control lab.
The payment done for the raw material is all done by bank, cheque and by
demand draft. In store department each and every record is maintained by which we can come to
know at which time goods are arrived from where it has come and how the payment is done.
Promotional system is depended on the financial condition of the company.
They provide cash discount, etc.

Store department gives at least 10-15 days to the manufacturing department

to place the order as per the requirement, then as per requirement goods are sended to the
different department.
“Quality is given first position then price comes.”
Quality should be maintained is seen first than other parts come for the
store department.
Following members sees the whole work of store department:-
INCHARGE:- Mr. Gaurang Mistri (at Surat)
Mr. Suresh Patel (at Bardoli)
There are more 7 staff members and there are other 18 workers who work
in the store department.

PACKING MATERIAL
There is also other department, which is the packing material storage
department, where only the packing material is stored. Here the entries are passed in the main
store department only. The same members of the store department see it. The different materials
of packing are stored here; some material that are stored here are as follows:
Glass bottles.
Plastic bottles.
Different tablet packing material.
Different cartage’s for packing different products.
The different packing material are of all different size according to the
product, the order of this packing material is given to the head office.

PRODUCT PROFIL:
The Asfa Company has a main production as given below:
CHURANA SYRUP
TEBLRTS CHYAVANPRASH
PRODUCT LINE:

CHURANA:

NITYAM CHURANA.

TRIFHALA CHURANA.

HARDE.

SWADIST VIR CHURNA.

SITOPALADI.

HINGASHTAK.

ZHANDOPA.


TABLETES:

TRIFHALA.

PARAD.

MAHAYOGIRAJ.

BALGHUTI.

TRISHUN.

SUTSEKHAR RAS.

CAPSULE: VIGAREX SF, ASFA BALM:
1. KESARI JIVEN:
2. CHYAVANPRASH:
3. SYRUP:
4. LIVOTRET
5. PANCHARIST

SALES VOLUME:
Company sales are high, as last four year’s are given below
100%
90%
80%
70%
60% Last 4 Months
50%
Second 4 Months
40%
First 4 Months
30%
20%
10%
0%
2012 2013 2014 2015
Table 6

INVENTORY MANEGEMENT:
ABC ANALYSIS OF INVENTORY
The number of items of inventory in a Zandu runs into hundreds. From the point of view of controlling,
it becomes extremely difficult to monitor each one of these items. ABC Analysis suggests to keep a close
watch over items which account for a high percentage of the value of annual usage of all items of inventory.
According to this system, various items of inventory are grouped into three distinct categories:-
A item: - The A category items are those in which it has largest rupee investment but which consist
of number of items. These must be under the tightest control. These are most costly items of inventory.
B items: - B items are between A and C. they require less monitoring than A but more then C.
C items: - The C group typically consists of a large number of items according for a small rupee
investment. These items do not require any special attention and control.

CLASSIFICATION OF RAW MATERIALS & PRODUCTS IN ZANDU
CLASS RAW MATERIAL PRODUCTS
A Micro,Harde Wax Balm

Petroleum Jelly Honey
Menthol Pancharistha
Amla,Baheda,Senma Kesari Jivan
Harde,Saunt Chyanprash
Saffron
B Drakes Mah Sudersan Churna

Satavri Nityam Churna
Guggul Trifala Churna
Tablets
C Mari Vasakarista
Chandan Ekangveer Ras
Taj Bhasma
Elehi Lohasona
Ajmo Ashokaristha
Ardusi Draksharistha
Katha
Hing
Cost wise contribution of items in Zandu
“A” class items: - 60%

“B” class items: - 30% “C” class items: - 10%.
Levels of Inventory
Maximum level:-
Zandu kept maximum level of stock for 3 Batches.
Minimum level:-
Zandu kept minimum level of stock for only 2 Batches..
Recorder level:-
Zandu place a recorder level after 3 Batches.
Safety stock:-
Zandu kept safety for 2 Batches.

FINANCE DEPARTMENT
Introduction
Financial Management means rising of adequate funds at the minimum cost and using them
effectively in the business. It is concerned with the financial problem of the business. In Zandu,
the finance function is all centralized. Mr. Anand R.Mundra is the head of finance department.

IMPROTANCE OF FINANCIAL MANAGEMENT
1. Finance is required for the scheme of modernization, expansion and development of existing
enterprise.
2. The financial plan helps the company to check out the success or otherwise of the company.
3. The effective financial plan will provide sufficient fund to business to meet Fixed and Working
capital requirement.
4. Finance department is always linked with success of other departments where it is responsible to
provide necessary finance.

RESPONSIBILITY OF FINANCIAL MANAGER
In modern enterprises the financial manager occupies a key position. He is one of
the dynamic members of the management and his role day by day is becoming more pervasive,
progressive, intensive and significant in solving complex problems. The responsibilities of
financial manager includes-

Raising of funds

Minimizing cost of funds raised

Allocate funds prudently

Control the working of an organization


Maintain enough liquidity

REGISTERED MAINTAINED IN ASFA
1. Cash and Bank book.
2. Sales register.
3. Purchase register.
4. Journal book.
5. Fixed assets register.
6. Expenses register.

BANKERS OF ASFA
1. Central Bank of India
2. State Bank of Indore.
3. Development credit Bank Ltd.

ACCOUNTING PROCEDURE OF ASFA
Hear the entries are made and it is sent to the head office and there the account is maintained.
The account procedure starts from the raw martial enter to the company. The procedure of
account department of is as follows:-
1. The security officer firstly checks the good or the raw martial at the gate and note down the no.
of vehicle and chalan no.,
2. Then the good are brought to the quality control lab where it is checked the approval is OK then
the goods are stored in the store department and the entry is made there.
3. The book eatery is done after the raw material stored.
4. After the book entry is sanded to the account department where the chalan, Bill, order slip etc.,
are compared with other.
5. After the documents are checked and singed by the head of the department and manager and then
the data are entered in the particular account.
6. Then the daily entries are mailed to the head office.
7. After making the entries the payment activity is the made during the period for it.
8. The required finance for the payment is generally comes from the head office at the Bombay.
They transfer the payment through the bank. Zandu collects this money from bank.

 COMPARATIVE
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2015 & 2016
(Rs. In lakes)
PARTICULARS 2015-2016 2015-16 Absolute %

changes changes
INCOME:
1) Sales including ex. Duty 11342.19 12966.27 1624.08 14.32
a. Less: ex. Duty 1240.54 1518.31 277.77 22.39
b. Net sales 10101.65 11447.96 1346.31 13.32
2) Other income 318.59 421.26 102.67 32.22
3) Stocks in process (53.97) (172.77) 118.8 22.01
10366.27 11696.45 1330.18 12.83
EXPENDITUURE:
i. Purchase of Trading 202.82 191.71 11.11 5.48
ii. Manufacturing exp 8524.17 9360.09 835.92 9.80
iii. Interest 52.68 40.75 (11.93) (22.64)
iv. Depreciation 301.71 347.36 45.65 15.13
9081.38 9939.91 858.53 9.45
PBT 1284.89 1756.54 471.65 36.70
Provision for taxation 411.65 543.89 132.24 32.12
PAT 873.24 1212.65 339.41 38.87

COMPARATIVE BALANCE SHEET AS AT 31 MARCH 2015 & 2016
(Rs. In lakes)
Assets 2015-16 2015-16 Absolute %

changes changes
Fixed Assets : 2408.01 2378.40 (29.61) (1.23)
Investment : 782.02 1136.55 354.53 45.33
Current assets:
Inventories 1922.35 1876.14 (46.21) (2.40)
Sundry Debtors 524.80 565.85 41.05 7.82
Cash and Bank Balances 744.92 1276.62 531.62 71.38
Other Current assets 1.93 1.90 0.03 1.44
LOAN and Advances 1261.63 1138.58 223.05 17.68
Total Current Assets 4455.63 4859.09 403.46 9.06
Total Assets 7645.66 8374.04 728.38 9.53
Liabilities 2015-16 2015-16 Absolute %

changes changes
Share Capital 604.80 604.80 0 0
Reserves and Surplus 4901.38 5614.08 712.70 14.54
Total share capital 5506.18 6218.88 712.7 12.94
Secured Loans 13.25 - 13.25 1
Unsecured Loans 78.55 39.46 (39.09) (49.76)
Total Loan Funds 91.80 39.46 (52.34) (57.01)

Current Liabilities
Sundry creditor 1030.76 1277.19 246.43 23.90
Provision for taxation 368.99 55.47 (313.52) (84.96)
Other Current Liabilities 586.97 678.28 109.31 19.24
Total Current Liabilities 1986.72 2010.94 24.94 1.25
Differed tax liabilities 60.96 104.76 43.8 71.85
Total Liabilities 7645.66 8374.04 728.38 9.53
Analysis of short term financial position:

Current Ratio: C.A/C.L.
2015-16: 3194/1968.72
1.60: 1
2015-16: 3720.09/2010.94
1.84: 1
Interpretation:
Current ratio measures short-term solvency or ability of the company to meet short-term
obligations. The ideal ratio is 2:1. In current year the CR is depressed to some extent, which indicates that the
company‘s ability to meet current obligation and safety of the funds of short-term creditors is decreased as
compared to its ability in previous year.

Quick Ratio: Liquid Assets/Liquid liabilities
2014-15: 1271.65/1617.73
0.78: 1
2015-16: 1843.95/1955.47
0.94: 1

Acid Test Ratio: Quick Assets/Liquid liabilities
2014-15: 744.92/1617.73
0.46: 1
2015-16: 1276.62/1955.47
0.65: 1
 Interpretation:
Quick Ratio is the measurement of a company’s ability to convert its current assets quickly into
cash in order to meet its current liabilities. Generally the Quick Ratio of 1:1 is considered to be satisfactory as a
company can easily meet all current claims. In case of this organization the Quick Ratio is less that the standard
one.
1] Analysis of short term financial position:

Property ratio: Property fund / Total Assets
2014-15
: 5506.18/5658.94
0.97
2015-16: 6218.88/6363.18
0.97
Interpretation:
The higher proprietary ratio are stronger the financial position. a ratio of 0.5:1 is considered
ideal. The company proprietary ratio is in between 0.5:1,So company financial position are strong.
Debt equity ratio: Debt / Net worth
2014-15: 81/5506.18
0.014
2015-16: 39 /6218.88
0.001

Interpretation:
The company is less depended on debt (0.01) and depended more on equity.


Fixed Assets ratio: fixed assets / Capital Employed
2014-15: 2378.40/5597.98
0.42
2015-16: 2311.34/6257.46
0.36
2] Activity Ratio & tern over ratio:
1. Debtor ratio: Debtor Bill Receivable / Credit Sales*360
2014-15: 524.80/101020
0.0519*360
19 Day’s
2015-16: 565.85/11448
0.049*360
18 Day’s
Interpretation:
Debtor ratio means Debtor day. DD measures how rapidly the receivables are
collected.higer this ratio the shorter is the time tag between the credit sales and cash collection. So if in the
coming years if their is increase in debtors day it will revel that the debtors are delaying the payment and the
working capital is blocking the debtor.
2. Creditor ratio: Creditor Bill Payable/Credit Punches*360
2014-15 1030.76/9990.84
0.103*360
37 Day’s
2015-16: 1277.19/11074.73
0.115*360
42 Day’s
Interpretation:
This ratio shows that how much delay the firm is taking in their payment to their suppliers. If
in coming years the firms is increasing its creditors day then it indicates that firms is delaying its payment more
as compared to this year.
3. Stock Turnover ratio : COGS/Avg.Stock*360
2014-15: 10057.3/872.27
12 Times Aprox.,
2015-16: 11210.42/771.19
15 Times Aprox,
Interpretation:
ITO ratio indicates number of times inventory is replaced during the year that is how quickly the
inventory is sold .the higher ITO better is the efficiency of the firms utilization of investment in inventory. So in
the company is higher investment in inventory as last years.
3] Profitability Ratio:
1) Gross Profit Ratio: PBIT/Sales *100

2015-16: 1639/11342 *100
14.45%
2015-16: 2145/12966 *100
16.54%
Interpretation:
Gross profits Ratio are increased from the previous year ratio. Thus GP Ratio may have been
increased in cost of good sold (COGS) or high selling price compared to the previous year.

2) Net Profit Ratio: Net profit/Sales *100
2004-05: 873.24/11342.19 *100

7.69%
2005-06: 1212.65/12966.27 *100
9.35%
Interpretation:
In a Net Profit Ratio are increased as compared to the last year. Interest, Taxation cost are
decreases as compared to the previous year.
3) Return on Capital Employed: Net profit/Capital

*100
2004-05: 1639.28/5597.98 *100
29.2 %
2005-06: 2144.65/6257.46 *100
34.2 %
Interpretation:
The Return on capital Employed of the firm is increasing in the current year as compared to the
previous year it can be said that there is efficient use of capital employed.
4) Return on equity share capital: Net profit/equity share *100

2004-05: 910/605 *100
150.41 Rs.
2005-06: 1230/ 605*100
203.30Rs.
Interpretation:
The company Return on equity share capital is increasing in the current year as compared to the
previous year it can be said that there is efficient to return of equity share capital.
5) Return on equity share holder fund: Net profit/share capital *100

2004-05: 873.24/5506.18 *100
15.85%
2005-06: 1212.65/ 6218.88*100
19.49%

Interpretation:
The company is return on equity share holder fund as compared to previous year is increased in
current year which is a good.
6) Expenses Ratio: Expenses/ Sales *100

2004-05: 8524.17/11342.19 *100
75%
2005-06: 9360.09/ 12966.27*100
72%
Interpretation:
The Company all expenses are decreased as compared to the previous year.
COMPERATIVE STATEMENT
PARTICULAR 2014-15 2015-16 AMOUNT OF % OF

INCREASE OR INCREASE &
(RS. IN (RS. IN (RS. DECREASE
LAKHS) LAKHS) DECREASE
IN LAKHS
Debit
To material cost 240 213 27 1.12%
To manufacturing 9336 8524 812 1.09%

cost
To other expense 1057 796 261 1.30%

(like interest etc.)
To depreciation 347 302 45 1.14%
To taxation cost 470 450 20 1.04%

TOTAL 11423 10312
Credit
SALES REVENUE 12966 11342 1624 1.14%
OTHER INCOME 421 318 103 1.32
TOTAL 13387 11660
INTERPRETATION:

Increase in sales is to the extent of Rs.1624.08 lack, hail the company other income are increases, so
ultimately companies sales turn over are increases the previous year. This is good indication of
profitability.

An expense is very high, when compared to the other income. This is responsible for decreases in profit,
but in expenses and interest are decreases the previous year.

Tax has gone up in 2014-15 by Rs.132.24 in lack; which is also responsible for decrease in net profit.

There is an increase in fixed assets in the year 2005-06 compared to 2004-05.

This is as compared to long term liabilities are decrease. So the working capital is affected because the
fixed assets are increase and long term fund are decrease so working day are increases.

Current assets show an increase of 9.06%.whereas current liabilities are show an increase of 1.25%.the
liquidity position is therefore considered to be good.
ANALYSIS OF INVENTORY HOLDING AT ASFA
(IN LAKHS)
PARTICULARS 2004-05 2005-06
Total current Assets (RS.) 3194.00 3720.09
Inventories (Rs.) 1922.35 1876.14
Inventories (%) 43.14% 38.61%

1) Raw materials (Rs.) 777.47 907.66
Raw materials (%) 40.00% 48.00%
2) Stock in Process (Rs.) 49.30 19.47
Stock in Process (%) 2.56% 2.14%
3) Finish Goods (Rs.) 923.37 780.43
Finish Goods (%) 48.00% 41.59%

FINDING

Increase in sales is to the extent of Rs.1624.08 lack, hail the company other income are increases, so
ultimately companies sales turn over are increases the previous year . This is good indication of
profitability.

An expense is very high, when compared to the other income. This is responsible for decreases in profit,
but in expenses and interest are decreases the previous year.

Tax has gone up in 2005-06 by Rs. 132.24 in lack; which is also responsible for decreases in net profit .

There is an increase in fixed assets in the year 2005-06 compared to 2004-05.

This is as compared to long term liabilities are decease. So the working capital is affected because the
fixed assets are increases and long term fund are decreases so working day are increases.

Current assets show an increases of 9.06% whereas current liabilities are show an increases of 1.25%
the liquidity position is therefore considered to be good.

RECOMNDATION

Demand for Ayurvedic treatments is high in the urban areas of Coimbatore, but the demand is highly
oriented towards luxury factors. Hence a proper demand on health has to created.

Patient customers’ are in need of bundled factors on Ayurvedic treatment. Hence proper consideration
has to be given to sustain the demand factors.

Treatment of doctors determines the levelof sastisfaction of the patient customers.

Ayurvedic drug manufactures should take necessary steps to make the medicine available in all the
marketsand it should also be balanced in terms of supply.

Male patient customer prefer ayurvedic treatment,so their health problems should also be dealt
seriously.
 Experienced doctors can be appointedin hospitals, as it will uplift the propaganda and the brand name
of ayurvedic treatments.

The media advertisement is highly concentrated upon the luxury factors on ayurvedic treatment.

The educated and uneducated patient customers prefer ayurvedic treatments and it is advised to the
doctors programmes to explore ayurvedic treatment.

Proper awareness on ayurvedic herbs has has to be created among the patient customers to avoid wrong
usage of herbs .

A large numbers of expositions should be organized by the ayurvedic hospital to create awareness for
ayurvedic treatment.
 Ayurvedic product are fully dependent on the quality of raw material and process of manufacturs.
 The demand for ayurvedic treatment can be improved in terms of care environment, quickness of
servies and access.

Conclusion
It is increasingly begin recognized that the healyhier the population of a country, the greater is economic
growth. Liberalization has brought with it urbanization and changes in life styles that had a profound impact on
the epidemiology of diseases and health care demands of the people. Rising expectations of a wealthier and
well-informed society created the demand for Ayurvedic treatment. The primary concern is to cope with the
patient customers’ ailments and decontextualise Ayurvedic by focusing on drugs and providing nutritional
advice. Traditional medicine is based on the needs of individuals. Different patterns of globalization of Ayurvedi
knowledge supported by Maharishi’s will provide further insights into the Ayurvedic treatment culture among
the patient customers’ that helps to discover a personal knowledge of living. The reco gnition by the
government , are the basis for the optimization usage Ayurvediv treatment and medicines. Medical researchers
should understand that the evaluation of traditional system of medicine, and its inherent standards, would need
intercultural research. This is vital to enhancing medical pluralism, which in its turn seems to be the best route
towards the advancement of world medicine.

BIBLIOGRAPHY
 Annual Report of the company.

Finance Management :-
Management Accounting
(M.E. Thukaram Rao)
Websites:_
www.zanduayurvead.com

APPENDIX
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2005 & 2006
(Rs. In lakes)
PARTICULARS 2004-05 2005-06
INCOME:
4) Sales including ex. Duty 11342.19 12966.27
a. Less: ex. Duty 1240.54 1518.31
b. Net sales 10101.65 11447.96
5) Other income 318.59 421.26
6) Stocks in process (53.97) (172.77)
10366.27 11696.45
EXPENDITUURE:
v. Purchase of Trading 202.82 191.71
vi. Manufacturing exp 8524.17 9360.09
vii. Interest 52.68 40.75
viii. Depreciation 301.71 347.36
9081.38 9939.91
PBT 1284.89 1756.54

Provision for taxation 411.65 543.89
PAT 873.24 1212.65
 833.43 1046.13
BALANCE CARRIED TO B/L
General Reserve 400.00 500.00
Dividends: 344.81 744.81 517.24 1017.22
AMOUNT AVAILABLE FOR APPRO. 1578.24 2063.35
BALANCE SHEET AS AT 31 MARCH 2005 & 2006

(Rs. In lakes)
SOURCE OF FUNDS : 2004-05 2005-06
SHAREHOLDER’ FUNDS
SHARE CAPITAL 604.80 604.80
RESEVES AND SURPLUS 4901.38 5506.18 5614.18 6218.88
LOAN FUNDES:
SECURED LOANS 13.25
UNSECURED LOANS 78.55 39.46 39.46
DEFERRED TAX LIABILITIES 60.96 104.76
5658.94 6363.10
TOTAL
APPLICATION OF FUNDS 2004-05 2005-06
Fixed Assets :
Gross block 6577.78 6957.90

Less: Dep.., 4266.44 4579.50
Net block 2311.34 2378.40
Capital work in process 96.67 2408.01 -. 2378.40
Investment 782.02 1136.55
Current assets:
Inventories 1922.35 1876.14
Sundry Debtors 524.80 565.85
Cash and Bank Balances 744.92 1276.62
Other Current assets 1.93 1.90
LOAN and Advances 1261.63 1138.58
4455.63 4859.09
Less: Current liabilities
Liabilities: (1617.73) (1955.47)
Provisions: (368.99) (55.47)
Net Current assets : 2468.91 2848.15
Total 5658.94 6363.10


Industry Profile: Shree Swami Atmanand Srarswati Ayurvedic Co-Operative Pharmacy LTD

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Shree Swami Atmanand Srarswati Ayurvedic Co-operative Pharmacy Ltd.

Ayurvedic medicines are produced by several thousand companies in India,

Shree Uttar Gujarat BBA College Page 1

Shree Uttar Gujarat BBA College Page 2

India is emerging as the global hub for contract research and

Shree Uttar Gujarat BBA College Page 3

To have a healthy competition

To reduce the initial development costs.

Increasing balance of trade in pharma sector

Excellent centre for clinical trials in view of the diversity in population

Shree Uttar Gujarat BBA College Page 4

Shree Uttar Gujarat BBA College Page 5

Shree Uttar Gujarat BBA College Page 6

The United Nations Industrial Development Organization (UNIDO)

SWOT analysis of industry

Shree Uttar Gujarat BBA College Page 7

Shree Uttar Gujarat BBA College Page 8

Revenue Market Total

Shree Uttar Gujarat BBA College Page 9

Dabur derived from Daktar Burman is India’s largest Ayurvedic medicine

One of India’s most respected Companies, Shree Baidyanath Ayurved Bhawan

Shree Uttar Gujarat BBA College Page 10

 ZANDU PHARMACEUTICAL WORKS

Zandu Realty Limited (formerly Zandu Pharmaceutical Works Limited) is a

 THE HIMALAYA DURG COMANAY

The Himalaya Drug Company is a company established by M. Manal in

Shree Uttar Gujarat BBA College Page 11

Shree Uttar Gujarat BBA College Page 12

Shree Swami Atmanand Saraswati Ayurvedic Co-operative Pharmacy

1. Name of the company: - SHREE SWAMI ATMANAND SARASWATI

Shree Uttar Gujarat BBA College Page 13

3. Incorporation of the company:- 1949

Shree Uttar Gujarat BBA College Page 14

Shree Uttar Gujarat BBA College Page 15

HUMAN RESOURCE MANAGEMENT

The objectives of the H R management are as follows:

Shree Uttar Gujarat BBA College Page 16

Importance of the H R manager is as follows:-

There are some of the functions of H R management in Asfa, they are:-

Shree Uttar Gujarat BBA College Page 17

There are two type of source of recruitment they are:

Shree Uttar Gujarat BBA College Page 18

It means to change a job assignment. It involves a promotion or a demotion or no

External source as follows:-

Shree Uttar Gujarat BBA College Page 19

The selection process of a person in Asfa is as follows:

Training is the theoretical and practical education being imparted to the

Shree Uttar Gujarat BBA College Page 20

The facilities to workers include house rent allowance, medical reimbursement,

Shree Uttar Gujarat BBA College Page 21

Shree Uttar Gujarat BBA College Page 22

Marketing management is an on going process involving identification of consumer

1. Improves pharmaceutical products and company image.

Shree Uttar Gujarat BBA College Page 23

6. Lower contamination risk.

Shree Uttar Gujarat BBA College Page 24

Promotion plays a distinct role in marketing. It is a combined effort of salesmen,

Shree Uttar Gujarat BBA College Page 25

Competition is an important factor affecting the company in all the matter.

Advertisement of ASFA product can be shown in many newspapers and

Shree Uttar Gujarat BBA College Page 26

* The Time of India. * Pharma Plus.

 MARKETING DEPARTMENT STRUCTURE.