A

SUMMER TRAINING PROJECT REPORT

ON

CAMIST BEHAVIOR TOWARDS GENERIC PRODUCTS

At

CIPLA LTD.

Submitted in partial fulfillment of the requirements for the Award

of Degree of Master of Business Administration to

Kurukshetra University

(SESSION 2011-2012)

Under the supervision of Submitted By

MR MOHIT AGGARWAL SHILPI SINGLA

REGINOL SALES MANAGER ROLL NO: 7311778

 ACKNOWLEDGEMENT
First and foremost, I would like to express my sincere gratitude to Mrs. Supriya Dhillon
Additional Director,Kaim College, CH. Dadri. without whose support and encouragement
I would not have achieved what I have today.

I extend my deepest thanks to my mentor and guide, Mrs. Anamika, Faculty, Galaxy
Global Group of Institutions for providing me the necessary information whenever
required and for his valuable comments and contribution. Her consistent support and
cooperation showed the way towards the successful completion of the project.

I am sincerely grateful to Mr. Mohit Aggarwal (Sale Manager, Cipla pharmaceuticals) for
their help and guidance in preparing my project report. At last but not least I express my
greatest gratitude to my parents who provided me the moral support and encouragement.

(Shilpi Singla)

Preface
 CERTIFICATE -1
This is to certify that report entitled, "Chemist behaviour towards generic product"
submitted for the degree of MBA in subject of summer training report, is a bonafide
research project earned out by Shilpi Singla, student under my supervision and no part of
this report has been submitted for any other degree.

The assistance and help received during the course of investigation have been fully
Acknowledged.

Mrs. Anamika
(Faculty of Management)
 Contents

Part- A

Serial No. Title Page no.

1. Introduction to the Indian Pharmaceutical Industry

2. Introduction to Cipla
2.1 Mission & Vision
2.2 Global Presence
2.3 Manufacturing and R&D facilities
2.4 Mergers and acquisitions
2.5 Products
3. Organizational Structure
4. Board Of Directors
5. SWOT Analysis
6. Awards

Part-B

Serial No. Title Page no.

1. Introduction to the Project

Research Methodology
Data Analysis and Interpretation
Conclusion and Suggestions
Questionnaire
Bibliography
 1. Introduction to Indian Pharma Industry

PHARMA INDUSTRY OVERVIEW-

The Indian Pharmaceutical Industry today is in the front rank of Indias science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. A highly organized sector, the Indian Pharma Industry is estimated to be
worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the
third world, in terms of technology, quality and range of medicines manufactured. From
simple headache pills to sophisticated antibiotics and complex cardiac compounds,
almost every type of medicine is now made indigenously.

Playing a key role in promoting and sustaining development in the vital field of
medicines, Indian Pharma Industry boasts of quality producers and many units approved by
regulatory authorities in USA and UK. International companies associated with this
sector have stimulated, assisted and spearheaded this dynamic development in the past 53
years and helped to put India on the pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered
units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical
companies control 70% of the market with market leader holding nearly 7% of the market
share. It is an extremely fragmented market with severe price competition and
government price control.

The pharmaceutical industry in India meets around 70% of the countrys demand for bulk
drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules,
orals and injectibles. There are about 250 large units and about 8000 Small Scale
Units, which form the core of the pharmaceutical industry in India (including 5 Central
Public Sector Units).These units produce the complete range of pharmaceutical
formulations, i.e., medicines ready for consumption by patients and about 350
bulk drugs, i.e., chemicals having therapeutic
value and used for production of pharmaceutical formulations.

Following the de-licensing of the pharmaceutical industry, industrial licensing for most of
the drugs and pharmaceutical products has been done away with. Manufacturers are free
to produce any drug duly approved by the Drug Control Authority. Technologically
strong and totally self-reliant, the pharmaceutical industry in India has low costs of
production, low R&D costs, innovative scientific manpower, strength of national
laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich
scientific talents and research capabilities, supported by Intellectual Property Protection
regime is well set to take on the international market.

ADVANTAGE IN INDIA
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
 2. Introduction to Cipla

Introduction
Cipla was registered as a public company with an authorized Capital of Rs 6 lakhs on
August1935. This was started as a small drug and medicines manufacturer under the
name TheChemical, Industrial and Pharmaceutical Laboratories, which came too
popularly called as Cipla. Cipla was officially opened on September 22, 1937 when the
first products were ready for the market.

Khwaja Abdul Hamied founded Cipla. In college, he found Chemistry fascinating. He set
sail for Europe in 1924 and got admission in Berlin University as a research student of
The Technology of Barium Compounds". He earned his doctorate three years later. He
gave the company all his patent and proprietary formulas for several drugs and
medicines, without charging any royalty.

Cipla Ltd. has displayed remarkable understanding to grow both vertically and
horizontally. Since its formation, Cipla has repeatedly scored success in its industrial
ventures by tapping opportunities in the market, even in a fierce competition in the
international environment.

Today, the company is under the chairmanship of Sh. Yusuf Hamied the Company's
principal activities are to manufacture chemicals and pharmaceutical products. The
company has more than 1,000 products in the domestic market including generic AIDS
drugs, antibiotics, anti-asthmatics, anti-cancer, anti-inflammatory, anti-depressant and
other drugs. It produces its products at 10 manufacturing plants located throughout the
country. Cipla is the leader in the domestic retail pharmaceutical market, ahead of
GlaxoSmithKline. The products of the Company are sold in India, Africa, Middle East,
Europe, Americas, Asia and Australia. It also exports raw materials, intermediates,
prescription drugs, over- the-counter products, and veterinary products to more than 160
countries around the world. A strong financial base and marketing standing are the main
reasons of companys consistent and rapid growth that sustained even more than four
decades.

Research and Development

Continues to play a vital role in the achievement of companys goals. It perfectly
compliments with companys goals of leadership, quality and growth. From product to
productivity, from quality control to cost reduction, Research and Development is helping
Cipla.

Human resource development

is recognized as the assets of any organization at all ranks. It is for the reason that
considerable attention is given to Human Resource Development. The development
programmers aimed at motivation and enhancing efficiency at all levels. Cipla supplies
its cheap anti-AIDS drug to more than 35 countries, mainly in Africa. In March it was
named by World Health Organization as one of the preferred suppliers of Anti- AIDS
drugs. Cipla is aggressively expanding its therapeutic reach in high margin segment of
cardiovascular, diabetic, anti asthma inhalers and central nervous system to boost
domestic sales. With marketing joint ventures in all major markets of Europe, Australia,
Africa, South East Asia, China and US. The company comes with modern drugs at a
comparatively lower price in the domestic market.

REGULATORY APPROVALS

A number of dosage forms and APIs manufactured in the companys various plants
continue toenjoy the approval of most major international regulatory agencies. These
include the US FDA,MHRA UK, PIC Germany, MCC South Africa, TGA Australia, the
WTO Geneva, Departmentof Health Canada, ANVISA Brazil and SIDC Slovak Republic.

MISSION AGAINST AIDS, MALARIA AND OTHER NEGLECTED DISEASES

Cipla continues its fight against the AIDS pandemic. Its medicines are helping to treat
over 2.00.000 patients worldwide. These are several initiatives to make available new
anti-retroviral drug too HIV patients, in India and other countries, at reasonable prices
and Cipla will do itsvery best in this humanitarian effort. In this matter, the company has
co-operated with the international communities in every way possible. Cipla has also
been among the major suppliers of anti-malarial drugs and drugs for neglected diseases
such as schistosomiasis to international markets.

2.1 VISION & MISSION

VISION
Cipla started with a vision to build a healthy India. And along the way realized,
That in our own small way, we could contribute to making the world a healthier place.
Well continue to bring a smile on as many faces as we can to heal the world as much as we can.

MISSION
The mission of caring for life, which continues to this day and God willing it will
continue in the future.
2.2 Global Presence

2.3 Manufacturing and R&D facilities

Mumbai
Corporate Office and R& D centre for formulations
289, J. B. B. Marg, Mumbai Central, Mumbai - 400 008
Vikhroli
Manufacturing of bulk drugs & formulations (Liquid Orals,Aerosols), R&D bulk drugs &
formulations
Bangalore
Manufacturing of bulk drugs & formulations (R&D Bulk drugs)Approved by US FDA
(for bulk drugs); WHO
Patalganga
Manufacturing plant for bulk drugs & formulations (R&D Bulk drugs)
Kurkumbh
Manufacturing facility for bulk drugs & formulations (R&D Bulk drugs)
Goa
Manufacturing set up for formulations
Baddi, Himachal Pradesh
Manufacturing of tablets & capsules, formulations

2.4 Mergers and acquisitions of Cipla ltd:

Cipla to buy meditab specialties to boost API and intermediateproduction capacity for
$28 m 25 Aug 2010.

Akorn and Cipla team up in 2007 for exclusive manufacturing andsupply agreement
for an undisclosed inhaled drug.

Cipla talk with big pharma, Takeda mulls and number of globalpharma players,
including Pfizer about potential generic supplydeals

2.5 Products:
Pharmaceuticals:

Cipla manufactures anabolic steroids, analgesics/antipyretics, antacids, anthelmintics, anti-

arthritis, anti-inflammatory drugs, anti-TB drugs, antiallergic drugs, anticancer drugs, antifungal,
antimalarials, antispasmodics, antiulcerants, immunosuppressants etc,

Animal Health Care Products:

These include: aqua products, equine products, poultry products, products for companion
animals, and products for livestock animals.

OTC:

These include: child care products, eye care products, food supplements, health drinks, life style
products, nutraceuticals & tonics, skin care products, and oral hygiene products.

Flavour & Fragrance:

Cipla manufactures a wide range of flavours, which are used in foods and beverages, fruit juices,
baked goods, and oral hygiene products. Cipla fragrances have wide ranging applications such as
in personal care products, laundry detergents and room fresheners.
 3. Organizational Structure

Organizational Structure
4. BOARD OF DIRECTORS
Chairman and Managing Director
Dr. Y.K. Hamied

Joint Managing Director

Mr. M.K. Hamied

Whole-time Director
Mr. S. Radhakrishnan

Non-Executive Directors
Mr. V.C. Kotwal

Dr. H.R. Manchanda

Mr. M.R. Raghavan

Mr. Ramesh Shroff

Mr. Pankaj Patel

Dr. Ranjan Pai

 5. SWOT Analysis

STRENGTHS:
1. Ranks #2 in the retail prescription market in India;
2.18 brands that feature among the top-300 brands;
3. Large basket of 1,500 formulations.
4. Partnered 8 leading generics companies in the US for nearly 125projects.
5. Exports to over 175 countries that contribute 54% of total turnover.
6. Company has an extensive distribution network.
7. One of the countrys best R&D process.

WEAKNESSES
1. Domestic growth was steady at 10 per cent.
2. Growth in formulation exports was affected due to various factors including non
availability of important raw materials, lower tender business in anti- retroviral.
3. Impact of IPR regime.

Opportunities
1. 46 ANDAs (Abbreviated New Drug Application) pending for approval in US.
2. Plans of launching bio-similar, particularly relating to theoncology, anti-asthmatic and
anti- arthritis categories
3. Around 10% contributions to the revenue from the Indore SEZ to start coming in from
FY2013E.
4. Bio- therapeutic: a new and promising area.
5. Agreement with avesthagen.

THREATS
1. Some pending legal cases on account of alleged overcharging in respect of certain
drugs under the drug price control order
2. Sensitive to fluctuation in foreign currency exchange rates.
 6. AWARDS

AWARDS AND ACHIEVEMENTS

Cipla Director Received Padma Bushan Award in 2005 i.e Dr. Y.K Hamied.
 In 1976 cipla launches medicinal aerosols for asthma.

In 1980 won Chemexil Award for excellence of exports.

In 1988 won National Award for Successful Commercialization of Publicly

Funded in R&D.

In 1997 Cipla became the first company in the world by launching transparent
Rotahaler, a dry powder inhaler device

In 1998 the company launched lamivudine, and became one of the few companies
in the world to offer all three component drugs of retroviral combination therapy
(zidovudine and stavudine already launched).
 Part-B
1. Introduction to the Project

Overview:-
With the growth of Indian pharmaceuticals industry, now it has been clear that Indians are now
more health conscious. They used to visit doctors or healthcare consultants for the treatment of
any acute or chronic disease.

But even in todays scenario there are lot many peoples who used to take either self medication
or treatment from unqualified person. Major reason of this is cost effectiveness because if
they visit qualified doctors for small-2 health problem, they will have to pay Rs 50 to Rs 200 as
consultation fee and Rs 50 to 200 for cost of medicine.

These unqualified healthcare professional used to provide whole treatment with in Rs 20 to Rs

50. These are basically RMPs and some chemist counters who are providing this type of
treatment. They majorly used generics drugs as dispensing medicines to provide cost effective
treatment. For any healthcare professional the purchase rate of generics drugs is almost 10 to 20
% as compared to prescribed drug. There are many companies which are providing generics drug
start from leading Pharma companies to local level companies.

This report is basically based on the survey done on chemist level to know about the
generic drugs practices going on chemist level.

Chemists who are majorly involved:-

Major generics drugs are used by those chemists who have their self practice. They are having
their setup either at busy location or in remote area of towns. Basically these chemist counters
are famous in between middle class and low class peoples, to provide so called treatment.

Why chemist used generics in self practice:

Generally patients comes with small-2 health issue at these chemist counters like cough,
headache, fever, common cold, stomach pain, loose motion, acidity, vomiting, pain in any part of
body and weakness.

For these small health issues patient like labour class and low income people do not wants to
spend more money. So these chemist counters provide so called treatment for these diseases with
in Rs 30 to 40 with 2 or 3 days therapy. That is the reason they have to sell generics drugs.

Criteria for selecting company for generics drugs:

 First and foremost chemist wants good quality medicine so that patient comes back to
him

Purchase rate of the generic drug should be less

Major and important thing chemist wants monopoly of that generics drug because there is
a competition among them. If they give generic drug of any known company at any
particular cost, another chemist try of attract the patients by giving less price of that
product. So chemist want to sell only that good quality medicine that on other chemist is
selling.

Dispensing according to the profile of patients:

If chemist has very good self practice, he wants to give only that drug which has their monopoly.
But if patient wants good company medicine then they sell good company medicine.

Marketing of Generic Companies:

Usually there is not fixed marketing policy of generic companies. There is hardly any field
person for marketing generic drugs, in most of the cases marketing is done by stockiest only. If
stockiest has good relation with the chemist and stockiest has flexible price for generic drugs
then he can sell more.

There are companies who have very good promotional strategy which they are doing with the
help of stockists.

Promotional package:
Few leading companies are providing gifts with certain purchase of quantity. They are providing
CFL tubes, Scissors, brass casseroles, towels, glow sign boards. Wing has one unique strategy for
their product Diclowin-plus that they are providing coupons inside the box of Diclowin-plus,
each coupon has some score mention in it. Chemist has to collect certain coupons up to certain
score on which there are prizes like Steam press, stroll bag, fan, and heater.

Growth in generic drug sales:

In posh area the sale of generics drugs are very less but in remote area the sales of generics drugs
is high. In posh areas peoples wants to consult the doctors first. In these area the sale of generic
drugs is decreasing but in remotes areas the sale of generic drugs are increasing day by day.

Leading companies deals in generics drugs:

Following are the leading companies deals in generics:-

Cipla
Ranbaxy
GR
Intas
Alembic
Wings
PIL
Sandoz

Some local generics companies operating in Ambala:-

Ombiotic

Curewell

Sincom

Laborate

Origin Pharma

Stockiest margin policy:

There is no fixed margin for stockiest for generics drugs. Stockiest used to bill the drugs at their
own prices. There is the difference of 10 to 20% in the prices of stockiest. Generally stockiest
used to see the demand Vs competition in the market on which they decide their own rate for
particular chemist. Like if we take the example of any Codine syp of any leading company the
price difference is 10 to 50 %

In the distribution of generic drugs, there is no control of wholesale union on the number of
stockiest of any particular company. Everyone can be the stockiest of any generic companies.
Chemist margin for generic drugs:
Generally there is not any fixed rate on which chemist are selling drug to patients. They charge
the prices according to the level of patients and level of disease. Generally they provide the
therapy of two or three drugs for any particular disease and charge from Rs 20 to 50.

In that way their margin varies from 50% to 300%.

Top brands of leading generics companies:

Below are the top brands of leading generics companies which are accepted every where.

Cipla: nicip, nicip plus, cetcip, okaset, nicip MR, cipzox, Duocip, Cipladine, Maxirich
Ranbaxy: Fenec Plus, afenec plus zentamycin inj

Intas: intagesic MR, intagesic, nimcet gold, nimcet MR, oflatas 200, oflatas OZ
Research Methodology
Nature of Research:
A Exploratory cum descriptive approach was followed since this involved conducting the
survey in which data is collected about the sales of different products to know about the
sales of various molecules in Haryana.It is aimed specially at collecting information from
various chemists operating in the Haryana.

Research design:
The field survey for the project was conducted through a structured questionnaire for
chemists(see Appendix). The questionnaire contained mostly close ended and some open
ended questionsaimed to know about the sales and availability of Diff. molecules
considered in the study. All the data collected, is primary data as well as secondary data is
used in study.

Universe and Survey Population:

The present study will be conducted in many areas .Survey population is chosen from the
universe on the basis of convenient random sampling. About 100 retailers are covered in
survey in many places like ambala, ismailabad, kaithal, pehowa during the study.
Sample Size and Techniques:
In this a part of the population is selected to serve as representative of the population on
which research is carried out. This is necessary because sometime the size of the
population make it difficult to study each member of the population. In the present study
more than 100 retailers are covered in survey in allotted area, hence sample size is about
100. The techniques used for choosing sample size are convenient sampling and random
sampling.
Data Collection and Data Resources

The study is based on primary data as well as secondary data is involved in it. The
researcher has conducted a survey and primary data is collected with the help of
structured questionnaire filled by the researcher during personal interview with the
respondents
Research Instrument:
Structured questionnaire contained close-ended questions and a few open-ended
questions, issued as a tool for collection of data. Also there are some secondary data
collected by company website, whole sailors, threw companys internal departments.

Analysis Patterns:
In order to analyze the collected data the researcher has used the techniques of
Percentage and Ratio analysis with the major drugs of the company which have
a competitive market share.

LIMITATIONS OF THE STUDY :

Following are the limitations of the study:
1The scope of study is limited
2. The study is related to a period of June-July, 2012
3. Response from the respondents may be different from actual view. Respondents might
not disclose the actual view.
4. Collecting information from people during the working hours was also critical.
5. The retailer do not show any interest in filling the questionnaire because they thought
that it is not beneficial for them
.
Data Analysis and Interpretation
Q1. Type of practice in percentage?
Q2. In Self practice which type of patients comes to you (in percentage)?
Q3.for which type of diseases you get patients for self practice?
Q4. Which medicine you dispense mostly in self practice?
Q5. Which company products mostly you use in self dispensing?
Q6. Reason of choosing any particular companys product?
Q7. Your comments on the marketing of generics drugs companies?
Q8. Total Average cost of medicine you provide to your customer?
Q9. Which Stockiest provides you good service and how?

Questionnaire
 Questionnaire for Chemists
Name of retailer:
Address:
Mobile no:

Type of practice in percentage?

Doctor Prescriptions:
Over the counter:
Self practice:

In Self practice which type of patients comes to you (in percentage)?

Lower class: Middle class:

Upper class:

For which type of disease you get patients for self practice?
1) Fever 2) Acidity
3) Stomach pain 4) Cold
5) Head ache

Which medicine you dispense mostly in self practice?

1) Cipladine 2) Nicip

3) Nimcet MR 4) Cipzox

5) Oflatas OZ

Which company products mostly you use in self dispensing?

1) Cipla 2) Ranbaxy

3) Sandoz 4) Wings

5) Intas

Reason of choosing any particular companys product?

% Margin to retailer: Low cost to retailer:
Results of products: Any other reason: _______________

Your comments on the marketing of generics drugs companies?

Field person:
Gift policy:
Promotional package:
Stockiest involvement:
 Total Average cost of medicine you provide to your customer?
Below Rs 20: Rs 20 to 50:
Above Rs 50:

Which services company provides you in keeping of the generic medicine of the
company?
Delivery on time: Lowest rate:
Fair dealing: Credit policy:
Any other: ___________________
 Bibliography

http://www.cipla.com/

http://www.cipla.com/corporateprofile/financial/pdf/cipla_ar_2011_12.pdf
Kothari, C.R. (2004), Research Methodology-Methods and techniques, Second Edition, New
Age International (P) limited, Publisher, New Delhi.
http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf

http://www.idma-assn.org/Speech.pdf