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General Introduction
Pharma and medicines are closely related professions, which are indistinguishable in their earlier history. The word “Pharmacy” comes from the Greek root word „Phamacon‟ meaning originally a charm then a poison and finally a drug. From 15th to 17th centuries pharmacy probably reached the zenith of its success as a mysterious art. The rarity and cost of raw materials and many difficult and tedious operations to prepare eventhe simplest medicines, all combined to make the pharmacist a person not only of great technical skill but one who was indispensable to the source of the physician.

Pharmaceutical Industry in India
The Indian Pharmaceutical Industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this subcontinent. The Indian pharmaceutical industry today is in the forefront of India‟s science based industries with wide ranging capabilities in the complex field of drug manufactures antibiotics and cardiac compound, almost every type of medicine is made in India. The pharmaceutical industry in India meets around 70% of the country‟s demand for bulk drugs 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 pharmaceutical industry in India including 5 central Public Sector Units. These units produce the complete range of pharmaceuticals formulation and 350 bulk drugs. The Indian pharmaceutical market has achieved a tremendous growth and has showed further potential in terms of infrastructure development and technology. Pharmaceuticals are medically effective chemicals that arc converted in to dosage forms suitable for patient to imbibe. In the basic chemical form pharmaceuticals are called bulk drugs and the final forms are known as formulations.
P G Dept. of Management Studies & Research Centre, PESITM, Shivamogga. 1

The domestic pharma industry employed half a million people indirectly. The Indian pharmaceuticals industry underwent a sea change with the new product patent protection law coming into force from January 1. with exports accounting for nearly 32% of the total revenues and 90% of the exports constituting generic drugs. Currently. a new product or drug discovered after January 1995 can be patented. of Management Studies & Research Centre. 2005. P G Dept. It is one of the 4th largest ranking in volume terms and 13th in the global pharmaceutical industry. PESITM. which gives the manufacturer the exclusive right to manufacture that product or drug. has been growing at a fast pace and has made significant progress in the recent past. meeting almost 95% of the country‟s healthcare needs. taking the total employment generation of the industry to three million people. It is one of the globally competitive industries in India with a strong research and development base. The industry is also creating employment opportunity for many. In other words. The year 2005 was a land mark in the history of Indian pharma with Indian becoming TRIPS complaint. the inventor is granted monopoly of the drug for a specific period of time and during that period no other company can manufacture that drug without paying a patent fee to the patent holding company. with over 20. The industry. 2 . As per the law.000 registered manufacturers in its ranks.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED The Indian pharmaceutical industry has come a long way from its modest beginnings in the 1970‟s to become a significant manufacturer of healthcare products. the Indian pharmaceutical industry is valued at approximately $8 billion and is the fifth largest manufacturer of bulk drugs in the world. Shivamogga.

antibiotics. Netherland and Europe. Inject able and dry powder vials) tablets. The objectives of the company are to ensure easy availability of drugs to meet the heath needs of people at reasonable prices.  To modernize.. P G Dept. pharma drugs and immuno diagnostic kits in the form of vials and ampules (Liquid. and vascular therapy drugs. PESITM.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED COMPANY PROFILE KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED Background and inception of the company Karnataka Antibiotics and Pharmaceuticals Ltd was promoted by Government of India through (Hindustan Antibiotics Limited) HAL and the state Government (through Karnataka State Industrial Investment and Development Corporation Ltd) KSIIDC. oral dry. KAPL was incorporated on 13th March 1981 as a joint sector Pharmaceuticals Company with the central Government started with the primary goal of HEALTH FOR ALL. It is also marketing immune diagnostic kits. Shivamogga. vitamins 13 capsules. non-steroids. upgrade and improve facilities for the higher production as well as productivity. antibacterial. capsules. syrups and others. ayurvedic medicine and agro chemicals. Company’s Objectives Evolve corporate strategy for company‟s continuous growth and profitability including strategic alliances. The company is also presently engaged in the manufacturing of life saving drugs. The company has been exporting its quality medicines to international organization like UNICEF international drug association including other customer in Germany. KAPL has been accredited with ISO 9001 certificate. of Management Studies & Research Centre. liquids parenterals liquid. 3 . this has been mainly due to the hard work of its efficient employees and its efficient management and administration. KAPL is today actively involved in the production of and marketing antibiotics. One outstanding and notable achievement of KAPL is that it has been only public sector undertaking making profit since its inception.

KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED  To continuously improve the quality of products. NATURE OF THE BUSINESS  Karnataka Antibiotics and Pharmaceuticals Ltd was promoted by Government of India through (Hindustan Antibiotics Ltd) HAL and the State Government through( Karnataka State Industrial Investment and Development Corporation Ltd) KSIIDC.  To generate internal and external financial resources to diversify projects. We will continue to harness emerging technology to match global technology standards. In our pursuit of growth.  To maintain and develop its work force.”  To achieve corporate excellence in the field of quality drugs at reasonable prices.  KAPL investing in employees through continuous training and motivational program.  KAPL was incorporated on 13th March 1981 as a joint sector Pharmaceuticals Company with the Central Government with the primary goal of HEALTH FOR ALL. PESITM. 4 .  To develop and maintain highly motivated human resources. we will remain totally committed to quality & customer satisfaction.  To strengthen the marketing strategy to effectively compete in national and international projects. P G Dept. Shivamogga.” Vision  “KAPLwill maintain a path of sustained growth by responding proactively to new market opportunities & consumer needs. of Management Studies & Research Centre. Vision and Mission Mission: “To achieve corporate excellence in the field of quality drugs at reasonable prices.  To generate enough internal and external financial resources to implement its diversification projects.

Benzathinc penicillin injection 3. Ampicillin injection 7. Chloramphenicol injection Liquid Injectables 1. Cefotaxine injection 8. Cotremoxazole tablets 5. Kloxamp injection 6. Metrimoxazole tablets 6. Gentamycin injection 3. Erythromycin esrolate tablets 4. Nufene injection 4. of Management Studies & Research Centre. Gentamycin injection vial 2.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED To strengthen Marketing strategy in organization to effectively compete in national and international resource. Shivamogga.Haematinic tablet 2. PESITM. Celriax injection 9. Streptomycin injection 10. Cloxacillin injection 5. Numo tablets P G Dept. Paracetamol tablets 7. 5 . Benzyl penicillin injection 2. Ivermec Injection -10ml and 50ml pack  Tablets 1. Products Profile PRODUCT RANGE Dry Powder Injectables 1. Fortified procaine penicillin injection 4. Zinfe XT tablet. Nufenac tablets 8. Monybiotic kid 3.

Kloxamp capsules 4. Zynfc capsules 6. PESITM. Quin tablets  Capsules 1. Amoxycillin capsules 7. Pedriatic 3.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED 9. Tetracyclinc capsules 2. 6 . Emidon tablets 10. Moxybiotic capsules 5. Ampicillin for oral suspension Area of Operation P G Dept. of Management Studies & Research Centre. Timpicillin capsules 3. Pertenol tablets 11. Shivamogga. Cyfolac capsules  Suspensions 1. Remicic 2.

Ranbaxy 2. AurobindoPharma 7. Sun Pharma Industries 5. Ipca Infrastructural facilities B-Lactam Injectable Facility  High tech. Name of the share holder Hindustan Antibiotics Ltd (HAL) Karnataka Small Industrial Investment & Development Corporation (KSIIDC) % of share 59% 41% Competitors Information 1. CadilaPharama 9.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED Ownership pattern Name of the share holder Hindustan Antibiotics Ltd (HAL) Karnataka Small Industrial Investment & Development Corporation (KSIIDC) Industrial Development Bank of India (IDBI) 10% % of share 58% 32% Later IDBI took back its share. automated aseptic continuous production line capable of handling multi products. 7 . Cipla 4. Reddy’s Laboratories 3. P G Dept. of Management Studies & Research Centre. Aventis Pharma 10. Dr. GlaxosmithklinePharma (GSK) 8. Now the structure of the holding is as follows. multi dosages to the highest accuracy and with least human intervention. Lupin Labs 6. PESITM. Shivamogga.

80. Enteric coating. of Management Studies & Research Centre.  Class 100 up to sealing.  Automatic filling and stoppering operation without manual handling.  Automatic sticker Labeling Machine-120 vials/minute NON ß-LACTAM INJECTABLES MANUFACTURING FACILITY  Filling and stoppering automatic equipment from “Perry” USA  Filling. PESITM. Germany.000 vials per shift of 8 hours NON-PARENTERALKEY FACILITY TABLET  Facility for Film coating. Capacity 10 lakhs per shift.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED  Vial washing. sterilization and cooling system: gilowy. stoppering under class 100  Continuous line. Shivamogga. starting from filling to packing  Capacity 50.000 vials per shift of 8 hours. P G Dept.capacity 240 vials per minute  Line capacity. 8 .  Machines equipment for manufacturing tablets from 6 mm to13 mm. Blister packing &Aluminum strip packing.  Loop system for dc-mineralized water and water for injection.

PESITM. SACHETS & POWDERS:  Facility for liquid syrup & suspension from 30 ml bottle to 5 liter container  Facility for dry syrup bottles 30 to 100 ml. Quality excellence certificate  Instituted by Indian drug manufacturers association (IDMA). 1987. Bombay for the year 1986. 1994 and 1995. Hyderabad. size „2‟ to size „0‟ LIQUID ORALS & DRY SYRUP.  AMCO Rolling Shield For harmonies employer or employee relationship in industrial relations in 1986 and 1989-90 by the rotary club of Bangalore. of Management Studies & Research Centre. 9 . Excellent Organization Award  This award instituted under Rajiv Gandhi Memorial National Award by the Andhra Pradesh Central Public Sector Employee‟s Federation.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED Machines equipments for large tablets bolus up to 6 gram weight CAPSULES  Separate area for ß-lactam & Non-ß-lactam capsules dosage forms  10 lakh capsules per two shifts. Shivamogga. P G Dept. 1992. AWARDS AND ACHIEVEMENTS  ISO: 9001 certification from KMOGR of USA  KAPL is the first public sector pharmaceutical company to receive 9001accreditation.

10 . Goernmentt. Shivamogga. Euro Market Award 1992  Euro market award given by European Market Research Center. Chemical Award  This was received for export performance for the year 1990-91 and 1991-92 instituted by basic Chemicals. PESITM.  Indira Gandhi Priyaarshini Award  KAPL has received excellence in management of pubic sector unit for the year 198990 instituted by all India national congress New Delhi.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED BPE(Government of India)  KAPL received bureau of public enterprises award foe overall excellence in performance from honorable prime minister of India in January 1988. New Delhi. Pharmaceuticals and Cosmetics Export Promotion Council Ministry of Commerce.  Management of Settlement (MOS) award MOS Award was received in the year 1999-2000 P G Dept. Government of India. State Award for Export Performance  For the year 1992-93 instituted by Vishveshwaraiah Industrial Trade Center. of Management Studies & Research Centre. of Karnataka. Belgium for KAPL outstanding performance Management of outstanding Award  This award was received by the company in the year 1998-99 by ShreAtalBihariVajapayee for excellence in achievement of MOU targets.

11 . A company‟s structure may have a customer or geographical focus. of Management Studies & Research Centre. PESITM. Shivamogga. It contains the salient features of the organizational chart and interconnections within the organization Board of Directors Managing Director Human Resources Departmen t Chief General Manager Finance Department Marketing Department Production Department Quality Assurance Department Chief General Manager Chief General Manager Chief General Manager Chief General Manager SM M SM AG M DG M DM SM M AG M DM PPC Department Material Department Agrovert Department General Manager General Manager SM M AG M SM AGM M P G Dept.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED ORGANIZATION STRUCTURE: A company‟s structure affects its strategic planning and its ability to change.

  KAPLs stagnant margins are of concern. Recently these markets have been facing a down turn.   It has a highly skilled and both effective and efficient workforce It has a very good and qualified quality control system. provide a good platform to the Company to widens it product reach.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED SWOT ANALYSIS Strength  The extensive marketing network the company has built over the years.  The company has a wide range of products that it has acquired over a period of time and has a good marketing team to increase its top line by leveraging its products.  The company lacks adequate infrastructure to develop a drug from start to end. Weakness  Thecompany has large amount of exposure to the national markets. P G Dept.  It is having strength of cooperative and good relationships between its entire workforce those actively contribute to the growth and development of the organization. The company will be subject to the industry cycles in the bulk drugs segment which would result increased volatility in earning growth. covering more than five countries across the globe. of Management Studies & Research Centre. Well Developed Industry with Strong Manufacturing Base  Well Established Network of Laboratories and R&D infrastructure Strong marketing and distribution network. PESITM.  Continuous profit making. by which it has never faced failure of products and production system. 12 . Shivamogga.

this would increase the product range of KAPL. Shivamogga. it has all opportunities to access into global market.  It has a wide spread markets for its products both from domestic to international market.  KAPL has started investing in R&D and if these efforts succeed. Opportunity  KAPL has nearly sixteen drugs under development and once they get completed. this gives a great opportunity for its expansion. of Management Studies & Research Centre. Contract manufacturing arrangements with MNCs. Marketing alliances to sell MNC products in domestic market. it can result in significant benefits for the company. PESITM.  As day by day numbers of diseases are adding up in the society.  As it is regulated by Government.   Significant export potential. Lack of resources to compete with MNCs for New Drug Discovery Research and to commercialize molecules on a worldwide basis.  By the gift of high technologies and by the formation of global village system.KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED   Low investments in innovative R&D. Threats  In the near future the MNCs that are establishment in INDIA are expected to come out with their patented products which would intensify the competition for KAPL.  Though the company is updating with the new technologies of Production still some of them are old where the updating is still required. it has to wait for each and every step for its future actions. 13 . P G Dept.

KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED  KAPL has started investing in R&D and the returns from these activities would start coming only in the run. Shivamogga. 14 . and Government Auditors. also the outcomes of these efforts remain uncertain for long. P G Dept.  Lowering of tariff protection.  It is to be always on alert by the auditing bodies like internal.  Drug Price Control Order puts unrealistic ceilings on product prices and profitability and prevents pharmaceutical companies from generating invest able surplus. stationary. As it is an Oligopolistic competition it has to face a high amount of competition.  After the globalization number of MNC‟s entered Indian market in different industries and sectors this has tightened the competition much more. PESITM. of Management Studies & Research Centre.