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“KG” PHARMACEUTICALS Pvt. Ltd. : 

“KG” PHARMACEUTICALS Pvt. Ltd. Business Plan by Mrs. Rubina Khan and Mr. Sohit Gupta.

KEY POINTS : 

KEY POINTS Mission and vision. Introduction and reason for opening a new venture. Market summary. Competition . Products. Resource requirement. Financial plan. Marketing plan. Key issues.

Mission Statement : 

Mission Statement To become an internationally acclaimed research based pharmaceutical company and serve across nations.

Vision Statement : 

Vision Statement Achieving customer satisfaction is fundamental to our business. Provide products and services of highest quality. Practice dignity and equity in relationship. Provide opportunities to our people to realize their full potential. Ensure profitable growth and enhance wealth of our shareholders. Manage our operations with greatest safety to environment. Be a responsible corporate citizen.

Introduction : 

Introduction The “KG pharmaceuticals Pvt. Ltd.” is a partnership company and will be run by Mrs. Ruby Khan and Mr. Sohit Gupta. Both the promoters have been involved in production and marketing activities since long. By qualification promoters are life-science graduates along with master degree in clinical research and currently not involved in any-other business.

Reason for opening a new venture : 

Reason for opening a new venture India has a huge population in excess of one billion people and a growing middle class with access to high quality healthcare. Conversely, in this geographically vast country plagued by natural disasters, the majority of the population is both rural and poor and Western-style pharmaceuticals are not even an issue for millions of people. The Indian pharmaceutical market is highly competitive and remains dominated by low priced.

Continued…… : 

Continued…… India has an established domestic pharmaceutical industry, responsible for around 8% of world pharmaceutical production. The industry is export-oriented and the larger domestic companies are competing in the global market for both generics and original products. The highly skilled domestic workforce offers good opportunities for outsourcing both research and production.

Market summary : 

Market summary The Indian pharmaceutical industry is the world's second-largest by volume. Product development: Companies are also starting to adapt their product development processes to the new environment. For years, firms have made their ways into the global market by researching generic competitors to patented drugs and following up with litigation to challenge the patent.

Continued…… : 

Continued…… Small and medium enterprises: As promising as the future is for a whole, the outlook for small and medium enterprises (SME) is not as bright. The excise structure changed so that companies now have to pay a 16% tax on the maximum retail price (MRP) of their products, as opposed to on the ex-factory price. Consequently, larger companies are cutting back on outsourcing and what business is left is shifting to companies with facilities in the four tax-free states - Himachal Pradesh, Jammu & Kashmir, Uttaranchal and Jharkhand.

Continued…… : 

Continued…… Challenges: All of these changes are ultimately good for the Indian pharmaceutical industry, which suffered in the past from inadequate regulation and large quantities of spurious drugs. They force the industry to reach a level necessary for global competitiveness. Even after the increased investment, market leaders such as Ranbaxy and Dr. Reddy’s Laboratories spent only 5-10% of their revenues on R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last year was greater than the combined revenues of the entire Indian pharmaceutical industry.

Continued…… : 

Continued…… R&D: Both the Indian central and state governments have recognized R&D as an important driver in the growth of their pharma businesses and conferred tax deductions for expenses related to research and development. They have granted other concessions as well, such as reduced interest rates for export financing and a cut in the number of drugs under price control. Government support is not the only thing in Indian pharma’s favor, though; companies also have access to a highly-developed IT industry that can partner with them in new molecule discovery.

Continued…… : 

Continued…… Labor force: India’s greatest strengths lie in its people. India also boasts a cheap, well-educated, English-speaking labor force that is the base of its competitive advantage. Although molecular biologists are in short supply, there are a number of talented chemists who are equally as important in the discovery process. In addition, there has been a reverse brain-drain effect in which scientists are returning from abroad to accept positions at lower salaries at Indian companies.

Competition : 

Competition Ranbaxy Laboratories. Dr. Reddy’s Laboratories. Cipla. Piramal Healthcare. Mankind. Abott Pharmaceuticals. Lupin Laboratories. Wockhardt. Sun Pharmaceuticals. Cadila Healthcare….etc.

Products : 

Products • Simvastatin. • Co-Amoxyclav.• Ciprofloxacin and Combinations.• Amoxycillin and Combinations.• Isotretinoin.• Ketorolac Tromethamine.• Loratadine and Combinations.• Ginseng+Vitamins.• Cephalexin.• Atorvastatin and Combination.

Location : 

Location Manufacturing unit: “KG” Pharmaceutical Pvt. Ltd. Mohali, Punjab, India. Corporate Office: Plot 90, Sector 32, Gurgaon -122001, Haryana, INDIAPh: 91- 124- 4135000Fax: 91-124-413500

Resource Requirements : 

Resource Requirements Land and building for manufacturing. Human resource as per teams/job specification. Technology and equipment requirements like computers, laptops, printers, scanners, manufacturing machines. Finance of approx 50 Lacks which is to be decided later in further development of business plan.

Financial Plan : 

Financial Plan Both partner will invest 10lakh. Estimated Total expenses per month 90 thousands. Long term loan will be applied. Payment policy : Credit pay and Credit period will be 30 days. Profit share 50 -50 % within partner after interest is paid.

Marketing Plan : 

Marketing Plan Internal : Business development cell comprising of PSOs, Product managers, Marketing managers etc. Brand promotional activity comprising of brand recalls, therapy updates, brand promotions by KOLs etc. External Promotion : Arranging health care camp Arranging medical conference Outsourcing to advertising agencies.

Key Issues : 

Key Issues Near term: Pricing as per DPCO Act, 1968. Discounting policy will be decided by upper management. Delivery to be made by order. Any services/products to be purchased after relies of the PO by purchase dept. Long term: Purchase will be on credit. Credit period will be 30 days. Focus on : loan and funding . Arranging conferences.