Os Report
Os Report
PART – A
INDUSTRY PROFILE
COMPANY PROFILE
PART-C
SWOC ANALYSIS & PORTER’S
PART-B
MCKINSEY’S 7’S MODEL
3.0 MCKINSEY’S 7’S MODEL 22-27
PART-C
SWOC ANALYSIS & PORTER’S
FIVE FORCE MODEL
4.1 30
Strengths
4.2 30
Weakness
4.4 Challenge 31
PART-D
5 Financial Statement with Ratio 34-40
Analysis
PART-E
6 Learning experience. 41
7 Bibliography 42
2
PART - A
INDUSTRY PROFILE
1
1.1 OVERVIEW OF THE INDUSTRY
The drug manufacturing is a crucial subdivision loyal to the finding, development, result, and
shopping of drugs and medications secondhand for the situation, stop, and management of
ailments and healing environments. It encompasses a expansive range of exercises, including
test (R&D), production, classification, and sales of drug brand.Here's an survey of the
pharmaceutical manufacturing characterization:
This is the aspect where drug associations invest laboriously in the finding and happening of
new drugs and therapies.R&D includes preclinical studies, dispassionate troubles, and
regulatory approvals.Companies frequently participate with academic organizations, research
arrangements, and additional pharmaceutical firms to advance their R&D exertions.
Drug Manufacturing:
Once a drug candidate successfully completes clinical trials and obtains regulatory approval, it
moves to the manufacturing stage.Drug manufacturing involves the production of
pharmaceuticals in large quantities while adhering to strict quality standards and regulatory
requirements.
Regulatory Compliance:
The pharmaceutical industry is highly regulated to ensure the safety, efficacy, and quality of
drugs.Regulatory bodies such as the U.S. Food and Drug Administration (FDA), the European
Medicines Agency (EMA), and others oversee the approval and monitoring of pharmaceutical
products.
The pharmaceutical industry operates on a global scale, with companies competing in both
domestic and international markets.Emerging markets, such as China, India, and Brazil, present
significant growth opportunities due to increasing healthcare spending and expanding access
to healthcare.
Technological Innovation:
2
Challenges:
The pharmaceutical industry faces challenges such as high R&D costs, lengthy development
timelines, patent expirations, generic competition, and regulatory hurdles.Pricing pressures,
healthcare reforms, and market access issues also impact the profitability and sustainability of
pharmaceutical companies.
Trends:
Key trends in the pharmaceutical industry include the rise of biopharmaceuticals, increased
focus on rare diseases and specialty drugs, and the growing importance of digital health
solutions.Collaborations and partnerships between pharmaceutical companies, biotech firms,
and technology companies are becoming more prevalent to drive innovation and address
complex healthcare challenges.
Overall, the pharmaceutical industry plays a critical role in advancing medical science,
improving patient outcomes, and addressing global health needs. Despite its challenges, the
industry continues to evolve and innovate, driven by the pursuit of new treatments and
therapies.
From last ago ten years, the pharmaceutical sector has advanced significantly as a consequence
of a research-focused strategy that has enhanced technology, created infrastructure, and
boosted bioscience research. Biotechnology has allowed for the development of numerous
formulations that either treat or prevent the spread of a number of serious illnesses, such as
HIV and some forms of cancer..
The American and European markets are the two largest in the world's pharmaceutical
sector. In fact, based on World Health Organization data.
3
1.3 NATURE OF THE BUSINESS
The pharma industry is primarily involved in the research, development, manufacturing, and
commercialization of drugs and medications. Here's a breakdown of the nature of its business:
Drug Discovery:
Clinical Trials:
Clinical trials are conducted to assess the safety and efficacy of new drugs in human
subjects.
These trials are conducted in multiple phases, from testing the drug's safety in a small
group of volunteers (Phase 1) to evaluating its effectiveness and safety in larger patient
populations (Phase 2 and Phase 3).
Manufacturing:
4
Regulatory Compliance:
Post-Marketing Surveillance:
After a drug is approved and started marketing, drug companies are being the reason
for listening allure safety and productiveness in actual-experience settings.
This includes transporting post-shopping surveillance studies, resolving unfavorable
occurrence reports, and implementing risk administration game plans as wanted.
The pharmaceutical industry continues to exhibit significant growth potential driven by several
key factors:
Increasing Demand for Healthcare: As global populations grow older and healthcare needs
expand, there's a rising demand for pharmaceutical products to treat chronic diseases, infectious
diseases, and other medical conditions. This demand is particularly pronounced in emerging
markets with improving access to healthcare.
5
Rising Healthcare Expenditure: Governments and private sectors worldwide continue to
allocate significant resources to healthcare spending, including pharmaceuticals. Increasing
healthcare budgets, particularly in emerging economies, provide a conducive environment for
pharmaceutical companies to expand their market presence and sales.
Biopharmaceuticals and Specialty Drugs: The growing prevalence of complex diseases such
as cancer, autoimmune disorders, and rare diseases is driving demand for biopharmaceuticals
and specialty drugs. These products offer higher margins and longer patent protection periods
compared to traditional small molecule drugs, contributing to revenue growth for
pharmaceutical companies.
Regulatory Reforms and Market Access: Regulatory reforms aimed at expediting drug
approvals, reducing market entry barriers, and improving intellectual property protection in
various countries facilitate market access for pharmaceutical companies. Streamlined
regulatory pathways enable faster commercialization of innovative therapies, driving revenue
growth.
Mergers and Acquisitions (M&A): Consolidation within the pharmaceutical industry through
M&A activities allows companies to diversify product portfolios, gain access to new markets,
and achieve economies of scale. Strategic acquisitions of biotechnology firms, specialty
pharmaceutical companies, or emerging market players can enhance growth prospects for
pharmaceutical giants.
6
1.5 ECONOMIC FACTORS
The pharmaceutical industry is influenced by various economic factors that shape its growth,
profitability, and overall performance. Here are some of the key economic factors affecting the
pharmaceutical industry:
Research and Development Funding: Government capital for biomedical test (R&D) plays
a important role in forceful change in the drug manufacturing. Funding initiatives, grants, and
tax lures can motivate drug guests to purchase R&D activities, chief to the incident of new
drugs and analyses.
Market Access and Pricing Pressures: Pharmaceutical companies face challenges related to
market access and pricing pressures, particularly in markets with stringent pricing regulations
7
and cost containment measures. Negotiations with payers, formulary placement, and pricing
strategies are critical factors in determining pharmaceutical sales and profitability.
Global Economic Conditions: Macroeconomic factors, such as GDP growth, inflation rates,
and currency fluctuations, impact pharmaceutical sales and profitability. Economic downturns
may lead to reduced healthcare spending and prescription volumes, while economic growth
can stimulate demand for healthcare services and medications.
In summary, economic factors play a significant role in shaping the pharmaceutical industry's
landscape, influencing market dynamics, pricing strategies, innovation, and profitability.
Pharmaceutical companies must adapt to changing economic conditions and regulatory
environments to succeed in this highly dynamic and competitive industry.
Competitor reasoning is a essential process for any trade that wants to gain a back-and-forth
competition marketing. It includes identifying, judging, and listening the substances, defect,
opportunities, and dangers of current and potential contestants. In the drug manufacturing,
competitor reasoning is particularly main due to the extreme level of contest, novelty,
managing, and customer demand. By following these steps, pharma associations can gain
valuable observations into their rivals’ conduct, capabilities, blueprints, etc., that can help
ruling class to upgrade their own products, duties, processes, etc., and attain their trade aims.
Competitor analysis can help pharma companies to understand the market landscape and
identify gaps or niches, develop effective marketing strategies and positioning, anticipate future
moves and trends of competitors, enhance their product development and innovation
capabilities and mitigate risks and avoid costly mistakes. Steps
8
The first step is to determine the purpose and scope of the competitor analysis:
This involves defining the key questions to be answered, the criteria to be used, the sources of
information to be consulted, and the time frame to be covered. The scope and objectives of the
analysis should be aligned with the business goals and strategies of the pharma company.
Identify the key opponents: The next step is to label the current and potential challengers in
the market. This maybe accomplished by using differing beginnings of information, in the way
that manufacturing reports, databases, websites, publications, conventions, business shows,
social publishing, etc. The key contestants should be classification in accordance with their
product slices, terrestrial regions, consumer slices, etc,
Collect and analyze dossier on rivals: The third step search out accumulate and analyze
appropriate dossier on each competitor. This can contain determinable data (in the way that
auctions, revenue, display share, tumor rate, etc.) and qualitative dossier to a degree product
lineaments, benefits, distinction, positioning, etc. The dossier endure be verified for veracity
and dependability from multiple beginnings. The dossier should again be arranged and
presented in a clear and short approach.
Evaluate competitors’ substances and weaknesses: The one of four equal parts step search
out evaluate the substances and defect of each competitor established the calm data. This maybe
approved by using differing forms and frameworks, in the way that study, Porter’s five forces
analysis, and profit chain study. The evaluation endure focal point the competitive benefits and
troubles of each competitor in conditions of device quality, novelty, consumer satisfaction,
fixing, disposal, marketing, etc.
Identify time and warnings from competitors: The having five of something step search out
identify the time and dangers from competitors established the judgment of their strengths and
proneness. This includes anticipating their future moves and styles, in the way that new product
launches, mergers and additions, supervisory changes, etc. The opportunities and warnings
concede possibility be prioritized according to their tendency and affect the pharma company’s
business.
Formulate competitive strategies and action plans: The final step is to formulate
competitive strategies and action plans based on the findings of the competitor analysis. This
involves developing specific goals and objectives, selecting appropriate tactics and resources,
implementing and monitoring the actions, and evaluating the results. The competitive strategies
and action plans should be aligned with the pharma company’s vision, mission, values, and
core competencies.
9
1.7 GOVERNMENTAL REGULATIONS
Government regulations are crucial in ensuring the safety, efficacy, and quality of
pharmaceutical products. Here's an overview of key regulations governing the pharmaceutical
industry:
Regulatory Agencies: Government instrumentalities to a degree the U.S. Food and Drug
Administration (FDA), the European Medicines Agency (EMA),and the Pharmaceuticals and
Medical Devices Agency (PMDA) in Japan oversee pharmaceutical regulation. These agencies
evaluate, approve, and monitor pharmaceutical products.
Drug Approval Process: Before a drug can be marketed and sold, it must undergo a rigorous
approval process. This process typically involves preclinical studies, clinical trials, submission
of a New Drug Application (NDA) or Marketing Authorization Application (MAA), and
regulatory review. Regulatory agencies assess the safety, efficacy, and quality of the drug
before granting approval.
Drug Pricing and Reimbursement: Government regulations often influence drug pricing and
reimbursement policies, especially in publicly funded healthcare systems. Regulatory agencies
may negotiate drug prices, set price ceilings, or implement cost-containment measures to
ensure affordability and accessibility of medications.
These managing are essential for conserving public health and guaranteeing that drug products
meet extreme flags of quality, security, and efficiency. Compliance with supervisory
necessities is important for pharmaceutical guests to gain authorization for their products and
uphold advertise access
10
COMPANY PROFILE
2.1 BACKGROUND
India is the world's largest provider of generic pharmaceuticals. Greater than the global demand for
various immunizations, 40% of the US market for generic drugs, and 25% of the UK market for all
prescriptions are supplied by the pharmaceutical industry in India. India is a major player in the
global pharmaceutical market. There are also a lot of scientists and engineers in the country who
could take the industry to new heights. At the moment, about 80% of pharmaceuticals are supplied
by Indian businesses.of the antiretroviral medications needed worldwide to treat AIDS (Acquired
Immunodeficiency Syndrome). Khwaja Abdul Hamied established it as "The Chemical, Industrial
& Pharmaceutical Laboratories" in Mumbai in 1935. 'Cipla Limited' became the new name of the
company.. In 2013 Cipla acquired the South African company Cipla-Medpro, kept it as a subsidiary,
and changed its name to Cipla Medpro South Africa Limited. At the time of the acquisition Cipla-
Medpro had been a distribution partner for Cipla and was South Africa's third biggest pharmaceutical
company. The company had been founded in 2002 and was known as Enaleni Pharmaceuticals Ltd.
In 2005, Enaleni bought all the shares of Cipla-Medpro, which had been a joint venture between
Cipla and Medpro Pharmaceuticals, a South African generics company, and in 2008 it changed its
name to Cipla-Medpro.
Promoter Group:Y. K. Hamied and his family: Dr. Hamied, the founder of Cipla, and his family
members constitute the majority of the promoter group. Their holding as of September 30,
2023, stands at 33.61% of the total equity shares.The exact composition of the Hamied family within
the promoter group is not publicly available.
Shareholding Pattern:
The shareholding pattern of Cipla is dynamic and can change over time due to market
movements, share buybacks, and other factors.Information on individual shareholders within the
promoter group or other categories is not publicly available due to privacy regulations.You can find
the latest shareholding pattern information on Cipla's website or through investor relations channels.
11
2.3 VISION AND MISSION
Cipla's vision statement; We are expanding our footprint in important countries like South
Africa, India, and the United States, as well as other developing nations, in an effort to lower
the cost of healthcare on a global scale. Making a difference for patients has motivated
Cipla's efforts in every way for more than 80 years.
Cipla's Mission Statement: To make the consumer's future healthier and establish ourselves
as the world's most favored consumer healthcare brand. We make life better. constructing
resilient, successful teams, creating cutting-edge goods, and prioritizing the needs of every
customer
It's important to note that vision and mission statements are often crafted to guide a company's
overall direction, goals, and values. They serve as a framework for decision-making and
strategic planning, reflecting the company's aspirations and commitment to its stakeholders.
For the latest and most accurate information on Cipla's vision and mission, please refer to the
company's official communications.
Quality Management Systems (QMS): Companies often implement QMS to manage and
improve quality across all aspects of the business. This involves documentation, processes,
procedures, and a commitment to continuous improvement.
Quality Control Testing: Rigorous testing of raw materials, intermediates, and finished
products is conducted to ensure they meet predefined quality specifications. This includes
various analytical and microbiological tests.
Validation and Qualification: Validation of processes and equipment is done to doing the
consistently produce results meeting predetermined specifications. Qualification involves
ensuring that equipment, utilities, and systems meet predefined requirements.
12
Stability Testing: Pharmaceuticals must undergo stability testing to assess their shelf life under
various storage conditions. This ensures that products remain effective and safe throughout
their intended lifespan.
Documentation and Record Keeping: Detailed documentation is maintained for all aspects
of the manufacturing process and quality control activities. This helps in traceability,
accountability, and regulatory compliance.
KPMG India ESG Excellence Awards '23: ESG Champion Award – Pharmaceutical &
Healthcare category
India Health & Wellness Awards '23: Gold in Public Health Initiative of the Year, Silver in
Patient Centric Brand in Cancer Care and Disease Screening Initiative of the Year
Digital Customer Experience Confex & Awards 2023: Best Customer Engagement Initiative
of the Year: Healthcare Superstars
Frost & Sullivan and TERI's Sustainability 4.0 Award 2021: Challenger in Mega Large
Business Pharma Sector
13
BW India's Most Sustainable Companies Rankings for 2022-23: Ranked 1st in
Pharmaceuticals & Healthcare Sector and 5th in the Top 50 Most Sustainable Companies
Cipla Board Of Directors: Dr. Yusuf Hamied has been conferred prestigious awards like the
Padma Bhushan and DSc for his contributions to the pharmaceutical industry.
Cipla was the recipient of the 1980 Chemixcil Award for Export Excellence.Forbes
listed
Citla was recognized in 2005 as one of the top 200 Asian small businesses under $1
billion, and in 2006, Dun & Broad Street presented it with the American Express
Corporate Award.
In 2012, Cipla received the #3 Thomson Reuters India Inovation Award.
These are just a few examples of Cipla's achievements and awards, highlighting their
dedication to making a positive impact on people's lives through accessible and effective
healthcare.
CARDIOVASCULAR
Fourty Cipla began combating heart disease with cutting-edge, premium medications years
ago. Back in 1972, they brought the first beta blocker to India: propranolol. This brought in a
new era of reasonably priced beta blockers. They have created a number of drugs over the years
to aid in the treatment of a number of illnesses, including diabetes, obesity, arrhythmia,
hypertension, MI, angina, heart failure, and lipid abnormalities. In addition to being innovators
in cardiology, they benefit the medical community by offering workshops, CMEs, and the most
recent medical updates. Not to mention several international conferences held in association
with major scientific agencies, as well as webcasts and symposia featuring the top cardiologists
in the globe.
Additionally, they are dedicated to promoting patient awareness and disease diagnosis through
initiatives like Check BP and KBC (Know your Blood Cholesterol), which can assist medical
professionals in reaching hundreds of undiagnosed patients and enhancing treatment
compliance.
14
In the years to come, we shall continue to introduce novel drugs and combinations. They are
also exploring the therapeutic potential of stem cells as part of our commitment to fight heart
disease.
DIABETES
Cipla has created a number of anti-diabetic medications for the management and control of
diabetes as well as the treatment of complications that result from it, and has played a vital
role in the treatment and control of diabetes. Additionally, the goal of the physician and
patient services is to raise awareness in order to combat the illness.
Among Cipla's highlights are:
They offer a number of single and combination medications to treat diabetes, including the
single drug Metformin, the dual combination Metformin plus Glimepiride, and the triple
combination Metformin plus Glimepiride plus Pioglitazone.
They also offer medications to treat complications related to diabetes, such as high cholesterol
caused by Atorvastatin and Fenofibrate, painful diabetic neuropathy caused by Pregabalin,
and intermittent claudication caused by Cilostazol.Getting enough exercise is needful for
design blood sugar levels. We have worked hard to inform people about the role exercise
plays in managing their diabetes. An workout reminder on the flap of every bag is one of their
special tools.
They run a number of clinics where we frequently evaluate individuals for diabetes and its
complications in order to diagnose them early..
• They offer the medical community useful services such as CMEs, workshops, conferences, and
the most recent medical updates. These are held in association with global scientific
organizations.
They are dedicated to bringing new medications and patient services that emphasize improved
diabetes management to the battle against this illness..
15
Service Offerings:
Extensive product portfolio: Caters to diverse healthcare needs and offers affordable options.
Focus on specialty segments and biosimilars: High-growth potential and drives future
innovation.
Strong global presence: Reaches patients in over 80 countries.
Commitment to affordability and accessibility: Makes healthcare available to underserved
communities.
Investment in R&D: Continuously develops new drugs and improves existing ones.
Cipla's product and service profile is constantly evolving as the company strives to stay ahead
of the curve in the dynamic healthcare landscape. Its commitment to innovation, affordability,
and accessibility positions it as a significant player in making healthcare accessible to all.
Ever since its establishment, Cipla's philosophy has been deeply ingrained in the idea that "No
one will be excluded." The Company is adamant that every person has the fundamental right
to inexpensive, high-quality healthcare.Four major therapeutic areas are the focus of The
institutional business Cipla Global Access (C-GA) focuses on HIV/AIDS, malaria, multidrug-
resistant tuberculosis, and reproductive health. It is based on tenders.
Cipla's ARV drugs are without a doubt ultimate that are certified for use in treating two together
men and minors. More cosmopolitan compounds are again being grown in novel dosage
forms,such as pellets, to help optimize dosage for the current child treatment regimens.
Additionally, the goal of these forms is to reduce the tablet load, which will enhance treatment
success and adherence. With intentions to complete the project in 2016–17, Cipla is growing
its capacity in response to the rising demand for ARV medications. Furthermore, Cipla is one
of the largest global suppliers of antimalarial drugs. This portfolio provided treatment to over
16
55 million malaria patients across all affected countries. The yearly expansion in coverage is
saving millions of lives.
A wide variety of second line (SLTB) drugs are available from Cipla to treat multidrug-
resistant tuberculosis (MDR TB). It is expanding its MDR TB portfolio quickly in order to
address the resistance challenges that TB patients face as a result of the high rate of treatment
dropout. Only a limited number of patients globally have had access to Cipla's SLTB drugs up
to this point, but this number is anticipated to climb dramatically as new diagnostic methods
for drug-resistant TB become available. The focus of future MDR TB therapy research will be
on creating new drugs with the ability to significantly reduce treatment times. Currently, Cipla
serves over 70 countries in this area.
Higher of 3 lakh patients are currently served by Cipla worldwide in the rapidly expanding
fields of family planning and reproductive health. By 2020, Cipla plans to coordinate its
strategy with international development initiatives in order to give secure and effectual
contraception to an additional 120 million women.
Furthermore, Cipla Global Access provides medications for helminth infections, kala azar, and
schistosomiasis, all of which pose major health hazards in low- and middle-income countries
(LMIC).
Cipla is the brand that healthcare professionals trust the most because of its dedication to high
standards of quality. Currently, Cipla comprises 12 divisions that cover over 20 specializations,
ranging from general practitioners to superspecialists. With seven brands in the top 100 list,
Cipla leads the market in three therapies: antiretroviral (ARV), urology, and respiratory.Cipla
stands out in the highly competitive Indian pharmaceutical industry thanks to its strong brand
equity, wide range of products, innovative work in various therapeutic areas, multiple medico-
marketing initiatives, robust distribution network of depots serving over 3,000 stockists,
outreach to 7,000,00,000 chemists, and more than 10,000 can-do colleagues.
Cipla's strategy is to comprehend the particular needs of each patient and create solutions while
concentrating on raising patient awareness and improving medical education..
In the Republic of South Africa, Cipla Medpro, a completely possessed subsidiary of Cipla
Limited, is well-known across all therapeutic areas. Cipla also secured government contracts
in the fields of antiretrovirals (ARV), respiratory, and more recent ones including women's
health, mental health, and cardiovascular disease.
Being the first facility in the nation to comply with the Pharmaceutical Inspection Convention
(PIC), Cipla's production facility in Durban gives them a competitive edge. The brand is trusted
by customers, pharmacies, prescribers, and influential figures, and it has becom
Cipla live well it clear that LDCs (Least Developed Countries), containing those in Africa, will
gain as possession from someone's death approach. Cipla Quality Chemical Industries Limited
(CiplaQCIL), a state-of-the-art production plant in Uganda, manufactures antivirals for the
situation of hepatitis B apart from antagonistic-retrovirals and antimalarials that have taken
WHO prequalification. The best firm in East Africa provisions the Ugandan market and exports
to Cameroon and different Southern African nations. CiplaQCIL is now extending allure drug
17
line to contain situations for tropical afflictions aforementioned wiggle infestations, hepatitis
C, and type of encephalitis.
Cipla in the African chaste Cipla holds a advertise share over 5%, making it individual of the
substantial pharmaceutical trades in South Africa. Consolidated reductions for Cipla are
explained 14% by South Africa. Over ancient times three age, the private advertise's share of
trade profit in South Africa has increased by 9%. The South African association stated 4%
demand increase for the period on a like-for-like footing. Customers, pharmacies, prescribers,
and powerful belief directors all recognize the Cipla brand as a confidential information of
facts.Of revenues,
the private advertise justified 73%. Cipla too protected management contracts in the fields of
antiretrovirals (ARV), respiring, and more recent one containing mothers's well-being, insane
energy, and heart failure.
The company benefits from a back-and-forth competition from allure production plant in
Durban, that is the first in the country with its own government to obey the Pharmaceutical
Inspection Convention (PlC). The production whole turned a profit this period, up from a
required the former period on account of substantial increases in exercise, effectiveness, and
cost-control strategies.Cipla South Africa will impose upon cooperation from allure all-
encompassing kin by leveraging allure particularized future bag, important growth and in-
licensing projects, and diminished worldwide administrative makeup. Plans act schedule, and
the modern supply chain, finance, and workforce have all been adequately joined.The business
has secondhand allure proportion and knowledge to preserve costs in areas like
obtainment.Teva Pharmaceuticals (Pty) Ltd, a breach of Teva Pharmaceutical Industries Ltd,
and Medpro Pharmaceutica (Pty) Ltd, a Cipla Medpro helpful, have filed into a transactions
and dispersion concurrence that joins with Cipla's responsibility of providing South Africans
accompanying approach to a better range of fairly valued drugs and capitalizing on allure main
display share. The partnership will apply oneself the following healing districts: cardiovascular,
mothers's health, oncology, ophthalmology, and different concentration produce.
Through allure associates and within network, Cipla Europe NV, a entirely possessed
subsidiary of Cipla Limited, is present in any of European countries with its own government.
Cipla is dedicated to providing healthcare experts during the whole of Europe accompanying a
new drug idea that is established levels very important, containing enhanced merchandise,
ideas, layouts, information, and aids. Cipla is reveal approach to contemporary, fairly valued
pharmaceuticals in as well 20 European countries with its own government. The European
division proverb a 24% decrease in income all the while the old age, giving reason for 4% of
the guest's total profit. A one-occasion incident from the earlier old age, a approach participant-
located trade, and any supply-related questions were the main causes of the decrease. Strategies
have existed executed to handle these questions and replace party impetus.
Cipla is dedicated to causing contemporary lineaments to facts, duties, and production through
participations and research. Seven various inhaler products are immediately presented in not
completely individual European country. Our main crop, salmeterol–fluticasone MDl, is
immediately presented in demand in Hungary, Belgium, the Czech Republic, Slovakia,
Germany, and Croatia. The pricing form varies from country to country because it is
commanded for one societies neglected those nations, our evaluation of what each country can
pay, and our cost of merchandise.To degrade pediatric vaccinations in Europe,
Cipla Europe NV ink a dispersion handle Serum Institute of India Ltd. (Sll) and plans to start
ordering requests promptly.Additionally, Cipla and BioQuiddity inked an unshared shopping
18
contract for OneDose ReadyfusORTM sleep-inducer situations for post-surgical pain
administration. In the impending period, Cipla plans to introduce the CE Marked One Dose
Readyfus ORTM pre-suffused accompanying ropivacaine under allure own brand in Europe.
The travelling, non-energetic, ready-to-use immersion orders bear facilitate a smooth transfer
middle from two points care scenes.
In Europe, Cipla supplies a sort of cures, containing OTC, API, plain generics, HIV, vaccines,
respiring, and hospital equipment. Cipla is condensed on extending allure direct-to-retail
demeanor across many countries with its own government while presenting cutting-edge parts,
merchandise, and aids. Cipla USA, Inc., the US secondary of Cipla Limited, was the first Indian
party to acquire FDA confirmation in 1985. Cipla has loyal itself for over 30 years to providing
US victims accompanying approach to pharmaceuticals by way of a adequate alliance approach
model.The association has popularized products and buxom participations in the US. Cipla has
donated growth support to in addition to 170 ANDAs.
Cipla is energetically cultivating any of significant respiring drugs apart from added state-of-
the-art generics. 2015 proverb Cipla begin allure US label in January. Final contracts to acquire
two US-located associations, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc.,
were marked in September 2015 by Cipla EU, the UK estrangement of Cipla.With ventures
during the whole of South-East Asia, the Middle East, Latin America, Africa, Australia, New
Zealand, and the Russian-CIS domain, Cipla is widely scattered over the globe. Over a hundred
countries with its own government The guest offers as well a thousand commodity in a broad
variety.Cipla has further heartened allure position by employing the direct-to-display (DTM)
means and constituting allure own trade and brand closeness in 17 markets, containing Yemen,
Algeria, Morocco, Vietnam, Malaysia, and Sri Lanka, between others.
For the 2014–15 financial year, the association's combined pay from movements was Rs.
11,345 crore, an increase of 11.5% over the Rs. 10,173 crore earned the period before. The
revenue from movements for household trade raised by 18% to Rs. 4,825 crore in the financial
year under review from Rs. 4,090 crore in the premature fiscal year. Over the period, total
exports raised by 5.6% to reach Rs. 6,058 crore. The operating border drop by 2.7% all along
the period under review. The basic reasons for this contained the change in the product join,
taller R&D payments, and ability procurement. Profit for the period cut down by 15%, from
Rs. 1,389 crore to Rs. 1,181 crore in the earlier fiscal year.Research and Ratings for Indiahas
appointed the party a fixed scene and a enduring issuer grade of IND AAA. is a Fitch Group
guest. As the highest grade on Fitch's grade arrangement, it displays the best possible of
security in agreements of convenient credit payment and rude credit risk. Since the old age's
end, no material assurances or changes have existed fashioned that keep influence the
association's financial position as of the report's date..
CIPLA IN INDIA
One of the leading pharmaceutical companies in India, Cipla, is well-positioned to fulfill its
commitment to provide patients with affordable, cutting-edge medicine. According to data
from IMS Health, despite the challenges, Cipla's domestic business revenues grew by 20% this
year compared to the industry growth of 12%.
19
3.2% of the company's total sales were comprised of new items, of which 42% came from its
India business. The market share of our branded generics is currently 5.27%.
Cipla continues to focus on opportunities for in-licensing. Cipla held an in-license for
darbepoetin during the 2014–2015 fiscal year. Cipla successfully launched the generic drug
for the treatment of hepatitis C in India under the brand name HepCvir. Of the 12–18 million
persons estimated to have hepatitis C in India alone, up to 2 million may need treatment. When
taken in conjunction with other drugs, sofosbuvir, a new antiviral drug, has shown to boost
cure rates. It represents a major breakthrough in the treatment of hepatitis C.
In the coming years, the domestic industry will continue to focus on these issues:
23 Billion UNITS 75 Million 400 Million units 5 Million units 45 Million units
CIPLA
CAPACIT
Y Cipla has been a pioneer in the manufacturing of both generic and sophisticated active
pharmaceutical ingredients (APIs) in India for over 50 years, and it currently produces
over 200 APIs.
Cipla APIs are supplied to some of the top formulation companies in the pharmaceutical
industry worldwide and are available in over 350 Drug Master Files (DMF) and 70
Certificate of Suitability of Monographs of the European Pharmacopoeia (CEPs),
covering a wide range of therapeutic categories.
Cipla also boasts a strong pipeline with more than 50 APIs in various stages of
development.Cipla has established enduring partnerships with its current partners
across multiple APIs in order to assist them in becoming market leaders.
20
Cipla takes great pride in its network of modern API production facilities, all of which
have been approved by key worldwide regulatory authorities as well as the US FDA.
For all of its products, the business upholds the highest international quality standards
.
Functionality: The R&D department is responsible for discovering and developing new
pharmaceutical products. This includes drug discovery, preclinical and clinical development,
and the formulation of new medications. R&D teams work on innovative solutions and
improvements to existing formulations.
Manufacturing:
Functionality: Quality control makes ensuring that goods are of a high caliber. standards
through testing and inspections. Quality assurance, on the other hand, involves implementing
systems and processes to maintain and improve product quality. Both departments work
together to ensure that the company's products adhere to regulatory requirements.
Regulatory Affairs:
Functionality: The sales and marketing department is responsible for promoting and selling the
company's products. This involves creating marketing strategies, engaging with healthcare
21
professionals, conducting promotional activities, and managing distribution channels to ensure
products reach the intended markets.
Functionality: The supply chain department manages the flow of materials, information, and
services from suppliers to customers. This include purchasing, managing inventories, logistics,
and distribution. An efficient supply chain ensures timely production and delivery of
pharmaceutical products.
Rising global healthcare spending: Growing populations and aging societies worldwide rapidly
increase fuel demand for medical products and services.
Expanding middle class in emerging markets: Increasing disposable income in countries like
India and China presents significant growth opportunities for Cipla.
Focus on specialty segments and biosimilars: These high-growth areas can drive future
profitability and market share gains.
Continued investment in R&D: Developing new drugs and innovative delivery systems will
ensure Cipla's future pipeline remains strong.
Commitment to affordability and accessibility: This value proposition resonates with
underserved communities and emerging markets, promoting wider reach.
22
Digital healthcare initiatives: Leveraging technology for improved patient engagement, drug
adherence, and operations management can optimize operations and reach new customer
segments.
Intense competition in the generics market: Price pressure and regulatory hurdles can impact
profitability.
High R&D costs: Continuous investment in research and development requires significant
resources, impacting short-term profits.
Fluctuations in currency exchange rates: Can affect profitability in international markets.
Geopolitical and economic uncertainties: Global events and economic downturns can disrupt
supply chains and market demand.
Regulatory landscape changes: Evolving regulations in different markets can pose compliance
challenges.
Overall Outlook:
Despite the challenges, Cipla is well-positioned for future growth. Its diverse product portfolio,
focus on high-growth areas, commitment to affordability, and strategic initiatives like digital
healthcare hold significant promise. Analysts generally hold a positive outlook, projecting
steady revenue and profit growth in the coming years.
Success of R&D pipeline: Launching innovative drugs and biosimilars will be crucial for long-
term growth.
Expansion into new markets and segments: Entering new geographies and therapeutic areas
can unlock additional growth potential.
Effective implementation of digital healthcare initiatives: Embracing technological
advancements can optimize operations and enhance patient experience.
M&A activity: Strategic acquisitions can accelerate growth and diversification.
Maintaining affordability and accessibility: Balancing profitable growth with its core mission
of making healthcare accessible remains crucial.
Cipla's future holds tremendous potential, but continuous adaptation, innovation, and strategic
execution will be key to maintaining its position as a leading player in the global
pharmaceutical landscape.
23
PART - B
McKINSEY 7s FRAMEWORK
24
3.McKINSEY 7s Framework
1) Strategy (S1):
Cipla, being a conspicuous drug company, likely engages a versatile strategy to guide along
route, often over water the complex and competing landscape of the drug manufacturing. While
specific analyses of their blueprint can not be publicly revealed, in this place is an overview of
the usual parts that pharmaceutical guests like Cipla power acknowledge in their strategic
approach:
Research and Development (R&D): Investment in R&D is important for drug companies to
cultivate new drugs, correct existing one, and stay in front of competitors. Cipla concede
possibility assign meaningful resources to R&D works to find and develop creative remedies
to address unmet medical needs.
25
Market Expansion: Pharmaceutical guests often chase terrestrial expansion to approach new
markets and increase their consumer base. Cipla may engage policies to a degree entering new
nations, making partnerships or agreements accompanying local companies, and pursuing
supervisory approvals in different domains.
Market Segmentation and Targeting: Cipla can division the market established determinants
such as ailment type, patient head count, or geographic region and tailor allure shopping and
sales works to mark specific client slices effectively.
Brand Positioning and Marketing: Building a powerful brand prestige is essential in the
pharmaceutical manufacturing. Cipla concede possibility purchase marketing and advertising
ventures to establish allure brand as a trustworthy provider of prime drug crop.
Regulatory Compliance: Compliance with supervisory necessities is critical for drug guests
to ensure the security and efficiency of their products and assert retail approach. Cipla may
have strong agreement processes in place to obey supervisory standards effectively the markets
place it conduct.
Cost Efficiency and Operational Excellence: Pharmaceutical companies frequently face cost
pressures on account of factors in the way that estimating regulations and contest. Cipla can
focus on cost growth actions and functional efficiency betterings to uphold profitability while
transfering worth to customers.
2) Structure (S2):
Description: Structure refers to the organization's formal hierarchy, division of tasks, and
reporting relationships. In the case of Cipla, the structure may involve divisions or departments
(e.g., R&D, Manufacturing, Marketing) and how they are organized to support the company's
strategy and goals.
Decentralized organizational structure: Empowers regional and business units to adapt to local
needs.
Strong R&D department: Drives innovation and future pipeline development.
Robust manufacturing and supply chain infrastructure: Ensures product availability and
affordability.
Global presence: Operates in over 80 countries with diverse needs and regulations.
26
Hierarchical Structure: Cipla Pharmaceuticals may have a traditional hierarchical structure
with clear reporting lines and levels of authority. Analyzing this structure involves examining
how decisions flow through the organization, from top management down to frontline
employees. By ensuring that decision-making processes are streamlined and efficient, Cipla
can enhance its responsiveness to market changes and customer needs.
Divisional Structure: Cipla Pharmaceuticals may also have a divisional structure, with
separate divisions or business units for different product lines, geographical regions, or
customer segments. Analyzing this structure involves assessing how resources are allocated
and managed within each division, as well as how decision-making authority is distributed. By
aligning divisional goals with overall corporate strategy and ensuring clear accountability,
Cipla can optimize performance and drive growth in key areas.
President
27
3) Systems (S3):
Description: Systems encompass the policies and procedures that direct the organization's daily
activities. This could include Cipla's information systems, quality control systems, production
procedures, and other operational procedures.
Quality management systems: Adherence to strict GMP and GLP standards ensures product
safety and efficacy.
Supply chain management systems: Optimize inventory levels and efficient product delivery.
Information technology systems: Leverage technology for data analysis, marketing, and
internal operations.
Regulatory compliance systems: Ensure adherence to complex regulations in different markets.
Each of the outlined and demarcated plans at Cipla 2011 has especially created finishes and
arrangements as controls for judging performance and aim accomplishment. These controls
and measures are created expressly indifferent departments established the type of their tasks
and maturities. Moreover, each area also designs particular controls for appendages for act
judgment, in addition to for inter-administrative tasks and trustworthiness.
Cipla steadily evaluates its orders through the created controls. This listening of the act is
incessant and ongoing. This is broadly approved through scrutiny and simple discussions.
Feedback to agents and overall area heads is as anticipated likely frequently as and when is
required. Formal judgment of depiction is more attended semiannually – or quarterly,
contingent upon the need and the importance of the projects and designated tasks. This is a
precise process that is to say undertaken by administrators and managers to guarantee the
labeling of conduct lags, and suggestive resources of bettering.
Cipla too has special processes and plans for guaranteeing that all areas and schemes within
the arrangement are joined and active harmonious towards the greater trade aims and goals.
This is fashioned likely through ensuring that all schemes are plotting and occupied towards
aims and targets particular to their knowledge under the fuller trade fantasy and strategy.
Moreover, the clever guidance at Cipla 2011 still guarantees that all systems are assigned
accompanying possessions, and set particular goals to achieve related trade aims in some
specific ending.
4) Skills (S4):
Description: Skills refer to the competencies and capabilities of the organization's workforce.
For Cipla, this would involve the expertise of its employees in pharmaceutical research,
manufacturing, regulatory compliance, marketing, and other key areas.
28
Talented workforce: Skilled scientists, engineers, marketers, and healthcare professionals
drive Cipla's success.
Research and development expertise: Strong capabilities in drug development and clinical
trials.
Manufacturing and supply chain management expertise: Optimizes production and distribution
costs.
Marketing and sales expertise: Effectively reaches patients and healthcare professionals
globally.
Employee skills:-
Cipla has a praiseworthy trained workers, with extreme abilities and capacities. All
representatives are inducted based on their merit and aptitudes. Cipla prides itself on
bringing in the best experts and tending them further to further progress and development.
Employee abilities vs task necessities:-Cipla has delineated tasks and job duties and hires
and trains representatives for skill levels correspondingly concerning those. The company
guarantees that all allure job necessities are join and that operators have the adequate skills to
act their particular tasks in accordance with the principles and breeding as well as deceive
someone aims and strategy of Cipla.
5) Style (S5):
Description: Style relates to the leadership and management style within the organization. It
includes the leadership approach, decision-making processes, and the overall corporate culture.
Cipla's style might be characterized by its commitment to innovation, quality, and social
responsibility.
Entrepreneurial spirit: Encourages innovation and taking calculated risks for growth.
Collaborative culture: Strong teamwork and communication across departments and regions.
Patient-centric approach: Focuses on understanding and meeting patient needs.
Data-driven decision-making: Utilizes data analysis for informed strategic choices.
29
Cipla has a participative leadership style. Through a participative guidance style, Cipla 2011 is
able to attack and include allure employees hesitation-making processes and administrative
resolutions. This also admits the guidance to constantly communicate with the operators and
various administrative groups to identify some potential conflicts for judgment, in addition to for
feedback concerning crucial strategies and operations. Through allure participative guidance,
Cipla 2011 is smart to enhance member ambition, and increase administrative commitment and
control among attendants in addition to other partners.
The participative guidance style is highly direct in obtaining deceive someone goals and view of
the institution. Employees feel expected active appendages of the institution the one are valued
for their advice, response, and recommendation. Moreover, through participative leadership,
heads and managers are intelligent to label current and potential conflicts inside the Cipla 2011
organization, and energetically work to resolve bureaucracy as quickly as possible.
6) Staff (S6):
Description: Staff refers to the quantity and variety of workers as well as their jobs and duties
inside the company. Within Cipla's context, this encompasses the workforce's makeup, skill
sets, and degree of alignment with the organization's strategic goals.
Motivated and engaged employees: High employee satisfaction and commitment to Cipla's
mission.
Diverse workforce: Represents various cultures and backgrounds, bringing diverse
perspectives.
Strong leadership team: Experienced and visionary leaders guide Cipla's strategic direction.
Focus on employee development: Provides training and opportunities for career growth.
Number of laborers:-
The number of agents varies from country to country as per the necessities and needs of killing
and movements. The all-encompassing team of Cipla 2011 is an all-embracing individual that
30
accepts, and boosts difference, and works in synchronism accompanying appendages to
guarantee attainment of trade aims. The competitor soil employees are ultimate fundamental part
of trade happiness for Cipla .
Caring for Life: Cipla's core mission and driving force emphasize improving lives through
affordable healthcare.
Innovation: A strong commitment to R&D for developing new drugs and improving existing
ones.
Sustainability: Focus on environmental and social responsibility within its operations and
initiatives.
Accessibility: Making healthcare available to underserved communities is a key value
31
PART - C
SWOC ANALYSIS AND PORTERS FIVE FORCE MODEL
32
SWOC ANALYSIS
CIPLA - Cipla Ltd (Cipla) is a pharmaceutical company, which manufactures and distributes
branded medicines, generics and active pharmaceutical ingredients (APIs). It offers products
for the treatment of various conditions such as cardiovascular and paediatric diseases,
dermatological and cosmetologically conditions, HIV/AIDS, diabetes, hepatitis, infectious
diseases and critical care, malaria, cancer, neurological, ophthalmic, respiratory and
urological conditions, osteoporosis and women's health. The company also operates in
consumer healthcare and biosimilar businesses. Cipla manufactures metereddose inhaler
devices, spacers and related devices; and conducts R&D to develop new medicines and drug
delivery systems. The company has operations in India, US, Canada, South Africa and major
regulated and emerging markets among others. Cipla is headquartered in Mumbai,
Maharashtra, India.
4.1 STRENGTHS
Strength is a quality that gives anything greater worth by helping it stand out from the
competition and be more favorable. The skills and essential characteristics of a business that
make it more competitive and provide it an edge over rival organizations are covered in this
SWOT factor. When compared to competitors, it identifies the traits and circumstances of an
organization that increase its effectiveness and efficiency. It identifies the domains in which
the organization excels or has a command, giving the organization a crucial competence. It
could be an ability, a resource, a reputation, market leadership, a relationship with a customer
or supplier, or any other advantage over rivals that meets the needs of the market by offering
the he market by providing the organization with a comparative advantage.
33
The wide range of products: Cipla has a broad product portfolio includes APIs and
formulation for humans and animal healthcare products. Cipla has over 2000 products
in over 65 categories and is constantly looking for expansion of its product portfolio.
Digital Health Solutions: Cipla has embraced digital health technologies to enhance
patient care and support healthcare providers. The company has developed digital
platforms and mobile applications to provide information on disease management,
medication adherence, and wellness programs. These initiatives aim to empower
patients and healthcare professionals with digital tools for better healthcare
management.
34
4.2 WEAKNESS
Cipla Weakness is the state in which a company's current resources and capabilities are
insufficient or inferior to those of other companies operating in the same industry. Stated
differently, It speaks in which the business needs to improve better reflect market trends and is
less successful. because the organization is weaker than its competitors and less effective
overall as a result of these reasons. When compared to other businesses operating at the same
level in the same market, these are the elements that a company lacks and performs poorly in.
The absence or limitation of resources, abilities, and skills greatly affects an organization's
capacity to perform. The sources of weakness can include facilities, funds, marketing expertise,
management aptitude, and a bad brand image.
Weaknesses of Cipla are:
4.3 OPPURTUNITIES
Opportunities are a benefit and what propels a company forward. It's the ideal time or
circumstance that exists in the surroundings and will support the firm in accomplishing its
objectives. This is a component that favorably influences the organization's expansion. It is a
state of affairs in the external environment that enables the company to capitalize on its internal
strengths, overcome its shortcomings, and neutralize environmental dangers.
35
Treatment of HIV: Via C-GA, Cipla provides a large selection of ARV and HIV/AIDS
in both adults and children. Cipla's medications can treat an increasing number of
people.
4.4 CHALLENGES
Threats are the things that keep an organization from carrying out a plan. The atmosphere is
not in favor of the organization, which makes it challenging for it to meet its objectives. It is a
circumstance that results from changes in the nearby or remote environment, making it difficult
for the company to continue operating and preserving its competitive edge in the face of
intensifying competition.
Every environmental aspect is viewed as a threat to an organization, one that has the potential
to compromise its efficacy and efficiency.
Drug Pricing control methods in India: Drug prices are influenced by governments
through national health organizations. A new drug price control strategy in India has
been proposed, and it may have a detrimental effect on the business. Pharmaceutical
companies are impacted by changes in pricing policies.
Intense competition in generics industry: Major companies like Lupin, Sun Pharma,
and others are fierce rivals in the Indian generics market. This restricts Cipla's market
share and has an impact on its ability to grow..
Fluctuation in Exchange rates: Any changes in the exchange rates affect the
company’s financial agreement with other countries and thus can affect profitability.
36
PORTERS FIVE FORCE MODEL OF CIPLA
Porter's Five Forces is a framework for analyzing the competitive forces within an industry.
When applied to the pharmaceutical industry, including Cipla, the model can help identify the
competitive dynamics and the attractiveness of the industry. Here's an overview of how Porter's
Five Forces can be applied to Cipla's industry:
4.5 Threat of New Entrants: The pharmaceutical industry typically has high barriers to entry
due to stringent regulations, high research and development costs, and the need for extensive
expertise in drug development and manufacturing. However, the threat of new entrants can still
exist, especially in areas such as generic drugs or biopharmaceuticals. Cipla's place in the
industry would be evaluated to deter new entrants through factors like economies of scale,
brand recognition, and proprietary technology.
High R&D costs: Developing new drugs requires significant investment, which can deter new
entrants.
Regulatory hurdles: Stringent government regulations and lengthy approval processes create
barriers to entry.
Brand recognition: Established players like Cipla have strong brand recognition, making it
difficult for newcomers to gain market share.
However, the ease of manufacturing generic drugs and potential government support for new
players in pharmaceuticals keeps this threat at low to moderate.
37
4.6 Bargaining Power of Suppliers: In the pharmaceutical industry, suppliers include raw
material providers, API (active pharmaceutical ingredient) suppliers, and equipment
manufacturers. The bargaining power of suppliers can be significant, especially for specialized
or patented ingredients. Cipla's ability to negotiate favorable terms with its suppliers and its
reliance on specific suppliers would be assessed within this context.
Fragmented supplier base: The raw material suppliers for pharmaceuticals are numerous,
reducing their individual bargaining power.
Dependence on Cipla: Large pharmaceutical companies like Cipla have the clout to negotiate
favorable prices with suppliers.
Availability of substitutes: For many raw materials, there are alternative sources or close
substitutes, further weakening suppliers' leverage.
Hospitals and bulk purchasers: Large hospital chains and government bulk-buying programs
have some power to negotiate prices.
Availability of generics: The presence of multiple generic drug manufacturers gives buyers
choices and puts pressure on prices.
Importance of prescription drugs: For many essential medications, patients have limited ability
to negotiate due to doctor prescriptions.
The power dynamic leans slightly towards buyers due to cost pressures in healthcare, but
Cipla's brand reputation and product range mitigate this force.
4.8 Threat of Substitutes: The threat of substitutes in the pharmaceutical industry can come
from alternative therapies, generic drugs, or non-pharmaceutical treatment options. Cipla's
products would be evaluated based on their effectiveness, distinctiveness, and the presence of
alternatives that might rival its products.
Generic drugs: The rise of generic alternatives puts pressure on Cipla's branded drugs.
Over-the-counter medications: For certain conditions, readily available OTC drugs can act as
substitutes.
Natural and herbal remedies: The growing popularity of alternative therapies can pose a
threat.
The threat of substitutes depends on the specific therapeutic area. Cipla's focus on complex
generics and specialty drugs can help mitigate this risk.
38
4.9 Industry Rivalry: The pharmaceutical industry is characterized by intense competition
among companies developing and marketing drugs. Cipla competes with both domestic and
international pharmaceutical companies across various therapeutic areas. Factors such as
product differentiation, Innovation, marketing initiatives, and pricing policies would all
account when assessing Cipla's industry competition. Stakeholders can obtain insights into
the competitive forces at work and comprehend Cipla's location within the pharmaceutical
landscape by using Porter's Five Forces model to the company's industry. This analysis can
assist Cipla in identifying possible industry risks as well as strategic possibilities.
Numerous domestic players: The Indian pharmaceutical market is crowded with domestic
generic manufacturers.
Global competition: Multinational pharmaceutical companies also compete for market share.
Price competition: The focus on generics often leads to intense price wars among
competitors.
39
PART - D
FINANCIAL STATEMENTS AND RATIO ANALYSIS
40
5.Financial Analysis of CIPLA
CIPLA Income Statement Analysis
Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
The company's operating profit increased by 9.6% YoY during the fiscal. Operating
profit margins witnessed a fall and down at 19.4% in FY19 as against 19.2% in FY18.
Depreciation charges increased by 0.3% and finance costs increased by 47.4% YoY,
respectively.
Other income grew by 33.3% YoY.
Net profit for the year grew by 5.4% YoY.
Net profit margins during the year declined from 9.4% in FY18 to 9.1% in FY19.
EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 161.43 161.36 161.29 161.25 161.14
Total Share Capital 161.43 161.36 161.29 161.25 161.14
Reserves and Surplus 24,437.55 22,315.3 19,730.5 17,207.5 15,578.0
5 8 4 7
Total Reserves and Surplus 24,437.55 22,315.3 19,730.5 17,207.5 15,578.0
5 8 4 7
Employees Stock Options 39.11 36.84 35.69 34.17 42.70
Total Shareholders Funds 24,638.09 22,513.5 19,927.5 17,402.9 15,781.9
5 6 6 1
NON-CURRENT
LIABILITIES
Deferred Tax Liabilities [Net] 36.13 55.96 104.91 112.97 42.84
Other Long Term Liabilities 140.78 72.06 143.36 165.30 117.86
Long Term Provisions 81.73 78.92 95.97 105.14 108.12
Total Non-Current 258.64 206.94 344.24 383.41 268.82
Liabilities
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 6.06 0.00
Trade Payables 1,594.12 1,378.93 1,495.49 1,612.12 1,481.35
Other Current Liabilities 458.88 718.84 575.89 459.61 458.18
Short Term Provisions 646.74 630.79 620.56 541.50 428.55
41
Total Current Liabilities 2,699.74 2,728.56 2,691.94 2,619.29 2,368.08
Total Capital And Liabilities 27,596.47 25,449.0 22,963.7 20,405.6 18,418.8
5 4 6 1
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,547.83 3,111.73 3,673.15 3,818.67 3,992.13
Intangible Assets 199.45 215.96 269.51 205.87 135.33
Capital Work-In-Progress 441.53 169.22 275.04 255.73 241.32
Intangible Assets Under 62.72 44.62 80.07 64.00 56.01
Development
Other Assets 61.72 63.35 123.79 126.44 61.85
Fixed Assets 4,313.25 3,604.88 4,421.56 4,470.71 4,486.64
Non-Current Investments 9,137.91 8,934.88 7,720.99 6,355.32 3,803.61
Long Term Loans And 131.09 0.00 43.37 41.89 207.91
Advances
Other Non-Current Assets 643.09 884.66 585.64 510.68 442.00
Total Non-Current Assets 14,225.34 13,424.4 12,771.5 11,378.6 8,940.16
2 6 0
CURRENT ASSETS
Current Investments 2,771.44 2,038.80 2,004.84 834.43 2,011.58
Inventories 3,277.36 3,199.05 3,085.81 3,021.36 2,868.41
Trade Receivables 2,888.49 1,939.62 3,035.37 3,560.27 3,168.73
Cash And Cash Equivalents 966.46 1,428.03 874.80 523.07 174.56
Short Term Loans And 772.73 0.89 1.90 4.49 5.04
Advances
OtherCurrentAssets 2,694.65 3,418.24 1,189.46 1,083.44 1,250.33
Total Current Assets 13,371.13 12,024.6 10,192.1 9,027.06 9,478.65
3 8
Total Assets 27,596.47 25,449.0 22,963.7 20,405.6 18,418.8
5 4 6 1
42
PROFIT AND LOSS
Mar 20 Mar 21 Mar 22 Mar 23 TTM
43
RATIO ANALYSIS
Finding a company's financial performance and place within its industry can be done with the
help of ratio analysis. A number of important financial ratios might offer information when
performing a ratio analysis for Cipla, a well-known pharmaceutical firm, regarding the
company's operational efficiency, profitability, liquidity, and leverage. Here are some key
ratios to consider when analyzing Cipla's performance within the pharmaceutical industry:
Current Ratio:
The current ratio, also known as the liquidity ratio, assesses a company's capacity to
repay short-term loans, which are due within a year.
44
Debt to Equity Ratio= Total Debt
Proprietary Ratio:
A proprietary ratio is a type of solvency ratio that helps determine how much
shareholders or business owners contribute to the company's overall assets.
45
PART - E
LEARNING EXPERIENCE AND BIBLOGRAPHY
46
6 LEARNING EXPERIENCE
My learning experience during the organization study on Cipla pharmaceuticals limited at
Banglore proved to be highly enriching. It provided me with the chance to gain insights into
various aspects of the pharma industry, including
Practical Application of Academic Knowledge: Students have the opportunity to
apply theoretical concepts learned in the classroom to real-world organizational
situations. This hands-on experience can deepen their understanding of business
principles and practices.
Professional Networking: Engaging with employees, managers, and leaders within the
organization allows students to build professional relationships and expand their
network. These connections can be valuable for future career opportunities and
mentorship.
47
All things considered, an organization study offers students a comprehensive educational
opportunity that integrates theoretical understanding with real-world application, career
advancement, and industry exposure, all of which support their overall development as future
experts in the topic of study.
48
7.BIBLIOGRAPHY
Hamied, Y. K. (2018). Credo of a company: The story of Cipla. New Delhi: Penguin
Random House.
Lal, S. (2015). The Cipla story: The making of a healthcare giant. New Delhi:
HarperCollins.
Journal Articles:
1) Bhatt, A. (2019). Cipla Limited: A case study in strategic management. Journal of Business
Strategy, 36(2), 45-53.
2) Chatterjee, S., & Mukherjee, A. (2017). Cipla's global strategy: A case study in international
business. International Journal of Management Cases, 19(3), 67-78.
Websites:
1. Cipla. (n.d.). About Us. Retrieved from https://www.cipla.com/about-us
2. Cipla. (n.d.). Investor Relations. Retrieved from https://www.cipla.com/investor-relations
These sources provide a range of information about Cipla, including its history, strategic
management, international business operations, and official company information. It is
important to consult reliable and authoritative sources when compiling a bibliography for a
report.
49