PRESENTATION STRATEGIC MANAGEMENT AT RANBAXY LABORATORIES Ltd GROUP:-”12”

1. PRESENTATION STRATEGIC MANAGEMENT AT RANBAXY LABORATORIES LtdGROUP:-”12” Prepared By: Ragini Patel Roll No.34 Rakesh Patel Roll No.35 Rimple Patel Roll No.36

2. RANBAXY LABORATRIES Type : Public Founded : 1961 Headquarters : Gurgaon, Haryana, India Key People : Tejandra Khanna, Chairman Brian Tempest, Vice Chairman Malvinder Singh, CEO Industry : Pharmaceutical Total revenue : Rs. 5,188 crore Global revenue : Rs. 3,819 crore Market cap : Rs. 15,077 crore

3. Number of countries : 49 where it is present Countries where it has : 8 manufacturing units Revenue targeted by : Rs. 9,400 crore ($ 2 billion) December 2007 Revenue targeted by : Rs. 23,520 crore ($ 5 billion) December 2012 Employees : 1100 in R&D Website : www.ranbaxy.com

4. BOARD OF DIRECTORS Mr. Tejandra Khanna Chairman Brian.W. Tempest Vice Chairman Mr. Malvinder Mohan Singh CEO & MD Mr. Atul Sobti President Dr. P.S Joshi Director Ramesh L. Adige Executive Director

5. Zenotech (India) • Krebs (India) • Jupiter Biosciences*(Ind.) • Cardinal Drugs (India) • Auto-injector Tech.(USA) • Terapia (Romania) • Be-Tabs (South Africa) • Allen (Italy) • Ethimed (Belgium) • Mundogen (Spain) Recent Acquisitions & Alliances * Subject to due diligence

6. PRODUCTS OFFERED ANTI – INFECTION G.I & NUTRITIONALS CVS & DIABETES CNS NS AID & RELATED ANTI ALLERGANTS ANTI RETROVIRALS UROLOGY OTHERS

7. MISSION: “To become research based International pharmaceutical company.” VALUES: Achieving customer satisfaction is fundamental to our business. Provide products & services of highest quality. Practice dignity and euity in relationship and provide opportunities to our people to realise their full potential. Ensure profitable Growth and enhance wealth of the shareholders. Fosters mutually beneficial relations with all our business partners. Manage our operations with high concern for safety and environment. Be a responsible corporate citizen

8. VISION 2012: “Achieve significance business in proprietary prescription products by 2012 with a strong presence in developed markets.” ASPIRATIONS 2012: • Significant income from proprietary products. • It also aspires to be amongst the Top 5 generic players. • Aspire to be $ 5 billion company.

9. SWOT ANALYSIS: STRENGTH: • Presence in 23 of the 27 EU countries. • Low cost of production. • Efficient technologies for large number of Generics. • Large pool of skilled technical manpower both in India and abroad. • Increasing liberalization of government policies. • Well developed industry with Strong manufacturing Base. • Rich Bio-diversity. • Non Infrenging products of Active Pharmaceuticals Ingredients. • High standards of purity.

10. Opportunities: • Growing incomes. • Growing attention for health. • New diagnoses and new social diseases. • New therapy approaches. • Spreading attitude for soft medication (OTC drugs) • Spreading use of Generic Drugs. • Globalization • Easier international trading. • New markets are opening. • Supply of generis drugs to developed markets • Contarct manufacturing arrangements with MNCs. • Niche player of global Pharmaceuticals and R&D

11. WEAKNESS: • Fragmentation of installed capacities. • Low technology level of Capital Goods of this section. • Non-availability of major intermediaries for bulk drugs. • Lack of experience to exploit efficiently the new patent regime. • Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world''s population). • Very low level of Biotechnology in India and also for New Drug Discovery Systems. • Low level of strategic planning for future and also for technology forecasting. • Production of spurious and low Quality drugs tarnishes the images of industry at home and abroad. • Production of Duplicate drugs • Absence of Association between Institutes and Industry..

12. THREATS: • Competition From MNCs • Containment of rising health-care cost. • High Cost of discovering new products and fewer discoveries. • Transformation of process patent to product patent. • Stricter registration procedures. • High entry cost in newer markets. • High cost of sales and marketing. • Non tarrif barriers imposed by developed countries. • Competition, particularly from generic products. • Switching over form process patent to product patent. • Drug price control order put unrealistic ceilings on product prices and profitability and preventa company from generating investible surplus

13. STRATEGIES Ranbaxy is focused on increasing the momentum in the generics business in its key markets through organic and inorganic growth routes. Growth is well spread across geographies with focus on emerging markets The Company continues to evaluate acquisition opportunities in India, emerging and developed markets to strengthen its business and competitiveness. Ranbaxy has forayed into high growth potential segments like Biologics, Oncology and injectables. These new growth areas will add significant depth to the existing product pipeline. The Globalization Strategy Growth Strategy Poised For Growth API Development And Production Dosage Form Development And Manufacturing Contract Manufacturing

14. Valueof Drugs going off patent 2006 - 11 • Significant patent expiries • through 2011 Key Drivers of Growth Strategies: $ Bn Source : IMS • Increasing genericisation France Spain Italy • Accelerating branded generics Russia South Africa India • Rationalizing Healthcare costs • - key priority for Governments

15. API Development and Production Ranbaxy can provide Active Pharmaceutical Ingredients (API) for companies that want to manufacture their own product or brand without incurring the time and costs associated with developing the API, eliminating this step from the overall manufacturing process. Key advantages of using Ranbaxy's vertically integrated system are:  Continuity of supply,Consistent quality of product ,Competitive costs,Flexibility and resources to respond to changing market dynamics Dosage Form Development and Manufacturing Ranbaxy's experience as a global manufacturer makes it an ideal partner to take on the complex process of solid or liquid dosage form development. Ranbaxy continually uses reverse engineering to improve upon its development and manufacturing processes and enhance yield, with a focus on achieving greater cost efficiencies. 

16. Contract Manufacturing To expand product lines with minimum investment, Ranbaxy provides turnkey manufacturing services, including API and dosage form development, to allow companies to focus on marketing and selling the product. This is an efficient way to diversify product lines and increase profit margins, taking advantage of Ranbaxy's manufacturing capabilities and expertise.

17. Marketing Strategies: Marketing Strategies is the department focused primarily on developing and executing strategies for the promotion and distribution of branded, generic and OTC products for RPI. One of the key tasks for the department is to identify opportunities in different markets and distribution channels and pursue those to developing and establish new relationships in the marketplace. Managed Care and Internet marketing are a couple of key areas that the department is looking to introduce into its ever-expanding service offerings.

18. Porter’s Five Forces Model of Competition Rivalry Among Competing Firms in Industry Threat of New Entrants Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products

19. Industry Competition: Pharmaceuticals Industry is one of the most competitive industrys in the country with as many as 10,000 different players fighting for the same price.The top players in the country has only 6% market share and top 5 players together has about 18% market share. Competitors of Ranbaxy in India are:- • Dr. REDDY‘s • CIPLA • NICHOLAS PIRAMAL • AUROBINDO PHARMA • GLAXO SMITH KLINE • LUPIN • SUN PHRMACEUTICALS • CADILLA HEALTHCARE • WOCKHARDT

20. Product Differentiation is one of the key factor for competitive advantage in the Ranbaxy. Entry barriers in pharma industry is low. Competitive Analysis:-

21. Bargaining Power of Suppleir:- Ranbaxy depends on certain organic chemicals .The chemical industry is again very competitive and fragmented.The chemicals used in the pharma industry are largely a commodity.The suppliers have very low bargaining power and the Ranbaxy can easily switch from their suppliers without incurring a very high cost.

22. Bargaining Power of Buyers:- In Ranbaxy or in any Pharma industries the buyers are scattered and they as such does not yeild power in the pricing of the products.However government with it’s policies,plays an important role in regulating pricing through the NPPA(National Pharmaceuticals Pricing Authority).

23. Barriers to Entry:- Pharmaceutical Industry is one of the most easily accessible industries for an entrepreneur in India.The capital requirement for an industries is very low so creating a regional distribution network is easy since the point of sales is restricted in this Industries in India.However creating the brandawareness franchisee amongst the doctor is the key for the long term survival.Also quality regulations by government may put some hindrance for establishing new manufacturing operations. In recent times the advances made in the field of Bio-technology can prove to be a threat to synthetic pharmaceutical industries.

24. Thank You