Introduction

Introduction Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranked 8th amongst the global generic pharmaceutical companies, Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 49 countries, world-class manufacturing facilities in 11 countries and serves customers in over 125 countries. Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau word from the

names of its first owners Ranbir and Gurbax. Gurbax Singh had taken a loan from Bhai Mohan Singhs finance company Bhai Traders and Financiers Pvt. Ltd, but was unable to repay the money and transferred ownership of his company instead. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh. Bhai Mohan Singh started off by selling imported drugs. In 1956, India banned the import of finished pharma products and Ranbaxy opened a manufacturing plant in Okhla. That office is now with Bhai Mohan Singhs youngest son Analjit Singh (the promoter of the Max group of companies). After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. It was Parvinders vision that Ranbaxy invest in both R&D as well as manufacturing in order to survive. In 1973, Ranbaxy went in for a public issue to bankroll the (R&D) project and raised Rs 70 lakh from the market. And in 1977, Davinder Singh Brar joined Ranbaxy. The duoParvinder Singh and Brarare widely credited with turning around Ranbaxys fortunes. Parvinders son, Malvinder Mohan Singh took over as the CEO in 2006. Both sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008. In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical powerhouse. The combined entity now ranks among the top 15 pharmaceutical companies, globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it will emerge stronger in terms of its global reach and in its capabilities in drug development and manufacturing.

OBJECTIVES OF THE STUDY

To study the overview of Indian Pharmaceutical Market. To study the culture of Ranbaxy Lab. To find out the promotional strategies used by Ranbaxy lab. To find out various promotional strategies used by Ranbaxy lab. To study the competitors of Ranbaxy lab.

LIMITATIONS OF THE STUDY

The scope of study is limited to Ranbaxy Lab. There may be discrepancies in the actual data and the recorded data due to misinterpretations. Topic is vast but availability of information and timeline is short. Unable to meet the decision maker of the organization. Due to busy schedule of Doctors proper feedback is not possible.

ABOUT RANBAXY LAB.

Company History:
Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India and one of the worlds top 100 pharmaceutical companies. Ranbaxy is specialist in the preparation of generic drugs; Ranbaxy is also one of the world top 10 in that pharmaceutical category as well, with India's agreement to apply international patent law at the beginning of 2005, Ranbaxy has begun converting itself into a full-fledged researchbased company. A major part of this effort has been the establishment of the company's own research and development center, which has enabled the company to begin to enter the new chemical entities NCE) and novel drug delivery systems (NDDS) markets. In November 2008, Daiichi Sankyo completed the acquisition of 63.92% shares of Ranbaxy and in the process infused. The coming together of Ranbaxy and Daiichi Sankyo is a path-breaking confluence that, in one sweep, catapults the new,

empowered entity to the status of the world's 15th largest pharmaceutical Company. Individually, the two pharmaceutical giants are formidable - one, India's largest generics Company and the other, among the largest innovator companies in Japan. Ranbaxy is a truly global operation, producing its pharmaceutical preparations in manufacturing facilities in seven countries, supported by sales and marketing subsidiaries in 44 countries, reaching more than 100 countries throughout the world. The United States, which alone accounts for nearly half of all pharmaceutical sales in the world, is the company's largest international market, representing more than 40 percent of group sales. In Europe, the company's purchase of RPG (Aventis) S.A. makes it the largest generics producer in that market. The company is also a leading generics producer in the United Kingdom and Germany and elsewhere in Europe. European sales added 16 percent to the company's sales in 2004. Ranbaxy's other major markets include Brazil, Russia, and China, as well as India, which together added 26 percent to the group's sales. The company, which remains controlled and led by the founding Singh family, is listed on the National Stock Exchange of India in Mumbai.

Mission & vision

MISSION: To become a research based international pharmaceutical company.

VISION: Achieving customer satisfaction is fundamental to our business. Provide product and service of the highest quality. Practice dignity and equity in relationship and provide opportunity for people to realize their potential. Foster mutually beneficial relation, with all our business partner. Manage our operation with high concern for strategy and environment. Be a responsible corporate citizen.

VISION2012: Achieve significant business in proprietary prescription product by 2012 a strong presence in developed market. ASPIRATIONS 2012: Aspire to be a $5bn company. Become a top global generic player. Significant income from proprietary product.

RANBAXY LABORTITES

Type Founded Headquarters Key People

: : : :

Public 1961 Gurgaon, Haryana, India Tejandra Khanna, Chairman Brian Tempest, Vice Chairman Malvinder Singh, CEO

Industry Total revenue Global revenue Market cap Number of countries where it is present Countries where it has manufacturing units Revenue targeted by December 2007 Revenue targeted by December 2012 Employees Website

: : :

Pharmaceutical Rs. 5,188 crore Rs. 3,819 crore

: Rs. 15,077 crore : 49

Rs. 9,400 crore ($ 2 billion)

Rs. 23,520 crore ($ 5 billion)

: :

1100 in R&D www.ranbaxy.com

Recent Acquisitions & Alliances

Core competency

CORE VALUES
The core values in action that each manager of ranbaxy should subscribe are: Performance Focus Customer Responsiveness Entrepreneurial Drive Trustworthiness People Development

Life at Ranbaxy

A career at Ranbaxy means an opportunity for ample learning & growth. It offers avenues to work across the globe alongside the finest minds. The Company offers a challenging assignment, a world class working environment, professional management, competitive salaries, and stock options along with exceptional rewards. Group Life Insurance, Medical Insurance and Pension plans are a few examples of the benefits provided to the employees and their dependents. Stock ownership is a part of the compensation for the managers early in their career at Ranbaxy: business results reflect

straight away in their pay slip. Such opportunities, defined career paths and allocation of rewards provide motivation to the managers and employees to work in the best interests of the company. The flexibility to work across regions develops the skills of the employee and keeps their motivation level and learning curve high. It minimizes the need for the employee to look out for better avenues and as such builds a long lasting team and provides stability to the human resource capital. It also, to some extent, minimizes the Agency problem. By aligning the goals of the employees with that of the companies by giving them stock options is a further act in this direction. By allowing people to work across in Ranbaxys different functions (cross- functional teams), they are empowered to direct the value creation activities necessary to complete different projects.

Culture at Ranbaxy Opportunities have never being a constraint for the deserving. Ranbaxy believe in employee growth that goes beyond vertical movements and change in designations. Potential and performance are the pillars of career progression at Ranbaxy. A robust development process supports this. This shows that the culture at Ranbaxy is highly organic.

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

RANBAXY TOP 10 GENERICS

Business model

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

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.

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.

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.

Porters Five Forces Model of Competition

Competitors
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.

Top Competitors The following companies are the major competitors of Ranbaxy Laboratories Limited 1. Dr. Reddy's Laboratories Limited 2. Cipla

3. Nicholas Piramal India Ltd 4. GlaxoSmithKline Pharmaceuticals (India) Limited 5. Sun Pharmaceuticals Industries Ltd 6. Morepen Laboratories 7. Novartis India Limited 8. Kopran 9. IPCA Laboratories Ltd 10. Abbott India

AT HOME Ranbaxy Vs The Top Five Domestic Companies

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.

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 its policies,plays an important role in regulating pricing through the NPPA(National Pharmaceuticals Pricing Authority).

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.

MARKET SHARE

SURVEY ANALYSIS

Factors leading to growth

The key to Ranbaxys growth lay in the strategic decisions taken by its management from time to time. These strategies specific patterns of decisions and actions helped them achieve a competitive advantage. It exemplifies how symbiotic interdependencies can be managed and harnessed for the organizations benefit, by manipulating the specific and general environmental forces. Ranbaxys main strategy to manage its environmental forces seems to be through forming strategic alliances for various products and markets. The company has followed an r-strategy i.e. the strategy of entering a new environment early, and has thus reaped the benefits of being an early entrant in new markets.

Focus on Differentiated Products

The Company realized the importance of having a versatile product portfolio and thus is focusing on offering differentiated/value-added new products to the Indian masses. Ranbaxy has accelerated its pace to bring in new differentiated products in the Indian market to consolidate its leadership position. Ranbaxy is building upon the practice of Related Diversification entry into a new domain that is related in some way to an organizations domain to gain a competitive advantage. Examples Rank in Therapy Segments

Over the last few years, Ranbaxy has realigned its domestic operations to the needs of its target customer groups to have a more focused relationship with the doctors. This is aimed at providing customer specific quality services surpassing expectations. By forming relationship with doctors, demonstrates that Ranbaxy manages symbiotic resource interdependencies by the way of co-optation to manage its specific environment better.

Entering into the Oncology Segment

Since Ranbaxy did not have a significant presence in the Oncology segment, it entered into a strategic alliance with Zenotech Laboratories Ltd (Zenotech Labs) of Hyderabad, India, a company with a stronghold in this segment.

Strengthening Presence in the Asthma Segment

Ranbaxy has entered into an In-licensing agreement with Eurodrug Laboratories, the Netherlands-based Pharma company for the Asthma product Doxophylline a Novel Xanthine Bronchodilator. It is a strategic step in the direction of expanding the product portfolio through differentiated products for the Indian market, in the post-patent era. NCE Products India Focus

Recently a licensing agreement with a Swissbio-pharmaceutical company,Debiopharm, was signed for the New Chemical Entity (NCE) Drug in the Gastroenterology segment. Strengthening Product Basket in New Markets

In Canada, soon after the launch of its products in 2005, Ranbaxy is further expanding its product portfolio through in-licensing and has already emerged as a pioneer in this area. In mid 2006, Ranbaxy Pharmaceuticals Canada Inc (RPCI) and Janssen-Ortho Inc (JOI) entered into a licensing and supply agreement for a generic version of Risperidone compressed tablets, sold underRanbaxys label, Ran Risperidone. In-licensing agreement demonstrates that Ranbaxy makes use of the informal strategy of long term contracts to manage its resource interdependencies.

 R&D in Ranbaxy
NDDR A Separate Entity Decentralization Ranbaxy received an in-principle approval from the Board of Directors to de-merge its Drug Discovery Research (DDR) operation. This is a significant step in creating an independent pathway for DDR with dedicated resources and enhanced focus for longterm value building. Ranbaxy's state-of-the-art research infrastructure and scientific talent pool can be more effectively leveraged through an independent vehicle that better aligns assets with priorities to accelerate the company's drug discovery programs. The resulting operational freedom and flexibility will also help to open up new growth opportunities, while providing a platform for increased collaboration. By the way of decentralization of NDDR, Ranbaxy has promoted flexibility and responsiveness by allowing the research department to make on the spot decisions. Ranbaxy practices division of labor and specialization by allocating dedicated resources and creating scientific talent pool to DDR. The core competency of DDR is to discover new drugs.

Information Security and Information synergy

Since early 2006, Information Security (Infosec) has been a priority at Ranbaxy. Dr. Malvinder Mohan Singh, CEO and MD, Ranbaxy, took the lead to introduce. Operation Safed Sagar an initiative targeted at protecting the companys information assets. The program is focused on bringing behavioral change in people, sensitizing them to the importance of Information Security. A policy framework called the Information Security Management System (ISMS) has been introduced and Standard Operating Procedures (SOPs) laid down. A verification

and validation framework has been formulated in the ISMS to ensure sustenance of this initiative and eventual assimilation into the Ranbaxy way. The sensitization process started through a well-crafted communication program highlighting the risks and the appropriate behavior. Specific policies and procedures have been introduced. Through concerted efforts of various teams involved in the project, Ranbaxy employees have gradually understood the importance of Information Security as the rule of CIA, which is Confidentiality, Integrity and Availability. Ranbaxy By using Information security Ranbaxy has demonstrated that is uses IT To make critical information accessible to employees.

To facilitate beliefs norms and values of Ranbaxy.

To enhance motivational effects of cultural values.

Agreements and collaboration

Agreement with GSK Extended
Ranbaxy extended its strategic R&D alliance with GlaxoSmithKline (GSK), established in 2003, to provide Ranbaxy expanded drug development responsibilities and further financial opportunities. Ranbaxys role, which was to conduct the optimization chemistry required to progress drug leads to the stage of candidate selection, enlarges to advance clinical proof of concept. GSK thereafter will conduct further clinical development for each program and take resulting products through the regulatory approval process to final commercialization. By forming strategic alliance with its competitor, GSK, Ranbaxy has demonstrated that it uses strategic alliance to manage its competitive interdependencies.

Collaborating with DST

In another development, Ranbaxy entered into a collaborative agreement with the Department of Science & Technology (DST), Government of India, in the area of New Drug Discovery Research (NDDR). Under the agreement, DST will provide financial support by way of soft loans to Ranbaxy, for two NDDR programs in the therapeutic areas of Anti-infectives and Inflammation. On the basis of its strong fundamentals of innovation, entrepreneurship and aggressive marketing, Ranbaxy has carved a formidable position at home and a growing footprint in the global pharma market. The Company has displayed all the qualities of a nimble, agile and a dynamic organization that has made balanced and strategic alliances in the developed as well the emerging markets. The company has been able to tackle many

of the environmental uncertainties by way of collaboration, innovation and alliance.

Corporate Social Responsibility

An essential component of Ranbaxys corporate social responsibility is to take

care of the community.

Based on the theme Health for All, Ranbaxy set up Ranbaxy Rural

Development Trust in 1978; later re-christened as Ranbaxy Community Health

Care Society (RCHS) in 1994.

Provides a blend of curative, preventive and health promoting services amply

supported by laboratory services covering areas of maternal child health, family

planning, adolescent health, reproductive health and education.

AIDS awareness and counselling is also a priority component of the programme.

Established very meaningful and useful partnerships with the Government,

Medical Colleges, NGOs , Educational Institutions, Confederation of Indian

Industry (CII) and other likeminded agencies which has helped RCHS to broaden

its scope of services.

SWOT Analysis Strengths

1. Strategic Alliances GSK and Merck. 2. Differentiated Product Offering Generics, Branded Gx, Branded, OTC. Broad product portfolio imparting revenue stability. 3. Patents. 4. Strong presence in diverse geographies insulating business risks. 5. Aggressive Marketing. 6. Manufacturing Efficiencies Labour, Infrastructure and Global Quality Standards. 7. R&D capabilities skilled scientist pool, research across Generics as well as Innovative Research (NCE, NDDS, Niche FTF), and Process Chemistry Expertise. 8. Low cost innovation and high quality product flow. 9. Strong CSR programs contributing to a positive reputation in the industry.

Weaknesses

1. High Cost structure related to manufacturing, R&D and distribution. 2. Low level of strategic planning for future and also for technology forecasting. 3. Legal and Compliance issues with its manufacturing facilities at Dewas and Paonta Sahib in India. 4. Tarnishing reputation in the industry because of the above two issues. 5. Nepotism in the organization high degree of family interference and control.

6. Production of Duplicate drugs

Opportunities

1. Untapped high-growth emerging markets. 2. Ageing world population can act as a fundamental growth driver by providing increase in demand for medicines. 3. Possible leverage on Daiichi Sankhyos strengths. 4. New markets are opening. 5. Growing incomes. 6. Growing attention for health.

Threats

1. High entry barriers technology and resource intensive. 2. Productivity under pressure saturated developed markets. 3. Disruptive Technologies challenging established portfolios. 4. Increased regulations on Generic Drugs in developed countries like USA. 5. Unpredictable dollar rate fluctuation. 6. Competition From MNCs 7. High entry cost in newer markets. 8. Non tarrif barriers imposed by developed countries.

Suggestion

The company has incurred loss in current fiscal year; company has to make future plans in such a way that it is not repeated. The company has expanded globally but the company should take care of the domestic market also. Investment plan has to be made keeping in mind the objective of the company. Ranbaxy Laboratories Limited being a pharmaceutical company in India

Conclusion

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies Ranbaxy is having a wide range of good product

provide good facilities to their employees

Company has achieved almost its desire goals with his hard work and unique

ideas

Bibliography BOOKS:
Ranbaxy Lab. Ranbaxy Laboratory inc. BERSIN & ASSOCIATE MANAGING GLOBAL LEARNING

WEBSITES:

- www.google.com - www.wikipedia.com - www. Ranbaxylab.com