PRESENTATION STRATEGIC
MANAGEMENT AT
RANBAXY LABORATORIES Ltd
GROUP:-”12”
Prepared By:
Ragini Patel Roll No.34
Rakesh Patel Roll No.35
Rimple Patel Roll No.36
RANBAXY LABORATRIES
Type
Founded
Headquarters
Key People
:
:
:
:
Industry
Public
1961
Gurgaon, Haryana, India
Tejandra Khanna, Chairman
Brian Tempest, Vice Chairman
Malvinder Singh, CEO
: Pharmaceutical
Total revenue
Global revenue
Market cap
: Rs. 5,188 crore
: Rs. 3,819 crore
: Rs. 15,077 crore
Number of countries
where it is present
Countries where it has
manufacturing units
:
49
:
8
Revenue targeted by
December 2007
Revenue targeted by
December 2012
:
Rs. 9,400 crore ($ 2 billion)
:
Rs. 23,520 crore ($ 5 billion)
Employees
:
1100 in R&D
Website
:
www.ranbaxy.com
BOARD OF DIRECTORS
Mr. Tejandra Khanna
Brian.W. Tempest
Mr. Malvinder Mohan Singh
Mr. Atul Sobti
Dr. P.S Joshi
Ramesh L. Adige
Chairman
Vice Chairman
CEO & MD
President
Director
Executive Director
Recent Acquisitions & Alliances
Terapia (Romania)
Zenotech (India)
Be-Tabs (South Africa)
Krebs (India)
Allen (Italy)
Jupiter Biosciences*(Ind.)
Ethimed (Belgium)
Cardinal Drugs (India)
Mundogen (Spain)
Auto-injector Tech.(USA)
* Subject to due diligence
PRODUCTS OFFERED
 ANTI – INFECTION
 G.I & NUTRITIONALS
 CVS & DIABETES
 CNS
 NS AID & RELATED
 ANTI ALLERGANTS
 ANTI RETROVIRALS
 UROLOGY
 OTHERS
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
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.
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.
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High standards of purity.
Opportunities:
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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
WEAKNESS:
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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..
THREATS:
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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
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
Key Drivers of Growth Strategies:
Value of Drugs going off patent 2006 - 11
35
30
•
Significant patent expiries
25
20
15
through 2011
10
5
0
2006
2007
2008
2009
$ Bn
•
Increasing genericisation
Spain
Italy
Accelerating branded generics
Russia
•
2011
Source : IMS
France
•
2010
Rationalizing Healthcare costs
- key priority for Governments
South Africa
India
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 everexpanding service offerings.
Porter’s Five Forces
Model of Competition
Threat of
Threat of
New
New
Entrants
Entrants
Bargaining
Power of
Suppliers
Rivalry Among
Competing Firms
in Industry
Threat of
Substitute
Products
Bargaining
Power of
Buyers
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:
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Dr. REDDY‘s
CIPLA
NICHOLAS PIRAMAL
AUROBINDO PHARMA
GLAXO SMITH KLINE
LUPIN
SUN PHRMACEUTICALS
CADILLA HEALTHCARE
WOCKHARDT
Product Differentiation is one of the key factor for
competitive advantage in the Ranbaxy.
Entry barriers in pharma industry is low.
Competitive Analysis:20000
18000
16000
14000
12000
Turnover
PBT
PAT
Market cap
10000
8000
6000
4000
2000
0
Ranbaxy
GSK
Reddy's
Cipla
Nicholas
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 it’s 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 Biotechnology can prove to be a threat to synthetic
pharmaceutical industries.
Thank You