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We Austro Labs are one of the leading exporters of premium quality Ayurvedic,
Cosmetics, Food supplements and Allopathic Products. With Our Immense experience in
healthcare industry and professional management, we have been able to cater to the
requirements of large clientele across the world.
Our team comprises of immensely experienced marketing professionals, who work in
close co-ordination with our quality control department to lead us to the path of success.
All our Cosmetics and Ayurvedic products are highly efficient in nature & do not contain
any side effects. Moreover, our Allopathic products are in accordance to the international
standards and have been competitively priced.
We are equipped with sound infrastructure, required workforce, thorough knowledge &
immense experience of the pharma industry, which in turn has enabled us to come up
with the best possible range in all of our four categories.
1.2
For the year 2009, Austro Labs Limited has a clear strategy to harness its growth
potential in emerging markets, rebuild the US business through a series of actions on
products and facilities; actualize significant revenue upsides through First-to-File and
Day-1 launches strengthen the product / therapeutic pipeline and look for M&A
opportunities, complementing our geographic and therapeutic basket. Our focus will be to
resolve regulatory compliance issues and continue to strengthen cGMP across all
locations. Besides this, Austro Labs Limited and Daiichi Sankyo will identify key
projects to realize synergies at both the front and back ends of the business, although,
there will be much to contend with, considering that the industry is projected to grow at
around 5% in 2009.
Austro Labs Limited is focused on increasing the momentum in the generics business in
its key markets through organic and inorganic growth routes. The Company continues to
evaluate acquisition opportunities in India, emerging and developed markets to strengthen
its business and competitiveness. Growth is well spread across geographies with focus on
emerging markets. Austro Labs Limited has forayed into new specialty therapeutic
segments like Bio-similars, Oncology, Peptides and Limuses. These new growth areas
will add significant depth to the existing product pipeline.
The Indian pharmaceutical industry is at the center stage in the global
Pharmaceutical arena and Austro Labs Limited is at the forefront in delivering the India
centric advantages to the advanced and developing countries of the world.
The Endeavour at Austro Labs Limited is to provide value. Value through pioneering
work, research & development and quality pharmaceuticals across the globe. Austro Labs
Limited keeps alive this Endeavour as it steps into the new millennium, and reaffirms its
commitment to the environment, the people and a healthier future.
Austro Labs Limited has excelled in its endeavor in drug research and manufacture,
providing quality products not only at par with global markets but also facilitating the
same.
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Austro Labs Limited are committed to provide quality generics at affordable prices to the
patients worldwide with a view to help bring down the healthcare costs. Companies
grow from strength to strength in the global generic space in the years to come. While the
company continues to enhance the momentum of generics business in over 125 markets,
they are also accelerating drug discovery program through collaborations and alliances.
Austro Labs Limited is driven by its vision to achieve significant business in proprietary
prescription products by 2016 with a strong presence in developed markets.
1.3
Mission
Enriching lives globally, with quality and affordable pharmaceuticals.
Vision and Values
Achieving customer satisfaction is fundamental to our business.
Provide products and services of the highest quality.
Practice dignity and equity in our relationship and provide opportunities for our people to
realize their full potential.
Ensure profitable growth and enhance wealth of the shareholders.
Foster mutually beneficial relations with all our business partners.
Manage our operations with high concern for safety and environment.
Be responsible corporate citizen.
1.4
1.5
1.51
In terms of manpower
Austro Labs current manpower is approximately around 300 and every year new
recruitments are taking place and each year the manpower is different. As on March
2014, Austro Labs has 249 employees.
1.52 In terms of Turnover:
Austro Labs has a turnover of Rs. 61,419 lacs in the financial year of 2014-2015.
1.6
Organization Structure
GM (WORKS)
HR
Dept.
QC
Dept.
PRODUCTION
Dept.
FINANCE
Dept.
WAREHOUSE
Dept.
PURCHASE
Dept.
VALIDATION
Dept.
QA
Dept.
INFOTECH
Dept.
b) Emerging markets portfolio achieves sales of Rs. 10,644 Mn, with a strong
growth of 20%; accounts for 56% of sales (USD 243 Mn).
c) Developed markets sales grew by 9% to Rs. 7,089 Mn (USD 162 Mn); accounts
for 38% of sales.
d) Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) for the
quarter are Rs. 1,440 Mn (8%). EBITDA for the year to date is Rs. 7,253 Mn
reflecting a margin to sales of 14%.
e) Gross margin on year to date basis maintained at 51% despite adverse economic
conditions this year.
f) Over the current year there has been a consistent improvement in Working Capital
management with a result that the Companys Gross Working Capital has reduced
by 5%.
The pharmaceutical industry is characterized by rapid advances in scientific knowledge
and ability to discover new drugs. The industry is therefore led by large manufacturers
and marketers of drugs investing heavily in research &development, having clinical
testing, marketing and distributing capabilities. Some of the main competitors of Austro
Labs Limited are:
a)
b)
c)
Glaxo smith Kline- It is one of the oldest pharma companies in India and with a
turnover of Rs. 1500 crore is one of the market leaders(market share) in India
with a share of 6.2 per cent Its main portfolios consists of anti- invectives,
dermatologicals and pain management drugs
d)
Chapter 2
SWOT ANALYSIS
STRENGTHS
WEAKNESS
a) Low cost
a) Fragmentation
c) Efficient technologies
c) Non-availability of major
d) Skilled manpower
intermediaries
d) Lack of experience
e) Liberalization
THREATS
OPPURTUNITIES
a) Aging of the world population
b) Growing incomes
c) Growing attention for health
d) New diagnoses and new social
diseases
away
g) New therapy approaches
h) New delivery systems
i) Spreading attitude for soft
medication (OTC drugs)
j) Spreading use of Generic Drugs
k) Globalization
l) Easier international trading
m) New markets are opening
STRENGTHS:
a) Low cost of production.
b) Large pool of installed capacities
c) Efficient technologies for large number of Generics.
d) Large pool of skilled technical manpower.
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Chapter 3
Data Analysis and Presentation
Marketing
a) Marketing is the performance of business activities that direct the flow of goods
and services from producers to consumers."
b) Dr. Marshall says What we have is more strategic. Now it says marketing is
really something that makes the organization run."
c) The impetus to examine the official definition, with an eye on possibly rewriting
it, came from AMA CEO Dennis Dunlap. Some members had suggested it was
time for update. Also, in the late '90s and several industries thought leaders had
noted the dramatic changes underway in marketing.
In Austro Labs Limited
The companys advanced product development and manufacturing capabilities, combined
with a global sale and marketing network, make Austro Labs Limited an attractive
business partner. A key part of Austro Labs Limited business strategy is to collaborate
with partners with complementary skills a mutually beneficial strategy for both parties.
Sales and Marketing
Austro Labs Limited has set itself apart in the marketplace through the rapid expansion of
its product line and its willingness to emulate complex drug formulations. Austro Labs
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Limited commitment to quickly expanding the breadth and depth of its product line has
been a key to its success in the marketplace.
To expand product lines with minimum investment, Austro Labs Limited 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 Austro Labs
Limited's manufacturing capabilities and expertise.
Austro Labs Limited has a commercial advantage as many of the high-profit branded
drugs with expiring patents over the next few years are in the categories where Austro
Labs Limited has proven expertise - anti-infective, gastrointestinal, cardiovascular and
analgesics.
Austro Labs Limited has a turnkey marketing group that works with other pharmaceutical
companies to co-market and co-promote a variety of chemicals and products. As a
marketing partner, Austro Labs Limited is able to meet the marketing needs of companies
while they themselves focus their efforts on a drug's development, manufacturing,
distribution and sales.
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
Austro Labs Limited.
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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 is couple of key areas that the
department is looking to introduce into its ever-expanding service offerings.
Human Resource Management
Introduction
a) HRM is concerned with the human beings in an organization. It reflects a new
Philosophy, a new out look, approach and strategy, which views an
organizations man power, has its resources and assets.
b) HRM is the managerial function which facilities the effective utilization of
people (manpower) in achieving the organizational and individual goals.
c) HRM is the management function that helps the mangers to recruit, select,
train and develop the organizational members for the purpose of achieving the
stated organizational goals.
d) HRM is a comprehensive managerial function, which is people, oriented, task
oriented, development oriented, future oriented, globally oriented and is a
continuous staff functions which is challenging.
e) HRM performs managerial and operative functions to effectively utilize the
available human resources by developing their competencies in tune with
organizational requirements.
f) HRM is the management of employees skills, knowledge, abilities, talents,
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primarily dependent on rich global talent pool. Organization responds to changing times
and develops the continuing agility required to remain successful. To achieve this,
company work hard to ensure that workforce is enabled, enriched and energised. Values
have been the driving force that sustains efforts. These are reflected in the principles of
Trustworthiness, Customer Responsiveness, People Development, Performance Focus
and Entrepreneurial Drive espoused throughout the organization
Experienced and capable people joined the organisation, promising talent within the
Company was put through a planned development programme called LEAD. These
initiatives are designed to further strengthen our core operations and position the
Company on a stronger footing while experienced and capable people joined the
organisation, promising talent within the Company was put through a planned
development.
Other development programs are
Fun@Work,
Opportunities
The global spread of Austro Labs Limited and the blazing growth in business provides
ample opportunities for employees to build careers in various fields. Opportunities have
never been a constraint for the deserving. The company believes in employee growth that
goes beyond vertical movements and change in designations. Potential and performance
are the pillars of career progression at Austro Labs Limited. A robust development
process supports this. Managers will generally have the opportunity to live and work in
different countries; such international experience will help them better understand our
complex business and grow both personally and professionally.
Salary and Benefits
Salaries and other benefits in Austro Labs Limited are comparable with the best in the
industry and one can expect to be rewarded highly if the performance is consistently
outstanding.
Group Life Insurance, Medical Insurance and Pension plans are a few examples of the
benefits we provide to our employees and their dependents with adequate financial
protection on long term basis.
Stock ownership
The ownership in business is fundamental to personal progression, company
encourage you to take ownership of your investment stock ownership is a part
of the compensation for managers early in their career at Austro Labs Limited
you will see the business results straight in your pay slip.
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Plate type Ultra Filtration were added as incremental safeguards, at the Toansa API
facility.
Health
Company always strives to make a meaningful impact on the quality of their lives by
bringing preventive, promotive and curative healthcare services to their doorstep. Nearly
three decades ago in 1979, Austro Labs Limited started its health care initiatives in
certain identified rural areas of Punjab. As the reach of the program grew, the Austro
Labs Limited Community Health Care Society (RCHS) was established in 1994. A novel
idea of providing mobile health care outreach service for the poor and underprivileged
was initiated. The program today benefits nearly 2 lakh people in 77 rural and urban slum
areas in Punjab, Haryana, Himachal Pradesh, Madhya Pradesh and Delhi. Today, six well
equipped mobile health care vans with teams of medics and paramedics are actively
engaged in the delivery of health care to our target population in these states. The issues
addressed include maternal-child health, family planning, reproductive health, adolescent
health, health education and AIDS awareness.
Safety
It is constant endeavour to scale up and better safety practices. A number of initiatives
were undertaken to enhance workplace safety. The emergency preparedness was ensured
through regular tabletop exercises and mock drills at all our manufacturing facilities and
R&D centres. At Toansa manufacturing facility, the 'Fire and Safety Risk Assessment' and
the 'Hazardous Area Classification' was reviewed by third party specialists. The National
Safety Council also conducted external safety audits at Toansa and Mohali. A
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is used by most,
management, creditors, Investors and Debtors to evaluate about the past performance and
current position in order to predict future performance and position of the firm
Interested group in ratio analysis
Users of the financial ratio analysis are many they are concerned with the economic
situation of the firm and predicting its future course basing on which decisions are taken.
The major groups of users are:
Management
Management can get an overall view of the financial operations and conditions of the
company, which enables them to plan and control the company's activities more
effectively. They are able to spot weakness of the company's operations and can take
correct action. Further more, it tends to restrain management, as they are under pressure
to maintain a favorable financial position.
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Investors
Investors are concerned with the safety of their investment and the ability of the company
to earn profit and in turn the dividend they earn on their investment. The Investor forms
their own opinion as to the soundness of increasing in a company. One way the investor
from their opinion of the companys earning capacity is by computing earning per share.
Creditors
Creditors are interested in the company's ability to meet its financial obligations. Those
who have lent. the money for short period are more interested in the company ability to
repay the debt as and when it becomes due. In other words, they are interested in the
liquid position of the company, which can be broadly measured by computing current
ratio and quick ratio.
The long-term creditors are not only interested in company's ability to repay but also in
the ability of the company to realize profit on the capital employed.
A creditor will be interested in ascertaining whether the company can employ the funds
loaned to it in such a way that it will able to meet current interest obligation and repay the
loan when it falls due. If a company earn less than what is paid in the form of interest, it
is not safe to lend money to the company.
Labours
Labour has an interest in the operating results and the financial strength of a company.
The remuneration of the worker must be generated from the company revenues: Thus,
the workers' wages, to a great extent, depend up on the success of the firm. Frequently,
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labour unions use the information presented in the financial statement as a basic for their
demand for increase in wages. The past operating performance of the firm, as well as its
current financial position, is often studied to measure the ability of the Firm to meet new
wage commitments.
Various accounting ratios can be classified as follows
A) Traditional classification or statement ratio
Traditional classification or classification according to the statements from which these
ratios are calculated is as follows:
g) Balance sheet or position statement ratios:
Balance ratios deal with the relationship between two balance sheet items,
example; the ratio of current assets to current liabilities or the ratio of proprietors
funds to fixed assets. Both the items must, however, pertain to the same balance
sheet. The various balance sheet ratios have been named in the chart classifying
statement ratios.
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classified as primary Ratios and secondary Ratios. The primary Ratio is one, which is of
the prime importance to a concern; Return on capital employed is named as primary
Ratio. The other Ratios e.g. the relationship of operating profit to sales or the relationship
of sales to total assets of the firm.
1) Sales turn over
Year
Amount(cr)
2010
2011
2012
2013
2014
3,865.86
3,727.05
4,218.98
4,344.39
4,676.21
Interpretation
a) In the above table, Amount (lacks) is the sales turnover achieved by
the company during the last five years.
b) The sales Turnover has increased from 3, 865.86 in the year 2010 to
4,676.21 in the year 08. When we compare the years 11, 12, 13 the
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year2014 has the least turnover i.e., 3,727.05 & 2014 has the highest
turnover 4,676.21
2) Current ratio
Year
2010
2011
2012
2013
2014
Ratio
1.31
0.92
0.96
0.83
1.16
Interpretation
a) In the above table, Current Ratio of the company for five years is depicted.
b) Current ratio=current assets/current liabilities
c) The Ideal Current Ratio is 2:1
d) If the company has ideal current ratio then it is assumed that its current assets are
sufficient to meet its current liabilities or its working capital is adequate.
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3) Quick ratio
Year
2010
2011
2012
2013
2014
Ratio
0.92
0.98
1.03
0.97
0.86
Interpretation
a) In the above table, Quick Ratio of the company for five years is
depicted
b) Quick ratio = liquid assets / current liabilities.
c) The Ideal Quick Ratio is assumed 1:1.
d) The higher of the ratio shows the better ability of the company to
discharge its short term liabilities
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2010
2011
2012
2013
2014
Ratio
0.05
0.43
1.35
1.38
1.05
Interpretation
a) In the above table, DebtEquity ratio of the company for five
years is depicted
b) DebtEquity ratio=External Equities or Debts/Internal Equities or Equities
c) The Ideal DebtEquity ratio is assumed 1:1
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Year
2010
2011
2012
2013
2014
Ratio
4.26
4.11
4.39
4.42
4.07
Interpretation
a) In the above table, Inventory Turnover Ratio of the company for
five years is depicted
b) Inventory (stock) Turnover Ratio = Net Sales/ Average Inventory.
c) Inventory turnover Ratio indicates the efficiency of the firm in producing and
selling its product. Or the inventory/ stock turnover indicates the efficiency of
the firms inventory management.
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d) From the above analysis of the stock turnover ratio, stock Turnover to
the business is less comparing to the previous year turn over turnover
of Austro labs Ltd. the present scenario is better utilization of stock in
to business.
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Year
2010
2011
2012
2013
2014
Ratio
16.9
4.9
14.39
7.51
2.07
Interpretation
a) In the above table, Gross profit margin of the company for five
years is depicted
b) Gross profit ratio= Gross profit /Net sales *100.
c) Higher the gross profitability ratio, higher the profit of business
d) From the above analysis of Gross Profit ratio, gross profit ratio is less
compared to the previous year
e) If the gross profit ratio is declining that may put the management in difficulty
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Year
2010
2011
2012
2013
2014
Ratio
13.81
5.78
9.07
14.33
-22.02
Interpretation
a) In the above table, Net profit margin of the company for five
years is depicted
b) Net Profit Ratio=Net Profit/Net sales*100
c) The Net profit ratio reveals the operational efficiency and in
efficiency of the management of business
d) From the above analysis of Net Profit ratio, net profit ratio is less
compared to the previous years
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Year
2010
2011
2012
2013
2014
EPS
28.38
5.69
10.21
16.56
-24.85
Interpretation
a. In the above table, EPS (Earnings per Share) of the company
during the five years depicted.
b. EPS = Earning after tax - Preference dividend / No. of equity
shares
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risks during and after the project providing justification/ validation to be taken to support
the system implementation at the same time.
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Chapter-4:
Summary & Conclusions
4.1 Findings
a) Austro Labs Limited recorded global sales of US$ 1,682 Mn in 2014, a 4%
growth over last year. Dosage Form sales constituted 93% of global sales during
the year as against 94% in 2013. Overseas markets constituted 80% of the total
sales of the Company
b) Consistent depreciation of the rupee in 2014 and large exposure of the Companys
business to the international markets has resulted in substantial foreign exchange
losses of Rs.10,856 Mn on forward covers and loans.
c) As a prudent measure to stay current in its accounting practices, the Company
adopted from October 1, 2014, Accounting Standard 30 on Financial
Instruments: Recognition and Measurement issued by the Institute of Chartered
Accountants of India. As a result, a net loss of
during the year basis the fair value measurement principle suggested in the
Standard.
d) The total number of employees of the Company and its subsidiaries as on
December 31, 2014 stood at 12,174.
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4.3 Suggestions
a) The company has incurred loss in current fiscal year; company has to make
future
plans
in
such
way
that
it
is
not
repeated.
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b) The company has expanded globally but the company should take care of the
domestic
market
also.
c) Investment plan has to be made keeping in mind the objective of the company.
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