SICK REVIVAL DESK - KPEZDMC

Revival Plan

Team Visited:

1. Sajid Nawaz (Sick Units Recovery Specialist)

2. Adil Ali Sha (MTO Sick Unit Recovery)

Date of Visit: 19/04/2016

Business Name: Saaf Pharma

Nature of Business: Manufacturing

Sector: Pharma

Year of Establishment: 2010

Background:
Saaf Pharma was established in 2010 on plot no 45 in special economic zone Resalpur
Nowshera. the unit is constructed on 1 acre of plot having covering area 3000 sq ft. the unit is
producing Lifesaving drugs like Dextrose and S. Solution Bags. The unit was well equipped with
modern technology and skilled workforce. The installed capacity can produce Dextrose 100
million and S.Solution bags 240000 per annum. Due to fewer companies of its nature present in
SEZ Resalpur, Saaf Pharma captured most of demand of the market. Saaf pharma now having
finance and marketing issues and running under production. The company having no advertising
or marketing budget, now losing the customers. Since 2105 the company is running under
production and upto 30% produces of its capacity.
Major Clients:
Saaf Pharma is providing Medicine to;
1. Local market Nowshera
2. Government Hospitals
3. Afghanistan
Current Position:
The unit is now running underproduction and being sick from 2015. All the required machines
are installed in unit and in good working condition, infrastructure, sanitation and all other factors
are working properly. The unit was constructed on a one-acre plot having covering area of
almost 3000 sqft, civil work condition is reasonable having estimated market value of almost Rs.
4.0 Million. Water, electricity and other services are operational. All factors are operational, the
shortage of marketing knowledge and budget for proper marketing is the only reason for sickness
of the unit.

Documented Investigation:

1. Registration with Drug Authority

2. Audited Accounts
3. Customer Record (Available)

Reasons of Sickness:

After brief discussion with the owner of Saaf Pharma and from the analytical study of the of the unit
during visit, the following reasons were identified which leads the unit to sickness;

1. Decrease of product demand

2. Marketing negligence
3. Expensive production factors
4. Financial mismanagement

After detailed discussion with owner, the following investment needed to recover the unit;

Finance for Marketing & Advertisement: PKR 5,000,000/-

Marketing Training:
Business Management Training:

Recommendations for recovery:

Saaf Pharma is now considered as a sick unit, the production is under capacity. Following steps were
identified for the revival of unit after several meeting with representative;

1. Provision of finance for Marketing and advertisement (Potential Investor or Institution)

2. Marketing and Business management training to owner for sustainable recovery

Way forward

As discussed with the sponsors, KPEZDMC would support and guide the existing sponsors towards an
amicable solution towards revival of unit. The sponsor was asked to provide a business plan.
Pictures of the Units:

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