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Export Management Project Economics

A study Wanbury Ltd (Export oriented company specializing in API- Active pharmaceutical ingredient) Name- Somesh Chandran Class- TYBA Subject - Economics Division- B Roll No. - 3381 E mail

This is to certify that Mr.Somesh Chandran Class TYBA- Division B has completed the project under the guidance of his class teacher- Miss Varsha Malwade.

I hereby confirm that the following work is my own work and is authentic. Any similarities observed in the following work are merely coincidental. The following draft is my final draft.



I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

Deepest thanks to my class teacher Mrs.Varsha Malwade for guiding me during the course of completing this project and also for correcting the rough draft with affection and care.

I would also like to express gratitude to Mr.Shreyan Maralur-Manager(Strategy) and Mr.Anand Dhoka ( Deputy General Manager-Commercial) for their guidance as well as for providing necessary information regarding the project.

1. Introduction.5 2. Products..6 3. API overview..7 4. Types of markets..10 5. Exim policies...11 6. Marketing strategy...12 7 Pricing strategy 15 8. External and internal challenges16 9. Financial achievements..22 10. Market share.23 11 Increase in exports.24 12. Methodology..25 13. Expansion27 14. Balance sheet.28 14.Conclusion..29 15.Bibliography30


About WanburyWanbury Limited came into existence with the merger of the two companies WANDER and PEARL ORGANICS: Wander an internationally known ethical branded formulations marketing company, founded in 1865 by Dr. George Wander in Berne, Switzerland with considerable presence in the Indian market. In 1990 a company was established as Pearl Distributors Pvt Ltd. The company went public and was renamed as Pearl Organics. It was an active bulk drug company with major presence in the international market. In 2004 the two companies amalgamated. The two entities are now functioning as the independent business units of Wanbury Ltd., providing value to its customers and shareholders. In 2006 Wanbury became the worlds largest producer of Metformin with production of 4500 metric tonnes In 2007 Doctors organic chemicals merged with Wanbury. In 2008 Wanbury was rated as the fastest growing company among top 100 companies as per ORG-IMS

Products of Wanbury

Active Pharmaceutical Ingredients-

Wanbury is the largest manufacturer of some of its products which include Metformin, Tremadol and Salsalate for the U.S market. Wanbury caters to more than 50% of the U.S market in these products and exports to over 50 countries. Wanbury sells to leading global generic players in the regulated markets such as Apotex, Teva , Mylan etc. It has two approved product patents to its credit namely Sertraline Hydrochloride and Carvedilol. Wanbury has applied for 5 product patents and 1 process patent and has a basket of 20 API products which include Metformin ( Anti diabetic) Tramadol ( Anti analgesic) Gabapentene ( Anti-epileptic) Sertraline (Anti-Depressant) Diphenhydramine hydrochloride (Anti histaminic) Diphenhydramine citrate (Anti histaminic) Meganemic acid ( Anti-inflammatory) Atenolol ( Anti-hypertensive) Salsalate ( Anti-inflammatory )

Metformin: #1 Globally with sales of Rs. 108 Cr and 34% global market share Tramadol: #1 US with sales of 47 tonnes and 40% market share at current run rate Salsalate: #1 US practically sole suppliers

API (Active Pharmaceutical Ingredients) Overview.

The Company continues to remain the largest manufacturer of Metformin in the world with over 30% market share. Another product Tramadol has also been in high demand especially in American markets. Over the latter half of the financial year the Company would have catered to substantial share of the US requirement for Tramadol. This has happened as a result of significant cost competiveness of its product and continuous business development efforts with its customers.

Domestic supplies of the products especially Metformin is gaining much more importance now. There is an increasing trend, especially with big international pharmaceutical companies to get their requirement contract manufactured in India.

Some of the Indian Pharma Companies are also taking strong positions in regulated markets. Therefore the need for an API is showing increasing trend in domestic market.

FY10 posed a number of challenges to the Company. One of its major regulated market customer stopped purchases after the first quarter. The contract manufacturing agreement of an intermediate for a big multinational company came to an end during the year.

The Company has still managed to generate comparable sales to the previous year by better focus on other products, customers and Markets. However from a profitability point of view this situation has resulted in

lower margins.

The Company had expected revival of its Metformin business in America. Wanbury expects a key customer to resume the business in 2011-12 which will further strengthen the Company's market share.

The Contract Research and Manufacturing (CRAMS) business did not perform as planned. No new business was generated during the year Company hence was forced to close down the foreign office in Europe and to scale down its R&D team to keep expenses under control.

Some top management personnel left the Company during FY10-11. Apart from that the Company also ran into tough financial problems and had to admit itself into Corporate Debt Restructuring.

New management came in the latter half of the year and has started working on a turnaround strategy to reinvigorate the API business and take it to new heights. The new management has cost reduction as one of its prime focus areas so that the Company continues to make profit in a generic market with high competition and reducing prices.

The Company plans to look at automation as a solution to ensure higher quality material to its customers. The Company has initiated plans of increasing manufacturing capacity at Patalganga with limited capital investment. This is being achieved by realignment of the manufacturing area.

In FY11-12 the Company is targeting to increase its API sales by ~20%. A significant part of this increase is expected from Metformin and Tramadol. Plans are being formulated to further increase Tramadol manufacturing capacity so as to meet additional requirements from other regulated customers.


Types of markets

Wanbury caters to mainly 3 types of markets. These markets exist throughout the world. The company has a strong presence in regulated markets such as U.S, Europe and Australia. It also has a considerable presence in non-regulated markets such as Latin America (Brazil, Argentina) and Middle Eastern countries (Saudi Arabia, Iran)

Achievements of Wanbury in these markets Supplier of choice to top generic players in US and Europe Adjudged as best vendor in south east Asia by the largest MNC for API business. Renewed USFDA approvals for both locations in the current yea


The Government Export-import (Exim) policies which are applicable to the company
Wanbury makes use of various export incentives like Advanced licence Duty Entitlement Pass Book Duty Draw Back

Along with this the company is exempted from Excise for all products which are manufactured for exports. The company is also eligible for VAT refund as per Maharashtra sales tax laws. E.g. - For exported items and interstate sales.Since the company exports various products/bulk actives, the export policy has defined ratios for inputs for different products. T he inputs for each product vary and after studying the defined input ratios for different products, the companys commercial department has decided to use the export incentives differently for different products. The company uses the Duty Entitlement Pass Book route for their main product Metformin. It uses the Advance licence route for another product- Tramadol. Since the input prices would vary based on global prices for raw materials the company reviews its export policy every 3 months in order to calculate the benefits with the corresponding input prices for different products.

Regulations the company is subject to

Wanbury is subject to various regulations such as The Food and Drug Administration (FDA or USFDA) approval (India), PCB (pollution control board), DISH (directorate of industrial safety & health), and MIDC/APIDC (State industrial development corporation).Since the production of these products involves various hazardous elements certain licenses are also required for boiler usage, hazardous chemical usage, explosive material usage etc. Additionally, plants are subject to audit & approval by International customers as well as country/region specific regulatory authorities (USFDA etc.) The USFDA is very stringent regarding the workplace conditions and hence the company has to take utmost care with regard to its work environment and safety standards.


Marketing strategy
Wanbury adopts three main marketing strategies. Below the line promotion strategies adopted by Wanbury. Participation in trade fairs (Convention on Pharmaceutical Ingredients) (CPhI) - Wanbury participates in trade fairs in order to promote their products. Facts and figures About CPhI / P-MEC India 2010 and co-located events:

26,436 attendees from 86 countries, including 1,433 international visitors Over 71% of visitors are decision makers 86% of visitors are very satisfied or satisfied Conference program: 36 speakers and 12 modules

The company participates in such trade fairs since it offers a very good opportunity to reach a large number of potential buyers in one convenient setting. It gives the company a chance to show how the product actually works. Consumer reaction to the product is tested before it is released onto the market which is of paramount importance. The consumer reaction at trade fairs gives an idea to the company with regard to whether it should launch the product for widespread use or not. This saves a lot of time and money. Such trade fairs allow potential customers to discuss a product with members of the management team, which can be a valuable point of contact. Technical and sales staffs are also available to answer questions and discuss the product. Hence the advantages are plenty when it comes to participation in trade fairs. Wanbury is able to tap various potential customers through such fairs and effectively expand their clientele


Direct marketing

Wanbury also engages in direct selling to generic buyers. Mr.K.Chandran (Vice Chairman) considers this as a dynamic marketing approach in the distribution of products. Why Direct Marketing? In Mr.Shreyans (Manager Strategy) words Because this permits you to generate reactions from your target consumers, making you able to focus on your business. This can get you to use your limited marketing resources where they can be able to give you the results you need. It can also increase loyalty, bring back old consumers and generate a new business all through the practice of a direct marketing campaign This is a personalized marketing approach. Generally the more highly priced and complex the product, greater is the need for direct selling. Wanbury has its own stall in buyer-seller meets like CPhI. This trade fair is held every year in different countries. In this case Wanbury is involved in the sale of Active Pharma Ingredients (API) which is highly complex in nature. It conducts direct marketing since individual buyers can be given personal attention. The company sets up meetings with potential buyers and carriers out PowerPoint presentations regarding product information. Wanbury chiefly focuses on developing a relationship with the potential buyer and ultimately attempts to close the sale


Sales through Commission Agents

Wanbury is also involved in sale of products through commission agents. In countries where Wanbury does not have relationships it appoints agents who have contacts in respective countries. In such a case the commission agent represents Wanbury on the selling end of the deal and uses his wide reach of contacts to set up deals for the company with potential buyers. The commission agent gets 1-2% of the total revenue obtained from the deal. He/She signs a contract with Wanbury generally for a period of 1 year but sometimes is also extended to 3 years. The commission for the sales agents is country and company specific. For e.g. The agent is solely responsible for setting up deals in a certain country like Spain. Also if he has certain contacts in a company then he is solely responsible for setting a deal with that particular company. There are rules and regulations which the agent must adhere to. He may represent another company simultaneously but cannot represent Wanbury and a second company for the same product.E.g- Wanbury sells Metformin (API). The agent can represent only Wanbury with regard to sale of Metformin.


Pricing strategies
Cost leadership strategy- Wanbury firmly believes in superior profits through lower costs. Here the influence of cost is the most important factor. This strategy involves reducing cost at every opportunity. The firm believes in producing and marketing a good quality product at a lower cost than its competitors. It produces on a large scale and thus is successful in striking good deals with the suppliers for raw materials and other important inputs. This strategy allows the company to gain a competitive advantage over its competitors since low costs allow lower prices to cancel the margin of the closest competitor.

Cost Reduction Initiative The Company has hired an experienced cost management consultant to analyse the avenues of cost reduction in purchase of Inventory from the suppliers. In addition the Company has also employed a supply chain professional to streamline the present purchase process and renegotiate terms with suppliers. Wanburys Cost leadership strategy is based on the following Size Economies of scale E.g. - 8000 Tonnes of Metformin (Anti diabetic) per annum, making it the largest manufacturer in the world. It has a 35% market share of the world. Greater labour efficiency and effectiveness and low cost labour - Wanbury uses contract workers to reduce labour costs. Control of overheads Superior management Low cost production Using cost effective processes to reduce costs and enhance productivity Favourable access to low cost sources of supply ( Wanbury has strategic relations with suppliers of raw materials in China) Greater operating efficiency and effectiveness


As Mr Shreyan (Manager Strategy) appropriately put it Cost leadership does not mean necessarily selling at the lowest price. We sell at the industry average price but enjoy above average profits through low cost production. Wanbury firmly believes in the Cost Leadership strategy since It enjoys above average margins ( The firm exports to high margin countries like U.S.A and Europe) It is able to defend its market share effectively in spite of stiff competition The Cost Leadership strategy adopted by Wanbury also helps in increasing market share.

External and internal factors affecting WanburyAs any other business, the company is subject to various risks and threats. The key risks/threats are as follows Competition Wanbury operates in a very competitive environment and hence pricing remains one of the paramount factors that determine the performance of the company. The Industry has excelled in the field of innovation, cost leadership, reengineering, quality and range of products offered making it one of the most competitive and lucrative industries. In the API (Active pharma ingredient) sector, the company has been successful in facing stiff competition by influencing prices since it is the market leader for Metformin in the world with around 35% market share. Wanburys main competitors in the market are USV Pharmaceuticals Harman Finochem Limited Aarti Drugs Aurobindo Pharma


The Company has always been focused on innovation not only on product launches but also on strategic initiatives to help improve the sales and the overall health of the Company. Wanbury has also considerably diminished the risk from competitors by diversifying its product portfolio and also launching new value added products. This has given Wanbury the edge over its competitors.

Increase in market price of key products and raw materialsRise in the cost of petroleum affect Wanburys operations. Raw materials used in the factory require petroleum as the primary base for production. Rise in the price petroleum leads to rise in the cost of raw materials like Dicyandiamide (DCDA) and Di-Methyl Amine Hydrochloride (DMA HCl) which are petroleum based products. This squeezes the margins that are achieved by the company. Last year the price of DMA-HCl increased by 40% from 45 Rupees to 72 Rupees. DCDA constituents about 40% of Wanburys cost. During the Olympics held in China, the Chinese government took stringent measures to reduce pollution in the country. In order to do so the government closed down the DCDA factory and this caused various problems to Wanbury since 90% of the companys DCDA requirements comes from China. This shot up the price of DCDA by 50% thus affecting the companys margins.

Indian Rupees U.S Dollar Exchange Rate. As the share of exports to total sales made by the Company is considerable, it is prone to losses due to exchange rate fluctuations; however, the Company has hedged its exposure to a large extent thereby reducing the risk. A fluctuation in the exchange rate also upsets the companys margins. Appreciation of the rupee results in lower inflow of dollars. In 2009-2010 Wanbury hedged its exports by buying derivatives. It assumed that the rupee would appreciate. In reality the rupee depreciated thus resulting in huge losses. The company incurred a loss of 42 crores. However the company does not have any open derivatives at present.


Government Policy The government gives various export benefits to the company like Duty Entitlement Pass Book (DEPB) Scheme and advance licences. Any change in the policy of issuing these benefits affects the companys margins. Currently the government is in the process of doing away with the DEPB scheme benefits to the company. Since Wanbury operates in the international market, it is at a disadvantage compared to its international competitors due to such obstacles.

Increased costs due to capital investment in plants The Active pharma ingredient (API) is capital intensive in nature. Reactors and other equipments suffer wear and tear and corrosion because of the persistent use of chemicals. The reactors and equipments have to be replaced every 7-10 years. In order to increase production capacity and introduce new products, the company has to incur addition capital expenditure. Wanbury is a fast growing company and hence has to borrow in order to finance its operations. In the process of servicing the interest, there is a strain on the companys margins. Patents / IPR The success of the Company depends largely on its ability to obtain patents, protect trade secrets and other proprietary information and operate without infringing on the proprietary rights of others. The Company has a dedicated Research and Development team that continuously innovates and remains competitive by developing / acquiring ability to sort out simple and effective solutions to practical problems. The Company has a team of highly competitive scientists supported by excellent instrumentation.


Regulatory Manufacturing of pharmaceutical products is heavily regulated and controlled by regulatory and government authorities across the world. Failure to fully comply with such regulations, could lead to stringent actions from the authorities/ government. Regulators across the world, including the USFDA, have become stricter with the pharmaceutical industry.

Human Resource International Formulations Business - Cantabria Pharma Like the last year FY 11 has been another tough year for the European markets and Spain was no exception. Pharmaceutical industry in Spain has consistently been held back due to price cuts enforced by the Government and due to competition as a whole. Over the last year there have been further price cuts which have hampered the sales of the Company. Although the sales in volume terms have only been rising the Company has not been able to make up the loss in sales value to offset the fixed costs and hence was not able to break even last year.

Steps taken to overcome the issue

Several initiatives have been taken to counter the situation and loss in margin due to price cuts has been partly offset by the reduction in cost of material. Other initiatives that are being taken to improve the overall position of the Company are as follows: Business Development / New Product Launches The Company has always been focused on innovation not only on product launches but also on strategic initiatives to help the sales and the overall health of the Company. One such initiative that the Company has explored over the last year has been to look at new sales channels and new areas of business development.


The Company is in the process of hiring sales agents to the sell its products in Spain. Sales done through this new sales channel provides the Company with twofold advantage: _Greater geographical coverage: The agents are spread across Spain and would be able to provide better coverage and support our products better. _Reduction in manpower cost: Agents work on commission basis as a fixed percentage of sales over and above the initial set up cost. The initial set up cost is very nominal and the commission model ensures that the Company would have to pay if and only if the sales happen reducing the overall manpower cost. _Human Resource Initiatives: In order to improve productivity the Company has further reduced the sales force from 63. This number would further go down with the commissioning of the sales agents thereby further reducing the manpower cost.

Cost Reduction Initiative Over the last year the company has extended its efforts to reduce costs as a whole to increase profits thereby increasing the cash available for investment in business and provide higher returns for the investor. Some of the significant cost reduction initiatives undertaken by the Company are as follows: Rollout of travel and hotel policy - Wanbury has tied up with Thomas Cook as the sole vendor for providing service related to domestic and international travel and also for hotel bookings. This initiative is expected to reduce costs for Wanbury to the tune of Rs. 2 Crores per annum as a result of economies of scale and tying up with a vendor with a pan India presence and better capabilities. Also, the costs are expected to reduce by better implementation of travel policy which ensures that the bookings are done well in advance to get the cheaper rates. Implementation of Standard Fare Chart (SFC) and Standard Tour Plan (STP) - For our employees in the field the SFC and STP have been rolled out which ensures better control for outgo of expenses governed by the standard rates.


Process Improvement One of the most important parts to creating a sustainable and healthy business is to have efficient and robust internal processes which support the business owners. The Company has taken a number of steps to improve and establish best in class support systems. Some of the key steps taken by the Company across areas are:Sales Admin - A dedicated sales admin team for each of the formulations division to ensure quick response time and support for the field force. Distribution - New distribution head has been recruited to implement industry best practices with focus on reducing breakage and expiry returns by better supply chain management. IT - New systems and processes have been put in place to support the field, plants and HO to ensure timely and correct data to the internal customers. HR - HR processes have been revamped to reduce the TAT (turnaround time) for recruitment and induction in the Company Human Resource Risk The Company's ability to deliver value is shaped by its ability to attract, train, motivate, empower and retain the best professional talents. These abilities have to be developed across the Company's rapidly expanding operations. The company continuously benchmarks HR policies and practices with the best in the industry and carries out the necessary improvements to attract and


Financial Achievement

From the picture above, one can conclude that the financial health of the company is very good. The compound annual growth rate of the company has increased by an impressive 42% over 5 years. There has been a dip over the last few years but the overall the company has shown strong signs of growth over the years.


Wanbury Focused on Market Leadership (in volume terms)

FY 10 Global Market Share

Metformin Tramadol Sertraline Diphen Hydramine 12% Tramadol 5% 34% 34% Metformin

FY 14 Global Market Share



Diphen Hydramine



Wanbury continues to dominate the market share for its products Metformin and Tramadol. It relies heavily on these products due to its large market share and ever increasing demand for the product, both domestically and internationally. Over the next 2 years the company aims to further increasing its market share in these products and is fully focused on achieving this goal. It has plans to increase production capacity in order to meet ever increasing demand. It also has plans to enter untapped markets and take full advantage of the optimum situation.


How Wanbury increased its exports.

The company started manufacturing metformin an anti-diabetic at its Patalganga unit and selling domestically and exporting to non-regulated markers. It soon realised that these markets were purely price driven and there was no customer loyalty. However regulated markets were looking at quality and these were more long term contracts. However entry into these markets (Europe, U.S.A, Australia etc.) required FDA approvals from the respective countries. The regulated markets have higher realization and therefore more profits. It was also seen that regulated markets comprised of more than 60-70% of the world market. The company therefore decided that if it has to grown in exports and make higher margins it had to export to regulated markets. This required unit to be approved by respective FDA of these countries. This required higher standard of manufacturing and equipments. The company embarked on an ambitious plan to upgrade its unit as per Europe and USFDA. In 2 years time the company got approval from USFDA. THIS opened up the market of us and Europe. The companys exports increased manifold after thus approval. Large generic players like Apotex, Teva, Barr, Milon etc. started buying products from Wanbury. This was the trigger for increasing its exports. The European and usfda approvals were of paramount importance to increase exports. This success encouraged the company to expand its product portfolio and started manufacturing products like Tramadol, Gapapentine, sertraline etc. The company saw great opportunities in growing CRAMS business. In this direction the company did not have relationship with innovator companies like Glaxo,Pfizer. The company acquired a manufacturing unit in Taanku near Vijawada. The company Doctors organics was already involved in crams business with Pfizer. To get an entry into this business the company acquired doctors organics. With this company made a presence in the market. Companies like Novartis, Johnson and Johnson started buying from Wanbury.


Methodology/process of export
The export process is made more complex by the wide variety of documents that the exporter needs to complete to ensure that the order reaches its destination quickly, safety and without problems. These documents range include those required by the authorities (such as bills of entry, foreign exchange documents, export permits, etc.), those required by the importer (such as the proforma and commercial invoices, certificates of origin and health, and pre-shipment inspection documents), those required for payment (such as the Reserve Bank forms, the letter of credit and the bill of lading) and finally, those required for transportation (such as the bill of lading, the airway bill or the freight transit order). Documentation requirements for export shipments also vary widely according to the country of destination and the type of product being shipped.
Once the product is manufactured it is packed in HDPE/Fibre drums. The local customs department is informed who come for an inspection of the goods. Once it is expected the goods are loaded into containers FCL/LCL depending upon the quantity/Number of drums. This is then taken by trucks to the nearest port. JNPT for Patalganga & Tarapur plant. Chennai port for Tanuku plant. In the meantime the company reserves space in a ship through clearing agents who handle the goods shipment into the ship. There are formalities which the company has to undergo at the port wherein the customs check the identity of the goods, origin of goods. They also check whether the product is in the clearance list of the customs authorities and the final clearance is given for exports. The payment for these goods are ensured through an LC opened by the customer or on DADP basis.


Depending upon the destination it takes between fifteen days to forty five days for the customer to receive the goods. On reaching the shore of the customer of the respective country the customer takes care of all procedures at their respective ports. On receiving the goods the customer makes payments, if it is DADP or through an LC.


Expansion Policies (Expansion of manufacturing capacities/facilities)

The company started its operations from a plant in Patalganga. However the plant capacity was almost fully utilized. the company had two options. Either to build new plants or acquisitions. Building a new plant would require, Building a green field project which would require two years time. The company with its aggressive growth plants decided to go for acquisition to cut short the gestation period. It first acquired Doctors organics which had a USFDA plant in Tanaku. As of now the company has decided not to put fresh capital in building plants or acquisitions as the balance sheet is stretched. The company has a tactical team which continuously works on increasing the capacity of the existing plants by reducing the manufacturing time. This team has been successful in increasing the capacity of its product Tramadol from 9 metric tonnes per month to 14 metric tonnes per month without expanding i.e. installing new reactors but only through its manufacturing process i.e. removing the mismatch in different process like increasing the boiler capacity, Improving the pipings , automation of final packaging etc. The companys current objective is to increase the current capacities by improving efficiencies thus increasing manufacturing capacity which involves lower capital costs. Based on the current performances it is clear that the current action plan is working for Wanbury since it has experienced an increase in sales.


Schedule No. SOURCES OF FUNDS SHAREHOLDERS FUNDS Share Capital Reserves & Surplus LOAN FUNDS Secured Loans Unsecured Loans Deferred Sales Tax Liability TOTAL APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation / Amortisation Net Block Add : Capital Work in Progress INVESTMENTS CURRENT ASSETS Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Current Liabilities Provisions Net Current Assets TOTAL Accounting Policies Notes to Accounts As At 31.03.2011 (Rs. in Lacs) As At 31.03.2010 (Rs. in Lacs)


1 2

1,468.93 14,046.13 15,515.06 28,855.43 6,814.40 35,669.83 25.34 51,210.23

1,468.93 17,024.48 18,493.41 26,326.93 5,791.34 32,118.27 31.94 50,643.62

3 4

6 7 8 9 10 11 12

28,563.71 6,575.13 21,988.58 1,074.92 23,063.50 10,471.57 3,638.94 6,556.51 759.25 18,202.80 29,157.50 10,158.96 1,323.38 11,482.34 17,675.16 51,210.23

27,528.36 5,479.50 22,048.86 1,501.32 23,550.18 10,172.31 3,235.61 8,222.74 1,042.20 14,465.79 26,966.34 8,536.05 1,509.16 10,045.21 16,921.13 50,643.62

17 18


Personal Conclusion
After analysing the various strengths, weaknesses, opportunities and threats of Wanbury, It can be said that over the years the company has grown by leaps and bounds. It has made forays into a number of markets and increased its market share to a considerable extent. Curently it has been facing some tough times due to the economic crisis in Europe. But the employees at Wanbury are convinced that this is just a tough phase and things will improve over time. The company has ambitious plans for the future in order to increase sales and market share at the same time the company focuses on keep costs at a minimum since it feels that this is of paramount importance if it has to keep its profits high. The company has taken various steps in order to reduce the losses and get a grip of the current situation. After speaking to a couple of employees at Wanbury, I have a feeling that the situation is getting better. There are also plans to introduce new products. For now though it only plans on improving the current situation and from there on try to achieve its objectives. The company has no plans in the near future with regard to acquisitions and mergers. As mentioned in the project, there is increasing demand for its two main products Metformin and Tramadol and the company wishes to cash in on this by improving production capacity. Overall things are looking better for the company than last year.