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Introduction to project

The main focus of the study is on strategy used by the pharmaceutical industry to
retain their customers. To get the result of this study, different executives were
interviewed from different companies. The reason behind to do this project-
customers are the back bone of any company and to retain them what steps are using
by the pharmaceutical companies. The customer is the means to achieve this end. The
relationship between the company and customer has definite bearing on the bottom
line. The stronger the relationship, the longer the corporate life of the company

The Liberalization, Globalization and Privatization have forced the competition into
industrial arena. Globalization is an irreversible process. In other words in an era of
market orientation, such of those concerns which have a real concern for customer
would in the long run. Of course, the purpose of every enterprise is to make profit,
now and forever, so there is need to maintain sound relationship with customer.

Introduction to customer relationship marketing

In this concept, a complex problem of building up, smoothing and maintaining the
relationship is answered by the concept of customer relationship marketing (CRM).
The CRM starts with deep knowledge of customers, their hobbits, desires and the
need by analyzing their cognitive behavior and attributes. The CRM concept helps in
designing and implementing market in order to develop an ever lasting relationship
with customer.

From the outside, customers interacting with a company perceive the business as a
single entity, despite often interacting with a variety of employees in different roles
and departments. CRM is a combination of policies, processes, and strategies
implemented by a company that unify its customer interaction and provides a
mechanism for tracking customer information. The need to find new sources of
revenue is a fundamental requirement for business growth. Developing close,
cooperative relationship with customers is more important in the current era of

intense competition and demanding customers, than it has ever been before. Over the
last 30 years, we have moved from mass-market culture of relatively few products
with a limited number of options to a dynamic market where many products may be
easily customized to fit the specific requirement of an individual customer. In the
past, many organizations depended on personalized service to develop and maintain
the loyalty of their customers. As the customer‟s relationship with their supplier has
become one-to-one contact with an organization now occurs most often by telephone
or on the internet. Customer relationship marketing (CRM) is one of those business
practices which sensible companies have been implementing to some extent for many
years but which recently (and more than partly due to the advent of the internet) has
been given a trendy new name. In effect, it is a combination of good business
practices, common sense and courtesy. It‟s a well known fact that it costs a company
dramatically less to retain and grow existing customers than it does to court new ones
and this proposition underpins the argument that CRM is one of the most effective
and valuable business „tools‟ available. Real customer relationships, those that result
in the customer feeling a genuine sense of loyalty to the firm, are predicted on a series
of satisfying experiences with the company.

Customer retention has a tremendous profit potential only a few percentages points‟
improvements in customer retention can have a dramatic impact on improvement of
profitability. If a customer is lost through dissatisfaction he will be gained by a
competitor. To keep the customers is a strategic issue for companies. Customer
retention helps predict the profitability of the company therefore provides an
excellent management tool for considering the success of quality and customer
service programmes.

Retaining a customer allows a company to develop the relationship and encourage
both repeated and increasingly frequent buying activity. There is a close link between
quality, client retention and profitability. The customers who are satisfied with the
quality of the service will be loyal to the firm. Marketing activity for retaining the
customers can be expensive and needs to be closely evaluated. The most successful
retention programmes segment customers into different levels of profitability and this

helps identify the type and frequency of marketing activity which should be directed
at them. The most profitable customers are the most valuable. There are ones on
whom most of the recourses should be spent. The idea of customer loyalty is not new.
Unlike other new idea it has rock solid foundation. Loyal behavior has been directly
linked to company profitability across a convincingly wide array of sectors. Customer
loyalty is the primary generated of profit. The superior profitability of customer
loyalty has received traditional direct marketers and mail order companies. It is only
has received widespread attention at the company level. Customers can be loyal to
different things example, they can be loyal to a brand which symbolized a group
recommended isolated valuable customers received widespread attention the
company level. Customers can be loyal to different things, example they can be loyal
to a brand which symbolized a group of people. Reinhold recommended isolated
valuable customers in a slightly different way. He suggested that three primary
measurement of customer loyalty. They are the stream of revenue and profit from
retention to loyal customers, repeat sales and referral. One must first concentrate on
increasing the number of buyers and the number of product lines at each location.
One should then work in developing sales at multiple locations. One can use existing
customer relationships to generate new sales opportunities. This develops a close
relationship with the customer which can be used to gain lower cost access to other

The customer database of most organizations consists of those people who use
products or service on a more frequent basis. Some customers may only have a
relationship once with the company. On the other hand some customers use the
organization s products or services on a regular basis. In recent years competitive
markets have been flooded with customer‟s loyalty programmes. According to
customer loyalty today, 51% of all British shoppers possess a loyalty card and of
those who shop at supermarket which offer those 70% have a card. On an average it
is estimated to cost five times as to attract a new customer as it does to keep an old
card. Long term relationships with customers are therefore more profitable because
retaining existing customers is hard to concentrate on acquisition quality when
quantity is so mush easier. Winning more and more new customers could slowly put

you out of business. Customer retention is built on customer loyalty. During the first
year of customer life. No profit is earned. This is due to acquisition cost for the new
customer. One experience higher costs during the first year as the buyer and seller get
acquainted with one another. The next year sees only a basic profit return. It is not
until the third year of relationship that the customer becomes more than modestly
profitable. Taking you improve retention you create a highly efficient machine.

Steps in Customer Relationship Marketing

Step1. Targeting

When customers are targeted as being an appropriate customer for the company and
included to “join” Targeting is not precise enough. So if the company tries to cross
sell to all its customers, irrespective of their suitability, it can be a loss making
activity. Very large numbers of customer of customers are targeted using a verity of
approaches-direct mail, TV etc. this lead to overlapping coverage and wasted
promotional budgets. At worst, if the activities of different product managers are not
coordinated, the single person may be targeted for several different products at the
same time, with same name being rented more than once.

Step 2.Enquiry Management

The customer is in the process of joining. Usually this is a very short stage, but of
critical importance. In many cases failure to manage enquires properly leads to many
customers being lost before they join. Sometimes this process is just too expensive
compared with subsequent customer value. At this stage customer‟s expectations are
often set for future treatment, yet they often disappointed.


After the customer has joined, depending on the complexity of the product or service,
it is important to ensure that the customer is” securely on board”, e.g. Knows who to
contact if there are problems, know how to use product or service. This is often a very
short stage, yet it is a clear from what happens when a customer has problems or
makes a claim they often do not who to call and what to do. For the decision

involving significant outlays, customers may need to be reassured that they have
made the correct decision and give the opportunity to say whether or not they feel
could been handled well during the buying cycle.

Step4.Getting to Know

This is crucial when both sides exchange information with each other. Additional
customer‟s needs may become apparent and how they use the product or services
becomes known. More is also learnt about a customer‟s honesty, ability to pay and so
on. Many companies assume that this stage does not exist and that their customers go
straight into a mature stage of account management. We cannot expect that no
customer will cancel early, but we can expect to be able, by means of data analysis, to
identify customers most likely to and implement preventive action. Analysis, to other
industries with long term relationship with customers indicates that communications
behavior, brand attitude and satisfaction with the category are good predatory of
loyalty. Strong preferences can be formed quite early on in the relationship.

Step5.Customer Development

The relationship is now being managed securely with additional needs being
identified in time and met where feasible. This is the ideal stage, though quite a few
customers never reach it and often dip into next stage or remain in the previous stage
for a long time. This is the best detected by short questionnaire, which can be
administered by May telephone and sales staff.

Step6. Managing Problems

Customers can have such severe problems that special attention is needed to ensure
that they return safely to customer development. If this attention is not given,
customer can be so dissatisfied that divorce is imminent. If customers do leave, they
will usually, after a cooling off period, be ready for win back.

This stage is defined in terms of what suppliers should do, but, of course, the need for
It is often missed and customers go straight into pre-divorce. Even after a mishandled
service event or a change in their need that remains undetected. If the company does

not handle the initial problem well and customer considers leaving, the often fails to
recognize that this is happening. Many companies give up here, and even pride
themselves that they make it easy for the customers to cancel. If the reason for
cancellation or

Termination of the relationship was a change in circumstances or a move out of the
category, then brand loyalty may be intact and in some case enhanced if the supplier
made terminating easy.

Step7.Win Back

Sometimes, the relationship ends because of high price or wrong product, so win back
can be initiate when these issues are resolved. Win back is hardest if the customer left
due to door services, unless competitor‟s service is even worse. The targeting of win
back campaign is more difficult because many companies are poor at defining and
identifying lost customers and they have no reliable database.

Benefits of Relationship Marketing

Retaining customers for the long-term offers many benefits. The aim is for the
company to obtain life time customers. Some of the benefits of relationship marketing

      Loyal customers will recommend your business to others, thus expanding
       your business for you.

      Loyal customers are willing to try some of your new products, because they
       trust you.

      Customers will be willing to pay more for your services/products if there are
       adjustments in pricing because they are loyal to you and trust your

      Loyal customers will tell you about problems with your products/services
       enabling to improve your products/services.

      The ultimate benefit will be an increase sales, market share and dominance.

Introduction to Indian Pharmaceutical Industry

“The Indian pharmaceutical industry is a success story providing employment for
millions and ensuring that essential drugs at affordable prices are available to the vast
population of this sub-continent.”

                                                                        Richard Gerster

The Indian Pharmaceutical Industry today is in the front rank of India‟s science-based
industries with wide ranging capabilities in the complex field of drug manufacture
and technology. A highly organized sector, the Indian Pharma Industry is estimated to
be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in
the third world, in terms of technology, quality and range of medicines manufactured.
From simple headache pills to sophisticated antibiotics and complex cardiac
compounds, almost every type of medicine is now playing a key role in promoting
and sustaining development in the vital field of medicines, Indian Pharma Industry
boasts of quality producers and many units approved by regulatory authorities in USA
and UK. International companies associated with this sector have stimulated, assisted
and spearheaded this dynamic development in the past 53 years and helped to put
India on the pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading 250
pharmaceutical companies control 70% of the market with market leader holding
nearly 7% of the market share. It is an extremely fragmented market with severe price
competition and government price control.The pharmaceutical industry in India meets
around 70% of the country's demand for bulk drugs, drug intermediates,
pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There
are about 250 large units and about 8000 Small Scale Units, which form the core of
the pharmaceutical industry in India (including 5 Central Public Sector Units). These

units produce the complete range of pharmaceutical formulations, i.e., medicines
ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having
therapeutic value and used for production of pharmaceutical formulations.
Pharmaceutical marketing is a specialized field where medical representatives form
the backbone of entire marketing effort. Pharmaceutical companies also appoint
medical representatives and assign them defined territories. Medical representatives
meet doctors, Chemists and stockiest as per company norms. Medical representatives
try to influence prescription pattern of doctors in favor of their brands.


The pharmaceutical industry since 1870 has become gargantuan, but consumers cling
to a love-hate relationship with drugs for health since the mid-19th century,
pharmaceuticals have moved from the periphery to the center of health care. In the
course of that transition, a new industry sector expanded to global scope, the field of
medicinal chemistry rose to its current prominence, and governments adopted dual
roles of supporting basic research and regulating drug safety and efficacy. For
patients--and we are all patients at various points in life--drugs have taken on new
medical roles and value. In recent years especially, it has become common for people
to take drugs for years, even decades, to reduce risks of disease and increase life span.
Taking drugs for life has intensified a long standing hybrid of scientific, emotional,
and policy issues around side effects and widespread resentment of companies that
profit from drug invention and marketing Combined with public health initiatives,
new pharmaceuticals have contributed significantly to an improved quality of life and
helped increase human life span. In the U.S., for example, life span increased from an
average of 47 years in 1850 to 78 years today. Advances in medicinal chemistry have
marginalized or eliminated health scourges once prevalent around the world. This
special issue of Chemical & Engineering News contains 46 essays devoted to specific
drugs or classes of drugs. Among the threads explored are the role of chemical
professionals in inventing new therapies; the complex interplay of scientists, industry,
government regulators, physicians, and patients in converting laboratory molecules
into medical therapies; and the changing professional roles of scientists and

physicians in the wake of increased government regulation and patient activism.
Recently, drug safety issues have come to the fore in the wake of concerns about
COX-2 inhibitors and antidepressant use among teens. Press attention and
congressional investigations have highlighted the complex choices faced by industry
and regulators as new medicines come to market. Government officials who act too
slowly while reviewing mountains of documents--applications are typically 50,000
pages long or longer--face complaints from patients, disease-based organizations,
physicians, and economists and politicians with antiregulatory sentiments. When
regulators decide against approval, they may be accused of undermining a key sector
that provides employment to thousands of skilled workers and serves the public
interest by producing medicines. Approve a drug that later causes adverse reactions,
however, and regulators are pilloried in the press, asked to testify before Congress,
and told to tighten controls.

Industry faces its own set of difficult choices. Firms that commit too strongly to a
small development portfolio face the possibility of failure in clinical trials and
disruption of their competitive standing. Those that push broad drug pipelines risk
investor dissatisfaction with their failure to focus their research and develop
blockbuster drugs. Market incentives drive companies to invent medicines for
ailments prevalent in the U.S., Europe, and Japan, while the absence of cures or
affordable treatments for diseases prevalent in developing countries, especially
HIV/AIDS and malaria opens pharmaceutical firms to criticism. Another challenge in
the past two decades has been the rise of a generic pharmaceutical industry of
increasing global scope. A recent Harris Poll thus recorded a 35% decline in
consumers' approval of the industry, down from 79% in 1997 to 44% in 2004. For
scientists involved in drug research and for the industry more broadly, this shift
reflects the quandary of balancing an ethos of research in the interest of the public
good against the necessity of running pharmaceutical firms as businesses

Growth of Pharmaceutical industry


The modern pharmaceutical industry traces its origin to two sources: apothecaries that
moved into wholesale production of drugs such as morphine, quinine, and strychnine
in the middle of the 19th century and dye and chemical companies that established
research labs and discovered medical applications for their products starting in the
1880s. Merck, for example, began as a small apothecary shop in Darmstadt,
Germany, in 1668, only beginning wholesale production of drugs in the 1840s.
Likewise, Schering in Germany; Hoffmann-La Roche in Switzerland; Burroughs
Welcome in England; Etienne Poulenc in France; and Abbott, Smith Kline, Parke-
Davis, Eli Lilly, Squibb, and Upjohn in the U.S. all started as apothecaries and drug
suppliers between the early 1830s and late 1890s. Other firms

Whose names carry recognition today began with the production of organic
chemicals (especially dyestuffs) before moving into pharmaceuticals. These include
Agfa, Bayer, and Hoechst in Germany; Ciba, Geigy, and Sandoz in Switzerland;
Imperial Chemical Industries in England; and Pfizer in the U.S.

A merging of these two types of firms into an identifiable pharmaceutical industry
took place in conjunction with the emergence of pharmaceutical chemistry and
pharmacology as scientific fields at the end of the 19th century. Oriented to
identifying and preparing synthetic drugs and studying their impacts on pathological
conditions, both disciplines were intimately linked with the rise of the industry.

Pharmaceutical firms, first in Germany in the 1880s and more recently in the U.S. and
England, established cooperative relationships with academic labs. The resulting
exchange of research methods and findings drove a focus on dyes, immune
antibodies, and other physiologically active agents that would react with disease-
causing organisms. Postulated by Paul Ehrlich in 1906 following more than a decade
of research, the concept that synthetic chemicals could selectively kill or immobilize
parasites, bacteria, and other invasive disease-causing microbes would eventually
drive a massive industrial research program that continues to the present. Already in

the early 19th-century, chemists were able to extract and concentrate traditional plant-
based remedies, giving rise to treatments such as morphine and quinine. By the start
of the 20th century, applying similar methods to animal systems resulted in the
isolation of epinephrine (adrenaline) as the first hormone that could be used as a
medicine. Meanwhile, synthetic organic chemistry evolved as an industrial discipline,
especially in the area of creating dyestuffs derived from coal tar. It was only a short
step from staining cells to make them more visible under microscopes to dyeing cells
to kill them. Chemists soon modified the raw dyestuffs and their by-products to make
them more effective as medicines. Early products of research continue to have
application today; for example, N-acetyl-p-aminophenol, the active ingredient in
Tylenol and Panadol, is a fast-acting metabolite of the analgesics acetanilide and
phenacetin created in German laboratories in the 1880s. In 1897, a chemist at Bayer,
Felix Hoffmann, first synthesized aspirin, another staple of our medicine cabinets.
The end of the 19th century also saw the development of several important vaccines,
including those for tetanus and diphtheria.

A theory relating chemical structure to pharmaceutical activity emerged from the
interplay of experimental results from animal and human tests using vaccines,
antitoxins, and antibodies with chemical knowledge about dyes and their molecular
structures. This structure-activity theory inspired Ehrlich to pursue a long and
systematic course of research that resulted in the ant syphilitic Salvarsan, often
considered the first systematically invented therapy.

The progressively more important role of the chemist and chemical science in
pharmaceuticals in the early-20th century is mirrored in the history of the American
Chemical Society's Division of Medicinal Chemistry. It was founded in 1909 as the
Division of Pharmaceutical Chemistry one year after ACS instituted a divisional
structure. Chemists in the U.S. had gained new stature and industrial employment due
to the requirements for accurate analysis of medicines contained in the 1906 Food &
Drugs Act. But U.S. chemists only rarely had the freedom to create new drugs, and
relatively few companies manufactured complex therapies. Those activities were
largely monopolized by German chemists working in conjunction with the major

German chemical companies. World War I blockades forced U.S. chemists to
replicate German processes for producing drugs such as aspirin; Salvarsan; and
Veronal, a powerful hypnotic useful in easing the pain of battle wounds. In 1920, the
ACS division renamed itself the Division of Medicinal Products to reflect the wartime
change in focus from analysis to synthesis. Edging ever closer to research functions,
in 1927 the division took on its present name. While largely unregulated by
government bodies prior to the 20th century, the pharmaceutical industry faced
challenges in differentiating its products from patent drug makers whose secret
recipes, in fact, were not patented. Professional bodies, including national physicians'
associations, pharmacists' groups, and national formularies (which trace their origins
to a 1498 pharmacopoeia for the apothecaries of Florence, Italy) set manufacturing
standards and occasionally exposed fallacious claims made concerning medical
ingredients. The development of diphtheria antitoxin in the 1890s and subsequent
cases of inactive or contaminated doses led the health ministries in Germany and
France to test and oversee biological; likewise, the U.S. Hygienic Laboratory was
authorized to license manufacturers under the 1902 Biologics Control Act.

Government regulators' authority to remove products from the market or constrain
advertising claims, however, was limited in the U.S., Europe, and elsewhere. Larger
companies supported additional legislative interventions, including the 1906 Food &
Drugs Act in the U.S. and similar laws in several European countries that prohibited
adulteration and forced manufacturers to reveal ingredients on product labels.

Nevertheless, at the start of the 1930s, most medicines were sold without a
prescription and nearly half were compounded locally by pharmacists. In many cases,
physicians dispensed medicines directly to patients; companies often supplied
physicians with their favorite formulations. While the medical profession was well-
established in Europe and America, the pharmaceutical industry was only beginning
to develop medicines to treat pain, infectious diseases, heart conditions, and other
ailments. Direct application of chemical research to medicine appeared promising, but
only a few substances--newly isolated vitamins and insulin--were more effective than
treatments available at the turn of the century. The industry's position at the

crossroads of science, medicine, and growing health care markets nevertheless set the
stage for explosive growth.


The middle third of the 20th century witnessed a blossoming of pharmaceutical
invention, with breakthroughs in the development of synthetic vitamins,
sulfonamides, antibiotics, hormones (thyroxin, oxytocin, corticosteroids, and others),
psychotropics, antihistamines, and new vaccines. Several of these constituted entirely
new classes of medicines. Deaths in infancy were cut in half, while maternal deaths
from infections arising during childbirth declined by more than 90%. Illnesses such as
tuberculosis, diphtheria, and pneumonia could be treated and cured for the first time
in human history.

As in other domains, wartime support for research accelerated the development of
certain therapies. Programs sponsored by the U.S. government focused on anti
malarial, cortisone (which was thought to permit aviators to fly higher without
blacking out), and, most especially, penicillin. The development of penicillin by 11
U.S. pharmaceutical companies under the oversight of the War Production Board
gave U.S. firms a leading position after WWII. In the late 1940s, they produced over
half of the world's pharmaceuticals and accounted for one-third of international trade
in medicines.

Pharmaceutical firms in the U.S., Europe, and Japan expanded rapidly following the
war with strong investments in research, development, and marketing. In this period
of rapid growth in pharmaceutical research, companies expanded in-house R&D
while continuing collaborations and consulting relationships with academic
researchers. At the same time, the primary methods used for drug invention shifted
radically between 1930 and 1960. During the advent of the antibiotic era, drug firms
screened thousands of soil samples in a global search for antimicrobial agents.
Antibiotics     including     streptomycin   (Merck),   chlortetracycline   (Lederle),
chloramphenicol (Parke-Davis), erythromycin (Abbott and Lilly), and tetracycline
(Pfizer) gave companies the opportunity to extol the miracles of medical research to

health professionals and consumers alike. Profits from the sale of antibiotics enabled
companies to build campus like research parks from which further breakthroughs
were expected. Within a short time, firms shifted their research focus from natural
products to modified natural products to synthetic chemistry. Associated with this
shift, new analytical techniques and instrumentation entered the research laboratory to
aid in the determination of the molecular structures of antibiotics, steroids, and other
potential medicines. X-ray crystallography, as well as ultraviolet and infrared
spectroscopy, initiated a gradual shift from wet chemistry of solutions in beakers and
test tubes to dry chemistry of minute samples and molecular models. As a result,
chemists began to develop a good working knowledge of the relationships between
molecular structure and bioactivity, making possible the first effective antipsychotic,
tranquilizers, antidepressants and antihistamines. This period also saw the institution
of safety regulations in the U.S. in the wake of the 1937 sulfanilamide incident.
Tragedy struck when a scientist at S. E. Massengill used diethylene glycol, a sweet-
tasting but toxic chemical, to prepare one of the then-new sulfa drugs in syrup form.
Although chemists at the firm examined the appearance, flavor, and fragrance of their
"elixir of sulfanilamide," they did not test it on animals or even review published
literature on solvents. After more than 100 people--mostly children--died from the
compound, a public uproar prompted rapid approval of the 1938 Food, Drug &
Cosmetic Act. The law significantly expanded the Food & Drug Administration's
authority over the marketing of new drugs. Officials were required to review
preclinical and clinical test results and could block a drug's approval by requesting
additional testing or by formally refusing to allow its marketing.

Less stringent regulations than in the U.S. were put in place in other countries during
the first half of the 20th century. In Germany, for example, a wartime ban on new
medicines (Stoffverordnung) was continued into the 1950s as a means for the health
ministry to regulate pharmaceutical manufacturers. In England, the Therapeutic
Substances Act was revised and consolidated in 1956, bringing more substances
under government control and setting formal standards for their testing and
manufacture. Similar laws in the U.S., European countries, and other nations around
the world distinguished over-the-counter therapies from prescription drugs. This

division, in turn, drove further specialization by the pharmaceutical industry into
high-profit prescription-only medicines.

As part of their regulatory oversight, government officials promoted the double-blind,
clinically controlled trial as the gold standard for testing new medicines on patients.
For regulators, data from formal clinical trials narrowed the field of decision-making
by characterizing drugs in terms of their safety (and eventually, effectiveness) across
large patient populations. In time, pharmaceutical companies found that testing
helped target populations who would purchase a new drug, generated information
useful in marketing, and raised the entry costs for competing firms. Medical
reformers and consumer protection advocates expected more rigorous remarket tests
to prevent harmful or useless products from reaching consumers. Interestingly,
despite national variation in regulations and clinical trial methods, in all countries the
pharmaceutical industry retained responsibility for product testing. Thus, even as
government regulatory agencies expanded their authority, they remained reliant on
the industry to sponsor and oversee the vast majority of clinical trials.


The pharmaceutical industry was buffeted by significant scientific, medical, political,
and market forces between 1960 and 1980. Approaches to drug discovery and early-
stage testing changed as medical advances made it possible to identify compounds
that block specific physiological processes. Major innovations were made in
cardiovascular drugs (starting with antihypertensive and beta-blockers in the 1960s,
followed by calcium-channel blockers, ACE inhibitors, and cholesterol-reducing
drugs in the 1970s and 1980s); tranquilizers, antidepressants, and antihistamines with
fewer side effects; no steroidal anti-inflammatory drugs; oral contraceptives; cancer
therapies; and means of controlling the symptoms of Parkinson's disease and asthma
attacks. Clinical testing achieved greater standardization under strict FDA oversight
in the U.S., whereas many European and other countries maintained more flexible
systems that allowed drugs on the market sooner, contingent on closer physician
monitoring of side effects. As a result, a hotly contested "drug lag" motivated U.S.-
based firms to diversify into fragrances, cosmetics, and other consumer products

Though chemists at least from the days of Ehrlich had hoped to design medicines to
fit molecular targets, so-called rational design became a real possibility in the 1970s.
In   rational   design,   substrates   or   receptors   for   enzymes,     hormones,    or
neurotransmitters known to be involved in a particular disease are selected on the
basis of knowledge of the body's biochemical and physiological processes. Next,
chemists investigate compounds that might block the function of the chosen target
molecule. Alternatively, or simultaneously, a search is done among natural sources,
including substances produced by microbes that might have the desired biochemical
effect. Drawing on the store of molecular structure-activity relationships that chemists
have built up over time, researchers modify the lead candidate from this process to
turn it into a pill or injection tolerated by humans. While rational in intent, the process
to this day often benefits from sheer chance and the tenacity of researchers who
develop a passionate attachment to certain molecules, such as Miguel A. Ondetti and
Emily Soba with the ACE inhibitor succinyl-l-proline, which was developed into
captopril, or Albert Carr with a metabolite of terfenadine, which was marketed as an
antihistamine.During the 1960s and '70s, new instruments were brought to bear on the
process of drug discovery, including nuclear magnetic resonance and high-pressure
liquid chromatography. Rendering the pharmaceutical laboratory yet more dry,
computers were increasingly used to perform complex calculations such as Fourier
transforms and to host databases used in comparing new compounds to established
reference molecules and in analyzing results from large clinical trials.

Among the factors driving adoption of new instruments and computers was a major
new regulatory law. Starting in the late 1950s, the pharmaceutical industry faced a
lengthy investigation into pricing policies and marketing approaches spearheaded by
former Sen. Estes Kefauver (D-Tenn.). Kefauver brought to public attention huge
markups between raw material costs and the final price of a drug; his congressional
hearings also exposed a variety of unsavory marketing practices.

Nearly simultaneous with the Kefauver investigation in the U.S., the thalidomide
tragedy--a case in which a sedative widely marketed in Europe, South America, and
parts of Asia caused severe birth defects in approximately 10,000 children

worldwide--drew attention to inadequate clinical testing and regulatory oversight
prior to the marketing of new drugs. In Germany, home to the manufacturer (Chemise
Grünenthal) and the country hardest hit by the tragedy, a 1961 statute ordering federal
registration of new medicines was strengthened in 1964 to require prescription drug
status for new drugs. Nevertheless, a more comprehensive drug law with formal
remarked requirements for drug safety and efficacy was not enacted in Germany until

In the U.K., the Ministry of Health responded to the crisis by establishing the
Committee on Safety of Drugs (CSD) in 1963. Although it worked closely with the
government, CSD was not a regulatory agency and did not police physician or
industry behavior before or during clinical trials. A national licensing authority was
established in the 1968 Medicines Act, which put the control of market access for
new drugs under the Committee on Safety of Medicines. Although thalidomide was
not marketed in the U.S., publicity about birth defects in Europe led Congress to
rapidly pass new legislation. Whereas Kefauver had proposed mandatory cross-
licensing of drug patents, price limits, and restrictions on marketing in an effort to
lower drug prices, the final legislation was oriented solely to drug safety and efficacy
standards. Subsequent to passage of the Kefauver-Harris Amendments to the Food,
Drug & Cosmetic Act in 1962, FDA promulgated guidelines detailing approved
methods for clinical testing, enforced a strictly quantitative approach of evaluating
drug applications, and began using its new authority to postpone or reject New Drug

Pharmaceutical firms responded to the thalidomide tragedy and subsequent
regulations by investing greater resources in preclinical and clinical testing. Trials
that previously were carried out on populations of tens or hundreds of patients soon
grew to the thousands. Within a decade of enactment of the Kefauver-Harris
Amendments in the U.S., however, even large companies with extensive research and
testing programs began to complain of a decline in the number of new drugs approved
for marketing. Drug companies then diversified into a range of other businesses
including medical devices, diagnostics, optics, cosmetics, foodstuffs, and household

goods. American firms increased sales overseas and also expanded international
research with new labs in Europe, South America, and Asia.

The period between 1960 and 1980 also saw challenges to the authority of the
medical profession in the form of feminist criticisms of patriarchy, publication of the
influential book "Our Bodies, Ourselves" (1973) by the Boston Women's Health
Book Collective, and expansion of disease-based organizations for childhood
disorders and cancer. This was also the era when "the pill"--the birth-control pill--
became a common term as pharmaceutically based birth control connected to
significant social changes.


During the past two decades, the pharmaceutical industry has brought a new wave of
medicines to market that act on the central nervous system, offer treatment for viral
and retroviral infections (including therapies for HIV/AIDS), and cure or delay the
onslaught of cancer. At the same time, new biotech medicines such as interleukins
and interferon have been able to mimic or support

Key features of the immune system. Likewise, compounds such as insulin that
historically were extracted from animals can now be produced with greater purity by
genetically modified organisms. Methods employed for drug invention have also
changed as combinatorial chemistry and high-throughput screening have automated
many features of laboratory work. As a result, companies have increasingly battled to
develop proprietary molecule libraries. Despite predictions that high research costs
and tight government regulation would prevent new firms from joining the
pharmaceutical industry, a wave of small biotech companies took center stage in the
early 1980s. Their focus on molecular biology, genetics, and genomics soon drew the
attention and involvement of established companies. By 2004, according to a survey
conducted by the Biotechnology Industry Organization, some 50% of the research
projects under way at major drug companies were based on biotechnology. The U.S.
emerged as a leading site for biotech innovation, and European firms established joint

ventures with American companies; in some cases, they even moved their research
operations to North America.

Breakthrough medicines to treat cancer, such as angiogenesis inhibitors and drugs
targeted to particular molecular features of cancer cells, and to fight HIV/AIDS, such
as reverse transcriptase inhibitors and protease inhibitors, were made by a
combination of rational design and fortuitous discovery. Several means of speeding
up the process beckoned: computational chemistry, combinatorial chemistry, and
high-throughput screening. Where little was known about the conformation of the
target molecule, electronic databases were searched and quantum mechanical
calculations were made using computers to model the target. Databases also helped
generate the structures of possible lead candidates. By the late 1980s, it appeared that
a productive route to new therapies would be found in the automated mass production
of compounds that are systematic variations of a particular molecular structure. So,
competitive advantage lay in the efficient design of syntheses to focus on the most
likely candidates. New compounds generated by this approach were subjected to very
fast screening, including a variety of physical tests as well as bioassays to determine
how a compound would be metabolized in the human body, whether it would bind to
the chosen target, and whether it would prove toxic to human beings. Although
pharmaceutical companies have invested millions of dollars in these technologies,
their worth in delivering new drugs recently has been called into question.

Alongside computational and combinatorial chemistry, genomics and biotechnology
offered the possibility to revolutionize the discovery and manufacturing of
therapeutics. The techniques and technologies employed in genetic and genomic drug
research are oriented to the molecular structures of diseases, which represent
knowledge gained over decades of biochemical research, and the molecular details of
the genetic code, which represent knowledge gained through the relatively new
science of molecular biology. Starting in the late 1940s, pharmaceutical firms relied
on microorganisms to manufacture antibiotics like penicillin in deep-tank
fermentation processes. New techniques of recombinant DNA now allow genetic
engineers to make microbes that produce a far greater range of desired molecules.

One future possibility in this field lies in gene repair by means of introducing
engineered cells.

In addition to its laboratory impacts, biotechnology emerged as a distinct
entrepreneurial business sector. Three events in 1980 were of particular importance.
First, in a pivotal Supreme Court decision, the justices decided that genetically
manipulated organisms could be patented. Second, Congress passed the Bayh-Dole
Act, allowing recipients of federal research funding to secure patents. Third,
Genentech--the first publicly traded biotechnology company--set a record in its initial
public offering, as its stock price soared from $35 to $89 per share in two minutes.
Within a few years, several thousand biotech companies were founded in the U.S.,
raised funds from venture capitalists, and, in many cases, went public at early stages.
Investors accepted surrogate markers for sales and income, including prominent
scientists on boards of directors; patents on untested medicinal compounds; and
ambitions to cure major diseases, including cancer, diabetes, and AIDS. The industry
went through successive waves of boom and bust; yet by 2005, nearly 1,500 biotech
companies were active in the U.S.The sequence from university spin-off to venture-
capital-funded firm to publicly traded company--pioneered so successfully by
Genentech--was not followed universally. For example, by the early 1980s, European
countries and the U.S. shared advanced capital markets, had well-educated scientists
and physicians, and had high-tech-based medical treatment. A biotechnology sector
did not immediately arise across Europe; instead, established pharmaceutical firms set
up new in-house research labs and invested in partnerships with biotech ventures and
academic research centers in North America. Without investors eager to take the risk
of supporting new ventures, and in the face of strict national and state laws on
effluents from production facilities, comparatively few small biotech companies were
created in Europe until the mid-1990s. At that point, a combination of government
subsidies and reduced regulatory oversight helped stimulate the growth of a biotech

Simultaneous with the business challenge posed by new biotech firms, the
pharmaceutical      industry   faced   policy    challenges   from   nongovernmental

organizations, led by disease-based activists. Patients with HIV/AIDS, breast cancer,
and other diseases mobilized to focus research agendas on their illnesses, protest drug
prices for life-saving therapies, and speed regulatory review. On the one hand,
activists attacked the benign public perception of the industry as they confronted
firms about their pricing policies and their apparent focus on the diseases and vanities
of middle-aged and older citizens in developed countries. On the other hand, they
promoted the Orphan Drug Act of 1983 and new regulations that sped regulatory
approval of medicines in the 1990s, especially for potentially life-saving drugs.
Intriguingly, comparatively fewer activists pushed for changes to drug regulation in
European countries, perhaps due to more comprehensive health care coverage. While
their origins stretch back to the 1950s, generic pharmaceutical manufacturers became
a significant industry only following the 1984 Drug Price Competition & Patent Term
Restoration Act (Hatch-Waxman), which authorized FDA to approve generics
without additional preclinical or clinical testing. As a result of the industry's growth,
of the 10,357 approved drugs listed in the 2004 edition of FDA's Orange Book, 7,602
have generic counterparts. According to the Generic Pharmaceutical Association,
drugs with annual sales of $35 billion will lose patent protection within three years.
Large firms, including Eli Lilly and Merck, have experimented with owning generic
companies; most recently, Novartis purchased two generics firms for a total cost of
$8.3 billion.

As a result, the pharmaceutical industry has faced challenges on several fronts since
1980: from a new set of competitors in the biotech industry, from generics
manufacturers, and from the end users of their products. The primary strategy for
large firms has been to focus intensively on inventing new drugs and marketing
approved molecules. Companies thus sold off the chemical, cosmetics, and other
consumer goods divisions they had built up during the 1960s and '70s. For a brief
period in the late 1990s, some firms advocated a so-called life sciences concept
intended to find synergies among medical, agricultural, and industrial biotechnology;
within a few years, however, this model was largely discarded. Safety and efficacy
regulations that were once perceived as proximate causes for diversification and

reduced profitability in pharmaceuticals were now viewed as driving consolidation
and a singular focus on inventing and marketing blockbuster drugs.

Whereas it made sense to speak of an American, German, French, or British Drug
Company as recently as a decade ago, mergers and greater cross-national R&D
investments have since rendered such delineation largely irrelevant. Between 1985
and 2005, nearly 40 major mergers produced firms of an unprecedented size and
scope in the pharmaceutical industry. In 1994, American Home Products joined with
Ayerst and Wyeth; in 1995, Glaxo merged with Welcome, and Pharmacia with
Upjohn; in 1996, Novartis was formed out of Ciba-Geigy and Sandoz; in 1999,
Aventis was created out of Hoechst and Rhône-Poulenc, formerly venerable
independent German and French firms; in 2000, Pfizer merged with Warner Lambert
before purchasing Pharmacia in 2003; and in 2004, Aventis was purchased by Sanofi-
Synthélabo, itself the product of a long string of mergers and acquisitions.
Nevertheless, the simultaneous emergence of new biotech companies has prevented
monopolistic concentration in the industry; the combined worldwide market share of
the top 30 pharmaceutical and biotechnology firms is just over 50%, and Pfizer, the
largest pharmaceutical firm, had less than 10% of global sales in 2003.

Companies’ profile

1. Ranbaxy (Revenue in 2007-2008: Rs 4,198.96 crore)

Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of
the world's top 100 pharmaceutical companies. Long a specialist in the preparation of
generic drugs, Ranbaxy is also one of the world's top 10 in that pharmaceutical
category as well. Yet, with India's agreement to apply international patent law at the
beginning of 2005, Ranbaxy has begun converting itself into a full-fledged research-
based pharmaceutical 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 the mid-2000s, the company had a number of NCEs in
progress, and had already launched its first NDDS product, a single daily dosage
formulation of ciprofloxacin. 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. Ranbaxy posted revenues
of $1.18 billion in 2004. The company, which remains controlled and led by the
founding Singh family, is listed on the National Stock Exchange of India in Mumbai.

Money lending Luck in the 1960s

Through the 1960s, India's pharmaceutical market remained dominated by foreign
drug makers. The domestic pharmaceutical manufacturing industry was limited in
large part to the dosage preparation, packaging, and distribution of existing
formulations. Like many Indian drug companies of this period, Ranbaxy linked up
with a European pharmaceutical company, and began production in 1962. The
company struck pay dirt early on, when it launched Calm pose, a generic formulation
of the hugely popular Roche discovery, Valium. Released in 1969, Calm pose
immediately placed Ranbaxy on India's pharmaceutical map. The company expanded
quickly, and by 1973, Ranbaxy opened a new factory, in Mohali, for the production
of active principal ingredients (APIs). This facility enabled the company to expand its
range of generic medications and ingredients. To finance its growth, the company
listed on the Indian Stock Exchange that year. Ranbaxy's ability to produce generic
medications at far lower cost than its branded competitors placed the company in a
strong position for international expansion, especially in less developed markets. The

   company began its internationalization early on, launching a joint venture in Nigeria.
   That operation opened a production facility in Lagos in 1977.

   Developing Research Expertise in the 1980s

   Ranbaxy expanded its production at home as well, opening a new state-of-the-art
   dosage plant in Dewas in 1983. In 1987, the company became India's leading
   antibiotic and antibacterial producer when it completed a new API plant in Toansa, in
   Punjab, that year. The Toansa facility backed up Ranbaxy's plans to enter the U.S.
   market, and in 1988, the Toansa plant received Food and Drug Administration (FDA)

   A major milestone for the company came in 1992, when it reached a marketing
   agreement with Eli Lilly & Co. The companies set up a joint venture in India to
   produce and market Lilly's branded pharmaceuticals for the domestic market. At the
   same time, Lilly agreed to begin marketing Ranbaxy's generic medications in the
   United States. In this way, Ranbaxy gained wide scale access, backed by the highly
   respected Lilly, into the world's single largest drugs market.

   Major drugs manufactured by Ranbaxy

      Simvastatin                                          Cephalexin

      Amoxy+Clav Potas Com                                 Ketorolac Tromethamine

      Amoxycillin                                          Cefaclor

      Ciprofloxacin                                        Clarithromycin

      Isotretinon                                          Cefuroxime Axetil

Major Achievements of Ranbaxy

India's largest pharmaceutical company.

      Received The Economic Times Award for Corporate Excellence for 'The Company of the
       Year 2002-2003'.

      Ranbaxy is among the elite club of Million Dollar Companies.

      Ranbaxy received India's first approval from USFDA for an Anti Retroviral (ARV) drug
       under the U.S. President's Emergency Plan for AIDS Relief.

2. Dr. Reddy's Laboratories (Revenue in 2007-2008: Rs 4,162.25 crore)

Dr. Reddy's Laboratories is India's leading pharmaceutical company with presence in over 100
countries. 's manufactures a range of products such as Active Pharmaceutical Ingredients,
Generic & Branded Finished Dosages, Specialty Pharmaceuticals, and Bio pharmaceuticals‟.
Reddy's Laboratories was founded in 1984 by Dr Anji Reddy. In 1986, Dr. Reddy's went public
and entered international markets with exports of Methyldopa. In 1987, Dr. Reddy's obtained its
first USFDA approval for Ibuprofen API and started its formulations operations. In 1988, Dr.
Reddy's acquired Benzex Laboratories Pvt. Limited to expand its Bulk Actives business. In
1990, Dr. Reddy‟s entered a new territory when it, for the first time in India, exported
Norfloxacin and Ciprofloxacin to Europe and Far East. In 1993, Dr. Reddy's Research
Foundation was established and the company started its drug discovery programme. In 1994, Dr.
Reddy launched a GDR issue of US$ 48 million. In 1995, the company set up a joint venture in
Russia. In 1997, Dr. Reddy's became the first Indian pharmaceutical company to out-license an
original molecule when it licensed anti-diabetic molecule, DRF 2593 (Balaglitazone), to Novo
Nordisk. In 1998, Dr. Reddy's licensed anti-diabetic molecule, DRF 2725 (Ragaglitazar), to
Novo Nordisk. In 1999, the company acquired American Remedies Limited, a pharmaceutical
company based in India. In the year 2000, became the first Asia Pacific pharmaceutical
company, outside Japan, to be listed on the New York Stock Exchange. In 2001, Dr. Reddy's
Laboratories became India's third largest pharmaceutical company with the merger of Cheminor
Drugs Limited, a group company. In 2002, Dr. Reddy's made its first overseas acquisition - BMS
Laboratories Limited and Meridian Healthcare in UK. In 2003, Dr. Reddy's launched Ibuprofen,
first generic product to be marketed under the "Dr. Reddy's" label in the US. In 2006, Dr.
Reddy's achieved revenue of US$ 1 Billion. In the same year, Dr. Reddy's acquired Betapharm-
the fourth-largest generics company in Germany. Today, Dr. Reddy's Laboratories is leading
pharmaceutical company in India in terms of turnover and profitability

Product category

Active Pharmaceutical Ingredients (API): Dr. Reddy's Laboratories product list spans 24 major
chemistries including stereo-selective synthesis, cryogenics, hydrogenations and cyanations. It
has filed 84 US DMFs, the highest in India and second highest in the world. Custom
Pharmaceutical Services: Dr. Reddy's executes cost-effective and time-bound projects for its
customers, and provides them cGMP-compliant products manufactured in FDA-inspected, ISO-
certified facilities Generic Dosages: Dr. Reddy's Lab is a leading generic drugs manufacturer. It
is the fourth largest player in Germany after the acquisition of beta harm. The company has
expertise in customer-specific packaging, compliance packaging, anti-counterfeit packaging, and
has won several awards globally for its packaging efforts, including the Asia Star, Ameristar and
WordStar awards.

Branded Dosages: Dr. Reddy's brands such as Omez (Omeprazole), Nise (Nimesulide), Stamlo
(Amlodipine), Ciprolet (Ciprofloxacin), Enam (Enalapril) and Ketorol (Ketorolac) are leaders in
their category in several countries.

Discovery Research:

Dr. Reddy's is actively involved in drug-discovery and clinical development programs. Specialty
Pharmaceuticals: In the field of specialty pharmaceuticals, Dr. Reddy's deals in deals acquired
proprietary technologies, internally developed proprietary drug-delivery platforms, and current
internal compounds under pre-clinical and clinical development. Biopharmaceuticals: Grafeel
(Filgrastim) was the first biologics product by Dr. Reddy's to enter the market. The company's
second product Reditux (Rituximab) is the first biosimilar monoclonal antibody to be developed
and launched anywhere in the world.

Major Achievements of Dr. Reddy's Laboratories:

      Dr. Reddy's is the 1st Asia Pacific pharmaceutical company, outside Japan to be listed on
       the New York Stock Exchange.

      Dr. Reddy's biologics product Reditux (Rituximab) is the first biosimilar monoclonal
       antibody to be developed and launched anywhere in the world.


Active Pharmaceutical Ingredients (API)

Our capabilities span 24 major chemistries including stereo-selective synthesis, cryogenics,
hydrogenations and cyanations. Our strong IP, Regulatory and Analytical skills are evident in the
84 US DMFs we have filed, the highest in India and second highest in the world. Our
manufacturing facilities are capable of supporting the product development effort through the
concurrent scale-up and piloting of feasible routes as they are developed by the R&D teams.
State-of-the-art equipment and instruments give us the edge to compete globally. Our operations
are fully integrated through supply-chain and ERP systems (SAP R/3), which enable seamless
response to customers, all the while keeping the environment around our plants clean, green and

Custom Pharmaceutical Services (CPS)

In an industry cluttered with chemical manufacturers, CPS stands out because of our
understanding of the pharmaceutical business and the associated expertise needed. Rather than
just being a chemical provider, CPS offers a service mix covering the entire pharmaceutical
value chain. We execute cost-effective and time-bound projects for our customers, and provide
them with cGMP-compliant products manufactured in FDA-inspected, ISO-certified facilities. A
team of experienced project managers ensures smooth progress of projects from initiation to
closure in order to avoid any cost and time overruns.

Generic Formulations

Geographic diversification, cost containment, strengthening our product portfolio and building
scale – we at Dr. Reddy‟s are strong in all these aspects in the generics space. We are now the
fourth largest player in Germany after the acquisition of beta harm, and are constantly looking
for opportunities to maximize the potential of our current and future portfolio in different
territories across the US and EU. We have the necessary expertise for customer-specific
packaging, compliance packaging, and anti-counterfeit packaging. In fact, Dr. Reddy‟s has won
several awards globally for our packaging efforts, including the Asia Star, Ameristar and
WordStar awards.

Branded Formulation

Dr. Reddy‟s brands are today recognized and trusted across several continents. Brands like Omez
(Omeprazole), Nise (Nimesulide), Stamlo (Amlodipine), Ciprolet (Ciprofloxacin), Enam
(Enalapril) and Ketorol (Ketorolac) are leaders in their category in several countries, with many
of them being used by more patients than use the innovator‟s product. Over 1.5 million patients
across the world take „Omez‟ for their acid peptic disorders every single day! Entrepreneurship,
coupled with the will to make a difference drives our 2,000-strong field force to reach out to over
210,000 doctors and 115,000 pharmacies in more than 40 countries across the world.


Discovery Research

We have put in place a state-of-the-art, fully-integrated discovery infrastructure to strengthen our
effort to discover and develop therapeutically useful New Chemical Entities (NCEs) and market
them globally. Our two Discovery Research centers – one in Atlanta, USA, and the other in
Hyderabad, India, have more than 300 scientists actively involved in a number of drug-discovery
and clinical development programs.

Differentiated Formulations

Our Differentiated Formulations business deals with assets like acquired proprietary
technologies, internally developed proprietary drug-delivery platforms, and current internal
compounds under pre-clinical and clinical development. Our initial global therapeutic area focus
is on dermatology and oncology, two therapeutic areas that best leverage our internal assets. A
key component of the strategy in this area is a strong, targeted business development effort to
accelerate market entry


Our Biologics Development Center spans an area of 36,000 sq. ft., with development and
manufacturing suites for both E. coli and mammalian cell culture. It caters to the highest
development standards of cGMP, GLP and applicable levels of bio-safety. Grafeel (Filgrastim),

our first biologics product to enter the market, enjoys a market share of almost 50% in India and
has been able to reach many more patients than the innovator‟s product due to its affordability.
Our second product Reditux (Rituximab) is the first biosimilar monoclonal antibody to be
developed and launched anywhere in the world.

3. Cipla (Revenue in 2007-2008: Rs 3,763.72 crore)

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire of
nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial
highhandedness. The fire was to blaze within him right through his life.In 1935, he set up The
Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as
Cipla. He gave the company all his patent and proprietary formulas for several drugs and
medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public
limited company with an authorised capital of Rs 6 lakhs. The search for suitable premises ended
at 289, Belasis Road (the present corporate office) where a small bungalow with a few rooms
was taken on lease for 20 years for Rs 350 a month.

Cipla was officially opened on September 22, 1937 when the first products were ready for the
market. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by
Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India
can now boast of a concern, which will supersede all existing firms in the magnitude of its
operations. India has lagged behind in the march of science but she is now awakening from her
lethargy. The new company has mapped out an ambitious programme and with intelligent
direction and skillful production bids fair to establish a great reputation in the East. "

July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma Gandhi,
honored the factory with a visit. He was "delighted to visit this Indian enterprise", he noted later.
From the time Cipla came to the aid of the nation gasping for essential medicines during the
Second World War, the company has been among the leaders in the pharmaceutical industry in
India On October 31, 1939, the books showed an all-time high loss of Rs 67,935. That was the
last time the company ever recorded a deficit.

In 1942, Dr Hamied's blueprint for a technical industrial research institute was accepted by the
government and led to the birth of the Council of Scientific and Industrial Research (CSIR),
which is today the apex research body in the country.

In 1944, the company bought the premises at Bombay Central and decided to put up a "first class
modern pharmaceutical works a decided to acquire land and buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence manufacturing the
basic chemicals required for pharmaceuticals.

In 1946, Cipla's product for hypertension, Serpinoid, was exported to the American Roland
Corporation, to the tune of Rs 8 lakhs. Five years later, the company entered into an agreement
with a Swiss firm for manufacturing foromycene. Dr Yusuf Hamied, the founder's son, returned
with a doctorate in chemistry from Cambridge and joined Cipla as an officer in charge of
research and development in 1960. In 1961, the Vikhroli factory started manufacturing
diosgenin. This heralded the manufacture of several steroids and hormones derived from

Cipla has registered excellent growth for the year FY01 with 38% improvement in top line and
34% increase in bottom line. The company‟s entry into generic business in a big way has paid
rich dividend. Cipla‟s recent offer for anti-AIDS drugs to South African countries will enhance
exports. Strong presence in asthmatic, antibiotic and cardiovascular segments will help to retain
leadership position in the domestic market. Cipla is likely to emerge as a leading global player in
anti-AIDS and inhaler segments. We estimate the company to outperform most peers in the
current year on account of developments as mentioned in the report. Cipla‟s presence in the
majority of therapeutic segments offering a wide range of products has helped to maintain more
than 35% growth rate compared to the 10.1% growth rate of the market in FY 2001. The
company has introduced more than 100 generic products in the domestic market in FY01.Cipla
has most modern manufacturing facilities approved by the overseas regulatory authorities. The
company has registered majority of its products in all leading export markets to enhance exports.

Early entry in generics business

Cipla was the first one to enter into the competitive generics business and has occupied the
leadership position in this segment. The company offers more than 100 different generic

products in all major therapeutic categories. This is a very specialized business driven by the
retailers. The retailers get better margins and hence push the generic products. Cipla has been
able to achieve 38% growth in top line in FY01 mainly due to its thrust on generics. Cipla‟s
margins for FY01 have improved to 20.6% from 19.9% in FY00 even with the entry into the
most competitive generic business. Today (2007), Cipla is the world's largest manufacturer of
antiretroviral drugs (ARVs) to fight HIV/AIDS, as measured by units produced and distributed
(multinational brand-name drugs are much more expensive, so in money terms Cipla medicines
are probably somewhere down the list). Roughly 40% of HIV/AIDS patients undergoing
antiretroviral therapy worldwide take Cipla drugs. Ranked third in Generic market share
statistics in South African Private Sector.Because Indian law from 1972 has allowed no (end-
product) patents on drugs, and provided for compulsory licensing, Cipla was able to manufacture
medicines which enjoy patent monopoly in certain other countries (particularly those where
large, multinational pharmaceutical companies are based). By doing so, as well as by making an
executive decision not to make profits on AIDS medication, Cipla reduced the cost of providing
anti retroviral to AIDS patients from $12,000 and beyond (monopoly prices charged by
international pharma conglomerates) down to around $300 per year. Today they are able to do so
for under $150 per patient per year. While this sum remains out of reach for many millions of
people in Third World countries, government and charitable sources often are in a position to
make up the difference for destitute patients.

The customary treatment of AIDS consists of a cocktail of three drugs. Cipla produces an all-in-
one pill called Triomune which contains all three substances (Lamivudine, stavudine and
Nevirapine), something difficult elsewhere because the three patents are held by different
companies. One more popular fixed dose combination is there, with the name Duovir-N. This
contains Lamivudine, Zidovudine and Nevirapine

Leadership in inhaler segment

Cipla is the market leader in anti asthmatic inhaler segment with over 70% market share. This
segment is growing at more than 20% per annum, mainly due to increase in pollution leading to a
spurt in the number of asthma cases in patients. One of its major products, Asthalin inhaler has
annual sales of more than Rs. 30.0 Cr. and has growth rate of more than 30%. The company
offers full range of inhalers, rot halers and spacers that have gained excellent acceptance among

the asthma patients. The company has introduced CFC-free, environment-friendly Budecort
inhalers for the first time in India. The CFC- free products have a huge export potential .The
inhaler therapy is preferred to tablets since the dose required is about 1/ 10 of the oral dose.
Moreover, the drug directly goes to the lung and gives instantaneous relief to the patient. Cipla is
putting up a dedicated facility at Kurkumbh at a capital outlay of Rs. 60 Cr. for the manufacture
of inhalers. We feel that the company will be able to maintain a leadership position due to the
entire range of inhalers and with the advantage of economies of scale.

Product category

    Cough, Cold‟s & Flu

    Vitamins And Minerals                                Foot Care

    Sports Care / Muscle Building                        Foot Care

    Skin Care                                            Food Supplements

    Probiotics / Indigestion                             Eye Care

    Pain Care                                            Arthritic / Rheumatic Agents

    Oral Hygiene                                         Antibiotics / Antibacterial

    Nutraceuticals & Tonics                              Anticancer Drugs

    Low - Calorie Sweetener                              Anti-emetics

    Life Style Products                                  Antifungal

    Health Drinks                                        Antihelmintics

    Hair Care

    Antihistamines

    Anti malarial

    Ant Parkinson Agents

        Antiviral

        Asthma / COPD Drugs

        Cardiovascular Drugs

        CNS Drugs

        Gastrointestinal Drugs

        Hypoglycemic

        Migraine Medications

        Ophthalmic Drugs

        Osteoporosis

        Urology Drugs

4. Sun Pharma (Revenue in 2007-2008: Rs 2,463.59 crore)


Established in 1983, Sun Pharma was a start-up company with five products. Since 1996, Sun
has grown largely through a combination of internal growth, and acquisition of other
pharmaceutical companies. For example, it bought US-based Caraco Pharm Labs, and ICN
Hungary. A planned acquisition of Israeli Taro Pharmaceuticals initiated in March 2007 was
terminated by the Taro board in May 2008; this was subsequently followed by an unsolicited
tender offer in June 2008, the outcome of which remains to be determined.

Product category

         Cardio vascular System                          Hormones & Contraceptives

         Central Nervous System                          Genitourinary System

       Antimicrobials & Anti-infective                    Immunology Skin & Cosmetics

       Nutrition                                          Metabolism
                                                           Poisoning
       Eye, ENT
                                                           Anesthetics Surgical & Diagnostics
       Allergic Disorders

Alimentary System

In the Indian prescription market, we are ranked 6th by prescription share, with market share at
3.3% and a growth rate that is faster than industry. Adding to market share and keeping this
customer focus remains a high priority area for the company.

Customer focuses: Specialty therapy area leadership

Currently, marketing is structured into 17 divisions each of which is customized to deliver a
promotional message to a certain class of specialty customer.

These marketing divisions offer a range of prescription brands that cover chronic therapy areas
such as cardiovascular, CNS,


Gastrointestinal, respiratory, ophthalmology, orthopedics etc. These divisions have independent
sales and product management teams that work to create a prescription pull Psychiatry and
neurology account for over 29% of the brands we sell in India and this is the therapy area with
the oldest product range, including some products that the company started with. Cardiology,
oral hypoglycemic agents and gastroenterology account for 42% of domestic sales leadership.
Twelve large brands feature among India's largest selling prescription brands. The top 10 brands
account for 20% of prescription sales in India, hence reducing dependence on any single brand.
We update our product offering with at least 4 new brands introduced in each of our divisions
every year. For several of these products, we apply technology to create a product that is much
more convenient for the patient to take. This quick new product introduction helps us bring the
latest products to the Indian market.

5. Lupin (Revenue in 2007-2008: Rs 2,215.52 crore)

Lupin Limited, headquartered in Mumbai, India has successfully positioned itself as a
Transnational Pharmaceutical Company, with a wide global footprint. The Company develops
and markets a wide range of quality, affordable generic and branded formulations and APIs in
multiple markets across the world.

Business Mix

The Company has gained recognition as the world‟s largest manufacturer of Tuberculosis drugs.
Over the years, the Company has moved up the value chain and has not only mastered the
business of certain intermediates and APIs, but has also leveraged its strengths to build a
formidable formulations business. It has a significant presence in Cephalosporin‟s,
Cardiovasculars (prils and statins), and Dialectology, Asthma and NSAIDs therapy segments.
Over the last four years, the Company‟s business mix has improved with close to 70% of its
revenues coming from formulations and 30% from APIs.

Global Footprint

The Company has a wide onshore and offshore presence with its products available in close to 70
countries. In terms of overall revenues, the overseas business constitutes close to 55%, while the
balance comes from the domestic market. Lupin has retained a stronghold in India growing

ahead of the industry and has achieved a formidable position in many segments leveraging its
sound marketing prowess and a wide product basket.

The US is Lupin‟s largest market overseas where it has developed a robust branded and generic
business. Over a period of four years, Lupin has developed a business of US$ 200 mn in the US
And has been recognized as one of the fastest growing Companies in this market. The Company
aspires to replicate this success in other Advanced Markets such as Europe, Japan and Australia.
During 2007; Lupin fast tracked its growth trajectory through two acquisitions. While the
acquisition of Kyowa positioned the Company amongst the top ten generic pharma Companies in
Japan; another acquisition in India provided it a springboard to leap ahead in the CRAMS space.


The Company‟s intellectual pool of over 400 scientists is constantly engaged in path breaking
research. Its focus on drug discovery and advanced drug delivery systems research has resulted
in significant progress in its Novel Drug Discovery & Development program and development of
platform technologies that are being used to develop value-added generic pharmaceuticals.
Company‟s strong focus on creating Intellectual Property (IP) assets has resulted in generating
revenue streams through IP. The Company‟s overall research prowess enables it to master
cutting edge science and technology.The Company has moved up the value chain since inception
in terms of its products and geographies. Currently, it commands a formulation business of over
Rs 9,496 mn spread across the globe. Lupin has created a strong foothold in the Advanced
Markets of USA, Europe, Japan, Australia and emerging markets of India and some of the other
Rest of World countries.

The Company‟s wide product basket comprising formulations from Cephalosporin‟s, CVS, CNS,
Anti-Asthma, Anti-TB, Dialectology, Dermatology, GI, and other therapy segments have been
trusted by its patients and doctors across geographies.

Formulations business constitutes close to 70% of Lupin‟s business, and in terms of geographies,
USA is its largest market outside India. 55% of the overall business of the Company comes from

International Markets; hence Lupin has successfully nudged closer to its vision to be a research
led international pharmaceutical company

Our Values

        Superior Performance                              Customer Orientation

        Integrity                                         Working Together

        Entrepreneurship



        To develop proper social, cultural, scientific and spiritual attitudes amidst the rural

        To instill in villagers, especially women, children, youth and older people an urge, and
         keenness to work for their own development.

        To develop an attitude towards living a healthy life and taking concrete steps in that


        To help create more job opportunities particularly for unemployed youth and women.

        To strengthen primary occupations like agriculture and animal husbandry through higher
         output and value addition.

        To strengthen secondary occupations such as cottage industry, handicrafts and service
         sector through quality enhancement and wider market acceptability.


To create basic infrastructure facilities for the community such as

        Provision for drinking water

        Building internal roads

        Basic Sanitation

        Formal Education

        Community centers

        Electrification

        Training cum production centers etc

Scale Up Strategy

The Company believes that to have visible impact of its CSR operations scalability is important.
Therefore, company closely works with Central or State Government departments as well as with
international organizations to achieve its objectives. The convergence and collaborations are the
integral part of its strategy

Product category

Product                    Therapeutic Segment

Tonact                          CVS

R-Cinex                            Anti-TB

AKT                             Anti-TB

Ramistar                        CVS

Gluconorm                          Anti-Diabetic

Odoxil                          Anti-Infective

Rablet                             Gastro Intestinal

L-Cin                           Levofloxacin

Akurit                          Anti-TB

Clopitab                      CVS

6. Aurobindo's (Revenue in 2007-2008: Rs 2,080.19 crore)

"To become Asia's leading and one among the top 15 generic Pharma companies in the world, by

“Aurobindo's mission is to become the most valued Pharma partner for the World Pharma
fraternity by continuously researching, developing and manufacturing a wide range of
pharmaceutical products complying with the highest regulatory standards”.

Aurobindo Pharma has identified international operations, catering to over 100 countries, as a
major engine of growth and expanding global network of marketing and manufacturing
operations across countries like China, Brazil, Japan, Netherlands, South Africa, Thailand, UK,
USA, Russia, Netherlands and many more which will further expand its international reach.

Subsidiaries in strategic pharmaceutical markets have positioned it to ride the challenges,
powered by the strengths, the brilliance and hard work of its global workforce, stellar track
record, ever-growing infrastructure and cost-competitiveness.

Business Strategy

The robustness of business strategies are reviewed by the management at regular intervals. The
business   plans    are   modified   and   improvements     made    as   an   ongoing    process.
The medium term strategy of Aurobindo Pharma is to continuously globalize the intellectual
property assets and enhance value to shareholders and customers. In global markets, the
Company shall retain and enhance cost efficient quality leadership in semi synthetic penicillin‟s,
cephalosporin‟s, newer anti infective and lifestyle disease drugs. It is the Endeavour of the
Company to achieve this by resolving complex chemistry challenges, improving process
efficiencies, adopting global scale manufacturing and using cost effective market networks
throughout South East Asia, Africa and Latin America.Aurobindo Pharma shall repeat its success
and emerge as a major player in regulated markets. The Company will obtain regulatory

approvals by filing Drug Master Files (DMF) and Abbreviated New Drug Applications (ANDA)
in lifestyle disease drugs and sterile and non-sterile cephalosporin‟s having substantial entry

The Company‟s competitive advantage is in capturing a large portfolio of approvals, backed up
by a global standard R&D effort that offers several patented non-infringing processes and
intellectual properties, and a cost efficient mega manufacturing environment complying to US
FDA and EU authorities.

The Company shall forge alliances with original research companies in the area of custom
synthesis. The existing relationships and credibility will help Aurobindo Pharma to acquire a
significant part of bulk manufacturing of original research companies into its units. The
corporate plans are to ensure growth through organic means, and by adopting strategic joint
ventures and alliances. The objective is to maximize the revenues and reduce risks

The long term growth strategies being put in to action include, Develop a broad portfolio of
DMFs/ANDAs through non-infringing processes and intellectual properties and become a
significant player in the generics market, especially in the regulated markets

Organizational Strengths

Aurobindo Pharma has consciously built on its inherent strengths. The Team Aurobindo works to
consolidate them further. Some of the identified corporate strengths are:

The Company remains customer centric. This focus ensures that product changes are made to
changing requirements. Updations are a regular/continuous process. The Company works for
customer retention, and gains from repeat orders. A strong R&D led Organization; Aurobindo
Pharma is innovative in its manufacturing processes. It has adopted the latest in technology,
which has additionally improved on productivity and product quality. Possess a strong
manufacturing infrastructure. This is being put up for international regulatory approval.

There is a broad product portfolio. Brands are being established, and are gaining significant
strengths in the chosen market.

Produce the quality that the customers and industry want. More important, the Company
Endeavour‟s to produce the best that good health needs. Aurobindo Pharma delivers on time.
This is true of supplies to customers, project completion, financial commitments or any of the
routine transactions.

The Company is professionally run, with a competent and highly motivated team. The Company
sees the business as part of the larger picture that improves health, adds to quality of life, and in
the process creates wealth for all its stakeholders‟ %. We hope to bring it down to nearly 6% by

Product category

       Anti allergic                                        Antipyretic

       Anti diabetic                                        Anti retro Val

       Anti erne tic                                        Anti viral

       Anti fungal                                          Antibiotic

       Anti malaria                                         Cardio vascular

       Anti obesity                                         CNSGI tract

       Histamine                                            lifestyle

7. GlaxoSmithKline (Revenue in 2007-2008: Rs 1,773.41 crore)

Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is
one of the oldest pharmaceuticals company and employs over 3500 people. Globally, we are a
USD 42 billion, leading, research-based healthcare and pharmaceutical company. In India, we
are one of the market leaders with a turnover of Rs. 1500 crore and a share of 6.2 per cent*. At
GSK, our mission is to improve the quality of life by enabling people to do more, feel better and
live longer. This mission drives us to make a real difference to the lives of millions of people
with our commitment to effective healthcare solutions. The GSK India product portfolio includes

prescription medicines and vaccines. Our prescription medicines range across therapeutic areas
such as anti-infective, dermatology, gynecology, diabetes, cardiovascular disease and respiratory
diseases. The company is the market leader in most of the therapeutic categories in which it
operates. GSK also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B,
invasive disease caused by H, influenza, chickenpox, diphtheria, peruses tetanus and others.

With opportunities in India opening up, GSK India is aligning itself with the parent company in
areas such as clinical trials, clinical data management, global pack management, sourcing raw
material and support for business processes including analytics.GSK‟s best-in-class field force,
backed by a nation-wide network of stockiest, ensures that the Company‟s products are readily
available across the nation. GSK has two manufacturing units in India, located at Nasik and
Thane as well as a clinical development centre in Bangalore. The state of art plant at Nasik
makes formulations while bulk drugs are manufactured at Thane.

Being a leader brings responsibility towards the communities in which we operate. At GSK we
have a Corporate Social Responsibility program that works towards fulfilling basic healthcare,
education and other developmental needs of 15 tribal villages near Nashik. We work with
underprivileged children from the slums of Mumbai, taking care of their developmental and
health needs. GSK also runs an HIV/AIDS helpline - considered to be a pioneering effort in
India that supports those in distress and despair.

GSK is committed to developing new and effective healthcare solutions. The values on which
the group was founded have always inspired growth and will continue to do so in times to come.

Corporate Social Responsibility

It is a research-based pharmaceutical company. Its mission is to improve the quality of human
life by enabling people to do more, feel better and live longer.

It believes that through our business we make a valuable contribution to society by developing
and marketing medicines which improve people‟s lives. Our philosophy is to target support to
selected programs that are innovative, sustainable and which produce tangible results.

CSR in India

Company follows the rationale that company is linked closely to the communities in which
company operates- locally, nationally or globally. Company cannot exist in isolation. All
company‟s actions are focused around this feeling of being centered. Company stated mission
statement is “To lend a helping hand to the less fortunate in our society through the support of
women, children and the aged in the areas of health and education.” Implementing this
philosophy in spirit, company makes a positive contribution to the communities in which
company operate, and invest in health and education programs and partnerships that aim to bring
sustainable improvements to under-served people.

Core value – we care

Being a premier pharmaceutical company in the country, GSK‟s core value is to be a good
corporate citizen. It is committed to the communities in which it works. Support to the
community through charitable initiatives is the way through which it invests in society.

Tribal Welfare

Our initiatives are primarily focused towards women & children and are directed in the areas of
Health and Education. We believe that these areas are related and of direct concern to GSK. If
there is proper education, one will eventually learn to be hygienic, and if one is hygienic, will
one remain healthy. The organization facilitates in educating masses on good practices of healthy

At GlaxoSmithKline India, the activities towards community development are attached to the
Corporate Communications Department. Since 1970, the Company has been implementing
various social responsibility activities apart from statutory ones. The following Community
Development activities are carried out through the company‟s social work unit situated at its
Head Office in Mumbai.

What Glaxo do

We provide money, medicines, time and equipment to non-profit organizations to help improve
health and education in under-served communities. We focus on programs that are „innovative,
sustainable and bring real benefits to those most in need‟

Major points about Glaxo

      In India, GSK is one of the market leaders with a turnover of Rs. 1500 crore and a share
       of 6.2 per cent [source: IMS Indian Purchase Audit (IIPA), August 2007]
      GSK leads in several therapeutic segments - dermatology, anti-parasitic, hormones, and
       anti-infective (source: IIPA, August 2007)
      GSK has six products in the top 50 brands, and the top five GSK products are
       Augmentin, Zinetac, Calpol, Phexin, and Betnesol (source: IIPA, August 2007)
      GSK‟s vaccines division is ranked first in a fast-growing vaccines market. Some leading
       products in India are Havrix, Varilrix, Hiberix, Engerix B and Tritanrix (source: IIPA,
       August 2007)
      GSK India‟s R&D centers at Thane and Nasik have been granted recognition by the
       Department of Scientific and Industrial Research, Government of India
      The number of clinical studies conducted in India is rapidly growing across a range of
       therapy areas
      GSK India‟s social responsibility programmes focus on development of under developed
       villages, women and children , specifically in the areas of healthcare and education

Principal Subsidiaries:

Group Ltd: Glaxo Group Ltd. (U.K.); Eschmann Bros. & Walsh Ltd. (U.K.); Evans Medical Ltd.
(U.K.); Farely Health Products Ltd. (U.K.); Glaxo Animal Health Ltd. (U.K.); Glaxochem Ltd.
(U.K.); Glaxo Group Research Ltd. (U.K.); Glaxo Operations UK Ltd.; Glaxo Pharmaceuticals
Ltd. (U.K.); Glaxomed Ltd. (U.K.); W. H. Deane (High Wycombe) Ltd. (U.K.); Macfarlen Smith
Ltd. (U.K.); Glaxo Export Ltd. (U.S. and U.K.); Matburn (Holdings) Ltd. (U.K.); Glaxo Inc.
(U.S.); Glaxo India Ltd. (40%); Glaxo Korea Co. Ltd. (50%); Glaxo Nigeria PLC (40%);
Chongqing Glaxo Pharmaceuticals Ltd. (50%)


We have set out three new strategic priorities that aim to increase growth, reduce risk and
improve GSK‟s long-term financial performance:

      Grow a diversified global business

      Deliver more products of value

      Simplify GSK‟s operating model

It also markets other products, many of which are among the market leaders:

Over-the-counter (OTC) medicines including Gaviscon and Panadol

      Dental products such as Aqua fresh and MacLean‟s

      Smoking control products Nicorette/Niquitin

      Nutritional healthcare drinks such as Lucozade, Ribena and Horlicks

Product category

GlaxoSmithKline is a major pharmaceutical player in all types of health related products,
including prescription medicines as well as over-the-counter medicines. Prescription medications
include Amoxil, brand name for amoxicillin, Augmentin, Flonase, Paxil, Tagamet, Wellbutrin,
Zantac and Zyban, to name just a few. Then there are the over the counter products. These
include Abreva, Citrucel, Nicoderm, Nicorette , Polident, Poligrip, Sensodyne, and Tums. In
addition to these, Glaxo Smith Kline also creates vaccines including DPT or diphtheria, pertussis
and tetanus, and hepatitis vaccines.

      Analgesic                                          Gastrointestinal

      Anti-Infective                                     Gynecology

      Anti-Inflammatory                                  Immunosuppressant‟s

      Anti-Parasitic                                     Nutritional

      Cardiovascular                                     Respiratory

      Dermatology                                        CNS

      Diabetes

      Endocrine

GlaxoSmithKline operates principally in two industry segments:

      Pharmaceuticals (prescription pharmaceuticals and vaccines)

      Consumer Healthcare (over-the-counter medicines, oral care and nutritional healthcare).
       The businesses in the Healthcare Services segment (primarily Clinical Laboratories and
       Diversified Pharmaceutical Services).

8. Cadila (Revenue in 2007-2008: Rs 1,613.00 crore)


Cadila Pharmaceuticals Ltd (CPL) has bagged the All-India Biotech Association (AIBA) award
for 1990-00, for the development of biotech vaccine and medicines in the industrial sector. The
AIBA awards, instituted in 1997-98, are given in two cat goriest -- to industrial houses for
biotech innovation including the launch of new products out of indigenous research and
development and to individual scientists. According to a company release, the award is a major
fillip to the company, which had joined hands with major national institutions in the field of
biotechnology for outsourcing their findings on a professional basis. One such effort was by
collaborating with the National Institute of Immunology to market on a `no profit - no loss'-basis
reprove, an immunomodular drug to replace the multi-drug therapy.

The other biotech product that was spun off by the Centre for Biochemical Technology and
currently, marketed by Cadila was sodium hyaluronate.

The CPL has ongoing collaborative efforts with major national and international research
laboratories including IMTECH, Chandigarh, NII and CBT, Delhi and Trieste, Italy. -- Our
Bureau Cadila Laboratories was founded in 1952 by Shri Ramanbhai Patel (1925-2001),
formerly a lecturer in the L.M. College of Pharmacy, and his business partner Shri Indravadan
Modi. The company evolved over the next four decades into one of India's established
pharmaceutical companies.

Business Description

Cadila was formed in 1995 following differences between the second generations of promoters
(Patel and Modi families) of the erstwhile Cadila Laboratories Ltd, which was founded in 1952.
As a part of the restructuring, the five group companies - Cadila Laboratories Ltd (CLL), Cadila
Exports Ltd, Cadila Chemicals Ltd, Cadila Antibiotics Ltd and Cadila Veterinary (P) Ltd - were
merged and subsequently de-merged to form three separate companies: Cadila Healthcare Ltd
(Cadila), Cadila Pharmaceuticals Ltd (CPL) and Cadila Labs Ltd (CLL). Cadila, which belonged
to the Patel group, started functioning under the umbrella brand name of Zydus to establish a
new identity.

With a net sales turnover of around Rs 5,282.3 million for the year ending March 2002, the
company ranks (ORG January 2002 - Rank 8) among the leading players in the domestic market
on size. About 61% of the company‟s business comes from domestic formulations sales. The
balance is derived from exports (16% of revenues), domestic active pharmaceutical ingredients
(13%), generics (4%) and over-the-counter (OTC) drugs (5%).

In April 2002, Cadila acquired Vadodara-based Banyan Chemicals for Rs 205 million. Banyan
Chemicals has a US Food and Drugs Administration (FDA) approved facility to manufacture
high-value active pharmaceutical ingredients (API) and will act as a launch pad for Cadila‟s
foray into the regulated markets in the US.

Active pharmaceutical ingredient plant

      Cadila Healthcare or Zydus Cadila – an India based pharmaceutical company having
       presence around the world.

      Cadila Healthcare Ltd., under the aegis of the Zydus Group is set up in the year 1995 and
       have international presence in countries as -

      Zydus Healthcare (USA) LLC, our subsidiary in the US.

      Zydus Pharmaceuticals USA. Inc supplies finished dosage formulations to the US generic

      Zydus France SAS France. With product basket of 90 generic registrations.

      Zydus Healthcare Brazil Limited, subsidiary in Brazil set up to market formulations.

The Cadila Healthcare group exports branded formulations to 43 countries around the
worldwide. For growth in exports, Zydus Cadila has been focusing on introducing new
molecules. Cadila Healthcare has 560 product registrations. Cadila Healthcare overall therapy
segment is focused on cardiovascular, gastrointestinal and pain management to drive growth in
exports. The Cadila Healthcare group markets APIs to 40 countries worldwide Activities:

Cadila Healthcare product portfolio covers areas like formulations, Active Pharmaceutical
Ingredients (API), diagnostics, health & dietetic foods, skin care and animal health-care.

Cadila Healthcare core divisions includes

      Zydus Cadila.                                        Zydus Biogen.

      Zydus Alidac.                                        Zydus Neurosciences.

      Zydus Medica.                                        Zydus Vaccicare.

Cadila Healthcare products cover Therapeutic Segments like – Anti-Infective, Anti-Epileptic,
Anti-Allergic, Anti-Depressant, Gastrointestinal, Anti-Osteoporosis, Sedative, Women's
Healthcare, Anti-Rheumatic, Anti-Diabetic, Anti-Psychotic, Tranquilizers, Pain Management
and Tadalafil.

Product category

Oflin OD, Clodus, NeoLoridin, Ven-OD, Isbis, Bonmax, Cartup, Zyquin, Oxeptal, Zytonin,
Cefinar, Zycolchin, Dactive, Vageston, Xet, Aldren, Serlin, Mexate, Epsolin, Euglim, Olandus,
Divalpro, Topiram, Cytolog, Stilnite, Mifegest, Linid, Mosadac, Espra, Salazar, Lamidus, Zoldac
and Zydalis.


From nine pharmaceutical production operations in India as well as a major R&D operation
Zydus Cadila develops and manufactures a large range of pharmaceuticals as well as diagnostics,

herbal products, skin care products and other OTC products. The company also makes Sugar
Free, India's most popular artificial sweetener, Neutrality, India's most popular cholesterol-free
margarine. Polycarp is a five-in-one polyp ill that combines moderate levels of five different
medications in a single, one-a-day pill aimed at reducing heart attacks and strokes. A 2009 study
found that the combination of three blood pressure medications, a cholesterol reducer and aspirin
cut the risks of heart attack and stroke in half, with no increase in adverse effects compared to
taking the components separately.


Cadila Healthcare has registered a turnover of Rs 4211 million for the year ended 31st March
2007. Cadila Healthcare has posted Net Profit to the tune of Rs 389 million for the year ended
31st March 2007.

9. Aventis Pharma (Revenue in 2007-2008, Rs 1,613.00 crore)

Aventis Pharma or Aventis Pharma Limited is the Indian arm of the recently merged
pharmaceutical companies Sanofi and Aventis. This France-based private pharmaceutical giant is
having presence across all the continents of the world. Aventis Pharma's parent company Sanofi
Aventis operates its Indian arm from Mumbai, India. Aventis Pharma is one of the most
respected innovations and generic based pharmaceuticals manufacturing company of the world.
Aventis Pharma parent company - Sanofi Aventis have presence in more than 95 countries across
the world. Its state-of -the-art manufacturing facilities across the world are well equipped for the
development of new molecules across all therapeutic verticals. Its manufacturing units are
quality-certified and strictly adhere to WHO-GMP guidelines. Sanofi Aventis owns a number of
innovations to its credit. All of these innovations are protected across the world through patents.
Aventis Pharma has registered total sales of Rs 2265 million for the year ended 31st March 2007.
Aventis Pharma has posted Net Profit to the tune of Rs. 433 million for the year ended 31st
March 2007. R&D explores a broad spectrum of innovative approaches, and develops new
products in the key Areas of therapeutic expertise: Thrombosis, Cardiovascular diseases,
Diabetes, Vaccines, Oncology,

Central Nervous System disorders and Internal medicine.

The Company‟s growth is attributable to a regional approach to business operations, backed by a
comprehensive portfolio of innovative products, mature prescription medicines, consumer health
products and generics, as well as vaccines. By virtue of its commitments, sanofi-aventis
constantly adapts its development model to the world‟s emerging human and economic
problems. Sanofi-Aventis has chosen to integrate its manufacturing processes. This strategy
enables the company to anticipate changes in the sector, while maintaining control of the quality
of its products and the reliability of its supplies from start to finish. Sanofi- Aventis now has one
of the largest industrial infrastructures in the pharmaceutical industry, with industrial facilities all
around the world and over 30,000 employees that are engaged in the production of active
ingredients and excipients as well as the manufacture, packaging and distribution of
pharmaceutical products and vaccines.

Sanofi-Aventis Brings Products to Market More Rapidly with SAS

"Because Health Matters." That's the slogan of the second argest pharmaceutical group in
France. With a presence in 100 countries and more than 30,000 employees worldwide, Sanofi-
Aventis had consolidated annual sales of €6,488 million euros ($7,313 million) in 2001.Its
strengths lie in four areas: cardiovascular/thrombosis, central nervous system, internal medicine
and oncology.

With 6,300 researchers and 48 drugs under development, research is a major strategic axis for
the group. Sanofi-Aventis has selected SAS, whose solutions are recognized by the United States
Food and Drug Administration (FDA) to accelerate the development and marketing stages of its
drugs and consequently to improve profitability.

Speeding the Development Phase

Pharmaceutical research follows a well-determined process. The initial investigation has as its
objective the discovery or exploration of new substances with potential targets in terms of
treatment. This stage focuses on some core aspects of research such as cardio/thrombosis or the
fight against cancer and determines potential substances that over time may be developed as a

future medicine. Once identified as potentially useful for a given therapeutic indication, a
substance enters the development phase.

According to Didier Regent, Director of Information Systems for Sanofi-Aventis, "Of all the
substances studied, only a few can later be used." Once the preclinical phase appears to be
viable, clinical development involving human subjects is initiated within the regulatory context.
"At this stage," A Solution Recognized by the FDA Sanofi-Aventis must generate results that
integrate into a complete report that the group submits to the health authorities. This report
includes all the studies including all the stages, from preclinical development to clinical
development, as well as the data that yielded these results. It is therefore of utmost importance
that these data are reliable and that the tools are validated so that the results comply with
statistical laws.

Developmental Steps of a Drug

Phase 1: volunteers test the future drug.

Phase 2: the therapeutic profile is refined by testing the efficacy of the product with a given
dose, a given treatment

Phase 3: trials are conducted involving a much larger sample of the population on the basis of
clinical study models.

Phase 4: submission of the file.

Phase 5: approval by the authorities and marketing.

Aventis Pharma products cover segments like –

       Cardio-vascular Disease                            Dermatology

       Metabolic                                          Analgesics

       Oncology                                           Anti-infective

       Respiratory System                                 Bone and Joint

       Central Nervous System                             Vaccines

10. Ipca Laboratories (revenue in 2007-2008: Rs 980.44 crore)

Ipca Laboratories was set up in 1949 by a group of businessmen and medical professionals. In
1975, the current management took over the company. At present, the Ipca Laboratories Ltd. is a
rapidly growing pharmaceutical company in India whose biggest thrust is on exports. The main
activities of Ipca Laboratories Company are to produce and market pharmaceuticals and drugs.
The various products of the company include formulations, drug intermediates, and active
pharmaceutical ingredients (API). Ipca Laboratories produces more than 150 formulations that
include oral liquids, tablets, dry powders, and capsules. The various kinds of drug intermediates
that the company manufactures include Theo bromine, Acetylthiophene, and P- Bromo Toluene.
Ipca Laboratories Ltd. also produces API and it is one of the biggest producers and exporters in
the world in this sector.

Ipca Laboratories products are manufactured at state-of-the-art facilities. The company has
production units in Athal, Dehradun, Aurangabad, Ratlam, Indore, Kandla, and Silvassa. All
manufacturing units of the Ipca Laboratories are approved by the various authorities for drug
regulation such as Therapeutic Goods Administration (TGA) in Australia, Food and Drug
Administration (FDA) in USA, and Medicines Control Council (MCC) in South Africa. The net
profit of the company amounted to Rs. 63.98 crore in 2005- 2006 and the next year, this figure
stood at Rs. 122.23 crore. Ipca Laboratories exports its products to more than 100 countries,
primarily to USA, Europe, CIS, and Asia. In 2004 and 2005, Ipca Laboratories was selected
among the 200 fastest rising companies outside the USA, with sales below US$ 1 billion by
Forbes - the leading USA-based business magazine. Ipca Laboratories has become one of the
leading pharmaceutical companies in India on the basis of the quality of its products. This is also
the reason that the export of its product is also increasing, resulting in more profits for the
company. Our national conference-cum-exhibition on Emerging Trends in Electronics Design
and Technology concluded on 13.10.2001as programmed and set a milestone in the
development of the electronics industry for electrical interconnection with the establishment
of the Electronic Designers Council of India, the first of its kind in the country, in affiliation
with IPC Designers Council, USA Now, the Indian Printed Circuit Association (IPCA) has
provided a platform to the electronic community in the country to discuss current
technological trends in electronics design and technology.


We are committed to implement a programme of activities to achieve continuous improvement
in health and safety performance of our employees and society at large.

      Free Medicine distribution.                          Medical camps.

      Blood donation by employees.                         Doctor's education etc.

      Medical checkups.


We are committed to put our efforts to find out unsafe places and unsafe acts for improving
safety of the people at workplace and road safety for general public.

      Organization wide safety awareness drives to improve safety.

      A series of training sessions for safe working practices.

      Road safety campaign for general public.


We will deliver a competitive and fair employment environment and the opportunity to develop
and advance subject to personal performance and business opportunity.

      Employee education and skill development programs.

      Personal effectiveness programs.


Our business and existence depend upon our customers. Every employee is responsible for
ensuring that any contact with our customers and the public at large reflects professionalism,
efficiency and honesty. We will constantly strive to provide high quality service, products and
good value for money.

      Health awareness programs.

      Product knowledge.

      Ensuring security of our drugs from manufacturing to supply.

      Providing quality products.

      Prompt service


Our objective is to reduce impact on the environment through a committed continual
improvement projects for Environment Management systems.

      Tree plantations inside and outside manufacturing sites.

      Safe effluent treatment management.

      Rain water harvesting.

      Ecology balance awareness to the workmen, school and college

      Students.

      Water conservation.

      Energy conservation


We regard suppliers as our partners and work with them to help us achieve our policy
aspirations in the delivery of our products and services.

We will encourage our suppliers and contractors to adopt responsible business policies and
practices for mutual benefit.

      To work closely to encourage for CSR policy development and implementation.

Community at large

We are being a responsible corporate citizen and will support for appropriate social and non-
political projects. For this purpose our organization will focus charities in following areas:

      Education and Training.

      Employment.

      Social Welfare of underprivileged sections.

      Environment.

      Rural development.

      Help Organizations who serve Leprosy & Cancer Patients.

Product category

      Analgesics                                            Anti platelet Agent

      Anti helmentics                                       Anti rheumatics/Anti gout

      Anti osteoporosis                                     Antiseptic

      Anti-Ulcerative Colitis                               Diuretics

      Anti bacterial                                        Hemorheologic Agent

      Antidepressants                                       Bone Resorption Inhibitor

      Anti diabetic                                         Antipsychotic

      Anti emetics                                          CNS Stimulant

      Antifungal                                            Uricosuric

      Antihistaminic                                        Anti allergic

      Antihypertensive                                      Antibiotics
      Anti-inflammatory
                                                             Anti antifectives
      Anti malarial

Review of Literature on Pharmaceuticals

According to Gajaria (2007), India has inherent competitive advantages in pharmaceuticals,
making it a globally preferred destination for out sourcing manufacturing operation. India
offers outsourcing opportunity to innovators Pharma companies in the area of new drug
development. According to CRISIL RESEARCH, the clinically research market in India is
expected to grow to a CAGR of 30-35% over the next 4-5 years and touch us $ 330-400
million by 2011.

According to Sisodia (2008), laboratories, India 2nd largest pharmaceutical company, created
waves it acquired the Germany Beta harms in February 2006. is important from both the
business perspective and cultural perspective. It has got great product pipeline, low cost,
competitive and high quality production base. The company‟s culture is based on the trust of
people and hands on entrepreneurship. Analysts also analyzed from companies Q1 sales for
the current fiscal give enough hint that it has been able to maintain sales in the US at 17% of
its overall revenues. Nonetheless, in their report its point out that Indian companies have
been hurt by competitors in the us, where the large US generic manufactures have joined a
crowed market , forcing down prices at a time when fewer drugs are loosing patent

Murugen and Sunder (2007) studied about the pharmaceutical marketing: through building
relationship with doctors. It is the doctor who influences the patient and thereby influencing
supply chain, the CRM initiative in pharmacy industry has to orbit around the doctors the
write up elaborates process of a CRM initiating for pharmaceutical industry. 1. Starting a
CRM initiating: having understood the major characteristics of the industry, the identification
medical representative, and membership directories of associations, list of conference
participants, doctor referrals, government data bank, medical and research institution. 2.
Differentiation in terms of volume that how much business they can get from them.3.
Interaction: personnel information, hobbies and interest, professional interest, ownership
details.4. Customization make data base about doctors to make an interaction with them and
to wish on their birthday, arranging membership of clubs, presenting gifts.5. Patronage
programs in company reward doctors to help in generating the revenue by their patronage.6.

Direct Marketing. 7. Call centre patients who seek counseling, doctors who like to know
more about drug profile.

According to Kondap (2003), and corporate social responsibility at GlaxoSmithKline
Pharmaceuticals (GSK) limited India, The authors have served most of the largest corporate,
both national and international and have observed that corporate undertakes CSR activities
due to the feeling belongingness. GSK core value is to be a good corporate citizen. It is
committed to the communities in which it works. Support the community through which it
invested in society. To being a good corporate citizen means: 1. being proactive in improving
the environment 2. Participating I and contributing to the well being if the local community
3. Actively contributing to national priorities in health and safety it also focused at child
welfare at koliwada, Mumbai, basically it‟s providing facilities to disadvantages children
deprived of opportunities such as basic education, healthcare and recreation. It‟s main aim to
promoting the physical, intellectual, emotional and psychological development of need
children. Rural development: Gramin arogya vikas sanatha(gavs) at dhondar village glaxo
HIV/AIDS help lines it is innovated service in which professionals receive the calls of
patients or others and answered. The organization provides HIV/AIDS drugs at discounted
price. The organization included more activities like the fight against malaria, audio visuals
for promoting health awareness, medical education health for professionals, science
education programmers for the youth, product donation for humanitarian relief efforts, eco
consciousness, and employee development through cultural, social & educational
programmed, employee involvement, helping the physically challenged.

According to Rodrigues(2005), to increase the profit as well as to compete with the
competitors they come with competitive marketing strategies for the Indian Pharmaceutical
industry, mainly they made it clear which type of practices were taken in to consideration
few year back, by the changing of time all the practices are not sufficient to get business from
their customers (doctors) so by these writer pharmaceuticals marketing in India : a
microscopic view marketing of pharma products includes marketing of both bulk and
formulations. It has difference, in case of bulk drugs, the buyers are few in numbers and the
manufacture builds and maintain good relation few customers, to whom the supplies
regularly. Moreover since the market for formulation is widely distributed, brand preferences

need to be created. The medicals representative attempt to target and convince doctors.
Secondly, they gave core strategies 1. The concept of co-marketing 2. The franchisee model
3. Consultant selling: the new sales and marketing model 4. Retailing revolution
pharmaceutical sector 5. New pharmaceutical model 6. Product rationalization and right
product mix 7. The need and the strategies the inorganic growth. Support strategies and other
support strategies: 1. focus on smart research collaborations 2. Setting up subsidiaries abroad
3. Upgrading manufacturing facilities and become globally complaint.

According to Mukhopadhyay (2007), in modern competitive scenario of the Indian
pharmaceutical industry, where business plans of the companies are frequently driven by
high level sponsorships being offered to the doctors In return for communication on high
level perception support that drives for premium value formulation that drives the growth of
the origination, such concept of intense planning on focused communicating sounds
irrelevant. However, such strategies may detrimental in the sense they may cause the sales
department develop an overdependence on the sponsorships, instead of putting the basic
functions place. This in turn, may not only cause the erosion of both skill and attitude of the
workforce, but also tend to bring forth corruption, compromised work culture and
accountability, loss of professional respect from the customer(doctors and channel partners)
totally jeopardizing the foundation of sales department.

Review of Literature on CRM

According to Chandha (2003), relationship marketing is not of recent origin but it has been
there for a long time. With the increase of competition, globalization of product and services
and increase in consumerism, it is important for firms to have competition advantages so that
they can meet customer expectations well and can command the position of leader in
business scenario. The “customer relationship marketing” is seen as the only tool for the
survival in business. The conditions that can be conducive for relationship growth like
physical proximity, access: extent of personal contact: length of time invested: complexity of
the task: ease of two way communication: added value through service: dealing with the
same people: frequency of contact: perception of high risk: lack of experience: level of
involvement: intimacy: switching costs etc should be encased by companies so that
profitability can be ensured.

According to Hughes (2008), CRM is created out of a need to curb alarming customer
attrition. Retaining customers far less costly than a new one from competitor by offering very
attractive switching options. To maintain the customer we should follow some strategies
1.assuming that the firm has created a quality database of customer with provision for data
mining or listing based on customer purchase pattern, readiness to respond to a new
marketing campaign.2 educate customers on something that they did not already know:
current new or general knowledge or cookery tips. 3. Use the appropriate channel of
communication proffered by the customer. Do not push through channels which are
convenient cost effective for the firm.4. Make it more convenient for the customer to respond
by giving a nearest contact point, internet or SMS channels. 5. Make the language of
communication more personal, and not present it in a mass marketing tone 6.synronize with
the call centers. They should be informed in advance about campaigns and how to handle
customer responses.

According to Jasola (2004), customer relationship marketing is defined as a business
strategy geared towards retaining and growing more profitable customer. She also discussed
some concept like customer satisfaction, customer retention, loyalty; regain management, life
style value. Satisfaction is a person feeling of pleasure or disappointment resulting from
comparing a product perceived performance (or outcomes) in the relation to his or her
expectation. Customer retention has a tremendous profit potential. If these points are there
customer loyalty will there. So to avoid the customer switching from one service provider to
another, we can use regain management.

According to Robinson (2006), combining mobile with other media is necessary in order to
reach customers and to initiate a dialogue with them. In others words SMS campaigns must
be advertised and marketed. In other media but should bound to other particular products by
printing them for example on soft drinks labels and candy bar wrappers, permission from the
customers is also important before gong for SMS messaging for building CRM

According to Mishra (2008), CRM, is increasingly used to learn about customer‟s needs and
behavior, as good relationship is very essential for successful brand marketing. CRM has
emerged as the core marketing activity for companies. A large number of factors have
contributed to maintain relationship with customers, such as increasing pressure of

competition intense brand struggle, frequent introduction of new products, shirking life cycle
of the product, highly informed and more demanding customer loyalties, etc. thus, Indian
journal of marketing. Thus CRM demands building trust as abiding force for value added
relationships, which benefit both the company as well as the customers. CRM has become
the bridge by which companies get, keep and grow customers. These relationship into
increasing sales revenue and profits. It has various importance‟s‟ it has been divided in two
categories1. Benefit of CRM to brand marketers 2. Benefit of CRM to customers. Benefits of
CRM brand customers importance in sales revenue, increase in profit, reduction in cost of
marketing, better understanding of customers, targeted customer contact, improved in
customer satisfaction, increase in customer retention, identifying, attracting ad acquiring new
customers, proximity to customers, helps in identifying cross selling opportunities, sensitized
and productive workforce. Benefits to CRM to customers: decreased cost of customers,
improvement in customer satisfaction, timely delivery of products, personalizing and
closeness, availability of products. Different CRM strategies for brand marketing 1. CRM
through direct interaction with customers 2. CRM through indirect with customers 3. CRM
through advertising 4. CRM through alterations.

Significance of the study

Customer relationship marketing is basically related to manage relationship with the
customer. Every company focuses to reach their prospective customers. In pharmaceuticals
industry the main customers are doctors. The reason is that they prescribe medicine to the
patient. Whatever medicine a doctor prescribes, patient purchases that product or medicine.
So, in this study the main focus will be to see how the pharmaceuticals industry tries to make
and manage relationship with the doctors.

This study also gives the knowledge about the role of marketing representative, territory
manager, which type of practices they consider while doing marketing works. To whom they
consider their customers like doctors, stockiest and so on. While talking to different
customers, which type of activities they actually consider and it helps them to make the list
about their customer according to getting business. It will help them to be in touch to their
customer. Nobody can say that if a customer does not give business, he/she cannot be a
customer. Especially relationship marketing in pharmaceutical industry it should be properly
defined that that the big customer is. To be in touch with their customer. The main objective
of the study is to know how an MR, TM can influence a doctor to prescribe their medicines.
It is also important to know about the market representative as well as territory manager that
which type of practices they actually consider to meeting with the customers (doctors)
Relationship management also helps to know about the customers who gives big business to
them. Market representative also considers stockiest and chemist etc their customer to get
business from them.

All these activities help to marketer to make the list of their potential customer because
marketer cannot make same plans for every one. They put their customer on a particular scale
in which they rank their customers who gives business in high volume and who gives in less
volume. Its does not mean that less business giver will not be consider as customer but
benefit will be less as compare to the customer who business in large volume. The main
importance of the study, how a customer can be influence to prescribe the medicine of a
particular company and to know abut the practices to maintain the relationship with the

Objectives of study

     To study the factors responsible for sales generation.

     To know the role of CRM in generating the sales for pharmaceutical companies.

     To know various CRM strategies followed by the companies.


Pull and Push Strategy

Communication by the manufacturer is not only directed towards consumers to create
demand. A push strategy is where the manufacturer concentrates some of their marketing
effort on promoting their product to retailers to convince them to stock the product. A
combination of promotional mix strategies are used at this stage aimed at the retailer
including personal selling, and direct mail. The product is pushed onto the retailer, hence the
name. A pull strategy is based around the manufacturer promoting their product amongst the
target market to create demand. Consumers pull the product through the distribution channel
forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organizations
tend to use both push and pull strategies to create demand from retailers and consumers.

Push strategy

Push programs represent a top down approach to dictating activities. These programs tend to
specify activities or procedures in detail. The core assumption of push programs is that
demand can be anticipated and that it is more efficient and reliable to mobilize resources in
pre-specified ways to serve this demand. These activities or procedures may be organized
into modules (for example, semesters in a curriculum), but that is only for the convenience of
the provider. The modules are usually tightly coupled – deployed in a pre-specified sequence.
Because of the work required to specify, monitor and enforce detailed activities, push
programs tend to be restricted in terms of the number and diversity of participants. This is
especially true beyond the boundaries of a single institution where the complexity overhead
increases exponentially as the number and diversity of participants grow. This is a key reason
why most large companies have worked so hard to reduce the number of suppliers in their
supply chains. Even within a single institution, push programs specify the type of
participants, their roles and the sequence of their involvement in the activities covered by the
program. As a result of the tight coupling of the procedures in these programs, their designers
tend to limit the frequency of enhancements to these programs. Modifications in one part of
these programs can often cause significant and unanticipated disruptions in very different
parts of the programs. For this reason, designers tend to approach modifications very

cautiously and bunch them together into major re-engineering efforts, as we see in the arena
of business process management. Push programs tend to treat all relevant resources as a fixed
and scarce quantity –after all, that is one of the rationales for a push program to begin with:
to ensure that scarce resources are deployed to the highest priority needs. If one participant
gets the resources or the rewards, other participants must do without. In this sense, push
programs operate with zero sum reward systems for their participants. Often there is intense
political maneuvering to gain privileged access to resources. Since the availability and
movement of resources are dictated from above, political maneuvering focuses on
influencing the center. The key planning instruments of push programs are budgets (for
financial resources) and materials requirement plans (MRPs – for physical resources) – these
become the focus of intense political rivalry

Reward systems tend to concentrate on extrinsic rewards – for example, money or grades.
Participants in push programs are generally treated as instruments to ensure that activities are
performed as dictated – their own individual needs and interests are purely secondary, if
relevant at all. As a result, these programs generally tend to default to extrinsic rewards as a
way to motivate participants. Push programs adopt a standard meta-design pattern where
construction and creation are clearly separated from use or consumption.

Operational Definitions


“A customer, also client, buyer or purchaser is the buyer or user of the paid products of an
individual or organization, mostly called the supplier or seller. This is typically through
purchasing or renting goods or services.”

“The word derives from "custom," meaning "habit"; a customer was someone who
frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold
there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to
keep his or her "custom," meaning expected purchases in the future.”


“In the broadest sense of the word, the definition of research includes any gathering of data,
information and facts for the advancement of knowledge. Reading a factual book of any sort
is a kind of research. Surfing the internet or watching the news is also a type of research.”
“Any type of „real‟ research, whether scientific, economic or historical, requires some kind of
interpretation and an opinion from the researcher. This opinion is the underlying principle, or
question, that establishes the nature and type of experiment.”


“Marketing is defined by the American Marketing Association as the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large. The term developed
from the original meaning which referred literally to going to market, as in shopping, or
going to a market to sell goods or services”.

“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large”

Marketing Research

“Marketing research is the function that links the consumer, customer, and public to the
marketer through information--information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the method for
collecting information, manages and implements the data collection process, analyzes the
results, and communicates the findings and their implications.”

Relationship marketing

“Relationship marketing refers to all marketing activates directed towards establishing,
developing and maintain successful relationship exchanges”

Customer Relationship Marketing

“CRM is a business approach that integrates People, Processes and Technology to maximize
the relations of an organization with all types of customers”.

“The true value of CRM is to transform strategy, operational processes and business
functions in order to retain customer”.


“As per Section 2(j) of Industrial Disputes Act, 1947 “Industry” means any systematic
activity carried on by co-operation between an employer and his workmen (whether such
workmen are employed by such employer directly or by or through any agency, including a
contractor) for the production, supply or distribution of goods or services with a view to
satisfy human wants or wishes (not being wants or wishes which are merely spiritual or
religious in nature).”

Pharmaceutical industry

“The pharmaceutical industry develops, produces, and markets drugs licensed for use as
medications. Pharmaceutical companies can deal in generic and/or brand medications. They

are subject to a variety of laws and regulations regarding the patenting, testing and marketing
of drugs.”


“Being an chemist; a person whose occupation specializes in the science of chemistry,
especially at a professional level; a pharmacist; a pharmacy scientist who specializes in
chemistry “

“Pharmacist: a health professional trained in the art of preparing and dispensing drugs “


“One (as a retailer distributor of semi-fabricated products “

“who holds stock for sale to consumers‟ or distributor) that stocks goods”


“A doctor, therapist, or other healing professional can represent healing someone or
something, or fixing a problem.”


“A person who requires medical care; "the number of emergency patients has grown rapidly"

“A patient is any person who receives medical attention, care, or treatment. The person is
most often ill or injured and in need of treatment by a physician or other medical
professional, although one who is visiting a physician for a routine check-up may also be
viewed as a patient.”

Research Methodology

Research design

Research design was descriptive in nature to know the nature and significance of customer
relationship marketing in Indian pharmaceutical industry. Under this study top 10
pharmaceutical (by total revenue in 2008, India) companies will be studied.

Data collection sources

Primary data

In this questionnaire method used to get information about different pharmaceuticals
practices to make relationship with their customers (doctors).

Secondary data

Different generals, magazines and articles were used to get information about customer
relationship marketing as well as selected pharmaceuticals companies were considered.

Data collection method

To collect the primary data number of marketing representatives, territory managers of
different pharma companies were approached. To collect the data pilot study and main study
was used.

Pilot study

In which to market representative were considered to get the basic information as well as to
know about the effectiveness of the study.

Main study

In this market representative, sales executive and territory head were included to get the
information about the practices considered by the pharmaceutical companies.

Sampling design

Sampling design was non probability technique (judgment and quota sampling). All the MR,
sales executive and territory head were considered. All the ten pharmaceutical companies
were considered on basis on total revenue in 2007-2008. Seven respondents (MR/TR) were
considered from all the companies. In this, tool was questionnaire and sample size was 70 in
which the entire marketing representative, territory managers were considered.

Scope of study

In this study, for collecting the data top ten pharmaceutical industry were considered by the
total revenue earned in 2007-2008. Seven marketing representative were taken from every
company in Haryana region, including the sample size 70.

1. For how long you have been working with the current organization?

 YEAR/MONTH                               Respondents                  percentage
 LESS THAN 6 MONTH                        3                            5.0
 UPTO 1YEAR                               24                           40.0
 1 TO 2 YEAR                              17                           28.3
 MORE THAN 2YEAR                          16                           26.7

In this graph large no of market representatives had experience of up to one year and 1 to 2
year or more than two year was near about same.

2. On an average how many visits do you make to a doctor in a month?

 NO OF VISITS                      Responses                 percentage
 ONLY ONE                          7                         11.7
 2 TO 3                            32                        53.3
 4 TO 5                            14                        23.3
 MORE THAN 5                       7                         11.7

After anlysing the data,   showing that on an average a market representatives,territtary
manager visit to their customer ( doctors) 2 to 3 times in a month and near about half of this
MR,TR visit 4 to 5 times in a month.

3. Which product do you promote to your Customers (Doctors)?

 Products                                Responses                  percentage
 Anti biotics/Nsaids                     33                         55.0
 Cardic/Antibiotic                       23                         38.3
 Gynecology                              15                         25.0
 Pediatric                               21                         35.0
 Others                                  8                          13.3

In this graph, respondent (MR) had to sell the product to their customers (doctors). Some
time MR has to sell pore than one product to same or different customers. So this graph is
giving the result that MR sell more than one product. In others they have other product
related to Nero, pediatric, skincare, respiratory, diabetic etc. in this graph showing more than
100% result because no of MR‟s are selling more than one product.

4. What are the profiles of your customer (doctors) in MSL?

 GP'S                                       23

 PHYSICIAN/SURGON                           36

 JR'S/SR'S                                  35

 CONSULTANTS                                42

 OTHERS                                     4

In the table data is more than 100%, reason is many MR sell 2 or three products together. If
the pharmaceutical company having few subsidiary than MR has to sell 2or 3 product
together same thing we can see in the chart near about 25%physician/surgon contacted by the
MR.s. more of consultants were approached by the MR‟s. In others they consider diabetic,
respiratory, skin range etc.

5. How do you promote your product?

 Promotion type                      Respondent                 Percentage
 Personal Meetings                   55                         91.7
 Telephone Calls                     10                         16.7
 Postal Mails                        3                          5
 Online Information                  0                          0
 Others                              1                          1.7

In the graph more no of respondants(MR) promote their product through personal mettings
here data is again more than actual data because any one could adopt more than one option.

6. What Factors are responsible for the Generation of Prescriptions/sales?

 Factors                            Responses                           percentage
 Product Quality                    42                                  70
 Company's Image                    41                                  68.3
 Visits of Sales Reps               27                                  45
 Samples/Gifts/Sponsorship          11                                  18.3
 Cost of therapy                    8                                   13.3
 CRM                                22                                  36.7
 Others                             2                                   3.3

In this graph MRS have more confident over their product quality as wel as company image
and CRM is the 4th best factor to generate the sales.

7. Do you believe that CRM affects the prescription/sales generation of your products?


 56                                            3

More no of respondants were in favour in CRM which affect the generation of sales. From
sample size of 60 anly three were in against of CRM and only one respondant did not reply
over it.

8. Which CRM practices do you adopt to generate prescription/sales from GP's?

 practices                    Responses                     percentage
 Samples                      28                            46.7
 Literature                   29                            48.3
 Camps                        10                            16.7
 Gifts                        37                            61.7
 Others                       4                             6.7

Here again respondant In ithis graph,gift is the most important factor who helps to generate
the sales from GP‟s. MR have no of ways to generate the prescription/sales from GP‟s by
giving more and more samples and literature. In others trede offers were given to generate
the sales.

9. On a scale of 5, how much weight do you give to each factor for its contribution in
generation of prescriptions/sales from GP's?

 IMPORTANCE          5              4               3              2               1
 Samples             19             10              9              3               2
 Literature          15             17              11             4               4
 Camps               7              7               9              3               3
 Gifts               26             15              5              1               1
 Others              3              0               2              0               3

On the scale of five31% of respondent were favor in gifts to generate the sale from GP‟s 26%
in the samples and 26% in favor in literature. In other it included CRM activities product of
dis. Need.

10. Which CRM practices do you adopt to generate prescriptions/sales from JR's/SR's

 CRM practices                      responses                   percentage
 Gifts                              30                          23
 Frequent reminder                  46                          35
 Others                             5                           4

After analysing the data, shows that 57% of respondant favour in gift to generate the sales
from JR‟S/SR‟S. 37% of total respondants were in favour in frequent reminder. In others
very less calls and acedmics

11. On a scale of 5, how much weight do you give to each factor for its contribution in
generation of prescriptions/sales from JR's/SR's?

RANKING          5               4                3        2              1
Gifts            26              19               4        1              1
reminders        29              19               4        0              0
Others           1               3                1        0              0

On the scale of five, respondents choose gifts and frequent reminder who contributes to
generate the sale/prescription. More no of MR‟s were in favor in frequent reminder to
generate the sales from JR‟S/MR‟S.

12. Which CRM practices          do    you   adopt   to   generate prescription/sales   from

 PRACTICES                            RESPONCES                     PERCENTAGE
 Samples                              28                            46.7
 Literatures                          28                            46.7
 Camps                                18                            30
 Conference sponsorships              23                            38.3
 CME's                                22                            36.7
 Others                               1                             1.7

By analysing the data samles and literature was given the equal importance to generate the
salesfrom physicians/surgon. In this nay one could choose more than one factor who generate
the sales. Conference sponserships and CME‟s also given 3rd and 4th rank in terms of
generation of sales.

13. On a scale of 5, how much weight age do you give to each factor for its contribution in
generation of prescriptions/sales from physicians/surgeons

 RANKING             5              4              3              2             1
 Samples             24             11             11             5             3
 Literatures         10             16             6              6             2
 Camps               10             9              14             7             1
 sponsorships        16             10             5              3             0
 CME's               13             18             4              2             0
 Others              0              0              1              0             0

In case of generation of sale from physician/surgon 27% respondant were in favor In
samples. Conference sponserships, CME‟s, literatures were favored by 18% to each factor.
Samples means to let them know about the madicene after they will prescribe it to patients.

14. Which CRM practices do you adopt to generate sales from consultants?

 Practices                                Responses                   percentage
 LATEST STUDIES                           53                          88.3
 UPDATED INFORMATION                      39                          65
 OTHERS                                   3                           5

In the pie chart 88.5% of respondants were in favour in latest studies that generated sales
from consultants. In others they considered deep consentration,regular visit and reminder.

15. On a scale of 5, how much weight do you give to each factor for its contribution in
generation of prescriptions/sales from Consultants?

                          5          4                3        2             1

 LATEST STUDIES           32         20               2        0             0
 INFORMATION              14         27               6        0             0

 OTHERS                   1          1                0        0             0

On the scale of five 55% of respondants were given most important factor to generate the
sales from consultants.

16. Do you believe that CRM cam generate better result for the company?

  STRONGLY AGREE                      17                         28.3
  AGREE                               36                         60
  NAND                                4                          6.7
  DISAGREE                            2                          3.3
  STRONGLY AGREE                      1                          1.7

Fro the sample size of 60, 60% of respondants were agree that CRM could generate the sale.
Near about half of this were strongly agree.

17. Which benefits, do you think, are expected for company while adopting CRM

 BENEFITS                           RESPONCES                 PERCENTAGE
 Loyal Customer                     35                        58.3
 Repeat Purchases                   13                        21.7
 Lower Costs                        3                         5
 Positive word of Mouth             13                        21.7
 Goodwill                           32                        53.3
 Others                             0                         0

By adopting CRM practices company could get loyal customer and goodwill that were
considered by the 58.3% and 53.3% of respondants. 21.7 % same incase of positive word of
mouth and repeat purchase.

18. Do you believe that CRM can generate better result for the customers (doctors)?

 Strongly agree                  11                             18.3
 Agree                           46                             76.7
 Neutral                         2                              3.3
 Disagree                        1                              1.7
 Strongly disagree               0                              0

Maximum no of respondants were agree upon that CRM could generate the better results for
the doctors..

19. How can CRM provide Good results for customers?

 RESULT OF CRM                     RESPONCES                     PERCENTAGE
 better product/services           40                            66.7
 More value                        11                            18.3
 Personalized Attention            10                            16.7
 price offers/ discounts           12                            20
 commitment by marketers           19                            31.7
 others                            0                             0

Inthis case any one could choose any result that ca give to their customers. More the
respondants were favored better product. Second better result is commintment by the
marketers. Rest foctors like more value, personalized attention, price ofers/ discount had
equal importanc

Data was analyzed under the supervision of guide. To some extent data satisfied the objective
like factor responsible for sales generation, role of CRM practices and strategies followed by
the pharmaceuticals companies in India. And all the result are shown according to the

   1. Objective -To study the factors responsible for sales generation.

    Data also suggested that no of MR‟s have the experience up to year and age in
       between 20 to 30. It is also a big factor in generation of sales.

    Main factor for generating the sales is no of visits done by the MR, more no of MR
       visit to doctor 2to3 times in a month. It is done for generation of sales.

    Data suggested that many MR market more than two products. For this purpose they
       include number of doctors in different fields. More no of fields mean more generation
       of business like a single MR can include physician/surgon, consultants data suggested
       that 25% of each category was considered by the MR‟s. 32% of MR‟s from the total
       respondents were considered consultants as first preference to get business.

    To fulfill the needs of their customer (doctors) MR promote their products any
       combination like antibiotics/Nsaids, cardio or antibiotics, pediatrics, or all products
       have also been promoting by the MRs. Other than the list mentioned in the
       questionnaire skin range, psychiatric, respiratory have also been promoting by the

    From the data product quality and company image was came out as a big factor
       ingeneration of sales. Result is also more than 100% because any MR could use more
       than one practice to generate the sales. In other benefit, doctor‟s benefits, product
       knowledge, personal relation were also suggested by the MR‟s.

2. Objective -To know the role of CRM in generating the sales for
   pharmaceutical companies.

 More than 90% of respondents were In favor of CRM practices that actually generate
   the sales/prescription for their products.

 Answer to the question of practices used to get the sales/prescription From GP‟S for
   the product, gifts option was highlighted by the MR‟s.its the way to influence the
   doctors. Some time they directly offers reimburse any bill. What ever things
   purchased by the doctors. Literature and samples comes right behind the gifts.

 In others Trade offer also given to the stockiest in which they get the discount to keep
   the stock of any xyz company

3. Objective -To know various CRM strategies followed by the

 Practices also taken in to consideration to get the business from JR‟S/SR‟S like
   frequent reminder and gifts. 57% of respondent were in favor of remind them to get
   business. In others product discount need, some respondents don‟t cover JR”S/SR‟s.
   On the scale of five 49% of the respondent were in favor of frequent reminder.

 Practices used to get the sales/prescription from the physicians/surgeons. Like
   Samples, Literatures, Camps, Conference sponsorships, CME's, others. Samples and
   literature have equal importance for many respondents. Conference sponsorships/
   CME's both have second place in importance to generate the sales from

 When all the points were given rank on scale of five samples was favored by the
   respondent that could generate the sales/prescription from the surgon/physician. Rest
   all the factors have equal importance.

 Practices were considered to generate the sales from the consultants by updated
   information and latest studies. 53% of respondent were in favor in latest study. On the
   scale of five same result was there latest was give highest rank.

 More than 80% of the respondents were agree upon that is CRM practices can
  generate the sales/prescription from their customer (Doctors).
 What ever practices were taken into account by the MR‟S to get loyal customers and
   goodwill of the company these points are given 1st rank according to preference.
   Repeat purchase and positive word of mouth comes second preference.

 On answer of can CRM generate better result for the doctors? 46 respondents out 60
   were agreeing on those points.

 Practices gives better product/services to their customer in this no of factors could
   also be the part of this answer because multiple choices were their anyone can have
   different thinking about different points

Limitation of study

   In the starting of the project difficulties came in the way to get information about the
     MR‟s. All the retailer of pharma companies did not have the contact no of the MR‟S.
     Reason, they don‟t contact to MR‟s but MR‟s contact them.

   Time factor was the main limitation in this study because it was bit difficult to meet
     all the respondents because they having different timing to meet their customer
     (doctors). Few MR cover the Haryana region from Chandigarh so they do very few

   During the study there was time of closing at end of the year that‟s why all the MR‟s
     had assemble at their headquarters. So it delayed the questionnaires that were sent in
     other areas like Bhiwani, Hisar.

   Few MR‟S who directly approached were not ready to give the proper information
     about their company they had fear of miss use of their information so biasness is there

   Some companies has few subsidiaries that are located in Ambala like Dr reddy‟s so
     questionnaires were filled from that company‟s MR‟s through some of other people
     who reside sin company‟s Ambala.

   Questions like 9, 11, 13 and 15 were not answered in proper manner. In this they had
     to give rank on the scale of five many of them interpreted in wrong way that was
     clearly visible in questionnaires.

   Some of the respondent did not fill each and every answer. For this many reasons
     were there shortage of time, fear to misuse of information etc.


In pharmaceuticals industry customer relationship marketing has become the part of the
business. In order to get sales/prescription from the customers (doctors) all the MR‟S,
territory manager are having different ways to influence the customers (doctors). They are
not selling the single product but lots of products have been selling by them. In customer
relationship marketing they are using methods like samples, literatures, sponsorships etc. like
the different ways to influence the customer, they also consider different customer from
different profiles. It helps to make the list of those customers who give more business.

In this study all the MR‟s were agreed upon customer relationship practices. Numbers of
companies are having different subsidiaries in which numbers of products are categorized. It
emphasis to different MR‟s team in which area covered by them. Every team covers different
doctors, medical institutes as well as multi specialist hospitals. In this MR‟s has to frame the
strategies or polices according to the particular area where doctors work.

Now companies are framing their own strategies to compete their competitors in the same
field. Strategies like more visit, frequent reminders, more gifts not only on the visits but also
on the important dates      like marriage anniversary, birthday etc. it helps to show their
presence in the market.

At the end maintaining the relation with the customers definitely will give you a stand in the
market. More important customer also goes with that product that has quality in it. Reason
behind this, not a single customer (doctor) in the market will lose their respect at any cost by
prescribe low quality medicine once someone lose the respect it takes lots of time to regain.
That‟s why all the customer always go for quality as well as different offers given by the
companies to Doctors.


   Companies should concentrate on product quality rather on influencing the customer
     by giving any kind of materialistic things.

   Every company should adopt any rural area like GLAXO has adopted near by the
     Maharashtra, to make them aware about the treatment have been using in the cities
     (urban area) because in many villages traditional treatments are using by the villagers.

   Pharmaceuticals companies should try to provide the major medicine like cancer,
     HIV at low cost.

   In pharmaceuticals companies, all the MR‟s should have good personality as well as
     good communication skill. In case of personality if MR is like by the Doctor he will
     get the sales/perception. Otherwise MR selling good product he will not get business
     from that customer. It‟s all about likes and dislikes of a any person.

   By adding their sub brands with that product who actually established in the market.
     In this case chances of being selected are more


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