Internship Report on

“A BRIEF ORGANIZATIONAL STUDY AT STRIDES SHASUN LTD”

Submitted by
VAISHNAVI K
USN: 1DT17MBA44
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In partial fulfillment of internship study requirements of
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
INTERNAL GUIDE EXTERNAL GUIDE
Mrs. Asmeen Mahapatro Mr. Praveen Kumar
Asst. Professor General Manager (SSC)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

DAYANANDA SAGAR ACADEMY OF TECHNOLOGY AND MANAGEMENT
DECLARATION
I VAISHNAVI K, hereby declare that the Internship report titled ‘A BRIEF
ORGANISATIONAL STUDY AT STRIDES SHASUN LTD” Prepared by me under
the
guidance of MRS. ASMEEN MAHAPATRO, Asst. Professor of MBA Department,
Dayananada Sagar Academy of Technology and Management and external assistance
from
MR. PRAVEEN KUMAR (General Manager).
I also declare that the internship study undertaken by me after the second semester of
Master
of Business Administration (MBA) is as per the curriculum requirement and the
regulations
stipulated by Visvesvaraya Technological University, Belgaum. I have undertaken
this summer
internship study program for a period of four weeks from (26
th June 2018 to 21st July 2018).
I further declare that this internship study is based on the original study undertaken by
me and
has not been submitted for the award of any degree/diploma from any other
University/Institution.
Place: Bengaluru Signature of the student
Date: ACKNOWLEDGEMENT
An internship study is an opportunity in a management student’s career where she can
acquire
invaluable knowledge as to how an organization actually functions as well as the
process of
the work. The satisfaction that accompanies the successful completion of any study
would be
incomplete without mentioning the people who made it possible, whose, consistent
guidance
and encouragement crowned my efforts with success.
Firstly, I would like to express my sincere thanks to our Principal, Dr. B R
Lakshmikantha,
Dayananda Sagar Academy of Technology and Management, Bengaluru, for giving
me an
opportunity to undertake this internship study. I thank our Professor and Head of the
Department, Dr. Geetha R, Department of Management Studies, for motivating me to
gain the
organizational and operational perspectives.
I am also grateful to my guide Mrs. Asmeen Mahapatro, Asst. Professor, Department
of
Management Studies, for her constant support and inspiration throughout the
internship study
as well as her encouragement, suggestion and guidance to complete this internship
study
successfully.
I express my sincere and hearty thanks to Mr. Praveen Kumar (General Manager) of
the
esteemed organization for her suggestions and encouragement given to purse this
internship
study successfully.
I thank all the staff of MBA Department, faculty members and stakeholders of
“Strides
Shasun” who helped me in resolving the problems that I faced during the conceptual
understanding and preparation of this organization study report.
Last but not the least, I am grateful to my beloved Parents, siblings and all of my
friends for
their moral support and suggestions and encouragement.
Name: Vaishnavi K
USN NO: 1DT17MBA44 TABLE OF CONTENTS:
SL. No PARTICULARS PAGE No.
Chapter 1 Introduction about internship, Industry profile 1- 4
Chapter 2 Organisation profile
➢ Back ground
➢ Nature of the business
➢ Vision, Mission, Quality policy
➢ Product/service profile
➢ Ownership pattern
➢ Achievements/Awards
➢ Future growth & prospects
5- 6
7- 10
11
12-13
13- 16
17- 19
20
20
Chapter 3 McKinsey’s 7S framework 21- 26
Chapter 4 SWOT Analysis 27- 29
Chapter 5 Analysis of financial statement 30- 41
Chapter 6 Learning Experience 42
Chapter 7 Bibliography 43 List of Tables and Graphs
SL. No Content Page No
2.1 Nature of business 11
2.5.1 Ownership pattern 19
3.1 Workforce pattern 25
5.1 Current ratio 33
5.2 Quick ratio 34
5.3 Cash ratio 35
5.4 Absolute liquid ratio 36
5.5 Debt equity ratio 37
5.6 Asset turnover ratio 38
5.7 Proprietary ratio 39 Executive Summary
An excellent opportunity was provided by “Strides Shasun”, to conduct an
organisational
study at their organisation for a duration of four weeks. Strides Shasun is
pharmaceutical
company established in the 1990 and as established as one of the foremost
pharmaceutical
company over 4 decades.
Initially my internship began in the corporate office, with an intricate study of the
organisation by using both primary and secondary resources. I was as well allowed to
interact
with all the executives, senior executives, managers and general managers in the
collection of
the data of the various departments of the organisation comprising HR, Finance, IT,
SCM,
Production and the Research team.
This internship in turn enabled me understand the practical situation and held me to
apply my
theoretical knowledge, that the organisation utilises to resolve all the problems that
they face
in the functioning of the business.
The various methods and techniques that the organisation adopts to like their vision,
mission,
objectives and quality policies. which has constantly made the company to achieve its
goals
and objectives.
Its numerous products that are spread across the globe, that serves many diseases and
global
needs and wants, serving AIDS, T.B and Malaria as a part of their major “Branded
Generics”
The study conducted comprised the study of the MC Kinsey 7’s frame work, which
made me
understand how the organisation implements all the elements to have a successful
functioning
and handling the land, labour and capital.
Perhaps it’s been a great opportunity to be apart of a such a great organisation for 4
weeks
with their constant support and guidance. ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 1
Chapter-1
1.1 Introduction about the internship
An internship is a period of work experience extended by an organisation for a
specific
and confined period of time.
They are typically undertaken by students and graduates looking to gain efficient
skills
and experience in a particular field. The inters position is temporary with an emphasis
on
on-the-job training rather than merely employment, and it can be paid or unpaid.
An internship consists of an exchange of service for experience between the intern
and
organisation. It creates professional network that can guide with letter of
recommendation
or lead to future employment opportunities. It provides the ability to participate in a
field
of their choice to receive hands on learning about their future career, preparing them
to
face the real world and support transition from “classroom to corporate”.
Internship at Strides Shasun ltd:
Strides encourage students who have talent and aptitude to join as interns under their
hands-on internship programme, “Paatashala”, which will constantly prepare students
to
make the transition from classroom to cubicles. Over a period that ranges between 4
weeks
to 24weeks, Paatashala provides students with an enriching experience, business
intelligence, the requisite tools and networking opportunities with ‘strides’ leadership
team
to prepare them for a career in the health care industry. It ensures a constructive
learning
of operational nuances of the pharmaceutical world while completing the academic
requirement of an assigned project.
the purpose of undertaking internship here is to adopt and cultivate academic career
with
professional intelligence to gain knowledge and exposure to organizational structure.
The main objective of my internship was at Strides Shasun:
• To complete the project supported by my mentor in the pharmaceutical world
• Enhance my knowledge and skills through leveraging technology, hand on
experience of equipment and understand the changing competition in the
pharmaceutical’s.
• Reflects on qualitative feedback of my performance in the organisation so as to
enhance by behaviour at work place.
• Support my transition from class of corporate after this internship.
ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 2
1.2 Industry profile
India is the largest provider of generic drugs globally with the Indian generics
accounting for
20 per cent of global exports in terms of volume. Of late, consolidation has become an
important characteristic of the Indian pharmaceutical market as the industry is highly
fragmented.
India enjoys an important position in the global pharmaceuticals sector. The country
also has a
large pool of scientists and engineers who have the potential to steer the industry
ahead to an
even higher level. Presently over 80 per cent of the antiretroviral drugs used globally
to combat
AIDS (acquired immuno deficiency syndrome) are supplied by indian pharmaceutical
firms.
The un-backed medicines patent pool has signed six sub-licences with aurobindo,
cipla,
Desano, Emcure, hetero labs and Laurus labs, allowing them to make generic anti-
aids
medicine Tenofovir alafenamide for 112 developing countries.
Market size
Indian pharmaceutical sector is estimated to account for 3.1 – 3.6 per cent of the
global
pharmaceutical industry in value terms and 10 per cent in volume terms. It is expected
to grow to us$100 billion by 2025. The market is expected to grow to us$ 55 billion
by 2020,
thereby emerging as the sixth largest pharmaceutical market globally by absolute size.
Branded
generics dominate the pharmaceuticals market, constituting nearly 80 per cent of the
market
share (in terms of revenues). The sector is expected to generate 58,000 additional job
opportunities by the year 2025. *
India’s pharmaceutical exports stood at us$ 16.8 billion in 2016-17 and are expected
to grow
by 30 per cent over the next three years to reach us$ 20 billion by 2020, according to
the
pharmaceuticals export promotion council of India (Pharmaexil). Export of
pharmaceutical
items reached ₹ 696.84 billion (us$ 10.76 billion) during April 2017 – January 2018.
Indian companies received 304 abbreviated new drug application (ANDA) approvals
from the
us food and drug administration (USDFA) in 2017. The country accounts for around
30 per
cent (by volume) and about 10 per cent (value) in the us$ 70-80 billion us generics
market.
India’s biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-
agriculture,
bio-industry and bioinformatics is expected grow at an average growth rate of around
30 per
cent a year and reach us$ 100 billion by 2025. Biopharma, comprising vaccines,
therapeutics
and diagnostics, is the largest sub-sector contributing nearly 62 per cent of the total
revenues
at ₹ 12,600 crore (us$ 1.89 billion). ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 3
About the industry
The indian pharmaceutical sector industry supplies over 50 per cent of global demand
for
various vaccines, 40 per cent of generic demand in the us and 25 per cent of all
medicine in
UK India contributes the second largest share of pharmaceutical and biotech
workforce in the
world. In march 2018, the indian pharmaceutical market grew at 9.5 per cent year-on-
year.
With 71 per cent market share, generic drugs form the largest segment of the indian
pharmaceutical sector. India has become the third largest global generic API merchant
market
by 2016, with a 7.2 per cent market share. The country accounts for the second largest
number
of abbreviated new drug applications (ANDAS) and is the world’s leader in drug
master files
(DMFS) applications with the us indian drugs & pharmaceuticals sector has received
cumulative FDI worth us$ 15.59 billion between April 2000 – December 2017.
Indian drugs are exported to more than 200 countries in the world, with the us as the
key market.
Generic drugs account for 20 per cent of global exports in terms of volume, making
the country
the largest provider of generic medicines globally and expected to expand even
further in
coming years. India’s pharmaceutical exports stood at us$ 17.27 billion in 2017-18.
The government of India plans to set up a us$ 640 million venture capital funds to
boost drug
discovery and strengthen pharmaceutical infrastructure. The ‘pharma vision 2020’ by
the
government’s department of pharmaceuticals aims to make India a major hub for end-
to-end
drug discovery.
Indian pharmaceutical industry analysis
• Indian pharma companies are capitalising on export opportunities in regulated and
semi-
regulated markets
• In fy17, India exported pharmaceutical products worth us$ 16.8 billion, with the
number
expected to reach us$ 40 billion by 2020. During April 2017–February 2018, India
exported
pharmaceutical products worth ₹. 767.17 billion (us$ 11.90 billion).
• Indian drugs are exported to more than 200 countries in the world, with the us as the
key market
• India is the world’s largest provider of generic medicines; the country’s generic
drugs account
for 20 per cent of global generic drug exports (in terms of volumes)
• Around 40.6 per cent of India’s us$ 16.8 billion pharmaceutical exports in 2016-17
were to the
American continent, followed by a 19.7 per cent to Europe, 19.1 per cent to Africa
and 18.8
per cent to Asian countries. The indian pharmaceuticals market witnessed growth at a
cagr of
5.64 per cent, during fy11-16, with the market increasing from us$ 20.95 billion in
fy11 to us$ ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 4
27.57 Million in fy16. The industry’s revenues are estimated to have grown by 7.4 per
cent in
FY17.
• Indian pharmaceutical market grew 5.5 per cent in cy2017 in terms of moving
annual turnover.
In march 2018, the market grew at 9.5 per cent year-on-year with sales of ₹10,029
crore (us$
1.56 billion).
• By 2020, India is likely to be among the top three pharmaceutical markets by
incremental
growth and 6th largest market globally in absolute size.
• Increase in the size of middle class households coupled with the improvement in
medical
infrastructure and increase in the penetration of health insurance in the country will
also
influence in the growth of pharmaceuticals sector.
as per 2018
as per 2018 ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 5
Chapter- 2
Organizational profile
Strides Shasun Ltd
Strides Arcolab is an Indian pharmaceutical company, headquartered at Bangalore in
Southern
India. The company manufactures pharmaceutical products, over-the-counter drugs
and
nutraceuticals. Products include soft gel capsules, hard-gel capsules, tablets and dry
and wet
injectables. Its soft gel manufacturing capability consists of an annual capacity of
50,000
machine hours or about three billion soft gel capsules. The company has 15
manufacturing sites
in six countries and marketing presence in 50 countries. In the united states and
Canadian
markets, the company partners with generic companies to supply retail and hospital
generics
in injectable products and softgels. In European markets, it has long-term
relationships for the
development of projects and supply agreements with the European companies. In
Australia and
new zealand, the company is engaged in manufacturing and supply of soft gels and
value-added
manufacturing. The company has development and supply agreements with south
african
companies. The company's stock trades on the Bombay stock exchange and on the
national
stock exchange of India.
Strides arcolab changed name to strides shasun ltd after an amalgamation of shasun
pharmaceuticals with strides arcolab. In september 2014, the board of directors of
both the
companies had approved a scheme of amalgamation between the two companies.
logo before mereger logo after merger ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 6
Worldwide offices
• Emerging market facility
• FDF
Infrastructure of the company: ORGANIZATION STUDY ON
Department of MBA, DSATM, Kanakapura Road, Bangalore- 560082 Page 7
2.1Background/ Mile stone of strides shasun
Incorporated in 1990, Strides Shasun Limited is a vertically integrated global
pharmaceutical Company headquartered in Bangalore, India. The Company has two
business verticals, viz., Regulated Markets and Emerging Markets.
Strides has global manufacturing foot print with 7 manufacturing facilities spread
across
three continents including 5 US FDA approved facilities and 2 facilities for the
emerging
markets.
The Company has a dedicated R&D facility in India with global filing capabilities and
a
strong footprint across 100 countries. These are the major throw back of the company.
• 1990
Strides pharmaceuticals private limited, a first-generation company established in
Vashi, new Bombay.
• 1992
Nigeria export started in this year.
• 1994
Venture capital funding was obtained from Schroders.
• 1995
New sterile manufacturing facility in Bangalore commenced production
Established soft gelatin capsule plant manufacturing was established in India
• 1996
A bulk drug facility in Mangalore, acquired plama laboratories limited,
Company name changed to strides arcolab limited
• 1999
Entered LATAM market through investments in Infabra, Brazil
Acquired Remed laboratories
Acquired global Remedies limited, a manufacturing plant at Hosur, Tamil Nadu
Plama laboratories and remed laboratories merged into strides arcolab
• 2000
Company listed on the national stock exchange (NSE)
Acquired strides soft gelatin facility in the USA ORGANIZATION STUDY ON
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• 2001
Acquired Bombay drugs & pharma’s limited which has manufacturing facilities in
Tarapur, Maharashtra and Panoli, Gujarat
• 2002
Company listed on the Bombay stock exchange
Acquired a stake in Solara, Mexico and set up manufacturing plants in brazil and
Mexico.
Bombay drugs & pharmaceuticals merged into strides arcolab
• 2003
Commenced development and manufacture of drugs against AIDS, TB and Malaria
• 2004
Entered into a joint venture with Akorn Inc., USA to penetrate the us hospital market
for sterile products
• 2005
Inaugurated the global research and development centre, STAR technology and
research or STAR, at Bangalore
• 2006
Entered into an alliance with the Clinton foundation for supplying AIDS drugs;
acquired ICN valeant sterile's manufacturing unit in Poland; acquired a controlling
stake in Beltapharm SPA in Italy; acquired drug houses of Australia (Asia) Pte
limited,
Singapore; entered into a joint venture with invent Farma in Spain to market products
in the Spanish and Portuguese markets
• 2007
Formed a joint venture with Sagent pharmaceuticals for specialty products in USA.
Acquired Grandix, a leading brand marketing company, to enter the indian domestic
market; bought out stake and acquired 100% ownership of farma plus as in Norway
Ceded 50% ownership in LATAM operations to aspen group
Formed a joint venture with Aspen Group to set up an oncology facility in India.
• 2008
Entered into a significant licensing deal with GlaxoSmithKline pharmaceuticals for
distribution in over 95 countries ORGANIZATION STUDY ON
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Acquired controlling stake in ascent pharma health, an AXS listed company and a
major
generics player in Australia.
• 2009
Launched ray of life, a critical care division with a portfolio of specialty products
addressing the hospital segment in India.
Launched Starflu to treat H1N1.
Restructured business divisions into pharma (pharma generics and branded generics)
and specialty.
• 2010
Entered into collaboration with Pfizer