INTRODUCTION Ayurveda is an ancient holistic system of medicine and natural healing from India and is the oldest known form of healthcare in the world. The world Ayurveda roughly translates as “The Science of Life.” It is merger of two Sanskrit words: „Ayu‟ (the root o f ayur & ayus ) which means „life,‟ and „Veda‟ which means a combination of „science, knowledge and wisdom.‟ According to Ayurveda, first noted by the ancient Ayurvedic scholar Charaka: human life is the combination of mind, body, senses and soul. Ayurveda sees that the senses and the mind work in conjunction with one another and greatly influence our physiology. Ayurveda is not just a medical system. It sees human beings as an integral part of nature. There is historical evidence of Ayurveda in the ancient books of wisdom known as the Vedas, written over 6,000 years ago, of which only a small portion is available to us from that time. Tibetan medicine and traditional Chinese medicine both have their roots in Ayurveda. Early Greek medicine also embraced many concepts originally described in the classical Ayurvedic medical texts. Ayurveda has been used and practiced throughout the subcontinent, Indonesia and many other countries in the surrounding region for thousands of years, although it was often suppressed during various occupations in those areas. Recently the western world, particularly Europe and the United States, has become increasingly fascinated with and interested in Ayurvedic medicine. Ayurveda has been a lively system of health with an unbroken practice since 3000 years. Although Ayurveda as a system of medicine has been in practice in India for centuries but its growth as an industry has commenced only a few years back. This was mainly on account of lack of awareness and initiative by its practitioners, industry and even the Government
SIGNIFICANCE An organization is a powerhouse of resources through which manufacturing and production operations are effectively carried out. It comes into existence when several minds are
bound together through effective and efficient communication along with harmonious interpersonal relations for contributing towards a common endeavor The organization study in Ayurveda industry is more relevant. Ayurveda is gaining more popularity recent times. Ayurveda is a pure stream of medical system that emerged from the fountainhead of the Vedas. It differs from the other systems of medicine in that it takes a holistic approach and strives for harmony between a human being and the entire environment around him. So the organization study has conducted in Pankajakasthuri Herbals India Ltd [PKHIL]. Pankajakasthuri has established an overwhelming presence across the globe with a vast range of products and services in Ayurvedic sector. Pankajakasthuri has a well diversified product range and good number of institutions that too under the aegis of Dr. J Hareendran Nair. The company was established under the name and style of „Pankajakasthuri Herbals India (P) Ltd. in 1988. It is Kerala‟s first ISO 9000 certified c ertified company in Ayurvedic medicine. It could make its presence globally and undertakes various projects in Manufacturing, Research and Development, Education, Healthcare, Health tourism etc.
OBJECTIVES I.
To study the overall structure & function of the organization.
II.
To study about structure & functions of various departments
III.
To have an idea about the products & production process in the organization
IV.
To know the major issues faced by the company
V.
To identify the SWOT of PKHI
RESEARCH METHODOLOGY DATA COLLECTION
The organizational study will be conducted by collecting information from both primary and secondary sources PRIMARY DATA
bound together through effective and efficient communication along with harmonious interpersonal relations for contributing towards a common endeavor The organization study in Ayurveda industry is more relevant. Ayurveda is gaining more popularity recent times. Ayurveda is a pure stream of medical system that emerged from the fountainhead of the Vedas. It differs from the other systems of medicine in that it takes a holistic approach and strives for harmony between a human being and the entire environment around him. So the organization study has conducted in Pankajakasthuri Herbals India Ltd [PKHIL]. Pankajakasthuri has established an overwhelming presence across the globe with a vast range of products and services in Ayurvedic sector. Pankajakasthuri has a well diversified product range and good number of institutions that too under the aegis of Dr. J Hareendran Nair. The company was established under the name and style of „Pankajakasthuri Herbals India (P) Ltd. in 1988. It is Kerala‟s first ISO 9000 certified c ertified company in Ayurvedic medicine. It could make its presence globally and undertakes various projects in Manufacturing, Research and Development, Education, Healthcare, Health tourism etc.
OBJECTIVES I.
To study the overall structure & function of the organization.
II.
To study about structure & functions of various departments
III.
To have an idea about the products & production process in the organization
IV.
To know the major issues faced by the company
V.
To identify the SWOT of PKHI
RESEARCH METHODOLOGY DATA COLLECTION
The organizational study will be conducted by collecting information from both primary and secondary sources PRIMARY DATA
Primary data is collected by unstructured interviewing the officials and employees of the organization. Primary data is more reliable and accurate than any other data.
Interviewing with key peoples in the company
Observations
SECONDARY DATA Secondary datas are very important source of data used in the study. It includes
Magazines
Department manuals
Annual report
Official website
Textbooks
LIMITATIONS
Study is conducted within a short period. Time is a major limiting factor to make a deep study and analyze about the organization
The respondents have Organizational bias. Major of their response where in favor of their Organization. This lack of knowledge has resulted in some errors.
Employees are too busy with their work. So they have no time to give information.
CHAPTERISATIONS
Chapter 1: is named as “Introduction”. It includes Introduction, significance, objectives,
Research methodology, limitations, chapterisation of the project.
Chapter 2: is a view towards the industry which involves the organization selected for
this study. Ayurvedic medical industry is selected for the study so it gives a brief description of the industry. It contain Ayurvedic medicine industry with in India and Ayurvedic medicine industry with in Kerala
Chapter 3: Deals with the company profile and it includes history about the company,
Objectives of the Company, Vision, Mission and Organisational Structure
Chapter 4: Deals with company analysis and it includes both departmental profile and
product profile. This report tries to present all the departments in an analytical way.
Chapter 5: Deals with the competitive analysis and it includes both Porters five force
model analysis and SWOT analysis. It says about the competition in the industry, bargaining power of the suppliers and customers, the threats of new entrants and substitutes
Chapter 6: Deals with findings, conclusions & suggestions
Bibliography
Annexure
AYURVEDIC MEDICINE INDUSTRY WITHIN INDIA Ayurvedic medicines are produced by several thousand companies in India but most of them are quite small including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that total number of products from the entire Ayurvedic production in India is on the order of one billion dollars (US). The industry has been dominated by less than a dozen major companies for decades joined recently by a few others that have followed their lead so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within th e broad category of “Fast Moving Consumer Goods” [FMCG; which mainly involves foods, beverages, cigarettes etc]. Most of the large Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines particularly in the areas of foods and toiletries [soap, toothpaste, shampoo etc] where there may be some overlap with Ayurveda such as having traditional herbal ingredients in the composition of toiletries. The key suppliers in Ayurveda are Dabur, Baidyanath and Zandu which together have about 85% of India‟s domestic market. Dabur India Ltd. is India's largest Ayurvedic
medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly nonmedicine items such as foods and cosmetics. Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis. These materials constitute only 7% of Dabur's total revenue (thus, less than 50 million dollars). Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88% share. Other major products
are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder). Sri
Baidyanath
Ayurvedic
Bhawan
Ltd.
(Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Baidyanath has a sales volume of about 350 million dollars, but most of the product sales are in the cosmetic range. The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Included items are herbal teas, patent medicines, massage oils, and chyawanprash. Zandu Pharmaceutical Works was incorporated in th
Bombay in 1919, named after an 18 -century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S. The Himalaya Drug Company was established in
1934 in Bangalore. It currently has a business level of about 500 million dollars and has a U.S. distribution division (Himalaya USA). It is known in the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first
marketed in India in 1955. Charak Pharmaceuticals was founded in 1947, and
currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies. It has gained a large advantage with its new product Evanova, a preparation containing 33 herbs and minerals and nonhormonal active ingredients used as a menopause treatment alternative to HRT. Soya is one of the main ingredients in this product. The product also contains Ayurvedic herbs that act like selective estrogen receptor modulators as well as asparagus root ( shatavari), which reduces the frequency and intensity of hot flashes. Vicco Laboratories was established in 1958. It
mainly produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years. The Emami Group, founded in 1974, provides a
diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.
AYURVEDIC MEDICINE INDUSTRY WITHIN KERALA Ayurvedic Medicines are produced by several thousand companies in India, Kerala is the cradle of Ayurveda and the traditional system of medicine. The Ayurvedic manufacturing sector in the State comprises nearly 760 units having GMP certification (report by Ayurvedic Medicine manufacturers Association). Kerala had mastered the art of curing through Ayurveda (The traditional medical science) many years ago. Kerala grows many herbs needed for their
manufacture. The Kerala State medicinal plant board has 500 hectares of land under cultivation of medicinal plants to promote cultivation of specific herbs and medicinal plants to meet future demands. The ayurvedic drug manufacturers in Kerala with the state government and central assistance are putting up a Rs.62.5 crore company to set up a world standard QC lab, R&D facility for the industrial benefit with all the modern equipment for advanced drug standardization, Quality and efficacy. This will also develop own protocols of quality certification equivalent to other global standards.
Some of the key suppliers of Ayurvedic
medicine in Kerala are Kottakkal Arya Vaidya Sala, an Ayurvedic Medical Cente
Founded in 1902, by Vaidyaratnam P.S. Varier, the Kottakkal Arya Vaidya Sala is today the largest and most trusted institution of its kind in India. Kottakkal Arya Vaidya Sala is a charitable institution offering authentic Ayurvedic medicines and treatments to patients from all over India and abroad. The Arya Vaidya Sala also manages one Ayurvedic Hospital at Kottakkal in Kerala and another at Delhi, cultivates medicinal plants, manufactures medicines, conducts research programs, publishes books and seminar reports on Ayurveda and related subjects, and runs a Kathakali Academy. Sri Varier, scion of an illustrious family of Kottakkal in the Malabar region of Kerala, was a renowned Ayurvedic scholar and academician, an able practitioner, a successful entrepreneur, and a genuine philanthropist. Sri Varier studied Ayurveda under the classical Gurukula system. He also acquired proficiency in the practice of Allopathy. In 1933, in recognition of his valuable services to humanity, Sri P. S. Varier was conferred the distinguished title of "Vaidyaratna" by His Excellency the Viceroy and Governor General of India. Nagarjuna Ayurvedic Group
NAGARJUNA AYURVEDIC GROUP is the first corporate initiative in Ayurvedic sector in Kerala - the Southern State in India rightfully called as the 'Cradle of Ayurveda'. Our Corporate VISION is to be the best solution provider in health care in the world through Ayurveda. Nagarjuna created the unique synergy by bringing together the Ashtavaidya and the Aryavaidya traditions, also integrating Ayurvedas modern ethos and latest technology. Nagarjuna manufactures over 500 traditional Ayurvedic products as per the traditional reference texts
like
Sahasrayogam,
Ashtamgahrudayam,
Bhaishjyaratnavali
etc.
Simultaneously
Nagarjuna understands that there are limitations to the reach and acceptance of classical Ayurvedic products and due to this there is a requirement for more palatable and convenient modern product forms and hence it has developed about 100 branded proprietary products, which are curative as well as supportive in their health care functions. At the same time, efforts are also taken to convert many of the traditional Ayurvedic preparations into the modern, more palatable and convenient forms, like the concentrated liquid „Kashayams‟ (medicinal herb decoctions) converted to Tablets.
Aushadhi
Largest producer of Ayurveda medicines in public sector in India. One among the few Public Sector companies, consistently making profit and paying dividend to Government of Kerala since 1999. Supplies medicine to Government of Kerala for the distribution to common man through ISM Dept. A GMP and ISO 9001-2008 certified company. Produces 450 Ayurvedic formulations - both classical and proprietary. Sole supplier of medicines to Government Ayurveda Hospitals and proprietary.
Supplier of Ayurvedic Medicines to
Government Hospitals and dispensaries of other states like Madhya Pradesh, Chattisgarh, Pondichery,
Rajasthan, Orissa, New Delhi etc. Caters to the need of public through a vast
network of 610 agencies spread all over the nation. Governed by dedicated board of directors. Sitaram Ayurvedic Pharmacy Ltd Sitaram Ayurveda Pharmacy Ltd is an Ayurvedic company which manufactures
medicines in Thrissur, Kerala state. It is the first Ayurvedic company in India to get Good Manufacturing Practice (GMP) Certificate for its production facility in Thrissur. The company has a multi-specialty Ayurvedic hospital, which has the facilities to practice all the eight branches (Ashtanga) of Ayurveda as described in Ashtangahridayam. Sitaram Ayurveda laboratory also observes strict in house standards to ensure highest quality in medicines. The laboratory has got recognition from Kerala and India Government Agencies. Sitaram is
constructing a 100 bedded Rs10 crore invested eight storied super specialty hospital in the Thrissur, envisaged as the first of its kind Ayurveda super specialty hospital in the country Sitaram Ayurveda Pharmacy is considered among the oldest Ayurvedic institutes in Kerala. Its history dates back to 1921, when the company started with the blessings of Maharaja of erstwhile Kochi princely state, Rama Varma. Sitaram ayurveda pharmacy has state of the art distillation system for manufacturing aasav and arishtas (medicated alcohols) and liquid medicines. they have their own pharmacoepia to that they created the unique medicines which are greatly compatible to ayurvedic theme of medicines.
HISTROY OF THE COMPANY The company was established under the name “Sri Dhanwandhary Ayurvedics” in 1988 as a sole proprietorship of Dr. Hareendran Nair. It is Kerala‟s first ISO 9000 certified company in Ayurvedic medicine. It could made its presence globally and undertakes various projects in manufacturing, research and development, education, health care, health tourism etc. Pankajakasthuri Herbal India Limited is vowed to explore the vast Indian flora to bring out life saving preparations with no side effects and 100% efficiency.
The dedication and
enthusiasm shown by Dr. Hareendran Nair and a battery of researchers have made themselves capable in curing diseases which other systems of medicines presumed incurable. In 1990 the proprietor realized some of the reasons for the failure and re-oriented business. They decided to introduce a new product called “Pankajakasthuri” meant for sneeze and other breathing disorders. The management formulated some new marketing techniques like giving more importance to advertisement. As a result the sales turnover went up and the firm became profitable. During the time some labour disputes originated. As the management cannot settle the problem properly they decided to windup the enterprise. But really the management does not want to close the enterprise because of the unsettled dispute. At last this problem gave the birth of a new concern named “Pankajakasthuri Herbals India (P) Ltd” on 1st April 1996 with a capital of 10.7 lakhs. The firm was registered as a private limited company whose shareholders are the members of one family. Dr. J. Mahendran Nair is the elder brother of Dr. J. Hareendran Nair The company commenced its commercial production during 1996 and within a short span it has grown into dominant establishment. The company situated at Poovachal, a remote village in the Southern part of Kerala. The company could provide employment from 150 to 1000 people. The Managing Director Dr. J. Hareendran Nair graduated in Ayurvedic Medicine from Government Ayurvedic College, Thiruvananthapuram. Instead of taking up a job as a medical officer he took the challenge to setup a clinical research laboratory at his village Poovachal. Pankajakasthuri is a total herbal remedy for all sorts of breathing difficulties was found out by
years of hard work and research by Dr. J. Hareendran Nair He succeeded a lot in business as well as research of medicines. After the manufacture of Pankajakasthuri, the company developed two more medicines named Ilogen excel for diabetes mellitus and soma tone for hypertension.
The company
developed various herbal soaps namely Kasthuri Herbal Soap, Kasthuri Herbal sandal soap, Kaveri herbal soap and Kasthuri herbal baby soap. They are pride for manufacturing the first herbal baby soap in the world. The product offering from Pankajakasthuri Herbal India Pvt. Ltd includes drugs for ailments ranging from peptic bladder stone and arthritis to dermatalogical disorders. One of the medicines developed by Dr. J. Hareendran Nair is an exact solution for the symptoms exhibited by SARS and the product is named as Pankajakasthuri-Decade capsules. Pankajakasthuri Herbals India Pvt. Ltd. has grown from a local outlet to a multinational Ayurvedic research centre. The company markets its products to Malaysia, Singapore, South Africa and some Middle Eastern countries. It has also entered into the Kingdom of Saudi Arabia with an export order for medicines like Pankajakasthuri Breath Easy, Soma tone and Ilogen excel. The company has scored a 100% growth rate with its innovative product range and drug category license are awaited from USA and Japan. All the machineries keep the GMP standard and are leased on the latest technology and give high performance and least wastage. The consistency in developmental efforts implementation of ISO 9002 follow up of GMP standards and the establishment of institutions like Pankajakasthuri Ayurvedic Medical College Pankajakasthuri Herbals India Pvt. Ltd a Centre of excellent in Ayurvedic industry. Today Pankajakasthuri has established an overwhelming presence across the globe with a vast range of products and services in Ayurvedic sector.
The company has recorded a
phenomenal growth rate during the current year while totaling up revenues of over Rs. 220 million. Moreover strategically sound marketing sense and techniques employed by a talent pool of professionals and has seen to the increasing presence of the company‟s products in the shop shelves around the world. The company has mainly for product divisions for handling a diverse product range namely OTC, FMCG, Ethical and Classical Divisions. Each division is headed by separate
product managers who are supported in the field by a strong marketing network spread all over the country. The flagship product of the company is the Breath Easy range brining in 70% of the sales volume. These products have been the market leaders in their categories since 1990‟s. The OTC division handles 9 products, the FMCG division 7 products, and the classical division more than 440 products. In order to meet the spiraling demand the company has built a state of the art manufacturing facility at Poovachal, Trivandrum complying with international GMP standards with a built-up area of more than 100000 square feet. This facility is scheduled to be fully operational by April 2005. The company has a full-fledged R&D facility where original research work is done on various aspects of Ayurveda, for complying with the international norms. The various divisions are headed by doctorate holders with long experience in pharmacology, biochemistry, Phylochemistry etc.
Specific research work is conducted in areas like Asthma, Diabetes,
Hypertension, Arthritis, Liver and Cardiac diseases. Panchakarma Therapy is a classical form of detoxification, practiced in olden day by the aristocracy as a method for cleansing the body and stay healthy. Panchakarma therapy has been made affordable for millions, by Pankajakasthuri by setting up a large number of centers all over the world where the system is practiced for the last so many centuries. The use of standardized practices by highly trained practitioners, quality machines etc make these centers highly popular. A herbal village where the Panchakarma therapy can be practiced amidst the bountiful splendors of nature with all its serenity for the specific needs of the discerning customers in getting ready in the village Vellanad, 18 km from the city of Trivandrum. This was opened for occupation by June 2005. This centre provides a perfect ambience for relaxation and recreation under the care of doctors and well-trained masseurs. Pankajakasthuri Herbals Research Foundation‟s one of the divisions of the group has developed a sprawling 13 acre herbal garden in Poovachal, Trivandrum. Here rare herbs are cultivated and utilized in the preparation of Ayurvedic medicines at the Pankajakasthuri factory.
In addition, the company has also floated a Pankajakasthuri Herbal Garden scheme in association with the Government of Kerala to promote the cultivation of medicinal plants in hospital across Kerala. This scheme has also been extended to the reserved settlements of the Tribal communities near forests. The company has also initiated a scheme for the cultivation of all the 740 documented species described in the famous Horthus Malabaricus, the renowned 17
th
century work. A large
number of these species are lost or unidentifiable today. The objective is to identify those presumed lost and create a biological environment suitable for the propagation of the species for the benefit of the future generation. In its effort to popularize the great science of Ayurveda and drive its benefits to the masses Pankajakasthuri Herbals Research Foundation has set up an Ayurvedic Medical College at Kattakada ,Trivandrum. The Pankajakasthuri Ayurvedic Medical College is headed by very eminent personalities in the field of Ayurveda today. The college offers top class facilities a well-stocked library of writings on Ayurveda, well-equipped drug standardization, laboratory, publication division and a highly experienced faculty. The college also provides a stimulating and inspiring ambience, conducive for learning.
OBJECTIVES OF THE COMPANY Pankajakasthuri Herbals India Private limited has deep routed their activity mainly in the area of Ayurvedic medicine manufacture and Ayurvedic treatment. The goodwill they bear now is obtained through single product i.e. Pankajakasthuri Breath Easy granules still they are enjoying an exploitative monopoly in the field of particular Pankajakasthuri breath easy granules. There are some firms that has a bitter experience imitating in the manufacture of this particular product and they faced a very bid failure. Even in a recent future or in a later stage there is a very remote chance in any firm coming with a product with a competency to come over the breath easy granules of Pankajakasthuri. From the starting year of the company it is generating a huge profit into the current year. So in the normal course there is no need for a rethinking and it is headed by an eminent and dynamic business man. Pankajakasthuri is well ready to diversify the business and it is enjoying a better result out of this diversification. Even it
is diversified the business into various areas the main focus is on the technology based on Ayurveda, being it is a firm which is giving much importance on tradition. The main areas of diversification are on the following areas
Ambadi milk
Ambadi fuels
Pankajakasthuri Ayurveda Medical College
Shantham Herbal village
Herbal GardenTourism division
Pankajakasthuri college of engineering & technology
VISION The company has an inspiring and ambitious vision for future growth. The vision 2020 targets the systematic popularization of Ayurveda. So that by 2020 every human being shall use Ayurveda at least for meeting a part of his or her general healthcare needs.
MISSION The company is vowed to explore the vast Indian flora to being out life saving herbal preparations with no side effects and 100% efficacy. The dedication with a missionary zeal and enthusiasm Dr.J.Hareendran Nair and his team of Ayurvedic researchers are succeeding in curing diseases which other systems of medicines presumed incurable. At most purity and superlative standards are maintained by conscientious research and strict quality control measures for the people to enjoy the benefits of traditional Ayurvedic medicines. With a view to popularize the ancient system of panchakarma treatment centers are being opened all over the globe wherever possible. The advent of Pankajakasthuri medical college in 2002 is also one of the mission came into fulfillment. Translate the intrinsic goodness of Ayurvedic Science into top quality offerings that provide consumers the true benefits of A yurveda‟s holistic goodness.
ORGANISATIONAL STRUCTURE Organisational Set Up
Organization structure is a basic frame work with in which the manager‟s decision making behavior. Structure basically deals with relationships. The structure of a system is the arrangement of its subsystem and components of a given moments of time. Organization structure can be viewed as established pattern of relationships among the components of the organization. It refers to the differentiation and integration of activities and authority, roles and relationship in the organization. It is the pattern in which various part or components are interrelated or interconnected and also shows the relationship among various activities and positions. Since various persons hold these positions, the structure is the relationship among people in the organization. Organization structure is set forth initially by the major components or subsystem and then by establishing relationship among these subsystems. It is the patterning of these relationships with some degree of permanency, which is referred to as organization structure.
Chart No. 2.1
Management
Pankajakasturi Herbals India Ltd is managed by a team of experts which belongs to a single family. Dr. J. Hareendran Nair is the founder and Research and Development chief of the prestigious organization. The firm was registered as a Private Ltd Company. The management includes the following persons
Dr. J. Hareendran Nair
Managing Director
Mr.MGK Nair
Chief Operating Officer
Mr.V.Sreekumar
Finance Director
Mr. Arun Visakh Nair
Director (Sales & Marketing) The Board of Directors includes the following persons
Mr.J.Mahendran Nair , Chairman
Dr.J.Hareendran Nair , Managing Director
Mrs.Asha Hareendran Nair , Director
Mr.K.C.Janardhanan Nait , Director
Mrs.K.Pankajam , Director
Mr.K.Kuttappan Nair, Director
Mr.V.Sreekumar, Director
PRODUCTION DEPARTMENT Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. The production department is headed by production manager who look the entire production of various products. There are nearly 200 workers both male and female working under production and packaging section respectively. These workers are paid on monthly basis. For any overtime work extra charges are paid and transport facilities are also provided. Production department is also responsible for preparing the monthly production schedule from planning. The raw materials are purchased from states like Tamilnadu, Gujarat etc. and some are purchased locally. The company has mainly four product divisions for handling its diverse product range namely OTC, FMCG, Ethical and Classical Divisions. Separate product managers head each division. Other facilities such as canteen and crèche are also provided to the workers.
Responsibilities of a Production Manager A production manager is involved with the planning, coordination and control of manufacturing processes.
A production manager ensures that the products are produced
efficiently. They ensure the correct amount is produced at the right cost and at the right level of quality.
overseeing the production process, drawing up a production schedule;
ensuring that the production is cost effective;
making sure that products are produced on time and are of good quality;
working out the human and material resources needed;
drafting a timescale for the job;
estimating costs and setting the quality standards;
monitoring the production processes and adjusting schedules as needed;
being responsible for the selection and maintenance of equipment;
monitoring product standards and implementing quality-control programmes;
liaising among different departments, e.g. suppliers, managers;
working with managers to implement the company's policies and goals;
ensuring that health and safety guidelines are followed;
supervising and motivating a team of workers;
reviewing the performance of subordinates;
Identifying training needs.
A production manager is involved in both the pre-production (planning) stage as well as the production (control and supervision) stage
Structure of the Production Department PRODUCTION MANAGER
ASSISTANT PRODUCTION
MANAGER
PRODUCTION EXECUTIVES
PACKING SUPERVISOR
PRODUCTION SUPERVISOR
PACKING ASSISTANT
PRODUCTION ASSISTANT
PRODUCTION WORKERS
PACKING WORKERS
Chart No. 4:1
Product Profile Pankajakasthuri today offers a wide variety of products developed to enhance the quality of our life. While some of them are renowned remedies for aliments and lifestyle disorders, some others are favorite life enhancers The Pankajakasthuri products broadly fall into four categories. I. II.
OTC Products (Over-The-counter) FMCG Products (Fast Moving Consumer Goods)
III.
Ethical Products
IV.
Classical Products
Number of Products under Various Groups GROUP
NUMBER OF PRODUCTS
OTC
7
FMCG
7
ETHICAL PRODUCTS
11
CLASSICAL PRODUCTS
440 Table No. 4.1
Over The Counter Products
Pankajakasthuri Breathe EC Granules and Tables
Pankajakasthuri Breathe EC Syrup
Pankajakasthuri Brahmi Syrup
Pankajakasthuri Mygrane Oil
Pankajakasthuri Dandruff Oil
Clear foot Ointment
Kasthuri Cough Mix
Fast Moving Consumer Goods
Kaveri Fairness Cream
Kaveri Milk Cream
Kaveri No Pimple Cream
Kaveri Baby Fairness Oil
Kaveri Hair Tonic
Kaveri Herbal Soap
Kasthuri Herbal Soap
Ethical Products Ethical products is a natural extension of the knowledge accumulated during the curing processes adapted at their specialty clinics
Illogen Excell Tablets
Somatone Tablets
Pept-O-Tone Capsule
Liv-Care Plus Tablet
Uroherb Capsule
Femino-Care Capsule
Pile-O-Tone
Orthonervin Tablet
Derm Care Tablet
PK-Prost Capsule
Brahmi Capsule
Classical Products Even when striving relentlessly to develop new Ayurvedic preparations to fight the maladies resulting from the changing lifestyle, Pankajakasthuri takes special care to protect the age old traditions of Ayurveda. A wide range of Classical Ayurvedic products are recognized to be best in the industry. These products includes
Arishtas
Kashayams
Lehyas
Thailas
Oils
Choornas
Capsules
Tablets
Traditional Gulikas
Production Process Normally the sales of Pankajakasthuri BreatheEC granules are so much linked with seasonal fluctuations. In the month of October to March, sales will be in the upper graph. Because of this seasonal cyclical variation, production of the brand should adjusted so that there will be no idle stock within the godown which is waiting for sale. Hence normally there is procedure for sale is following by the production department as follows.
Receiving request from the distributer. Super stockiest is placing order through the branch office, if the trading is an interstate trade.
Analyzing the order, and verify that there is sufficient stock, whether it is not then giving an anticipated order to the purchase department for the procurement of particular item
Issue the semi finished jobcard by the production and planning department
Arranging the production process for the required only
Monitoring the distribution and collection procedures through respective in charges
The following chart showing production process PLACING ANTICIPATED ORDER
PURCHASE RAW MATERIALS
ISSUING SEMIFINISHED JOBCARDS
PRODUCTION PROCESS
FINISHED PRODUCT
Chart No. 4.2
Raw Materials The raw materials which is used in Pankajakasthuri production unit includes
Herbal raw materials
Consumable products
Pankajakasthuri Herbal Research Foundations, one of the divisions of the group has developed a sprawling 13 acre herbal garden in Poovachal, Trivandrum. Here rare herbs are cultivated and utilized in the preparation of Ayurvedic medicines at the Pankajakasthuri factory. Some herbal raw materials are purchased from states like Tamilnadu, Gujarat etc. and some are purchased locally. Consumable products includes
PLASTIC (Bottles ,Cap, Spoon, Plastic foils)
CARTONS (for packaging)
PRINTED CARTONS (for soap packing)
PRINTED PAPERS (for labeling the medicine) The management directly communicates with the suppliers, select the suppliers on the
basis of the price, availability, quality etc
Production & Distribution Tactics 1)
Different language for different areas It is one of the interesting promotion measures using by the Pankajakasthuri in order to
attract the rural mass. The rural penetration is possible only when the company is in a position to convey the messages to the less literate people of rural area. With this decision in mind Pankajakasthuri started to use local language in their labels when they started their product. Because it is a success still they are following the same strategy 2)
Attractive packing The company is much concentrated on packaging. Each step in packaging is much
carefully analyzed and only manual packaging system is still engaged to keep the traditional quality of the products. Only machinery using during packaging is a computerized batch number punching machine. 3)
Attractive affordable pricing The products of Pankajakasthuri are coming into the market with reasonably lesser price
than the competitor‟s price. Along with that they are maintained the quality at the top
Packing Section Packing is defined as the general group of activities in product planning, which involve designing and producing the container or wrapper for a product. There is a separate section for the packing of the products. Certain products such as cosmetics and soaps are packed in attractive wrappers in order to draw the attention of the customers. Manufacturing date, expiry date etc. is printed on the wrappers. In India, Pankajakasthuri uses labels of different languages targeting different states. Important decisions regarding packing and labeling is taken by top management. The package for capsules has been changed from blister packing to bottles which ultimately resulted in cost reduction
Maintenance Wing Maintenance is very important to extend the useful life of an asset. Maintenance has to reduce scheduled stoppages and breakdowns. It facilitate frequent performance checking, testing and providing inspections and skillful repair when required to ensure better service, availability and reliability. The effectiveness of production is highly dependent on the quality of maintenance service facility. For the proper maintenance and repair of plant and machinery, a separate maintenance wing functions under the control of General Manager. The principal objectives of this wing:
Is to maximize the availability and reliability of assets
To extend the useful life of assets by minimizing wear and tear and deterioration
To ensure operational efficiency of all equipment for emergency use.
To ensure safety of employees
PURCHASE DEPARTMENT The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this
role is ensuring stocks arrive on time and to the right quality. The purchasing department is responsible for acquiring the inventory that a company sells. To get more value for the company, the purchasing department determines the most desirable vendor source and does its best to acquire them at the lowest prices while maintaining mutually beneficial relationships with suppliers. Its goal is to procure inventory at the lowest acquisition costs. All purchases for the company is made by the purchase department .The purchasing function has emerged as a specialized organizational activity .The Success of the purchasing department depends upon the quality of the inputs and also upon the ability of the purchasing department personnel to analyze the inputs to the fullest extent. The purchase manager is the head of the purchase department. He has an assistant manager followed by two assistants.
Structure of the Purchase Department
PURCHASE MANAGER
ASSISTANT MANAGER
ASSISTANT
ASSISTANT
Chart No. 4.3
Procedure for Purchasing The company makes all purchases only after obtaining purchase requisition from the stores department. Purchase department has appropriate store coding for all of its raw materials and for packing materials like pet jar bottles, aluminium foils, empty capsules, duplex boards etc. Cartons and wrappers are purchased on job order basis. Most of the raw materials are purchased from Outside Kerala, especially from the northern part of India. Some are cultivated in the Company's own l3 acre herbal garden. Purchases are made both on cash and credit from external sources. For every credit purchase, the suppliers usually give thirty or more days to make the payment. The stores department generate purchase indent when the stock level maintained at the store reaches the re-order level. The purchase indent is handed over to the purchase department, which in turn generates purchase order; with this purchase order materials are ordered. Goods inward note is prepared based on the incoming material. Quality check is conducted on the incoming material to check whether the material stand up to the standard stipulated under the acceptable norms. Then they will prepare store inward note. According to the requirement of the production department the materials are issued.
The Following Chart Showing Purchasing Procedure ISSUE OF PURCHASE INDENT BY STORE DEPARTMENT
PLACE PURCHASE ORDER BY PURCHASE DEPARTMENT
PREPARATION OF GOODS INWARD NOTE
CHECKING OF INCOMING MATERIAL
PREPARATION OF STORE INWARD NOTE
Chart No. 4.4
STORE DEPARTMENT The success of the business depends to a large extent on the efficient storage and material control. As all the activities in any organization cannot be carried out at one point of time, storage is an inevitable process. Stores department shall check the material received and confirm that the material supplied meets all purchase order chart conditions.
Organogram Of Stores Department MANAGER (STORE)
ASSISSTANT
HELPER
Chart No. 4.5
Stores department is under the control of Purchase manager followed by stores manager, then storekeeper. The store-keeper looks after the various activities related to the storekeeping department. They are keeping minimum stock to every product. They are keeping 300 cases of Pankajakasthuri Breath EC as minimum and in the case of Kaveri fairness milk cream they are keeping 500 cases and 200 cases for soaps, moreover, Ilogen excel tablets. Peekay tablets etc also has minimum stock.
ACTIVITIES OF STOCK DEPARTMENT
Preparation of stock inwarding note
Goods are received by the store department after inspection by the quality control department.
At first they check the physical qualities like shape, color, smell. After the visual inspection the goods are placed under quaraentin region for chemical test to check the quality.
If the goods passed the test they are placed in the store for stocking. If they are not passed the test the goods are placed in the rejected region
According to the requirements of the production department the materials are supplied by the store department.
CHART SHOWING THE ACTIVITIES OF STORE DEPARTMENT
PREPARATION OF STORES INWARDING NOTES
RECEIVING THE GOODS
CHECKING THE GOODS
STOCKING
SUPPLY OF RAW MATERIALS
Chart No. 4.6
QUALITY CONTROL DEPARTMENT
Quality is defined as meeting the consumer (customer) needs, or the target set. Quality control emphasizes testing of products to uncover defects, and reporting to management who make the decision to allow or deny the release. The function of quality control department is designing quality which describes how to design a product or commodity which meets the consumers needs. The company having a fully fledged quality control department and normally functioning it as an associate of production department. Production department is completing the process of production only when the quality of such product is tested that it is carrying the required quality. Being the company is engaged in production of Ayurvedic medicines intended for the consumption of human beings functioning of the quality control department is a must. It is a necessity for the company department.
STRUCTURE OF QUALITY CONTROL DEPARTMENT
Chart No. 4.7
Quality Testing Mechanism
The first stage of quality measurement is to measure the quality of herbal raw materials which are purchased by the purchase department according to the anticipated order placed. First check the physical appearance like shape colour, texture etc. by visual identification. After this the raw material is placed under qrentin region where chemical tests are conducted to check whether more pesticides are there or not. If the tests are passed the QC issued a passed certificate and move the raw materials from quarentin region to finished goods area. If the tests are not passed the raw materials are moved from quarentin region to rejected area.
The second stage of quality measurement is to measure the quality of consumable goods. The size shape color etc. of the consumable goods is decided by the management. After that the QC check the goods for the emblem, label name, drug license number, dosage, indication, expiry date, manufactured date, volume, ingredient contents, art work, color, width etc and passed a pass certificate
The third stage of the quality measurement is to measure the quality of finished product i.e. check the quality of the product before packing. In this stage, check the physical appearance, shape, taste, ash content etc of the product. Also check the pH value and alcoholic content of the Arishtas, Kashayams, and Lehyas. If any change in the quality (physical appearance, shape, taste, ash content, pH value and alcoholic content) of any product with standard quality, that product is fully rejected.
The fourth stage of the quality measurement is to measure the quality and quantity of finished product after packing. First check the finished product containing issued raw materials. Then they check the quantity ie.1 batch contains 20 cartons, each cartoons contain 30 number. Then check the label, batch number, table and literature are properly issued. And also check the weight of carton, seal, and batch number.These products are use for treatment in the Pankajakasthuri medical collage, panchakarma centres and exported to abroad.
Quality Policy Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimised and quality maximised. This is often referred to as total
quality management and is part of the lean production methods used in modern industry. To uphold the legacy of time tested Ayurveda by producing and developing quality medicines using scientific methods and innovations. There is a quality circle in the company and this cycle included the following: •
Quality management
•
Quality inspectors
•
Quality officials who were checking the quality of each by product at every stage of
production. In quality circle, the person joined together are R& D Director, quality control Manager, and the quality inspector and the production department is following the decisions.
HUMAN RESOURSE DEPARTMENT The human resource department has to ensure that management and employees are aware of each other‟s needs. To maintain a healthy environment it must consider the basic factors such as ability to set clear cut goals for employees.
It should have the ability to communicate
effectively and provide continuous monitoring and coaching. In order to attract and retain the right people, human resource should help employees take the right steps to achieve rewards and job roles as per his or her aspirations. The strength of an organization therefore depends on the kind of people it engages.
STRUCTURE OF HUMAN RESOURCE DEPARTMENT
MANAGING DIRECTOR
HUMAN RESOURCE MANAGER
SUPERVISOR
WORKERS
Chart No. 4.8
Functions of the Human Resource Department
The functions includes a variety of activities, and key among them is
Deciding the staffing needs of an organization and whether to use independent contractors or hire employees to fill these needs
Recruiting and training the best employees
Ensuring the employers are high performers
Dealing with performance issues, and ensuring that the personnel and management practices conform to various regulations
Activities also include managing the approach to employee benefits and compensation, employee records and personnel policies.
Promotions
Reassignments
Position classification and grading
Salary determination
Performance appraisal review and processing
Duties and Responsibilities of Human Resource Manager
To maintain and develop HR policies. To develop the HR team, responsible for mentoring, guiding and developing a second line to the current position.
To ensure timely recruitment of required level / quality of Management staff, other business lines staff.
Provide active support in the selection of Recruitment agencies which meet the corporate standard.
Develop, refine and fine-tune effective methods or tools for selection / or provide external consultants to ensure the right people with the desired level of competence are brought into the organization or are promoted.
Prepare information and input for the salary budgets. Give focus on pay for performance and salary benchmarks where available.
To develop the HR business plan.
Ensure appropriate communication at all staff levels.
To facilitate / support the development of the Team members.
Ensure a motivational climate in the organization, including adequate opportunities for career growth and development.
Recruitment Procedures One of the main drawbacks of the company is in the recruitment process because there is no standard format followed in the recruitment procedure. The main strength followed in the recruitment processes are the following:1. Media advertisement is released for the managerial posts or for the executive top level posts. 2. Being the company is situated in distant rural village, there must be a sympathetic approach towards the rural unemployed mass. 3. Majority of the recruitment is from the locality or vicinity of the company.
Training Being majority of the people are from the local area, the need for the training is a must. On the job training and off the job training are given as per the need.
Job training programmes 1.
Seminars
An experienced person is called for explain about the various productions technologies, various marketing strategies, and various innovative finance decisions and for various new quality control techniques. When an unexpected situation arises or there is a need for implementation or to take measures for adopting government rules there may be sudden orientation programmes and seminars.
Interaction among the employees is allowed during the course of seminar so they can clarify their doubts as well. With the help of audio visual aids it is very easy to convince the employees regarding the new developments. 2. Guest Lecturers
Normally guest lectures are arranged for giving more familiarity for certain problems regarding the productivity of the firm. Guest lectures are provided by most experienced persons in the similar industry.
Working Time
Normal working time for workers – 8.30 am to 5 pm
Normal working time for office staff – 9.00 am to 5 pm o
Lunch time – 1.00 to 2.00 pm
Leave Rules Twenty annual leaves are available for the employees. Three late comings will be considered as one whole day leave and one employee is considered as late comer if he/she is late for 15 minutes without permission. Leave surrender facility is available for this twenty annual leave.
Holidays There are 13 holidays (4 national holidays and 9 festival holidays)
Suggestion Boxes Suggestion boxes are provided for the employees for making their suggestions.
Performance Appraisal The company is having a fully fledged performance appraisal system for annual increment and for production. The method of performance appraisal system followed by the
company is named as “Point Rating System.” Here the performances of the employees are r ated in the following criteria. 1.Timing
In timing process, time taken by employees to complete a particular work is counted. It includes close watching on the particular employees work and the time taken by them to complete a particular work. After comparing the time at various occasion and verify whether there is any improvement happened in his performance in the due course of time or whether he is eligible for getting the annual increment or promotion. 2. Nature of Work
The second criteria in evaluating the performance are the nature and quality of work performing by the employees.
The work allotted for the different grades of employees in
Pankajakasthuri can be differentiated into following classification:
Job which need some skill
Unskilled jobs
Dangerous jobs, i.e., job which need close contact with the running machines.
Non dangerous jobs like packaging, manual weighing, filling etc.
Employee Welfare Measures
Labor Welfare fund
Company is so much keen in the welfare of the employees. They are providing a special fund called “Labor Welfare Fund” for assisting employees need for money. The Management started the fund with Rs.25,000. Then all the employees become the members. The employees are paying Rs 100 per month at present
Employee Provident Fund
Employee Provident Fund is applicable for the company as per the provision of EPF Act. Contribution from the employees and employer is collected regularly and paying to the officials before the due date and they are very keen to avoid the penalty. The company is very prompt in filing the annual return within the due date.
Free Canteen Facility
Food is one of the primary needs of human being. Normally human beings are spending a large amount of their earnings for the need of food. This particular firm is providing better quality food and absolutely free. There is a facility for non-vegetarian food for the first working day of every month. Because of this facility the employees are so happy as they can save their part of salary. It is activating as a motivational tool for the whole employees. There is no distinction in this case for non-managerial staff with that of the managerial staff. This make a feel in the mind of low level employees that they are equally considered with that of the managerial staff. This will helpful for the firm in getting the maximum effort of the staff without pressuring them because he is well ready to pay his whole effort in getting the ultimate result of the firm.
Safety And Security Measures Pankajakasthuri is a well equipped with sort of safety measures and is capable of competing with any multinational company is providing safety and security measures for their
employees. The company is working continuously and majority of the processes are mechanized and there is lot of chances for hazardous for the people work close to the machine. But the company is providing the following measures for the betterment of its employees. Machineries using in production process are needed to be heated more than 200 degree centigrade and which are provided with glass wool coating in order to prevent the employees from getting accidents. Company is providing with three set of gloves for their casual labor in order to protect their hands from burning accidents and from rashers when they are working in the grinding sections. The company is giving awareness to the employees by placing some indication boards and graphs and some charts, some banners or by some audio video clippings.
Recreation Facility
Vishu Kaineetam
It is an another method of motivational tool aiming towards the employees. Vishu kaineetam is arranged for every staff on the date of vishu and here the amount paying as kaineetam is not relevant. Because even they are paying one Rupee as kaineetam it is activating as motivation and inspiration for them. The employees is feeling in such a way that the management is considering the employees as equal to that of their family.
Celebration of annual day of the company
April first is the birthday of the company. This day is celebrating by the company along with the staff in a wonder full way. On that day from morning 8.30 to night 10.00 the company is opened for the employees, family members and various fun, games and matches in shuttle, tennis, volley ball, cricket etc are arranging & various prizes are given on that day and all these
activities are on absolutely on company‟s cost. On that day a full fledged food is arranged and conducting many special programmers at night.
Onam Celebration
Being the company is located in the territorial limit of Kerala and majority of the workers are from the same location, Onam is celebrated in a grant way in order to inspire the employees. There will be four day whole announc ed for Onam. Before that an „Ona sadya‟ is arranged by the firm in company‟s cost.
ADMINISTRATIVE DEPARTMENT Administrative department is considered to be the brain of every concern. It sets the goals and objectives to be accomplished and formulate plans and decisions. The Administrative Officer Mr. Sukumaran Nair heads this department in PKHL and is supported by assistant administrative officer.
There are other two office assistants working as subordinates under
assistant administrative officer. At PKHIL, the administrative department looks after the personnel management functions also.
Structure of Administrative Department
Chart No. 4.9
It is obvious that there exist stronger industrial relations within the organization. Both the officers and workers are free to communicate with the managing director about their problems and suggestions. Hence it is clear that an open door policy of communication is followed. The general body meeting of the organization is conducted once in every month and management review meeting is conducted weekly. The management gives adequate weight age
to employees' suggestions in the meeting. The workers also have adequate participation in the decision making process. So they are more loyal to the company and no trade unions are allowed to grow within the concern. The company is undertaking various welfare measures to ensure safety and security to the workers. Both monetary and non-monetary benefits are offered to them. The facilities such as medical allowances, free canteen services etc are enjoyed by the employees. In case of any overtime work, extra charges and transport facilities are made available to the workers. The organization follows a time rate system of wage payment. They pay remuneration to the workers on monthly basis. Since the administrative department undertakes the functions of personnel department also, they manage the recruitment, selection and training of personnel. Selection of candidates is made through interviews and on the job training for six months is given to improve the efficiency of the recruits.
FINANCE DEPARTMENT Finance is the lifeblood of every business. Hence Finance department has significant importance in business organizations. Current capital of Pankajakasthuri Herbals India (P) LTD is 9.6 Crore. The turnover is I5Crore in the year 2006-07 . The expected turnover of this year 2008-09 is 20Crore. The auditor of Pankajakasthuri herbals India (P) LTD is Kumar & Biju Associates. The main function of the department is to manage the available finance efficiently and to keep the books of accounts up to date. It is evident from the records that the company has made an increasing tendency in profit percentage and the turnover for the year 2005-06 was around Rs. 15 crore. The company uses both owned and borrowed fund. Corporation Bank is the main source of borrowed fund. They also have a good foreign exchange record by exporting their product. Both internal and external auditing is done in the organization. The audit of the books of accounts is carried out once in every month and their external auditor is Biju associates. The size of the industry is converted from small to medium by an additional investment of Rs.15 lakhs. The company has contributed substantial revenues to the government by way of Income tax, Excise duty etc. The company has established close international affiliation with foreign market from 1998 and has consigned export of Rs. 15 lakhs. The department shall initiate action in of every year to get the departmental budget. The remittance of provident fund may be on or before 10 of every month. In 2005-06, they have earned an annual turnover of Rs.15 crore and out of these they had to pay excise duty and spend major part of their revenue on advertisement.
Share Holding Pattern NAME
PAID UP EQUITY SHARE
VALUE
AMOUNT
Dr.J.Hareendran Nair
2719
1,000.00
2,719,000.00
Dr.J.Mahendran Nair
2719
1,000.00
2,719,000.00
V.Sreekumar
2719
1,000.00
2,719,000.00
Mrs.Asha Hareendran Nair
906
1000,00
906,000.00
9063
4,000.00
9063000.00
Total
Table No. 4.2
Structure of Finance Department In this organization, Finance Director - Mr. Sreekumar controls finance department. The Accounts Manager is immediately followed by three assistants who help in carrying out the functioning of the department.
Structure of Finance Department
CEO
Chart No. 4.10
CAPITAL STRUCTURE They are keeping registers such as The main capital contribution for the company is raising shares to the public.
The main investment is normally made in long term investment
Financial plans are revised in an annual way and which is normally based on the yearly budget.
Financial plans normally need a revision whenever there is a decision to launch a new product is usually determining in the forecasting the future events according to the basis of a marketing survey.
Normally investment proposal is capital investment method.
Working capital is normally arranged by Long term loan cash credit which are normally arranging from Corporation bank, Trivandrum by the pledging of Inventory.
Normally long term loans are arranged for the acquisition of machinery.
Short term funds are arising from the normal contributing of promoters.
Insurance cover is available for the whole assets and company's employee
Debtor's collection is normally is sixty to one eighty days.
Credit payment is also made within sixty to one eighty days.
Credit rating is based on stock holdings. Normally cash credit is releasing by the Financial institutions based on the stock holding capacity.
Dividend payment is not a frequent activity. But in few occasions there are instances of dividend payments out of the available profit.
Annual General Meeting is a general routine for every year for the organization.
MARKETING DEPARTMENT The modern market is consumer oriented and it deals with customers.
A satisfied
customer is a good advertiser of that product. So customer satisfaction is very important. The marketing department must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Communication is vital. The marketing department typically has a better understanding of the market and customer needs. Marketing department is the nerve system of PKHIL.
The main function of this
department is to ensure uninterrupted distribution of products to the customer. Their main product Pankajakasthuri Breath EC is supplied to almost every states within India. The company has successfully exported to Malaysia, Singapore and other gulf countries, and is aiming to top the market of USA. The company has four marketing branches in Kerala, Tamil Nadu, Mumbai and Bangalore respectively.
Structure of Marketing Department Marketing manager manages the function of this department with the assistance of area sale managers and assistant marketing manager. Area sales manager is intended to control the external marketing functions and assistant marketing manager controls the internal functions of marketing. The sale officer follows the area sale representative is the immediate subordinate of sales officer.
Structure of Marketing Department MARKETING MANAGER
AREA SALES MANAGER
ASSISTANT MARKETING MANAGER
SALES OFFICER
MARKETING EXECUTIVES
DISTRIBUTORS
RETAILERS
FINAL CUSTOMERS
Chart No. 4.11
Marketing Segmentations Normally Pankajakasthuri is following four kinds of marketing segmentations.
Over the counter
Over the counter is exclusively meant for marketing of highly established products i.e., Pankajakasthuri Breath Easy granules. H ence it doesn‟t need to advertise as much importance given to other products. It is already having range of goodwill.
Fast Moving Consumer Goods
The items which come under the FMCG areas are soap, creams and oil normally these products are aiming towards the youth. There is the actual need of effective marketing strategy. In the pharmaceutical segment Pankajakasthuri is holding second place next to Dabur, but it is not in the case of Fast Moving Consumer Goods industry. It is not even nearer to the market leader Hindustan Lever.
Ethical Goods
Ethical goods are the goods which are coming under a separate segmentation which are of having some ethical value.
In other words, these are the goods which are of having some
medical value. These are different in nature with over the counter goods in character like it cannot offer through all the counter say outlets. These goods can only distributed through the prescription of the authorized medical practitioner and is distributed through medical stores or Ayurvedic hospitals only.
Classical Goods
Classical goods are the goods which are coming under the classification of normal traditional Ayurvedic products. These goods are very ancient goods normally used by “Nattu Vydyas.”
The main products come under traditional or classical segmentation includes
Ghrithams, Aroshtams, Kashayams, Lehyams and Choornams, etc.
Procedures Followed by a New Product Development
Market Analysis
Market analysis is a process including the evaluation of the existing market condition in order to find out the nature and trend of the market. It is the best way to find the strength and weakness of the close competitors and it is very easy to find out the procedures which are of very powerful and useful to compete and to be one of the successful companies in the industry. Market analysis is the best way to tackle with the customer‟s taste and preferences. It will help the firm in order to launch the product in a very conducive environment and it is very important for the survival of the company. Also helps to find out the similar type of product which offer tight competition with the product.
Fixing of affordable price (Pricing)
The main objective of the firm is to maximize profit irrespective of existence in the industry. It is possible only by boosting up the sales to maximum extent and it should maintain cash sales with an analytical decision. Pricing is exactly the sensible area of business operation since all business decisions have a very deep impact on the survival of the company. When the price settled is of lesser than the anticipated price or price of the competitors, the product would sometimes be accepted but the ultimate result would be a huge loss. Rather if the price settled is higher than the price of competitors, the product will summarily be rejected in the market because there is plenty of choice for the customer to go for considerably lesser cost product with a required quality. Hence decision regarding the price of product is very important and the price so fixed should be very reasonable and affordable by customers. This kind of decision is only possible by an effective analysis of market. The best way of analysis and comparison of the price is the products with same quality or same character.
Availability of Potential distributors
The success of a particular product is lying on the clear cut distribution. There should be potential distributors in order to promote proper distribution clearance of goods form the godown of the firm. It is ensured that proper payment is made on the part of distribution and it is on the shoulders of potential marketing departments through efficient marketing executives.
Reaching of the final consumer through the retailer
The success of a new product is that point at which it is received by the consumer and when the end user accepts the product. Here sales executives play the actual role and selling departments. Retailers so selected must have potentiality to market the product with care and ability. The sales executives must pay clear attention on the after distribution follow-up because exhibiting their product on the vicinity of the consumer is playing a crucial part for the movement of the goods in the highly competitive market.
Advertisement Strategy
Pankajakasthuri is following a very strict advertising strategy in a yearly updating manner. It is mainly focusing on visual media. The advertisement it is following is having a common phenomenon of including kids. That is using a kid star for the advertisement campaign on the visual and print media. The psychology behind is to attract the wider mass of population. Advertisement with an adult would not have much impact to attract huge mass. Mr. Mohanlal is the brand ambassador of the organization. There is still no radio advertisement but it is proposed to launch a radio advertisement on the FM in the next year. Normally a mass of advertisement is released during the month of October to February and hence this is the best season for the sale of Pankajakasthuri breath easy granules. As per the opinion from the marketing officials the impact of advertisement on sale is huge.
Sales Promotion Measures The following are some of the sales promotion measures which are followed by the Pankajakasthuri Herbal India (P) Limited.
Releasing of Pankajakasthuri breath easy granules in “Sachet” for one time use. But they are now reducing the production of that because it is starting to overtake the sales of Pankajakasthuri 400 gm pack.
Fresh advertisement by using kids and by using brand ambassador having high popularity like Mohanlal.
Cash reward to retailers (e.g. Rs. 40000/- reward for more than sales of 700 cases)
Attractive incentives packages for the sales team.
10 % discount for distributors and 20% discount for retailers Free offer of one for 12 products Advertisements like displays, leaflets exhibitions, free samples etc are also using
Distribution Channels Pankajakasthuri have branches and distributors at Kerala, Tamilnadu, Maharastra and Bangalore.
In Kerala Pankajakasthuri is following this kind of distribution channel.
HEAD OFFICE
BRANCH OFFICE
DISTRIBUTORS
RETAILORS
FINAL CUSTOMER Chart No. 4.12
The distribution channel with in Kerala is direct in nature. The product flow directly from the distributors to retailers. From the retailers they reach the customers. There exist no middlemen between the distributors and retailers. Outside Kerala Pankajakasthuri is following the way of distribution chann el as follows:
HEAD OFFICE
BRANCH OFFICE
SUPER STOCKIST
WHOLESALERS
RETAILORS
FINAL CUSTOMERS
Chart No. 4.13
The distribution channel outside Kerala is indirect channel. Both stockiest and retailers act as middlemen between distributors and customers. Hence the product does not have a direct flow.
Functions of Sales Manager The functions of a sales manager are many and varied. They may be classified under the following three heads. 1) Managerial / Executive Duties Or Functions
The main function of the sales manager is the management of sales operations including sales programmes and sales personnel. The management of sales programmes includes establishment and developing short-term and long-term sales policies and sales objectives, in consultation with other heads of related departments. The management of sales personnel function includes recruitment, selection, training, direction, supervision motivation and control of sales personnel in the best interest of the organization. 2) Administrative Function
The administrative head of sales department is Sales Manager who is having full control over the staff of the department and administering the sales office. Administration of sales office is one of the important functions of the sales manager. It involves considerable amount of paper work and record-keeping, depending on the nature of activities assigned to sales department. 3) Miscellaneous Functions
Maintenance of cordial and effective relationship with the heads of other departments within the company.
To ensure that long-term customer relationship is maintained so as to achieve the goals of the enterpri se.
To conduct selling personally so as to increase the sales volume.
To study the market conditions, problems of competition and the substitutes coming into the market
To maintain discipline in the sales organization.
To organize activities relating to sales promotion, such as, contests, seminars, conferences and provide incentives to the sales staff and the customers.
To plan and organize distribution channel in consultation with top management.
To analyze the market thoroughly from time to time.
To undertake advertising campaign keeping in view the cost and sales requirements.
To plan sales targets in consultation with other departments, such as production ddepartment.
To prepare sales budget of a given period.
RESEARCH AND DEVELOPMENT DEPARTMENT The research and development (also R and D or, more often, R&D), refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications". The work of research and development involves developing new products and improving current ones through various forms of research. New products and improvements to current products are needed to meet the requirements of customers, taking into consideration changes in consumer demand, seasonal sales changes, and the availability of new materials and technology. The research and development department must also be aware of new materials, technology and products that affect the customer's requirements and possibly the future of their customers‟ needs. Pankajakasthuri prides itself on being a completely research oriented company. Indeed it is this emphasis on R&D that allows it to produce safe, efficacious and consistent remedies using basic principle of' Ayurveda. The R&D Department is focused on product developed, quality control and standardization. All products are derived through years of primary research in a rigorous manner and produced in state-of-the-art facilities. It represents the commitment to continuous investment in the best people, practices and technology. Pankajakasthuri R&D wing established in 1993 and Situated at Pankajakasthuri Medical College, Kattakada. Pankajakasthuri Herbal Research Foundation was established by Pankajakasthuri herbals India Pvt. Ltd for the purpose of developing Ayurvedic medicines .The R&D department is well equipped to carry out any type of research in the field of Ayurveda. Research department is the core area for PKHIL, as all products are developed there under the keen supervision of Dr. Hareendran. Pankajakasthuri herbal Research foundation is a unique institution leading the effort to preserve and propagate the true essence of Ayurveda. Pankajakasthuri herbal Research foundation synergizes and coordinates various elements in organization. The different divisions of Pankajakasthuri herbal Research foundation undertake immense amount of research and synchronize the concept of Ayurveda with today's lifestyle. The various divisions are being headed by doctorate holders with long experience In Pharmacology, Biochemistry,
The research and development wing is dedicated to innovating and developing new product. Here every product undergoes stringent toxicology and pharmacology tests which are administered by a team of highly qualified medical practitioners. In 1999, the department came out with two more wonder drugs : Illogen excel tablets for diabetes, and Somatone capsules for hypertension and since then the progress has been consistent and continuous.
Chart No. 4.14
MAINTENANCE DEPARTMENT Maintenance management refers to all the plans and activities related to maintenance work. Maintenance management is crucial to companies because proper maintenance makes workers aware of the resources with which they have to work. When workers are aware of the cost and nature of their maintenance resources, they are less likely to be wasteful with those resources. A good maintenance management system makes work more efficient.
Structure of Maintenance Department
MAINTENANCE MANAGER
ASSISSTANT MAINTENANCE MANAGER
MAINTENANCE TECHNICIAN
WORKERS
Chart No. 4.15
Function of Maintenance Department The main function of Maintenance Department is keeping the working capacities of the equipments in an effective manner and the maintenance of a healthy working condition in order to keep the productivity of the firm in a high volume. The technique followed by them in order to keep the machine in a better condition is “Preventive Maintenance Scheme.” The staffs of
Maintenance Department frequently check the working of machinery in every month. By this way they can find out the faulty machineries before production takes place.
This kind of
approach is helpful in keeping the repair and maintenance cost at the minimum. The stoppage of productivity can be overcome by early detection of mistakes which leads to huge lock out. Keeping the productivity of the company in an undisturbed manner by providing an uninterrupted power supply is the duty of the maintenance department. generation system also comes under the maintenance department.
A suitable power
Competitive Analysis Ayurvedic medicines are produced by several thousand companies in India, both small scale and large scale companies. So it is one of the most competitive industries in India. The big companies like Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. Other competitors are Himalaya Drug Company, Charak Phamaceuticals. There exist a big competition in Ayurvedic medicinal industry, Kerala. The competitors of Pankajakasthuri are
Kottakkal Arya Vaidya Sala, S D pharmacy, Nagarjuna, Aushadhi,
Sitaram Ayurvedic Pharmacy Ltd etc
MICHAEL PORTER’S FIVE FORCES ANALYSIS Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization. Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979.
Chart No. 5.1
Porter’s Five Force Analysis of Pankajakasthuri
Competitive Rivalry
Ayurvedic industry is one of the most competitive industry in India. There are so many competitors for Pankajakasthuri Herbals Pvt. Ltd which includes Kottackal Arya Vaidya Sala, Nagarjuna Ayurvedic Group, S D Pharmacy etc. One of the reasons for the competitiveness is the capital requirement for classical medicines are low. So new comers can easily enter into the market. The product of PKHL and other companies are almost similar and hence the customers will not select the products by choosing the company. Bargaining Power of Suppliers
The raw material which is used in Pankajakasthuri production unit includes herbal raw materials
and consumable products. Pankajakasthuri Herbal Research
Foundations, developed a sprawling 13 acre herbal garden. Here rare herbs are cultivated and utilized in the preparation of Ayurvedic medicines at the Pankajakasthuri factory. Some herbal raw materials are purchased from states like Tamilnadu, Gujarat etc. and some are purchased locally. In this Ayurvedic medicine industry most of the herbal raw materials are scarce, so the cost of raw materials is high. If the supply of raw materials and number of suppliers are low, the bargaining power of suppliers will be high. In Ayurvedic medicine industry as the number of suppliers is less in number the bargaining power of suppliers is high. Bargaining Power of Consumers
In Ayurvedic medical industry most of the products, especially classical medicines are similar in colour, taste, ingredients etc. So a common man cannot differentiate the products. The products differ only in their brand name. So the customers can easily switch from one company to other. If buyer power is high, then they will decide the price As Pankajakasthuri has a good brand image the buyer may not influence much pressure on the company. Because of the good brand image the bargaining power of the consumers is low. Threat of Substitute
In Ayurvedic medicinal industry there is an increasing threat of substitute because many Ayurvedic companies are coming with improved Ayurvedic products. Many competitors are there in local market having similar price. So the customers can easily switch from one company to other. In the case of Pankajakasthuri breath easy granules there is no other substitute yet now. So the threat of substitute for the product is low. The OTC products and ethical products have less threat of substitute. Threat of substitute is high in FMC products and classical products. The Kaveri fairness cream Kaveri no pimple cream Kaveri baby fairness oil etc have many other substitute in the market. Almost all the features of the classical medicines are similar for all the companies. So many substitutes are there the classical medicines. Threat of New Entrants
In Ayurvedic medicine industry is one of the growing industry in India. Many new companies are emerged all over the country because the people are more aware of the traditional way of healthcare. So the threat of new entrants is high in this industry. Still there are some barriers for the new entrants. They are
Classical medicinal preparation needs high capital requirement.
Unavailability of herbal raw materials
High price of the herbal raw materials
Patent medicinal preparation requires a well developed research and development and indeed it requires a huge capital.
SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
Strengths: characteristics of the business or team that give it an advantage over others
in the industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to
others.
Opportunities: external chances to make greater sales or profits in the environment.
Threats: external elements in the environment that could cause trouble for the
business. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
Chart No. 5.2
SWOT Analysis of Pankajakasthuri Strengths
Peaceful family atmosphere is maintained in the company Informal channel of communication prevails in the organization There is no trade union in the organization The employees are satisfied with their remuneration and working conditions The employees are sincere and loyal to the company Workers enjoy the right to give their opinion and suggestions directly to MD, i.e.
existence of a participative management
R&D department plays an important role in the growth of the organization The company has its own 13 acres herbal garden The products of Pankajakasthuri have a good brand image
The product of the company are in the growth stage
The company has diversified range of products
The company is maintained a healthy good will
Well developed quality control department is there inorder to keep the quality of products up to date
Weakness Ethical products are not much familiar in the market. The raw materials are to be purchased from outside Kerala The products of PKHIL are not affordable to the economically backward classes There is seasonal variations in the sale of some of the products like Pankajakasthuri
BreathEC. So the sale is high from October to March. At that time the production is more & other months the production is low and the workers have less work.
Counting of tablets for bottle packing is done manually
The company finds it difficult to supply Pankajakasthuri Breath Easy to a particular
state due to lack of stock, labeled in their native language Opportunities
As Ayurveda industry is mounting, the company also has a development opportunity.
Now a days Ayurveda and Ayurvedic medicines are globally accepted and it offers a suitable condition for the company to expand.
Because of its wide variety of products the company is expected to be more successful.
The company has more exporting opportunity for their products. Now the export of Pankajakasthuri‟s products is only to the Asian countries. If the company can penetrate to any of the European country, the turnover will be doubled.
There is a bigger opportunity for the PKHIL in the tourism industry. Because tourism industry is gaining a huge income from the Ayurvedic sector.
Threats
The organization has to face great competition from rival firms
Allopathic treatments give a fast relief compared to Ayurveda.
Shortage of raw materials
Escalation in raw material price
Adulteration in the raw materials
Competitors have stronger brand names
FINDINGS
The company is maintained the second position in Kerala just below to the Ayurvedic giant dabur
The company has got „ISO9002 CERTIFICATION‟ in 2001 from TUV Germany
The company has so much keen in welfare of the employees. They are providing special welfare fund called „labour welfare fund‟ for assisting employee need for money
The company is supplying free food for all employees
The company has a well equipped research and developed department headed by doctorate holders with long experience in pharmacology and biochemistry
The firm is enjoying the monopoly in the Pankajakasthuri breath easy market. There is not a matter of competition for the product
High level of employee engagement
There is no trade union in the organization
The communication and cooperation between various departments in the organization is satisfactory
Celebrity endorse advertisement is successful.
The workers are remunerated under time rate system.
The company has changed to bottle packing for tablets from blister packing with a view to reduce the cost of production.
The R&D department is striving to find new products.
They avoid excess of middlemen in the distribution channel.
There is no advertisement in the ethical products.
The firm has great concern for the employees and workers.
Persons are loyal and sincere to the organization.
Good industrial relationship is maintained among the employees.
The company is having enough public support.
The major part of the profit is earned from Pankjakasthuri breath easy.
Most of the raw materials are being imported.
CONCLUSIONS The general objective of the organization study was to gain practical knowledge on the overall functioning of the various departments of the organization. During the study, a lot of
practical knowledge had been gained about the Ayurvedic Industry. This study proved to be helpful in gaining ideas about the various activities undergone in a real life business situation. Also it helped me to gain more information about the present conditions prevailing in the Ayurvedic Industry and their strategies that will prove beneficial for me in the future ventures. Pankajakasthuri Herbals India (P) Limited is engaged in the production of Ayurvedic drugs and also a company having high goodwill in Ayurvedic treatment. This project helped me in understanding various functional department of Pankajakasthuri Herbals India [P] Limited and activities regarding all the departments. This study also helped to gain practical experience in the business field and comprehend the problems to start a new business . Even though the company was suffering from loss in its initial stage, the earnest effort of management and the willing cooperation of the workers put it on the track of prosperity. Now the company is really in the developing stage with an increasing turnover. The company is striving to achieve an established position by maintaining enhanced reputation. The company is effectively trying to attain the foremost position in Ayurvedic industry. It was a great experience to do my organization study in an organization like Pankajakasthuri Herbals India [P] Ltd that is one of the top Ayurvedic companies in India.
SUGGESTIONS
The company should follow a proper recruitment procedure.
Most of the people are unaware of the ethical products. So necessary steps should be taken to create awareness among the public.
To improve the quality of work ,more training should be given to the workers
The company can develop their business by exporting more of their products to more countries.
They should expand their herbal garden and reduce dependence on import of raw materials.
They can concentrate more on celebrity endorsed advertisement for all the products
They should take up more promotional measures to increase the market share of all the products.
To ensure quality of personnel aptitude test and interviews should be conducted for selecting potential employees
They should improve their recruitment procedures through the implementation of erecruitment
The organization should attempt to reduce excess workers, if necessary.
BIBLIOGRAPHY
BOOKS
th
Dr. Aswathappa K “ Human Resource Management ”, 5 Edition, Tata Mc Grow Hill Publishing Company.
th
Kotler Philip & Kevin Lane Keller (2005) “Marketing Management” 12 Edition, Prentice Hall of India Pvt Ltd New Delhi.
Kothari C. R. (2006) “Research Methodology – Methods and Techniques”, New Age International Publishers, New Delhi.
JOURNALS
Journal of Indian medicine
Brochures and reports of PKHIL
WEBSITES
www.pankajakasthuri.org
www.indianmedicine.nic.in
