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Corporate Governance practice of Square Pharmaceuticals Ltd.
Square Pharmaceuticals Limited Introduction SQUARE Group of Companies is one of the most reputed and largest compan in our countr. After a !" ear long #ourne #ourne$$ it is a sm%ol in the %usiness &orld of 'angladesh. 'ut the #ourne &as not eas. (he compan met its do&nfall in more than one occasion. 'ut %ecause of the great leadership s)ill of *r. Samson Samson + Cho&dhur$ the compan overcame all its hindrance and finall %ecame &hat it is toda. ,hat started as a small pharmaceutical compan e-panded its %ranches and %ecame a huge group of compan. (he compan. (he have several %ranches all over the countr providing and distri%uting product and services. o&/a/das the capture most of the mar)et shares of our countr. Square toda is a corporate giant active in divergent %usiness and industrial fields. 0ts present unassaila%le status is the outcome of its successful diversification &hether related diversification or unrelated. ,ith a slo& %ut strong progress$ SQUARE Group of Companies %ecame a legend in the %usiness &orld of 'angladesh. 0t is one of the most revenue generating compan of 'angladesh. Currentl the have over 1!22 emploees &or)ing in the compan. Providing %est qualit product and customer satisfaction is their primar motto.
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Corporate Governance practice of Square Pharmaceuticals Ltd.
Picture3 List of companies include in the Square Group
(his paper focuses on the voluntar reporting on corporate governance of one of the largest %usiness group of 'anglades 'angladesh h Square Square Pharmaceut Pharmaceuticals icals Ltd. (hough (hough reporting reporting on corporate corporate governance governance ma include %oth the financial and non/financial aspects. 0n this paper onl the non/financial portion is included. (he SPL recentl has started reporting on corporate governance under a separate heading in the annual reports of their listed companies. (his is not common practice in 'angladesh and o%viousl a go/heading practice performed % an 'angladeshi %usiness concern having a ver fe& predecessor in that respect.
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Corporate Governance practice of Square Pharmaceuticals Ltd.
Historical Background & Growth of the SPL Square Pharmaceuticals Ltd. is the largest pharmaceuticals compan of 'angladesh. 0t is a reputed name in the pharmaceutical industr of 'angladesh for manufacturing qualit medicines for more than four decades. SPL made its de%ut in a hum%le &a in 45!6 from a small house of the village Atai)ola near Pa%na. Pa%na. (he first proprietar medicine &as introduced in 45!5 under the name of Easton7s Srup &hen the num%er of &or)ing people &as 48$ turnover &as (). !!222$ and occupied a floor space of 1222 sq.ft. *r. Samson + Cho&dhur$ the o&ner of the SPL transferred the ne&l esta%lished compan to Pa%na &here a fe& people &ere accepted as co/&or)ers accumulate more capital for smooth operation of the compan. (he first processed ta%let &as introduced in 4598 under the generic name Santonin. 0n the ne-t ear the introduction of Pathedine in#ection accelerated the gro&th of the firm &ith a rapid e-pansion of %usiness turnover. 0n 459"$ the annual turnover of the compan rose to (). 4 million and the Square Pharmaceuticals &as converted into Private Limited Compan. Compan. (he compan continued to engage itself in manufacturing of %oth official7s preparation and a range of proprietar items. 0n the mean time the compan had %een on the loo)out of an acquiring )no&/ho& and e-pertise from outside for manufacturing and mar)eting of more sophisticated products through #oint venture and colla%oration. (he compan too) necessar steps in adopting a strategic plan to e-pand its manufacturing facilities to produce &ide range of essential items &ithin the parameter of the ,+: ;,orld +ealth :rgani$ U>$ Singa Singapor pore e and other other countries since 4569. 0n 056?$ Square set up ne& factor to meet e-panding mar)et demand.
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Corporate Governance practice of Square Pharmaceuticals Ltd.
Corporate History
•
@ear of Esta%lishment ;0nitiall as a Partnership=
3
45!6
•
0ncorporated as a Private Limited Compan
3
459"
•
(echnic (e chnical al Colla Colla%orati %oration on Agr Agreement eement &ith ans anssen sen Pharm Pharmaceuti aceuticals cals of 'elg 'elgium ium3
45?!
;A su%sidiar of ohnson B ohnson 0nternational Ltd.= •
(echn hnic ical al Co Coll lla% a%or orat atiion Agree eeme ment nt &it ith h . .+o +offfm fman an/L /La a Roc Roche he B Co. Ltd td..
3
456 56" "
•
Converted into Pu%lic Limited Compan
3
4554
•
Stoc) E-change Listing ;Dha)a B Chittagong=
3
455!
•
Agreement &ith *s. 'ovis Lanvec Ltd. of U> for implementation of Dha)a Plant 3
4559
•
A&arded 0S:/5224 Certificate Certificate
3
4556
'usiness Lines
3
*anufacturing
•
and
*ar)eting
of
Pharmaceu Phar maceuticals ticals inis inished hed Prod Products$ ucts$ 'asi 'asic c Chemicals and Agro Fet Products •
Authori
3
US
49.55
*illion
;(). 4$222 *illion= •
Paid/up Capital
3
;(). "18 *illion=
•
um%er of Emploees
3
8 $15" 8$
Vision (o see %usiness as a means to the &ell/%eing of the investors$ emploees and the societ at large$ leading to accretion of &ealth through financial and moral gains as a part of the process of the human civili
Mission (heir *ission is to provide qualit B innovative healthcare relief for people$ maintain stringentl ethical standard in %usiness operation also ensuring %enefit to the shareholders and other sta)eholders.
!"ecti#e (heir o%#ectives are to conduct transparent %usiness operations &ithin the legal B social frame &or) &ith aims to attain the mission reflected % our vision.
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Corporate Governance practice of Square Pharmaceuticals Ltd.
SPL Manage$ent Types of ownership: SPL made its de%ut in 45!6 as a Partnership irm &ith four partners. After&ard After&ard &ith rapid e-pansion of %usiness turnover in 459"$ SPL converted into a Private Limited Compan. 0n 455" SPL converted into a Pu%lic Limited Compan and floated f loated pu%lic share &ith highest premium.