case study on cipla

sanaa

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Introduction

In 2003, Cipla was one of India's top five pharmaceutical manufacturers, the others being Wockhardt, Ranbaxy, Dr. Reddy's and Nicholas Piramal. Cipla recorded sales of Rs. 15,990.04 million and a net income of Rs 2477.44 million. Over the years, the company had developed strong research and marketing capabilities. Cipla had enjoyed an average annual growth rate of 30.3% from 1999 through 2002, at a time when multinational pharmaceutical companies had grown at only 1%. Although Cipla's primary market was India, the company sold its products worldwide.

Cipla's line of more than 400 drugs, included anti-asthmatic, anti-cancer, anti-inflammatory, anti-depressant and anti-AIDS medications. Tablets and capsules accounted for 53% of fiscal 2002 gross revenues; bulk drugs (also known as Active Pharmaceutical Ingredients or APIs), 24%; aerosols and inhalation devices, 10%; injections and sterile solutions, 6%; liquids, 5%; and creams, 2%. The company had 21 sales offices and five manufacturing plants in India, three of which had been approved by the U.S. Food and Drug administration (FDA) as well as the World Health Organization (WHO).

Cipla was also well known for its philanthropic initiatives largely shaped by the strong willed personality of its founder, Khwaja Abdul Hamied.


The subsequent generations of the Hamied family had upheld this tradition. Cipla's Chest Research Foundation was dedicated to research in asthma, Chronic obstructive pulmonary disease (COPD), allergic airways diseases and other respiratory ailments. The Foundation conducted clinical research, bioequivalence studies and CME (continuing medical education) programmes for the medical profession. The Cipla Foundation's Palliative Care Centre for cancer patients in Pune provided comfort and solace to over 2800 terminally ill patients. The company also supported the promotion of education, sports and community welfare, both directly and through its charitable trusts.

In recent times, Cipla had attracted considerable media attention because of its efforts to offer AIDS drugs at very low prices. The company had conducted workshops and symposia in India, Sri Lanka and various countries in Africa to spread awareness about the disease and its treatment. Antiretroviral drugs prevented the onset of full-blown AIDS in people infected with HIV and made such infections manageable. For want of such drugs, three million people died in 2003. But in its quest to market AIDS drugs globally, Cipla realized it faced the might of global MNCs, who were doing all they could to protect and enforce their patent rights.

Background Note

Khwaja Abdul Hamied, the founder of Cipla was filled with the spirit of nationalism when he was just 15. In college, he found chemistry fascinating. He set sail for Europe in 1924, registered in Berlin University as a research student and earned his doctorate three years later.

In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patents and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs.

Cipla was officially opened on September 22, 1937 when the first products were ready for launch. Cipla attracted considerable media attention. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations".

In the 1940s, Hamied not only consolidated Cipla's operations but also pursued various social causes. His blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR).

In 1944, Cipla bought the premises at Bombay Central and decided to put up a modern pharmaceutical works and laboratory. It was also decided to acquire land and buildings at Vikhroli. With severe import restrictions hampering production, the company decided to start manufacturing the basic chemicals required for pharmaceuticals. In 1951, Cipla entered into an agreement with a Swiss firm for manufacturing foromycene. In 1961, the Vikhroli factory started manufacturing diosgenin.


This heralded the manufacture of several steroids and hormones derived from diosgenin. On June 23, 1972 Khwaja Hamied passed away. The Free Press Journal mourned the death of a "true nationalist, scientist and great soul…. The best homage we can pay to him is to contribute our best in the cause of self-reliance and the prosperity of our country in our fields of endeavour." Yusuf Hamied, Kwaja's son took charge.
Cipla set up an agricultural research division in Bangalore in early 1973. The division worked on the cultivation of several medicinal plants, particularly the Dioscorea species. The Bangalore factory was opened on October 22, 1977.

Cipla was awarded the Chemexcil Second Award for 1978-79, in recognition of the company's role in the international market and the high ratio of its exports to local sales. The Chemexcil First Award followed, in 1981-82. In 1983, Cipla bagged the Sir P C Ray Award for the development of indigenous technology in the face of stiff competition.

In a landmark achievement that hit the headlines in 1983, Cipla, in association with the National Chemical Laboratory, developed two anticancer drugs, vinblastine and vincristine from the common garden plant Vinca rosea....
 

rosemarry2

MP Guru
Introduction

In 2003, Cipla was one of India's top five pharmaceutical manufacturers, the others being Wockhardt, Ranbaxy, Dr. Reddy's and Nicholas Piramal. Cipla recorded sales of Rs. 15,990.04 million and a net income of Rs 2477.44 million. Over the years, the company had developed strong research and marketing capabilities. Cipla had enjoyed an average annual growth rate of 30.3% from 1999 through 2002, at a time when multinational pharmaceutical companies had grown at only 1%. Although Cipla's primary market was India, the company sold its products worldwide.

Cipla's line of more than 400 drugs, included anti-asthmatic, anti-cancer, anti-inflammatory, anti-depressant and anti-AIDS medications. Tablets and capsules accounted for 53% of fiscal 2002 gross revenues; bulk drugs (also known as Active Pharmaceutical Ingredients or APIs), 24%; aerosols and inhalation devices, 10%; injections and sterile solutions, 6%; liquids, 5%; and creams, 2%. The company had 21 sales offices and five manufacturing plants in India, three of which had been approved by the U.S. Food and Drug administration (FDA) as well as the World Health Organization (WHO).

Cipla was also well known for its philanthropic initiatives largely shaped by the strong willed personality of its founder, Khwaja Abdul Hamied.


The subsequent generations of the Hamied family had upheld this tradition. Cipla's Chest Research Foundation was dedicated to research in asthma, Chronic obstructive pulmonary disease (COPD), allergic airways diseases and other respiratory ailments. The Foundation conducted clinical research, bioequivalence studies and CME (continuing medical education) programmes for the medical profession. The Cipla Foundation's Palliative Care Centre for cancer patients in Pune provided comfort and solace to over 2800 terminally ill patients. The company also supported the promotion of education, sports and community welfare, both directly and through its charitable trusts.

In recent times, Cipla had attracted considerable media attention because of its efforts to offer AIDS drugs at very low prices. The company had conducted workshops and symposia in India, Sri Lanka and various countries in Africa to spread awareness about the disease and its treatment. Antiretroviral drugs prevented the onset of full-blown AIDS in people infected with HIV and made such infections manageable. For want of such drugs, three million people died in 2003. But in its quest to market AIDS drugs globally, Cipla realized it faced the might of global MNCs, who were doing all they could to protect and enforce their patent rights.

Background Note

Khwaja Abdul Hamied, the founder of Cipla was filled with the spirit of nationalism when he was just 15. In college, he found chemistry fascinating. He set sail for Europe in 1924, registered in Berlin University as a research student and earned his doctorate three years later.

In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patents and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs.

Cipla was officially opened on September 22, 1937 when the first products were ready for launch. Cipla attracted considerable media attention. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations".

In the 1940s, Hamied not only consolidated Cipla's operations but also pursued various social causes. His blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR).

In 1944, Cipla bought the premises at Bombay Central and decided to put up a modern pharmaceutical works and laboratory. It was also decided to acquire land and buildings at Vikhroli. With severe import restrictions hampering production, the company decided to start manufacturing the basic chemicals required for pharmaceuticals. In 1951, Cipla entered into an agreement with a Swiss firm for manufacturing foromycene. In 1961, the Vikhroli factory started manufacturing diosgenin.


This heralded the manufacture of several steroids and hormones derived from diosgenin. On June 23, 1972 Khwaja Hamied passed away. The Free Press Journal mourned the death of a "true nationalist, scientist and great soul…. The best homage we can pay to him is to contribute our best in the cause of self-reliance and the prosperity of our country in our fields of endeavour." Yusuf Hamied, Kwaja's son took charge.
Cipla set up an agricultural research division in Bangalore in early 1973. The division worked on the cultivation of several medicinal plants, particularly the Dioscorea species. The Bangalore factory was opened on October 22, 1977.

Cipla was awarded the Chemexcil Second Award for 1978-79, in recognition of the company's role in the international market and the high ratio of its exports to local sales. The Chemexcil First Award followed, in 1981-82. In 1983, Cipla bagged the Sir P C Ray Award for the development of indigenous technology in the face of stiff competition.

In a landmark achievement that hit the headlines in 1983, Cipla, in association with the National Chemical Laboratory, developed two anticancer drugs, vinblastine and vincristine from the common garden plant Vinca rosea....

Hey mate,

Please check attachment for Case Study on Working Capital Management of CIPLA Limited, so please download and check it.
 

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