Report on

Summer Placement

Conducted at
GENO PHARMACEUTICALS
LTD
Pharmaceutical Complex
Tivim Industrial Estate, P.O.
Karaswada, Mapusa, Goa

By
TRAZEL DIAS
Roll No. 1332
St. Xaviers College,
Mapusa – Goa

Stores
Learnings & Research.
The stores department at Geno Pharmacueticals is headed by Mr.Sunil Azgaonkar. He takes care of the over all activities of this department. Mr.Sunil Azgaonkar was very kind in sharing his knowledge with me and also in givingme an overview of how the stores department at Geno Pharmacueticals functions.
The stores department is the heart of any organisation. It is where all the issuing and receiving takes place. The marketing department first gets the orders that are generated .i.e is how much sale has to be made. Later on the production planning control department does the job of finalising how much has to be produced, they have something called a production programme which helps them know according the amount of tablets,capsules,liquids or ointments that have to be produced.
Next step is where the stores department issues an indent to the purchase department to make the necessary purchases of the raw materials required for production. The purchase department inturn will approach approved suppliers or vendors and place a purchase order.
Once the materials are received from the approved vendore and suppliers they are sent to a room called the ‘re-dusting’ room. In this room all the materials are cleansed for eg: if materials arrive in barrels, they are to wiped with a certain cleansing agent so it can be sent forward for the next step to be taken. Because Geno is a pharmacuetical company naturally all its products are pharma products therefore they have to be kept at certain tempretures so that they can be mainted till they are made into finished goods. There are three types of room tempretures that raw materials are kept in: 1. Room tempreture 2. Cool and dry 3. Deep freezer
Accrodingy materials are placed here and take as and when needed.
The next step is where a GIN (goods invice note) /GRC (goods received note) is issued. Of this Copied are made and One is retained by the stores department, three are sent to the QC departmnet and one is sent to the management. After this is done goods are given a label called the ‘All Test Label’ which enable all products to go through different test according to what kind of a material it is. If the good recieves a Green Label it implies that its good to go, the green label is also known as the release label. But incase a certain good recives a Red Label it implies that the good is rejected or has failed to pass the particular test conducted. This mostly happens because the goods have not met certain specifications of the test conducted. Since Geno is a pharma company it has to very careful of it goods because it deals with treating patients at the end of the day. The rejected material is kept in a room called the rejected room till the supplier is informed about it.
Next, materials that have an expiry date that comes before other materials is issued first. The materials are sent to two sections namely : 1. Raw Material Section 2. Packing Material Section
These sections perform the needed tasks of making rw materials into finished goods and then packaging them appropriately. There is a very important room after goods have gone through these sections known as the RLF room : Reverse Laminar Air Flow Room. This room is especially meant for keeping goods clean and help them avoid contamination. This room has a clean atmosphere which is kept by constantly moving the air in order to prevent contaminted air from entering the room. The next step is the depatching of goods to different retailers directly or CNF agents ( carting and forwarding agents) depending on the type of order or buyer of the product.
A very important aspect of the stores department is the Inventory Control. This determines whether the stores department and sales of a particular company is efficient and healthy or not. It ensure the flow of capital and also controls the working capital of a company. At Geno the inventory control has two very important levels namely: 1. Optimum Level of Stock 2. Minimum Level of Stock
Optimum level is the level till which a certain amount of stock can be held, stock cannot be kept for over a ceratin period and have to be depatched since it will have an expiry date. Hence optimum level has to be maintained.
Minimum level is the exact opposite to optimum level. Here certain amount of stock has to be avilable and kept ready in case of immediate sales. Minimum level has to maintained to ensure that stock is avilable and not totally exhausted.

Excise Duty
In the Indian tax structure, there are a lot of taxes that people pay for different reasons. Income tax, sales tax, entertainment tax, value added tax etc. All these taxes are existent because in some way or the other it impacts and helps the economy. One such tax that is prevalent in any manufacturing sector is the excise duty. An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).
In the pharma industry products are chraged at 6%.
There are four parts to this : 1. RG23A part 2
= under this duties are paid for all purchases on raw materials, packing materials and miscellaneous items. 2. RG23C part 2
=duties paid on capital goods for eg: machinery. It is paid by both parties equally. 3. PLA (Personal Ledger Account)
= directly paid to the bank. 4. Service tax
Any product containing marcotic drugs comes under state excise duty.
There are three series of sales: 1. Direct sales 2. Indirect sales 3. Export

Export
Export has two main departments namely: 1. DRA (regulatory affairs) 2. Logistics
DRA consists of a whole lot of work. While exporting to another country Geno has to first look at the economic background of the company its exporting its drug to, it has to also look at how well the Pharma industry in that country is running, the company has to make a correspondence with the drug authorities in that particular company and also follow the guidelines for registering a drug in that country. All this work is handled by the Manager if the export department.
The first step in the process begins with the buyer, .i.e. making an agreement with the concerned buyer. Under this there are two very main aspects: 1. Terms of shipment/delivery 2. Terms of payment
Terms of shipment are basically how the other party will make payments to Geno. There are various ways of how this can be done. a) Ex-factory Price
= this is when the product is priced on the basis of raw material and packing the rest of the payments are done by the buyer. b) FOB ( Free On Board)
= this is when the product is priced on the basis of raw materials and packing, transport is also taken care of by the company and till all the goods are loaded all the payments are taken care of by Geno. After that all payments are too made by the concerned buyer. c) CIF (Cost, Insurance, Freight)
= here ex-factory price plus FOB is included along with sea freight, custom charges, shipment charge, insurance etc is paid by Geno. Till the port of the country that the goods are being exported to Geno undertakes all payments. d) C & I (Cost And Insurance)
= C&I is very similar to FOB but the only difference here is that additional insurance is paid by the company.

e) DDU/DDP ( Delivery duty unpaid/Delivery duty paid)
= DDP includes all of the above and DDU also includes all of the above. But the only difference is in DDU from the port to the buyer the goods shipment or transportation have to be taken care of by the buyer itself as for DDP the company in this case Geno takes care of all payments.

Terms of payment
Payments can be done either 100% in advance or 40% in advance. Under this there are two modes of payment 1. Payment against documents 2. Letter Of Credit
Payments against documents are when the concerned buyer assesses the specific documents and then makes the payment accordingly.
After the agreement is made and purchase order is issued a Performa invoice is prepared which involves what kind of products are ordered, the quantity of each product required, rate of exchange etc.
Payment through letter of credit is done wholly by the bank. The buyer approaches the bank and issues an LC to Geno with all concerned specifications for e.g.: what sort of packing they require, what labels have be stuck, barcode etc.
In this case the buyer’s bank is known as the issuing bank and the company selling the product, their bank is known as the advisor bank. Geno first complies with all the specifications of the buyer and then eventually receives the payment. Geno is required to make a document pertaining to the LC an each mistake they make costs them a 100$.
A very important document in this procedure is the “Bill of Lady”. While loading this document is the most important. It is a proof that states the goods are loaded and ready for shipment. This bill of lady is received by Geno from the shipment company; Geno in turn sends the original document to the advisor bank. The advisor bank will then inform the issuing bank for payment purposes that they have received this document. When the buyer makes the payment to his bank (issuing bank) only then will he receive the original document .i.e. the bill of lady.
Registration
In order for Geno to export its products to different countries it has to first register its products in that country, this is only if it’s a new country it’s exporting to. Next Geno has to get the regulatory guidelines for registering of these new products, for this it has to approach the drug authorities of that particular country. These guidelines provide information about which products are allowed to exported into the country, which drugs are banned etc. The most important document in this process in the DOSSIER which has to be given by Geno to the drug authorities of the country they are dealing with. This dossier is a list of documents complied according with the regulatory guidelines like what materials are used, quality control, the suppliers, the kind of packing material used etc. This entire registration process takes up to 6 months to 1 year. In case of a new company registration fees has to be paid. The dossier is submitted in order to receive the Drug registration certificate. Once Geno receives the drug registration certificate it has to be submitted to the FDA who will in turn file an NOC (non-objection certificate). This has to be filed so that Geno is able to show it to the customs as a proof of having permission to export the following drugs.
Once this is all completed the logistics department starts it work. It starts with the buyer issuing the purchase order, and then the Performa invoice is accepted. After that a work order is released which is given to the production department. This work order consists of packing, PS (promotional sample agreed during agreement), quantity, production, QA, QC, stores and despatch.
Within the departments the work order number is important, because when they refer to work orders they refer to it through its number, hence it is helpful for interdepartmental work/functioning. But whilst communicating between different parties the Performa invoice number is very important.
The despatch of goods is taken care of by a CHA (Custom House Agent) also known as a logistics agent or freight forwarding agent. He takes care of the shipment, loading, transportation, choosing of the container etc. the CHA is given a CBM (Cubic meter dimension) to help him book an appropriate container for the goods. Two important things to keep in mind related to this is 1. LCL (less container load)
= only half or less of the container is utilised for the goods. In this case other goods may also be put along with Geno’s goods. 2. FCL (full container load)
= in this the entire container is utilised for the produced goods.
Next the logistics department then receives pre shipment documents from the stores department which has to be given to the CHA. These pre shipment documents contain: 1. Commercial invoice ( first financial document) 2. Packing list (this only conveys how the product is packed )
The pre shipment documents also contain a certificate from the QC department called a certificate of analysis. In some cases certificate of origin is required to help customs know which countries are banned from exporting etc. This certificate is given by the chamber of commerce. Something known as the Blacklist certificate is sometimes needed. This blacklist certificate is an undertaking by the export department stating that it will not halt at rival country’s ports. Another document called the ARE is also given along with the pre shipment documents.

PMT
The Marketing department is responsible for developing and implementing marketing plans to promote the company’s products to the appropriate audiences. Every Company in the industry has, over time, developed its own Marketing Organization. The Product Management Team is one of the core teams of the Marketing Department in a Pharmaceutical Company. Product Management, which oversees the overall marketing plan for a specific product, is responsible for profits or losses generated by that product. The Major role of the Marketing Department and the Product Management Team is to enhance the top line and the bottom line by managing the Product line of the company. Mr Sandeep Ganguly from the PMT was very kind to give me brief about what this department does and how it functions. The PMT department also known as Production Management Team is a very important part of the company. It helps market Geno’s products and also helps brand them. this department mainly focuses on brand promotion, demand creation, how it will sell each product, what makes each product different from the other competitors in the market, brand management, strategies to capture markets, designing, campaigning etc.
The second part is monitoring of the field persons/ market representatives. How they carry out their day to day schedule, daily attendance, sampling of right products to the right doctors etc. this is a very crucial part because Geno being a pharmaceutical company their main target are doctors. If the MR is able to efficiently convey the message of each product he/she is marketing then well and good, the doctor will most definitely place and order. But there are also cases where this fails to happen. Hence the monitoring is a very crucial part.
PMT is responsible for brand strategy planning for brands. Developing brand strategy, promotional material & technical literatures in alignment with strategy for all the brands. Ensure implementation of strategy through field work and interaction with field force. Prepare annual Calendar for all the meetings and product launch plan. Achieve financial goal for each brand. Monthly Sales forecasting for each brand. Analysis of data, trends, studies. Continuous brand and territory wise tracking of the sales. Training of new team members to familiarize them with the product portfolio. Selling skills and management model of the organization. Providing Market/Field research, situational assessment, Pre-launch and post-launch strategies, competitive landscape, time-lines, key competitor details, pipeline information and other requisitions that may drive better Business decisions and can help develop critical strategies for the client product. Hierarchy = Group product manager/Manager product development/DGM pmt = Product executive/manager/officers = Management trainees