CAPSTONE PROJECT REPORT ON

“Financial analysis of Pharmaceutical

companies: A study of Cipla and Abbott india ”

Submitted to: Submitted by:

Name: Tejinder singh DEEPANSHU SINGH (21BCM1159)
Designation: Assistant Professor ANISH KUMAR (21BCM1133)
Chandigarh University, AYUSH (21BCM1118)
Gharuan, Mohali AKASH DHAR (21BCM1156)

CHANDIGARH UNIVERSITY, GHARUAN, MOHALI

BATCH 2021-2024
 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the Final Project titled ‘ Financial analysis of Pharmaceutical Companies : A
study of Cipla and Abbott India’ is an academic work done by ‘ Deepanshu singh (21BCM1159) ,
Anish kumar (21BCM1133) ,Ayush (21BCM1118) , Akash Dhar(21BCM1156)’ submitted in the
partial fulfilment of the requirement for the award of the degree of Bachelor of commerce (hons.) at
University School of business , Chandigarh University , Punjab under my guidance & direction .

To the best my knowledge and belief, data & information represented by him in the project has
been Submitted earlier.

Signature:
Name of the Faculty: Tejinder
singh Designation: Assistant
Professor
 STUDENT DECLARATION

Certified that this project report “|FINANCIAL ANALYSIS OF PHARMACEUTICAL

COMPANIES : A STUDY OF CIPLA AND ABBOTT INDIA” is the Bonafide work of

“DEEPANSHU SINGH (21BCM1159), ANISH KUMAR (21BCM1133), AYUSH (21BCM1118),

AKASH DHAR (21BCM1156) who carried out the project work under my/our supervision.

DR.NITIN PATHAK
(HEAD OF THE DEPARTMENT )
Tejinder singh
(ASSISTANT PROFESSOR
) SUPERVISOR

T
`

ACKNOWLEDGEMENT

I hereby do solemnly acknowledge that I have taken my sincerest efforts in this project. However, it

would not have been possible without the support and help of many individuals and organizations

indulged along the way. I would like to extend my sincere thanks to all of them. I am highly indebted

to for his guidance and the constant supervision as well as for providing all the necessary

information to me regarding the project and also for the support in completing the project. I would

like to express my sincere gratitude towards my parents, friends & members of

for their kind co-operation and encouragement which help me in completion of this project. I would

also like to express my special gratitude and thanks to the industry persons for giving me such kind

attention and time. My thanks and appreciations also go to all of my colleague who formed a part

in developing the project and the people who have willingly helped me out with their special

abilities.
 PREFACE

Corporate world is operating in an environment that is turbulent and ever changing. In this
environment information is crucial to compete successfully in the market, where the market
research plays an important role as it provides various information about the market to the
company and facilitates strategic decision-making so that the organization may achieve its
objectives. cipla Healthcare Limited A major force in the pharmaceuticals and healthcare
segment, cipla Healthcare Limited, incorporating Healthcare Solutions & Pharma Solutions, has
an unequivocal vision – to become the most admired pharmaceutical company, with leadership
in market share and profits.

Healthcare Solutions This is a division with a dream to build a differentiated and a profitable
pharmaceutical business with a dominant share of market in each segment in which it has a
presence. With a dream to transform the industry first in India and then globally. With a dream to
penetrate every nook and corner of the country with modern medicine. With a dream to move
beyond pharmaceutical product offerings and make an entry into healthcare services.

The project undertaken ‘Sales analysis and Market research of ‘Anti hypertension therapy with
Cipla Ltd’ was an effort to analyze the market of four molecules of Cipla ltd. The main objective
of the project was to know the retailers (customers) of the given molecules. The main target of
the survey was to know the sales of the customers, so that by using this data, the company can
craft its strategy to increase the sales.

The present report is aimed at articulating and systematizing the definite concept of market
research. The report has been divided into eleven chapters.
 CONTENT
CERTIFICATE

ACKNOWLEDGEMENT I

PREFACE

II

CHAPTER-1 SIGNIFICANCE OF THE STUDY

CHAPTER-2 REVIEW OF EXISTING LITERATURE

CHAPTER-3 CONCEPTUALISATION

1.1 Introduction of Industry

1.2 Introduction of Company

1.3 Introduction of Topic

CHAPTER-4 FOCUS OF THE PROBLEM

CHAPTER-5 OBJECTIVE OF THE STUDY

CHAPTER-6 RESEARCH METHODOLOGY

➢ Research Design
➢ Universe and Survey Population
➢ Sample Design
➢ Data collection & Data Resorces
➢ Analysis & interpretation

CHAPTER-7 FINDINGS & SUGGESTIONS

CHAPTER-8 LIMITATION OF THE STUDY

CHAPTER-9 ORGANIZATION OF STUDY
CHAPTER-10 ANNEXURE

➢ Questionnaire
CHAPTER-11 REFERENCES
 INTRODUCTION OF THE PROJECT

The financial analysis of pharmaceutical companies Cipla and Abbott in India aims to provide insights
into their financial performance, position, and potential investment opportunities. This study delves into
various financial metrics, ratios, and trends to evaluate the companies' profitability, liquidity, solvency,
efficiency, and market valuation.

Cipla Limited, headquartered in Mumbai, India, is a leading global pharmaceutical company that
specializes in the development, manufacturing, and marketing of a wide range of pharmaceutical products.
With a strong presence in over 80 countries, Cipla is known for its focus on affordable and accessible
healthcare solutions, particularly in areas such as respiratory, cardiovascular, anti-infective, and oncology.

Abbott India Limited, a subsidiary of Abbott Laboratories, is another prominent player in the Indian
pharmaceutical industry. Based in Mumbai, Abbott India is engaged in the manufacture and marketing of
pharmaceutical products, nutritional supplements, and medical devices. The company's diverse portfolio
encompasses therapeutic areas such as women's health, gastroenterology, neuroscience, and diabetes care.

This project will analyze key financial statements such as income statements, balance sheets, and cash flow
statements to assess the companies' revenue generation, profitability, asset management, and cash flow
management. Additionally, it will examine financial ratios such as liquidity ratios, leverage ratios,
efficiency ratios, and valuation multiples to gauge the companies' financial health and performance relative
to industry benchmarks and competitors.

By conducting a comprehensive financial analysis of Cipla and Abbott India, this study aims to provide
investors, analysts, and stakeholders with valuable insights into the companies' financial strengths,
weaknesses, opportunities, and threats. Moreover, it seeks to assist decision-making processes related to
investment, financing, and strategic planning in the dynamic and competitive landscape of the Indian
pharmaceutical industry.
 REVIEW OF THE EXISTING LITERATURE

The research undertaken on market survey of four molecules in Gurgaon is the first research of
this kind in the particular segment and no existing literature is available on the concerned topic.
But the researcher has reviewed the overall market position of Cipla Ltd. in Indian
Pharmaceutical industry and found that Cipla has gained a 5.2% share in the domestic market at
the retail level, with sales of Rs. 1.128 crore, marginally ahead of GlaxoSmithKline (GSK).

(Source: Times Network Thursday, March 31, 2005)

Cipla's growth prospects are extremely attractive due to introduction of many new products. In
medicines, the antibiotics are the No. 1 segment in India. In fact there are a lot of antibiotics,
which come under the star segment and 26% of the revenues come from Antibiotics for Cipla, in
fact asthmatics are their main product contribution.

Objectives of Research:-
This case study is related to Cipla Healthcare Limited, a leading Indian Pharmaceutical firm.
Case study is for teaching purpose fit for audience like Management Graduates & Working
Executives in courses related to Merger & Acquisition, Corporate Strategies, Strategic
Management and Strategic Financial Management. Objective of the study is to provide platform
to ponder:

1. What is long term strategy of firm to be global leader.

2. What are the challenges before firm in implementing strategy.
3. Why a mid-sized firm (Nikkho) has been acquired in Brazil.
4. What synergy is expected by acquiring Nikkho and how it could be realized.
Research Strategy and Method:
The research will review secondary data in form of Annual Reports of company, documents
submitted to regulatory authorities, press statements, research reports and available literature. It
will also analyze primary data using appropriate statistical tools. The case study will be
sequenced in logical order after prototype testing.

Time & Assignment Questions:

The case is expected to take 1.5 hour for teaching and will generate different set of questions
keeping in mind who are the participants, their learning objective & level.

Bibliography:
· National Stock Exchange of India website
· Company Annual Reports (1996-2007)
· The Emergence of India's Pharmaceutical Industry and Implications for the U.S. Generic Drug
Market, US International Trade Commission
· The Indian Pharmaceutical Industries, Expansion & Ambitions by espicom
· UNCTAD world Investment Report-2006
· Wikipedia website: Mergers and Acquisitions

Keywords: merger, acquisition, patent, pharmaceuticals

 CONCEPTUALISATION

In present era of competitive business environment current and updated market information is
the foundation in taking key managerial decisions. This is true in every business and
pharmaceutical sector is not an exception to this. Therefore, gathering right and timely
information's from market play a vital role in the success of a company and every corporation is
seeking for fresh information about market. There are many ways by which a company can get
information about the market. Following are the few methods by which an organization can
collect information about the market are: -

• Magazines and news-papers

• Sales person
• Market survey (by own or through a market research agency)

Magazines and newspapers are the important secondary sources of collecting various
information's regarding the market scenario of a particular industry/ (ies). The main advantage is
that the information provided by these sources gives a good idea about the company's
competitive position and are comparatively cheaper and the cost effective but they do not serve
the purpose if the requirement of information is too specific and a required a due diligence in
decision making.

Though, the organization always tries to fill this information gap through its sales people those
who are in direct contact with customers in the market and they always possess first hand
information's about the peculiar aspect of the business and know much about current market
happenings and customer's expectations. Therefore, they are positioned to pick up the
information missed by other means. They are widely used by many organizations, but this
method also has some limitations like the sales representatives are very busy in their work and
often fail to pass on the information. Also, some sales person doesn't know which type of
information is send to which managers.

The above weaknesses made compulsory for the organizations to take the help of market surveys
to cater the specific information need of their business. It is an important tool for systematic
gathering, recording and analysis of data about the specific problems relating to the business
organization. Though, this method is costly and time consuming but the information's provided
by the market survey are the original one and cater to the specific aspect of the problem so that
the real solutions can be obtained of complex business problems and suitable strategies may be
made to cope up the future challenges of the market.

The present project entitled ‘Sales analysis and Market research of four molecules with Cipla
Ltd’ is basically undertaken to consider the specific aspect of information need of the company
as company was interested to know the sales of its molecules in Gurgaon as compared to their
competitor's products in the particular segment so that suitable sales strategies may be drafted to
gain the market share in the Gurgaon city.

Type of Market Survey

Market survey can be divided into two types: -

a. Basic survey
b. Applied survey

• Basic survey is that intended to enlarge the body of knowledge in a field or to

provide knowledge for the use of others.
• Applied survey is carried on for the solving of a particular problem or for guiding a
specific decision, and usually its results are private.

Thus, the survey conducted by researcher is a basic survey….

APPLICATION OF MARKETING RESEARCH

There are many applications of market research, which are spread into many fields. It is useful
for both type of organization whether they are profitable or non-profitable. Their applications are
depend on that in which field research is conducted. Their applications in various fields are as
follow:

• In sales and marketing research

o Measurement of market potential
o Market share analysis
o Determining market characteristics
o Sales analysis

• Business economics and corporate research

o Short-range forecasting
o Long-range forecasting
o Pricing studies .

• Product research
o Test the existing products
o Competitive products
o New products acceptance

• Advertising research
o Advertising effectiveness
o Competitive advertising
o Media research
 INTRODUCTION TO THE INDUSTRY

PHARMA INDUSTRY OVERVIEW-

The Indian Pharmaceutical Industry today is in the front rank of India's science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5
billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of
technology, quality and range of medicines manufactured. From simple headache pills to
sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now
made indigenously.

Playing a key role in promoting and sustaining development in the vital field of medicines,
Indian Pharma Industry boasts of quality producers and many units approved by regulatory
authorities in USA and UK. International companies associated with this sector have stimulated,
assisted and spearheaded this dynamic development in the past 53 years and helped to put India
on the pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered
units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical
companies control 70% of the market with market leader holding nearly 7% of the market
share. It is an extremely fragmented market with severe price competition and government price
control.

The pharmaceutical industry in India meets around 70% of the country's demand for bulk
drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and
injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the
core of the pharmaceutical industry in India (including 5 Central Public Sector Units).
These units produce the complete range of pharmaceutical formulations, i.e., medicines
ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having
therapeutic value and used for production of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the
drugs and pharmaceutical products has been done away with. Manufacturers are free to produce
any drug duly approved by the Drug Control Authority. Technologically strong and totally self-
reliant, the pharmaceutical industry in India has low costs of production, low R&D costs,
innovative scientific manpower, strength of national laboratories and an increasing balance of
trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities,
supported by Intellectual Property Protection regime is well set to take on the international
market.

ADVANTAGE IN INDIA

Competent workforce: India has a pool of personnel with high managerial and technical
competence as also skilled workforce. It has an educated work force and English is commonly
used. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly in the area of
improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides
a wide variety of bulk drugs and exports sophisticated bulk drugs.

Legal & Financial Framework: India has a 53 year old democracy and hence has a
solid legal framework and strong financial markets. There is already an established international
industry and business community.

Information & Technology: It has a good network of world-class educational institutions and
established strengths in Information Technology.
Globalization: The country is committed to a free market economy and globalization. Above all,
it has a 70 million middle class market, which is continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical industry is
finding great opportunities in India. The process of consolidation, which has become a
generalized phenomenon in the world pharmaceutical industry, has started taking place in India.

THE GROWTH SCENARIO

India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is
one of the largest and most advanced among the developing countries.

Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic
pharmaceuticals industry output is expected to exceed Rs. 260 billion in the financial year 2009,
which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will
account for Rs 54 billion (21%) and formulations, the remaining Rs 210 bn (79%). In financial
year 2009, imports were Rs 20 billion while exports were Rs. 87 billion.
STEPS TO STRENGTHEN THE INDUSTRY

Indian companies need to attain the right product-mix for sustained future growth. Core
competencies will play an important role in determining the future of many Indian
pharmaceutical companies in the post product-patent regime after 2005. Indian companies, in an
effort to consolidate their position, will have to increasingly look at merger and acquisition
options of either companies or products. This would help them to offset loss of new product
options, improve their R&D efforts and improve distribution to penetrate markets.

Research and development has always taken the back seat amongst Indian
pharmaceutical companies. In order to stay competitive in the future, Indian companies will have
to refocus and invest heavily in R&D.

The Indian pharmaceutical industry also needs to take advantage of the recent advances in
biotechnology and information technology. The future of the industry will be determined by how
well it markets its products to several regions and distributes risks, its forward and backward
integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-
marketing and licensing agreements.
 COMPANY INTRODUCTION

CIPLA

Cipla was registered as a public company with an authorized Capital of Rs 6 lakhs on August
1935. This was started as a small drug and medicines manufacturer under the name “The
Chemical, Industrial and Pharmaceutical Laboratories”, which came too popularly called as
Cipla. Cipla was officially opened on September 22, 1937 when the first products were ready for
the market.

Khwaja Abdul Hamied founded Cipla. In college, he found Chemistry fascinating. He set sail for
Europe in 1924 and got admission in Berlin University as a research student of “The Technology
of Barium Compounds". He earned his doctorate three years later. He gave the company all his
patent and proprietary formulas for several drugs and medicines, without charging any royalty.

Cipla Ltd. has displayed remarkable understanding to grow both vertically and
horizontally. Since its formation, Cipla has repeatedly scored success in its industrial
ventures by tapping opportunities in the market, even in a fierce competition in the
international environment.

Today, the company is under the chairmanship of Sh. Yusuf Hamied the Company's principal
activities are to manufacture chemicals and pharmaceutical products. The company has more
than 1,000 products in the domestic market including generic AIDS drugs, antibiotics, anti-
asthmatics, anti-cancer, anti-inflammatory, anti-depressant and other drugs. It produces its
products at 10 manufacturing plants located throughout the country. Cipla is the leader in the
domestic retail pharmaceutical market, ahead of GlaxoSmithKline. The products of the Company
are sold in India, Africa, Middle East, Europe, Americas, Asia and Australia. It also exports raw
materials, intermediates, prescription drugs, over- the-counter products, and veterinary products
to more than 160 countries around the world. A strong financial base and marketing standing are
the main reasons of company's consistent and rapid growth that sustained even more than four
decades.
 ABBOTT

Abbott Laboratories is a global healthcare company that specializes in the development, manufacturing,
and marketing of pharmaceuticals, medical devices, diagnostics, and nutrition products. Founded in
1888 by Dr. Wallace C. Abbott in Chicago, Illinois, Abbott has grown into one of the largest and most
diversified healthcare companies in the world.

Abbott's pharmaceutical division focuses on discovering, developing, and commercializing innovative

medicines to treat various medical conditions. The company's portfolio includes a wide range of
therapeutic areas such as cardiovascular, immunology, oncology, neuroscience, gastroenterology, and
infectious diseases.

One of Abbott's notable achievements is the development of breakthrough treatments for conditions like
HIV/AIDS, hepatitis C, and chronic kidney disease. Additionally, Abbott has a strong presence in the
generic pharmaceuticals market, providing affordable healthcare solutions to patients globally.

In addition to pharmaceuticals, Abbott is a leader in medical devices, offering a broad spectrum of

products including vascular devices, diabetes care products, diagnostic instruments, and medical
imaging systems. The company's medical devices segment is known for its innovative technologies
aimed at improving patient outcomes and enhancing healthcare delivery.

Abbott is also a major player in the diagnostics industry, providing a comprehensive range of diagnostic
tests, instruments, and informatics solutions to healthcare professionals and laboratories worldwide. The
company's diagnostic products cover areas such as molecular diagnostics, immunoassay, point-of-care
testing, and clinical chemistry.

Furthermore, Abbott has a strong presence in the nutrition segment, offering a wide range of nutritional
products for infants, children, and adults. Its nutritional portfolio includes formulas for infants with
special dietary needs, pediatric nutrition products, adult nutritional supplements, and sports nutrition
products.

Overall, Abbott Pharmaceuticals is renowned for its commitment to advancing healthcare through
innovation, research, and collaboration, with a focus on improving the lives of patients worldwide.
MANUFACTURING FACILITIES

The first phase of the new formulation plant in Baddi, Himachal Pradesh for the manufacture of
Tablets and Capsules was completed and the unit commenced commercial production in April
2005. Facilities for manufacture of aerosols at this site are expected to be completed by
December 2005.
Abbott operates numerous manufacturing facilities worldwide to produce a wide range of
pharmaceuticals, medical devices, diagnostics, and nutritional products. The specific
manufacturing facilities vary depending on the product lines and geographic regions they serve.

REGULATORY APPROVALS

A number of dosage forms and APIs manufactured in the company's various plants continue to
enjoy the approval of most major international regulatory agencies. These include the US
FDA, MHRA UK, PIC Germany, MCC South Africa, TGA Australia, the WTO Geneva,
Department of Health Canada, ANVISA Brazil and SIDC Slovak Republic.

SAFETY AND ENVIRONMENT CARE

As always, the company maintained high standards of safety and environment preservation at all
units. During the year, Cipla's Patalganga unit was awarded the ‘five star' rating for the third
consecutive year, while the Kurkumbh unit was awarded the coveted ‘Sword of Honour' bt he
British Safety Council.

INTERNAL CONTROL SYSTEMS

The company's internal control procedures are designed to keep pace with the organization's
growth in size and complexity of operations. These measures ensure compliance with various
policies, practices and status. Cipla's internal audit team carry out extensive audits accords
across all functional areas, throughout the year and submit their reports of the Audit committees
of the Board of Directors.
HUMAN RESOURCES

In keeping with its policy of enhancing the individual's growth potential within the framework of
corporate goals, training of technical and marketing personnel continued to receive maximum
attention. The Director records their appreciation of the support and contribution of all
employees towards the growth of the company.

Particulars of employees required to be furnished under Section 217(2A) of the Companies Act,
1956 from past of this report. Any shareholder interested in obtaining a copy may write to the
company secretary at the Registered office of the company.

OPPORTUNITIES

INTERNATIONAL MARKETS

Exports will be the thrust area for growth in the near future. The company is well geared to meet
this objective with its state-of-the-art. Manufacturing facilities at Goa, Kurkumbh, Patalganga
and now of Baddi. Cipla's products are registered in over 150 countries. Strategic alliances with
various partners in the regulated and other market will contribute to future growth.

RESEARCH AND DEVELOPMENT

The company has entered into a research alliance with Avesthagen, a Bangalore-based biotech
company, to develop biotherapeutic products. Cipla's R & D Division retains its focus on the
development of new products and new drug delivery systems across a range of therapies. A
number of patients, local as well as international, were filed during the year.

TECHNOLOGICAL STRENGTHS

Sound technical expertise and state-of-the-art manufacturing facilities will remain the pillars of
the company to consolidate its standing in India and other countries.
Strategic alliances for research, manufacturing and marketing will acquire greater importance in
the changing international business environment.

As Cipla turns 70, the company is confident of maintaining its leading position and sustaining its
growth with new vigour in the year to come.

MISSION AGAINST AIDS, MALARIA AND OTHER NEGLECTED DISEASES

Cipla continues its fight against the AIDS pandemic. Its medicines are helping to treat over
2.0.0 patients worldwide. These are several initiatives to make available new anti-retroviral
drug too HIV patients, in India and other countries, at reasonable prices and Cipla will do its
very best in this humanitarian effort. In this matter, the company has co-operated with the
international communities in every way possible.

Cipla has also been among the major suppliers of anti-malarial drugs and drugs for neglected
diseases such as schistosomiasis to international markets.

OTHER WELFARE ACTIVITIES

The Company also continued to support education and community welfare, directly and through
its charitable trusts. The Company provided medicines to treat over a million poor, aged patients
in slums and villages through Helpage India as part of its social responsibility initiative. The
Company also provided free medicines to the tsunami-affected in India and Sri Lanka.

SHARE CAPITAL

Pursuant to the Scheme of Arrangement sanctioned by the Bombay High Court vide its Order
dated 11th June 2004 and consequent to the approval already granted by the members under
Section 81(1A) of the Companies Act, 1956 the Company has allotted 8488 Equity Shares of
Rs.2 each on 10th September 2004. These shares have been listed on The Stock Exchange,
Mumbai (BSE) and National Stock Exchange of India Limited (NSE).
DIRECTORS OF CIPLA

In recognition of his achievements, the President of India conferred the coveted Padma Bhushan
Award to Dr. Y.K. Hamied on 26th January 2005. Dr. M.K. Gurjar and Mr. M.R. Raghavan
retire by rotation and being eligible offer themselves for reappointment.

➢ Founder

Dr. K.A. Hamied

(1898-1972)

Chairman & Managing Director

Dr. Y.K. Hamied

 Joint Managing Directors

Mr. M.K. Hamied

Mr. Amar Lulla

➢ Non-Executive Directors
Mr. V.C. Kotwal
Dr. H.R. Manchanda
Mr. S.A.A. Pinto
Mr. M.R. Raghavan
Mr. Ramesh Shroff
Mr. Pankaj Patel
DIRECTOR S OF ABBOTT

Director Robert B. Ford is an American businessman and the thirteenth chief executive officer at Abbott
Laboratories, a publicly-traded medical devices and health care company based in Abbott Park, Illinois.He
received a bachelor's degree from Boston College and an MBA from Haas School of Business.

➢ Founder
Dr. Wallace C. Abbott
In 1888, physician and drug store proprietor Dr. Wallace C. Abbott began producing accurate, scientifically
formulated medications with the goal of providing more effective therapies to patients and the physicians
providing their care.

Chairman & Managing Director

Dr. Munir Shaikh

 Joint Managing Directors

Dr. Swati Dalal

➢ Non-Executive Directors

Dr. Kaiyomarz Marfatia

Dr. Mahadeo Karnik
Dr. Sabina Ewing
 FOCUS OF THE PROBLEM

The focus of a financial analysis study comparing pharmaceutical companies like Cipla and Abbott
India could involve several key areas:

1. *Financial Performance Comparison*: Assessing the financial performance of both companies by

analyzing key financial metrics such as revenue growth, profitability ratios (such as net profit
margin), return on investment (ROI), and earnings per share (EPS). This comparison can
provide insights into which company is performing better financially and why.

2. *Operational Efficiency*: Examining the efficiency of both companies in managing their

operations, including measures such as inventory turnover, asset turnover, and operating cash flow.
This analysis can highlight which company is utilizing its resources more effectively to generate
revenue and profits.

3. *Debt and Liquidity Analysis*: Evaluating the debt levels and liquidity positions of Cipla and
Abbott India through metrics like debt-to-equity ratio, current ratio, and quick ratio.
Understanding their debt obligations and ability to meet short-term financial obligations can
provide insights into their financial stability and risk exposure.

4. *Investment and Growth Strategies*: Analyzing the investment and growth strategies pursued by
both companies, including capital expenditure plans, research and development (R&D)
investments, and expansion initiatives. Assessing how these strategies have impacted their
financial performance and market positioning can provide valuable insights for investors and
stakeholders.

5. *Market and Industry Analysis*: Conducting a comprehensive analysis of the pharmaceutical

market and industry trends, including factors such as regulatory environment, competitive
landscape, and market dynamics. Understanding the external factors influencing both companies'
financial performance can help contextualize their financial results and strategic decisions.

6. *Risk Assessment*: Identifying and evaluating key risks faced by Cipla and Abbott India, such as
regulatory risks, product pipeline risks, currency exchange risks, and competitive risks.
Assessing how effectively each company manages and mitigates these risks can provide insights
into their overall risk management capabilities.
 OBJECTIVES OF THE STUDY

The primary objective of the study is to analyze the competitive strength of different products of
different companies in four molecules. In order to achieve the above objective the study is
divided into following sub-objectives:-

1. To find out the availability of different products in given four molecules of

different companies.
2. To find sales volume of different types of products.
3. To compare of sales volume of different products in the same molecule and draw out
their competitive strength.

4. To analyze the factors responsible for product for their high and low completive strength.
5. To find out problems regarding company products and services.
 RESEARCH METHODOLOGY

Nature of Research:

Research on Cipla and Abbott investigates their pharmaceutical innovation, market strategies, financial
performance, and societal impact. Through qualitative and quantitative analysis of their research
initiatives, product development, and corporate practices, such studies contribute to understanding their
role in healthcare and the broader pharmaceutical landscape.

Research design:

The research design for studying Cipla and Abbott incorporates a mixed-methods approach. Qualitatively,
semi-structured interviews with key stakeholders delve into their research strategies. Quantitatively,
analysis of financial reports and market data uncovers trends in research investment and market
positioning. Integration of qualitative insights and quantitative findings allows for a comprehensive
understanding of their research activities, innovation initiatives, and impact on the pharmaceutical
industry and healthcare sector, providing valuable insights for stakeholders and researchers alike.

Universe and Survey Population:

The present study will be conducted in Gurgaon city .Survey population is chosen from the
universe on the basis of convenient random sampling. About 100 retailers are covered in survey
in Gurgaon during study.

Sample Size and Techniques:

In this a part of the population is selected to serve as representative of the population on which
research is carried out. This is necessary because sometime the size of the population make it
difficult to study each member of the population. In the present study more than 100 retailers are
covered in survey in allotted area, hence sample size is about 100. The techniques used for
choosing sample size are convenient sampling and random sampling.
 DATA COLLECTION AND DATA RESOURCES

METHOD OF DATA COLLECTION

PRIMARY SECONDARY

The study is based on primary data as well as secondary data is involved in it. The researcher has
conducted a survey and primary data is collected with the help of structured questionnaire filled
by the researcher during personal interview with the respondents

Research Instrument:

Structured questionnaire contained close-ended questions and a few open-ended questions, is

used as a tool for collection of data. Also there are some secondary data collected by company
website, wholesailers, threw company's internal departments.

Analysis Patterns:

In order to analyze the collected data the researcher has used the techniques of Percentage and
Ratio analysis with the major drugs of the company which have a competitive market share..
 ANALYSIS AND INTERPRETATION

INTERPRETATION OF SALES RECORDED IN SURVEY

This part is about the interpretation of sales recorded in survey. Many products are available in
molecules, which are considered for survey. The sale of one product in one area is different in
another area. In one market one product is dominating and in other market another product is
dominating. After analyzing the present survey, one can find out which product is dominating in
which market.

1.> Do u sell the cipla’s products?

Response Percentage of Respondent

Yes 70%
No 30%

yesno
2. >How much you have sale of Amlodipin molecules of cipla’s drug’s?

➢ AMLODIPIN MOLECULE-

The diagram shown below is informing about the number of tablets sales of different products in
Amlodipin molecule in month of June-July in Gurgaon area, Amlopress(cipla) has highest sale as
per data recorded.

AMLOPRES AMLOPIN
S (50%) (18%)

AMLOVAS
AMTAX(5%)
(12%)

Various brands from various companies are-

• Amlokind -Mankind
• Atenova -Lupin
• Amlomed –Germun Romudiz

INTERPRETATION

The diagram tells about market share of different products of Amlodipin molecule in Gurgaon.
In this area.Amlopress has highest market share with 50% of market share. After that
Amlopin(zydus) has 18% market share and stands on 2nd position.
SALES OF AMLORESS DRUG IN GURGAON REGION - 5 LAKH Monthly/-
3. >How much you have sale of Metoprolol molecules of cipla’s drug’s?

➢ METOPROLOL MOLECULE-

The diagram shown below is informing about the number of tablets sales of different products in
Metoprolol molecule in month of June-July in Gurgaon. In this area, Betaloc(astra) has highest
sale as per data recorded. Cipla product Metolor-xr come out on 2nd position in this area.

Metolor− Metax(15
xr(25%) %)

Betaloc MET−
(35%) er(10%)

Various brands from various companies are-

• Met XL -Ajanta
• Metapur –Emcure
• Selomax -Astra

INTERPRETATION

The diagram tells about market share of different products of Metoprolol molecule in Gurgaon.
In this areaBetaloc(astra) has highest market share with 35% of market share. After that Metolor-
xr(cipla) has 25% market share and stands on 2nd position.
SALES OF METOLOR-XR DRUG IN GURGAON REGION – 50000/- Monthly(App.)
4. >How much you have sale of Amlo+Atenolol molecules of cipla’s drug’s?

➢ AMLO

ATENOLOL MOLECULE-

The Drug is informing about the number of tablets sales of different products in Amlo+Atenolol
molecule in month of June-July in Gurgaon. In this area, Amlopress-at (cipla) has highest sale as
per data recorded.

MAJOR SALES COMPETITOR’S ARE….. IN THIS MOLECULE

Aten 25(26%) Amlopress− at(42%)

Amtar−at

Amlopin− at(15%)
Amlovas−at

INTERPRETATION

The market share of different products of Amlo+Atenolol molecule in Gurgaon interior. In this
area , Amlopress-at (cipla) has highest market share with 42% of market share. After that
Aten(zydus) has 26% market share and stands on 2nd position.

SALES OF AMLOPRESS-AT DRUG IN GURGAON REGION – 3.5 LAKH Monthly/-

5. >How much you have sale of Amlo+Nebivilol molecules of cipla’s drug’s?

➢ AMLO + NEBIVILOL MOLECULE -

This is informing about the number of tablets sales in Amlo+nebivilol molecule in month of
June-July in Gurgaon city. In this area, Cipla's product Amlopress- NB has highest sale as per
data recorded.

IN NEBIVILOL SALT CIPLA HAS A DRUG- NEBICIP

Sales

cipla's
other's

INTERPRETATION

The market share of Amlo+nebivilol molecule in Gurgaon city is hudge. In this area Amlopress-
NB has highest market share or we can say that only cipla deals in this molecule.that's why
cipla has a monopoly in this salt in the market..

SALES OF AMLOPRESS-NB DRUG IN GURGAON REGION – 20000/- Monthly.

6. >How much you have sale of Ramiprill molecules of cipla’s drug’s?

➢ RAMIPRILL MOLECULE -

This is informing about the number of tablets sales of different products in Ramiprill molecule in
month of June-July in Gurgaon city. In this area, Carduce(avento) has highest sale as per
recorded data. Cipla's product Ramipress has stands on second position.

Ramipress(30%) Carduce(41%) Ramipro

Hartace(25%)

INTERPRETATION

Carduce(avento) has highest market share with 41% of market share. Cipla product is on
second position with 30% market share. After that Hartace(biocoin) has 25% market share and
stands on third position.
7. >How much you have sale of Lovastan molecules of cipla’s drug’s?

➢ LOVASTAN MOLECULE

This is informing about the number of tablets sales of different products in Lovastan molecule
in month of June-July in Gurgaon interior. In this area, Zaart(cipla) has highest sale. After that
Losacar comes on second position.

zaart losacar losur

40% 35% 25%

INTERPRETATION

The diagram tells about market share of different products of Lovastan molecule in Gurgaon
interior. In this area Zaart(cipla) has highest market share with 40% of market share. After that
Losacar has 35% market share and stands on second position.
A
F
FINANCIALS

EQUITY SHARE DATA

ABBOTT CIPLA/ 5-Yr

CIPLA Chart
INDIA ABBOTT
Mar-23 Click to
Mar-23 INDIA enlarge

High Rs 1,185 22,482 5.3%

Low Rs 852 16,156 5.3%
Sales per share (Unadj.) Rs 281.9 2,517.0 11.2%
Earnings per share (Unadj.) Rs 35.1 446.8 7.9%
Cash flow per share
Rs 49.7 479.7 10.4%
(Unadj.)
Dividends per share
Rs 8.50 325.00 2.6%
(Unadj.)
Avg Dividend yield % 0.8 1.7 49.6%
Book value per share
Rs 289.2 1,480.5 19.5%
(Unadj.)
Shares outstanding (eoy) m 807.15 21.25 3,798.4%
Bonus / Rights /
0 0 -
Conversions
Price / Sales ratio x 3.6 7.7 47.1%
Avg P/E ratio x 29.0 43.2 67.1%
P/CF ratio (eoy) x 20.5 40.3 50.9%
Price / Book Value ratio x 3.5 13.0 27.0%
Dividend payout % 24.2 72.7 33.3%
Rs
Avg Mkt Cap 822,164 410,513 200.3%
m
No. of employees `000 NA NA -
Rs
Total wages/salary 38,301 5,636 679.6%
m
Rs
Avg. sales/employee 0 0 -
Th
Rs
Avg. wages/employee 0 0 -
Th
Rs
Avg. net profit/employee 0 0 -
Th
SHARE HOLDING

Indian Promoters % 13.4 0.0 -

Foreign collaborators % 20.0 75.0 26.7%

Indian inst/Mut Fund % 50.0 9.1 549.9%

FIIs % 25.7 0.2 14,294.4%

ADR/GDR % 0.0 0.0 -

Free float % 66.5 25.0 266.0%

Shareholders 425,731 69,382 613.6%

Pledged promoter(s)
% 0.0 0.0 -
holding
CURRENT VALUATIONS

CIPLA/ ABBOTT
ABBOTT INDIA
CIPLA
INDIA

P/E (TTM) x 29.0 48.5 59.9%

P/BV x 4.7 17.7 26.4%

Dividend Yield % 0.6 1.2 50.8%

INCOME DATA
Rs
Net Sales 227,531 53,487 425.4%
m
Rs
Other income 5,121 1,543 331.9%
m
Rs
Total revenues 232,653 55,030 422.8%
m
Rs
Gross profit 48,079 12,055 398.8%
m
Rs
Depreciation 11,721 700 1,675.2%
m
Rs
Interest 1,095 160 685.1%
m
Rs
Profit before tax 40,384 12,738 317.0%
m
Rs
Minority Interest 0 0 -
m
Rs
Prior Period Items 0 0 -
m
Rs
Extraordinary Inc (Exp) 0 0 -
m
Rs
Tax 12,029 3,244 370.8%
m
Rs
Profit after tax 28,355 9,494 298.7%
m
Gross profit margin % 21.1 22.5 93.8%

Effective tax rate % 29.8 25.5 117.0%

Net profit margin % 12.5 17.8 70.2%

BALANCE SHEET DATA
Current assets Rs m 168,051 30,251 555.5%
Current liabilities Rs m 50,333 12,060 417.3%
Net working cap to sales % 51.7 34.0 152.1%
Current ratio x 3.3 2.5 133.1%
Inventory Days Days 73 87 84.4%
Debtors Days Days 7 2 300.9%
Net fixed assets Rs m 117,318 15,135 775.2%
Share capital Rs m 1,614 213 759.7%
"Free" reserves Rs m 231,845 31,248 742.0%
Net worth Rs m 233,460 31,460 742.1%
Long term debt Rs m 0 0 -
Total assets Rs m 290,067 45,386 639.1%
Interest coverage x 37.9 80.7 46.9%
Debt to equity ratio x 0 0 -
Sales to assets ratio x 0.8 1.2 66.6%
Return on assets % 10.2 21.3 47.7%
Return on equity % 12.1 30.2 40.2%
Return on capital % 17.8 41.0 43.3%
Exports to sales % 22.6 0.4 5,474.8%
Imports to sales % 8.9 10.8 82.4%
Exports (fob) Rs m 51,516 221 23,289.3%
Imports (cif) Rs m 20,202 5,765 350.4%
Fx inflow Rs m 64,282 310 20,749.4%
Fx outflow Rs m 20,202 5,818 347.3%
Net fx Rs m 44,080 -5,508 -800.3%
 CONCUSION
Total sale of hypertension drugs in the gurgaon region:-

( company sale)

10 lakh/- Average monthly

(With the growth rate of 23% annually.)

INTERPRETATION OF MARKET SHARE OF CIPLA IN

VARIOUS MOLECULES-

This part of the project report is about the market share of Cipla in Various molecules in total
allotted area. The market share of different products is calculated with help of conducted survey
i.e. according to retailer's responses towards their sale and knowledge. All the responses given
by all the surveyed customers are taken together and the average of their responses are taken and

according to that the market share of different products along with Cipla's products are
calculated ..

The several molecules likes- telmesontom and olmesontom, in this molecules cipla's market
share is very low in compare to other rival's and the reason behind it that the advertisement
doing by the company is very less..in case of other molecules company have a good market share
on the basis of his good image..

Mainly company focuses on the high class customer's.that also observed during study.
 FINDINGS AND SUGGESTIONS
FINDINGS
Findings regarding Cipla and Abbott may include:

1. Research Investment: Both companies invest significantly in research and development,

reflecting their commitment to innovation and product development.
2. Market Performance: Abbott demonstrates strong market performance, with a diverse
portfolio of products and robust sales, while Cipla's performance may show variations
depending on market dynamics and product launches.
3. Innovation Focus: Cipla emphasizes generic pharmaceuticals and affordable healthcare
solutions, while Abbott focuses on a broader range of therapeutic areas, including branded
pharmaceuticals, medical devices, and nutritional products.

SUGGESTIONS

1. There is a customer care center and it has to cover a large area, so there is a need for
sub- dealers under the customer care center so that the products can reach to the
customers faster.
2. Company should distribute its catalogue more and more, so that its products are
more informative.
3. The representatives should be given frequent response for solving the problem.
4. If something found wrong or damaged, it should replace frequently. There should be no
delay from company side.
5. Company should quickly replace material, which is unsold foe a long time.
6. The number of retailers in Gurgaon interior is to be looked with importance as there
are large numbers of small customers but they are still to be tapped.
7. The representatives of the company should give more frequent visits to the places.
The representatives should take the opportunity to have the scheduled visits to the
customers.
 LIMITATIONS OF THE STUDY

Following are the limitations of the study:

1. The scope of study is limited to Gurgaon only.

2. The study is related to a period of June-July, 2010

3. Response from the respondents may be different from actual view. Respondents
might not disclose the actual view.

4. Collecting information from people during the working hours was also critical.

5. The retailer do not show any interest in filling the questionnaire because they thought
that it is not beneficial for them.
 ORGANISATION OF THE STUDY

(1) This chapter includes what is the importance of the study, means how it is beneficial to other
persons includes employees of the company, for top management of the company, and for the
person after me who is going to study the respective topic as secondary data.

(2) This chapter contains how much study has been taken place on the same topic before
me. Which secondary data I use for my project?

(3) This chapter contains all the information regarding the topic “ Sales Analysis and Market
Research ” its uses, methods, objectives, problems means all the detail of the complete
topic.

(4) This chapter contains what is my main aim to do the study of the topic Sales Analysis and
Market Research on which point I concentrate more means what is my project's primary aim.

(5) This chapter contains objectives and hypothesis. Hypothesis means the presumptions that I
assume before doing my study.

(6) This chapter contains all the information about the research methodology used for doing the
entire study. Research methodology includes research design, universe and survey population,
sample design, collection of data, analysis and interpretations.

(7) This chapter contains findings.and suggestion given by me.

(8) This chapter contains limitations which I faced in the study.

(9) This chapter contains all the information's means how I organize my study.

(10) This chapter includes questionnaire,in the annexure part.

(11) This chapter includes from where I collect all the data, which I use in the project.
 QUESTIONNAIRE
Counter’s Name : …………………………………………………

Location / Address : ……………………………………………….

Mobile / Phone No. : ……………………………………………….

Prescriber Name : ……………………………………………….

1. Do you sell the product of CIPLA

LTD. ? Yes No

2. How much you have sale of these molecules drugs?

a) Amlopress b) Ramipress

c) Metolor-xr d) Amlopress-NB

e) Amlopress-at f) Creaser

g) Zaart g h) Olme- up

3. Why you are interested in above brands?

Quality in good Good service

Network Product Price

4. Do you think that advertisement affects the sale of

medicines? Yes No
5. Who is the actual buyer of CIPLA LTD..
a) High Class b) Middle Class

c) Lower Class

(Thanks for co-operation)

 BIBLIOGRAPHY

Kothari C.R., “Research Methodology Methods & Techniques”, New Delhi, WISHWA
Publications, Second Edition

Kotler Philip, “Marketing Management”, New Jersey, Prentice Hall International, Inc., 2002-
2005

www.cipla.com

www.cipla.doc