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CONTENTS

SERIAL DETAILS PAGE

NO NO

I CHAPTER 1

INTRODUCTION 2

INDUSTRY PROFILE 3

COMPANY PROFILE 7

PRODUCT PROFILE 14

II CHAPTER II

DESIGN OF THE STUDY 17

SCOPE OF THE STUDY 17

OBJECTIVES OF THE STUDY 18

LIMITATIONS OF THE STUDY

18

III CHAPTER III

QUALITATIVE ANALYSIS OF THE 20

STUDY

IV CHAPTER IV

FINDINGS 47

SUGGESTIONS 48

CONCLUSION 49

BIBLIOGRAPHY 50
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CHAPTER - 1
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INTRODUCTION

An organization is a social arrangement which pursue collective

goals, which controls its own performance, and which has a boundary separating it from its
environment. Organization is the association formed by a group of people who worked
individually or in groups to achieve common set of goals.

Organizational studies are the study of individual and group dynamics in an organizational
setting, as well as the nature of the organization themselves. Whenever people interact in an
organization, many factors come to play. Organizational studies attempts to understand them
and hence it is essential to an MBA program as it helps them to connect theory with practice.

As a part of the MBA program I an organizational study was conducted at OUSHADHI, to

know about the functions of an entire organization. The study was conducted for a period of
one month. The aim of the study is to acquire practical knowledge of the application of
management theories in the functioning of the organization and it also helps in understanding
the organization structure and functions of various departments in the organization.
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INDUSTRY PROFILE

AYURVEDA PHARMACY.
The pharmaceutical industry develops, produces, and markets drugs licensed
for use as medications. Pharmaceutical companies can deal in generic and or brand
medications. They are subject to a variety of laws and regulations regarding the patenting,
testing and marketing of drugs. The earliest drugstores date back to the middle Ages. The
first known drugstore was opened by Arabian pharmacists in Baghdad in 754 and many
more soon began operating throughout the medieval Islamic world and eventually medieval
Europe. By the 19th century, many of the drug stores in Europe and North America had
eventually developed into larger pharmaceutical companies. The industry remained relatively
small scale until the 1970s when it began to expand at a greater rate

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. It ranks very high in the third world, in terms of technology,
quality and range of medicines manufactured. 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.

Ayurvedic Pharmacy (AP) is emerging as an independent science largely due

to global acceptance of Ayurveda. Ayurvedic Pharmacy is not new subject and has recently
it has faced drastic transition. Ayurvedic Pharmacy has roots in Dravyguna, Ras-Shastra and
Bhaishjya Kalpana. Ayurvedic Pharmacy utilizes drugs of composite origin including plant,
animal, mineral and marine sources. Ayurvedic medicines are produced by several thousand
companies in India. It is estimated that the total value of products from the entire Ayurvedic
production in India is on the order of one billion dollars. The industry has been dominated by
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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 the broad category of "fast moving
consumer goods". Most of the larger Ayurvedic medicine suppliers provide materials other
than Ayurvedic internal medicines, particularly in the areas of foods and toiletries, 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. Exports of Ayurvedic
medicines have reached a value of 100 million dollars a year. About 60% of this is crude
herbs, about 30% is finished product shipped abroad for direct sales to consumers, and the
remaining 10% is partially prepared products to be finished in the foreign countries.

AYURVEDA: THE SCIENCE OF LIFE.

Ayurveda is a science which indented to benefit the entire world. In ancient India it was
considered as a great science in touch with Indian philosophical thoughts and its tenets were
found highly beneficial as a system of medicine. Ayurveda aims physical, psychological and
social welfare of living being. It envisages the means of preservation of health, prevention
and treatment of various ailments. Approach of Ayurveda is field oriented, holistic and
functional. This science of life utilizes wealth of nature for increasing the resistance of the
body and treats man as a whole and uses drug as a whole as well. Ayurveda vies that
successful medical treatments depends upon four factors-the physician drugs or diets, nurse
and patients. The objective of the science of life is establishing the equilibrium of body
elements. Ayurveda favors administration of natural raw drugs and their preparation.
Generally Ayurvedic medicines cause no toxic or side effects, no question of tolerance,
resistance and addiction.
PHARMACEUTICAL SCIENCE OF AYURVEDA.
The pharmaceutical science of Ayurveda deals with the preparation of effective
remedies for the eradication of diseases and preservation of health. Pharmaceutical
preparations are made with a view to make the drug more potent, preserved and clinically
effective. Mode of preparation plays an important role in the absorption of drugs.
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SCOPE OF AYURVEDA

Ayurveda has dealt with anatomy, physiology, Etiology, Pathology, Therapeutics,

achievements of good health, hematology including the stage of the disease, physicians,
therapies including wholesome locality and procedure. The body is composed of
panchamahaboothas and divided into several organs. Its multifarious functions are
maintained and regulated by the food that one takes. The unwholesome contact with sense,
intellectual blasphemy and seasonal variations constitute the etiology of the diseases. The
disturbance of the equilibrium of the dhatus is responsible for the causation of the diseases.
Different seasonal changes and the different stages of the manifestation of diseases, constitute
the time (Kaala). The procedure of treatment to be followed depends on the time, the disease
and the drug.

AYURVEDA IN INDIA

Native to India, Ayurveda is the ancient medicinal form, developed during the Vedic times,
about 5000 years ago. The word 'Ayur' means life, while 'Veda' means science. Therefore,
Ayurveda literally means the 'Science of Life'. It is not just a medicinal system, but also a
way of life. Ayurveda deals with the physical, as well as spiritual health. The medicinal form
is governed by the laws of nature, which suggest that life is a combination of senses, mind,
body and soul. According to the science of life, the structural aspect of every individual
comprises five elements- earth, water, fire, air, and space. While giving Ayurvedic treatment
to a person to cure a particular disease, the physical, mental, emotional and spiritual well-
being is taken into consideration. The best part of acquiring an Ayurvedic treatment is that if
the prescribed doses of medicine are taken, the diseases can be cured in the most effect way.
The Ayurvedic medicines generally come in the form of powders, tablets, decoctions, and
medicated oils, that are prepared from natural herbs, plants and minerals. In addition, the
diseases treated and cured by Ayurvedic medicines do not cause any side effects.

According to Ayurveda, the structural aspect of every individual is made up of five elements
- earth, water, fire, air and space. The functional aspect of the body is governed by three
biological humors. Traditional techniques and processes are used to prepare the medicines at
home, while certain amount of mechanization is inevitably used for large-scale production.
The beauty of the therapeutics is that they contain the active principles in their natural forms
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and their administration in prescribed dozes does not cause any side effects to the patients.
Ayurveda gives a complete look into the lifestyle of a person, like starting from his/her
personality to the daily food habits. The Science of Life helps us in understanding each
individual at a very subtle personal level and giving a detailed description about the diet,
daily routine, lifestyle, actions and activities to be followed. The science teaches how to live
life in a balance way. Ayurveda aims at having a healthy and happy society, free from
diseases. India has gained worldwide recognition for its indigenous and extensive Ayurvedic
treatment. Various centers are established throughout the length and breadth of the country,
wherein authentic Ayurvedic treatment is given. Kerala is the hub of Ayurvedic treatments in
India. Ayurvedic treatment's soothing effect on the body and soul has attracted tourists from
different parts of the country as well as from across the globe. This has proved a boon for
tourism in the states of India, especially Kerala, where Ayurvedic treatment is given at
various health centers and tourists resorts.

STATUS OF AYURVEDA IN INDIA

• Number of registered medical practitioners: 366,812

• Number of dispensaries: 22,100

• Number of hospitals: 2,189

• Number of hospital beds: 33,145

• Number of teaching institutions (undergraduate): 187

• Number of upgraded postgraduate departments: 51

• Number of specialties in postgraduate medical training: 16

• Number of pharmacies manufacturing Ayurvedic medicines: 8,400

MODERN MARKET DEVELOPMENTS

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The SAARC- South Asia Association for Regional Cooperation which include India,
Pakistan, Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka- These countries all have been
influenced by Ayurvedic medicine. Trade in Ayurvedic medicines within the SAARC is
mostly limited to raw materials that grow in one region (e.g., high mountains, northern
climate) and are then exported to other regions. Because of the large number of very small
factories that try to service the local communities, with products labeled with the local
language, there is little opportunity for suppliers in one SAARC country to send finished
products to another SAARC or even abroad. Entrepreneurs in these countries, mainly in
India, are seeking to break into the market for natural products have determined that the
demand for traditional style Ayurvedic medicines both inside and outside the region is
limited. They have aimed to bolster interest by carrying out scientific research into promising
herbs and formulas that are based on Ayurveda but not necessarily reflecting traditional
practices. Of necessity, such research eventually focuses on finding of active ingredients, and
this has led to the development of isolates from plants that are sold as "nutriceuticals"
-substances not registered as drugs, but used like nutritional and dietary supplements. For
these, there is a growing worldwide demand.

COMPANY PROFILE

OUSHADHI.

The Pharmaceutical Corporation (Indian Medicines) Kerala Ltd or Oushadhi is a herbal

Ayurvedic medicines production company under the direct control of Kerala Government.
Directly controlled by Health and Family Welfare Department of Kerala State Government
and is governed by a Board of Directors, appointed by the Government of Kerala. Originated
as Sree Kerala Varma Govt. Ayurvedic Pharmacy in 1941 at the instance of His Highness the
Maharaja of Cochin, for the supply of medicines to Govt.Ayurvedic Hospitals in Thrissur and
erstwhile princely family of Cochin State.In 1959 it is converted and registered as Co-
operative Society, and named as Sree Kerala Varma Ayurvedic Co-operative Pharmacy &
Stores Limited, No.4318, Thrissur. On 08.09.1975 incorporated as a company under the
Companies Act 1956 and renamed as The Pharmaceutical Corporation (I.M) Kerala Ltd,
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Thrissur and its operations started on 10.07.76 with the take over of the business of SKVAC
Pharmacy. The company supplies Ayurvedic medicines to 1000 plus Ayurvedic treatment
centers functioning under Kerala Government. Their medicines are also available in the
market. The company also supplies medicines to other state Governments in India.
Madyapradesh, Rajastan, Haryana, Maharashtra, Punjab, Chathisgarh, Orissa, and
Pondichery.

LOCATION

Registered Office: Shoranur road, Thrissur, Kerala, South India.

Factory: Kuttanellur, 8 Kms from Thrissur Town.
Office: Kuttanellur, 8 Kms East from Thrissur Town.

OBJECTIVES
 Manufacturing and Marketing of high quality Ayurvedic medicines
 Research and Developmental studies on Ayurvedic formulations.
 Supply quality ayurveda medicines to all Government dispensaries and hospitals in
the state at subsidized price.
 Promotional activities on medicinal plants Cultivation.
 Health Care through Panchakarma therapy and Clinical Research Program.
 Implementation of Govt. of Kerala Health Care Programmes.
 To act as a price stabilizing

FEATURES
The company manufactures more than 450 Ayurvedic formulations as
per ancient classical texts, rare combinations of expert, experienced Keralite authorities and
special combinations developed in the Research wing. The company upholds ancient
traditional methods of manufacturing along with modern machinery and technology under
strict quality control measures. The whole manufacturing activities are under the direct and
expert supervision by qualified Ayurvedic Physicians. Quality medicines are made available
to the public at reasonable price
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The company meets the entire medicine requirements of Government Ayurvedic Hospitals
and Dispensaries under the Department of Indian Systems of Medicines, Kerala.
The pharmacy fulfils the demands from Directorate of I.S.M.Bhopal, Jaipur National Institute
of Ayurveda, Government Hospitals and Dispensaries under Central Government Health
Schemes, Employees State Insurance Medical Services, Government Ayurveda Colleges,
Tribal Welfare Department, Govt. Ayurvedic Mental Hospital, Kottakkal, Government of
Kerala ICDS Cell programs. Public demands are met through a network of 500 exclusive
Oushadhi Dealers and Agents. The organization implements health care projects from Local
bodies. Propagation of Ayurveda by establishing specific clinical practices all over India.
Also implements medicinal Plants Cultivation program linked with local bodies and
entrepreneurs under buy- back arrangement .There is a nursery development for the
production of quality seedlings.

The annual national conference aimed at education on medicinal plants is conducted under
the aegis of oushadhi. Continuing Medical Education for Ayurvedic practitioners is another
positive step by the company. It has a wide product range of more than 450 medicines, 15 of
them are patented to the company. An Ayurvedic hospital with panchakarma treatment
facilities is the latest development by the company.

PANCHAKARMA HOSPITAL & RESEARCH INSTITUTE THRISSUR

The Panchakarma Hospital & Research Institute is situated in Thrissur. The hospital provides
modern amenities like luxury furnishing, air-conditioning, special treatment rooms etc.
Oushadhi Panchakarma Hospital and Research Institute is fully owned by Kerala
Government. Ayurvedic treatment is a traditional phenomenon of India. Oushadhi
Panchakarma Hospital and Research Institute will be an attraction for people because
Panchakarma therapies are inseparable part of Ayurvedic management and can be called the
essence of Ayurveda. As a part of diversification program, Oushadhi has entered in the field
of health care to provide quality treatment to the public. Adhering to the traditional methods,
Oushadhi offers most modem facilities for health care practices through Oushadhi
Panchakarma Hospital and Research Institute at the heart of Kerala’s Cultural capital,
Thrissur.Global attraction towards Ayurvedic system of medicine, made hopeful chances to
improve the system. Panchakarma and related health care practices are the integral part of
Ayurvedic system of medicine.
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HOSPITAL COMMITTEE

A committee to advice Oushadhi on various technical aspects of hospital administration is

constituted. The committee includes experienced and respectable Acharyas from different
systems of medicine, officials of Govt. departments, eminent persons in the field of
Ayurveda, medical research etc

MEDICINAL PLANTS CULTIVATION

The pharmaceutical corporation functions as a nodal agency of the Govt. of Kerala for the
propagation of medical plants cultivation. Land available in factory premises is utilized for
nursery development under NMPB fund, cultivation of species like Ashokam (Saraca indica),
Raktachandanam (Pterocarpus santalinus), Vilwam (aegle marmelos), Amalaki (phyllanthus
emblicus) and various projects from Kerala Forest Department and KFRI. Land available at
Pariyaram, Kannur District is utilized for cultivation of tree species and selected herbs and
nursery development. Has held discussions with Aralam farm authorities for leasing 100
acres of land for medicinal plants cultivation. Oushadhi Managing Director holds the charge
of Chief executive Officer for State Medicinal Plants Board.

Objectives

 To meet internal demand.

 To establish demonstration garden of rare species and to preserve them from extinction.
 To develop nursery of Medical plants, make them available even to small land owners
who can cultivate medicinal plants and thus increase their income.

vision
A Leading world class Ayurveda industry in the country by 2020.

Core values
• Mutual trust and respect.
• Customer satisfaction.
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• Quality control.
• Professional ethics.
• March with time.

Strength
• Established brand image.
• Continuous government support.
• Huge market demand.
• Dedicated work force.

Future plans.

 The future plans of the company include modernization of existing unit to improve
quality and to meet the modern market requirement.
 Establishing branches in neighboring state to promote oushadhi.
 Establishment of export oriented production unit for selected high demanded item.
 Computerization of entire business.
 Establishment of new processing and value addition units.
 Strengthening of quality control and drug testing laboratory.
 Development of new drugs in neutraceautical,cosmetic and baby product segments.
 Promote medical plant cultivation and conservation.
 Purchase of raw materials raised by farmers through oushadhi agents spread all over
the states through an effective buy back arrangement to encourage medicinal plant
cultivation by farmers.

.
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MILE STONES

Year Achievements.

1941 Commenced by His Highness of Maharaja of Cochin as Sree Kerala Varma

Ayurvedic pharmacy.

1959 Converted in to co-operative society viz Sree Kerala Varma Ayurvedic

Pharmacy and Stores Ltd

1975 Registered as a company under Indian companies act and renamed as The
Pharmaceutical Corporation ( Indian Medicines) Kerala Ltd.

1991 Commissioned modern manufacturing unit at kuttanallor and shifted the

factory to new premises.

2004 Started a new Phanchakarma Hospital and Research Institute at Thrissur.

2007 The entire office shifted to the factory premises at Kuttanallor.

2008 Commenced full fledged R&D center at kuttanallor and regional

distribution unit at Kannur.
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ORGANIZATIONAL STRUCTURE

CHAIRMAN

BOARD
DIRECTORS

MANAGING DIRECTOR

ADMINISTRA
FINANCIAL PRODUCTION MARKETING MAINTANANC
TIVE OFFICER
CONTROLLER MANAGER MANAGER E MANAGER

2
DEPU SALES MNGR
ACO ASS. TY (AGENCY)
ACCO UNT ADMN PROD
MGR MANA N SALES MNGR
GER SR ASS
MANA (GOVT DEPT) ASS.
PR MAN
PURCHASE GER
MGR
CASH MANAGER
SR. SR. WOR
IER
ASS ASS KKKK
MANA MANA KkKK
ACCOU AM
CLER GER GER KKKS
NTANT STORES
KS PRO
S WORK
JR.ASS
S
TRAIN MANA
EMPL
EE DR GER
OYEES

SUPERVISER JR. ASS

/FOREMAN MANGR MAINTANA
NCE
EMPLOYEES
WORKER/
LGE
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PRODUCT PROFILE
Oushadhi pharmaceuticals produce around 450 varieties of medicines. Modern dosage like
ointment, tablets, granules, and syrup are introduced.

Sl.No Category Nos

1 Asavams & Arishtams 38
2 Medicated oils 112
3 Lehyams & Ghrithams 59
4 Gulika and Tablets 52
5 Liquid Kashayams 49
6 Kashaya choornam & 112
Sooshma choornam
7 Bhasma sindhooram 13
8 Patent & proprietary 17
Total 450

PROCUCT RANGE

Classical products Patent products

Sivagulika Burncure ointment

Haridrakhandam Rheumajith ointment
Gandhthylam Murivenna ointment
Aswagandhathi lehyam Bliss balm
Amrutha prasam Psorset ointment
Saraswatharishtam Psoreset oil
Dashamoolarishtam Hair tone
Kottamchukkdhi Oushadi Chavanaprasam
Agasthya rasayanam Thengin ppokkulamritham
Bhrahmikritham Oushadi Tooth powder
Thailispathrathi Oushadi dhahashamani
Rasneradi Diabet drinks
Rasneradi liquor. Ashtachoornam syrup
Oushadi Cough syrup
Sudarshanam Tab
Shaddaranam
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Vigor plus
Premehoushadi

Newly launched products

 Vigor Plus.
 Oushadhi Cough Syrup.
 Bliss balm.
 Sudarsanam tablets.
 Psorset oil and ointment.
 Shaddharanam tabs.

Products in pipeline
 Hair die.
 Herbal face pack.
 Herbal shampoo.
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CHAPTER – 2

DESIGN OF THE STUDY

The information and data were collected from both primary and secondary sources.
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Primary sources

 Direct interview with managers.

 Direct interview with supervisors and workers.
 Through direct observation.

Secondary sources

 Published sources of the company.

 Official websites of the company.

SIGNIFICANCE OF THE STUDY.

 To get a practical experience of working of an organization.

 Comparison of theoretical knowledge with practical knowledge.
 To know about the application of management studies in an organization.
 To know the strength and weakness of the organization.

SCOPE OF THE STUDY

The organization study covers the following aspects:

 Present position of the company

 Overall functioning of the company
 Performance of the company

OBJECTIVES OF THE STUDY

 The main objective of the study is to acquire knowledge about the organization structure.
 To have a practical knowledge of the application of the management theories.
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 To know the role played by the company in the industry.

 To know the profile of the company.
 To study the different departments in the organization.
 To study the techniques adopted by the company.
 To analyze the strength and weakness of the company.
 To analyze issues of the company and give suggestions.

LIMITATION OF THE STUDY

 As time was a major constraint, a research type in depth study could not be made.
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CHAPTER – 3

QUALITATIVE ANALYSIS OF THE COMPANY

FINANCE DEPARTMENT.

Finance is the lifeblood of every business. The ambitious plan of a business man would
remain mere dreams unless adequate money is available to convert them into reality.
Financial function calls for skillful planning and control of various financial activities.
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Finance department play a vital role for the smooth functioning of the organization. This
department is involved in all the activities that take place in the organization. Marketing
department and production department have to greatly depend on finance department for the
availability of the fund. Financial controller is the head of the department.

Organization structure of the department.

Financial controller.

Accounts Accounts Purchase

manager. officer wing.

Cashier. Accountants
. Stores.

ROLE OF FINANCE MANAGER

 Allocating the fund provided by the Government to various departments.

 Keeper of books of accounts.
 Evaluate the effectiveness of financial decisions.
 Advice Managing Director in all financial and Accounts matters.
 Scrutinize and clear the financial proposals.
 Ensure that the expenditures are having proper sanction
 and within the Budgetary limit,
 Responsible for up to date maintenance of all records, returns and accounts.
 Preparation of Annual Budgets.
 timely preparation of annual accounts &
 All other related works connected with Finance and Accounts
CONTROL PROCESS:
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Finance functions deals with procurement of funds and effective utilization of the fund in the
betterment of the business. Control over expenses is ensured by comparing actual expenses
with that of budgeted figures. By constantly monitoring various operational activities cost
control and cost reduction are facilitated. Accounting functions involves day to day
accounting of several transactions relating to purchases, inventories, production, sales, other
incomes, fixed assets, salaries and wages and other expenses such as manufacturing,
administration, selling and distribution.

PREPARATION OF FINANCIAL STATEMENT

One of the important responsibilities of the department is the preparation of financial

statement in a periodic basis and the interpretation of this statement. This is quite helpful for
the management in ensuring proper control over the performance of the company and also to
frame up appropriate policy frame works. The finance department prepares the following
statements

 Profit and Loss Account

 Fund Flow Statement
 Budget

BOOKS OF ACCOUNTS MAINTAINED BY THE FIRM.

• Cash book

• Bank book

• Purchases book

• Sales book

• Journals

• General ledger

• Fixed assets ledger etc

CASH MANAGEMENT
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Cash is needed by the firm to meet its transactions precautionary and speculating
requirements. The fund provided by the Government is managed efficiently by the firm. For
this a budget is prepared for the proposed requirements of fund that will be needed by each
department. The goals of the cash management are

• To satisfy the day today business requirements

• To provide for schedule major payments

• To face unexpected cash drains.

• To build image of credit worthiness

• To build the reservoir for net cash.

ALLOCATION OF FUNDS TO VARIOUS DEPARTMENTS

Finance functions deals with procurement of funds and effective utilization of the fund in the
betterment of the business. Allocation of funds held in this mill as per requirements and
availability. All the funds are allocated to various departments that is purchase department,
store department, production department, maintenance department, marketing department,
and administration department.

PAYMENT AND COLLECTION PROCEDURE

The payment and collection of money held in finance department. By constantly monitoring
various operational activities cost control and cost reduction are facilitated. The major supply
of the organization is to government. For a public organization government will provide fund
if they had, and using the fund provided by the government medicines are produced and a
major portion are sold to government. For sales to agency, cash and carry system is followed.
Credit sales are not allowed. As regarding to purchase of raw materials, purchases are done
by inviting tenders. Annual tender is invited and a credit period of sixty days are allowed if
immediate payments are not made. Likewise in the case of installation of machinery also.
After installation and commissioning the payment for machineries are made.
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MARKETING DEPARTMENT.

Oushadhi is having a strong network of exclusive Oushadhi agents and dealers of about 600.
These agencies are exclusive showrooms of oushadhi products. Distribution centers have
been opened in New Delhi, Mumbai, Pondichery etc for catering outside Kerala Market.
Oushadhi is the Principal supplier of Ayurvedic Medicines to Government Ayurvedic
Hospitals and Dispensaries under Indian Systems of Medicine (Kerala)as well as to some
other I S M department of Madhyapradesh Chattigarh,Rajasthan,Pondichery etc. also the
organization Supplies medicine to institutions like Govt.Ayurveda Colleges, Mental
Hospital,Kottakal etc. Supply of medicines to Government of Kerala Health Care programs
for contagious diseases. Extends supplies to Central Government Health schemes, ESI
dispensaries, ministry of Labour & mining, Tribal Welfare Department etc.

organization structure of the department.

Marketing manager

Sales manager. Sales

(govt) manager(agency)

Ass.sales manager. Ass.sales managr.

Jr.managers Jr.manager

Marketing is based on identifying, anticipating and satisfying customer needs effectively and
profitably. It encompasses market research, pricing, promotion, distribution, customer care,
your brand image and much more. The mission of marketing of oushadhi aims at satisfying
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customer needs. It integrates all the functions and parts of a company to serve the markets.
Marketing connects the production and consumption functions. Oushadhi is gifted with an
efficient Marketing system which shows how to create effective production systems and
consequently prosperity. In addition to economic and social responsibility, ecological
responsibility is also emphasized by the firm. Three major functions of are divided as-
exchange function, which include buying, selling and pricing. Physical function which
include assembling, transport and handling, storage and handling, grading and
standardization. Facilitating functions include financing and risk bearing, market information
demand and supply creation and market research.

THE POWERS AND DUTIES OF MARKETING MANAGER ARE:

 Evolve strategies for effective marketing of products

 Prepare Sales targets
 Monitor dispatch of medicines
 Gather market intelligent report
 New agency allotments
 Hold agency and Doctors meetings
 Appraisal of agency performance
 Liaison between ISM Department
 Attend to matters relating to advertisement, sales promotions, Trade Fairs etc

The duties and responsibilities of Manager (Sales)(D) includes:

 To attend matters relating to Sales to Government Departments, Grama Panchayats,
Guruvayur Devaswom and similar institutions.
 Act as Nodal Officer, related with Government supply, overall management of
distribution to Government institutions.
 Overall control of sales staff etc.
Manager (Sales)
 Attending to matters relating to Sales to Agents within the State of Kerala. This
 Includes, planning distribution of medicines to Agencies, periodical inspection of
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agencies.
 Monitoring the sales through outlets directly run by Oushadhi.
 Attending the files regarding advertisement, sales promotion and other publicity
activities, etc

PRICING.

The main objective of oushadhi is to produce high quality products and to sell them at
reasonable price. The pricing method adopted by the firm includes:

 Cost plus pricing

 Competitors pricing.

Cost plus pricing:

Pricing method whereby a standard markup is added to the estimated cost of the product. The
cost-plus price is computed by dividing the fixed costs of a product by the estimated number
of units to be sold and then adding the variable cost per unit, or by adding the total variable
costs and fixed costs and then dividing by the total number of units to be produced. This will
determine the true unit cost. Once the true unit cost has been determined, that cost is divided
by 1 minus the desired return on sales (a percentage) to determine the cost-plus . the
advantages of cost plus pricing are:

 Easy to calculate

 Minimal informational requirements.

 Easy to administrate.

 Tends to stabilize markets- insulated from demand variations and competitive factors.

 Insures seller against unpredictable or unexpected later cost.

 Ethical advantages.

PRODUCT POLICY

 To produce medicines of high quality

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 Continuous innovation of product

 To sell the products through suitable distribution structure.

 Pack and sale products in convenient pack and to use and store.

ADVERTISING POLICIES AND PROCEDURES

Oushadi has created a high brand image that they are not even able to meet the customer
demand. They stick to the policy that ‘A satisfied customer is the best advertisement’.
However to educate customers and make them aware of new product, Oushadhi advertise
their products through various Medias which include:

 Newspaper

 Television channels

 FM Radio

 Internet

 Tradefair

 Exhibition

 Customer meet

 Medical camp by agents.

 Film ad

Advertisement for the company is done through various agencies. For this a paper is called
for and agencies are invited. The company will interview the representatives of the agencies.
After interview the company will evaluate which agency can effectively sell them. A total
budget of one lakh is allocated for advertisement. The various cost incurred are for

 Payment to agencies
 29

 Payment to medias

 To display Pop materials for purchaser

 Shooting ad film etc

DISTRIBUTION STRUCTURE

Distribution structure involves the channel through which the products are reaching in the
hands of consumers. As Oushadhi is a Government organization, two by third of the products
produced are sold to the Government. The rest of the sales is done through agencies. Oushadi
sale its products through six hundred and ten agencies across Kerala and special outlets in the
Metros all over India. These agencies helps the organization

 For the forward flow of products from the company to the consumers.

 Provide for the successive storage and movement of the product.

 Helps for making orders and payments.

SALES PROMOTION ACTIVITIES

Sales promotion activities are conducted to stimulate greater purchase of particular products
by the consumer. Oushadi is as patent producer of Ayurvedic medicine and has created brand
image since the beginning. The company is having high demand for its products and is not
able to meet the existing demand. Hence they do not take too much effort to promote their
products. However, to meet the competition and at the time of introduction of new products,
they conduct promotional activity which include

 Conducting exhibitions and Trade fair

 Providing free samples

 Conducting free medical camp

 Consumer contest etc.

 30

 Meetings, seminars & camps.

MARKETING RESEARCH

Research activities are conducted for the introduction of new products. Oushadhi conduct
research activities to develop medicines that can be used for new deseases. The steps
involved while conducting a research include

 Define the problem

 Develop the research plan

 Collect the information

 Analyze the information

 Present the findings

 Making the decision

Large scale research activities are conducted by the R & D Oushadhi. If any epidemics
happen to spread all over state, oushadhi through its research activities will come up with
medicines which can cure such diseases.

HUMAN RESOURCE DEPARTMENT.

Human Resources and Administration department is one, which facilitates smooth

working of the organization by looking into the human resource side and also the
overall administration of organization.

Organization hierarchy:
HR manager

Ass.HR
manager
 31

clerk

HR MISSION:

 To create HR policies and processes which are employee friendly

 To build a culture which is warm forthcoming and professional with a sense
of ownership & pride.
 To encourage innovative thinking.
 To encourage transparency & teamwork.
 To develop leaders at all levels with general management skills.
 To create a learning organization.
 To develop competencies & skills through training and development.
 To constantly raise levels of employee productivity.
 To work towards attaining & sustaining the best employer status

MAJOR FUNCTIONS:

a) Recruitment

b) Selection

c) Training

d) Industrial Relations

e) Welfare

f) Security and Safety

g) Other Administrative activities

h) Performance management

i) Enforcement of work culture.

The total human resource of the company:

Category Permanent Others Total

Executives 11 Nil 11
Doctors 7 5 12
Middle level executives 10 11 21
 32

Clerks & Other office staff 18 16 34

Drivers 9 4 13
Maintenance staff 6 13 19
Production supervisors 15 5 20
Security 5 12 17
Field Marketing Officer Nil 5 5
Hospital Workers Nil 8 8
Workers 34 373 407

Total 115 452 567

RECRUITMENT & SELECTION.

Employees in the organization are recruited after reviewing the vacancy. Employees are
selected by the Public Service Commission. Candidates who are eligible in the test are called
for interview and based on their performance they are selected. Some times vacancies may
arise in the organization and may need immediate placement, in such situation employees are
selected on temporary basics. Such employee’s recruitment is done through advertising the
vacancy. Recruitment and selection include two phases. The first phase includes vacancy
review, after finding out the vacant position, criteria for selection is formulated. Then such
vacancies are advertised in Medias. After this a selection panel is organized. The second
phase includes short listing the applicant who matches the requirement of the organization.
Then these applicants are interviewed by the panel members. After the completion of the
interview the candidates are evaluated. Based on their performance they are selected.

Recruitment and selection

Phase I Phase II

Vacancy review Short listing applicant

Formulation of selection Interview

criteria

Advertising vacancy Evaluation

 33

Selecting panel members Selection decision

DISCIPLINE.

Discipline is used to refer the act of imposing penalties for wrong behavior. If employees fail
to observe the rules, they are meted out punishment. Any employee violating the discipline in
the organization will be given punishment. Punishments are based on the depth of in
disciplinary actions committed by the employee.

If any employee commits a minor mistake he has to undergo small punishments which
include:

 Suspension,

 Charging penalties,

 Cutting down the benefits which are expected to receive in future.

 Demotion.

If the in disciplinary action of the employee can not be tolerated, they are given severe
punishments which include:

 Dismissal

 Restricting scope for promotion in carrier

 Cutting down salary of the employee.

 34

All these actions are taken by the M.D. If any employee notices any actions from their co-
workers side which are against the discipline of the company, they can report to the M.D
regarding such action. They need to report it to their superior in a written form. In
disciplinary actions include not doing the assigned job not respecting supervisors sleeping at
working hours , bribery, not warring uniforms while at work , put in false signatures, leave
without prior permissions , harassing others, using drugs in the organization etc.

Disciplinary rules of the organization include:

 Employees should present in the organization at the correct time.

 To ensure they are present at the correct time, punching system is followed.

 If any employee comes late for one hour he cannot join the work without the
permission of his supervisor.

 If the employee continues to come late for more than three days his one day leave for
that month will be cancelled.

 If employees absent themselves during the work hours after punching his attitude will
be considered as in disciplinary action.

 Employees are asked to carry their identity cards in order to enter to the organization.

 Any employee arrested or got imprisoned for any criminal offense for more than forty
eight hours; he will be suspended for the time for which he was in the custody. If he
proves to be innocent, he can rejoin salary will be provided.

GRIEVANCE HANDLING

Every employee has certain expectations which he thinks must be fulfill by the
organization he is working for. When the organization fail to do this he develops a feeling of
discontent. When the employee feels that something is unfair in the organization he is said to
have a grievance. If any employee feels such, he needs to report it to the immediate
supervisor. If he is not taking any action within one month or his actions are unsatisfactory,
the employee can report it to the next higher authority.

The grievance if any should be passed through the following channel

 35

Manager

Supervisor

Foreman
ke

W
or
rs

TRAINING AND DEVELOPMENT.

Training is the act of the increasing the knowledge and skills of an employee for
performing particular job. Training is provided for both managers and workers, as both
include fresh and experienced hands. In Oushadhi training is provided under the control of
HR department to cater the needs of employees. Both on the job and off- the job training are
provided to the employees. Employees are asked to participate in the training program
conducted by the outside trainers like

 Kerala Institute of Local Administration (KILA)

 Information Management Group (IMG)

 PF

 TMA

 National productivity council

 Institute of Charted Accountant of India. Etc.

 36

The general topics of training include building positive attitude; performance improvement
etc. To ensures versatility of workers job rotation and apprentice training are given to the
employees. The impact of training will be observed from the performance of the employees.

PERFORMANCE APPRAISAL OF EMPLOYEES.

Performance appraisal is done to evaluate how well an employee is performing his job in the
organization. Based on this compensation decisions, decision on promotion of employees,
need for training and development of employees are decided. Performance is appraised on
yearly basics and it will be graded as outstanding, good, satisfactory & unsatisfactory. The
appraisal is done by top management. The appraisal form is given to workers and are asked to
fill in the details which include name, job specification, target achieved by the employees,
their difficulty in achieving the target if any etc..

FINANCIAL AND NON FINANCIAL INCENTIVES

Oushadhi pharmaceuticals provide both financial and non financial benefits to the employees
in order to retain them and to provide a satisfied work environment.

Financial incentives include:

 Bonus,

 Extra wages for meritorious performance,

 Leave wages etc.

 Honorariums of Rs1000 are awarded to the employees who have extra ordinary
caliber to perform job efficiently and effectively.

The various non financial incentives include:

 Providing training facilities to the employees,

 Giving suitable promotions to employees.

 Employees are allowed to participate in managerial decision making,.

 Family get together and

 37

 holiday trips are conducted by the organization

WELFARE FACILITIES.

Welfare facilities are provided for better standard of living of the employees.

The intramural facilities include:

 rest shelters,

 uniform and protective clothing

 subsidized food

 medical reimbursement,

 Canteen etc.

The extramural facilities include:

 transportation facilities

 maternity benefits

 Social insurance etc.

COMPENSATION PLAN.

Salaries of the employees are paid as per payment of Wages Act 1936. Salaries to the
employees are paid at the end of every month. Special wages are paid to the employees for
special work. Personal salary is paid on account demotion given to the employees.
Employees who have extra ordinary caliber are paid with an honorarium of Rs 1000.

PRODUCTION DEPARTMENT.
 38

In every department production department plays a very important role. Likewise in oushadhi
pharmaceuticals also. The function of this department is to plan and control the production of
medicines. Production manager is the head of this department. Oushadhi pharmaceuticals
produce around 450 varieties of medicines. The functioning of this department has quality
because of the supervision of experienced doctors to supervise production. The production of
medicines is as per GMP norms. Strict quality control procedures are practiced to ensure
quality of raw materials and finished products. Modern dosage like ointment, tablets,
granules, and syrup are introduced.

The objective of this department is:

 Achieving high production efficiency

 Low costs

 Mass distribution

Production manager.

Deputy production
manager. Deputy production
manager

Assistant production

managers.

Trainee doctors.
 39

THE POWERS AND DUTIES OF PRODUCTION MANAGER

 Planning and implementation of production in the Factory on the basis of prefixed

targets.
 Ensure that necessary documents, registers and records in relation to production are
properly maintained.
 Ensure co-ordination between sections of production.
 Maintenance of general discipline in the factory.
 Deployment of workers suitably.
 Observation of product/process related statutory requirements etc.

PRODUCTION PROCESS

Production process starts with the purchase of raw material. Raw materials purchased are
stored in the raw material stores. These materials needed for production are collected from all
over India. They are purchased after testing the quality of material. The material which
matches the pre- determined specifications is purchased. Each doctors are provided with a
raw material come issue note. They will specify their requirements in the note. These raw
materials purchased are then transferred to pre processing unit. There these materials are
transferred into course powders for preparing medicines. These are then transferred into
processing units where the actual production takes place. These produced products are then
transferred to the quality control section and after checking the quality it is transferred into
prepared medicine stores. .

RECEIVING & PROCESSING ORDERS.

As Oushadhi is a Government undertaking, every year Government release fund in the

budget. Production is based on the basis of previous years demand. The ¾ th of the products
are sold to Government. There is a raw material come issue note provided to each department
and doctors. They will specify their requirements and based on this production is done.
Usually order is received as per the demand. Batch processing is done. The total order is
 40

divided into batches and. After production of each batch the quality is tested. Based on the
order received production is carried out accordingly.

Eg of production process of kashayam:

Raw materials

Disintegratio
n

Inprosess
Quality Evaporatin quality
check g pan. check.

Drug
boiler.

Quality
check
Adding
preservative
s.

certification

Packing.

INVENTORY MANAGEMENT.
The Inventory Management system and the Inventory Control Process provides information
to efficiently manage the flow of materials, effectively utilize people and equipment,
 41

coordinate internal activities, and communicate with customers. Inventory Management and
the activities of Inventory Control do not make decisions or manage operations; they provide
the information to Managers who make more accurate and timely decisions to manage their
operations. The basic building blocks for the Inventory Management system and Inventory
Control activities are:

1. Sales Forecasting or Demand Management

2. Sales and Operations Planning
3. Production Planning
4. Material Requirements Planning
5. Inventory Reduction

PRODUCTION PLANNING

Production planning is the process of producing a specification or chart of the manufacturing

operations to be performed by different departments over a particular time period. Production
scheduling takes account of factors such as the availability of plant and materials, customer
delivery requirements, and maintenance schedules. Production plan is prepared as per the
demand received. A batch manufacturing record is maintained by the department. The
materials required for each bottle of medicines, and also the quantity needed is specified.
Using this total quantity to be produced is calculated and production is done on the basics of
this information.

Steps in production planning:

1. Production planning

• Verify the annual production demand from marketing section

• Convert the annual production demand to batch wise report monthly, weekly, daily
• Reply to marketing section
• If the actual production plan is satisfactory to the marketing department, it is send to
purchase
• Production target & achievement details of each section.
2. Allocation of man power for each section
 42

• Absenteeism of man power in each section and allocation of reserved man power to
concerned section
3. Product creation
• Check infrastructure availability
• Develop raw material indent for a product
• Fill in the batch manufacturing record
• Record quality checking details
• Details of Daily packing (quantity packed, pending, reasons for delay in packing)
• Complete the BMR return to QC lab
4. Medicine transfers
• Prepare medicine transfer statement

MATERIAL REQUIREMENT PLANNING

Purchase department is responsible for bargaining, procuring, managing and storing the raw
material needed for the production. This department plays a vital role in carrying out the
process very smoothly. This department includes two sections. One is purchase and the other
is store.

Steps in purchases of raw materials.

Need recoginition.

Inviting tenders.

Determination of
price

Preparation of
purchase order

Acceptance of purchase
order
 43

Making Payment

Follow-up
Follow-up
Need recognition

First of all the needed items often brought to the attention to the purchase department through
the material cum issue note. The materials needed by all the departments will be specified in
the note.

Inviting tenders.

Purchases of the company are made through inviting tenders. The suppliers who could
provide high quality materials at lowest rate and prompt delivery would be selected. Usually
a credit period of 60 days is followed by the company.

Determination of price

The next function of this department is to secure the price for the items to be purchased. The
supplier providing the lowest price is selected.

Preparation of purchase order

In this phase the purchase department prepares the purchase orders and sends it to the
suppliers.

Acceptance of purchase order

After sending the order the vendor provides the acceptance receipt and is accepted by the
company and properly maintained.

Follow up

Follow up is also done to ensure the timely delivery of material.

Making payments

Final function is to check the invoice and approving it for making payment to the supplier. It
is only provided to those who provide the invoice properly and also maintains the register of
various invoices. Through the purchase department the company purchases all the materials
which have affordable price. Whenever the material reaches the company it checks the
quality of raw materials.
 44

STORES DEPARTMENT

Store section is also comes under the purchase department. The major function of this
department is to store both raw material and finished products. Also it will issue the raw
materials to the production department.

OBJECTIVES

 To give information regarding the availability of spares, chemicals etc.

 To provide all materials for different departments
 Keeping of materials with proper indication
 Proper information relating to stock levels of different materials.

FUNCTIONS OF STORE DEPARTMENT

First of all the section receives raw materials through purchase department and stores here.
According to the transfer note, which is send by the purchase section to the store section
receives the raw material. Another function is to check the quality of the raw materials
received. Only which are passed after checking the quality are transferred to the production
department for producing various mats. Some of the finished products are also stored in this
section.

LIST OF MAJOR RAW MATERIALS.

Other than medicinal plants. Medicinal plants based.

Gingelly oil. Chukku
Cow ghee Cheenathipally
 45

Coconut oil. Amukkuram

Jagerry Kurumthottiveru
Cow milk. Kurumulaku
Honey. Klakkaya
Castor oil. Kachoori
Sugar. Raktha chandanam
Camphor. Kadukkathodu
Sugar candy. Athividayam.
.

WASTAGE MANAGEMENT.

Oushadhi aims to produce maximum output with minimum waste. To reduce wastage of
resources production is done with great care under the strict supervision of doctors,
supervisors and foremens. They check for the quality of the production, and ensure reduction
in wastage of materials. Still there will be waste products left after the production of
medicines. Oushadhi Pharmaceuticals Corporation, Kuttanalloor, produces about one tone of
wastes daily in the process of manufacturing more than 400 formulations like asavarishtam,
kalkam, himam, lehyam and the like. The wastes thus produced are managed effectively by
the corporation. The waste obtained from the production of choornams recycled using a
hydraulic presser, which when pressed will extract oil present in the wastes which can be
used for further production. The other waste products are collected in a container and are sold
to outside agencies on contract basics. which are used for manufacturing fertilizers.

QUALITY CONTROL & R&D WING.

Oushadhi has well equipped quality control laboratory that monitors every step of production,
right from procurement of raw materials to packing and storing. To ensure quality raw
materials, Oushadhi has set up a herbarium where rare medicinal plants are nurtured. It has
also set up an R & D wing for increasing the efficiency of medicines and manufacturing
market friendly products, all under direct supervision of eminent physicians.

This department aims to be a committed towards giving total satisfaction to their customers
through the manufacture and making of Ayurvedic drugs and formulations at affordable price
while complying with all satisfactory requirement. They strive to be effective continually
improving their process. This is achieved by taking appropriate involvement of all the
 46

members in the organization. The quality control and R&D wing are functioning effectively
to ensure high quality products.

STAGES OF QUALITY CONTROL ACTIVITY

1. Receipt of request for quality checking along with sample
2. Entries of items into common register date wise
3. Testing methods for each Organoleptic Physico chemical characteristics
4. Posting the values in corresponding records.
5. Verification with standards.
6. Furnishing quality certificate.
7. Certificate issue to the concerned section.
8. Packed sample collection and sample checking

RESEARCH AND DEVELOPMENT ACTIVITIES:

The main function of the department include
 Product innovation
 Process innovation
 Stage wise quality examination
 Research on substitute raw material drug & product.
 Training programs for Ayurveda MD, B.pharm, BAMS, and biotechnology students
 Product Development and related works like experimental and clinical trials.
 Innovation practices in processes and products to present ancient pharmaceutical
forms in user friendly mode.

 Preparation and implementation of various projects for standardization, Shelf life

studies, Prototype development, and Process trouble shoot etc.
 Preparation and implementation of various projects from other disciplines like
Biotechnology, Biochemistry, Microbiology, Applied Chemistry, Modern Pharmacy
etc. based on the formulations, processes and clinical practices laid down in
Ayurveda.
 Preparation of database for raw materials, process, and formulations.
 47

RECORD KEEPING.

The company maintains a prompt record of all the process done inside the organization. This
helps to know about the consumed materials and products produced daily and by maintaining
record wastage can be reduced to a great extend.

1. BMR Records
2. In-process Register
3. Milk Register
4. Lab equipment calibration records
5. Batch wise medicine reports
6. Section wise quality control parameters with QC number against work order
7. Finished goods daily register
8. Raw material daily register
9. Raw material analysis registers
10. Finished goods Analysis Register
 48

CHAPTER – 4

FINDINGS
SUGGESTIONS, CONCLUSION
AND

BIBLIOGRAPHY
 49

SWOT ANALYSIS OF OUSHADHI.

STRENGTH

 Established brand image.

 Continuous government support.
 Huge market demand.
 Dedicated work force.

WEAKNESS
 Lack of good marketing technique.
 No sales promotion activities.
 Too much government control.

OPPORTUNITIES
 More patent product introduction through R&D
 Lot of potential market.
 Tradition and goodwill.
 Increasing popularity of ayurveda.

THREATS
 Tough competition
 Lack of credit policy
 Scarcity of herbs &plants
 Maintaining quality with modernization.
 50

FINDINGS

 Oushadhi is the largest producer of Ayurveda medicines in public sector in India.

 Sole supplier of medicines to government Ayurveda hospitals and dispensaries in

Kerala.

 Oushadhi is a real example of efficient management. All its managerial functions are
carried out in a systematic way.

 Oushadhi is having an efficient marketing system which creates and retain the
goodwill of the company.

 Oushadhi provide high quality medicines through its well equipped quality control
lab.
 51

SUGGESTIONS

 Try to open more agencies through out the country and abroad.

 Advertisement and sales promotion in order to face competition.

 Cultivate as much medicinal herbs as possible.

 Conduct awareness programs to promote the cultivation of medicinal herbs in the

surrounding areas.
 52

CONCLUSION

The organizational study at OUSHADHI helped me to understand the various functions of an

organization. It helped me to understand the functioning of different departments and how
they are coordinated and managed to achieve a common goal. It helped me to understand how
the management principles are set in to practice. The study has helped me to cooperate with
challenges like difficulty in getting data, communication, base information, processing of raw
data and time. The new product development, entrance into the field of social responsibility,
exploring new markets and providing more customer satisfaction etc are the future prospectus
of the company.
 53

BIBLIOGRAPHY.
1. Company journals

2. V S P Rao. Human resource management.

3. Philip kotler. Marketing management.

4. P M Srivastha. Financial management.

5. p.saravanavel Production management

6. www.oushadhi.org.