Sun Pharmaceutical Industries Ltd.

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by: Madhur Kathuria

Roll No.: 14290301721

Institute of Innovation in Technology& Management,

New Delhi– 110058
Batch (2021-2024)

1
 Certificate

I, Mr. Madhur Kathuria__, Roll No. 14290301729_ certify that the Project Report (BBA-

114) entitled “A Project Report On Marketing Strategies And Financial Statement

Analysis Of Sun Pharma_” is done by me and it is an authentic work carried out by me at

Institute Of Innovation In Technology and Management The matter embodied in this

project work has not been submitted earlier for the award of any degree or diploma to the

best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report (BBA-311) entitled “__________________”

done by Mr. Madhur Kathuria , Roll No. 14290301729 , is

completed under my guidance.

Signature of the Guide

Name of the Guide:
Designation:
Date:

Countersigned
(Director/Project Coordinator)

2
FORMAT FOR CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS

S No Topic Page No
1 Certificate (s) -
2 Chapter-1: Company Profile -
3 Chapter-2: Marketing Strategies of The Company
4 Chapter-3: Financial Ratios
5 Chapter-4: CSR initiatives and Unique Practices
6 Chapter-5: Conclusion and Suggestions
7 References -
8 Appendices -

3
 CHAPTER 1
About Us
Sun Pharmaceutical Industries Ltd. (Sun Pharma) is the fourth largest specialty generic
pharmaceutical company in the world with global revenues of over US$ 4.5 billion. Supported
by more than 40 manufacturing facilities, we provide high-quality, affordable medicines, trusted
by healthcare professionals and patients, to more than 100 countries across the globe.

Diversified Specialty and Generics Portfolio

We manufacture and market a large basket of pharmaceutical formulations covering a broad

spectrum of chronic and acute therapies. It includes generics, branded generics, specialty,
complex or difficult to make technology-intensive products, over-the-counter (OTC),
antiretrovirals (ARVs), Active Pharmaceutical Ingredients (APIs) and Intermediates. Our broad
portfolio of more than 2000 high quality molecules covers multiple dosage forms, including
tablets, capsules, injectables, inhalers, ointments, creams, and liquids.
Every year, we sell over 30 billion doses covering neuro-psychiatry, cardiology,
gastroenterology, anti-infectives, diabetology, oncology, ophthalmology, dermatology, urology,
nephrology and respiratory among others.

Driven by Innovation

The first among Indian pharmaceutical companies to realise and embrace the importance of
investing in research, we invest up to 7-8% of our global revenues into Research and
Development (R&D) every year.
Our core strength lies in our ability to excel in developing generics and technologically complex
products backed by our dedicated teams in formulations, process chemistry, and analytical
development.
Our capabilities extend beyond the development of differentiated products, including liposomal
products, inhalers, lyophilized injections, nasal sprays, and controlled release dosage forms.

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Our R&D is led by a strong team of more than 2000 scientists.

Global Footprint
From humble beginnings in 1983, Sun Pharma has grown to become one of the largest generic
pharmaceutical companies worldwide. We are the largest pharmaceutical company in India.
In the US, we are among the top 10 generic pharmaceutical companies and are ranked second by
prescriptions in the generic dermatology market.
We are the largest Indian company in emerging markets with a presence in over 80 markets.
Brazil, Mexico, Russia, Romania and South Africa are some of our key emerging markets.
We are present across all major markets in Western Europe, Canada, Australia, New Zealand,
Japan and China among others.
Our presence in emerging markets and the developing world enables our teams to cross-sell and
build brands with ease.

Our Vision
Reaching People And Touching Lives Globally As A Leading Provider Of Valued Medicines

Sunology
Sunology, a combination of Sun and Ideology is the way of life at Sun Pharma.

Humility
 Under promise and over deliver
 Let your work speak for you
 Always put ‘we’ before ‘me’
 Learn from mistakes

Integrity
 Do the right thing with conviction and without fear
 Practice honesty, impartiality and fairness at all times
 Adhere to strong ethical and moral standards

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  Have courage to call out what is not right

Passion
 Infuse energy in everything that you do
 Walk that extra mile
 Inspire others
 Do your best in every situation

Innovation
 Strive to implement new ideas & technologies to meet unmet needs
 Encourage others to think out-of-the-box
 Do not limit yourself
 Believe in raising the bar every time

Our Values
Our values represent our promise to our stakeholders.

Quality
 Get it right the first time
Reliability
 Maintain efficiency & discipline in all processes & systems and fulfil the promises made
to stakeholders
Trust
 Be transparent in dealings
Consistency
 Endeavour to bring new products to the market & consistently deliver value to
stakeholders
Innovation
 Implement new ideas & technologies to meet unmet needs and think ahead of times

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 Our Code of Conduct

Our Global Code of Conduct governs every aspect of our operations. Sun Pharma is a family of
thousands of people, working across many countries, speaking multiple languages, and all
united, with one common purpose: to make good health accessible and affordable to local
communities and society at large. Through active fieldwork, dedicated research teams, and in
recognition of the efforts who work behind the scenes to combat illness and disease, the Sun
Pharmaceutical Group helps as many people as possible, to secure their right to good health. The
way we work every day is important to us.

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 Milestones
From humble beginnings in 1983, Sun Pharma has grown to become one of the largest generic
pharmaceutical companies worldwide. Take a look at the milestones and recognitions in our
journey.

2021
We launched ILUMYA™ (tildrakizumab injection), a treatment for adults living with moderate-
to-severe plaque psoriasis in Canada
We launched a speciality dermatology product, WINLEVI® (clascoterone) cream 1% in the U.S.
for topical treatment of Acne Vulgaris
We forayed into the nutrition bar segment in India with the launch of Revital NXT, India’s first
nutrition bar with the goodness of natural ginseng, 16 vitamins & minerals and triple blend
protein

2020
We complete 25 years of making our debut on the Indian Stock Exchanges
We launched ILUMYA™ for treatment of plaque psoriasis in Japan

2019
We acquired Pola Pharma in Japan to strengthen our global dermatology presence
We launched our specialty product, Cequa in the United States for the treatment of dry eyes
We entered Greater China market through partnership with China Medical System Holdings

2018
We launched specialty product, ILUMYA™ (tildrakizumab-asmn) in the United States for
treatment of moderate-to-severe plaque psoriasis

2017
We launched specialty product, Odomzo in USA

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2016
We acquired 14 brands from Novartis in Japan
We acquired Ocular Technologies, Sarl to strengthen our branded ophthalmic portfolio
We acquired Biosintez to enhance our presence in Russian market

2015
We acquired GSK’s Opiates business in Australia
We acquired InSite Vision Inc. to strengthen our branded ophthalmic portfolio in USA

2014
We acquired Ranbaxy in a US$ 4 billion landmark transaction to create the world’s 5th largest
specialty generic pharmaceutical company
Sun Pharma and Merck & Co. Inc. entered into licensing agreement for Tildrakizumab (MK-
3222)
We acquired Pharmalucence in USA

2012
We acquired Dusa Pharmaceuticals and the generic business of URL Pharmaceuticals in USA

2010
We acquired controlling stake in Israel-based Taro Pharmaceuticals, headquartered in USA to
effectively double company’s US business

2008
We acquired Chattem Chemicals Inc, USA

2007
We demerged Sun Pharma Advanced Research Company (SPARC) into a separate entity

2005
We completed buyout of manufacturing unit in Bryan, Ohio, USA
We acquired ICN’s business in Hungary from Valeant Pharma
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2004
We set up a new formulation unit in Jammu, India
We commissioned the first joint venture manufacturing unit in Dhaka, Bangladesh
We acquired Phlox Pharma (India) and niche brands from Women’s First Healthcare (USA)

2001
We commenced production at our new formulations unit in Dadra, India

2000
We acquired Pradeep Drug Company in India

1999
We acquired Milmet Labs, Cephalexin and 7ADCA actives manufacturing site in India

1998
We began operations at a new formulation unit in Silvassa, Gujarat, India

1997
We purchased equity stakes in TDPL and MJ Pharma
We had our first international acquisition – Caraco Pharmaceutical Laboratories, USA
(completed 100% acquisition in 2010)
We established new research facility in Mumbai, India

1996
We expanded our sales network across 24 countries
We acquired API plant from Knoll Pharma at Ahmednagar, Maharashtra, India

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1995
We began production at API manufacturing plant in Panoli, Gujarat, India

1994
We launched Initial Public Offering (IPO)

1991
We established our first research center to create a base for strong product and process
development

1988
We launched Monotrate and Angize, our first cardiology products

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Management
Name Designation

Aalok Shanghvi Senior Vice President

Abhay Gandhi CEO - North America

Anilkumar Jain CEO - API Business

Azadar H Khan Senior Vice President

C S Muralidharan Chief Financial Officer

Davinder Singh Senior Vice President

Dilip S Shanghvi Managing Director

Gautam Doshi Ind. Non-Executive Director

Hellen de Kloet Business Head

Israel Makov Chairman

Jila Breeze Senior Vice President & Global Head

Kalyanasundaram Subramanian Whole Time Director

Kirti Ganorkar CEO - India Business

Pawan Goenka Independent Director

Pradeep Sanghvi Executive Vice President

Rama Bijapurkar Independent Director

Rekha Sethi Ind. Non-Executive Director

Sailesh T Desai Whole Time Director

Sapna Purohit Senior Vice President & Head - HR

Sreenivas Rao Senior Vice President & Head

Sudhir V Valia Non Exe.Non Ind.Director

Sunil R Ajmera Company Secretary

Vivek Chaand Sehgal Ind. Non-Executive Director

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 Board of Directors
.

1. ISRAEL MAKOV
Non-Executive Chairman - Mr. Makov is the former President & CEO of Teva
Pharmaceutical Industries Ltd (2002-2007). He led the company’s global expansion and
under his leadership Teva became the undisputed global leader in the generic
pharmaceutical industry and a global leader in the treatment of Multiple sclerosis.

2. DILIP SHANGHVI
Managing Director - Dilip Shanghvi is the founder of Sun Pharmaceutical Industries Ltd.
and has extensive industrial experience in the pharmaceutical industry. A first generation
entrepreneur, Mr. Shanghvi has won numerous awards and recognitions, including
Forbes’s Entrepreneur of the Year Award (2014), Economic Times’ Business Leader of
the Year (2014), CNN IBN’s Indian of the Year (Business) (2011), Business India’s
Businessman of the Year (2011) and Ernst and Young’s World Entrepreneur of the Year
(2011).

3. SAILESH DESAI
Executive Director - Sailesh T. Desai has more than 28 years of industrial experience, 18
of which have been in the pharmaceutical industry. Mr. Desai has extensive and
comprehensive corporate affairs experience, being involved in the turnaround at Milmet
prior to Sun Pharma’s acquisition, as well as in the early stages of the company’s growth.
He holds a BSc degree from the University of Calcutta.

4. KALYANASUNDARAM SUBRAMANIAN
Executive Director - Kalyanasundaram Subramanian (‘Kal’), (born in February, 1954)
joined Sun Pharmaceutical Industries Limited (‘Sun’) in January 2010 after 22 years with
GSK. Kal is a Chemistry graduate and a Chartered Accountant from India with 37 years
of experience. He has more than three decades of experience in the pharmaceutical

13
 industry. Mr. Kal’s career in the pharma industry began when he joined Burroughs
Wellcome, in New Zealand as Commercial Advisor in 1988.

5. SUDHIR VALIA
Non-Independent
Non-Executive Director - Sudhir V. Valia is a Member of the Institute of Chartered
Accountants of India, and carries more than three decades of experience in taxation and
finance. He has been a director of Sun Pharma since the inception of the company, and is
also on the board of Taro Pharmaceuticals Ltd. Prior to May 29, 2019 Mr. Sudhir V.
Valia was Whole-time Director of the Company. He is now a Non-Independent and Non-
Executive Director of the Company with effect from May 29, 2019.

6. GAUTAM DOSHI
Independent Director - Gautam Doshi, a Chartered Accountant with a Masters degree in
Commerce, has been in professional practice for over 40 years. He advises various
industrial groups & families and also serves as director on the boards of public listed and
unlisted companies.

7. DR. PAWAN GOENKA

Independent Director - Dr. Pawan Goenka earned his B. Tech. in Mechanical
Engineering from IIT, Kanpur and Ph.D. from Cornell University, U.S.A. He is also a
Graduate of Advanced Management Program from Harvard Business School. He worked
at General Motors R&D Centre in Detroit, U.S.A. from 1979 to 1993.

8. RAMA BIJAPURKAR
Independent Director - Rama Bijapurkar is a recognised thought leader on business-
market strategy and India’s consumer economy. She has an independent management
consulting practice, works across sectors, and describes her domain as bringing market
focus to business strategy. She is a Professor of Management Practice at Indian Institute
of Management, Ahmedabad, and co-founder of People Research on India’s Consumer

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Economy, a not-for-profit think tank and fact tank, on India’s economy and citizen
environment for use in business strategy and public policy.

15
 Products

We produce a comprehensive, diverse and highly complementary portfolio of generic and

specialty medicines targeting a wide spectrum of chronic and acute treatments. Our product
portfolio includes generics, branded generics, speciality, difficult-to-make technology intensive
products, over-the-counter (OTC), anti-retrovirals (ARVs), Active Pharmaceutical Ingredients
(APIs) and intermediates. Our presence in more than 100 countries helps us in being responsive
to local treatment needs while continually improving our global product offering.

Speciality Medications
Sun Pharma has built a portfolio of patent protected speciality medicines for global markets.
Over the years, we have nurtured this evolving business through increased focus and
investments. The key segments we are targeting are dermatology, ophthalmology and oncology.
Our focus is on improving patient outcomes either by addressing unmet medical needs or by
enhancing patient convenience through differentiated dosage forms. Our initiatives in this
segment cover the entire value chain, from in-licensing early-to-late stage clinical candidates, as
well as getting access to on-market patented products. Today, we are among the leading branded
companies in the US with several speciality products launched in the country.

Generic Medications
We provide high quality generic and branded medicines at affordable costs to patients and
doctors in more than 100 countries worldwide. Our products have the hallmark of technology-
based differentiation and cover the full range of dosage forms, including tablets, capsules,
injectables, inhalers, ointments, creams and liquids. The therapeutic segments covered by our
portfolio of over 2000 molecules include psychiatry, anti-infectives, neurology, cardiology,
orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology,
gynaecology, respiratory, oncology, dental and nutritionals. In several countries, Sun Pharma
ranks among the leading companies in these therapy areas.

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Over-the-Counter Medications
We provide a range of over-the-counter (OTC) / consumer healthcare products. Faringosept (sore
throat), Revital (vitamins) and Volini (topical analgesics) are a few of our flagship OTC brands
that are marketed in several countries globally. There are other category defining brands such as
Coldact & Flustat (cold & flu), Brustan, Painamol & Paduden (analgesics), Aspenter,
Aspacardin, Nudrate & Fortifikat (lifestyle OTCs), Gestid (digestives) and Chericof (cough).

Active Pharmaceutical Ingredients

We began producing Active Pharmaceutical Ingredients (APIs) in 1995 as a vital input in the
manufacture of complex formulations to facilitate vertical integration. Today, our list of APIs
exceeds 300 which is used in house as well as marketed to customers in over 60 countries. We
manufacture APIs in 14 manufacturing facilities located in India, Hungary, US, Israel and
Australia. Our product list includes generics and complex APIs that require isolated
manufacturing areas like anti-cancers, peptides, steroids, sex hormones and controlled
substances, including poppy-derived opiate raw materials that are primarily used in the
manufacture of analgesics, sold as both Narcotic Raw Materials (NRM) and APIs. We offer bulk
actives, intermediates and services for custom synthesis.

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 CHAPTER 2 - MARKET SHARE

 MARKET SHARE OF COMPANY

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PROS

 Company has reduced debt.

 Company is almost debt free.
 Company has been maintaining a healthy dividend payout of 37.40%
CONS

 Stock is trading at 4.28 times its book value

 The company has delivered a poor sales growth of 3.29% over past five years.
 Company has a low return on equity of 8.01% for last 3 years.

 MARKET SHARE VIS. MAJOR COMPETITORS

COMPETITOR PROFILES

 LUPIN
 Founded in 1968 and headquartered in Mumbai, Lupin is a transnational
pharmaceutical company ranked 3rd largest(by revenue) in India that produce wide
range of generic formulations, biotechnology products, APIs.

 Lupin showed a growth of 40% in profits in the year 2014 as compared to profits
of Rs 13141.6 million in 2013

 It has recently announced acquiring 100% stake in Medquímica, a Brazilian

pharmaceutical, which marks its foray into the Brazilian markets and had also
acquired Laboratories Grin in Mexico last year

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 REDDY’S LABS
 It is a Hyderabad based multinational pharmaceutical company that
providesmedicines and services in Europe, North America and emerging markets
of South America, Asia and Africa

 Generic formulations being their biggest business, they also offer APIs,
pharmaceutical services, biosimilars and proprietary products

 It has recently launched Somazina in India, used for treatment of stroke or

cerebral infarction

 CIPLA

 Incorporated in 1935, Cipla has over 1500 products in various therapeutic

categories and presence in over 150 countries. It is the largest manufacturer of
antiretroviral drugs in the world and had launched World’s first oral iron chaletor
in 1994.

 In 2014, its revenue increased by about 22% but witnessed a drop in profits by
10% as compared to the previous year.

 AUROBINDO PHARMA

 Founded in 1986, AurobindoPharma has its presence in therapeutic segments like

anti-retrovirals, neurosciences, anti-diabetes, cardiovascular, gastroenterology,
etc. It exports its products to over 125 countries and generates around 70%
revenue from International operations.

 In 2014, its consolidated revenue increased by 38.3% and made a profit of

Rs.11729 million showing a growth of about 300% over the previous year.

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21
 SWOT ANALYSIS

Strengths of Sun Pharma

Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain
competitive advantage in the marketplace

- Diverse Revenue models - Over the years Sun Pharma has ventured into various businesses
outside the Healthcare sector. This has enabled the company do develop a diversified revenue
stream beyond Healthcare sector and Biotechnology & Drugs segment.

- High margins compare to Biotechnology & Drugs industry's competitors - Even though Sun
Pharma is facing downward pressure on profitability, compare to competitors it is still racking in
higher profit margins.

- Strong brand recognition - Sun Pharma products have strong brand recognition in the
Biotechnology & Drugs industry. This has enabled the company to charge a premium compare to
its competitors in Biotechnology & Drugs industry.

- Wide geographic presence - Sun Pharma has extensive dealer network and associates network
that not only help in delivering efficient services to the customers but also help in managing
competitive challenges in Biotechnology & Drugs industry.

- Talent management at Sun Pharma and skill development of the employees - Human
resources are integral to the success of Sun Pharma in Biotechnology & Drugs industry.

- Brands catering to different customers segments within Biotechnology & Drugs segment -
Sun Pharma extensive product offerings have helped the company to penetrate different
customer segments in Biotechnology & Drugs segment. It has also helped the organization to
diversify revenue streams.

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Weaknesses of Sun Pharma

Weaknesses of Sun Pharma can either be absence of strengths or resources of capabilities that
are required but at present the organization doesn't have. Leaders have to be certain if the
weakness is present because of lack of strategic planning or as a result of strategic choice.

- Low investments into Sun Pharma's customer oriented services - This can lead to
competitors gaining advantage in near future. Sun Pharma needs to increase investment into
research and development especially in customer services oriented applications.

- High turnover of employees at the lower levels is also a concern for the Sun Pharma . It can
lead to higher salaries to maintain the talent within the firm.

- Extra cost of building new supply chain and logistics network - Internet and Artificial
Intelligence has significantly altered the business model in the Healthcare industry and given the
decreasing significance of the dealer network Sun Pharma has to build a new robust supply chain
network. That can be extremely expensive.

- Declining per unit revenue for Sun Pharma - competitiveness in the Biotechnology & Drugs
industry is putting downward pressure on the profitability. A starting guide to manage this
situation for companyname is – objectively assessing the present value propositions of the
various products.

- Niche markets and local monopolies that companies such as Sun Pharma able to exploit are
fast disappearing. The customer network that Sun Pharma has promoted is proving less and less
effective.

- Loyalty among suppliers is low - Given the history of Sun Pharma coming up with new
innovations to drive down prices in the supply chain.

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Opportunities for Sun Pharma

Opportunities are potential areas where the firm chan identify potential for - growth, profits, and
market share.

- Increasing government regulations are making it difficult for un-organized players to operate
in the Biotechnology & Drugs industry. This can provide Sun Pharma an opportunity to increase
the customer base.

- Accelerated technological innovations and advances are improving industrial productivity,

allowing suppliers to manufacture vast array of products and services. This can help Sun Pharma
to significantly venture into adjacent products.

- Customer preferences are fast changing - Driven by rising disposable incomes, easy access
to information, and fast adoption of technological products, customers today are more willing to
experiment / try new products in the market. Sun Pharma has to carefully monitor not only wider
trends within the Biotechnology & Drugs industry but also in the wider Healthcare sector.

- Opportunities in Online Space - Increasing adoption of online services by customers will also
enable Sun Pharma to provide new offerings to the customers in Biotechnology & Drugs
industry.

- Lower inflation rate - The low inflation rate bring more stability in the market, enable credit at
lower interest rate to the customers of Sun Pharma. This will increase the consumption of Sun
Pharma products.

- Increasing customer base in lower segments - As customers have to migrate from un-
organized operators in the Healthcare industry to licensed players. It will provide Sun Pharma an
opportunity to penetrate entry level market with a no-frill offering.

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Theats to Sun Pharma

Threats are factors that can be potential dangers to the firm's business models because of changes
in macro economic factors and changing consumer perceptions. Threats can be managed but not
controlled.

- Saturation in urban market and stagnation in the rural markets - For Sun Pharma this
trend is an ongoing challenge in the Biotechnology & Drugs segment. One of the reasons is that
the adoption of products is slow in rural market. Secondly it is more costly for Sun Pharma to
serve the rural customers than urban customers given the vast distances and lack of
infrastructure.

- Shortage of skilled human resources - Given the high turnover of employees and increasing
dependence on innovative solution, companyname can face skilled human resources challenges
in the near future.

- Distrust of institutions and increasing threat of legal actions for Sun Pharma - As the WTO
regulations and laws are difficult to enforce in various markets. Legal procedures have become
expensive and long drawn process. It can lead to less investment into emerging markets by Sun
Pharma thus resulting in slower growth.

- Competitive pressures - As the new product launch cycles are reducing in the Healthcare
industry. It has put additional competitive pressures on players such as Sun Pharma. Given the
large customer base, Sun Pharma can't respond quickly to the needs of the niche markets that
disruptors are focusing on.

- Changing political environment with US and China trade war, Brexit impacting European
Union, and overall instability in the middle east can impact Sun Pharma business both in local
market and in international market.

- Commoditization of the product segment - The biggest challenge for Sun Pharma and other
players in the industry is the increasing commoditization of the products in Healthcare industry.

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 Sun Pharmaceuticals Marketing Strategy & Marketing Mix (4Ps)

Marketing Strategy of Sun Pharmaceuticals analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing
strategies like product innovation, pricing approach, promotion planning etc. These business
strategies, based on Sun Pharmaceuticals marketing mix, help the brand succeed.

Sun Pharmaceuticals marketing strategy helps the brand/company to position itself competitively
in the market and achieve its business goals & objectives.

Let us start the Sun Pharmaceuticals Marketing Strategy & Mix to understand its product,
pricing, advertising & distribution strategies:

Sun Pharmaceuticals Product Strategy:

The product strategy and mix in Sun Pharmaceuticals marketing strategy can be explained as
follows:

Sun Pharma is a leading manufacturer of both pharmaceuticals and active pharmaceutical

ingredients (API). Sun Pharma has been catering to various therapeutic sectors inclusive of
neurology, diabetology, psychiatry, cardiology, respiratory etc. All these product offerings come
under its marketing mix. It has always believed on innovating products and coming up with new
medicines with major focus on the growing chronic therapies. Sun Pharma has a Patent on a
medicine for curing skin lesions. It is gradually shifting towards generic medicines along with
patent expiries and the volume driven growth in the pharma market. It provides both Ayurvedic
and Allopatic medicines in the form of syrups, tablets, capsules etc. Some of Sun Pharma’s
famous brands include:

• Pantocid

• Glucored

• Susten

• Aztor

• Repace etc

26
Sun Pharmaceuticals Price/Pricing Strategy:

Below is the pricing strategy in Sun Pharmaceuticals marketing strategy:

Sun Pharma has always try to maintain a reasonable pricing strategy to meet he needs of the
local people.

It tries to optimise the operational cost thus help in maintain affordable prices. The pricing
policies followed by Sun Pharma is on par with the major competitors in its marketing mix. The
consumers are now becoming highly price sensitive. This is a threat to the company. Sun Pharma
produces generic medicines at a very low cost thus giving it a competitive advantage. With their
diversified product line they have been able to meet both high end and low end products. Also
owning a lot of patents under their name has helped them earn a lot of profits. The Sun Pharma
company has succeeded in differentiating itself as cost leadership.

Sun Pharmaceuticals Place & Distribution Strategy:

Following is the distribution strategy in the Sun Pharmaceuticals marketing mix:

Sun pharma is one of the leading pharmaceutical industries spreading its business worldwide. It
has around 19 manufacturing plants in almost 6 continents. Recently it has set up manufacturing
facilities in Mexico, Bangladesh and Brazil. Sun pharma has been spending a lot in its R&D
projects and tus leading to various successful endeavours. Sun Pharma has its headquarters in
Mumbai, Maharashtra. The plants are located in India, Canada, Egypt, Hungary, Mexico, Us,
Brazil, Romania, Ireland, Morocco, Nigeria, South Africa etc. Sun Pharma has been successfully
serving patients in around 150 nations across the globe.

27
Sun Pharmaceuticals Promotion & Advertising Strategy:

The promotional and advertising strategy in the Sun Pharmaceuticals marketing strategy is as
follows:

Sun Pharma follows a very strong promotional and marketing activity in its marketing mix and
focusses on reaching the customers everywhere. Their Tagline depicts the intentions of the
company and attracts the people. They carry out various television ads ad also spreads awareness
through print medias. The Sun Pharma company stresses on niche segment like psychiatry and
lifestyle meds etc helping it to grow fourfold to have a revenue. Sun Pharma have also earned
awareness through various sponsoring programmes and hoardings etc. they also come up with
attractive offers and schemes on meeting the described sales to its agents and distributors. This
completes an insight into Sun Pharma marketing mix.

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 CHAPTER 3
FIANANCIAL RATIOS

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GROSS PROFIT RATIO

Gross Profit Margin Ratio, sometimes also referred to as gross margin, is a type of profitability
ratio. It helps to measure how much profit a company makes from the sale of goods and services
after deducting the direct costs. In simple words, it is a simple metric to measure the company’s
profitability. Also, it helps to evaluate how efficiently the company is using its labour and raw
materials during the production process.

GROSS PROFIT RATIO FOURMULA - Gross Profit Margin = (Net Sales – Cost of Goods
Sold)/ Net Sales

Where

Net Sales – is deducting any sales returns, discounts or allowances from the total sales. Net sales
give more accurate information than total sales.

Cost of Goods Sold (COGS) – is the direct costs during the production process like the direct
materials and direct labour. These costs may vary depending on the company and industry. Also,
indirect costs and other fixed costs like administrative expenses, marketing expenses are not a
part of in the COGS.

GROSS PROFIT RATIO = GROSS PROFIT/REVENUE FROM OPERATION*100

2020: - 7340/11906*100 = 61.64%

2021: - 7776 /12570*100 = 61.86%

INTERPRETATION: The company aims to generate a higher gross profit margin. A higher
ratio indicates that the company is producing more efficiently. In simple words, it indicates
that the company has efficient management, low-cost production, and increased sales price. Sun
Pharma`s Gross Profit has increased by 0.22% in 2021 as compared to 2020.

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OPERATING RATIO
The operating ratio shows the efficiency of a company's management by comparing the total
operating expense (OPEX) of a company to net sales. The operating ratio shows how efficient a
company's management is at keeping costs low while generating revenue or sales. The smaller
the ratio, the more efficient the company is at generating revenue vs. total expenses.

OPERATING RATIO = COST OF REVENUE FROM OPERATIONS + OPERATING

EXPENSES /REVENUE FROM OPERATIONS*100

2020: - 14465/11906*100 = 121.49%

2021: - 16076/12570*100 = 127.89%

INTERPRETATION: The operating ratio shows the efficiency of a company's management by

comparing the total operating expense of a company to net sales. An operating ratio that is
decreasing is viewed as a positive sign, as it indicates that operating expenses are becoming
an increasingly smaller percentage of net sales. Sun Pharma`s operating ratio increased by 6%
in 2021 than in 2020.It is indicating decline in efficiency.

OPERATING PROFIT RATIO

The operating margin measures how much profit a company makes on a dollar of sales after
paying for variable costs of production, such as wages and raw materials, but before paying
interest or tax. It is calculated by dividing a company’s operating income by its net sales.
Higher ratios are generally better, illustrating the company is efficient in its operations and is
good at turning sales into profits.

OPERATING PROFIT RATIO = OPERATING PROFIT/REVENUE FROM

OPERATIOS*100

2020: - 5301/11906*100 = 44.52%

2021: - 4652/12570*100 = 37.00%

INTERPRETATION: The objective of computing the ratio is to determine operational

efficiency of business. An increase in the ratio over the previous period shows improvement in
the operational efficiency of the business enterprise and vice-versa. Sun Pharma`s operating
profit ratio declined by 7.52% in 2021 than in 2020.Therefore operational efficiency is declined.

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NET PROFIT RATIO

The net profit margin, or simply net margin, measures how much net income or profit is
generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or
business segment. Net profit margin is typically expressed as a percentage but can also be
represented in decimal form. The net profit margin illustrates how much of each dollar in
revenue collected by a company translates into profit.

NET PROFIT RATIO = NET PROFIT AFTER TAX/REVENUE FROM

OPERATION*100

2020: - 3211/11906*100 = 26.96%

2021: - 2139/12370*100 = 17.01%

INTERPRETATION: Net Profit Ratio is an indicator of overall efficiency of the business.

Higher the Net Profit Ratio, better the business. This ratio helps in determining the operational
efficiency of the business. An increase in the ratio over the previous period shows improvement
in the operational efficiency and decline means otherwise. A comparison with the industry
standards is also an indicator of the efficiency of the business. Sun Pharma`s net profit ratio
declined by 9.95% in 2021 than in 2020.Therefore operational efficiency is declined.

RETURN ON INVESTMENT

Return on investment (ROI) is a performance measure used to evaluate the efficiency

or profitability of an investment or compare the efficiency of a number of different investments.
ROI tries to directly measure the amount of return on a particular investment, relative to the
investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the
cost of the investment. The result is expressed as a percentage or a ratio.

RETURN ON INVESTMENT = NET PROFIT BEFORE INTEREST, TAX AND

DIVIDEND/CAPITAL EMPLOYED*100

2020: - 3253/27206*100 = 11.95%

2021: - 2152/30655*100 = 7.02%

INTERPRETATION: Return on Capital Employed or Return on Investment assesses overall

performance (profitability) of the enterprise. It measures how efficiently the resources of the
business are used. Return on Capital Employed is a fair measure of the profitability of any
concern with the result that the performance of different industries may be compared. An
enterprise should have a satisfactory ratio. To assess whether the ratio is satisfactory or not, it
should be compared with its own ratios of the past years or with the ratios of similar enterprises
in the industry or with the ratio of industry standards.

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 CHAPTER 4

CSR
Our CSR efforts are focused on serving and helping needy and underprivileged communities.
Our priority areas include: health, education, drinking water and sanitation.

Mission
We will leverage our people, expertise and networks to address the needs of the communities
that we serve and thereby catalyse overall development. Being a global pharma company, we
strongly believe that business and responsibility go hand-in-hand. Lasting value can only be
created, if the right balance between the triple bottom lines of economic, environmental and
social is achieved.

Objectives

Serving The Community

We believe in inclusive growth, working towards the upliftment of our served communities.
Addressing their present needs and building for the future remains the core objective for our
CSR efforts.
Ensuring sustainability
Through our CSR activities, we introduce interventions that address critical needs and are
sustainable over a period of time.
Leveraging Resources
We utilise our company’s internal resources, including research, marketing, financial, human
resources, and products, to maximise the impact and increase the reach of our CSR efforts.

Our Focus Areas

Malaria Elimination
Our Malaria Elimination Demonstration Project (MEDP) is a first-of-its-kind Public-Private
partnership between the Indian Council of Medical Research (ICMR), Government of Madhya
Pradesh (GoMP), and the Foundation for Disease Elimination and Control of India (FDEC
India). FDEC India was established by Sun Pharmaceutical Industries Ltd. as a not-for-profit
entity. The MEDP aims to eliminate Malaria from 1,233 villages of the Mandla district.

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 Model School Development
We develop model schools in and around our served communities, enabling and empowering
rural school students to access and enjoy equal educational and development opportunities. Apart
from building robust infrastructure, we help to implement technology-based learning
programmes in schools. We also organise and support various co-curricular activities and related
programmes, as operated through schools and educational institutions, located near our areas of
operations.

Sun Pharma Science Foundation

The Sun Pharma Science Foundation is an independent non-profit organisation, registered under
the Societies Act. Dedicated to promoting scientific endeavours in India, the Foundation
encourages and rewards excellence in the medical and pharmaceutical sciences while
channelling national and international knowledge and expertise in all subjects connected with the
treatment of diseases that afflict humanity at large.

Mobile Healthcare Units

Our Mobile Healthcare Units (MHUs) deliver primary healthcare services to over 650,000
people located around areas close to our manufacturing plants and other establishments. These
MHUs serve a mix of rural and underserved populations, visiting villages to provide treatment
for common ailments, conduct pathological tests, enable referrals, and provide free medicines.
This project is implemented in India through Sun Pharma Community Healthcare Society in the
states of Punjab, Himachal Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu and
Sikkim.

Safe Drinking Water and Sanitation

We support and encourage provision of safe drinking water, adequate sanitation, and easily
accessible hygiene services. Towards this end, we provide access to clean drinking water in
villages, construct good quality individual toilets and implement effective behaviour change
programmes.

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 Environment, Health and Safety
At Sun Pharma, we remain fully committed to achieving excellence through our Environmental,
Health & Safety (EHS) programmes. Conducting our activities in a responsible, proactive
manner is a core focus of our operations and culture.
As a part of this commitment, our EHS Policy provides for the creation of a safe and healthy
workplace and a clean environment for all employees and our served communities. Aiming for,
and adhering to, the highest international standards in plant design, equipment selection,
maintenance, and operations, our EHS policy is a core commitment of our operations.
We have established an ISO14001:2015 compliant Environmental Management System and ISO
45001:2018 compliant Occupational Health and Safety Management System at our key
manufacturing facilities.

Targeting “Zero Harm” by providing Clean Environment and a Safe, Healthy

Workplace
At Sun Pharma, we are fully committed to achieving excellence in Environment, Health &
Safety (EHS) and conduct our activities in the most responsible manner. The importance of EHS
is continually stressed and extensively promoted as a part of our corporate culture.
Our EHS Policy provides for the creation of a safe and healthy workplace and a clean
environment for employees and the community at large. It aims for the highest international
standards in plant design, equipment selection, maintenance and operations. The policy is a
commitment that we will manufacture our products safely and in an environmentally responsible
manner.
The implementation of the EHS Policy is ensured by institutionalising a robust EHS
Management System, adequately supported by a well-defined organisational structure. EHS
performance is periodically reviewed at facility, regional / divisional and corporate levels to
monitor the progress. Close cooperation between all units and individuals is key to maintaining
high standards of environment protection and occupational safety & health at all the facilities.

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The key processes comprise regular safety surveillance, inspections and audits; permit to work
system for operational/maintenance safety; fire prevention and protection activities; operation of
the Effluent Treatment Plant (ETP)/Incinerator; disposal activities related to hazardous wastes;
and regular monitoring of the environment, internally and also through approved laboratories.
The state-of-the-art equipment installed at our major facilities for recycling of the treated effluent
has helped us achieve the status of Zero Liquid Discharge (ZLD).
We also engage with the concerned authorities and industry in devising responsible laws,
regulations and standards. We have made EHS concerns and practices a necessary factor in
appraising our employees. We accord the highest priority to hygiene monitoring at work place
and health assessment of all employees at facilities. Our plant and processes are continuously
upgraded to improve hygiene and health standards. Necessary training is imparted to employees
to enhance their awareness in health and safety related matters.

Bio-Medical Waste

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 CHAPTER 5

CONCLUSION AND SUGGESTIONS

Sun Pharmaceutical’s will continue to focus on growing each of our businesses faster than the
market in which we operate. R&D investments in developing a differentiated generic pipeline as
well as in building our specialty pipeline will continue in the coming years. Our strategy of
developing the specialty business as an additional growth engine has started delivering, with a
gradual ramp up in specialty revenues. We expect this momentum to continue over the next few
years although the COVID-19 pandemic and lockdowns may throw up some uncertainties in the
near-term. The specialty business is also helping us to move up the pharmaceutical value chain
and bring in more innovation to our business. We have invested significant resources over the

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past few years in building this business and are now focusing on commercial execution to ensure
that future cash flows justify these significant investments. Generics will continue to be an
important part of the overall healthcare management globally. Focus on healthcare may increase
in the post-COVID period and hence generics are likely to retain their importance as an effective
and economical health solution. Sun Pharma’s strong positioning in the global generics industry
and continued investments for the future will ensure that it remains a prominent player in this
space. Despite our proactive COVID risk response initiative, we do estimate some softening of
sales in the near term due to the lockdowns and economic slowdown across various countries,
although it is difficult to quantify the impact as of now. Our endeavour will be to ensure that we
are the least impacted.

Key focus areas for us will be:

1. Employee protection and keeping workplace COVID-19 free

2. Digital engagement with doctors and patients

3. Supply chain protection, ensuring optimum utilisation of our factories and working closely
with vendors to ensure continuity of supply

4. Enabling work from home for employees wherever and whenever it is necessary

5. Focus on cash collection and cash conservation in the business to ensure adequate liquidity

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6. Continuing our focus on improving R&D productivity and throughput

7. Focus on cost optimisation and target higher efficiencies

8. Continue to invest in developing new technologies and innovative products

Our talented employees have done a remarkable job of ensuring business continuity despite the
multiple disruptions resulting from the COVID-19 pandemic and lockdowns. All our teams,
including Supply Chain, HR, IT, Finance, Manufacturing have worked tirelessly to:

1. Maintain adequate supply of our products in various markets

2. Enabling WFH for a large number of employees in a very short time

3. Ensuring overall productivity without compromising on safety protocols

REFERENCES: -

1. https://sunpharma.com/
2. https://economictimes.indiatimes.com/sun-pharmaceutical-industries-
ltd/infocompanymanagement/companyid-9134.cms
3. https://www.screener.in/company/SUNPHARMA/consolidated/
4. https://www.moneycontrol.com/financials/
sunpharmaceuticalindustries/profit-lossVI/SPI
5. https://www.moneycontrol.com/financials/
sunpharmaceuticalindustries/balance-sheetVI/SPI

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6. https://www.mbaskool.com/marketing-mix/products/17068-sun-
pharmaceuticals.html
7. https://embapro.com/frontpage/swotcoanalysis/10594-sun-pharma

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