INTERNATIONAL MARKETING

PROJECT ON

MMM 2011-14 SEM V

Project on Export of Pharma product
Group - A7
Prof.: Mr.R.Venkatesh

GROUP MEMBERS:
Manish Joshi..37
Saima Khan .46
Vandana Oza.....68
Dhiraj Phatak.....78
Dhaval Radia......81
Shashank Sawant..89

I.
A.

Executive summary
Key elements of the plan
While making a business plan the following were the key elements we considered of utmost importance;
Company Registration
Import Export License
Registration with DGFT to get IEC number
Opening an Forex Account
Purchase
Packaging
Transportation

B. Description of business and target markets

Name of our Company: Jupiter Pharma
The company purchases (product) PHENINDIONE generic tablets from Taj Pharma and exports it to
Litha Pharma in South Africa.
Keeping Port Durban as a unloading dock for the buyer.
Mode of Payment will be irrevocable letter of credit .
100% exemptions is allowed on export of our product

Jupiter Pharma is into exporting anti-coagulant tablets to the following target markets:
Primary: South Africa
Secondary : Zimbabwe
Tertiary : Kenya

C. Brief description of management team

A team of 4 works out of an office in India (Mumbai) based in Andheri. Board of directors consists of 6
equal partners.
Team consists of:
Medical Department- 2 Doctors
Marketing Department 2 international Managers
CHA (Clearing House Agent) 1 who will be handling all custom procedure .

D. Summary of financial projections

Particulars
Projected Sales
Projected Gross Profit
Projected Total
Investment through
Directors
Projected Loans
through Bank
Investment in Market

I year
12 Crs
9Crs
1 Cr

II year
15Crs
12Crs
5Crs

III year
19 Crs
15Crs
8Crs

1 Cr

NA

NA

0.50Cr

2Crs

3Crs

Research
Investment in Purchase
of office

Rented

2.5Cr

Na

II. Business history

A. History of company Taj Pharma history
Taj Pharmaceuticals is a pharmaceuticals company engaged in manufacturing of generic medicines,
finished formulation (Branded), Active Pharmaceuticals Ingredients (Api) and Chemicals.
The Generic Manufacturing is to build innovative pharmaceuticals product and useful packaging, quality
and manufacturing drugs according to the customised customer's specifications. We can customize one
batch of Generic Medicine or an entire set of products in accordance to countries language and health
regulations.
Taj Pharmaceuticals has well established WHO / GMP compliance manufacturing units. The company
manufactures its brands and generics with 4600 generic medicine permissions in India.
Taj Pharmaceuticals Ltd. is a Pharmaceutical Generic manufacturer of Phenindione and manufacturer of
various pharmaceutical formulations in India. Taj Pharmaceuticals Ltd. provide different pharmaceutical
brands and Generic Medicines.
The generic manufacturing strategies of New Drug (Phenindione) and the product-process of Taj
Pharmaceuticals Ltd. are compared and collaborated using data from global Pharmaceuticals manufacturing
plants in the UK(Newcastle), US, Korea, Italy, Germany and Japan.
B. Products-services offered and their unique advantages
Taj Pharmaceuticals has well established WHO / GMP compliance manufacturing units. The company
manufactures its brands and generics with 4600 generic medicine permissions in India.
Taj Pharmaceuticals Ltd. is a Pharmaceutical Generic manufacturer of Phenindione and manufacturer of
various pharmaceutical formulations in India. Taj Pharmaceuticals Ltd. provide different pharmaceutical
brands and Generic Medicines.
The generic manufacturing strategies of New Drug (Phenindione) and the product-process of Taj
Pharmaceuticals Ltd. are compared and collaborated using data from global Pharmaceuticals manufacturing
plants in the UK(Newcastle), US, Korea, Italy, Germany and Japan.
We are an eminent manufacturer, supplier and exporter of Phenindione and various pharmaceuticals
generics medicines in Tablets, capsules, Vial (injections), ampule, Strips and schedule packs etc.
Phenindione and different pharmaceuticals Tablet & Capsule formulations are also available in different
drug delivery forms. We also have large volume manufacturing facilities for these Products.
Phenindione can be manufactured on order basis and also for brand registration in different countries. Our
company meets all the required documents, DMF files, registration documents etc.
Phenindione is manufactured and exported to all Middle East countries and the other continents like
Europe, Thailand, Bangladesh, North America, South America, Russia, Newzeland and United Kingdom.
C. Domestic-market experience: 2 of the 6 partners have worked in a domestic pharma
company i.e. Taj Pharma. Remaining are from marketing background.
D. Foreign-market experience: Debutant

E. Production facilities: Taj pharma is our production facility and is ISO & DCGI approved.
G. Industry structure, competition: Pharmaceutical Industry is our sector & no direct Competition however the
phenindione tablets are being supplied by Europian companies but are not meeting the demands. Hence competition
is weak and entry for this product is feasible.

III. Market Research

A. Target countries
1. Primary: South Africa
2. Secondary : Zimbabwe
3. Tertiary : Kenya

B. Market conditions in Primary country

1.

There is a requirement of approx 40000 Strip in South Africa as researched by us.

2.

There is no direct competition in the country but Warfarin, Heparin and newer agents are in-direct
competitors already present in South Africa.

3.

Trade Barriers:
a. U.S. companies have cited protective tariffs as a barrier to trade in South Africa. Other barriers
to trade often cited include port congestion, technical standards, customs valuation above
invoice prices, theft of goods, import permits, antidumping measures, IPR crime, an inefficient
bureaucracy, and excessive regulation.
b. The International Trade Administration Commission (ITAC) is tasked with administering
South African trade laws and therefore receives requests for tariff protection from a number of
local industries.
c.
Import Requirements and Documentation
a. South Africa has a complex import process. The South African Revenue Service (SARS)
defines approximately 90,000 product tariff codes that are strictly enforced on all imports.
b. Customs South Africa (Customs SA), a division of SARS, requires that an importer register
with its office and obtain an importers code from SARS. This impacts many importers and
may cause delays to clearance of goods.
c. SARS uses a Single Administrative Document (SAD) to facilitate the customs clearance of
goods for importers, exporters and cross-border traders. The SAD is a multi-purpose goods
declaration form covering imports, exports, cross border and transit movements.

4.

IV. Marketing decisions

1.

LITHA Pharma is the sole distributor in South Africa for Phenindione and caters the entire country and
has maximum penetration.
2. Pricing strategy: We quote $5 per tablet and $50 per strip of 10 tablets. Our pricing is more premium than
the market price as we are the sole distributors.
3. Promotion strategy: We will firstly register with an sales tax office and Export Credit Guarantee
Corporation wherein we may rebate incentives. Registration with Chamber of Commerce to get required
certificate of origin.
4. We may have a visit to all Metro City Hospitals and Doctors in South Africa once a Quarter and regular
contact with key prescribers and new prescribers.
5. Further we will hunt for new accounts for more market penetration and may offer discounts.

6. We will produce 20,000 strips once in 6 months and export the same. We expecting 25 to 30% growth in
proceeding year and may offer discount.

V. Legal Decision
Agreement between Marketer and Sole Selling Agents with Canvassing Rights
THIS AGREEMENT made on this 1st day of January 2014, between JUPITER Pharmaceuticals Ltd., a company
incorporated under the Companies Act, 1956 and having its registered office at Mumbai hereinafter called "the
company" (which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and
include its successors and assigns) of the ONE PART; and LITHA Pharmaceuticals Distributors Ltd., a company
incorporated under the Companies Act, 1956 and having its registered office at South Africa (Durban) hereinafter
called "the distributor" (which expression shall, unless it be repugnant to the context or meaning thereof, be deemed
to mean and include its successors and assigns) of the OTHER PART:
Where as the company is engaged in the Marketing of medicine and has decided to appoint a sale selling agent for
the whole of South Africa with canvassing rights and the distributor has agreed to work as such and
Where as the distributor is being appointed at sole selling agents having exclusive right to sell the medicines
manufactured by the company in whole of SA; and
Where as the Board of Directors of the company is making this appointment, subject to its approval by the company
in its first annual general meeting held after the date of this appointment and approval by Central government.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. The company appoints the distributor as sole selling agents for the sale of all the medicines marketed by it in the
whole of SA and the distributor agrees to act as such sole selling agents for the whole of SA on the terms and
conditions contained herein.;
2. The appointment will be for a period of five years commencing from the date of this agreement. However, it may
be extended for further periods not exceeding five years on each occasion.
3. The distributor shall canvass for, secure orders and push the sale of the medicines marketed by the company to the
best of its ability and experience in the whole of SA and guarantees to secure orders for the sale of medicines to the
extent of the value of Rs.12 crores in a year commencing from the date of this agreement.
4. The distributor will advertise the company product at its own cost and expenses by advertisements in newspapers,
journals, Medical magazines, Hospitals, Chemists or by any other means. However, the company may advertise at
its own costs at its discretion whether in newspapers, Medical magazines, Hospitals, Chemists or by any other
means and shall indicate the name of the distributor as its sole selling agents.
5. The distributor shall employ medical representatives at its own cost and expenses for canvassing the company
products amongst the doctors, hospitals, nursing homes, etc. The distributor shall also employ servants, staff at its
own cost and expenses for doing the business of sole-selling agency.
6. The distributor will be entitled to appoint sub-agents for any State/District or any particular area in the country
and on such terms and conditions as the distributor may think fit. However the company shall not be liable for any
dealing between the distributor and its sub-agents.
7. The distributor shall submit to the company weekly return of the business secured, the doctors and hospitals
approached and canvassed during the previous week.
8. The distributor shall forward to the company the orders booked and enquiries received by it not later than two
days from its booking. The distributor shall remit the money received by it in advance from the customers to the
company and an account thereof shall be submitted to the company every Friday.
9. The distributor shall not make any representation on behalf of the company except in conformity with the
instructions issued by the company.
10. The distributor shall book orders of the company's products on the terms and conditions mentioned in the
Schedule attached hereto. The terms and conditions shall be subject to change by circulars or instructions by the

company from time to time and the distributor will be bound to follow the instructions issued by the company from
time to time.
11. The company shall not pay a commission on all orders received directly or indirectly from the customers through
the distributor, which have been executed by the company. The company shall make payment of the commission to
the distributor at the end of every month.
12. During the term of this contract, the distributor shall not sell or attempt to sell the medicines for any other Indian
or foreign company.
13. The agency may be terminated by the company, at any time during the agency period of five years, after giving
one month's notice thereof, in case the distributor fails to comply with the instructions issued by it or if it omits to
comply with its obligation imposed upon it under this agreement or if the distributor fails to obtain or procure orders
for the minimum guaranteed amount or if the company feels that the distributor is guilty of any conduct, which is
prejudicial to the interest of the company and in this matter the decision of the Board of Directors of the company
will be final. The distributor may also terminate this agreement at any time during the agency period, after giving
one month's notice thereof, if the company fails to execute the orders booked by the distributor or if the medicines
supplied by it are sub standard or if the company without just cause withhold the payment of the commission due to
the distributor under the agreement for a period of three months.
14. The distributor shall be responsible to make the payment of the medicines supplied by the company on the
orders received by the distributor, if the constituent to whom medicines were supplied by the company refuses to
pay for the same within two months of the receipt of medicines. The distributor shall be liable as the surety for the
payment of orders booked by it.
15. The distributor shall deposit a sum of Rs 10 Lacs with the company to ensure the obligations imposed upon it
under this agreement. The said sum shall not carry any interest. The said sum will be repayable to the distributor
after one month of the termination of the agreement after adjustment of accounts between the parties.
16. Any and all disputes, controversies, differences arising between the parties hereto out of or in relation to this
agreement or any breach thereof shall be finally settled by arbitration by two arbitrators, one to be appointed by each
party to the dispute and the arbitrators shall, before taking upon themselves the burden of reference appoint an
umpire. The award given by the arbitrators or umpire as the case may be, shall be, final and binding on the parties.
17. At the termination of this agreement whether by efflux of time or otherwise, the company shall not be liable to
pay any commission to the distributor for the orders received after the expiry of agency period.
18. This agreement shall be executed in duplicate. The company shall retain the original and the distributor the
duplicate. Each party shall bear the stamp duty payable in respect of its copy.
19. Unless otherwise agreed upon, the respective addresses for communication in respect of any matter relating to
this agreement shall be as under:
For the Company:
For the Distributor:........................
In Witness Where of the parties have caused their common seal to be affixed to these presents and a duplicate
thereof, the day, month and year first; hereinabove mentioned.
Schedule
The common seal of JUPITER Pharmaceuticals Ltd. was hereunto affixed pursuant to the Resolution of its
Board of Directors passed on 1st day of January 2014, in the presence of S/Shri .......... and ........... directors of the
Company, who have signed in token thereof
The common seal of LITHA Pharmaceuticals Distributors Ltd., was hereunto affixed pursuant to the Resolution of
its Board of Directors passed on 1st day of January 2014, in the presence of S/Shri and..
directors of the company who have signed in token thereof.
WITNESSES;
1.
2.

Dispute Resolution :Any and all disputes, controversies, differences arising between the parties hereto out of or in relation to this
agreement or any breach thereof shall be finally settled by arbitration by two arbitrators, one to be appointed by each
party to the dispute and the arbitrators shall, before taking upon themselves the burden of reference appoint an
umpire. The award given by the arbitrators or umpire as the case may be, shall be, final and binding on the parties.

VI. Manufacturing and operations:

A. Location of production facilities: The factory is CGMP, WHO, UKMHRA approved.
Taj Pharmaceuticals Ltd.
At Village - Kalgam,
Coastal Highway Road
Dist. - Valsad, Gujrat 396142, India
Email : tajgroup@tajpharma.com
B. Capacity of existing facilities: 40,000 tablets per month
VII. Financial decisions
A.Pro forma financial statements and projected cash flows assuming export activity
Projected Purchases 4800000
Projected Sales

120000000

Accounts Receivable
Projected Billings

120000000

Projected Accounts Receivable 120000000

Fixed Assets
Actual Furniture and Equipment

500000

Projected Depreciation

50000

Projected Furniture and Equipment 100000

B. Identification of key assumptions

Particulars
Company Registration
Import Export License Fees and other expenses
Registration with DGFT to get IEC number
Opening an Forex Account
Other Registration
Market Research
Purchasing Cost
Packaging Cost
Warehousing (if needed)

Price assumed (in Rs)

40000
250000
250
50000
50000
500000
7000000
50000
50000

Freight
Insurance
Transportation
Office Expense
Miscellaneous

80000
70000
1000000
7000000
1000000

C. Current sources of funding-private and bank funding

a. Initial investment will be done by Company Directors.
b. Further investment will be done through bank loans as follows;
i. Pre-shipment / Packing Credit
ii. Post-Shipment
D.Potential risk and sources of protection:
a. We will be taking Consignment Insurance with the help of ECGC(Export Credit Guarantee
Corporation of India) to avoid any kind of losses from the date of Shipment.
The risks covered under the Standard Policy:
Under the Standard Policy, ECGC covers, from the date of shipment, the following risks:

a. Commercial Risks
I. Risks covered on the overseas buyers:

Insolvency of the buyer.

Failure of the buyer to make the payment due within a specified period, normally four months from the
due date.
Buyer's failure to accept the goods, subject to certain conditions.

II. Risks covered on the L/c opening Bank:

Insolvency of the L/c Opening bank.

Failure of the L/C opening bank to make the payment due within a specified period normally four
months from the due date.
Insolvency of the L/c Opening bank.

b. Political Risks

Imposition of restriction by the Government of the buyer's country or any Government action, which
may block or delay the transfer of payment made by the buyer.
War, civil war, revolution or civil disturbances in the buyer's country. New import restrictions or
cancellation of a valid import license in the buyer's country.
Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance
charges which cannot be recovered from the buyer.
Any other cause of loss occurring outside India not normally insured by general insurers, and beyond
the control of both the exporter and the buyer.

b.

Third party inspection will be done through either SGS Pvt. Ltd., Intertek India Pvt.Ltd Control
Union International Pvt. Ltd. Or Control Union Worldwide Pvt. Ltd. to avoid rejection by
consignee.

VIII. Implementation schedule

Management Of Timelines
Planned
List of Actions to be implementated

Start Date

Number of weeks

Signing of contract (Determining of payment terms)

Importer sends purchase order
Production, Packaging, warehousing, Certificate of
quality control

01-Jan-14
07-Jan-14

1 week
1 week

15-Jan-14

25 days

Prepare marine, air docs

Insurance certificate, shipping, bill, Mates Receipt, Bills
of lading, Airway bill, Packing list , customs invoice etc

10-Feb-14

10 days

20-Feb-14

45 days

Transportation

05-Apr-14

15 days

Submission of docs to banks

Bank sends docs to importers bank .

20-Apr-14
25-Apr-14

5 days
5 days

Payment is Received

30-Apr-14

30 days