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Business Growth plan of Credence Global

Submitted in partial fulfilment of the requirements for

Masters in Management Studies- MMS

Submitted by
Name: Tushar Joshi

Roll No. – 69
Batch: 2018 – 2020

Mumbai Educational Trust,

Bandra (W), Mumbai.


The internship at Credence Global was indeed a very enriching experience for my career. I
would like to thank everyone who supported me throughout the course of this internship. I am
grateful to them for sharing their truthful and illuminating views and helping me grow as a
management student.
During the internship period, I had the pleasure of working closely with accomplished
organization people who shared with me their experience and helped me in completion of my
I express my heartfelt gratitude and sincere thanks to Sunita Agaskar (Owner) and Mr. Amit
Agaskar who guided me throughout the project.
A special thanks to Mr. Nikhil Rao (Faculty for Marketing, Semester II) for giving us a
broader view on the basic aspects of marketing.

I also thank the director of MET institute of management Dr. Vijay Page and co-ordinator of
MMS course Dr. Sangeeta Tandon for their support and providing me the opportunity to
embark on this project.
Thank you.

Tushar Joshi



1 Need and Justification for project 2
2 Introduction
 Introduction to Health Sector 6
 Introduction to Pharmaceutical sector 7
 Five Forces analyis 9
 Government initiative 9
 Potential for further growth 10

3 Company Background and Information

 Profile 11
 Division portfolio 12
 Infrastructure 13

4 Process and Procedures 15

5 Data collection and data analysis 16

6 SWOT analysis 25
7 Problem analysis 26
8 Suggestions and recommendations 27
9 Implementation 28
10 Learnings and Conclusion 31
11 Conclusion 32
12 A peep into the future 33
13 Bibliography 34


Goldman Sachs has started 10,000 women program which provides women entrepreneurs
around the world with business management education, mentoring, networking, and also
provide capital to the selected projects. It was founded on the understanding that investing in
women entrepreneurs leads to economic growth and stronger communities. Main aim of my
internship was to conduct a market research to identify growth opportunity, make strategies
and implement them will help the business to grow over the period of three years and meet its

Introduction to the Healthcare Sector

The Indian healthcare Industry has undergone significant transformation over the past three
decades. From one dominated by public sector hospitals, it has shifted to being dominated by
private hospitals in a response to the changing healthcare needs of the population. The private
sector that dominates the secondary and tertiary healthcare segments, accounts for around
70% of total health care spending in India as of FY2018. Approximately 75% of all hospitals
and 40% of total hospital beds - particularly in the secondary and tertiary healthcare
segments - are owned and operated by the private sector. During FY2014-FY2018, India’s
hospital sector grew at a CAGR of 8% to USD 87 bn in FY2018. The key drivers of
healthcare services in India are the increase in patient population and the resulting higher
spending on healthcare services.

Private sector hospitals in India include healthcare chains owned by corporations, standalone
private nursing homes, and private hospitals run by charitable trusts or operated through JVs
with multinational hospital chains. Public healthcare facilities are managed by government or
semi government organisations. Within private healthcare providers which comprise private
hospitals and clinics managed and operated by private sector companies, hospitals focus on
inpatient treatments while clinics focus on outpatient treatments. Private healthcare providers
are concentrated in affluent urban areas, whereas public healthcare providers dominate rural

The overall healthcare industry in India is dominated by hospital services in value terms.
Hospital services contribute close to 70% of the revenue of this sector. Within the hospital
segment, private hospitals account for around 80% of the healthcare delivery market.
Corporate hospital chains are driving the growth in this industry, with large corporate
hospital chains focused on metros and tier 1 cities, and smaller standalone hospitals focused
on tier 2 and tier 3 cities. Some of the leading private hospital groups in India are Apollo
Healthcare, Fortis, Manipal Hospitals, Narayan Health, CARE hospitals, Max healthcare, and
Workhardt hospitals - with the two largest hospital groups in India being Apollo Hospitals
and Fortis Hospitals.

Introduction to the Pharmaceutical Sector

Indian pharma industry enjoys an important position in the global pharmaceuticals industry.
The Indian pharmaceuticals market is the third-largest in terms of volume and thirteenth-
largest in terms of value. The country has an established domestic pharmaceutical industry,
with a strong network of 3000 drug companies and about 10,500 manufacturing units.

Industry is gearing up for the next level of growth driven by shift towards specialty products,
customer centricity, focus on improving quality, operational efficiency and productivity and
selective mergers & acquisitions. Even though growth has slowed down recently in the event
of GST and demonetisation we believe it will be in the top 10 global markets by 2020. High
burden of disease, good economic growth leading to higher disposable incomes,
improvements in healthcare infrastructure and improved healthcare financing are driving
growth in the domestic market, the report highlighted.

The Indian pharma industry has been growing at a compounded annual growth rate (CAGR)
of more than 15% over the last five years and has significant growth opportunities. Pharma
companies will continue to grow both organically and inorganically through alliances and
partnerships. They will continue to focus on improving operational efficiency and
productivity. Developments in the health insurance, medical technology and mobile
telephony can help the growth of the pharma industry by removing financial and physical
barriers to healthcare access in India.

According to EIU, India was the world’s 10th-largest pharmaceutical market in US dollar
terms in 2017. The research house estimated that pharmaceutical sales grew by 11% in local
currency terms, to over USD 25bn in 2017, which is nearly double the 2012 level. In volume
terms, generic drugs account for around 75% of the Indian market by volume, as well as for
most of the country’s domestic drug production. Local pharmaceutical companies export
generic drugs to developed countries, notably the US, by taking advantage of the
comparatively lower labour and research costs in India. The country imports 70% of its drugs
from China, and meets most of its sophisticated drug needs from the US and EU. Foreign
companies are the heaviest investors in pharmaceutical R&D in India, and account for over
two-third’s of India’s pharmaceutical patents.

This pharmaceutical industry is extremely fragmented and consists of 24,000 firms, of which
only 250 are deemed to be “organised” by India’s foreign investment information agency -
Invest India. These 250 firms focus predominantly on generic drugs and account for around
70% of the market. Generic formulation manufactures dominate the pharmaceutical
landscape in India, while the operational presence of innovator pharmaceutical companies -
mainly multinational firms - is limited and they have carved out a niche in the critical disease
segment. This industry is littered with small to medium enterprises, baring a few large ones -
the leading 25-30 companies in terms of revenue - which have limited product offerings,
manufacturing capability and geographical presence.

In the generic drug space in India, Sun Pharmaceuticals, Dr. Reddy’s laboratories, Lupin,
Cadila Pharmaceuticals, Cipla, IPCA, Aurbindo and Natco Pharmaceuticals are the few large
domestic manufacturers. Sun Pharma became India’s largest pharmaceutical firm when it
acquired Ranbaxy for USD 4bn in March 2015. The presence of domestic pharmaceutical
companies is limited in the critical disease segment, and across-therapeutic segments such as
cardiovascular, CNS, and Neurology. Pharmaceutical companies dominating the market in
India include Gilead Sciences, Bayer, AstraZeneca, GlaxoSmithKline, Merck, and Sanofi.
Most of the drugs produced by these companies is under patent protection.

Michael porter’s Five Forces analysis

Threat of substitutes is the highest compared to other parameters because of huge

competition in the market. Whereas for new entrants it is difficult since market is already
saturated. Buyers in this case are hospitals, chemists, nursing homes and then secondary
buyer is Patients.

Government Initiative
Government healthcare expenditure is woefully inadequate. According to a report in The Wire of
April 14, 2018, it is much lower than the world’s average of 6% of GDP as of 2017. India’s
public health expenditure, comprising that of both central and State governments, increased
marginally to 1.4% of GDP in FY2017, after remaining constant at around 1.3% of GDP between
2008 and 2015. Further, out of the total health expenditure in India - which includes both private
and public sector spending – public sector spending on healthcare accounts for only 30%, - which
is significantly lower when compared to those of the UK, the US, China, Indonesia, and Brazil. In
these countries public spending on health accounts for 83%, 48%, 56%, 39% and 46% of total
health expenditure respectively. However, according to a Times of India report as of June 20,
2018, the low public expenditure on health in India is set for change. According to the article, the
central government plans to launch the National Health Protection Scheme, termed Ayushman
Bharat, to cover over 100mn poor families, with an annual health coverage of INR 0.5mn per

family per year. This is slated to be the world’s largest government run insurance scheme and was
announced during the Budget FY2019 and later approved by the Union Cabinet.

Although these schemes appeared to have significantly lowered health costs for the bottom 20%
of the population in India, their impact has been mixed. According to a September 2018 report in
LiveMint, 80.4% of households facing catastrophic health shocks in India do not have a health
insurance cover, while only 16.5% of these households are covered by state-sponsored insurance
and 3.6% are covered by private health insurance.



Credence Global was founded in the year 2013 with an objective to ensure quality handling
and accurate delivery of pharmaceutical products. "Credence” means Trust and "Global”
defines the reach the company aims to achieve.
Our Value Proposition is Delivering the RIGHT PRODUCT to the RIGHT CUSTOMER at

Some of our Strengths are Strong network of 60+ customer, ample Storage space, based at
Prime location, Prompt service, Financial capability.

Started from the stockistship of one division managing from home, we have reached at a
level where we distribute 450 products across Mumbai and Thane to 60+ stockist. Our target
is to grow our business exponentially. From our sales figures, we are growing at 25% on
average with last years sales figure as 15.96 Cr.

We are the important link between the manufacturers and retailers. As a distributor, we buy
in higher quantities and dispatch in smaller quantities as per the demand of the customer. As
a local distributor and indirectly having connections with hospitals, retailers and nursing
homes justifies our business.

Profile of Owner
Mrs. Sunita Agaskar is an MBA in Marketing with over fifteen years of work experience in
Distribution of products and services, Warehousing and Business Development.
Previously she had provided training and consultancy services to corporate clients in the capacity
of Partner in Avad Enterprises. She has Expertise in Training, Business Process Re-engineering,
process design, strategic planning, governance and work place planning.
She was the Business Development Manager for Religare, Specialized in distribution and growth
of insurance business through direct sales force management, channel partners management and
marketing campaign management.
While working in GE Money as Cluster Distribution head, she became expert in set up of
distribution network through branches, point of sales offices etc. Also, she managed a
multifaceted role which involved Sales, Service, Credit, Operations and General Administration.

Timeline of Credence Global

• 2013: As a Stockist of Neon’s March division
• 2016: As a Superstockist having a network of 39 Stockist across MMR.
• 2019: As a Superstockist having a network of 60 Stockist across MMR.

Division portfolio

 Anesthesia
 Criticare
 Maxneon
 Omacare
 March
 Hospro

Warehouse in Andheri (Marol)

This warehouse was started in 2016 at Marol, which is the central location in Mumbai. Total
area here is 3400 Sq.Ft. with Walk-in Cold room for products which required temperatures
from 2 – 8 degC.

 As a superstockist, our manufacturer (Neon Lab. Pvt. Ltd.) sends the goods (medicinal
products) as we send a request depending on the stock availability.
 Marketing professionals raise an order from customers area wise and division wise. In case of
urgency, customer directly place order to us.
 Before transporting all the material, we collect blank cheques from the customers.
 So depending on the order, we repackage all the material and transport them to the customer.
 Once, customer receives all the material, they raise an acknowledgement stating they
received all the material.
 Then we fill up the blank cheques and deposit in the bank.
 Now in case of medicinal products, if goods got expired or damaged during the process, the
company has to take back the expired goods and give debit to customers.
 So, customers used to send back all the expired and damaged products to us and raise credit
 We as a superstockist send back such goods to manufacturer and claim the amount and
forward it to our customers.

For collecting data, I have designed a google form and circulated to all of our customers
(Stockist). Also, we have decided to meet top 25% of our customers to understand their work
culture, their feedback on improving our relation and to understand the market opportunities.

We collected the sales data of previous financial year which is 2018 – 19 from each of the
customer. Then I analysed which customers are giving us the highest business. When I analysed
the sales data, I realized that it works on Pareto principle i.e. 80% of the business was coming
from 20% of the customers. So, we selected the top 20% of the stockist for visits.
Top 10
8 LTD 6376874.98 VIKHROLI (WEST)
Total 89111891.85

And from the figures, it was realized that top 10 stockist are giving more than 55% of the

Also, I analysed that how our revenue is distributed across various divisions,

Total Sales %
3% 10% 6%



From the Previous sales data, top products are identified out of 450 different products; for that
two parameters are set, first is Volume wise (Quantity) and second is Value wise (Cost).

Top 3 item volume wise in 2018-19

Product Sum of Tot.Qty
LOX 2% JELLY 30 GM IP 2,92,034
CORT-S 100MG/VIAL IP 1,55,870
AMP 1,44,005

Top 3 item value wise in 2018-19

Product Sum of Amount
LOX 2% JELLY 30 GM IP 58,35,504
ARTACIL 5X2.5ML IP 39,91,928

I had designed some questions for visits,

1. From last how many years are you in this business?
2. How long have you been working with Neon?
3. With how many distributors have you tied up and in which divisions?
4. How is your business doing? Is it going up/ down/ stagnant? And how it will be in future?

5. Is there any paperwork pending with Credence global?
6. Is there any outstanding payment? Reason?
7. How are you planning to expand your business?
8. We have certain (Issues)? How can we solve them?
9. Any suggestions for improvement?

Before meeting any customer, it was necessary to understand about our business with each one i.e. to
understand in which Division they are dealing and also I’ve collected the information from
Marketing team to understand if the customer is already facing any issue. To understand about their
current business with our company, I’ve made a table chart like,









From this analysis, we realized that to improve our service; we have to focus on above mentioned
parameters from right to left i.e. First Credit note settlement due to Expiry and Breakage and On
time delivery of Goods and so on.

For future growth, it was necessary to understand the Global and Indian market scenario, so
secondary data was helpful. We collected some journals from IIM-B library to understand the future
trends in Pharmaceutical industry. We have found top 10 therapeutic divisions as per Global
pharmaceutical sales.

From the data collected globally these are the top 10 classes/divisions sales wise,

Upon further analysis, these are the top manufacturing companies in Oncology market, their
market share and % sales growth

Upon further analysis, these are the top manufacturing companies in Vaccines market, their
market share and % sales growth

Doing Primary and Secondary research, we have decided these strategies for growing the existing
1. Superstockist of new companies
2. Super stockist for different segment
3. Becoming stockist of new segment
4. New geographical areas
5. Backward Integration
6. Forward Integration
7. something totally different.

Upon due diligence, we have decided to not focus on some of the strategies like,
1. New geographical area, because it will require new set up and capital intensive.
2. Manufacturing, because capital and technology intensive.
3. Retail, because it is labour intensive.
4. Something totally different, because we are at the initial stage.

For short term goals, we decided these action plan for next three months

 Customer feedback survey

 Top 20 customer visits

 Website design

 LinkedIn page

 Credit note Issuance process

For next one year

 C & F opportunity of YOLO HealthATM

 Stockistship of Oncology and Vaccine

 C & F opportunity of Different product


 Strong Network of 60+ customers
 Storage Space
 Prime Location
 Prompt Service
 Financial Capability

 One Manufacturer
 Marketing team

 Different Therapeutic Segment
 Forward Integration

 Competitive market
 FDA regulations


 Dependency
As a Distributor, all the rules and regulations are set by Manufacturing company. Currently,
we only have one manufacturing company i.e. Neon Laboratory Pvt. Ltd. That’s why, we are
very much dependent on the manufacturing companies’ strategies to capture the market.

 Staff
Currently Attrition rate is high and the some of the staff is not skilled which is one of the
reasons for unsolved queries of customers and stock mismatch i.e. sometimes customers
receive extra stock and sometimes less stock than ordered. d

 Software
Patch up with Head office of Neon and continuous updating from them is causing the reason
for delay in the process of Claim settlements.

 Delivery
Since the delivery of goods is outsourced considering the low volume of goods, made us
depend on the Transport company. Also, goods are handled by unskilled labour is one of the
reasons for breakage.


 Barcoding of our products can be used.

 Currently, we use inventory management software, which can be linked to stockiest so that
they can place order and get the bill directly from the same software.

 Also, there should be an auto pop-up on the software in case of overdue payment from the

 Now there is a lack of storage space of physical paper so creating archives for files will make
employees work better.

 Credit note issuance process needs to be improved.

 Inventory management should be improved.

 Skills training and regular meetings with the staff should happen more frequently to
understand the problems they are facing.

 Disciplinary environment to be set in the office.

 Focus on social media platforms for advertising.

 Tapes that we use for repackaging can be customized and used for branding.

 After doing premises audit, for fire safety, Fire extinguishers are recommended.

Second half of my project is implementation of the immediate strategies that I have designed, so I
started working on them.

1. Customer Relationship Management

We have decided to meet 20% of our stockist who give 80% of our business as per pareto principle.
So we shortlisted top 20 stockist and meet the owners personally to understand the problem they are
facing in the current situation. Second motive was to understand which segments are doing good in
the market, as they are in direct contact with the market i.e. hospitals and chemists.
Shubham Agencies
Map Chem Pvt. Ltd.
Shah Trading Co.
Sai Krupa Agencies
Ekta Enterprises
Tataria Healthcare
Novacare Healthcare Solution Pvt Ltd
Shrinath Enterprises
Shree Enterprises (New)
Parag Pharma
Gajanan Surgico
Shree Nidhi Pharma
Bhayani Pharma
Meher Distributors Pvt Ltd
Shree Sai Enterprises
Shree Ganesh Distributors
Noor Chemist Druggist And General Stores
Akshaya Pharma
Shri Shubham Agencies
Shree Sai Medico Agency

After meeting with them, we got to know that Oncology and Vaccine are the two big segments in

which we can venture into the future. Also, it helped resolve many conflicts and miscommunication
that happens in the normal day to day interaction.

2. Social Media marketing

As a distributor / C & F agent, it is important to tie up with multiple manufacturers to grow business.
Social media like LinkedIn is the best medium to approach any manufacturing company. We have
decided to promote our company on social networks like Facebook and LinkedIn. I attended one
webinar on ‘Digital Marketing beyond Facebook and Google’, which helped me understand how
other social platforms are important and what are the ways of promoting our business on these
Among all the platforms, LinkedIn looks like the better platform as their strategy to target specific
audience by their company position, Retargeting, also targets lookalike and interest audiences.

I created our LinkedIn page and also updated the facebook page.

3. Due diligence for YOLO HealthATM

Through our social presence, we got approached by a company named YOLO with their product as
HealthATM machine. They presented three models with us
1. Sales model
2. Revenue sharing model
3. C & F model
After analyzing all the pros and cons of all the models and considering our strengths and
weaknesses, I have suggested to go for C & F model. Since for the rest of the two models, we needed
marketing expertise and according to the current situation of the company, it was difficult to venture
into marketing of something which is completely new in the market.

4. Market research for Horse Balsam

From Social website, we got approached by one more company named Vij allure with their product
Horse Balsam. It is a basic pre-workout warm-up balm, which increased blood circulation after
applying, in turn reduces the chances of getting injured. Before signing any agreement, I have done
some market research. I had visited around 20 nutrition shops covering all of Mumbai region and
also visited many gym trainers to get to know their personal feedback by giving them samples to try

out the balm. After completing my research, I have suggested that, we should start with the smaller
batch and target all the gyms and personal trainers as customers always listen to their trainers.

5. Customised Bopp tape

As a distributor, we repackage the material in to the boxes and transport to the stockist. I realised
that to pack a box, we use 3 inch bopp tape which is blank. So, I suggested them to use the
customized bopp tape with the logo and name of the company. After comparing the prices and
talking to the various vendors, it was seen that value wise it was not making such a difference.

6. Fire safety
I conducted premises audit, in which I realized that there was no fire extinguisher. We are using one
walk in cold room, which is highly electric equipment, for that and as per fire safety compliance, we
should install fire extinguisher cylinders. After talking to about 8 vendors, we have decided to
finalize one company named Safety plus engineering and installed 8 cylinders across entire area.


 Negotiation skills
It is important to ensure that we fully understand our prospect’s requirements and decision-
making process, whilst planting seeds and setting the tone for the negotiation phase. A
manufacturing company can come up with a proposal but as a distributor and customer, it is
required skill.

 Customer profiling
You can never judge any customer, not by their branded clothes, shoes, watches etc. however
rich (s)he might be, but it may happen that they won’t buy your product and a person who looks
simple may place a direct order. First understand the customers’ need and make him/her
understand how your product satisfies that need. The most important part of a Sales job is

 Importance of teamwork
To execute a plan, not only you are giving your best, it is also important how you coordinate
with your team and adjust according to what your team demands. When a group of individuals
works together, compared to one person working alone, they promote a more efficient work
output and are able to complete tasks faster due to many minds intertwined on the same goals
and objectives of the business. It also gives the opportunity to learn from each other’s mistake

Credence Global is a Super-Stockist for Neon Laboratories Pvt. Ltd. as of now, and have a set
up distribution channel across Mumbai Metropolitan Region and specially deals with wide
variety of products like Injectable which can be used in Hospitals and Nursing homes for the
end use.

There is constant growth in the business which is resulting from the growth of the
Pharmaceutical sector. But additionally company can venture in forward or backward
integration in the future. Also, tie-up with other manufacturing companies for Super-
stockistship will help company to reach a stable phase and it won’t have to rely on one
company for revenue.

We have developed evaluated and implemented different strategies for business growth, also
worked as a customer relationship manager and now excited to learn more about it in theory.
It was a great learning experience for me as one get to learn a lot in Start-ups.

After evaluating two products like YOLO HealthATM and Horse Balsam, we feel like
company needs to have marketing expertise to move ahead in this field. Also, there are many
recommendations for manufacturing company and their marketing team since they are the
first contact with the customers. Good networking is required in this field for opportunities
since most of the manufacturing companies select distributors internally through their own


Looking forward what the company should do for future growth:

 Improve Customer Service
 Focus on the awareness of the brand
 Keep an eye on the Manufacturers
 Improve the logistics department

These are the projections drawn according to the past trends and by looking at the overall
pharmaceutical sector,

2016-2017 – No. of Customers (stockist) were 39

2018-2019 – No. of Customers (stockist) are 60
2021-2022 – No. of Customers (stockist) will be 70

Total Sales Projection (in crore) for next 3 years at

20% growth
30.00 27.60

25.00 23.00
15.00 12.75


2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

 Pharmaceuticals in India by marketline.com
 World Preview 2018, Outlook to 2024 by Evaluate Pharma
Industry Report
 State of Health in India – by Statista IQVIA.
 All data from company’s Software.