Lean Principles In The Pharmaceutical Industry

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Introduction
The Pharmaceutical Industry is a core industry in any economy. It is an asset to scientific and medical progress such that it directly impacts the health, hygiene and fitness standards of the society. Pharmaceutical companies manufacture, develop and market drugs and medications. These companies are licensed to deal with medicines and medical equipments as well.
In this article, we will study the impact and level of lean principles in the Pharmaceutical Company ‘Dr. Reddy's Laboratories Ltd’. For this, we will first define and understand the global pharmaceuticals market and the emerging Indian Pharmaceuticals Industry along with estimated volumes, revenues and costs incurred.
According to the World Health Organization, the global …show more content…

In recent times, there has been a gradual migration of economic and research activities of pharmacy companies from Europe and USA to fast-growing emerging economies of Brazil, China and India.
Indian Pharmaceutical Industry is witnessing a phenomenal growth which is driven by rising consumption levels and strong demand from export markets. The Pharmaceutical industry in India is the world's third-largest in terms of volume and touching almost US$ 18 billion. According to McKinsey & Company, a global management and consulting firm, India's pharmaceutical sector will touch US$ 45 billion by 2020. In 2013, there were 4,655 pharmaceutical manufacturing plants in India, including 74 US FDA-approved manufacturing facilities employing over 345,000 …show more content…

V. Prasad (CEO)
Kallam Satish Reddy(Chairman)
FY2013-2014
Employees 19,000
Revenue Rs. 132.2 billion (13.7% growth YoY)
Profits After Tax Rs. 21.5 billion (28.2% growth YoY)
New Products launched 54
Investment in R&D 9.4% of Total Sales
Top 5 products (in India) Omez®
Omez-DSR®
Nise®
Stamlo®
Reditux™

Table 1: Company Profile
Dr. Reddy's Laboratories Ltd is one such company in the Indian Pharmaceutical Industry that has risen and overcome some of the above mentioned challenges effectively. It is a pharmaceutical company based in Hyderabad, Telangana, India that offers a wide range of pharmaceutical products in India and abroad. Dr.Reddy's was founded in 1984 and produced active pharmaceutical ingredients and soon began producing branded formulations. By 1987, Dr.Reddy's had launched Norilet and Omez as recognized brands in the Indian market at that time.
Dr. Reddy’s became the first Indian company to export the active ingredients for pharmaceuticals to Europe. It soon expanded internationally and formed joint ventures in Russia and Middle East. The company transformed itself from a supplier of pharmaceutical ingredients into a manufacturer of pharmaceutical products. In 1992, Dr. Reddy's heavily invested in order to do research in the area of new drug discovery and established the Research Foundation. In this way, Dr. Reddy's started targeting the US generic market by building state of art manufacturing facilities. Subsequent acquisitions and joint ventures with various companies

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