1

1.1 HISTORY AND FORMATION

The dawn of 50's ushered in an era of awakening. Having broken free from the bondage

of dormant history, a need arose for the country to be self-sufficient in all spheres.

 Healthcare at this time was the sole domain of a few pharmaceutical giants. Coupled to

this was the enormous task fighting the myth and malady by cutting across the barriers of

communication so as to reach out to people and to ensure the most effective cure in the

shortest possible time. Under such circumstances, with tenacity of purpose and unfailing

zeal to achieve perfection in quality, Cadila was founded in 1952.

2

At the time of India's independence in 1947 our Late Founder, Mr. Ramanbhai B. Patel

was completing his graduation at the Baroda Science College. After completing his

studies in pharmaceutical sciences, he went on to join L. M. College of Pharmacy, one of

the oldest pharmacy colleges in India as a Lecturer. With the entire nation gearing up to

make India self reliant, Mr. Ramanbhai B. Patel turned an entrepreneur, determined to

contribute his share by setting up a pharmaceutical company.

The name Zydus was chosen to reflect the company’s ethos. Zydus, a phonetically

powerful word, combines the values of Greco-Roman God Zeus and dawn of new era.

‘Zydus’ like Zeus, symbolizes the company’s aspiration to contribute to the welfare of

the people and social concerns. With dedicated services, ultra modern manufacturing

processes, and quality products, Zydus Cadila is committed to make the world the

healthier place to live in.

Emerging as a modest pharmaceutical company, Cadila in the early years came out with a

wide range of innovative products.

Livirubra was a combination of intrinsic factor lipotropic factor, iron, folic acid and

vitamin B12 used for treatment of Pernicious anemia. Neuroxin-12 was also a unique

first-of-its-kind derivative where incompatible neurotoxins B1, B6 and B12 were made

compatible in a vial. Isopar was also a new product launched for the first time in the

market. It was derivative of INH used in the treatment of tuberculosis. He thus set a trend

for innovative healthcare solutions.  

By the early 1990s, Cadila was ranked the third largest pharmaceutical company in India.

(ORG -December 1991, 1992, 1993). The decade also marked the beginning of a new

economic framework and a shift in government policies. To thrive in this evolving

environment, it became imperative for Cadila to restructure and streamline its business

operations. Thus in 1995, Cadila Laboratories emerged as Cadila Healthcare under the

aegis of the Zydus group.

3

1.2 VISION:

1. 3 MISSION:

4

We are dedicated to life…in all its dimensions. Our world is shaped

by a passion for innovation, commitment to partners and concern for

people in an effort to create healthier communities, globally.

Zydus shall be a leading global healthcare provider

with a robust product pipeline and sales of over $1 billion by 2010;

we shall achieve sales of over $3 billion by 2015 and

be a research-based pharmaceutical company by 2020.

1. 4 ZYDUS CORE VALUES:

1. 5 OBJECTIVE OF THE COMPANY

1.6 QUALITY POLICY:

5

C Competency Building

A Adapt to new environment

R Respect Human Values

E Empower, Enrich, Excel

The objective of the organization is to care for the health of people

and in order to fulfill going beyond the realm of pharmaceuticals;

offering the products of highest quality; supporting the hands that

deal with innovative contributions in-patient.

They read the way of harnessing talent to technology drawing

resources and research from every corner of the globe.

“Motive – Dedicated to life”

Zydus Cadila is committed to develop, manufacture and distribute products that meet

the highest standards at both national and international levels.

Zydus Cadila complies with CGMP(current good manufacturing practices) in all its

production services

Zydus Cadila shall ongoing endeavor to improve upon the quality thereby adding

value to the products and enhancing customer satisfaction.

Zydus Cadila believes that quality is achieved through conscious team efforts of all

the personnel, individually and collectively,

Zydus Cadila is “dedicated to life” and “Quality is the way of life” at Zydus Cadila

6

FormulationsState-of-Art Manufacturing Plants

API

Moraiya BaddiAgiolax, Goa Goa

Vadodara AnkleshwarPatalgangaAPI JV with Altana Pharma

Sikkim`

1. 7 VARIOUS MANUFACTURING FACILITIES:

1. 8 GROUP STRUCTURE:

7

ZYDUS

8

CADILA HEALTHCARE LIMITED

SUBSIDIARIES JOINT VENTURES ACQUISITIONS

Recon Ltd

(Formulation Business)

German Remedies

Banyan Chemicals

Alpharma (France)

Nippon Universal

(Japan)

Liva Healthcare

Zydus France SAS

Zydus Healthcare

(USA) LLC

Zydus

Pharmaceuticals

(USA) Inc.

Zydus Healthcare

Brazil Ltd.

Zydus Pharma Inc.

Zydus Altana

Healthcare Pvt. Ltd.

Sarabhai Zydus

Animal Health Ltd.

Zydus Mayne Pharma

Private Limited

Zydus BSV Private

Limited

1. 9 VARIOUS BUSINESS UNITS:

SBU – 1 Marketing - CHL - Alidac, Medica, C & D Division

SBU - 2 Marketing - German Remedies - Respicare, Evona & Diagnostics

SBU - 3 API Business

SBU – 4 Global Business

SBU - 5 Business Development & Generics

SBU - 6 PSM, GCM, PTC

SBU - 7 Marketing - Cadila, Neurosciences & Biogen

1. 10 VARIOUS SERVICE UNITS:

SSU – 1 Manufacturing Formulations

SSU - 2 Corporate Finance

SSU - 3 Group HR & Corporate Communication

Zydus Research Centre

9

1. 11 VARIOUS DEPARTMENTS

Zydus Cadila has most integrated facilities for discovery and development activities in its

cast premises. Each department formulates for itself a variety of tasks at the same time

works in tandem with other departments to churn out the final products.

VARIOUS DEPARTMENTS

Technical:

1. Analytical Development Laboratory (ADL)

2. Formulations and Development (F&D)

3. International Regulatory Affairs (IRA)

4. Intellectual Property Rights (IPR)

5. NDDS

6. Consumer Product Division

7. Pharmacokinetics

8. Packaging Development

9. TDS

10. Quality Assurance

11. Quality Control

12. Vaccine-R

13. Vaccine-T

14. Hormone Parental

10

SERVICE:

1. House Keeping

2. Engineering

3 Transports

4. Security

ADMINISTRATION:

1. Finance

2. Human Resources (HR)

3. Purchase

4. Information Technology

5. Office Administration

11

12

2.1 MEANING:

After an employee is selected, placed and introduced he or she must be provided with training facilities. Training is the act of increasing the knowledge and skill of an employee for doing a particular job. Training is a short-term educational process and utilising a systematic and organised procedure by which employees learn technical knowledge and skills for a definite purpose. Dale S. Beach defines the training as “organised procedure by which people learn knowledge and/or skill for a definite purpose.”

In other words training improves, changes, moulds the employee’s knowledge, skill, behaviour, aptitude, and attitude towards the requirements of the job and organisation. Training refers to the teaching and learning activities carried on for the primary purpose of helping members of an organisation, to acquire and apply the knowledge, skills, abilities and attitudes needed by a particular job and organisation.

Thus, training bridges the difference between job requirements and employee’s present specifications.

2.2TRAININGAND DEVELOPMENT:

Employee training is distinct from management development or executive development. While the former refers to training given to employees in the areas of operations, technical and allied areas, the latter refers to developing an employee in the areas of principles and techniques of management, administration, organisation and allied areas.

13

2.3 Difference between Training and Development:

Area Training Development

Content Technical skills and Managerial and behavioural Knowledge Skill and knowledge

Purpose Specific job-related Conceptual and general Knowledge Duration Short-term Long-term

For whom Mostly technical and Mostly for managerial Non-managerial Personnel Personnel

2.4 IMPORTANCE OF TRAINING:

The importance of human resource management to a large extent depends on human resource development. Training is the most important technique of human resource development. No organisation can get a candidate who exactly matches with the job and the organisational requirements. Hence, training is important to develop the employee and make him suitable to the job.

Job and organisational requirements are not static, they are changed from time to time in view of technological advancement and change in the awareness of the Total Quality and Productivity Management (TQPM). The objectives of TQPM can be achieved only through training as training develops human skills and efficiency. Trained employees would be a valuable asset to an organisation. Organisational efficiency, productivity, progress and development to a greater extent depend on training. Organisational objectives like viability, stability and growth can also be achieved through training. Training is important as it constitutes significant part of management control.

14

2.5 BENEFITS OF TRAINING:

How Training Benefits the Organisation

Leads to improved profitability and/or more positive attitudes towards profit orientation

Improves the job knowledge and skills at all levels of the organisation Improves the morale of the workforce Helps people identify with the organisational goals Helps create a better corporate image Fasters authenticity, openness and trust Improves the relationship between boss and subordinates Aids in organisational development Learns from the trainee Helps prepare guidelines for work Aids in understanding and carrying out organisational policies Provides information for future needs in all areas of the organisation Organisation gets more effective decision-making and problem solving Aids in development for promotion from within Aids in developing leadership skill, motivation, loyalty, better attitudes, and other

aspects that successful workers and managers usually display Aids in increasing productivity and/or quality of work Helps keep costs down in many areas, e.g., production, personnel, administration, etc. Develops a sense of responsibility to the organisation for being competent and

knowledgeable. Improves labour –management relations Reduces outside consulting costs by utilising competent internal consulting Stimulates preventive management as opposed to putting out fires Eliminates sub-optional behaviour (such as hiding tools) Creates an appropriate climate fro growth, communication Helps employees adjust to change Aids in handling conflict, thereby helping to prevent stress and tension.

Benefits to the Individual Which in Turn Ultimately Should Benefit the Organisation Helps the individual in making better decisions and effective problem solving Through training and development, motivational variables of recognition,

achievement, growth, responsibility and advancement are internalised and operationalised

Aids in encouraging and achieving self-development and self –confidence Helps a person handle stress, tensi9on, frustration and conflict Provides information for improving leadership knowledge, communication skills and

attitudes Increases job satisfaction and recognition Moves a person toward personal goals while improving interactive skills

15

Satisfies, personal needs of the trainer (and trainee) Provides the trainee an avenue for growth and a say in his/her own future Develops a sense of growth in learning Helps a person develop speaking and listening skills; also writing skills when

exercises are required Helps eliminate fear in attempting new tasks.

Benefits in Personnel and Human Relations, Intra and Inter group Relations and Policy Implementation Improves communication between groups and individuals Aids in orientation for new employees and those taking new jobs through transfer or

promotion Provides information on equal opportunity and affirmative action Provides information on other governmental laws and administrative policies Improves morale Builds cohesiveness in groups Provides a good climate for learning, growth, and co-ordination Makes the organization a better place to work and live

2.6 Need for Training:

Every organisation big or small, productive or non-productive, economic or social, old or newly established should provide training to all employees irrespective of their qualification, skill, suitability for the job etc. Thus, no or5ganisation can choose whether or not to train employees.Training is not something that is done once to new employees; it is used continuously in every well run establishment. Further, technological changes, automation, require up-dating the skills and knowledge. As such an organisation has to retrain the old employees.

16

Specifically, the need for training arises due to the following reasons:

(I) To match the Employee Specifications with the job requirements and Organisational Needs: An employee’s specification may not exactly suit to the requirements of the job and the organisation irrespective of his past experience, qualifications, skills, knowledge etc. Thus, every management finds deviations between employee’s present specifications and the job requirements and organisational needs. Training is need to fill these gaps by developing and moulding the employee’s skill, knowledge, attitude, behaviour etc. to the tune of the job requirements and organisational needs.

(II) Organizational Viability and the Transformation Process: The primary goal of most of the organisations is their viability which is continuously influenced by environmental pressure. If the organisation does nor adapt itself to the changing factors in the environment, it will lose its market share. If the organisation desires to adapt these changes, first it has to train the employees to impart specific skills and knowledge in order to enable them to contribute to the organisational efficiency and to cope with the changing environment. In addition, it provides continuity to the organisation process and development. The productivity of the organisation can be improved by developing the efficiency of transformation process which in turn depends on the enhancement of the existing levels of skill and knowledge of the employees. The achievement of these objectives mostly depends on the effectiveness of the human resources that the organisation possess. Employee effectiveness can be secured by proper training.

(III)Technological Advances: Every organisation in order to survive and to be effective should adopt the latest technology, i.e., mechanisation, computerisation and automation. Adoption of the latest technological means and methods, will not be complete until they are named by employees possessing skill to operate them. So, organisations should train the employees to enrich them in the areas of changing technical skills and knowledge from time to time.

(IV) Organisational Complexity: With the emergence of increased mechanisation and automation, manufacturing of multiple products and by-products or dealing in services of diversified lines, extension of operations to various regions of the country or in overseas countries, organisation of most of the companies has become complex. This has led to the growth in number and kind of employees and layers in organisation hierarchy. This creates the complex problems of co-ordination and integration of activities adaptable for and adaptable to the expanding and diversifying situations. This situation calls for training in the skills of co-ordination, integration and adaptability to the requirements of growth, diversification and expansion. Companies constantly search

17

for opportunities to improve organisational effectiveness. Training is responsible for much of the planned change and effectiveness in an organisation as it prepares the people to be the change agents and to implement the programmes of effectiveness. Thus training solves the problems of organisational complexity.

(V) Human Relations: Trends in approach towards personnel management has changed from the commodity approach to partnership approach, crossing the human relations approach. So today, management of most pf the organisations has to maintain human relations besides maintaining sound industrial relations although hitherto the managers are not accustomed to deal with the workers accordingly. So training in human relations is necessary to deal with human problems (including alienation, inter-personal and inter-group conflicts etc.) and to maintain human relations.

(VI) Change in the job Assignment: Training is also necessary when the existing employee is promoted to higher level in the organisation and when there is some new job or occupation due to transfer. Training is also necessary to equip the old employees with the advanced disciplines, techniques or technology.

The need for training also arises due to:

Increased productivityImproved quality of the product/services.Help a company to fulfil its future personnel needs.Improve organisational climate.Improve health and safety.Prevent obsolescence.Effect the personal growth.Minimise the resistance to change.

The factors discussed above are mostly external factors and they are beyond the Personnel Manager’s control. These factors often determine the success of training objectives.

18

2.7 Training Objectives:

Generally line managers ask the Personnel Manages to formulate the training policies. The Personnel Managers formulates the following training objectives in keeping with the Company’s goals ad objectives:

To prepare the employee both new and old to meet the present as well as the changing requirements of the job and the organisation.

To prevent obsolescence.

To impart the new entrants the basic knowledge and skill they need for an intelligent performance of definite job.

To prepare employees for higher level tasks.

To assist employees to function more effectively in their present positions by exposing them to the latest concepts, information and techniques and developing the skills they need in their particular fields.

To build up a second line of competent officers and prepare them to occupy more responsible positions.

To broaden the minds of senior managers by providing them with opportunities for an interchange of experiences within and outside with a view to correct8ing the narrowness of outlook that may arise from over specialisation.

To develop the potentialities of people for the next level job.

To ensure smooth and efficient working of a department.

To ensure economic output of required quality.

To promote individual and collective morale, a sense of responsibility, co-operative attitudes and a good relationships.

19

2.8 Principles of Training:

Providing training in the knowledge of different skills is a complex process. A number of principles have been evolved which can be followed as guidelines by the trainees. Some of them are as follows:

(1) Motivation: As the effectiveness of an employee depends on how well he is motivated by management, the effectiveness of learning also depends on motivation. In other words, the trainee will acquire a new skill or knowledge thoroughly and quickly if he or she is highly motivated. Thus, the training must be related to the desires of the trainee such as more wages or better job, recognition, status, promotion etc. The trainer should find out the proper ways to motivate experienced employees who are already enjoying better facilities in case of re-training.

(2) Progress Information: It has been found by various research studies that there is a relation between learning rapidly and effectively and providing right information specifically, and as such the trainer should not give excessive information or information that can be misinterpreted. The trainee also wants to learn a new skill without much difficulty and without handing too much or receiving excessive information or wrong type of progressive information. So, the trainer has to provide only the required amount of progressive information specifically to the trainee.

(3) Reinforcement: The effectiveness of the trainee in learning new skills or acquiring new knowledge should be reinforced by means of rewards ad punishments. Examples of positive reinforcement are promotions, rise in pay, praise etc. Punishments are also called negative reinforcements. Management should take care to award the successful trainees.

The management can punish the trainees whose behaviour is undesirable. But the consequences of such punishments have their long-run ill effect on the trainer as well as on the management. Hence, the management should take much care in case of negative reinforcements.

20

(4) Practice: A trainee should actively participate in the training programmes in order to make the learning programme an effective one. Continuous and long practice is highly essential for effective learning. Jobs are broken down into elements from which the fundamental physical, sensory and mental skills are extracted. Training exercises should be provided for each skill.

(5) Full Vs. Part: It is not clear whether it is best to teach the complete job at a stretch or dividing the job into parts and teaching each part at a time. If the job is complex and requires a little too long to learn, it is better to teach part of the job separately and then put the parts together into an effective complete job. Generally the training process should start from the known and proceed to the unknown and from the easy to the difficult when parts are taught. However, the trainer has to teach the trainees based on his judgement on their motivation and convenience.

(6) Individual Differences: Individual training is costly, and group training is economically viable and advantageous to the organisation. But individuals vary in intelligence and aptitude from person to person. So the trainer has to adjust the training programme to the individual abilities and aptitude. In addition, individual teaching machines and adjustments of differences should be provided.

21

2.9 Areas of Training:

Organisation provides training to their employees in the following areas:

(1) Company policies and procedures;(2) Specific skills;(3) Human relations;(4) Problem solving;(5) Managerial and supervisory skills; and(6) Apprentice training.

(1) Company Policies and Procedures: This area of training is to be provided with a view to acquainting the new employee with the Company Rules, Practices, Procedures, Tradition, Management, Organization Structure, Environment Product/Services offered by the company etc.

This acquaintance enables the new employee to adjust himself with the changing situations. Information regarding company rules and policies create favourable attitudes of confidence in the minds of new employee about the company and its products/services, as well as it develops in him a sense of respect for the existing employees of the company and the like. The company also provides first hand information to the employee about the skills needed by the company, its development programmes, quality of products/services and the like. This enables the new employees to know his share of contribution to the organisation’s growth and development.

(2) Training in Specific Skills: This area of training is to enable the employee more effective on the job. The trainer trains the employee regarding various skills necessary to do the actual job. For example, the clerk in the bank should be trained in the skills of making entries correctly in the edge, skills and arithmetical calculations, quick comparison of figures, entries and the like. Similarly, the technical officers are to be trained in the skills of project appraisal, supervision, follow-up ad the like.

22

(3) Human Relations Training: Human relations training assume greater significance in organisations as employees have to maintain human relations not only with other employees but also with their customers. Employees are to be trained in the areas of self-learning, interpersonal competence, group-dynamics, perception, leadership, styles, motivation, grievance redressal, disciplinary procedure, and the like. This training enables the employees for better team work, which leads to improved efficiency and productivity of the organisation.

(4) Problem Solving Training: Most of the organisational problems are common to be employees dealing the same activity at different levels of the organisation. Further some of the problems of different managers may have the same root cause. Hence, management may call together all managerial personnel to discuss common problems so as to arrive at effective solutions across the table. This not only helps in solving the problems but also serves as a forum for the exchange of ideas ad information that could be utilised. The trainer has to organise such meetings, train and encourage the trainees to participate actively in such meetings.

(5) Managerial and Supervisory Training: Even the non-managers sometimes perform managerial and supervisory functions like planning, decision-making, organising, maintaining inter-personal relations, directing and controlling. Hence, management has to train the employee in managerial and supervisory skills also.

(6) Apprentice Training: The Apprentice Act, 1961 requires industrial units of specified industries to provide training in basic skills and knowledge in specified trades to educated unemployees/apprentices with a view to improving their employment opportunities or to enable them to start their own industry. This type of training generally ranges between one year to four years. This training is generally used for providing technical knowledge in the areas like trades, crafts etc.

23

2.10 TRAINING METHODS:

As a result of research in the field of training, a number of programmes are available. Some of these are new methods, while others are improvements over the traditional methods. The training programmes commonly used to train operative and supervisory personnel are discussed below. These programmes are classified into on-the-job and off-the-job training programmes.

Training Methods

24

On-the-job Methods Off-the-job Methods

Job rotationCoachingJob Instruction orTraining through Step-by-stepCommittee Assignments

Vestibule training Role playing Lecture Methods Conference or Discussion Programmed Instruction

On-The-Job Training Methods:

This type of training, also known as job instruction training, is the most commonly used method. Under this method, the individual is placed on a regular job and taught the skills necessary to perform that job. The trainee learns under the supervision and guidance of a qualified worker or instructor. On-the-job training has the advantage of giving first hand knowledge and experience under the actual working conditions. While the trainee learns how to perform a job, he is also a regular worker rendering the services for which he is paid. The problem of transfer of trainee is also minimised as the person learns on-the-job. The emphasis is placed on rendering services in the most effective manner rather than learning how to perform the job. On-the-job training methods include job rotation, coaching, job instruction or training through step-by-step and committee assignments.

(A) Job Rotation: This type of training involves the movement of the trainee from one job to another. The trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. Though this method of training is common in training managers for general management positions, trainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to the trainer to understand the problems of employees on other jobs and respect them.

(B) Coaching: The trainee is placed under a particular supervisor functions as a coach in training the individual. The supervisor provides who feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares some of the duties and responsibilities of the coach and relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom or opportunity to express his own ideas.

(C) Job Instructions: This method is also known as training through step by step. Under this method, trainer explains the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee.

(D) Committee Assignments: Under the committee assignment, group of trainees are given and asked to solve an actual organisational problem. The trainees solve the problem jointly. It develops team work.

25

Off-the-Job Methods:

Under this method of training, trainee is separated from the job situation and his attention is focussed upon learning the material related to his further job performance. Since the trainee is not distracted by job requirements, he can place his entire concentration on learning the job rather than spending his time in performing it. There is an opportunity for freedom of expression for the trainees. Off-the-job training methods are as follows:

(A) Vestibule Training: In this method, actual work conditions are simulated in a class room. Material, files and equipment those are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semi-skilled jobs. The duration of this training ranges from days to a few weeks. Theory can be related to practice in this method.

(B) Role Playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. This method of training involves action, doing and practice. The participants play the role of certain characters, such as the production manager, mechanical engineer, superintendents, maintenance engineers, quality control inspectors, foreman, workers and the like. This method is mostly used for developing interpersonal interactions and relations.

(C) Lecture Method: The lecture is a traditional and direct method of instruction. The instructor organises the material and gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and create interest among the trainees. An advantage of lecture method is that it is direct and can be used for a large group of trainees. Thus, cost and time involved are reduced. The major limitation of the lecture method is that it does not provide for transfer of training effectively.

(D) Conference or Discussion: It is a method in training the clerical, professional and supervisory personnel. This method involves a group of people who pose ideas, examine and share facts, ideas and data, test assumptions, and draw conclusions, all of which contribute to the improvement of job performance. Discussion has the distinct advantage over the lecture method in that the discussion involves two-way communication and hence feedback is provided. The participants feel free to speak in small groups. The success of this method depends on the leadership qualities of the person who leads the group.

26

(E) Programmed Instruction: In recent years this method has become popular. The subject-matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to Smore complex levels of instruction. The trainee goes through these units by answering questions or filling the blanks. This method is expensive and time consuming.

27

28

 

   

Dialforhealth has pioneered organized pharmaceutical retailing. Headquartered at Ahmedabad, Dialforhealth is setting up a chain of professionally managed Pharmacy stores across the country.

 

29

3.1 Dialforhealth into organized Pharmaceutical Retailing:

Dialforhealth India Ltd (DFH), an ISO 9001:2000 organization has pioneered organized pharmaceutical retailing and IT based initiatives. Headquartered in Ahmedabad along-side Zydus Towers, DFH is setting up a chain of professionally managed Pharmacy stores in Mumbai and Pune.

The need for the chain-of-Pharmacy initiative was felt due to basic service-gaps in the prevailing pharmaceutical retailing scenario. The no. 1 among these is the increasing menace of look-alike spurious brands, well documented by an India-Today report [Jan 29, 2001]. The company plans to bridge this gap through its 'Good Purchasing Practices', e.g. buying from wholesalers authorized by manufacturing companies of repute. The next big issue is of proper storage temperature, as most antibiotics & vitamins based formulations and all capsules are required to be stored below 30oC according to the Drugs & Cosmetics Act, 1940, else they may lose potency. Dialforhealth pharmacies are air-conditioned and have laid down storage areas for different drugs as per the stipulated storage temperatures. Other issues like overcharging [mostly in disguise of local taxes] and substitution [selling a substitute of what the doctor has prescribed] are being taken care of.

Buying medicines has never been an experience as it is always need based. Dialforhealth wants to add service orientation by offering ambience & care to its customers. Branded as 'dialforhealth: A healthy experience at no extra cost', the name 'dialforhealth' is suggestive of the additional facility of telephonic orders, which are home-delivered at no extra cost within 3km from the pharmacy. In addition, dialforhealth pharmacies also offer free routine check-ups e.g. weight, blood pressure, body-fat content etc to regular customers.

DFH started its operations by opening of 2 pharmacies in Mumbai in the month of May 2001. The chain has ever since been expanding in a phased manner. The period between Dec 2001 and Feb 2002, saw the DFH team go all out as they opened 3 pharmacies in Dec. and subsequently another 4 in Feb, 2002. March witnessed the launch of Dialforhealth's first store in Pune. The responses the pharmacies are receiving are indeed encouraging. Introduced for the first time to the concept of quality service in medicine buying, customers are not just happy but rather delighted. The additional healthcare benefits being provided by the pharmacies like free diagnostic camps where blood pressure, blood sugar, body-fat content check-up is done, leaves the customers impressed. The pharmacies also provide services like detailed information on customer queries pertaining to healthcare needs and also arranges for appointments with doctors.

30

Customers also appreciate the auto-refill facility provided by DFH, wherein medicines are delivered to them at regular intervals. This service removes the hassles of one having to remember to purchase fresh stock of medicines or finding that one is out of medicines. Customers who take medicines regularly like diabetic, high blood pressure patients find this service very useful.

In today's competitive markets, it is service, especially service with a smile, that is the differentiating factor and which decides who the winner would be. A customer visiting a DFH pharmacy is genuinely surprised to find friendly pharmacists greeting her with a smile. Medicines are not just sold at DFH pharmacies, rather they are dispensed in the right manner, with the patient being educated about the dosage and do's and don'ts while on medication. Should the customer have more queries, detailed information is provided to her.

Dialforhealth is presently focusing on Mumbai for its retail operations. It has ambitious plans of expanding its services to newer areas of Mumbai and to larger sections of the society. On the operational front, DFH is moving towards centralized purchases to realize economies of scales. This will also improve the service of the pharmacies ensuring that the goods reach the shelves at the right time.

When it comes to systems and operations, Dialforhealth is ensuring that the best management practices are in place. Dialforhealth stands for quality products with quality service, which makes it a healthy experience at no extra cost for the customers.

 

3.2 About Dialforhealth:

31

Dialforhealth Pharmacies are fully air-conditioned Pharmacies stores that follow international regulatory standards for the scientific storage of drugs. The stores are equipped with modern technologies & operated by professionally trained Pharmacists to provide excellent customer service. Fully computerized operations help the stores to achieve global standards of providing customer service with precision & pride.

Dialforhealth India Limited – a 100% subsidiary of Zydus Cadila, provides forward integration in the areas of distribution & E-commerce by setting up the first organized pharma chain in the country.

The need for the chain-of Pharmacy initiative was felt due to basic service-gaps in the prevailing pharmaceutical retailing scenario. The main reason being, the increasing menace of look-alike spurious brands, which has been well documented by an India Today report. The company plans to bridge this gap through its ‘Good Purchasing Practices”. Of buying from wholesalers who are authorized by manufacturing companies of repute. The next big issue is of proper storage temperature. Most antibiotics & vitamin based formulations & capsules are required to be stored below 300 C according to the Drugs & Cosmetics Act,1940, otherwise they may tend to lose potency. Therefore, DFH has invested in air-conditioning its pharmacies & has laid down storage areas for different drugs as per the stipulated storage temperatures. Other issues like overcharging & substitution are being taken care of by investing heavily in computerized systems, staff-training & large range of inventory. The staff also re-emphasizes the doctor’s instructions to the consumer as buying medicines has never been an experience as it is always need based.DFH adds a service orientation by offering ambience & care to its customer .Branded as ‘Dialforhealth-A healthy experience at no extra cost’, the name is suggestive of the additional facility of telephonic orders, which is home-delivered at no extra cost within 3 km radius.

Starting out with ten pharma retail outlets under the brand name ‘Dialforhealth’ --A healthy experience at no extra cost’ in Mumbai & Pune, Dialforhealth plans to expand its network in other parts of the country. Specializing in Medicines, Surgical, Personal Care, Hygiene & cosmaceuticals, Dialforhealth is positioned as a store for the family Healthcare & is aimed at the middle & upper end of the mass market.

In addition to catering to the medicinal needs of the customers, the pharmacies also sell personal hygiene products, cosmetics and nutritive products, books on healthcare & health greeting cards. The responses that the pharmacies are receiving are indeed encouraging. Introduced for the first time to the concept of quality service in medicine buying, customers are not just happy rather delighted. As an organized pharmacy chain, we not only dispense medicines, but also are actively helping people lead better lives.

We place special emphasis on providing comprehensive services like free diagnosis, health promotion & disease prevention. Some of the services we provide to our customers are:-

32

Selling genuine medicines sourced from authorized distributors. Free home delivery facility on request. Auto-refill mechanism which ensures that our customers never run out of their

regular medicines. Dialforhealth Care programme- Diagnostic camps at regular intervals for our

customers where various health parameters like Diabetes, Hypertension, Bone density, Dental & Asthma are checked. This service is FREE for our members.

Special discounts in partner pathology labs & hospitals. Making medication compliance much easier by providing information on drugs &

diseases. Free eye check up & supply of spectacles at discounted price has been appreciated

by most of our customers.

Dialforhealth is the first chain of organized pharmacies to be certified with the ISO 9001: 2000 certificate. Amongst the first ones in the retail industry in India to get this prestigious certificate, the certification reaffirms the organization’s commitment towards ‘QUALITY CUSTOMER SERVICE’ .Quality Management System is a mindset at Dialforhealth for achieving Customer Focused Quality, the focus being both on internal & external customers. We believe that everyone in our organization strives to understand what our customer’s expectations are & we meet those expectations every time, on a consistent basis. Understanding & meeting customer expectations is a challenging proposition & requires systems & processes that support continuing process towards the goal of meeting customer expectations the first time, every time.

ISO standards helps us in designing the best of systems & processes to ensure that we

have the best business practices that are understood, implemented & improved upon.

Business wisdom says that fulfilled staff & contented clients spell profitable business. ISO helps us to achieve customer satisfaction through the use of management principles, promotion of continual improvement, effective monitoring of customer satisfaction & by taking a factual approach to decision making. We believe that this will lead to satisfied customers who will want to continue doing business with us. A satisfied customer is the least expensive way to generate revenue & profit.

FRANCHISEE OPERATIONS:

33

The Franchisee initiative launched a year back has strong network of satisfied franchisees in Maharashtra & Gujarat. Our franchisee network spreads across Mumbai giving us a significant presence in the retail healthcare sector. Similarly we have expanded the franchise network in Gujarat’s major cities like Baroda, Surat, Ankleshwar & Bharuch.

Dialforhealth imparts its expertise to other retail pharmacies through its franchisee operations. Unlike others, Dialforhealth targets & supports the existing pharmacy as the Franchisee. It has its own team of in-house designers & software engineers who provide 100% solution for the successful retail management. Currently, an existing Dialforhealth Pharmacy & Franchisee establishments offer the following to their potential

Membership Card Free

Health Checkup Camps

Free Home Delivery

Free Entry to special events

Discount at friendly establishments

Customer Loyalty Program

MEMBERSHIP CARD: A BONQUEST OF BENEFITS:

34

Dialforhealth provides a personalized membership benefit card to its potential customers, Customer can get the card once they make purchase worth Rs. 200/- at any of the Dialforhealth outlet.

DIALFORHEALTH MEMBERS CAN AVAIL THE FOLLOWING BENEFITS:

Free entry into various health check up camps conducted by Dialforhealth

35

Handsome discounts at various Hospitals, Pathology Labs and Nursing Homes listed under the program

Free Entry to Events organized by the Dialforhealth such as Guest Lectures by the

eminent doctors on various healthcare topics.

Free information on drugs, disease & other health related queries.

CUSTOMER LOYALTY PROGRAM:

In today’s increasingly competitive markets, building customer loyalty & retailing profitable customers is a critical component for success. Our approach to customer care leads to customer satisfaction which ensure loyalty & a long relation.

TRAINING & DEVELOPMENT:

Dialforhealth specialized team provides complete training modules to its Franchisee staff to ensure that the services provided meet the local & FDA regulatory requirements & that customer issues are easily solved. Training acts as an excellent tool for Customer Relation Management aspects like customer satisfaction, customer loyalty, customer relation etc.

MARKETING SOLUTION:

Marketing is a significant aspect in today’s highly competitive retail business. Our competency in Marketing Management is directed at enhancing foot falls, customer retention resulting into higher sales & profits. They identify the target audience with the use of exhaustive marketing research; maintain customer data for various promotional activities.

JOINT VENTURES:

Having established itself as a well known Pharma Retail Chain ‘ Dialforhealth ‘ entered into the expansion mode through the expansion of its Franchisee network. Under its ambitious expansion plan, ‘ Dialforhealth ‘ has signed a joint venture with ‘ Greencross

36

Healthcare Pvt. Ltd. ‘ for Maharashtra & a similar joint venture has been signed with ‘ Unity Chemists & Druggists Pvt. Ltd. ‘ for the state of Gujarat. Dialforhealth is seeking partners for the joint ventures in other states under its expansion program.

OBLIGATION OF FRANCHISEE AND FRANCHISER:

Premise: The ideal premises should be in the range of 300-500 super built up area, should be located on ground floor, in a prime location of city/Town/Colony.

Accessories: Basic requirements are a refrigerator & one computer with printer. Franchisee should be prepared to update their infrastructure & accessories as per the future requirements.

Dialforhealth team will visit the franchisee to okay the location/infrastructure.

Dialforhealth team will assist the franchisee in Marketing & Planning strategy & will coordinate through the Operation Executive and Field Staff.

Dialforhealth will provide its brand name and its expertise in setting up ‘A Total Healthcare Shop.

Dialforhealth team will assist the franchisee in setting up the mechanism for:

Free Home delivery Auto Refill Facility CLP Program Membership Expansion Organizing Health Check up Camps

Marketing Support: Franchiser will extend excellent marketing support and its brand name.

Franchisee Fee: In return of marketing service and providing the brand name etc. the franchisee is obliged to pay Rs. 3000/- per month to franchiser.

3.3 Objective of Dialforhealth:

Dialforhealth aims to become a leading healthcare service provider by combining technology & service & by extending the same to a large section of the society.

37

Dialforhealth is committed to maintain service & quality standards in all its operations.

Dialforhealth strives to continually invest in up gradation of technology & in the training & development of its team members.

No substitution- They honor every prescription that comes to us

Best purchase practices. We purchase only from authorized, company – approved distributors

Providing a clean, hygiene & a healthy pharmacy ambience

Proper storage conditions to store different class of medicines & products

3.4 PHARMA RETAILING – PRESENT SCENARIO:

An increase in the overall retail square footage, the emergence of super malls and hypermarkets, and changing consumer habits have all contributed towards difficult times for the small retailers. There are many small retailers who not only have declining consumer patronization and increasing vacancy rates, but also looks physically workout .Existing small retailers faces following challenges.

Fast changing market scenario places big difficulties for the retail business today.

Large corporate giants have entered into the retail pharmacy business, which provide the barriers for the local pharmacist

Small retail stores are being overtaken by big malls and supermarkets with latest technologies and quick service.

Customer footfalls are reduced as the customers are shifting to bigger competitors with better offering at low prices

Uncertainty in the business growth & income

Heavy expenditures with diminishing returns.

Low returns on investments for the small retailers

Heavy inventory costs & expiry/breakages risk

HIGH CUSTOMER EXPECTATIONS:

Present economic conditions have made the customer price sensitive & quality conscious. Growing competition, forces the retailers to provide not only more convenience but better

38

services. Availability of multi choices for a product, makes customers more choosy. Customers demand the latest information about healthcare & range of other products. An established & well known brand name is necessary to attract the customers & earn the customer loyalty.

3.5 PRODUCT OFFERING:

Medicines & Cosmetics

Nutritive products Personal hygiene products

Healthcare books & cards

3.6 SERVICE OFFERING:

Membership scheme

Free home delivery up to 3 kms. Radius

Auto refills

Appointment with doctors

Providing information on healthcare

Health camps arranged at regular intervals

Qualified pharmacists to dispense medicines

A Customer Loyalty Programme that rewards customers for regular purchases

3.7 STRENTHS:

Backed by leading pharma group having five decades of experience in the healthcare industry

39

An ISO 9001:2000 certified company

A youth enthusiastic & an IT SAVVY TEAM

First mover advantage in this sector of the retail industry

A professionally managed organization employing scientific methods & latest technologies to provide better customer service.

A huge number of loyal customer base built over the last three years

Large group of satisfied franchisees

3.9 USP:(UNIQUE SELLING PROPASAL)

[1]

40

 Dialforhealth is suggestive of the additional facility of telephonic orders, which are home-delivered at no extra cost within 3km from the pharmacy. The photo shows a Dialforhealth employee receiving a telephonic order with smile. 

[2]

   

41

 

Dialforhealth India Limited is ISO 9001:2000 company. The employees of Dialforhealth Pharmacy are professionally trained to greet you with quality service. Each store has a qualified Pharmacist to dispense your prescription.   

  

[3]

42

 

Teenage. Adults. Senior Citizens. Dialforhealth is a healthy experience at no extra cost for all! The photo shows customers at their neighboring Dialforhealth Pharmacy.

   

[4]

 

43

 Dialforhealth Pharmacy store has various sections for ease of locating products and thus saving time.

Prescription: Where the customer's prescription is dispensed with the help of a qualified Pharmacist.

Self Help: The customer can choose and pick personal hygiene products and other OTC (over the counter) products just like any other super store.

Money Savers: All OTC products are displayed as per company promotional schemes such as 'Buy One Get One Free', free gifts or other incentives.

Show You Care: It is an innate desire of all of us to receive care from our beloveds. Dialforhealth helps you to show you care through Get Well Soon greeting cards and books on general health, childcare, pregnancy and many others.

Examine Yourself: Aren't you eager to know about your body? 'Examine Yourself' section helps you to know your weight, height, body fat and much more!

44

Health Desk: Infotainment! Yes, information along with entertainment. A multimedia laden Info Kiosk renders prosaic health information with high interactivity. A must see feature at Dialforhealth Pharmacy. 

  [5]

 

A customer helping himself at 'Self Help'.  

  

[6]

45

     

   

    

  Dialforhealth employees extending help to a customer know his Body Fat. The instrument calculates Body Fat in Kilograms as well as in percentage.  

     

 

  [7]   

  

 

46

   

     

  Good dispensing practices are followed at Dialforhealth Pharmacy stores. A Pharmacist signing the bill of a customer.

 

     

     

3.10 ONLINE PRESENCE:

47

Dialforhealth also developed a whole range of net related activities based on the customers requirement with the website www. dialforhealth.net

Explicit coverage of common ailments, diseases, and first aid on the website

Detailed health information for women, men, children and senior citizens

Huge database of doctors, hospitals, blood banks, diagnostic centers and old age homes are available on the website online health calculators for customers to calculate their health measures.

48

4.1 STORES NAME:

At Ahmedabad there are 17 stores of Dialforhealth .They are as follows.

49

1. Gurukul store

2. Navarangpura store

3. Ambawadi store

4. Vastrapur store

5. Jodhpur store

6. Chandkheda store

7. Bopal store

8. Naranpura store

9. Sola store

10. Usmanpur store

11. Gandhinagar store

12. Vastrapur store

13. Thaltej store

14. Dharnidhar store

15. Bodakdev store

16. Anand Nagar store

17. Central store

4.2 TRAINING PARAMETERS:

Following points are required for working properly at any stores.

50

1. Customer service

2. Personal grooming

3. Store layout

4. Communication skill

5. Interpersonal skill

6. Counseling ability

7. Computer skill

8. Telephone etiquette

1. Customer service:

Always welcome a customer with a smile.

Receive the prescription

If any doubts clarity with concerned authority.

In case the customer has to wait, please tell him that you will be attending him soon.

Expiry date, batch no.’ MRP, Quantity issued must be checked.

Check for the availability of medicines.

In case of non-availability offer them substitute or free home delivery.

Inform the bill amount &take the consent.

Raise the bill.

Every bill should have Patient name, Dr.’s name & Pharmacist’s signature

Medicines can be returned with in one month only & you must insist for the original bill while returning the same.

51

Do not make a false promise. If you have promised some service to customer you must fulfill it.

Listen patiently if the customer has some complaint and suggestions.

Do not argue with customers.

Keep your knowledge of medicines updated.

Handle the computer and software application with care.

Take the medicine from racks

Handover the medicines packet.

Finally say “Thank You”.

Apologize for the inconvenience.

Inform them about schemes, and free home delivery.

2. Personal grooming:

Pharmacist’s attire has to be smart so wear Apron always.

He should be reliable.

He should be responsive, confident, caring & have good impression.

3. Store layout:

52

Maintain the ambience and cleanliness in pharmacy.

Always arrange the racks and drawers same day.

Check the stocks as per the list provided every month and complete the process with in specified period.

Cross check the items with regard to item name and quantity with the items issue list and acknowledge the same.

Maintain the cleanliness of pharmacy with regard to racks cleaning, stock arrangement in racks glasses cleaning A/C dusting and computer dusting.

Daily rack wise verification of fast moving items.

4. Communication skill:

Able to speak on a professional level with patients, peers and doctors.

Able to communicate well with customers and staff members.

Use a positive tone of voice.

Make it persuasive by enthusiasm

Present your ideas in an orderly manner

Empathize all the time

Be an active listener

5. Interpersonal skill:

They must have interpersonal skill as they deal with doctors, patients and staff members on a daily basis.

6. Counseling ability:

53

A pharmacist should be able to counsel patients on how their prescribed drugs work and what to expect while talking them.

They act as educators to the patient and help him take medicines effectively.

7. Computer skill:

A good knowledge of handling computer hardware as well as software helps you run the job efficiently.

8. Telephone etiquette:

Answer the phone promptly.

Be positive, warm and friendly.

Use customer’ name more often during the call.

Keep note pad, pen etc. ready for talking notes or the order from the customer.

Do not interrupt the customer when he is talking

Collect all possible information.

Listen carefully and patiently.

Provide accurate information.

Do not make any false promise.

Speak clearly.

Hang up immediately when the call is over.

Do not keep the customer waiting while on call.

In case a customer has to complain let him finish first, understand the matter, talk in calm manner, empathize with him and show that you want to help him.

Take time to react and assure him that you will resolve the matter.

4.3 ANALYSIS:

54

On the basis of survey and also on the basis of above parameters we gave rates to different stores.

1. Poor2. Satisfactory3. Good4. Very good5. Excellent

55

Stores Customer service

Personal grooming

Store layout

Communication skill

Gurukul store 4 3 5 4Navarangpura store 5 3 5 3Jodhpur store 2 3 5 2Bopal store 3 3 5 3Usmanpur store 4 3 5 4Gandhinagar store 3 4 5 3Dharnidhar store 2 3 5 3

Store analysis

0123456

Gur

ukul

sto

re

Jodh

pur

sto

re

Usm

anp

ur

Dha

rnid

har

Stores name

Rat

es Customer

Personal

Store

Communicationskill

56

Stores Interpersonal skill

Counseling ability

Computer skill

Telephone etiquette

Gurukul store 3 4 4 5Navarangpura store

3 5 4 5

Jodhpur store 3 1 2 4Bopal store 3 3 4 5Usmanpur store 3 5 4 5Gandhinagar store 3 4 4 5Dharnidhar store 3 3 4 5

Store analysis

0123456

Gur

ukul

sto

re

Nav

aran

gpur

a

Jodh

pur

stor

e

Bop

al s

tore

Usm

anpu

r

Gan

dhin

agar

Dha

rnid

har

store name

Rat

es

Interpersonal skill

Counseling ability

Computer skill

Telephoneetiquette

4.4 CONCLUSION-

57

On the basis of above analysis we come to following conclusion that training is need in following areas.

Customer service:

Welcome a customer with a smile.

In case the customer has to wait, please tell him that you will be attending him soon.

Listen patiently if the customer has some complaint and suggestions.

Do not argue with customers.

Apologize for the inconvenience.

Personal grooming:

Pharmacist’s attire has to be smart so wear Apron always.

Store layout:

Maintain the ambience and cleanliness in pharmacy.

Always arrange the racks and drawers same day.

Communication skill:

Able to communicate well with customers and staff members.

Use a positive tone of voice.

Computer skill:

A good knowledge of handling computer hardware as well as software helps you run the job efficiently.

Telephone etiquette:

58

Answer the phone promptly.

Be positive, warm and friendly.

Listen carefully and patiently.

4.5 BIBLIOGRAPHY:

59

1. WWW.ZYDUSCADILA.COM

2. WWW.DIALFORHEALTH.NET

3. WWW.GOOGLE.COM

60