HAMDARD CASE STUDY

PRESENTED BY: GROUP 4 POOJA SINGH-26 RACHIT KHANNA-29 PRASHANT KUMAR-27 PRINCE RANJAN-28 RAHUL RANJAN-30

Overview Hamdard Laboratories (India), is an Unani and Ayurvedic pharmaceutical company in India. It was established in 1906 by Hakeem Hafiz Abdul Majeed in Delhi, and became a waqf (non-profitable trust) in 1948. It has a range of 300 products. It has a 190 crore flagship brand Rooh Afza.

Challenges for Hamdard Sales team numbers didn't match with the finance team numbers. Competition from brands like Dabur and emami. 3 Tier distribution channel. 7-8% profit to primary distributors. It can keep only 15% of revenues to reep back in business. 545 heavy SKUs which were difficult to handle.

Modifications
Hired Rakesh Nayyarand trained CA from UK as the director of HNF. Straddle 545 SKUs by creating 2 laterals H1 for FMCG and H2 for traditional medicines. Distribution channel was reduced to 2 tier by which they started saving 4% every year. Hired Shaikh Zia Ahemed, Chief Sales Officer, a 2010 and Deepak Joshi, Head supply chain. which helped them in understanding the customer better. Intorduction to ERP for C&Fas and Stockists to increase visibility.

Concepts

Defensive Strategy-Turnaround Hamdard tried to transform to learner and do it more effective business. It tried to reverse the negative trend by bringing changes in the various process. They brought various approaches to find out who will manage various processes.

Growth Strategy Hamdard Selected growth strategy to increase the market share . Significant increase in performance objectives. Hamdard tried to implement this strategy to increase their sales in south and the eastern region.

QUESTIONS
Do you think the wheels will turn ?A traditional family run business, which functions as a trust ,is waking up to a some agile processes in the face of stiff competition from the likes of Dabur, Emami and a swathe of unorganized manufacturers of Unani and ayurveda medicines. With scale, will it attempt at raising capital from the market? Justify

Do you think the wheels will turn ?A traditional family run business, which functions as a trust ,is waking up to a some agile processes in the face of stiff competition from the likes of Dabur, Emami and a swathe of unorganized manufacturers of Unani and ayurveda medicines. Yes, think the wheels will turn for Hamdard which functions as a trust. Hamdard has a strong brand equity with the brands like Rooh Afza. There reduce from 3 tiers layers to 2 tiers layers. From this they can come more closer to their customers, they can plan there production accordingly.

 They saved 4% annually i.e 12 crores which they can invest on new product launch. They hired professionals from pharma and FMCG background which will improve the product quality. They can come with ideas of new product launch in the southern and the eastern region. They can go for merger and acquisition with small scale industries to increase there revenues in south.

With scale, will it attempt at raising capital from the market? Justify No, with scale they will not attempt at raising capital from market. Hamdard donates 85% of their profits to HNF. They can generate revenues or raise capital through opening exclusive stores of hamdard. They can go mergers and acquisitions with operating in different dimension.