CHAPTER 1

INTRODUCTION

1

INTRODUCTION

HOMCO – THE KERALA STATE HOMOEOPATHIC CO-

OPERATIVE PHARMACY LIMITED

Homoeopathy, an alternative medical science is very popular in rescuing medical

sick people to health. It can cure almost all ailments, in the natural way and

without any side effects. Homoeopathy is a system of medicine, in which a drug

and a disease that produce similar symptoms cancel each other out in some way

thereby restoring the patients to, health. This principle of ‘Like can cure like’

forms the basis of Homoeopathy. It is named after the Greek words, ‘Homoeo’

meaning similar and ‘Pathos’ meaning suffering or treatment by the same. This

system of healing was founded by a German doctor, Samuel Christian Hahnemann

(1755). In 1810, he set out the principles of Homoeopathy in his book ‘The

organon of Rationale Medicine.

Homoeopathy though developed abroad, has become an integral part of the

Indian way of life. It is popular among the people partly due to its remarkable

healing capacity and partly because of the belief that its remedies are so refined

that they do not cause any harmful result.

In Homoeopathy, remedy chosen is based on the symptoms as well the character

and temperament of the patient. In short, two persons with same illness might

be offered different remedies based on their individual nature.

The Hahnemann science is a friendly one to human being. It gives prior importance to the ‘suffering individuals as a whole ‘than to the diseased.

2

History of Homoeopathy

The Homoeopathic system of medicine has developed at the end of 18th century

by a German medical doctor, Samuel Hahnemann. During the period of

Hahnemann, many brutal ways were used to treat the patients such as leeching,

cupping, bloodletting and the like. These ways of treatment were so cruel that

they could kill the patient as well.

Hahnemann was disgusted and disappointed with those methods of treatment

and he gave up his medical profession by devoting his full energy and time in

writing and translating works. However, he was deeply interested in Medical

Theory; in 1790 he established the Homoeopathic principles to cure various

diseases. When translating ‘A treatise on the Malaria Medico’ by the Edinburgh

physician, William Cullen, he noticed that the dry cinchona was effective in the

treatment of Malaria. Hahnemann was not satisfied by this statement though it

was true, then all bitter, astringent substances should be effective in the

treatment of Malaria.

Therefore, Hahnemann decided to test on himself with his expectations that the

symptoms of Malaria fever could be cured. This was a part of Hippocrates

teaching from the notion that such symptoms could be an indication that the

body was struggling to overthrow a disease; so, it could help if the symptoms

have to be encouraged. Thus, he formulated the principle of ‘Similia Similibus

Curentur’ Hahnemann named this new found therapy ‘Homoeo’ (similar) ‘Pathy’

(suffering).

In 1835, he went to Paris where he started medical practice to rich and poor alike.

In 1810, Hahnemann published the 1st edition of ‘The Organism of Medicine’

which clearly defined the Homoeopathic Medical Science. In that year, after the

battle of Leipzing, an epidemic of ilypus spread among the defeated cops of

Napoleon. Hahnemann successfully treated 180 men out of which only one died.

This successful treatment further spread the reputation of the Homoeopathy of

Hahnemann.

3

Basic concept of Homoeopathy

The word Homoeopathy is often understood to be synonymous with natural

medicine. In fact, it is a very specific form of medical therapecities which was

discovered by a German physician called Dr. Samuel Hahnemann in 1811. In order

to distinguished this new discipline Allopath.

During Hahnemann’s period medicine was in its primitive stage with frequent use

of bleeding and using leeches to different situations. One of the few medicines

that were very effective was quinine in treatment of Malaria. Hahnemann

decided to experiment by taking quinine to himself. He found himself to develop

the typical relapsing fever of Malaria. Thus he had discovered the science of

Homoeopathy capable of curing Malaria and also produced those medicines to a

healthy person. Homoeopathy means ‘like disease’.

Homoeopathy is particularly effecting in treating chronic illness that do not

respond to conventional treatment, and is also a superb method of self – care for

everyday conditions such as the common cold and flu. The totality of individual is

addressed on all level of existence. Homoeopathic philosophy emphasizes the

dynamic interplay between mental, emotional and physical fitness in sustaining

health.

It is a scientific method of treatment which aims at stimulating the body’s own

healing system. Thus, the immunization mechanism of the body also functions

and integrated the entire functions of the human body systematically preventing

itself against any abnormality in the best possible manner, be it a disease whether

mental or physical.

Each individual is a separate entity having his own peculiar body structure and

soul. The physical, emotional, mental levels, normal habits, etc are not the same

to individuals. These are unique for each one of us.

4

OBJECTIVES OF THE STUDY

• PRIMARY OBJECTIVES

To acquire a basic idea about the Organizational Structure and functional

activities of HOMCO

• SECONDARY OBJECTIVES

1. To analyze the functions of each department.

2. To know the Organizational structure of a Homoeopathic company.

3. To understand the various principles and techniques adopted by the company to achieve the organizational goals.

4. To understand the pattern of organizational culture and industrial climate in production unit.

5. To understand the process of production of Homoeo medicines is being organized in the industry.

5

METHODOLOGY

RESEARCH METHODOLOGY

A research may be defined as, “the systematic objective and exhaustive search for

the study of the facts relevant to any problem in the field of marketing”.

Research is also defined as, “systematic gathering, recording and analysis of data

about problems relating to marketing of goods and services”.

Research is an academic activity and as such the term should be used in a

technical sense. The research includes scientific and inductive thinking and it

promotes the development of local habits of thinking.

Research is an endless thrust for knowledge or unending search for truth. It brings

to light new knowledge or correct previous errors. It is a deliberate effort to

collect information, analyses it, to put it together and to evaluate it. Research

provides the basis for nearly all governmental policies in our economic system.

Methodology is the plan for research project and explaining in detail how data are

collected, analyzed and presented so that they will provide meaningful

information.

Research methodology is a way to systematically solve that research problem. It is

known as the science of studying how research is done scientifically.

The methodology used in this study is exploratory analysis.

6

Sources of data

In this organization study the methodology involves two types of data collection.

They are:

• Primary data

• Secondary data

• Primary data:-

Primary data are those data which are collected from primary sources. These

data are collected from direct observations. A primary data are those data

collected by the investigator himself for the first time and thus they are original in

nature. They are collected for a particular purpose.

In this project, data are collected through interview with the managers, staff and

workers. These data are collected from within the organization.

• Secondary data:-

Secondary data are those data which are collected from secondary sources.

Secondary data are usually in the shape of finished products.

In this project, secondary data are collected from past and present performance

of the company, company magazines and website.

The data is also collected from magazines, journals and websites of the company.

Sampling extend

The present study is based on the analysis of organization and departmental

functions of HOMCO. In this organizational study, it helps to know the

departmental functions like duties, responsibilities of each and every worker,

functions of each departments, etc.

7

CHAPTER – 2

LIMITATIONS

8

LIMITATIONS OF STUDY

• The data are collected through personal interviews; the limitations of personal

interview method are being reflected in this study.

• The management was not ready to reveal there details about them so as to

maintain business secrecy.

• Busy work schedule of the company staff.

9

CHAPTER-3

INDUSTRY PROFILE

10

ABOUT THE INDUSTRY

Homoeopathy is a fast developing system of treatment as an attractive system

with a holistic approach. Dr. Samuel Hahnemann developed this system about

200 years back. In India this system has a history of 150 years only.

Homoeopathy is noted for its qualities like simple, economic, scientific and

without any side effects. Hahnemann concluded that any substance capable of

producing artificial symptoms on healthy individuals could cure the same

symptoms in a natural disease. This forms the basis of the theory of

Homoeopathy ‘Simila Simlibus Curtur’ or let like be treated by like.

The Homoeopathic medicines are also designed to exclude all the side effects and

reactions by minimizing strength and activating the inherent medical properties

by poetizing the same. This system differs in many ways from the conventional

method of treatment.

HOMOEOPATHY IN INDIA

Homoeopathy was brought to India by European Missionaries. But the official

recognition was achieved in 1839 when Dr. John Martin Honing Berger during his

visit to India, treated Maharaja Renjith Singh of Lahore. Thereafter, Homoeopathy

showed a steady growth in India and gained the good will from India’s great

leaders like Mahatma Gandhi, Ravindra Nath Tagore, Mother Teresa, Dr. K. R.

Narayanan, etc.

The Govt. of India constituted a Homoeopathic Pharmacopoeia Committee and

published eight volumes of official Homoeopathic pharmacopoeia of India. Also a

national level drug testing laboratory is functioning at Ghaziabad, New Delhi to

facilitate the entire Homoeopathic treatment.

11

HOMOEOPATHY IN KERALA

Homoeopathy was recognized as an acceptable system of treatment by the

Maharaja of Travancore. A separate department for homoeopathy was

established in Kerala in 1973 and at present, there are 525 dispensaries and 31

Homoeopathic hospitals with 950 beds. There are several homoeopathic

medicine manufacturing units in India.

12

CHAPTER-4

COMPANY PROFILE

13

PROFILE OF HOMCO

“Quality through leadership”

(Logo of the Company)

HOMCO is a joint venture of Homoeopathy and Govt. of Kerala as well as Govt. of

India. HOMCO is established in 1978 at Alappuzha, the ancient city on western

coast of Kerala popularly known as Venice of the east. The main objective of

HOMCO is the manufacturing and sale of Homoeopathic medicines. HOMCO

produces all genuine Homoeopathic Drug maintaining GMP standards. The

HOMCO functions under the administrate control of the Health and Family

Welfare Department Govt. of Kerala through an administrative council appointed

by the Govt. of Kerala.

The HOMCO was registers as a co-operative society under Kerala Co-operative

Societies Act on 11-7-1974 Thiruvananthapuram and started functioning from

14-1-1975. The major shareholders of the pharmacy are Govt. of Kerala and the

rest of its membership is shared among eminent Homoeopaths of Kerala.

SITE OF HOMCO

The manufacturing unit and registered office of HOMCO is located by the side of

NH47, 5km to the north of ancient city of Alappuzha, Nearness to the city and

transportation facilities are advantage to the pharmacy.

THE SERVICE OF HOMCO

The HOMCO meets the entire requirements of medicines to all the hospitals and

dispensaries functioning under the Department of Homoeopathy, Govt. of Kerala,

since 1980. It also supplies medicine to meet open market requirements and

thereby successfully fulfils its dual role. The pharmacy is the approved supplier of

Homoeopathic medicines to different establishments under Department of

AYUSH (Govt. of India), CCRH (Govt. of India), NRHM, ESI corporation and to the

Homoeopathic Department of Tamil Nadu, Orissa, Madhya Pradesh, Chhattisgarh,

Punjab, Rajasthan, Gujarat, Pondicherry, Manipur, Tripura, etc.

14

CAPITAL OF HOMCO

The Kerala State Co-operative Pharmacy Ltd has been registered under Kerala Co-

operative Societies Act in 1974 with an authorized share capital of Rs.10 Lakhs.

The paid up share capital is Rs. 4.14 lakhs only of which 2.55 lakhs in Govt. share

participation. Balance share of Rs.16 lakhs is contributed by the Homoeopathic

practitioners of Kerala(current share capital is Rs. 38.20 akhs by converting grant

to equity, subject to the approval of the General body of society). The cash credit

facility is of Rs.25 lakhs provided by the Alleppy District Co-operative bank is the

working capital.

MANAGEMENT OF HOMCO

As per bye- laws of the society , the management is vested with the Board of

Directors constituted through the election from the shareholders and

nominations from the Govt. The administration of the pharmacy is vested with an

administrative council constituted under the chairmanship of Homoeopathy Govt.

of Kerala. The other members of the council are, Additional secretary, H&FWD

District Medical Officer (Homoeo) Alappuzha and Managing Director of the

pharmacy. The overall administrative control of the pharmacy is with the Govt. in

health and family welfare department.

VISION OF HOMCO

• To be a preferred supplier of Homoeopathic medicines for government as well as

private practioners in terms of quality.

15

MISSION OF HOMCO

• To prepare and process Homoeopathic Medicines and sundries of standard

quality under expert supervision and direction.

• To supply Homoeopathic medicines required for the government institutions and

also to attend the need of members, in respect of prepared medicines, raw

materials and appliances required by them.

• To establish and maintain a medicinal farm.

• To establish institutes to meet the professional needs of the members and to tender expert advice to them.

• To conduct research in Homoeopathy.

COMPANY OBJECTIVES

• To supply Homoeopathic medicines required for the Government institutions and

also to attend to the need of members in respect of prepared medicines raw

materials and appliances required by them.

• To establish institutes or clinic to meet the professional needs of the members

and to the tender expert advice to them.

• To establish and maintain a medical farm.

• To prepare and process Homoeopathic medicines and sundries of standard

quality under expert supervisions and direction.

• To conduct research in Homoeopathy.

16

CORE VALUES

• Benchmark of quality and price for Homoeopathic medicine in India.

• Stands for classical Homoeopathy by observing the principles of Homoeopathy.

• Respect for individual and maintenance of cordial relations – A MODEL

INSTITUTION.

17

PRODUCT PROFILE

HOMCO manufactures a wide range of products in Homoeopathy. It can

complete with other companies in the variety of products. The major products

are Dilutions, Mother tinctures, 50 Millecimal potencies, Triturations, Biochemical

medicines, etc. The followings are the products of HOMCO.

Dilution

3x,6x,12x,3,6,12,30 and 200 potencies are available in 30ml,100ml, and 450ml

packing. 10m, 50m, and CM are available in pills from in 15g, 30g, &300g.

50 Millesimal potencies

50 Millesimal potencies 0/1, 0/3, 0/6, 0/12,0/24 &0/30 are available in pills

from 15gs, 30gm, &300gs.

Mother tinctures

About 300 numbers of mother tinctures are manufactured by HOMCO and

available in 30ml, 100ml, and packing.

Triturations

They are categorized into A to F in order to facilitate the pricing and available

in 20gs, 100gs, &450gs packing.

Bio-combinations

Twenty-eight Bio-combinations are available in 20gs and 450gs packing and in

blister packing.

External Ointments & Oils

Ointments are available in 10gs tube & 450gs container packing. External oils

available in 100ml & 450ml packing.

18

ORGANISATIONAL STRUCTURE OF HOMCO

Figure.3.1

19

CHAIR PERSON

MANAGING DIRECTOR

CHIEF PHARMACY

OFFICER

MARKETING EXECUTIVES

ADMINISTR-ATIVE ASSISTANCE

CHIEF QUALITY CONTROLLER

PRODUCTION SUPERVISOR

STORE SUPDT

SALES REPRESENT-ATIVE

HEAD CLERK

FOREMAN WORKER

WORKER CASHIER TYPIST CLERK

GOVERNING COUNCIL

CHAPTER-5

DEPARTMENTAL DETAILS

20

1. HUMAN RESOURCE DEPARTMENT

2. ADMINISTRATIVE DEPARTMENT

3. FINANCE DEPARTMENT

4. PRODUCTION DEPARTMENT

5. EXCISE DEPARTMENT

6. QUALITY CONTROL DEPARTMENT

7. MARKETING DEPARTMENT

21

1. HUMAN RESOURCE DEPARTMENT

Human resource department is a very important department for any

organization. Without proper utilization of this asset, a company cannot achieve

its goals. Therefore for managing this asset every company has a separate

department for this.

Human resource department is a specialized branch of management, which deals

with the people. The department helps to use human resources in an effective

manner so as to transform them for realizing the objectives of the organization. It

aims at relating people at work with the activities necessary to achieve the goals.

They provide all the welfare measures and provide a good working condition

inside the organization. It basically includes activities such as HR planning, Job

analysis, Job design, Recruitment and selection, Orientation and placement,

Training and development, Performance appraisal, Job evaluation, Employee

remuneration, Motivation and Welfare of employees.

Functions of HRD

The administrative department itself controls the human resource department in

HOMCO. This department is responsible for the satisfactory relation ship between

the organization and the people and also to contribute the formulation of

organization's personal policies and agreement to ensure effective

implementations. The department is required to act as the representative of the

organization in committees appointed by the government.

The administrative department is responsible for maintaining records of the

funds inflows and outflows and outflows from the company.

Providing necessary training for the skill and involvement of the employee.

The head of the administrative department is called Administrative Assistant;

he is the one who controls the functions of the administrative department.

The administrative department decides the payroll.

The head of the administrative department is the one who controls and takes

decisions regarding the human resource in HOMCO.

22

Recruitment

HOMCO consists of 89 employees. Mainly recruitment in HOMCO is done

through professional employment exchange. When the company needs staff

they will post the job profile in the employment exchange and candidates are

selected on merit basis. The selected candidates are interviewed by the

Board of Directors and after that they are introduced to their job profile.

Training and development

Necessary training is being given to the recruited employees for improving

their skills. The employees are given on the job training. The recruited

employees are given training by doctors and they are invited for job when

there are vacancies.

The promotion and salary increment of the officials in the company is

calculated from the experience the official has with the company.

Welfare programs

Every year a tour program is there which includes all employees of

HOMCO. There is a labor welfare fund in case there is some emergency.

Medical checkup for all the employees is also done for their welfare.

ESI act being followed for health and safety.

As the number of employees is low, the HR department functions in a hustle free

manner. The department is headed by Administrative Assistant. A total of 89

employees are working in the HOMCO. HR department is functioning very smooth

as there is employees related problems are less. The HR department deals all the

matters related to the employees. HR department settles all the grievances

properly.

23

Table showing the employee details

Category Permanent Others Total

Chief executive

1 - 1

Doctors 3 - 3

Executives 4 - 4

Middle level

Executive

2 - 2

Clerks& other staff

7 6 13

Firstgrade

worker

10 - 10

Workers 13 37 50

House keeping

2 4 6

Total 42 47 89

Table No. 4.1

24

2. ADMINISTRATIVE DEPARTMENT

Administrative department consist of administrative assistant, an accountant, a

head clerk, a cashier and two typists, one for Malayalam and the other for English

and a peon.

Administrative assistant is the head of the department. He being selected through

promotion post and he should hold a degree in commerce specializing in co-

operation or should be a graduate with HDC or JDC. Charge of general

administrative of the pharmacy in charge of the management review meeting

time to time and shall report to the M.D. He will be in charge of board meeting,

audit, tax matters and reports to govt. He will be PIO of the pharmacy.

Additional charge of accountant. He will be the member of Technical committee,

purchase committee for medical farm. He is authorized for the work distribution

in office section. The Administrative Assistant is authorized to verify the registers

and documents in all sections of the pharmacy to ensure that it is maintained as

per ISO Certification. He will assist Chief Pharmacy Officer in Excise matters. He

will be in charge of planning new projects of CSS and State Plan etc. He will also

hold charge of Finance department.

The next important official in this department after administrative assistance is

the head clerk. He is also selected through promotion post and the minimum

qualification required is S.S.L.C with HDC or JDC. The salary scale of the head clerk

is similar to the salary scale of a U.D clerk in government sector.

The salary scale of clerk is similar to that of an LD clerk in the government sector.

The salary in HOMCO is been decided by the government itself.

25

DEPARTMENT STRUCTURE

Figure 4.1

26

ADMINISTRATIVE ASSISTANT

ACCOUNTANT

HEAD CLERKS

TYPIST MALAYALAM

TYPIST MALAYALAM

CASHIER CLERK (1)

PEON (1) SWEEPER

3. FINANCE DEPARTMENT

Finance is the backbone of every organization. All kinds of business activity

directly or indirectly involve the acquisition and use of funds. Financial

management is the managerial activity, which is concerned with planning and

controlling the firm's financial source. The functions within the finance

department are adverse with the distinction procedure for accounts related to

personal, purchase, store, marketing, contract works, costing, budgeting, central

excise etc. Managing director is the head of the finance department of HOMCO.

The main income is received in the form of both rupee and foreign currency. Each

day dealing are done on the basis of up-to-date currency value in the case of

exporting of products.

DUTIES

Preparation of cash flow budget(monthly, quarterly, yearly)

Preparation of fund flow budget(monthly, quarterly, yearly)

Preparation of capital expenditure budget

Preparation of revenue budget(monthly, quarterly, yearly)

Costing statement data from purchase bill.

Preparing monthly P&L account and B/S.

Receivable payment and payable management.

Dealing with the bank.

Accounting starts with data entering sources of statement data from

purchase bill, etc. maintaining all accounts of the organization.

Informing Managing Director about payments to be arranged.

27

BALANCE SHEET

Particulars Previous Year Current Year

LiabilitiesAmount Rs Amount Rs

Share Capital 3819653 3819653

Depreciation and other funds 6044474.46 6613256.46

Reserves and Surplus 13471618.23 22791237.13

Government grant received: Grant from Government of Kerala Grant from Government of India

4675000 145500

17175000 14550000

Deposits 185796.98 138296.98

CURRENT LIABILITIES

Expenses payable 1447065.50 8445837.20

Other liabilities 112053.40 344426.40

Bank account 380075.09 502137.33

Sundry creditors 3094550.71 4096735.94

Provisions 682353 541504

49151973.57 2539092.00

28

Table no. 4.2

4. PRODUCTION DEPARTMENT

Production denotes the conversion of raw materials to semi finished and

finished products with the help of certain production process. The main aim

of any production system is to produce economically, the goods and services

required by the customer.

The production unit of HOMCO is located by the side of the N.H. 47,

5km north of the ancient city of Alappuzha - the Venice of east. The HOMCO

products has been reaching nation wide and used by thousands of

homeopaths.

Production Planning and Control of HOMCO

Production planning is the process of planning production in advance of

operations, routing the materials and controlling the whole production

according to the plan specified and scheduled.

This department takes care of feeding and supporting materials such as sand,

coal dust etc. to the production. Production is being planned in advance so as

to control excess inventory. This department takes care of supporting the

raw materials. Planning takes place by having knowledge of the

requirement of products and thereby scheduling the process.

29

Particulars Previous Year Current Year

Assets Amount Rs. Amount Rs.

Fixed assets 9963862.72 10357678.52

Fixed assets by utilizing Government Grants

17281372 19395487.00

Investments in shares 39900 39900

Deposits with others 2543643.16 15112866.16Advances 883402.24 1624274.89

Other current assets 7656270.62 29974898.87

Bank account 7119949.44 4733714.64

Cash in hand 20765.39 91352.36

49151973.57 81330172.44

Steps involved in the production

• Production requirement

• Scheduling , Record keeping

• Coordinating

• Follow up

Department Structure

Figure 4.2PRODUCTION

Department structure

Person in charge of or head of the department is the chief Pharmacy Officer. The

qualification of the pharmacy officer is that he should be a graduate in

homeopathy or must hold a diploma in homeopathy. He must have minimum five

-year experience. He is the person who decides everything in the production

department. The shift supervisor should be a chemist with a degree in B - Pham.

30

PRODUCTION DEPARTMENT

PRODUCTION STORE

CHIEF PHARMACY OFFICER

SHIFT SUPERVISOR

FOREMAN

Figure 4.3

HOMCO uses the state of the art technology. It maintains GMP standardization

for all their production process. GMP model machines are used for the

manufacturing of certain medicines. The manufacturing plants are kept extremely

hygienic, so that the medicines are having excellent quality. In the production unit

different departments are functioning under eminent doctors. Therefore at each

stage of the production the keen observation is possible. Right from the beginning

of the production process, strict measures are adopted to maintain the quality of

products, to ensure the effect smooth functioning of production strict supervision

by expert Homeopaths are made available.

Production process of HOMCO

The materials needed for the production process is sent to quality control

department for checking. The materials then reach the production unit .

Preparation made in two forms - Liquid and Solid. Mainly four types of

processes are there for preparing four types of medicines- solutions,

globules, tablets and oils .materials that are soluble in liquid are made to

solid form by the process of titrations. The solutions are prepared in different

dilutions according to the need of the customer.

31

SWEEPERWORKERS CLEANER

Aqua's solutions

The substances that are processed for chemical change and decomposition

when mixed with water and are called aqua's solution.

They are unstable and so they are kept only for some time and are prepared

readily according to the need.

Solutions in alcohol

They are generally made on decimal scale; one part by the weight of the

substance is made into 10 parts by volume, hence equal to the first decimal

solution. This is to be marked ix. If the substance is not soluble into the

preparation of 1 in 10, it may by adding 1 part by weight of the substance to

99 parts by volume of alcohol and this will be marked as to 2 xs and so on.

Bottle washing, drying and labeling in HOMCO

The glass bottle purchased from the suppliers are soaked in water and

detergents, brushed and rinsed in water and again in distilled water. This is then

dried in oven and then labeled before filling.

The production unit of HOMCO includes:

Extra hygienic plant

Different sections under the department headed by eminent doctors

Strict supervision by expert homeopaths

It uses the state of art technology

HOMCO prepare dilutions from indigenously developed and imported back

potencies. Super quality micro filtered extra neutral alcohol is used under strict

supervision of excise department. Mother tinctures are manufactured from crude

drugs produced from our own medicinal plant farm and from reputed Indian and

foreign suppliers.

Indigenously developed automatic potencies provide superior quality dilutions at

different potencies. Best quality imported pharmacy grade lactose is used to

32

prepare bio chemic medicines. For the manufacturing of Titrations, tableting and

granulation, GMP model machines are used in HOMCO. Highly sophisticated

machines are used for blister packing. External ointments of HOMCO are very

useful. They are made from imported petroleum jelly and manufactured in ultra

hygienic conditions. For the manufacturing of globules, pharmacy grade cane

sugar is used.

PROCESS FLOWCHART

Mother Tincture are hydraulic preparations of crude drugs. They are extracted by

two processes:

Maceration

Percolation

• Maceration

33

TESTED HERBS

MOTHER TINCTURE

PRODUCTION AREA

HERB + TENCIUM

STIRRER

FILTERHYDRAULIC PRESS

STORED FOR 2-3 DAYS

TESTED IN LAB FOR

STRENGTH

FILTER

Figure 4.4

The tested herbs are brought to the Mother tincture production area and it is

mixed with Teucium in a container. For 80 liters teucium 8kg herbs are used. This

is then put in a stirrer and is mixed morning and evening for two weeks. This is

then filters through a filter and then passed through hydraulic press. This is then

cooled and stored for 2 to 3 days and is sent to the lab for testing the strength.

• Percolation

34

50 KILOGRAM HERBS

POWDERED IN PULVARISER

MEN STRUM

PERCULATION FILTERS:

FINE SAND, CORE SAND AND GLASS

PIECES

Figure 4.5

50 kilograms of herbs are taken and it is powdered in a pulverizer. This is then

filtered through a sieve. This is then passed through percolator.

The percolator consists of 3 filters. They are;

• Fine sand

• Core sand

• Glass pieces

The production unit of HOMCO includes:-

Extra hygienic plant

Different sections under the department head by eminent doctors.

Strict supervision by expert homoeopaths

It is used the state of the art technology.

The company makes no compromise on the quality at all stage of production.

GMP model machines are used for the process of trituration, tableting and

granulation and highly sophisticated machines are used for blister packing.

Ointments are made from imported petroleum jelly and manufactured in ultra

hygienic conditions. Parma grade cane sugar is used preparing Globules.

Dilutions are prepared from indigenously developed and imported black

potencies. Super quality micro filtered extra neutral alcohol is used under strict

supervision of the Excise department of the company. Mother tinctures are

35

MEDICINES

manufactured from crude drugs powders from own medicinal plant form and

from reputed Indian and foreign supplier.

STORE

The store superintendent should also be a doctor with at least 3 year experience.

Figure 4.6

Supply chain management has become very important in the present day

organization directly affecting the profitability and performance. Excess inventory

can cause financially burden due to working capital requirement. In modern

management dealing of materials is very cautiously done. In HOMCO, stores

superintendent heads store department.

36

STORE SUPDT

SENIOR HAND DRIVERS

This department extra attention in the movements medicines from the store so

that unnecessary flow of medicines is prevented. This department is consultation

with the production department and marketing department manages the

requirements of raw materials. Planned strategies are adopted here so that the

profit graphs goes to higher level. Purchase of raw materials and dispatch of

medicines are handled by store department.

5. EXCISE DEPARTMENT

Excise department is very important in HOMCO. The presence of spiritious

medicines production and its distribution through under the supervision of only

Excise department. Legal Metrology Sanctioned equipments are used to verify the

quality of spirits in the production of spiritual medicines. They cannot pay the

Excise duty in spirit because they have L1 license. Mainly the recruitment is done

through professional employment exchange. The selected candidates are

interviewed and after given on the job training. The whole control of this

department is under Joint Excise Commissioner. This department includes Excise

Preventive Officer, Assistant Preventive Officer, and 2 Excise Guard.

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6. QUALITY CONTROL DEPARTMENT

The production process in the pharmacy is carried out strictly as per

Homoeopathic Pharmacopoeia of India under strict quality control measures.

Every raw material and crude drugs are subjected to lab analysis before being

used in the manufacturing process. The GMP and GLP published by

pharmacopoeia laboratory are implemented in the HOMCO. The HOMCO uses

Extra Neural Alcohol (ENA) for its preparation of Mother Tinctures and Dilutions.

The Govt. chemical examiner as well as the analytical laboratory of the pharmacy

test the EWA sanctioned by the Govt. exclusively for the pharmacy before it is

used for the manufacturing process. Samples of every batch of preparation of

mother tinctures are also tested by the Govt. chemical examiner's laboratory and

certificate to that effect is received before releasing for sale.

Double rotary tablet machines and other modern equipments are used in the

preparation of Dilutions and ensure proper dilution of black potency. Recently the

HOMCO has introduced mechanical potencies for the preparation of

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homoeopathic dilution and electronic double head potencies for its black potency

preparations, which is designed and developed by HOMCO. Council appointed by

Govt. includes experts in the field and thereby proper check and control on the

functioning of the pharmacy is ensured.

An office of the state Excise department is also functioning in the pharmacy and

possesses full-fledged Analytical Laboratory with all equipments including double

beam U.V Spectrophotometer, TLC etc for the testing of finished products.

Experts in the system professionally manage the HOMCO. By the last twenty-eight

years of service, the HOMCO is paying a prominent role in the health care

activities of India and it is well equipped to meet the challenges of the new

millennium.

Department Structure

Figure 4.7

The Quality Control Department includes one analytical chemist. The analytical

chemist tests the raw materials and crude drugs before it is being used in the

manufacturing process.

Similarly sample of all batches of Mother Tincture are being tested by him. He has

to prepare a certificate regarding the product before it is released for sale.

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QUALITY CONTROL DEPT

ANALYTICAL CHEMIST

Raw material requirement of HOMCO

The crude chemical used for manufacturing are purchased from reputed firms

only and are tested for its purity and geniuness in the quality control laboratory.

Some of the chemicals, which are mentioned in HPI to be prepared in the lab of

the company itself. The herbs used for manufacturing of Mother Tinctures

undergo a series of identification procedures before it is certified passed. These

identification techniques include botanical, pharmacological and chemical

procedure as specified in HPI.

In-process controls of HOMCO

During the process of manufacturing, the mother tinctures and other products

are sampled and in- processed for assuming the quality of finished products.

Finished products of HOMCO

Samples are collected from the finished goods and are passed after undergoing a

series of analytical procedures as per the Homoeopathic pharmacopoeia of India

and other authentic text books. Control samples are kept and analyzed

periodically to assess the changes taking place during storage.

Recently the company had constructed a new block exclusively for quality control

lab and research and development. This division is equipped with more

sophisticated laboratory equipments with the financial assistance from Govt. of

India, department of India system medicine and Homoeopathy.

The Quality Control Department of HOMCO looks for following;

Product innovation.

Process innovation.

Stage wise quality examination by implementing GLP.

Development of standards for drugs and products.

CME Training Programmes for Homoeopathic Doctors, Para Medical and

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Management Students.

Total Quality Management.

Full fledged analytical laboratory with double beam UV Visible spectrometer,

TLC etc.

Advanced moisture analyzer.

Standardization is carried out strictly as per the Homoeopathic Pharmacopoeia of

India.

Every raw material and crude drug undergo lab analysis before taking it in to

Production process.

Products are tested batch wise before taking in to dispatch section.

Headed by well experienced hand.

Purchase department is important in each and every organization. The finished

and unfinished products are stored in this department. In HOMCO all type of non-

spiritious medicines are stored and distributed in this store.

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7. MARKETING DEPARTMENT

For any Organization marketing department is playing a vital role in the success of

Organization. Today every organization adopts a professional approach in

marketing, as competition is unavoidable in the field. A good marketing

department helps the organization in planning, decision making. This department

undertakes all operations in the market. In HOMCO an efficient marketing

department functions headed by marketing executives. HOMCO is sole supplier of

homoeopathic medicines to department of homoeo under government of Kerala.

HOMCO supplies medicines to other state government. Supply of medicines to

doctors and institutes are done through dealers and agents.

DEPARTMENT STRUCTURE

Figure 4.8

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MARKETING EXECUTIVES (2)

SALES REPRESENTATIVES

PRICE FIXING MECHANISM

HOMCO is following dual pricing system. Price fixing is done by HOMCO and also

by government.

A committee constituted by the Govt. of Kerala determines the prices of

HOMCO’s products.

The committee consists of:

Director of homoeopathy, Kerala state

Managing Director of the pharmacy

Chief controlling officer and principal, govt. homoeopathic medical college,

Thiruvananthapuram.

MARKETING GOVERNMENT SECTOR

Pharmacy is directly supplying and meeting the medicinal and other clinical needs

of all the government homoeopathic institution in the state since 1980. The high

quality genuiness of the medicines used in the government hospitals and

dispensary including homoeopathic medical colleges is the major reason behind

such a tremendous development and acceptance of homoeopathy in the Kerala

state.

The pharmacy is the approved supplier to research institutions under central

council for research in homoeopathy, government of India. The Indian system of

medicine and homoeopathic department in Madhya Pradesh, Chathisgarh, Tamil

Nadu, Pondicherry, also meet their medicinal requirements from HOMCO.

OPEN MARKET

Leading homoeopathic practitioners in the state are share holders of the society.

HOMCO’s products are available to all registered medical practitioners and

medical stores. A three tier-marketing network is recently approved by the

pharmacy administration with different discount rates.

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ADVERTISEMENT S

Sales promotion in HOMCO is done by placing advertisements in journals and

some other magazines. They also conduct meetings and camps. HOMCO’s posters

were posted on the stall in Arogya mela’s. in the case of epidemics free medicines

are being supplied to the people.

Apart from this, the company also provides cash discounts and the company is

planning to introduce product discount very soon.

COMPETITORS OF HOMCO

The main competitors of HOMCO are similia, Bahola, Bakson, SBL, Schwa be India,

etc.

HOMCO competes with these manufacturing companies by their high quality

products and through their services.

LOGISTICS OF HOMCO

Raw materials are brought to HOMCO mainly via parcel service. If it is from

abroad then materials are transported through ship or airways.

Marketing department of HOMCO looks for following;

Quick service

Sound customer

Undertake government and open market operations

Continuous endeavor to improve and upgrade the products, services and

efficiency levels.

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Supply medicines to more than 15 states in India.

Access to export market

Dynamic and professional leadership

Ensure customer delight in every interaction

Benchmark of quality and price of Homoeopathic medicines.

CHAPTER- 6

SWOT ANALYSIS

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S- STRENGTH

W- WEAKNESS

O- OPPURTUNITIES

T- THREATS

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SWOT ANALYSIS

The overall evaluation of company’s strength, weakness, opportunities and threats

are called SWOT analysis. The SWOT analysis heading provides a good frame work

for reviewing strategy, position and direction of a company or business proposition,

or any other idea.

The strength of HOMCO

• The relationship between employees and management is good

• All the employees are very much concerned about the quality of products

• HOMCO has got a number of products of variety and range

• The quality of product is main strength of the firm

• Good financial support from the government is also a good strength

The weakness of HOMCO

• The proper motivation is not being given to the employees

• Market research is limited

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The opportunities of HOMCO

• The new product development

• As homoeopathy is risk less therefore it is used by millions of people world wide.

The threats of HOMCO

• Competition in this field is increasing

• Homoeopathy is also facing threat from other disciplines of medicines.

CHAPTER- 7

FINDINGS AND SUGGESSIONS

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FINDINGS

The company has a good support of government.

The company is one of the producers of homoeopathic medicines in Kerala.

Highly sophisticated machinery and equipment Survival of the company

depends upon the government policies.

Homoeopathy is a slow process compared to Allopathy but it is very effective

as it starts curing from the root cause of a disease.

Survival of the company depends upon the government policies.

SUGGESTIONS

The company should conduct more marketing research.

The company should take necessary steps to ensure more cleanness within the

production unit.

The MD should make sure that the employees report at work at the correct

time.

Proper motivation should e given to the employees.

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CHAPTER- 8

COMPANY’S FUTURE PLANS

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OUR FUTURE PLANS

Modernization of existing unit to improve quality and to meet the market.

Requirement and to convert as "Centre of Excellence".

Establish branches in neighboring states.

Establishment of export oriented production unit for selected high demand

items.

Computerization of entire business.

Establishment of new processing and value addition units.

Strengthening of Quality Control and Drug testing laboratory.

Development of Ophthalmic Medicines, Cosmetic and Baby product segments.

Starting of Pharmacy Institute of Training and Continuing Medical Education.

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Promote medicinal plant cultivation and conservation.

CHAPTER- 9

CONCLUSION

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CONCLUSION

During the Organizational study in HOMCO the scholar has collected a lot of

information about the company and its working environment.

The study also results in gaining of knowledge related to homoeopathy and

preparations of homoeopathic medicines. It was possible only with the help of

extended support of people working in HOMCO.

The study reveals that different departments in the organizations work together

in attaining the goals of the organization. It was most beautiful and live

experience to do the organizational study in HOMCO.

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