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Author Topic: please help me to solve this case study......  (Read 2915 times)


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please help me to solve this case study......
« on: February 02, 2011, 07:48 AM »
Case study :
Muhammad Majeed represents a typical Indian who has created success out of
sheer hard work and commitment through his education and expertise. At the age of
23 years, Majeed, after graduating in pharmacy from Kerala University, went to
pursue higher studies in the US. He completed his masters and PhD in industrial
chemistry. Armed with high qualifications, he became a research pharmacist and
eventually, as most expatriate Indians do, set up his own company. Sabinsa
Corporation. Experiencing difficulties with the long-drawn drug approval process of
the US Food and Drug Administration and his own dwindling savings. Majeed
focused on ayurvedic products based on natural extracts. He returned to India in
1991 (incidentally, the year when liberalization started in India) and set up Sami
Chemicals and Extracts Ltd, Later renamed as Sami Labs Ltd (SLL), at Bangalore.
SLL has over three dozen products and seven US patents. There are 25 European
and other country patents pending approval. SLL has four manufacturing units all
based in Karnataka. The sales is Rs. 44.5 crore and the profit-after-tax is
Rs 5.89 crore. It has pioneered specialised products based on Indian herbal extracts
relying on the principles of ayurveda. The major thrust is on remedies for cholesterol
control, fat reduction, and weight management. As against several Indian companies
exporting raw herbs, SLL specialises in value-addition through extractions. The result
is encouraging SLL’s products typically fetch an export price that is more than double
the price of raw herbs.
SLL thinks of its business as ‘‘manufacturing and selling traditional standardised
extracts and nutritional and pharmaceutical fine chemicals” Sabinsa, its US-based
company, secures contracts from the US companies to manufacture certain
chemicals in India. Its business plans are quite ambitious. Setting up a product
management team, assisting farmers in cultivation of pharmaceutically useful herbs,
international collaborations for developing research-based intellectual property and
its commercialisation are some of the strategic actions on the anvil.
SLL looks forward to being a Rs. 500-crore company by 2005 when the World Trade
Organisation’s patenting regime comes into force.
Questions :
How will you define the business of SLL? Comment on the business plan of SLL
state your opinion on the likelihood of its success.

Thanx in advance...




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