Give a specimen of a Project Report?

Give a specimen of a Project Report

Given below is a sample report to help students understand the structure of a Project Report:

PROJECT REPORT

Pharmaceuticals Formulations Programme of Jeevan Dhara Pharmaceuticals Limited

A. Introduction to the Project

  1. Jeevan Dhara Ltd. (JDL) an existing profit-making company is engaged in the business of trading and selling pharmaceuticals. The company was incorporated on 2nd September 1998. A brief company profile, giving the proposed installed capacity and the various formulations, to be manufactured by JDL is given in Annexure-I
  2. JDL now proposes to:
  • Setup facilities for the manufacture of pharmaceutical formulations tablets, capsules, injectables (powder and liquid).
  • Setup a modern R&D center to develop new processes and products in the field of Pharmaceuticals.
  • Augmentation of long-term working capital for the proposed project.

3. The cost of the above project is estimated at 1,025 lakhs and is proposed to be financed by way of public issues of 61.00 lakh equity shares of 210 each for cash at par aggregating to 2610 lakhs (including promoters’ contributions of 275 lakhs), a term loan of 400 lakhs and a state subsidy of 15 lakhs.
The purpose of this appraisal is to enable the company to raise funds in the shape of equity capital from the primary market and seek term loan assistance from Bankers/Financial Institutions.

B. Management Profile

  1. Company Profile. A brief company profile of JDL is as under.

Constitution: Public Limited Company
Date of Incorporation: 02.09.1999
Registered Office: 15, Shopping Complex, No. 6
Naraina Vihar, Phase I, Delhi
Plant Locations: Plot No. XY-4000 (i) & (ii), Phase VI
Bawal Industrial Area, Haryana
Sector: Complete plant for the manufacturing of
Project Type formulation, tablets, capsules, and injectables.

 

2. Promoters Background. The company was incorporated as a Public Ltd. company under the name of Jeevan Dhara Ltd. on 02-09-99 by Mr. R. Khanna, Mr. K.D. Sen, Mr. Verma, and Mr. Varun Vashishth.

  • Mr. R. Khanna, Chairman, aged 45 years is a Post Graduate of Science with Chemistry. He has been associated with JDL. from the very beginning. He has been in the Drug industry for the last 15 years and gained varied experience in this industry. He has been a consultant to a number of pharmaceutical companies since 1986 and has promoted an export company in the name and style of “Jeevandhara Export Pvt. Ltd.” where he is holding the position of Managing Director. The company has achieved a sales turnover of 391.00 lakhs (100% exports) in the first half of the financial year ending 20th September 1997.
  • Shri K.D. Sen, Managing Director, aged 45 years has been associated with JDL, since incorporation.

Position of Mr. K.D. Sen in other group companies is as under

Company Position Nature Of Business
Jeevan Dhara Export Pvt. Ltd. Director Export of pharmaceutical formulation
Formulations
Jeevan Dhara Pvt. Ltd. Partner Market consultancy to the pharmaceutical
Companies.

 

  • Mr. Verma Executive Director, aged 43 years is a Post Graduate with a diploma in Pharmacy has been associated with various Medical Institutions and has got rich experience in institutional sales and C&F operations.

The position of Mr. Verma in other group companies is as under:

Company Position Nature Of Business
Jeevan Dhara Export Pvt. Ltd. Director Export of pharmaceutical formulation
Formulations
Jeevan Dhara Pvt. Ltd. Partner C&F Operations

 

  • Mr. Varun Vashishth, Director, aged 45 years is a Science graduate having over a decade’s experience in overall working with the pharmaceutical industry including consultancy, distribution, export, and O&M activities.
  1. Brief History/Current Operations. The company was incorporated as a Public Ltd. Company in September 1999 to manufacture and market pharmaceuticals in India as well as in the international market. The company started the business with the export of its products to countries like Africa, Europe, and southeast Asian countries through its promoter company M/s. Jeevan Dhara Exports Pvt. Ltd.

During the year 1994-95, the company made a modest beginning. During the first 6 months of the current year, the company had a sales of 28.79 lacks with a net profit of (2.58 lacks, The company with the start of modest beginning, is aimed at substantial growth.

The financial figures for the first 6 months of operations are given below:

  6 months ending
30-09-1999 (₹ in Lacks)
Sales 32.70
PBT 2.50
PAT 2.35
Share Capital (including share application money) 40.46

 

The company has confirmed Orders of about ₹90 lakhs.

Tax Status of Promoters

Name Latest Return
Filed
Latest Assessment
Completed
1. Mr. R. Khanna 1993-94 1992-93
2. Mr. K.D. Sen 1993-94 1992-93
3. Mr. Verma 1993-94 1992-93
4. Mr. Varun Vashishth 1993-94 1992-93

 

  1. Management and Organizations. The company is a Board company. Present Board of JDL, comprises the following Directors:

(i) Mr. R. Khanna – Chairman
(ii) Mr. K.D. Sen – Managing Director
(iii) Mr. Verma – Executive Director
(iv) Mr. Varun Vashishth – Director

The day-to-day operations of JDL are looked after by Mr. R. Khanna and assisted by experienced professionals. Mr. Verma looks after the purchase and after completion of the project, he shall be looking after production also. Mr. Varun Vashishth is in charge of marketing activities and human resource development of the company. JDL appointed Mr. Govind Handa, B. Pharma, (Vice President), Mr. Sunil Sharma B.A. (Export Manager), Mr. Mohan Arora, B.Sc. (Marketing Manager), Mr. Rajat Goyal (Manager HRD), and has also engaged Mr. Prem Agarwal, B.Com., F.C.A. as Financial Advisor. JDL, however, proposes to strengthen its administration, finance, and production areas by recruiting experienced professionals in the due course of time.

  1. Capital Structure. JDL is a public limited company that came into existence in September 1999. JDL is presently a closely, held, non-listed company, and the entire paid-up share capital is held by promoters, and share application money has been brought by promoters, their friends, and associates.

C. The Project

(i) Formal Proposal:

  • To set up facilities for the manufacture of pharmaceutical formulations viz. tablets, capsules, Injectables (Liquid and powder).
  • To set up a modern R&D center to develop new processes and products in the field of Chemicals/Formulations.
  • Augmentation of working capital for the proposed project.

The installed capacities after completion of the proposed project will be as under :

Item Proposed installed capacity  
Tablets 3,450 lakh No, p.a.
Capsules 350 lakh No, p.a.
Injectables    
-Liquid ampoules/vials 220 lakh No, p.a.
-Powder vials 135 lakh No, p.a.

 

The above formulations will be mainly in the category of analgesic, antibiotics, anti-tuberculosis, anti-inflammatory, a cardiovascular drug, anti psychotropic drugs, tranquilizers, antacids, iron, proteins, and Vitamins, etc. A detailed list of categories of formulations is given in Annexure I.

(ii) Location. The project is being set up in a sprawling 20,000 sq. meters area in one of the model industrial belts of Haryana, i.e., Bawal Industrial Area, Haryana, which is considered self-sufficient so far as the industrial infrastructure is connected. The location is well connected with Rail & Road.

(iii) Land & Building. JDL has already acquired land measuring 10,000 sq. meters at Plot No. XY-4000(1) & (II), Phase VI, Bawal Industrial Area, Haryana, which is registered in the name of the company. The total cost of the land is 50.00 lakhs excluding site development of 15,00 lacks. Approximately 60,000 sq. ft. constructed area is estimated for the plant with first-class brickwork and RCC construction. The total estimated cost of the building works out to 243.50 lakhs as per the estimate of the Architect M/s. Login Associates Pvt. Ltd. The construction of the building will commence from 07/10/94 and will be completed by 30th May 1995.

(iv) Manufacturing Process. The required raw material/mixed in stainless steel vessels under controlled conditions of temperature, pH, pressure and mixing time, etc. under hygienic conditions. The preparations are then filled in sterilized vials, ampoules, and bottles. JDL proposes to adopt a comprehensive in-built system of quality control for ensuring the manufacture of end-products in conformity with the IP/BP/USP specifications. Necessary, approval from the drug authority needed would be obtained by JDL.

(v) Technical Arrangements. For the implementations of the proposed scheme, JDL has engaged the services of M/s. Ganga Tech Ltd. Licensing Delhi, to make available all information and technology to manufacture tablets, capsules, and injectables (Liquid and Powder). Ganga Tech Ltd. is a proprietary concern with Sh. Virat Kohli as the Chief consultant, S of Virat Kohli is a pharmacist by profession. He has a wide-ranging experience in Project Management and Control, Designing Formulation Plant. Layouts, Technology Sourcing, and Acquisitions, Arrangements. He has arranged various collaborations with renowned unions. He has undergone a specialized course in Management of companies of America, Europe, Japan, and the Government Technology transfer, Patents, and Information Systems and has been instrumental in starting International Trade for Indian Companies having procured orders worth over 30 million in the very first year from Europe. Ganga Tech Ltd. has provided the technical know-how and other viz, Himalaya Drugs and related services to different companies call-Roorkee, Med Lab pharmaceuticals-Mandi, Bajaj Ltd.-Shimla, Galaxy Pharmaceuticals – Rewari, etc. Soviet

The company has also engaged Mr. Govind Handa, B. Pharma (Gold Medalist from Delhi University) as Vice President (Technical) having a wide experience of 11 years to manufacturing pharmaceutical formulations. Mr. Handa has earlier worked with M/s. K Pharma Ltd. as a manufacturing chemist and with M/s Future Medicine Pharmaceuticals Ltd. as Managers (Productions) and then as General Manager (Commercial & Technical). There he was looking after the production of tablets, capsules, dry syrups, and injectables and related works with it and has also wide experience in handling plant independently and has wide experience in dealings with Excise, P.F., E.S.J., Labour Laws, Manpower handling, etc.

(vi) Procurement of Plant and Machinery. Based on discussion and consultation with Ganga Tech Ltd., JDL has finalized items of plant and machinery (details given in Annexure-5). While selecting the machinery, JDL and Ganga Tech Ltd. have kept in view aspects like cost-effectiveness, track record and reputation of the machinery suppliers, delivery schedule, balancing and synchronization of different machinery from reputed manufacturers/suppliers like M/s. Zintach, M/s. Lenix and M/s. Shah & Shah.
The entire plant and machinery and equipment would be procured indigenously. The major equipment required for the project are vial washing machine (jet type), automatic vial filling machine, vial inspection machine, ampoule washing machine, 4 head ampoule filling and sealing machine, Ampoule inspection machine, powder filling machine, 4 head aluminum cap sealing machine, vial labeling machine, Autoclave, S.S. Pressure Vessel, Air Pressure Regulator, Dehumidifier. PP Cap sealing machine, Powder injection filling machine, Automatic Capsule filling machine, Rapid mixer granulator, Air pressure regulator. Compression machines, FB dryer, and various laboratory equipment.

(e) Raw materials. All the major raw materials proposed to be used by JDL for the manufacture of pharmaceutical formulations are available indigenously. These include Calatorie, Ampicillin and Cloxacillin, Amikacin sulfate. Ciprofloxacin, Famotidine, Nalidixic Acid Metronidazole, Prednisolone, Amoxycillin, Diclofenac, Chloramphenicol, Ampicillin Tribydrate, Tetracycline, Doxycycline. The packing material like Aluminium foil blister, printed cartons, corrugated boxes, glass bottles, tumblers, plastic jars, PP. caps are also available locally. The promoters have established contacts and are already in the line, IDL does not envisage any difficulty in meeting its requirement of drugs and packing materials from indigenous/local/ overseas sources. At optimum capacity utilization of 90%, the cost of raw materials and packing material is estimated ₹1727.65 lakh

(viii) Utilities: Manpower requirement. At present, the company has 5 employees. The company purposes to induct employees as per recruitment plan as given below:

Category Const. Period 1st Year 2nd Year 3rd Year
Managerial 5 22 11 8
Technical …. 19 5 1
Clerks 3 5 3
Medical Reps. 12 40 20 40
Skilled Workers …. 25 6 5
Unskilled …. 30 5 5
Peons 5 10 ….
Total 25 151 47 62

 

The company will have around 165 employees in its first year, 216 employees in the second year, and 305 employees in the third year on its payroll. JDL proposes to recruit chemists from the Industry and most of the semiskilled and unskilled workers locally and impart them on plant training. The unit is being located in Industrial Area, Bawal, therefore, the company does not foresee any problem in getting skilled and semi-skilled persons and the required workforce which is locally available.

  • Power & Electricity. The total power requirement is estimated at 280 KVA for which the company will apply to the Haryana State Electricity Board immediately after the start of construction. However, the company also proposes to install a 200 KVA D.G. Set as a standby arrangement for uninterrupted Power Supply.
  • Effluent disposal. The main effluents from the proposed project will be processed waste water which would not contain any hazardous contaminants. However, JDL would be required to obtain approval from the competent authority of Haryana Pollution Control Board for the proposed project.
  • Water. For the proposed programme the requirement of processed water is estimated at 8 KLPD proposed to be met from Company’s ow tube well at the factory site, However, JDL proposes to install on number DM water plant of 10 KLPD capacity to meet its requiremen of demineralized water, to be used for making liquid injectables, distillation unit of capacity of 10 KLPD is also proposed to be installed! by JDL
  • Steam/Fuel. The requirement of pyrogen free steam for the proposed project estimated at 1,465 kg per day is proposed to be met the from electrically heated boilers (attached to autoclaves) specially fitted with pyrogen filters.
  • Refrigeration. The requirement of refrigeration/air conditioning for the proposed project estimated at 120 TR is proposed to be met by installing a 120 tonnes capacity central air-conditioning plant and split air conditioning plant.
  • Compressed air. The requirement of compressed air estimated at 3000 litres per minute is proposed to be met by installing an air compressor of suitable capacity. For maintaining inert atmosphere in the Ampoules/Vials Section, JDL from the local dealers.

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