ORGANISATIONAL STUDY REPORT OF OUSHADHI

(OST)
ORGANISATION
An organisation is a social arrangement which pursues
collective goals, controls its own performance, and has a
boundary separating it from its environment. The word is
derived from the Greek word organon, itself derived from the
better-known word ergon. An organizational structure is a
mainly hierarchical concept of subordination of entities that
collaborate and contribute to serve one common aim.
Organizations are a variant of clustered entities. An
organization can be structured in many different ways and
styles, depending on their objectives and ambience.
Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different
entities such as
the branch, department, workgroup and individual. Individuals
in an organizational structure are normally hired under time-
limited work contracts or work orders, or under permanent
employment contracts or program orders.

INDUSTRY PROFILE
              Ayurveda is a system of traditional medicine native to
the Indian Subcontinent and practiced in other parts of the
world as a form of alternative medicine. In Sanskrit, the word
Ayurveda consists of the words āyus, meaning 'life', and veda,
meaning 'related to knowledge' or 'science' Evolving throughout
its history, Ayurveda remains an influential system of medicine
in South Asia. The earliest literature of Ayurveda appeared
during the Vedic period in India. The Sushruta Samhita and
the Charaka Samhita were influential works on traditional
medicine during this era. Ayurvedic practitioners also identified
a number of medicinal preparations and surgical procedures for
curing various ailments and diseases.
         Ayurveda is the science of life. Unlike all other branches
of medicine, Ayurveda observes a patient in entirely on
physical, mental and spiritual levels. While treating diseases it
is well established by the modern medicine beyond any doubt
that one’s mind has a very strong influence on his body. With
this enormous understanding on human mind, body and spirit,
Ayurveda offers treatment for almost all known diseases. 
Ayurveda is considered to be a form of complementary and
alternative medicine (CAM) within the western world, where
several of its

methods, such as the use of herbs, massage, and Yoga as

exercise or alternative medicine, are applied on their own.
                                      
Ayurveda is grounded in a metaphysics of the
'five great Elements [; earth, water, fire, air and ether)—all of
which compose the Universe, including the human body.
Ayurveda deals elaborately with measures of healthful living
during the entire span of life and its various phases. According
to Ayurveda, these three regulatory principles— Doshas
(literaly that which deteriorates - )—are important for health,
because when they are in balanced state, the body is healthy,
and when imbalanced, the body has diseases. Ayurveda hold
that each human possesses a unique combination of Doshas.
In Ayurveda, the human body perceives attributes of
experiences as 20 Guna ( meaning qualities) It is believed that
building a healthy metabolic system, attaining good digestion,
and proper excretion leads to vitality. Ayurveda also focuses on
exercise, yoga, meditation, and massage. Thus, body, mind,
and spirit/consciousness need to be addressed both
individually and in unison for health to ensue.
           Ayurveda is a science which intended to benefit the
entire world. In ancient India, It was considered as a great
science in touch with Indian philosophical thoughts. It utilizes
wealth of nature for increasing the natural resistance of the
body. Ayurveda favours administration of natural raw drugs
(plants/animal/mineral/metal/marine origin) and their
preparations. Generally Ayurvedic medicines are non toxic, well
tolerated and estimated that Rs 500 crores. The field of herbal
products in international market is fast growing.
            Eight disciplines of Ayurveda treatment, called
Ashtangas:
 Internal medicine (Kaaya-chikitsa)
 Paediatrics (Kaumarabhrtyam)
 Surgery (Shalya-chikitsa)
 Treatment of diseases above the clavicle (Salakyam)
 Demonic possession (Bhuta vidya): Bhuta vidya has
been called psychiatry.
 Toxicology (Agadatantram)
 Prevention diseases and
improving immunity and rejuvenation (rasayana)
 Aphrodisiacs and improving health of progeny
(Vajikaranam)

COMPANY PROFILE
                The Pharmaceutical Corporation (I.M) Kerala limited,
Thrissur popularly known as OUSHADHI is an Ayurvedic
medicine manufacturing company fully owned by Government
of Kerala. Oushadhi is the largest producer of Ayurveda
medicines in public sector in India. It is one among the few
public sector companies, consistently making profit since
1999.It is a GMP and ISO 9001 – 2000 certified company. It
produces around 500 Ayurvedic formulations – both classical
and proprietary. Oushadhi is directly controlled by Health and
Family Welfare Department of Kerala State
Government.Oushadhi was originated as Sree Kerala Varma
Govt. Ayurvedic Pharmacy in 1941 at the instance of His
Highness the Maharaja of Cochin, for the supply of medicines
to Govt.Ayurvedic Hospitals in Thrissur and erstwhile princely
family of Cochin State. In 1975 , it was renamed as The
Pharmaceutical Corporation (I.M.) Kerala Ltd, Thrissur.
Oushadhi  is the sole supplier of medicines
to Government Ayurveda Hospitals and Dispensaries in Kerala.
It is also a supplier of Ayurvedic medicines to Government
Hospitals and dispensaries of other states like Madhyapradesh,
Chattisgarh, and Pondicherry etc.
Profile
*    Largest producer of Ayurveda medicines in public sector
in India
*    One among the few Public Sector companies, consistently
making profit and paying dividend to Government of Kerala
since 1999.
*    Supplies medicine to Government of Kerala for the
distribution to common man through ISM Dept.
*    A GMP and ISO 9001-2000 certified company.
*    Produces 450 Ayurvedic formulations - both classical and
proprietary.
*    Sole supplier of medicines
to Government Ayurveda Hospitals and proprietary.
*    Supplier of Ayurvedic Medicines to Government Hospitals
and dispensaries of other states like Madhya Pradesh,
Chattisgarh, Pondichery,   Rajasthan, Orissa, New Delhi etc.
*    Caters to the need of public through a vast network of 610
agencies spread all over the nation.
*    Governed by dedicated board of directors.  

LOCATION
 Registered Office: Shoranur road, Thrissur, Kerala, South India.
Factory: Kuttanellur, 8 Kms from Thrissur Town.
Office: Kuttanellur, 8 Kms East from Thrissur Town.
MILESTONES
     1941–Commenced by His Highness, The Maharaja of Cochin as
“Sree Kerala Varma Ayurveda Pharmacy”.
     1959 – Converted into Co-operative Society viz Sree Kerala Varma
Ayurveda Pharmacy and stores Ltd.
     1975   - Registered as a Company under Indian Companies Act and
renamed as “The Pharmaceutical Corporation (Indian
Medicines) Kerala Ltd. Thrissur.
      1991 - Commissioned modern manufacturing unit at Kuttanellur and
shifted the factory to the new premises.
      2004   - Started a new Panchakarma Hospital and Research
Institute at Thrissur.
      2007 - The entire Office shifted to the Factory premises at
Kuttanellur.
      2008 - Commenced full - fledged R&D Center at Kuttanellur and
regional distribution unit at Kannur.
VISION
A leading world class Ayurveda Industry in the country by 2020.

DEPARTMENTS
·       Administration
·       Human Resources
·       Finance & Accounts
·       Purchase
·       Production
·       Marketing
·       Quality Control, Research & Development
·       Maintenance
·       Panchakarma Hospital & Research Centre

Administration
•Provides support and service for the activities of the Board of 
Directors
• Coordination of Bank branch activities and provision of
interaction between branches and the main office.
• Expanding and reorganization of Bank market network.
 • To create appropriate condition for efficient operation of
structural Bank subdivisions.
 • Currency control of Bank branches.
 • Control of money transfer in foreign currency.
 • Coordination of construction, maintenance, rent and keeping
buildings issues.
 • Coordination of issues as logistical support of Bank activities.

Human Resources
The Human Resources Management (HRM) function includes a
variety of activities, and key among them is deciding what
staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and
training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel
and management practices conform to various regulations.
Activities also include managing your approach to employee
benefits and compensation, employee records and personnel
policies. Usually small businesses (for-profit or nonprofit) have
to carry out these activities themselves because they can't yet
afford part- or full-time help. However, they should always
ensure that employees have -- and are aware of -- personnel
 policies which conform to current regulations. These policies
are often in the form of employee manuals, which all
employees have.
Finance & Accounts
The finance department of a business takes responsibility for
organising the financial and accounting affairs including the
preparation and presentation of appropriate accounts, and the
provision of financial information for managers. The main areas
covered by the financial department include:
·       Preparation of budget, appropriation of accounts, re-
appropriations, surrender and savings
·       Control of expenditure and ways & means position.
Audit
·       Treasury administration
·       Administration of Taxes i.e. Sales Tax, Entertainment Tax,
Luxury Tax and Entry Tax etc.
·       Service Conditions including Freedom Fighters Pensions.
·       Resource mobilization through loans, Institutional Finance,
Small Savings, Credit and Investment and public debt.
·       Financial concurrence and advice.
·       Compilation of Codes, Rules and procedures concerning
financial transactions and having bearing on State finance and
their implementation.
·       Safety and investment of funds from consolidated funds,
contingency fund and public account.
·       Contract, recovery and refund of revenue etc

Purchase Department
 The Purchasing Department is responsible for coordinating the
acquisition raw materials and other needs of the company and ensuring
that they are bought at the minimum cost and offer value for the money
spent. The purchase department id headed by purchase manager who is
assisted by assistant manager. This department is responsible for
purchasing all the goods and raw materials needed for Oushadhi; hence
they are following a centralized purchasing system. They purchase raw
materials through open tender.                                       
System Followed For Purchase Of Raw Materials.
                           The most important function of purchase department is
purchasing of raw materials. They purchase raw materials through
tenders. The procedure for purchase starts when the purchase
department receives a request from any department for purchase of
goods. Then the purchase department invites quotations from various
suppliers of that particular product. After careful analysis of the received
quotations they select the quotation which has the minimum price and
place order to them mentioning the quantity and quality of the goods
required.
                                               

When the goods are received they are examined by set of doctors to
check whether the goods are up to the quality ordered. If the goods are
not up to the required quality they will be sent back. Good quality raw
materials will be received and stored in the stores and will be issued to
the concerned department which ordered the goods according to their
request of FIFO basis. Finally after receiving the goods the purchase
department initiates the accounts department to make payment to the
supplier as per their terms in their quotation.
Features Of Purchase Department
·        Purchase more than 600 varieties of raw materials through open tender.
·        Standardized procedure to verify the variety of raw materials.
·        More than 60%  raw materials comes from the forest.
·        Annual purchase of 7 – 9 crores.
·        Buy back agreement with farmers.
·        Maintaining data base of raw materials.

Production
·       Produces 450 Ayurvedic formulations - both classical and
proprietary.
·        Qualified and experienced doctors to supervise productions.
·        Production of medicine as per GMP norms.
·        Quality control to ensure quality of raw materials and finished goods.
·        Modern dosage forms like, tablets, ointments, etc are introduced.

1.    The production and planning department will

set standards and targets for each section of the production
process. The quantity and quality of products coming off a
production line will be closely monitored. In businesses
focusing on lean production, quality will be monitored by
all employees at every stage of production, rather than at the
end as is the case for businesses using a
quality control approach.

2. The purchasing department will be responsible for providing

the materials, components and equipment required to keep the
production process running smoothly. A vital aspect of this role
is ensuring stocks arrive on time and to the right quality.

3. The stores department will be responsible for stocking all the

necessary tools, spares, raw materials and equipment required
to service the manufacturing process. Where sourcing is
unreliable, buffer stocks will need to be kept and the use of
computerised stock control systems helps keep stcoks at a
minimal but necessary level for production to continue
unhindered.

4. The design and technical support department will be

responsible for researching new products or modifications to
existing ones, estimating costs for producing in different
quantities and by using different methods. It will also be
responsible for the design and testing of new product
processes and product types, together with the development of
prototypes through to the final product. The technical support
department may also be responsible for work study and
suggestions as to how working practices can be improved.

5. The works department will be concerned with the

manufacture of products. This will include the maintenance of
the production line and other necessary repairs. The works
department may also have responsibility for quality control
and inspection.

Marketing
Marketing involves a range of processes concerned with finding
out what consumers want, and then providing it for them.
There are two main types of market
research: Quantitative research involves collecting a lot of
information by using techniques such as questionnaires and
other forms of survey. Qualitative research involves working
with smaller samples of consumers, often asking them to
discuss products and services while researchers take notes
about what they have to say. The marketing department will
usually combine both forms of research.

The marketing department will seek to make sure that

the company has a marketing focus in everything that it does. It
will work very closely with production to make sure that new
and existing product development is tied in closely with the
needs and expectations of customers.
 Quality Control, Research & Development
R&D is the key for any pharmaceutical industry. Although there
is lot of knowledge in the ancient text of Ayurveda R&D is
necessary to make it suitable in today’s context.
Every product of Oushadhi that is manufactured is preliminarly
tested and developed here . R & D department has
miniaturized forms of all sorts of commercialized equipments .
They have recently published a magazine called ‘Oushadhi
Sandesh’. It has constructive articles and also contains Articles
about Quality Control like “ Instant Checks for adulteration” .
The magazine also contains various information about other
departments also.
R&D has a special economic significance apart from its
conventional association with scientific and technological
development. R&D investment generally reflects a
government's or organization's willingness to forgo current
operations or profit to improve future performance or returns,
and its abilities to conduct research and development.
  Although R&D department had been existing in the company
a separate existence was formed only in 2008.
Maintenance department
·       Procurement of plant and machinery.
·       Up keep and maintenance of all plant and machinery.
·       Construction of civil work.
·        Power and water supply.
·       Effluent treatment.
·       Maintenance of campus.

Panchakarma Hospital & Research Centre

·         Located at Shornur Road, Thrissur.
·         Started functioning on 18.10.2004.
·         Both in patient and out-patient section.
·         30 bedded modern hospital.
·         Round the clock service of 4 Ayurvedic Doctors.
·         Average number of patients per year-2000.
·         Average turnover from Hospitals, Rs. 18 lakhs/year.
·         Average turnover from pharmacy Rs. 6 lakhs.
·         Clinical trial cell.
·         Famous for Panchakarma therapy.

Medical Plant Cultivation

·         Two medicinal plant nurseries at Kuttanellur and Pariyaram,
supported by SMPB.
·         Annual distribution of 3 Lakh seedlings of 20 leading species.
·         Cultivated 15 acres of land at Kuttanellur with 20 species of
medicinal trees species.
·         Raised medicinal trees on 50 acres of land at Pariyaram,
Kannur District.
·         Raised medicinal plant gardens in 150 selected schools in
Thrissur and Kannur Districts of Kerala.

Oushadhi is a 100% Government of Kerala owned Ayurvedic

medicine manufacturing company situated in Kuttanellur,

near Ollur, Thrissur city, Kerala state. Directly controlled by

Health and Family Welfare Department of Kerala State

Government, it has widened its service to Ayurvedic health

care by establishing Pancha Karma Hospital and Research

Institute at Thrissur with most modern amenities.

 
 STRENGTHS
§  Established brand image
§  Continuous government support.
§  Huge market demand.
§  Dedicated work force.

                          CORE VALUES
*    Mutual trust and respect
*    Customer satisfaction
*    Quality control
*    Professional ethics
*    March with time

WEAKNESS
The absence of certain strengths may be viewed as a weakness. For
example, each of the following may be considered weaknesses:
§  Infancy stage of research & development Department.
§  Lack of modern technology in R&D compared to private sector Ayurvedic
medicine manufacturing companies.
§  Strikes by trade unions, even though strikes are less they hinder
production.
§  Procedural delays due to government interventions.
                               OPPORTUNITIES
·        Monopoly of medicine supplier to government Ayurveda Hospitals and
dispensaries in Kerala
·        Raising interest towards Ayurveda
·        Huge market demand.
·        They are the market leader in manufacturing and sale of Ayurvedic
medicines.
· Support from various organisation like state forest department SC/ST
     

federation etc and general public.

 THREATS
·    Difficulty in standardization, and validation of Ayurvedic medicine as
per the modern trials for selling larger market outside
·   Usually people do not prefer Ayurveda for serious diseases.
·   Presence of fraud Ayurveda doctors caused a black mark for this
industry.
PRODUCTS
 ORGANISATIONAL STRUCTURE

CHAPTER 2

DATA PRESENTATION AND ANALYSIS

THE PHARMACEUTICAL CORPORATION (IM)

 KERALA LTD OUSHADHI

 The Pharmaceutical Corporation (IM) Kerala Ltd popularly
known as Oushadhi is a fully owned Government owned
Ayurvedic medicine manufacturing company. It was originated
as Sree Kerala Varma Government Ayurvedic pharmacy in
1941 at the instance of His Highness The Maharaja of Cochin,
for the supply of medicines to the Government Ayurvedic
Hospitals in Thrissur and erstwhile princely family
of Cochin state. In 1959, it was converted and registered as a
co-operative society & Stores Ltd No: 4318 Thrissur.

                On 8th September 1975 it was incorporated as a

company under the Indian companies Act ,1956 and renamed
as “The Pharmaceutical Corporation (Im) Kerala Ltd” Thrissur
and its operation started on 10th July 1976 , with the take over
of business of SKVAC pharmacy.

Objectives of Oushadhi
§  Manufacturing and Marketing of high quality Ayurvedic
medicines.
§  Research and Developmental studies on Ayurvedic
formulations.
§  Maintenance of medical plants herbarium and Cultivation.
§  Health care and clinical Research programme.
§  Implementation of Government of  Kerala Health care
programme
§  Propagation of Ayurveda and connected systems all over the
world.
§  Promoting Ayurvedic education and establishing institutions for
the same.
§  Implementation of Community Development  Programmes with
special reference to women and child Development

CHAPTER 3

SOCIAL RESPONSIBILITY  OF OUSHADHI

Business which is the hard core of the economic system has

realised and has been made to realize by social, economic and
political forces that it has social obligations to fulfill besides
ensuring its own existence through profit an activity.

          There are various objectives of business in it and

important objective is the public or social responsibility of a
business enterprise. This is an objective which cannot be
stated in as tangible terms as others and yet recent
development in our economy as well as others brings out its
crucial importance. It will be useful to go into formed and
persuaded business men to consider their responsibilities and
the conditions which were favourable to the development of
businessmen’s concern with social responsibilities.

About Company

          Some of the important them are:

i)      The development of professional managerial class with a different
motivation and point of view due to the separation of ownership
from management in corporate enterprise.

ii)   The change in public opinion about role of business in modern

society

iii)            The increased complexity of the decision – making processors

in which various points of view and diverse interests are
expressed.

iv)The threat of public regulation or public ownership

v)   The pressure of Labour movement

vi)The development of business education and contact with

government and its problems.

vii)         The development of moral values and social standards

applicable to business man

viii)      Recognition of human factors contributing to the long- run

interests of the business people

          Some of specific responsibilities to various sections are:

a)   The Enterprise and Shareholders

          In the first place, corporate business must provide a fair

return on capital to shareholders and must provide them
regular, accurate and full information about the working of the
enterprise.   The shareholders should also meet their
obligations by envicing been interest in company affairs.
 1)   It must ensure the safety of the funds invested by shareholders
or owners

2)   It must ensure effective utilization of funds provide by them.

3)   It must provide fair and reasonable return on investment in long

run

4)   To ensure full participation of owners in management of the

affairs of the concerns.

5)   To provide a fair and honest report of business operation

6)   To offer reasonable appreciation of capital through growth,

innovation and diversification of business activities.

b)   Enterprise and Workers

          It is the responsibility of the management to provide

opportunities to the workers for meaningful work. Also, the
management of a business should try to win the cooperation of
the workers by creating the right conditions in the enterprise.
The business enterprise owes it to the workers unions, accept
the workers right to associate and assure a fair wage and a fair
deal of to the workforce.   The worker’s need to be helped to
develop their own leadership qualities in unions through
education. Social security, profit – sharing, fair promotions,
proper grievance settlement and employee welfare are some of
the other well – recognized responsibilities of business firm to
their employees.

1)         Provide recreation, sanitation and medical facilities

2)         To ensure job security for the workers

3)         To maintain cordial relationship with employees

4)         To ensure fair opportunities to workers for their promotion,

growth and development.

5)         Provision and recognition of genuine trade union rights of

workers

6)         Proper steps should be taken to ensure social security.

7)         It must ensure fair and courteous treatment to the workers.

8)         To recognize the needs of workers.

9)         Recognize thee collective targaining and encourage it.

10)    To ensure protection of workers from occupational hazards.

11)    Recognize workers as human resources and treat them as

asset instead of a factor of production.

12)    A grievance handling procedure should be established for the

redressal of the grievance of employees.

C. Enterprise and the Consumers

          A business enterprise has the responsibility of providing

the goods and services needed by the community at most
reasonable process.  It must guard against adulteration, poor
quality, lack of service and courtesy to customers, misleading
and dishonest advertising etc. The consumers also need
protection against monopoly and restrictive trade practices.
Such protection can be provided best if business learns to play
its part of the game with fairness and liberalism.
1.    To encourage the formalion of association of consumers for
their satisfaction and welfare.

2.    To ensure a fairly wide distribution of products among all

sectors of the consumers.

3.    It must guard against adulteration, poor quality hoarding, black

marketing etc.

4.    Proper after sales service to the customers should be ensured.

5.    It must guard itself against obscene and misleading

advertisement

6.    Prompt services to customers must be ensured.

7.    Exploitation of consumers should be avoided.

8.    Consumers should be given adequate freedom to select the

products which they require

9.    Heavy burden in the form of high process should not be

imposed on consumers.

10.                       Introduction of new products should be made known to

the consumers.

D) Enterprise and Community

          An enterprise must respect the two any pay taxes

regularly and honestly. It must behave as a good citizen and
take care to avoid bad affluent, smoky chimneys and to devote
attention to housing and worker’s living conductions.  It has the
 responsibility of maintaining proper relations with the
community through press and meetings.

1.    To minimize all kinds of pollution.

2.    To ensure safety of the people who are living near the
business establishment.

3.    To develop a good relationship with community.

4.    To channelise the resources of the society in production lines

and make their best use.

5.    To give cash donations and provide jobs to the disabled person
and widows.

6.    It should rehabilitate the people who are suffered due to the
business operations.

7.    It must try to create new opportunities for employment to solve

unemployment problems.

8.    National resources must be utilized efficiently and without

wastage.

9.    To help the community by opening schools, dispensaries,

chartable institution etc.

10.                        To refrain from indulging in anti – social business

activities.

11.                       To organize the cultural and religious function for the

community, for improvement of society

12.                       To sustain a congenial and neatly environmental

conduction.
 E) Enterprise and Government

1.    Firms should pay tax in time.   It should not try to indulge or

avoid tax.

2.    The main responsibility of the business is to obey to laws by

government.

3.    It should invest their surplus funds, in infrastructure bonds,

government bonds etc.

4.    It must not allow unfair trade practices.

5.    It must co-operate with government to implement social

activities.

6.    Discourage unhealthy practices like influencing government

officials to carry, favours obtaining license.
They should not try to indulge in malpractices like hoarding,
black marketing to create artificial shortage.

BRANCHES

•    Arogyabhavan, Thiruvananthapuram

•    Poojappura, Thiruvananthapuram

•    Pariyaram, Kannur  

SUPPORTERS

•    Govt. of Kerala  

•    Ayush Department of Govt. of India

•    ISM Dept. of Govt. of Kerala

•    General Public

•    National Medicinal Plant Board

•    State Forest Departments

•    Reputed organizations like KFRI, TBGRI,

      Agl. Universities, Ayurveda Research Centres.

•    SC/ST Federation

•    Wholesale dealer of Raw materials.

  

Findings and Suggestions
Ø Oushadhi  supplies saplings of  medicinal plants to the  public at
concessional rate.
Ø Provides medicinal plants to schools and colleges at free of
cost.
Ø Provides technical assistance for the extensive cultivation of
medicinal plants.
Ø Effective system of pollution control system has been adopted.
Ø Manufacture more than 400 Ayurvedic formulations for the
wellbeing of the public.
Ø The whole manufacturing activities are under the direct and
expert supervision of qualified Ayurvedic physicians.
Ø Quality medicines are made available to public at reasonable
prices.
Ø Meets the entire medicine requirements of Government
Ayurvedic hospital and dispensaries.
Ø Meets public demands through network of exclusive Oushadhi
dealers and agents.
Ø Distributionship started in Karnataka, Chennai and A.P.

CONCLUSION

RECOMMENDATIONS AND SUGGESTIONS

v More promotional activities must be done including social
responsibility.
v Oushadhi must go for a diversification of programmes.
v More emphasis must be given for community medicines