scholarly journals A study on working capital management of pharmaceutical industry in india

2015 ◽  
Vol 1 (3) ◽  
pp. 248-269
Author(s):  
Vijayalakshmia V ◽  
Srividya M
Keyword(s):  
Standard Deviation ◽  
Pharmaceutical Industry ◽  
Financial Performance ◽  
Chemical Industry ◽  
Price Competition ◽  
Working Capital ◽  
Working Capital Management ◽  
A Company ◽  
Indian Pharmaceutical Industry

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expended drastically in the last two decades. The pharmaceutical and chemical industry in India is an extremely fragmented market with severe price competition and government price control. The Pharmaceutical Industry in India meets around 705 of the country‟s demand for bulk drugs, drug intermediates, pharmaceutical formulation, chemicals,tablets, orals and injectibles. The Indian Pharmaceutical Industry is developing drastically every year. It is felt that there is the need to study the role of working capital on profitability of a Pharmaceutical company. Conventionally, it has been seen that if a company desires to take a greater risk for bigger profits and losses, it reduces the size of its working capital in relation to its sales. If it is interested in improving its liquidity, it increases the level of its working capital.Hence an attempt has been made to analyze the working capital position of the industry with the help of mean, standard deviation, co-efficient of variation, multiple regression, and analysis of variance. The increase in working capital will improve the financial performance in future.

scholarly journals A study on financial performance of pharmaceutical industry in india

2014 ◽  
Vol 1 (3) ◽  
pp. 191-209
Author(s):  
Vijayalakshmi V ◽  
Srividya M
Keyword(s):  
Standard Deviation ◽  
Public Sector ◽  
Pharmaceutical Industry ◽  
Financial Performance ◽  
Analysis Of Variance ◽  
Chemical Industry ◽  
Price Competition ◽  
Small Scale ◽  
The Core ◽  
Indian Pharmaceutical Industry

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expended drastically in the last two decades. The pharmaceutical and chemical industry in India is an extremely fragmented market with severe price competition and government price control. The Pharmaceutical Industry in India meets around 705 of the country‟s demand for bulk drugs, drug intermediates, pharmaceutical formulation, chemicals,tablets, orals and injectibles. There are approximately 250 large units and about 8000 small-scale units, which form the core of the Pharmaceutical Industry in India (including 5 central public sector units) Looking ahead, the worldwide pharma market is estimated to more than double to $1.3 billion by the year 2020.The Indian Pharmaceutical Industry is developing drastically every year. Hence an attempt has been made to analyze the profitability position of the industry withthe help of mean, standard deviation, co-efficient of variation, multiple regression, and analysis of variance. The increase in profitability will not only yield greater efficiency but also improve financial performance in future.

Working Capital Management in Select Indian Pharmaceutical Companies

2014 ◽  
pp. 1-11
Author(s):  
Debasish Sur ◽  
Sumit Kumar Maji ◽  
Deep Banerjee
Keyword(s):  
Pharmaceutical Industry ◽  
Competitive Environment ◽  
Common Phenomenon ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Efficient Management ◽  
The World ◽  
Tools And Techniques ◽  
Indian Pharmaceutical Industry

The Indian pharmaceutical industry is the fifth largest pharmaceutical industry in the world in terms of volume and the fourteenth largest in value terms. There have been sevaral notable changes in the scenario of Indian pharmaceutical industry after the signing of GATT (now WTO). The mergers, acquisitions, and takeovers at both national and international levels have become a common phenomenon in this industry. In today's challenging and competitive environment, efficient management of working capital is an integral component of the overall strategy to create shareholders' wealth. So, the task of designing appropriate strategies for managing working capital in accomplishing the objective of maximizing shareholders' wealth of companies in the Indian pharmaceutical industry is of prime importance. In this backdrop, the chapter seeks to analyze the working capital management of ten selected companies in the Indian pharmaceutical industry during the period 1996-97 to 2010-11. While satisfying the objective of the study, relevant statistical tools and techniques have been applied at appropriate places.

scholarly journals Effect of Financial Performance on Profitability in Indian Pharmaceutical Companies

2019 ◽  
Vol 8 (6) ◽  
pp. 4910-4916
Keyword(s):  
Pharmaceutical Industry ◽  
Financial Performance ◽  
National Economy ◽  
Pharmaceutical Companies ◽  
Government Control ◽  
Pharmaceutical Sector ◽  
Drug Store ◽  
Indian Pharmaceutical Industry

The total Indian pharmaceutical sector is exceedingly divided with in excess of 20,000 enlisted units. It has spread drastically over the most recent two decades. The pharmaceutical and the chemical industries in India is an amazingly separated market with solid value rivalry and government control. The pharmaceutical business in India meets around 705 of the nation's interest in bulk medications, pharmaceutical formulas, synthetics, tablets, oral and injectables. There are around 250 enormous units and around 8,000 SMUs, which structure the centre of the pharmaceutical business in India, including 4 Pubilc sector units. Looking forward, the worldwide drug store market is assessed at more than to 1.5 billion dollars constantly in 2020. The Indian pharmaceutical industry is growing significantly every year. The primary goal of this research unmistakably demonstrates that pharmaceutical organizations are working great as an industry as well as can add growth to the development of the national economy. In this way, we made an attempt to find the effect of financial performance on profitability.

scholarly journals The Interplay between Working Capital Management and a Firm’s Financial Performance across the Corporate Life Cycle

2020 ◽  
Vol 12 (4) ◽  
pp. 1661 ◽  
Author(s):  
Zanxin Wang ◽  
Minhas Akbar ◽  
Ahsan Akbar
Keyword(s):  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Life Cycle Stage ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Conservative Strategy ◽  
Corporate Life Cycle ◽  
The Impact

The purpose of this study is to examine the impact of working capital management (WCM) and working capital strategy (WCS) on firm’s financial performance across different stages of the corporate life cycle (CLC). We use Pakistani non-financial listed firms nested in 12 diverse industries over a period of 2005–2014 as the research sample and employ the hierarchical linear mixed (HLM) estimator, which can process multilevel data where observations are not completely independent. The empirical findings reveal that, overall, WCM is negatively associated with firm performance. However, this association is not static across different stages of a firm’s life cycle. For example, a negative association is more pronounced at the introduction stage followed by growth and decline stages, whereas WCM does not significantly impact the performance of mature firms. Likewise, WCS also causes varying effects on the financial performance across the CLC. A conservative strategy at the introduction, growth, and decline stages negatively affects firm performance, suggesting that these firms should adopt an aggressive strategy. Nevertheless, management of sample firms did not account for the respective life cycle stage while formulating a WCM strategy, which can seriously compromise their financial sustainability. These findings suggest that firms require customized WCM policies and WCS to attain sustainable financial performance at each stage of firm life cycle. Thus, managers should not overlook the significant role of CLC stages in their financial planning to ensure the sustainable functioning of the enterprise.

scholarly journals Reaping the Benefits of Long Term Relationship with Suppliers: An Evidence from the Saudi Chemical Industry

2016 ◽  
Vol 11 (8) ◽  
pp. 203
Author(s):  
Khalid M. Al-Shuaibi
Keyword(s):  
Supply Chain ◽  
Structural Equation Modeling ◽  
Financial Performance ◽  
Chemical Industry ◽  
Indirect Effect ◽  
Structural Equation ◽  
Equation Modeling ◽  
Supply Chain Performance

<p>Long term relationship with suppliers is broadly considered a vital contributor to supply chain performance by both practitioners and researchers. This paper investigates the role of long term relationship in strategic supplier partnership and financial performance (SSP-LR-P model). Specifically, it has observed the role of long-term supplier relationship as the driver of integration. Using structural Equation modeling (SEM) to analyze the data from 401 Saudi chemical and petrochemical firms, it is found that strategic supplier partnership has a significant direct and indirect effect on firms’ performance through the mediation of long term relationship.</p>

scholarly journals Liquidity Performance Evaluation of Select Steel Companies in India - Descriptive Study

2016 ◽  
Vol 3 (3) ◽  
pp. 193-202
Author(s):  
M. Krishnamoorthi
Keyword(s):  
Working Condition ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Effective Utilization ◽  
Business Units ◽  
Unit Management ◽  
Business Operations ◽  
Industrial Unit

To satisfy the daily needs of an industrial unit, management should think seriously about Liquidity. Working Capital is such of capital that with the help of which a business remains in working condition. It remains live for any business units, Working Capital can be said to be its life. The role of working capital in business is akin to that o heart in the human body. Funds are the life blood of business body. Just as the hart circulates the blood to various organs of body, funds are rotated to various business activities through proper working capital management and any obstruction in the smooth rotation of funds, may causes serious problem in business operations. The generating of income from assets is a very good position in the majority of large and mid-cap companies, but VISA and KALYANI fail to increase its return on assets due to inefficient and ineffective uses of assets, so these companies should take necessary step to increase income by effective utilization of assets.Int. J. Soc. Sc. Manage. Vol. 3, Issue-3: 193-202

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