Orchid Chemicals and Pharmaceuticals Limited (Orchid) is an Indian pharmaceutical company, which started its operations in 1994. For 10 years, the company's turnover has grown from 11 million to 153 million. The company's profit after tax registered five times, from 1.3 million to 6.8 million in the corresponding period. Early success was a combination of price flexibility, reduced production costs and business opportunities in deregulated markets. Orchid decided to explore the possibilities for the production of generic drugs in the regulated markets and formulations in the domestic market. Diversification for basic research was also considered. Cooperation and joint ventures have been the main route for expansion and to explore new opening of the molecule. By 2005, the Orchid is not a single product company, its business has expanded to several products in volume, and generic formulations, both in the regulated and unregulated markets. Orchid makes its presence in its new drug delivery systems and new processes of drug development. In 2005, Orchid has faced a number of problems related to financial leverage and risk management, leadership, management problems associated with joint ventures, balancing the new business model, setting global trends is a pioneer in the industry, addressing the shareholders, and develop an appropriate organization culture and process. "Hide
by Ravi Ravichandran, Ankur Roy Source: Richard Ivey School of Business Foundation 26 pages. Publication Date: September 06, 2006. Prod. #: 906M71-PDF-ENG
Related Case Solutions & Analyses:
Super 8 Motel- Guelph
World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration
CIBC-Barclays: Should Their Caribbean Operations Be Merged
Dynatrol Corp.: Andover Assembly Division
Organizing Work in Service Firms
Applied Materials: Managing Product Costs
Process Control at Polaroid (B)
Mahindra & Mahindra in South Africa
Generation Investment Management
Oakville Hydro Optimum Engine Selection
