CAPSTONE PROJECT

A Conceptualized Study on How Employer Branding

Help Organizations to Become Employer of Choice

Submitted in partial fulfillment for the ward of the degree of

Master of Management Studies (MMS)
(under University of Mumbai)

Submitted By
Pradnesha Sakpal
Roll No: 103
Under the Guidance of
Ms. Lipika Koli

MMS-IV, Batch: 2018-20

Chetana’s R. K. Institute of Management and Research,
Bandra (E), Mumbai 400 051
Ramprasad Khandelwal
Institute of Management & Research
(Affiliated to University of Mumbai & Approved by AICTE, New Delhi)

CERTIFICATE

This is to certify that the project titled “A CONCEPTUALIZED STUDY ON HOW

EMPLOYER BRANDING HELP ORGANIZATIONS TO BECOME EMPLOYER OF
CHOICE”, submitted by PRADNESHA SHAM SAKPAL to Chetana’s R.K. Institute of
Management & Research in partial fulfillment of the requirement of Master of management
Studies, has been done under the guidance of the undersigned during the period January 2020 to
April 2020.

Date:

Place: Mumbai

Faculty Guide I/C Director

Survey No. 341, Govt. Colony, Bandra (E), Mumbai 400051. Fax: 022-26423392
Tel.:26513346 / 26516643 Email: [email protected]
Website: www.crkimr.in
 DECLARATION

I hereby declare that this report submitted in partial fulfillment of the requirement of the award for
the Master of Management Studies to Chetana’s R.K. Institute of Management and Research, is
my original work and not submitted for award of any degree or diploma fellowship or for similar
titles or prizes.

I further certify that I have no objection and grant the rights to Chetana’s R.K. Institute of
Management and Research to publish any chapter/ project if they deem fit in Journals/Magazines
and newspapers etc. without my permission.

Place : Mumbai

Date : 03/04/2020

Name : Pradnesha Sakpal

Class : M.M. S / Sem – IV

Roll No. : 103

Signature :
 ACKNOWLEDGEMENTS

I would like to extend my heartfelt gratitude to my guides, for their support and mentoring during
this course. They played a key role in the success of these project with their constant guidance.
They took out time, explained me the project objectives, and helped me in each step. I gained
valuable knowledge under them, which is going to help me in my future career.

I would like to thank my Institute Director Dr. Jayshree Bhakey my internal guide Dr. Shiva prasad
& Ms. Lipika Koli, Mumbai University & Chetana’s R.K Institute of management & Research,
which gave me an opportunity to interact with excellent faculties and broadened my awareness by
giving me necessary guidance & inputs. The project would have remained incomplete without his
or her help and honest feedback.

PRADNESHA SAKPAL
 EXECUTIVE SUMMARY

The general management project is based on sun pharmaceutical limited company which
gave an overall general prospective of the company including the pharmaceutical sector as well as
the company in terms of history, acquisition, growth, future perspectives, SWOT analysis,
economic relevance, challenges & solutions, strategies used by the company, structure & culture
of the company, analysis of last five years reports their profit & losses incurred by the company,
operational statistics etc. Since it is an explanatory research the data is collected from secondary
sources. The only limitation associated with the project is practical approach is not studied.

Since my project is based on HR Specialization the functional topic is stated as - “A

conceptualized study on how employer branding help organizations to become employer of
choice”. The objectives of the study include a brief understanding of employer branding in terms
of approaches, techniques, model & strategies, employee value preposition, and how companies
can term themselves as “employer of choice”. It is an exploratory type of research were in data is
collected from secondary sources. The only constraint or limitation for the same is Employer
branding being a vast concept, certain concepts have been included and current scenario w.r.t few
companies are elaborated in the form of examples.

The CSR project is based on the understanding of social responsibility of the company
towards the social & economic development of the society as a whole. It is based on sun
pharmaceutical limited company. The basic objective of the study is to understand the CSR
initiatives taken by the company for the downtrodden people of the rural India. and to understand
the CSR norms as per the companies act, 2013.
 TABLE OF CONTENT

Particulars Page No.

PART 1 – GENERAL MANAGEMENT
Executive Summary
Chapter 1 - Introduction 1
Chapter 2 - Review of Literature 14
Chapter 3 – Methodology 15
Chapter 4 – Result 16
Chapter 5 - Discussion 19
Chapter 6 – Conclusion 21
Chapter 7 – Bibliography 22
PART 2 – FUNCTIONAL SPECIALIZATION
Executive Summary
Chapter 1 - Introduction 23
Chapter 2 - Review of Literature 27
Chapter 3 - Methodology 29
Chapter 4 – Results 30
Chapter 5 – Discussion 33
Chapter 6 – Conclusion 43
Chapter 7 – Bibliography 44
PART 3- SOCIAL RELEVANCE
Executive Summary
Chapter 1 - Introduction 45
Chapter 2 - Review of Literature 49
Chapter 3 – Methodology 50
Chapter 4 – Results 51
Chapter 5 – Discussion 53
Chapter 6 – Conclusion 58
Chapter 7 – Bibliography 59
General Management – Similarity Report
Functional Management – Similarity Report
Social Relevance – Similarity Report
Part 1: General Management
 EXECUTIVE SUMMARY
Indian Pharmaceutical sector plays a major role as it is one of the largest in the world &
the estimated worth of this sector is US $ 6 billion. The growth rate of this industry is 13% per
year. The Indian pharmaceutical Sector stood US $10.80 billion FY 2020 (up to November 2020).
The export is expected to reach US $ 22 billion by 2020 as the increase in investment in R & D
and acquisition are driving the sectors growth.

The government of India have taken major initiatives to promote this sector such as
“pharma vision 2020” that aims to make India a global leader in end to end drugs. The revenue of
Indian pharmaceutical has increased from 18.2 US$ billion to 19.89 US $ billion. According to
IBEF, the government expenditure on health in India is increased has increased up to 34.91 which
indicate that the future aspect of the industry will be booming.

This study is being conducted with an aim to understand the generic perspective of
pharmaceutical sector with emphasis on sunpharma company in detail in terms of revenue, growth,
SWOT analysis, opportunities and challenges ahead.

The objectives of the study include- To get an in-depth knowledge of the pharmaceutical sector
were in the other sub objectives includes to understand the economic relevance, challenges & future
prospects of pharmaceutical sector including the operational aspects. The only limitation or
constraint of the project was since it is made on exhaustive research based on secondary data the
practical aspects are not being covered.
 Chapter 1
Introduction of the Sector
India enjoys an important position in the global pharmaceutical sector and it is one of the
third largest providers of generic drugs on a global platform. Drugs from Indian are exported to
more than 200 countries, with the US being the key market. pharmaceutical companies of India
supply over 50 % of global demand for various vaccines including 40 % of generic demand in the
US % 25 % of all medicine in UK.

A large pool of scientists & engineers of India have the potential to steer the industry ahead. At
present over 80 % of the antiretroviral drugs that are used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by pharmaceutical firms of India.

Economic Relevance

Indian pharmaceutical sector was valued at US$ 33 billion in 2017 and exports stood at US$ 17.27
billion in FY18 &have reached US$ 19.14 billion in FY19. The Pharmaceutical exports include
bulk drugs, intermediates, drug formulations, biologicals, & herbal products and surgicals. The
exports are expected to reach US$ 20 billion by 2020.

Healthcare sector witnessed private equity investment of US$ 1.1 billion with 27 deals in first
half of 2019.The Indian pharmaceuticals market stood at Rs 1.39 lakh crore (US$ 19.89 billion)
for the year ending November 2019.The initiative by government’s Department of Pharmaceuticals
‘Pharma Vision 2020’ aims to make India a major hub for end-to-end drug discovery. A cumulative
foreign direct investment is received by the sector of US$ 16.27 billion between April 2000 and
September 2019.According to Budget 2019-20, total allocation to the Ministry of Health &Family
Welfare is Rs 62,599 crore (US$ 8.96 billion).

Government expenditure according to Economic Survey 2018-19, (as a percentage of GDP)

increased to 1.5 per cent in 2018-19 from 1.2 per cent in 2014-15 for health. pharmaceutical sector
of India is expected to grow at a CAGR of 22.4 per cent and medical devices market is expected to

1
grow US$ 55 billion by 2020. Foreign direct investment increased to 74 per cent in existing
pharmaceutical companies and 100 per cent for new projects.

Some of the major challenges faced by pharmaceutical industries in India:

The dynamic nature of Indian pharmaceutical market, healthcare objectives and legal system pose
unique challenges for the pharmaceuticals sector in India which includes-

Forged Medicine - Fake versions of high value and high-volume brands of the pharmaceutical
companies in India are adversely affecting their business performance.

Human Resource (Talent) Pool - In India, the demand for these services has outstripped supply.
There is a huge shortfall in ‘Healthcare Manpower’ of the country, right from Pharmacists, Nurses
and Doctors and related.

Affordable drugs price- Indian pharmaceutical Industry is facing a pressure from both
government and the civil society to make generic medicines more affordable for a large section of
the population of the country.

Insufficient health insurance schemes - As compared to other countries like South Africa, Sri
Lanka and Brazil, the health insurance coverage is relatively low in India. While the present health
insurance schemes cover only hospitalization expenses

Solutions to some of the problem:

• The National Health Protection Scheme is one of the largest government funded healthcare
programme in the world, which was announced in union budget 2018-19 is expected to benefit
100 million poor families in the country by providing a cover of up to Rs 5 lakh (US$ 7,723.2)
per family per year for secondary and tertiary care hospitalization.

2
• A mechanism was introduced by government such as the Drug Price Control Order and the
National Pharmaceutical Pricing Authority to deal with the issue of affordability and
availability of medicines.

• The government of India have taken significant steps to reduce costs and bring down healthcare
expenses. In adding, the emphasizes on rural health programmes, lifesaving drugs and
preventive vaccines also augurs well for the pharmaceutical companies.

Indian Pharmaceutical Industry: Swot Analysis

• Strengths-minimum cost of innovation, manufacturing and operations, &Low cost of skilled

manpower,

• Weaknesses-Severe pricing regulations, presence of more unorganised players versus the

organised ones.

• Opportunities-Health insurance sector and increase in per capita income.

• Threats- few low-cost countries such as China and Israel affecting outsourcing demand for
Indian pharmaceutical products &Entry of foreign players

Future prospects:

The pharmaceutical company will have a future in India as well as aboard. It is growing at a
compounded annually growth rate of 15% from last 5 years. The amount of money spend in
medicine is intended to grow at a rate of 9- 12 % over the forthcoming five years.

The pharmaceutical sector in India will be rising which will create growth avenues for the
companies because of four major factors which includes growth in healthcare financial products,
demand in generic markets, rise in outsourcing activities & demand from emerging segments.
Since, India has a vast pool of trained pharmaceutical scientists, doctors & researchers it opens up

3
avenues for joint collaborative research for new drug discoveries along with joint intellectual
property rights.

4
 1.1 Introduction of the Company

Sun Pharmaceuticals Limited is the largest pharmaceutical company in India and the fourth
largest specialty generic company in the world. Indian companies manufacture and sells high-
quality, medicines in over 150 countries across 6 continents. They had an intellectual capital of
2,000+ scientists, and had invested over 7% of its annual revenues in R&D. The company has
over 48 manufacturing facilities across the globe. Almost 30 of their brands are among the top 300
pharma brands in India.

Sunpharma markets its pharmaceutical formulations as generics and branded generics in India and
all major international markets. The therapeutic segments covered by the company's portfolio of
2000+ molecules include psychiatry, anti-infectives, neurology, cardiology, orthopaedics,
diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology,
respiratory, oncology, dental and nutritionals. The company also make specialty APIs that
include steroids, hormones, peptides and anti-cancers manufactured at 14 international standard
manufacturing facilities around the world.

The business of sunpharma is broadly categorized into four segments: Active Pharmaceutical
Ingredients (API), International Branded Generics, Indian Branded Generics and US Generics.

5
History

Sun Pharmaceutical Industries Ltd was incorporated in Kolkata in 1983. It was established by Dilip
Shanghvi and his family with 5 products to treat psychiatry ailments and 2 marketing team of 2
people. They started with 2 states (West Bengal and Bihar) and roll out national level sales within
2 years i.e. by 1985. cardiology products were introduced in 1987 followed by gastroenterology
products in 1989.

The company established the SPARC research center in 1993 to create a base of strong product
and process development skills. In consequent years, the company invested significantly in
Research & Development of pharmaceutical formulations. And listed on the main stock
exchanges in India in 1994 were they has grown to become the largest chronic prescription
company in India today.

Growth &Acquisition

• It was established in 1983 by Dilip Shanghvi with 5 psychiatry product & 2 marketing person.
In 1994 they launched an IPO.
• In 1996, they acquired API Plant from knoll pharma at Ahmednagar, Maharashtra, India
followed by an expansion of their sales network in 24 countries.
• In 1997, the company purchased equity share stakes in TDPL & MJ Pharma and an
international acquisition of caraco pharmaceutical laboratories, USA.
• In 1999, they acquired milmet lab & Gujarat lyka organics, India followed by an acquisition of
Pradeep drug company, India in 2000.
• In 2004, they acquired phlox pharma & niche brands from women healthcare
• In 2005, they completed a buyout of manufacturing unit in Bryan followed by an acquisition
of ICN business in hungry from valeant pharma.
• In 2007, sunpharma demerged SPARC in to separate entity becoming the first pure research
company to be listed on Indian stock exchange.

6
• In 2013, sunpharma catapults Ranbaxy becoming the fifth largest specialty generic
pharmaceutical company.
• In 2014, sunpharma acquired pharmalucence in USA

Vision

Reaching People and Touching Lives Globally as a Leading Provider of Valued Medicines

Mission

To provide good health and happiness for all, by utilizing modern science to bring the essence of
nature and provide effective and high-quality medicines at affordable prices.

Values
• Quality - Get it right the first time

• Reliability - Maintain efficiency & discipline in all processes & systems and fulfil the promises
made to stakeholders

• Consistency - Endeavour to bring new products to the market & consistently deliver value to
stakeholders

• Trust - Be transparent in dealings

• Innovation - Implement new ideas & technologies to meet unmet needs and think ahead of
times

7
Operational Statistics/Facts and Figures

Revenue: ₹300,914 million (2019)[

Employees: 32000 (March 2019)

Headquarters: Mumbai (India)

Presence: more than 100 countries

At present Shareholding:

On April 1st 2020, promoters of the company hold 54.61% of the company’s shares & the rest i.e.
44.39 % is apprehended by a mix of financial bodies & domestic corporate bodies.

Source: Wikipedia

8
Organization Culture & Structure

Each person is unique in his own way, similarly organizations also have a unique
personality. This unique personality of the organization is referred to as its culture. Organizational
culture can also be described as the behaviour of humans who are part of an organization and the
meanings that the people attach to their actions. Organizational culture includes the values, visions,
norms, working language, systems, symbols, beliefs and habits of an organization. The pattern of
such collective behaviour and assumptions are taught to new entrants in the organization as a way
of perceiving, and even thinking and feeling. Organizational culture affects the way people and
groups interact with each other, with clients, and with other external stakeholders.
At sunpharma, all the employees are always presented with challenging work and responsibility
and are the given the freedom to execute their work

The components of work culture at sunpharma includes:

Meritocracy: The culture of the company is strongly performance driven were in the employees
are promoted based on their caliber &capacity.

Autonomy and Entrepreneurship: It allows the employees of the company to take risk, be
pioneering & enterprising in their respective domains.

Creative and Innovation: Entrepreneurial culture is all about envisioning opportunity &
capitalizing on them, and this is not restricted only to employees who belong to the research &
development department. hence creativity is a part and parcel of every employee daily work routine

Employee Recognition: In sunpharma, the company takes conscious effort to recognize and
appreciate the employee performance through various programmes.

Organization Structure
It is a systematic process that refers how job tasks are divided, grouped & coordinated in an
organization. The three components of organizational structure are complexity, centralization &

9
Formalization. There are 3 different types of organizational structure which includes functional,
divisional & matrix these structures are applied depending upon the domain in which the
organization operates & serves.

Sun Pharma follows a Functional Unitary Structure

Structured Activities are

around a CEO group together
and limited by common
corporate staff function

Each functional
Specialization is
unit has
built into the
different set of
organizational
duties and
structure
responsibility

• Optimze operational Cost

• Vertical Integration

• Diffrentiation Strategy

• Provides functional Clarity

10
Strategies Adopted at Sunpharma

The company is trying to achieve cost leadership by:

Vertical Integration: complex API, which require special skills and technology, are developed and
scaled up for both API and dosage forms.

11
 1.2: Objectives

The Objective of the study is to get an in-depth knowledge of the pharmaceutical sector.

The other sub-objectives are as follows: -

• To understand the economic relevance, challenges & future prospects of pharmaceutical sector

• To study sunpharma pharmaceutical limited from a generic prospective and to get a better
understanding of its operations

12
 1.3: Limitations

• The study is limited to sun pharma limited and Indian pharmaceutical Sector.

• Since my study is based on the secondary data, the practical aspects of are not learnt

13
 Chapter 2
Review of Literature

B Karunakar (2016) examined – The dynamic changes in Indian Pharmaceutical Industry

This article discusses about the growth and evolution of Indian Pharmaceutical Industry it provides
with an industry analysis and the strategies adopted by the company. It includes the future
challenges and opportunity for this industry.

Mr. Ashis Mohanty (2014) examined – Pharmaceutical Industry in India

This research paper studies about the different types of drug systems in India, market value & how
the production of pharmaceutical drugs touched new heights.

The Indian Pharmaceutical Alliance examined – The Indian pharmaceutical Industry – The
way forward
This paper studies about the Indian pharmaceutical industry contribution to global health outcomes,
growth aspiration, opportunities, challenges& government initiatives.

FICCI examined- Use of artificial Intelligence and advanced analytics in pharmaceutical

Industry
It studies about the role of AI in pharmaceutical value chain in terms of drug discovery, applications
in other areas such as drug dosage and safety, manufacturing and supply chain and
commercialization is being further explored.

14
 Chapter 3
Methodology

Nature of Study

Being an explanatory research, it is based on secondary data, collected from International journals,
newspapers, articles and magazines. Considering the objectives of the study descriptive type of
research is used for more precision and rigorous analysis of research study. The accessible
secondary date is intensively used for the research study.

Study Area

The study is limited to sun pharmaceutical industries limited and Indian pharmaceutical Sector.

Data Collection

Secondary source of data will be used form my research like journals, newspapers, article and
magazines& last five years financial reports.

15
 Chapter 4
Results

Structure of pharmaceutical sector in India

Pharmaceutical
s

Active Pharmaceutical Formulations

Ingredients/ Bulk drugs

Branded Generics Branded Generics

• Cardiovascular
• Anti-infectives
• Respiratory
• Respiratory
• Gastro-Intestinal
Pain • Pain
• Gynecology
• Neurological

Source: Dun and Bradstreet

The industry comprises of four major segments:

• Active pharmaceutical Ingredient

• Contract research and manufacturing
• Formulations
• Biosimilar

16
Revenue- Indian Pharmaceutical Sector

Annual Revenue of Indian Pharmaceutical Market (US$

25 billion)

19.89
20
17.87 18.2
16.41
15.53
US $Billion

15

10

0
2015 2016
Years 2017 2018 2019

Source: IBEF

17
Profit & Loss – Sun Pharmaceutical Company

Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

12Months 12Months 12Months 12Months 12Months
INCOME:
Sales Turnover 10303.21 9006.25 7793.20 7744.89 8168.74
Excise Duty .00 .00 109.24 130.43 151.55
NET SALES 10303.21 9006.25 7683.96 7614.46 8017.19
Other Income 1271.4400 1128.0400 515.0800 431.8200 211.5800
TOTAL INCOME 11574.65 10134.29 8199.04 8046.28 8228.77

EXPENDITURE
Manufacturing
407.28 376.17 349.23 370.48 382.52
Expenses
Material Consumed 4109.54 4041.34 3726.42 3481.75 3858.92
Personal Expenses 1571.34 1625.00 1499.88 1480.51 1486.68
Selling Expenses .00 .00 .00 .00 .00
Administrative
2458.79 1985.48 1994.46 2716.70 2847.69
Expenses
Expenses
.00 .00 .00 .00 .00
Capitalised
Provisions Made .00 .00 .00 .00 .00
TOTAL
8546.95 8027.99 7569.99 8049.44 8575.81
EXPENDITURE
Operating Profit 1756.26 978.26 113.97 -434.98 -558.62
EBITDA 3027.70 2106.30 629.05 -3.16 -347.04
Depreciation 552.95 487.24 422.28 463.98 660.68
Other Write-offs .00 .00 .00 .00 .00
EBIT 2474.75 1619.06 206.77 -467.14 -1007.72
Interest 540.92 388.31 223.57 530.64 551.25
EBT 1933.83 1230.75 -16.80 -997.78 -1558.97
Taxes -97.15 -25.39 6.04 5.45 -84.84
Profit and Loss for
2030.98 1256.14 -22.84 -1003.23 -1474.13
the Year

Interpretation:

Sunpharma has faced losses for three years from march 2015 to April 2018
It has turned positive from march 2018 following an overall positive increment in profit.

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 Chapter 5
Discussion

Monetary details about the four major segments of this industry:

• The domestic API consumption is expected to reach US$ 18.8 billion by FY 2022 and at present
India imports over 60 per cent of its APIs from other countries.
• CRAMS industry has a fragmented market of more than 1000 players and had posted 48 %
CAGR between FY15-18 and expected to witness a strong growth over 25 per cent over
2018-21.
• India is the largest exporter of formulations in terms of volume around 14 % market share &
12th in terms of export value. Its exports from India has reached US$ 14.39 billion during FY19
& US$ 5.1 billion in FY20 (up to August’19) expecting a double-digit growth over next five
years.
• The government plans to allocate US$ 70 million for local players to develop Biosimilar& the
domestic market is expected to reach US$ 40 billion by 2030.

The Indian pharmaceutical industry has been gaining traction because of some of the
aforementioned initiatives taken up by the government which include national health care policy
to increase health care sector, patent act amendment 2015, following an increase in foreign direct
investment to 74 % in existing pharmaceutical company & 100 % for new projects, “pharma vision
2020” to make India a global leader in end to end drug manufacturing, and the
IndianpharmaceuticalsectorisexpectedtogrowataCAGRof22.4percentinthenearfutureandmedicald
evice market expected to grow US$ 55 billion by 2020.

The India’s domestic pharmaceutical market turnover reached from Rs 116,389 crore (US$
17.87 billion) in2017 to Rs 129,015 crore (US$ 18.12 billion) in 2018, growing at the rate of 9.4
per cent on yearly basis. The medicinespendinginIndiaisprojectedtogrow9-12percent over the next
five years, which will help India in becomingoneofthetop10countriesinterms of medicines pending.
The cost of production is significantly lower in India in contrast with US and almost half of that of

19
Europe which helps India in giving competitive edge over others. The Indian pharmaceuticals
market stood at Rs 1.39 lakh crore (US$ 19.89 billion) for the year ending November 2019.

20
 Chapter 6
Conclusion

Being the dynamic sector there are both interesting & challenging things ahead for this industry:

• At present, the industry is growing at a rate of 9-10% on yearly basis, which is a healthy growth
because this is largely a volume led business. This is a fundamental advantage of an emerging
market economy like India;

• The Indian Pharmaceutical Industry is booming at US $ 18.12 billion and is expected to grow
at CAGR of 22.4 percent in near future due to the favoring policies, FDI investment & aid
provided by the Indian Government.

• It also expected that the Indian pharmaceutical industry that has created 2.7 million jobs is
expected to create 30-40% more job opportunities.

• Moreover, the health care, isexpectedtocrossUS$372billion by2022.

• Besides, the IPA has set out specific goals to guide and enable the pharmaceutical industry in
India to grow and develop.

21
 Chapter 7
Reference

All the References used during the Project. Includes the following, as the case may be:

• https://www.ibef.org/industry/pharmaceutical-india/showcase
• Consolidated FDI Policy, Department for Promotion of Industry and Internal Trade (DPIIT),
Press Information Bureau (PIB), Media Reports, Pharmaceuticals Export Promotion Council,
AIOCD-AWACS, IQVIA, *Top 10 companies as per research by HDFC Securities
• https://www.pharmatutor.org/articles/future-growth-prospects-of-indian-pharmaceutical-
industry
• https://www.sunpharma.com/about-us/milestones
• https://economictimes.indiatimes.com/markets/stocks/news/sun-pharma-announces-rs-1700-
crore-share-buyback/articleshow/74671004.cms
• https://www.europeanpharmaceuticalreview.com/article/103336/the-potential-of-the-indian-
pharmaceutical-industry/
• https://health.economictimes.indiatimes.com/news/pharma/the-state-of-pharmaceutical-
industry-in-india-an-overview/60273583
• INDIAN PHARMACEUTICAL INDUSTRY: THE CHANGING DYNAMICSISSN 2319-
345X www.ijmrbs.comVol. 5, No. 2, April 2016
• Ashis Mohanty, Dr. Lalat K Pani and Sukhamaya Swain: Receivable Management: A case
study of Indian Pharmaceutical Industry, Indian Journal of Applied Research (Volume: 4,
Issue:1, Jan 2014; ISSN: 2249-555X).

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23
 Part 2: Functional Management
(A Conceptualized Study on How Employer Branding
Help Organization to Become Employer of Choice)
 EXECUTIVE SUMMARY

In this complex dynamic and ambiguous environment having a talented employee in an

organization creates a competitive edge for the company. The irony is that talent is a rare species.
As Peter Drucker rightly said that businesses are traditionally been built on two dimensions:
economic and human. The success of any organization depends upon how talented its employee
base is. Corporate leaders have looked on other functions such as Product development, marketing
& sales to drive success.

In current scenario more and more eye looking upon HR professional as a call for need to recruit
and retain talent for a longer period of time. This has made HR to look in to other fields and
branding the HR function came out to be one of the best ways to address the issue.

“Branding” is a process of building a favorable image for a product or company that differentiate
it in the minds of the prospects and end user from other competitors. Whether it can be product,
organization or human being.

HR Branding has a similar intention like the normal branding. However, employer branding
encompasses all other brandings of HR functions.

According to Ambler &Barrow, employer branding can be defined in terms of “benefits” such as
a package of economics, functional and psychological benefits provided by employment, and
identified with the employing organization.

Inspired by this the paper try to find out some of the best employer branding practices, approaches
& strategies in companies that helps them to become the employer of choice, how ‘Employee Value
Proposition’ forms the basis of employer branding and how organizations can define themselves
as ‘employer of choice’.

Since this study was based on conceptual data the practical approach for the same is not covered.
 Chapter 1
Introduction of Employer Branding

As organizations are living in the era of Talent War, the new struggle among
organizations is to recruit qualified employees with a diversity of soft and technical qualifications.
Employer branding can be seen as a melting pot of HR (employer) and marketing (branding).
Hence it is likely to create magical spell that will allow organization to differentiate themselves
from rest of its competitors. It helps in aligning both the internal practices and the external image
in an attempt to achieve positive employees’ engagement and satisfaction. Employer branding is
the process of creating and maintaining the company employer brand so as to become employer of
choice.
According to recent studies by SHRM, employer branding is considered as a strategic tool in
recruiting and retaining top talent.

Employer Branding is a story-telling process that leverage the image of the employer and help
bring the employer closer to the candidate pool. Unlike, Marketing is the communicating process
of selling a product or service to customers & HRM plays the role of attraction, recruitment,
selecting, training, development, assessment, rewarding and activities related to employment.

It is also considered as a connection between these two fields of marketing and HR, as it involves
building an appealing image of the employer in the mind of potential employees. Thus, marketing
concepts of branding, image, reputation, awareness, and HR concepts of organizational identity
and employee satisfaction are converged in this concept of Employer Branding.

It is the process of portraying an image of the firm to its prospective employees in the labor market
as a great working place (Shaker and Ahmed, 2014).
In marketing terms an employer brand is grounded in three terms: -
• Functional benefits- Tangible rewards (Ex- salary, convenient location)
• Emotional benefits- Intangible rewards (Ex- mission, pride, status, job satisfactions)

23
• Reasons to believe -Validation of the employer claims (Ex- “My friend says XYZ company is
a great place to work”)

24
 1.1 Objectives

The objective of the study is to gain an in-depth understanding of how employer branding,
help companies to become an employer of choice.

Along with the aforementioned objective, the other sub - objectives are:

• To do an analysis of some of the best employer branding practices, approaches & strategies in
companies that helps them to become the employer of choice.

• To define how ‘Employee Value Proposition’ forms basis for employer branding.

• To understand how organizations can define themselves as the “Employer of Choice”.

25
 1.2 Limitations of the study

• Since this study is based on the secondary data, the practical approach to employer branding
is not included

• Employer branding being a vast concept, certain concepts have been included and current
scenario w.r.t few companies are elaborated in the form of examples.

26
 Chapter 2
Review of Literature

Employer Branding- The term branding was initially just used to differentiate tangible products
but over a period of time it is used to set apart people, places & Firms (Scientific research Journal,
August 2015). It was first coined in 1990 by Tim Ambler and Simon Barrow, as a way of combining
branding techniques with human resource practices (International Journal, 2017).

Employer of choice–It is defined as an employer that provides fantastic and an extraordinary work
environment that helps in attracting and retaining superior performing employees in the
organization and such an environment favor the well-being of the employees and customers.
(employerofchoice.com) When your company is an employer of choice, it indicates that it is a great
place to work, people desire to work for you, people wish to stay with you even when they are
poached by another employer.

To be an employer of choice an organization needs to have a strong employer brand that

distinguish one’s organization and articulate point of difference (baskool.com). The main aspects
in attracting employees to an "employer of choice"(Moroko and Uncles, 2009), prestigious
employer (Ambler et. al., 1996), an employer that can reflect self-image "who I am?" (Aaker,
1997), a good working environment (levering, 1996; Woodruffe, 2006), organizational image (Belt
and Paolillo, 1982) dynamic business process, companies concern about the well-being of
employees, task variety, clear opportunities for long-term career progression (Terjesen, 2007)

Employee Value Proposition (EVP)- It is an important component of employer branding. It is

defined as a set of associations and offerings that an organization provides in return for the skills,
capabilities and experiences an employee brings to the organization (Talent lyft). It is collection of
attributes perceived as value in the organization or outside (Ober, 2016, p. 350). An effectively
designed and realized EVP attracts new employees and increase their interest in the perspective
employer (Maxwell, Knox, 2009, Robertson, Khatibi, 2012) To have a very strong employer

27
branding strategy an organization needs to have a strong EVP (which have building blocks such
as compensations, benefits, career, work environment& Culture) (www.talentlyft.com)

28
 Chapter 3
Methodology

Nature of Study

Being an explanatory research, based on secondary data from International journals, newspapers,
articled, research papers, international research journals & magazines. The accessible secondary date
is intensively used for the research study.

Study Area

The study is conducted on a generic level. elaborating examples of few companies.

Data Collection

Secondary sources of data are used for my research like journals, newspapers, article and magazines.

29
 Chapter 4
Results

Employer Branding has eight different components such as-

• Culture of hiring and sequential development,
• Public recognition
• Striking a balance between high manufacturing and best management
• Story telling
• Becoming a benchmark firm,
• Branding assessment metrics
• Improvising candidate awareness of best practices and
• Getting talked about

These are considered to be the major components of successful employer branding

Employer Branding Model:

It is a four-step process for activating an Employer Brand

Discovery

Analysis Implementation

Measurement

Source: Research Gate

Employer Branding Strategy

An appropriate employer branding strategy allows you to control and positively change the dialogue
surrounding one’s company, to ensure higher talent acquisition and retention. In layman language,
employer branding is how you market your company to job seekers, and what employees say about

30
your company as a workplace. A good employer branding strategy can help you attract better talent,
cut down on hiring costs & reduce employee turnover.

Key strategies observed, as a part of the best practices follows by various companies:
• Define your company’s unique value preposition
• Write an employer value proposition
• Conduct employer Brand audit
• Leverage current employees
• Cultivate a strong on boarding process
• Offer learning and development opportunities
• Use video, blog posts, photos, and slideshows to tell your company story
• Create a strong diversity and inclusion initiative

Approaches to Employer Branding

Internal employer branding - It is an internal activity directed towards current employees and it is
use to create a sense of commitment, satisfaction, loyalty and identification within the employees of
the organization.

Some of the techniques included are as follows:

Front office, stay interview, exit interview, employee satisfaction etc.

External employer branding - It is the sum of all the firm’s activities that are aimed at attracting
employees. So, it focused on attracting the potential employees that the organization needs to hire in
the current situation.
Some of the techniques included are as follows:

Usage of job sites, banners, Presentation & seminars, public events, online social networking,
companies career website page etc.

31
Examples of Employer Branding Practices followed in top companies:
• IBM
• Starbucks
• Google
• Canvas
• Hotjar
• Netflix
• DRW
• Acuity Insurance
• EMC

32
 Chapter 5
Discussion

The detail description of employer branding model includes:

Discovery: This process helps the organization to identify its unique positive qualities. The discovery
of existing brands helps in employer brand building process. The following are the things to be done
in this stage:

• Senior management workshop

• Employee survey
• Internal and External focus group
• Select external partners
• Building rapport with marketing and communicating teams.

Analysis- Creation: It comprises two steps that is the analysis of the organization’s default brand and
creating new employer brand. This is the critical stage between the input and output. Companies starts
to get a clear picture of interpretation what it stands for, offers and requires as an employer. The
following are the things to be done in this stage:

• Define brand attributes

• Define overall employment value proposition
• Associate specific behavior with each attribute

Implementation- Communication: Third stage showcases the brand to all key stakeholders and
employees of the organization. Beforehand the organization rushes to apply the brand to its next big
recruitment push, it should make sure that it can deliver what the brand promises. The following should
be practiced during implementation:

• Fair treatment
• Impartial, fair and growth promoting organization structure.
• Trustful & open-channeled communication.

33
 • Timely decision making.

Measurement - Maintenance: At this stage, the brand starts to make its presence felt in day to day
measurement. This helps to demonstrate improvement overall. In this stage the brand first time will
be able to and demonstrate improvements on its original baseline measures and it will be clear to all
optimization the brand is delivering real value. The following are the things to be done in this stage:

• Probe internal response to and

• Probe external perception
• Measure improvements in recruitment and retention metrics
• Review and Optimize the brand experience

Key Strategies of Employer Branding:

• Define your company’s unique value preposition

To create an employer brand the company must first define its vision, mission culture & value statement
clearly were in it helps them to understand their business needs and then work backward to understand
what kind of employees they want to acquire to fulfill these objectives. For example, each for America's
company mission statement -- "One day, all children in this nation will have the opportunity to attain
an excellent education. "Using this statement as a guideline, the company is then able to tell a
compelling brand employer story on their Values page.( Teach For America finds, develops, and
supports a diverse network of leaders, working together to end educational inequity).

• Write an employer value proposition

EVP is a marketing message and a promise. It is something that your recruiter can discuss with potential
candidates. It has nothing to do with compensation. One should try to evoke passion in potential
candidates by expressing your company's positive impact on the world, or deeper purpose. People want
to feel their work is meaningful, often even paycheck. For example- Accenture, that convey an EVP
on the career page which state "Help build the future. Be yourself, make a difference.

34
• Conduct employer Brand audit
It indicates that one should try to find out the reputation of one’s company in outside market(externally)
in terms of how is it perceived by others with the help of internal survey, social media searches, one
can review websites like glass door to understand employee’s perspective. Your research should

indicate what is the most adorable part of your company which can be highlighted by the company as
well as areas of improvement to strength the employer brand.

• Leverage current employees

The perspective employees will can more attracted towards your company when they hear from present
employees who are working there. You also might leverage employees by asking them to post on their
social media accounts when company does a fun giveaway or company outing. One can simply ask
their employees to post a picture on Instagram or Facebook with a hashtag you've created. This is a fun
yet powerful way for your own employees to share your company's culture with their own networks.

• Cultivate a strong on boarding process

Imparting a positive company brand image starts with a good onboarding process. It is important you
get employees engaged and excited about their roles, teams, from the start. By arming your new
employees with the instructions and tools necessary to excel in their roles, you're ensuring a smooth
transition, lower turnover rates, and more productive teams.

• Offer learning and development opportunities

If you allow employees to pursue learning opportunities and become proficient in new skills, you will
be demonstrating that your company's emphasis on learning and improvement. And by challenging
your employees, you are ensuring they won't get bored in their roles - which could lead to higher
retention rates.as they develop new skills, they become more valuable employees for the company
which creates a win – win situation for both.

• Use video, blog posts, photos, and slideshows to tell your company story

35
While implementing a strategy to improve the market's perception of your product or service one need
to communicate message through various channels such as videos, photos, slideshows, blogs, and other

forms of messaging to ensure you're reaching the largest audience Similarly, it's critical one uses high-
quality videos, photos, and text to tell their company story. one might consider putting employee
interviews on their job page, or a SlideShare created by CEO on their About Us page.

• Create a strong diversity and inclusion initiative

For creating a strong employer brand, it is critical you show your commitment to building diverse
teams. There are plenty of company benefits to investing in D&I initiatives, including more innovative
ideas, a stronger workplace culture, and better customer service.

There are 2 approaches to employer branding

First is the “Inside - out approach” were in the company try to create a powerful branding internally
through employee experience and try to turn its employees in to brand advocates. Second, “Outside -
in approach” were in the company try to create visibility of itself in the external markets with the help
of various tacit such as with the company culture, pay packages, why it is a great place to work.

Internal Employer Branding

It is an internal activity directed towards current employees and it is use to create a sense of
commitment, satisfaction, loyalty and identification within the employees of the organization.

Some of the Techniques for Internal employee branding-

Front office: It is well said that first impression is last impression. It should be kept neat &clean with
a pleasant receptionist who always maintains freshness and welcomes the guests with courtesy.

Stays interview: HR plays an important role while conducting stay interview in which they can
interact with the employee and ask them regarding their career prospects, there configuration with the

36
company, there feedback regarding their concerned departments, etc. These feedbacks could be
analyzed and an internal brand image of the company can be created.

Exit interview: It help an employer in initiating the immediate reaction among the employees. So, by
analyzing the exiting reasons organizations can overcome the justified ones in the future.

Satisfaction of employees: It is the most important for an organization to grow. A satisfied employee
is a productive employee. It helps in creating good and positive rapport for the company.

Information on policy: A policy should be designed in such a way that it holds good even after a long
period of time. A regular internal policy changes end same message to the outer world that the
company is not consistent and reliable.

Customer orientation: Customers are always the most critical factors in business activities. The
employees/ workforce should always be motivated towards delivery of customers’ perceived
requirements.

Participation of Employee: Try to ensure the maximum participation from the employee side, either
in term s of internal events participation or external events.

External Employer Branding

It is the sum of all the firm’s activities that are aimed at attracting employees. So, it focused on
attracting the potential employees that the organization needs to hire in the current situation. In external
branding, marketing the organization’s Employer Value Proposition to the right audience is a key
factor for success. External employer branding focuses to create, precise and transparent image of the
firm as a great place to work for the potential employees that the firm wants to attract.

Techniques of external branding are as follows:

Usage of job sites: As HR the first thing which comes to the mind is recruitment, so Job sites also
offer good branding opportunities through different means like Pop ups, etc.

37
Banners: It is one of a good mean for branding. It can be of both types Online & Street banners. By
Online banner, the organization name will be flashed on different web pages as per your choice and
price.

Presentation & seminars: The organization can organize talks, presentations, seminars etc. f or
attracting people towards one’s organization.

(CSR): The association can be in any mode either getting associated with a Chari table Trust or a
NGO or some other public venture.

Public events: It is one of the major ways of creating a brand image. Companies can participate in
any of the public event and assuring that it does not get disappeared in the crowd of many brands or
big names.

Newspapers: It can be done through newspapers as well. If you target the general public, you can go
for advertisements considering the individual day circulation, target readers, rapport of newspaper,
type of newspaper etc. If you target only to employ people for your workforce requirement, one can
place job Ads

Email- ID: It is related to job portals; the organization can create an auto reply which can contain
brief description of the key aspects of candidate’s and public interest

Careers page on company websites: what it is that the company career page offers to the employee
apart from job opportunities in terms of work life balance, learning etc.

Online social networking: how do different outlet talk about your company, for example - glass door

38
Storytelling: Encourage employees to write their own stories in terms of written or video forms for
example life in current company or why I applied stories.

Attractive practices/policies/ benefits/ employee welfare schemes

Examples of Employer Branding Practices followed in top companies:

• IBM
The company has managed to reinvent themselves for talent seeking with a more casual, informal
culture. Their careers pages not only tackle workers at every stage in their professional life, but they
also feature engaging & often exciting videos about the work being done there for example:Interms of
EVP Such as help change the world, learning, growth & opportunities, open culture, glass door rating
of the company etc.

• Canvas

It is a tool that helps non-designers, as well as professional designer build outstanding designs. Their
career page is as lively as its graphics designing tool with vibrant videos about life at the company start
playing. They swiftly introduce their different teams to the prospective candidates. They go in detailing
how their internal teams work. Thus, giving a gist of how the work environment and the company
culture. In addition, they have pictures depicting life at canvas and reasoning why an individual should
join them. They have a career page on tips on acing a role, job interviews.

• Netflix

It is an online streaming platform that allows you to watch TV shows, movies, documentaries, etc. on
a subscription basis. They have an amazing employer branding strategy which is visible through their
website where they speak about their vacation policy, parental leave policy. The website will also try
to convey an individual how much they value their employees and will showcase their rich company
culture. They have a blog dedicated for their employees where they share their experience working
with the company and being a better individual.

39
• Starbucks

The best employer strategy is the one that fully incorporate the company current employees. Starbucks
does this by relying heavily on their social media platform were in present employees participate in
#sbuxjobschat hashtag conversation & potential hires are able to interact with them via Instagram and
Twitter accounts. By showing this level of dedication to hiring and nurturing fresh talent,
thusempowering employees to provide feedback via social channels, Starbucks establishes itself as a
place that cares deeply about its employees.

• Google

One of the most interesting study that google does from the many things that they do for employer
branding is conducting their own study on work life balance and try to create an environment that they
thrive in They talk to employees about their lives at work and out of work to determine what they
complain about, what they feel they need, and what inspires them and then look for creative ways to
eliminate obstacles that might hinder their productivity. Health, support, and empowerment are the key
factors.

• Hotjar

Hotjar helps you monitor user’s behaviors and experiences on website. Thus, helping to gain an insight
in user experience. The careers page of their website gives you a quick peek into their company culture,
beliefs perks they offer to their candidates and an image galleries and videos of their outings. Along
with showing job vacancies they show their recruitment process transparent for their prospective
candidates. They have demonstrated the same in the form of a flow diagram on their careers page. They
share an animated introductory video of the company’s product so that the potential job seekers know
what the company does.

40
• DRW

They call attention to their careers page with a notification bubble in the navigation bar that appears all
over the website and tells readers the number of open positions and then the company closes the deal
with employee testimonies describing the creative atmosphere at DRW.

• Johnson & Johnson’s Career Stories & General Motors’ Employee Stories

Employees share their real-life experience of working with the company via videos podcast which
makes it appealing to the potential employee.

• Acuity Insurance

Wisconsin-based Acuity Insurances has a great employer brand that inspires others. They offer
employees incredible perks, including unlimited education reimbursement, compressed workweeks,
and significant medical plans. The company makes it a point to give employees a say in the future of
the company with town hall meetings, executive facetime and charity donations directed by employee
values.

• EMC

➢ They have a dedicated employer branding group who are charged with furthering and attracting the
employees to EMC.

➢ Visual talk radio & A “Calendar of Cool” wiki is used to highlight upcoming events

➢ Employee testimonial podcasts & employee branding blogs

➢ Visual identity (cool Imagery)

➢ Facebook page

➢ Virtual world recruiting

➢ Job podcasting- They recently experimented with job podcasting which allows the hiring manager
to actually talk about the job opening. The hiring manager can bring the job to life and paint the

41
picture in the perspective job applicants mind as it is a very effective way of selling a hard-to-fill
job opening and with a more personal approach.

42
 Chapter 6
Conclusion

Employer Branding is a crucial piece of effective talent strategy providing competitive advantage to
companies. By strengthening once employer brand, companies are able to focus less on overcoming
the talent shortage, helps in enhancing talent pipeline &better employee retention. In order for Human
resource managers to drive a strong employer brand, it is critical to

• To assess and shape an authentic message of what the organization stands for,
• To ensure that the message is communicated by levering the right channels, and
• On a continually measure evaluate the effectiveness of branding initiatives against the
organization’s talent goals.

In an increasingly difficult labour market for attracting and retaining talent, organizations need to apply
brand management strategy and techniques for creating meaning and relevance to current & future
perspective employees. Employer branding is one such strategy that ensures the Organization is able
to attract, engage and retain the building blocks of what is recognized as a firm source of greatest
competitive advantage – its human capital.

In current scenario, an effective employer brand is essential for gaining competitive advantage.
Companies in India are becoming intentionally strategic to utilize the employer brand to attract and
retain talent for the expansion and growth. The emphasize on competitive advantage is leading many
Indian firms to rethink their employer brands. In essence, it ensures that the best employees stay on
longer, thus allowing the company to carry on its operations smoothly. Eventually, the key to a
successful employer brand is to ensure that expectations are fully aligned with the realities of working
for the organization.

43
 Chapter 7
Bibliography

All the References used during the Project. Includes the following, as the case may be:

• Employer Branding Practices: Case Review on IT Sector Companies in India – Scientific Research
Journal august 2017
• Robertson A., Khatibi A., (2012). By Design or By Default: Creating the Employer Identity,
Journal of Brand Management, Vol. IX, No. 4.
• Ober J. (2016). Employer branding
• Employee value proposition as a tool of employer branding -27th International Scientific
Conference on Economic and Social Development – Rome, 1-2 March 2018
• https://www.talentlyft.com/en/resources/what-is-employee-value-proposition-evp
• https://www.mbaskool.com/business-concepts/human-resources-hr-terms/16152-employer-of-
choice.html
• https://blog.hubspot.com/marketing/employer-branding
• https://www.personalbrandingblog.com/10-employer-branding-strategies-to-become-the-
employer-of-choice/
• https://www.talentlyft.com/en/blog/article/117/employer-branding-strategy-in-5-steps-
infographic
• A conceptual study on employer branding in Indian organizations – International journal of applied
research 2017
• http://www.recruiteze.com/examples-great-employer-branding/
• http://www.thegarnergrp.com/blog/5-great-employer-branding-examples
• https://www.personalbrandingblog.com/10-employer-branding-strategies-to-become-the-
employer-of-choice/

44
45
 PART 3: Social Relevance
(Based on Sun Pharmaceutical Industries Limited)
 EXECUTIVE SUMMARY

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be
socially accountable - to itself, its stakeholders& the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they
are having on all aspects of society, including economic, social, and environmental.

Sun Pharmaceutical Limited follows the global practice of addressing the CSR issue in an integrated
multi-stakeholder approach covering the environment and social aspects.

CSR initiatives are carried out based on the survey requirement of the rural community were in the
major emphasizes are provided on healthcare, sanitization, rural infrastructure development, education,
Drinking water, disaster relief & environment conservation. In 2018-19 the company spended around
3.97 crore through various CSR initiative such as family planning programmes, healthcare services,
malaria elimination project, safety and nutrition campaign, construction of bore well, upgradation of
hospital infrastructure like ECG machines etc. for overall development of the downtrodden and
underprivileged people from the rural areas.

Inspired by this the study tries to find the out the CSR norms as per Company Act, 2013, what are the
benefits of CSR, return on investment, how the company has fulfilled its accountability towards its
respective stakeholder (government & society) & the programs, precise activities, & strategies they
have set, devised and implemented and to understand how CSR activities can help an organization in
improving its brand image. Based on the study since it is an explanatory research which is collected
from secondary data descriptive type of research is used for the rigorous and extensive study.
 Chapter 1
Introduction to Corporate Social Responsibility

This concept is formed on the ideology that not only public policy but companies should also take
responsibility for social issues. In addition, CSR is seen as a concept of management & process that
assimilate social & environmental concerns in its business practices/ operations. An as a socially
responsible company means doing beyond what is comply within the law while trying to invest in
human resources, environment & the society as a whole.

In general, the CSR approach seeks to encourage companies to assume responsibility for
difficulties & challenges that used to be addressed by state regulators or environmental protection
groups.

CSR is stated as “The obligation of business to contribute for the economic development of the
society as whole which include employees, their families, local communities to overall improve the
standard of living which will be beneficial for both the business & development of society at large.
According to The World Business Council for Sustainable Development “Corporate Social
Responsibility is the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their families as well
as of the local community and society at large” hence, CSR has two sides.

On one end, it displays the moral behavior/ practices an organization exhibits towards internal
& external stakeholders. On the other end, it signifies the accountability of the organization towards
the environment & society. CSR is regarded as a wheel through which companies try to give back to
the society. It incorporates providing unique solutions to societal & environmental problems but the
biggest challenge for all companies is to identify areas in which intervention is required in terms of
CSR initiates for developmental purposes

45
For whom it is applicable:
All Company who have there:
• 500 crore of overall net worth
• Or 1000 crore of turnover
• 5 crore of net profit or more during any financial year shall be deemed to establish a CSR
Committee of the Board.

Benefits of CSR:

A way of building better and new relationship

During CSR activities, organizations could offer free services to the communities around them, so
many people get to have a feel of what your company is into without taking the risk of spending money
to find out. If you exceed expectations, a few could talk to people they know who would benefit from
your services to reach out to your organization.

Retain and attract quality employees

Through CSR activities companies empower talented employees who do not just do great work but
also love to help people in communities, they feel you don’t just care about them but also about the
communities they care about and would want to do more to see you succeed and create a brand image
that help in attracting talented employees.

Beneficial impact on community

when companies carry out CSR activities in these communities, they add value to the lives of the people
living there, the company by carrying various CSR initiatives will genuinely changing the life of many
individuals in the society

Return on Investment (ROI) on CSR:

There are proven methodologies that demonstrate ROI benefits to CSR. A partial summary of such
strategies has been outlined below and reflect best practices in the implementation of successful CSR
programs designed to drive improved operational performance and net positive ROI.

46
Business Benefit: Improving Operational Efficiency
Perhaps the strongest and best documented argument for engaging employees in environmental
practices is the connection between CSR involvement and increased operational efficiency. Front-line
employees are often in the best position to identify inefficiencies and propose improvements. Educating
employees on CSR can improve profitability by supporting greater efficiency through less waste, water
and energy usage.

Business Benefit: Innovation

Employee E&S education is also a source of innovation and savings resulting from the development
of new product and service lines as well as new technologies, materials or processes that reduce water,
energy usage or harmful materials.

Business Benefit
Supply Chain Management
Educating employees on sustainability practices throughout the supply chain can lead to greater
efficiencies and help build collaboration to meet sustainability, quality and other goals. It can also
strengthen relationships between a company and its suppliers by aligning values and objectives.

47
 1.1 Objectives

The Objective of study is to comprehend the overall concept of CSR.

The other sub-objectives are as follows: -

• To study CSR norms as per Company Act, 2013

• To understand how the company has fulfilled its accountability towards its respective stakeholder

(government & society) & the programs, precise activities, & strategies they have set, devised and

implemented

• To understand how CSR activities can help an organization in improving its brand image

48
 Chapter 2
Literature Review

Dr. Ashok Gupta (2017) examined- CSR practices in India:

The study talks about recognition, adaptation & implementation of CSR practices in Indian
organizations and its impact on their overall success in the market as well as society.

Dr. Sanjeeb Kumar (May 2018) |examined- CSR Practices by Indian Companies:

The study talks about how and why companies invest in certain CSR practices, or how such choices
are influenced by the cultural, socioeconomic, and competitive contexts in which companies operate.

Shubhashis Gangopadhyay (2014) examined - Theoretical literature and empirical studies on

CSR:

The study talks about how CSR plays an important role in companies’ competitive strategy. How firms
make use of their social activities as a sign to attract consumers and employees.

Sumona Ghosh (2015) examined – A study on how investments are made in private & public
sector companies:
The study shows the pattern in which CSR initiatives were carried out in different companies and it
shows the most favoured CSR activities which included education, health and environment.

49
 Chapter 3
Methodology

Nature of Study

It is an explanatory research which is based on secondary data collected from International journals,
newspapers, articles and magazines. Considering the objectives of the study descriptive type of
research is used for more precision and rigorous analysis of research study. The accessible secondary
date is intensively used for the research study.

Study Area

The study is limited sun pharmaceutical private limited

Collection of Data

Secondary source of data is use for research such as International journals, newspapers, articles,
magazines, International business magazine & 5 years of financial reports of CSR

50
 Chapter 4
Results

Sun pharma has been actively working towards empowering communities through various CSR
initiatives. They strive and foster for the upliftment of the downtrodden and deprived sections of the
diversified rural community. With a focus toward sustainable development, including economic, social
and environmental, they reach out to thousands of beneficiaries through their work in areas such as
health, education, drinking water & sanitization, rural development (social Infrastructure), disaster
relief & environmental conversation.

CSR Vision
“Endeavor to bring about the holistic development of underserved communities in a sustainable and
impactful manner.”

CSR Mission

“To leverage our people, proficiency & networks to address the needs of the communities that we serve
and thereby catalyze overall development.”

CSR Objectives

• Serve the Community: To accentuate on the needs of the society and serving them
• Quality: To deliver high quality products & services to meet the need of our society.
• Sustainability: To bring in interventions that address a serious need of the society which will help in
instilling sustainability for a longer period of time.
• Leverage Resources: we utilize resources within the organization for example human resource, operations,
financial, marketing & products to maximize impact in social initiatives.

51
Some of their CSR initiates includes the following:

• Health Services

• Education

• Drinking water

• Rural Development

• Disaster Relief

• Rural Conservation

CSR Financial Details

*All figures in Cr

Years 2014 - 15 2015-16 2016- 17 2017-18 2018-19

Actual CSR 4.60 Cr 11.65 Cr 2.41 Cr 2.70 Cr 3.94 Cr

Prescribed 0.00 0.00 0.00 0.00 0.00

CSR

52
 Chapter 5
Discussion

Description of the detailed initiative taken up by sunpharma includes the following:

Health Services

In order to reduce the disease burden on a rural area the company has structured its healthcare services
in such a way that it focuses on 3 core approaches such as affordability, accessibility & equability
ensuring that the healthcare facility reaches the remotest mile of the rural area.

CSR initiate under health care includes:

i) Mobile healthcare units – They operate 12 Mobile Healthcare Unit which provides primary
healthcare and reproductive child health services to the host communities at its plant locations. The
project is implemented through Sun Pharma Community Healthcare Society (SPCHS). 2.39 lakh
people benefited from it as they reach out to185 villages, 10 districts & 7 states. Services include:

• Diagnosis and treatment of common ailments (acute & chronic)

• Lab tests for antenatal (Hb, Urine for Alb/ Sugar, Blood Grouping Rh, VDRL, blood sugar, HIV
test, pregnancy test)
• Guidance on family planning
• Healthcare of teenagers – On nutrition, menstrual hygiene, safe sexual behavior & legal age of
marriage
• Prevention/control of Malaria, Tuberculosis, NCDs & HIV AIDS
• Imparting knowledge on social issues (female foeticide and women empowerment)

ii) Malaria Elimination Demonstration Project (MEDP) - The aim was to work with the district
malaria staff to demonstrate elimination of malaria from 1233 villages of Mandla district, Madhya
Pradesh. They covered around 2,85,192 population with a total cost of 48.80 million.

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iii) Health camps - 31 health awareness camps were organized in six Panchayat Union schools,
orphanages and community on menstrual hygiene, diarrhea & ORS, anemia, dietary advice, personal
hygiene, dengue fever and its prevention, precaution against water borne diseases and first aid practices
on insect bites & eye checkup program me in different states across India.

iv) Upgrading Infrastructure - They have provided critical instruments to the Geyzing district
hospital This includes ophthalmic instruments for operation theatre, ECG machine etc. for the
development of various hospitals in a rural area.

v) Safety and nutritious campaign - ‘Safe & Nutritious Food at School’ is a nation-wide campaign
which is initiated to inculcate safe and right eating habits among children. Sun Pharma supports this
initiative by creating awareness amongst school students on the concept of nutrition, food safety &food
quality standards. They conduct these through skits, interactive sessions and distribution of awareness
material. During the FY 18-19 investment of INR 2.35 million was made towards this initiative
benefiting 37,410 students.

vi) Community health & welfare programme - With the support of Sun Pharma, Arham Yuva Seva
Group has actively contributed for the welfare of the society through its various initiatives such as
Distribution of blankets, Provision of Food, Provision of water, Medical Support and distribution of
food Packets. 22,980 beneficiaries were benefitted under these activities with the support of INR 10.00
Million.

Education

• The company has supported the University of Madras for the relocation and modernization of its
research lab & Vocational training provided to 40 boys in computer operations & 115 girls in
stitching, tailoring and embroidery.

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• They constructed water hut with RO facility at the school and safety grill, gates and sheds for water
hut were in total no of beneficiaries were 314 & upgraded the library in 5 government schools at
Ankleshwar.

• A Campaign based on “gift a book” was organized in Halol Plant and SPARC, Vadodara, wherein
more than 1000 books were gifted by employees to the students.

• Science exhibition, Annual day celebration, learning aid, were some of the initiatives taken by the
company.

Drinking water & sanitization

They have named it as WATSAN initiative were in the company CSR programme aligned with the
national goals on water & sanitation and unfolds through the following

• Creating infrastructure for augmenting rural water supply & to provide access to potable water in
the rural school.

• Construction of good quality individual toilets in the villages & behavior change towards its usage
through IEC activities.

• Across plant sites, the company observed the Swachhta Pakhwada (2-week initiative by GoI) along
with the host community, neighboring schools, government institutions & gram panchayat to focus
on issues and practices pertaining to hygiene.

• Construction, operation and maintenance of a deep bore well at Toansa village benefiting 125
families & Provided two Garbage Tricycles for collection and transport of garbage & subsidy for
constructing individual toilets to 65 households in 5 villages of Pudhupattu Panchayat.

• And provided individual toilets for 75 households in the rural area.

Rural Development

• The company lays emphasis on participatory planning & convergence of various development
programmes to bring about overall development of villages. The company emphasizes on bridging
gaps in the social infrastructure of the villages through its CSR initiatives.

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• This includes - Upgradation of playgrounds, installing street lights, refurbishing community halls,
planting trees, creating rainwater harvesting structures, constructing bus shelters, improving ICDS
infrastructure, providing opportunities for skill development. The company also supports setting up of
community infrastructure on request of the government including installations of traffic lights, laying
out children’s park, support to old age home etc.

Disaster Relief

• Sun Pharma and its employees have responded through essential, appropriate and timely
humanitarian assistance to those affected by a disaster in gaja village & the employees have
contributed relief materials like unused clothes, towels, blankets, torches, soap, shampoo, candles,
biscuits, glucose packets.

• And contributed Rs. 10 Lakhs for relief of victims affected by 2018 floods in Himachal Pradesh.

Environmental Conservation

• The company gives priority for the development of green public spaces which not only help to
conserve the environment but also provides places for social interaction areas for the community.
• In 2018-2019 the Green Belt Development Project commenced at GIDC Panoli & more than 2600
forest plants were planted and a garden was developed on 600 square meters of areas.
• In Silvassa, they developed a children’s park.
• A project based on green belt development was formed at GIDC Panoli in 6600 square meter of
area which includes more than 2600 forest plants & garden development in 600 square meters of
area.

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CSR Financial Details

*All figures in Cr

Years 2014 - 15 2015-16 2016- 17 2017-18 2018-19

Actual CSR 4.60 Cr 11.65 Cr 2.41 Cr 2.70 Cr 3.94 Cr

Prescribed 0.00 0.00 0.00 0.00 0.00

CSR

CSR FINANCIAL DETAILS

14
12 11.65
10
Actual CSR
8
Prescribed CSR
6
4.6
4 3.94
2.41 2.7
2
0
2014 - 15 2015-16 2016- 17 2017-18 2018-19

Though the company suffered loss in the last five financial years, they were not prescribed with any
specific CSR targets although the company have spent for CSR activities in that year in terms of health,
education, rural development, drinking & sanitization, disaster & environment conservation. This
indicate that the company is always dedicated towards CSR activities.

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 Chapter 6
Conclusion

As per Companies Act section 135, All Company who have 500 crore of overall net worth or
1000 crore of turnover or 5 crore of net profit or more during any financial year shall be deemed to
establish a CSR Committee of the Board.

In respect with the present study I examined the CSR report of sunpharma wherein I found out that
the Company has always taken active initiate in CSR activities and have set exemplary example for
many other organizations.

By observing the various initiatives taken by the company, it is very much visible that they
have done a lot for the development of underprivileged and downtrodden people of rural India. The
company have not restrained themselves with one specific cause, but with each and every problem,
Sunpharma has offer its helping had in various spheres of the problems in the society with a focus
towards sustainable development including economic, social & environment. Sunpharma has helped
more than million people through their initiatives.

At present because of the recent coronavirus pandemic sun pharmaceutical Industries ltd
donated 25 crore worth of hydroxychloroquine (HCQS), other related drugs & hand sanitizer to support
India fight against covid-19.

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 Chapter 7
Bibliography

All the References used during the Project. Includes the following, as the case may be:

• International Research Journal of Management Sociology & Humanity (IRJMSH)- 2017

• https://www.ibef.org/industry/indian-pharmaceuticals-industry-analysis-

• https://www.sunpharma.com/

• https://en.wikipedia.org/wiki/Corporate_social_responsibility

• https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-
capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-
csr.

• https://indiacsr.in/sun-pharma

• https://csrbox.org/India_Company_Sun-Pharmaceutical-Industries-Ltd-Maharashtra_42

• https://www.financialexpress.com/lifestyle/health/sun-pharma-to-donate-rs-25-cr-worth-drugs-
sanitisers-to-fight-coronavirus/1911994/

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