Babar Medicine Company

The Islamia University of
Bahawalpur
SUBJECT: Seminar in Marketing
TOPIC: Case Srudy

SUBMITTED TO: Dr. Imran Khan
SUBMITTED BY: Hamza Raza
ROLL NO: 01
DEPARTMENT: Management Sciences
BahawalNagarCampus,BahawalNagar
Babar Medicine Company, Bahawalnagar
Abstract
Pakistan Pharmaceutical industry is developing at a quick rate and adding a huge

amount to the national economy of Pakistan. The purpose of this case is to examine
the previous performance and the growth of Babar Medicine Company over years.
The examination presumes that the pharmaceutical business isn't like a story and
the craving to transform it into a significant economic player isn't being
accomplished. It also indentifies problems and hurdles that BMC faced during their
journey to success.
Introduction
Last few years of the Pakistan economy; have endured a great deal because of bad
economic conditions and furthermore because of the war against terrorism. And the
economy likewise observed the residential expansion, slow financial development
and significant downgrading of the rupee against the major currencies. Many
developing countries are placing emphasis on building up their pharmaceutical
industry and think of it as a vital aspect for settling issues of access to medicines, self
sufficiency and the generation of revenue through exports.
Before the overview of the BMC, let us see the situation on the global basis. The
global market for pharmaceuticals reached $1.2 trillion in 2018, up $100 billion
from 2017, according to the Global Use of Medicines report from the IQVIA
Institute for Human Data Science. The United States was the largest
pharmaceutical market in 2018, generating a 40.4 percent share of total revenues
worldwide. China established itself as the second-largest market with a sales share
of 11.1 percent and the rest of the world has 48.5% of the total world
Pharmaceutical market.
Looking at the Pakistan Pharmaceutical market, it is very competitive and

challenging. Around 600 Pharmaceutical organizations are working in Pakistan.
Out of these organizations 386 are working units. As looked into before swelling
and debasement have an intense effect on the working edges. This may likewise
be a significant explanation that Pharmaceutical industry is confronting intense
difficulties in present time.
Babar Medicine Company
Babar Medicine Company is a Pharmaceutical Distributions business. Company

has its office in Lahore.BMC have their 4 distribution centers and one more is
promised by company to open. BMC is working in Pakistan over 40 years. BMC
has nationwide supply chain structure and completely prepared zonal workplaces
in across Pakistan so as to satisfy the market needs productively and successfully.
The country wide sales and distributions network is working as per the standard
operating procedures so as to keep up the quality and viability of the items and
furthermore guarantees the opportune conveyance. BMC contributes to the social
responsibilities in many ways like by supporting and cooperating with patients,
Hospitals, NGOs, individuals, Groups, universities and authorities. In BMC
directors select and evaluate the performance of the senior management team,
which is responsible for the day-to-day operation of the company. Directors also
act as advisors and counselors to our senior management. BMC have many
multinational and national medicine companies distribution and those companies
have top ranking in Pharmaceutical industry as under with their revenue.
Multinational Companies:
Merck — $46.84 billion
GSK — $33.75 billion
Pfizer — $51.75 billion

Roche — $50 billion
Sanofi — $27.77 billion
National Companies:
BARRETT HODGSON PAKISTAN
WERRICK PHARMASOTICS
MOCTER
BOSCH
Mission
We aim to be more than just another Distributer. We are a resource for citizens to
use in improving their health outcomes and we offer a complete continuum of
care not limited to the fulfillment of medicine supplies.
History
BMC was founded on 19th Oct, 1973. It was established in Bahawalpur by three
member team. Later on company opened more branches of BMC at different
cities of Pakistan.
Babar Medicine pharmaceutical Distribution businesses provide high core service

levels to pharmacists in terms of frequency of delivery, product availability,
delivery accuracy, timeliness and reliability at competitive prices. As BMC is a
distribution company that’s companies does not provide medicines or products to
the end users. BMC provide products to medical store that order them on the daily
basis. Babar Medicine pharmaceutical Distribution businesses, together with its
associates, supply medicines, other health-care products and related services to
more than 10,000 pharmacies, doctors, health centers and hospitals from four
distribution centers in Pakistan. Lahore branch, Bahawalpur branch,
Bahawalnagar branch and Rahim Yar Khan branch.
These four branches have 69.1%, 17.9%, 4.44% and 8.56% number of customers
respectively. Company establish franchises on district level that’s why there is
only one distribution center of BMC that work in whole district.
Bahawalnagar branch was opened in July 1998. Kashif Sajjad Sheikh is the owner
of the Bahawalnagar branch. They started working as a manager in the
branch.Later on they hired a team of management persons. Firstly they started in a
small house in Bahawalnagar with storeroom and managements area under a
single roof.
Mr. Muhammad Aslam khan (director and managing partner at

BMC Bahawalnagar) said
“As the population of Pakistan is growing time by time and the usage of
different medicines is increasing because of many dieses, the sales of medicines
is increasing time by time.”
MBC provide services under major companies with a specific margin from the
company. The major purpose of the success of a distribution company is their
better services. Distribution Companies performance majorly depends on their
staff, warehouse, logistics and managements. Revenue of BMC bahawalnagar
depends on their sales as company provide about 3 to 4 percent to their
branches. BMC provide their supplies only to those medical stores which have
medical licenses.
The Growth of BMC
Initially company started its work in Bahawalpur as a distribution company for

medical products. At that time BMC were have few of multinational companies.
With the passage of time BMC got leading pharmaceutical companies those have
major brands. By the increase in usage of medicines, company opened its two
branches in Bahawalnagar and Rhim Yar Khan. Since 1973, BMC worked hard
to better understand the needs of patients and the health care system so that our
patient assistance programs can make a difference. The major purpose of the
success of the BMC is that company has big provider companies those have
already established brands.
In Millions
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2005 2009 2010 2015 2018
Discussion Questions
End user can buy products from BMC?
Should BMC open another branch in bahawalnagar?
Does MBC have a good location in Bahawalnagar?
What were the big challenges faced by the company?
Challenges
There are also some challenges for MBC to overcome for the success of
the company
Inventory Management:
Inventory management issues are nothing new in the distribution industry, managing
inventory time by time is very necessary to overcome the issues and timely solutions
to the problem. By managing inventory companies can know how much stock is left
in its warehouses and how much sold out. If company doesn’t
know how much stock have left, it can’t restock its inventory which will
cause delays and frustrate your customers.
Product Quality Assurance:
Pharmaceutical investors must also keep a finger on the pulse of product quality
assurance, because of the importance of steps like keeping vaccines cold over
long distances, particularly to developing regions. The most successful mergers
and acquisitions will be those where all players have a handle on quality
assurance at every step of supply and distribution.
Vulnerability to Changing Prices:
Rapid changes in costs leave distributors vulnerable to changes in inventory

values. Although distributors try to limit their cost exposure by pricing products
according to a percentage markup on costs, competition may make it impossible to
mark up expensive inventory when prices are falling.
The Organization of BMC
BMC have six major departments:
• IT Department
• Finance Department
• Accounts Department
• HR Department
• Claim Department
• Operations Department
The management and Directors of BMC believe that operating the company in a
reliable, efficient, transparent and ethical manner enhances our ability to foster
sustainable growth and create value for our stockholders. Core Structure of
companies Good Governance is: Awareness, Decision ,Determination,
Consistency and Teamwork.
Activity Framework of BMC

Babar Medicine Company

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The Islamia University of

SUBJECT: Seminar in Marketing

TOPIC: Case Srudy

SUBMITTED BY: Hamza Raza

DEPARTMENT: Management Sciences

Pakistan Pharmaceutical industry is developing at a quick rate and adding a huge

Looking at the Pakistan Pharmaceutical market, it is very competitive and

Babar Medicine Company

Babar Medicine Company is a Pharmaceutical Distributions business. Company

Merck — $46.84 billion

GSK — $33.75 billion

Pfizer — $51.75 billion

Sanofi — $27.77 billion

BARRETT HODGSON PAKISTAN

Babar Medicine pharmaceutical Distribution businesses provide high core service

Mr. Muhammad Aslam khan (director and managing partner at

The Growth of BMC

Initially company started its work in Bahawalpur as a distribution company for

End user can buy products from BMC?

Should BMC open another branch in bahawalnagar?

Does MBC have a good location in Bahawalnagar?

What were the big challenges faced by the company?

Product Quality Assurance:

Vulnerability to Changing Prices:

Rapid changes in costs leave distributors vulnerable to changes in inventory

The Organization of BMC

BMC have six major departments:

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