A

PROJECT REPORT

ONAPPLICATION OF INVENTORY MANAGEMENT PRACTICES OF DR REDDY

LABORATORIES IN HYDERABAD

Project Report submitted in partial fulfillment of requirement

For the

Award of the Degree of

Master of Business Administration

By

NAME OF THE STUDENT

ROLL NO:

DEPARTMENT OF BUSINESS MANAGEMENT

SYMBIOSIS CENTRE FOR DISTANCE LEARNING,PUNE

2012-2014

A

PROJECT REPORT

ON

APPLICATION OF INVENTORY MANAGEMENT PRACTICES OF DR REDDY

LABORATORIES IN HYDERABAD

Project Report submitted in partial fulfillment of requirement

For the

Award of the Degree of

Master of Business Administration

By

NAME OF THE STUDENT

ROLL NO:

DEPARTMENT OF BUSINESS MANAGEMENT

DEPARTMENT OF BUSINESS MANAGEMENT

SYMBIOSIS CENTRE FOR DISTANCE LEARNING,PUNE

2012-2014

DECLARATION

I hereby declare that this Project Report titled “A Study on

application of Inventory Management Practices of Dr Reddy Laboratories

in Hyderabad ”Submitted by me to the School of Management Studies

symbiosis centre for distance learning, is a bonafide work

undertaken by me and it is not submitted to any other University or

Institution for the award of any degree diploma/certificate or

published any time before.

Name of the Student Signature of the Student

ACKNOWLEDGEMENT

I avail the opportunity to thank the people with whom I have been

associated in successful completion of the Project. I had a great experience,

pleasure and immense satisfaction while performing this Project.

I would also like to extend my note of thanks to my project Supervisor

Mr. (Associate Professor) from TKR Institute of Management & Science,

Meerpet, Hyderabad. He provided the necessary guidance, facilities and

helpful suggestions in completing my project in all aspects.

Name of the Student

Table of contents PAGE NUMBERS

Chapter 1INTRODUCTION 1-3Chapter 2INDUSTRY AND ORGANISATIONAL PROFILEChapter 3OBJECTIVE OF THE STUDYChapter 4HYPOTHESISChapter 5THEORITICAL FRAMEWORKChapter 6DATA ANALYSIS AND INTERPRETATIONChapter 7FINDINGS AND RECCOMMENDATIONSChapter 8CONCLUSIONAPPENDICESBIBLIOGRAPHYQUESTIONNAIREList of Tables iList of Figures ii

ABSTRACT

The study is done on inventories at Dr Reddy’s Lab .The scope of the study includes the ABC

Analysis of Raw Materials, WIP and Finished Goods for four financial years. This study

provides insight to the management of High Value items and also brings attention of

management towards movement of ‘A’ class items.

The study is done using the inventory reports and other financial information of Dr Reddy’s

Lab. The entire study is based on the secondary data only. The analytical tools used for the

study are Ratio analysis. The study is done at Hyderabad for a period of 50 days. The study

had few limitations which were taken care of.

The inventory data obtained was analyzed using the appropriate techniques and it was found

that the working capital turnover ratio is negative for the past five years. This shows a very

poor use of the current assets and the working capital by the organization and also finds there

are fluctuations in the work-in-progress to inventory ratio from the past 5 years and finally is

56.73 in the current year.

It is suggested to the company maintain its inventory ratios normally. Also, the company

should improve the minimum level of products by increasing the market value of these

products. It helps to get minimum return on investment in theses products as soon as possible.

The firm also needs to improve its efficiency in terms of inventory management.

This study provides to understand relative advantages and disadvantages of various

techniques and understand the impact of business dynamics on inventory. This study helps to

know relationship between raw materials and sales