Lupin Case Study

Chapter: 1
General Information

Introduction
L: Learning organization
U: Unity
P: Performance to achieve the best
I: Involvement
N: Nature the culture
Lupin was founded in 1968 by Dr. Desh Bandhu Gupta then an Associate Professor at BITS-Pilani, Rajasthan. The company was created with a vision to fight life-threatening infectious diseases and to manufacture drugs of the highest social priority.
The company was named after the Lupin flower because of the inherent qualities of the flower and what it personifies and stands for. The Lupin flower is known to nourish the land, the very soil it grows in. The Lupin flower is also known to be tolerant of infertile soils and capable of pioneering change in barren and poor climes. The

But the year 2015 is to decrease of 1.57%. so it’s a under stocking year.

3.Turnover ratio:
Turn over ratios show how well the assets are used and the extent of excess inventory, if any these ratios are also known as activity ratios or asset management ratios.
Inventory turnover ratio:

Inventory turnover ratio=(Net sales)/(Inventory )
2015 2014 2013 2012 2011
=125997.1/25035.6

= 5.03 times =11086.4/21294.5

= 5.20times =94616.3/19489.3

= 4.85 times =69597/17326.7

= 4.02 times =57068.2/1999.6

= 4.75 times

Working capital turnover ratio:
This ratio show a how many times the working capital has been employed in the process of carrying on the business. Higher the ratio, better the efficiency in the utilization of working capital. workingcapital turnover ratio=(sales )/(current assets-current liability)

2015 2014 2013 2012 2011

=125997.1/45082.60

= 2.80 times

=110866.4/40614.20

= 2.73 times

=94616/31982.30

= 2.95 times

=69597/26186.8

= 2.65 times

=57068.2/20442

= 2.80 times

Interpretation :
Higher the ratio of 2013 is effective utilization of working capital, but the 2014 decrease of 0.22 times but in year 2015 to increase of o.o7 times to be