Introduction
History:
With an enviable image and reputation for the past 6 decades
GlaxoSmithKline (GSK) Bangladesh Limited running its operation as a
subsidiary of GlaxoSmithKline plc- one of the worlds leads research-based
pharmaceutical and healthcare companies. In 1949 the Company
commenced its journey in Bangladesh with its corporate
identity as Glaxo in Chittagong as an importer. In 1967,
the company established its own manufacturing
unit at Chittagong. The facility till date is
considered as one of the Centre of Excellence in Global
Manufacturing & Supply Network of the Group. It was incorporated on 25
February 1974 as a public limited company and is listed with Dhaka Stock
Exchange Limited. The global corporate mergers and acquisitions have seen
the evolution of the Companys identity in the past 6 decades. In line with
mergers and acquisitions the identity changed from Glaxo to Glaxo Wellcome
Bangladesh Limited following the Burroughs Wellcome acquisition in 1995
and finally to GlaxoSmithKline Bangladesh Limited during 2002 after merger
with SmithKline Beecham in December 2000. The mega merger of the
Company enables it to deliver cuffing edge advancements in health care
solutions. The relentless commitment, setting of standards of ethical
standards and quality backed leading edge technology of the Company has
built a strong relationship between the stakeholders and GSK Bangladesh.
With the ever committed 822 numbers of personnel all over the country GSK
Bangladesh, which now comprises of both Pharma and Consumer, continually
strive to meet the GlaxoSmithKline mission to improve the quality of human
life by ensuring healthcare products, health drinks and different corporate
social responsibility programs.
GSK is committed to developing new and effective healthcare solutions. The
values on which the group was founded have always inspired growth and will
continue to do so in times to come.
Now GSK Bangladesh has Its Corporate Head Office in Gulshan, Dhaka and
manufacturing Unit In Fouzdarhat, Chittagong. GSK Bangladesh Serve across
Whole Bangladesh Equally with its Strong Selling and Administrative
hierarchy.
CSR Activities:
Along With Save the Children: To combat diarrhoea and improve
the general hygiene and sanitation in the
communities, GlaxoSmithKline initiated the
Personal Hygiene and Sanitation Education
(PHASE) Program in different countries of the
world. PHASE was initiated in Bangladesh with
Save the Children (USA) in 2005 with a three
year long (2005-2008) program.
During Natural Calamities and Extreme Condition GSK Donate
medicines to support humanitarian relief efforts across 100+ Countries
Including Bangladesh. Notably it Donate 3.6 million doses of antibiotics
during Asian Tsunami. In Bangladesh, During Sidr in 2007 it Donate
Reliefs and also Helps the affected people with Re-built their houses.
Products:
Now Glaxo Has 3 Types Of Products Run In Bangladesh:
N Name Types
o
01 Consumer Healthcare Horlicks [They Introduce 6 Types Of
Products Horlicks]
Boost
Maltova
Viva
Glaxose [Health Drinks]
Sensodyne [Oral Health]
02 Medicines Respiratory Portfolio
Antibiotics
Dermatologicals
Oncology
03 Vaccines [Hepatitis A & B, Typhoid, Chicken Pox,
Measles, Mumps, Rubella,Meningitis,
Pneumonia, Rota Virus, pre-cancer
vaccines]
Credit Policy For Customer
Being an enlarged multinational company, GSK follows different strategies to
sell their pharmaceutical and health care products in the home market and
also in the overseas market. They are prone to customer satisfaction so as a
result they look for innovative ways to increase their product recognition
through different means of credit and cash delivery systems. GSK Doesnt
offer credit sells option for the final consumer. Because it distribute goods
categorized as inferior, normal goods. But it offer credit option for its
Distributor channels including [Dealers, wholesaler and Retailer] respectively.
In 2014 its Days Sales Outstanding which represents the average number of days it
takes for a supplier to collect on credit sales are 53.07 Days. But in 2013 its DSO Was
27.26 which is almost doubled in 2014.
Days Sales Outstanding[DSO]
60
50
40
30
20
10
0
2009.5 2010 2010.5 2011 2011.5 2012 2012.5 2013 2013.5 2014 2014.5
Sources of Short-Term Financing Tools
GSK Bangladesh Use
No Name
two types of short-term
.
Financing Tools:
01 Finance Lease
02 Trade and Other Payables
Finance Lease:
Capital lease is a lease agreement in which the lessor agrees to transfer the
ownership rights to the lessee after the completion of the lease period.
Capital or finance leases are long term and non cancellable in nature.
GSK Bangladesh Use Capital Lease as short term working capital financing
tools. In 2014 GSK has Financial Lease liability of 9,910,000 and totally it
carries 24,775,000 Taka.
Trade And Other Payable:
Trade and other payable is an amount billed to a company by its suppliers for goods delivered to
or services consumed by the company in the ordinary course of business.
In 2014 GSK Bangladesh Have an amount of 2,337,516,000 Trade and other
payables and in 2013 this amount was 1,949,378,000 Taka respectively.
GSK Bangladesh in 2014 on an average took 92.7 Days to pay its
suppliers. In 2013 DSO was 74.45 and in 2012 DSO was 112.43 day
respectively.
120
100
80
60
40
20
0
2009.5 2010 2010.5 2011 2011.5 2012 2012.5 2013 2013.5 2014 2014.5
Investment In Marketable Securities
Marketable securities are highly liquid, short-term securities that tend to
have maturity dates of less than one year. There are Different Types of
marketable securities are introduced in bangladesh.
Debt Securities
Equity Securities
Mutual Funds
Bonds
Glaxo Smithkline Bangladesh Has no Marketable Securities
Investment In Bangladesh. Rather They have all their investment in
the Fixed Assets, Equipment etc.
But Important Thing is GSK Bangladeshs Main Competitors like Square
Pharmaceuticals and Beximco Pharmaceuticals Has a high investment in
Marketable securities and there gain from there is also high respectively.
Square Pharmaceuticalls has Marketable Securities in a fair value of Tk.
844,360,472. They have invested their money in 23 sectors as like- Bonds,
Equity shares -in [Financial Institution like-Banks,Insurance, leasing
Company], Petroleum Company and even in the same industry like ACI
Limited and Some companies from other industry. And Square
Pharmaceuticals gain from marketable securities are also high which is Tk.
135,723,333 relatively in 2014.
