Rupcco Limited is a company registered in Kenya to carry on the business of Pharmaceutical distribution/wholesale and manufacturing among other functions. The pharmaceutical sector remains one of the most profitable areas of doing businesses in the East African region and beyond. In Kenya, the business has been boosted further by the provisions of the new constitution where the health functions have been devolved to the county government. Rupcco Ltd has a rare opportunity to trade with the forty seven (47) devolved government units. Kenya being the economic power house in East Africa region, coupled with its strategic location in the African continent makes it the destination of choice for pharmaceutical investors and Multinational Corporation eying Africa especially in the field of manufacturing and distribution. Rupcco will need to raise a substantial startup capital to a tune of 100million to be able venture in this lucrative sector. Rupcco intends to invite strategic partners to invest in this business venture. The business idea presents a noble business opportunity to savvy investors, both local and foreign, who wish to invest in the Kenya’s pharmaceutical industry and Africa at large. Rupcco Ltd confidently promises its potential investors an annual return on investment ranging between 25 to 35 percent. The annual sales turnover for the years 2014, 2015 and 2016 are pegged at 216million, 540million and 720million respectively. The ongoing integration of East Africa States allowing for free movement labor, goods and other factors of production will generate new and unexploited market opportunities which the early adopters will benefit immensely. Countries like Tanzania, Uganda and Rwanda rely heavily on Kenya for supplies of pharmaceutical products. The three East African Countries import from Kenyan market an average of over 70% of pharmaceutical products consumed in those countries. However, Kenya on the other hand relies heavily on Indian Market for its pharmaceutical needs importing over 85% of pharmaceutical products in finished form. Most of the people residing in East Africa are low income earners and may not afford branded medicines. Consequently, Rupcco intends to have its low cost generic products registered in all the East African countries to benefit from this expanded market. Rupcco understands the challenges posed by social and political differences within the entire East African region. In Kenya, for example, there is widespread tribalism and regionalism while in south Sudan political instability is the order of the day. Rupcco will encourage partnerships with people in areas classified as hostile to break social cultural and political barriers. Rupcco will endeavor to fully comply with government’s regulatory agencies in an effort to deter corruption which is endemic in government offices and foster acceptability across board. However to win government tenders, Rupcco will have to utilize its ever expanding networks to lobby and influence tender decisions. In this case the regional distribution points will enjoy some levels of autonomy and territorial integrity. Rupcco will establish an effective compliance departments consisting of accountants, IT experts and legal advisers to mitigate on regulatory affairs. Rupcco is intending to employ effective and advanced technology in its operations, communication and research for efficiency and consequently to have competitive advantage over its close competitors. Rupcco will target Government institutions and Hospitals, Private Hospitals, Health related NGOs, Retail chemists, Health centers, Clinics and other local distributors of pharmaceutical products. To achieve this, Rupcco will rely heavily on the Franchise network established by its sister company Ruai Pharmaceuticals and the medical practitioners with shares in Rupcco. The two segments above will have their stores function as the designated distribution points for Rupcco products. This distribution strategy adopted by Rupcco, coupled with targeted large capital base, advanced technology, and overall involvement of locals in ownership and investment opportunities will certainly give Rupcco competitive advantage over their closest competitors. Rupcco has partnered with foreign manufacturers enabling it to become the sole agent and distributors for these companies. The agreement ensures that the supplies will always meet the customer demands. This partnership is for the first five years of operation before Rupcco constructs its own manufacturing plant in Kenya. To benefit from the above business opportunities, Rupcco will require huge capital, high level of expertise/professionalism, an unmatched level of connectivity/involvement with the manufacturing industries and relevant experience in the pharmaceutical industry/ market. This definitely cannot be achieved by an average individual investor. As such Rupcco has assembled a team of experts at strategy level to continuously map out logistical and operational strategies aimed at attainment of the vision in real time. DAVID NAMU He is the Chairman to the board. He Head’s Business Development & strategy, governance and liaison He is a Trained Pharmaceutical Technologist from Kenya Medical Training College and Fully Registered with Pharmacy and Poisons Board. He holds a degree in Strategic Management from school of business and public management at Mount Kenya University. He is a founder member of Kenya Pharmaceutical Association and a competent entrepreneur with a wide range of business experience spanning a period of over 15yrs. He worked at ET Monks pharmaceutical company, Kenyatta National Hospital and briefly at Gertrude’s children hospital before venturing in to pharmacy practice business as a private practitioner in the year 1998 Emai: david@ruaipharmaceuticals +254703769690 TIMOTHY NGESA He is the chief executive officer (CEO) and head of operations, Human Resource & IT Department Strathmore Graduate- - Timothy holds a Bachelor of Commerce degree- Double major commerce and Strategy- from Strathmore University and IMIS certification. He brings in a wealth of experience in business administration and operations having previously worked at Safaricom and NIC bank. He also has Micro Finance and entrepreneurial skills important for strategy formulation. Timothy also has certification in Anti Money Laundering Email tngesa@ruaipharmaceuticals +254728005596 DR RAPHAEL KABERIA KAUMBUTHU He is the Company Pharmacist. He heads Regulatory Affairs Department & Foreign contacts. He holds a bachelor of Pharmacy from the University of Nairobi. He is well acquainted with drug registration procedures having been a local agent for an Indian Manufacturing company. He has worked as a manager with Robins Healthcare Ltd , Hospital Pharmacist in both Chukka and Meru Hospitals, as well as a company pharmacist with Medivet products manufacturing company . Email rkaumbuthu@ruaipharmaceuticals +254722227774 DR FELIX SIKUTA He is the Chief Pharmacist in charge of Distribution, processes & documentation, Franchising, practicing partners and procurement He is a former Kenya pharmaceutical Association Nairobi Branch secretary general. He holds a degree in pharmacy from Mount Kenya University and a Diploma in Pharmacy from Kenya Medical Training College. He brings a wealth of experience having worked in Kenyatta National Hospital, University of Nairobi medical center, Kenya Medical Research Institute (KEMRI) and various pharmacy retail outlets in Kenya Email felix@ruaipharmaceuticals +254722312740 KENNDY MINAI He is the Finance and marketing Director. He is in charge of marketing policies implementation and controlling functions He holds bachelor’s degree in commerce from Mount Kenya University. He is also a certified Public Accountant of Kenya (CPAK) finalist and a diploma in co-operative management from Nyeri Technical Training Institute. He has worked with Equity bank of Kenya as a branch marketing manager, Mentor Sacco and Kenya women microfinance. He has proved to be very resourceful in marketing logistics and prudence in finance management ken@ruaipharmaceuticals +254729692995 STRENGTHS i. Highly skilled and experienced management team. The management team has developed a very detailed and progressive strategic business plan. ii. Regional presence emanating from the ever expanding distribution points and franchise networks. iii. Reliable stocks management software. iv. Decent and spacious office measuring 1000sq feet. v. Economies of scale. The company is able to buy goods in large quantities leading to higher profit margin. Practicing shareholders and Franchises buy from one central store as per the agreement. Hence reduced prices which are extended to all customers. vi. Export and import license, Distributorship license and wholesale license. The license enables the company to source for its products from international suppliers other than buying from local suppliers, cross register in the regional countries and also to carry the function of distribution and wholesale of pharmaceutical products vii. A unique business model that brings pharmacy practice closer to the community by way of partnerships and franchises. viii. Loyal partners and Loyal franchise customers base ix. The company is well thought of by stakeholders x. Highly reduced enterprise risk. Risks are shared across the entire network. xi. Cost advantage because the practicing shareholders and franchise owners are the contributors of establishment costs. xii. Proven members of the board and management OBJECTIVES Our strategy includes: 1. Growth optimization through increased revenues. This is achieved by achieving sales quota, increasing customer base, launching new products and signing new channel partners. 2. To increase profits through improved utilization of rates, reduced delivery days, and reduced product cost. 3. Unmatched customer satisfaction through close customer monitoring, quick response to customers complains and enhanced customer royalty through relationship based marketing. 4. Impact professionalism in the pharmaceutical sector by ensuring that every pharmacy outlets are manned by qualified technical staffs and who meets the minimum requirements set by pharmacy and poisons board. 5. Take the pharmacy business closer to every potential and aspiring business person, without compromising professionalism , and use the capital injection to take pharmaceutical industry to greater heights 6. Set new and unmatched pharmaceuticals service delivery systems by embracing research and innovation 7. Embrace and adopt IT based operating systems to remain relevant in ever changing technological world 8. Grow our stake with safaricom by opening fifty new stores every year and at least one safaricom shop per annum 9. Pursuing growth opportunities and franchise network expansion in selected new high growth markets within the East African Region 10. Launching our product brands in new markets within the East African Region 11. Delivering synergies through our transformational strategic partnerships. 12. Exceed Financial Targets - Profitability, market share, cash flow from operations, and inventory levels. 13. Increase Customer Satisfaction – Offer affordable and high quality generics and superior pricing strategy. This strategy is underpinned by our continued focus on patient/customer needs and service, our work with governments to further their healthcare agendas, selective partnerships, and our strong financial disciplines. Vision Statement Rupcco intends to position itself as a leading manufacturing and distribution pharmaceutical company in East African region in the next seven (7) years just in time for listing at the Nairobi securities exchange. Mission Statement RUPCCO Ltd will major in the following: Distribution of pharmaceutical products by partnering with well established Pharmaceutical Multinational Corporation to register, import and distribute their products in the region. Consultancy services on products registration and regulatory affairs Carryout wholesale of pharmaceutical products The company will also be compounding and repackaging pharmaceutical products. Contract manufacturing of first moving products The company’s ultimate objective is to establish a full blown manufacturing plant to serve the East African region and beyond CORPORATE VALUES Integrity we commit to truth and honesty in what we say and do, and practice high standards of fairness and ethics at work and in our relationships. Time Value of Money We shall ensure that tasks are accomplished in real time giving real value for money Customer Satisfaction We serve and interact with our internal and external customers as best as we can, in a professional and friendly manner. We constantly look for innovative products and services that will answer their needs. Excellence we aim high in everything we do and continuously seek to improve our level of performance. Team Work We communicate and cooperate with one another, working together in a harmonious way to achieve the companys goals. Respect for the Individual We show respect, appreciation and concern for every person. We engage in positive relationships based on mutual trust. Social Purpose We believe that it is our responsibility to help the community and our countrymen. We recognize that the nature of our business, especially the corporate focus on quality affordable generic medicines, gives us a unique opportunity to make a very positive contribution to the health of the communities that we serve. Armed with a well thought out strategic plan developed over the last eight months, Rupcco has a planned share capitalization of 100, 000 shares valued at Ksh. 1000 each. It is therefore expected to hit requisite capitalization threshold established by multinational corporations in a year’s time. Ruai Pharmaceuticals Company is absorbing 10,000 shares as part of initial capital and the balance 90,000 shares are being offered to the larger members of the public at very favorable terms. The company expects to raise the ksh100, 000,000 startup capital in a year’s time. Public members have a unique and rare opportunity to invest in the pharmaceutical industry in the East African Region. The company has its head office located at Thika Town, Kenya Canners Plaza, third floor where it occupies a space of about 1000 square feet. The premises has been inspected by the pharmacy and poisons board and awarded with a wholesale dealer’s license for the year 2014. Rupcco aims to be among the leading pharmaceutical companies in the manufacturing and distribution of pharmaceutical products within the East Africa region in the next five years. The synergy that comes with every new partner will add value in the much needed capital and business networking especially by the practicing medics. The larger members of the public have a rear opportunity to invest in one of the most lucrative business sectors of the economy. RUPCCO has been operating as a department of Ruai pharmaceuticals where it has been the sole distributor and wholesaler of pharmaceuticals products to the franchise outlets affiliated to Ruai Pharmaceuticals Limited. The franchise outlets, currently standing at seven, shall remain the most trusted and royal customers of RUPCCO LTD. Recently, the company has taken a major milestone in its effort to grow and expand its business in the Kenyan market. This has seen it enter into distribution arrangement with two of the leading pharmaceutical companies in India with over four Hundred products. As per the partnership agreement with one of the major companies, the partner has agreed to pay for the total cost of registering the products and has indicated to supply the goods to RUPCCO on credit terms (ILC). The registration for those products has already started and the first consignment for the products is underway. Additionally, the other company has even indicated to offer logistic and monetary support to aid the company market and launching the registered products in the Kenyan market. Consequently, Rupcco ltd shall play its functional role as the sole agent/distributor in the Kenyan market for a renewable period of five years. The deals can only be described as awesome and a big boost to our local partners. In this regard, the company is holding similar negotiations with three other multinational companies and the negotiations are at different levels of development. More contacts are still flowing through our website contacts and the management will continuously keep track of suitable potential partners and identify possible areas of cooperation. In line with the above information, Rupcco ltd seeks to invite likeminded local investors to buy shares in this company so that they can also benefit from this noble business venture with promising rewards. The minimum share contribution is 50 shares. The revenues generated from shares contribution shall boost the wholesale and distribution activities whereby medical shareholders/owners who are in private practice will qualify for goods on reasonable credit terms and at distributor prices. Management Plan RUPCCO is operating as one among many franchises of Ruai Pharmaceuticals Company Ltd. As such over 90% of the key management functions/decisions of planning, organizing, controlling, staffing and leadership are offered directly by Ruai Pharmaceuticals. In line with existing franchise agreements, RUPCCO will pay Ruai Pharmaceuticals a token management fee of 20% of its gross profit and retain the 80% for its direct operations and growth. This will ensure that the company will operate profitably and reduced cost of operations while ensuring that the vision and mission of RUPCCO is in safe hands and that the set targets are achieved in real time. In addition, Ruai Pharmaceuticals Co. will engage its versatile, experienced and highly skilled team of experts with proven record in franchise management. RUPCCO Management Structure Initially the company has a lean management structure composed of board of directors and headed by the chairman. The board of directors consists of seven (7) directors of whom three come from Ruai Pharmaceuticals and four from the pool of other Rupcco investors. At strategy level the board of directors shall invite the CEO and other senior departmental managers including the chief pharmacist, company pharmacist and marketing manager. The strategy team shall be responsible for safeguarding vision and mission of the company, formulating company philosophy, studying reports and giving guidelines on the same, establish policies and plans of action, setting objectives based on achievable targets (objectives must be SMART & CCF), developing strategy, planning the organizational structure and providing the much needed capital. The directorship maybe be replaced at the end of each financial year as need arises. Immediately under the board of directors, is the Chief Executive Officer (CEO), who is also a board member, and who is in charge of day to day operations of the company and reporting to the board. The CEO will attend all strategy meetings and will oversee general planning, policy implementation, staffing, establishing procedures and processes, setting standards and measures of performance, establishing management programs and operation plans, providing control information and motivating people to act in accordance with philosophy, procedures, and standards in carrying out the plans of the organization. Under the CEO we have departmental heads including the chief pharmacist, company pharmacist, accountant, compliance officer and other subordinates Corporate Expertise and Business Development RUPCCO, being a brainchild of Ruai Pharmaceuticals Company Ltd enjoys the professionalism, experience and the well established business connection of its mother company. The mother company now operates over 40 M-pesa stalls countrywide making it major M-pesa dealer with Safaricom in the country. The highly interactive website, ruaipharmaceuticals, will play a key role in the marketing strategy. RUPCCO will also find ready market for its products through the ever expanding franchise network established by the Ruai Pharmaceuticals. Contract and Pricing It shall be the obligation of the management team to deliver the following rights and benefits to the company’s shareholder/ owners. Potential members of the public/shareholders have, for the first time in this country, a good opportunity to venture into the lucrative pharmaceutical manufacturing/distribution and wholesale businesses with very promising returns. This will increase their earnings as they will share the profits made by the company at the end of the accounting period. The practicing medics who are shareholders will have an opportunity to get goods on credit under very attractive terms. The individual or corporate share capital shall be treated as collateral for credit and a shareholder may borrow goods worth up to three times of his/her shares. The company intends to extend the credit facilities its enjoying from Multinational Corporation to its existing and practicing shareholders. The shareholders who are practicing medics will enjoy low prices that come with economies of scale. RUPCCO will sell products to the shareholders at distribution prices. Distribution rights for those practicing where each outlet owned by the practitioner becomes a collection point and enjoys territorial protection. Business training and sound management systems developed by RuaiPharm consortium. Improved risk management by use of our highly trained professionals with skills in legal matters, accounts/audit, management and strategic planning. Eligible and interested shareholders and other members of the public stand to benefit more from job opportunities created by ever growing company. Capacity building and management solutions for those practicing where each outlet is empowered to trade with county Government and other leading medical institutions in areas of their territorial location. Marketing support from our team, social media and our state of art and highly interactive website currently under construction and sponsored by our sister company Ruai Pharmaceuticals. ruaipharmaceuticals Synergy emanating from ever expanding franchise network and strength of being associated with strong brands The company intends to assist and empower potential investors with unmatched managerial skills in identifying a good location for their business, cash flow projections, planned growth and budgetary estimates, training, marketing, impacting Technical skills, manpower, tax returns, business licensing, business registration and establishment among others. Application Guide The potential client is given a copy of the proposal to read and ask questions The client’s questions are recorded and answered accordingly. The answers will be posted on FAQS page The client is given share application form to indicate the number of shares he or she is intending to buy and the terms of payment. Aspiring shareholders will pay non refundable administration fee of five thousands (ksh 5,000) which caters for administration and legal costs. The client will make payments to Ruai Pharmaceuticals ltd co-operative bank A/C The client is issued with a payment Receipt upon presenting a bank slip The client fills the shareholder’s next of kin form The client is issued with a provisional share certificate upon posting the allocated shares in the shareholder register. The copies of the shareholder register forwarded to the company’s advocate for update. For special terms Share holders and preferential shareholders a share agreement shall be prepared by the advocate.
Posted on: Sun, 09 Mar 2014 18:43:35 +0000
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