The Determinants of Ranbaxy Pharmaceutical Company Growth in Terms of Net Sales

Growth has an important dimension of the firm. Through growth, the firm will be able to expand its size. Firms can grow at different rate and with different regularity. Depending on the amount of growth and the initial size of the firm, a given amount of growth may look remarkable in relative or absolute terms. In this paper, an attempt is made to identify the determinants of growth in terms of net sales in Ranbaxy pharmaceutical company. This study covers a period of ten years, i.e., from 2002–03 to 2011–12. In order to study the growth, there are four important variables, viz., market situation, core resources, R&D and investment), which was chosen for empirical investigation. For this, statistical tools like correlation and multiple regressions are used. The technique of correlation is used to know the relationship among the variables. It shows that the R&D is positively significant whereas the Investment is negatively significant. A multiple regression analysis is used to develop a model to identify the determinants of growth of the firm in this industry. The results revealed that the R&D and Investment is statistically significant in determining the growth of Ranbaxy pharmaceutical company.