Cash Flow and Working Capital Management in ...

Cash Flow and Working Capital Management in Pharmaceutical Industry

Author Name : Prof. Kiran Rodrigues, Samruddhi Patil

ABSTRACT India is a major player in the global pharmaceutical and vaccine sectors. It is not simply the world's largest provider of generic pharmaceuticals. Furthermore, the industry demonstrated resilience, particularly during the COVID-19 pandemic, gaining the nation the moniker of "Pharmacy of the World". Given the extent and context of India's pharmaceutical business, numerous entrepreneurs develop pharma startups. This journey is full of hurdles and dynamic strategies to overcome them, one of the major challenges is to set up a reliable and adaptive cash and working capital management system. Addressing the same, goal of this research is to evaluate cash and working capital management in pharmaceutical companies. The study also focuses on identifying the difficulties encountered in establishing working capital management at a startup.The study suggests, the need in adopting advances in cash management systems and using a hybrid strategy can lead to solid financial performance.This research sheds light on the fine balance pharmaceutical businesses need to strike between securing their current financial stability and investing in R&D for future development. The results provide useful insights for managers in the pharmaceutical industry and further our understanding of financial management techniques in knowledge intensive businesses.