A STUDY ON COST CONTROL PRACTICES AT Dr. REDDY’S LABORATORIES, HYDERABAD

Abstract

This paper investigates cost control practices at Dr. Reddy's Laboratories, Hyderabad, a leading pharmaceutical company in India. Cost control is critical in the pharmaceutical industry due to its impact on profitability, competitive advantage, and sustainability. The study employs a qualitative research approach, utilizing interviews and document analysis to explore the strategies, tools, and challenges associated with cost control at Dr. Reddy's Laboratories. Findings reveal that the company employs a range of practices including budgeting, variance analysis, cost reduction initiatives, and strategic sourcing to manage costs effectively. However, challenges such as regulatory pressures, market dynamics, and technological advancements influence the implementation and effectiveness of these practices. The study concludes with recommendations for enhancing cost control practices in the pharmaceutical sector, emphasizing the need for continuous adaptation and innovation to navigate the evolving landscape effectively. Key Words:Cost control, Cost Reduction, actual costs, Budgeted costs, Expenses