ABSTRACT
The new Sarabhai Chemicals would be responsible only for existing pharmaceutical operations. Its imports are chemicals, part-processed products, special packaging materials, and other supplies. Approximately three-quarters of its raw materials are either controlled by import regulations or come from government-controlled sources at fixed prices. Much of the material from abroad is also bought at fixed prices over which little or no bargaining is possible. In consequence, comparatively little financial risk is incurred through price fluctuations in raw material markets. The problem of the import system is to maintain supplies through government agencies, and balance them with manufacturing and marketing demands. Temporarily, because raw materials for the Fine Chemicals unit came from the same sources and were subject to the same controls, the buying operation of Sarabhai Chemicals would have to continue to supply raw materials to Fine Chemicals, acting as agent and clearing house.
