In conformity with the GATT agreements on TRIPs (Trade Related Aspects on Intellectual Property Right) during 1994, the Indian Govt. had to undertaken a new patent act in 2005 in lieu of earlier patent act in 1970. This new patent act is often called as 'product patent' which ensured every right of inventors of pharmaceutical product in terms of process as well as product. The process re-engineering helped so far the Indian pharmaceutical companies stopped with the introduction of such 'product patent'. This changing situation compelled Indian pharmaceutical company to undertake huge R&D involvement for new generic production. This involved huge fixed investment, but the operating expenses which are very much important in surviving a business entity has also increased in such a changing situation. The operating expenses entail working capital of the business. So, in this study the author has tried to identify how Indian pharmaceutical company managed working capital in such a changing situation under 'product patent'. Has this situation helped Indian company to manage working capital better than pre-product patent period?