Elder group on growth path

The Rs 46 crore Elder Healthcare, the personalcare arm of the Rs 500 crore Elder group, is eyeing acquisitions in eastern European markets to expand its consumer reach.

"At any given time, we would not like to spend more than $10 million on one acquisition. We are, at present, looking at more than 35 countries to expand our consumer base," said Anuj Saxena, managing director, Elder Healthcare.

Elder Pharma recently bought a 20 per cent stake in UK-based Neutra Health, a marketing and distribution company listed on London's Alternative Investment Market (AIM), for Rs 47 crore.

The acquisiton has ensured Elder's entry into the regulated markets.

Going forward, Saxena plans to introduce in India some of Neutra's products while the latter would continue marketing Elder's products in UK.

Elder also plans to set up a new plant at Uttarakhand at an investment of Rs 6 crore.

The plant would be operational by October this year and would produce red and white balm as well as muscle rub under the Tiger brand.

In personalcare, Elder plans to launch 17 more products in the next 2 years.

At present it has 7 products that include fairness creams for men and women, lip balm, soaps, mouthwash, etc.

"Over the next two years we plan to increase our portfolio in skincare, haircare, and oralcare. We would launch new brands as well as newer brand extentions," Saxena said.

Elder is also bullish on the men's cosmetics space as it feels this is a nascent market and is growing at 112 per cent year on year.

Elder Healthcare has set a turnover target of Rs 150 crore by 2010, while Elder group is targetting Rs 1000 crore turnover by 2010.