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The cash-rich Piramal Group is gunning for the top position among the over-the-counter (OTC) drug makers in India in the next three to four years.
According to senior officials, the OTC division of Piramal Healthcare aims at touching the Rs 1,000 crore mark in the next three-four years from the current revenue of Rs 240 crore.
"The self-care market is about Rs 10,000 crore, growing at 12-13 per cent. We are quite small now, but believe to be one of the top players in three-four years," said Nandini Piramal, executive director, Piramal Enterprises, who also leads the OTC division of Piramal Healthcare.
"After the Abbott deal, we decided to retain the OTC business, as we believe this is a great opportunity leveraging the growing Indian consumer market. The Indian consumer space is evolving rapidly. With rising incomes and increased access to information, the consumer is realising the importance of being proactive about their self-care needs," Piramal added.
As part of the expansion, the group has entered into the niche area of children's well-being, an innovative space where no other fast-moving consumer goods (FMCG) makers have ventured into. The group has launched perfumes for kids, with five variants in animal shaped bottles under the Jungle Magic brand, as well as mosquito repellent band Banditz. The company is expected to reap about Rs 60-70 crore from these two products in two years.
Last month, the group had launched its new anti-ageing cream Lacto Calamine RENEU. The brands in the OTC portfolio includes Lacto Calamine, I products (i-pill, i-sure, i-can), Saridon, Supractiv Complete (nutrition supplement), Polycrol, Tri-active (anti-bacterial soap), Itchmosol and Jungle Magic. According to the company, the division's workforce serves 400,000 chemists and general stores.
Kedar Rajadnye, president and chief operating officer, consumer products division, said, "We see more competition from FMCG players than OTC makers in India. Hence, we plan to make our portfolio more relevant and contemporary. In the past two years, we made the makeover of a traditional brand like Lacto Calamine."
To widen the reach of OTC products, the group had tied up with Olympic medalist Mary Kom as brand ambassador to endorse its new product of antacid range - Polycrol+.
In 2010, Piramal Healthcare had bought Cipla's oral contraceptive brand, i-pill, for Rs 95 crore. Later, Piramal launched the 'I range' of products, adding 'I Sure' (ovulation strip) and 'I Can' (pregnancy test kit). At present, i-pill is the second largest selling emergency contraceptive brand, in India after Mankind Pharma's Unwanted 72, in a fast growing Rs 150-crore oral contraceptive market. At present, i-pill has an annual sales revenue of Rs 80 crore.
In line with the i-pill buyout, the group has plans for buying out more brands in India. "We have firm plans for more brand buyouts in India. We have no restrictions as far as money is concerned, but it should fit into our basket," Rajadnye added.
Since its set-up in 2007, the OTC business has grown at a compound annual growth rate of 33 per cent and has jumped ranks from 40th in 2007 to 9th in 2012, Rajadnye said.
