 "Rehan Khan, Managing Director Abbott India")
Abbott India, which has expanded its business in key segments through differentiated sales and marketing campaigns and positioned itself as a consumer brand that addresses the emerging healthcare needs of people, won the Star MNC award for 2015.
Under the stewardship of Managing Director Rehan Khan, who took over in 2012, the company has been growing faster than the industry over the last three years. Abbott’s core business grew 26.5 per cent in FY15 while the industry grew at 12.1 per cent on an annualised basis (Abbott’s 2013-14 figures were for 15 months).
US-headquartered Abbott has been present in India since 1910. India, which contributes about four per cent of the company’s global revenue, is among the fastest growing markets for the multinational firm.
In 2010, Abbott had expanded its India footprint by acquiring Piramal Healthcare’s domestic formulations business for $3.7 billion. Through this acquisition, Abbott gained access to a manufacturing facility and 350 brands, making it the largest pharma MNC operating in India.
“India is a priority country for Abbott, be it with investments, innovations or presence in the market. Abbott India continues to remain focused on delivering consistent and productive growth,” says Khan.
Abbott India’s biggest business segment is women’s health, gastroenterology and hepatic care, which grew 22 per cent in FY15, compared to 14 per cent in FY14. Among its other divisions, general care (pain management and vitamin products, including popular brands like Brufen and Surbex) grew 19 per cent in FY15, compared to 13.5 per cent in FY14.
The company has focused on increasing awareness about its products and better penetration in semi-urban and rural markets through tie-ups with diagnostic centres for its flagship thryoid disorder treatment drug Thyronorm and its anti-epileptic drugs. “Our disease awareness programmes, digital initiatives to further scientific knowledge among healthcare professionals and differentiated marketing have been at the forefront of our outreach and help us shape patient care,” Khan added.
The results of the management initiatives are evident. With key business segments showing high double-digit growth, the company’s total revenues in 2014-15 grew an impressive 25.7 per cent to Rs 2,289 crore, and net profit by 44 per cent to Rs 229 crore, compared to the annualised figures of the previous year.
Three of its products — insulin Human Mixtard and Novomix (Abbott distributes both in India) and Thyronorm feature in the top ten domestic products by sales for the last twelve months ended October. These products have been growing faster than the market, as per IMS data.
Abbott has a portfolio of over 400 branded generics in India and it launched 24 new products in 2014-15. It has stepped up its growth plan with the launch of a new nutritional products plant in Gujarat last October and is expanding one of its manufacturing units in Baddi, Himachal Pradesh. This expansion will meet the demands of the local market and also service exports of branded generic drugs to South East Asia and Africa. Investments are continuing apace in infrastructure, capabilities and staff at both its pharmaceutical and nutrition R&D facilities to drive innovations and new product introductions in India.
Emerging markets contributed nearly half of Abbott’s $22 billion global revenue last year. India clearly is a focus area. “It is one of the most important places in the world for Abbott and we are investing here accordingly. We intend to be a strong, committed and contributing part of India’s future,” Abbott Laboratories Chairman and CEO Miles D White had said during his visit to India last year.
