To open four more clinics and a hospital in Chennai.
Amrutanjan Health Care Limited, a Chennai-based pain management healthcare products manufacturer, is planning to hive off its pain clinics business – Osmosis – into a separate entity by December this year, according to its chief executive officer and managing director Sambhu Sivalenka. The company currently runs one pain clinic in Chennai.
“We are in the process of setting up four more such clinics and a hub (hospital) in Chennai by the end of the current financial year, before launching an equal number of clinics in Hyderabad and Bangalore next fiscal, each entailing an investment of Rs 1 crore,” he told mediapersons here on Sunday.
Osmosis clinics, manned by orthopaedic and neurosurgeons, offers pain relief for migraine and tension headaches, non-surgical fat burning treatments for weight loss and remedies for reducing wrinkles through various techniques like botox and restylane injections.
Announcing Telugu actor Mahesh Babu as its brand ambassador here on Sunday, Sivalenka said the company had earmarked Rs 17 crore for above-the-line activities across the country, including Rs 6 crore in Andhra Pradesh, for the current financial year.
“We are hoping to achieve a turnover of Rs 124 crore this fiscal, as against Rs 89 crore last year, on the back of the new promotion campaign for our Amrutanjan Strong brand and focus on exports,” he said, adding the company had already registered its products for exports in 13 countries and was now eyeing 30 countries by the end of the current financial year.
The rubefacients market in India is estimated at Rs 1,400 crore, which is segmented as balm, pain and cold categories. Of this, Amrutanjan operates in the balm category, which is about Rs 443 crore and growing at 8 per cent. In the balm category, the company enjoys a 27 per cent market share, primarily from the southern markets.
Sivalenka said with a market share of 55 per cent in Tamil Nadu, 80 per cent in Orissa, 22 per cent in Andhra Pradesh, 56 per cent in West Bengal and 15 per cent in Maharashtra, the company had planned a pan-India expansion starting next fiscal.
Denying reports on takeover plans of the 116-year-old Amrutanjan brand by Emami and Himalaya, he said the company was now all out to woo the US market. The pain management category, which is one of the most sought-after in the US over-the-counter (OTC) market, has attracted many OTC products recently by pharma companies.
“We are looking at expanding our presence in the global markets as there is an increasing demand for pain management products, We would focus more on the US market as a single product like Tiger Balm alone enjoys about $20 million annual sales revenue there,” he said, while declining to comment further.