After selling its branded domestic formulations business to Ahmedabad-based Torrent Pharmaceuticals in a Rs 2000 crore deal, Elder Health Care Ltd (EHCL), part of the Elder group has said it will focus purely on the FMCG business and exit from the prescription business of skin-care market. It is eyeing a turnover of Rs 500 crore in FY 2014.
"Going forward in the next three to four years Elder healthcare, the FMCG arm of the Elder group will concentrate on its core FMCG business which includes various over the counter (OTC) brands, color cosmetics products along with its distribution brands including Richfeel and Stay On."said Anuj Saxena, managing director, Elder Health Care Limited.
He further added that the company will build and promote and focus some of its key brands like Ryme (Colour Cosmetics), Respite (pain management),Skin Origins (skin care). Recently the company had forayed into growing color cosmetic market in the country with introduction of its own nail polish range 'Rhyme' targeting women of all age groups. "Nail varnish is becoming the top selling fashion accessory and beauty business and is likely to grow in double digit in coming years," said Anuj Saxena.
EHCL has been actively increasing its OTC portfolio over the last few years and has a total of 13 products (own and licensed) covering segments like skin care, hair care, pain management, fairness segment (both men and women), oral care, lip care, burn categories, men's/women's grooming among others.
"In-licensed products contribute almost 85% to our turnover. These are all revenue sharing deals. The company is also looking at growing its own brands as a long-term strategy. It wants to increase the revenue contribution of own brands to 50% over the next three years. With this, Elder Healthcare is eyeing a turnover of Rs 500 crore by FY 2014." Dr Saxena said.
The company has distribution tie up with Shree Maruti Herbals, a leading developer of quality herbal medicines for marketing its flagship product 'Stay ON', India's third largest product in this category with a 5% market share and has expanded its network to over 700,000 outlets across the country.
"EHCL had forayed deep into the growing pain management market in the country with introduction of its own product range 'Respite' and 'Elder Balm'. EHCL has tie up with Mumbai based Richfeel Health & Beauty Private Limited, the company which runs India's largest chain of Trichology (Hair & Scalp Clinics) and also an eminent player in the salon products range to foray into the Indian hair care market estimated at Rs 12,800 crore,"Saxena said.
Elder healthcare is already engaged in manufacture and marketing of FMCG and skin care products including face wash with full range of face washes under its own brand 'Skin Origins'.
"This is part of the company's strategy to provide high quality natural skin care products at affordable prices evolving needs of the Indian women in relation to their skin care needs," he added.