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Zydus Wellness steps on gas: plans Everyuth re-launch, eyes buy-outs

Firm is setting up new plant in Sikkim for Rs 35 crore; expected to go onstream within FY17

Sohini Das  |  Ahmedabad 

Facials go snail pace

The Rs 429-crore arm of Ahmedabad-based pharmaceutical giant Cadila Healthcare, Ltd, which has been clocking a 3-4 per cent compounded growth rate in revenues for the past few years, has drawn up plans to propel the growth rate to double digits this fiscal. The company is open to acquisitions both in the domestic and international markets, while it readies to re-launch its brand of facial cleansers and set up a new production facility at Sikkim.

Zydus Wellness' chief operating officer and whole-time director, Tarun Arora explained, "We have three pillar brands at (EverYuth, Sugar Free, Nutrilite) which have huge growth potential. The key challenge for us is to grow the market share as we already have significant share in each of the categories."



However, in the face-wash segment, which is estimated to be around Rs 1,650 crore, the company has less than 2 per cent market share. Its share has eroded over the years with competition like Himalaya picking up significant share in the segment off late. In the peel-off segment (in which was one of the pioneering brands) there is still a huge brand recall and loyalty, and the company enjoys a market share above 90 per cent. In the scrubs segment, it has over 30 per cent market share. As per MAT March’16, report of Nielsen, the scrub category has grown by 11.7 per cent, scrub has maintained its number one position with a market share of 30.7 per cent, the peel-off mask category has grown by 5.7 per cent, peel-off mask has gained share by 80 basis points and maintained its number 1 position with a market share of 92.1 per cent.

In the overall facial cleansing products market (of around Rs 2001.9 crore as per Retail Audit, MAT March 2016) has a 6.5 per cent market share. The idea is to be in the top 5 players in facial cleansing. "We have already come up with a new packaging for the which is more contemporary looking. There would be a new campaign around the re-launch soon, around the next quarter or so," Arora said.

At the same time, the company is planning to increase its export focus on South East Asia, countries, West Asia and Africa. "Currently, we have presence in a couple of countries, and last year our revenues from exports was only a fraction. But, we are building step by step and expect to grow it consistently over the next few years," Arora explained.

To further propel the growth rate, and boost its product pipeline is now open to making strategic acquisitions, be it of products or facilities. It already has around Rs 396.3 crore cash in the balance sheet, and as a result is well-positioned to go for inorganic growth opportunities. Arora  said that we are looking for opportunities, both in India and abroad, and given the strong cash position, it would be easy.
     
It is already in process of setting up a new plant at Sikkim with an investment of Rs 35 crore. It is expected to go onstream by the end of this fiscal and would initially make and eventually add more products.

Zydus enjoys a 93.6 per cent market share in the sugar substitutes market which is estimated to be around Rs 298.8 crore (Nielsen) and hence the challenge is to increase market share. Arora said that gradually a new set of customers is coming into this category, earlier it was only limited to diabetics. This is the reason why Zydus has signed in actress Parineeti Chopra as the brand ambassador for to connect with the younger health conscious audience.

As for the Stevia, the herbal variant of the low calorie sweetener brand Sugar Free, that has been developed from a South American herb Stevia, the company is yet to go for a national launch. It had launched it in Gujarat market last year and has not scaled up presence elsewhere. Arora admitted that the product has faced some resistance from the consumers owing to the strong after-taste it leaves, and the high pricing. It was priced almost twice that of conventional artificial sweeteners.

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Zydus Wellness steps on gas: plans Everyuth re-launch, eyes buy-outs

Firm is setting up new plant in Sikkim for Rs 35 crore; expected to go onstream within FY17

Firm is setting up new plant in Sikkim for Rs 35 crore; expected to go onstream within FY17 The Rs 429-crore arm of Ahmedabad-based pharmaceutical giant Cadila Healthcare, Ltd, which has been clocking a 3-4 per cent compounded growth rate in revenues for the past few years, has drawn up plans to propel the growth rate to double digits this fiscal. The company is open to acquisitions both in the domestic and international markets, while it readies to re-launch its brand of facial cleansers and set up a new production facility at Sikkim.

Zydus Wellness' chief operating officer and whole-time director, Tarun Arora explained, "We have three pillar brands at (EverYuth, Sugar Free, Nutrilite) which have huge growth potential. The key challenge for us is to grow the market share as we already have significant share in each of the categories."

However, in the face-wash segment, which is estimated to be around Rs 1,650 crore, the company has less than 2 per cent market share. Its share has eroded over the years with competition like Himalaya picking up significant share in the segment off late. In the peel-off segment (in which was one of the pioneering brands) there is still a huge brand recall and loyalty, and the company enjoys a market share above 90 per cent. In the scrubs segment, it has over 30 per cent market share. As per MAT March’16, report of Nielsen, the scrub category has grown by 11.7 per cent, scrub has maintained its number one position with a market share of 30.7 per cent, the peel-off mask category has grown by 5.7 per cent, peel-off mask has gained share by 80 basis points and maintained its number 1 position with a market share of 92.1 per cent.

In the overall facial cleansing products market (of around Rs 2001.9 crore as per Retail Audit, MAT March 2016) has a 6.5 per cent market share. The idea is to be in the top 5 players in facial cleansing. "We have already come up with a new packaging for the which is more contemporary looking. There would be a new campaign around the re-launch soon, around the next quarter or so," Arora said.

At the same time, the company is planning to increase its export focus on South East Asia, countries, West Asia and Africa. "Currently, we have presence in a couple of countries, and last year our revenues from exports was only a fraction. But, we are building step by step and expect to grow it consistently over the next few years," Arora explained.

To further propel the growth rate, and boost its product pipeline is now open to making strategic acquisitions, be it of products or facilities. It already has around Rs 396.3 crore cash in the balance sheet, and as a result is well-positioned to go for inorganic growth opportunities. Arora  said that we are looking for opportunities, both in India and abroad, and given the strong cash position, it would be easy.
     
It is already in process of setting up a new plant at Sikkim with an investment of Rs 35 crore. It is expected to go onstream by the end of this fiscal and would initially make and eventually add more products.

Zydus enjoys a 93.6 per cent market share in the sugar substitutes market which is estimated to be around Rs 298.8 crore (Nielsen) and hence the challenge is to increase market share. Arora said that gradually a new set of customers is coming into this category, earlier it was only limited to diabetics. This is the reason why Zydus has signed in actress Parineeti Chopra as the brand ambassador for to connect with the younger health conscious audience.

As for the Stevia, the herbal variant of the low calorie sweetener brand Sugar Free, that has been developed from a South American herb Stevia, the company is yet to go for a national launch. It had launched it in Gujarat market last year and has not scaled up presence elsewhere. Arora admitted that the product has faced some resistance from the consumers owing to the strong after-taste it leaves, and the high pricing. It was priced almost twice that of conventional artificial sweeteners.
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Business Standard
177 22

Zydus Wellness steps on gas: plans Everyuth re-launch, eyes buy-outs

Firm is setting up new plant in Sikkim for Rs 35 crore; expected to go onstream within FY17

The Rs 429-crore arm of Ahmedabad-based pharmaceutical giant Cadila Healthcare, Ltd, which has been clocking a 3-4 per cent compounded growth rate in revenues for the past few years, has drawn up plans to propel the growth rate to double digits this fiscal. The company is open to acquisitions both in the domestic and international markets, while it readies to re-launch its brand of facial cleansers and set up a new production facility at Sikkim.

Zydus Wellness' chief operating officer and whole-time director, Tarun Arora explained, "We have three pillar brands at (EverYuth, Sugar Free, Nutrilite) which have huge growth potential. The key challenge for us is to grow the market share as we already have significant share in each of the categories."

However, in the face-wash segment, which is estimated to be around Rs 1,650 crore, the company has less than 2 per cent market share. Its share has eroded over the years with competition like Himalaya picking up significant share in the segment off late. In the peel-off segment (in which was one of the pioneering brands) there is still a huge brand recall and loyalty, and the company enjoys a market share above 90 per cent. In the scrubs segment, it has over 30 per cent market share. As per MAT March’16, report of Nielsen, the scrub category has grown by 11.7 per cent, scrub has maintained its number one position with a market share of 30.7 per cent, the peel-off mask category has grown by 5.7 per cent, peel-off mask has gained share by 80 basis points and maintained its number 1 position with a market share of 92.1 per cent.

In the overall facial cleansing products market (of around Rs 2001.9 crore as per Retail Audit, MAT March 2016) has a 6.5 per cent market share. The idea is to be in the top 5 players in facial cleansing. "We have already come up with a new packaging for the which is more contemporary looking. There would be a new campaign around the re-launch soon, around the next quarter or so," Arora said.

At the same time, the company is planning to increase its export focus on South East Asia, countries, West Asia and Africa. "Currently, we have presence in a couple of countries, and last year our revenues from exports was only a fraction. But, we are building step by step and expect to grow it consistently over the next few years," Arora explained.

To further propel the growth rate, and boost its product pipeline is now open to making strategic acquisitions, be it of products or facilities. It already has around Rs 396.3 crore cash in the balance sheet, and as a result is well-positioned to go for inorganic growth opportunities. Arora  said that we are looking for opportunities, both in India and abroad, and given the strong cash position, it would be easy.
     
It is already in process of setting up a new plant at Sikkim with an investment of Rs 35 crore. It is expected to go onstream by the end of this fiscal and would initially make and eventually add more products.

Zydus enjoys a 93.6 per cent market share in the sugar substitutes market which is estimated to be around Rs 298.8 crore (Nielsen) and hence the challenge is to increase market share. Arora said that gradually a new set of customers is coming into this category, earlier it was only limited to diabetics. This is the reason why Zydus has signed in actress Parineeti Chopra as the brand ambassador for to connect with the younger health conscious audience.

As for the Stevia, the herbal variant of the low calorie sweetener brand Sugar Free, that has been developed from a South American herb Stevia, the company is yet to go for a national launch. It had launched it in Gujarat market last year and has not scaled up presence elsewhere. Arora admitted that the product has faced some resistance from the consumers owing to the strong after-taste it leaves, and the high pricing. It was priced almost twice that of conventional artificial sweeteners.

image
Business Standard
177 22