Emami eyes big share in homeopathy segment

Kolkata-based FMCG major ties up with German company to market its products in India.

Eyeing a major share of the homeopathy pharma segment, the Kolkata-based FMCG major Emami group today announced a partnership with German homeopathic company Hevert-Arzneimittel.

The partnership between the Frankfurt-based company and Emami's homeopathic vertical M Bhattacharya & Co will enable the company to import and market Hevert's products in India.

M Bhattacharya will now distribute six products- Hevert Cold & Flue relief, Hevert Cough Relief, Hevert Stress Relief, Hevert Vertigo Relief, Hevert Pain Relief, Hevert Allergy Relief across the country through 400 retail outlets across the distribution channel. Emami acquired M Bhattacharya & Co. in 2009. The medicines will also be available through the e-commerce platform of Frank Ross.

RK Jatia, who is the managing director of Emami's pharmacy business under the Frank Ross umbrella said that three agreements of licensing, manufacturing of select Hevert formations, distribution and marketing of the products have been signed under this partnership.

"We also plan to manufacture the products in India in near future for which Hevert will supply us with the technical know-how," said Jatia. He added that the existing manufacturing facility at Madhyamgram will be upgraded to manufacture the medicines.

The current market size for homeopathy in India is close to Rs 1,500 crore and has an annual growth rate of 25 percent. But a majority of the market is unorganised, hence Emami through its robust distribution network can gain a larger share of the market.

Though not a major revenue source for Emami at present, Jatia said that they were looking at a revenue of Rs 40- 50 crore by 2016. " When we acquired M Bhattacharya, it was a sick unit and closed for four years, we have now been accredited by the ISO," he said.

The products which are targetted at the premium segment willl be priced in the range of allopathy medicine in the Indian market. " In the growing middle class in India which demands side-effect free medicine and can afford the premium medicines, there is a market for the homeopathic pharma segment," said Mathias Hevert, managing director, Hevert- Arzneimittel.

This is the first footprint of the German company in India and it has an eye on the South -Asian market for future prospects.