Marico's Kaya starts rolling out Derma Rx

After the acquisition and integration of Singapore-based Derma Rx, Marico’s skincare solutions arm, Kaya, has begun the rollout of its products in India. A set of five new skincare products had been launched in domestic Kaya clinics, with more in the offing, said Ajay Pahwa, chief executive officer, Kaya.

Derma Rx products would also be rolled out in Kaya’s Middle Eastern clinics by the fourth quarter of this year, he said.

The products in India have been priced at a slight premium to Kaya’s in-house range, which varies from Rs 250 to about Rs 600 per pack. The Derma range was available from Rs 900 onwards, he said. However, Kaya is looking at introducing Derma products at lower price points to increase penetration. “We are looking at a wide spectrum of products across price points,” he said. “This will happen as we go forward.”

 

The Derma acquisition, which happened in May-end, added Rs 50 crore to Kaya’s top line, which was Rs 180 crore at the end of March. An additional Rs 20 crore from Kaya’s Middle Eastern business should help the firm to close this financial year at Rs 250 crore, said analysts tracking the company.

Pahwa admits the Middle Eastern business is the strongest for Kaya, posting an eight per cent growth in the first quarter of this financial year against a decline of 11 per cent in India. Kaya, he said, was looking at adding about six to eight clinics in the Middle East this year. Three clinics, he said, had already been added in the first half of this year, with the rest to come up in the second half.

Clinics in the Middle East would increase to 20 from 14, while in neighbouring Bangladesh, the tally would be two by the end of this year, said Pahwa. “If you take the four clinics of Derma in Singapore and Malaysia, we have a decent spread. But there is scope for growth.”

“We are also looking at expanding our footprint into Africa and the far East besides Bangladesh,” he said. “In India, the strategy will be that of consolidation rather than expansion.”