The Hindu Business Line : FMCG, pharma cos betting on `wellness' products

The key, apparently, is to make one's presence felt in the growing "natural" products market, which is expected to grow exponentially over the next few years.

New Delhi , March 13

CALL them Fast Moving Health Goods (FMHG) or over-the-counter (OTC) drugs - the lines seem to be blurring.

While FMCG companies are entering the bastion of well-entrenched pharma companies by launching "wellness" products, the latter are finding medicated soaps, shampoos and creams an attractive segment.

Dabur India Ltd , Wipro Consumer Care and Lighting and Emami Ltd are all betting big on wellness products such as laxatives, cold and cough syrups, digestives and pain balms.

Till now, only well-entrenched pharmaceutical companies such as Ranbaxy Laboratories, Pfizer Ltd and Boots Piramal Healthcare have been dealing in these categories with brands such as Benadryl, Olesan, Pepfiz, Strepsils.

Similarly, Cadila Pharmaceuticals, Zandu Pharmaceuticals and Paras Pharmaceuticals are eyeing the medicated soaps, shampoos and creams segment. Even homeopathy company SBL Ltd is planning to launch a range of medicated cosmetic products.

The key, apparently, is to make one's presence felt in the growing "natural" products market, which is expected to grow exponentially over the next few years.

The President of Wipro Consumer Care, Mr Vineet Agrawal, told Business Line that after the success of Wipro Sanjeevani Isabgol (laxative) brand launched last year, it is planning to come out with another OTC product soon.

"People are feeling increasingly stressed out and consequently tend to fall ill. But rather than popping pills, the general tendency is to look for `natural' products and this is the need we wish to fulfil. After Isabgol's success, we are keen to launch products on the health plank."

And Dabur has also already indicated that along with its focus on existing FMCG products, it is keen to enter wellness products such as laxatives, cough and cold formulations (it has already acquired Honitus from group company Dabur Pharma Ltd) and pain relief balms.

The Kolkata-based Emami Ltd has decided to de-focus certain product categories in favour of FMHG products. Mr Mohan Goenka, Director at Emami, said that the company does not want to be in products that do not help Emami's bottomline.

"We will focus on the FMHG market, rather than FMCG products such as soap, shampoo and beauty cream; these products generate volumes but do not provide adequate margins. Over the next three months we will get into areas such as cough and cold medicines, digestives, laxatives and memory boosters."

According to analysts, the reason why pharma companies are increasingly entering the personal care segment could be because they are looking for alternative revenue streams.

"Some of the companies may be feeling threatened by the patent regime and their foray into soaps or shampoos may be viewed as a revenue option. Also, these products can be pushed through marketing initiatives. By adding value to the already available personal care products, pharma companies would get better margins," said an equity analyst.

"The number of customers that you can reach through the OTC route helps in building volumes. While there is crowding in the personal care segment, we are targeting customers by talking about the health benefits offered," said Mr Rajneesh Chandan, Head of Marketing, SBL India.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rs 150-crore pharma R&D fund set to roll

External credit agencies major source of funding for telecom projects

India to go ahead with pact for gas supply from Iran — `Investment interest won't be affected'

FMCG, pharma cos betting on `wellness' products

Are NBFCs being hounded out?

`Distrust and caution are the parents of security'

PNB fixes public issue price at Rs 390 per share

Infosys team emerges winner in Business Line Corporate Quiz