The Hindu Business Line : Elder Pharma's Shelcal, Tiger Balm headed for Pak

SHELCAL was the first product that Elder Pharma launched in India 18 years ago. It will be the first product that the company will launch soon in Pakistan as well.

Despite the cricket bonhomie between the two countries, India still does not sell directly to Pakistan. So, Elder Pharmaceuticals Ltd is set to ink a distribution agreement this week with Italian company Schraper Pharmaceutical to take Shelcal into Pakistan through legal channels.

Like several medicines that are exported from India, the estimated Rs 60 crore Shelcal too will take the circuitous route via Dubai to be sold in neighbouring Pakistan.

It would be shipped first to an alliance-partner of Elder Pharma in Dubai, which will in turn market it to Schraper Pharmaceuticals for sale in Pakistan, confirmed Mr Alok Saxena, Elder Pharma's Director-International.

Next in line for Pakistan is popular pain-balm Tiger Balm, which Elder has in-licensed from Singapore's Haw Par Healthcare.

Tiger Balm is manufactured in India by Elder Healthcare and marketed by Elder Pharma across South Asia.

However, as the balm would need to be promoted more like a consumer product, Elder will ally with a different partner to take it into Pakistan, he told Business Line.

Shelcal has a grey market in Pakistan, admitted Mr Saxena.

A team from Schraper is at present training in India to market the product, which is sold only on prescription. Shelcal is sold in India at Rs 45 for 15 tablets. The price will be double in Pakistan because of customs duty, he said.

With about 28 in-licensing deals, to bring products of foreign companies into India, Elder Pharma now wants to take its branded products abroad.

It has chalked out plans for the African markets, CIS countries and South East Asia.

The company has acquired 50 per cent equity in Vincom Pharmaceuticals in Ghana, an industry representative said. And it is expected to mop up about Rs 15 crore from these markets.

Meanwhile, the top brass at Elder said that products were being registered in the international markets and revenues were not expected to flow until 2007 - 08.

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