Dr Batra’s to focus on FMCG products; plans to enter nutrition and wellness segment soon

With the rising popularity of ayurvedic and herbal-based offerings, Dr Batra’s is looking at increased traction for its FMCG offerings. Its FMCG product portfolio covers haircare, skincare and personal care offerings.

According to Sandeep Saxena, Group Executive, Dr Batra’s Positive Health Clinic, the company will focus on its FMCG vertical with the introduction of new products that cater across haircare and skincare.

As of now, the company has 51 stock keeping units and would look to take it to 65 soon.

The company is also planning a foray into the nutrition and wellness segment targeting teenagers and adults (age 15 and upwards). The launch is expected around June, subject to regulatory clearances.

“FMCG is one of our fastest growing verticals and in FY-18 we expect it to clock around 40-50 per cent growth,” he told BusinessLine during an interview. Saxena was in the city for the launch of the company’s new haircare range.

Currently, FMCG offerings account for 15 per cent of the Mumbai-based group’s total turnover, another 15 per cent comes from aesthetics and the remaining 70 per cent from homoeopathic clinics’ chain.

However, with increased focus on the vertical, the ratio is expected to change in the coming fiscal (FY-18). The share of FMCG is expected to increase to 22 per cent, while clinics will be 65 per cent. Aesthetics will account for the remaining.

“It is a conscious-decision to focus on FMCG offerings and reach out to more people,” he pointed out.

Interestingly, the immediate focus will be to expand through modern retail outlets and organised pharmacy chains targeting a “select clientele”. And, not through the regular neighbourhood kirana stores.

Although Dr Batra’s offerings will jostle for space with brands – like Patanjali, Dabur, The Body Shop, Biotique, Himalaya, Vicco and so on – its products will be priced at 20-50 per cent premium.

According to Saxena, the company will also ramp up its distribution network, ensure availability of products across more point of sales and set up new warehouses.

From 6,000, the plan is to take the point of sales to 10,000 by FY-18, while three new warehouses are expected to be set up soon – Lucknow, Chennai and Bengaluru. The last warehouse came up in Kolkata.

This apart, the company will also invest 20 per cent of its FMCG turnover towards marketing, while capex plans are being worked out to ramp up production at its Palgarh unit.

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