Himalaya hopes to add 50 stores: CEO Philipe Haydon

Sometimes, it pays to be present everywhere just like the ₹1800-crore Himalaya Drug Company, which sells everything from face wash and diaper rash cream to animal feed and liver medicines. Its large portfolio insulated the company from the impact of demonetisation and Baba Ramdev-promoted low-priced Patanjali products. CEO Philipe Haydon talks about competition, expansion and more in an interview with Business Line . Edited excerpts:

How has the market scenario changed for you after the entry of cheaper brands like Patanjali and increased focus of some older players like Dabur and Colgate on certain herbal categories?

It has not impacted us significantly as our strengths are in certain categories where this competitor (Patanjali) is not strong.

We are the market leader in face wash (23.8 per cent share) and are a clear No.2 in the baby care category. This player is not prominent in these categories, which are our cash cows. Other players have been impacted in the oral care and honey category but not us.

You have been expanding the product portfolio but all under the same brand – Himalaya. Any plans to follow a multiple brand strategy?

Our plan is always going to be to consolidate under the Himalaya umbrella brand as that is our philosophy. In our verticals, pharmaceutical has exclusive branded products like Liv 52. But when it comes to personal and baby care, it will be all under the Himalaya brand only.

Himalaya is not seen as a mass brand. Any plans to change that image?

In the categories where we are present, we are competitively priced and we pride ourselves in offering premium quality at affordable pricing.

Some people have a perception that we are premium but our pricing is in line with competition. We have always been affordable.

Any acquisition plans to widen your product offerings?

No, simply because we have too much on our plates right now. We have just launched the men’s range, mother care range, premium creams and have our hands full. We have more than what we can handle. All our expansion is through internally accrued funds. Our next five years will throw up big challenges.

Hasn’t Himalaya spread itself too thin by being present in multiple categories?

We have thought through this clearly. These (pharmaceuticals, personal care, baby care etc) are all separate business verticals catering to different audience. Today, we have six businesses (personal care, pharmaceutical, baby care, animal care, wellness etc) and although the mother brand is Himalaya, they are completely independent businesses. If we go out of the wellness arena to watches or bags, you would be right.

How much has demonetisation impacted business?

We tried very hard to understand the impact of demonetisation on our business but have not been able to come up with the right answer. While our personal care business has been affected to some extent, baby care is growing at whopping 61 per cent. The baby care would be well in the vicinity ₹500 crore plus and brings 15 per cent of our revenues. We have not seen any slowdown in animal health, mother care or even in wellness and nutrition.

Himalaya has exclusive stores. How has this strategy helped the company?.

We have close to 200 stores now. We hope to add another 50 in the next year. These stores are to introduce customers to the world of Himalaya. There would be nearly 450 SKUs of Himalaya in these stores. Our CAGR has been in excess of 20 per cent. These are small intangibles that go in the building of a brand. These stores are making decent profits and it is a viable business proposition. They are not in the red anymore.

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