Post Torrent deal, a much leaner and better leveraged Elder Pharmaceuticals Ltd (BSE: 532322 / NSE: ELDERPHARM) has begun its ambitious foray and growth story into the Rs 4000 crore Dermatology segment. Hitherto the company had some presence in this category but with a slew of new launches it plans to grab a market share of 4-5 per cent in each sub-category. Skin care has always been a market segment characterized by several global MNCs like Unilever, P&G, Revlon, Lakme, Amway, Artistry, Olay, Garnier and L’Oreal as well as local players and thousands of small units in the unorganized category – each vying for a dominant presence through adoption of a combination of marketing strategies and product differentiation.
Amongst the new introductions of Elder are Eslite Plus, a Hydroquinone & combination cream for Skin Lightening, Ultraguard, a sunscreen containing American & European FDA standard ingredients like Tinosorb from BASF & Uvinul A Plus which make it non greasy & skin friendly as compared to other preparations, B-New, an anti aging cream for rejuvenation of dry rough skin areas, Camoflage a stretch-marks & Pregnancy line remover and Skin O2, a multi vitamin product in soft gelatin capsules for skin nourishment. Says Mr Alok Saxena, Managing Director, Elder Pharmaceuticals Ltd, “Launched through the ethical route, the initial response to these products has been encouraging and we expect these brands to contribute a combined turnover of about Rs 115-125 crore by FY16.
Also on anvil are products for lip care, hair loss, under-eye gel, face cleansers, moisturizers etc. Derma products are in demand not only for therapeutic requirements but also for lifestyle reasons enabling the skin care industry to evolve to the age of cosmetic and anti-aging treatments. Lack of comprehensive skin related treatments at medical level is one factor which is boosting the business of pharma companies and encouraging them to explore the opportunity of selling over the counter (OTC) products by bringing novel compounds in or by in-licensing international products.
Adds Saxena, “More than 80% of the cosmetics market comprises of low & medium-priced categories in terms of volume.We would be targeting the premium and economy segments through new launches and for the time being have no plans to launch products in the luxury segment.” Elder Pharma is targeting a turnover of Rs 1000 crore by 2017 with its national & International operations contributing equally. This it hopes to achieve through a combination of market positioning, mass geographical expansion, product revamps and launches in different product categories. Along with Dermatology, Elder’s major focus areas in the years to come shall be in the anti infectives, Lifestyle diseases and Neurological segments.
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