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'Quality should be as good as the best'

Mankind Pharma has some special plans. It has forayed into OTC business with its division Special Mankind. Sushmi Dey explores the move, in conversation with R C Juneja, Managing Director.

Why have your forayed into OTC?

OTC is an emerging segment in India. Having established ourselves in the ethical market with strong growth, diversification into the OTC segment was a natural extension for Mankind Pharma. Infact, we are already present in the segment, with the launch of our new marketing division called Special Mankind we will leverage our vertical presence to develop a strong franchise for our OTC brands.

Special Mankind was launched on January 14, 2007 in Uttar Pradesh. The company has a strong hold in UP's market. However, we have plans to target the whole of Northern India within a year's time. Our expansion programme aims to target Punjab, Haryana, Uttaranchal and J&K. Soon, we would also like to cover the central part of the country and then move on to South. We have invested Rs 20 crore this year and plan to invest another Rs 10 crore every year. The projected turnover for Special Mankind would be Rs 40 crore for 2007-08.

How do you see the growth of OTC market in India?

The domestic OTC market is estimated to be Rs 5,500 crores and accounts for Rs 20,000 crore if cosmeceuticals and nutraceuticals are included. Dietary supplements, cough and cold, digestive remedies, personal hygiene and contraceptives are the key therapeutic areas. However, cough and cold, digestive remedies and personal hygiene are also considered key areas under OTC healthcare. The income level of masses is increasing and hence the attraction towards OTC products. Mall culture is encouraging this segment of the industry. Further, the OTC healthcare segment is expected to grow by 30 percent.

Unlike prescription drugs, for OTC one has to convince the consumers directly and this is considered difficult.

How do you plan to do this?

Our products are related to human hygiene and healthcare. Here, awareness is the key word. Our marketing department will work in co-ordination with our wholesalers, distributors and retailers to spread awareness amongst masses. This awareness will not just talk about our products but mainly about the need for such products. Retailers are in direct contact with people and therefore it is important to have good relations with the retailers and make them part of our business. We already have our distributional infrastructure in place which consists of good sales field force. We will leverage upon it to spread awareness and reach availability of our products in the respective market.

We are starting our advertisements in print media which is cost-effective. Our target consumers are mainly women since our initial product range is women oriented. It is easier to reach them through women's magazines. Area specific launch is also another reason for opting for print media. However, these strategies are expected to grow further in the near future.

What creates good OTC business?

Awareness, availability and quality are the three most important aspects of OTC business. First, there should be enough awareness about your product and its need. If people do not know the need and use of the product, they will never look for it in the market. Second is availability. To convince a consumer to buy a product is possible only if the product is available in the market. Regular availability is very important in order to maintain consistency. Last but not the least, quality should be as good as the best. No matter how much you promote your product among the masses, if you fail to provide them with a good quality product they will never ever buy it again.

What is the product portfolio of Special Mankind?

Our initial product range comprises of condoms, emergency contraceptives and home pregnancy kit. We started with a test launch in Uttar Pradesh market and within three month have clocked sales of Rs 1 crore. The results confirm that there is a tremendous under-served market for these products. We are planning to expand our product portfolio by introducing sanitary napkins, medicated dressings, bandages, diapers, medicated shampoo, medicated toothpaste and low calorie sweeteners. Launch and marketing of these products will start in another three to four months.

Are you also planning to manufacture these products at Mankind?

As of now we are outsourcing the products from a third party. However, we have established a manufacturing plant at Ponta Sahib, Himachal Pradesh for manufacturing injectibles. We might also start manufacturing OTC in another six months.

sushmi.dey@expressindia.com