We use relevant competitor prices as benchmarks

While many ayurvedic companies are finding it difficult to export their products, Charak Pharma has emerged as one of the largest ayurvedic product exporters. Dr Ram Shroff, Director, Charak Pharma, reveals more about Charak's export policy to Sachin Jagdale

What are the export markets for your products?

Currently, there is a growing trend for people in many countries to adopt natural remedies for preventing and curing common and chronic healthcare problem. Due to this trend, all major countries are becoming a good market for herbal products. This trend is further proved with many local companies starting off production and marketing of herbal products in countries outside India.

Do you make any country specific changes in the products that you export? If yes, please elaborate about the changes.

The packaging needs to be changed as per the consumer preferences and language requirements of a particular country. Some countries prefer bilingual packs, having one local language combined with English. The pack sizes and styles also need customisation according to the country.

What are the hurdles in exporting ayurvedic products?

Consumers and doctors in many countries are not fully aware of ayurveda, and hence, they need to be explained the benefit of using our products. Due to this, business volumes take time to develop initially. Unique analytical parameters and detailed scientific dossiers as per modern medicine standards are now being required for registration in many countries, these regulatory requirements are difficult to provide for every product. Many countries have not defined specific local laws regarding registration of herbal products. Lastly, brand-building activities are becoming more expensive and risky in all major markets, which makes it difficult to aggressively pursue sales volumes.

Do you find exporting ayurvedic products to allopathic dominated markets challenging?

Allopathic medicines are first choice of treatment in most countries. Herbal/ayurvedic medicine is always treated as an alternative. Now consumers in many countries want to try out more herbal products for common and chronic problems and this is an encouraging trend for ayurvedic exporters.

Being one of the major ayurvedic medicine exporters, what is your success mantra?

We have invested considerable time, effort and money to make our product dossiers and manufacturing facilities compliant to international norms. In addition, we have supported our distributors in many countries with a marketing budget, and hence, have built up awareness for our products.

How do you set the prices of your products for domestic and international markets?

Basic approach of setting prices remains same for domestic and international markets. We use relevant competitor prices as benchmarks and also consider overall purchasing power and marketing expenses in a country before deciding the price. Sometimes you have to consider comparisons with similar neighbouring countries to decide the price in a particular country.

What initiatives have you taken internationally to make foreign importers aware of the usefulness of ayurvedic products?

We prepare scientific monographs which gives complete details about a product. We also conduct many clinical trials to prove efficacy and safety. The local distributors utilise these inputs to improve awareness about the products in their local markets.

What policy changes would you suggest the government will favour ayurvedic medicines exporters?

We request the Indian government to use its position of strength to create better recognition of ayurveda by regulatory authorities of foreign countries.

Are there any specific regulations for nutraceutical products that are different from those on? As most nutra products are OTC, how does this benefit manufacturers?

The regulations for nutraceuticals are generally less stringent compared to pharmaceuticals. However, the cost of advertising required to build up a good nutraceutical brand is very high. Hence the relative ease of registering a nutraceutical product is offset with potentially high marketing costs and risks, which are required to be borne to build strong business volumes.

sachin.jagdale@expressindia.com