Amrutanjan Health Care Ltd
Financial and Strategic Analysis on Amrutanjan Health Care Ltd-Company Report Help
Strategic Direction
·
Amrutanjan Health Care Ltd
plans to convert its existing research facility into a fully-fledged research
centre, and is also planning to increase its presence in allopathic remedies.
Another focus area, as part of the company’s diversification process, will be
biotechnology. Amrutanjan’s research and development division is aiming to
develop pure phytochemicals, herbal extracts and medicinally effective and
economic polyherbal and monoherbal formulations. These are expected to have a
strong focus on cosmeceuticals within cosmetics and toiletries, vitamins and
dietary supplements and nutraceuticals. To reduce its dependency on topical
analgesics, the company has launched a slew of products, such as Orange Guard,
an organic pesticide, and Cutis Olive Oil.
Key Facts
Full name of company:
|
Amrutanjan Healthcare Ltd
|
Address:
|
42-45 Luz Church Road, Mylapore,
Chennai 600004, India
|
Tel:
|
91 44 299 4164
|
Fax:
|
91 44 299 4585
|
www:
|
www.amrutanjan.com
|
Activities:
|
OTC healthcare, finance, printing,
IT, food and medical care
|
Source: Euromonitor
International from company reports
Year end March
|
2005
|
2006
|
2007
|
Net sales (Rs million)
|
759.2
|
802.6
|
827.0
|
Net profit (Rs million)
|
60.3
|
80.5
|
92.7
|
Source: Company
research
Company Background
·
Amrutanjan Health Care Ltd
began as a patent medicine business in 1893, in Mumbai. It became a Public
Limited company in 1936, under the name Amrutanjan Ltd, offering a wide range
of OTC healthcare products.
·
The company offers a broad
range of ayurvedic and allopathic healthcare. The company also focuses on blending
the two traditions and is currently developing the anti-cancer drug
Vinblastine/Vincristine, based on herbal extracts from the Vinca Rosa plant.
·
The company has a wide and
well-established distribution network. This covers an estimated 350,000 retailers
across India. The well-known brands of the company include Amrutanjan Pain Balm
and Dragon Liquid Balm, both of which are topical analgesics.
·
The company’s products are
registered as per norms prescribed by the US Food and Drug Administration
(FDA).
·
Amrutanjan is also present in
information technology, finance and printing.
Production
·
The company has two healthcare
manufacturing units, one at Chennai and the other at Hyderabad. These are
managed by a highly qualified team of scientists and other professionals. The
company also has a research and development centre, with a library and
laboratory.
·
Amrutanjan Health Care Ltd
exports to the Middle East, West Africa, Sri Lanka, the Maldives, Mauritius,
New Zealand, Australia, the UK and Malaysia. The company is currently also
planning to extend its export reach to the US.
Location
|
Brand
|
Annual production
|
Chennai, Hyderabad
|
Amrutanjan Pain Balm
|
525 tonnes
|
Chennai, Hyderabad
|
Amrutanjan Inhalers
|
56 tonnes
|
Source: Company
research
Competitive Positioning
·
Amrutanjan Health Care is
ranked 18th in the overall OTC healthcare market, with a value share of 2% in
2008. The company is ranked third in topical analgesics, with a value share of
11%, thanks to its strong brands like Amrutanjan Pain Balm and Dragon Liquid
Balm. In inhalant decongestants, the company has a share of 8%.
·
While the company’s focus has
traditionally been narrow, with a limited product range, it has taken a step
away from this by launching products that are novel to the company. For
instance, the company has launched Orange Guard, an organic pesticide, Cutis
Olive Oil, and Hot & Cold Multipurpose Gel Pack for arthritis and muscular
pains, all of which were introduced in 2008. This was done in order to reduce
the company’s dependence on topical analgesics.
·
The company benefits from its
brands being available in mass-market distribution channels. In addition to
chemists/pharmacies and drugstores/parapharmacies, its products are available
in a wide range of grocery outlets, from supermarkets/hypermarkets to
independent food stores.
Product type
|
Value share
|
Rank
|
Topical analgesics
|
11.4%
|
3
|
Inhalant decongestants
|
8.2%
|
2
|
Source: Trade
press (The Economic Times, Business Standard, The Hindu Business Line), company
research, trade interviews, Euromonitor International estimates
