Elder Pharmaceuticals Ltd - OTC Healthcare - India
Elder Pharmaceuticals Ltd
Strategic Direction
·
Elder Pharmaceuticals Ltd aims
to expand its product portfolio and geographic reach by tying up with foreign
players, which will enable it to introduce new products into India, and tap
into international markets. The company will look to expand its product
portfolio in vitamins and dietary supplements through joint ventures and
licensing agreements. R&D will also be a focus area for Elder
Pharmaceuticals Ltd, with the company expected to scale up the number of
in-house scientists significantly.
Key Facts
|
Full name
of company:
|
Elder
Pharmaceuticals Ltd
|
|
Address:
|
ElderHouse,
C-9 Dalia Industrial Estate, Off New Link Road, Andheri West, Mumbai 400058,
India
|
|
Tel:
|
+91 22 2673
0058
|
|
Fax:
|
+91 22 2673
0051
|
|
www:
|
www.elderindia.com
|
|
Activities:
|
OTC
healthcare, bulk drugs, medical devices
|
Source: Euromonitor International from
company reports
|
Year end
March
|
2005
|
2006
|
2007
|
|
Net sales
(Rs billion)
|
3.8
|
4.3
|
5.3
|
|
Net profit
(Rs million)
|
377.0
|
487.5
|
646.7
|
Source: Company research
Company Background
·
Incorporated in 1987, Elder
Pharmaceuticals Ltd started out manufacturing bulk drugs. The company is
present in vitamins and dietary supplements, analgesics, and cough, cold and
allergy remedies, with brands such as Shelcal, Tantum Gel and Tiger Balm. The
company’s product profile is heavily slanted towards lifestyle OTC healthcare
with long-term usage.
·
Elder’s Pharmaceuticals Ltd’s
business is divided into five main divisions. The Pharmaceuticals Division
deals with prescription products, such as Shelcal and Cal Plus. The Consumer
Products Division deals with OTC healthcare brands, such as Tiger Balm and
Tantum Gel. The Active Pharmaceutical Ingredients Division deals with bulk
drugs, and the Generics Division with generics. The Hartmann Division is a
joint venture between Elder and Paul Hartmann AG of Germany, for the sale of
wound care treatments and incontinence products. The company also imports sutures,
stents and medical devices, such as pacemakers and oxygen concentrators.
·
Elder has tie-ups and joint
ventures with leading collaborators from companies in countries such as the US,
Japan, Italy, Germany and the UK. The company has agreements with 27
multinational companies, from which it imports products, leveraging its strong
sales force and distribution network.
Production
·
Elder Pharmaceuticals Ltd has
three pharmaceuticals plants in the cities of Nerul, Pawnie and Patalganga, all
in the state of Maharashtra in West India. The Patalganga plant was
commissioned in 2003 for the production of bulk drugs for India and globally.
All plants taken together, the company has a capacity to manufacture 1,255
tonnes of ointments, 1,056 kilo litres of liquids, and 1.8 billion capsules and
tablets per year. The multipurpose plant in Patalganga is US Food and Drug
Administration compliant.
·
In 2007, the company opened up
new production facilities in the states of Uttaranchal and Himachal Pradesh in
North India, at a total cost of Rs800 million. These states have attractive
packages in the form of central excise and income tax benefits.
·
The company exports products
such as Eldervit and Shelcal to countries in Africa and Southeast Asia, with
Nigeria being one of its major export destinations. For the year ended 31 March
2008, Elder’s exports were worth Rs233 million.
Competitive Positioning
·
Elder Pharmaceuticals Ltd is
one of the smaller OTC healthcare companies in India in terms of value sales.
In 2008, the company was ranked 25th in terms of value sales, with a value
share approaching 1%. In calcium supplements, the company’s Shelcal brand
accounted for a 28% value share.
·
In the OTC healthcare market,
the company’s product portfolio is rather limited. However, Elder
Pharmaceuticals Ltd is better known for licensing, with the company gaining
exclusive rights for marketing foreign brands in India. Trade sources estimate
that the bulk of the company’s revenues come from sales of foreign brands.
·
In topical analgesics, Tiger
Balm holds a value share of just under 3%, and Tantum Gel holds a 1% value
share. The shares of both these brands were static over the review period, due
to increased competition from Emami Ltd and Amrutanjan Health Care Ltd.
|
Product
type
|
Value share
|
Rank
|
|
Topical
analgesics
|
3.0%
|
5
|
|
Calcium
supplements
|
28.1%
|
2
|
Source: Trade press (The Economic Times,
Business Standard, The Hindu Business Line), company research, trade
interviews, Euromonitor International estimates
