British consumer goods major Reckitt Benckiser,
which bought over local start-up Paras Pharmaceuticals for a staggering Rs
3,260 crore last year, is converting its acquired Baddi plant in Himachal
Pradesh into a global hub for manufacturing over-the-counter (OTC)
pharmaceutical products.
The facility, which the company is refurbishing with an investment of a couple of hundred crore rupees, will export Reckitt brands as well as domestic Paras brands such as Moov, D’Cold, Krack, Itch Guard and Dermicool. Popular Reckitt brands in India include Dettol, Mortein, Disprin, Strepsils and Cherry Blossom.
The move is significant as the UK-based company now has Rakesh Kapoor, an Indian who has worked in the country, at the helm as its global CEO.
Currently, much like global peers Procter & Gamble and Coca-Cola, India accounts for less than five per cent of Reckitt’s global sales. The intent, apparent from the Paras acquisition (which many billed as overpriced) and now turning Baddi into a global base, is to leverage the country’s huge domestic market and low-priced manufacturing to work out a competitive edge for the UK-based company. Its big markets in the US and Europe are witnessing anaemic growth. The company is also planning a major foray into ayurvedic product categories, which would help it reach outlets beyond pharmacies. It is also strengthening its foray into the OTC pharmaceuticals space with the launch of Gaviscon, a heartburn and indigestion remedy supported by a new distribution sales force.
With health-conscious middle-class Indians turning more and more towards nature-based remedies like ayurveda, Reckitt’s newfound focus here is no surprise. But, there is more to it.
Ayurvedic variants of its fast moving products like Strepsils would help it get a toehold in the grocery store distribution, a no-go area with the traditional active pharma ingredient-based products that can be hawked only through chemist shops. The company has introduced some alternative distribution channels recently as part of the Paras acquisition. So, for instance, in the top 25 cities — metros and mini metros — a separate distribution channel takes care of the requirements of pharmacies.
Secondly, it has introduced Gaviscon in Tamil Nadu through medical representatives — yet another new channel for promote pharma products. This new channel will be used to introduce more and more OTC pharma products by the company. These include Musinex, Nurofen and Lemsip.
The facility, which the company is refurbishing with an investment of a couple of hundred crore rupees, will export Reckitt brands as well as domestic Paras brands such as Moov, D’Cold, Krack, Itch Guard and Dermicool. Popular Reckitt brands in India include Dettol, Mortein, Disprin, Strepsils and Cherry Blossom.
The move is significant as the UK-based company now has Rakesh Kapoor, an Indian who has worked in the country, at the helm as its global CEO.
Currently, much like global peers Procter & Gamble and Coca-Cola, India accounts for less than five per cent of Reckitt’s global sales. The intent, apparent from the Paras acquisition (which many billed as overpriced) and now turning Baddi into a global base, is to leverage the country’s huge domestic market and low-priced manufacturing to work out a competitive edge for the UK-based company. Its big markets in the US and Europe are witnessing anaemic growth. The company is also planning a major foray into ayurvedic product categories, which would help it reach outlets beyond pharmacies. It is also strengthening its foray into the OTC pharmaceuticals space with the launch of Gaviscon, a heartburn and indigestion remedy supported by a new distribution sales force.
With health-conscious middle-class Indians turning more and more towards nature-based remedies like ayurveda, Reckitt’s newfound focus here is no surprise. But, there is more to it.
Ayurvedic variants of its fast moving products like Strepsils would help it get a toehold in the grocery store distribution, a no-go area with the traditional active pharma ingredient-based products that can be hawked only through chemist shops. The company has introduced some alternative distribution channels recently as part of the Paras acquisition. So, for instance, in the top 25 cities — metros and mini metros — a separate distribution channel takes care of the requirements of pharmacies.
Secondly, it has introduced Gaviscon in Tamil Nadu through medical representatives — yet another new channel for promote pharma products. This new channel will be used to introduce more and more OTC pharma products by the company. These include Musinex, Nurofen and Lemsip.
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