The consumer products division of Piramal Enterprises Ltd (PEL) has acquired five trademark rights for India from Organon India Pvt Ltd (OIPL) and MSD BV for Rs 92 crore. The acquisition includes mainly the brands Naturolax, Lactobacil and Farizym, which PEL intends to continue in the gastro-intestinal (GI) segment through the over-the-counter (OTC) route. The Indian OTC market is approximately Rs 15,000 crore in size growing at 13-14 percent.
Nandini Piramal, Executive Director, Piramal Enterprises, commented, “Our aim is to be a significant player in all the businesses we have retained in the healthcare segment of Piramal Enterprises Limited. We are one of the largest custom manufacturing companies and have manufacturing bases in North America, European Union and Asia. Our critical care business is the third largest player in the global inhalation anaesthesia market. The third business in Healthcare segment is the consumer product business and we intend to be a significant player here too.”
The consumer products business, which was ranked 40th among all OTC players in India when it was started as an independent player in 2009, has grown rapidly at 24 percent over the past 6 years and is now ranked 7th among all OTC companies in India, claims the company.
In line with PEL’s strategy, the division is aiming to be among the top 3 players in the OTC market by 2020 and the addition of this portfolio of brands is expected to help the business to move swiftly towards that objective. Recently, consumer product division had also acquired the babycare brand Little’s, which provides well-being solutions for kids up to the age of 4 years.
“Most of the brands in our portfolio viz Saridon, Ipill, Lacto Calamine, Tetmosol and Caladryl have a strong consumer franchise and are all either number one or two players in its respective categories. We currently have 6 of our brands in the top 100 OTC brands of India and this list will further increase with the recent addition of Little’s and these brands from Organon India and MSD BV,” said Nandini Piramal.
Kedar Rajadnye COO - consumer products division, PEL, added, “Today’s consumers lead a fast and hectic lifestyle. This lifestyle coupled with stress and infrequent food habits tends to take a toll on their digestive wellbeing. The gastro-intestinal market which addresses the constipation, diarrhoea and appetite stimulant categories is a Rs 2000 crore market growing at 15-16 percent. We have an antacid brand Polycrol - which is the number one brand in Eastern India and with these strong additions, our basket of offerings in the gastro-intestinal market will become larger.”