Pirmal Enterprises’ Consumer Products Department announces its acquisition of five healthcare brands from Merck Sharp & Dohme for around $14 million as a means to expand its OTC business.
Acquisition of Pirmal Enterprises includes the brands Naturolax, Lactobacil, Lynoral, Pregcolor and Farizym which the company plans to bring into the OTC business in the gastro-intestinal segment. “The gastro intestinal segment is valued at Rs 2,000 crore and is growing at 15-16%. We have an antacid brand Polycrol – which is the no. 1 brand in eastern India and with these strong additions, our basket of offerings in the gastro intestinal market will become larger,” said Kedar Rajadnye, chief operating officer, consumer products division of Piramal Enterprises.
This is the Piramal’s second acquisition in the OTC segment and it aims to be one among the top three in the space by 2020. A month ago, the company acquired 100% stake in Little’s India, oldest baby care products company of India.
“The consumer products market has grown rapidly at 24% over the past six years and is now ranked 7th among all OTC companies in India. In line with our strategy, we aim to be a top 3 player in the OTC market by 2020 and the addition of this portfolio of brands will help us move swiftly towards that objective,” said Nandini Piramal, executive director, Piramal Enterprises.
Kedar Rajadnya, COO of consumer products division of Piramal Enterprises said, “The GI market which addresses the constipation, diarrhoea and appetite stimulant categories is a Rs.2,000 crore market growing at 15-16%. We expect these brands to leverage the strong sales and distribution capability and help us improve our profitability margins as there will be higher fixed cost absorption.”
The Piramal Enterprises’ consumer product business serves to more than 1lakh plus populations in town in India and working to expand the distribution network to more than 20K population towns to make its one of the largest distribution footprints in Indian OTC space.