Himalaya Drug eyes chunk of export mart

As the trend towards alternative systems of medicine gathers pace, ayurveda is seen as a big opportunity by drug makers. Leading the pack in this segment is the Rs 300 crore (Rs billion) privately held Himalaya Drug Company. The company exports to 55 countries and is now out to secure India's rightful place in the global economy. Philipe Haydon, business head of the pharmaceutical division, spoke to Rumi Dutta on the company's strategy.

The Himalaya Drug Company originally started out as a pharmaceutical firm but is now also into personal care products and cosmetics. Does this represent a change in focus? Is it now going to be more of an FMCG company?

It is not true that we are acquiring a FMCG look. We are a focused pharmaceuticals company. Our vision is to have a presence across all the categories of healthcare with a particular focus on products based on the idea of prevention and not cure. This is precisely the reason why we have launched our new product Pure Hands, a herbal health sanitiser under our pharma division. We will be marketing the product through around 120,000 doctors across India. The product would be introduced more under the prescriptive category and less as an over-the-counter product. This is a unique strategy to educate the masses that the use of a hand sanitiser is a doctor's advice for every individual.

What are your investment plans for the current year?

We are setting up a manufacturing-cum-research and development unit at Bangalore. The investment, which is envisaged around Rs 165 crore (Rs 1.65 billion), will be funded through internal accruals and debt. The debt component is yet to be decided upon.

Will you tap the market for funding the expansion?

We have no plans to go public.

What is the export turnover and what is the growth potential through this route?

Our exports stand at Rs 30 crore (Rs 300 million). We see a huge growth potential and are moving ahead to tap it in a big way.

What is your outlook for the next six months?

We hope to achieve a 25 per cent growth in the current financial year. A slew of new products will be launched in the coming months. The pharma division, which accounts for Rs 180 crore (Rs 1.8 billion) of the total turnover of around Rs 300 crore (Rs 3 billion), will be the growth driver. The other divisions such as personal care, consumer health and animal health are also poised for a healthy growth.

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