Emami plans more OTC products

Emami plans more OTC products

Author | exchange4media News Service | Thursday, Feb 24,2005 7:37 AM

Emami plans more OTC products

Emami Ltd, positioning itself in the high margins healthcare product market, is planning to introduce a range of over-the-counter products on the ayurveda platform.

The company, which already has a strong presence in OTC healthcare products, plans to launch a baby massage oil, cough and cold products, laxatives, digestives, memory booster and red toothpowder over the next fiscal, Mr Mohan Goenka, Director, Emami Ltd said.

The company is planning to enter the capital market with issue primarily to comply with the Securities and Exchange Board of India (SEBI) rules on promoter holding. At present, the promoters holding in Emami is 97 per cent. Post issue the holding will drop to 89 per cent.

The company plans to issue 50 lakh shares or eight per cent through a book-building route in the early part of March 2005.

The money from the issue will be used for potential acquisitions both in the domestic as well as the overseas markets, Mr Naresh Bhansali, Senior Vice- President (Finance), said.

Six of its power brands in the healthcare portfolio contribute 90 per cent to the turnover. These include Navratna (a Rs 100-crore brand), Boroplus (a Rs 80-crore brand), Sona Chandi Chyavanprash, Fast Relief, Mentho Plus balm and Boroplus Prickly Heat powder.

"Our strength has been innovation in packaging which has helped us to move aggressively in the rural market. Besides, we have only looked at high margin products," Mr Goenka said.

Exports is another area of growth for Emami. The company has two subsidiaries in the UK and Bangladesh to promote Ayucare, ayurvedic healthcare products and Emma, low-end cosmetic products in African markets, West Asia and South Asian markets.

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