Heading towards the emerging over-the-counter (OTC) market orientation in pharma sector, the Rs 624 Alembic Limited is going to launch its OTC division, a strategic business unit (SBU) by the end of October, 2002. The company, which has recently opened a centralized marketing set up in Mumbai to operate the SBUs, will shift all of its established cough and cold brands and nutraceuticals into this division for marketing.
Confirming this to Pharmabiz.com, Atul Barman, vice president (formulations), Alembic, said that the entire set up including the appointment of a business head for this SBU would be ready by the end of this month. The company has already contracted O&M for the product promotional activities as it, which is anticipated on an aggressive for the OTC segment.
Barman added that the SBU for OTC has a target of Rs 25 to 35 crore in the first year. Since the concept of pushing OTC products at a broader market perspective is still to pick up in the country, initially it is going to involve more investment on the promotion and to create public awareness about the products. "However, this strategy is going to be major trend in the country as it has happened in the developed nations," Barman said.
But at the same time, it is not wise to shift the complete range of OTC products into this route because the brand reputation, what the product has created over a period of time is very important for the company to push that product into the broader market, he said. "Initially we will start with our established brands like Glycodin, Zeet and Ephodrex range in the cold and cough segment and Megatrex, Isovon, Calcy etc in the nutraceutical segment. Gradually, we will go on adding new products and also planning to acquire known brands from the companies for the division," Barman informed.
The company, as part of the fresh restructuring strategy in the market front, has already decided streamline market operations and enhancing the research focus with a topline business target. With a 20 per cent annual growth in mind, the company for the first time is streamlining its marketing operations into five strategic business units (SBUs). These SBUs include Pharma, Speciality products, OTC, Franchise and Generic with exclusive field and managerial attention. Out of these, the SBU for speciality products has already been launched recently.
The speciality SBU, which has 125 medical representatives and 40 dedicated sales support and admin staff with additional first line managers, has targeted a sales turn over of Rs 25 crore in the first year. The other proposed business units like Pharma, Franchise and Generic would carry a business target of Rs 350 crore, Rs 40 crore and Rs 60 crore respectively, Barman said.