Bayer HealthCare's Animal Health division is set to grow its business in India by expanding its current portfolio and revamping its sales and distribution network. The company will increase its sales force substantially in the coming months by adding more than 100 people and developing a country-wide distribution network in the farm animal segment that covers all key agricultural regions.
In a first step, effective December 2009, Bayer Animal Health will take over the distribution of nine of its Farm Animal Products (FAP). Currently, these products are being sold through a distribution arrangement externally. The newly established FAP team and infrastructure will be merged with the existing CAP (Companion Animal Products) organization. Keeping in mind the company's long term objective to expand its portfolio and leverage its innovation pipeline, Bayer Animal Health plans to introduce further products to the Indian market in 2010 - focussing on relevant market segments such as parasiticides, anti-infectives and nutritionals.
Although the Animal Health business in India is still in the early stages of development, agriculture and its allied industries are very important in the country. To meet the requirement of animal products, farmers realize the benefits of keeping their animals disease free and healthy. This is one reason that the FAP segment is so attractive and an essential focus area for the company. "In 2008, the Indian Animal Health industry posted sales of around ?220 million. The expected annual growth rate is approximately 7 to 8 per cent. What is of significance here is that though the Companion Animals segment is growing faster than the Farm Animal segment, the latter has a share of almost 90 per cent of the market. It is, therefore, essential to concentrate on the FAP business in order to be one of the leading players in the Animal Health market in India," said Rajesh Aggarwal, Head of Bayer's Indian Animal Health operations at a media round table in Mumbai.
He further added,"India is the world's largest milk producer. The country has one of the largest cattle populations and breeds world class buffaloes, goats, cows and even poultry. Keeping this in mind, there is a growing need to prevent losses due to animal diseases and improve productivity in the animal husbandry sector of rural India in order to meet the ever-growing demand for animal products."