Karnataka pharma companies are now targeting the rural markets for sales of their different therapeutic products in a bid to widen their marketing base. Micro Labs and Bal Pharma along with herbal health care major, The Himalaya Drug Company are way ahead in this space.
The reason for companies to strengthen their presence in the rural areas is remarkable improvement in healthcare infrastructure, good roads and transport systems for people to access primary healthcare centres and thereafter the large government and private hospitals. There is also expansion of corporate hospitals into rural areas and smaller cities and towns like HCG into Hubli, Mysore and Shimoga, BGS Global with facility at Mysore, Raichur-based Rajiv Gandhi Memorial Hospital, a joint venture of the Karnataka Government and the Hyderabad's Apollo Hospital group, to name a few.
The expansion in hospitals has also seen a rise in the qualified physicians and specialists for patients from villages to come for treatment. There has also been a rise in the number of pharmacy shops in the rural areas. There is a spurt in the healthcare camps in rural villages which increases sale of prescription drugs. Other factors driving the pharma market in the rural areas are improved literacy levels, disposable incomes and collective decision making prevalent in the villages, said K Vengarai, pharma consultant.
“Going by the current domestic market scene which is bogged down by competition, we need to look further from urban areas and have a dedicated strategy for rural markets. Companies need to identify the kind of drugs which could gain a market share here. Going by the current disease profile, drugs like antibiotics, anti- pyretics, pain killers, skin care, ophthalmic products in addition to blood pressure and diabetes and related complications could be some of the key products of this region,” he added.
Bal Pharma has been working strong on the Indian domestic market focusing urban and rural segments. “Our coverage has been in both areas where the reach by our medical representatives have been substantial. We have not floated any separate team to operate but our products are widely marketed in the rural area through our existing field force. With this, we are covering quiet a good share of the market in the rural belt,” said Shailesh Siroya, managing director, Bal Pharma Limited.
According to G Jairaj, senior vice president, marketing, Micro Labs, rural market unfolds untapped opportunities. The Tier II and II towns have shown an increased improvement in terms of healthcare infrastructure and increasing number of physicians. “Our products to these rural markets include antibiotics and pain killers. There is also a substantial prescription for life style disorder drugs like hypertension and diabetes. These two health disorders were not diagnosed in the past for lack of diagnostic centres and poor awareness,” he said.
Although, Micro Labs has 11 divisions namely Micro Main, Carsyon Micro Vision, Eros, Cardicare, Brown & Burke, Micro Nova, Micro Healthcare, Synapse and Forsee, it has still not launched a dedicated arm to focus on rural markets. Its current sales force handles the smaller towns. “We will look at how the market shapes and the kind of revenues which can be garnered from this segment to have a separate wing for the rural marketing initiatives,” Jairaj added.
The Himalaya Drug Company has a substantial presence in the rural markets for its over the counter products including personal care.
Challenges for pharma companies in the region are distribution, pricing and lack of regular power supply to maintain certain drugs in refrigerators at pharmacy outlets. There is need to comprehend the market dynamics because the future is promising for those who understand the rural market, according to analysts.