MUMBAI, July 17, 2014 /PRNewswire/ --
Self-owned Brands to Get a Major Boost, Especially in the Fields of Anti-infectives, Lifestyle Diseases, Dermatology and Neurology Segments
With the closure of its Rs 2,000 crore deal with Torrent Pharmaceuticals Ltd., that involved selling off of more than 30 ethical brands including Shelcal, Elder Pharmaceuticals Ltd., now plans to create a super brand out of Eldervit with product extensions and large scale geographical expansion. A much leaner and low-debt company now, Elder Pharma is laying emphasis on expanding the brands remaining with itself post sell-off - the chief being Eldervit, a nutraceutical with a current turnover of approximately Rs 40 crore. Eldervit is a prescription drug which acts as a vitamin and mineral supplement to boost energy.
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Alok Saxena, Managing Director, Elder Pharma, said, "In addition to injection form, we are making Eldervit available in capsules, gel capsules and sachet forms to make it acceptable to all age groups. With its new range and aggressive national expansion, Elder hopes to add a million customers every month and make Eldervit a Rs 100 crore brand by the end of financial year 2016, and a Rs 300 crore brand by FY 2019."
Another product that is being revamped and upgraded is Thrive, a natural nutritional supplement for fighting chronic metabolic disorders, which is likely to generate sales of Rs 10 crore in the current fiscal with anticipated growth of 12-15% every year. Product extensions of Thrive too have been launched in drink, capsules and tablets form.
With a view to capture a larger share of the highly competitive anti-infectives market, Elder is restructuring and expanding its team as also rationalising prices to ramp up volumes. Anti-infectives like Cefixime based Formic and Elfi have been registering a growth of more than 12% every year and are expected to grow at 15% annually from now.
The company's major focus areas in the years to come shall be in the anti-infectives, lifestyle diseases, dermatology and neurological segments. Anti-infectives segment contributes about 10% to the company's turnover and is likely to witness a major price revamp in order to garner a larger share in the domestic market. Elder's International operations are registering steady growth and more than 40% of its revenue is likely to come from its global business.
As a apart of the deal with Torrent, which also involved the transfer of Elder's domestic business employees to Torrent, Elder shall utilise its six plants for contract manufacture of the formulations business sold to Torrent for three years, which will fetch Elder a continuous revenue stream of Rs 70-75 crore every year. Elder group is targeting a turnover of about Rs 1,000 crore from its domestic and international operations by FY 2016.
Media Contact: Mitesh M. Kapadia, [email protected], +91-22-28625131, Director, Sentinel Public Relations Pvt. Ltd.
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