Wednesday, 26 March 2014

Mankind Pharma: Do products revolving around sex help the Rs 3000 cr company?






 IT sounds like a newspaper "sexpert". "Use Adiction deodorant before sex," he recommends, "and if you have erectile dysfunction, then pop a Manforce Tablet. If at all you suffer from premature ejaculation, then Manforce Gel is for you." The prescription continues: "If you don't want babies, use Manforce Condoms. After unprotected sex, you can opt for Unwanted 72. And if you want to know whether your partner has conceived, Preganews is there." 

For many Indians, sex talk is taboo, only spoken of in permutations and combinations of macho swagger, secretive leering and copious nervous giggling. But this passionate act is translating into pleasure of an entirely different sort for this Delhi-based pharma company.

"Sex sells," says Juneja. He'd know since his Rs 3,000-crore company has built a marketing model around sex with its blockbuster OTC (Over The Counter) products, available without prescription from a chemist. These incl .. 

"It has never been an OTC story, it's a pharma story," he says. But one with a fairytale twist. Mankind started in 1995 and closed its first financial year with a modest Rs 3.8 crore. It took a decade to clock Rs 350 crore. But in just six years the company posted a turnover of Rs 2,000 crore in 2011-12. And now it is an over Rs 3,000-crore firm that aims to cross the Rs 5,000-crore mark by 2017!
The company covers around 3 lakh doctors across the country. While it had just one manufacturing plant in 1995, the number has shot up to 20 where over 85% of its products are manufactured.

Obviously, such growth is driven by more than just OTC. The company has been sitting firmly on the No 1 slot in terms of prescriptions per doctor per month over the last decade. Analysts say it is marketing that's taken the company far. This began with low-cost anti-infectives and now continues with with a sharp focus on the chronic disease segment and OTC products.




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