FMCG firm Hamdard Laboratories is aiming to clock sales of Rs 1,000 crore in next three years on the back of growth from existing products, new launches and extension of its heritage brands as Rooh Afza and Safi.
According to a PTI report: The over 100-year-old company is also planning to enter new segments such as cosmetics while it is looking to set up greenfield plant for its new products.
Moreover, the company is planning to open ten wellness centres across the country, starting with Delhi.
“In the next three years, we intend to touch Rs 1,000 crore. We are ready for that. It is clear plan to be there by fiscal 2019-20,” Chief Sales and Marketing Officer, Hamdard Laboratories, Mansoor Ali was quoted by PTI as saying.
He was further quoted by PTI as saying: “Primarily, the growth will be fuelled by our existing products and brand extensions.”
The company has a sales turnover of over Rs 600 crore and is growing above 20 per cent from last two years.
Hamdard, as part of its image makeover and to attract the young generation, is planning to extend its brand Rooh Afza into ‘ready-to-drink segment’.
“We are trying to make the brand relevant to the younger generation by changing its image in terms of packaging and brand extension. In Rooh Afza, we will have more cool youth based aspirational product like ready-to-drink,” Ali was quoted by PTI as saying adding that test launch would be in the third quarter.
The company is considering tetra pack and pet bottles for Rooh Afza, he added.
“The idea is to reach the youth, where they hang out and have product for them which is cool and aspirational while retaining heritage,” Ali was quoted by PTI as saying.
Besides, Hamdard is changing packaging of Safi and Roghan Badam to attract youth.
On entry into new segments, Ali was quoted by PTI as saying: “In our future growth, there would be new categories. So, one of the categories will be cosmetics.”
Asked whether cosmetics would be an extension of the Safi brand, he was quoted by PTI as saying, “this is one of the considerations.” The company intends to invest around 15 to 20 per cent on its sales into branding/ marketing and has plans to spend around 20 per cent of that on digital platforms.
On the medicine side, Hamdard has launched product Nature Wonder, which is addressing lifestyle disease as cholesterol, diabetes, liver care, immunity etc in capsule format.
Hamdard, which has three plants, is planning for a green field plant for its new products. It would also invest in setting up more lines at its existing units.
On the proposed investment in the new plant, Ali was quoted by PTI as saying: “As of now it has not reached that stage. It would be funded internally”.
The company is also aiming to increase contribution from its exports to about 10 per cent in next three years from present 4 per cent as it is scouting for markets in countries like the US, Australia, Russia besides the UAE, which is its stronghold.