Herbal health and personal care firm Himalaya Drug Company is planning to ramp up sales of its wellness and baby care products as it targets US$ 1 billion turnover by 2020.
According to a PTI report: The Bengaluru-based firm has six business verticals spanning therapeutics, personal care, wellness, baby care, animal health and nutrition.
“Our newer portfolios like wellness and baby care have shown tremendous growth in recent years and we will push ahead aggressively in these categories,” CEO, Himalaya, Philipe Haydon was quoted by PTI as saying.
The baby care sector is expected to grow at 17 per cent CAGR till 2019 and is projected to be a Rs 1,800 crore market.
As per industry reports, the baby care industry in 2015 recorded the third highest growth rate of 53 per cent after the apparel and electronics segments. The wellness market in India is estimated to be worth Rs 14,000 crore, dominated by two categories — cough and cold medicines and health drinks.
“Baby care is a largely under-penetrated market in India wherein everybody has an opportunity to grow…We see an increasing consumer demand for herbal and gentle baby care products and we are working towards meeting the demand,” Haydon was quoted by PTI as saying.
“We have witnessed tremendous growth in this sector and we intend to further build our presence in this category. We leverage our existing network of paediatricians, nurses and pharmacies to promote the baby care range, besides being present in supermarkets and retail outlets,” he was quoted by PTI as saying.
Himalaya entered the baby care category in 2007, and it contributes 15 per cent of the company’s total turnover of Rs 2,000 crore.
For the wellness category, the company is expecting a revenue of Rs 100 crore this fiscal.
“We launched our wellness category last year as consumers are increasingly concerned about preventive care. With wellness, we are defining this segment and building this category with the launch of special ‘Wellness Zones’ in modern retail outlets,” he was quoted by PTI as saying.
The company is eyeing a 20 per cent growth in its topline this year. At present, the personal care category contributes 42 per cent to its revenues, followed by pharmaceuticals (33 per cent), baby care (15 per cent) and animal health and wellness (5 per cent each).
The personal care industry is estimated to be worth Rs 60,000 crore. Himalaya has a market share of 23.8 per cent in the Rs 1,800 crore face wash category.
The company, which is present in 90 countries, is planning to enter new categories across verticals.
“Currently we have plans to enter new categories with a pipeline of about 70 products across verticals,” he was further quoted by PTI as saying.
It is also planning to bulk up its distribution.
“Currently, we are focusing on strengthening our distribution presence offline and have added workforce of 700 people. To offer higher access to consumers, we have amplified our presence on e-commerce platforms,” he was quoted by PTI as saying.
Himalaya has 179 exclusive stores across the country and aims to reach the 200 mark by 2020.