INDIA BUSINESS WORLD - APRIL - MAY 2007
The Month that was ...

HIMALAYA SETS UP THREE UNITS OF ITS PHARMA BUSINESS

HERBAL healthcare major Himalaya Drug Company has done a complete restructuring of its pharmaceutical division, setting up three strategic business units Zenith, Zandra and Zindel. The move is in view of the company's growing base as well as product portfolio, and changing marketing needs.

The three divisions, along with dealing with different types of products, will also look at portfolio segmentation based on doctor specialty. Himalaya has under its umbrella leading pharma brands like Liv 52, Bonnisan, Pilex, Cystone and Septilin. Liv 52 is now the fifth largest pharma brand in terms of value.

Zenith, with a team of 450 representatives, will focus on general practitioners, surgeons, paediatricians and ENT specialists. Zandra would lay emphasis on women's healthcare with up to nine brands in this segment and target gynaecologists, physicians, surgeons, orthopedists and dermatologists. Zindel would have lifestyle products, pure herbs and baby care products, targeted mainly at general practitioners and paediatricians.

"Products like the pure herbs (neem, tulasi and ashvagandha), which are now available off the shelves, will be taken to the doctors. These will move out of the advertised range of products and go directly to the key opinion makers," said Himalaya COO (pharmaceutical division) Philipe Haydon.

With these new divisions in place, the company has also ramped up its head count from 600 to 1,000 in the last couple of months. The company intends to double its doctor outreach to three lakh doctors, Mr. Haydon said.

The restructuring of its pharma business is currently restricted to Himalaya's India business. With the new structure, the company is looking at an annual growth of 30% in Zenith and Zandra, and 40% growth in Zindel. A similar structure may later be followed in the Russian market.

For Himalaya, the pharma division is the largest segment in terms of volume as well as value, accounting for up to 60% of the company's turnover. By 2010, the company expects to have more product lines and more segments. It currently has 17 new molecules in the pipeline, Mr. Haydon said.