Key Business Strategies
Our business objective is to grow our revenues and profits through increased and diverse product portfolio and thereby increasing our market presence. We intend to do so by offering our products in regulated and semi-regulated markets, through strategic business arrangements as well as by maintaining our focus on our domestic business. Our business strategy focuses on the following elements:
1. Establish our presence in the regulated markets and expand our offerings in the semi-regulated markets.
We presently operate from four (4) manufacturing facilities located in Nagpur in the State of Maharashtra, India which cater to the semi-regulated markets. Further, our fifth (5th) facility, an integrated herbal extracts and formulation unit, is currently under site development at Kalmeshwar, Nagpur and is expected to be operational by F.Y. 2012. To establish our presence in the regulated markets, we intend to set up a USFDA compliant facility at M.I.D.C, Umred, Nagpur which shall enable us to sell and market our products in regulated markets, subject to receipt of necessary approvals. We believe that demand for our FDF products currently sold in the semi-regulated markets will continue to grow in line with changes in healthcare standards, insurance coverage and government spending on healthcare and our expansion plans will enable us to create presence in the regulated markets. Increased sales in regulated markets would allow us to achieve economies of scale. We plan to expand our presence in these markets by increasing our portfolio of product registrations & filings and by increasing our customer and distributor base through marketing arrangements with local pharmaceutical companies in the regulated markets.
2. Creating technology platforms, novel drug dosage forms and NDDS.
Our products span multiple technology platforms which are made available across various delivery systems, such as controlled release formulations, taste masking, trans-dermal and oral-dissolve, Pre-Formulated Ingredients (PFI), Contrast Media & Diagnostics and speciality extracts. Our Company’s R&D capabilities in the NDDS space have been established by applying for patenting of the ‘Pellets of Herbal Extracts’ and the ‘Process of preparing the Pellets’. We are presently carrying out R&D activities to create new dosage forms and NDDS in both the FDF and herbal space. We believe creation of novel drug dosage forms and systems to be one of our major growth drivers in the near future. We intend to focus on the growing markets worldwide for NDDS due to changing life styles and rise in the population of the aged.
3. Backward integration in herbal manufacturing.
Backward integration by preservation and processing of natural products is important to the growth of our herbal medicinal and herbal beauty care businesses. Natural products include plants and their parts, herbal extracts, medicinal products, cosmetic, dietary formulation, nutraceuticals, cosmoceuticals etc. which need to be scientifically preserved and processed using ultra modern machinery and equipment. This will ensure the right quality of the source material for our products and also timely supply of the required quantity. We have already tied-up with certain academic institutions which amongst other include Dr. D.Y. Patil College of Ayurved and Research Institute & Hospital, Ashvin Rural Ayurved Mahavidyalaya and Hospital, Laxminarayan Institute of Technology and Nagarjuna Medicinal Plants Garden to undertake clinical research or finance research on plants and other natural resources for potential use as medicines. Herbal products have known to be safe and almost devoid of side-effects, but their development into viable remedies need elaborate efforts and research. Our Company intends to increase its R&D efforts in the herbal medicinal and herbal beauty care segments so as to have new and innovative products to meet customer needs and demands.
4. Expanding our distribution network, sales and marketing efforts.
We intend to make our products available pan-India and to achieve this objective we intend to increase our domestic network of distributors, super stockist, stockists and chemists. To augment our efforts in the distribution of our products, we further intend to deploy additional field force consisting of marketing representatives who shall meet doctors to inform and educate them about our products. We further intend to market and distribute our products in the domestic markets by making them available to target consumers with various distribution channels and further our marketing efforts by deploying a field force to support our distribution efforts. In order to achieve this objective we intend to establish and expand our sales, marketing and distribution network from the existing team of personnel (including medical representative and beauty advisors) from 227 to over 500 by December 2011. We also intend to partner with local marketing companies with the desired know-how and launch our products with technology inputs and regulatory support provided by us and marketing know-how and resources provided by the local company. We also believe it is essential for our Company to focus on increasing the brand visibility for our existing and new FDFs as well as increasing the sales, marketing and distribution network to successfully commercialize and compete with other brands to increase the market share of our products. This will enhance our market recognition in terms of quality and reputation of its products in the medical community.