Business Daily from THE HINDU group of publications
Tuesday, Nov 06, 2007
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Amrutanjan adding olive oil, home insecticides to portfolio
Will retain focus on pain management product categories.
Plans to import olive oil from Greece, sell it under its brand name.
To import & market US-based Orange Guard’s insecticide brand of same name.
Chennai, Nov. 5 Amrutanjan Ltd, manufacturer of over-the-counter healthcare products, plans to acquire a few brands in the next one year to grow vertically in the pain management category of products.
According to Mr K.N. Srikanta, Vice-President (Business Development), Amrutanjan, the company would spend about Rs 20 crore for these acquisitions and look at brands in India and overseas. But he did not divulge the names of brands being considered.
About 80 per cent of Amrutanjan’s revenues come from sale of its standard yellow balm and the Amrutanjan Strong balm. The company would like to change this by diversifying its product portfolio, Mr Srikanta told Business Line.New line-up
It is planning to launch two new products — olive oil under the brand name ‘Cutis’ and organic home insecticides — in a couple of months.
The company will import olive oil from Greece and sell it under its brand name.
The olive oil market in India, estimated at about Rs 200 crore, is growing at 18 per cent annually. “We would like to take 10 per cent market share in two years time,” Mr Srikanta said.
Besides retail users, olive oil would also be sold to hotels and other bulk users, he said. Amrutanjan has entered into an agreement with the US-based Orange Guard, to import and market its insecticide brand of the same name in India. This water-based organic insecticide is non-toxic and can be sprayed in the vicinity of food and pets, unlike normal pest repellent sprays, Mr Srikanta said. The company’s annual report mentions plans to foray into products such as mosquito repellent cream, back ache gel, hand sanitiser, energy capsules, hot and cold multipurpose gels for arthritis and muscular pains, and anti-stress formulations.
“We will retain focus on the pain management category and have plans to strengthen distribution in northern India,” Mr Srikanta said.Retail chain
The company has tie-ups with about 1,800 distributors and 4.5 lakh retailers, most of them in South, West and East India. It recently launched a joint ache cream promoted by television personality Smriti Irani.
The company will spend about Rs 12 crore on brand building this year, of which Rs 5 crore (equal to last year’s budget) has been already spent. Besides promoting its product portfolio in India, the company will also start local marketing activities in South Asia, Africa and Gulf countries. Amrutanjan’s export revenues are about Rs 2 crore.
Its revenue grew 22.2 per cent to Rs 26.91 for the quarter ending September 2007 as compared to the same quarter last year. Net profit was up 7 per cent at Rs 3.03 crore.
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