Elder Health Care, maker of skin care products and consumer goods, plans to increase its product portfolio. The company is eyeing six new product launches in 2010-11.
The company, a part of the Rs 800-crore Elder group, plans to invest around Rs 120 crore over the next three years in brand launches, marketing and promotions and widening the distribution channels.
“During the current fiscal year, Elder Healthcare plans to launch around 5-6 own, self-researched products with therapeutic benefits in key focus areas like skin care, oral care, personal grooming, cough and cold,” said Anuuj Saxena, managing director, Elder Health Care Limited (EHCL).
The company is redesigning its expansion strategy to reach untapped areas and is targeting 8 lakh outlets by June 2011 from the current of 3 lakh. Unlike its urban-centric strategies in the past, the major focus now will be on villages and smaller towns that are showing great potential and higher growth.
“In order to ensure that our own and in-licensed products penetrate larger demographic areas, we are re-designing and expanding our distribution network by adding another 5 lakh outlets in small towns and rural areas,” Saxena said. The company has earmarked Rs 22 crore for expansion purposes.
EHCL has a mix of own and in-licensed products in segments like pain management, fairness creams (both men and women), oral care, lip care, burn categories, personal grooming and Skin Care.
The company has recently upgraded its three manufacturing facilities at Rabale, Patalganaga and Poanta Sahib to enable them to manufacture high-quality products.
EHCL is targeting a turnover of Rs 300 crore during 2012-13 from the current Rs 80 crore.