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KKR-backed JB Chemicals, the owner of marquee brands Rantac and Metrogyl, is trying to make a mark in the lozenges category in a bid to increase its share in the domestic market to 60 per cent of turnover.
Besides, the Mumbai-headquartered company is trying to expand the Sanzyme portfolio of probiotic products.
At present, JB Chemicals is only contract manufacturing for multinational clients such as J&J, P&G, etc. The company, which launched its own lozenges this year, now plan to enter new areas like sleep disorders, sexual wellness, motion sickness, and immunity apart, from the conventional areas like cough, sore throat, etc.
“We have two production lines for lozenges at Daman, and have a capacity to make 1.5 billion units a year. We have already hit a production of 850 million a year and would soon activate the second production line,” Nikhil Chopra, chief executive officer and whole-time director of JB Chemicals, told Business Standard.
“This year, we target to touch a 1 billion units of production,” Chopra said, adding that the company has already launched lozenges for cough and sore throat in the domestic market under their own brand.
ICICI Securities analysts noted that JB Chemicals aspires to increase domestic contribution to 60 per cent of revenues in the medium to long term, and new product contribution is expected to rise from 4 per cent to 6-7 per cent over medium term.
“Indian domestic market is valued at Rs 1.6 trillion growing at 10-12 per cent. The market will double in the next five years. Focus would be India,” Chopra said. The company is ranked 25th in the domestic market.
In January, JB Chemicals board approved the acquisition of a portfolio of brands for Rs 628 crore, which marked its entry in the probiotics space.
Brands such as Sporlac, Lobun, Oxalo, Pubergen, Nano-Leo, and Gynogen are now part of JB Chemicals’ franchise and the turnover of these brands for FY21 (a Covid-impacted year) was Rs 88 crore and Rs 75 crore in H1FY22.
“Sporlac is a Rs 60-crore brand. We want that to be in the top 300 brands. Liquid version will come in next six to eight months,” Chopra said. Sanofi’s Enterogermina (liquid probiotic) is a Rs 100-crore brand.
“We are the fifth largest player in the probiotic space; we want to be the third largest player. We now have 7.5 per cent market share. Market is growing at 14-16 per cent. We are growing at 10 per cent. Soon, we want to beat the market growth,” Chopra said.
The plan is to launch four to six brands as line extensions, or new products from the Sanzyme portfolio. A women’s reproductive health product launch is planned in April.
Moreover, JB Chemicals plans to expand Sanzyme’s brands sales in geographies where it is strong. Currently, these brands are sold in southern and north India. Markets like the East, where JB Chemicals is strong, would further expand the Sanzyme brands there.
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