KKR-backed JB Chemicals, the proprietor of marquee manufacturers Rantac and Metrogyl, is making an attempt to make a mark within the lozenges class in a bid to extend its share within the home market to 60 per cent of turnover.
Besides, the Mumbai-headquartered firm is making an attempt to increase the Sanzyme portfolio of probiotic merchandise.
At current, JB Chemicals is simply contract manufacturing for multinational shoppers similar to J&J, P&G, and so forth. The firm, which launched its personal lozenges this 12 months, now plan to enter new areas like sleep issues, sexual wellness, movement illness, and immunity aside, from the standard areas like cough, sore throat, and so forth.
“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 government officer and whole-time director of JB Chemicals, informed Business Standard.
“This year, we target to touch a 1 billion units of production,” Chopra mentioned, including that the corporate has already launched lozenges for cough and sore throat within the home market underneath their very own model.
ICICI Securities analysts famous that JB Chemicals aspires to extend home contribution to 60 per cent of revenues within the medium to long run, and new product contribution is anticipated to rise from 4 per cent to 6-7 per cent over medium time period.
“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 mentioned. The firm is ranked twenty fifth within the home market.
In January, JB Chemicals board authorized the acquisition of a portfolio of manufacturers for Rs 628 crore, which marked its entry within the probiotics house.
Brands similar to Sporlac, Lobun, Oxalo, Pubergen, Nano-Leo, and Gynogen at the moment are a part of JB Chemicals’ franchise and the turnover of those manufacturers for FY21 (a Covid-impacted 12 months) 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 mentioned. Sanofi’s Enterogermina (liquid probiotic) is a Rs 100-crore model.
“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 mentioned.
The plan is to launch 4 to 6 manufacturers as line extensions, or new merchandise from the Sanzyme portfolio. A girls’s reproductive well being product launch is deliberate in April.
Moreover, JB Chemicals plans to increase Sanzyme’s manufacturers gross sales in geographies the place it’s sturdy. Currently, these manufacturers are bought in southern and north India. Markets just like the East, the place JB Chemicals is robust, would additional increase the Sanzyme manufacturers there.