The real churn in the fast-moving health goods business probably started with the country's most recognisable grandma - the unforgettable face of Ayurvedic Concepts - about a year ago. Today, the Indian ayurvedic healthcare industry is valued at Rs 10 billion. The Express team gives you an overview of this strong medicine

Bangalore
Grandma magic

If there is a new segment called Fast Moving Herbal Goods (FMHG) then the credit should go to 72-year old, Bangalore-based Himalaya Drugs.

Since its inception, Himalaya has focused on developing safe natural and innovative remedies that will help people lead richer, healthier lives.

Today, over 200,000 doctors around the globe and consumers in 55 countries rely on Himalaya for health and personal care needs. Himalaya products can be divided into medicinal range, personal care products, pure herbs and animal health care.

The medicinal range can be further divided into children's health, men's health, women's health and general health. Prominent among them is Liv.52, a liver formulation, which is also the flagship brand of the company. Every second, one unit of Liv.52 is bought somewhere in the world. It is ranked Number One in the hepato-protective and Number Three among all pharmaceuticals products in India.

Over the years FMHG has turned out to be a sunrise sector, prompting multinational companies like Hindustan Lever Ltd to enter it. The global market size for herbal healthcare is estimated to be around
$ 62 billion, while India roughly accounts for Rs 2,500 to 3,000 crore (herbal as well as personal care). No formal study, however, has been carried out so far to estimate the market size.

Irrespective of competition from the organised and unorganised sector, Himalaya's range of product have been showing encouraging results, with the Personal Care division accounting for 16 per cent of company's business. Last year, the company posted a sales revenue of Rs 250 crore.

How does Himalaya maintain an edge over others? "Unlike allopathy, where the molecule structure does not vary, there could be a vast difference in the goodness of a herb depending on the place, season & soil it is grown in. Over 72 years, we have developed a unique technique to check this consistency and quality of herbs that are used to manufacture our products," says company chief executive Ravi Prasad.

Hyderabad
Easy on the body

Treatment using herbal medicine may be slow but definitely has a long-term effect. The action of many herbs can be compared to a tap on the shoulder, whereas the effects of drugs can be compared to a kick in the pants.Himalaya Drug, the producers of leading household brands (Liv.52 and Ayurvedic Concepts) has come out with 'Himalaya Pure Herbs.' It has been priced in the range of Rs 45-60.

"Herbs have been used for centuries as 'special foods' to eliminate excesses and overcome deficiencies. The value of using herbs lies in their mildness," says Himalaya Drug Company general manager (Pharma marketing) Philipe J Haydon.

The Himalaya Pure Herbs comprises of Amalaki (an anti-oxidant), Arjuna (blood circulation), Ashvagandha (anti-stress), Brahmi (alertness), Karela (regulates metabolism), Lasuna ( cholesterol protection), Neem (skin care), Shuddha Guggulu (lipid regulator), Shallaki (joint pain), Tagara (relaxant), Triphala (bowel cleanser), Gokshura (effective kidney function), Bael (anti-diarrhoeal), Harida (anti-allergy ), Meshashringi (sugar destroyer), Shatavari (female tonic), Vasaka (bronchial comfort), Yashti-madhu (gastric comfort), Sunthi (digestive support) and Tulasi (cough & cold).

Cheryl's Cosmeceuticals (blend of cosmetics and pharmaceuticals pioneer in the field of new generation skin and hair care treatment, launched its range of herbal products in Hyderabad just a couple of days ago. With more than 20 treatments and a range of over 70 herbal products, Cheryl's offerings can be used to treat disorders ranging from pigmentation, acne, hair fall, dandruff and hair thinning.

Mumbai
Ideal platform for branding

For centuries, India has been famous for its herbal remedies and ayurveda (the science of life). The country however, does not have a formally defined market for ayurvedic products so it's never easy for consumers to separate the fakes from the real stuff. An ideal chance for branding.

The global market for herbal healthcare is estimated at a mammoth $ 47 billion. India, one would think, ought to have a large share of this market, given its strength in ayurvedic treatments dating back over three millennia.

The domestic ayurvedic healthcare industry is around Rs 10 billion and is growing at 15-17 per cent year-on-year. The industry is highly fragmented with more than 7,000 licensed manufacturers. Worldwide, the ayurvedic industry is a $ 3 billion market and is slowly gaining acceptance as an alternative system of medicine and healthcare. Yet, the mistrust about herbal products remains.

Zandu, Dabur, Baidyanath, Morepan and Hamdard are some of the major players in the West and North Indian market. Zandu, a household name, is one of the leading players in the over-the-counter ayurvedic healthcare segment with products including the popular Zandu balm, general fitness medicine Zandu Kesari Jivan, Zandu Chyavanprash and digestive tonic Zandu Pancharishta.

In the personal care segment, they have hair tonic Alma Lio. Zandu also has a wide range of ethical ayurvedic formulations for malaria, diabetes, skin problems, arthritis, liver problems & diabetes.

Zandu has succeeded in receiving USFDA approval for conducting investigative clinical trials for a potential cure for Parkinson's disease, for which it already has a patent in India.

Once approved in the US, the company plans to examine the option of assigning the marketing rights to an overseas company. Zandu has a centuries old understanding of natural products and ayurveda. The company plans to launch 10-12 new products a year.

Another brand that's digging in is Dr. Morepan. Dr.Morepan is envisaged as a forward looking, futuristic, lifestyle-driven brand positioned on a simple philosophy 'health in your hands'.

The brand is being promoted by a new subsidiary Dr. Morepan Ltd, which has a vast sales & marketing network that reaches over a lakh retail outlets and the count is growing everyday. The distribution of Morepan has moved beyond the pharmacist to super stores, retail outlets & neighbourhood shops.

The growing list of Dr.Morepan's Self Health FMHG product includes Dab Fizz (instant antacid), Sat Isabgol (natural laxative), Gol Goli (Hajma Candy) take care of minor day to day problems, whereas products like C Sip (refreshing energy drink), Y Sugar (Low cal sweetener), and 2 Kool, (Throat drops), are lifestyle companions.

Competition is clearly hotting up in the FMHG industry. Boots Piramal Healthcare Ltd (BPHL) is now evaluating possibilities of expanding into throat-care products, say company sources. To start with, the company is in the process of rolling out Strepsils Cough Fighter - a new line extension of its throat lozenge brand Strepsils.

While Boots Piramal is busy charting out marketing plans to promote its new launch, Kopran Pharmaceuticals Ltd - known for its Smyle and Dr Smyle brands - has forayed into the baby care products segment with a baby soap under its Smyle brand-BabySmile.

Chennai
Medimix works up rich lather

Officials in the Institute of Indian Medicine and Homeopathy say Tamil Nadu has inherent strengths including conducive agro-climatic zones to tap the potential of the FMHG market. Moreover, the country has 8,000 of the 21,000 species (medicinal plants) identified by the World Health Organization (WHO).

The local success stories are Medimix and Amrutanjan. Dr. V.P. Sidhan started Cholayil Pharmaceuticals Pvt Ltd, manufacturers of Medimix, the ayurvedic bath soap, in 1969. Besides Medimix, the Rs 200 crore group has interests in cosmetics, pharmaceutical and food segments. The Group manufactures all the products under ayurvedic license and not under cosmetic license, according to its Directors, A.V. Anoop and V.S. Pradeep.

Tejaswani Skin Care Capsule, cough syrup, digestive ayurvedic vitamin capsules are some of the other popular products other than Medimix and Vrinda soap brands that command two percent of the market. One of the strong points of Cholayil, which recently took over the Cuticura brand talcum powder, is its R&D set-up and captive farms for growing herbs.

The Group has eight manufacturing facilities - six for soaps and cosmetics and one for pharmaceuticals and food at Chennai and Mysore. The interesting aspect about the soap manufacturing facilities is their limited or no dependence on power. Classified as a small scale unit, the Group together employs more than 1,000 people and does not use power for production, which, in itself, is an achievement.

Bhubaneswar
As green cover thins, herbs get pricey

The organised herbal and ayurvedic products market in Orissa is easily worth over Rs. 50 crore annually. Add to this the unorganised sector-the village quacks, journeyman vaidyas and unregistered manufacturers- and this figure could swell to around Rs. 70-80 crore.

The leading players are national brands like Dabur, Baidyanath, Himalaya Drugs and others, whose products range from classical medicines to ethical healthcare items.

However, there are over 15 local manufacturers too - Narayan Pharma, BG Pharma, Konark Pharma, Utkal Chemicals, Utkal Coopertive Pharma, Srinivas Ayurveda, National Ayurveda and Herbs Ethica, to name but a few - mostly concentrated in Southern Orissa, who manufacture a range of formulations to fight chronic diseases and for preventive usage.

Yet, compared with the allopathy segment, the ayurvedic products market has a limited number of players and the product range still does not include life saving drugs and surgical aids, though ancient texts like 'Charaka Samhita', 'Susruta Samhita', 'Vaisaja Ratnavali' and 'Bhavaprakasha Nirghantu' do mention such drugs and aids. "The best thing about ayurvedic drugs is the lack of side effects as in allopathic drugs. More and more people are now realising the benefits of these formulations, which are either classical (based on ancient texts) or ethical (new formulations)," says Dr. Asit Kumar Pattnayak, a practicing Ayurveda physician.

However, the herbal / ayurvedic products market is still nowhere close to the potential it has. According to market players, this is partly due to the fact that these drugs are expensive given the full curative prescription.

Pattnayak says the cost of raw materials has been on the rise too. "Thanks to the rampant destruction of greenery, the medicinal plants and herbs which used to be easily available earlier, are becoming rare, and thus expensive. Besides, ayurvedic products need manual monitoring and come with strict manufacturing directions about which container - wood, iron, copper or brass- to use, how much to boil, stir and so on. With the minimum daily wages increasing, the manpower costs are increasing too."