There is a new entrant in the Rs 150 crore baby healthcare market. Himalaya Drug Company (HDC), after enjoying success in the personal care business, is now venturing into babycare.

"There is tremendous potential in this market, as there are very few players around," says HDC CEO & President, Mr. Ravi Prasad.

The company has just launched a range of products for babies - moisturizing soap, powder, lotion, shampoo, nourishing oil, cream and diaper rash cream.

"Extensive dermal safety studies and clinical trials have been conducted to determine and ascertain the safety and efficacy of each and every product in the range," HDC officials said.

The Rs 350-crore company is targeting five percent of the babycare pie by 2005-06. That converts to roughly Rs 7.5 crore. Johnson & Johnson dominates this market, while others like Wipro too have made a mark.

HDC will initially stay away from advertising these products, and will stick to experiential promotions. The campaigns will start only in April.

According to Soumitro Banerji, Business Head (Personal Care Division), market surveys indicated a willingness to experience a babycare brand in the herbal category.

Meanwhile, the construction of HDC's second facility in Bangalore will start in a couple of months. The Rs 165-crore facility will be up and running in early 2006.