Started in 1995, the Delhi-based company has grown by selling medicines at prices, which are a fraction of what the brand leaders sell their products for and by betting on the unexplored hinterland. The maker of the world’s cheapest Viagra clone Manforce and emergency contraceptive pill Unwanted 72 is today the ninth biggest company in the country’s Rs 40,000-crore drug retail market as per market research firm ORG IMS. There are over 20,000 drug makers in India, making it one of the world’s most competitive markets.
Mr Juneja’s logic is simple. Two-thirds of India’s population consumes 40% of the Rs 40,000-crore drug market. He started working out thin-margin models. The company cut prices of its products and took competitors by surprise. For instance, its antibiotic Moxikind CV sells for Rs 11 (a six-tablets pack of 500 gm) against GSK and Ranbaxy’s brands priced at Rs 40. Needless to say, both trade and consumers have given this strategy a thumbs up.
No comments:
Post a Comment