In conversation with Rajeev Juneja, Managing Director and Vice-Chairman of Mankind Pharma Ltd
We are working on strengthening our consumer healthcare business via new launches, premiumisation and line extensions to become the most admired institution in India, voices Rajeev Juneja, Managing Director and Vice-Chairman of Mankind Pharma Ltd
In Q2FY24, the company declared a noteworthy 11 per cent year-on-year growth in its net sales, coupled with an impressive 21 per cent surge in net profit. What are the primary drivers behind this?
The company’s substantial growth in Q2FY4 was driven by several key factors. A favourable sales mix has contributed significantly to the overall growth of the company. A strategically balanced and diverse product portfolio further bolstered by operational leverage, positively impacted sales performance. The company registered an increase in the market share of chronic products, completing a successful expansion in a segment with sustained demand, contributing to the overall positive financial outcomes for the company. Further, stable prices in the Active Pharmaceutical Ingredient (API) market coupled with expansion in the chronic segment played a crucial role, providing a stable foundation for profitability growth.
What contributed to the exceptional 159 per cent year-on-year growth in the export business during Q2FY24?
The rapid growth in the export business is primarily due to the increasing sales of a singular, oral, solid-dosage product. An increase in specific, transient opportunities within the United States is anticipated in this quarter as well, contributing significantly to the overall growth. It is noteworthy that this steep growth in the export business is largely driven by the unique performance of this particular product. The company boasts multiple brands that have achieved the top ranking in their respective categories, such as Manforce and PregaNews.
What is the company's strategy for preserving this leading position?
The company has a multi-pronged approach to preserve Manforce and PregaNews’ top rankings in their respective categories. The core of this approach is centred on cultivating brand affinity and fostering advocacy. This strategy also involves the extension of reputed product lines within established brands. For PregaNews, the company has broadened its offerings to comprehensively address the needs of pregnant women, spanning from pre-conception to post-natal care. This expansion positions PregaNews as an "Expert Pregnancy Care Partner," showcasing a commitment to addressing the evolving requirements of consumers throughout their pregnancy journey.
Considering the sales mix, the gastro-intestinal and derma segments have consistently experienced a decline in their share of total revenue. How does the company intend to augment their contribution to revenue?
As a firm, we acknowledge the requirement for strategic intervention to revitalise and enhance the contribution of the gastro-intestinal and derma segments to our overall revenue. Our focus within this intervention involves a series of detailed, deliberate and comprehensive strategies that aim to rejuvenate these segments by drawing fresh focus to select product categories. We are committed to building robust portfolios within the gastro-intestinal and derma segments by actively identifying and capitalising on the gaps and required solutions. This entails a systematic approach to introducing new and innovative products tailored to meet the evolving needs of the market. Additionally, our adaptive strategies align with emerging market trends, regulatory landscapes, and evolving customer preferences in the gastro-intestinal and derma segments. We are hopeful that with time, these multiple long-term strategies will bear fruit.
What are the top three strategic priorities currently being focused by the company?
Our company's current strategic priorities revolve around three key areas. Firstly, we aim to increase the value of prescriptions in existing markets, evidenced by a significant rise from 62 per cent to 68 per cent in FY23. Secondly, our focus is on expanding our presence in the chronic segment, encompassing existing therapies like Diabetes and Respiratory, as well as venturing into new therapeutic areas like neurology, nephrology etc. Thirdly, we are committed to increasing our footprint in metros and Tier I cities through initiatives such as engaging with Key Opinion Leaders, forging hospital partnerships, and launching speciality divisions. Additionally, we are working on strengthening our Consumer Healthcare Business via new launches, premiumisation and line extensions, leveraging our brand dominance to become the most admired institution in India.
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