Back to the Roots: Landscaping OTC

Opportunities in the Indian Ayurveda Market -

HIGHLIGHTS

MAY 2012

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Back to the Roots : Landscaping OTC Opportunities in the Indian Ayurveda Market - CONTENTS• Executive Summary

Highlights important drivers of the Ayurveda market and key takeaways of the report• Global Traditional Medicines Market

Global outlook of traditional alternative medicines, recent strategic mergers, acquisitions and brand launches have also been covered.

• Indian Ayurveda Market The Indian Ayurvedic OTC market has been analyzed in detail in terms of market size, key

segments category-wise and sales trend over the last five years using Nicholas Hall DB6 2012 Database (India).

• Profiles of Leading Companies This section of the report includes profiles of leading companies in the Ayurveda market, in terms of revenue, portfolio and critical success factors.

• Profiles of Leading Companies Case studies of successful brands like Dabur Chyawanprash, Zandu Balm, Hajmola have been covered to give insights regarding their marketing and success strategies.

• Profiles of Key TargetsPotential brands like Kayam Churna, Honitus, Karvol which possess potential to soar high with focused nurturing have been covered as ‘Key Targets’.

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HIGHLIGHTS OF THE REPORT

Back to the Roots : Landscaping OTC Opportunities in the Indian Ayurveda Market

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Paradigm Shift in Healthcare >> Functional Medicine• The perception of illness and approaches to treatment is undergoing a paradigm

shift.

• Conventional therapy is giving way to “Functional Medicine”.

• Functional Medicine considers the body as a holistic system and identifies imbalances and dysfunctions in the body which are the underlying causes of diseases.

• These imbalances are specific to the individual and hence it also qualifies as “Personalized Medicine”.

• The treatment regimen too, is thus moving towards a “holistic” perspective.

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Paradigm Shift in Healthcare >> Functional Medicine

Symptom

Investigation of BODY CONSTITUTION

Diagnosis of Imbalances and Dysfunctions – focus on body

as a holistic system

Holistic Therapy

Symptom

Investigation of RELATED ORGANS

Diagnosis of Disease – focus on specific organs

Drugs

CONVENTIONAL FUNCTIONALTHERAPY

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Paradigm Shift in Healthcare >> Functional Medicine

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Functional Medicine Traditional Systems

• This basis of Functional Medicine is not novel to traditional systems of medicine like Ayurveda, which is known for treating the root cause of the disease by restoring erratic body functions.

• In India, a good number of consumers still prefer traditional systems of medicine over the conventional treatment like allopathy due to India’s rich heritage of natural therapies.

• Hence, consumers are turning “back to the roots” in search of “holistic health and wellness”.

• Though majority of the patients consume allopathic drugs as their primary treatment, Ayurvedic therapies do fall in their consideration as an alternative line of treatment.

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• Traditional medicines, including herbal medicines, have been used and continue to be used in every country around the world, even if it is to a small extent.

• WHO data depicts that 80% of population in some Asian and African countries are shown to depend on traditional medicine for their primary health care.

• Indian Ayurveda market, traditional Chinese medicines market (TCM), Japanese Kampo medicine are some of the popular traditional systems of medicine globally.

• Traditional Chinese Medicine (TCM) dominates the global alternative medicines valued over US$ 100 bn with 85% market share.

The strategies adopted by MNCs in leveraging opportunities in TCM and Kampo medicine have been highlighted in the report.

Traditional Systems of Medicine >> Global Perspective

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• Home remedies are usually the first line of treatment in many households.– These home remedies have been passed down as a tradition through generations.– They also pose as competition to OTC products.

• However, with nuclear families becoming the norm and also due to busy

lifestyles, consumers are looking for products that offer similar benefits like

home remedies in convenient formats.

• This is where Ayurvedic products could find a place on the medicine shelf in many homes.

Traditional Systems of Medicine >> Indian Ayurveda Market

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Indian Ayurveda Market >> Market Size

• Estimated total market size of the Indian Ayurvedic market: US$ 1400 mn*

• The market can be broadly classified in traditional medicines market, branded OTCs and Ayurveda based consumer goods.

• Ayurvedic branded OTC market contributes more than one quarter to total sales of the Indian OTC market valued at US$ 2 bn in 2011 (as per Nicholas Hall DB6 2012 Database (India).

• The top OTC products: Dabur Chyawanprash, BoroPlus, Vicks Vaporub, Revital and Zandu Balm are either Ayurvedic brands or contain herbal ingredients (ginseng)**

The Indian Ayurvedic OTC market has been analysed in detail to give a perspective on the opportunity areas in each major category using Nicholas Hall DB6 2012 Database (India).

Source: * http://www.healthcaredevelopmentmagazine.com/article/healthcare-development-magazine012.html **Nicholas Hall DB6 - 2012 Database

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Indian Ayurveda Market >> Leading Indian Companies

One Brand Wonder – Amrutanjan

Amrutanjan has extended the highly popular pain relief balm into many other variants focused on pain relief.

Building Pillars – Dabur

Dabur follows a company name branding strategy for its brands. Dabur Chyawanprash and Dabur Hajmola are its most popular brands

Emami has consolidated its position and diversified through the acquisition of Zandu Pharmaceuticals

Basket Approach – Emami and Himalaya Herbal Healthcare

Himalaya has a wide range of products across key categories, along with a range of “Pure Herbs”.

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Indian Ayurveda Market >> MNCs

GSKCH P&G

• Few companies like GlaxoSmithKline Consumer Healthcare and Proctor & Gamble have renamed the product ingredients of brands like ENO and Vicks respectively as Ayurvedic formulations. These brands are registered as Ayurvedic products in India to cater to the sentiments and beliefs of Indians in natural and traditional remedies.

• Other MNCs are yet to leverage the opportunities in this space.Leading companies and brands in the Indian Ayurveda market have been profiled to understand their marketing strategies and critical success factors - vital to marketers who plan to enter the Ayurveda market.

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Indian Ayurveda Market >> Opportunities

• Brands like Kayam Churna, Rhumasyl, Karvol Plus have great potential for brand building, considering the equity built with consumers over time. – It is said that the root cause of all diseases is constipation - most of the

communication (mainly in regional languages) for Kayam Churna was based around this logic.

– Globally Karvol (in India – Karvol Plus) is available in various formats like decongestant drops, decongestant, chest rub, room spray and vaporizer, positioned according to consumer needs. In India, it is yet to realize its potential.

– Narayan tail in Rhumasyl Liniment & Ointment is combined with herbs to make it more effective and tackle inflammation on all fronts.

These brands are highly popular among consumers but their potential has not been leveraged to the maximum. They can be potential targets for brand building.

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Indian Ayurveda Market >> Opportunities

• Natural therapies, including Ayurveda, are being welcomed the world over for their safety profile and organic nature.

• Home remedies are deep rooted in Indian households. Ayurvedic products in ready to use formats would easily find a place in Indian households.

• Ayurvedic products are preferred as collaborative care for long-term therapies such as diabetes, sinusitis, chronic gastric problems and hence these areas can be explored by OTC marketers.

• Indian regulatory policies are favorable for Ayurvedic products, as compared to their allopathic products.

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CubeX Consulting

• CubeX is the Strategic Consulting and Business Intelligence Division of Sorento Healthcare Communications.

• If you would like further information about this report, please contact: reports@cubex.co.in

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