Kolkata, Dec 22, 2014
Kolkata-based Emami Group has tied up with German homeopathic company Hevert-Arzneimittel GmbH aimed at garnering a major share in the homeopathy medicine segment.
The 25,000-crore Emami Group had acquired two sick homeopathic pharmacy companies – M Bhattacharya & Co and King & Co (Homoeo Chemist) – in 2007 and 2011, respectively.
RK Jatia, who looks after medicine-related business verticals of the Group, said the company is planning to make homoeopathic medicines at its plant near here and expand the group’s marketing reach in the segment.
“We have upgraded the plant to Euro GMP (good manufacturing practices) level for producing the key liquid ingredient – mother tincher for all medicines. Through the collaboration, we will upgrade it further to commence improved production by April 2015,” he said at an event to announce the deals. Hevert and Emami group have also signed a licensing agreement for manufacturing some of the Hevert formulations here, Emami said.
The German company has also chosen M Bhattacharya & Co as the marketer of select Hevert branded over-the-counter medicines.
Mathias Hevert, MD of Hevert-Arzneimittel, said Emami Group would initially market six of its OTC products through imports. “We would not invest money in M Bhattacharya, but in technology and manufacturing practices.”
Jatia said a formal merger between M Bhattacharya & Co and King & Co is on the cards and could happen next year.
The entities currently have 12 retail outlets in the city and some 400 distribution points elsewhere in the country.
Jatia, who is MD of Emami FrankRoss Ltd, an allopathic medicine retail chain of the Group, said the Rs.240-crore entity is expected to break even in 2015-16. “We aim to take its revenue to Rs. 500 crore in the next three years through expansion of stores, e-commerce and hospital sales.” Business Line
