INDIA – Zydus Wellness, a subsidiary of Cadila Healthcare Ltd is proactively looking for inorganic growth opportunities to support its expansion plans into new international markets.
In this regard, the company is focusing on innovation for portfolio diversification and expansion to increase its customer base with increased penetration, according to Zydus Wellness’s latest annual report.
The company is confident to drive growth and increase the market share of its brands through innovation, leveraging distribution channels and expanding the brand portfolio, said Zydus Wellness.
Moreover, to support the growth ambitions, the company is proactively looking for bolt-on acquisitions that fit in company’s vision and mission, it added.
Zydus Wellness has integrated the business of Heinz, including a portfolio of popular brands Complan, Glucon-D and Nycil, which it had acquired in a Rs 4,595-crore (US$579.1 million) acquisition, the annual report said.
In addition, Zydus Wellness is also entering new markets with related offerings and expanding its international business, focusing on the SAARC (South Asia Regional Cooperation Association), MEA (Middle East and Africa) and SEA (Southeast Asia) regions.
“The company plans to generate 8-10% of revenues from international markets over the next five years,” the report says.
In fiscal year 22, Zydus expanded its international footprint into new geographies such as Hong Kong, Lebanon, Zimbabwe, Muscat, Ethiopia and Australia.
In fiscal year 22, the company registered an increase of 7.6% in total operating revenue which stood at Rs 2,009.10 crore (US$253.5 million).
“International business continued to grow at high double digits. The company aims to scale up its international business by focusing on key regions such as SAARC, MEA and SEA, expanding into new regions and implementing suitable innovations and expansions to meet the needs of international markets,” according to the annual report.
It has also registered its subsidiary Zydus Wellness (BD) Pvt Limited in Bangladesh, which aims to serve local consumers at competitive prices.
In fiscal year 22, the company registered an increase of 7.6% in total operating revenue which stood at Rs 2,009.10 crore (US$253.5 million).
“And this despite the fact that there was a surge in inflation and exacerbation of geopolitical problems that affected consumer sentiment and reduced consumer demand,” the company said.
Its energy brand Glucon-D maintained its top spot with a 58.5% market share in the glucose powder category.
While Sugar-Free continues to hold a leading position in the sugar market with a market share of 95.7%.
Similarly, Nycil maintained its No. 1 spot with a 33.7% market share in the prickly heat powder category, according to its annual report.
According to Zydus Wellness, its e-commerce business grew more than 1.5x in FY22.
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