Elder Health Care to market POLA's skin care products in India

New Delhi - ELDER Health Care, the FMCG arm of the 800-crore pharma major Elder Group, has entered into an in-licensed deal with Japan's $1.6-billion Pola Chemical Industries for skincare and cosmetic products. While Elder will initially distribute Pola's skin whitening cream and gel, it plans to extend the partnership to antiageing products, beauty treatment and fragrances.

With this tie up India has become the 16th country outside Japan, where Pola's premium line skincare products are offered, the other Other countries currently include China, Malaysia, Thailand, New Zealand, the USA and Canada. Pola is among the Top 10 global cosmetic companies and the number-one direct selling cosmetic company in Japan.

"We will sell the products through both retailers as well as dermatologists and cosmetologists. The Pola range will be positioned in the premium segment and we expect this portfolio alone will generate sales of around 20-22 crore within three years. In the long run, we will have a complete range of premium products from Pola's stable, The deal is expected to help company consolidate presence in the 3,500-crore skincare market in India, growing at 20% annually." Mr Anuj Saxena, Managing Director, Elder Health Care.

"In-licensed products contribute almost 90% to our turnover. These are all revenue sharing deals. We are in talks with another six companies for such deals. One such agreement for baby skincare products will be inked soon," said the Elder managing director. The company is also looking at growing its own brands as a long-term strategy. It wants to increase the revenue contribution of own brands to 50% from 10% over the next three years. With this, Elder Healthcare is eyeing a turnover of 300 crore by FY 2013." Mr Saxena said.

Elder has built a strong marketing and distribution network in the Indian skincare market with Fairone Fairness Cream and Fairone Soap which are licensed from Shahnaz Hussain Herbals.Some of the other leading in-licensed brands include Tiger Balm from Singapore's Haw Par, Burn Aid from Australia's Rye Pharmaceuticals, Blistex lip balm from Blistex Inc, USA, and Fuel for Men deodorants from VLCC. The Tiger Balm is its largest selling FMCG brand with sales of around 20 crore.

Source : Equity Bulls

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