Modicare to set up shop in Southeast Asia

Targets 25% revenues from overseas business

KOLKATA: For Modicare, the direct selling arm of the K K Modi Group, the next stop could be Southeast Asia.

It has already finalised plans to set up offices in Sri Lanka. The company, though, has abandoned plans to launch in Bangladesh due to the “law and order problems”, said Hemant Singh, CEO, Modicare.

He said the company may enter Malaysia in the next couple of years. Singapore is also on the radar.

The aim is to garner at least 25% of revenues from overseas business by next fiscal, Singh said.

It seems, all the highest-selling products in Modicare’s portfolio will be taken overseas. These are mainly in the personal, skin and home care segments.

Modicare is also planning to put more focus on healthcare supplement, which is driving the company’s business in the direct-selling industry.

In the Rs 3,000-crore direct selling market, healthcare products’ share is 30% and growing at around 15%.

The company is looking at a wide range of vitalisers for general health, the formulations for which have been already finalized but are awaiting a market study.

In 2007-08, it expects to post a 28% growth compared with 20% a year ago.

Among the new products, Modicare is likely to launch an eye-and-cheek make-up. The company recently launched a hair oil and conditioner as well as a fairness and nourishing cream.