Tiger Balm-maker targets Rs 200 crore in India revenues

Haw Par Corp is looking to grow its revenues from the Indian market by over 135% in the next couple of years. The India unit, subsidiary of Haw Par Healthcare that's owned by Singapore Exchange-listed firm Haw Par Corp, will also launch one new product every year over the next two years. The idea, according to a top company executive, is to build India product portfolio that currently comprises of ointment brand Tiger Balm only.

In an exclusive interview with DNA Money, A K Han, executive director, Haw Par Corporation, said that the company has been selling its flagship (over 100-year old) ointment brand in the Indian market since 1995.

“We are currently selling only one product (in different pack sizes) in the Indian market and our revenues currently stand at Rs 85 crore here. With new product launches planned in the coming years, we are targeting India revenues to cross over Rs 200 crore in two years from now,” said Han, adding that the company has (for the first time) introduced a new innovation from the Tiger Balm family called 'Tiger Balm Neck and Shoulder Rub' made using ayurvedic ingredients.

The company's growth, according to Han, has been satisfactory though it could have been much faster. “We have had only one product so far in the Indian market so we cannot expect much. The growth will be expedited once we have at least three or four products in our portfolio. This will be achieved by launching one new product every year,” said Han.

Sold globally in over 100 countries, Tiger Balm range is manufactured in India through a facility in Hyderabad. For its distribution across key markets across the country, Haw Par India has appointed Alkem Healthcare as its exclusive distributor for the Tiger Balm range of products including the newly launched 'Tiger Balm Neck and Shoulder Rub'.

The product range will largely be sold through a distribution network comprising 300,000 retail outlets. It includes modern trade and traditional channels comprising general, medical and kirana stores. While the newly-launched product will be initially made available in tier-I and tier-II markets, the reach will be expanded to the rural markets at a later stage. The company will also sell across various e-commerce platforms to enhance the market penetration.

Elaborating on the new offering, Vijay Arora, director - India and country manager-South East Asian Countries, Haw Par India Pvt Ltd, said, “It’s a lifestyle product and the perfect solution to stiff necks and shoulders that arise from the heavy use of gadgets.”

The product, according to a company statement, is targeted at heavy tech users of smartphones and other mobile devices, along with those that lead busy but sedentary lifestyles and are facing tech and posture related neck and shoulder pains. “It is the first and only modern solution with a calming lavender fragrance that provides non-greasy, fast-acting relief targeting neck and shoulder pains,” Haw Par India said in its product note. The pocket-sized tube, available in 30-gram and 50-gram packs, is priced at Rs 99 and Rs 149, respectively.

TIGER ZINDA HAI

• The firm will launch one new product every year starting with Tiger Balm Neck and Shoulder Rub ointment
   
• The product range will largely be sold through a distribution network comprising 300,000 retail outlets