Competing in an industry crowded with leading global brands is tough!

But how did #Mankind carve out a market-leading position in d Pharma #OTCMarkets ? 💊

- here's an interesting thread👇 (1/8 ) 🧵

#mankindpharma #Pharmaceutical #OTC #investing #StockMarket #StockMarketindia
One of the fastest-growing pharma companies in India, #Mankind was actually born due to the rift in the family.

After splitting with one of his brothers, Ramesh Juneja started Mankind with a mere capital of Rs 50 lakh and generated 600% #ROI in the very first year! 💹

Being a relatively late entrant, #Mankind adopted an unconventional strategy to gain success in the business -

While most of the players targeted tier 1 cities and export opportunities, Ramesh decided to tap rural areas with affordable #medicine 💊

In the early years, #Mankind bought generic drugs from contract manufacturers and sold them under its brand name at a significant discount.

Later, it started producing its own drugs and stepped into the #OTCMarkets with brands like Manforce, Unwanted 72 and Prega News.

The low-cost offering gave #Mankind a reputation among #doctors as that helps poor patients.

But, there were some fundamental challenges. With many substitutes for a single drug and strong unions of retailers and distributors, scaling new brands was tough! 🧐

But #Mankind adopted the Golden Rule of #marketing :

- He offered fat margins to the retailers & lucrative incentives to sales team
- Bold names & ad campaigns featuring sports stars, celebrities
- Selling their products in unconventional places like paan shops & nukkads

Even today, the company spends a sizable amount on ad campaigns.

Though this strategy has created a few leading OTC brands for #Mankind , as it is a niche product segment, the #OTC division constitutes only 10% of its sales.

In last few years, it has outpaced the industry growth & fetched a place in India’s top 10 Pharma companies with an annual turnover of Rs 5676 Cr in FY20.


Do you think with its strong OTC brands, Mankind can get premium valuation like GSK & Abbott? 🤔
(comment your views)

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