Ketan Zota, Director, Zota Healthcare, talks about his company’s growth plans to Sachin Jagdale, besides giving details about its proposed IPO
Give details regarding your proposed IPO offering.
Zota Healthcare has been in the market since the last two decades. How has your product portfolio changed/ evolved during this period?
Zota Healthcare as a pharma company believes firmly in having various brainstorming sessions and periodic market surveys to ensure that our marketing and product development teams respectively are in sync with market expectations as well as company objectives. Our portfolio is based upon market response, gap in existing medications offered and patients and therapy requirements. We strongly believe that we develop new products that are in line with customer needs and this has in turn helped us establish a strong presence in many untapped segments of the pharmaceutical market in India.
Our company manufactures products in-house. We do not tend to lend our ideas and objectives to a third party. We also market our line of products based on the requirements of the end consumer as well as the market conditions. Since we have a strong value system, we prefer to keep them in place by having our team drive everything from understanding what the consumer needs till the point of marketing them in a manner that makes a strong impression in the end user’s mind. We believe in marketing our own products as well and do not represent any other pharma company other than Zota Healthcare.
Zota Healthcare deals with formulations, nutraceuticals and ayurvedic products. Which is the most profitable category for you?
Our target audiences are different pertaining to different product category. We believe that all segments mentioned by you are profitable to us. However, the company has more experience and expertise in the nutraceutical segment. Overall, it has also brought in more profits for Zota Healthcare. We are proud to have several patents under the category of nutraceutical as well.
What was your turnover during the last financial year? What is the expected revenue rise over the next five years?
As of the last financial year, 2015-16, our company’s turnover is Rs 64.50 crores. In lieu of last year’s performance, profit targets are set for the performance of the next financial year as well as next five years. Zota Healthcare is expecting an increase in growth of around 11.4 per cent in the coming year of 2016-17. Marketing strategies are in place to ensure that profit margins set are met by the team. Implementation of marketing policies will be in full swing to ensure that targets are reached. Our target is to ensure consistent growth in the next five years in order to reach a turnover of approximately Rs 500 crore.
Are there any new product/s in the pipeline?
As a company, we are in the practice of introducing new brands every month and take pride in expanding our line of business with upcoming brands in the segment of beauty products. Some of the products that Zota Healthcare will introduce to the pharma sector will include a new range of kits for acne, dark circle removal, hair, post pregnancy kits for mothers and muscular pain reliever kit. Other new launches entailing complete care for new born include Nutravedic ACNOBYE kit, Nutravedic Glowtouch DCR Kit, Nutravedic Hair Kit, Nutravedic Happimom Kits, Nutravedic Its Relax Kit and Nutravedic Baby Kit respectively. All products mentioned are going to be fully ‘ayurvedic’ and each kit is going to consist of three to four products that will serve a distinct purpose. Apart from this, we also have Zota Generics Products (Davaindia.com), Dip Sip Health Drink Powder and Ayurvedic tooth paste.
What is going to be your growth model in future?
Currently, Zota Healthcare is doing well and we only wish to capitalise on this momentum going forward. We expect tremendous growth in domestic as well as in the international markets. We feel our vision is justified keeping in the mind that our ‘patent’ products are making profits in both markets – domestic and international. Our sustainable growth model majorly relies on our products – existing as well as upcoming. Some of them include the entire range of Nutravedic products that come as a kit, generic products that are part of Davaindia.com and all else mentioned above.