Hamdard aims at 33% growth

Ruchita Saxena / Mumbai March 31, 2008

Roohafza brand maker Hamdard Laboratories is planning a comeback to post 33 per cent growth and Rs 250 crore turnover this year.

In the past few years its growth slowed down to a single digit. The company, however, kick started a restructuring exercise last year with chief marketing officer Arshad Siddiqui at the helm.

Siddiqui said, �We have four strategic directions: rejuvenation of our power brands, new products to fuel growth, restructuring our SBUs and streamlining distribution network. We feel our power brands such as Roohafza, Saifi, Cinkara have the potential to grow. We have launched a marketing campaign and have roped in Juhi Chawla as brand ambassador for our flagship brand Roohafza. We will also partly sponsor the Femina Miss India contest for the Safi brand.�

Hamdard is often compared with another FMCG major Dabur due to their similar product mix and as they were founded by the promoter families around the year 1900.

While the Burman-family promoted Dabur reached over Rs 2,000 crore turnover, Hamdard, said experts, could not script the same success story due to lack of professionalism. To tide over this, the company has embarked on an investment phase to push up the growth.

The company will be add more products to its portfolio in the over-the-counter (OTC) range this year. It is streamlining its operations by forming separate strategic business units (SBUs) for consumer, over-the-counter and traditional range of products.

The marketing campaign will be prepared by advertising agency JWT for the company. Roohafza was advertised extensively by the company last year to position it as a natural refreshment drink and not just as a �sharbat.� The company aims 26 per cent sales growth for this brand alone.

Joshina, Sualin and Roghan Badam Shirin are the company�s other power brands, which account for 60 per cent of its turnover. Siddiqui was roped in from ITC�s lifestyle retail venture in August 2007.