Polar Pharma to make equipment

Polar Pharma India Ltd., part of the Rs. 165 crore Polar Group, is planning to diversify into the field of medical equipment and devices. The Rs. 45 crore company has initiated talks with international manufacturers for marketing and technology tie-ups of products in the domestic markets.

The company which is currently into production of condoms, has also recently changed its name from Polar Latex Limited to Polar Pharma India Ltd. to incorporate new business plans under a single roof.

"We are looking at product segments like HIV kits and auto-destructive syringes. We will initially start with marketing of the products in India and set-up a production line at a later stage." Mr. S. Perumal Pillai, director & CEO, Polar Pharma said.

Polar Pharma, that has been erstwhile supplying condoms on a contract basis to various international companies and national governments, including the government of India, has now decided to enter the domestic market. The company would be re-launching in July a premium segment brand, Adam, that it had phased out 12 years ago.

"We had to phase out the brand as we had then adopted a wrong business model. We have not only revamped the business model but even the market is opportune, showing a steady shift from the grey market segment." Mr. Pillai added. The company has also decided to tap the rural markets with this brand at a much lower price point by cutting on packaging cost. The company is tying-up with FMCG companies for leveraging their rural distribution channel. Moreover, Polar Pharma has planned to launch another brand this year with value-addition in the premium segment.

The premium condom market is India is valued at Rs. 140 crore with a volume of 250 million pieces. The market is growing at about 6-7% in the urban and semi-urban markets.

Though currently exports contribute around 30% of the company's turnover, Polar Pharma has targeted around 65% contribution form international markets. "We have recently bagged a huge order from Brazil's health ministry for 300 million pieces.

(Ref: Economic Times June 16, 2004)