RPG Life Sciences has announced its foray into the cosmetics business with the tie-up with Italy-Swiss based Labo Cosprophar. The company will market hair-growth product Crescina and a wrinkle-free and anti-ageing skin care product called Fillerina. Speaking to Bloomberg TV India , RPG MD CT Renganathan says the company aims to grab a 10 per cent market share in the ₹250-crore cosmetic dermatology segment. The company also aims to increase its turnover to ₹1,000 crore through new product launches, licensing pacts and geographic expansion, he said. The company is now focusing more on Europe and emerging markets. RPG also aims to get into the US market by 2019.

Take us through your tie-up with Labo Cosprophar. What does this mean for RPG Life Sciences going forward?

We have established a marketing tie up with Labo. We have exclusive marketing rights for two of their cosmetology products, thus making our entry in the cosmetic dermatology segment. It is a big and attractive segment, growing very fast for the past 5-6 years. And the hair growth segment is itself a very big segment. So we are trying to enter this market to tap the demand for premium products from Labo, which is Crescina. Similarly, for wrinkle-free and anti-ageing skin care there is a product called Fillerina. The two products will be licensed for a long-term exclusive marketing for Indian market.

What kind of revenue are you expecting from this segment during FY17 and FY18? What kind of market share are you looking to garner in the Indian market from these cosmetic brands?

These two brands are not getting into the over-the-counter cosmetic segment. They are getting into the cosmetic dermatology segment, and doctors’ prescriptions will be focused to begin with.

The cosmetology segment in the prescription market is attractive at this point of time. It is estimated to be around ₹250 crore. So even if we get 10 per cent at the end of three years, we anticipate ₹25-30 crore in sales over a period of three years. So the growth potential is very high.

What margins do you expect with the exclusive distribution rights for the products?

Our average gross margins are close to 50-55 per cent. We may be able to get such margins in these products too.

Your annual report forecast business growing to ₹1,000 crore. By when do we expect to attain that milestone? What are your plans for FY17 and FY18?

This is the vision we are looking forward to. However, on the way, we are looking at various options. One is entering new segments such as dermatology, which we are getting into not only with these two important products, but also introducing Indian-origin products. And we are also looking for licensing opportunities in dermatology. And if any business development opportunity comes in, we will be grabbing it as well. Looking forward to the international businesses, we are currently focusing on formulations. And we are also looking at a long-term opportunity in the US. So in next 3-5 years, this figure (of ₹1,000 crore) should fructify.

Talking about your international formulation business, what is the outlook for FY17?

Right now, we are focusing more on Europe and emerging markets. In Europe, we have expanded more into Germany, the UK and other markets. We will be focusing on the US after lifting the FDA warning for our manufacturing sites. We are looking at getting into the US market around 2018 or 2019.

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