>ZYDUS WELLNESS: Concentrating on niche segments i.e. Nutralite, Ever Yuth,

■ Concentrating on niche segments & attaining competitive position
Sugar Free – India’s largest selling low calorie sweetener 
Sugar Free has consolidated its position in the low calorie sugar substitute market at the top with a market share of more than 86%. Both, Sugar Free Gold – the aspartame based sweetener and Sugar Free Natura – the Sucralose based sweetener have maintained the top two slots. With this dominant market share, Sugar Free continues to be one of the driving forces behind the overall category growth in the market place. 


Nutralite – ‘Health First, Taste Always’ Nutralite – 75% market share
Maintaining its strong position in the market, Nutralite consolidated its business in terms of distribution and capacity expansion. Nutralite continues to enjoy a premium image and in spite of several me-too products being introduced in the market, remains virtually unaffected. Looking at the current as well as future
potential, the production capacity has been enhanced with investments in superior technology to offer best quality products.


EverYuth – Celebrating Youth!
EverYuth range of skin-care products maintained their leadership positions in the scrubs and peel-offs category, in spite of the stiff competition from big ticket launches by MNCs and other Indian players.


■ Sub-segmentation strategy for major brands an advantage
Zydus’ sub-segmentation strategy helps it create niche brands and grow without too much competition. A steady flow of variants, extensions and new SKUs aids consumer addition and helps expand the present brand loyal consumers to other categories. This results in creating a range of brands around the mother brand as also becomes a moat around the brand.


■ Various launches within the branded segments -
• Sugar Free Herbvia - the first herbal sweetener under the brand Sugar Free.
• Sugar Free Natura Sweet Drops, making it extremely convenient to be used in beverages and for extended
table top applications apart from cooking and baking.
• EverYuth Golden Glow Peel-Off highlighted a shift in the product’s usage.
• Its foray in neutraceuticals space by launching ActiLife, a nutritional milk additive for adults.



■ Momentum in product launches
Zydus has rolled out three variants of ActiLife, a health food drink that offers cholesterol lowering properties. The drink is targeted at consumers above 30 years of age. Zydus has also rolled out SugarFree Herbal and Nutralite Mayonnaise. The company is test marketing Purify hand sanitizers, which is differentiated with herbal properties.


■ Expansion on Distribution front going forward to boost revenue
Zydus has considerable potential to expand its distribution network to 1.5m retail outlets from 0.5m currently. Going forward, Zydus will leverage on the distribution network of its parent company i.e. Cadila Helathcare to utilize the prescription route for promoting its products.


■ Debt free company with good amount of cash and cash equivalents on books
The company is a zero debt company and has cash and cash equivalents of Rs. 864.5mn for FY11. This gives it an opportunity to leverage and expand its activities without stretching its balance sheet much. The cash could also be used for synergetic acquisitions.


To read full report: ZYDUS WELLNESS
RISH TRADER