COVID-19 has been a huge wake-up call that has come at a heavy cost: Charak Pharma’s Dr Ram Shroff
COVID-19 compelled one of the oldest Indian pharmaceutical players, Charak Pharma, to rethink and reshape its business strategies. Dr Ram Shroff, Director speaks about how the pandemic has changed the industry for the better and what they are doing to keep up with the times.
The COVID-19 pandemic has led to an unprecedented focus on health and wellbeing - be it mental or physical, thereby boosting allied services like the pharmaceutical industry.
According to a report by research platform India Brand Equity Foundation (IBEF), the pharma market was estimated to be worth $42 billion in 2021 and is slated to reach $120-130 billion by 2030. India has several established brands in the pharmaceuticals space, from Himalaya to Emami to Dr Reddy’s. A relatively new space called Pharmatech has also emerged in the last few years, which focuses on telemedicine or online selling.
In today’s SMBStory, we speak to Dr Ram Shroff, Director of Charak Pharma, a company that is almost as old as our country, having been started in 1947 by the Shroff brothers D.N. Shroff and Dr S.N. Shroff.
Today, has carved a niche for itself in the Indian as well as global market. It offers around 106 SKUs across categories such as dental, gynaecology, ortho, and more, and is present in two lakh outlets in India. Charak also exports to more than 30 countries, including the likes of the US, UK, Greece, Portugal, Bulgaria, Ukraine, Kazakhstan, Tajikistan, Bangladesh, Sri Lanka, and more.
Talking about the pandemic impact on the industry, Dr Ram says, “One industry which has definitely gained is the pharmaceutical industry.”
“COVID-19 has been a huge wake call that has come at a heavy cost,” he says, adding, “It has also made all of us relook at what we were doing. Sometimes you overlook certain things, but when the going gets tough, you start looking into everything.”
Focusing on the online market
One of the ways in which COVID-19 has forced businesses to transform is the adoption of digitisation, and Dr Ram affirms this as he says even though they have been in the offline space for decades now, the model has changed.
In 2018, Charak Pharma launched its direct-to-consumer (D2C) platform Vedistry, which offers personal care products for skin, hair, and general health. While the D2C website was launched sometime back, Dr Ram says he realised the importance of scaling it up only in the last two years. “Companies have realised that with rampant digitisation, they need to reach out to customers directly.”
Vedistry offers 56 SKUs, which have an average selling price of Rs 194. It is also present on , , , and .
The third-generation entrepreneur vows the strength of the brand lies in the fact that they manufacture their own products from their units located in Haryana, Himachal Pradesh, and Gujarat. Charak is known for products such as Kofol, Addyzoa capsule, Hyponidd tablets, and more.
He also says that with Vedistry, they want to focus on general health, but with limited medical supervision. “We don’t want to get into the serious medical conditions and sell those products online. We don’t feel it’s the right thing to do.”
Going forward, Dr Ram says they plan to adapt a hybrid approach wherein both online and offline channels are scaled up. “We have close to 1,500 people on the ground so offline will continue to be our focus. Both our brands - Vedistry, which offers healthcare products and Moha, which offers personal care products, will serve as D2C platforms.”
Refusing to share the revenue numbers or the units sold, Dr Ram affirms the company is registering a 20 percent year-on-year growth rate in revenues.
Image Source: ShutterStock
Navigating through the challenges
According to a report by IBEF, India is the largest provider of generic drugs globally. It is also the third-largest in the world in terms of volume and the fourteenth largest in value. However, the challenges within the sector are also numerous.
Shortfall in manpower (scientists, pharmacists, etc.), several high-cost drugs not covered in insurance, and high pricing of patented drugs are a few discrepancies in this sector.
Nevertheless, Dr Ram is optimistic that as the country progresses, these challenges will also find a solution.
He also says that comparing India with developed nations like the UK or the US is unfair. “Even in the US, you have many people who are not insured or under-insured.”
Calling India a “massive opportunity” with sound “business prospects,” Dr Ram seems geared up to tap into this market. With Vedistry, Dr Ram says he plans to introduce products in several categories such as women’s health (particularly PCOS), non-alcoholic fatty liver, endometriosis and more.
He says that the fundamental goal is to increase the basket of products and ensure that they add value to the life of the customers and contribute to their health and longevity.
Edited by Anju Narayanan