Diversified conglomerate UK Modi Group bets big on child, women's nutrition segment

Diversified conglomerate Umesh Modi Group (UK Modi Group) with interests in pharma, health & nutrition, cosmetics, writing instruments, power, sugar industries and AlcoBevs, is now betting big on the child nutrition and women's nutrition category. With 30 branch offices, 20 production units, two R&D centres and over 10,500 skilled professionals spread across 36 countries is hoping to be a 7500 crore business by 2025, when all its ambitious growth plans are in order. Speaking to Bizz Buzz exclusively, Umesh K Modi, Chairman, UK Modi Group, shares his take on the growing health and nutrition market in India and the way forward

We know that it's not going to be a cakewalk and more so with the category dominated by multinational giants. But we are confident and ready to invest heavily in the brand backed up by strong marketing plans. We intend to implement an aggressive distribution strategy across all channels chemists, grocers & modern trade. Yes. We are also exploring to increase the current contribution of e-commerce from 11 per cent to 20 per cent as early as possible

Besides West Bengal and eastern India market, we are currently focussing on Andhra Pradesh, Telengana. Moves are afoot to emerge as a strong national brand with strong pan India presence by 2022

You are now foraying aggressively into the child nutrition category with the planned pan India roll out of New Groviva. What would be the overall market size in this category?

The overall market size in this particular category (OTC) is estimated to be nearly Rs 4000 crore.

What is the current market share of Groviva and where would you like to take it to?

At present, Groviva has 9 per cent market share (IQVIA Sep- 21) and is eyeing to garner an aggressive 25 per cent market share by 2025.

What is the revenue you are looking at from this category over the years, while reaching that target of 25 per cent market share?

Our target and plan is to earn Rs 50 crore in the first year and then move to Rs 250 crore over the next couple of years and eventually Rs 500 crore by 2026.

How challenging would that be? Would e-commerce also contribute to this ambitious growth plans?

We know that it's not going to be a cakewalk and more so with the category dominated by multinational giants. But we are confident and ready to invest heavily in the brand backed up by strong marketing plans. We intend to implement an aggressive distribution strategy across all channels chemists, grocers & modern trade. Yes. We are also exploring to increase the current contribution of e-commerce from 11 per cent to 20 per cent as early as possible.

How has been the Groviva brand's journey so far?

Over the last 3 years, Groviva has gained significant recognition for its formulation as per Indian standards and thus, seen high-levels of recommendations by Indian paediatricians in the child nutrition category, making it the topmost prescribed brand in the category. We have developed its formulation in such a way that consumers can continue to use just 2 scoops of the product, twice a day while getting the right dose of nutrition.

Groviva contains 38 key nutrients including Certi5 signature nutrients and complies with ICMR guidelines. The product is taste tested and customised as per the Indian palate. According to an AC Nielsen research conducted on as many as 900 mothers and as many as 600 children, Groviva was rated superior in taste, aroma, colour, mouthfeel and after taste compared to the leading brands in the category. Similarly, Groviva was used in one of the largest observational studies conducted on 763 Indian kids by 146 Paediatricians across 116 cities in India to assess the role of nutritional supplement in growth & development in children 2 -12 years. There was a statistically significant improvement in height, weight & BMI observed within 6 months of intake. The study is also published in the 32nd World Congress of Paediatrics, Barcelona Spain.

How has the pandemic impacted this particular business of the group?

While the category has been growing at a CAGR of 11 per cent, we managed to grow at a much higher rate of 85 per cent. There is no doubt whatsoever that that over the last one and half year or so there has been a stagnation in the market- in this category too. One of the main reasons for that was that kids were not going to schools. Hopefully, things would look up now. East, incidentally, has been the strongest market with more than 20 per cent market share. That's possibly because mothers here are more caring and more particular about their children. They try to do everything possible to look after their children and nurture them. Here we have the most discerning consumers with strong appetite for high-quality products.

Eventually you would like to be a national brand in this category. So what are your national plans like?

Besides West Bengal and eastern India market, we are currently focussing on Andhra Pradesh, Telengana. Moves are afoot to emerge as a strong national brand with strong pan India presence by 2022.

How many new products you are looking at, going forward?

At least 4 new products have been lined up already. Our overall plan is to roll out at least two new products each year. Of the upcoming new products, there will be a child nutrition product, particularly taking care of the obesity problem and another in the women's category. The women's product will be launched as early as January, 2022.

You mentioned about strong brand building and promotional exercise. Would you rope in some brand ambassador for that?

We have already got the support of popular Tollywood diva Subhashree Ganguly. Apart from being a famed Bengali actor she is a new mother herself. Her association will go a long way in cementing the brand's ethos and credence as a superior, quality product for the overall growth and development of children. Mothers are known to be extra careful and cautious about products they give their child.

Groviva is the flagship brand of Signutra, which is the Health & Nutrition division of UK Modi Group and a global expert in nutrition category. What have you done to ensure right scientific support and right formulation?

When we entered Health Food Drink space we had teamed up with global player Mundi Pharma, who in turn had signed agreement with IFF (formerly Dupont Nutrition & Health) in May 2013. And all products were created via a technical & scientific collaboration with IFF. IFF provided formulation development, technical knowhow in setting up manufacturing capabilities and creating product formulations as well as providing scientific and marketing support for Signutra. Signutra believes that the right nutrition can improve health and well-being of people. Signutra offers an exclusive range of products catering to the needs of different age groups, life stages, diseases & conditions.

A lot of consolidation is taking place in this space. Are you also game? Also, any overseas plans?

No. Our vision is clear. We need to grow ourselves and we will grow that way only. Yes, we have already started exploring markets in a number of Asian countries like Malaysia, Indonesia, Vietnam and so on. Going forward, we will tap many new geographies.