Novartis India bullish on rural sales

Swiss drug major Novartis' Indian arm is upbeat about its rural sales initiative, Arogya Parviar and plans to double its reach in the country over the next few years. "Arogya Parivar that started as a novel rural marketing initiative is now a profit-making body.

In a span of two years, we have grown in terms of reach and volumes. We are now present in 3,00,000 villages and plan to double the figure in the next few years," Novartis India vice-chairman and managing director Ranjit Shahani told PTI.

Launched as a limited pilot project in three districts in 2008, Arogya Parivar now covers 202 districts in 11 states across the country.

The company is also considering doubling the number of cells, aimed at creating awareness among villagers on diseases, prevention and treatments, refer patients to doctors, brief physicians about the programme and treatments, and make products available in pharmacies.

On the project investment plans, Shahani said, "While it would not be possible to disclose exact financial data for competitive reasons, it should suffice to know that high upfront investments are needed before one can expect to break-even."

He said that although the initiative contributes a very small fraction to Novartis' overall sales, its revenue has already equalled the company's project investment costs.

The project provides healthcare access to 42 million people. Shahani added Novartis India also plans to launch some exclusive products for the rural population this year. Currently, it provides 12 therapeutic applications with about 60 SKUs and has also created ORS and zinc exclusively for rural needs.

Arogya Parivar offers various therapies in gastro-intestinal disorders, respiratory infections, TB, diabetes and gynaecology.