J K Drugs & Pharma's branded formulations business has been bleeding. It's marketing set-up resembles a headless hunter, successful formulations were merely converted into a pilot plant for the generics business, and the allocation of overheads were skewed.

Says JK Drugs & Pharma, joint managing director, VP Singhania: ``Interlink has suggested re-orientation through the creation of three independent strategic business units (SBUs): manufacturing, research & development, and marketing.'' Within the branded formulations division, the consultancy has drawn out plans for better brand management, sales management and the overall cost effectiveness of operations, he added.

Interlink Healthcare Consultancy managing director RB Smarta says: ``Thenew business design is expected to improve efficiencies and increase accountability. We have also suggested certain productivity-related changes in marketing.''

The organisation has also seen high personnel turnover, essentially among the field staff-often characteristic of a rudderless ship-and the company is now in the process of selecting a chief for its marketing operations.Smarta's team-consisting of team leader Ruth D'Souza and six others-has now got down to the nitty gritty and clearly, the brand building exercise will need more than mere superficial polishing. The consultancy's key recommendations include: weed out older brands; follow a disease-management model wherein the company offers the entire gamut of products prescribed for select disease groups like diabetes, vaccines, infections etc; the launch of new divisions possibly in the area of oncology for improved focus; strengthening existing segments like non-steroidal anti-inflammatory drugs (NSAIDs), anti-histamines and gastro-intestinals vianew launches; innovative delivery systems; and sustained release dosage forms.

Interlink has also stressed the need for a reallocation of territories for the marketing force without a reduction in the headcount (JK Drugs, Smarta points out, believes in effective redeployment rather than retrenchment). Smarta has also outlined plans for in-licensing deals, alliances and acquisitions as growth tools.

J K Drugs & Pharma has since commenced implementation of most of these `practical and implementable' measures and the benefits have begun percolating.

Says Singhania: ``The tangible benefits at this stage include an enhancement in brand image and a definite viability in operations.'' Intangibles, he adds, were development of skills of both the sales and marketing personnel.Smarta says that the efforts have already facilitated the streamlining of collections, an enhancement in accountability and the Delhi-based JK Drugs & Pharma may even improve its financials this fiscal. But, both Singhania and Smarta couldstill have miles to go before they achieve the real thing: Turning JK Drugs & Pharma into one of the top ten profitable companies in India.