Pharmaceuticals major Johnson & Johnson (J&J) is likely to face a setback in the Indian babycare products market if the 5.5-lakh chemists agree to a request made by their patron, the All India Organisation of Chemists & Druggists (AIOCD), the largest chemists? body in the country. A limited company floated by AIOCD, the All Indian Origin Chemists and Distributors Ltd (AIOCDL), has asked its members to promote babycare products marketed by Maneesh Pharmaceuticals, for which AIOCDL is acting as a brand ambassador. Maneesh has a marketing tie-up with Disney Company to distribute the latter?s babycare products in India. The move is expected to marginally hit J&J?s revenues from babycare products. J&J had an 85% share in the Rs 1,500-crore babycare products market in India.
When contacted, Vinay Sapte, managing director, Maneesh Pharma said, ?AIOCDL has asked chemists to display our products as they are newly launched.? Sundaresan Rajagopal, general manager, sales & marketing, Maneesh Pharma, said, ?AIOCD is helping us a lot to increase our product sales. They have asked chemists to keep our babycare products too. But I?m not aware that this move will have any impact on J&J?s products.?
JS Shinde, general secretary, AIOCD, said, ?It is true that we are supporting Maneesh Pharma? products as we are working as a brand ambassador for them. We have asked our members to make available the babycare products marketed by Maneesh Pharma in chemists? shops across the country. Our move will help consumers as these babycare products are comparatively cheaper.? It?s just a distribution agreement and they have not insisted members to push the products of Maneesh Pharma, he added.
According to sources, J&J marketing officials are concerned about AIOCDL?s move to push Maneesh?s babycare products in shops. However, Anil Nayak, director, corporate communications, Johnson & Johnson, said, ?We are not aware of this development and will therefore not be able to comment.? He refused to divulge the sales figures of J&J?s babycare products in India. Queries sent to Roshini Bakshi, regional director, Emerging Markets Asia, Disney Consumer Products did not elicit any response.
In its strategic move to thwart the growth of private retail pharmacy chains, AIOCDL had last year tied up with firms such as Maneesh, Lupin and Sandoz. As per the model, companies? selected drugs will be exclusively channeled through AIOCDL warehouses to each chemist.