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Next wave - FMHG to outpace traditional FMCG

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Sector talk
Forum Discription: Discussion on sectors with regard to specific matters. We will be discussing the various sectors of the economy and how they would perform. Basically a top down approach.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3013
Printed Date: 05/Apr/2025 at 7:56am


Topic: Next wave - FMHG to outpace traditional FMCG
Posted By: nav_1996
Subject: Next wave - FMHG to outpace traditional FMCG
Date Posted: 04/Oct/2010 at 4:12pm
I think this year has been stupendous for FMCG sector and most of the stocks including bid daddy HUL has moved up sharply. FMCG index has out performed index.

When I look at traditional FMCG pack it is very difficult for them to grow at a fast pace as these categories are personal care maket is well penetrated in urban and middle classes.

But when we look at health products it is different story. I guess this category is set to grow much faster pace that traditional FMCG. If I were to ask myself my consumption for toothpaste, hair care, soap and detergent would have hardly gone up. But our families may be consuming lot more nutrition supplements etc.

Growth for GSK consumer has started acclerating.

At TED we have our own favourite Zydus Wellness.

One company which stuck me was Abbott. They are aggressively pushing Pediasure in modern retail. I checked and they also own legendary brands like Brufen and Diegine (more acidity due to junk food and you need more of it). PE of 20 and growing at same pace.

Then we have Marico who are chasing diabetic with their functional foods. PE of 30 and growing at 30%.

Request TED members to suggest listed companies in this area.

Disc: I may be invested in these companies.


Replies:
Posted By: Kabootar
Date Posted: 04/Oct/2010 at 6:42pm
Any traditional medicine makers listed? Dabur India comes to mind. 

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Verbal diarrhoea! A most deadly disease.

Posted By: nav_1996
Date Posted: 04/Oct/2010 at 7:08pm
Yes. Dabur definitely fits here.

Farex and Protinex are owned by Wockhardt. They wanted to sell it to Abbott. If Abbott buys it. They will be a big player.

Posted By: bitu1978
Date Posted: 04/Oct/2010 at 9:37pm
Originally posted by nav_1996

Yes. Dabur definitely fits here.

Farex and Protinex are owned by Wockhardt. They wanted to sell it to Abbott. If Abbott buys it. They will be a big player.


Farex is famous brand but I am not sure whether kids like it . My kid is one year old and he Loves nestle cerelac but never like farex. I think Marico is also taking advantage of their Saffola brand.Their saffola rice concept is selling like hot cake. I tried saffola rice once and after that from last 3 months I am unable to buy it at my nearest shopping mall.Store manager says there is huge demand for it.

Posted By: Rehan
Date Posted: 04/Oct/2010 at 9:20am
Originally posted by nav_1996

Yes. Dabur definitely fits here.

Farex and Protinex are owned by Wockhardt. They wanted to sell it to Abbott. If Abbott buys it. They will be a big player.
 
I think Protinex is owned by pfizer untill and unless it sold it to Wockhard in the recent years

Posted By: tejas.k
Date Posted: 05/Oct/2010 at 3:41pm
Originally posted by Rehan

Originally posted by nav_1996

Yes. Dabur definitely fits here.

Farex and Protinex are owned by Wockhardt. They wanted to sell it to Abbott. If Abbott buys it. They will be a big player.
 
I think Protinex is owned by pfizer untill and unless it sold it to Wockhard in the recent years


I thought my baby was bored of nestle crelac/nestum and thought of trying something. Saw Farex kept next to cerelac in the retail store.  The date of manufacture was december 2009, whereas nestle products were new. didnt buy farex.  went and checked after a month. it was still not sold.

Posted By: nav_1996
Date Posted: 05/Oct/2010 at 3:45pm
Any inputs on Pediasure.

Posted By: bhowman
Date Posted: 05/Oct/2010 at 11:41am
.Request TED members to suggest listed companies in this area.

Disc: I may be invested in these companies.[/QUOTE]
 
 
Piramal Healthcare is hugely advertising in many of the TV channels about
SUPRACTIVE COMPLETE.
I myself bought 30 capsules .feel good.


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That which is so far is actually so near.

Posted By: navtej91
Date Posted: 05/Oct/2010 at 11:45am
Originally posted by nav_1996

Yes. Dabur definitely fits here.

Farex and Protinex are owned by Wockhardt. They wanted to sell it to Abbott. If Abbott buys it. They will be a big player.


What do u think will be the sales figures of each and growth ?

Posted By: nav_1996
Date Posted: 05/Oct/2010 at 11:57am
No idea. Don't think such numbers are available. But my guess is 20% + .

Posted By: Kabootar
Date Posted: 06/Oct/2010 at 6:45pm
It would be interesting if any ayurvedic medicine makers were listed. Himalaya healthcare is unlisted right.

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Verbal diarrhoea! A most deadly disease.

Posted By: bhowman
Date Posted: 06/Oct/2010 at 11:29am
Originally posted by Kabootar

It would be interesting if any ayurvedic medicine makers were listed. Himalaya healthcare is unlisted right.
 
There is one KERALA AYURVEDA LTD which is quoting at sixty rupees.


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That which is so far is actually so near.

Posted By: nav_1996
Date Posted: 06/Oct/2010 at 11:41am
It is too small to bet on. Dabur remains best bet though it is expensive.

Posted By: harsh_in
Date Posted: 12/Oct/2010 at 10:02pm
Hello!
I came across this post on Abbott & i thought I'll give a brief summary of their nutrition business.
Abbott are global leaders in nutrition with brands like pediasure & ensure. The same brands are also available in India albeit not all the formulations.
Abbott India has shown steady growth over the past several years. However,external consultants were brought in recently to formulate a growth plan for the next 5 years. Based on the consultants feedback, the Abbott Asia-Pac management team has given its Indian subsidiary a target of growing 25-30% every year.
There have been several brand launches from Abbott recently. Abbott is also poaching aggressively from all other pharma companies across levels.

One can look forward to good growth from all its divisions viz. primary care, critical care, nutrition & EPD. The cardio & diagnostic divisions are not included in the listed firm. However, valuation at current level is a concern


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