Mumbai, Dec 6: British multinational Glaxo has zeroed in on two new business areas -e-business and a thrust in the over-the-counter pharmaceuticals segment - as part of the revamp of its sales and marketing function in India. Glaxo India's official spokesperson said that Anil Matai will take charge as executive vice-president, new business areas (which includes rural marketing), effective January 1, 2000. Matai will also directly assist managing director HR Khushrokhan in Glaxo's growth plans on the mergers and acquisitions (M&A) and licensing deals front,Details on Glaxo India's e-business plans could not be got, though globally, the British giant is associated (though there is no direct product promotion involved) with sites like iVillage.com (a US-based women's network).
Analysts do not expect immediate gains from these nascent new business areas but add that they hold significant potential in the short to medium term. "Glaxo's move is obviously aimed at cashing in on the the first mover advantage, though two of the proposed new areas are yet to have the necessary laws in place in India. Brands like Zinetac (anti-ulcer) and Piriton (cough expectorant) have tremendous OTC potential," an analyst said.
On December 2, Glaxo had made official its plans to devolve the company's three trading faces into seven business units. The existing trading faces- Glaxo Pharmaceuticals, Glaxo Allenburys and Burroughs Wellcome-will be reshaped into seven distinct units. VVS Kashyap will take charge as executive vice-president, pharmaceutical sales and marketing, of all the seven business units. The entire exercise would involve trimming, rationalisation and reallocation of the product portfolio and brands like Anovate, Macraberin and Otina eye drops may face the axe. The restructuring effort has also indirectly necessitated the bifurcation of the company's medical research efforts into -- medical advisory services and other functions like regulatory affairs, clinical pharmacology, pharmacovigilance and medical informatics.
Glaxo's spokesperson said that medical advisory services will include advice on promotional activities, preparation of product monographs, medical training of field personnel and this unit will report to Kashyap. Medical director N Cooverji will continue to head the "other functions" part of medical research activities.
Analysts add that this bifurcation is significant given India's commitment on the product patents front. "Medical advisory services is closely associated with marketing. The splitting of medical activities is important given the prospects of Glaxo India undertaking clinical trials of international standards," they said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.