Cipla Health is moving on to become an FMCG company: Shivam Puri

In conversation with Adgully, Shivam Puri, CEO, Cipla Health, speaks about the journey of Prolyte ORS, the Oral Rehydration Salt formulation recommended by W.H.O. He also discusses about the growth trajectory in the last few years, the messaging of Prolyte on extending beyond traditional ORS uses in daily routines, how Prolyte is catering to an extensive consumer base through tetra packs and sachets, the marketing/ media strategy of Cipla Health, and more.

Could you take us through the journey of Prolyte and its growth trajectory in the last few years?

Cipla Health began marketing Prolyte in 2019 with 3 Ready to Drink flavours (Apple, Orange, and Lemon) and one powder flavour, primarily promoting it for gut health, diarrhea relief, and dehydration. Today, Prolyte has evolved into a lifestyle beverage for all occasions, offering 10 Ready to Drink flavours and 3 powder flavours. The brand is now positioned as a healthy, tasty, and effective beverage suitable for any occasion.

Could you shed light on the messaging of Prolyte on extending beyond traditional ORS uses to daily routines?

Till recently, the use of ORS has been restricted to the treatment of illnesses. However, the renewed feature of better taste in a variety of flavours makes it a good choice for on-the-go consumption. Prolyte’s WHO-recommended ORS formulation helps restore the body’s electrolyte balance. At the same time, its low-calorie content, range of delicious flavours, and on-the-go consumption formats make it an effective option for consumers to hydrate themselves across scenarios, right from beating the heat and preventing travel fatigue to keeping oneself energized through physical activity like workouts. This is what Prolyte’s messaging, as the #AcchaThanda option is based on, making it a great alternative to other beverages in the market that do not offer a holistic combination of optimal hydration, great taste, low calories, and convenience.

How is Prolyte catering to an extensive consumer base through tetra packs and sachets that are convenient? How is it different from other hydrating solutions in the market?

Consumers prefer health solutions that are effective and convenient to use. In this case, tetra packs and sachets are the most convenient formats for our consumers to carry along with them and consume on the go. What makes our product stand out from other beverages that are commonly consumed for hydration is its efficacy as a WHO-recommended ORS formulation and low-calorie content, while also not compromising on taste and convenience. This makes it a win-win for consumers to meet their hydration needs and preferences.

What is the current portfolio size and strengths of Prolyte? What are the unique ways it is employing to establish stronger relationships with its consumers and reach newer ones?

The overall ORS drinks market in India is worth Rs 800-Rs 1,000 crore, and we are one of the largest players in this segment. The strength of our product lies in its efficacy, delicious range of flavors, convenient consumption formats, and its low-calorie content, making it a winning combination that can seamlessly be integrated into the lives of our consumers. Our product use is not only limited to use during dehydration caused due to diarrhea but also for hydration for on-the-go situations, thereby expanding our consumer base to the hydration segment at large. We have also broadened our distribution networks to reach consumers through both traditional and modern retail channels, including Q-commerce platforms like Swiggy, Blinkit, and Zepto.

What are the recent developments and innovations at Cipla Health?

At Cipla Health, we are consistently pursuing innovation across multiple fronts and expanding our portfolio through acquisitions and in-house developments to address all consumer wellness needs. For instance, with Nicotex, we are creating an ecosystem to help smokers in their quitting journey through the launch of products like stain removal toothpaste, charcoal-activated mouthwash, and lung health tablets to address common concerns they face. For Endura Mass, we have launched Café Mocha and Kulfi flavours and will have two more exciting flavors launched later in the year. We have also ventured into new categories like care for expectant women and new mothers through MamaXpert and are also dialing up our presence in categories like personal care with products catering to both urban and semi-urban audiences.

Cipla Health is moving on to become an FMCG company with a presence across 16 categories through a wide assortment of over 22 brands.

Who is the TG of Prolyte and how has its consumer base evolved over the years?

Over the years, our consumer base has evolved to include not just those who need ORS for medical reasons, but also a broad audience seeking a healthy, low-calorie, and tasty beverage for daily hydration needs that arise during humidity, heat, physical activity, travel, or social occasions. This reflects the versatility of our product across the board and the diverse audience base that it caters to.

What is the marketing/ media mix strategy of Cipla Health and how has it evolved over the years?

We adopt a balanced media mix strategy that includes both traditional and digital platforms. The mix is adjusted based on the target audience and the product category. For example, some products like Nicotex and Endura Mass have a stronger digital focus, while others like Omnigel rely more on traditional media. Overall, the strategy has evolved to include more digital advertising, especially for products targeting younger, tech-savvy consumers, while also maintaining a strong presence in television and print for broader reach across the country.

What are the ad spends, market share of Cipla Health in 2024, and the marketing/ ad campaigns launched by it this year?

Our ad spends keep changing depending on where we can reach our consumers most effectively. It is mainly 60-65% on television and around 40% on digital.

In terms of recent campaigns, we released a TVC for Omnigel, called “Aapki Khushi Ko Kabhi Dard Ki Nazar Na Lage”. It is a refreshing approach to pain care that showcases how everyday aches and pains can disrupt life's simple joys and how Omnigel can help consumers enjoy life’s moments without interruptions.

How is Cipla Health leveraging AI, social media, and technology for Prolyte?

With social media becoming the primary source of information among consumers, we use it to build awareness about how dehydration can be easily avoided through WHO-recommended ORS, particularly Prolyte, in their hectic lifestyles. We collaborate with content creators and influencers to incorporate the use of Prolyte in their daily lives and showcase how it is the perfect hydration solution across various scenarios. Additionally, we use tech to convey our key messages compellingly to our audience. Recently, on the occasion of World ORS Day, we created a CGI video highlighting our various flavors against the backdrop of iconic city landmarks to encourage consumers to stay hydrated through their adventures across the country.

What forms the core of the creative communication process for Prolyte? What are the strategies it is employing to stay ahead of the market trends?

At the core of Prolyte’s creative communication process is our aim to educate consumers on the benefits of WHO-recommended ORS formulation as well as showcase why Prolyte is a great hydration option across the board. This is what our positioning of Prolyte as #AsliORS and #AcchaThanda is based on.

On World ORS Day recently, we launched a nationwide campaign called “WHO recommended formula nahi, toh ORS Asli nahi” to emphasize that only WHO-recommended ORS formulations like Prolyte are the gold standard for combatting dehydration. This campaign was executed through social media, Out-Of-Home hoardings, consumer and HCP awareness programs on the ground, and highlights the various benefits of Prolyte in addition to its formulation.

How was the journey of Cipla Health in 2023? What are the growth targets/ focus areas for 2024?

Cipla Health has seen strong growth, driven by its focus on consumer-centric innovation, a solid portfolio that addresses current and emerging consumer needs as well and strong distribution in core India. We crossed the Rs 1,000-crore mark in FY24 and have grown over 10x in the last 6-7 years. We are currently ranked number two in the consumer health industry. Our ambition is to be the go-to among consumers for everyday healthy living. Currently, we have 20+ brands across 16 categories in our portfolio, with 5 brands greater than 100 cr. In the next 5-7 years, we aim to have a few Rs 1,000 crore and Rs 500 crore brands and at least 9-10 brands that are greater than Rs 100 crore.

Apart from developing in-house brands, we have also made strategic acquisitions like Endura Mass and recently acquired the cosmetics and personal care distribution and marketing business of Ivia Beaute Pvt Ltd, which includes brands like Astaberry, Ikin, and Bhimsaini.

Additionally, we are planning to enter multiple segments such as sexual wellness even as we broaden our range of products and product variants in existing categories.