The company is also banking on its dermatology portfolio â a segment where it dominates the market with brands such as Betnovate, T-Bact and Tenovate â to pull in as well.
GSK reported operating margins (Ebitda margins) of 23.6% in FY22, benefiting from demand for fever and pain medications, antibiotics and vitamins.
In an interview with ET, GSK India Managing Director Sridhar Venkatesh said products with high brand value and trust gained significantly during the pandemic, and they still retained market share.
“For us, the proof of the pudding is what happens after Covid… And I think overall we’ve been able to maintain that (market) share,” Sridhar said. “So if we gained more than 5% – it’s not like we lost more than 5% (post Covid) – we kind of kept 3.5% to 4% of that and then we got increased (from there)…”
According to Sridhar, the full impact of the WPI-induced 8-9% price hike will be felt over the next two quarters.
He said the company has entered into long-term contracts with API vendors to cushion cost inflation, but he expects cost inflation in FY23 to be about 2 to 3%. Covid gave a struggling GSK a boost after it shut down its famous antacid brand Zinetac, sold its new manufacturing plant in Vemgal, Karnataka, at a huge loss, and transferred its consumer brands to a another group company as part of an internal restructuring.