Navigating Brand Equity: A Case on Mankind Pharma’s OTC Business Restructuring Strategy¹

In October 2024, Mankind Pharma, a leading Indian pharmaceutical firm recognized for its mass-market offerings, revealed its decision to transfer its over-the-counter (OTC) division to a wholly owned subsidiary, Mankind Consumer Products Pvt. Ltd. (MCPPL), via a slump sale transaction (Pharma, 2024). This move represented a pivotal moment in the company’s growth strategy, as it aimed to strengthen its foothold in the expanding consumer healthcare sector while distinguishing its primary pharmaceutical identity from its fast-moving consumer goods (FMCG)-focused over- the-counter (OTC) lineup. Under the leadership of Mr. Rajeev Juneja, Vice Chairman and Managing Director, Mankind Pharma has experienced rapid growth by providing affordable and accessible healthcare solutions with a strong presence in the domestic market. Mankind Pharma has developed many brands, including ‘Manforce’, ‘Prega News’, ‘HealthOK’, and ‘Gas-O-Fast’, which have enjoyed high recognition. Thus, to leverage this, the company aimed to capitalize on its consumer momentum by restructuring its business model. However, the aggressive branding strategy employed for OTC products posed challenges, notably a public controversy surrounding its ‘HealthOK’ multivitamin campaign, which drew criticism from the ‘All-India Organization of Chemists and Druggists’ (AIOCD). Mr. Juneja faced a critical decision: Should Mankind intensify its aggressive marketing and rapid expansion of the OTC brand portfolio, or should it adjust its positioning to mitigate reputational risks and safeguard long-term brand equity?