Rajnish Wellness Ltd Management Discussions.

Company at a glance

Rajnish wellness limited (rwl) was incorporated in the year 2015 and is primarily into the business of branding and marketing of sexual wellness and ayurvedic personal care products. The company markets and advertises various sexual wellness products of its portfolio under their own flagship brand playwin.

Playwin is one of the rapidly growing brands catering to a niche segment of sexual wellness. The company also has an upper edge in the personal care market as we have an entire product portfolio for sexual wellness which would lead to higher customer base for the company.

Rwl has been focused on developing its brand and has proved mettle in the states of maharashtra,

Karnataka and odisha, where they had started off. The company also recently commenced distribution in bihar, uttar pradesh, delhi, haryana, west bengal and punjab.

The company has developed a strong network of more than 10,000 distributors across india where the products are sold through 118,000 retail stores. Rwls competitive pricing also gives the company an advantage in tier i, ii and iii markets.

We follow an asset-light model and all our products are manufactured by gmp compliant manufacturers.

The products in the portfolio are fda approved and have cleared all the necessary compliances.

With the experience and expertise of promoters, we are strategically building the brand which helps the company targeting the majority of its audience along with cost savings.

The current strategy of the company is to expand and deepen store presence in the states where it has recently entered. The focus will be on creating extensive demand for its brands and emphasize on creating the highest recall value.

Year gone by

This year rwl became a public limited company and the shares were listed on the bombay stock exchange in july 2018. The company raised inr ~119.81mn through the issuance of fresh equity shares at a price of inr 95 per share. The money raised through ipo was used to fund the working capital requirement for entering new states of the country, secondly for branding and marketing purposes and lastly as general corporate expenses. The company had a phenomenal year due to launches their brands in the new states of north india and excelled in the existing states of maharashtra, karnataka and odisha. The brand playwin was well accepted by the consumers and we recorded incremental sales in fy19. Rwl launched a new brand rajnish lotion which is a remedy for itching, on a pilot basis in maharashtra and observed good demand for the same. The total revenues for the financial year 2019 stood at inr 419.6 mn, ebitda at inr 68 mn, net profit at inr 42.3 mn.

In this financial year, the revenue for playwin capsules grew by 74%, contributing to inr 180 mn and playwin condoms contributed 19% to the topline.

Historical financial graphs:

Product portfolio

Playwin is the flagship brand of the company and it caters to the sexual wellness segment.

The company focuses a lot on developing its brand and penetrating new markets with it. The brand has established itself in the states of maharashtra, karnataka and odisha and is now exploring several new states. Playwin contributes highest to the total revenues of the company

Our product portfolio consists of contraceptives, sexual enhancement supplements, personal lubricants, personal and healthcare products. Rwl is the only company who has developed an entire basket of ayurvedic sexual wellness and personal care products.all the products are fda approved and have relevant certifications.

The products are carefully formulated so that it can be suitable for every person, even a person suffering from lifestyle diseases such as blood pressure and diabetes can consume it.

Marketing and branding

Rwl has expertise in strategic advertising and marketing which would help in developing and establishing a brand. With strategic branding and marketing campaigns, the company has created a unique identity for its products which would be imprinted in the minds of their target audience.

While strategizing marketing campaigns, rwl takes utmost care of the aspects like the advantages and usage of the products, price of the products, audience, the places where products are available, the cost of advertisement and the sales potential through the advertisement campaign. With rigorous efforts for branding and marketing the products, the company has by far been successful in creating demand in the states where the products are sold.

Rwl follows a 360 degree strategy where advertising of playwin brand are on several platforms such as print media, social media, websites, public transport systems, hoardings and banners. The company also organises awareness campaigns for sexual wellness, in malls and shopping centre which helps in our brand awareness. Company also sponsors fashion shows and events which enhances the brands visibility. Every marketing expenditure is strategized based on the number of audiences targeted. The differentiating factor about the marketing and advertising is the experience and expertise of rwls promoter mr. Rajnish, the company has been efficiently developing the brand and penetrating different markets all across india. The company hasalso set up in-house multi-linguistic customer care, to guide the customers for any kind of queries regarding the availability,dosage or consumption of the products which would lead to generating potential loyal customers for the company. The company not only focusses on tier i cities but also in tier ii and iii cities.

Lotion ad on railway platform

Sales and distribution

The strength of the brand lies in the distribution network of the company.

Distribution primarily deals with ensuring that the products are made available to the stores where the company has its presence. Rwl has strengthened its network by adding, 10,000+ distributors and have a store presence of more than 1,18,000 retail stores currently.the company focusses on increasing the distribution channel for the brands so that products can reach out to maximum stores across the states. We follow a simple strategy of taking up one region and penetrating it to the optimum level which helps stability, growth and recognition for the companys brand.

With the increased efforts on brand building and marketing, the cost of sales and distribution have also decreased and going forward the brand would be commanding better margins, as it grows.

Rwl also have their own field force, who actively visit every medical and ayurvedic store where the products are sold. This exercise is carried out to check feedbacks, recall value and the demand for products.

The company holds a dominant position in the states of maharashtra, karnataka and odisha and recently have expanded its geographical reach in other states like uttar pradesh, bihar, delhi, jharkhand, madhya pradesh, uttarakhand, haryana and west bengal.

Rwl focusses on strategizing its marketing plans in these states and establish a rich base for the brands which are dedicated to wellness through ayurveda.