• Published: 29 Apr 2013 at 13.04  Newspaper section: Asia focus

http://www.bangkokpost.com/business/news/347564/first-mover-advantage

It has been 18 years since a Thailand-based company took a step that almost no one else dared make. Its decision to enter the then-closed economy of Myanmar has since paid off handsomely for Mega Lifesciences.

Newcomers to Myanmar are seeking Mega’s expertise, says Girish Wadhwa, managing director for the country.

Mega today derives about one-third of its revenues from Myanmar, and is in an excellent position to profit from the economic opening of the country and the rising purchasing power of its people.

Best known for manufacturing and marketing the highly successful Mega We Care line of vitamin supplements, the company also distributes pharmaceuticals, supplements and consumer goods of other global brands in many emerging markets.

In Myanmar, where it has nearly a two-decade head start over others, Mega stands to benefit from its established distribution and marketing network across the country. That network has contacts with thousands of small family-run shops, and the ability to scale up to serve larger retail outlets as they open.

Mega started operations in Thailand around 1983 to produce soft capsules for pharmaceuticals and supplements under its own brand and to supply to others, according to CEO Vivek Dhawan. A decade later, it started thinking about growing beyond its home turf, and its first targets were in Myanmar, Vietnam and Cambodia.

Consumer goods distribution is now a big part of Mega’s business.

Twelve years after it set up the business in Thailand, it established a new company in Myanmar to distribute not only pharmaceuticals and vitamins but also consumer products.

Mega’s business expansion strategy has been to focus on developing countries, starting small in markets that are underserved, and enjoying the outcome of growth and its decision to be the first to enter these markets. Today it has operations in 21 countries, mainly in Southeast and Central Asia but also in five countries in Africa, as well as Australia, Ukraine and Peru.

Mr Dhawan admits that running a business in Myanmar at a time when the country was isolated from the rest of the world, with a market much smaller than it is today, was a major challenge for the company.

“The picture of Myanmar over the past decades is still fresh in my mind. It was difficult to travel from a place to another. Electricity blackouts were common,” he recalls. “And if I wanted to make a phone call when I stayed at a hotel, I had to inform the hotel officer in advance. So, when they could get connected, they would inform me, which it could take place even at 2 or 3 in the morning.

“But I didn’t think this to be a problem. We chose to go to a developing country like Myanmar when only a few investors would do a similar thing. So we had to admit that we would face tougher times before we could reap the benefits from what we had invested.

“When we entered Myanmar, we knew that the market was very small. Professionals in the distribution business were few. But we believed that Myanmar would grow for sure. The country would change in the future. And now you can see that everyone wants to go to Myanmar. So, at that time we thought that we had an opportunity to grow there.”

Mega was right. The company has enjoyed 10-15% growth every year, even after the 1997 economic crisis in Asia, as the Myanmar market was still small. Pharmaceutical and supplement sales have done well and even outpaced the development of the healthcare system. This is partly because people who want to have good health but face limitations in access to healthcare services choose to rely on supplements.

Apart from Myanmar, Mega also holds a large share of the supplements market in Thailand where the overall pharmaceutical market is worth US$4 billion, compared with $400 million in Myanmar and $1.2 billion in Vietnam.

“I’ve never thought that we made a wrong decision when we decided to enter Myanmar,” says Mr Dhawan. “We chose to go to a developing country, so it would take time before we would see the fruits of our investments.”

Mega generated revenues of 7 billion baht in 2012, one-third of which came from Myanmar. The company expects to see that portion increase in the near future as Myanmar’s economy is growing more rapidly than in the past years.

Dhawan: Early years were tough

Despite the bright future in Myanmar, Mega so far has no plan to set up a manufacturing plant in the country. Thailand remains its major production, and Australia is its second home for manufacturing. The company has also invested in research and development in Thailand.

Girish Wadhwa, managing director for Myanmar for Mega, said the idea to diversify into distribution arose when the company could not find any partners to do this business, so it decided to handle distribution itself.

Apart from this, the company realised that distribution was a problem faced by most other manufacturers who were looking to enter Myanmar, so a business opportunity was born from necessity.

Mr Wadhwa recalls that the Myanmar market when he first went there was very unlike the current one as there were few foreign investors, with the exception of some who had been in the country prior to the political upheaval of 1988. The subsequent sanctions imposed on the military regime scared a lot of the investors out of the country, and a few years the 1997 Asian financial crisis that began in Thailand sent a lot of other foreign investors packing.

The biggest challenge for Mega during those difficult years was managing currency wisely. It had to reduce cash exposure to the market in order to prevent losses from exchange-rate volatility.

As the Myanmar market was still small, Mega decided to remain there. As a result, it became the country’s largest distributor of pharmaceuticals, vitamins and supplements, and one of the leading distributors of consumer products.

In the healthcare segment, Mega handles the distribution of many brands, including Pfizer and Glaxo SmithKline. Nestle food products and Osotspa baby-care products are clients that have stayed with Mega for 15 and 10 years, respectively.

As existing clients such as Osotspa make plans to introduce more products to Myanmar’s growing consumer market, business opportunities for Mega will multiply.

Since Myanmar’s new quasi-civilian government began opening the economy two years ago, many companies have been looking to market their products here. Some want to negotiate business partnerships with Mega to tap into its local knowledge. It’s good to have more clients, but Mr Wadhwa cautions that major change may not come overnight.

For consumer product companies, he said, it takes time to set up manufacturing plants in Myanmar and it could be two to three years before they can start production.

“We’re also selective. We have to talk with companies that want us to be their distributor about their investment and marketing plans in Myanmar. We want to know that they have visions to grow in this country in the long term before we can cooperate with them,” said Mr Wadhwa.

As well, while the economy of Myanmar is improving, the amount of money in local people’s pockets has not increased dramatically. Industrial development and skilled job creation need to be addressed and implemented. Otherwise, the market will remain small for some foreign companies, which may decide not to enter the country at this stage.

“The fundamentals of Myanmar are strong,” says Mr Wadhwa. “It has abundant natural resources like natural gas, forests and water. How the country can grow money from these resources is the government’s job. And I think everyone want to support Myanmar.

“The challenge for foreign investors is not the attitude of Myanmar consumers, but affordability. Their pockets are still small. In the shopping mall, the average basket size is smaller than those in other countries. People do not go out for shopping, but for experiencing the ambience of the mall. So, the government should implement policies that increase the amount of money people have.”

Applications are invited from the candidates who meet the following criteria.
Education: MBA (Marketing) or Equivalent
Work Experience: At least 10 years of experience in Marketing and Selling of FMCG products
Age limit: Not more than 40 years old
Gender: Male
Nationality: Indian
______________________________________________________________________________
At MEGA
We care for the CUSTOMER -the doctor, the retailer & YOU.
We Care for “Human Wellness”; our first objective is to help people stay healthy.
Our values are based on Truth, Trust, Respect and Freedom.
Our Way of life provides a learning environment wherein you change before you are forced to and help to build a Company that will live beyond each of us. We create value by marketing and selling medicines in developing countries. With two world class manufacturing facilities in Thailand and one in Australia, Mega operates over 20 countries employing 3600 colleagues.
Mega We care and Maxxcare are the two divisions of Mega Lifesciences employing more than 3600 colleagues. Mega We care, with two world class manufacturing facilities in Thailand and one in Australia, is involved in marketing and selling medicines for human wellness in more than 20 countries.
Maxxcare is the distribution division of Mega Lifesciences with strong presence in Myanmar, Vietnam and Cambodia.
At Mega you will drive your future and the future of this Company.

As a Business Unit Manager you will motivate and drive marketing & sales team to achieve planned goals.

You will have a flair to influence customers through strategic thinking and process a strong business acumen.

Applications are invited from the candidates who meet the following criteria.
Education: Science Graduate with MBA (B. Pharmacy candidates with MBA preferred)
Work Experience: A person with 10+ years of experience in Pharmaceutical Marketing and Sales among which, marketing experience of OTC brands preferred
Age limit: 35
Gender: Male
The candidate may be currently based in Vietnam or ready to relocate.
_________________________________________________________________
At MEGA
We care for the CUSTOMER -the doctor, the retailer & YOU.
We Care for “Human Wellness”; our first objective is to help people stay healthy.
Our values are based on Truth, Trust, Respect and Freedom.
Our Way of life provides a learning environment wherein you change before you are forced to and help to build a Company that will live beyond each of us.
We create value by marketing and selling medicines in developing countries.
With two world class manufacturing facilities in Thailand and one in Australia, Mega operates over 20 countries employing 3600 colleagues.
At Mega you will drive your future and the future of this Company.

Mega brings to life what Demosthenes, the Greek orator said, “Small opportunities are often the beginning of great enterprises

Mega’s entrepreneurial energy has been the fuel for its growth from a soft-gel manufacturer to a global life sciences company. One of the most important enablers of building an innovation culture is the license to take calculated risks, some of which may end up in failure; and Mega with its history in getting into markets where others fear to tread, truly embodies this spirit. My conversations with Vivek and rest of his team, consistently brought out this culture of allowing people to take ownership of the businesses they run, and doing what is right for the customers and the market.

Akshay Mehra
Principal Consultant
Innosight , Singapore
http://www.innosight.com

It was a pure joy to work with Mega. I have spoken for more than 1500 companies in the last 12+ years in over 45 countries.
I was very impressed with the focus on innovation, with the unusually big focus on learning from other thought leader and the big diversity of backgrounds of the people who attended the event.

My latest book is called “One World. One Company.” and it tells the story of how some of the best companies in the world are using innovation, curiosity of the world and diverse backgrounds to create “Truly Global Companies

Mega fits perfectly into the definition of a Truly Global Company. Had I known about them earlier I would have included them as a case study in my book. I am convinced many companies can learn a lot from Mega.

Fredrik Härén
Fredrik Härén is an author and speaker on business creativity. He runs the company www.interesting.org. and is based in Singapore. Last year he was invited to speak in 23 countries.
www.interesting.org/

So impressed with the work that Mega is doing and with the quality of the team that CEO Vivek Dhawan has put together.  It appears to me that Mega’s leadership has been using the principles of relational coordination to build connections within and across the regional teams and with the local stakeholders they serve – all toward the shared goal of promoting greater health and wellness with greater efficiency

Dr. Jody Hoffer Gittell
Best selling author of The South West Airlines Way.
Professor, Brandeis University, Heller School
Executive Director, Relational Coordination Research Collaborative
http://rcrc.brandeis.edu/
http://www.jodyhoffergittell.info/

As a Wellness Champion, you will
- Develop and execute innovative and impactful wellness activities aimed at ensuring Mega colleague are engaged in continual improvement of their personal health;
- Train, educate and create health awareness among employees; and
- Work closely with Business Heads to create next generation-work environment that will promote employee wellbeing.

Applications are invited from the candidates who meet the following criteria.
Education: Science Graduate in Education, Public Health, Health Communication or in related fields
Qualifications: Ability to communicate effectively with excellent oral and written communication skills; ability to facilitate meeting, speak publicly, and serve as Champion for strategic goals; ability to display flexibility and creativity in problem solving; and good command in English
Age limit: 35
Gender: Male/Female
Nationality: Thai
Location: Mega Lifesciences, Ample Tower, Bangna.
____________________________________________________________________________
At MEGA
We care for the CUSTOMER -the doctor, the retailer & YOU.
We Care for “Human Wellness”; our first objective is to help people stay healthy.
Our values are based on Truth, Trust, Respect and Freedom.
Our Way of life provides a learning environment wherein you change before you are forced to and help to build a Company that will live beyond each of us.
We create value by marketing and selling medicines in developing countries.
With two world class manufacturing facilities in Thailand and one in Australia, Mega operates over 20 countries employing 3600 colleagues.
At Mega you will drive your future and the future of this Company.

HR Generalist will work on
- Various human resource projects to drive business excellence
- Develop innovative and unconventional HR initiatives for improving performance, and
- Support HCD Manager and Director on training and development projects.
Applications are invited from the candidates who meet the following criteria.
Education: BBA in HR or Bachelor’s degree in related fields
Work Experience: 3-5 years of experience in Human Resource
Age limit: 35
Gender: Male/Female
Nationality: Thai
Location: Mega Lifesciences, Ample Tower, Bangna.
___________________________________________________________________________
At MEGA
We care for the CUSTOMER -the doctor, the retailer & YOU.
We Care for “Human Wellness”; our first objective is to help people stay healthy.
Our values are based on Truth, Trust, Respect and Freedom.
Our Way of life provides a learning environment wherein you change before you are forced to and help to build a Company that will live beyond each of us.
We create value by marketing and selling medicines in developing countries.
With two world class manufacturing facilities in Thailand and one in Australia, Mega operates over 20 countries employing 3600 colleagues.
At Mega you will drive your future and the future of this Company.

Special moment, special Event at 12 am on 12 – 12 – 2012

Mega Acquires”Eugica” from DHG Pharmaceuticals Viet Nam

Mega Lifesciences (Mega We care) acquired ‘Eugica”, a leading Brand in the Cough, Cold,Flu segment, from DHG Pharmaceuticals Viet Nam.

Mega we care will further promote the brand in Viet Nam and expand Eugica to other countries where it operates.

The article below can also be accessed at the following link.
http://www.vir.com.vn/news/business/eugica-swallowed-up-by-dhg.html

Eugica swallowed up by DHG
Vietnam Investment Review | vir.com.vn | Dec 15, 2012 11:31 am

Eugica, a famous medicinal brand in Vietnam, has been acquired by a Thailand-backed firm from Hau Giang Pharmaceutical.

Vivek Dhawan, CEO of Mega Lifesciences Thailand Company (Mega Wecare), told VIR that the acquisition was a deal following the commercial contract recently signed between the firm and the Hau Giang Pharmaceutical, known by the ticker DHG on the Ho Chi Minh Stock Exchange.

Mega Lifesciences became legal owners of Eugica, a natural herbal that treats cough and flu, on December 12, 2012 . Under terms of the deal, Mega Wecare assumes product marketing to inbound and outbound customers, while DHG is the partner of Mega We care on manufacturing Eugica product in Vietnam.

“This partnership aims to combine the strength of DHG on the manufacturing sector and the strength of the Mega We care in the field of branding and marketing strategy together to grow Eugica product up to a new range,” said Dhawan.

Dhawan emphasized that Mega We care is first developing Eugica brand in Vietnam, then will expand to 25 countries throughout its global distribution system with the aim to position the natural product with good quality in Vietnam and many places in the world’s map.

Pham Thi Viet Nga, chairman of DHG said that firstly she did not want to put the brand on sale.

However, after understanding more about Mega We Care’s experience in the pharmaceutical sector in more than 30 countries, she believed that Mega We Care is the perfect strategy marketer of Eugica product in Vietnam with the achievement of growth target at least 20 per cent per year since 2013.

Eugica is a combination of natural herbs containing essential oils such as peppermint, cajeput, country borage, ginger, etc. Eugica, based on a folk remedy for cough and the flu, has been made available in forms such as capsules, syrup, tube, candy in order to meet diverse needs from the elderly to children. Eugica has been recognized as a market leader with steady growth.

Related news in Vietnameese can be accessed at the following links:

http://taichinh.vnexpress.net/tin-tuc/doanh-nghiep/2012/12/dhg-ban-thuong-hieu-eugica-cho-doi-tac-thai-lan-25968/
http://www.thesaigontimes.vn/Home/doanhnghiep/chuyenlaman/88679/Nhuong-thuong-hieu-Eugica-cho-nuoc-ngoai.html
http://tinnhanhchungkhoan.vn/GL/N/CIIAJJ/dhg-ban-thuong-hieu-eugica-cho-doi-tac-thai-lan.html

Hien Thanh Pham, Group Product Manager , Vietnam