Johnson and Johnson’s plans for Sri Lanka

Thursday, 6 March 2014 00:44 - - {{hitsCtrl.values.hits}}

Head of Intl. Business outlines policy to grow business, local manufacturing plant a priority

Johnson & Johnson, the market leader in baby care products, was voted the number one unlisted brand of the year in Sri Lanka by Brand Finance in 2013. They have been experts in the baby care industry for over 100 years and attribute their success to the time and effort they invest in understanding their consumers – mothers and babies. "Sri Lanka’s economy has opened up after so many years of war and ethnic issues, the GDP is growing and the inflation is quite stable. This is a good sign for the country and I think this is a good opportunity for J&J to find the right opportunities for investment. In Sri Lanka where the tax on duty imported products is four to five times higher than other products, J&J products are not accessible to a lot of consumers who aspire to use them; therefore, Sri Lanka is priority when it comes to opening up a local manufacturing plant – Johnson & Johnson Head of International Business Consumer Products Division Ashok Nath Dubey" In an interview with the Daily FT during his recent visit to Sri Lanka to attend the Johnson and Johnson International Business Conference in Colombo, Ashok Nath Dubey, Head of International Business Consumer Products Division for Johnson & Johnson, expressed his views on the baby care industry at present and his plans for J&J Sri Lanka. “My duty is to see to the growth and the sustenance of J&J in the future. The countries under my purview are all developing countries and emerging markets, and there is huge potential for the growth. As such, we are constantly on the lookout for opportunities to invest in these markets. As for Sri Lanka, the economy has opened up after so many years of war and ethnic issues, the GDP is growing and the inflation is quite stable. This is a good sign for the country and I think this is a good opportunity for J&J to find the right opportunities for investment,” he said. Dubey explained that the policy for many developing countries is to develop the local industries. However, countries that do not have manufacturing facilities face challenges. For instance, in Sri Lanka where the tax on duty imported products is four to five times higher than other products, J&J products are not accessible to a lot of consumers who aspire to use them; therefore, Sri Lanka is priority when it comes to opening up a local manufacturing plant. If local manufacturing efforts prove successful, J&Jaims to target$ 20 million worth of production in Sri Lanka, by 2016 and $ 50 million dollars by 2020. 50% of this will come from the baby care category and the rest will come from skin care, oral care and women hygiene. “People buy our products because of its quality and the equity that we built over a period of time. Baby care is our core business. ‘Baby’ is all about emotions anywhere across the world we always try to connect to our consumer and make motherhood the best experience for the mother,” he said. When asked about why J&J strives to be different, Dubey said: “I have been with Johnson & Johnson for more than 20 years. We have a promise, which we call a ‘Credo’. This guides our business. In a nutshell we want to give the best we can to our consumers, doctors and all the people who are associated with our brand, we want to give back to society. It is our moral and ethical duty. We have our own value system and we don’t do anything for short-term benefits. We believe in compliance guided company and we follow each and every rule and regulation of the countries we operate in; even if it does not benefit us we will still follow them. In my opinion, our success for the past 100 years derives from that value system.”