Distributing Health in Southeast Asia
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Mega Lifesciences PCL.
Background
Mega Lifesciences Public Company Limited (MEGA) is a manufacturer and distributor of pharmaceutical, nutritional supplements and fast-moving consumer goods.
It has a presence in 31 countries and has manufacturing facilities located in Thailand and Australia. The company is also a leading distributor in Myanmar, Vietnam and Cambodia.
Business Description
MEGA operates through three segments: Brands, Distribution, and as an Original Equipment Manufacturer (OEM). Its Brands segment operates under the name Mega We Care, which sells its own brand of nutritional supplements, prescription pharmaceutical products and OTC products.
It distributes products under the Maxxcare brand covering prescription pharmaceutical products, OTC drugs and other consumer products. Maxxcare operates in Cambodia, Vietnam and Myanmar.
The company also operates as an OEM for various products including health supplements, pharmaceuticals, herbal remedies, vitamins and minerals for its third-party customers.
MEGA is in the process of establishing its Wellness We Care Center with an investment cost of around Bt100m. The center will focus on prevention of and recuperation from chronic diseases and is expected to commence in 1Q17. Also, MEGA is entering the baby food sector after its acquisition of a natural whole foods brand and expects to bring the first product to market in late 2017.
Leadership
Mechai Viravaidya is the Chairman and an independent director of Mega Lifesciences. He has been chairman since the IPO of the company in November 2013.
Vivek Dhawan is the Chief Executive Officer and Chief Coach of the company and has been since the company was founded back in 1988. Together with his family, Mr. Dhawan owns 7% of the shares in the company. He has kept MEGA’s Profitable Growth rank above average and mostly in the top 3 for the past five years.
Check out the exclusive Business DNA Interview with Vivek Dhawan
World Class Benchmarking
MEGA’s Profitable Growth remained in the top 3. The company ranks among the best 126 of 420 medium Health Care companies globally.
Profitability is good at #3 and Growth has improved a lot since 2014 but is still just average.
It is the solid Asset utilization that drives MEGA’s Profitability. Both Sales growth and Margin change worsened in the past 12 months and lead to a fall in Growth rank.
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