In 2014 Mr Han Ah Kuan, executive director of Haw Par’s Healthcare Division, was pleased with what had been achieved since he took charge in March 1991. The division’s revenues had grown substantially between 1991 and 2013. Operating profit margins were healthy and the return on assets employed quite acceptable. The Tiger Balm business, which was the division’s jewel in the crown, had been revitalized and Tiger Balm products were distributed in 74 countries in 2013. New products aimed at younger consumers had contributed significantly to the growth of the business. The business might have been even larger if it had not been for the regulatory constraints that it faced. Because its products were considered to be pharmaceutical products, new ones had to be approved before they could be launched in each country, and this had led to significant lags in their introduction in many countries. There were also rules restricting where the products could be sold and what was permissible for advertising and promotion. Mr Han’s key priority going forward was to continue to grow the business without sacrificing profitability, and he knew that identifying and implementing the right growth option would be critical to the future success of Haw Par’s healthcare business.
