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Initiative/ Project Description:

In 2006, Novartis leadership sought to develop ways to serve the four billion customers globally lacking access to medicine and health care. After evaluation of several markets, they focused on rural India based on its market size and need. The company launched Arogya Parivar (Hindi for "healthy family") in 2007. The initiative offers a portfolio of affordable and appropriate medicines tailored to common regional health issues, selling them in smaller package sizes to make them financially accessible to daily wage earners; delivers these products via a new network of suppliers employing local sales staff, increasing local knowledge and trust and making inventory management more efficient; provides health education in local settings; and partners with microfinance organizations to improve healthcare infrastructure and access to capital for patients.

Social Results:

Arogya Parivar operates hundreds of local cells (each reaching approximately 80 villages), which together serve 72 million people. In 2012, nearly 2.5 million Indians participated in the program's health education offerings, and almost 200,000 received treatment at the program's health camps. In states where Arogya Parivar operates, the percentage of Indians visiting doctors has nearly tripled, rising from 3 to 11%.

Business Results:

Arogya Parivar became profitable after 31 months of operation--far faster than initial estimates of five to seven years. The program's sales have increased 25-fold since 2007. Novartis has incorporated the lessons learned from Arogya Parivar's launch and is expanding the model to other markets, including Vietnam, Indonesia, and Kenya.