Tata Tea re-launches Premium brand in Pune

Tata Global Beverages Limited (TGBL) today announced the re-launch of its flagship Tata Tea Premium brand in Pune. According to Tata Tea, Premium is currently the largest packet tea brand in the country accounting for an all India value share of 8 per cent and it dominates several states in the North, East and Western parts of the country. Earlier, the relaunch has took place in Bhubaneswar and Lucknow.

       The brand was launched in 1985 in India with the introduction of the poly pack. In 2003 it became the country’s largest brand. Tata Tea holds brands like Premium, Gold, Agni and Life under its Umbrella.

  Speaking on the occasion of the re-launch of Tata Tea Premium, Sushant Dash, vice president, marketing, TGBL said, "The intent of this re-launch is to take this brand further in this journey. What differentiates Tata Tea Premium from the others in the market is a unique blend which gives a cup of tea other brands find very difficult to match. Tata tea Premium commands a value share of 5.6 per cent in Maharashtra, which is a highly fragmented market with a large number of local players operating. 

    Maharashtra is one of the biggest tea markets in the country and the Tata Tea brand has a very good equity in this market hence Maharashtra is one of the focus states for Tata Global Beverages."

Tata Tea Premium sells two variants in the state. Tata Tea Premium Dust (red pack) has a strong presence in the southern and Marathwada regions of Maharashtra. The Leaf variant (green pack) sells in Mumbai, Pune and certain other parts of Maharashtra.

  He added that the last two years have been difficult for the tea category with tea prices in the auctions going up rapidly. This combined with inflation on sugar and milk has actually resulted in a drop in consumption per household for the category as a whole

Dabur expands OTC portfolio by launching 'Nutrigo'

FMCG firm Dabur India, which has been selling herbal and ayurvedic over-the-counter products, today announced its entry into the modern healthcare market with the launch of health supplement brand 'Nutrigo'. 

Dabur, that has been focussing on natural OTC products such as Dabur Chywanprash, Pudin Hara and Hajmola, has for the first time launched a vitamin and mineral health supplement. 

"It is a logical progression for us to enter into the modern OTC market as consumer trends are changing and there is more demand for the modern OTC products," Dabur India Category Head (Health Supplements) Praveen Jaipuriar told PTI. 

At present, Dabur has significant presence in the traditional health-care market with its product range contributing Rs 1,000 crore to the company's turnover. 

"The modern OTC market is estimated to be around Rs 15,000 crore, growing at 15 per cent. Going forward, we expect this category to be one of the key drivers for our future growth," he said. 

Under the Nutrigo brand, the company has launched different product ranges targeting men and women. 

To begin with, the products has been rolled out in metros and key towns with pan-India plans by this year end. A marketing campaign to support the launch will be launched by mid December. 

According to analysts with the launch of this brand Dabur aims to grow its OTC segment. 

"Dabur is a diversified FMCG company. Even in the past it has entered into new categories like juices. Growing the OTC segment has been Dabur's focus for sometime now," Enam Securities Analyst Hemant B Patel said

For Rs 6-lakh cr growth, FMCG sector must tap the ‘many Indias'

With increasing pressure on their margins, fast-moving consumer goods (FMCG) companies such as Godrej Consumer Products (GCPL) are considering taking a price hike on products like soaps. The cost of palm oil, a key raw material for making toilet soap, has risen by 30-35 % in one quarter. 

A GCPL official said that a decision on hiking soap prices has been taken by the company and it be implemented in the next couple of months. Although market leader Hindustan Unilever (HUL) has not yet passed on the cost escalation to consumers, industry analysts said it was only a matter of time before the company takes a price increase in toilet soaps. On the other hand, Wipro Consumer Care & Lighting has already raised the consumer price of Santoor by 3-5 %, while other players are waiting for the market leader to blink first. 

"We are waiting for the market leader to signal a price increase. We would then follow suit," said an industry official from a homegrown company . "Given the upward cycle in commodity prices, the industry has no choice but to sacrifice on volume growth and go in for price rise," the official added. After a good run with volumes, FMCG companies can now rely on value growth to return to the sector. 

According to an industry analyst, FMCG companies managed to maintain their margins in the previous quarter by adopting various costcutting measures. However, with shooting commodity costs, it would be difficult for companies to maintain margins now. But, will volume growth really get impacted? Given the growth in income levels among other positive factors, the industry hopes that volumes would continue to grow. 

Kellogg’s becomes first FMCG brand to join E-Retail association

Kellogg’s has announced that it has become the first FMCG brand to secure membership with IMRG, the UK’s leading industry association for the e-retail industry.

IMRG is widely recognised as the authoritative voice for e-commerce. It said that Kellogg’s will now benefit from working closely with other members of IMRG through regular workshops and forums at which expert speakers from industry leaders share best practice and their experiences across multiple online areas.

Kellogg’s joins a host of global names including Google, Tesco and Microsoft by becoming a member and Paul Cretier, who leads Kellogg’s online sales activity, believes the cereal manufacturer can learn a great deal from fellow members. “We’re delighted to have become a member of the IMRG. We’re the first FMCG brand to join which demonstrates our desire to be ahead of the game in terms of online retail,” Cretier said.

“The world is turning digital and consumers are spending more and more online. We need to follow our shoppers and ensure that we are available for them whenever and wherever they expect us to be.” 

Kellogg’s becomes first FMCG brand to join E-Retail association

Kellogg’s has announced that it has become the first FMCG brand to secure membership with IMRG, the UK’s leading industry association for the e-retail industry.

IMRG is widely recognised as the authoritative voice for e-commerce. It said that Kellogg’s will now benefit from working closely with other members of IMRG through regular workshops and forums at which expert speakers from industry leaders share best practice and their experiences across multiple online areas.

Kellogg’s joins a host of global names including Google, Tesco and Microsoft by becoming a member and Paul Cretier, who leads Kellogg’s online sales activity, believes the cereal manufacturer can learn a great deal from fellow members. “We’re delighted to have become a member of the IMRG. We’re the first FMCG brand to join which demonstrates our desire to be ahead of the game in terms of online retail,” Cretier said.

“The world is turning digital and consumers are spending more and more online. We need to follow our shoppers and ensure that we are available for them whenever and wherever they expect us to be.” 

Dabur acquires Namaste Group for $100 million

         FMCG major Dabur India on Tuesday said it has acquired US-based personal care firm Namaste Laboratories LLC and its three subsidiary companies for $100 million (about Rs 451 crore).

  "This acquisition is in line with our strategy to build a global presence in the international FMCG market," Dabur India chairman Anand Burman said.

    The company said the acquisition of Namaste Laboratories LLC and its three subsidiary companies -- Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm has been done through its US-based subsidiary Dermoviva Skin Essentials.

The firm said the acquisition marks Dabur's entry into the fast-growing $1.5-billion ethnic hair care products market in the US, Europe and Africa.

"Namaste Group will also serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and add to Dabur's already strong presence in Africa," Burman said.

The transaction is expected to be completed by the end of 2010, subject to regulatory approvals in the US, the company said.

Founded in 1996, Namaste Laboratories markets a portfolio of products under organic root stimulator brands addressing major hair concerns. It is present in the US, and in several other countries in Africa, Middle East, Europe and Caribbean Region of North America.

This is the second overseas acquisition of the company this year. In September, the company had completed acquisition of Turkish personal care firm Hobi Kozmetik Group for $69 million (about Rs 324 crore) to strengthen its presence in the Middle East and North Africa.

Shares of Dabur India were trading at Rs 97.85 on the BSE in the afternoon trade up 0.72 per cent from its previous close.

P&G, Marico race to buy Paras Pharma

           There’s a new twist to the ongoing race to acquire the Rs 500-crore Paras Pharmaceuticals in domestic markets. Even as Emami is leading the race for Paras, Procter & Gamble Hygiene and Health Care (PGHHCL) and Marico have joined the fray. At present, Paras Pharmaceuticals’ OTC (over-the-counter) brands include Moov, D’Cold Total, Krack and Dermi Cool among others. Incidentally, pharma majors such as Cipla and Piramal Healthcare are also interested in acquiring Paras Pharma’s OTC brands to extend their product portfolio.The race for Paras Pharma is hotting up with new companies jumping into the fray.

“With increasing competition, the valuations of the Paras Pharma has gone up to Rs 3,250 crore in the last few days. Despite the high valuation of Paras, many companies are keen to acquire the company’s OTC brands,” said an industry analyst based in Mumbai. Meanwhile, FMCG major Jyothi Laboratories is in advanced talks with Bengal-based Safechem Industries(makers of Safed) to acquire its detergent brands. In essence, the Rs 1.2- lakh crore Indian FMCG industry will witness a spate of acquisitions in the next few months.

According to industry analysts, PGHHCL has been looking at acquisition opportunities in consumer health care space for quite some time.” Paras Pharma’s OITC brands will have a strategic fit in P&G health care portfolio which includes Vicks,” said an analyst in Mumbai. 

When contacted by FE, Tapan Buch, chief financial officer, P&G India, said: “As per our company policy, we do not comment on strategy or future plans.” Meanwhile, Emami a key contender for Paras Pharma has just got its board’s approval to raise Rs 5,000 crore through debt and equity dilution-a clear signal that Emami is looking at a big ticket acquisition in the near future. In fact, the company has recently moved a special resolution in this regard. After its acquisition of Zandu Phrama two years ago, Emami is now keen to acquire controlling stake in Paras Pharma. Aditiya Agarwal, director of Emami, who is currently holidaying in Thailand, was reluctant to comment on his company acquisition plans.

Yet another FMCG major Marico is also in talks with Paras Pharma to acquire its OTC brands. Like P&G, Marico has been scouting for acuqitions in domestic market for quite some time. Chaitanya Deshmukh, head of Mergers &Acquisitions, Marico said, “As you might expect, Marico cannot either confirm or deny queries on this.”