Reverse impact on Indian FMCG firm. from Egypt protest ..

India's trade with Egypt stands disrupted and companies such as Dabur and Marico have suspended their operations in the strife-torn African country.

   Ten Indian firms, including Wipro, Ranbaxy, IFFCO, Dabur and Marico, have their wholly-owned subsidiaries in different parts of Egypt.

Two major FMCG companies - Dabur and Marico-- said they have shut down their plants in Egypt temporally, while Emami is keeping a close watch on the situation. 

Personal Care Adds On Top Gear

Toilet soaps, tooth pastes and fairness creams were the most advertised categories under the personal care sector on TV during January-September 2010, and with 30 per cent share of the total ad pie in this sector, Hindustan Unilever was the top advertiser, followed by Reckitt Benckiser and Colgate Palmolive.

The top 10 advertisers contributed to 86 per cent share of the overall personal care/personal hygiene sector TV ad pie during the period.
According to AdEx Analysis of TAM Media Research, in overall TV advertising, this sector witnessed 48 per cent growth during this period, over the corresponding period last year.


This category was followed by the services (30 per cent growth) and food and beverages (18 per cent) sectors, in that order.
During the period, overall TV ad volumes saw growth of 24 per cent over that in January-September 2009, and Hindustan Unilever was among the top 10 advertisers.
In the services sector advertising, which grew by 30 per cent during the period under consideration, DTH providers occupied the first position, with Tata Sky topping the list. Real estate and Internet services sectors were the second and third biggest advertisers in this sector.


The food and beverages sector also grew by 18 per cent, with aerated soft drinks category accounting for the most, followed by milk beverages and chocolates.


Over 65 per cent of the total ad pie in this segment came from the top 10 advertisers. Coca Cola was the top advertiser in this sector, followed by Cadbury India and PepsiCo.

Godrej Consumer to buy Genteel and Swastik

 GCPL (Godrej Consumer Products) has decided to buy two domestic brands – Genteel (a liquid detergent) and Swastik (soaps) for an undisclosed amount.

complements

Mr Adi Godrej, Chairman, GCPL, said, “The two brands fit well into our portfolio and should improve our profitability in soaps and liquid detergents by nearly Rs 8 crore every year. Besides it should also improve our EPS and market capitalisation by nearly Rs 300 crore.”

With plans of increasing its market shares in both soaps and liquid detergents, Genteel and Swastik Shikakai would complement GCPL's Shikakai soap brand and Ezee brand of liquid detergents. 

Heritage brands

Godrej Shikakai has a 50 per cent share in the category while Swastik Shikakai would add to the market share with its 20 per cent.

Ezee also dominates the category with a75 per cent share and Genteel would add its additional 12 per cent in the same category.

 Mr A. Mahendran, MD, GCPL said, “The acquisition extends our leadership in the speciality liquid detergents category and consolidates our number two position in the personal wash category in India. Genteel and Swastik are household brands in India with a legacy of over fifty years of serving Indian consumers. We look forward to capitalising on the synergies available by adding these heritage brands to our portfolio and helping these brands to their next phase of growth.''

However, GCPL has decided to focus on the acquired soap brands rather than trying to revive dormant soap brands such as Evita and Ganga in its portfolio.

  

Dabur Nepal launches 1st hair oil especially for men

        Dabur Nepal launches 1st hair oil especially for men, signs Nepali Rockstar Nima Rumba as brand ambassador. 

    Dabur Nepal Pvt. Ltd — a subsidiary of Dabur India Ltd. announced the launch of a new hair oil brand, PROstyle Dandruff Control Hair Oil, the 1st ever hair oil developed especially for men.

        PROstyle is a quick-absorbing light hair oil that controls dandruff naturally without any harmful chemicals. It contains the best natural dandruff control ingredients like Lemon, peppermint and rosemary. These natural ingredients also make hair soft and smooth. PROstyle Dandruff Control Hair Oil has a refreshing macho perfume to keep you stylish, cool and confident.

        Dabur Nepal’s Head of Marketing Abhaya Pd. Gorkhalee said Dabur Nepal has developed PROstyle Dandruff Control Hair Oil exclusively for the Nepalese consumers based on local consumer insights. “PROstyle is perhaps the 1st product developed by any FMCG multinational company to cater to the needs of discerning Nepalese consumers,” he added.

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.