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Purvita Chatterjee

MUMBAI, Dec. 16

MARICO Industries Ltd has decided to stretch the franchise of its three biggest brands into new FMCG segments. Parachute, Shanti Amla and Mediker are the brands chosen for the company's foray into new categories, including the skin care market which Marico has been eyeing lately.

Speaking to Business Line, Mr Arvind Mediratta, Head of Marketing, Nature Care Division, Marico Industries, said, "We have targeted three of our brands in terms of stretching them into new categories in FMCG." Apart from Parachute, which already dominates the coconut hair oil category, Shanti Amla has a 13 per cent volume share and enjoys second position in the amla segment, after Dabur Amla. Mediker already has a monopoly in the anti-lice segment.

In the recent past, Marico has stretched the franchise of its acquired anti-lice hair shampoo brand into an anti-lice oil. "Mediker will always be a problem-solving brand and we may consider extending it to other categories," states Mr Mediratta.

Considering Marico has also started its Kaya brand of clinics for various skin-related problems such as acne and scars, Mediker might possibly be extended to these areas in the future.

In fact, Marico has high hopes for the brand. Adds Mr Mediratta, "In spite of the market not growing in a big way, we expect the Mediker brand franchise to double its growth rate to 20 per cent after the launch of its oil."

The Rs 11-crore Mediker brand does not expect its oil extension to eat into the shares of its shampoo in spite of offering the same benefits. Explains Mr Mediratta, "Oil and shampoo are two different segments. Those seeking quick and convenient solutions resort to a shampoo while there are those who perceive shampoos to be harsh and don't want to wash their hair too often, to whom the oil is more appealing."

Marico has also decided to make Haryana the first lice-free state in India by the year 2010. In this initiative, it is partnering Scholl Health Annual Report Programme (SHARP), a New Delhi-based NGO committed to safeguarding the health of school children. With coconut oil as the base and ingredients such as neem and camphor, Marico is hoping its anti-lice oil will build the franchise of Mediker significantly. It has already earmarked an investment of Rs 9 crore till March 2004 for the franchise.

Adds Mr Mediratta, "We expect Mediker oil to become as big a brand as the shampoo within the first year itself, considering oil is a much bigger market than shampoo."

The company has also decided to do away with variants which do not generate volumes. For instance, it recently withdrew the anti-dandruff oil from Parachute since it did not generate the expected volumes. However, the Rs 300-crore Parachute has made a success of its other variant, Parachute Jasmine, which has already registered a turnover of Rs 23 crore, according to the company.

Oil of Malabar, a low-volume brand, used to fight the Parachute clones in the market, was acquired by Marico to be a price warrior in the largely unbranded oil market.

In spite of it being a low-profile brand, Marico recently took the trouble to relaunch its Rs 25-crore Hair & Care brand of non-stick oil to provide protection from sun pollution and dirt.

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