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Vinay Kamath

Chennai , Sept. 2

ECOF Industries Pvt Ltd, maker of Sabena, a household name in the South for its dish scouring powder, plans to enter the laundry detergents market with the launch of a premium detergent bar before Diwali. By mid-2004, Ecof also plans to enter the highly competitive detergent powder business where it will take on the likes of HLL, P&G and Henkel Spic.

Mr G. Parimelazhagan, Director, Sales & Logistics, of the Rs 65-crore Ecof Industries, told Business Line that since the 40-year-old Sabena brand is now present in all variants of the dishwash category with its powder, bar and dishwash liquid, the company now wants to move into the laundry space where it intends to leverage the Sabena distribution network and goodwill. However, in a clean break from its blockbuster brand, Ecof will not use the Sabena brand or an endorsement for its detergent bar, but will create a new brand.

"So far, we've been in the high-volume, low-margin business with Sabena powder; the detergents business will give us volume as well as value," says Mr Parimelazhagan. The premium space that Ecof is entering with its planned detergent brand is occupied by brands such as Rin Supreme, Henko and Ariel. A 250 gm bar of Rin Supreme retails for Rs 16.50 while Ariel sells for Rs 19 in the Chennai market. The four southern States account for approximately 12,000 tonnes a month of detergents, both popular and premium offerings. The brand will be launched in the South to begin with. The company sees a media spend of Rs 3.5 crore once the new brand is launched.

Meanwhile, for its flagship dish scouring brand, Sabena, Ecof plans to enter new territories in Bihar, Jharkhand and West Bengal. It is already retailing in Orissa. The brand, which claims a market share of 65 per cent in the South, sells 4,800 tonnes of Sabena a month. One kg of powder sells for Rs 10. The agenda, says Mr Parimelazhagan, is to grow the market for dishwash bars and liquid. Ecof sells around 350 tonnes of the bar a month where its main competitor is HLL's Vim bar. A prominent city retailer, who sells several tonnes of Sabena a month, points out that Sabena dishwash powder is so popular that the brand has become generic and fakes abound. "It becomes difficult to extend the brand to other products, so it makes sense for the company to launch a brand without any Sabena association," he says. He points out that the dishwash powder is a brand consumers want, but the company will find that detergents is a tough market, though its distribution network should stand it in good stead. Sabena is retailed directly through 75,000 outlets in the South.

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