Financial Daily from THE HINDU group of publications
Tuesday, Jan 13, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jan 13, 2004 |
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Marketing
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Strategy Ajanta wants to capture market with low-priced FMCGs Our Bureau
Chennai , Jan. 12 A LARGE market for fast-moving consumer goods, such as shampoos and soaps, remains untapped because existing products are overpriced, felt promoters of Ajanta India, part of the Ajanta Clocks group. The company aims to exploit the potential by launching products that are priced lower than established brands. "Our first consumers are people not using FMCG products," said Mr Muralidharan, Director, at a press conference here on Monday. He added that the company had designed its marketing strategy to tap people with a relatively low purchasing power. He forecast a turnover of Rs 120 crore in the current financial year. Ajanta's base toothpaste, Dento White, costs Rs 12 for a 100-gram tube. In contrast, Colgate's mass-market paste, Herbal, costs Rs 25 for a 100-gram tube. Similarly, Ajanta's shampoo, talcum powder, soap and toothbrush cost less than the same sold by Hindustan Lever and others. Ajanta's product composition does not always match that of its competitors. Its toothpaste, for instance, does not contain fluoride. The detergent base in Ajanta's shampoo is "different" from that of its competitors. Mr Muralidharan said the company was able to keep a tight check on costs by manufacturing in-house and curtailing overheads. The corporate office is located alongside the plant in Morbi, interior Gujarat. The capital for operations is sourced from internal accruals of the group, thereby, avoiding an outflow on interest payments for the moment. The common thread running through Ajanta's FMCG products is a decision to source raw materials from "100 per cent vegetable sources," said officials.
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