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Monday, Nov 22, 2004

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Mahamaza to sell own brands on the Web

Sindhu J. Bhattacharya

New Delhi , Nov. 21

ONE would have thought the persistent downturn in the fast moving consumer goods (FMCG) market would keep newcomers out of this business.

But it appears that unviable and low margins at the retailing end of the FMCG business has spurred e-commerce venture `www.mahamaza.com' to enter this highly competitive market with its own personal care products. The catch? The products will only be available through the e-commerce route, and not in the local kirana shop.

"We have launched six personal care products under brand name MZ, including a shampoo, moisturiser, conditioner, face cream and scrubs. These products will be available only by placing an order on the Internet at the Mahamaza Web site and we have decided not to place them in the normal retail channel," the CEO, Mr Vishal Anand, told Business Line.

He said the company tried to sell personal care products of well-known brands through the e-commerce route but realised that margins entrepreneurs got from this route were not adequate.

Currently, Mahamaza, which works as a virtual kiosk, is outsourcing the new products from two Delhi-based distributors and expects sales between Rs 25-30 crore in 2005-06 from this product line.

Mr Anand said creation of an independent brand for the FMCG business would mean more leverage for each entrepreneur currently on the rolls of Mahamaza.

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