Financial Daily from THE HINDU group of publications
Monday, Dec 20, 2004
Financial Daily from THE HINDU group of publications Monday, Dec 20, 2004 |
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Corporate
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New Projects CavinKare to begin operations in Bangladesh, Indonesia soon Our Bureau
Chennai , Dec. 19 CAVINKARE Pvt Ltd, the Chennai-based company that markets a range of hair care, skin care and personal care products, will shortly begin operations in Bangladesh and Indonesia, through wholly owned subsidiaries. In Bangladesh, CavinKare has set up a company named CavinKare Bangladesh and has tied up with a local company to manufacture its products on contract basis. The products are expected to be launched in the second week of January 2005, according to Mr C.K. Ranganathan, Chairman and Managing Director, CavinKare Pvt Ltd. He said CavinKare had tied up with a Bangladesh company called Ethical Drugs and Pharmaceuticals, which will manufacture the products for CavinKare. Initially, CavinKare would launch Chik, Nyle and Fairever. Talking to reporters shortly after the company inaugurated its research centre, Mr Ranganathan said the high import duties in Bangladesh necessitated local manufacture of the products. He said CavinKare was in the process of setting up a subsidiary in Indonesia and hoped to launch its products there in two months. For Indonesia, the company would import the products from India as the import duties were not high. Over time, the company hoped to have product development facilities in the countries it operated in. It would also go in for local professionals, as they would have a better understanding of the market. The investment would be only on brand building and advertising. CavinKare exports its products to Sri Lanka, Nepal, West Asia, Malaysia, Singapore and some African countries. Exports, which contributed about Rs 12 crore to the Rs 296-crore turnover of the company in 2003-04, would grow by 50 per cent this year, Mr Ranganathan said. The company would also expand its foods and ready to eat business. It hoped to tap the non-resident Indian population in the US and UK for its ready-to-eat products, which would be suitably packed to meet local requirements. The research and development centre, spread over 30,000 sq ft., has been set up at a cost of Rs 8 crore and brings under one roof the research that was being done by the company in different facilities. CavinKare, according to a company press release, spends about 2 per cent of revenues on research and development. Mr Ranganathan said the company would invest about Rs 15 crore over the next three years in equipment for the R&D centre. He said the company would like to go in for backward integration for chemicals so that it had total control over costs. Inaugurating the facility, Dr R.A. Mashelkar, Director-General, Council for Scientific and Industrial Research, asked the company to indulge in process innovations also and not confine itself to product innovation. He suggested that CavinKare could leverage the strengths of central laboratories such as the Central Leather Research Institute. According to Mr K.S. Ramesh, Executive Director, CavinKare, the R&D centre has about 20 laboratories and can accommodate 100 scientific personnel. It will carry out research in areas such as skin care, hair care, colour cosmetics, soaps and detergents, microbiology, biochemistry, cell biology, nutraceuticals, pickles and spices, and ready-to-eat food.
More Stories on : New Projects | Cosmetics
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