Financial Daily from THE HINDU group of publications
Tuesday, Apr 04, 2006
Financial Daily from THE HINDU group of publications Tuesday, Apr 04, 2006 |
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Marketing
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Strategy Corporate - Overseas Investments CavinKare to ramp up overseas presence Nina Varghese
Chennai , April 3 CavinKare Pvt Ltd, the Chennai-based fast moving consumer goods company, plans to aggressively ramp up its presence in overseas markets and explore new markets in African countries and Pakistan. Last year, the company set up subsidiaries in Bangladesh and Indonesia to tap the potential of these markets. Mr C.K. Ranganathan, Chairman & Managing Director, CavinKare Pvt Ltd, said the company was evolving into an Indian multinational and decided to get into these markets, as there was a huge opportunity there. He said in Indonesia, for instance, per capita consumption of shampoo is high and penetration is almost 98 per cent. Indonesia is a large market for lotions and creams. The only players in these markets are multinationals such as Unilever and P&G. Mr Ranganathan said the product offering would be adapted to local taste and culture. To start with the company's herbal products will not be available in these markets. The other cosmetics will be manufactured in India and exported to these countries. The company has established dedicated distribution networks in Sri Lanka, Nepal, Malaysia, Singapore and the Gulf countries. He said the company had also started exporting food products to the US.
To acquire food brand
Mr Ranganathan said CavinKare would be looking to acquire a ready-to-eat health food brand to add to its foods portfolio. It would think of going in for an initial public offer, at that point, if the acquisition warrants it. The company has a range of masalas, ready mixes and a health food range He said the company recently test marketed Tex toilet cleaner in Tamil Nadu, which had in the first two months, according to A.C. Nielsen, garnered a market share of two per cent. In the retail beauty salon business, the company has two brands - Green Trends and Limelite. The company plans to open two Limelite salons in Delhi soon, he said. Talking about celebrity endorsements, Mr Ranganathan said CavinKare plans to rope in some Hindi film actors to endorse the company's products. Test cricketer Irfan Pathan has been signed on as a brand ambassador. CavinKare is targeting a turnover of Rs 725 crore in 2006-07 compared to Rs 570 crore in the last fiscal.
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