The Hindu Business Line : Emami looks to enter hair colourant, shampoo segments

On the roll
The company is conducting various below-the-line campaigns to create awareness about the hair dye product.
Looking at capturing 5-6 per cent of the Rs 145-crore domestic cold cream market by 2007-08

New Delhi , Dec. 26

The Kolkata-based Rs 1,000-crore Emami Group, which recently entered the hair care category with its hair dyes, is looking at strengthening its position in the segment with the introduction of colourants, shampoos and potions.

"We recently forayed into the hair dye segment with Mr Black and Mrs Black in the powder and leave-on categories with an initial investment of Rs 10 crore-12 crore, targeted separately at men and women, since both have different hair care requirements. While we are still launching the hair dyes in the western and southern parts of the country, we are also looking at entering the hair colourant, shampoo and potion segments by the second half of 2007 as all these products are yet in the R&D stage," said Ms Priti A. Sureka, Director (Hair Care and New Business), Emami Group.

Hair dye market

The hair dyes, priced at Rs 8 for a sachet and Rs 35 for a 100 gm pack, have been targeted at SEC B and C. Besides advertising on television, the company is conducting various below-the-line campaigns to create awareness about the product, with a marketing spend of about Rs 10 crore for 2007-08.

For its hair colourants, Ms Sureka said that SEC A and B would be the target audience. While the domestic hair dye market stands at Rs 425 -Rs450 crore, Emami plans to capture 10-12 per cent share by 2007-08 and have its hair care business touch Rs 20 crore by next year.

Cold cream

Emami is also planning to launch its Malai and Kesar Cold Cream, currently being test-marketed in Kolkata, across the country by next winter. Priced at Rs 23 for 30 gm and Rs 5 for 8 gm, it is being pitched against Pond's from the Hindustan Lever stable. "We are looking at capturing 5-6 per cent of the Rs 145-crore domestic cold cream market by 2007-08," Ms Sureka said.

Under the Rs 800-crore domestic fairness skincare segment, the company launched two extensions — Fair and Ageless for those over 30 years and Fair and Teens for teenagers. "We already had Naturally Fair and the Rs 42-crore Fair and Handsome under the fairness segment. But we felt a need to further segment the category since people of different age groups have varied skin requirements," said Mr Mohan Goenka, Director, Emami Group.

While the company has earmarked a marketing spend of Rs 6 crore for Fair and Ageless and Rs 3 crore for Fair and Teens, it hopes to turn the former into a Rs 8-crore brand and the latter into a Rs 3-crore brand by the financial year 2006-07.

Emami also has plans to roll out an entire range of products under the Rs 450 - Rs 500 crore baby care segment, including talcum powder, shampoo, soap, cream and lotion with an investment of Rs 20 crore -30 crore over the next 3-5 years.

On its recently launched OTC drugs category, Mr Aditya Agarwal, Director, Emami Group, said, " We already have 10 OTC healthcare products in our portfolio and plan to launch another 30 with an investment of about Rs 40 crore in the next 3-5 years."

The babycare business is slated to rake in about Rs 30 crore, while the OTC health care business is expected to clock around Rs 50 crore in the next three years.

Emami also plans to clock a turnover of Rs 600 crore from its FMCG business, Rs 500 crore from its paper business and Rs 125 crore from its hospital in Kolkata in the year 2006-07.

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