The Hindu Business Line : CavinKare aims to double turnover in three years

CavinKare aims to double its turnover to Rs 1,000 crore in three years. Announcing this to a team of journalists who were on a familiarity trip to the company's green field facility in Haridwar (Uttaranchal) last week, Mr C.K. Ranganathan, Chairman and Managing Director, said the shift in CavinKare's earlier strategy of third-party manufacturing to own facility is a step in that direction.

All these years, the company outsourced its products to contract manufacturers. It invested Rs 70 crore in the new facility which kick started commercial production recently. "It's a high point in CavinKare's growth curve. Apart from capacity expansion to meet the increasing demand, it is to ensure better quality control, consistent and timely supply and more logistic cost efficiency," he said.

According to Mr Ranganathan, this would also help the Chennai-based FMCG major gain a firm footing in the Northern market and improve the brand visibility across the country.

The company at present has a range of products from cosmetics to pickles in its portfolio. It, with shampoos under three brands (Chik, Nyle and Meera), is a dominant player in the market. While `Chik' is the second largest selling shampoo brand in the country with 22 per cent market share, Nyle is a leader in the herbal shampoo category. CavinKare's fairness cream `Fairever' is among the top brands in the market with 8.5 per cent share. Its Meera is the market leader in the herbal hair wash powder category.

The 5,000-tonne capacity unit manufactures hair care products (shampoos, hair wash powders and hair dyes) and skin care products such as lotions and moisturisers under the brand Nyle, fairness cream (Fairever); talc and deodorants under the Spinz brand.

CavinKare will also foray into the hair colour segment both in the powder (for the mass market) and cream (for the upmarket) formats. "We will also launch more products and brands that are relevant to modern retail outlets in the months to come," he unfolded the blueprint for growth.

While it plans to extend its hair dye brand Indica to the proposed hair colour powder, the cream format "will come under a new brand name," Mr Ranganathan said.

Talking about the company's saloon brands LimeLite (upmarket) and Green Trends (mass market), he said currently both the brands are present in Chennai, Bangalore and Delhi and "we are planning to expand our foot print to other cities soon."

The company, which is on the prowl to acquire brands in the food and cosmetics segments with a war chest of Rs 200 crore, is doing well in the food business too. Its pickles brand Chinni's is reported to have seen 50 per cent growth last year. "In fact it has outperformed Ruchi (another pickles brand from the company)," the company said.

CavinKare's food business has three brands — Ruchi, Chinni's and Health Plus. While the brand Ruchi has pickles and gulab jamoon mix, Chinni's has pickles, vermicelli and masalas. Health Plus is a relatively new brand under which the company sells dates and peanut candies.

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