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Kräuter expanding into organic baby foods, maternity wear


“We are in the process of setting up a facility in Noida and will be making an investment to the tune of Rs 50 crore.”


Bindu D. Menon

New Delhi, Aug. 13

Kräuter, pioneer in India to offer herbal baby care products, is looking at expanding its retail footprint by branching into categories such as maternity wear and organic baby foods.

“Herbal baby products are a rage in the West. However, in India it is yet to make a splash. We are highly bullish on the growth of this segment, especially among the aspirational buyers,” Mr Ajit Chauhan, the Director of Kräuter, told Business Line.

Kräuter baby personal care range, launched under the Tenderils brand, include mosquito repellent cream, teething gel, body wash, massage oil, bath oil, body lotion, nourishing cream, nappy rash cream and body talc.

Kräuter is a part of the $350-million AKC (Amity) Group, which has interests in biotechnology, pharmaceuticals and petrochemicals.

The Rs 1,200-crore domestic baby care market in India is growing at the rate of 20 to 25 per cent. Currently, the company has over 70 stock keeping units in the childcare and mother care segments.

“We hope to launch at least 150 products in the next two years,” he said, adding that sales are good, especially in the new format stores.

The herbal baby care products are priced 10 to 15 per cent higher than non-herbal products. Kräuter is also eyeing the export market in a big way. “We already export our products to countries such as the US, Australia, West Asia, Singapore and Africa. This will be scaled up in a major way.”

New facility

Mr Chauhan said the company is setting up a facility to help its expansion plans. “We are in the process of setting up a facility in Noida and will be making an investment to the tune of Rs 50 crore for the facility as well as new product developments.”

It is tying up with a Thailand-based company to launch 50 products in the next six months. Kräuter is looking at co-branding arrangement with tie-ups with a German company.

On entering the organic baby food business, Mr Chauhan said these products will be introduced soon. The company has tied up with retail majors — such as Spencer’s, Big Bazaar, Apollo Pharmacy, Lifestyle, Heritage Stores — and pharma retail chains to expand its reach.

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