The Hindu Business Line : Emami adds new products to winter care range

With the entry into glycerine soap and petroleum jelly, Emami’s main competitor in these categories is Hindustan Unilever, which markets the Pears and Vaseline brands.

Sravanthi Challapalli

Chennai, Nov. 12 Emami Ltd has entered two new personal care categories with the launch of Emami Pure Skin glycerine soap and Emami Vasocare petroleum jelly. It has also launched Sardi Ja, a range of OTC products for relief from cough and cold, which includes cough syrup, lozenges and a rub. The company has hiked ad spend slightly to build a market for these products.

These products are expected to contribute Rs 200 crore to the projected turnover of Rs 700 crore for 2008-09, Mr Aditya V. Agarwal, Director, Emami group of companies, told Business Line. With the new launches, Emami now has a complete portfolio of winter care products including its Malai Kesar Cold Cream and Boroplus creams, he said. The products have been launched in Andhra Pradesh, Tamil Nadu, Orissa, West Bengal and Gujarat.

With the entry into glycerine soap and petroleum jelly, Emami’s main competitor in these categories is Hindustan Unilever, which markets the Pears and Vaseline brands. The Rs 300-crore glycerine soap market is dominated by Pears and features some regional players as well. Emami has priced its soap at Rs 23 for a 75 gm pack. The company wants to be a dominant player in the segment and is eyeing a market share of 7 per cent to begin with.

The petroleum jelly market is estimated at Rs 125 crore. Vasocare has sought to be different and gone the herbal route by adding tulsi, aloe vera and chamomile, said Mr Agarwal. It is available in two sizes, the 10 gm pack priced at Rs 5 and the 25 gm pack at Rs 16. It has also fortified its Sardi Ja cough syrup with chyawanprash to re-energise the user, he added.

‘Spoon packs’

Emami has introduced Sona Chandi Chyawanprash, another winter care product, in small ‘spoon packs’ costing Rs 3. Not only will this eliminate the mess that consuming chyawanprash entails, but the price is mental comfort in times of slowdown, Mr Agarwal said, adding that most of their products came in small packs as well. “The company does not foresee much impact in the near future as our products are basic necessities and not feel-good ones such as hair colourant,” he said. However, the company’s trade partners such as distributors and dealers who have lost money on their investments in the share market might not be able to invest as usual in our products and therefore, we have to ensure that the turnover of our products is faster,” he added.

The company will spend Rs 70-80 crore on advertising its winter care products. Most of the advertising will be concentrated on the electronic media and on reaching 15 lakh households through below-the-line activity. The latter will include promotional activity at school, college and office. The advertising on TV is expected to break in a day or two.

Emami’s other personal care products include the over-Rs 200-crore Navaratna range of oils and talc, the Boroplus range (over Rs 100 crore) and Fair & Handsome men’s fairness cream (estimated at Rs 70-80 crore).

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