Birla Cellulose trains competitors in the non-wovens business

An extensive knowledge of the non-wovens business gained over decades of operation has got Birla Cellulose fraternising with the competition.

For a company that has created a category for itself in the hygiene sector by introducing its innovative range of Kara wipes, it is now assisting young entrepreneurs to enter and establish themselves in the non-wovens industry.

A leader in viscose staple fibre, Birla Cellulose is the Aditya Birla Group’s umbrella brand for its range of cellulosic fibres. Viscose is said to have 10 times more absorbent capacity than cotton. But why is the company teaching the nuances of the trade to the competition?

Rishi Sharma, Head of Marketing, Birla Cellulose explains, “We are actively supporting entrepreneurs. There is a huge market out there. We have created a buzz, created traction in the retail space. Now we need to educate the consumer, build the understanding of the brand.”

A complex business, non-wovens need to be cut into a variety of shapes and sizes and then scaled down to become a single-use product. The latest technology has to be used to add value to products. India’s lack of technical expertise has ensured only six major players in the market, as compared to China, which has around 500 players operating as converters.

Being the industry leader, Birla Cellulose has taken the onus of driving awareness towards hygiene, one of the primary applications of non-wovens.

Though the country has witnessed incremental volume growth over the last 10 years, resulting from an increased acceptance and usage of personal hygiene products, the company decided it was time to increase the size of the pie, mainly for wipes.

Use in baby care

As most mothers know, wet wipes are a staple in baby care. From there, the market has expanded to general sanitary and cleaning products. Building on the knowledge that mothers would gladly accept wipes to clean other surfaces as well, the company decided to introduce new techniques, innovations and processes.

In the domestic arena, a market which is estimated to be ₹90 crore to ₹100 crore according to Sharma, multinational J&J commands the leadership position in the baby wipes market, with a share of around 70 per cent. The Himalaya brand has another 20 per cent market share, while Pigeon, Kara, Wipro, and diaper brands like Mamy Pako Pants, Pampers and Huggies make up for the rest of the market.

“The logical extension from wipes would be to get into diapers, but we are not into that space at all,” said Sharma. “For us to be in wipes was a strategic call. We wanted to develop a category, and since there were no other big players in this category, we decided to train people.”

Showing the way

Stating that a lot of people around the country want to develop new brands and get into the hygiene business, Sharma said most don't know how. “In Delhi, we had a guy who wanted to get into the facewash, bodywash, handwash segment. We asked him, why not get into body wipes,” said Sharma.

Birla Cellulose provided the research and development, support options and solutions to that entrepreneur. “It was his own property, and we helped launch his brand in the market,” Sharma said, adding that the company is not afraid of competition.

“Birla Cellulose will always benefit from competition. For a brand like Kara, the market is so huge that everyone can grow. When people start using a certain brand of wet wipes and as they get conscious, they will automatically come to Kara,” he said, adding, “We have to be ahead of the curve. There is no other big brand in the country. Though most support for entrepreneur is usually collaborative, in some cases we do help out for free.”

The company also engages in contract manufacturing, customising products, and also conducts enterprise sales. With an aim to build the category and assist young entrepreneurs, Birla Cellulose is working closely with individuals and assisting them with industry knowledge and technical inputs. Its factories in Coimbatore, Ludhiana and Baroda also provide help to entrepreneurs in the region.

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