New Delhi, Feb. 6
IN what appears to be a forward integration process, textile company Ginni Filaments, has charted out a foray into the FMCG segment with the launch of personal hygiene and beauty care products for children and women.
The company is setting up a plant in Gujarat to manufacture non-woven spunlace. The unit, which would be operational in six to seven months, is being set up at an estimated investment of Rs 131 crore. While majority of the produce from the facility would be exported, the balance would be used to manufacture converted products mainly cleansing cloth and facial wipes to be sold in the domestic market.
Mr Saket Jaipuria, Chief Executive Officer of Ginni Filaments, is of the belief that the market potential for converted products such as baby wipes, cleansing cloths and medical aids such as gauges and swabs is tremendous in the country. He said, "Our research reveals that the market for personal care products is worth Rs 15,000 crore and it is expected to double in the next three years, providing us with a great opportunity."
The wipes made from non-woven spunlace fabric, are "first of its kind in India," Mr Jaipuria, added.
After test marketing the product range in Chandigarh, the company plans to make them available in eight cities (including Pune) by the month of June and hopes for a nation-wide launch by end December, this year.
While its primary focus would be on retailing the wipes and cloths in the local department stores, the company also plans to get into institutional sales targeting airlines and railways.
With regard to the pricing strategy followed by the company, Mr Sanjay Srivastava, Chief Operating Officer, Ginni Filaments, said, "We are pricing a pack of 80 baby wipes for Rs 105 and are looking to generate the revenue through volume sales."
The company has ambitious plans for the future. It aims to achieve a 50 per cent market share in three years' time and is aspiring to have a Rs 50-crore turnover in the non-woven wipes segment in 2007-08.
Although Ginni is currently marketing only personal care products, it would be expanding its product range to offer home care and medical aids by the year-end, Mr Srivastava added.