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With eyes set on ₹500 crore turnover by financial year 2022 only from its ‘ayurvedic portfolio’, Jyothy Laboratories intends to roll out a facewash under the ‘Margo’ brand from April. And a handwash will be a logical extension of this.
Initial launch of the facewash will be in the core regional markets of South, East and North-East India where neem-based offerings are popular. This will be followed by pan-India launches.
According to Ullas Kamath, Joint Managing Director, there is a rise in demand for ayurvedic products in the personal care space thanks to increasing focus on it by multinationals, as well as desi companies. Naturally then, Jyothy Labs would look to play in the category by extending Margo.
The company is looking at a ₹100-crore turnover over the next three years just from the facewash category, he said, adding that a good extension would be handwash.
“We thought that there is scope for Margo to get into a big category. And with facewash becoming big, we thought of getting in there,” Kamath told BusinessLine .
The company will leverage its Guwahati facility for the new offerings targeting the East and North-East market, while the Puducherry facility will be leveraged for making products for the South and West Indian markets. The Margo brand originally was owned by Calcutta Chemical Company, and changed hands to Henkel. Jyothy Labs acquired it from Henkel. The Kolkata-based brand was popular in West Bengal, Bihar and Tamil Nadu. It found acceptance in other south Indian markets such as Karnataka and Kerala.
Subsequently, it was extended to the other regions targeting the modern trade in West and North Indian markets. It was later extended to open format stores (neighbourhood stores) and pharmacy shops. Margo, according to Kamath, has witnessed a CAGR of 20 per cent. The gross margins remains in the range of 55 per cent.
Power brand
Apart from Margo, the company is also expecting its washing powder brand ‘Mr White’ — which was also acquired from Henkel — to touch ₹100 crore in revenues and thereby becoming a power brand by the end of this fiscal.
“Once the brand reaches ₹100 crore, we will look to provide it some advertisement support,” Kamath said.
‘Mr White’ is positioned in the mid-segment, competing with the likes of Rin and Tide. It has traction in regional markets such as Kerala, Andhra Pradesh. Pune, Delhi, Himachal Pradesh, Haryana and Punjab. “We see scope for extending Mr White in adjoining markets too,” he added.
The power-brand list for Jyothy Labs, which account majorly for its turnover, currently includes Ujala (fabric whitener), Maxo (mosquito coils and liquids), Exo and Pril (utensil cleaners), Henko (detergent powder, bar) and Margo (soaps).
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