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Home-grown FMCG company Jyothy Laboratories, owners of the brand ‘Ujala’, is planning to expand its product portfolio in Bangladesh.
Currently, Ujala remains its flagship offering there. It was introduced in the neighbouring country some two decades back; but, the company brought onstream its own unit there some seven years back.
Other power brands (apart from Ujala) such as Exo, Margo, Henko, Pril, Maxo and non-power brands like Mr White and so on, will be introduced there over the next fiscal (FY20).
Any brand that crosses the ₹100-crore mark (and is profitable) is considered to be a ‘power brand’ by the company.
₹100-crore business
According to Ullas Kamath, Joint Managing Director, the company is looking at a ₹100-crore business from Bangladesh over the next 2-3 years.
With Ujala establishing itself there, the company is now confident of expanding its product basket there.
“Bangladesh should be a ₹100-crore business for us, if we take all the brands. But again we have to spend there regionally. We were waiting to get the Ujala brand established. We will take the other brands next year,” he told BusinessLine.
Key market
Bangladesh remains a key market for the company and currently accounts for approximately 20-25 per cent of the company’s overseas sales. Overseas sales across countries like Singapore, Malaysia, West Asia, Japan, Mauratius and so on account for approximately ₹60 crore-₹70 crore for the company. “If we can achieve the ₹100-crore turnover in the next two to three years time, then it will be viable for us. Moreover, then Bangladesh will account for close to 50 per cent of our overseas sales,” Kamath added.
Jyothy Labs currently operates in Bangladesh through a subsidiary Jyothy Kallol Bangladesh Ltd, as per its annual report. Jyothy Labs holds 75 per cent in the company.
Its current turnover from the Ujala brand in Bangladesh is at ₹15 crore. And, according to Kamath, the turnover numbers will change as new products are introduced.
The company will either add new lines to its existing facility in Bangladesh or may look to outsource products there.
“If we go there with all the brands, whatever advertising that we are doing in India, especially in the Bengali media can be replicated there. Awareness of the brand is there. And, I can leverage the distribution network for other brands,” he said.
Jyothy Labs will also look at Middle East and North Africa (MENA) region as the next big market.
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