Having sold over 6,000 units of its super premium soap Mysore Sandal Millennium in Karnataka in a month, Karnataka Soaps and Detergents launched the Rs 720-soap in Tamil Nadu with confidence.
There is good demand for luxury products in the country as people want to pamper themselves, according to Mr D.N. Vasanth Kumar, General Manager – Marketing. “We are especially targeting the super rich, business and working people.”
The Millennium soap is a product of a three-year research – it retains skin elasticity and prevents dehydration, said Mr Kumar. It is manufactured at the company's plant in Bangalore. Millennium, which contains vegetable oils, conditioners, moisturisers, Vitamin E, jojoba-mimosa, glycerine and milk protein, said the company. It also protects against radiation and acts as a natural sunscreen, the company claims. It comes in an SKU of 150 gram.
The company is bullish about Millennium in Tamil Nadu as the State is the biggest market for Karnataka Soaps' flagship brand Mysore Sandal. Karnataka and Andhra Pradesh come in next. The three states account for 75 per cent of the company's Rs 260 crore turnover.
The soap market in the country is estimated at Rs 20,000 crore. The premium segment (above Rs 20), in which the traditional Mysore Sandal is present, is pegged at Rs 3,000 crore. Millennium falls in the super premium category, a segment wherein there are very few players such as Lush, a UK-based handmade cosmetics brand.
Karnataka Soaps will take Millennium to Andhra Pradesh next, followed by the metros. “We will later look at exporting it to Singapore, Gulf, Malaysia and the US. We want Millennium to be a quality international brand from India,” said Mr Kumar.
Karnataka Soaps' turnover is Rs 260 crore. It plans to launch liquid soap soon.
Meanwhile, the case pertaining to a legal notice Karnataka Soaps had slapped against cricketer Mahendra Singh Dhoni in 2008 for “unfulfilled” commitments as brand ambassador remains unresolved till date.
The company had roped in the Indian captain to endorse the flagship brand Mysore Sandal soap in 2006. It cancelled the contract in 2008 alleging that Dhoni gave the company days only three days in a year for endorsements and not 10 days as per the original agreement. Karnataka Soaps also sought damages running into several crores.
The Karnataka High Court had appointed Mr Justice R. Gururajan as an arbitrator. But arbitration has dragged on for years now.