Sunday, April 16, 2006

Emami sinks its teeth into oral care !!

Article from Economic Times

Emami, the Kolkata-based personal care and cosmetics major, is marking its foray into the oral care segment by launching a toothpowder called Nirog.

“We are making investments of Rs 6 crore for marketing and R&D for the tooth powder and two other products in the wellness segment — a blood purification syrup and a uterine tonic,” said Aditya Aggarwal, MD, Emami group.

The market size of the toothpowder category is Rs 250 crore approximately, of which, Emami is targeting a 10% market share in three years. It plans to grow its presence in this category to Rs 5 crore in the first year of launch. If successful with the test launch of the tooth powder — priced between Rs 12 and Rs 15 for a 50-gm pack — the company will introduce a tooth paste in the next 2-3 months. “All three categories (tooth powder, blood purification syrup and uterine tonic) are not very big, but with marketing initiatives, we plan to grow the categories along with our brands,” said Mr Aggarwal. Emami’s other brands include Boroplus antiseptic cream, Navratna oil, Fair and Handsome and Sona Chandi Chyawanprash. “The company has been growing steadily in its personal care category and faces competition from multi-national as well as domestic players. Its foray into the oral care category will help it to grow, provided the products are marketed in the right way,” said an FMCG analyst.

Analysis

I really dont understand why Emami in first place not gone for toothpaste. If Emami's strategy is to be a regional player and target the rural India, it makes lot of sense. So then it will be in the league of Dabur Red Tooth powder.

But overall i feel this is not the appropriate category to enter into at this point of time, as the growth rate os bleak and doesnt look promosing.

But it makes huge sense to enter blood purification syrup, as there are not many players known and if Emami can create a brand for itself in this category, they can reap benefits.

It looks as if Emami is getting desperate to get into any product category. No offense. I wish Emami huge success.

1 Comments:

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October 02, 2009 6:13 PM  

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