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Dabur, CavinKare see growth bubbling in shampoos

Our Bureau

Chennai, March 12

The Rs 2,200-crore market for shampoos is losing foam, but smaller players in the market such as

Dabur India and CavinKare have still registered sizzling growth rates.

According to industry data, while value growth achieved by the industry in the first nine months of the financial year 2009-10 slowed down to 9.3 per cent compared with the 15.2 per cent growth

recorded in the comparable period of the last year, Dabur, with a growth of 19.4 per cent in the ninemonths of 2009-10 outpaced market growth, while CavinKare, with brands such as Chik and

Meera, too registered a 11 per cent growth. Market leader Hindustan Unilever's growth inshampoos this fiscal was, however, slower than the market at 7.8 per cent.

In fact, Johnny-come-lately brands from ITC such as Fiama di Wills, Vivel and Superia, with a

growth rate of 10.5 per cent have outpaced category growth in the first nine months of this fiscal.ITC's brands also carved out a two per cent share of the market.

Dabur's COO, Consumer Care, Mr V.S. Sitaram, says that the company's brands have seen 20-30 per cent growth rates for the fourth year in a row. ³We have stuck close to our strategy of offering

shampoos which are natural products. Plus we added more variants to our Vatika range ² earlier we had only two variants but added root strengthening and hair fall control shampoos.´

Vatika also had a packaging makeover and extended the brand to hair oil as well, which Mr

Sitaram says made it a complete hair care brand. ³Lots of brands talk about being natural andherbal but when it comes to Dabur there is more credibility in the market because of our strong

heritage and consumers accept that message from us,´ he adds.

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Hit by food inflation

CavinKare's Executive Director, Mr Ramesh Viswanathan, says the slower growth in the shampoomarket this fiscal was due to the spiralling food inflation, which impinged on disposable incomes,

as well as the delayed monsoons last year. The company's brands still grew better than the last year ± growth at 11 per cent the first three quarters of this fiscal bettered the 8.1 per value growth in the

comparable period last year (see table).

Given the lion's share of the market HUL has, even though its growth was slower than the others,its value share of the market only dropped marginally from 46 per cent to 45.4 per cent. Dabur

increased share from 5.6 per cent to 6.2 per cent, while CavinKare too saw a marginal increase inshare from 11.1 per cent to 11.2 per cent.

The Rs 2,200-crore market for shampoos also includes Rs 600 crore of anti-dandruff shampoos.

Related Stories: Preity Zinta to endorse Dabur¶s anti-dandruff range

CavinKare sets up own distribution arm

More Stories on : Retailing | Outlook | Personal Products

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y Product Manager - Retail Saloon Products y CavinKare Private Limited

y Responsible for new product development and brand identity. Responsible for influencing the short and long term strategic direction and ensuring execution and

evaluation of brand plans through the brand teams and functional interfaces like adagencies, market research agencies, supply chain team, R&D team and sales team.

Undersy tanding consumers, deriving and leveraging consumer insights to develop new products.

This position is responsible developing entry strategy for the professional segment, new product development, for creating and implementing marketing (more)

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CavinKare to distribute Adidas, Jovan products30 Jan 2009

The story has been read 505 times.

Chennai-based FMCG major CavinKare has entered into a distribution

deal with Paris-based international fragrance marketer Coty to market and

distribute two of its brands across India. As part of the deal, CavinKare

will distribute Coty¶s Adidas and Jovan range of personal care products.

Adidas men¶s range comprises deodorants, shower gels, perfumes and

after-shave lotions, where as Jovan range include fragrance and personal

care products.

Addressing the media, Venkatesh Babu, regional managing director ² far

east export, Coty Beauty, said, ³There is a huge potential in the personal care segment here. The alliance will help inincreasing the accessibility of Adidas products in India, which is a fundamental part of our Asian strategy.´

CK Ranganathan, CMD, CavinKare, said, ³CavinKare mainly addresses the mass market. The strategic alliance will

help us get into the premium segment, where we did not have presence.´



CavinKare is expecting a turnover of Rs 500 million in the first year and holding around 10 per cent share of the deo-

spray and fragrance market in India, which is estimated to be Rs 3 billion.

However, the company plans to cut prices of its personal care products at around five per cent anticipating acute

competition in the market. "Competition will drive prices down. By the end of the year, prices could be lower by as

much as 15 per cent," concluded Ranganathan.

² IndiaRetailing Bureau

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CavinKare to take on fast food MNCs in India, abroad14 Aug 2009

The story has been read 212 times.

The Chennai-based company that was among the first to popularize the

sale of shampoos in sachets plans to take on fast food multinational

corporations (MNCs) such as McDonald¶s Corp. not just in India, but also

overseas with a multi-cuisine fast food restaurant format that it is

currently testing.

Considering most Indians spend far more on food than on personal care,

India has a potential for 500 restaurants, said C.K. Ranganathan,chairman and managing director of CavinKare Pvt. Ltd.

While CavinKare invested nearly Rs75 lakh for the first restaurant it opened a month ago, the cost for each additional

restaurant is likely to come down to Rs60 lakh, he added. The restaurants are branded CK¶s Foodstaurant, like

CavinKare, a play on the name of the founder.

CavinKare, maker of shampoos, fairness creams as well as pickles and juices, started life as Beauty Cosmetics.

Ranganathan¶s brother C.K. Rajkumar is known as the man who launched the sachet revolution in India when he

started selling a brand of shampoo, Velvette, in sachets. Ranganathan followed suit with his own shampoo-in-sachet

offering, Chik.

The menu for the chain in India will be a combination of Indian fare such as idlis, dosas and sandwiches, and

American favourites such as burgers and fries, but the restaurants will take on a slightly different avatar overseas. ³In

Italy, we could be selling a combination of pasta and burgers, while in Taiwan the restaurant menu will feature



noodles, dumplings as well as fries and burgers,´ said Ranganathan.

In July, the Chennai-based company decided to study the fast food business by opening its first restaurant in

Puducherry (formerly Pondicherry).

³Food is very localized and something that works in Chennai may not work in Mumbai or Delhi,´ said Anand Shah, a

research analyst with Angel Broking Ltd.

Delhi-based fast food chain Nirula¶s planned to go national with its restaurants two years ago, but is yet to be

successful, Shah said. ³So, it is very easy to say (you want to build a national or international chain), but it is actually

very difficult to implement and expand.´

The family-owned CavinKarelogged sales of Rs700 crore in 2008-09 and expects to nearly double its sales to Rs1,500crore in 2009-10, excluding the expected sales from the restaurant business. Ranganathan declined to give any sales

forecast for the fast food business, but said that a chain spread over a state such as Tamil Nadu could yield Rs1,000

crore in annual revenue. More financial details of the privately held company weren¶t available.

Through the 1990s and 2000s, CavinKare has held its own²and even won some skirmishes²with Hindustan

Unilever Ltd (HUL), India¶s largest consumer goods company. HUL posted a net profit of Rs2,115 crore on sales of

Rs16,476 crore for the year ended March 2009.

³You need to be right on two counts to unsettle a leader²product innovation and pricing. CavinKare worked well to

get both of them right,´ said Nikhil Vora, an analyst with IDFC-SSKI Securities Ltd.

Still, that may not work in the fast food business.

³CavinKare¶s expertise is in consumer goods, so I don¶t understand the logic of them moving into the fast food

outlets,´ Angel Broking¶s Shah said.

Source: Mint

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India's CavinKare targets 10pc market share in beauty

products



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CavinKare eyes bigger share through improved Fairever

By S Shyamala May 10 2010 , Chennai

Tags: CavinKare, Companies

FMCG conglomerate CavinKare targets 10 per cent market share all over India for its fairness cream

Fairever. The firm launched an improved variant of the cream, which trails Hindustan Unilevers Fair &



Lovely in the Rs 1,800-crore Indian skin whitening products market.

We are at seven per cent to eight per cent market share nationally and 20 per cent in south India. With

the enhanced Fairever, which is part of our Rs 600-crore personal care portfolio, we are aiming to raise

our market share to 10 per cent nationally this year, said Ramesh Viswanathan, executive director of

CavinKare.

The firm will spend close to Rs 10 crore on advertisements this financial year and it started airing

commercials during IPL 3 to capture maximum attention across India, he added.

Apart from improved ingredients, the company has chosen a vertical packaging format and has

introduced a fairness indicator that will measure the quantum of fairness improvement with time. The

product is priced at Rs 7 for nine gm, Rs 37 for 25 gm, Rs 68 for 50 gm and Rs 102 for 80 gm.

Vineet Trakroo, vice-president, marketing of CavinKare said in a statement: Retail displays and good

packaging will help us to reach out to even non-users. Our brand ambassador Asin, who has been with

us for three years, will play a key role in the growth of our brand across the country.

CavinKare has businesses across the personal care, foods, dairy and beverage segments with a turnover

of close to Rs 900 crore. The firm sells brands including Chik, Meera, Nyle in the shampoo category;

Spinz in deodorant; Fairever and Fairever Fruit in fairness cream; Ruchi and Chinnis in masalas, pickles

and snack, and Indica in hair colours.

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CavinKare eyes 4% of skincare market

Shailaja Sharma / DNASaturday, March 21, 2009 2:35 IST

Mumbai: CavinKare Ltd, the fast-moving consumer goods (FMCG) major, is eyeing a 4% share in the Rs

1,500 crore domestic skincare market, which is growing at 14% annually.

The company launched Fairever Fruit, a new variant of its Fairever fairness cream, in the national market on

Friday.

Ramesh Vishwanathan, executive director, CavinKare, said, "Within four months of Fairever Fruit's launch in south India,

we have gained 2% market share in the skincare segment. Our aim is to bag a share of 4% by next year." CavinKare will

invest Rs 10-14 crore to market Fairever Fruit.

A television commercial starring actress Asin and made by ad agency Grey Worldwide India, will launch next month.

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Last month, CavinKare forged a strategic alliance with international fragrance marketer Coty Inc to market the Adidas

brand of deodorants in India.

The company presently has the Spinz range of deodorants and in another three months, will market and sell the Jovan

Musk brand in the country. CavinKare hopes to corner a 10% share of the deodorant market.

The company is also extending its food offerings -- the Ruchi and Chinni brands of pickles and snacks -- and its Maa fruit

drinks to the national market. It has already established the brands in south and east markets.

After its Rs 30 crore acquisition of a dairy unit in Kanchipuram near

Chennai, it is finalising a deal with another unit in Tamil Nadu.

CavinKare is looking to acquire more dairies in the south first and across the country later.

"The dairy business will be a large contributor to our revenues as it is a high-consumption product. We are aiming at a Rs

1,000 crore business from our dairy segment in another five years," Vishwanathan said.

CavinKare has already launched its own milk products and will soon roll out flavoured milk and curd products.

Rural sales contribute 23% to its total sales. Organised retail stores, which account for just 5% of sales, have been

experienced a slowdown in the last 3-4 months.

However, the company is looking to take its presence to 15,000 retail stores this year.

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