A PROJECT REPORT ONBRAND REMIXING – ARAMUSK SOAP

For

WADHAWAN GROUP OF COMPANIES LTD. (WADHAWAN HOLDINGS)

Submitted by –RAJESHWARI MANE

PGDMRoll No. 11

Month & Year of Submission:July 2010.

Under Guidance of

Mr. Yogesh Pahuja (Director –Academics, RSOM).Mr. Rajesh Ingle (

Mr. Vikas Gupta (Practice Head – Analytics Business Strategy, Wadhawan Holdings).

Submitted in partial fulfilment of the requirements for

qualifying PGDM Semester

Re Vera School of Management.Plot 46, Near Utsav Chowk,

Kharghar,Navi Mumbai.

ACKNOWLEDGEMENT

I would first like to extend my gratitude to Wadhawan Group of Companies Ltd. (Wadhawan Holdings) for giving us this opportunity to take up a project in their company.

I am also grateful to Mr. Rajesh Ingle and Mr. Vikas Gupta my external guide at Wadhawan Holdings for providing me timely help throughout the project work without whom my efforts would have been in vain.

I am grateful to Mr.Yogesh Pahuja, our honourable Director, Re Vera School of Management, who has been a constant source of motivation, encouragement and guidance. His interest and invaluable guidance has gone a long way in helping the completion of the project within stipulated time.

I would also like to express my heartfelt thanks to Ms. Shashi Sharma, Manager Academics, Re Vera School of Management for her unending co-operation and encouragement during the course of the project

And not to forget my classmates without whom this project really would have not been possible it’s their support and help I have reached here.

DECLARATION

I hereby declare that project work titled BRAND REMIXING submitted by me in partial fulfilment of the requirement for the POST GRADUATION DIPLOMA IN MANAGEMENT to RE Vera School of Management under

AICTE norms, is an original work and the same has not been submitted either to RSOM earlier or to any other institution. This work is strictly

confidential and for academic purpose only done under the norms and permission of both RSOM and Wadhawan Holdings.

RAJESHWARI MANE

PGDMRSOM

EXECUTIVE SUMMARY:

Title of the project: Brand Remixing.

Name of the product: Aramusk Soap (Extravagantly male)

Objective: To study the current state of ARAMUSK SOAP in market and to briefly explore and recommend if it can be re-launched, how and why for Wadhawan Holdings.

Findings:

Product: Aramusk is Premium soap for men with a refreshing fragrance of musk. The awareness was high in 1986 and few years later but slowly moved out of the market.

Launch: 1985 (Delhi)

Ownership: in 1985 it was discovered and manufactured by Shaw Wallace,

In 1999 Henkel over took the product. In 2009-10 VVF purchased it from Henkel.

Target customer: Men.

Markets covered: India and overseas, sales well in east.

Pros: Concept, Long lasting Fragrance and shape. Cons: Advertisements, distribution, R&D.

Market status: Alive.

Recommendations:

Assuming VVF (new owners)

INDEX

Introduction

Scope

Methodology

Findings

Company Profile

Recommendations

Bibliography

Appendix

INTRODUCTION:

Objective:

To study the current state of ARAMUSK SOAP in market and to briefly explore and recommend if it can be re-launched, how and why for Wadhawan Holdings.

Preface:

“BRAND REMIXING” is the concept introduced and registered by Wadhawan Holdings, as the name itself suggests, the plan is to REMIX the product i.e. to make necessary changes in existing but somehow failed product for better sales as time demands constant change-Remix.

These products do not limit to their company, they are willing to acquire products of other companies which have lost market share now but at some point of time had loyal customers.

They have handpicked such so called ‘sick’ or ‘dead’ products and are analysing which is appropriate for them to acquire, treat, REMIX and sell.

It’s just like an old famous song , not known for this generation , remixed and brought again in market, till now such songs have been selling like hot cakes, the question is which song exactly has been chosen and here its which product.

From the list of products I chose ARAMUSK SOAP to study its past, present and future and study if there is any scope to re launch.

ABOUT THE COMPANY:

Wadhawan Group is promoted by the Wadhawan Family to pursue their business interests in diversified verticals like

Food Retail, Hospitality, Hotels and Resorts, Lifestyle Retailing, Education, Financial Services and Real Estate.

Wadhawan Group was founded by the late Mr. Dewan Kuldip Singh Wadhawan in 1973 for the purpose of land

aggregation, development & management and construction. It is today, run by Kapil Wadhawan and Dheeraj Wadhawan

the third generation Wadhawan.

Wadhawan group set out on its journey with a vision of fulfilling the most fundamental of human needs-shelter. Over the last 25 years,

the group has gained a reputation for trust and reliability in the construction and financial services sectors.

Today, the group with its strong presence employs 4000 people across various businesses spread across multiple locations in India,

UAE and UK. The group prides itself on its youthful management team and has set aggressive goals for expansion in India and

abroad. The group vision is to be a globally respected institution from India.

VISION”A GLOBAL INSTITUTION”

Elements of Our Vision:

We will show excellence in every aspect of our business

We will set a benchmark in all the business in which we operate, providing thought leadership in all aspects of our chosen business

We will strive to build Infinite continuity in our business

We envisage ourselves as a global firm and our attitude towards our work will reflect this

The way we run our business will be a reflection of the point of view that we have that has been generated because of the rich experience we have had in the past.

MISSIONFIFTY BY FIFTEEN

FIFTY THOUSAND CRORES BY 2015

Being an incubator of “GLOBAL” enterprisesBeing a “CUSTODIAN” of Vision, Values & GovernanceBeing “BRAND WADHAWAN”Being a “TRUSTEE” of Share holders’ ValueBeing an “EMPLOYER OF CHOICE”Being a “REPOSITORY” of Knowledge and Leading PracticesBeing a “CENTER OF EXCELLENCE”Being a hub for “SHARED SERVICES” & “STRATEGIC ALLIANCES”Being “SYSTEM & PROCESS” orientedBeing “CUSTOMER CENTRIC”Being “SOCIALLY RESPONSIBLE”Being “ENTREPRENEURIAL”Being an “INSTITUTION”

VALUES

We abide by these enduring values that are the foundation of our business and at the heart of all we do each day.

Customer Focus

We listen to our customers.

We are committed to delivering real value.

We take ownership of a customer’s problem until it is solved.

Teamwork

We respect each other and value their ideas and points of view.

We incorporate fun with hard work.

We have a passion for winning.

We are one Enterprise. There is no “they” or “I”.

Passion for Excellence

We strive for the best quality in everything we do and hold ourselves to the highest standards.

We motivate ourselves and take great pride in the knowledge that we give our best each day.

We continuously raise our standards of delivery.

We encourage risk taking.

Leadership

We embrace change and use it to shape our own destiny.

We empower those around us by sharing knowledge.

We recognize outstanding performance.

We inspire each other to succeed.

We are responsible for and committed to our own personal growth and development.

Trust

We are honest with each other and constructively give and willingly accept candid feedback.

We build relationships of trust so we can share and accept the truth, even when its hard to say or hear.

We act based on a positive belief in and reliance on the character, ability, fairness, truth and honor of others and of the company.

We assume others will behave responsibly and appropriately.

Respect

We show consideration, listen & seek inputs and treat each other fairly.

We acknowledge that everyone has a context and respect work-life balance.

We seek inputs on decisions that affect our people and the business.

SECTORS:

FINANCIAL SERVICES

DEWAN HOUSING FINANCE CORPORATION LTD.

DHFL is a housing finance company that has taken the road less traveled. The journey began on the 11th April 1984. Rajesh Kumar Wadhawan began his mission to give easier access to housing loans on fair terms. For 25 years now, Dewan Housing Finance Corporation Ltd has been driving home the advantage of home ownership to Indian consumers across all socio-economic strata and providing them with financial access. DHFL is present in over 170 locations across India.

DHFLVC, established in 2005, focuses on commercial, residential and mixed use segments for investments by way of development, lease, own and sell. DHFL Vysya Housing Finance Ltd. was incorporated in 1990 in its earlier name Vysya Bank Housing Finance Ltd. It has a history of uninterrupted payment of dividend, ever-increasing total assets and reserves.

RETAIL

WADHAWAN RETAIL PVT. LTD.

The management at WRPL believes that food and grocery retailing is a two tiered operation. On one level a nationally recognized brand with international operating standards needs to be built. However, the unique essence of the neighborhood must also be maintained. Even though the physical infrastructure of the local grocery store has changed radically, the shopping psychology of the consumer has changed partially.

The real estate experience of Wadhawan’s has given the management valuable insights into creating brands to suit the neighborhood. Wadhawan Retail is adopting a strategy of targeting neighborhoods with the retail experience they aspire to. In all the store formats the shopper’s experience is very carefully choreographed. The idea is to get customer loyalty by linking emotions to the store: A big reason behind the success of the local ‘Kirana’ stores. Wadhawan F&G Retail owns five brands in various parts of India: Spinach, Sab Ka Bazaar, Smart, The Home Store and Sangam Direct. The company has received the management contract for Maratha Cooperative Stores.

The company will also look at other convenience formats to cater to

community specific needs.

FOOD & BEVERAGES

DISH HOSPITALITY PVT. LTD.

Dish Hospitality Private Limited, part of the Wadhawan Group, represents the groups’ interest in the food and beverage industry. The company currently operates a multi brand portfolio pan India.

‘Aurus’, the flagship venture of Dish Hospitality Private Limited, is one of the premiere fine-dine restaurants in country

Similarly, Sancho’s in Delhi is an upscale Mexican Casual Restaurant offering unique and authentic Mexican entrées inspired from Texas and California. From Tex-Mex to Cal-Mex, Sanchos is first of its kinds in India.

Wadhawan Hospitality Private Limited’s quick serve restaurant ‘Nashta Chai’ serves a wide range of fast moving food at a 'real' value catering especially to patrons who are always on the move.

Dish Hospitality Private Limited is also the master franchisee for ‘The Tasty Tangles’, a brand of restaurants belonging to the Jumeirah Group, UAE. The company currently operates ‘The Tasty Tangles’ in Bangalore and Delhi respectively.

Another pioneering venture of Dish Hospitality Private Limited is ‘Central Kitchen’, a manufacturing facility that can prepare 10,000 meals per shift. This facility is a show piece of technology and operational efficiency with nutritionists, microbiologists and dieticians. Multiple restaurant brands catering quality food and international cuisine is serviced by ‘Central Kitchen’.

HOSPITALITY

WADHAWAN GLOBAL HOTELS & RESORTS PVT. LTD.

The booming economy and heightened business & leisure travel activity has thrown open vast opportunities in the Indian hospitality sector. With the experience of developing & constructing luxury real estate, the group decided to venture into the Hospitality Segment to have its share in the hospitality pie. The company plans to create brands that are clearly the first choice of all travelers. The strategy is to provide personalized luxury to the High net worth traveler and ‘surprising luxury’ to the budget traveler. The business vertical will develop hotels with innovative technological concepts which will cater to the needs of growing number of young & techno-savvy biz travelers, both domestic and foreign. WGHRPL plans to set up luxury resort hotels across India to become destinations for the discerning leisure Indian & international traveler.

LIFESTYLE RETAIL

WADHAWAN LIFESTYLE PVT. LTD.

Wadhawan Lifestyle (WLRPL) will focus on offering “differentiated’ brands in the personal lifestyle space (clothes,accessories,etc) . WLRPL will strive to bring in quality international brands relevant to the Indian consumer and markets.

At the upper end there will be exclusive world brand boutiques for the discerning. The cult brands of Ed Hardy and Christian Audigier, have already opened up for the elite shopper. Currently there are more than 60 licenses for Ed Hardy manufacturing diverse products range from clothing, to lifestyle accessories and smart urban gear.

WLPRL has launched it in stores of Mumbai and Delhi etc., The Select city store achieved record sales during the End of Season

sale, thereby highlighting the potential and the reach of the brand in the Nation’s capital.

Currently the brands are avaialble in Mumbai and Delhi and very soon will be available at other locations across India.

EDUCATION

R. K. WADHAWAN INSTITUTE FOR UNIVERSAL LEARNING

R. K. Wadhawan Institute for Universal Learning (RKWIUL), part of Wadhawan Group, is set up in 2003 with a vision ‘to provide world class learning opportunities, nurture & groom talent across the country and improve employability’.

The learning opportunities are carefully designed with emphasis on ‘application of knowledge’ as we learn by focusing on 3C’s of one’s life, Cradle to College to Career.

RKWIUL is at the early stages of setting up K-12 schools and a Business school with international alliances. RKWIUL has already tied up with international organizations for bringing in world class Vocational Corporate Training in the areas of business and soft skills across junior, middle and senior management levels.RKWIUL is headquartered in Mumbai and has branches in Delhi and Bangalore.

REAL ESTATE

RKW DEVELOPERS

In our continuing effort to deliver direct value to consumers, we have organized our India real estate operations under RKW Developers Private Limited. This company will focus on residential and commercial real estate development in India.

TOWNSHIP DEVELOPERS INDIA PVT. LTD. (TDIPL)

TDIPL, an Associate of Wadhawan Holdings, is setting up a multi-product SEZ alongside Pavna River in Dist. Pune, Maharashtra, and is spread over an area of approximately 5,337 Acres. The SEZ policy represents the latest and perhaps a major initiative so far on a pivotal feature of industrial development strategy in the country. This SEZ has been conceived with a view to provide an internationally competitive and enabling environment for exports, through a world class infrastructure over an unprecedented large geographical area.

As proposed by TDIPL under the said project, the various industrial sectors, service zones are: Engineering, Auto Components, Electronics and Electric Equipments, Steel, Textile/Apparel, Food Processing, IT & ITES, Research and Development and Education.

MILESTONES:

Year Milestones

1978 Formation of Dheeraj Constructions

1984 Incorporation of DHFL

1996 HDIL incorporated : Real Estate Business

2003 DHFL acquired Vysya Bank Housing Finance Limited

2005 DHFl Venture Capital Formed Foray into Food & Beverage.

2005 WRL formed: Retail Food & Grocery Business

2006 First store of Spinach opened in Bandra Kurla Complex, Mumbai.

2007 Foray into Lifestyle and Luxury Business Education Hospitality.

2007 Acquisition by WRL Sangam Direct Home Store India Limited S Mart Retail Private Limited.

2008 Tie-up with Punjab & Sind Bank

ABOUT HENKEL (PARENT OF ARAMUSK):

Henkel – A Brand like a Friend – This claim underlines our vision to make people’s lives easier, better and more beautiful with our brands and technologies.

Henkel, headquartered in Düsseldorf / Germany, has about 50,000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace. People around the world trust in brands and technologies from Henkel.

Henkel India Limited (HIL) operates in the category of laundry, homecare, cosmetics, toiletries and hair-care business.

The Company operates in three segments: body care comprising of soaps, cosmetics, hair oil, deodorant and toothpaste; detergents and cleansers, and other products comprising of zeolites.

The Company’s brand names include Pril, Henko, Fa, Margo, Mr. White, Chek, Bref, Igora Royal, BC Bonacure, Strait Therapy, Glatt & Natural Styling and Osis.

The Company’s cosmetic products are available in 150 countries worldwide. The Company provides products in the fields of hair

colorants, hair styling hair care and form, toiletries, skin care, oral hygiene and fragrances.

Its cosmetics/ toiletries brands include Margo Soaps, Fa and Fa Men extreme deos, Schwarzkopf Professional and Neem Active toothpaste.

The Company provides adhesives, sealants and surface treatments for consumers, craftsmen and industrial applications.

SCOPE:

History of Aramusk

Current status of Aramusk in market

Reasons of its status

Competitors- Direct/Indirect

Market available if re launched

Segmentation

Ownership

METHODOLOGY:

I chose Aramusk because I absolutely had no clue what this product is all about, this fact fascinated me more to know everything, every aspect of it.

What I could understand from the first meeting at Wadhawan was Aramusk is a soap exclusively for men which has somehow lost its demand or market share, and my job was to find how and what happend to it,

First thing I did was searched ARAMUSK SOAP on Internet, so my first method to know about my subject was through Existing data or Secondary data, which helped me the most, basic information, reviews, news articles, updates etc was studied by this method.

For more information in my next method I casually questioned a Focused Group of Men between 30-60 years of age, as the products awareness and sales were better during 1985-1995,

The questions were:

Have you heard about Aramusk Soap?Have you or any of your friends used it?Do you still buy it?What makes you remember this soap?Why did you stop buying Aramusk?

This method had put light on some minute personal details of why this product went off the market, though much of information could not be extracted.

I then tried calling directly Henkel’s Offices for interview of concerned people who can give me more information on Aramusk, my question set was:

Do you have a product called Aramusk Soap for men still under your stable?Is it available anywhere in Mumbai market for sale?Why is your product not advertised?Why did it go off market?Do you have/had loyal customers?What was your last sales figure?There was news that you want to sell this product, is it true?

I called following numbers:

022-66143000 -- Henkel Chembond Surface Technology, Navi Mumbai.022-22855388 -- Henkel CAC Pvt. Ltd. Nariman Point, Mumbai.022-30882427/36 -- Henkel India Ltd., Andheri, Mumbai.044-24330089 -- Henkel Head Office, Chennai.

Unfortunately I couldn’t reach proper head who could answer my questions, and people to whom i spoke said they don’t provide with any information nor they entertain any projects, while few had no clue if they have such product with them, only at Navi Mumbai’s office a lady could give me some lead, which did turn useful later.

I even tried going in malls and custom shop if they ever had Aramusk on their shelves, I there observed how customers tend to behave when buying soap.

FINDINGS:

Name Of the product: Aramusk- Extravagantly for men.This specific soap was a bold step by Shaw Wallace to produce; it was one of the first gender specific products.

Launched in 1985 in Delhi, when there was no such market readily available, the need was not natural but successfully created in the huge segment of men.

The Product was a premium soap which came in a standard packing,The shape of this soap was a unique feature; it was pyramidal shape that allowed the base to dissolve less with a sticker on it.

The color was off white little on pale side; the cover box was coffee brown with Aramusk name written in cursive with a tagline saying ‘Bath Soap For Men’.

The best feature of Aramusk was its fragrance; it’s Aroma of Musk that is why it is AraMusk. Its long lasting refreshing fragrance made men buy it, in fact Aramusk is still vividly remembered is because of its musky scent.

Aramusk comes in a pack of 75gm at 15-17 Rs at selected and very few stores, it’s been sold online too for about 2.99$ for 125gm.

Aramusk was then sold to Henkel India prior known as Tamilnadu Petro Chemicals in 1999, which had wide range of fast selling products and never specially promoted Aramusk which was one of the reasons the market share came down.The production plant of Henkel Aramusk is situated in Bengal.

One of the users or Aramusk fan has blogged about Aramusk on mouthshut.com site on December 6th 2007 which is read by around 1858 people and rated 4 out of 5 stars by 22 people and many have posted their, the article is:

Focusing on products for men was extremely difficult for companies in post independent India. The problem at that point was the Hindu rate of growth - would people seek gender based products or ones which can be used in common by the family? Ok, there are specific gender products, but all I am referring to is a bath soap

Aramusk is one such bath soap and is one of the few gender specific products exclusively focused on men.  The soap was previously manufactured by Shaw Wallace India Ltd (Now taken over by Henkel). Yeah, the same company that gave us a ‘Royal Challenge’. Well, as far as soaps go, it’s good, without dissolving easily in water. It lathers well with normal skin, though I found it a little tough during cold climes. Also it has that specific pyramidal type bottom with a paper sticker on the bottom which prevents it from getting dissolved easily. The soap lasts a little more than a week, unless you bath once a week.  

Aromatic ingredients do play a key factor in the success of soap. Some brands like Fa, Aramusk and a few others are successful only due to the smell. The fragrance is the best part of this soap. The aroma of musk has been used in a multitude of products – right from Old Spice products… I bet all of you would know the smell of musk. It’s delectable, spicy, freshening and retains a body confidence. I do lift my arm sometimes and expose my armpits without thinking about how skunks smell.

The soap retails at 16 bucks while it is around 11 bucks at the Metro. That’s a huge difference in the printed price. The soap also retails internationally at almost 10 times the cost.Now there’s a secret tip – Women do love the smell of musk.  ;-) If that doesn’t hold good as a recco for bachelors, I have a sneaking suspicion that Daniel Craig used this particular soap in his only Bond movie so far. Is that enough recco?

Advertisements done so far:

Aramusk was test launched in Delhi with an ad on Paper banners (like chart). It was a drawing of few exclusive and expensive products of men in a circular shape and there Aramusk and its pack appeared in color. The ad was innovative and appealing enough to create good awareness in 1985-86.

Then there was a 30-second TV commercial for national network in which a sweaty boy comes in his bachelor home and goes for shower and checks a female note which says I am coming tonight to check what made you smell so good and then Aramusk is shown in bathroom.

Both the ads were done when it belonged to Shaw Wallace, and that’s the only period when awareness for this brand was more, they promoted this soap as Expensive, Exclusive, and Extravagantly for men.

The mention of this added is in the book Brand positioning: strategies for competitive advantage By Subroto Sengupta.

Aramusk almost lost its identity until it again flashed in news that Henkel wants to sell this brand. Henkel wanted to focus on it fast selling commodities like Pril, Margo etc.

As it is also been sold online the short tag line goes like this:

From the exclusive preserves of this world, rediscover the aroma of Musk, which has a time-defying appeal. This magnestism of musk is all yours with Aramusk, an experience that pleasures your senses. Extremely exotic. Extravagantly male. 125 gram bar. 2.99$

source: www.incenseguru.com

Park Avenue a big brand itself under the empire Raymond’s stable wished to produce a similar type of soap parallel to its existing line of soaps or toiletries says an old article in 1999 which also puts some light on how soap industry was a decade before,

Friday, September 10, 1999Helene Curtis adds musk to Park Avenue soap rangeNamrata Singh 

Mumbai, Sept 9: Mumbai-based JK Helene Curtis is shortly launching a new soap for men called `Musk Park Avenue soap'. With this, the company is attempting to make a success in this niche category of soap within the Rs 2,900 crore toilet soap market - a category which was first explored by Calcutta Chemicals (now with Henkel) which launched `Aramusk' soap for men, and failed in its attempt to garner huge volumes.

Even while Aramusk failed to create a ripple in the market despite the huge extravaganza in advertising surrounding the product launch, JK Helene Curtis is not looking at huge volumes. The company says it will be content with a volume of 200 tonnes in the next few months.

JK Helene Curtis is basically a manufacturer of premium personal products in the country and markets its products under two prime brands: `Premium' and `Park Avenue'. Under these brands, the company markets Tru-Tone hair dye, Premium shampoos and Park Avenue range of men's toiletries.

The new Musk Park Avenue soap will be priced at Rs 25 for a 150 gm bar. The company is targeting all the metro cities to launch the premium soap, which is an extension of the existing soap of Park Avenue, which commands a price of Rs 20 for a 100 gm bar.

Says JK Helene Curtis executive director Nanu N Mehta, ``We are not running after market shares. Our main aim is to maintain a growth of 20-25 per cent for the company. For this we need to launch products. We do not wish to spend extravagantly in advertising. However, an ad strategy is being prepared to mark the launch of the soap.''

The turnover of the company is Rs 55 crore. Last year, JK Helene Curtis, which is part of the Raymond Group, clocked a turnover of around Rs 45 crore. Mehta said that the company's objective is to create growth by launching premium products in the market. The

company has also recently rolled out `Premium Neem Natural' neem soap under the Premium brand in Delhi and will roll out the same in Mumbai shortly. Priced at Rs 9 for 75 gm, the soap falls in the premium

segment of the soaps market and will compete with the existing neem soap in the market, `Margo'. Margo, which was originally launched by Calcutta Chemicals, is now part of Henkel.

The toilet soap market is dominated by Hindustan Lever, which commands around 70 per cent share of the total market. The other strong players are Nirma and Godrej Soaps. Apart from these companies, a number of smaller companies (mostly regional players) enjoy a niche position in the market.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

Source: www.indianexpress.com

But such kind of soap never came in market nor there was any news heard again though their flagship products still hold a good share in market.

Aramusk somehow went unnoticed and gradually started losing its popularity under Henkel’s stable, other big companies started peeping in to buy the brand and this is when Aramusk came into picture again.

The reason of many companies taking interest in such type of soap is the growing market for soaps and specifically men grooming market in India.

When it was launched there was no such male or gender specific market, now there is awareness and youth wanting to look more appealing no more feel shy or awkward for buying cosmetics or similar products for themselves.

In fact even at the time it was launched the major reason for its popularity was bachelors or single boys using this product the most.

Hostelites were the sure buyers of Aramusk, according to many reviews I came across it can be seen that when men themselves shopped for their personal toiletries they opted for Aramusk because it gave very refreshing and masculine fragrance, but later when they went their home back their mothers or wives started shopping home toiletries and used whichever the ladies got, and usually ladies never picked men soap but family soap.

But now the scenario is changed at greater extent, the men grooming market is booming! Research says 25-30% of customers of Fairness creams were men and that is why there are so many new products entering in market exclusively for men segment.

These articles and news gave me direction to search more information on available soap market in India.

Market survey of IndiaSource: Super brands magazine of India, 2004

Healthcare:

India spends Rs 1,030 billion on healthcare or 5.2% of its GDP. India’s beauty care market is Rs 2.2 billion (source: ORG MARG) India’s sanitary market is Rs 5.5 billion

India’s soap market is Rs 41.75 billion (source: AC Neilson 2003)

Branded toothpaste penetration is 76.8% in urban areas and 37.1% in rural India(source; NRS 2002)

Branded oil has a market of Rs 13 billion (includes coconut hair oil Rs 9.1 billion) and shampoo market is Rs 10.3 billion (source: AC Neilson 2003)

Rubs and balms market in India is Rs 4.7 billion (source: AC Neilson 2003)

Fabric wash market is 2.5 million metric tones of synthetic detergents at about Rs 55 billion

Prickly heat powder market is Rs 1 billion in India and talcum powder is Rs 5 billion

Total analgesics market is Rs .25 billion (source: AC Neilson 2003) Total medicated throat drops (lozenge) market in India is Rs 430

million (source: AC Neilson)

Source: www.diehardindian.com

PERSONAL CARE

The size of the personal wash products is estimated at $989 million;

Hair care products at $831 million and oral care products at $537 million.

While the overall personal wash market is growing at one per cent, the premium and middle-end soaps are growing at 10 per cent.

The leading players in this market are HLL, Nirma, Godrej Soaps and Reckitt & Colman. The oral care market, especially toothpastes, remains under penetrated in India (with penetration level below 45 per cent). The industry is very competitive both for organized and smaller regional players.

The Indian skin care and cosmetics market is valued at $274 million and dominated by HLL, Colgate Palmolive, Gillette India and Godrej Soaps. The coconut oil market accounts for 72 per cent share in the hair oil market. In the branded coconut hair oil market,

Marico (with Parachute) and Dabur are the leading players. The market for branded coconut oil is valued at approximately $174 million.

Source: www.ibef.org

GENERAL INFORMATION ON SOAP IN INDIA:

The personal wash can be segregated into:

Premium- Lux, Dove Economy- Nirma Bath, Lifebuoy

Popular- Nirma, Cinthol

The price of the premium segment products is twice that of economy segment products. The economy and popular segments are 4/5ths of the entire soaps market. The penetration level of toilet soaps is 88.6%. However, the per capita consumption of soap in India is at 460 gms per annum, while in Brazil it is at 1,100 gms per annum.

In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in the rural areas; hence around 50% of the soaps are sold in the rural markets. 

Growth 

With increase in disposable incomes, growth in rural demand is expected to increase because consumers are moving up towards premium products. However, in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps, because increase in prices has led some consumers to look for cheaper substitutes. 

The major players in personal wash (Soap) market are HLL, Nirma and P&G. 

Source: naukrihub.com

These all attractive market size attracted big companies in race to buy Henkels Aramusk and two other brands, even Henkel now had decided to sell its slow moving products and concentrate on its other fast moving products, the news flashed regarding its decisions and race for more than a year but what exactly had happened was never openly disclosed, following chronologically arranged articles gave me all the answers:

February 2009:

Kolkata, Feb 17 (IANS) The city-based Rs.20-billion fast moving consumer goods (FMCG) company Emami is eyeing Henkel India’s toilet soap brands like Aramusk and Moloy, a top company official said here Tuesday.“We are studying whether these two brands would be good or bad for us. The development is at a preliminary stage and we are yet to place any bids,” Emami Group director Aditya Agarwal told IANS on the sidelines of a press meet to announce its biotech arms pact with Calcutta Tramways for supplying bio-diesel for the latter’s bus fleet.

Henkel had acquired Aramusk and Moloy - a sandalwood fragrant soap - from Shaw Wallace in 1999. Aramusk is sold as the “country’s first male deodorant soap”.

Henkel India is believed to have recently put these two regional brands up for sale.

“Since we are into fast moving consumer goods business, any such offer round the corner will make us study it properly. We would also be studying whether the market conditions are good (for the acquisition) and things related to it,” Agarwal said.

Source: www.thaindian.com

JULY 2009:

Jul 03, 2009 According to The Economic Times, Reliance Retail Limited is planning to acquire male deodorant soap brand Aramusk and sandalwood soap brand Moloy from Henkel India, Ltd. Both the companies are based in India.

Reliance Retail Limited is the retail chain division of Reliance Industries Limited, while Henkel India is a manufacturer of detergents and household cleaning products.

Reportedly, Emami Limited and Jyothy Laboratories Limited are also in the race to acquire the soap brands of Henkel India.

MAPES Advisors is acting as advisor for the auction process.

Deal Type AcquisitionSub-Category Asset PurchaseDeal Status Rumour: 2009-06-30

Source: www.tradingmarkets.com

Later I came across detailed Economic Times Article about Reliance in this race which is as follows, however the date was no where mentioned,

ECONOMIC TIMES:

NEW DELHI: Mukesh Ambani’s Reliance Retail has put in bids to acquire two of Henkel India’s soap brands, a sign of the big ambitions it has in the fast-moving consumer goods (FMCG) business. Any deal for the male deodorant soap Aramusk and Moloy sandalwood soap, put up for sale late last year, is estimated to be worth about Rs 10 crore. The Henkel brands are unlikely to generate significant revenues at the national level, but they are attractive buys locally, especially in the eastern part of the country. 

Reliance Industries (RIL), the parent of Reliance Retail, has identified the FMCG sector as the next big growth area, and is planning to set up two or three subsidiaries to manage the business. What started as a private label initiative for Reliance Retail has now grown into a large business idea, said two persons close to the development. 

They said the entire business (manufacturing and distribution) will be operated through third parties with Reliance controlling the brand and the technology behind it. The plan is to create consumer brands, acquire them and get into joint ventures with existing companies, a top company official said. 

Chennai-based Henkel had earlier put four non-core brands on the block, that included Maha Bhringol hair oil and Tuhina skin cream. ET has learnt that Reliance is not interested in acquiring the hair oil brand and Henkel has decided to retain Tuhina as its core brand. 

The Emami group is also in the race for the Henkel soap brands, but a person close to the deal process said Reliance has bid higher. Mumbai-based consumer goods firm Jyothy Laboratories also considered acquiring the brands, but it couldn’t be ascertained if it is still in the race. Mape Advisory Services is the investment banker for the deal. Aramusk and Moloy were owned by Shaw Wallace India before Henkel acquired them in 1999. Reliance Retail and Henkel India declined to comment. 

The FMCG sector has coped with the slowdown better than most

others, growing by 18-20% in the past 5-6 quarters, helped mainly by price hikes, increased consumer promotions, new product launches and smaller packs. Though growth slowed down in April and May, FMCG companies are aggressively gunning for volumes, and are optimistic that growth will rebound. 

For Reliance, the FMCG business is unlikely to attract negative publicity — unlike its retail venture — since it would involve small manufacturers and not compete with them as was the case with its retail unit. FMCG is also a business where overhead costs are low and outsourcing is common. Reliance plans to enter into agreements with manufacturers and the FMCG business would get a captive audience at the 750-odd Reliance Retail stores and give the retail venture the margins the company would otherwise have paid to a distributor. 

Among the categories that Reliance proposes to enter include foods such as staples and snacks, and personal care products including soaps, detergents, shampoos and hair oils. In January this year, Henkel, a 51% subsidiary of German consumer products company Henkel KGaA, had decided to divest its non-core regional brands. Henkel wants to prune its portfolio to focus on flagship brands Henko and Mr White (both laundry care brands), Pril dishwasher, Margo soap and Fa deodorants. 

Other brands in the Rs 600-crore Henkel India’s portfolio include Neem toothpaste and haircare brands Igora, Bonacure, Glatt and Palette. In addition to deodorants, the Fa franchise includes soap, talcs, shaving cream and after-shave lotions. Furthermore, Henkel introduced its Bref surface cleaners last year.

Source: www.economictimes.indiatimes.com

SEPTEMBER 2009Nandini Goswami / DNAThursday, September 10, 2009 3:36 IST

Kolkata: Ten years after it bought the facility from Shaw Wallace, Henkel India is selling its Tiljala factory in Kolkata. VVF Ltd, one of the world's largest contract manufacturers of bar soaps and the owner of Doy Aloe Vera soap brand, is the likely buyer.All cosmetic brands of Henkel, including major soap brands like Margo, Aramusk, Moloy and Fa, apart from Neem toothpaste, are likely to be manufactured by the Mumbai-based VVF. Marketing and branding will be by Henkel.

Henkel officials could not be reached for comment. But sources said the changeover is likely to happen from October 2009, almost ten years after Henkel bought the consumer division from Shaw Wallace. The price at which the factory would be transferred could not be ascertained. The Henkel board will meet on September 11 to consider the sale.

The Tiljala factory employs about 160 workers and 20-odd executives. It produces about 100 tonnes of Neem toothpaste and about 5,000 tonnes of Margo per year.A visit to the factory premises within the city on Wednesday saw some labour unrest, with posters put up demanding that the head of operations of the unit be retained in the city.

VVF, on the other hand, is the leader in contract manufacturing of bar soaps in India and has manufacturing facilities in Mumbai and Gujarat. Henkel India in the year 1999 bought over the consumer division (CDD) from Shaw Wallace. This comprised of two main segments -- Calcutta Chemicals and Detergent India Ltd, which became units of Henkel India.

The grapevine in the cosmetics industry has it that Henkel India could even put its Aramusk and Moloy brands on the block. Also, there is talk that VVF or Reliance Industries could be contenders for the brands. However, none of this could be officially confirmed. Source: www.dnaindia.com

The article on financial ups and downs of Henkel gave me confirmation that the sale and deals of Henkel brands had already taken place but such declaration was not done anywhere, I could come till here with the hint the lady gave me in Henkel’s Navi Mumbai office saying they have already sold Aramusk at the end of last year but she was not sure to whom and exactly when, after a lot of search I came up to indirect links which took me near my search,

Henkel India leaps on reports it may hive off Kolkata factory

Henkel India galloped 5.80% to Rs 31 at 12:32 IST on reports that unlisted personal care products maker VVF may buy the company's Tiljala factory in Kolkata.Meanwhile, the BSE Sensex was up 102.92 points, or 0.64%, to 16286.47. 

On BSE, 7.82 lakh shares were traded in the counter as against an average daily volume of 2.71 lakh shares in the past one quarter. 

The stock hit a high of Rs 32.25 and a low of Rs 30.30 so far during the day. The stock had hit a 52-week high of Rs 32.85 on 7 September 2009 and a 52-week low of Rs 10 on 27 October 2008. 

The stock had outperformed the market over the past one month till 9 September 2009, soaring 29.93% as compared to the Sensex 6.75% rise. It outperformed the market in past one quarter, spurting 45.41% as against 6.98% rise in the Sensex.

The small-cap personal care products maker has an equity capital of Rs 116.46 crore. Face value per share is Rs 10.

The current price of Rs 31 discounts the company's Q2 June 2009 annualised EPS of Rs 1.98, by a PE multiple of 15.65.

The company had announced after market hours on Tuesday, 8 September 2009, that its board would meet on 11 September 2009 to consider the sale or lease of a factory in Kolkata. The stock had fallen 2.01% to end at Rs 29.30 on Wednesday, 9 September 2009.

Reports suggest that after VVF takes over Henkel's Kolkata factory, all cosmetic brands of Henkel, including major soap brands like Margo, Aramusk, Moloy and Fa, apart from Neem toothpaste, are likely to be manufactured by VVF. Marketing and branding will be continued to be handled by Henkel.

The changeover is reportedly likely to happen from October 2009. The price at which the factory would be transferred could not be

ascertained. 

Reports indicated that it was a conscious decision by Henkel India to move out of manufacturing of cosmetics like soaps per se and concentrate more on marketing the brands.

VVF, on the other hand, is one of the world's largest contract manufacturers of bar soaps and the owner of Doy Aloe Vera soap brand. It has manufacturing facilities in Mumbai and Gujarat.

Henkel India's net profit soared 418.9% to Rs 5.76 crore on a 12.9% increase in sales to Rs 152.36 crore in Q2 June 2009 over Q2 June 2008.Source: www. beta.profit.ndtv.com

And then through lots of search I got detailed articles talking all about the deal,

JANUARY 2010

As of January 18, 2010, Aramusk, Moloy and Mahabringol Brands of Henkel India Ltd. were acquired by VVF Limited. Aramusk, Moloy and Mahabringol Brands of Henkel India Ltd. com comprises personal care brands. Aramusk, Moloy are soap brands and Mahabringol is a hair oil brand. Henkel India Ltd. is based in Chennai, India.

Source: www.investing.businessweek.com

VVF pips Reliance Retail to acquire 3 Henkel brands

18 Jan 2010, 0000 hrs IST, Ratna Bhushan, ET Bureau

NEW DELHI: Mumbai-based VVF Ltd beat Mukesh Ambani’s Reliance Retail to acquire three brands from detergent and home care company Henkel India, namely Aramusk and Moloy soaps and Mahabringol hair oil. 

The move comes three months after VVF, the makers of Doy and Jo soaps and one of the world’s largest contract manufacturers of bar soaps, bought out Henkel’s plant at Tiljala, Kolkata. 

Rashmin Joshi, president and director (consumer goods) of VVF, confirmed the development. “We have been looking at such acquisitions as part of our core growth strategy,” he added. Reliance Retail, which was keen to buy the three regional brands on the block to boost its private brands business, lost out because Henkel was keen to sell them off along with the plant. 

“Reliance Retail was keen only on acquiring the three brands; so lost out to VVF,” an official directly involved with the development said. 

The total deal is estimated at Rs 22-23 crore, with the plant accounting for Rs 17-18 crore, the official said. 

Although the brands do not bring in much turnover at a national level, they are attractive local buys. Aramusk is among the oldest male deodorant soaps in the country with a loyal consumer, while Moloy sandalwood soap and Mahabringol hair oil have reasonable equity in eastern India. 

“We plan to take the three acquired brands national in due course,” said Mr Joshi, pointing out that his Rs 1,350-crore company already covers one million outlets across the country. The Kolkata plant, which can produce 10,000 tonnes of soaps per year and a smaller amount of toothpaste, will be VVF’s eighth plant. 

It will manufacture Henkel’s Margo, the three acquired brands, and its own Doy at the plant, Mr Joshi said. 

The Chennai-based Henkel India, 51% owned by Düsseldorf, Germany-based Henkel group, put the three brands on the

block last year. Media reports had said Marico and Emami too were interested in Aramusk and Moloy brands. 

The company wanted to prune its portfolio to focus on flagship brands Henko and Mr White (both laundry care products), Pril dishwasher, Margo soap, Fa deodorants and Neem toothpaste. 

Alongside, Henkel — which also makes haircare brands Igora, Bonacure, Glatt and Palette and Bref surface cleaners — also decided to divest the Kolkata plant to concentrate on marketing. 

Henkel had acquired the plant along with Aramusk and Moloy brands one decade ago when it bought out Shaw Wallace’s consumer care division, which included Calcutta Chemicals and Detergents India. 

Henkel now has only one plant in Pondicherry for manufacturing its laundry and home care products. About a dozen contract manufacturers make the rest of its products as the company wants to focus on marketing and distribution. 

Apart from soaps brands Doy, Doy Aloe Vera and Jo and contact manufacturing, VVF also makes oleochemicals, a key ingredient for soaps and cosmetics. In mid-2008, VVF had acquired Henkel’s soap manufacturing plant in Poland. It was the first European facility of the company with a global capacity of 300,000 metric tonnes.

Source: www.economictimes.indiatimes.com

ABOUT VVF:

VVF is a manufacturing and marketing company of personal care products and oleochemicals, with a worldwide presence. Headquarter in Mumbai, India; the company has 15 operating centers spread over Asia, the middle East, the Far East, Europe and North America.

Founded as The Vegetable Vitamin Foods Company Private Limited in 1939, by the Visionary entrepreneur Godrej Pallonji Joshi, the company started manufacturing partially hydrogenated vegetable oils and has since evolved into a global corporate entity.

The company is professionally managed and aggressive on growth plans and strategies. Hailed as a “jewel” and “billion dollar baby” by popular business magazines, VVF uses SAP and certificates like ISO and Kosher to improve its business efficiency and quality.

Goldman Sachs has predicted India to be one of the top three economies in the world in the foreseeable future. VVF is geared up to be at the forefront of that action.

VISION:

To be a world renowned provider of quality personal care products and oleo chemicals, delivering superior value to our customers.

VALUES:

The essence of a company’s values form an integral part in contributing to its success. The moral excellence of an organization is based on every individual’s virtues and at VVF we work as a team to sustain this belief.

Our core guiding principles of:

Integrity ensuring a fair and transparent work environment

Diligence of our dedicated workforce

Responsibility and compassion towards our community and environment

Are embedded in all our practices, resulting in highly motivated employees and satisfied business associates and customers.

RECOMMENDATIONS:

Aramusk now belongs to VVF, assuming that they will either sell us the formula or give us the marketing and distribution rights I wanted to know how much available market do we have, I couldn’t get direct market size or share of Aramusk or any other such soap so I extended my search towards products that have been running exclusively for men,

CREAM FOR MEN

Fair and Handsome is a brand that created the Men's fairness cream segment in India. Launched in 2005, the brand became the creator and the market leader of this segment.

Emami went for serious customer research which showed that 25-30% of customers of Fairness creams were men. After two years of launch, Fair and Handsome is worth Rs 45 Crore now commanding a market share of over 30-40% in the segment. The total fairness market is estimated to be around Rs 900 crore and men's segment is around Rs 160 crore.

Source: www.marketingpractice.blogspot.com

Deodorants For men:

As per industry estimates, the men’s grooming market in India is worth Rs 1,500 crore, and is expanding at a compound annual growth rate of 12 per cent. The deodorant market is a nascent category that has largely catered to women so far. However, analysts estimate that men-specific products account for at least 60 per cent of the market that has progressed beyond solid and liquid deodorants to deo-sprays.

CavinKare has also launched its home-grown ‘Spinz Men’s Deo’ brand in three variants. “We aim at taking the product to over 2.5 lakh retail outlets in 32 tier-I, II cities in the country which constitute a major portion of the men’s

deodorant market," Vineet Trakroo, vice-president, marketing, CavinKare, told Financial Chronicle

Axe: The Axe Effect

Axe deo was launched in India during 1999. HLL may have launched this brand inspired by the volume of Axe sold in the Grey market. At that time, the deo market was a nascent one with an estimated market size of Rs 72 crore.  Axe in 2002 was having a market share of over 35%. The brand is targeted at male aged 16-25. 

Though the positioning is different for Lifebuoy Soap there was an interesting statement in its report:

Lifebuoy Soap

Dated: 3rd Jan 2008,

Lifebuoy has share of around 21% of all soaps sold It is the only soap brand to have ever crossed 100,000 tonnes in sales in a single year. The brand has a mammoth user base of over 600 million consumers in India. Price- 7rs.

Source: www.mouthshut.com

The above information states that there is potential for such product to launch. Now there is good awareness among people about gender specific products and due to big stores and malls coming up the availability is also easier.

SWOT of ARAMUSK:

Strength:

Concept: The concept that is meant for men is interesting and attractive enough especially for youth wanting to look more appealing.

Fragrance: The Musk smell has always grabbed attention of men for confidence and females like men wearing such refreshing smell too, it’s a very positive point for us to have such smell in soap, the deodorants of this smell sell like hot cakes, Musk smells classic so we can place it as a premium and high end soap.

Shape: The shape of this soap is again pyramidal which is very unique, this makes soap dissolve less.

Weakness: Colour and Packaging: The colour of soap as well as the pack was not very appealing and on a dull side.

Advertisements: There were only couple of advertisements done for Aramusk, in fact when it was under Henkel’s stable there it was never advertised and that hampered the product the most.

Availability:The distribution of Aramusk don’t seem to be good, the availability of product is very poor, it may also be due to low demand but even the big stores don’t have this soap.

Threats:

The upcoming products for men claiming soft skin or fairer skin can be threat; also if similar liquid soap is launched then men would prefer that. Another big threat would be VVF shutting down this product forever.

Opportunities:

If product with similar fragrance is launched in multiple segments like face wash or for kids, family etc it would work wonders.