FMCG major Emami Ltd, has entered soaps business by introducing glycerine soap Emami Pure Skin.
Currently the product is on a test launch phase in Andhra Pradesh. Depending on the feedback, the company plans to introduce it nationally.
Emami Pure Skin, priced at Rs 23, is available in 75 gm pack in Andhra Pradesh.
Emami Pure Skin is available in three variants - Swiss Apple & Almonds, Saffron and Turmeric, and Olive and Aloe Vera.
“The total glycerine soap market is worth Rs 300 crore, growing at 15 per cent. We therefore see tremendous potential and hope to be a significant player in the near future in this segment. We aim at providing our consumers with three variants with natural and herbal ingredients. The marketing efforts for Emami Pure Skin will be supported by television advertising and a 360 degree communication campaign," said Priti Sureka, director, Emami Group.
According to analyst reports, while the premium soap category is dominated by brands such as Dove and Pears from Hindustan Unilever Ltd (HUL), and Cinthol from Godrej Consumer Products Ltd, at the mass level, there is intense competition among brands from companies such as Henkel India Ltd, Wipro Ltd, Reckitt Benckiser (India) Ltd, Nirma Ltd as well as HUL and Godrej.
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With an estimated Rs 6,500 crore annual business, the traditional soaps category has become increasingly cut-throat with new brands and rising raw material costs putting intense pressure on margins.
In a parallel development, the Rs 1600 crore Emami Group has made its debut in the edible oil business.
Emami has set up a Rs 250 crore state-of-the-art manufacturing facility at Haldia to produce palm oil, soya oil and rice bran oil. The plant will produce 1000 tons of palm oil, 600 tons of soya oil and 200 tons of rice bran oil per day in this current fiscal.
Spread over 40 acres, the unit has commenced commercial production and is the biggest of its kind in Eastern India. A 5 KM pipeline has been laid to bring oil directly to the plant from Haldia port. While crude palm oil is being procured from Indonesia and Malaysia, the crude soya oil will be sourced from USA and Argentina.
The bulk of the production equipment has been supplied by Desmat Belstra, an Italian Belgian joint venture company, Alpha Level of Sweden and Andritz of Austria.
Initially Emami will supply the produce in West Bengal, Orissa, Bihar, Jharkand, Uttar Pradesh, Maharashtra and North Eastern states of India and then plan phasewise roll out nationally with its own brand.
To begin with, the edible oil range is being sold in bulk to industries that are into production of chips and biscuits. It will also be available in 15kg tin containers.