Dettol targets Rs 1000 cr with extensions

To make its popular disinfectant Dettol a Rs 1,000-crore brand in three years, FMCG major Reckitt Benckiser is all set to launch its flagship brand's extensions in the Indian market.

The first of these extensions, an anti-bacterial surface cleanser will be launched nationally over the next six months. The launch will be followed by an introduction of other brands from the international portfolio of Reckitt Benckiser including their air care brand Air Wick.

"Dettol is the biggest brand retailed by Reckitt Benckiser India and by introducing the new products under the Dettol brand, we expect it to make it a Rs 1,000 crore brand by 2010," said Chander Mohan Sethi, chairman and managing director, Reckitt Benckiser India.

Dettol currently contributes about Rs 400 crore or 25 per cent of the company's Rs 1,200 crore revenue in 2006.

The surface cleanser is said to safely kill harmful bacteria such as Salmonella, Listeria and E-Coli. Dettol, internationally has other brand extensions such as anti-bacterial personal swipes and so on, but executives did not specify when these brands would enter India.

Reckitt is also entering the air-freshener segment that is currently dominated by brands like Godrej Sara Lee's Ambi-Pur.

"We will be introducing more brands from our global portfolio within the next six months. We may not make money on the new brands for a period as long as 3 years but our investments in these new brands will be significant," Sethi added.

The company is also expanding on the manufacturing front with two new plants coming up in Jammu and Sitarganj (Uttranchal) with an investment of Rs 125 crore. The Uttranchal plant is expected to bring in a turnover of Rs 1,000 crore for the company while the Jammu plant is expected to contribute Rs 500 crore, once the plants become fully functional. The full operations are expected to begin within 6 to 9 months. Compamy executives did not, however, spell out the exact volumes that would be produced in these new units.

"We are also planning to make India a major sourcing hub. Currently, we have operations spread across 60 countries and we export to around 140 countries. At present, we export close to 10 per cent of our overall production," said Sethi.

India has also been identified as a new destination for the company's R&D facility after the US.

"Our aim is to achieve faster growth than the industry driven by increased penetration of personal and home care products and this growth should drive our top-line to the Rs 2,500 crore mark by 2010," Sethi said. Reckitt Benckiser (India), formerly known as Reckitt & Colman, controls popular household goods brands such as Harpic, Mortein, Lizol, Cherry Blossom, Colin, Disprin and Strepsils, among others.