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Nirma in pact with P&G to make Camay

Our Bureau


Mr Hiren Patel, Chairman & Managing Director, Nirma Consumer Care Ltd, at the launch of Camay soap in Mumbai on Tuesday.

MUMBAI, Oct. 8

THE Rs 2,500-crore Nirma Ltd has entered into a licensing agreement with multinational firm, Procter & Gamble Home Products Ltd, to manufacture, market and distribute the soap brand `Camay' in India.

According to the agreement, Nirma will use the trademark of Camay for a rolling period of five years and will give royalty payments to P&G. The licence agreement was made through Nirma's wholly-owned subsidiary, Nirma Consumer Care Ltd.

Speaking to reporters in Mumbai on Tuesday, Mr Hiren K. Patel, Chairman and Managing Director, Nirma Consumer Care Ltd, said that the company had plans to introduce two variants of Camay — Milk Cream and Saffron — in the premium segment of the soap industry. "We have priced the product Camay at Rs 13 for a 100 gram pack. This would be significantly lower than other competitors in this premium segment," he added. The other brands in the premium segment include International Lux which is priced at Rs 15 per 75 grams, Dove at Rs 35 for 100 grams, Pears at Rs 19.50 for 75 grams, Mr Patel said.

"We will position the brand as a skincare brand giving it a broader perspective rather than limiting it to a particular segment," he said. On being queried about the rationale behind the agreement especially when it failed to attain success when P&G launched it in 1993, Mr Patel said that this time Nirma would be positioning it in such a way that all aspects of pricing, distribution and marketing would be taken care of. "We are hopeful that Camay will do well this time round," he added.

Nirma currently enjoys 20 per cent market share in the toilet soap industry under its umbrella brands `Nirma' and `Nima'. The company planned to introduce a couple of line extensions in the industry every year, Mr Patel said. At present, the soap industry is going through a lean phase with the industry figures registering de-growth last year. "However, this year, we expect the industry to at least break even," Mr Patel said.

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