The Hindu Business Line : Toothpastes lead FMCG sector squeeze

Colgate Dental Cream continued to be the clear leader in toothpastes, with 36.1 per cent value share of the market, with Pepsodent a distant second at 13.2 per cent.

New Delhi , May 24

MIRRORING the downslide in the FMCG sector last fiscal, eight of the 14 product categories mapped by market research agency AC Nielsen showed a marked decline in terms of market worth.

The steepest fall was seen in toothpaste sales, which slumped by a whopping 12.5 per cent to Rs 1,469 crore with toothpowder sales also being reduced by a significant eight per cent. The others that saw a slump include candy (- 8.2 per cent), chyawanprash (- 9 per cent), digestives such as Hajmola (- 8.3 per cent) and shampoos (- 3.8 per cent).

However, among the product segments that grew in a sluggish market last year, the margin of growth was comparatively much lower. In fact, product segments where sales increased form part of larger categories which have overall shown negative growth, but the sub-segment has grown. For example, while hair oils as an overall product category showed a mild decline in 2003-04 at Rs 1,410.6 crore, the light and perfumed hair oil sub-segments within it grew in single digit range during the period under review.

Similarly, while shampoo sales have declined overall, those of anti-dandruff shampoos registered a slight jump. Coming to segment specific performance, Dabur India maintained its lead in baby massage oil, chyawanprash and digestive product segments with 29.2 per cent, 61.7 per cent and 68.3 per cent market shares respectively with brands such as Dabur Lal Tail, Dabur Baby Olive Oil, Dabur Chyawanprash and Hajmola.

Colgate Dental Cream continued to be the clear leader in toothpastes, with 36.1 per cent value share of the market, with Pepsodent a distant second at 13.2 per cent. New entrant Dabur Red Toothpaste accounted for less than one per cent of this Rs 1,468.70-crore market. However, in toothpowder segment, while Colgate still ruled with almost half the market under its belt, Lal Dant Manjan by Dabur was pegged at about 30 per cent of the remaining market.

Hindustan Lever was the clear leader in shampoos with Clinic Plus and Sunsilk accounting for about 40 per cent of this Rs 890-crore market, followed by Vatika Cream Conditioner from Dabur at about 4.4 per cent.

Of the 14 categories the market research agency mapped, the largest was toothpastes at Rs 1,469 crore, followed by hair oils at Rs 1,411 crore in 2003-04, while the smallest was baby massage oils at a mere Rs 85 crore.

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