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Thursday, Aug 10, 2006

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Medimix eyes Rs 500-cr topline by 2010

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Chalking out investment plans to widen skincare, personal care bouquet

Growth plans
Targeting sales volume of Rs 235 cr for Medimix brand in the next couple of years
Setting up soap manufacturing unit, talcum powder facility in Uttaranchal
To improve institutional sales

Hyderabad , Aug. 9

Buoyed by the results from the changes carried out to its Medimix brand over the last six months, Cholayil Private Ltd, the Chennai-based Rs 160-crore FMCG company, is currently chalking out investment plans to foray into other skincare and personal care segments and come out with a wide bouquet of products.

While Medimix brand would be used for expanding the skincare product range, the company plans to exploit its Cuticura brand for personal care segment, Mr M.C. Anand Kumar, Senior Vice-President, Sales and Marketing, Dorcas Market Makers Ltd, the marketing arm of Cholayil, said.

Addressing the media to announce the launch of the Medimix sandal variant here on Wednesday, he said the company hopes to achieve a topline of Rs 500 crore by 2010. For the Medimix brand alone, the company targets a sales volume of Rs 235 crore in the next couple of years from the current level of Rs 140 crore.

While refusing to divulge the investment sizes, Mr Anand Kumar said the company is currently setting up a unit in Uttaranchal for soap manufacturing, in addition to the existing six units spread across the country. The company is also in the process of setting up a talcum powder facility in Uttaranchal under third-party arrangement.

According to Mr Anand Kumar, sandal soaps as a category enjoys a market share of 14.2 per cent of Rs 5,170-crore Indian soap market and has been growing at a rate higher than the industry average.

"Given the trend, we felt this would be the right time to introduce the Medimix Sandal variant," he said.

AP leading in market share

Among the sandal category, Andhra Pradesh is leading with a market share of 26.59 per cent, followed by Maharashtra with 16.61 per cent, Madhya Pradesh - 10.04 per cent, Uttar Pradesh - 7.67 per cent and Karnataka - 7.3 per cent.

Among the sandal brands, Santoor is leading with 31.5 per cent market share, followed by Nima with 21 per cent, Godrej - 21 per cent, Mysore Sandal with five per cent and others, 21.5 per cent.

Further, the company plans to strengthen its relationships with premium hotel majors for improving its institutional sales, which currently stand at around Rs 5 crore a year.

"We are now associated with around 4,000 mid-sized hotels for institutional sales. Soon we are going to have associations with three-star and above category hotels. We are also aiming at offering a broad bouquet of skincare and personal care products to the hotels soon," he said.

More Stories on : Market Shares | Brands | Personal Products | Soaps & Detergents

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