Soaps, cosmetics & other FMCGs may get cheapear.
NEW DELHI: Fast-moving consumer goods (FMCG) may become marginally cheaper for consumers following the 2% reduction in excise duty. However, a
large part of FMCG product manufacturing is based in excise-free zones like Uttaranchal and Himachal Pradesh. The final impact of the excise duty reduction on product prices will depend on the ratio of manufacturing in excise-free zones to that in nonexcise free zones. Companies like Hindustan Unilever (HUL), Procter & Gamble (P&G), Godrej Consumer Products (GCPL), Colgate , Dabur and Marico have production facilities at excisefree zones. The excise reduction , nevertheless, strengthens the hands of marketers who will benefit from cost reductions on packaging materials and may intensify promotions to boost sales. GCPL executive director & president H K Press said: ‘‘ A large part of our manufacturing takes place in excise-free zones and thus the impact is not much. We are not planning to reduce prices as raw material costs are seen to be bottoming out.'' Press said the company may increase trade and consumer offers. Dabur India executive director Rajan Varma said: ‘‘ There could be some savings on excise paid on raw materials, which would result in overall cost efficiencies and savings for Dabur India.'' The categories on which excise duty has come down from 10% to 8% include soaps, skin-care , shampoos, hair oils, hair colours and cosmetics among others. Encouraged by the news, a P&G spokesperson said: ‘‘It should stimulate consumer demand. We will assess the implications of this reduction and take decisions as is appropriate.'' Prices of certain products were recently dropped by market leader HUL, which witnessed a volume growth decline in soaps and detergents in the December quarter.
Indian FMCG major CavinKare has entered into a strategic alliance with Coty Inc the world’s leading fragrance marketer, to market the entire adidas personal care range in India. Coty Inc is the exclusive global licensee of the adidas brand name in so far as personal care products are concerned.Both Coty Inc and CavinKare foresee a long term marketing alliance to successfully establish the business in India. This alliance will strengthen adidas’ position as a major player in the male personal care segment.
To begin with CavinKare will market adidas personal care products under the Sports Sensation and Action 3 range, which include top selling male body sprays and fine fragrance ranges. The men’s deo body sprays and fragrance market is one of the largest and fastest growing segments in India. In light of this alliance, the Indian market will also take part in global product launches in the future.
CavinKare’s Chairman and Managing Director, C K Ranganathan, states that, “Personal care is Cavinkare’s core business. The Indian deodorant and fine fragrance market is vastly untapped. With this alliance, we are hoping to unlock the potential of the Indian fragrance market with a strong lifestyle brand like adidas. CavinKare, has over the last 25 years, gained a very good understanding of the Indian consumer and has established a strong distribution network, both of which will help in this endeavour.”
Mr. Venkatesh Babu, Regional Managing Director of Coty Inc says “In this endeavour, as the license partner, Coty Inc. will be assisting CavinKare to build up the market for adidas personal care. Coty Inc., known for its astute acquisitions and licensing partnerships, is the global leader in fragrances. Coty has built a unique portfolio of brands that have produced some of the strongest consumer franchises in history.”
Since 1983, CavinKare has enviably emerged into a successful business enterprise in India’s highly competitive FMCG sector. Today CavinKare has business interest in personal care, food & beverages, dairy products and beauty services. Brands in the CavinKare portfolio include Chik, Nyle, Meera, Indica, Fairever, Spinz, Ruchi, Chinnis, Maa, Green Trends, Limelite, with Cavin’s Milk being the latest addition.