love_gundu22
Praveen Gurwani
From battery cells to mosquito repellents from cosmetics to condiments, Indian companies are looking to diversify beyond their core businesses and expand in the Rs 50,000 crore consumer goods industry, reports CNBC-TV18.
2006-06-19 20:23
Story continues below
advertisement
From battery cells to mosquito repellents from cosmetics to condiments, Indian companies are looking to diversify beyond their core businesses and expand in the Rs 50,000 crore consumer goods industry, reports CNBC-TV18.
That's the energy from Eveready cells, the battery brand is back now with a fresh agenda. It's using its equity to enter the mosquito repellent market with a brand called Powercell and Pidilite, which makes Fevicol, now also makes a sticky delicacy, chikki, branded Chikkers.
Chennai-based cosmetics maker Cavinkare, has been offering pickles and masalas since 2003.The message is clear it's not about focussing only on your core capabilities any more.
"We are very good at marketing and distribution. That's our core competence. And I'm sure various other FMCG companies will be looking at it like that. If you can create a brand, understand the mindset, whether it is eatable or X,Y,Z. You can carve out a market share and that works well," said CK Ranganathan, CMD at Cavinkare.
The fast moving consumer goods industry is stirring to life again after three years of slow growth, the sector is finally looking up. According to AC Nielsen, the FMCG sector grew 5.3% to Rs 52,000 crore at the end of last year.
Many companies have found success from the exercise like cigarette maker ITC, which turned baker, making Sunfeast biscuits and pasta, now has about 5% market share in the biscuits market.
ITC will move deeper into the FMCG industry, when it launches mass market soaps and shampoos, Superia. Cavinkare claims its foods arm contributes 10% to its revenues.The energy of the FMCG industry is contagious and Indian companies are not complaining.