Godrej India''s recent acquisition of three detergent brands -
Ezee liquid detergent, Trilo and Key - from Cussons India, indicates its
commitment to focus on detergents market with a view to becoming a serious player in
Adi Godrej, chairman of Godrej Industries, says that this
acquisition reaffirms company''s commitment to fast moving consumer goods (FMCG)
business. Ezee as a brand he feels, will add tremendously to the topline growth of the
company. It also intends to retain the leadership position in detergents market by
offering customers better and high quality products. In the near future, he says, Ezee
will be relaunched with added consumer benefits.
Ezee, which at present, is one of the largest selling
liquid detergent brands in India with a sales of over Rs 18 crore, was initially launched
by Godrej Soaps in 1983. It was later transferred to Procter & Gamble India in 1993 as
a part of the joint venture pact between the two companies. Cussons India acquired the
brand from P&G in 1998, and has now sold it back to Godrej Soaps.
Godrej has its own liquid detergent brand Dip which has a
market share of 15 per cent in the liquid detergents market. With Ezee now in its
portfolio, Godrej''s share will rise to over 75 per cent of the Rs. 35-crore
liquid detergent market in India.
In addition to these brands, Godrej has acquired rights to
manufacture, sell and distribute Imperial Leather soap & talc, a brand owned by
Cussons UK. The Indian subsidiary of the UK-based company has retained its marketing
rights over the brand.
Godrej will provide its manufacturing and distribution
capabilities to Cussons for Imperial Leather which will help Godrej utilise its existing
capacities better and help strengthen the distribution of Imperial Leather.
Trilo & Key are detergent brands with good consumer
recall and potential with a strong market in the South, while Ezee has a strong base in
the North and East. The company is planning to develop Trilo and Key for the rural
The company has acquired the rights to these brands for
India, Benelux and Iran from Cussons.
Cussons Pvt Ltd was formed in 1995, and has been operating
in India since then. In 1997, the company went in for a national launch of Imperial
Leather soap and talc and in 1998 it acquired the Ezee brand. It was able to increase the
volume of sales by over than 15 per cent as against the previous year.
Cussons India is part of the UK-based Paterson Zochonis
group of companies. The Group which is involved in selling personal and household cleaning
products, has a turnover of US $1 billion, and has operations in more than 20 countries
around the world. Imperial Leather is a leading brand in many countries and it is also a
key brand of the group.
Godrej has been showing a sluggish
performance in the recent past. However, this fiscal year, the company has shown an
improved performance owing mostly to the restructuring efforts undertaken by the company.
Thus, for the period ended June 30, 1999, Godrej reported a turnaround in its first
The company''s net profit, PAT has registered an
increase of over 400 per cent to Rs. 5.21 crore as against a PAT of Rs. 1.01 crore in the
same period last year. Gross profit, or, PBIDT, registered an increase of 35 per cent at
Rs. 30.05 crore as against Rs. 22.22 crore in the same period last year.
Sales volumes were maintained at Rs. 193.52 crore
for this quarter as against sales of Rs. 191.29 crores in the same period last year. While
the turnover from the soap contract manufacturing operations of the company dropped in
this period, the sales of the Company''s own brands improved.
The sales of Godrej toilet soaps grew by 17 per
cent, hair dyes by 20 per cent, shaving cream by 21 per cent as against sales in the same
period last year. Mr. Adi B, Godrej, attributes this turnaround to the good performance of
the consumer products division of the company and the recent restructuring efforts which
resulted in the creation of divisions and the operational efficiency enhancement
activities undertaken by the company.
Recently, Godrej appointed marketing consultants
Samsika to rehaul the positioning of soap brands Cinthol, Evita, Ganga and Crowning Glory.
The new strategy is expected to include designing a new logo, repackaging products,
revising prices to cater to various price points and maybe even a new product launch.
Godrej Soaps Ltd. is a major player in the Indian
soaps & toiletries market with leading brands such as Cinthol, Ganga, Godrej No.1,
Shikhakai and Evita range of soaps, Godrej shaving cream and hair dyes, and Dip liquid
With a turnover of over Rs. 900 crores, the
company has four manufacturing facilities at Mumbai in Maharashtra, Malanpur in Madhya
Pradesh, Silvassa in Dadra and Valia in Gujarat. It is also a leading manufacturer of
surface active agents and oleochemicals.
Other associate companies include: Godrej Sara
Lee Ltd., Godrej Pillsbury Ltd., Godrej Foods Ltd., Godrej Agrovet Ltd. and Godrej
Properties and Investments Ltd.