Mumbai: Consumer goods and services company Marico Ltd plans to enter the skin care and wash segments with its Parachute brand as it looks at expanding its consumer goods business, according to a top company executive.
“We plan to further leverage these brands to get into new categories like skin care and wash under Parachute and non-oils on the health food platform with Saffola,” said Saugata Gupta, chief executive officer (consumer goods), adding that both brands are “still underleveraged”.
Over the years, Marico has extended Parachute and Saffola, its flagship brands that contributed 76% of its Rs1,919.24 crore standalone revenues in fiscal 2009, into new categories such as Parachute Advanced Cooling oil.
The brands have huge equity that allow for brand extensions said Preeti Panchal, research analyst, SBI Capital market Ltd. “Whether it’s Saffola or Parachute, it can be seen that Marico is creating a line of consumers that remain within its franchise as they get associated with the brand.”
Brand extensions from skin care to hair care and vice versa are common globally. “Parachute has a connotation with coconut oil. They have been trying to extend it to other variants like Jasmine, which has yet not been received well. How it builds a skin care brand needs to be seen,” said Anand Ramanathan, consumer goods analyst with KPMG Advisory Services.
Marico is known for its strategy to dominate in niches in which multinationals don’t have a strong presence. “With this diversification, we will continue to follow our policy even as we look at new categories,” said Gupta who refused to give any further information