New Delhi: Godrej Consumer Products (GPCL) has forayed into women’s hygiene market through a joint venture with Sweden-based SCA Hygiene Products AB, with plans to set up a Rs40-crore manufacturing unit.
Godrej SCA Hygiene, an 50:50 joint venture, has introduced sanitary napkin brand ‘Libresse’, from SCA’s global portfolio. It seeks to capture 15-20% share of the women’s hygiene market over the next three years. The market is currently pegged at Rs700 crore and growing at 9% a year.
“With the new brand we intend to tap the potential of the market, which currently has low penetration,” Godrej SCA Hygiene India vice-president and business head, Samir Prasad told PTI.
He said the company, which plans to manufacture a range of products in India, has already acquired a site near Nasik to set up a manufacturing unit. It would invest Rs40 crore in the new unit, which is likely to be operational by the end of this year.
The JV, formed in March last year with a capital of Rs20 crore, has already introduced two new brands of diapers for babies and adults.
Manufacturing and marketing of the new product range will be handled by the JV company, while the sales and distribution will be taken care of by GPCL, which has a strong distribution network across India with 6.5 lakh outlets.
Commenting on the Indian market SCA personal care category marketing director, Latin America, and AMESA Rolf Lipschutz said, “We have a lot of expectations from the Indian market. However, the penetration level here is very low with only 2 pieces annually as against 40 billion in China.”
Libresse sells over 1,800 million pieces every year in 50 countries.
The new product is priced lesser or at par with the competitors, and the launch will be supported by a print and television ad campaign designed by ad agency, TBWA.