rp sanjiv goenka group: Our key differentiation is that it is a natural led brand, says Shashwat Goenka, RP Sanjiv Goenka Group
The Group which has been present in packaged snacks in Ayurveda segments is now foraying into personal care. What is the strategy behind this decision?
As you are aware, we have a very large ambition when it comes to consumer and FMCG. This is just a step in that direction. We do have a presence in snacks through our brands Too Yumm and Evita. We also have a significant presence in the Ayurveda space. Dr Vaidya’s is a brand we acquired three years ago and now we are venturing into the personal care segment as well. All of this is to the end of becoming a large FMCG company. Personal care space in India is about Rs 70,000 crore overall and the specific space that we are entering into is hair care and skin care. It is about half of that, so Rs 35,000 crore. It is the largest market within personal care that we want to target.
A personal care market in India is about Rs 70,000 crore out of which 50% is hair and skin care. What is the company targeting in terms of revenue as well as growth from the personal care business in the next couple of years?
This is a segment that is growing at 8% to 10% CAGR and as far as the group is concerned, we are targeting Rs 500 crore revenue in the next five years. If you count that from a market share perspective, it would be about 1.5% to almost 2% of the market.
This space has already seen quite a bit of competition. What differentiates you from the others and how are you going to compete with well entrenched brands?
There is a lot of competition in this space. We will be competing with the likes of Himalaya, Dove, Clinic Plus, Pond’s, Clean & Clear. I think our key differentiation is that it is a natural led brand. It is a brand which has taken two key ingredients and we have developed a super blend technology. We combine one new age ingredient which solves the particular problem with one ingredient which is an age old ingredient and created a super blend. It is a product that is extremely efficacious as per our initial consumer and clinical response.
For example, if you look at our hair fall arrest shampoo, it has the age old ingredient bhringraj mix with the newer age ingredient Red onion and we have seen up to 97% reduction in hair fall from very initial use. Our entire range is free from harmful chemicals, so there is no sulphates, no parabens. All of these are not good for your skin or hair care. What really sets us apart is the fact that beyond being ingredient led and having removed these harmful chemicals, we are also extremely affordable. We are at a price parity when it comes to all of the competition that I named earlier. You get an excellent product at this price point which is efficacious. I think that is what really what differentiates us and that is really what our USP is.
What is your target audience and the target consumer group? How is it that you are pricing your products as opposed to your peers?
Talking about our real target audience, I think they are going after every single consumer who is out there. Our target consumer in hair and skin care segment is the one looking to solve specific problems, the one looking for a solution that is natural. Given the pandemic, everyone is moving towards things that are better for you. We want to tap into that segment.
Essentially millennials and Gen Z consumers who understand the need to go more natural but yet want quick results. In a way, almost like instant gratification and are looking for a product that is natural yet effective. It is not very heavy on the pocket also. We have nine unique products. For example, our 80 ml shampoo is priced at Rs 70, just to give you a perspective of where we are vis-à-vis the competition.
What are the other categories that we can expect from you foraying into going forward?
When we look at the larger FMCG strategy, it is built around multiple pillars. Max is one of them, Ayurveda is another, personal care is a third. There are a couple of others but we want to first grow and establish our presence in these categories before we venture into newer categories.
How do you plan to grow in this segment? Any inorganic growth? Are you planning any acquisitions?
If you really look at it, while Too Yumm was organic, Evita was an acquisition. Our acquisition of Dr Vaidya’s is our organic entry into the space of personal care and going forward across FMCG. In these categories as we grow and expand, there will be a combination of both Greenfield as well as Brownfield.