Even as Austrian viscose fibre-maker Lenzing starts production at its Tencel cellulose fibre plant in Upper Austria, nearest competitor Birla Cellulose, Aditya Birla Group's umbrella brand for its range of cellulosic fibres, has commenced operations at its greenfield project in Vilayat, Gujarat.

About five years ago, the Aditya Birla Group was in talks to acquire Austria’s Lenzing, though the deal was inconclusive. While Lenzing is a global leader in man-made fibres, with a market share of 20 per cent, Grasim holds 8 per cent, and an additional 6 per cent share in viscose staple fibre (VSF) marketing under the Birla brand of Thai Rayon (2 per cent) and Indo Bharat (4 per cent).

While Lenzing's new plant has a capacity for 67,000 tonnes per year, with an investment of $201.5 million (around ₹1,213 crore), the Indian company has invested ₹2,500 crore in its fourth plant in Gujarat. The plant can produce 360 tonnes of fibre per day.

Speaking to BusinessLine , Rishi Sharma, head of marketing, Birla Cellulose, said Lenzing was already catering to an evolved market in the West, and did not have to face the challenges of a growing market like India.

Disposable wipes

“The developed regions of Europe and the US are evolved in terms of hygiene care, and the large affluent population and lifestyle trends focus on time-saving products. Economic growth in India, on the other hand, is set to ensure a rapid growth for wet wipes,'' said Sharma.

Sharma added: “The global market size for wipes is around $35 billion. In India though, it is only $5 million. There is a huge opportunity and potential in India, which has a growing market for hygiene on the go.”

Growing hygiene market

A Euromonitor study pegged India’s hygiene industry in 2013 at $466 million (₹2,805 crore), up 18 per cent.

Sharma insists all the action will be centred here. “India has witnessed incremental volume growth over the last 10 years, resulting from increased acceptance and usage of personal hygiene products. Consumers have developed the habit of using wipes regularly. Indian food habits involve eating with the hands, and a hand sanitiser cannot clean them effectively,” he said.

While the domestic market for wet wipes is around ₹100 crore, the baby wipes segment is ₹65-75 crore and personal hygiene wipes ₹30-40 crore. At the Aditya Birla Research Centre in Taloja, near Mumbai, the company is constantly working on innovative solutions, to be marketed under the Kara brand.

Birla Cellulose is focussed on building its core category of disposable and hygienic wipes. The company has rolled out a wide array of products. Like make-up wipes (mascara, kajal removal wipes), feminine hygiene (toilet cleaning) wipes, and sunscreen wet wipes, says Sharma.

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