Haeal Enterprises, a leading player in Kerala’s FMCG market, is aiming to achieve ₹500 crore in five years. As part of the expansion plans, the company recently completed the acquisition of two Kerala-based FMCG firms -- Lora Soaps and Orocleanx.
While Lora Soaps was acquired as part of the plans to extend its presence into the category of budget soaps, the acquisition of Orocleanx helped Haeal to expand its presence into the home-care sector with brands such as Squad, Cliq, Day Nite, Check Out and Oroclean.
Orocleanx has as many as 120 products in the home care space, including floor cleaner, toilet cleaner, drain cleaner, dish-washing liquid, bleaching powder, phenyl and essential oils among others. The company is looking for further acquisitions as part of its business expansion plans.
Haeal, which recorded sales of ₹25 crore in the last financial year, is aiming to achieve ₹45-50 crore in the current financial year. “Last year, sales were predominantly driven by sanitisers and masks. With the acquisitions and change in product mix and organic growth of our personal care products, the share of sanitisers and masks has come down to less than 10 per cent. We hope to cross ₹45-50 crore mark this year,” said Rahul Mamman, Founder and Managing Director, Haeal Enterprises.
The company is looking at both organic and inorganic ways to grow. “In certain segments, we want to grow inorganically. As part of the inorganic expansion plans, we are planning another acquisition in the hygiene space. Equal importance is given for organic growth also”. The company is looking for a partnership in the hair oil category.
For Haeal, Kerala is the core market and would continue to do so. The company’s products are also available at the stores of Lulu Group outside Kerala. Meanwhile, the company is planning to make its entry into Tamil Nadu with a small subset of products and will launch the products in Nagercoil and Coimbatore on pilot basis.
To a question on inflation, Mamman said that huge inflationary pressure exists. “Many small players have had to scale down their operations. We feel in the short term there would be pain, but we don’t intend to increase prices and will absorb the shock. We will sacrifice our margin till it is something that we can bear.
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