FMCG major Jyothy Labs is readying to enter the ₹1,600- crore toilet-cleaning agent segment under its own brand Tshine.
It will be taking on big brands such as Domex (HUL) and Harpic (Reckitt Benckiser) with a ‘differentiated’ product which is pegged as ‘organic’ without the use of harsh chemicals.
“Last quarter, we entered the toilet-cleaner segment with Tshine in Kerala and have already managed to garner a 4-per cent share in the State. Soon, we will roll out the brand in other southern States like Tamil Nadu and Andhra Pradesh and expect to garner a 10 per cent share in the first year before going national,’’ said K Ulhas Kamath, Joint Managing Director.
The Mumbai-based FMCG company is already competing with MNCs across categories such as soaps (Margo), dishwashing agents(Pril) and detergents (Henko). “Tshine has been pegged as an organic product, which is acid-free, and will be the biggest differentiator from the rest of the brands,’’ he added. The product will be competitively priced against the bigger brands at ₹80 for 500 ml.
National presence
Post the merger of its operations with German multinational Henkel, Jyothy Labs enjoys a national presence with some of its acquired MNC brands like Henko and Pril.
The top three brands continue to be from the Jyothy Labs stable. Its leading brand Ujala, which dominates the whitening category with a turnover of ₹350 crore, is followed by Exo (dishwash) with a similar turnover and Maxo (insect repellent) at ₹300 crore.
“About 40 per cent of our turnover comes from the Henkel brands. But over time, we expect equal contribution between Henkel and Jyothy’s own brands,’’ he said.
With rural sales growing faster than urban currently, Jyothy Labs will be enhancing its presence in the smaller markets.
“Rural offtake has been better than urban. We have about 45 per cent of our sales coming from the rural markets which is growing at 15 per cent unlike urban which is at 10 per cent.
“Our top line growth projections at 12-14 per cent will be largely on the back of rural demand with expectations of a normal monsoon,’’ said Kamath.