industry

RSH Global eyes bigger personal care pie


Buoyed by increasing demand for quality personal care products, owners of brand Joy, RSH Global, has chalked out a multi-pronged strategy to increase turnover from the segment. The company hopes to gross Rs 1,000 crore turnover from the personal care business by 2022-23 compared to Rs 500 crore recorded in 2019-20.

Unveiling the growth strategy, RSH Global Chairman Sunil Agarwal said: “The company’s future growth strategy entails ramping up capacities, expanding geographical reach and new offerings.”

He said that the company is setting up a new plant in Himachal Pradesh at an investment of about Rs 100 crore. With a capacity of 35,000 tonnes per annum, it will employ 500 people and is expected to commence operation by March 21. Efforts are on to acquire land spread across 1.14 lakh square feet near its existing plants at Baddi.

RSH Global has two manufacturing plants at Baddi in Himachal Pradesh and one each in Kolkata and Guwahati. The proposed greenfield unit will be the company’s fifth unit and its third in Baddi. With brands like Joy, X-Men and Karis under its umbrella, the company aims to offer quality face care, body care and hair care products at affordable prices.

Sales from personal care business is about to touch Rs 500 crore on an annualised basis in the coming fiscal 2019-20 and will cross Rs 1,000 crore by March 2022-23. He said that the company has already cornered 3% of the skin care market. According to the recent Nielsen MAT data, the Joy brand has cornered a 46 % market share in the moist cream category for women and a 20% market share in the sunscreen category in terms of volume.

“Since we intend to have presence in multiple personal grooming categories targeting both men and women, we are spending huge sums to expand and enter new geographies. We have retail presence in 7.5 lakh outlets and plan to add 3.4 lakh new outlets in India shortly,” said Agarwal. The company hopes to increase its presence to 40 countries, from 25 countries now, through its brand Karis. The Karis range offers skin cream, lotions, shampoo, face wash, scrub, hair creams, conditioners, lip balms and other beauty products and is sold in international markets beyond SAARC.

The company is looking to launch some eight-to-nine personalised products for consumers beginning April 2019. “It could be in the sunscreen category, or an anti-ageing cream, a whitening cream or a day cream for men or women or both. Our R&D facility is working on product developments. These are young, modern and emerging categories and will meet the consumer’s changing needs and aspirations,” said Poulomi Roy, chief marketing officer, RSH Global. The move will not only help the company expand its product portfolio, but offer focussed personal grooming products compared to its current portfolio of products used by consumers on a daily basis, like summer or winter lotion, face wash and scrub.

Aggressive marketing and brand promotion activities kicked off from early December and are expected to impact the company’s bottomline. The company is trying to grow rapidly in Maharashtra and West Bengal, scale up in existing geographies like Delhi, Rajasthan and Uttar Pradesh and enter South India to corner a larger pie of the personal grooming space over the next three years. Expenses on promotional initiatives will be roughly Rs 180- 200 crore per annum over the next three years from Rs 60-70 crore per annum now.





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