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Elder forays into baby care goods

business Updated: Nov 21, 2010 23:43 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In a bid to enter new segments in personal care market, Elder Health Care Limited (EHCL), part of the Rs 800 crore Elder Group, has inked an in-licensing agreement with Mann & Schroder, Germany based personal and hygiene care products company, to introduce the entire range of two of the company's brands (Dulgon skin care and Sanosan baby care) in India.

This deal marks the company's foray into the Rs 1600 crore baby care market in India which is growing at a rate of 17% every year.

Mann & Schroeder, founded in 1951, is an established specialist in hair and body care products for all age groups in the German and European markets and has its presence in 60 countries.

"With Mann & Schroder we are able to add another partner to our establishment which is a proven international brand," said Anuj Saxena, managing director, EHCL.

"We are focusing on high growth sectors where we can not only garner a share from the existing players but also expand the market by penetrating newer areas," Saxena said.

The Baby care sector comprises of four segments- baby food, skin care, toiletries and diapers and hair care.

Johnson & Johnson and Wipro dominate the Baby Care segment but recent entrants such as Marico (Sparsh brand of Baby Oil and Baby Bathing Bar), and Aditya Birla group (Puretta biodegradable baby care wipes) have made successful inroads in the market in the last few years.

The Dulgon range comprises of a wide range of products for body and hair care and Sanosan cleansing and care products cater to the baby skin, adults with sensitive skin and special products for special condition of motherhood.

The two brands are jointly expected to add about Rs 30 crore to Elder's turnover by 2014-15.

"Our strong marketing and distribution network is encouraging us to launch brands - own or in-licensed - at a rapid pace as the distribution and supply logistics are already in place," Saxena said.