Brands that built India

Started in 1897 as a locks manufacturing company, the Godrej Group is currently one of the most accomplished and diversified business houses in India . The Godrej brand LOCKS, CUPBOARDS, REFRIGERATORS, HAIR DYE, EDIBLE OIL AND SOAPS.

Top brands Indica, Tanishq, Titan, Voltas and Tetley. The Bajaj brand 1926 TVS Group South India 1911 automotive component manufacturing, automotive dealerships and electronics. The Wadias' first venture, over 250 years ago, was in the area of ship-building, more than 355 ships were designed and built by the Wadias, including men-of-war for the British Navy. In 1879, Nowrosjee Wadia set his sights on India 's mushrooming textile industry. The Bombay Dyeing & Manufacturing Co Ltd was born on August 23, 1879. More than a company, a legacy was born. Hindustan Lever Ltd, now Hindustan Unilever Ltd, has famous brands like Pears, Lux and Vim to its portfolio. Vanaspati was launched in 1918 and the famous Dalda

brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HLL in November 1956. Cadbury 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Some of the key brands are Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70%.

The TTK Group 1928

Prestige Pressure Cookers, Woodward's Gripe Water, Kohinoor, Brylcreem and Kiwi Shoe polishes. ITC 1910 Cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel and greeting cards. Indian Oil Corporation Ltd 1964 Servo lubricants and Indane LPG -- used in 40 million homes as cooking fuel and commands over 48% market share in the country. Indian Oil Corporation is now a Fortune 500 company.

Everybody wants brands. And there are a lot more poor people in the world than rich people. To be a global business and to have a global market share you have to participate in all segments.

- Keki Dadiseth, erstwhile Chairman, HLL . The basic objective of Project Shakti is to economically empower underprivileged rural women by creating income-generating capabilities and providing a sustainable micro-enterprise opportunity in addition to improving rural living standards through health and hygiene awareness. -Sharat Dhall, Marketing Manager -Rural, HLL . Introduction In the early 2000s, around 700 million people, i.e. 70% of the Indian population lived in 6,27,000 villages, in rural areas. Of this, 90% were concentrated in villages with population less than 2000. According to a study conducted in 2001 by the National Council for Applied Economic Research (NCAER), there were as many "middle income and above" households in rural areas as there were in urban areas. There were almost twice as many "lower income households" in rural areas as in urban areas. There were 2.3 million "highest income" households in urban areas as against 1.6 million in rural areas. NCAER projections indicated that the number of "middle income and above" households was expected to grow to 111 million in rural India by 2007, compared to 59 million in urban India.

Rural expenditures on Fast Moving Consumer Goods (FMCG) were growing at an impressive rate of 20 -25%. Several companies were taking rural marketing seriously, one of them being Hindustan Lever Ltd (HLL), Unilever's Indian subsidiary. In 2004, HLL was India's largest FMCG company, with 30 power brands (Exhibit: I), turnover of over Rs. 10,000 crores and 40,000 employees. HLL derived around 50% of its sales from rural areas. HLL's rural marketing initiatives began way back in 1988, when the company had launched 'Wheel' for the rural and lower income urban consumer.

HLL set up the Hindustan Lever Research Centre

in 1967 in Mumbai, the biggest of its kind in the private sector. HLL launched 'Rin' detergent bar and 'Bru' coffee in 1969, 'Clinic' shampoo in 1971 and 'Liril' bathing soap in 1974. The company entered the oral care segment with its 'Close Up' toothpaste, in 1975. HLL diversified into industrial chemicals and set up plants at Taloja in Maharashtra (1974), Haldia in West Bengal (1976) and Jammu (1977) for synthetic detergents. In 1977, Indian shareholding in HLL increased to 18.57%. The company launched 'Fair & Lovely' cream in 1978 In 1983, HLL set up a unit in Chindwara district of Madhya Pradesh, for manufacturing synthetic detergents. HLL diversified into agro-products, by setting up a unit in Hyderabad in 1986. It launched its Breeze soaps in 1987 and set up a manufacturing plant at Pondicherry in 1988, for its personal care products. In 1989, HLL set up a detergent soap plant in Sumerpur, U.P, and a toilet soap plant in Orai, again in U.P. In 1992, the Government of India recognized HLL as Star Trading House . The same year, HLL launched two more oral care products, Pepsodent and Mentadent-G. The 1990s marked a period of mergers and acquisitions for HLL. In April 1993, HLL's largest competitor, Tata Oil Mills Company (TOMCO), merged with the company, the biggest such deal in Indian industry till that time. The same year, HLL launched the 'Vim' dish-wash bar. In 1994, HLL formed Nepal Lever Limited, with 80% equity stake, (the remaining 20% was held by the Nepal public) for manufacturing soaps, detergents and personal products for domestic markets as well as exports to India. The same year, HLL and US-based Kimberley-Clark Corporation formed a 50:50 joint venture, Kimberley-Clark Lever Ltd., to market Huggies diapers and Kotex feminine care products.

The domestic packet tea market is 400 million kg a year and it has been growing at 4-5 per cent annually.

Tata Tea garnered a 19.2 per cent share of the packet tea market in June in terms of volume, leaving its nearest competitor behind at 18.6 per cent, according to an A.C. Neilson survey. Its five major brands in India - Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini - straddle all major segments.

Growth in tea consumption has been steady. Indians consumed 780-790 million kgs of tea in 2005. The per capita consumption has increased from 640 gms a year in 1996-97 to around 733 gms now. Mahindra & Mahindra has recently entered into a joint venture with Renault, an auto manufacturing company from France. It would be called Mahindra Logan, they would be manufacturing Logan's in India. However, the cars will only be available from mid 2007. They are planning to sell somewhere around 50,000 cars in a year. Although, they haven't yet come out with a price structure for the vehicle. They would be competing with Honda, Fiat, Hyundai and Ford in the C-segment of the Indian automobiles market. Mahindra & Mahindra has a hugh range of products under their belt. Ranging from:

Scorpio Range Bolero Range Pik-Up Range MAXX Range CL Range MM Range Commander Range Hard Top Range Voyager Range LCV Range Three Wheeler Range Alternative Fuel Range Army Range Export Range

Hindustan Unilever (HUL) HUL 5 segments1. 2. 3. 4. 5. 6. SOAPS & DETERGENTS PERSONAL PRODUCTS BEVERAGES FOODS ICE CREAMS EXPORTS AND OTHER OPERATIONS.

Some of the strongest brands in India such as Lifebuoy, Lux, Surf, Wheel, Lakme, Ponds and Lipton are from the HUL stable. The companys sales for the quarter ended June 2007 increased by 13% to Rs 3481.40 crore.

The FMCG sales grew by 13% driven by sales in home & personal care (HPC) and food business. Foods business showed sales growth of 25%. In it, the beverages business grew by 21% with all tea brands, Taj, 3 Roses, Red Label and Taaza, performing well. Bru Coffee continued its excellent performance this quarter also. Knorr and Kissan brands were the drivers of a 38% growth in the processed foods category. Icecream business had a robust 24% growth in this quarter. 2. Soaps & detergents The revenues of the soaps & detergents business of the company grew by 15% to Rs 1668.70 crore for the quarter ended June 2007. 3. Personal care Revenues of the personal products division grew 6% to Rs 897.77 crore for the quarter ended June 2007. 4. Beverages Sales of the beverage division grew by 21% to Rs 363.29 crore. The segment contributed 10% to companys total revenues. 5. Processed Foods Sales of the processed foods division grew by 37% to Rs 133.41 crore. 7. Ice-creams Ice-creams division saw sales grow by 23% to Rs 62.17 crore. Several new products launched Knorr Chinese mix, Bru Iced Cappuccino, the Moo Ice cream range, Dove Hair Care, Clinic All Clear variants for men, Lifebuoy Skinguard, Lakme Sun Expert and Pepsodent center Fresh. PROMISING FACTORS FOE LONG TERM GROWTH 1. 2. 3. 4. 5. 6. Increasing urbanization Improving literacy level Expanding media reach Growing disposable income Changing attitudes and aspirations Young and growing population

Armed with this research on color perceptions and income groups, HLL launched the Sunlight (yellow) , Wheel(green), Rin (blue) and Surf Ultra(white) detergents powders for different market segments. This strategy of segmenting the markets

,understanding its needs and then evolving a marketing mix to suit separate segment needs helped HLL win back its lost market.
INDIA BRAZIL Per capita consumption of 0.5 kg 2 kg personal wash products Fabric wash 2.6 kg 7.2 kg 13.1kg Toothpaste 40 ml 358 ml 299 ml Shampoo 16 ml 444 ml 1,018 ml Ice cream 0.98 ltr 1 ltr 22 ltr High GDP growth and increase in per capita income is bound to more than proportionately increase demand for the companys products. INDIAN CONSUMER MARKET
As per estimates made by ASSOCHAM analysis, the domestic FMCG total size in terms of volume is currently US$ 15 billion of which US$ 7.9 billion is rural contribution as against US$ 4.2 billion of urban and metros. US$ 2.85 billion is the semi-urban FMCG market. Total consumer expenditure on food is around US$ 125 billion as against US$ 160 of China. 45% of people in India are 20 years of age which will drive and fuel the demand for FMCG products particularly in rural and semi-urban segments. The Paper concludes that over 70% of sale of FMCG products is made to middle class households and over 50% of middle class is in rural India.
The consumer goods space is seeing a buoyancy, with younger consumers, higher disposable incomes, and the growth of organised retail,"

USA 1.1 kg