The group’s move into the dairy business (butter, ghee, paneer, ice-creams) – for which it has already acquired two plants – is another feather in its pan-Indian ambition cap. T. D. Mohan, Director, CavinKare insists that the group will invest about Rs.180 crore into the dairy biz over the next two years. For now, Britannia and Nestle are strong players in the southern region, but CavinKare is confident that through its unique model of procuring milk from farmers, it will be able to make its dairy business worth Rs.1,000 crore in the next couple of years. “Our core strength is product development, distribution and brand building and we’re leveraging these in our dairy business,” adds Mohan. Besides, only last month, CavinKare forayed into the restaurant business by launching an outlet in Puducherry. And CKR’s team is actively scouting for potential acquisition of existing restaurants so that CavinKare can move in quickly to lend its brand.
To be fair, CavinKare has a lot going for it. Besides, Nirma may not have succeeded, but there are too many instances of regional brands making it big on the national scene. Anchor toothpaste, which started in Rajasthan is today ubiquitous all over U.P., M.P. and Bihar. Likewise, Ghadi Detergent kicked off in U.P. and has a huge presence in M.P., Rajasthan and Gujarat now. Kerala’s Jyothi Laboratories, is doing particularly well in the North-East and West Bengal.
CavinKare itself has beaten expectations. For instance, Chik shampoo is the market leader in U.P. and Nyle derives 90% of its sales from non-south regions. Even Spinz is a top-selling brand in M.P., while its deodorants sell spectacularly in Maharashtra too; Indica hair dye is going great guns in Gujarat. In fact, the group derives less than 50% of its sales from the south these days, primarily because it has maintained its low and mid income positioning in these regions too. And while its ambitions to straddle the urban SEC A segment in retail ventures like foods and beauty salons may yet come true, the same may not really hold true for the FMCG category per se. On the contrary, its past FMCG forays in the SEC A segment have not met with much success. Perhaps the astute entrepreneur CKR has an inkling of the potential bottlenecks. “If I’m asked who is CavinKare, I would say we are someone comfortable playing in the mass market as well as at the top end of the middle class. We are not present in the SEC A category as of now. For that matter even Sunsilk is not penetrating the SEC A category. So we are comfortable with the positioning we have given ourselves,” he says carefully.
They can however still do it. At the end of the day, it’s all about innovation, distribution and understanding the consumer and CKR has proven himself time and again on all three fronts. Most importantly, he has his eyes set high. He wants to be an “HUL in the making” in just another decade. Well, talk about the sheer joy of thinking big!!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
1 lakh copies sold in less than 10 days of Arindam Chaudhuri’s “Discover The Diamond In you”
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Events at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
To be fair, CavinKare has a lot going for it. Besides, Nirma may not have succeeded, but there are too many instances of regional brands making it big on the national scene. Anchor toothpaste, which started in Rajasthan is today ubiquitous all over U.P., M.P. and Bihar. Likewise, Ghadi Detergent kicked off in U.P. and has a huge presence in M.P., Rajasthan and Gujarat now. Kerala’s Jyothi Laboratories, is doing particularly well in the North-East and West Bengal.
CavinKare itself has beaten expectations. For instance, Chik shampoo is the market leader in U.P. and Nyle derives 90% of its sales from non-south regions. Even Spinz is a top-selling brand in M.P., while its deodorants sell spectacularly in Maharashtra too; Indica hair dye is going great guns in Gujarat. In fact, the group derives less than 50% of its sales from the south these days, primarily because it has maintained its low and mid income positioning in these regions too. And while its ambitions to straddle the urban SEC A segment in retail ventures like foods and beauty salons may yet come true, the same may not really hold true for the FMCG category per se. On the contrary, its past FMCG forays in the SEC A segment have not met with much success. Perhaps the astute entrepreneur CKR has an inkling of the potential bottlenecks. “If I’m asked who is CavinKare, I would say we are someone comfortable playing in the mass market as well as at the top end of the middle class. We are not present in the SEC A category as of now. For that matter even Sunsilk is not penetrating the SEC A category. So we are comfortable with the positioning we have given ourselves,” he says carefully.
They can however still do it. At the end of the day, it’s all about innovation, distribution and understanding the consumer and CKR has proven himself time and again on all three fronts. Most importantly, he has his eyes set high. He wants to be an “HUL in the making” in just another decade. Well, talk about the sheer joy of thinking big!!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
1 lakh copies sold in less than 10 days of Arindam Chaudhuri’s “Discover The Diamond In you”
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Events at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
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