Elder Health Care Ltd (EHCL), the FMCG arm of the pharma major, Elder Group, has entered the Rs1,600-crore baby care market in India. The company has formalised an in-licensing agreement with Germany’s personal and hygiene products company, Mann & Schröder GmbH, to introduce the entire range of Dulgon skin care and Sanosan baby care in India. “It will be challenging to break into a market where a single player commands almost 80 per cent market share. Today, in the diaper segment, smaller players are surviving along with larger players mainly because the market has expanded. We hope to do the same with M&S products,” says Dr Anuj Saxena, Managing Director, EHCL. The deal is EHCL’s eleventh in-licensing agreement, which is likely to add about Rs30 crore to Elder’s turnover by 2014-15.
The baby care sector, which comprises four segments – baby food, skin care, toiletries and diapers and hair care – is dominated by Johnson and Johnson, Wipro, Marico (Sparsh brand of Baby Oil and Baby Bathing Bar) and the Aditya Birla group (Puretta biodegradable baby care wipes).
Posted on: 24.11.2010