Cholayil, the maker of ayurvedic soap Medimix, is planning to extend its flagship brand to other categories like creams and body lotions next year.
“We have plans of expanding it under newer products and we are working on it. We will be focusing on skincare only, since Medimix is synonymous with skincare. Creams and lotions is one market we are looking at, because we see a good opportunity in that area. We will be launching it in the third quarter of next fiscal,” Chairman and Managing Director, Cholayil, Pradeep Cholayil was quoted by PTI as saying.
According to a PTI report: The company sells prickly heat powder and face wash besides soap under the Medimix brand and recently launched intimate hygiene wash under the same brand.
Apart from Medimix, the company also has two brands — Krishna Thulasi, which it acquired in 2011 and Cuticura — focused for the southern markets, especially Kerala, but Cholayil said the company would be rolling out these brands to other regions of the country next year.
“We will be launching Krishna Thulasi and Cuticura in other parts of the country by April next year,” he was quoted by PTI as saying.
The Chennai-based company sells soaps under the Krishna Thulasi brand, while under Cuticura, it sells talcum powder, soaps and deodrants.
The total soap market in India is estimated to be Rs 17,000 crore of Cholayil has a nominal market share.
The company has reworked its distribution strategy and is focusing only on the profitable markets.
“We have tried to rationalise the cost of distribution. We have identified the areas which contribute to our business and we are focusing only in all the major cities and sub-towns of that, so that the distribution is reached in the right way,” he was quoted by PTI as saying.
Cholayil is focusing on increasing its sales penetration in Uttar Pradesh and Delhi.
“We are having a good establishment in the Western region. We are focusing on the Northern market, especially Delhi and Uttar Pradesh which are our key focus markets,” he said.
Last year, it had clocked a revenue of Rs 152 crore and this year it plans to touch Rs 170 crore.
The company spends 18 per cent of its sales on marketing, with 60 per cent of it allocated to television.
Cholayil exports its products to around 25 countries including the Middle East, US, South East Asian countries like Singapore, Malaysia, Taiwan, and exports contribute to around 30 per cent of overall sales.
The Middle East is the largest market for the company, accounting for 60 per cent of its sales.