“Study of Alternate Channels to Promote Kara Wipes inLucknow Market”Summer Training Project Report submitted in partialfulfillment of the requirements for theDiploma ofPost Graduate Diploma in ManagementAtJaipuria Institute of Management, LucknowByFeroz AhmadEnroll No. : JIML-11-057Batch: 2011-13Project Mentor: Prof. Hyma ApparajuAbstract
2The purpose of my study was to “find out different channels that can be used inpromoting and maximizing the sales of Kara in major markets of Lucknow. Asany study is incomplete without the interaction with its main stakeholders, I alsointeracted with many commuters of different cosmetics, general stores andmedical stores covering various major markets of Lucknow such as Aminabad,Hazratganj, Charbagh, Patrakarpuram, Bhoothnath, Hussainganj etc.Further interaction was with the second most important stakeholder who plays asignificant role in sale of a product i.e. retailer. It helped in gauging theexpectations of retailers as well as the expectations of customers throughretailers to reduce the gap between expectations and realistic presence of theproduct.I sampled Kara in major markets of Lucknow to increase the awareness of Karabecause the concepts of using wet facial wipes is very new in India unlike otherwestern countries where people spend their major portion salary in disposableproducts.Executive Summary
3In last few years, the growth and development story of India has seen differentstages. From the time of independence to 1991, the time of liberalization in Indiaand then to the twenty first century, the markets have shown tremendouschanges. Today consumers have got the power and the income to spend onproducts. Different firms entered in the market and lost but many succeeded andmake their mark. All the markets starts with nascent stage and later grow to itsmaturity, same with the wipes market which is in its nascent stage in India nowbut the potential is high if explored.Kara is a brand name of Wet wipes from the house of Grasim Industries, AdityaBirlaGroup. Among its different variants, Refreshing facial wipes are the mostselling wipes inthe consumer market.My project title was “study of alternate channels to promote Kara in Luknowmarket” in Grasim Industries, Aditya Birla Group. Objective of the project was tofind out the ways to promote Kara and create new potential areas for theproduct. It also involves the work to find out the measures to keep the productahead of its competitors such Johnson & Johnson, Bilt, Good Look, Freshia,Mistique and last but the least the Chinese wipes products.For brand promotion and widening the horizon for the new products launchedby the company I sampled Kara in almost all major markets and malls ofLucknow such as Aminabad, Hazratganj, Hussainganj, Bhootnath,Patrakarpuram, Thakurganj, Saharaganj mall, Spencer, Shalimar mall etc. whichalso resulted into generating the awareness of the brand and it provided achance to the people to use Kara at free of cost first time. Once they are fond ofthe product, they will voluntarily buy the product and will become its regularuser.In my later stage of training, I was assigned to understand the operations of thecompany by visiting almost all markets in Lucknow. For the purpose, I visitedmore than 140 shops and took orders from retailersof the company and was also
4responsible in placing the product onto new stores by convincing the retailers tokeep the product.Without collection of statistical data and its analysis any project is incomplete,thus, I surveyed 156people by way of questionnaire and collected somesecondary data from internet to understand and analyze the exact situation ofthe market. Analysis part has been done through interviews and surveys with thepeople visiting the retail stores in different major markets and malls of Lucknow.Result showed that the concept of using wet facial wipe is not as new as it was acouple of years ago in the Indian market and now people are partially aware of it.Middle class people can be targeted and educated about this new conceptthrough extensive promotional activities. One of the finding was that peopleconsider wet wipes as an extravagant article rather than essential product whichis positioned by the company and do not want to spend a lot on such a product.AcknowledgementThe training program was designed in such a way that it provided a full learningopportunity throughout the training program. I would like to express my
5gratitude towards all the people who guided me throughout the program andtheir direct or indirect help was priceless for me, without their guidance andsupport this project would not have been completed successfully.I express my sincere gratitude to Mr. Divyankar Goel, Regional Sales Manager,North Division, Grasim Industries & Birla Cellulose, for his belief in me and givinga chance to do market research for the company.It has been an honor to do my summer training under Mr. Surya Prakash Singh,Area Sales Manager, North Division, Grasim Industries & Birla Cellulose, acomposed and talented person who not only guided but also supported andrectified me where I was going wrong. Therefore, I would specially thank Mr.Surya Prakash Singh for his continuous guidance and assistance throughout thetraining.There was a great learning from my team at Grasim Industries, who not onlybehave in a co-operative manner but also provide constant help in thecompletion of the project, thus, I thank to my each team member in the trainingprogram.Last but surely not the least, I am very much thankful to my faculty guide, Prof.Hyma Apparaju, core faculty at Jaipuria Institute of Management Lucknow, forher continuous guidance and support from the proceeding of the project to itscompletion. I can not think of the accomplishment of the project without herassistance and guidance.TABLE OF CONTENTSPage No.CHAPTER - 1………………………………………………………………………………………………………1
6INTRODUCTION……………………………………………………………………………………………2SCOPE OF THE STUDY…………………………………………………………………………………..3OBJECTIVE OF THE STUDY……………………………………………………………………………3RELEVANCE OF THESTUDE………………………………………………………………………….4TEAM CONSTITUTION…………………………………………………………………………………..4ACHIEVEMENT AND RECOGNITION……………………………………………………………..5CHAPTER - 2……………………………………………………………………………………………………...6SUMMER INTERNSHIP PROFILE…………………………………………...…………………….....7STUDY OF ALTERNATE CHANNELS TO PROMOTE KARAWIPES………………………7USE OF SOCIAL MEDIA TO PROMOTE KARAWIPES………………......….………………….9INDTRODUCTION ABOUT ADITYA BIRLAGROUP…………………………..……………….11HINDALCOINDUSTRIES………………………………………………………….………………..22
7IDEA CELLULAR………………………………………………………………………………………25ULTRATECH………..…………………………………………………………………………………...27GRASIM INDUSTRIES……………………………………………….……………………………….31BIRLACELLULOSE…...…………………………………………….…………………………………37ANALYSIS OF INDIAN WIPESMARKET………….………….………………...………………….60COMPETITION ANALYSIS OF KARA WIPES…………….…………..….……...……………….65MICHAEL PORTER’S FIVE FORCES MODEL………………………………………...………....67SWOT ANALYSIS………………………………………………………………………………………….69CHAPTER – 3………………………………………………………………………………………….…………72RESEARCH METHODOLOGY…………………………………………………………….…………..73CHAPTER – 4……………………………………………………………………………………….……………79DATA ANALYSIS………………………………………………………………………….………………80
8CHAPTER – 5…………………………………………………………………………………….………………99RECOMMENDATIONS AND SUGGESTIONS…………………………………….……………100CHAPTER – 6……………………………………………………………………………………….………..…104CONCLUSION…………………………………………………………………………….……………….105CHAPTER – 7……………………………………………………………………………………….…………...106ANNEXURE………………………………………………………………………………………………...107BIBLIOGRAPHY…………………………………………………………………………………………..109MY LEARNING FROM SUMMER INTERNSHIP…..…………………………………………..110LIST OF FIGURESPage No.FIG 1: USE OF WET WIPES…………………………………………………………………………………80
9FIG 2: MARKET SHARE OF WET FACIAL WIPES……………………..…………………………...81FIG 3: FREQUENCY OF USE OF WET WIPES……………………….……………………………….82FIG 4: PREFERRED PLACE TO BUY SKIN CAREPRODUCTS………………………………….83FIG 5: RESPONSE ABOUT IDEAL PACK……….……………………………………………………...84FIG 6: RESPONSE ABOUT IDEAL PRICE FOR A MEDIUM SIZE PACK……………….…...85FIG 7: PURPOSE OF USE OF WIPES……………………………………………………………….......86FIG 8: PERCEPTION OF CUSTOMER TOWARDS THE CONCEPT OFWIPES............….87FIG 9: AWARENESS OF KARA WIPES……………….……………………………………………….88FIG 10: MEDIUM MADE AWARE ABOUT KARAWIPES……………………………………….89FIG 11: SATISFACTION LEVEL TOWARDS KARAWIPES.…………………………………...90FIG 12: INFLUENCIAL ATTRIBUTES OF KARA WIPES…………………………………….…91FIG 13: ATTRIBUTES LEAD TO DISLIKE KARA WIPES…………………………….…….….92
10FIG 14: ATTRIBUTES THAT DIFFERENTIATE KARA FROM OTHER BRANDS…….93FIG 15: WOULD KARA BE RECOMMENDED BY CUSTOMERS………………….……..….94FIG 16: GENDER DISTRIBUTION OF CUSTOMERS……………………………………..…….95FIG 17: AGE DISTRIBUTION…………………………………………………………………….….….96FIG 18: SHARE OF INCOME CLASS…………………………………………………………..….….97FIG 19: PROFESSION DISTRIBUTION…………………………………………………….. .….….98
12Aditya Birla Group is Indias first truly multinational corporation. Globalin vision, rooted in values, the Group is driven by a performance ethicpegged on value creation for its multiple stakeholders. The group has anannual turnover of US$ 24 billion, market capitalization of US$ 23 billion,and has over 100,000 employees belonging to over 25 differentnationalities on its rolls. The group has diversified business interests andis dominant player in all the sectors in which it operates such as viscosestaple fibre, metals, cement, viscose filament yarn, branded apparel,carbon black, chemicals, fertilizers, insulators, financial, service, telecom,BPO and IT services.Its subsidiary company Grasim is the largest exporter of Viscose RayonFiber in the country, with exports to over 50 countries.Grasim Industries is mainly focusing on increasing more awareness aboutits newly launched Kara wet wipes. Being a new concept in India, it is verydifficult for the company to divert Indian customers to substitutetraditional handkerchief by Kara wet wipes. They are position the samethrough their continuous and effective marketing communication. Theyhave an edge over their competitors because of its backward integrationand the raw material for Kara wet wipes is being provided from Birlacellulose division.I sampled in different markets of Lucknow to create awareness about theproduct and give the commuters opportunity to use Kara wet wipes freeof cost for the first time approach. A field work has also been done toknow the response of the customers towards the brand of company,brand of the competitors, their perception about using wet wipes etc.through a formal questionnaire.I was fortunate enough to get this opportunity to work with such amultinational incorporation. As the group quotes its tageline, “TakingIndia to the world”, it provided a lot of learning experiences those willsurely help in long run in my transformation towards corporate world.
13Scope of the studyThe data collected gives the clear picture of the product in the markets ofLucknow, the study of this research, gives the company an indication aboutwhether it is feasible to move on with the persisting movements and marketingstrategies, and if no, then how to go about it and make it worthwhile for thebrand as well as the company. And conclude on what should be the most favoreddeal.The main purpose to conduct this marketing research is to find out theperception of the consumer towards the new concept of the skin care wet wipeswhether they are not hesitant to accept this new concept of the wet wipes orthey still believes in the traditional method of using the formulized basedproducts. And even to study how much awareness of this product is there in themarket and the brand image of it.Another main aim to conduct this study was to understand the retailers reactionsand expectation towards the KARA and to reduce the gap between theexpectations of retailers and in actual.The study of consumers’ responses helps firms and organizations improve theirmarketing strategies.Purpose of the studyThe objective of project was “To take measures for maximizing salesopportunities and promote Kara in Lucknow market. Thus, approaching togeneral public and introducing our products to them and reminding them untilthey give a formal response was our priority task. However, along with it, aprimary research work was also done to supplement the field work.
14Context of StudyFree samples were given to people along with a small briefing about the productwho showed good level of interest in Kara. The questionnaire was pre-designedand during conversation, the questions were disguisedly asked.Relevance of StudyThe research work gives us an idea as to what difficulties Kara is facing in spiteof being a very good quality product. It gives a scope of improvement to rethinkon some marketing aspects like better discount slabs, refining target customersetc. Since the TV advertisement campaign for Kara is gaining momentum,aggressive selling can be practiced to offer Kara in major market of Lucknow.Reporting: I reported to Mr. Surya Singh, Area Sales Manager who acted as thedelivery head for this particular project.Team Constitution: The core team was made up of six members in trademanagement area covering Lucknow. The one management trainee, one SalesOfficer and Area Sales Manager were involved in Trade Management. We alltogether sampled people covering a particular market for a particular day.I applied my learning at JIMLDuring the project my learning in classroom (case studies, freewheelingdiscussions) proved to be very useful. At times I referred to my marketing bookfor brand promotion & distribution channel of KARA. Basically all the marketingcommunication tools for brand promotion and different distribution channel forplacing the KARA to retailers are applied in the field came from my marketingknowledge. This comparison pushed me to revisit the plans/ strategy thoughtout by me. This was of immense help in improving the quality of my inputs.
15Achievements/Recognition:Post the sampling activity, I was assigned to visit retailers along with onesalesman to take orders from retailers keeping Kara and place the product ontonew counters for the increment of sales as well as awareness. I got appreciationfrom Area Sales Manager for high worth of order in a day and continuousplacement of the product onto new counters.
16Chapter-2Detailed Introduction of about the Topic
17Summer Internship Profile1) Modern Trade ManagementModern trade management deals with malls and shopping complex wherethousands of customers come daily to buy household items. Kara is available atalmost every mall in Lucknow however internees under this profile have tocheck inventory levels of product, placing of the product as compared tocompetitor products, visibility, customers’ reaction on seeing the product etc.2)General Trade ManagementIn this profile, all the small retail shops are focused where I had to see if Kara isalready available with them, are the retailers happy about the response of theproduct, sufficient inventory levels are maintained etc. Also there were manyretail shops which didn’t have any wet wipes and were apprehensive aboutkeeping the product. I had to market the product to such retailers and clarify anydoubts which retailer has about the product.3) Marketing ResearchThis profile is a pure marketing research based where I have to ask respondentsto fill up a pre-designed questionnaire thus fulfilling the given objective. I choseplaces like malls and major markets where I had to intercept respondents andrequest them to take part in the research. Sample size was 156 which includesboth online and offline.“STUDY OF ALTERNATE CHANNELS TO PROMOTE KARAWET WIPES IN LUCKNOW MARKET”Marketing communications are the means by which firms attempt to inform,persuade, and remind consumers, directly or indirectly about the products andbrands they sell. In a sense, marketing communications represent the “voice of
18the company and its brands and are a means by which it can establish a dialogueand build relationships with consumers. Marketing communications alsoperform many functions for consumers. They can tell or show consumers howand why a product is used, by what kind of person, and where and when.Consumers can learn about who makes the product and what the company andbrand stand for; and they can get an incentive or reward for trial or usage.Marketing communications allow companies to link their brands to other people,places events, brands, experiences, feelings, and things. They can contribute tobrand equity by establishing the brand in memory and creating a brand image aswell as drive sales and even affect shareholder value.Although marketing communications can play a number of crucial roles, theymust do so in an increasingly tough communication environment. Technologyand other factors have profoundly changed the way consumer processcommunications, and even whether they choose to process them at all. The rapiddiffusion of powerful broadband internet connections, ad skipping digital videorecorders, multipurpose cell phones, and portable music and video players haveforced marketers to rethink a number of their traditional practices. Thesedramatic changes have eroded the effectiveness of the mass media.Sales promotion tools
19Using Social Media Channels to Promote KaraThe main challenge in this era is to stand out from the crowd, and use of any non-traditional channel of promotion can differentiate us from our competitors andwe can attract the potential customers.One of every nine people on earth log on to social media channels every day andspend 700 billion minutes a day sharing content on social media. Kara needs asocial media component, or may potentially lose the attention of over 750 millionsocial media users. Here are five fun ways to promote the product on socialmedia channels.Facebook OffersFacebook recently rolled out the new Facebook offers for fan pages, which is afree service for Facebook page administrative. The Facebook offers feature is aseasy as posting a status update, and is an easy, fun way to promote the brand. Wecan create a catchy, strong headline – remember, the offer will be competing withlots of other status updates, photos and links in your fans’ news feeds. Next, addan image that is recognizable in thumbnail form and represents our offer at aglance. As a final step, add fine print or terms and conditions to avoidmisconceptions if our customers have. Fans redeem Facebook offers via theirsmartphone or from an email that’s mailed to them after they get the offer.
20Pin it to win itOne of the hottest new social media channels over the past twelve months ispinterest, a social bookmarking site that acts as a virtual pin board, visuallysaving and sharing recipes, favorite products, stunning images, beauty tips andmuch more.The company can take full advantage of the excitement surrounding pinterst bycreating “pin it to win” contests. Where it can share some beauty tips and at thesame time it can educate how regular use of wet wipes can keep our skin healthy.These contests encourage users to pin products from the company website totheir own personal pin boards – the more pins or “repins” the product receives,the better chance the customers have to win. This is a great way to drum upexcitement for a new variant or change in existing variant of Kara. The morevisually striking our product, the more successful our pinterest contest will be.Reviews on BlogsThere are more than 164 million blogs on the internet and more than 133 millionblog readers. If we search long enough, we will find well written, popular blogscovering almost any topic under the sun.Many bloggers are interested in reviewing products and working with brands,especially when free products are involved. Giving a blogger with a loyalfollowing a sample or complimentary product is a great way to get exposure forKara wet wipes. Readers trust their favorite bloggers’ opinions on products, anda great product review can go a long way in building our brand. We can consideroffering a second product or exclusive discount for the blogger to give away totheir readers. Blogger reviews promoting our product will give us lots ofexposure.
21Aditya Birla Group is Indias first truly multinational corporation. Global invision, rooted in values, the Group is driven by a performance ethic pegged onvalue creation for its multiple stakeholders. The group has an annual turnover ofUS$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000employees belonging to over 25 different nationalities on its rolls. The group hasdiversified business interests and is dominant player in all the sectors in which itoperates such as viscose staple fibre, metals, cement, viscose filament yarn,branded apparel, carbon black, chemicals, fertilizers, insulators, financial,service, telecom, BPO and IT services. The origins of Aditya Birla Group can betraced back to the 19th century when Seth Shiv Narayan Birla started trading incotton in the town of Pilani, Rajasthan. In the early part of the 20th century,Groups founding father, Ghanshyamdas Birla, expanded the group and set upindustries in critical sectors such as textiles and fibre, aluminium, cement andchemicals. In 1969, Aditya Birla, the then Chairman of the Group, put the groupon the global map. He set up 19 companies outside India, in Thailand, Malaysia,Indonesia, the Philippines and Egypt.Under Aditya Birlas leadership, the group attained new heights and it becameworlds largest producer of viscose staple fibre, the largest refiner of palm oil, thethird largest producer of insulators and the sixth largest producer of carbonblack. After Aditya Birlas demise his son Kumar Mangalam Birla took over thecharge of the group and under his leadership the group has sustained thesignificant position in the sectors in which it operates. The Group operates in 25countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
22Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia andKorea.A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune500. It is anchored by an extraordinary force of 130,000 employees, belonging to30 different nationalities. In India, the Group has been adjudged "The BestEmployer in India and among the top 20 in Asia" by the Hewitt-Economic Timesand Wall Street Journal Study 2007. Over 50 per cent of its revenues flow fromits overseas operations.Globally the group has proved its mettle: A metals powerhouse, among the worlds most cost-efficient aluminiumand copper producers. Hindalco-Novelis is the largest aluminium rollingcompany. It is one of the three biggest producers of primary aluminium inAsia, with the largest single location copper smelter No.1 in viscose staple fibre The fourth largest producer of insulators The fourth largest producer of carbon black The eleventh largest cement producer globally and the second largest inIndia Among the best energy efficient fertiliser plants Among the worlds top 15 and Indias top four BPO companiesIn India, the Group holds a frontrunner position as: A premier branded garments player The second largest player in viscose filament yarn The second largest in the core alkali sector
23 Among the top five mobile telephony players A leading player in life insurance and asset management Among the top three supermarket chains in the retail businessGlobal Presence of the groupAditya Birla Group has many subsidiary companies across the world. It has itspresence not only in Asian countries but also in European and African countries.Thailando Thai Rayono Indo Thai Syntheticso Thai Acrylic Fibreo Thai Carbon Blacko Aditya Birla Chemicals (Thailand) Ltd.o Thai PeroxidePhilippineso Indo Phil Textile Millso Indo Phil Cotton Millso Indo Phil Acrylic Mfg. Corp.Indonesiao PT Indo Bharat Rayono PT Elegant Textile Industryo PT Sunrise Bumi Textileso PT Indo Liberty Textiles
24o PT Indo Raya KimiaEgypto Alexandria Carbon Black Company S.A.Eo Alexandria Fiber CompanyChinao Liaoning Birla Carbon Canadao AV Cell Inc.o AV Nackawic Inc.Australiao Aditya Birla Minerals Ltd. Laoso Birla Laos Pulp and Paper Plantation Company Ltd.Rock solid in fundamentals, the Aditya Birla Group nurtures a culture wheresuccess does not come in the way of the need to keep learning afresh, to keepexperimenting.Diversified BusinessesAditya Birla is organized into various subsidiaries that operate across differentsectors. Among these are viscose staple fibre, non-ferrous metals, cement,viscose filament yarn, branded apparel, carbon black, chemicals, Modernretail(under the More brand of Supermarkets, and also under the Trinethra, andFabmall brands until recently), fertilizers, sponge iron, insulators, financial
25services, telecom, BPO and IT services. The Group consists of four maincompanies, which operate in various industry sectors through subsidiaries, jointventures etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTechCement.Non Ferrous MetalsThe groups non-ferrous metals are under Hindalco. It is a dominant player inaluminum and copper. Its manufacturing locations are primarily in India, and itowns mines in Australia. On February 11, 2007, the company entered into anagreement to acquire the Canadian company Novelis for U$6 billion, making thecombined entity the worlds largest rolled-aluminium producer. On May 15,2007, the acquisition was completed with Novelis shareholders receiving $44.93per outstanding share of common stock.Hindalco has also recently acquired Alcans stake in the Utkal Alumina ProjectJoint venture in Orissa,India. Hindalco is a Fortune500 company, it makesalumina chemicals, primary aluminum, rolled products, alloy wheels, roofingsheets, wire rods, Cast copper rods, copper cathodes and several other products.But the project has faced massive protests from locals. On 16 Dec 2001 threetribal people were shot dead because they were opposed to the project.CementThe Group has two subsidiary companies in cement sector named as Grasim andUltraTech cement. Together the two companies under the group account for asubstantial share of the cement market in India. UltraTech cement comprises theerstwhile cement business of L&T which was acquired by the group. UltraTechannounced an increase in sales by 18% and Profit after Tax by 42% for thequarter ending March 31, 2012.
26Carbon BlackThe Group is the fourth largest manufacturer of Carbon Black worldwide. Itoperates out of facilities in Egypt, Thailand, India and China.It is a major supplierto several major automobile tyre manufacturers worldwide.Textile BusinessThe Aditya Birla Group is the worlds largest player in the Viscose Staple Fiberindustry. It operates out of India also such as in Laos, Thailand, Malaysia andChina. It owns the Birla Cellulose brand. Apart from viscose staple fiber, thegroup also owns acrylic fiber businesses in Egypt and Thailand, viscose filamentyarn businesses and spinning mills at several locations all over India and SouthEast Asia.The group has pulp and plantation interests in Canada and has recently investedin plantations in Laos the Aditya Birla group is also a major player in the brandedgarments market in India. Its subsidiary, Madura Garments, is a major producerof textile fabric as well as the brand licensee of Louis Phillip, Van Heusen andAllen Solly in India. It operates company owned retail outlets in several cities inIndia and now planning to go to Pakistan as well.Telecom ServicesAditya Birla Group holds a 98.3% stake in Idea Cellular, a leading telecomoperator in India. Idea Cellular started off as a joint venture with the group,AT&T and the Tata Group. However the stakes of the remaining partners waseventually acquired by the group. After an Initial Public Offering on the IndianStock Markets, Idea Cellular now accounts for a third of the groups marketcapitalization.
27Other BusinessApart from the above businesses, the group is a major player in sectors likeInsulators, Fertilizers, IT (It owns PSI Data Systems Limited -http://www.psidata.com), ITeS (It owns Trans-works and recently acquired theCanadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services(A joint venture with Sunlife) and more recently, Retail.Beyond BusinessTranscending business for over 50 years now, the Group has been and continuesto be involved in meaningful welfare-driven initiatives that distinctly impact thequality of life of the weaker sections of society in India, South-East Asia andEgypt.In India, the Groups social projects span 3,000 villages. It reaches out to sevenmillion people annually through the Aditya Birla Centre for CommunityInitiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Itsfocus is healthcare, education, sustainable livelihood, infrastructure andespousing social causes.The Group runs 42 schools, which provide quality education to over 45,000children in Indias interiors. Of these, over 18,000 children receive freeeducation. An additional 8,000 students receive merit scholarships. Likewise atits 18 hospitals in India, more than a million patients are given extremelysubsidised medical care. To embed corporate social responsibility as a way of lifein organisations, the Group has set up the FICCI – Aditya Birla CSR Centre forExcellence, in Delhi.
28The Group transcends the conventional barriers of business and reaches out tothe marginalised because of its conviction of bringing in a more equitable societyand send out a message that "We care”.MAJOR COMPANIESThe major companies of the Groupare among Indias leading corporate. Theseinclude:Grasim:Viscose staple fibre, rayon grade pulp, cement, chemicals, textilesUltraTech Cement Ltd:Ordinary Portland cement, Portland blast furnaceslag cement, Portland pozzolana cement and grey Portland cementSamruddhi Cement: CementHindalco: Aluminum, copperAditya Birla Nuvo: Garments, viscose filament yarn, carbon black,textiles, insulatorsIdea Cellular Ltd.: TelecomBirla Sun Life Insurance Co.Ltd.: Life insuranceBirla Sun Life Asset Management Company Ltd.:Mutual fundAditya Birla Money Mart Limited: Mutual fund distributionAditya Birla Capital Advisors Private Limited (ABCAP):Private equityadvisory and investment management, for Indian and offshore investorsAditya Birla Money Limited:Leading player in broking spaceAditya Birla Minacs IT Services Ltd.:Application development,maintenance and enhancement solutionsAditya Birla Minacs Worldwide Limited: Customer relationsmanagement (CRM), integrated marketing services, knowledge processoutsourcingAditya Birla Finance Limited: Asset-based finance, corporate financeand investment banking, capital market and treasury
29Birla Insurance Advisory & Broking Services Ltd:Non-life insuranceadvisory and broking servicesNon-life insurance advisory and broking services: Apparel retailPeter England Fashions and Retail Ltd:Apparel retailMadura Garments Exports Limited:Apparel exportAditya Birla Retail Limited:Multi-format storesTanfac Industries Ltd.:Fluorine chemicalsEssel Mining & Industries Ltd.:Iron and manganese ore mining, nobleferro alloysREWARDS & RECOGNITION2002KHARACH unit won Chairmans Gold Award for manufacturing excellence.2003Birla Celluloses HARIHAR (India) unit bagged "TERI CorporateEnvironmental Award" for cleaner production, while keeping wastegeneration at its lowest.Birla Celluloses KHARACH (India) unit was awarded "Green-tech GoldAward" for environmental excellence, in recognition for its continuousefforts in the field of sustainable development and environmentalpreservation.2004Birla Celluloses NAGADA (India) unit was awarded the coveted"Stockholm Industry Water Award", a first time achievement in Asia.
30Grasilene division – HARIHAR won “Green-tech Environment ExcellenceGold” Award.HARIHAR unit won “Golden Peacock Environment Management” Award.2005KHARACH unit won PSU- Quality Circle competition for South GujaratIndustries2007HARIHAR Poly fibers wins 2007 “IMC Ramakrishna Bajaj award2008The President of India, Mrs. Pratibha Patil confers the much covetedRotary International Polio Eradication Champion Award on Mrs.Rajashree Birla2009Grasims pulp and fibre division wins the highly prestigious Asian CSRAward.Idea Cellular wins the Economic Times "Emerging Company of the YearAward for 2009".2010Hindalco ranked ninth across industries on Forbes Asias Fab 50companies list of Asias 50 most valued companies.Hindalco and Birla White declared winners in the Golden Peacock Awardsfor Corporate Social ResponsibilityThe Rajiv Gandhi Environment Award for Clean Technology for the year2009-2010 is awarded to Vikram Cement Works.
312011Business Today’s Best Companies to work for in India’s survey, the AdityaBirla Group was on the top of the league in their “rankings of most lovedcompanies”.The Aditya Birla Group is ranked No. 4 in the list of global top companiesfor leaders and No.1 in Asia Pacific for 2011, in a study conducted by AonHewitt, Fortune Magazine.
32An industry leader in aluminium and copper, Hindalco Industries Limited, themetals flagship company of the Aditya Birla Group is the worlds largestaluminium rolling company and one of the biggest producers of primaryaluminium in Asia. Its copper smelter is the world’s largest custom smelter at asingle location.Established in 1958, we commissioned our aluminium facility at Renukoot ineastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal,Birla Copper and the Nifty and Mt. Gordon copper mines in Australia,strengthened our position in value-added alumina, aluminium and copperproducts.The acquisition of Novelis Inc. in 2007 positioned us among the top fivealuminium majors worldwide and the largest vertically integrated aluminiumcompany in India. Today we are a metals powerhouse with high-end rollingcapabilities and a global footprint in 13 countries. Our consolidated turnover ofUSD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league.Hindalcos businesses — creating superior valueHindalco is one of the leading producers of aluminium and copper. Ouraluminium units across the globe encompass the entire gamut of operations,from bauxite mining, alumina refining and aluminium smelting to downstreamrolling, extrusions, foils, along with captive power plants and coal mines.Ourcopper unit, Birla Copper, produces copper cathodes, continuous cast copperrods and other by-products, such as gold, silver and DAP fertilisers.
33Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified.Several units have gone a step further with an integrated management system(IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one businessexcellence model. We have been accorded the Star Trading House status in India.Hindalcos aluminium metal is accepted for delivery under the High GradeAluminium Contract on the London Metal Exchange (LME). Our copper qualitystandards are also internationally recognised and registered on the LME withGrade A accreditation.AluminiumHindalcos major products include standard andspeciality grade aluminas and hydrates, aluminiumingots, billets, wire rods, flat rolled products,extrusions and foil.The integrated facility atRenukoot houses an alumina refinery and an aluminium smelter, along withfacilities for the production of semi-fabricated products, namely, redraw rods,flat rolled products and extrusions. The plant is backed by a co-generation powerunit and a 742 MW captive power plant at Renusagar to ensure the continuoussupply of power for smelter and other operations.A strong presence across the value chain and synergies between operations hasgiven us a dominant share in the value-added products market. As a steptowards expanding the market for value-added products and services, we havelaunched various brands in recent years — Everlast roofing sheets, Freshwrappkitchen foil and Freshpakk semi-rigid containers.
34CopperBirla Copper, Hindalco’s copper unit, is located inGujarat. The unit has the unique distinction ofbeing the largest single-location copper smelter inthe world. The smelter uses state-of-the-arttechnology and has a capacity of 500,000 tpa.Birla Copper also produces precious metals, fertilisers and sulphuric andphosphoric acid. The unit has captive power plants for continuous powergeneration and a captive jetty to facilitate logistics and transportation.Birla Copper upholds its longstanding reputation for quality copper cathodes andcontinuous cast copper rods by assuring its management processes meet thehighest standards. It has acquired certifications such as ISO-9001:2000 (QualityManagement Systems), ISO-14001:2004 (Environmental Management System)and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).MinesHindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003.The Birla Nifty copper mine consists of an underground mine, heap leach padsand a solvent extraction and electrowinning (SXEW) processing plant, whichproduces copper cathode.The Mt. Gordon copper operation consists of anunderground mine and a copper concentrateplant. Until recently, the operation producedcopper cathode through the ferric leach process.In 2004, a copper concentrator was commissionedto provide concentrate for use at Hindalcos operations in Dahej.Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement withHindalco for supply of copper concentrate to the copper smelter at Dahej.
35Idea Cellular Limited was incorporated in 1995, and now ranks third in terms ofall-India wireless revenue market share at 13.6 per cent.Idea ranks second with23.6 per cent revenue market share in nine service areas where it holds 900 MHzspectrum and which derive about 41 per cent of the industry’s all-Indiarevenues. The market positioning of Idea reflects the strength of its brandconsidering the fact that Idea added 11 out of its total 22 service areas in the pastfour years. Today, it is a pan-India player with commercial 2G operations in 22service areas, and 3G in nine of these circles. Its subscriber base has grownmultifold, from 7.37 million in March 2006 to 89.5 million in March 2011.Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecommajors Bharti Airtel and Vodafone. Indus Towers is the worlds largest towercompany with over one lakh towers.Idea enjoys a market leadership position in many of its operational areas. Itoffers GPRS on all its operating networks for all categories of subscribers, andwas the first company in India to commercially launch the next generation EDGEtechnology in Delhi in 2003. As a pioneer in technology deployment, it has beenat the forefront through the adoption of bio fuels to power its base stations, andby employing satellite connectivity to reach inaccessible rural areas in MadhyaPradesh.Idea has been a leader in the introduction of value-added services, and there aremany firsts to its credit, including a voice portal Say Idea, Idea TV, voice chatand instant messenger. Tariff plans have been customer-friendly, catering to theunique needs of different customer segments, for instance the Womens Card
36caters to the special needs of women on the move, and Youth Card covers theemerging youth segment.Idea has a network of over 70,000 cell sites coveringthe entire length and breadth of the country.The company has over 3,000 servicecentres servicing Idea subscribers across the country. Idea’s service deliveryplatform is ISO 9001:2008 certified, making it the only operator in the country tohave this standard certification for all 22 service areas and the corporate office.AchievementsIdea has won numerous awards and is the only Indian GSM operator to win theprestigious GSM Association Award consecutively in the best mobile technologycategory for the Best Billing and Customer Care Solution both in 2006 and in2007, even in the face of international competition.Idea was adjudged the ‘Emerging Company of the Year’ by The EconomicTimes. Brand Idea has won many accolades for its innovative communication.The ‘What an Idea, Sirji’ ads have won four Effies from 2008-2010, making itone of the ‘Buzziest’ brands in the country.In 2011 Brand Idea moved to the No. 4 position amongst all service brands inthe Most Trusted Brands Survey conducted by EconomicTimespublication.Ideas biggest campaigns – "Break the Language Barrier"and "No idea – Get Idea" were ranked globally as the best brand campaigns2011 at MMA Global Awards and World Communication Awards, London.In radio, Idea won six awards at the Golden Mikes Awards 2011 and wasadjudged the Advertiser of the Year. Besides, Idea has also won a series ofDigital Awards, the biggest being the Yahoo Big Chair where it won Gold.IDEA Cellular has been recognized as the Most Customer ResponsiveCompany in the Telecom sector, at the prestigious Avaya GlobalConnectCustomer Responsiveness Awards 2010.Ideas subscriber base as at the end of August 2011 according to thestatistics,is totalling to 98,441,714.
37UltraTech Cement Limited is Indias biggest cement companyand India’s largestexporter of cement clinker based in Mumbai,India.The company is divisionof Grasim Industries. It has an annual capacity of 52 million tonnes. UltraTech isIndias largest exporter of cement clinker. The companys production facilitiesare spread across eleven integrated plants, one white cement plant, and oneclinkerisation plant in UAE, fifteen grinding units, and five terminals.UltraTechs success is attributed to its diverse product offerings. Differentproducts are handled by different product groups, which are also known asprofiles. Product groups decentralise control and encourage innovation. Theyalso ensure better customer segmentation, which in turn leads to bettercustomization of product offerings and guarantees cent percent customersatisfaction. UltraTech Cement, Birla White, UltraTech Concrete, UltraTechBuilding Products and UltraTech Solutions are the different profiles of UltraTech,each catering to varied needs. This versatility has been a key competitiveadvantage for UltraTech over the years.UltraTech is the 10th largest cement manufacturer in the world making it asignificant global player. It has grinding units, jetties, bulk terminals andintegrated plants all across the world. UltraTech Cement is the countrys largestcement clinker exporter, catering to export markets in countries across theIndian Ocean, Africa, Europe and the Middle East. Such diverse presence acrosscountries has helped UltraTech leverage economies of scale and enabled it tobecome a name to reckon with in the international market.
38UltraTech’s journey began almost three decades ago and throughout thisjourney, the focus has always been on providing customers with the bestproducts and services. The resulting success has only reaffirmed UltraTech’sdesire to be a complete end-to-end building solutions provider. Each milestonein this journey is a cherished memory: becoming the largest cementmanufacturer in India, winning the ‘SUPERBRAND’ and POWERBRANDaccolades and being recognised as a truly global organization, are a few thatstand out.UltraTech’s inception can be traced back to the mid-1980s with theestablishment of Grasim’s first cement plant at Jawad in Madhya Pradesh. In2001, with the objective of increasing its reach, Grasim acquired a stake in L&TCement Ltd. The stake was further increased to a majority stake in 2003 therebygiving Grasim a pan-India presence and an increased market share. In 2004, thedemerger of L&T’s cement business was completed and Grasim acquired acontrolling stake in L&T Cement Ltd and the name was subsequently changed toUltraTech cement. The cement business of Grasim was demerged and vested inSamruddhi Cement Limited in May 2010, with Samruddhi Cement Limitedconsequently being amalgamated with UltraTech Cement Limited in July 2010. InSeptember 2010, UltraTech Cement Middle East Investments Limited, a whollyowned subsidiary of UltraTech Cement acquired management control of ETAStar Cement Company, along with its operations in the UAE, Bahrain andBangladesh, thereby putting UltraTech on the global map.Today, UltraTech Cement is the tenth largest producer of cement globally. It hasa diverse presence across the globe. The company has eleven integrated plants,one white cement plant and one clinkerisation plant, which is based in the UAE.Furthermore, UltraTech has 15 grinding units across the world: 11 in India, 2 inUAE and 1 each in Bahrain and Bangladesh. It also has 2 rail bulk terminals inIndia, 3 coastal terminals, out of which 2 are located in India and one in SriLanka.
39UltraTech Cement is the largest selling single brand cement in India and thelargest cement clinker exporter. UltraTechs products include Ordinary PortlandCement, Portland Pozzolana Cement and Portland Blast Furnace Slag cement.UltraTech is the most trusted and preferred brand of Engineers, builders,contractors and individual house builders. Today, UltraTech is used in vitalstructures like dams, bridges, flyovers, airports, metro railways apart fromresidential and commercial structures.Ready mix concretes of UltraTech operate under the mother brand of UltraTechConcrete. UltraTech Concrete sub-brands are christened Fibrecon, Free Flow,Colourcon, Stainless, Thermocon, Hypercon, Pervious and Décor, each ofwhich offer a unique value proposition and cater mainly to specific requirementsof large infrastructural projects.UltraTech Building Products manufactures and markets technologicallyreengineered products including dry mix mortars and blocks for the constructionand infrastructure industry. The sub brands of UltraTech Building Products areSeal & Dry, Super Stucco, Readiplast, Fixoblock, Xtralite and Powergrout.
40UltraTech Building Solutions (UBS) is a novel concept in the Indian ConstructionIndustry. It is a one stop shop designed on the "plan, build and support"philosophy, which offers home building solutions right from planning tocompletion. UBS is based on a franchise model that caters to the building andconstruction needs of individual home builders as well as the entire building andconstruction fraternity. Collaboration is the key to UBS which houses renownedbrands of building materials apart from its own cement, namely paint,construction chemicals, steel, pipes and fittings. A basket of services liketechnical advisory, vaastu services, House Layouts and Construction CostCalculator, also form a significant part of the offerings at UBS.The UltraTech brand houses its white cement products under the umbrella ofBirla White. Birla Whites range comprises of Birla White Cement and otherfinishing products, widely used for interiors and exteriors including flooring,walls and ceilings. The sub brands of Birla White are Wallcare, Textura,Levelplast and GRC.Star Cement is a leading manufacturer of cement in the Middle East. Itsoperations are spread across UAE, Bahrain and Bangladesh with an installedcapacity of 3 million metric tons per annum.
41Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranksamong Indias largest private sector companies, with consolidated net revenue ofRs.202 billion and a consolidated net profit (before extraordinary items) ofRs.27.6 billion (FY2010).Starting as a textiles manufacturer in 1948, today Grasims businesses compriseviscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses areVSF and cement, which contribute to over 90 per cent of its revenues andoperating profits.The Aditya Birla Group is the world’s largest producer of VSF,commanding a 21 per cent global market share. Grasim, with an aggregatecapacity of 333,975 tpa has a global market share of 10 per cent. It is also thesecond largest producer of caustic soda (which is used in the production of VSF)in India.Grasim is the largest exporter of Viscose Rayon Fiber in the country, withexports to over 50 countries. This, along with Aditya Birla Nuvo can beconsidered as the flagship companies of the AV Birla Group.Grasim is Indias pioneer in Viscose Staple Fibre (VSF), a man-made,biodegradable fibre with characteristics akin to cotton. As an extremely versatileand easily blendable fibre, VSF is widely used in apparels, home textiles, dressmaterial, knitted wear and non-woven applications.Grasims VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujaratand Harihar in Karnataka, with an aggregate capacity of 333,975 tpa.NagdaNagda is its largest unit producing a wide range of VSF to suit customer
42requirements in terms of length, denier and colour and also second and thirdgeneration fibres like Modal, Excel and Solvent Spun fibres, respectively. Nagdais also the largest producer of spun-dyed specialty fibre in the world.HariharThe Harihar unit houses facility for manufacture of both VSF and rayon gradepulp, the basic raw material for VSF. The companys Rayon Grade plant was thefirst in India to use totally indigenous wood resources with in-house technologyfor producing rayon pulp with an innovative oxygen bleaching process to reducethe use of chlorine.KharachThe VSF plant at Kharach, set up in 1996, employs the most modern technologygiving it a competitive edge in the export market.Joint Ventures (JV)Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the solemanufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 percent of Thai Rayons VSF throughput is directly exported to more than 20countries worldwide. The VSF meets the stringent quality expectations ofcustomers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea,Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka.PT Indo Bharat Rayon Marketed under the brand name of Birla Cellulose, thecompany produces a wide range of VSF in engineered specifications for textilesand non-woven applications. The companys strong focus on environmentalprotection is reflected through its investments in a sophisticated state-of-the-artwaste-water treatment plant and scientific waste disposal systems.
43Grasim has joint venture with the following overseas companies: AV Cell and AV Nackawic in CanadaAV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSFunits in India, Thailand and Indonesia. Birla Lao Pulp & Plantation Limited in LaosTo further strengthen the backward integration in pulp, Birla Lao hasbeen formed as a JV with other associate companies for raising captiveplantations at Laos. This will provide a low cost source for wood to meetfuture requirements of a green field pulp plant in due course of time. Birla Jingwei Fibres Company Limited in ChinaThe JV with Hubei Jingwei Chemical Fibre Company Ltd. was formed in2006 for manufacturing VSF. Currently, this plant has a capacity toproduce VSF of 35,000 tpa.This spread and scale of operations make the Groups VSF operations very costcompetitive. Moreover, vertical integration into plantation, manufacturing of rayongrade pulp and horizontal integration into production of principal raw materialrequired for VSF production, namely, caustic soda, intermediate inputs namely CS2,sulphuric acid along with captive power and steam generation facilities, furtherenhance its competitive edge.Research& DevelopmentGrasim has established a very strong R&D base covering different stages of thevalue chain such as:Grasim Forest Research Institute, Harihar is involved in R&D of forestry. BirlaResearch Institute for Applied Sciences (BRI), Nagda is involved in thedevelopment of different generations of cellulosic fibres. Textile ResearchApplication Development Centre (TRADC) at Kharach, a NABL accredited Lab, is
44involved in addressing research and development related to downstream textilevalue chain comprising various fibres, yarns, processing, garments, etc.With the capability to offer the entire range of cellulosic fibre under the umbrellabrand of “Birla Cellulose”, Grasim has positioned itself as a dependable supplierof cellulosic fibres for “Feel, Comfort & Fashion” across global markets. Topenetrate into niche market segments and to grow further, the division hasventured into the production of high performance viscose fibres aptly namedViscose Plus, High Wet Modulus Fibres (Modal) and new generation SolventSpun Fibres and Birla Excel.Grasim is also the largest producer of SodiumSulphate, a byproduct of VSF manufacture. This chemical is widely used in thepaper and pulp, detergent, glass and textile industries.CementGrasim has grown to become a leading cement player in India. Grasim venturedinto cement production in the mid 1980s, setting up its first cement plant atJawad in Madhya Pradesh and since then it has grown to become a leadingcement player in India.Grasim’s cement operations today span the length and breadth of India, with 11composite plants, 11 split grinding units, four bulk terminals and 64 ready-mixconcrete plants as on 30 June 2009.All the plants are located close to sizeable limestone mines and are fullyautomated to ensure consistent quality. All units use state-of-the-art equipmentand technology and are certified with ISO 9001 for quality systems and ISO14001 for environment management systems.
45ChemicalsGrasim has Indias second largest caustic soda unit. Rayon grade caustic soda isan important raw material in VSF production. To achieve a reliable andeconomical supply of this chemical, Grasim set up a rayon grade caustic soda unitat Nagda in 1972, with an initial capacity of 33,000 tpa. This has since grown to258,000 tpa, making it the countrys second largest caustic soda unit.TextilesGrasim has strong nation-wide retail network and also caters to internationalfashion houses in USA and UK. Grasim has a strong presence in fabrics andsynthetic yarns through its subsidiary, Grasim Bhiwani Textiles Limited, and iswell known for its branded suitings, Grasim and Graviera, mainly in the polyester- cellulosic branded menswear.Grasims strong nationwide retail network includes 50 exclusive showrooms aswell as 200 wholesalers and 25,000 multi-brand outlets through which it reachesits customers. Grasim caters to international fashion houses in the USA and UKsupplying fabric to them for manufacturing of garments, which are available insome of the largest retail chain stores.Sources of competitive advantageCost: Grasim is the lowest cost producer of VSF in the world. It is the mostintegrated fibre producer with the chain stretching right from Forest to Pulp toFibre to Yarn. All most all the intermediate inputs are captive. Besides, their in-house engineering division enables us to grow in a most cost effective way.Technology: On technology front, they produce all the three generations of man-made cellulosic fibres from an in-house developed capability through researchand development. Their research and development efforts are not limited to
46fibre stage alone but extend to entire textile value chain. While the plantationand related activity is carried out at Grasim Research Institute (GFRI, Harihar,India), the Product innovations are carried out at Birla Research Institute (BRI,Nagda, India). For value chain related activities, a state of art “Textiles Research& Application Development Centre” has been established at Kharach, Gujarat-India to entire textile value chain from yarn to fabric to garments.Markets: On marketing front, their reach extends to the entire globe, throughmarketing offices. On a global level, their major strength is in spun-dyed fibresand now other specialties such as Non-woven, Modal and Excel have startedpenetrating in global markets. Their brand “Birla Cellulose” is firmly entrenchedin the market. Their value added marketing services comprising of technical,logistical, financial, marketing and informational support have enabled us toemerge as the most preferred supplier of VSF in world.Our offerings whetherfrom India, Thailand, Indonesia or China are all marketed under the motherbrand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel.An umbrella brand has enabled us to create a common identity for our productacross the globe irrespective of its production origin and creating of awarenessof the brand.Consumer Products Division of Grasim IndustriesGrasim Industries, an Aditya Birla Group Enterprise has started its ConsumerProduct Division with various personal care & home care dry & wet wipesproducts. This marks the company’s foray into the Indian FMCG market.TheIndian FMCG market is of US$13.1 billion and is the fourth largest sector in theeconomy. FMCG Sector is expected to grow by over 60% by 2015. That willtranslate into an annual growth of 10% over a 5-year period.
47In 2008 the company launched Kara skin care wipes and Prim Home Care wipes.Kara Skincare wipes is positioned as an essential skincare accessory.In 2009, Grasim entered the baby care segment with the launch of Puretta.Puretta is targeted at todays mother, who opts for a contemporary andconvenient lifestyle. Introduced for the first time in India, the Puretta productportfolio includes Complete Cleaning Wipes, Germ Shield Wipes and SkinNourishing Wipes.Birla Cellulose is the Aditya Birla Groups umbrella brand for its range ofcellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla ViscosePlus, Birla Modal, and Birla Excel. These brands offer a wide range of functionalbenefits such as soft feel, high moisture absorbency, bio degradability andcomfort to the wearer. These fibres have multiple applications including apparel,home textiles, dress material, knitwear, non-woven etc.Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in1954. Birla Cellulose is a world leader in viscose staple fibre (VSF). Itsproduction is spread across six countries, viz. Canada, Thailand, India, Indonesia,China and Laos. The Group independently fulfils Indias entire VSF requirements.With a strong focus on Research and Development (R&D), the Groups R&Dinitiatives span the entire value chain. Grasim Forest Research Institute — pulp to plantation research Birla Research Institute for Applied Sciences — pulp to fibre research
48 Textile Research & Application Development Centre (TRADC) — valuechain from fibre to garments / made ups"Nature is the genesis of all that surrounds us; therefore, what other than naturecould be the origin of Birla Cellulose.”. Nature is the source of Birla Cellulose andherein the inspiration of our logo lies.Fibers from Nature is our theme and our message: Leaves fall and grow all overagain; they are a renewable resource of nature. Birla Cellulose is much like theseleaves and is made from the same trees. The floating leaves symbolise the keycharacteristics of Birla Cellulose which are "comfort and lightness". The vibrantgreen indicates that Birla Cellulose can take on vibrant colours. The circlesignifies the cycle of nature and sustainability.Nature remains the underlying theme for all our brands: Viscose is symbolised by the fresh green of summer Modal is symbolised by the burnt orange of autumn Excel is symbolised by the deep pink of spring.An integrated outlookBirla Cellulose is growing by leaps and bounds through both organic andinorganic route. The efforts towards integration and self-sufficiency are asfollows: Backward integration into pulp and plantation. Captive power plant at all locations. In house manufacturing of all major chemicals and auxiliaries used in VSFmanufacturing.
49Attributes of Birla CelluloseNatural: Soothing, comforting and elevating, Birla cellulose exhibits all qualitiesof its source nature.Stylish:The drape and fall of Birla Cellulose with its natural inheritance is afashion statement.Timeless: Just like nature, Birla Cellulose, is timeless and shall always remain invogue.A fashion catalyst: A hint of Birla Cellulose in your wardrobe brings in theglamour that differentiates between mundane and fashionable.Versatile: Birla Cellulose combines the best properties of all fibres. It isextremely bendable hence enhancing the realms of possibilities in clothing.Birla Cellulose - Fibres from nature contributing to a green worldPreserving our environment has always been the inspiration behind BirlaCellulose. It has successfully achieved this goal through the following initiatives: Nurturing and building the green coverOver a million plantlets are being produced from identified superiorclones for development of clonal orchards and plantations. Land conservationEfforts are on to encourage tree-farming practice on marginal, sub-marginal and fallow lands to the best advantage of the country. The yieldof Viscose is seven times that of cotton for the same land area. Thussignificantly contributing to conservation of land, and reaping maximumresults from this limited resource.
50 Water conservationBirla Cellulose Viscose is highly environment friendly. Every kilogram ofviscose produced saves 200 buckets of water when compared to cotton.Thus it preserves one of the most valuable natural resources. Process friendlinessThe process being followed for production is environment friendly andgreen due to the following advantages:Non toxic effluent as a result of replacement of zinc by alumLess solid waste generation due to reduced lime consumptionReduced risk of fouling biological microorganism in reactor Spun ShadesThis variant is environment friendly and results in conservation of waterthroughout the value chain. It is Okeo Tex certified, i.e. it meets theecological requirements set for baby articles.Birla Cellulose: The perfect blendBirla Cellulose fibres are the perfect blend with all types of fibres. The benefits ofusing Birla Cellulose as a blend are as below:Birla Cellulose blends Benefits of blending with Birla CelluloseBirla Cellulose-cotton Makes cotton soft and suppleImproves fabric uniformityImparts sheen and colour brillianceBirla Cellulose-wool Improves wear properties
51Imparts softnessEnhances skin friendlinessAdds shine and lusterBirla Cellulose-silk Maintains sheen of silkImproves comfortEconomical and fashionableBirla Cellulose-syntheticsImproves comfort, breathability, lustre and skinfriendlinessBirla Cellulose-elastane Offers excellent sheen, comfort and stretchBirla Cellulose-elastane Offers excellent sheen, comfort and stretchPRODUCTS OF BIRLA CELLULOSEAditya Birla group announced its foray into the baby care segment in India bylaunching ‘PURETTA’ 100 per cent natural and biodegradable baby care wipes in2009. Product portfolio includes Complete Cleansing Wipes, Germ Shield Wipesand Skin Nourishing Wipes. These wipes are safe for the baby’s delicate skin asthey are alcohol free, hygienic, hypoallergenic and dermatologically tested. SincePuretta (meaning pure and diminutive) is made from Birla Cellulose, soothes thebaby’s tender skin with its soft and nature-friendly properties.While the usage of baby wipes is growing in India, there is limited access toquality products at the right price points. Most of the products available today
52are imported, and are primarily regular wet wipes that do not serve the specificneeds of baby care. Puretta fills this gap with its three distinct variants, aiming tosatisfy the need of Smart Moms.Most of the other wet wipes in the market today are made from Polyester-Viscose blended non- woven fabric or paper. Polyester is not skin friendly and itsrepeated use on the skin is not advisable. Paper tissues tear off when rubbedover skin and leave lint on face in a way that can often embarrass the user. WhilePuretta is made up of non-woven fabric which absorbs sweat, extra oils from theskin without scrubbing it. It doesn’t wither when rubbed hard and doesn’t leavelint on facial skin or stubble.Characteristics of Puretta Baby Wipes Safe for baby’s skin. Hygienic. Hypoallergenic Dermatologically tested. Alcohol free. With mild fragrance. Convenient- hassle free cleaning and application of lotions without usingtowel or cotton balls. Portable. With optimized efficacy. For complete baby care.
53Variants of Puretta Complete Cleansing WipesComplete cleansing baby wipes are enriched with chamomile extracts thesewipes are gentle and soothing to the baby’s skin ensuring complete cleansingwhile retaining the pH balance of the skin. It is a smart way to clean the babycompletely anytime & anywhere.It is basically used on baby’s nappy area and can be used on complete body of a0-3 years of babies. It is used for following:Every nappy or diaper change.For cleansing in the absence of regular bath while travelling or inwinters.Wipe entire body to keep baby clean and fresh at all times, day or night.Provide soothing relief.Most of the other wet wipes in the market today are made from Polyester-Viscose blended non- woven fabric or paper. Polyester is not skin friendly and itsrepeated use on the skin is not advisable.Paper tissues tear off when rubbed over skin and leave lint on face in a way thatcan often embarrass the user. While Puretta is made up of non-woven fabricwhich absorbs sweat, extra oils from the skin without scrubbing it. It doesn‟ twither when rubbed hard and doesn‟ t leave lint on facial skin or stubble.
54 Skin Nourishing WipesSkin Nourishing Baby Wipes keeps the baby’s skin soft and nourished always,after a bath or even during the dry season. Enhanced with Mineral oil and Pearextracts, it leaves a protective layer of moisture on the baby’s delicate skin. Asmarter way to keep the baby’s skin nourished anytime, anywhere.It is used on baby’s complete body especially hands, feet, face, neck and backarea. It is a good add-on or occasional substitute for baby oil massage. It isbasically for babies of age 0-3 years but can also be used for older children withsensitive skin. And it is used for following:Essential to keep baby’s skin soft and nourished always.After bath and during dry season.While travelling or exposure to air-conditioning at home Germ Shield WipesGerm Shield Baby Wipes contains antiseptic properties to protect the babiesfrom germs always. Enriched with Lavender extracts, it leaves the baby’s skinrefreshed. A smart multipurpose option for not only sanitizing baby’s hands andmouth but also utensils, tethers and toys, anytime and anywhere.
55It is basically for 0-5 year old babies but can also be used by older children whiletravelling and also advisable for adults handling the babies. And it is used forprotecting the babies from germs throughout the day with natural antisepticproperties.Essential to clean baby as he/she gains mobility and crawls on surfacethat may be contaminated.After play time, before food and especially while travelling.To sanitize baby’s utensils, tethers and toys.PRIMHome & Kitchen Care WipesPRIM is basically dry wipes used in Kitchen and various multipurpose householdworks. It can be used to wipe the utensils and cutleries. One wipe can be used forat least a month in the kitchen. There is no product in the market in this categorybut Scrotch brite is there which is seen as the substitute of the product. Usuallycloth is used as the substitute in most of the families but if the promotion is doneproperly to make the consumers aware of this product it will do very good in themarket because of very less competition in this category. There are two packsavailable in the market one is three wipes pack and the other one in five wipespack.
56HANDYS - Hand sanitizing wipesHandys hand sanitizing wipes have been shown to clean and sanitize hands moreeffectively than rub-in gels. These sanitizing wipes are extra tough on germs,killing 99.9% of germs. Though there are few companies who manufacturesanitizing wipes, but all of them are alcohol based. Handys is the only sanitizingwipe which is Triclosan based and as sufficient as alcohol in killing germs.Triclosan is one of the antibacterial and antifungal and even toothpaste. GrasimIndustries outsource Triclosan from vivimed Labs based in Hyderabad. Thewipes contain 0.1% Triclosan which is sufficient to give required anti bacterialproperties.Rub-in gel sanitizers can not remove stain marks or dirt but sanitizing wipes arevery efficient in cleaning hands. It is gentle on hands, containing moisturizers,aloe vera and silicones. Clinically tested, our hand sanitizing wipes provideconvenient protection anywhere, anytime when soap and water are notavailable. It is an excellent product for anybody seeking hygiene and preventionfrom infections.KARA Skin Care WipesGrasim Industries has started its Consumer Product Division with various FMCGproducts which includes personal care & home care dry & wet wipes products.The main product of our concern for the research is Kara Skincare wipes.
57It is not easy to look beautiful all the time and it gets even harder when you areout of home with pollution, dust and heat. Introducing for the first time in India,Kara a complete range of skincare wipes.In India, the market for wet wipes was gradually picking up with changinglifestyles and the fast pace of life among the young and upwardly mobilepopulation with higher disposable income.Kara skincare wipes fill up the lacuna in this segment as there is lack ofavailability of quality products at appropriate price in the Indian market.Kara Skincare wipes is a new product to hit the Indian market. The brand is nowrunning heavy print campaign announcing the launch. Kara Skincare wipes canbe called as Indias first branded skincare wipe product. Skincare wipes arepopular in the west but in India the category is a new one. Although Indianconsumers are familiar with the products which are imported, it’s the first timethat an Indian company enters this segment Kara means care. The brand alsomarks Aditya Birla Groups foray into the Indian FMCG market.The brand aims to create a new category of wipes in India. Hence the challenge isto educate the target audience about the usefulness of this product. This task iscut out for Kara since the customer is already exposed to such products. The onlytask is to inculcate the habit of buying and using the wipes. The product isrelevant in the Indian market for two reasons. One is the climate which necessitates such a product and Second is the growing number of lady professionals.The brand has the tagline “At your best always” this clearly communicates thecore brand positioning. The brand is being promoted as the anytime solution tolook good.
58Also Kara is loaded with lotions for different application like deep pore cleansing,moisturizing, toning, sunscreen and make up remover.Rejuvenating the skin is a natural property of mint oil and cucumber coupled withaloe Vera for skin nourishing – in refreshing wipes.Jojoba and Avocado unclogs pres, detoxes and exfoliates dead skin in Deep PoreCleansing wipes.Rose and Thyme are well known to have toning properties – used in Toning Wipes.Honey and Almond are age – old products for removing dryness of skin andmoisturizing present in – moisturizing wipesAloe Vera and plum have natural sunscreen properties – Kara Sunscreen wipes.Lavender cleaning and relaxing properties while Seaweed has nourishing effect onskin – both used for makeup removal wipes.Kara has a good potential to create and own a new category. The brand alreadyhas the first mover advantage. But the category does not have much entrybarriers. It can face stiff competition from cheap imports. But Kara has thefinancial backing of Birla group and the investment in building this brand willpave the way for another successful marketing story.
59Kara is readily available pan India at superstores, cosmetic and chemist outletsand modern retail. The ease of usability of a convenient and high value productat an affordable cost in India for a young and mobile population is a hugeopportunity that Kara wishes to address.Kara wipes were highly effective with unique formulations having naturalingredients that nourish the skin. They are alcohol free and dermatologicallysafe. Kara is made from Birla Cellulose, a fibre that is 100 % natural andbiodegradableCompactly packaged and pre-moistened Kara skincare wipes give a hygienic,convenient and effective skincare solution to the consumers on the go. Thesewipes are easy to carry and use.Raw Material Used for KARAKara is made of 100% Viscose. Viscose is Purer & Softer and more absorptivethan Cotton. VSF is 100% Natural and 100% Biodegradable. The material is non-woven fabric which absorbs sweat, extra oils from the skin without scrubbing it.It doesn’t wither when rubbed hard and doesn’t leave lint on facial skin orstubble. Most other wet wipes in the market today are made from Polyester-Viscose blended non-woven fabric or paper. Polyester is not skin-friendly and itsrepeated use on the skin is not advisable. Paper tissues tear off when rubbedover skin and leave lint on face in a way that can often embarrass the user.How it worksThe science behind this dullness is the formation of unstable molecules calledfree radicals when your skin is exposed to elements like pollution, sun, wind,temperature, and stress during the day. These react with the skin to deplete skinproteins (collagen) and thus weaken the skin substrate to cause a slowcontinuous ageing, which one does not realise till the effects start showing in the
60form of wrinkles and sagginess. How do we prevent this? The answer lies in aregular dose of nourishment for your skin that is rich in antioxidants.With a new innovative product range of Kara ™ Skincare Wipes rich in naturalextracts, this once incurable problem has found an extremely simple answer.What you could not do so far through the day is now possible as many times asyou want. A critical three step action which cleans your skin, gives it essentialhydration and replenishes the vital nutrition of the skin can be done in one easyswipe, thanks to the advanced skin wipe technology from Kara. Its uniqueinnovative three step action that is set to change your skincare routine, andensure that the skin stays young and vibrant all though the day.1. Skin cleaning: Skin experts recommend thorough cleaning of the face beforeapplying anything in order to avoid blocking of pores with lotions which canresult in boils, acne and pimples. To take care of this, every skincare wipe hasfibrils on its surface which ensure thorough cleaning of the skin pores when theycome in contact with the skin.2. Hydration: The benefits of water in preventing skin ageing and dullness arewell established. Each skincare wipe has 80% aqua loading which is transferredto the skin, ensuring a rich, ageless and healthy skin.3. Nourishment: Antioxidants are substances that combat free radicals, and thushelp reverse the process of ageing. A steady dose of antioxidants through the dayhelps in preventing skin ageing. Each Kara wipe has natural ingredients likeavocado, aloe Vera and almonds etc. which serve as antioxidants, and thusnourish the skin constantly to gradually reveal flawless glowing skin.This three step action was always a very critical need for the skin, and with therevolutionary wipe format of skincare, it has enabled women to rectify dullsagging skin all through the day. Additionally, a mesh like structure of the easy-to-carry around wipe helps to hold just the right amount of lotion for one timeusage, and a superior applicator technology that regulates the uniformity of
61lotion absorption into the skin. Therefore, the right amount of skincare at theright time is the Kara way of doing skincare. Make Kara skincare wipes a habit,and see your skin rejuvenate and glow with health and beauty, forever!Manufacturing Facility of KARAKara wipes are manufactured at the company’s plant at Kharach, Gujarat. Theplant layout is approved by FDA and manufacturing activity takes place understringent conditions that ensure user safety and hygiene.Aditya Birla Group launched this product i.e. KARA skincare wipes in 2008. It isbasically a solution to skin care regime out of home– a convenient way to be atyour best always. Sometimes your hectic schedule leaves you with little time totake care of your skin. But with Kara skincare wipes in your bag, you can now takecare of your skin even when you are on the go.With the unique formulation of natural ingredients, these wipes are easy to useanytime and anywhere. What’s more they are made from Birla Cellulose, a fibrethat is 100 per cent natural and biodegradable.Kara skincare wipes are the India’s first branded skin care product. These typesof products are very popular in west but in India the category is new one.Although Indian consumers are familiar with the products which are imported, isthe first time that an Indian company entered this segment. The brand alsomarks Aditya Birla Group’s foray into the Indian FMCG market. According toreports, wipes market is worth around Rs. 30 crore (Source: Ginny filamentWebsite). Kara skincare wipes are positioned as an essential skincare accessory.The brand is targeting the young lady professionals who often need to meet lot ofpeople. The brand aims to create a new category of wipes in India. Hence thechallenge is to educate the target population about the usefulness of this product.
62 Hassle free application of lotion without using cotton balls. Portable Optimized efficacy. 100 per cent natural and biodegradable. Hygienic. Alcohol free. Dermatologically safe. Assurance of ‘Aditya Birla Group’Variants of KARA Deep Pore Cleansing WipesKara Deep Pore Cleansing is a gentle, effective way to clean your skin ofdirt, grime and excess of oil. Enriched with Jojoba and Avocado extracts, itunclogs pores, detoxifies and thoroughly exfoliates dead skin cells. Sunscreen WipesKara sunscreen wipes has a formulation of SPF 20 which protects the skinfrom the adverse effects of UV A and UV B sun rays. It is enriched with
63antioxidants like plum extract and vitamin E that nourishes the skin andAloe Vera that keeps the skin moisturized. Moisturising WipesKara Moisturising wipes is enriched with the goodness of almond andhoney for beautiful radiant and glowing skin. It is also fortified withvitamins for skin conditioning and is suitable for use right throughout theyear. Toning WipesKara Toning Wipes is enriched with Rose and Thyme extract that tightenthe skin and maintain the normal pH balance. Make Up Removal WipesKara Make-Up Removal Wipes are enriched with Lavender and Seaweedextracts that removes the make-up in just one swipe. Refreshing Facial Wipes
64Kara Refreshing wipes are enriched with Aloe Vera for skin nourishmentand mint oil for effective freshening. It ensures effective cleansing toremove dirt, excess oil and grime from the face and neck and also leaves alingering fragrance.Disposable Wipes MarketIndustrialization and urbanization has led to concentration of human settlementat urban centers, which are the hub of the commercial activities. Industrializationhas also led to an increase in personal income levels and the consequentialexpansion of the middle class, allowing a greater number of folks to indulge invalue added consumer disposable items like facial cleaning wipes,moisttowelettes, personal hygiene wipes and time-saving products likehousehold cleaning wipes etc. The growing use of wipes in industrial andconsumer applications, combined with modernization and increased consumerawareness, has led to an increase of demand of wipes globally.Wipes started at the bottom or more precisely, the baby’s bottom. Yet, during thepast decade, the category has grown to include hard surface cleaning, makeupapplications and removal, dusting and floor cleaning.In fact, applications otherthan baby care now account for about 50% of sales in the wipes category.Disposable wipes have evolved into a global business concept generating morethan $5 billion in sales a year. Achieving strong double-digit growth year afteryear, the category now assumes a major role in the personal care market.
65Spanning from make-up removal and deodorant wipes in personal care to floorand furniture cleaning products in household care, disposable wipes havegradually expanded to offer a wide range of new applications, replacing thetraditional combination of cloth, cotton and cleaning solution.North America continues to be the leading market, and is projected to grow from$4.5 billion in 2009 to $5.5 billion in 2014. Western Europe is second with salesof $3.6 billion in 2009, which is predicted to grow to $4.2 billion in 2014.According to reports, China represents more than 33% of the world’s spunlaceproduction, growing more than 33% between 2008 and 2009. More rapid gainswill be linked to developing nations such as China and India; China alone hasincreased its demand for wipes to nearly $500 million in 2011 and will surpassJapan as the leading market in the Asia/Pacific region.Classification of wipes based on applicationWipes mainly cater into 3 categories:1.Personal Care wipes2.Household & home cleaning wipes3.Industrial cleaning wipesAs per the EDANA’s report in 2010, the total wipes deliveries in 2010, amountedto 283,058 tonnes to be compared to 250,356 tonnes in 2009. They subdivide asshown in table 1.Personal Care wipes:The personal care wipes market has increased by 15.7% compared to 2009.• Baby wipes: Baby wipes are wet wipes used to cleanse the sensitive skin ofinfants. These are saturated with solutions anywhere from gentle cleansing
66ingredients to alcohol based cleaners. Baby wipes are typically sold in plastictubs that keep the cloths moist and allow for easy dispensing.• Cleansing pads: Cleansing pads are fiber sponges that have been previouslysoaked with water, alcohol and other active ingredients for a specific intendeduse. There are different types of cleansing pads offered by the beauty industry:makeup removing pads, anti-spot treatments and anti-acne pads that usuallycontain salicylic acid, vitamins, menthol and other treatments).Cleansing padsfor preventing infection are usually saturated with alcohol and bundled in sterilepackage. Hands and instrument may be disinfected with these pads whiletreating wounds. Disinfecting cleansing pads are often included in first aid kitsfor this purpose.• Personal hygiene: These are usually pre-moistened and come eitherindividually packaged or in one larger container that can be resealed. Thesekinds of wipes can be useful when you’re doing outdoor activities, especiallyduring warmer weather. The wipes can remove dirt and sweat before they settleinto your pores. Some no-rinse wipes can even remove waterproof makeup.Household & home cleaning wipes:• Kitchen wipes• Bathroom wipes• Food service wipes• Glass surface cleaning wipes• Automotive care wipesIndustrial cleaning wipeWhen it comes to industrial applications, choosing the right wipe for the job canmake an enormous difference in terms of performance, efficiency and economy.Rags and laundered cloths were once the all-purpose solution for wiping dirt andoils from equipment and hands. Convenient disposable wipes are now widelyrecognized as the preferred alternative.
67Global demand for wipesPre-moistened or wet wipes are normally supplied to the consumer already wetor pre-moistened with a liquid, while the dry wipes are supplied dry, with theunderstanding that the consumer will add a liquid if needed. In 2009, wet wipescontributed around 71% of the total wipes market. Over time, dry wipes arepredicted to gradually gain market share, growing from 29% in 2009 to 30% in2014.Raw materials for wiping fabrics:• Polyester: It is by far the most common fiber for carded technologies. Asper theapplication and wipes categories the blend percentage varies. Normally theIndustrial wipes are made from 100% Polyester. It is estimated at nearly 43% ofthe fiber consumed in spun lace.• Viscose: It is another common fiber for wipes, especially for personal care.Personal care wipes are used on very sensitive parts – baby care, facial wipes
68etc.It has to be very soft, smooth and silky. Viscose fiber has all these propertiesand because of these properties viscose fiber is referred as “art silk” in the textileindustry. Nonwovens industry producers have been working on developingwipes that will flush. To create aflushable nonwoven product, the rightcombination of strength, easy break up and dispersion is required. To beconsidered truly flushable the wipe must also be biodegradable. Wipes madefrom viscose fibers have all these properties and thus can be categorized hasflushable products.Household wipes are generally made up of polyester andviscose blended fibers, polyester being the major component.• Cotton:Environmental consciousness combined with price increasesandshortages in competing materials have created a strong market opportunity forcotton in the nonwoven industry during the past two years, particularly in thewipes market where the addition of cotton can boost absorbency and strength.Cotton has been enjoying a place in the private label baby wipes market, viscosecontinues to be a dominant fiber in most spunlace applications, despite a globalsupply shortage that has driven up prices.Developed regions like the U.S., Western Europe and Japan will continue to lead
69the global wipes market because of the large affluent population and lifestyletrends focused on time saving products. Developing regions like China and Indiawill show a rapid growth for wipes – due to the industrial expansions leading toexpress economic growth.Opportunities for growth exist however they can only be realized bycontinuously introducing innovative products. Wiping fabric manufacturers areworking hard to make sure their wipes customers have lots of choices when itcomes to environmentally friendly products.Some of the categories where wecan expect to see future growth are household cleaning wipes, toddler wipes andfacial wipes.Baby care may have marked the beginning of nonwovens market; the marketersare now moving into even more lucrative categories in an effort to expand theuse of wipes beyond babies and are reaching to older kids and their parents.Their portability and convenience, coupled with the hygiene aspect of theirsingle usage, has made them very popular with all types of consumers. Clearlywipes are a rags-to-riches success story in the household and personal productsindustry and we can bet that demand for these products will continue to grow.In the never-ending drive to encourage consumer spending, advertisers aretargeting the hygiene habits of the young Indian male.Analysis of Indian wipes marketIn the last 3 years there has been an explosion in the number and types of wipesavailable to the consumer. From baby wipes and facial wipes to disinfectingwipes for your countertop and a slew of automotive wipes to keep your 4-wheel“baby” shiny and supple. In a fast paced world, these wipes are designed forconvenience, whether that is for your own personal use or to deal with all thosethankless jobs around the house and garage.
70Betting that rising incomes are persuading more Indian men to take better careof their appearance, the Aditya Birla conglomerate is offering Kara – a newweapon in the battle against the sweat generated as boys go about their dailybusiness. Kara is a face wipe designed to replace the damp cotton towel manyIndian men carry on their bikes and scooters as they negotiate the hot streets ofMumbai or Madras.Male grooming products have become one of the fastestgrowing segments of India’s consumer products industry as men pay ever moreattention to how they look and move away from a traditional emphasis onintelligence as the ultimate male quality.Datamonitor, UK-based market research consultancy, estimates that 50 per centof Indian men and women believe that physically attractive people have moreopportunities in life.“Rising affluence and greater consciousness of personal image and hygiene areexpected to drive growth in both rural and urban areas,” said Euromonitor, aLondon-based market research firm, in a report.Sales of dedicated men’sgrooming products in India are estimated to be $500m a year, and rising at 15per cent annually.Changes in trends in the wipes market have also been driven by new productdevelopments and the positive reception of new product applications by theconsumer.The global market for wet wipes continues to grow, although it isimportant to becognizant of the challenges that will present great difficulties tomany. Those companiesthat can combine cutting edge technology with thedevelopment of new and innovativeideas will survive in the long run. The wipesin India are generally made of Viscose andSpun lace. Birla Cellulosemanufactures 98% of the Viscose Staple Fiber in India, so it ispoised to do wellagainst other local players as they would have to purchase VSF from it.The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holdsadominant position in market with turnover of Rs. 4.5 crores thus capturing 56%of themarket. However the sector in India is currently fragmented and
71unorganized. Ginnifilaments (Noida) also hold a strong position in wet wipesmarket, though their productcan’t be matched in terms of quality to Kara.Wipes witnessed a surge in the number of players vying for consumer attentiontowards the latter half of the review period. Grasim Industries Ltd undertookintense brand activity in 2009 and 2010, while Johnson & Johnson (India) Ltdlaunched a baby wipes product line in 2010. Others such as The Himalaya DrugCo. and Godrej Consumer Products Ltd launched brands in 2009 and extendedtheir portfolios over 2010. Private label players Apollo Pharmacy and PantaloonRetail India Ltd heightened their brand promotions through point-of-salevisibility in 2010.The disposable wet wipes market, fairly niche and nascent in India, hasgrown to Rs 8 crores. Birla Cellulose (Consumer Products Division ofGrasim Industries), which has launched three brands in this categorynamely Kara, Puretta and Prim for various purposes over the last coupleof years, accounts for Rs 4 crores of the market.In the US and Europe, 6 and 10 per cent of the income is spent ondisposable products. In India, it is 0.0001 per cent.Worldwide, wet wipes are a $6-billion category, but in India, it’s a nascentcategory, and a lifestyle item at that, not an essential one, so it will take awhile before there comes an inflection point.The disposable wipes market posted double-digit growth in 2008.Consumer awareness about hygiene products increased as a result ofincreasing advertising, price reductions and the launch of cheapervariants by manufacturers over the latter half of the year. Skin Care wipesalso benefited due to the faster pace of life in cities and the rise in thenumber of nuclear families and working women, who tend to rely moreon disposable products when working in the kitchen or whilst travellingoutside of the home.
72The wipes in India are generally made of Viscose and Spun lace. BirlaCellulose manufactures 98% of the Viscose Staple Fibre in India, so it ispoised to do well against other local players as they would have topurchase VSF from it.The leading market research agency KSA TECHNOPAK conducted amarket survey & discovered that there is a huge untapped potential forwipes in India. According to the survey after Delhi NCR and Chandigarh,Lucknow is the biggest market for cosmetics in North India.The disposable wipes market in India faces stiff competition from cheaperChinese imports.Competitive LandscapeThe stronghold of Tainwala Personal Care Products Pvt Ltd on wipes graduallywaned over the latter half of the review period. The company built on its first-mover advantage in the review period, and still commands 70% of all wipesvalue sales in India. However, the swift emergence of national players such asGrasim Industries Ltd, The Himalaya Drug Co, and private label players hascaused disruption to its lead in both general purpose wipes and baby wipes.ProspectsWipes constituted less than 1% of retail hygiene value sales in India in 2010.With such products not being traditionally popular in the country, the categorystill relied on niche consumer segments or season-dependent sales. Thoughhome care wipes and floor cleaning systems is not likely to see any majordevelopments over the forecast period, other product categories under personalwipes – including intimate wipes and cosmetic wipes – are expected tocontribute more to wipes growth overall. In a similar trend to the review period,a majority of value sales growth in all wipes categories will be due to the entryand marketing push of national manufacturers.