A study on toilet soap industry in India

1
A STUDY ON TOILET SOAP INDUSTRY IN INDIA
“A Study on Toilet Soap Industry in India”

2
ROURKELA INSTITUTE OF MANAGEMENT STUDIES, ROURKELA
CERTIFICATE
This is to certify that the work in this Report entitled, “A STUDY ON TOILET SOAP
INDUSTRY IN INDIA” submitted by SAGAR RANJAN DAS (Roll No - 1806260051), was
carried out under my supervision in partial fulfillment of the requirement for the award of
degree of Master of Business Administration, during the session 2018-20 in the Department of
MBA, Rourkela institute of management studies, Rourkela.
To the best of my knowledge, the matter embodied in the report has not been submitted to any
other university/Institute for the award of any degree.
Dr. S. K. Biswal
(Faculty I/c – International Business)

3
ACKNOWLEDGEMENT
I express my sincere gratitude and indebtedness to my seminar guide Dr. S. K. Biswal for his
initiative in this field of research, for his valuable guidance, sympathies and kind attitude
always encourage me to carry out the present work firmly.
Place : Rourkela
Date : 05-04-2019 Sagar Ranjan Das

4
TABLE OF CONTENTS
Sl.
No.
Particulars
Page
No.
1 Introduction 5
2 History 5
3 Difference between Toilet Soap & Bathing Soap 8
4 Profiling -HUL 10
5 Profiling- ITC LTD 15
6 Profiling -Patanjali Ayurved Limited 23
7 Profiling -Reckitt Bencuiser (India) Ltd 25
8 Profiling - Wipro Consumer Care 27
9 Porter's 5 Forces Model 30
10 PEST Analysis 36
11 Summary & Conclusion 38
12 Bibliography 41

5
Introduction
Soap is the term for a salt of a fatty acid(1) or for a variety of cleansing and lubricating products
produced from such a substance. Household uses for soaps include washing, bathing, and other
types of housekeeping, where soaps act as surfactants, emulsifying(2) oils to enable them to be
carried away by water. In industry, they are used as thickeners, components of some lubricants,
and precursors to catalysts.
In a domestic setting, "soap" usually refers to what is technically called a toilet soap, used for
household and personal cleaning. When used for cleaning, soap solubilizes particles and grime,
which can then be separated from the article being cleaned. The insoluble oil/fat molecules
become associated inside micelles, tiny spheres formed from soap molecules with
polar hydrophilic (water-attracting) groups on the outside and encasing a lipophilic (fat-
attracting) pocket, which shields the oil/fat molecules from the water making it soluble.
Anything that is soluble will be washed away with the water.
History
The earliest recorded evidence of the production of soap-like materials dates back to around
2800 BC in ancient Babylon. A formula for soap consisting of water, alkali, and cassia oil was
written on a Babylonian clay tablet around 2200 BC.
The Ebers papyrus (Egypt, 1550 BC) indicates the ancient Egyptians bathed regularly and
combined animal and vegetable oils with alkaline salts to create a soap-like substance. Egyptian
documents mention a similar substance was used in the preparation of wool for weaving.
In the reign of Nabonidus (556–539 BC), a recipe for soap consisted of uhulu (ashes), cypress
(oil) and sesame (seed oil) "for washing the stones for the servant girls".
The word sapo, Latin for soap, likely was borrowed from an early Germanic language and
is cognate with Latin sebum, "tallow". It first appears in Pliny the Elder's account. Historia
Naturalis, which discusses the manufacture of soap from tallow and ashes, but the only use he
mentions for it is as a pomade for hair; he mentions rather disapprovingly that the men of
the Gauls and Germans were more likely to use it than their female counterparts. Aretaeus of
Cappadocia, writing in the first century AD, observes among "Celts, which are men called

6
Gauls, those alkaline substances that are made into balls called soap". The Romans' preferred
method of cleaning the body was to massage oil into the skin and then scrape away both the oil
and any dirt with a strigil. The Gauls used soap made from animal fat.
Zosimos of Panopolis, circa 300 AD, describes soap and soapmaking. Galen describes soap-
making using lye and prescribes washing to carry away impurities from the body and clothes.
The use of soap for personal cleanliness became increasingly common in the 2nd century A.D.
According to Galen, the best soaps were Germanic, and soaps from Gaul were second best.
A detergent similar to soap was manufactured in ancient China from the seeds of Gleditsia
sinensis. Another traditional detergent is a mixture of pig pancreas and plant ash called "Zhu
yi zi". True soap, made of animal fat, did not appear in China until the modern era. Soap-like
detergents were not as popular as ointments and creams.
Islamic Middle East
Hard toilet soap with a pleasant smell was produced in the Middle East during the Islamic
Golden Age, when soap-making became an established industry. Recipes for soap-making are
described by Muhammad ibn Zakariya al-Razi (854–925), who also gave a recipe for
producing glycerin from olive oil. In the Middle East, soap was produced from the interaction
of fatty oils and fats with alkali. In Syria, soap was produced using olive oil together with alkali
and lime. Soap was exported from Syria to other parts of the Muslim world and to Europe.
A 12th-century Islamic document describes the process of soap production. It mentions the key
ingredient, alkali, which later becomes crucial to modern chemistry, derived from al-qaly or
"ashes".
By the 13th century, the manufacture of soap in the Islamic world had become virtually
industrialized, with sources in Nablus, Fes, Damascus, and Aleppo.
Soap makers in Naples were members of a guild in the late sixth century (then under the control
of the Eastern Roman Empire), and in the eighth century, soap-making was well known in Italy
and Spain. The Carolingian capitulary De Villis, dating to around 800, representing the royal
will of Charlemagne, mentions soap as being one of the products the stewards of royal estates
are totally. The lands of Medieval Spain were a leading soap maker by 800, and soapmaking
began in the Kingdom of England about 1200.Soapmaking is mentioned both as "women's
work" and as the produce of "good workmen" alongside other necessities, such as the produce
of carpenters, blacksmiths, and bakers.

7
In Europe, soap in the 9th century was produced from animal fats and had an unpleasant smell.
Hard toilet soap with a pleasant smell was later imported from the Middle East.
In France, by the second half of the 15th century, the semi-industrialized professional
manufacture of soap was concentrated in a few centers of Provence—Toulon, Hyères,
and Marseille—which supplied the rest of France. In Marseilles, by 1525, production was
concentrated in at least two factories, and soap production at Marseille tended to eclipse the
other Provençal centers. English manufacture tended to concentrate in London.
Finer soaps were later produced in Europe from the 16th century, using vegetable oils (such
as olive oil) as opposed to animal fats. Many of these soaps are still produced, both industrially
and by small-scale artisans. Castile soap is a popular example of the vegetable-only soaps
derived from the oldest "white soap" of Italy.
Industrially manufactured bar soaps became available in the late 18th century, as advertising
campaigns in Europe and America promoted popular awareness of the relationship between
cleanliness and health. In modern times, the use of soap has become commonplace in
industrialized nations due to a better understanding of the role of hygiene in reducing the
population size of pathogenic microorganisms
Until the Industrial Revolution, soapmaking was conducted on a small scale and the product
was rough. In 1780, James Keir established a chemical works at Tipton, for the manufacture
of alkali from the sulfates of potash and soda, to which he afterwards added a soap manufactory.
The method of extraction proceeded on a discovery of Keir's. Andrew Pears started making a
high-quality, transparent soap in 1807 in London. His son-in-law, Thomas J. Barratt, opened a
factory in Isleworth in 1862.
During the Restoration era (February 1665 – August 1714) a soap tax was introduced in
England, which meant that until the mid-1800s, soap was a luxury, used regularly only by the
well-to-do. The soap manufacturing process was closely supervised by revenue officials who
made sure that soap makers' equipment was kept under lock and key when not being
supervised. Moreover, soap could not be produced by small makers because of a law which
stipulated that soap boilers must manufacture a minimum quantity of one imperial ton at each
boiling, which placed the process beyond reach of the average person. The soap trade was
boosted and deregulated when the tax was repealed in 1853.
William Gossage produced low-priced, good-quality soap from the 1850s. Robert Spear
Hudson began manufacturing a soap powder in 1837, initially by grinding the soap with

8
a mortar and pestle. American manufacturer Benjamin T. Babbitt introduced marketing
innovations that included sale of bar soap and distribution of product samples. William Hesketh
Lever and his brother, James, bought a small soap works in Warrington in 1886 and founded
what is still one of the largest soap businesses, formerly called Lever Brothers and now
called Unilever. These soap businesses were among the first to employ large-
scale advertising campaigns.
Liquid soap was not invented until the nineteenth century; in 1865, William Shephard patented
a liquid version of soap. In 1898, B.J. Johnson developed a soap derived from palm and olive
oils; his company, the B.J. Johnson Soap Company, introduced "Palmolive" brand soap that
same year. This new brand of soap became popular rapidly, and to such a degree that B.J.
Johnson Soap Company changed its name to Palmolive.
In the early 1900s, other companies began to develop their own liquid soaps. Such products
as Pine-Sol and Tide appeared on the market, making the process of cleaning things other than
skin, such as clothing, floors, and bathrooms, much easier.
Liquid soap also works better for more traditional or non-machine washing methods, such as
using a washboard.
Difference Between Toilet Soap and Bathing Soap
we are seldom using the words “toilet soap” and “bathing bar” interchangeably. In reality, there
is a large difference between them. Toilet soap contain fattier material on the other hand bathing
bars contain surface active agents with low TFM (total Fatty Matter).
The bathing bars are nothing but entry level soaps while toilet soaps are categorized into 3
grades based on their Total Fatty Matter (TFM) values.
According to BIS, Grade1: soaps should have 76% minimum TFM- This a high grade,
thoroughly saponified, milled soap or homogenized soap or both, white or colored, perfumed
and compressed in the form of firm smooth cakes, and shall possess good cleaning and
lathering properties.
While Grade 2: soaps should have 70% minimum TFM - This is a thoroughly saponified,
plodded soap of firm and smooth texture. It shall be white or colored, perfumed, and shall
possess good cleaning and lathering properties.

9
Grade 3: 60 %minimum TFM- This is a saponified soap of firm and smooth texture. It shall be
white or colored, usually red if cresylic acid is added and shall possess good cleaning and
lathering properties respectively.
Simply put, higher the TFM of soap, better is its cleansing ability .On the other hand, Grade 1
soaps have a higher TFM content which provides a very high cleansing efficiency while being
gentle on skin. It also allows for various fragrances within the soap base to provide a great
bathing experience. Be wise and make a careful choice for yourself with TFM value not less
than 75%.

10
Profiling HUL (Hindustan Unilever Ltd.)
Logo:
Unilever is committed to making sustainable living commonplace and our logo is a visual
expression of that commitment. Each icon has a rich meaning at its core, and represents some
aspect of our effort to make sustainable living commonplace.
Introduction:
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company
with a heritage of over 80 years in India. On any given day, nine out of ten Indian households
use our products to feel good, look good and get more out of life – giving us a unique
opportunity to build a brighter future.
HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water
purifiers, the Company is a part of the everyday life of millions of consumers across India. Its
portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel,
Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The Company has about 18,000 employees and has a sales of INR 34619 crores (financial year
2017-18). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home
Care, Personal Care and Refreshment products with sales in over 190 countries and an annual
sales turnover of €53.7 billion in 2017. Unilever has over 67% shareholding in HUL.
HUL History
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

11
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered 10% of
its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever
now holds 67.25% equity in the company. The rest of the shareholding is distributed among
about three lakh individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had
launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.
Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The
erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and
in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through
an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HUL has vigorously responded to the stimulus of economic growth.
The growth process has been accompanied by judicious diversification, always in line with
Indian opinions and aspirations.
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's
and the Group's growth curve. Removal of the regulatory framework allowed the company to
explore every single product and opportunity segment, without any constraints on production
capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited,
to market Lakme's market-leading cosmetics and other appropriate products of both the
companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50%
stake in the joint venture to the company.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has
also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures
HUL's products like Soaps, Detergents and Personal Products both for the domestic market and
exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods
and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with
significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB
Group and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and
Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater
focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL

12
launching the Wall's range of Frozen Desserts. By the end of the year, the company entered
into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milk food
100% Icecream marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two
companies had significant overlaps in Personal Products, Specialty Chemicals and Exports
businesses, besides a common distribution system since 1993 for Personal Products. The two
also had a common management pool and a technology base. The amalgamation was done to
ensure for the Group, benefits from scale economies both in domestic and export markets and
enable it to fund investments required for aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public sector
undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension
of the company's wheat business. In 2002, HUL acquired the government's remaining stake in
Modern Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti was
started in 2001. It is a rural initiative that targets small villages populated by less than 5000
individuals. It is a unique win-win initiative that catalysis rural affluence even as it benefits
business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages
across 15 states and reaching to over 3 million homes.
In 2002, HUL made its foray into Ayurvedic health & beauty center category with the Ayush
product range and Ayush Therapy Centers. Hindustan Unilever Network, Direct to home
business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier
in 2004.
In 2007, the Company name was formally changed to Hindustan Unilever Limited after
receiving the approval of shareholders during the 74th AGM on 18 May 2007. Brooke Bond
and Surf Excel breached the Rs 1,000 crore sales mark the same year followed by Wheel which
crossed the Rs.2,000 crore sales milestone in 2008.
On 17th October 2008 , HUL completed 75 years of corporate existence in India. In January
2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation,
Mumbai to the new campus in Andheri (E), Mumbai.
On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India
at New Delhi.
In March, 2012 HUL’s state of the art Learning Centre was inaugurated at the Hindustan
Unilever campus at Andheri, Mumbai.
In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the
Hindustan Unilever campus at Andheri, Mumbai

13
HUL completed 80 years of corporate existence in India on October 17th, 2013.
HUL Vision
Our vision is to grow our business, while decoupling our environmental footprint from our
growth and increasing our positive social impact.
Purpose, values & principles
Our Corporate Purpose states that to succeed requires "the highest standards of corporate
behavior towards everyone we work with, the communities we touch, and the environment on
which we have an impact."
Toilet Soap Major Brand of HUL
Dove grew from a moisturizing beauty into global brand with a range of
products: body washes, hand and body lotion , facial cleansers, deodorants , shampoos,
conditioners and hair styling. In 2004, Dove began its campaign for Real Beauty, Followed
by the creation of the Dove Self-Esteem Fund in 2006. It Aims to be “ An agent of change to
educate and inspire girls on a wider definition of beauty and to make them feel more
confident about themselves”. Dove have created a number of online only films , Including
daughters Evolution , Onslaught and Amy .
Lux is a global brand, launched in 1925, whose range of products includes
beauty soaps, shower gels , bath additives, shampoos and conditioners of the stars – from
Elizabeth Taylor, Audrey Hepburn, Marilyn Monroe, Aishwarya Rai, Katrina Kaif and Shu
Qi. The product is available in more than 100 countries .
Breeze is a beauty soap brand from India that was lunched in 1999. The soap comes in three
variants : French Rose, Divine Sandal and Lemon Splash

14
Lifebuoy, an undisputed market leader for 117 years, has a compelling vision “to
make 5 billion people across the world, feel safe and secure by meeting their personal care
hygiene & health needs”. Lifebuoy has journeyed from humble beginnings of being a chunky
red bar of soap to an evolved range of general and specialized products across formats, offering
solutions in the health and hygiene space.
With the goodness of glycerin & natural oils, Pears is trusted for being gentle,
and is recommended by doctors and pediatricians worldwide .It keeps your skin soft and
smiling with innocence. It is so pure that you can actually see through it! Pears Pure & Gentle:
Pears is the gentle way to keep your skin looking innocent and beautiful. It is enriched with
pure glycerin and natural oils that gently moisturize skin to keep it smooth while its mild
fragrance and soft lather ensure that your skin gets the pampering it deserves.

15
Profiling ITC Ltd.
Logo:
Introduction:
ITC is one of India’s foremost private sector companies with a market capitalization of US $
50 billion and Gross Sale Value of US $ 10 billion . ITC has diversified presence in FMCG,
Hotels , Packaging , Paperboards and Specialty Papers and agri-business . ITC’s aspiration to
be an exemplar in sustainability practices is manifest in its status as the only company in the
world, of its size and diversity, to be carbon water and solid waste recycling positive . In
addition , ITC’s businesses and value chains create sustainable livelihoods for more than 6
million people, a majority of whom represent the poorest in rural India .
ITC is one of India's foremost multi-business enterprises with a market capitalization of US $
50 billion and Gross Sales Value^ of US $ 10 billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine
and as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and
Hay Group. ITC also features as one of world's largest sustainable value creator in the
consumer goods industry in a study by the Boston Consulting Group. ITC has been listed
among India's Most Valuable Companies by Business Today magazine. The Company is
among India's '10 Most Valuable (Company) Brands', according to a study conducted by Brand
Finance and published by the Economic Times. ITC also ranks among Asia's 50 best
performing companies compiled by Business Week.
Multiple Drivers of Growth
ITC's aspiration to create enduring value for the nation and its stakeholders is manifest in its
robust portfolio of traditional and greenfield businesses encompassing Fast Moving
Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business, and Information Technology. This diversified presence in the businesses of
tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven
competencies, enterprise strengths and strong synergies between its businesses.
The competitiveness of ITC's diverse businesses rest on the strong foundations of institutional
strengths derived from its deep consumer insights, cutting-edge Research& Development,
differentiated product development capacity, brand-building capability, world-class

16
manufacturing infrastructure, extensive rural linkages, efficient trade marketing and
distribution network and dedicated human resources. ITC's ability to leverage internal
synergies residing across its diverse businesses lends a unique source of competitive advantage
to its products and services.
Within a relatively short span of time, ITC has established vital brands like Aashirvaad,
Sunfeast, Fabelle, Sunbean, Dark Fantasy, Mom's Magic Bingo!, Yippee!, Candyman, mint-o,
Kitchens of India, Farmland, B Natural, ITC MasterChef in the Branded Foods space; Essenza
Di Wills, Fiama, Vivel, Engage, Savlon, Charmis, Shower to Shower and Superia in the
Personal Care products segment; Classmate and Paperkraft in Education & Stationery
products; Wills Lifestyle and John Players in the Lifestyle Apparel business; Mangaldeep in
Agarbattis and Aim in the Safety Matches segment. This growth has been rated by a Nielsen
Report to be the fastest among the consumer goods companies operating in India.
Creating Enduring Value
Today, ITC is India's leading Fast Moving Consumer Goods company, the clear market leader
in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide-reaching Agri Business and a trailblazer in green hoteliering.
ITC Infotech, a wholly-owned subsidiary, is one of India's fast-growing IT companies in the
mid-tier segment. This portfolio of rapidly growing businesses considerably enhances ITC's
capacity to generate growing value for the Indian economy.
ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC
Group's contribution to foreign exchange earnings over the last ten years amounted to nearly
US$ 6.8 billion, of which Agri exports constituted 57%. The Company's 'e-Choupal' initiative
has enabled Indian agriculture significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet. This transformational strategy has already become
the subject matter of a case study at Harvard Business School apart from receiving widespread
global acclaim.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its businesses
towards international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part." ITC group directly employs
more than 32,000 people and the Company's Businesses and value-chains generate around 6
million sustainable livelihoods many of whom live at the margin in rural India.

17
Global Exemplar in Sustainability
Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the world,
of comparable dimensions to be carbon-positive, water-positive, and solid waste recycling
positive. A testimony to its commitment to a low carbon growth path - over 43% of the total
energy requirements of ITC is met from renewable sources. All ITC's premium luxury hotels
are LEED (Leadership in Energy and Environmental Design) Platinum certified making it the
"greenest luxury hotel chain" in the world. ITC's Paperboards and Paper business is an icon of
environmental stewardship.
ITC's production facilities and hotels have won numerous national and international awards for
quality, productivity, safety and environment management systems. ITC was the first company
in India to voluntarily seek a corporate governance rating.
The Company continuously endeavors to enhance its wealth generating capabilities in a
globalizing environment to consistently reward more than 8,57,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.
History and Evolution
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianized, the name of the
Company was changed from Imperial Tobacco Company of India Limited to India
Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of
the Company's multi-business portfolio encompassing a wide range of businesses - Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information
Technology - the full stops in the Company's name were removed effective September 18,
2001. The Company now stands rechristened 'ITC Limited,' where 'ITC' is today no longer
an acronym or an initialised form.
The Company's beginnings were humble. A leased office on Radha Bazar Lane,
Kolkata, was the center of the Company's existence. The Company celebrated its 16th birthday
on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed
J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was
historic in more ways than one. It was to mark the beginning of a long and eventful journey
into India's future. The Company's headquarter building, 'Virginia House', which came up on
that plot of land two years later, would go on to become one of Kolkata's most venerated
landmarks.

18
1925: Packaging and Printing: Backward Integration
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging &
Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes
business. It is today India's most sophisticated packaging house.
1975: Entry into the Hospitality Sector - A 'Welcom' Move
The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-
Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's
entry into the hotels business was rooted in the concept of creating value for the nation. ITC
chose the Hotels business for its potential to earn high levels of foreign exchange, create
tourism infrastructure and generate large scale direct and indirect employment. Since then
ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and
managed properties spread across India under four brands namely, ITC Hotels - Luxury
Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with an upcoming
super premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently
tied up with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC
Hotels' 5-star 'WelcomHotel' brand and the mid-market to upscale 'Fortune' brand.
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In November
2002, this division merged with the Company's Tribeni Tissues Division to form the
Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality
and manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in the
state of Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows
ITC to improve customer service with reduced lead time and a wider product range.
1985: Nepal Subsidiary - First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed

19
to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and
a major supplier of tissue paper to the cigarette industry. The merged entity was named the
Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
1990: Agri Business - Strengthening Farmer Linkages
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business
Division for export of agri-commodities. The Division is today one of India's largest exporters.
ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya
farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. Also,
through the 'Choupal Pradarshan Khet' initiative, the agri services vertical has been focusing
on improving productivity of crops while deepening the relationship with the farming
community.
2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To
augment its offering and to reach a wider student population, the Classmate range of notebooks
was launched in 2003. Classmate over the years has grown to become India's largest
notebook brand and has also increased its portfolio to occupy a greater share of the school
bag. Years 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes,
Pens and Pencils under the 'Classmate' brand. 'Paperkraft ‘offers a diverse portfolio in the
premium executive stationery and office consumables segment.
2000: Lifestyle Retailing - Premium Offerings
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. In 2006, Wills Lifestyle became title partner
of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has
gained recognition from buyers and retailers as the single largest B-2-B platform for the
Fashion Design industry. To mark the occasion, ITC launched a special 'Wills Signature',
taking the event forward to consumers.

20
2000: Information Technology - Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
Infotech India Limited, to more aggressively pursue emerging opportunities in this area.
Today ITC Infotech is one of India's fastest growing global IT and IT-enabled services
companies and has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key focus verticals -
Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life
Sciences and Transportation & Logistics.
2001: Branded Packaged Foods - Delighting Millions of Households
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC
entered the confectionery and staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaad Atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC entered the fast
growing branded snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast
Yippee! to enter the Indian instant noodles market. In September 2014, ITC
launched GumOn Chewing Gum marking the entry into the category of gums. The Company
entered the Fruit-based juices and beverages market with the launch of B Natural Fruit
beverages in January 2015. ITC's forayed into the dairy segment with the launch of Aashirvaad
Svasti Ghee in November 2015. Launched in April 2016, Fabelle chocolates are ITC's premier
offering in the luxury chocolate space. ITC forayed into the branded coffee category in July
2016 with the launch of SunbeanGourmet Coffee. In February 2017, ITC launched ITC
MasterChef super safe spices - the first-of-its-kind spices launched in India, offering export
quality super safe spices to the Indian homemaker. ITC MasterChef Prawns were launched
in June 2017 as the Company entered the Frozen foods segment. ITC's first foray into fresh
fruits and vegetables segment was marked with the launch of Farmland Potatoes in November
2017.
In just over a decade and a half, the Foods business has grown to a significant size under
numerous distinctive brands, with an enviable distribution reach, a rapidly growing market
share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep and Aim.

21
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector. Mangaldeep is a highly established national brand
and is available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood and
'Fragrance of Temple'.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', 'Vivel' 'Superia' brands which have received encouraging consumer
response and have been progressively extended nationally. In May 2013, the business expanded
its product portfolio with the launch of Engage deodorants. ITC marked its foray into the health
space with the acquisition of the brand Savlon and Shower to Shower in 2015. In 2017, the
business acquired the brand Charmis to enhance its skincare portfolio.
2010: Expanding the Tobacco Portfolio
In 2010, ITC launched its hand rolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restaurants
and exclusive clubs.
Toilet Soap Major Brand of ITC LTD
Essenza Di Wills is a Luxurious marque dedicated to the creation of an
exclusive, international range of fine fragrances and personal care products for discerning
individuals .
Fiama offers a range of expert solutions designed to make consumers look and
feel young. With innovation at its core, Fiama offers an enviable portfolio of products
developed through years of scientific research at Laboratory Naturel .
At a time when the desire to look beautiful and confident, while taking care
of her family, was gaining momentum among women, ITC recognised an opportunity. The
opportunity to provide women, just what they wanted. And so began the story of Vivel in 2008.
Through the years, Vivel has continued to reinvent itself, to stay relevant to changing needs of
the self-assured and endearing Indian women. Vivel is committed to creating products that
deliver nourishment for your skin. The essence of the brand has culminated in its current role
in the lives of women today, where they have an equal right to dream, live with respect and be
achievers. Vivel inspires them to 'Never Compromise'.

22
l The Superia range of soaps and shampoos have been launched to cater to the
large popular market in the personal care category. The products under the Superia brand are
made from scientifically developed formulations enriched with natural ingredients that have
traditionally been known to be good for the skin and hair. The range offers consumers access
to some of the best-in-class products in vibrant attractive packaging.
For over 50 years, Savlon has kept Indians protected against germs. Starting
out with Antiseptic Liquid, Savlon has gained repute for effectiveness in germ protection and
its gentle action on skin. Trusted by 90% doctors.

23
Profiling Patanjali Ayurved Limited
LOGO:
Patanjali Ayurved Limited was established in 2006 with a thought of rural and urban
development. The company is not merely an organization but a thought of creating a healthy
society through Yog and Ayurved.
We value our consumers and we believe by providing quality products a quality life for them
can be created. This is our primary apprehension and thus, we try to take every measure to
ensure quality like the Unique ID system to stop fake products.
We recognize farmers as our main assets. They provide herbal and organic products on contract
farming. The company takes various initiatives for farmers to raise their income and provide
surety towards sale of their produce.
Farmers are provided with all sorts of technical-aid and necessary information about efficient
farming. Our manufacturing units process consumables like food items, medicines etc. These
are made available to consumers through a wide network of Authorized Patanjali Stores and
retails shops.
Our efforts in the sectors of social welfare, health, philosophy and spirituality are guided by
our values. We consider ‘guru satta’ and ‘bhagwat satta’ above everything else. We believe in
optimum utilization of our capabilities for the betterment of the society. Our functionality and
concepts make us a distinguished organization.
Our increasing processing units, retail outlets across the nation and the flourishing sale-profit
figures illustrate our glorious journey so far. Our consistency in growth and expansion is due
to the ever-increasing trust.
We are a leading name in the sector. We aim to grow and expand to enhance our concept of
wellness of individuals and the society.
VISION
Keeping Nationalism, Ayurved and Yog as our pillars, we are committed to create a healthier
society and country. To raise the pride and glory of the world, we are geared up to serve people
by bringing the blessings of nature into their lives. With sheer dedication, scientific approach,
astute planning and realism, we are poised to write a new success story for the world.
MISSION
Making India an ideal place for the growth and development of Ayurveda and a prototype for
the rest of the world.

24
Our Export Portfolio
Patanjali Ayurved Limited is a leading manufacturer and marketer of herbal, nature based
products and medicines. Its products are today available in around 10 countries across the world
through authorized channels , helping people move towards a more healthy and natural
lifestyle.
Backed by one of the largest manufacturing facilities in the world and state of art laboratories
comprising modern instruments & equipment to ascertain and maintain strict quality control,
Patanjali overseas business today spans key countries in almost all continents.
Organization is registered with US FDA and is an active member of many government and
semi-government trade promotion organizations.
Toilet Soap Major Brand of Patanjali Ayurved Limited
etc.

25
Profiling Reckitt Benckiser (India) Ltd
LOGO:
RB is more than a company. It’s a growing community of 40,000+ diverse, talented
entrepreneurs – all driven to make the world a happier, healthier place. Drawing on each other’s
skills and working together, we help make people feel better. Through research and
development, we make better products that empower everyone to take their health into their
own hands and homes.
We have made it our responsibility and purpose to help people live healthier lives. But health
today is more than an absence of illness – being healthy also means being fit and happy. This
means we need to consistently strive to be a better business.
Socially, environmentally and financially, we act responsibly in all our markets. Our shared
values tie every one of us together and unite us with a real sense of pride, so we deliver better
products and sustainable results while making a positive social and environmental impact.
We are what we are, and we do what we do, thanks to five core values that drive our purpose
of healthier lives and happier homes.
We are a truly global company with operation in more than 60 countries and products trusted
across every continent.
Honesty and integrity are at the heart of everything we do. They motivate us to do the right
thing, even when it is hard, and they ensure that the safety and wellbeing of our staff and
customers are always our priority. Only by holding ourselves to the highest standards can we
help others fulfil their dreams in a sustainable way. By being a good company, we have become
a great company.
People at RB have the freedom to succeed and the opportunity to make a difference. Every
person who works at RB knows that our company is their company and that the possibilities
for innovation and success are endless. They do not wait to be told what to do. They own their

26
ideas and take the initiative to drive themselves and RB forward. Ownership is what makes RB
a unique business and a better business.
Toilet Soap Major Brand of Reckitt Benckiser (India) Ltd
Our brands are available in nearly 200 countries and they’re trusted by people all over the
world. This is because they make a difference in people’s lives; they make daily routines that
bit easier, that bit better.
Dettol has stayed at the forefront of consumer
hygiene by developing new ways to protect
people against germs. Our passion for
protecting health is what drives our
innovation and ensures that we continue to
grow. Dettol helps families all over the world
fight germs and bacteria. From the products
we make to the education we provide, our
expertise in disinfection, hygiene and first aid
makes a difference.

27
Profiling WIPRO CONSUMER CARE
LOGO:
WIPRO CONSUMER CARE
We live and work in a new world. One where there are no more singular events or isolated
actions. Where everything and everyone is interconnected. It is a disruptive world, but one of
endless opportunities. And, one where Wipro sees the potential for our consumers, employees
and partners at every intersection, every disruption, every touchpoint. We celebrate this world,
and work to advance it every day by forging the connections and collaborations that reveal
possibilities. Breaking boundaries. Synthesizing across siloes. Deconstructing divisions. We’re
building ever-closer connections to reveal ideas bolder than ever before.
We use the incredible power of our integrated perspective to collaborate not only with each
other but also with our consumers and partners across the globe. We work across geographies
to make connections others can’t, and to come up with innovative products that truly improve
our consumers lives. We’re relentless but responsive, smart and sensitive. Unstoppable because
united; we celebrate diversity. We are responsible to the communities we serve, and to the
environment. We practice what we promise, always. It’s how we’re ensuring a future that’s

28
better and bolder – and even more beautiful – than what has been imagined before. It’s a world
that we invite you to inhabit, because it’s where we wish to be, ourselves, at Wipro.
All of this is symbolized by our new visual identity. The Wipro logo is a bold and dynamic
signature that proudly headlines the vision we pursue for our company and all those we serve.
Embodying the essence of our brand, it evokes much of what we believe and stand for. Its
styling captures the sense of fluidity, resourcefulness, optimism and creativity with which we
approach all we do. The simplicity and elegance of the mark signal a keen intellect, one that is
completely in synch with the world around itself – vibrant, aware and forward looking.
Building on the universal form of the circle, the radiating rings of dots around our Wipro name
suggest all the many connections that our brand creates for our customers. Together, they
convey a sense of outward motion, propelling us into the future that we define together. The
colours of our brandmark also speak to our character – highlighting our reliability and
authority. The multi-coloured dots convey a dynamic energy and optimism. With the simple
strength of the Wipro.
Founded in 1945 as a Vegetable Oil Company, Wipro Consumer Care & Lighting is one of the
fastest growing FMCG companies in India. Sales revenue grew from INR 3.04 Bn to INR 66
Bn + (USD 1Bn) in 2017-18 growing 22 times in last 15 years. Sales Revenue for FY 17-18
stood at USD 1 Billion. International business contributes 51% of the revenue.
Wipro Consumer Care & Lighting has presence in 19 countries predominantly in the Indian
Sub-Continent, ASEAN & MENA regions. It has 15 manufacturing units in China, India,
Indonesia, Malaysia and Vietnam and has state of the art Research & Development and
Innovation Centers in India and Malaysia. The company has a talent base of over 10,000+
people from 15 different nationalities. Women employees constitute nearly 60% of the total
work force.
India Business
Wipro consumer care has a diverse portfolio of products and operate both in B2C and B2B
space. Leading brands in India in personal and home care category are Santoor, Chandrika,
Glucovita, Wipro Safewash and Wipro Garnet. In the B2B space we are a leading player in
Institutional lighting, office furniture and modular switches. Wipro lighting and furniture
product have won numerous international awards for design.
International business
Wipro Consumer Care established its international footprint in 2007 with acquisition of Unza
Holdings followed by LD Waxsons (2012) and Zhongshan Ma Er (2016). With a series of
successful acquisitions, Wipro consumer care has a formidable presence in the SE ASIA, China
& ME. In these regions, we operate in the skin-care and home-care space. The leading brands
in the region are Enchanteur, Romano, Safi, Bio Essence, Phanli and Zici.
Yardley business
Wipro Consumer Care acquired the iconic brand in 2009 which gave us significant foot hold
in the Indian and ME markets. In 2012 Yardley UK was acquired which also gave us

29
distribution rights in the European markets. Yardley is believed to be the oldest living brand
and is available in 40+ countries.
Contact Details
Wipro Consumer Care & Lighting,
Wipro Enterprises Limited
Block C, Doddakanelli, Sarjapur Road, Bangalore – 560 035
India
Toilet Soap Major Brand of Wipro Consumer Care & Lighting

30
Porter’s 5 Forces Model
Threats of New Entrants: -
 Absolute cost advantages
 Proprietary learning curve
 Access to inputs
 Government policy
 Economies of scale
 Capital requirements
 Brand identity
 Switching costs
 Access to distribution
 Expected retaliation
 Proprietary products
Existing Rivalry
 Exit barriers
 Industry concentration ratio
 Fixed costs/Value added
Existing
Rivalry
Threatsof
New
Entrents
Bargaining
powerof
Buyers
Threatsof
Subsitutes
Bargaining
Powerof
Supplier

31
 Industry growth
 Intermittent overcapacity
 Product differences
 Switching costs
 Brand identity
 Diversity of rivals
 Corporate stakes
Threats of substitutes
 Switching costs
 Buyer inclination to substitute
 Relative price performance of substitutes
Bargaining power of suppliers
 Supplier concentration
 Importance of volume to supplier
 Differentiation of inputs
 Impact of inputs on cost or differentiation
 Switching costs of firms in the industry
 Presence of substitute inputs
 Threat of forward integration
 Cost relative to total purchases in industry
Bargaining power of buyers
 Bargaining leverage
 Buyer volume
 Buyer information
 Brand identity
 Price sensitivity
 Threat of backward integration
 Product differentiation

32
 Buyer concentration vs. industry
 Substitutes available
 Buyers' incentives
Threats of New Entrants: -
The major raw material required for toilet soap is palm oil which is required to be imported
from countries like Malaysia. Palm oil is an expensive ingredient and this gives a low cost
advantage to the soap industry of countries like Malaysia, China etc. The exporters of these
countries could supply good quality soaps at rates less than the Indian competitors.
There are companies like Marico, Kopran, and Anchor to launch soaps in the premium
category. Oriflamme has entered the market recently with premium soap for the niche segment
Milk & Honey (40 Rs 100 Gms) and Kopran has titled its new offering Shine & Smile.
The new entrants generally cater to small markets for e.g. there are a large number of soap
manufacturers catering the local markets of southern states. Most of these players are a part of
the large unorganized sector, which directly purchases fatty acids of palm oil from the Indian
manufacturers.
HLL takes complete advantage of the economies of scale by procuring huge quantities of raw
material and flushes the market with vast varieties of soaps with minor variations.
Brands like Liril, Lux, Dettol created by existing players proves a hurdle for the new entrants
like Doy Care (VVF Ltd.) but there are a large number of players operating at the local level.
The switching cost for the consumers is not very high in the soap category. Premium Category,
although compared to other does enjoy a better Brand Loyalty. Even in case of specialty soaps
like J&J, Santoor, where Brand Loyalty is generally high.
The capital required for manufacturing process is very high in this sector especially if one needs
to manufacture standardized quality soap. Most manufacturers in the organized sector like
import the machinery from Italy.
Distribution is the key factor in this sector. Companies having a good distribution network are
able to cater to a wider market across the country. Sales are volume driven and not value driven.

33
The specialty about this sector is that it has a high level of learning curve that improves with
experience and therefore soap manufacturing is quite often called an art rather than a science.
The duties applicable to this sector are very high and thus prove to be major barrier for the new
entrant.
Existing Rivalry
As India has a low per capita consumption of soaps the growth in this sector has been stagnant.
Penetration though on an average is 95%, consumption in our country, as compared to other
developed countries is a bare minimal (In the rural market, even though penetration is high the
frequency of taking a bath with soap is one out of 5 occasions). Capacity utilization in the
industry varies from as low as 50% to 80%. The market is littered over with several, leading
national and global brands and a large number of small brands, which have limited markets.
There exist high exit barriers in the industry due to high capital investment.
Threats of Substitutes
Generally, one can point at two general broad substitute threats in the Premium soap category.
One threat is from the use of products like body wash and face wash. Though the use of these
products forms a very small part of consumption this is basically due to the high costs
associated with such products. One can see in some developed countries which have already
registered a cent percent penetration, the consumption of soap has now decreased due to the
customers upgrading to Body wash and Face wash.
The second threat is from downtrading i.e. the consumers from the premium category opting
for the popular category soap. Any small change in the price of the Premium soap can cause in
the shift of the price conscious consumer to opt for shifting to a soap in the Popular category.
Most companies like HLL, Nirma cater to both the categories.
Bargaining power of Suppliers
The major input for the soap manufacture is vegetable oil (around 80% of the raw materials).
Earlier Animal Fat was used which was even cheaper, but after the Indian government banning
animal fat, one had to shift to vegetable oils. They are not available in India and thus have to

34
be imported from countries like Malaysia, Indonesia and China. There are only few players
who export palm oil from these countries and as such these exporters have a commanding
position.
There are various grades of palm oil available and the manufacturer can switch between these
grades to save on the cost of inputs. Besides, soap can be manufactured either from fatty acids
or directly from the oil.
The soap manufacturers cater to the current and future needs of consumers through the
development of new formulations and relate these to their suppliers. A prime example of this
is the current trend towards producing higher quality soaps and the customization of the
products for e.g. Soap for different skin types. Such moves result in new formulations that force
suppliers to modify quality of inputs.
Companies like Godrej and VVF who previously used to supply soaps to other bigger
companies have gone for forward integration and started selling their own brands.
Small players cannot afford to import Oils as the price of Oil keeps on fluctuating and these
fluctuations, if on the higher side cannot be incorporated in the price of the product in this age
of cut-throat competition. So they directly purchase fatty acids of oils from large-scale Indian
manufacturers who import Oil and convert them to fatty acids.
Bargaining power of Buyer
To a large extent, Premium Soap is a price sensitive market. Off late there has been an
increasing trend towards downtrading. And this has forced the manufacturers to lower the
prices or offer temporary discounts to woo the consumers who are either downtrading from the
popular segment or graduating upwards from carbolic soaps.
This sector faces low level of brand loyalty. Switching costs is very low and these results in
price war and people are concentrating on value-for-money. This forces a lot of players to go
for frequent promotional schemes like 3-on-1, 2-on-1.
Earlier the decision for purchasing the soaps was equally balanced between man and woman
(50:50).

35
Now the decision ratio is 60:40 in the favor of woman purchaser. This proves the fact that today
most soaps are targeted at the Indian woman.
The buyers, even in the rural area are subjected to the media invasion and are well informed
about the basket of products available in the market and thus take a rational decision.

36
PEST Analysis
Political Factors: --
Earlier the soap industry was under the Licence-raj restrictions. But, after liberalization of
economy by the Narshima Rao government there has been a spurt in the number of players in
the organized as well as the unorganized sector. A player like Henkel SPIC is good example of
this. The political system in India is undergoing vast change. There has been competition
between various states like Maharashtra, Gujarat, Andhra Pradesh and Madhya Pradesh. The
sops given to new entrants like sales tax concessions and other incentives help encourage
players to open their shops in these states.
Government banned the import of tallow, a soap making raw material (which was requiring a
very little processing to make soap). It then followed an incidence of adulteration of vanaspati
by unscrupulous manufacture.
Economic Factors
Soaps in India cost very high in India as compared to other countries like Indonesia. E.g. 100
gms of soap in Indonesia costs rs.4.25 whereas in India it costs rs.10 approximately. This is
primarily attributed to the high cost of imports due to high import duties. Since India is now a
WTO member India will have to bring down the import duty rates to as much as 20% from
35%. Also the excise rate at 16% forms formidable portion of the cost. The Indian players are
lobbying with the government agencies to reduce this duty which can bring down the cost of
the final product. For toilet soap, the average expenditure per user household for low-income
households is Rs. 237, while it is Rs. 706 for high-income groups.
Social factors:
The social factor is very important when it comes to Premium soaps segment of the soap
market. With the rising education and disposable income levels, the need for hygiene and
personal / skin care becomes important. Premium soaps are thus targeted at the audience to
change their habits by raising their aspiration levels.
Lack of good hygiene factor like availability of clear water for bathing purpose also
discourages extensive use of premium soaps by vast population. Fragmented approach of govt.

37
and NGO’s towards inefficient PHC-primary health center also aggravates the problem.
Investment in basic sanitation will make biggest improvement to health and also to the soap
market.
The growing reach of advertising medias like satellite and cable TV too is expected to give a
boost to the market penetration initiatives of the industry players.
Technological Factors:
The industry though capital intensive is not very technology intensive. Premium soap
manufacturing though compared with other soaps manufacturing relies to an extent on
technology (especially in the finishing stage). The more important is logistics management
where marketing and distribution play a pivotal role. Here technology like (SCM) Supply
Chain Management and (E-CRM) Electronic Customer Relationship Management will play a
pivotal role. Companies like HLL are working very hard towards such a system to rope up the
entire small stores and retailers (Kirana Stores).
The results of a survey done by National Council of Applied Research (NCAER) suggest that
Indian FMCG space is all set to enter a new growth phase, sample this: the study says that the
lower income group is expected to shrink from over 60 percent (1996) to 20 per cent by 2007
and the higher income group is expected to rise by more than 100 per cent. It looks; the industry
is all set for a fast-paced race ahead.

38
Summary & Conclusion
It seems Indians have sacrificed hygiene at the altar of thrift. If numbers are anything to go by,
Indians do seem to be washing themselves, as well as their clothes, rather less. Data collected
by the industry certainly points to this rather unpleasant conclusion. The consumption of soaps
has shrunk substantially.
The evidence of an absolute decline in consumption is somewhat perplexing in a country with
a growing population as the consumption of soap and detergents should logically be directly
proportional to population growth. Soaps are at the back of the house and are not status products
like TVs or refrigerators. It’s possible that consumers may be economizing on their use or
buying cheaper brands during a downturn.
There is another whacky hypothesis explaining the decline in consumption. Many households
earlier used soaps for twin purposes: for body wash as well as shampoo substitutes. However,
successful sachet marketing in shampoo seems to have now penetrated this market which has
directly impacted the sales of soaps.
Penetration of toilet soaps is very high However per capita consumption levels remain low
India's per capita consumption of soap at 460 gms per annum is lower than that of Brazil at
1,100 gms per annum.
Competition amongst the MNCs has intensified, leading to shrinkage of margins.
Low margins and high volumes characterize the industry. While the level of disposable
incomes determines the overall sector growth, the market has already been segmented and sub-
segmented.
Positioning of the product is very important in this market. The leading players in this market
are HUL (Lux, Lifebuoy, Breeze, Rexona), ITC LTD (Fiama, Superia, Vivel, Savlon), Patanjali
Ayurved ( Kanti ) and Reckitt & Benckiser (Dettol). The rest of the market is highly
fragmented, with companies having strong presence in select segments or a regional presence
only. Brand loyalty is very low, except at the premium end.
Key factors to success are distribution (in rural markets) and advertising (in urban markets).

39
A lower price differential between the organized and the unorganized sectors from reducing
excise duties allows the former to grow at the expense of the latter. The organized sector also
has a superior distribution reach.
Innovation holds the key. New innovative products will grow the category. Through
experience, we know that an innovative product will make a success
In terms of distribution, visibility will be of vital importance with the retail shelves getting
overcrowded with more and more brands and new products.
Soaps are available in 5 m retail outlets in India, 3.75 m of which are in the rural areas.
Therefore availability of these products is not a problem. 75% of India's population is in the
rural areas; hence about 50% of the soaps are sold in the rural markets.
Merchandising will also be of core importance, which will involve getting the POPs right to
attract consumer attention.
Intense Distribution welfare will prompt companies to give more freebies and better margins
to retailers. Price offs and consumer offers will be predominant, this will put tremendous
pressure on companies to make their products more visible on the retail shelves. Better
sophistication will come about in terms of merchandising so as to increase visibility.
Product would reign supreme, even as consumers would want to have a value-for-money
product in FMCG. Thus pricing would also be important
Rural demand growth is expected to occur mainly with consumers moving up towards premium
products. But in the past, the proportion of premium soaps to economy soaps has not changed
much, in volume terms. This is because as some consumers move up the value chain with
increase in disposable incomes, some consumers move down looking for cheaper substitutes
as prices move up. This has been the case especially, as growth in soap prices has generally
outpaced overall consumer inflation.
Deeper penetration in urban areas also holds the key to unlocking growth potentials especially
in the Premium Segment.
Thus, Product innovation, smart merchandising and distribution would be of key importance
for FMCG products to become a success in the coming years. While marketers will need to

40
explore new areas of growth potential, FMCG marketers also warn against being laid back to
the fact that retail shelves are overcrowding by the day.
Even as toilet soaps market faces a slowdown in growth, there is still potential to stoke growth
through increasing product usage.
The only reason is not that markets have matured, but that usage and consumption of a
particular product per person is still low. The manner in which marketers tap this growth
potential in the years to come - be it through advertising or creating awareness through below-
the-line activities - will be worth watching.

41
Bibliography
Websites:
https://wiproconsumercare.com/about-us/brand-wipro/
https://www.patanjaliayurved.net/blog/personal-care/2
https://www.rb.com/brands/dettol/
https://www.hul.co.in/
https://www.itcportal.com/brands-microsite/savlon.aspx

A study on toilet soap industry in India

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to A study on toilet soap industry in India

Similar to A study on toilet soap industry in India (20)

More from Sagar Das

More from Sagar Das (9)

Recently uploaded

Recently uploaded (11)

A study on toilet soap industry in India