- India has a population of over 1 billion people, with soap household penetration at 98%. Soap is the second largest consumer goods category in India. - The soap market in India is growing at 7% annually and is estimated at 126,000 tonnes total, with major companies holding around 90% market share. - The top 3 companies in India's soap market are Hindustan Unilever Limited, Godrej, and Nirma, which collectively hold around 88% market share. HUL is the dominant player with brands like Lux and Lifebuoy.

1. SOAPS
By: Shriya Mithbavkar

2. • India is a country with a population of 1,030
million people.
• With the household penetration of soaps is 98%.
• People belonging to different income levels use
different brands, which fall under different
segments, but all income levels use soaps, making
it the second largest category in India.
• Rural consumers in India constitute 70% of the
population
Industry Overview

3. • Soaps are categorized into men's soaps, ladies' soaps
and common soaps. There are few specialty soaps like
the Glycerine soaps, sandal soaps, specially flavoured
soaps, medicated soaps and baby soaps.
• The market is growing at 7% a year. With increasing
awareness of hygienic standards, the market for the
Soaps could grow at a rate higher than 8% annually.
• Total annual soap sales by companies marketing their
brands at national or state levels is estimated at 14,000
tonnes of a total soap market considered to be about
126,000 tonnes.

4. • During the British rule the Lever Brothers,
England introduced modern soaps by importing
and marketing them in the country.
• The first company created was North West Soap
Company, the soap manufacturing plant in India
situated in the city of Meerut.
• In 1918, Mr. Jamshedji Tata set up India's first
indigenous soap manufacturing unit when he
purchased the Coconut Oil Mills at Cochin
Kerala.
Historical Perspective, how the Industry
evolved/developed from over the years

5. • Soap became a necessity for the moneyed
class by around 1937.
• Today with increase in disposable incomes
all around the world along with India, growth
in rural demand is expected to increase
because consumers are moving up towards
premium products.
• Recently, there has not been much change in
the volume of premium soaps this was due to
the increase in prices which has led some
consumers to look for cheaper substitutes.

6. Govt. Regulations
• Health & safety
• The environment
• Importing & exporting
• Employment regulations
• Shaping Government policy

7. • The Indian Soap Industry includes about 700 companies
with combined annual revenue of about $17 billion.
• Major companies in this industry include divisions of P&G,
Unilever, and Dial.
• The Indian Soap Industry is highly concentrated with the
top 50 companies holding almost 90% of the market.
• The market size of global soap and detergent market size
was estimated to be around 31M tonne in 2004, which is
estimated to grow to 33M tonne in the coming years.
Size of Industry (organized & unorganized)
(National & Global size)

8. • Indian Soap Industry volume is Rs 4,800-crore.
• In case of soaps this has not been a major issue
as the penetration in the rural area is as high as
97% and that for urban area is 99%. Thus
approximately the penetration is around 99% for
overall India.

9. In Indian Soap Industry the entry of new players &
the 6,500-crore toilet soaps industry is expected to
bring about a new twist in the "Indian soap opera".
•ITC Ltd has started investing in aggressive brand-
building and product development projects to
promote its brands, Fiama De Wills, Vivel and
Superia.
Current happenings

10. •Godrej Consumer Products Ltd and Wipro
Consumer Care Lighting are established
players in the Industry which are beefing up
their research projects and advertising plans
to take on new rivals.

11. Growth Rate – Current and Past 5 years,
projected Next 5 Years
• India today is one of the largest producers of
soaps in the world. Today, the per capita
consumption of toilet/ bathing soap in India is
800 gms,
• The soap industry can be divided into organised
and unorganised sector. The size of the
organised sector is about Rs.66 billion. The
industry has been growing at 4% for the last 5
years

12. Strengths Strong
management
Pricing power
Customer
loyalty
SWOT Analysis

13. weaknesses
Weak supply
chain
Weak brand

14. opportunities
Fragmented
market
innovations
New products

15. Threats
Govt.
regulation
Intense
competition
Political risk

16. Existing opportunities available and
organization which has benefitted from it
Dove
Parent
Company HUL (Unilever)
Category Personal Health Care – Soap
Sector FMCG
Opportunity
1. Can target male audience
2. Continuous innovation
3. Unified advertising technique
used by Dove.

17. Some of the organizations which
have gone out of business
• Insire- The Handmade soap
company.
• Lush company.
• Hewitt soap company.
• The little flower soap company.

18. Key Companies / Players of the Industry
and their market situations
• The Indian soap market is ruled by three major
giants; Hindustan Unilever Limited, Godrej and
Nirma.
• These three companies alone account for 88% of
the total market share in India.
• H.U.L. with its brands like Lux and Lifebuoy has
dominated the Indian lather industry since the last
few decades.

19. Nirma another top soap brand in India is one of
the major competitors of HUL and holds a 15%
market share in the Indian soap market

20. Thank you