Henkel KGaA executive vice-president cosmetics-toiletries and board member Prof Uwe Specht briefing press persons here on Thursday disclosed that Henkel Spic plans to introduce Fa range of cosmetics and at least 10 other brands in the country, possibly at the rate of one brand every year.

Stating that Henkel of Germany placed a lot of importance on India as the emerging market, Specht said in time the company will also introduce oralcare and skincare products as the potential of these markets was not yet fully tapped.

He said Henkel would have had a stronger presence in India earlier but it took three years before Henkel Spic could complete acquisitions of Shaw Wallace companies The Calcutta Chemicals Co Ltd and Detergents India Ltd and their consumer products division business. The acquisitions have helped the company gain a well-placed distribution network and now the focus can be on pushing a new range of cosmetics and bodycare products.

According to him, India is a growing and booming market and Henkel is targeting for the distant second position in the market within the next couple of years, as the bodycare product range itself commanded a global turnover of $400 million. This will be launched in the country early next year.

Henkel Spic chairman AC Muthiah said Spic group company Tamilnadu Petroproducts Ltd (TPL) which is a partner in Henkel Spic will continue to hold its stake of 18 per cent as it perceives a bright future in association with Henkel. He said brands like Margo acquired from CCL is doing well and will be the focus for gaining further market share in the country in the cosmetics business.

Henkel Spic managing director A Satishkumar said the company hoped to directly service three lakh retail outlets with 2,000 distributors and 32 CFAs (container freight agents) for pushing Margo brand of soaps which is available in one million outlets in the country.

Satishkumar said Henkel brand of detergents and cleaners were doing well and the company was confident of furthering sales in the next year.

He said the company will raise Rs 166 crore from the rights issue which will be mainly meant for paying off the two acquisitions and for marketing and brand-building of the cosmetics and bodycare products range.

The rights issue due to open on November 20 and end by December this year is expected to help increase Henkel's stake in the company from the present 47 per cent to 51 per cent. The majority stake of Henkel is to enable them to consolidate their position and strengthen the company further.

The company posted sales of Rs 132 crore in nine months ended September 1999 against Rs 142 crore for 18 months ended September 1998. Satishkumar said the company expects to close this year's 15 months with sales of Rs 250 crore. From next year the financial year will be January-December. For year 2000 the company is aiming for a turnover of Rs 300 crore and by which time it hopes to wipe out losses, he said.