"India is central to RB’s growth strategy"

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: With operations in 60 countries and sales in 180, Reckitt Benckiser is one of the top global consumer goods companies dealing in household, health and personal care products. Its India subsidiary has an array of brands across segments—Dettol, Harpic, Mortein, Lizol, Cherry Blossom, Vanish, Easy Off Bang, and Veet, to name a few. In this interview to FE’s Malabika Sarkar, Chander Mohan Sethi, regional director, South Asia, and chairman and managing director, Reckitt Benckiser India, talks about the company’s strategy to enhance the performance of its power brands globally as well as in India.

What’s the outlook for the fast moving consumer goods (FMCG) sector in India this year in view of the global market meltdown?

When the going gets tough, the tough get going. It may sound clichéd but it’s true. To say that the last year (2008) was tough would be an understatement. Input costs have gone up significantly, the competitive landscape has become ever more challenging and growth in markets across the world has been slow. Our global targets reflect the reality of the conditions, and also our determination to win in the market.

Following the global trend, the booming Indian economy has also shown signs of slowing down. It has experienced a trend reversal in GDP (gross domestic product) growth. Although the recovery process is expected to be slow, the situation will stabilise sooner than later. Having said that FMCG is one sector where the impact has been minimal.

Reckitt Benckiser India has been growing in line with our internal benchmarks. Our aim is to perform quite well against the market and our competitors, but we do not give our forecasts. We clocked a growth of 17% in 2008 in a market reeling under recession, and that was ahead of our competitive set. Reckitt Benckiser has also shown healthy market share during this period. For example, the share of Dettol in the bar soaps market stood at an all-time high, while Mortein continued to be the single largest brand in the pest control market. Veet attained market leadership and is currently at 29.9% share (April 2009 market share in value).

Rising commodity prices over the past few years have forced many companies to revise prices upwards. What steps have you taken to avoid a squeeze on your margins and rationalise the cost structure?