Marico took over the reigns of the brand with effect from June 30, 1999.Sales commenced towards the end of July 1999, and the outcome is a strongdouble-digit growth in volumes. According to the company, however, ``thisgrowth is partly on account of an initial spurt resulting from pipelinefilling.''

The initial strong growth under Marico has rung in a positive note withindustry analysts of the view that the brand will continue to witness anupward swing in volumes.

The brand has an annual turnover of Rs 8 crore, and Marico paid aconsideration of Rs 10 crore to buy the brand from P&G. Industry analystsare not surprised by the spurt in volumes of the brand which, they say, isgetting the right attention considering that the anti-lice treatmentbusiness did not fit P&G's long-term strategic plans. P&G held the opinionthat brands such as Old Spice, Clearasil and Mediker do not have high marketpotential. This was also visible in the sales figures of these brands.

During 1997-98, sales of Clearasil and Old Spice had dwindled by 13 per cent.Analysts thus expect the brand to grow under Marico which has also enteredinto a distribution agreement with P&G on the latter's brands such as Camay,Old Spice and Clearasil.

For Marico, it is a win-win situation as the additional throughput from thedistribution agreement is helping the company towards a wider and morecost-efficient distribution network, especially in the one-lakh pluspopulation towns. For the brands, it was a question of better visibilityunder Marico, and consequently, better sales.

Moreover, Mediker is a window for Marico's brands into chemist retailoutlets where their presence was earlier weak. It also enables the companyto exploit the problem-solution equity of Mediker by launching similarproducts in the future.

Mediker, being the only well-established brand in the Indian anti-licetreatment shampoo market, commands a share of nearly 100 per cent. Inaddition to marketing the brand in India, Marico plans to establish thebrand in countries like Bangladesh, Sri Lanka, Saudi Arabia, Yemen, Iran andIsrael, among others.