Jyothy Labs focuses on power brands strategy

Written by Lalitha Srinivasan | Mumbai | Updated: Feb 7 2014, 18:40pm hrs
Jyothy Laboratories is sharpening focus on its power brands strategy to drive volumes in the 2014-15 financial year. The company is allocating R200 crore to build power brands Ujala, Maxo, Exo, pril, Margo, Fa and Henko in the next few months. As 90% of our revenues come from these brands, we are stepping up investments in them. Our ad spend for these brands will be R200 crore in FY15. Our increased focus on power brands has helped us to accelerate JLL's performance in competitive markets,'' said JLL joint MD Ullas Kamath.

The company is planning to curtail ad spend on its non-focus brands such as Chek, Mr White and Neem for the time being. At present, these three brands contribute R200 crore to JLL's revenues. When they become R100-crore standalone brands, we will revive our investments for them, said Kamath. The firm has no plan to put these brands on the block.

As part of its growth strategy, JLL is aggressively looking for acquisitions in the branded personal care and home care sectors in India.''We are looking for strong regional brands to add value to our existing portfolio. Our acquisition focus is on southern and eastern states, he added. The company is in advanced talks with two regional players in the south.

As part of its cost-cutting measures, JLL is in the process of revamping its supply chain for all products with the help of IBM.''Our new supply chain system will take care of everything from order requirement to procuring raw materials, explained Kamath. To fight multinational competition, JLL is relaunching its detergent brand Henko with value additions in Q1FY15. The company is also planning to extend soap brand Margo in the skin care category in April.

The R1,85,000-crore Indian FMCG industry is expected to witness a major tussle between multinationals and home grown companies in the home care and personal care categories in the next few months.

As innovation is the name of the game in the Indian FMCG industry, the company is betting big on research & development projects to drive volumes. JLL recently set up a R&D lab in Mumbai.