While the group, which has been present in packaged snacks and ayurveda segments, is entering the new segment through the organic route, it is also open to accelerating growth inorganically.
RP-Sanjiv Goenka Group’s FMCG vertical, Guiltfree Industries, on Thursday announced its foray into the country’s Rs 70,000-crore personal care space by launching haircare and skincare products under a new brand.
Guiltfree Industries (GIL) is eyeing Rs 400-500 crore revenues from the personal care segment in the next four-five years. While the group, which has been present in packaged snacks and ayurveda segments, is entering the new segment through the organic route, it is also open to accelerating growth inorganically.
Announcing the launch of the new personal care brand Naturali, Shashwat Goenka, sector head, retail & FMCG, said, “The haircare and skincare category is about Rs 34,000 crore market. This category is growing at about 10% annually. The idea for us is to gain a share of this large market.”
Goenka said the group realises that it is not going to be an easy battle for it in the personal care segment, where a lot of national and major brands are present. “It is going to be a difficult journey. But we are very excited and we genuinely believe that we will be able to hit a Rs 400-500 crore of a number over the next four to five years,” he said.
Notably, RP-Sanjiv Goenka Group had forayed into the FMCG business in 2017-18 through Guiltfree Industries (GIL), a wholly-owned subsidiary of RPSG Ventures (Formerly known as CESC Ventures). In April 2017, GIL launched packaged snacks under the brand “TOO YUMM!”.
It also has a 70% stake in Rajkot-based Apricot Foods (AFPL), which markets snacks under the brand name ‘Evita’. RPSG Ventures is present in the Ayurveda industry through its subsidiary Herbolab India. Its products are marketed under the brand Dr. Vaidya’s.
GIL is now launching shampoos, conditioners, face washes and face creams. The company will soon enter other segments within haircare and skincare. It is planning to launch body lotions in the winter. “The launch did not really postpone due to Covid, this was our timeline for launch as well. We had started planning about the launch about 14 months ago with a clear plan to launch by festive (season) this year,” Goenka said, adding the target audience, essentially, was young millennials. The products under Naturali will be produced by its contract manufacturers.
To start with, GIL is launching the products in e-commerce marketplaces like Amazon, Flipkart and Nykaa, and in the modern trade channels like Spencer’s Retail and Health & Glow. It will also launch the products in general trade in National Capital Region (NCR) and Karnataka. The company will be going for the full national launch later this year.