Reckitt Benckiser is synonymous with Dettol, but according to Chander Mohan Sethi, regional director, south Asia and chairman & managing director, Reckitt Benckiser India, the company enjoys No. 1 position in every category it has presence. Reckitt’s other brands include toilet cleaner Harpic, Mortein, Lizol floor cleaner, Cherry Blossom shoe polish. Dettol, which started its journey in India in 1933, Sethi says, is the gold standard in germ protection. Madhumita Mookerji of DNAcaught up with Sethi to get a lowdown on the industry and the company’s plans during his short visit to Kolkata. Excerpts from the interview:
Analysts say the fast moving consumer goods sector is expected to grow 20-30% in the near future. How does your company plan to capitalise on this?
I don’t think this is a realistic picture. In my opinion, the FMCG sector is growing at 10-12% currently and is likely to sustain this level of growth. Our strategy will be to follow our global thrust of focusing on household cleaning, health and personal care.
Dettol is moving towards becoming a Rs 1,000 crore brand. Do you have any plans to tweak its marketing strategy or positioning?
Dettol clearly has a well-defined strategy - it is a leading germ protection brand. So, there will be no change in its marketing or positioning strategy. But yes, we are now focused on making it more relevant to the consumer. Working towards this end, we have launched four variants. In soap, the original Dettol soap has been segmented into skin care, cool and fresh. Internationally, we have sprays under the Dettol brand.
Since Dettol is positioned as a germ fighter, why doesn’t Reckitt Benckiser have any product extension that could substitute water-wipes or sprays for surfaces etc?
Internationally, we do have wipes and sprays for surface cleaners in conditions with limited water usage. They are available in the UK, US, Malaysia etc. Sooner or later they will be made available in India. But these are alcohol-based products and it is our endeavour to meet the regulatory requirements for such products. Regulatory clearances are required from the health ministry for their distribution and stocking. We are currently talking to the ministry on this.
Are Dettol sales going up because of the swine flu outbreak?
No, I don’t think so. It is because more consumers are looking for hygiene. Independent research firm Nielsen says that Dettol is gaining in share in the soap market — it is at number 3. And in liquid handwash, it is the market leader with 60% share. The liquid handwash market is growing at 35%.
Do you have plans to introduce new products in India from your global portfolio?
Yes, three over-the-counter products could enter India, say, in the next couple of years. These are Neurefen, Europe’s number one pain killer, Gaviscon, which is for stomach burn, and Mucinex, a cough expectorant - it is number one in its category in the US and is coming out of an acquisition made in the US in February 2008 in a
£1.1 million deal.
You had plans to set up a new unit in India. What is the update on that?
Yes, we are setting up a new multi-product facility at Sitargarh in Uttaranchal at an investment of Rs 80-100 crore. It will be large set-up and will be commissioned early next year. Our current six units are located at Himachal Pradesh, Jammu, Uttaranchal, Hosur and Mysore.
Clearasil, Strepsil and Sweetex were acquired from Boots in 2006? Any other acquisition on the anvil?
Any organisation would look for the right fit. As a company we continue to evaluate brands. If any acquisition is made, it will be in the household cleaning, health and personal care space.
What kind of growth are you expecting in your turnover?
We do not share these figures but globally we are £7 billion in size and the fastest growing FMCG company.
According to the industry estimates, your turnover is in the region of Rs 1,200 crore?
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