Sunday, February 1, 2009

CavinKare forays into distribution business

Chennai-based FMCG major CavinKare has forayed into distribution business. It has tied-up with Paris-based international fragrancemarketer Coty to market and distribute Adidas and Jovan range of personal care products in India. 

The Adidas men's range, which includes deodorants, shower gels, perfumes and after shave lotions, will be available across India by mid-February. The Jovan range of products would be available after three to four months. 

"The alliance will help in increasing the accessibility of adidas products in India, which is a fundamental pat of our Asian strategy. There is a huge potential in the personal care segment here," said Coty Beauty Far East Export regional managing director Venkatesh Babu at a press meet in Chennai on Thursday. 

The range would be sold through about 50,000 outlets in the first year, mainly at modern and large-format stores. CavinKare hopes to achieve a turnover of Rs 50 crore in the first year, thus cornering a 10% share of the deo-spray and fragrance market in India. The size of the Indian deo-spray category is estimated to be Rs 300 crore and s growing at a rate of 18% annually. 

"CavinKare mainly addressed the mass market. This strategic alliance will help us get into the premium segment where we do not have a presence," CavinKare chairman and managing director CK Ranganathan said. 

CavinKare will use a mix of above and below the line approach to market the products, mainly the out of home media, TV commercials and the internet. The ad spend on this range will stand at Rs 10 crore for first year to be shared by CavinKare and Coty. 

CavinKare hopes to close this fiscal with a turnover of Rs 700 crore, a 25% increase over the previous year.

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