CavinKare hopes to be brand leader in hair colour in 2 yrs

Backed by strong growth, FMCG player CavinKare hopes to become the market leader in the hair colour business in the next two years, a top company official said.

The Chennai-headquartered company forayed into the hair colour business a few years back with the launch of "Indica" Herbal Hair Colour.

"The hair colour business has been growing continuously over 50% in the last three years and the gap between us and the market leader is not far away", CavinKare Chairman and Managing Director C K Ranganathan said.

He was delivering the keynote address at a seminar "Surge 2012" on "Leveraging IT for Growth", organised by NASSCOM.

Noting that the company's R&D unit has developed a high quality product without any extra harmful chemicals for the Indica brand, he said, "we believe in the next one or two years time, we will be able to stand shoulder to shoulder
(with the market leader) or even become the market leader."
    
He claimed the company had received a huge response to its recent launch of milk with a 120 day shelf life, saying "we came out with Cavin's Pure Plus with 120 days shelf life. It has taken consumer's fascination, the result is we are
not able to supply (due to demand).

He said the company spends in excess of Rs 100 crore on advertising and added they have identified areas responsible for pushing company growth through use of technology.
    
The learning for us is how we can "differentiate" from others, Ranganathan said, adding the "highest differentiation product gives a margin (by packaging and product cost) of over 85% and the least differentiator product gives a
margin of 7%."