Kolkata-based ITC Ltd, which has been acquiring companies in the personal care segment over the last few years, is looking for more acquisitions in the segment, said Sameer Satpathy, chief executive - personal care, on October 7.
“We remain hungry for lucrative acquisitions. It should be value accretive and one that helps to grow and build a strong brand,” he said in a virtual conference to discuss acquisitions made by ITC in the segment.
In 2015, ITC acquired Savlon and Shower to Shower from Johnson & Johnson marking its entry into the health and hygiene space.
In 2018, it acquired floor cleaning brand Nimyle from Kolkata-based Arpita Agro Products.
ITC's personal care portfolio includes brands such as Essenza Di Wills, Fiama, Vivel, Engage, Savlon, Charmis, Shower to Shower, Nimyle, Nimwash and Superia brands.
The consumer spending on Savlon in FY20 stood at Rs 250 crore, and Satpathy expects it to touch Rs 1,000 crore by the end of the current financial year (FY21) in the wake of the COVID-19 pandemic.
If that happens then Savlon will become the first Rs 1,000-crore brand in the personal care business for ITC.
“When we acquired the brand, they only had soap and antiseptic liquid. Now we have Savlon Handwash, Savlon Hand Sanitiser, Savlon Multipurpose Disinfectant Cleaner, Savlon Wipes, Savlon Surface Disinfectant Spray. We are expecting that the brand will touch Rs 1,000 crore by the end of this year as most consumers are buying Savlon products during the COVID-19 pandemic,” he said.
He further pointed out that the Savlon portfolio has grown around three-four times during the pandemic.
In May this year, ITC had launched fruits and vegetable wash called Nimwash. It also had the Nimyle brand which sells floor cleaners. Satpathy envisages the consumer spending on both to reach around Rs 150-160 crore by the end of FY21.
ITC reported a 26 percent year-on-year (YoY) fall in standalone net profit for the quarter ended June 30, 2020, at Rs 2,342.76 crore.
However, the personal care products business recorded substantial growth in revenue, driven by heightened awareness and demand for hygiene products such as hand sanitisers, handwash, antiseptic liquids and floor cleaners in the wake of the COVID-19 pandemic.
But brands such as Engage witnessed a tepid quarter due to a significant decline in demand.
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