Sep 28, 2000|
Operation insecticides: A ‘Hit’
The Rs 6 bn household insecticide industry can be classified as two sub segments. One segment is the insect repellents, which comprise mats, coils, vapourizers, lotions and creams. The other segment are the insect killers comprising aerosols, oil based sprays and baits, and chalks.
The industry has recorded rapid growth over the last few years (12% growth over last year), but the industry still has a lot of potential. Recent studies by ORG-Marg show that while 95% of households in India have an insect problem household insecticides penetration is only 16.5%. India’s per capita usage of household insecticide is even lower than smaller countries like Malaysia, Sri Lanka or Thailand. While around 84 % of the total size of the market is urban in nature, the urban penetration is only 42.2% as of December 1999. The rural market penetration is even paltrier at 6.9%.
The industry was traditionally mat or coil dominated, but the entry of MNCs like Reckitt & Colman (Mortein) and Lever Johnson (Raid) with their international brands has given Indians a taste of the different variants of household insecticides. Increased competition has led to greater advertising spends and hence, increased consumer awareness and market size. As a result of all these new product variants, the consumption of mats is on the decline.
|Godrej Sara Lee
||Good knight, Jet, Hit & Banish
|Reckitt & Coleman
||Coils, Mats, Vapourizer and Aerosol
||Aerosol, Spray, Mat
In the mats segment, Godrej Sara Lee’s brands Goodknight, Jet and Banish together dominate 64% market share. Mortien heads the coils segment with a 34% market share, followed by Godrej Sara Lee at 26%. In the vapourizers segement Karamchand Industries ‘All Out’ holds the major of the market with a 67% market share. And in the Aerosols segment, Godrej and Bayer are slugging it out, though Godrej till now has the upper hand.
The next few years are likely to see a feverish pitch being made by these players not only to increase their respective market shares but also to increase the market size. For the consumers it is good news, as greater competition has always resulted in reasonable prices and good quality products for them.
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