Hindustan Unilever Ltd. (HUL) has launched three ayurvedic shampoos to offer products across price points as India’s largest consumer goods maker looks to counter Baba Ramdev’s Patanjali Ayurveda Ltd. in a fast-growing market.
The maker of Lux soaps has unveiled Ayurveda Care Triphala shampoo under the Clinic Plus brand and two Tresemme Botanique variants – Nourish & Replenish and Detox & Restore – the company told BloombergQuint in an emailed statement.
The Rs 32,000-crore company has been adding ayurvedic products to its personal care portfolio, which contributed nearly 30 percent of its total revenue in the year ended March 2016, according to its earnings report.
“The impact of Patanjali is clearly visible,” said Sageraj Bariya, vice-president and analyst at broking firm East India Securities Ltd. “By launching an ayurvedic range under an existing brand” it will be easier for HUL to “gain customers’ trust”, he said.
The company has priced the shampoos in a similar range as other variants in the two brands. A 650 ml bottle of Clinic Plus Ayurveda Care Triphala will cost Rs 345, while a 580 ml Tresemme Botanique packing will be sold at Rs 420.
There is a segment of consumers who are interested in using ayurvedic and natural products… Clinic Plus is based on classical ayurvedic ingredients and Tresseme Botanique is based on modern lush nourishing natural ingredients.HUL Told BloomberQuint In An Emailed Statement
In December last year, the maker of Axe deodorant had relaunched the Lever Ayush brand in the five southern states -- Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Telangana -- that have a large market for ayurvedic products. The company priced its offerings under the brand between Rs 30 and Rs 130 to match Patanjali’s pricing.
Products under its Indulekha hair care brand, which the company acquired in December 2015, are priced higher, with a 100ml hair oil bottle retailing at Rs 432.
HUL is launching products under different brands and at different price ranges. This strategy will definitely help them penetrate the market even better in the ayurveda space. What also works in its favour is its deeply entrenched supply chain and distribution network.Prashant Agarwal, Joint Managing Director, Wazir Advisors (Retail & Brand Consultancy)
Agarwal said the ayurvedic market is growing at 10-12 percent a year and has the potential to grow at the rate of 16-17 percent.
Arvind Singhal, chairman of management consultancy Technopak Advisors, said the success of Patanjali has pushed consumer goods maker to refocus on the ayurvedic and natural segment. “The ayurveda space is growing very rapidly. Not only Patanjali, but other players are also looking to expand their presence in the market. It is a logical progression for them.”
Patanjali, which also sells food items, had seen a two-fold growth in revenue at Rs 5,000 crore in the financial year 2015-16.