Jyothy Labs to expand its power brands list

City-based consumer goods major Jyothy Laboratories may induct its detergent powder Mr White into its list of power brands by next year. 

In a conversation with Business Standard, the company's joint MD Ullas Kamath said the brand would cross Rs 100 crore in turnover by then, giving it access to the club. 

"One of the criteria we have for getting into the (power brands) list is that it has to be Rs 100 crore in size. Mr White has a brand size of Rs 85 crore. We see it getting there," Kamath said.

The move to induct Mr White, strong in the south, into its league of top brands, comes as the maker of Ujala fabric whitener looks to beef up this club. Last year, the company had opted to focus its attention on six brands in a bid to improve visibility and aid recall. This was intended to help the company consolidate the gains it had made post the acquisition and merger of Henkel India into it. 

Jyothy, for the record, had acquired 50.97% stake in Henkel India in May 2011, then going on to increase its stake to 83.66%, before merging the entity with itself in March 2013.

The products that are part of Jyothy's power brands list include Ujala (fabric whitener and washing power), Maxo (mosquito coils & liquids), Exo (utensil cleaner), Henko (detergent and bar), Pril (kitchen liquid and bar) and Margo (soaps and face wash). Together, these products contributed 84% of Jyothy Labs' FY15 revenues (Rs 1,505 crore). The addition of one more brand will mean that the contribution from its power brands club will cross the 85% mark, analysts tracking the company said.

Meanwhile, Jyothy is also looking to reposition Henkel AG brand Fa in the Indian marketplace by next year as its sales remain flat. The deodorant, which also operates in splashes and perfumes, has domestic sales of Rs 12 crore only, down from Rs 25 crore a few years ago. 

Of the erstwhile Henkel India brands acquired by Jyothy, Fa remains among the smallest, analysts tracking the company said. Fa alongwith Pril have been licensed to Jyothy by Henkel AG, the German parent of Henkel India. Jyothy, on the other hand, has global rights to make and market Margo, Neem (toothpaste), Chek, Henko and Mr White, all erstwhile Henkel India products. Jyothy's own brands include Exo and Maxo besided Ujala.

"There are just too many players in the deo segment. We will take a few quarters to reposition Fa. We are working hard to get there," Kamath said in response to a specific question on when the repositioning was likely.

Jyothy is also contemplating making regional acquisitions in the south and the east, areas where it is strong, Kamath said, in a bid to strengthen its portfolio. "We would ideally like to make acquisitions in these areas and then take them national," he said. Possible segments for regional acquisitions include personal care and hair care, he added.