India Personal Care Market-Case Study

1. Discuss industry structure and value chain analysis of Personal care industry in
India
The Indian Personal care market is estimated to be around ~$7bn USD in 2012. The Personal care market
can be categorized into distinct product segments such as skin care, hair care, oral care, cosmetics,
fragrances, other toiletries. The bath and shower product segment is the largest segment in terms of
market size in 2012.
The personal care market is highly dispersed, consisting both of organized and unorganized players.
There are nearly 100 organized players, which includes international as well as Indian companies and
various small-scale companies.
Organized sector consists of three- types of companies:
1. Foreign owned or, international companies like,
Hindustan Unilever Limited, Proctor & Gamble,
LOreal, Colgate-Palmolive, Oriflamme, Amway,
Schwarzkopf, etc.
2. Large indigenous companies like, Dabur, Marico,
Godrej, Biotique, CalvinKare, Emami, Ayur
Herbal, etc.
3. Small or, medium companies like, Cholayil,
Vicco, etc.

TIER-1

TIER-2

In addition to organized sector, there is a very large

unorganized sector, which comprises of micro/cottage
scale enterprises, spread across the whole country. These
enterprises thrive on products, which are based on
traditional and local recipes.

TIER-3

Figure 1: Personal Care Market Structure

Since, personal care market includes those consumer products which are used for personal hygiene and
for beautification. The figure below represents the value chain structure for personal care market:

Raw-Material
Suppliers

Manufacturing

Super-Stockist

Wholesaler

Retailer

Directly through
House/ Showroom

Figure 2: Value- Chain Analysis of Personal Care Industry

End-Consumer/
Companies

2. Discuss atleast 5 major players and their profile in Dental care market
including business overview, business developments and financials
from 2008-2013
COLGATE PALMOLIVE - BUSINESS OVERVIEW

Colgate Palmolive is founded in 1806,

headquartered at New York City, United States

Colgate, sub-brand of Colgate Palmolive, is an oral

care product, having product line of toothpastes,
toothbrushes, mouthwashes and dental floss.
Colgate Palmolive employs around 37,700 people
around the world
Colgate is market leader in oral care segment with
market share of 56% in September, 2012.
In August 2014, Colgate launched Colgate Slimsoft
Charcoa- Indias first and only toothbrush with super
slim tip bristles now infused with charcoal.

Colgate with market

capital of Rs.3,191.53
crores, is leading in oral
care sector
The company has shown
constant increase in
profits over years, with
constant increase in net
income and expenses
Company is able to meet
all its liabilities through
its assets, resulting in zero
debt (approximately)

3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00

13

12

11

10

Total Income

3,191.53 2,786.58 2,351.00 2,064.13 1786.87 1543.55

Total Expenses

2,484.80 2,158.03 1,794.33 1,542.25 1416.91 1244.83

Reported Net Profit

496.75

446.47

402.58

423.26

290.22

231.71

Total Liabilities

489.59

435.39

384.1

330.7

220.99

166.9

Total Assets

489.61

435.4

384.09

330.7

220.98

166.9

Earning Per Share (Rs)

36.53

32.83

29.6

31.12

21.34

17.04

HUL- BUSINESS OVERVIEW

Colgate had raised the standard in the brush

market with recent launches, such as
SlimSoft and thus, enhanced their leadership
position by registering a 57% volume market
share for Sep 2013
Colgate strengthened its leadership position
in the toothpaste category with launch of
Colgate Visible White market share of
42.6% in January 2014

Colgate Financials (2008-13)

in Crores

COLGATE PALMOLIVE- BUSINESS

DEVELOPMENTS

HUL , owned by Anglo-Dutch company

Unilever (67% share in HUL), is headquartered
in Mumbai, India
HUL employs 16,500 people in 2011 across the
world
HUL is the market leader with well diversified
product-portfolio of foods, beverages, cleaning
agents and personal care products.
HUL owns second largest market size of 19% in
oral care after Colgate Palmolive
Company sells its oral care products under the
brand name Pepsodent and Close-up

HUL- BUSINESS DEVELOPMENT

HUL in its annual report for 2013-14

stated that in coming months,
innovation, rural distribution and digital
media will be companys priority
Companys share in toothpaste market
has been constantly falling since last two
years. In Sep 2014, the companys
market share was 21.5% against 22.8%
in 2013 and 23.8% in 2012.

The Company with market

capital of Rs.27,056.6
crores is leading in
personal care market in
India.
Companys net profits are
constantly growing with
growth in total income and
expenses along with
Moreover, the company is
able to meet all its
liabilities through its
assets, resulting in zero
debt over the years.

Hindustan Unilever Limited Financials (2008-13)

in Crores

30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00

13

Total Expenses

21,837.5 18,696.3 17,347.6 14,990.8 17973.6711966.19

Reported Net Profit

3,796.67 2,691.40 2,305.99 2,202.03 2500.71 1769.06

Total Liabilities

2,674.02 3,512.93 2,659.52 2,583.52 2483.46 1527.77

Total Assets

2,674.02 3,512.93 2,659.52 2,583.52 2483.46 1527.76

17.56

12.45

10.68

10.09

11.47

8.12

DABUR- BUSINESS DEVELOPMENT

Dabur, founded in 1884 by Dr. SK Burman, is

headquartered at Ghaziabad, India
In June 2008, German company Fresenius SE
bought 73.27% equity stake at Rs.76.50 a
share
The company employs 6,154 people in 2012
In February 2013, company expanded its
product portfolio with the launch of Dabur
Super Babool+Salt Power Toothpaste
Company sells its products in oral care
segment under brand name of Meswak, Dabur
Red, Babool
The Company is 3rd
largest player in the oral
care segment with
market share of 11%.
The companys profits
are increasing over
years, but growth rate is
very low as compared to
its peers.
The company is able to
meet all its liabilities
through its assets.
The value of EPS has
decreased by 60.25%
from 2009 to 2013

10

27,056.6 22,384.8 20,505.7 17,988.3 21215.1514470.99

Earning Per Share (Rs)

Dabur has doubled its rural reach over the past

couple of years to grow their market share.
Currently, Dabur has 11% market share in oral
care segment, followed by P & G
Dabur, in the pace of growing market share, has
slashed entry-level prices to Rs.5 and Rs.10,
hitting local brands on their home turf
Dabur crossed Rs. 200-crore mark in oral care
in 2013
Currently, Dabur Red toothpaste is the fastest
growing brand in the market with annual
growth rate of 17%

Dabur Financials (2008-13)

in Crores

11

Total Income

DABUR- BUSINESS OVERVIEW

12

5,000.00
4,500.00
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00

13

12

11

10

Total Income

4,410.45 3,825.55 3,391.90 2,905.05 2476.52 2114.59

Total Expenses

3,569.14 3,158.74 2,728.36 2,325.58 2003.12 1706.82

Reported Net Profit

590.98 463.24 471.41 433.33 373.55 316.77

Total Liabilities

1,836.36 1,576.54 1,354.51 855.45 877.18 545.01

Total Assets

1,836.36 1,576.54 1,354.51 855.45 877.17 544.98

Earning Per Share (Rs)

3.39

2.66

2.71

4.99

8.53

6.11

P & G- BUSINESS OVERVIEW

Proctor & Gamble (P & G), founded in 1837,

is headquartered at Ohio, United States Of
America
Company with its well-diversified product
portfolio of pet foods, cleaning agents,
personal care products, is one of the global
leaders in personal care products
Proctor & Gamble employs 121,000 people
around the world
Company sells its oral care products under
the brand name of Oral-B and Crest

P & G with
total income of
Rs. 1787.13
crores, is 4th
largest key
player in oral
care segment
in India
The company
is able to meet
all its liabilities
through its
assets
The companys
profits are
constantly
growing over
the years

In 2014, company recorded $83.1 billion

in sales.
On 1 August 2014, company announced
streamlining the company, dropping
around several brands and focusing on
remaining brands, which constitutes 95%
of the profit

Proctor & Gamble Financials (2008-13)

in Crores

P & G- BUSINESS DEVELOPMENT

2,000.00
1,800.00
1,600.00
1,400.00
1,200.00
1,000.00
800.00
600.00
400.00
200.00
0.00

Jun '13

Jun '12

Jun '11

Jun '10

Jun '09

Total Income

1,787.13 1,365.00 1,036.21

923.17

796.65

670.66

Total Expenses

1,469.61 1,113.87

834.94

661.61

562.41

478.43

Reported Net Profit

203.22

181.29

150.88

179.77

178.85

131.42

Total Liabilities

805.32

697.04

600.63

534.64

440.04

346.64

Total Assets

805.32

697.06

600.62

534.65

440.02

346.64

62.6

55.85

46.48

55.38

55.1

40.48

Earning Per Share (Rs)

3. India Personal Care market size comparison, 2008-2013

Countries

2008

Total
Personal care
market
revenue in
INR

2009

2010

2011

2012

Rs. 400 crores

Rs. 570 crores

Rs. 630 crores

Rs. 700 crores

42.5%

10.52%

11.11%

Rs. 75 crores

Rs. 96.75
crores

Rs. 130 crores

17.18%

29%

34.66%

Growth Rate
%
Skin care
revenue in
INR

Rs. 64 crores

Growth Rate
%

2013

Source: Dinodia Capital Advisors Home and Personal Care-The Brightest Spark in Indian Story, May 2013
Tata Strategic Management Group Outlook for Personal Care Industry: An Indian Perspective, October 2009

Compare the above two factors and provide reasoning of change in growth rate separately for both the
factors (Total advertising industry and online advertising industry)
Instructions: Description should be atleast of 100-200 words

Reason of Change in Growth Rate in Personal Care

Segment

Increase in disposable income

Growth in rural demand is expected to
increase because consumers are moving up
towards premium products
Rapid urbanization
Emergence of small-pack and sachets
Changing lifestyle
Greater product choice and availability
Increased marketing

Reason of Change in Growth Rate in Skin Care

Segment

Increase in per capita income

Rapid urbanization
Aspiration among youth Indian to look as
good as local and global celebrities
Changing lifestyle
People are becoming aware about personal
grooming
Easy availability and greater product choice

On comparing two factors, in my view growth in disposable income has resulted in increased purchasing
power. Due to rapid urbanization and changing lifestyle, people are becoming more aware of personal
grooming and thus, there is growth in demand from both urban as well as rural market. Along with this,
easy availability of products in convenient size and sachets, made rural people inclined towards branded
products, rather than unbranded products. All these factors in whole, contributed in the growth of skin

care segment, along with growth in other segments too, like body care and hair care segment. This overall
resulted in the increasing growth of personal care segment in India.

4. Discuss major segments of the Personal care industry in India (Rank the segments
on the basis of market positioning)
3
2
1
0

Market Size (2012, USD in Billions)

2.8 2.4
1.3 1.3
0.6 0.3
Segments

Source: Morgan Stanley India Consumer & Retail, Feb 2013

Projected Growth Rates (2011-17)

37%
40%
27%
16%13%12%11%
20%
Segments
0%

Source: Spark Capital Indian FMCG Sector, June 2011

a. Skin Care:
Key Skin Care Companies (2011)

SKIN CARE-OVERVIEW

The skin care market is estimated to be around

$1.3 billion in 2012
Skin care in India is currently at very basic stage
and is predominantly, considered as facial care
Hindustan Unilever occupies 58% of market share,
while other players have smaller shares
The skin care segment has grown at a CAGR of
13% from 2000-12

19%

18%
7%

2%
3%

HUL
L'Oreal
Amway
CavinKare
Oriflame
Emami
Zydus
Others

3% 3% 5%

Source: Dinodia Capital Advisors Home and Personal

Care-The Brightest Spark in Indian Story, May 2013

b. Hair Care:
HAIR CARE- OVERVIEW

The hair care market is estimated to be

around at $2.4 billion in 2012
This segments consists of shampoos,
conditioners, hair-oils, etc
Shampoo makes up 31% of the hair care
segment, while perfumed oil and coconut based
oil make up 27% and 25% of the market
respectively.
The hair care segment has grown at a CAGR
of 12% from 2000-12

Key Hair-Care Companies (2011)

31%

18%

4%
4%

11%
10%

6% 8% 8%

HUL
Dabur
Marico
P&G
L'Oreal
GCPL
CalvinKare
Emami
Others

Source: Dinodia Capital Advisors Home and Personal

Care-The Brightest Spark in Indian Story, May 2013

c. Bath & Shower:

KEY BATH & SHOWER COMPANIES (2011)

BATH & SHOWER- OVERVIEW

The bath & shower market is estimated to be

around $2.8 billion in 2012
The segment consists of bar soap, body wash,
shower get and talcum powder.
Hindustan Unilever is the market leader in
this segment with 50% market share,
followed by Godrej Consumer Products with
10%
The bath & shower segment has grown at a
CAGR of 8.7% from 2000-12

4%

HUL
GCPL
Reckitt Benckiser
Wipro
Nirma
ITC
Others

15%

4%
50%

8%
9%
10%

Source: Dinodia Capital Advisors Home and Personal

Care-The Brightest Spark in Indian Story, May 2013

5. Which sector is leading in personal care market in India (For eg dental care, skin
care, etc?

Talking in terms of market size, in my view, bath

and shower sector is leading in personal care market
with total market size of $2.8 billion
This sector is further followed by hair care sector
with total market value of $2.4 billion
Hair care sector is simultaneously followed by oral
care and skin care with total market size of
$1.3 billion and $1.3 billion respectively. Currently
in India, skin care is at very primary stage with
projected growth of 13% annually

Market Size (2012, USD in Billions)

Bath & Shower
Products
Hair Care

0.6 0.3
2.8

1.3

Oral Care
Skin Care

1.3

Colour Cosmetics

2.4

Deodrants
Source: Morgan Stanley India Consumer & Retail, Feb 2013

6. Performance of personal care market in India in last five years (20082013)

Personal care segment, one of the

segment of FMCG industry, is
constantly growing over years.
Its growth can be attributed to various
factors, like, changing lifestyle,
increasing purchasing power, etc
In 2013, personal care segment
constituted 26% of the total FMCG
industry
Low penetration in rural markets,
which constitutes 70% of the
population of India, Presents a major
opportunity for growth in this
segment

Personal Care Segment

800
570

600

630

700

400
400

Personal Care
Segment

200
0
2009

2010

2011

2012