Procter & Gamble to pamper diaper business, wash hands off Ariel bar  ( December '3,2003, BS)

Do disposable diapers sound a better promise than a scrub with a detergent bar? At least fast moving consumer goods multinational Procter & Gamble thinks so.

With the market for detergent bars no longer raising froth in the India, Procter & Gamble is going low key on its Ariel detergent bars. In contrast, Pampers diapers, one of P&G’s top brands globally, will be given more thrust in India.

Shantanu Khosla, managing director, Procter & Gamble India, said: “We are not focusing on Ariel detergent bar any more. Diapers is a focus area for the company and has huge potential,” Khosla added.

It may be noted that Procter & Gamble had taken back the distribution rights of Ariel detergent bar and Pampers from Marico Industries, snapping its three year old alliance with the oil major. Its other brands like Old Spice men’s toiletries and Camay soap, which were also distributed by Marico, had been licensed to other FMCG companies.

According to FMCG industry sources/ (AC Nielsen Org-Marg), the detergent bar market has shrunk by 5.5 per cent over the last year. The market size of detergent bars is estimated to be around Rs 2,018 crore. While Procter & Gamble accounts for Rs 5.2 crore, Hindustan Lever accounts for Rs 895 crore and Nirma Rs 380 crore.

The other players in the baby diaper category are Kimberly Clark (JV between HLL and Kimberly Clark of US with Huggies) and Godrej Consumer Products with Snuggy. The Indian diaper market is pegged at nearly Rs 70 crore and is estimated to grow by between 5-10 per cent.

Ariel detergent bar is managed by Procter & Gamble Home Products, the 100 per cent subsidiary of the MNC, while Pampers is looked after by Procter & Gamble Hygiene and Healthcare, the listed company.