CavinKare – Historical Background

• C.K.Ranganathan – entrepreneurial and committed.

• Family business of small scale pharma packaging and cosmetics.
• Chinni Krishnan, father of Ranganathan: innovator of “sachet”
(velvette)
• Evolution:
- Chik India in 1983: started with economic shampoo
- Beauty Cosmetics Private Limited in 1990: transitioned to
cosmetics brand
- CavinKare Private in 1998: beyond just cosmetics to consumer
products
 RURAL MARKETS: UNTAPPED OPPORTUNITY
Pre and Early 1980's Rural setup:
- Low investment in FMCG sector.
- Low purchasing power.
- Established players like HUL focused
on Urban markets.
Large size of middle-class consumers.
Low penetration of Hair care products
compared to Urban.
Large gap available to be tapped.
Challenges:
- Competetion from Local players.
- Alternatives and Substitute products.
- Lack of Awareness.
 CK target
• Need for good quality low cost
shampoo.
• Low middle class and semi-
urban population
- Rs1.5K – 3K per month.
• Differentiation:
- Superior quality
- Appealing fragrance
- Affordable price