FABRIC WASH SECTOR:

1st Report (2007 report):

http://timesofindia.indiatimes.com/business/india-business/HLL-PG-hike-product-
prices/articleshow/1759543.cms

HLL is a market leader (in value) in fabric wash, with a share of 35.8% in the December quarter, as per
ACNielsen. Its closest competitor, Nirma, has a share of 15.2% in value. P&G, which has a share of 7.1%, had
taken a 4% price increase on Ariel base bags of one kilo and half kilo in January to keep up with inflationary
pressure.

While the USP of Surf Excel quick wash is its technology that reduces water consumption and time taken for
rinsing by 50%, Surf Excel Blue is marketed as a protector of fabric colour. Another variant, Surf Excel
Automatic is a machine wash detergent.

The Rs 12,103 crore HLL has said it will resort to judicious price rise across categories, given the rising costs of
inputs. Analysts said the price increases would result in HLL reporting a better financial performance in the first
quarter ended March 31, 2007.

2nd report:

http://www.equitymaster.com/research-it/sector-info/consprds/consprds-products.html

Detergents
The Indian fabric wash market consists of synthetic
detergents (comprising bars, powder and liquids)
and oil-based laundry soaps.

 Although the per capita consumption of detergents in

India (2.7 kg pa) is comparable to some countries like
Indonesia, China and Thailand (around 2 kg pa), it is
lower than in others such as Malaysia, Philippines (3.7
kg) and the USA (10 kg). The Indian detergent market
is expected to grow at 7-9% pa in volume terms.

 The synthetic detergent market can be classified into

premium (Surf, Ariel), mid-price (Rin, Wheel) and
popular segments (Nirma), which account for 15%,
40% and 45% of the total market, respectively. The
product category is fairly mature and is dominated by
two players, HLL and Nirma. Nirma created a
revolution in the market by pioneering the concept of
low-cost detergents. Currently, the market is highly
segmented with the differential between the premium
and popular segments at almost 7X.

 Growth
High consumer awareness and penetration levels will
enable the market to grow at an average 8-10% per
annum with slightly higher growth in the rural areas.
 Higher penetration stems from popularity of low-cost
detergents. Hence, besides increase in per capita
consumption, there is tremendous scope for
movement up the value chain.

HLL, Nirma and P&G are the major players in the

market with 40%, 30% and 12% share, respectively.
While HLL dominates the premium segment, Nirma is
the leader in the popular segment.

3Rd Report:

Sector Over view : http://www.naukrihub.com/india/fmcg/overview/fabric-wash/

Fabric Wash Overview

The fabric wash market is valued at Rs 57 billion in India, and is the world's largest market after China, and USA.
With increase in the penetration of washing machines, increase in disposable income, aggressive advertising, and
convenience of usage, people prefer detergents and powders in place of bars in urban areas. Detergents' demand
has been growing at the rate of about 11% for the last 5 years. However, laundry bar market has registered a
negative growth. The rural fabric wash market is growing at the annual rate of 13-14%, while urban market is at 8-
9%.

Production (market size) Unit 2002-2003 % Growth 2003-2004 % Growth

Fabric wash market MN tonnes 50 4% 50.25 0.50%
Laundry soaps/bars Rs billion 53.3 -6.5% 50.64 -5%
Detergent cakes MN tonnes 15 10% 15.3 2%
Washing powder MN tonnes 25 10% 25.63 2.5%

Products Covered

Products covered in this category are:

 Laundry Soaps
 Synthetic Detergents
 Synthetic Powders

Major Players and their Products

The major players and their products in the fabric wash market are:

 HLL (Surf)
 Nirma (Nirma Super, Nima)
 Henkel (Henko)
 Proctor & Gamble (Ariel, Gain, Tide)
Market Shares of the Major Players