soaps, detergents & toiletries review

SOAPS, DETERGENTS & TOILETRIES REVIEW / OCTOBER 2010 /

Happy times are here for the Indianconsumer. His every wish is comingtrue, and that too at discounted prices!Inflation might be skinning his knees,but if he wants to hitch a ride to hisdestination, he can get a good motor-cycle at half the price he could get itat earlier. Forget bikes, he can nowdream of getting a brand new car forRs.1 lakh. Where once having a desk-top computer in the house was a luxuryand laptops were only for the suits sit-ting in the cabins, now he can getlaptops for Rs.15,000. When he thinksof getting himself a new mobile, hemight not have the money to buy aBlackberry, but he can certainly buymultiple Micromax models in the sameprice. And we’re not even talking ofthe wave of cheap Chinese manufac-tured mobile handsets that can befound on Indian streets priced at a lowlyRs.1000.It an exciting time when more and

more products are being made availableto more and more income brackets. It’shappening in electronics, it’s happen-ing in automobiles, It’s even happeningin consumer durables. But what onemisses in the whole scheme of thingsis some scintillating new developmenton the FMCG fast moving consumergoods) scene. This is the once canvaswhere you can make a difference tomaximum people across strata. But thelast real revolution that one witnessedin this space was the sachet revolutionby CavinKare. That was quite a revolu-tion when the same shampoo that waspitched as a luxury item by the biggieswas now available at 50 paise per wash.No wonder the consumers at the middleof the pyramid lapped it up and categorypenetration shot up. It was one of thefew times when the FMCG majors got ajolt that made them sit up and take no-tice. The other time was whenKarsenbhai Patel introduced Nirmapriced at a third of Surf. In a one brilliant

THE NEXT FMCG REVOLUTION IS DUE

It’s been a long time since any FMCG brand tried to challenge existing category codes, expandpenetration, or initiate a price revolution. So, what’s preventing it?

stroke, he gobbled chunks out of Unilever’smarket share and caused multiple revi-sions in their market strategy.But since then, there has been all lull onthe FMCG scene. No challenging ofexisting category codes, no trying toexpand penetration, no new price revo-lution. The whole point of technology isthat you can get better products at alower price. Then why are we still pay-ing Re.1 for a shampoo sachet? By now,we should be getting 3 sachets at thesame price. We should be getting fair-ness creams in 50 paise sachets andhair oil at Rs.2 for 7 applications. A newprice revolution in FMCG would meanthat we cover more people rather thantalking to only a fraction of the popula-tion. Take sanitary napkins, for instance.At the high price that they come at, theycater to a fraction of the female popula-tion. What if they came at a third of thecost? Wouldn’t bring about far-reachingliberation among Indian women?Nobody is really questing the fact that

the next FMCG revolution is due. Thequestion is who will spearhead this revo-

lution. The last time a revolution hap-pened in this space, it was triggeredby the small local players. May be itwill be them again, this time inventingyet another sachet logic. Or it couldbe the big FMCG majors-Proctor &Gamble (P&G), Hindustan Unilever Ltd(HUL), ITC – getting into challengermode instead of waiting for a pricechallenge to react to. Or indeed itcould be the government that wouldtake the initiative and waive the dutyto bring down the price of products forthe benefits for people who can’t af-ford them. May be it will be the fourthangle to the story – the giant retailers– Reliance or Big Bazaar that wouldtake the onus to bring down prices.One thing is clear – whoever makes

the first move, the person to benefitwould be the end consumer. For a bil-lion-plus consumer market, it doesn’tmake sense when something as basicas FMCG; cater only to a few segmentsof the population. So bring on the nextwave, I say, and may it feed a billionmouths and fill a billion pockets!

NOTES & VIEWS

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A fresh round of price hikes has be-gun in the Indian FMCG industry.While many FMCG majors are takingprice hikes to offset the higher inputcosts, there are others who are reduc-ing their pack sizes without raisingprices. Currently, Hindustan UnileverLtd (HUL) has taken a price hike forits flagship brands Rin and Lifebuoysoap in the last few days.In a quiet move, HUL has revised

the price of its toilet soap brandLifebuoy 120 gm SKU from Rs.15 toRs.16 while raising the price of its de-tergent brands Rin & Rin JasmineFresh (one kg) from Rs.50 to Rs.54.On the other hand, HUL’s arch rival

Procter & Gamble India (P & G) hasupgraded its detergent brand Tide(which was priced at Rs.56 for 1 Kg)by launching Tide Plus which is avail-able at Rs.70 for 1 kg, with an addi-tional 10% free as a special promo-tion. Yet another FMCG major ParleProducts Private Ltd, makers of ParleG biscuits, has reduced the packsizes of all its brands without raisingprices. Meanwhile, Godrej ConsumerProducts Ltd, (GCPL) is working onits revised pricing input costs,. AdiGodrej, chairman of the Godrej Groupsaid, “There is a valid case for a pricerise, since palm oil based raw mate-

FMCG COS RAISE PRICES TO OFFSET COSTS

LALITHA SRINIVASAN

rial prices have been moving up and soapprices are dependent on commodityprices. We could take a price rise onour brands and are working that out.” LikeGodrej Consumer Products, other FMCGmajors such as Marico are also workingon their pricing strategy to offset higherinputs costs.According to Aditya Agarwal, director

Emami, the company is looking at pricehikes as part of its brand strategy.“Our price hikes depends upon brand

to brand. As part of our brand plan, weare looking at price hikes not becauseof the rising input costs,” he said.With rising inputs costs, FMCG com-

panies have no choice but its revise their

pricing strategy to protect margins, pointout industry analysts. “Since August thisyear, major FMCG players have begunraising the prices of their flagship brandsto counter the rise in raw material costs.It’ll continue for another three months,“said an analyst based in Mumbai.On P & G pricing strategy a company

spokesperson said, “Recently, we havelaunched Tide Dirt Magnets which ispriced at Rs.70 for 1 kg, with an addi-tional 10% free a special promotion.”In the midst of such price hikes in the

Indian FMCG sector, Dabur India is notplanning to hike price said Amit Burman,vice chairman of Dabur India.

There is a valid casefor a price rise, sincepalm oil-based rawmaterial prices havebeen moving up and thesoap prices depend oncommodity prices- ADI GODREJChairman, Godrej Group

“

NOTES & VIEWS

W ADHERA PUBLICATIONS WISHES ALL OF Y O U

A VERY HAPPY DIWALI ANDPROSPEROUS NEW YEAR

14


FMCG MAJORS CHART ACQUISITION ROUTE INDEVELOPING NATIONS

LALITHA SRINIVASAN

A fresh round pf acquisitions has be-gun in the Indian FMCG industry. Af-ter acquiring healthcare brand Ingwein South Africa a few days ago, Maricois aggressively scouting for acquisi-tions in developing countries in Asiaand Africa. The company is lookingfor firms in the beauty and wellnessspace. Like Marico FMCG majorWipro Consumer Care Lighting (WCCL)is also scounting for acquisitions in Af-rican and West Asian markets.“We are looking at acquisitions in

developing economies which are grow-ing faster. Our focus is on takeoversin product categories where we arepresent now,” WCCL president VineetAgrawal said Last year, Wipro acquiredthe Yardley business from UK-basedLornamead Group.On the other hand, cash-rich Emami

is looking at takeovers in personal andhealthcare sectors in domestic as wellas overseas markets. “We have someproposals on hand which are being evalu-ated. The size of these acquisitionscould be up to Rs.1,000 crore. We arealso looking at acquiring smaller com-panies,” said Aditya Agarwal, Director ofEmami. Incidentally, audit and consult-ing firm Ernst & Young is advising Emamion the company’s new acquisition deals.Industry analysis point out that IndianFMCG majors are increasingly opting forthe acquisition route to enter the globalmarkets. “Encouraged by the feel-goodfinancial performance in the last two quar-ters, many FMCG majors are now bet-ting big on overseas acquisitions,” saidan analyst.On Marico’s acquisition strategy,

Chaitnaya Deshpande, head (mergers &

acquisitions), Marico Group, said, “Ac-quisitions will continue to be an inte-gral part of Marico’s growth strategy.In terms of geographies, we have iden-tified countries in Asia (including India)and Africa. We believe that our abilityto add value will be relatively higher inthese geographies as compared to thedeveloped markets, “he added.According to Deshpande, many

leading Indian FMCG companies (non-MNC) have been on the lookout foracquisition opportunities over the lastfew years. “Some of these have gotfructified into opportunities with the rightfit and at the right price over the lastfew months. The timing, in our view,is less to do with the economic revivalthan with everything falling into placefor the company making the acquisi-tion,” he added.

Shares of FMCG companies wit-nessed a smart rally on the boursesLeading the pack was ITC, whichsurged about five per cent to registerits all-time high level.The rise in consumer goods stocks

pushed the BSE FMCG index 125points or 3.5 per cent higher to closeat 3,687.89, becoming the biggestgainer among the 13 sectoral indices.According to an analyst with a domes-tic brokerage firm, as the broad indi-ces surged relentlessly in the last fewdays, several traders expect sharpcorrection in the market. “In that event,FMCG stocks are the safest bet andhence several institutions are takingexposure in the segment,” he added.Reports of price hikes also at-

tracted investors towards FMCG com-panies, said marketmen. As input

FMCG STOCKS HOG LIMELIGHT

Brokerages caution on disconnect between fundamentals and valuations

costs surged due to food inflation, FMCGcompanies such as HUL have begun afresh round of price hike.In recent weeks, HUL has raised soap

prices by 5 per cent, mainly for the Lux,Lifebuoy, Liril and Dove brands. This waseither via a reduction in weight at thesame price point or by increasing pricesfor the same pack size. HUL is the mar-ket leader and the first to raise pricesdecisively. We believe HUL’s move willbe followed by other companies and thinkit’s positive for companies like GodrejConsumer (GCPL) whose gross marginshave suffered in the last quarter,” said aHSBC in its August 25 per cent.HUL ended 3.79 per cent higher in trade

at Rs.292.75. Colgative-Palmolive closedat a new peak of Rs.859.7, Dabur jumped1.5 per cent at Rs.111.3 while Nestle In-dia gained 1.6 per cent. However, Godrej

Consumer tumbled 5 per cent atRs.436.35. However, some brokeragesare advising investors to remain cau-tious on FMCG stocks citing seemingdisconnect between fundamentals andstock valuations. “While, earningsgrowth has remained robust, morethan half of the stock price perfor-mance has been driven by expansionof their price-earnings multiple,” a Mor-gan Stanely report said.According to Tata Securities, “Ex-

cept for HUL, which was marred by poorperformance, all the remaining com-panies are trading 15-20 per cent higherthan their historical one year forwardP/E multiple. This coupled with thefact that volume growth has sloweddown and input costs remain a worry,we have become neutral on the sectoras a whole.”

NOTES & VIEWS

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A TASTE OF THE ORIENT

Chinese herbs not only help balance your Yin and Yang, they also enhance cosmetic formulations. In part1 of his report, Dr Allan Onions, Honeywill & Stein examines the plants in history and their uses in sun,

bath and skin care preparations

The extraordinary therapeutic proper-ties of certain Oriental plants are wellknown and have been used empiricallyfor the treatment of various conditionsand illnesses in Oriental civilisationsfor centuries.These plant drugs are used in vari-

ous forms for both the alleviation ofsymptoms and the treatment of manydiseases by one-third of the world’spopulation. Since the earliest times,traditional uses of the medicinal andhealing properties of specific plantsand herbs have been recorded and pre-served in countless written texts andancient pharmacopoeia publishedthrough the ages by Imperial decree.Although the emphasis of traditional

Chinese medicine is prevention ratherthan cure, it is considered that life iscontrolled by Ch’i. The concept of alife force, although universal, is knownby a variety of names. In the West,we can perhaps best identify the con-cept as energy, in India it is known as‘prana’ and to the Chinese it is ‘Qi’ (orCh’i). As long as the Ch’i flows freelythroughout the body, health will bemaintained. Traditional Chinese medi-cine is based on the detection ofchanges in Ch’i forces, and appropri-ate treatment is aimed at restoring thebalance between these opposingforces, generally known as Yin andYang. Whenever one of these forcesdominates, ill-health results and a cureis designed to restore their balance.Chinese medicine also employs otherpolarities known as the ‘eight prin-ciples’ and the ‘five elements’. Here,for example, any symptom associatedwith heat, such as red face, fever, etc,can be treated with remedies that ef-fectively dissipate the heat and coolthe subject. Further diagnosis involvesthe identification and reading of 12 dif-ferent pulses, six deeps and six su-perficial. Clearly a very complex sci-

ence, traditional Chinese medicine notonly considers man as a ‘whole being’,where the body cannot be treated with-out having a concomitant effect on themind and spirit, but also considers thepatient as a part of his environmentwhere the disease may be internal (or-ganic or emotional) or external, beingcaused as a result of factors such asthe environment.Whether found by trial and error, or

through divine inspiration as claimed bythe originator of traditional Chinese herbalmedicine, Emperor Shen Nong, whoclaimed to have discovered 70 new rem-edies in one day, an extensive list ofherbal remedies for the treatment of amultitude of illnesses and conditions hasdeveloped. The earliest published Chi-nese record is that of the Emperor, theShen Nong Ben Cao Jing, the ShennongHerbal, dating back some 2,000 yearsand recording the sources, uses andproperties of over 350 drugs.Perhaps the most recent, and cer-

tainly the most comprehensive is the En-cyclopedia of Chinese Materia Medica,first published in 1977 and compiled bythe Jiangsu Institute of Medicine. It com-prises descriptions of nearly 6,000 drugsof which almost 5,000 are from plants.For each of these, botanical, chemical,pharmacological and clinical data aredescribed. There has also been an al-most parallel publication of formularies,which deal with blends of herbs ratherthan individual ones. Here again, the ear-liest date back some 2,000 years whilemany are much more recent; for example,the Collection of Chinese Herbal Prepa-rations, which dates from 1983 and com-prises over 3,800 modern prescriptions.In all, these publications describe over5,000 single herbs and perhaps 20 timesthis amount of formulations.In traditional Chinese medicine, the

herbs are divided into four categoriesdepending on their activity: Emperor /

Kingly, Minster / Ministerial, Chancel-lor / Servant / Assistant, Ambassador/ Slave / Messenger.The Emperor or Kingly drugs are the

principal curative agents and will rep-resent the largest proportion of anyOriental herbal remedy. They are con-sidered non-toxic. Minster or Ministe-rial herbs generally act as synergistsor adjuvants to the Imperor, and arealso regarded as being non-toxic.Chancellor or Servant herbs, also calledAssistants, are used in formula in smallquantities and are considered to actin a catalytic manner, orchestrating theactivity and perhaps modifying the nor-mal therapeutic pathway of the otheringredients. Ambassador or Slavedrugs, also sometimes referred to asMessengers, are generally the mostpowerful, requiring the addition of anorder of magnitude less than the Ser-vant class drugs to produce essentiallysimilar effects.Both Servant and Slave classes are

normally added to multi-component for-mulae, often those comprising over 15ingredients. In Western terms, both ofthese classes would be consideredtoxic in their own right, but at the lowconcentrations in which they are addedto these multi-component remediesthey appear to be used safely withoutsignificant adverse effects. It is also acommon technique in these formulaeto add moderating or detoxifying herbssuch as Chen-Pi (aged citrus peel),Licorice or jujube dates which removeor neutralise any toxins that may bepresent.Oriental plant derived medicines dif-

fer from herbs used in Westernphytotherapy in that the former are notmerely dried plant parts, but are actu-ally crude medicinal drugs. In mostcases, these have been produced us-ing multistage processing often includ-ing selection, cutting, peeling, scrub

COSMETIC FORMULATIONS

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bing, leaching, roasting, steaming andso on, and often at precisely deter-mined times of day or season. An Ori-ental plant drug derived from one partof a herb, for example the flower, canbe available in numerous forms, eachdiffering from the other in terms of theirchemical constituents, and differingagain from the fresh or unpreparedflower. During the production of plantdrugs, according to traditional Orien-tal wisdom, the method of preparationwill determine the active ingredientsthat may be present. These variouspreparative techniques give rise to theformation of preparation-specificmoeities that are termed allied plantdrugs. Such drugs are considered veryspecific and individual in their action.The ancient Chinese authors of the

original pharmacopoeia do not refer atall to the science of cosmetics, buthave compiled a wealth of knowledgeon herbs and herbal formulae that arespecific to the treatment of skin, scalpand hair conditions. Thus, what wemight refer to today as a moisturisinglotion, is considered by the ancientChinese physicians and their scribesto be a lotion or ointment for the treat-ment of dry or peeling skin.Although minor components exhib-

iting unique therapeutic propertiesmight be present through the use of aspecific preparative method, the basicchemicals present in Oriental herbsstill belong to the same broad catego-ries described in Botanicals - Back toBasics (SPC, October, November1991). So, regarding the use of Orien-tal herbs in contemporary cosmetic for-mulae, plants rich in tannins for theirastringent action, saponins for cleans-ing and mucins for moisturising are im-portant. But the more detailed andbetter documented studies on plantsavailable from the Orient have revealedcomponents with more specific activi-ties, such as those active in alleviat-ing dandruff or for the treatment ofalopoecia.Although the ancient Chinese oint-

ments were often oil based, it is nowpossible to obtain both plant extractsand herbal formulae as hydroglycolicextracts, making them eminently suit-

able for incorporation into modern West-ern cosmetics and toiletry formulations.It is also interesting to note that theseherbs have been used in and on man forover 2,000 years. They have not beenanimal tested. They have, in effect, beenthe subjects of perhaps the longest everhuman testing regime. Over that period,any herbs exhibiting toxic side effectswill have been replaced or will have hadtheir toxicity ameliorated by the additionof detoxifying herbs.It has been possible to define 12 dis-

tinct functional categories relating toskin, scalp and hair conditions into whichmost Oriental herbs can be placed.These are shown below with a three-let-ter code, which will be used, in the sum-mary table of applications for some indi-vidual herbs and herbal formulae. For thesake of simplicity, the herbs will be dis-cussed using only the four major head-ings.

SUN CAREl against dry skin conditions ADSl against sunburn andsunburned conditions SSS

B ATH CAREl for soothing and relaxing baths SRBl for stimulant baths SSB

SKINl invigorating and tightening ofslack skin ITS

l regeneration of tired, reddened skin RTSl revitalisation and strengthening of the skin RSSl against oily or greasy skinconditions O G S

HAIR AND SCALPl against dry, brittle hairconditions DBH

l against greasy hair conditions O G Hl for normal hair and scalp NSHl against dandruff and itchyscalp DIS

Chinese herbs and herbal formulae usedfor the treatment of skin and hair condi-tions were ascribed certain status withinthe various Pharmacopoeia and Herbals.Guan Yao, for example, is the status of

‘officinal’ remedy granted in all ancientImperial Pharmacopoeia, the Han-Ching of the 11th century and the PenTsao Kang Mu. Tsao Yao is a domes-tic or Secret Family Remedy featuringin publications such as the Shan HaiChing of Medicine of 250 BC and thelater I Ching. Descriptions of the prepa-rations also appear in various compila-tions of herbal remedies such as theShan Hai Ching of Medicine, ThousandGolden Prescriptions or the Golden Mir-ror of Medicine. These differentiate theformulations into Mian Yao, facialmedicine for skin beautification and thetreatment of undesirable skin condi-tions, or Ruan Gao, ointment for thetreatment of skin conditions.The most usual vehicle for applying

these drugs to the skin was a fragrantoil, or sesame seed oil. Lard was alsocommonly used, sometimes mixedwith vegetable wax, bees-wax or white,insect wax. An alternative method ofapplication was provided by the use of‘Chewi’ or medicated baths, where im-mersion was often a favourite way oftreating skin disorders.

SUN SPECIALITIESA variety of Oriental plant extracts aresuitable for inclusion in sun care prod-ucts. Many of them have a long andinteresting history of use in the Orientin preparations designed to amelioratethe effects of excessive sun, heat anddryness. At molecular level, they tendto be species rich in mineral salts andmucins which moisturise and regulatethe moisture content of the skin, some-times working in conjunction withtannins which exhibit beneficial astrin-gent effects. Hui Xian is an Oriental veg-etable of the species chenopodium. Thewhole flowering tops have traditionallybeen used in preparations for the pre-vention and treatment of sunburn. In ad-dition to being rich in mucins thatmoisturise and aid moisture retention,they also contain anthraglycosides andcinnamate esters which are effectiveUV adsorbers.Ancient records indicate that the

plant was utilised as the basis of prepa-rations used daily on workers at theImperial kilns, protecting them from the


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fierce localised heat generated by thekilns. This was presumably a functionof the hydrating effect of the mucinsrather than the presence of cinnmateesters and anthraglycosides as theburning effects here would be infra-redrather than UV induced. Hui Xian issuitable for inclusion in all sun and af-ter sun care formulations. The curedroots of Ho Shou Wu, a polygonumspecies sometimes known in theWest as Fo-Ti, are rich in mineral salts,tannins and mucins. Water take-upand retention in the skin is promotedand further supported by the slightlyastringent action of the tannins. Theproduct is recommended for all typesof sun preparations and moisturisingcreams. An extract produced from theflowers, germ and stamens of PoZhulin Hua, Water Nymph Lotus, isrich in moisture regulating mineralsand again is recommended for use inafter sun preparations.Tung Kua, the Oriental Giant Gourd,

also contains significant levels of min-eral salts and mucins. In Japan, it hastraditionally been used for general skincare formulae and in particular for thetreatment of prickly heat damage tofacial skin. It is one of the most impor-tant weapons in the Geisha’s armouryof skin care ingredients for rejuvenat-ing and keeping the skin soft, suppleand young looking. Wu Qing, the Ori-ental rape-turnip, is another planthighly prized in terms of general skincare and used for the treatment of sun-burned skin. Here, the extract is pre-pared from the seeds, leaves andbulbs. The efficacy of Hua Jiao, theSchewan Pepper berry, in various folkremedies for the treatment of reddenedand sunburned skin relies on the as-tringent action of tannins which arepresent in significant quantities in theberries and flowers.Long Xu Cai, Dragon’s Tongue,

known in Japan as Heaven Grass, isa seaweed of the Laminaria family.With the noted anti-flammatory effectsof iodine salts and the moisturisingeffects of mucins, it is a favourite in-gredient in sun care preparations. It iswidely used in the Ta Sha, ‘Great Heat’of July and August as protection

against sunburn and excessive drying ofthe skin when a decoction is used to washthe face which is then fan dried, ratherthan towel dried.Many Imperial and aristocratic Chi-

nese families had their own secret reci-pes often using high quality thallus ofLong Xu Cai imported by special couri-ers from Japan. The recipes have beenhanded down through generations to pre-serve the revered pale facial characteris-tics of the aristocracy, for a suntannedand dried face were considered lowly andpeasant-like.

B ATHING BEAUTIESA wide variety of Oriental herbs are usedin bath preparations. Traditional medi-cated baths, ‘Chewi’were designed tohave therapeutic effects not only on theskin but also on the whole body throughinhalation of volatile essential oils. (Isaroma-chology really a new concept?)Foam baths and shower gels whichdominate the bath care shelves of todaydid not exist in traditional Oriental for-mulations. However, some of these herbshave now found their way into modernJapanese bath care formulae.Long Xu Cai, already identified as a

valuable ingredient of sun care formulae,is also a preferred ingredient in bathpreparations, particularly in the summer.When communal baths were common-place, Imperial decrees commanded that

the attendants at public baths add theLaminaria thallus during the Great Heatperiod, fresh in coastal regions andsemi-dried in Western and Northernareas. Local peasants often use HuiXian, a common vegetable, in conjunc-tion with Long Xu Cai for summerbaths and this combination is alsofound in traditional Japanese formula-tions.A herbal formula, Yuan Xiang Hua

Gan Cao, translated as Imperial fra-grant flower with licorice, is based onthe herb Ling Ling Xiang, Orientallovage. In the general classification ofChinese medicines, this herb is con-sidered an ambassador class drugand in this formulation, which origi-nated in the records of an ImperialPalace physician, the Ling Ling Xiang,whole herb with flowering tops, isneutralised by the addition of licoriceroot, jujube fruit and aged lime peel. Itwas used for medicated baths, oftenas a remedy for the effects of summerheat. Due to the cost of the herb, itsuse was restricted to the higher ech-elons of Chinese society. At molecu-lar level, the formulation contains mu-cins for hydration, astringent tanninsand flavonoids that stimulate periph-eral blood circulation. Its soothing ef-fects in bath preparations result fromcertain essential oils.The flowers of Maoxiang, sweet

grass or geranium grass, are widelyused in Oriental folk remedies for thetreatment of damaged, reddened orvery tired skin. In traditional bath prepa-rations the soothing effects of the es-sential oils are particularly valuable.Although foam baths favoured in theWest have not historically existed inthr Orient, some modern Japanese toi-letries manufacturers are now usingthis and similar products in foam bathpreparations. The relaxing effect on thewhole body is supported and enhancedby the circulation stimulating effectsof the flavonoids where particular ef-fect is noted in the peripheral circula-tion of the skin.Similar use in contemporary Japa-

nese foam bath formulations is foundfor Peilan, the herb, Eupatorium. Hereagain, the relaxing effects on body and

Hua Jiao: Schewan Pepper berry


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mind induced by the essential oils areenhanced by the circulation stimulat-ing effects of the flavonoids. The wholeherb complete with flowering tops wasfavoured in traditional ‘Chewi’. A simi-lar combination of essential oils andflavonoids is obtained from the aerialparts of Qing Hao, Chinese Wormwoodand again the extract is favoured inrelaxing bath preparations.The fruit and flowers from the Girl

Chastity Flower Tree, Nu Chen, areused in formulations which, if takeninternally, act as a tonic for the fivecentres and five viscera and when usedexternally also exhibit beneficial ef-fects, for example, in ‘Chewi’, medi-cated baths and in skin and hair careformulations. Many Imperial and aris-tocratic families have their own TsaoYao, Secret Family Remedy, based onNu Chen used in conjunction withsesame, giant gourd, cucumber, aloe,Dragon’s Tongue or thousand mile fra-grant flowers etc. Matsumara’s bookof 1870 entitled Chinese Plants listsboth internal and external therapeuticapplications and regards Nu Chenhighly for use in skin and hair careproducts for the middle years of wom-anhood. In Japan, many commerciallines are marketed using it.For stimulating baths, the use of

Biao Beng Li, the Orientalbrambleberry, effects an activation andvitalisation of the skin and whole bodythrough the action of the circulationstimulating flavonoids andprocyanidines. Similar vitalisation isalso achieved using Po Zhulin Hua, richin flavonoids and vitamins.Tan Shen, Oriental astral sage, is

highly regarded for use in bath prepa-rations by Imperial and aristocraticfamilies. The roots, flowers and leavesare all used and a herbal formula com-bining Tan Shen with royal jelly andpropolis was used by Ching DynastyImperial Manchu families for their dailybaths. In Japan, Heaven Grass is of-ten added to the formula and the con-sumer sometimes adds milk to thecommercial preparations. Essentialoils and flavonoids combine to invigo-rate and stimulate the skin, body andmind, saponins cleanse and soften, vi-

tamins activate and tannins exhibit theirnormal astringency. Tan Chen is one ofthe most important Chinese herbs forbath care.The leaves, bark and flowers of the

Chinese Cosmetic Tung Tree are usedin the production of I Tung extracts. It isan empirical natural remedy with almostunlimited applications in cosmetics for-mulations. In bath care preparations, itssoothing and anti-spasmodic effects areespecially important. An interesting Ori-ental application for I Tung is for thepreparation of daily relaxing baths formental patients, used for two days ei-ther side of the full moon. The formula-tion consists of I Tung, Tan Shen , a pin-head of opium, licorice, musk andzizyphus jujube.

SKIN SOLUTIONSMany Oriental herbs are utilised in skincare formulations. As discussed earlier,the concept of cosmetics did not existin ancient China, but many preparationsbased on herbs were developed and usedfor the treatment of a variety of skin con-ditions; dry, wrinkled, reddened etc. Somany of the more valued herbs and plantsused in skin care formulations tend tobe rich in mucins and mineral saltswhich regulate moisture in the skin. Theyare also rich in amino acids that tightenthe skin, so removing surface imperfec-tions such as wrinkles, flavonoids that

stimulate the peripheral blood circula-tion, tannins that exhibit stringent ef-fects and proteins that improveelesticity and strengthen the skin.One of the more important plants

with the status of both Guan Yao (offi-cinal remedies) and Tsao Yao (domes-tic remedies) is Hua Gua, the Orientalcucumber. Hua Gua is particularly rec-ommended as being beneficial to theQi circulation in facial skin, where theaction of the amino acids tightens theskin effectively, reducing the severityof age and laughter lines. The pres-ence of mucins and mineral salts regu-lates and retains the moisture contentof the skin. Hua Gua is known asGrandmother’s Younger Face Salve’and now appears in many productstargeted at middle-aged women. InOriental folk remedies it is used formany skin conditions including sooth-ing and stimulating tired and reddenedskin. The inflorescence of Mao-xiang,Sweet Grass, also contains this com-bination of flavonoids and amino ac-ids, again suggesting a use in anti-wrinkle products.Perhaps the most important herb

used in Oriental remedies and formu-lae for moisturising the skin is TungKua, the Oriental giant gourd. Thewhole fruit including the seeds andskins is used and in traditional Orien-tal applications it has the status ofGuan Yao, both in ImperialPharmacopieas and in the Pen Tsaoand is also listed as Tsao Yao, domes-tic or Secret Family Remedies. TungKua is also listed in the I-Ching (Bookof Changes) as a food item as well asa medicine for internal and topical ap-plications. It is rich in mucins, mineralsalts and amino acids and is suitableas a moisturising agent and moistureregulator. It is recommended for usein all moisturising creams, lotions andmasques. Additionally, the amino ac-ids have the effect of tightening looseand stressed skin, helping to retain ayoung, fresh and firm complexion.The cured roots of Ho Shou Wu are

rich in mineral salts and mucins, whichpromote water uptake and retention,and, when combined with the astrin-gent action of tannins, make the prod

Tan Shen: Oriental astral sage


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uct eminently suitable for use inmoisturising creams and lotions. Asdescribed earlier, the product is par-ticularly effective in sun care products,and, with its adaptogenic propertiesbeing of a similar status to those ofginseng, its application in cosmeticsis almost limitless.The seeds, leaves and bulbs of the

Oriental turnip, Wu Qing, are also re-ported in the I-Ching as being usedwidely in food, internal and topicalmedicines. Wu Qing is commonlyused in Oriental remedies for skin andhair care either by itself or in conjunc-tion with other ingredients. Recom-mended in formulae for crowsfeet,laughter lines and wrinkles, skin erup-tions, inflamed skin, sun damaged orfrostbitten skin, it is actually recom-mended for most of the Chinese clas-sical 36 women’s diseases. In Japan,it has remained for the past 2,000 yearsand is believed still to be used by theprestigious, modern Julin CosmeticHospital in its skin care creams and inpreparations developed to aid the heal-ing of facial surgery wounds. Wu Qingis an empirical, natural remedy andmay be recommended for inclusion inall types of skin creams. Its function-ality results from the presence in theextract of hydrating mucins, anti-in-flammatory essential oils and protec-tive phytosterols.Wu Tung, the Moon-Cake Seeds

Tree, also known as the Japanese Cos-metic Tung Tree, is the source of anextract based on the seeds, leaves andflowering stalks that is rich in mucins,amino acids and phytosterols. Like W uQing, it is widely used according to theI-Ching and is commonly referred to inremedies for facial and skin care ei-ther alone or in combination with otherherbs. Wu Tung, has almost unlimitedapplications in cosmetics formulationsbut is particularly recommended forrevitalising creams, moisturisingcreams, day and night creams and inspecial preparations for normalisinggreasy skin. The presence of aminoacids also performs a tightening func-tion on the skin making Wu Tung suit-able for use in anti-wrinkle preparations.

Long Xu Cai, Dragon’s Tongue, in addi-tion to its widespread use in sun andbath care preparation, is also a favouredingredient for skin creams. The hydrat-ing effects of the mucins combined withthe activating and regenerating proper-ties of vitamins make it suitable for usein the formulation of all moisturisingcreams. The skin tightening effect ofamino acids also suggests a possibleuse in anti-wrinkle creams. Biao BengLi, Oriental bramble berries, rich in cir-culation stimulating flavonoids andprocyanidins, are an excellent ingredi-ent in creams and lotions designed toactivate and regulate the epidermal skincells.The berries, flowers and to a much

lesser extent the bark of Hua Jiao,Schewan Pepper, feature in both GuanYao and Tsao Yao remedies. Rich intannins exhibiting strong astringent prop-erties and flavonoids those stimulate theperipheral blood circulation, the productis highly recommended for stimulatingthe Qi blood circulation in large poredskin and for reducing the excessive se-baceous secretions of greasy skin. Xinyi,unmatured flower buds of magnolia, arerich in tannins, flavonoids and phytoster-ols. Used in traditional Oriental remediesfor damaged, tired and reddened skin,beneficial effects have been empiricallynoted with large pored skin and exces-sive sebaceous secretions, suggestingits use for normalising greasy skin.Po Zhulin Hua, Water Nymph Lotus,

is an important ingredient in a variety ofskin care preparations relying on themoisture regulating properties of mineralsalts, the circulation stimulating fla-vonoids and the activating and vitalisingaction of essential oils and vitamins. Itis particularly suitable for day and nightcreams and in the Orient it is revered forits ability to restore natural skin tone.Flower petals of chrysanthemum, Juhua,and the petals and roots of Bai Qi, theChinese Violet Orchid are both used inOriental folk remedies for soothing andstimulating the skin. In each, the pres-ence of proteins has been empiricallyobserved to strengthen both the skin andhair. I Tung, which has the status ofGuan Yao in all officinal Imperial

Pharmacopoeias and the Pen Tsaoalso appears in Tsao Yao, Secret Fam-ily Remedies, is considered an empiri-cal natural remedy. At molecular levelI Tung is very similar to chamomile,containing both azulene and bisabololswhich exhibit soothing and anti-inflam-matory properties. It is also noted forits revitalising effect on the skin and inaddition to wide-spread use in bath careformulations it is a valuable ingredientfor skin creams. Nu Chen, like I Tung,contains the anti-inflammatory azuleneand is a favourite ingredient of facecreams, being particularly beneficial forsoothing and stimulating tired, dam-aged and reddened skin.Two further herbs, An Mo Le, Wu

Feng Tonic Plums and Gao Ben Hua,Chinese lovage flowers are used in tra-ditional skin care remedies. An Mo Leis a common tonic for peasants and isconsidered a ‘poor man’s ginseng’. Itappears in many skin care remediesand herbal formulae. Wu Pei Tzu HaiNa, Imperial galls with henna, is also ahighly regarded material used in tradi-tional Oriental skin care compositions.The whole galls scraped from the leavesof Chinese henna are used. In ancientImperial China it was used by all highersociety women for both skin and haircare preparations and even today it isa much prized ingredient. In additionto the beneficial properties of mucins,phytosterols and amino acids, itsunique functionality stems from thepresence of naphthaquinones that aug-ment the natural yellow pigmentationin the skins of Oriental women. GaoBen Hua, while of more importance inhair care, is also used in traditional folkremedies for soothing and stimulatingtired, damaged and reddened skin. Thisfunctionality is attributable to the pres-ence of anti-inflammatory, soothingsesquiterpenes and the circulationstimulating action of the flavonoids.

Acknowledgement: Staff of the Dr MBalasubramaniam Plant Medicines Re-search Institute in Kraub, Thailand;Bogor, Indonesia; Osaka, Japan;Hangzhow City, Zheijiang, China; andSingapore.


26


INTERVIEW

28

DOW CORNING’S CONTRIBUTION TO THE BEAUTYAND PERSONAL CARE MARKET

EXCLUSIVE INTERVIEW WITH A PARNA KHURANA

How does Dow Corning contributeto Beauty & Personal care market?With headquarters in Midland, Michi-gan and application and technical ser-vice centres throughout the world, DowCorning has more than 65 years ofextensive formulation experience todeliver multi-functionality, innovativeformulations, and fit-to-use applica-tions. To help create beauty and per-sonal care products that provide con-sumers with a unique sensory experi-ence before, during and after applica-tion, Dow Corning is evolving from itsroots as a leader in silicon-based tech-nologies by meeting challenges in newand expanded ways, custom pro-cesses and solutions. By going be-yond silicones, Dow Corning providesperformance-enhancing materials forhair and skin care products that offersensory benefits that formulators canmeasure and a difference that consum-ers will notice.

How long had Dow Corning beenpresent in India and what is yourstrategy for India?Dow Corning has had a presence inIndia for more than 30 years – we setup our India operations in the year2000, so that we could serve our cus-tomers in this region more effectively.Our strategy for India has been fo-cused on meeting the needs of ourcustomers exactly. With our two-brandstrategy, we focus on delivering valueto both the efficiency-seeker custom-ers and the innovation-seeker custom-ers. Our strategy for personal carecustomers has always been to workclosely with them to deliver innovation,and match their unique needs with ourcustomised solutions.

What are the key trends in the skincare and personal wash segment?As per Euromonitor International, a glo-

bal market research firm, the Indian skincare market has been growing at 13%CAGR over the last five years. The keytrend of growth in Indian skincare wason Nourishers/ Anti-agers category, thatsaw a robust growth of 22%+. Consum-ers are realising the effects that hecticlifestyles and stress have on their skin.As a result there has been a marked pref-erence to use anti-aging and nourishingproducts in India. Skin whitening prod-ucts, which constitute the bulk of facialmoisturisers, account for most of thesales in India. This trend has been rein-forced more with the launch of skin whit-ening products for men. Suncare, thougha relatively smaller category withinskincare, fared well as the consumerscontinue to be informed of potential dan-gers to skin due to exposure to UV rays,and how suncare products help preventthe damage to the skin.The bath and shower market grew at

9% in 2009. With consumers willing tospend more to buy products with value-added benefits, consumer trials for nicheproducts such as liquid soap, handsanitisers and shower gels gaining mo-mentum, most manufacturers in Indiahave upgraded their bath and shower port-folio. Within soap bars, consumers in-creasingly traded up from regular prod-ucts to products with value add benefits.Products with moisturising ingredients didvery well in Indian market. Another keytrend being noted in bath and showergels is addition of natural ingredients andextracts. Soap bars market continued toexpand with hygiene consciousness andurban consumers trading up to productsgiving sensorial benefits.

Which are Dow Corning’s solutionsfor Personal wash that help the con-sumers in India?Dow Corning provides solutions for soapbars and personal washes – these solu-tions are emulsions that enhance soap

foam quality as well as quantity, thusenhancing the sensorial assessment.Skin softness during and post appli-cation was found to be enhanced withsoaps containing silicones as com-pared to a control soap. Consumerstoday are increasingly looking formoisturisation benefits. These emul-sions can provide increasedmoisturisation for longer duration asagainst a control soap, without anysilicone. Also silicone fluid blends canhelp to reduce mush/slough formation,reduce cracking and provide high gloss& shine to soap bars.

How do the Dow Corning productshelp in anti-ageing products?By improving the visual and sensoryeffects of anti-aging skin care products,silicone science is helping providethose looking to maintain a youthful ap-pearance with effective alternatives toinjections and surgical procedures. Sili-cones can help provide a powdery feel,luxuriant texture, silky smoothness,easy application, and reduced tacki-ness in lotions, creams and powders.Those characteristics are especiallyimportant in the rapidly growing anti-aging cosmetic product category.

How do silicones help in suncarerange of skincare?Consumers are also embracing suncare products as an important part ofa regular skin care regimen to preventpremature aging. Several silicone ma-terials can help enhance SPF, allow-ing a reduction in the amount of sun-screen needed to achieve a specificSPF

With customers moving to morenatural products, what does DowCorning have to offer?Function and sensory properties arekey to market success, while products

SOAPS, DETERGENTS & TOILETRIES REVIEW / OCTOBER 2010 / 29

with naturally-derived ingredients areincreasingly capturing the attention ofconsumers. The new soy wax can en-able formulators to create novel sen-sory effects with excellent aesthetics,while providing a naturally-derived sub-stitute for petrolatum. These versatileingredients were developed for use inskin care, colour cosmetics, hair careand underarm products. Dow Corninghas a Soy Wax blend that can act asa conditioning agent by providingmoisturization and emolliency. Be-cause it is compatible with a variety ofcosmetic oils, a wide range of struc-tures are possible. Compared to otherwaxes commonly used for stick prod-ucts, formulators can use the soy waxto create a more pliable stick or softsolid, and by increasing its concen-tration, hardness can be adapted fordifferent applications.

What are the recent innovations byDow Corning that help match the

customer trends?Some of our recent innovations includemulti-functional cosmetic powders, forinnovative textures and novel visual ef-fects in skin care. Consumers today wantcolour cosmetic and skin care productswith innovative textures and novel visualeffects. At Dow Corning, we have devel-oped four new cosmetic powders to

match unmet needs, and give accessto benefits of silicone combined withother powder technologies. Key ben-efits include compaction aid and pow-der flow, sebum and oil absorbency,thickening properties, optical effects.Consumers can formulate a range ofskin care products such as creams,gels, face masks, foundation powders,pressed and loose powders, lipsticks,mascara, eye lines, nail polishes etc.Other recent innovations from Dow

Corning include silicone emulsifiers.These emulsifiers combine high mo-lecular weight with unique flexibility oftheir siloxane chain to help you over-come the challenges encountered withorganic emulsifiers. Dow Corning offersan array of emulsifying solutions de-pending on customer’s oil phase choiceand the viscosity to be achieved, aswell as tools to help choose the mostappropriate emulsifier for your needsand guidelines to help you formulatingwith it.

INTERVIEW

By improving the visual andsensory effects of anti-ag-ing skin care products, sili-cone science is helpingprovide those looking tomaintain a youthful appear-ance with effective alterna-tives to injections and sur-gical procedures.

“


According to a consumer survey car-ried out in 2008 by the Mumbai-basedmarket research agency IMRB, Indianfamilies want perfect stain removal. Inthe survey, a staggering 70% ratedfunctionality and performance as themost important criteria of washing pow-ders. More specifically, tough stainremoval, whiteness, and colour carewere the essential functions. The con-sumers considered removal of foodstains to be particularly difficult.

GENTLE ACTION, EFFICIENTSTAIN BUSTINGEnzymes are mild and gentle to fab-rics, but they are also superior, bio-logical stain busters. Tests on cottonknits and wovens have shown that anonenzymatic washing powder onlywashes out half of the stains (malt-based food stains), whereas a wash-ing powder with enzymes removes al-most all of the stains. Washing pow-der that contains enzymes can thusmeet the demands of Indians con-sumer who are struggling to get rid ofvarious stains, including those that arebased on lipids.Many foods contain lipids since they

are part of most meat structures andare found in dairies, cooking oil andegg yolk. But it is not all about food.Lipids are also inherent in bodily fluidssuch as sweat, which is hard to avoidin hot and humid subtropical climateslike that of India. Unfortunately, the oily

FATS AW AY WITH DETERGENT ENZYMES

ANIL TRIPATHI,

Account Manager, Novozymes Line Marcher, Communications Specialist, Novozymes

organic compounds are hard to breakdown, but adding a lipase enzyme to thewashing powder can do the trick.Lipases improve the removal of body

stains, mineral oils, and fat from fabricsurfaces and, in particular, from collarsand cuffs. Lipases also prevent lipids andlipophilic colorants from depositing onpolyester and cotton garments. Fattrapped inside the fibers can be brokendown by a lipase into glycerol and fattyacids and carried away by the wash so-lution. This means that if fat stains arestuck in the fabric from previous nonen-zymatic wash, lipases clean these stainsthat may have seem to have been washedaway but reappear when the fabric isironed. Moreover, lipases are powerfulsupplements to proteases and amylasesbecause they accelerate the breakdownof lipids into soluble fatty acids and glyc-erol.

MORE THAN SUPERIORSTAIN REMOVALA cure-all is what Indian consumers want– a washing powder that whitens, bright-ens, offers color care, keeps clothessmelling good, and most importantly getsrid of those hard-to-remove stains. How-ever, adding enzymes to a washing pow-der also provides other benefits, such asincreased lifetime of clothing and reducedchemical consumption. In many appli-cations, enzymes replace harsh chemi-cals and allow processes to run undermild conditions. Still, enzymes show flex-

ATTENTION

KINLDY NOTE AND USE OUR NEW E-MAIL ADDRESS:[email protected]

ibility and high performance across awide range of temperatures and in handor machine wash.Enzymes are nonliving, biological

catalysts derived from the cells of liv-ing organisms like microbes, plants,or animals. Worldwide, the majority ofwashing powders today contain en-zymes. With their different abilities toattack protein-based, starch-based,mannan-based, and fatty stains, en-zymes are key ingredients for fightingstains. Although enzyme technologyhas been used around the world formore than 40 years now, most Indianwashing powders do not contain en-zymes. Nonetheless, many detergentmanufacturers in India are increasinglyshowing interest in enzymes and theirability to remove stains effectively.Adding enzymes to washing pow-

ders opens up many new possibilities.In Europe and the US the compactiontrend is on the rise, and enzymes helpmaintain performance while reducingformulation volumes. In fact, addingenzymes to the detergents can reducedosage by up to 30% and still improvethe performance of the washing pow-der. The beauty of the reduced dos-age is that it meets today’s high de-mands for companies to have a sus-tainable profile. Reduced environmen-tal impact, savings on transport, pack-aging, and raw material inventory iswith enzymes a reality for the wash-ing powder manufacturer.

CONSUMER SURVEY

30


PULSE OF THE INDUSTRY

31

The verdict is out. The Bombay High Court has passed anex parte ad interim injunction in favour of Godrej ConsumerProducts Ltd (GCPL) in its case against a Himachal Pradesh-based company Gandhi Soaps and Detergent Industries.In response to the petition filed by GCPL, the Bombay HighCourt has restrained Gandhi Soaps and Detergents frommanufacturing and selling their toilet soap brand ‘GandhiNo.1’ as it is identical to GCPL’s toilet soap brand GodrejNo.1.In addition to the similarity in the brand name, the pack-

aging is a replica of Godrej No.1 including the layout, colourcombination and the font used, according to GCPL. Com-menting on the growing menace of counterfelt brands, A.Mahendran, Managing Director, Godrej Consumer ProductsLtd, said, “The look-alikes and the spread of counterfeits ofproducts across regions is a major concern for the industry.Counterfeits and pass-offs take of products for the companybut also employment and revenue loss to the government.”According to Mahendran, GCPL invests a significant part

of its revenue to develop innovative products. “We hope tocounter such cases of counterfeiting in the near future.” Headded. At present, Godrej No.1 is a market leader in NorthIndia with a stronghold in the states of Punjab, Haryana,Himachal Pradesh and Uttaranchal. Today, one of the ma-jor issues in the Indian FMCG industry is the proliferation ofcounterfeit brands.According to industry analysts, the magnitude of the prob-

lem in increasing everyday. In the FMCG sector alone, thegovernment is currently losing Rs.2,000 crore annually intaxes due to counterfeits.

HUL TO AGAIN LATHER ATFLAKING SHAMPOO BRAND

Hindustan Unilever (HUL) plans to rev up its anti-dandruffshampoo, Clear. The brand has been trailing Head & Shoul-ders from Procter & Gamble (P & G) by a large margin,despite its relaunch over a year before.Head & Shoulders has an overall value share of about 15

per cent, while Clear, which was earlier Clinic. All Clear,has about five per cent, according to analysts. By over all

GODREJ GETS HC RELIEF ONDUPLICATE SOAP BRAND

The Godrej No 1 soap brand (right) and its duplicate

here, the reference is to share in the total shampoo marketin the total shampoo market of Rs.3,600 crore.In the anti-dandruff segment, 22 per cent of the over all

shampoo market, Head & Shoulders has a value share of58-59 per cent, while Clear has 35-36 per cent, say ana-lysts. They are, respectively number one and two in theanti dandruff segment.Gopal Vittal, Executive Director, Home and Personal Care,

HUL, admits “There is a job to be done on Clear. We wouldlike to see Clear playing a stronger role in our portfolio.”Adding, “Our hair category performance has been a

source of pride for us. We continue to motor strongly onDove. Clinic Plus, which was repositioned last year as ashampoo for long and strong hair, has done well, too, whileSunsilk has held on. Clear is one brand we are determinedto turn around. We are working on some strong plans forit.”Clear is, at the moment, endorsed by actress Bipasha

Basu, with the advertising around the promise of “Zero Dan-druff. Just Fabulous Hair’. Incidentally, a Clear ad featuringBasu was in the news recently, thanks to what appeared tobe a muted reference to P & G’s Head & Shoulders in thecommercial. P & G wrote to the Advertising Standard’s Coun-cil of India, which sought a response from HUL on the mat-ter.

ENTRENCHED NO.1Experts say breaking the stranglehold of Head & Shoul-ders, a strong P & G brand globally, may not be easy, giventhe promise of anti-dandruff plus beauty that the shampoohas been playing out to consumers in India. “It is not justan anti-dandruff shampoo,” says an executive with a fastmoving consumer goods company, who did not wish to benamed, since he is not authorized to speak with the media.“People use it as a regular shampoo, too.”Typically, dandruff shampoos in India, say analysts, are

perceived to he harsh, with consumers using it for sometime, then moving on to allied beauty brands. Head & Shoul-ders’ positioning as dandruff plus beauty has helped it main-tain leadership in the market, they say. P & G’s brand hasa number of variants, too, including Smooth & Silky, ItchyScalp Care, Anti-Hair Fall, etc. The products is priced atRs.69 for a 90ml bottle. Clear is also priced at Rs.69, butfor a 100-ml bottle.Clear has been revamping its formation and launched five

variants—Clear Active Care, Clear Ice Cool, Clear HairfallDefense, Clear Soft Gloss and Clear Radiant Black. Thereis also a variant targeted for men, say persons in the know.“Even then, taking on Head & Shoulders may not be easy,”says the same FMCG executive.In reply to a mall a P & G spokesperson said, “Like all

our brands, Head & Shoulders will continue to focus on touch-ing and improving the lives of more consumers, more com-pletely.” She declined to divulge marketing plans, citing com-pany policy.



32

MUNNI is no longer a head-ache for Emami. Afterreaching an out-of-courtsettlement with ArbaazKhan Production for theuse of words Zandu Balmin its chartbuster Munnibad-naam hai, Emami isnow ready to cash in on thepopularity of the Dabanggsong with new TV commer-cial to be aired within twodays. Emami also plan-ning to rope in MalaikaArora Khan, who playedMunni, as brand ambassa-dor for Zandu Balm, said asenior company official.“We are set to release

a new Zandu Balm promo,

MUNNI ZANDU BALM HUIFOR EMAMI

which has clipping fro the Dabangg song, in a day or two.”said Mohan Goenka, director Emami.“We are also planning to rope in Malaika Arora Khan as

brand ambassador to promote Zandu Balm, but nothing hasbeen finalized yet. “ Mr. Goenka added. Emami willdiscontinue the TVC if they manage to rope in Malaika AroraKhan.The makers of brands such as Fair & Handsome, Boroplus

and Navratna are keen to use the opportunity to pep upbrand Zandu and target a younger audience. JagdeepKapoor, Managing director of Samsika Marketing Consult-ants said: This is a win-win-win situation for the brand,Malaika and the film’s producer. It has connectedBrand Zandu with a trendy, young audience and has rejuve-nated it.”Ad guru and Genesis Film Production Managing Director

Prahlad Kakkar acted as a mediator between Arbaaz KhanProduction and Emami. “Following the settlement, the twowill now have an opportunity to cross promote each other.Zandu is an old brand and used by people over a certain agegroup. The song has pitched it into a younger arena, “saidMr. Kakkar.The Rs.1000-crore FMCG company has been trying to

reach out to a younger audience with its Virender Sehwangstarer Zandu Balm advertisement.However, the Dabangg controversy has made Zandu Balm

more popular. The controversy has created curiosity aboutthe brand. Whether it was deliberate or accidental, the com-munication is working so, it will hopefully give positive divi-dends to Zandu’s top and bottom line,” said Mr. Kapoor ofSamsika Marketing.

Malaika Arora Khan

GODREJ INTERESTED IN LOCALBUYS, BUT FINDS VALUATIONS

TOO HIGHPERSONAL care products maker Godrej Consumer Productsis interested in buying domestic firms to boost, growth, butvaluations are a determent, the chairman of the $2.5 billiondiversified group said. “Our first priority will be acquisitions inIndia, although there is not much in play here…. All acquisi-tions will be in the areas we understand well—household in-secticide, haircare and personal wash.” Adi Godrej said atthe Reuters India Investment Summit in Mumbai.India is the world’s fastest growing major economy after

China and demand for products such as soaps, shampoos,and hair conditioners are growing fast on the back of risingincomes in the nation of 1.2 billion people. “Typically, valua-tions tend to be much higher than what we are comfortablewith. There is no problem with high valuation if on integration,we get a lot more, “he said.The chairman also said the company was interested in buy-

ing unlisted personal care firm Paras Pharma, which is on theauction block, if the price were right. “At the right price and onright terms we would be interested,” Mr. Godrej said, addingthat the company had not been approached about Paras yet.The company expects revenue to rise 25-30% in the cur-

rent fiscal year ending in March, Newly acquired brands willgrow at 15-20% in 2011-12, he said. “We throw up a lot ofcash in this business, which we will use for acquisitions, mainlyin the developing world,” Mr. Godrej said. In its householdinsecticide business, the company expects revenue to rise35-40% in the September quarter, more than doubling from a15% rise in the previous three months.Demand for insecticides has climbed in India following an

outbreak of mosquito-borne diseases like malaria and den-gue. Almost 1,300 cases, including three deaths, have beenreported in Delhi since June while monsoon rains have madeit worse. The firm is also in the process of merging its con-sumer business and household insecticides business.“We are already working on a project to merge their opera-

tions, they are two separate legal entities, “he said. “As far aslegal merger is concerned, down the road…. We would lookat it, “he added. Godrej will continue to pursue opportunitiesin South Africa, where it has haircare brands such as Rapidoland Kinky, Latin America and Indonesia to balance stiff com-petition in India. “In countries where we are already estab-lished, if there are opportunities to buy brands then clearlywe’ll go for it, “Mr. Godrej Consumer, with a market value of$270 million and paid $ 43 milllion for two firms in Argentina,since the start of the fiscal year in April. It also bought a firmin Nigeria. It bought out the remaining 51% stake in its IndianJoint venture with Sara Lee Corp, Godrej Sara Lee, which isnow renamed as Godrej Household Products, for 185 millioneuros ($249.50 million), Shares of the firm have jumped 53%this year, outpacing a 15% rise in the main index. —Reuters.

SOAPS, DETERGENTS & TOILETRIES REVIEW / OCTOBER 2010 / 33


Consumer goods group Unilever Plc/NV will buy U.S hairand skin care company Alberto Culver for $ 3.7 billion in thelatest move to rebalance its portfolio towards higher growthlines. Unilever’s biggest acquisition in a decade will addbrands such as VO5, TRES emme and Nexxus to Unilever’sexisting Dove and Sunsilk, and make it the world’s leadingcompany in hair conditioning and the second largest in sham-poo.Analysts said the price of the deal looked high but could

be justified by as-yet unspecified cost savings and by skew-ing, Unilever’s business to more high growth, high margincategories compared to its other food and detergent busi-ness. The acquisition follows a yet-to be completed deal toby Sara Lee’s body care division for $1.3 billion and will alsomark Unilever’s biggest acquisition since its massive $ 24.3billion Best foods deal in 2000.“The initial consideration for Alberto Culver of 14.8 times

EBITDA (earnings before interest, tax, depreciation andamortization) on the face of it looks quite punchy, but webelieve significant but as yet undisclosed synergies willmake the price look more reasonable,” said analyst Gra-ham Jones at brokers Panmure Gordon. The deal valuesAlberto Culver shares at $ 37.50 each in cash which is a19%premium to close of $ 31.48. Unilever Plc shares had risen2.5% to £ 18.38 by 1314 GMT and the FISE All Share indexwas up 0.1 percent, as other analysts said the deal wouldgive Unilever greater hair care sales in the U.S. where it hasstruggled in recent years.The deal will be Chief Executive Paul Polman’s second

biggest purchase since he took over the helm at Unilever inJanuary 2009. Both the Alberto Culver and Sara Lee acqui-sitions are in personal care, the company’s biggest and fast-est growing business line.“Personal care is a strategic category for Unilever and

growing rapidly. Ten years ago it represented 20% of our

turnover, strong organic growth has driven it to now reachover 30%, with strong positions in many of the emergingmarkets,”Polman said in a statement. Its brands will comple-ment Unilever’s existing brands like Dove, Clear and Sunsilkin hair care and Pond’s and Vaseline in skincare, and en-hance the company’s presence in emerging markets suchas Mexico and also in the more mature markets of theU.S., Canada, Britain, and Australasia.Unilever’s proposed acquisition of Sara Lee Sanex

deordorant and Radox body care business, first announcedlast September, is priced at around 10 times EBITDA, arelatively low price to reflect the disparate collection of brandsbeing acquired. The European Union is still examining thedeal and is set to rule by Oct. 26. Analysts expect Unileverto be required to divest some deodorant business to clearthe deal which it hopes to complete in the fourth quarter.Alberto Culver made annual sales of nearly $1.6 billion andEBITDA of over $250 million in the 12-month period endingJune 30, 2010.

GODREJ SOAPS TO COST MOREPersonal care products makers Godrej Consumer ProductsLtd plans to raise soap prices by around 5 per cent, a topcompany official said.“We are looking to raise prices by around 5 percent in the

soaps category. We will need to raise prices because rawmaterial prices have crept up,” Chairman, Mr. Adi Godrej,told Reuters. “The hike will not lead to any margin expan-sion, it will help maintain margins,” he added.Prices of palm oil, a key ingredient for soaps, have been

rising steadily, forcing many consumer companies to hikeprices in the past few days and many to consider hikes incoming weeks. Hindustan Unilever revised prices of its toi-let soap brand Lifebuoy and detergent brands Rin and RinJasmine Fresh. Godrej’s household insecticides businessunder its unit Godrej Household Products Ltd, which hasbrands such as Good Knight, Hit, Jet, is expected to regis-ter strong growth in this quarter.

UNILEVER AIMS FOR BIG HAIRDAY WITH ALBERTO BUY

DR S K SURI, NO MORE!Dr S K Suri, one of the Joint Honorary Technical Edi-tors of our magazine, Soaps, Detergents and ToiletriesReview, has left for his heavenly abode.He was associated with our magazine since many

years. He immensely contributed and was involved verymuch in bringing out the magazine as well as in orga-nizing the Scodet Asia Exhibitions and Seminars.W e pray to the Almighty that the departed soul may

rest in peace.

In grief,ROSHAN WADHERA

O BITUARY



34

WIPRO ROPES IN KATRINAKAIF AS THE YARDLEY FACE

Wipro Consumer Care and Lighting (WCCL) is looking toenhance the London connect in its Yardley range of prod-ucts with Bollywood star Katrina Kaif. Having roped in Kaifas its brand ambassador, WCCL hopes to keep Yardley’sorigins alive, while reaching out to the Indian youth.The company also believes it has to strengthen its com-

munication with Indian consumers.“We felt we had not been talking enough to our consum-

ers in India and are now putting a marketing plan for theregion, starting with Katrina Kaif to endorse. Yardley prod-ucts,: said Mr. Sriram K Iyer, Business Head, Wipro Yardley,WCCL.Being an iconic brand, Yardley must emphasise the heri-

tage values associated with it, Mr. Iyer says. “We want toposition Yardley as classical and international and believethat Katrina Kaif is a perfect match for the brand as shehas a strong London connect among Indian consumers.”Roping in Katrina Kaif is the first of the slew of marketing

activities that WCCL has planned for the Indian market.The company is working on enhancing accessibility to

customers through better distribution.At present, Yardley products are available across 2,000

outlets in the country and this would be doubled in 18months. The company is also planning to strengthen itsdeodorant and soap offerings.Though the talcum powder market (Rs.1,200 crore) is

double that of the deodorants (Rs.600 crore) in India, WCCLwants to grow the deos as it is the category the youthpatronise and is growing at 30 per cent per annum with apenetration level of just two per cent.

HUL COMPLAINT AGAINSTP & G’S SHAMPOO UPHELD

Here’s a new twist to the ongoing ad war between HindustanUnilever Ltd (HUL) and Procter & Gamble India (P & G).The Advertising Standards Council of India (Asci), the self-regulatory body of the Indian advertising industry, has up-held HUL’s recent complaint against P & G’s ‘mysteryshampoo’ outdoor and print advertisements.Battle lines were drawn in the branded shampoo market

when Procter & Gamble launched its ‘mystery shampoo’outdoor and print advertisements on July 23, 2010. HUL’sprimary objection to the claim of “a mystery shampoo’ isthat 80% (8 out of 10) women say Pantene is better thananything else’ as it relies on a very old study of 2008.After reviewing HUL’s complaint, ASCI’s Consumer Com-

plaints Council (CCC) concluded that P & G’s claim –”80%women say it’s better than anything else” – was not sub-stantiated as it was a study on Thailand consumers notIndians.“We are pleased that Asci has upheld our complaint on

XX FAFAI BIENNIAL SEMINARThe Fragrances & Flavours Association of India (FAFAI) ishosting its XX biennial Seminar on the theme “India: TheFuture of F&F Industry” at Hotel Crowne Plaza, 43, Elec-tronics City, Phase 1, Hosur Road, Bengaluru – 560 100on January 28-30, 2011.The conference will have an inaugural function on Janu-

ary 28, 2011 followed by two days of presentations and de-liberations.The presentations will include eminent personalities of

F&F industry and experts from allied areas. A Product Dis-play exhibition will be held in concurrence to the seminarwhich will give an opportunity to suppliers and customers todiscuss and interact about products and processes.For all information regarding venue, registration, hotel ac-

commodation, exhibition stalls, travel plans, advertisementin the souvenir, tentative programme, etc., contact FAFAIat: [email protected] Fax No.91 022 2200 5875 or visit at:www.fafai.org

this misleading claim.” said an HUL spokesperson. Twoyears ago, P & G had dragged HUL to the doors of the Ascion two of HUL’s skin cream television commercials.In a related development, HUL has filed a case in the

Delhi High Court with regard to a disparaging claim beingmade in P & G’s recent advertisement for Pantene. In Julythis year, P & G had put up hoardings which talked about amistery shampoo which “80% women say is better thananything else.”When contacted by HUL spokesperson confirmed the

news. “We have filed a case in the Delhi High Court withregard to a disparaging claim being made in one of ourcompetitor’s shampoo advertisement. However, as thematter is subjudice, we cannot offer any specific comments,”he said.According to a spokesperson from P & G, the company

cannot comment at this stage on Asci order or matters thatare sub-judice. “P & G is committed to adhering to all stan-dard industry practices and legal requirements of the coun-try,” he added. Since January this year, Asci—the watch-dog of the Indian ad industry—has been receiving over 220complaints a month from consumers against mis-leadingadvertisements.After implementing self-regulation guidelines on adver-

tisements of food and beverages last year, Asci has framednew guidelines for automotive advertising in view of dare-devil acts and stunts being shown in television commer-cials. Recently signed a pledge towards responsible mar-keting and advertising, as far as children are concerned.Signatories of the pledge are Coca-Cola, Pepsi Co India,

HUL, Nestle India, Kellongg India, Mars International andGeneral Mills India.

NE W S

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