Chennai, June 21: In a bid to consolidate its condom business, TTK-LIG a major condom manufacturer in the country has hived off its glove manufacturing division to TTK Maersk (a joint venture with Maersk Medicals of Denmark), another group company.

TTK-LIG was producing 60 million gloves apart from condoms. The decision to separate this unit and put it in the Maersk stable was made after LIG (the UK collaborator) felt that due to its size the unit would not be globally viable. On the other hand, huge investments were needed to attain capacities handled by MNCs.

On the other hand, TTK-Maersk which is handling medical and surgical equipment (syringes, needles, sutures, blood bags, etc) would be able to handle the gloves division because of the synergies of operation, TTK-LIG managing director J Srinivasan said.

Meanwhile, TTK-LIG is strengthening its condom business in the country and abroad. With a dipping capacity to manufacture 850 million pieces, it is the largest player in the country.

Although it commands 15 per cent share in the domestic market, in the branded segment it has a share of 65 per cent. The Kohinoor brand targeted at the middle class still remains popular, `Fiesta' aimed at the youth market is also catching up.

Now the company is launching a premium brand `Durex' for the up-market segment and the expatriates who prefer only international brands.

TTK-LIG also sells unbranded condoms to the government and with the introduction of Durex, the company can safely claim to have a product for every segment.

The condom producing capacity in the country has gone up from 1400 million pieces to 2200 million with new plants coming up in the country at Nasik and Chennai, which would be EoUs. Existing players like Polar Latex are also increasing capacity to 300 million pieces.

Apart from Polar, JK, Hindustan Latex and Frontline (in Hosur) are the other players in the country. Domestic players are looking forward to the thrust the government is giving to AIDS prevention and family planning - which would help boost the bottom line.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.