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Pak group seeks to revive pre-partition business in India
Namrata Singh
MUMBAI, Nov 23: This could be more than a cosmetic change. Pakistan's major cosmetics and toiletries brands are seeking to break through the trade barriers that divide India and its neighbour. Two Pakistani cosmetics & toiletries majors, Medora of London (Pvt) Ltd and Kohinoor Chemical Industries, both part of the Allahawala group, have evinced interest in the Indian market. The group's plans initially involve a revival of its brand `Tibet Snow', which was registered in India before Indian independence and partition.The companies are the largest cosmetics & toiletries manufacturers in Pakistan with a combined turnover in excess of Rs 100 crore and can be equated with Lakme Ltd in India. The move, which follows the Pakistani government's liberalisation process and recent bilateral talks with India to promote trade, signals an effort by businesses that moved out of India after partition to revive old ties. Kohinoor Chemical Industries was one such company which had operations in India in the pre-1947 era. Tibet Snow is a leader and attracts considerable demand from Indian consumers, albeit via Dubai. In fact, Tibet Snow, which comprises a range of toilet soaps and other personal products, is still a registered brand in Delhi, according to Medora of London's manager for marketing & sales, Iqbal Ahmed Siddiqi. "We are looking for a joint venture in India, although the company has not decided whether this would be an equity venture or a marketing one. Besides, the company is also looking at initiating trade in terms of sourcing basic chemical raw materials from India," said Siddiqi, who was recently in Mumbai to attend an international conference on cosmetics and toiletries. At present, the company sources basic raw materials from Europe and exports its finished products to West Asia. Sourcing raw materials from India would be a rational decision due to the close proximity. The company is also exploring opportunities to export products to the Indian market, said Siddiqi. Medora of London has a technical collaboration with a London-based company and sells cosmetics under the Medora brandname. The group also manufactures toilet soaps under the Delycia name, which includes a glycerine soap.The growth of the cosmetics and toiletries industry in Pakistan is a healthy 10 per cent, similar to that in India. Demand has been growing rapidly with the recent entry of companies like Procter & Gamble and Revlon. Unilever has had a base in Pakistan for a long time. However, it has not yet introduced its premium cosmetic brand, Elizabeth Arden and Calvin Klein, in Pakistan. While the Allahawala group is diversified into pharmaceuticals and dry cell batteries, its interest in the Indian market is currently only for cosmetics and toiletries, says Siddiqi. Since assuming power in February, Prime Minister Nawaz Sharif has cut taxes and tariffs and unveiled incentive packages for agriculture, capital markets and the banking sector. Trade liberalisation will India is also on the agenda -- assuming he survives his current political crisis.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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