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Sunday, October 4, 1998

Household insecticides growth dives to 5% 

Namrata Singh  
MUMBAI, Oct 3: Growth in the Rs 450-crore household insecticides (HI) market has slowed down tremendously from a high of 45 per cent to 50 per cent in 1996-97, to as low as 5 per cent today. During 1997-98, the industry growth was 35 per cent.

While the overall HI market has shown a positive growth of around 5 per cent, the mosquito repellent mats category has reported a negative growth of 20 per cent, say industry sources.

Major players affected by the downturn are Godrej HIcare, Tainwala Chemicals and the recent entrant Lever-Johnson. The HI industry is categorised into mats, coils and aerosols. The growth in the mats category last year was around 15 per cent to 20 per cent and 30 per cent in the year before last.

The deceleration in growth in the mats category, which has otherwise been the growth driver, is largely on account of a shift in consumer base to other such modes of insect repellents like coils.

Despite no major price increases undertaken by manufacturers, who were in fact offeringconsumer incentives, the mats category witnessed a negative growth. Industry sources feel that this recessionary trend is likely to continue during the year.

Further, even the entry of large multinationals like SC Johnson (through a tie-up with FMCG major Hindustan Lever Ltd) did not give enough boost to the industry. Industry sources agreed that this kind of a recession was totally unwarranted. The companies were in fact expecting the market to witness a better growth in view of more players coming into the market.

Major brands in the industry are Good Knight and Casper mats, Hit, Jet and Baygon sprays and Tortoise coils. Godrej is considered a strong player in the mosquito repellent mats category with over 70 per cent market share of which Good Knight alone holds 55 per cent. The balance shares are held by Jet and Banish. Godrej has tie-up with Sara Lee of US, which holds a 60 per cent stake in Godrej HIcare. In the coils category, Mortein of Reckitt & Colman has a market share of around 32 per cent,Jet of Godrej with another 21 per cent and old player Tortoise has a share of around 29 per cent.

Of the total market, Godrej HI Care has a share of over 40 per cent. Among the recent entrants, Mortein has reportedly picked up an 8 per cent market share in mats. Raid, from Lever-Johnson, too is said to have garnered a marginal share.

Mats roughly constitute 40 per cent of the total mosquito repellents market in India. Coils form another 20 per cent to 25 per cent while aerosols make up for 5 per cent to 7 per cent of the total market. The balance consists of creams, lotions and liquids used as mosquito repellents.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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