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Friday, December 25, 1998

JK Ansell to unveil supplementary products to enhance brand image 

Nitya Varadarajan  
Chennai, Dec 24: J K Ansell, which celebrated the seventh year of its condom KamaSutra, now plans to introduce supplementary products to enhance brand image. These will be in the form of condom-vending machines in prominent places like popular pubs, a lubricant gel, and ticklers (novelty condoms).

The lubricant gel and ticklers will be imported to get a feel of market conditions, but the company proposes to manufacture the gel at a later stage. The packaging is to be subcontracted, to ensure minimal investments. Simultaneously, the company plans to exit from its desi viagra venture, the capsule `Nirvana'.

JK Ansell executive director Aniruddha Deshmukh said that `Nirvana' was being withdrawn from the market as the customer loyalty for desi viagra products was very flighty. "The condoms are perceived to be a serious product, but vitalizer capsules are not viewed in the same manner," he said. There is little brand loyalty in the vitalizer pills, according to the company. The constant advertisement inputs,the huge margins to retailers to push the product told on the company's profits.

Besides, JK Ansell had gone through an internal restructuring last year. Funds from Ansell (a division of Pacific Dunlop Ltd of Australia) came into the company in August 1997. A sum of Rs 4 crore was spent to upgrade technology and get various certifications from the UK (BSEN 14002) and Commissioned European Norms (CEN) to facilitate exports.

Despite a Rs 20-crore plus turnover, last year, there was little left for the promoter shareholders - a good reason to withdraw `Nirvana' and focus more on KamaSutra.

While the new year is expected to see the add-on products of the company, the CEN certification expected in three months will see KamaSutra go global. "There is a very good perception about the brand in Europe, and the company will focus on selling the branded product with improved packaging," said Deshmukh. This view was also endorsed by one of the directors, Gautam Singhania who was present to launch the newadvertisement campaign of KamaSutra.

Meanwhile, in the domestic front, the company has a strong market presence in the south (34 per cent), west (18 per cent), east (17 per cent), north (12 per cent). In the country, the total production capacity of condoms is 2,600 million pieces. The capacity utilisation varies from 70 per cent to 80 per cent.

While 50 per cent of the sales are from branded condoms, 30 per cent sales are from subsidised products, the remaining being exported. JK Ansell exported Rs 2.5 crore worth of condoms last year. The company hopes to post a turnover of Rs 27 crore this year.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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