New Delhi, May 2: In a move that could mark the segmentation of the nascent alkaline batteries market, Duracell India, part of the US shaving products major Gillette Company, on Tuesday announced the launch of New Duracell Ultra alkaline battery for high-tech devices such as digital cameras, flash cameras, cellular phones. Duracell was so far present in the ordinary alkaline battery segment with its Copper & Black battery. Significantly, New Duracell Ultra is an improved version of Duracell Ultra, soft-launched first in June 1998. ``We're testing the waters without any media advertising support,'' regional business director, Duracell India, Ranu Kawatra said.The relaunch is now being supported with a widespread distribution network that covers over 63,000 outlets across the country, a high-voltage ad campaign, and new vibrant packaging and merchandising. "We are looking for at least 45-50 per cent growth in sales turnover this year against an average 33 per cent annual till now," Kawatra said.
The company claims 47 per cent market share of the Indian alkaline battery market which is a mere 1.8 per cent of the total 1,850 million units battery market.
The company claims to have witnessed a 33 per cent growth in sales against the category growth rate of 6 per cent. From just 9 million units in 1997, Duracell's sales went up to 12 million units in 1998 and in 1999 shot up to 16 million units. According to Kawatra, this remarkable growth has been possible because the household ownership of high-tech battery powered devices has grown significantly. ``Growth in devices alone is going to lead the segmentation and growth of the alkaline battery market,'' Kawatra said.
Duracell is looking at a hiked market share of 52 per cent within three months of the new product hitting the market though in the long run it has set a target of 60 per cent "to establish a clear leadership position as we have done worldwide," Kawatra said.
The company will be unleashing a $ 140 million worth mega advertising and promotional campaign for Duracell Ultra in the Indian market. In line with global advertising plans, the company would spend a significant 20 per cent of its Indian turnover "in educating the consumer".
The Duracell Ultra, would at present, be imported from the Duracell Belgium plant, but may be manufactured in India "sometime next year" at its 80-million unit Manesar facility. The unit caters to India as well as other countries including Europe, Turkey, Poland and others.
Gillette has so far invested about Rs 100 crore in its Duracell unit. Also, the company is hoping to start making profits this year (January-December 2000) after having broken even in 1999, according to Gillette India's legal & corporate affairs director Vijai Mathur. The company posted a turnover of Rs 85 crore in 1999.
In early February this year, Gillette India Pvt Ltd carried out a major consolidation of its operations with the merger of its subsidiaries, Duracell India Pvt Ltd and Wilkinson Sword India Ltd (WSIL) with the flagship company Indian Shaving Products Ltd (ISPL).
While Duracell is engaged in the manufacture and sale of Duracell alkaline batteries, WSIL is engaged in the manufacture and sale of Wilkinson Sword blades and razors, Geep batteries and torches and distribution of Duracell alkaline batteries.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.