Consumer spending on Savlon and Nimyle, the two brands acquired by diversified conglomerate ITC Ltd in the health and hygiene segment, is expected to more than double to cross Rs 2,000 crore in the medium term, driven by product innovation, portfolio expansion and deeper market penetration.
Post their acquisitions, both brands have registered a multi-fold growth under ITC’s ownership and together have crossed Rs 1,000 crore in consumer spends, growing at over 20 per cent annually, according to industry experts.
ITC bought Savlon from Johnson & Johnson in February 2015 and has scaled up the brand nearly nine-fold over the past decade, while Nimyle, from Kolkata-based Arpita Agro Products in June 2018, has grown eight-fold in around seven to eight years since its acquisition.
“We expect the runway ahead to be just as exciting as the distance we’ve covered,” ITC Divisional Chief Executive, Personal Care Products Business, Sameer Satpathy told PTI.
He said acquisitions should be evaluated over a longer period, and that the real test lies in how a company develops a brand through sustained investment, innovation and distribution.
“Savlon has grown nine-fold in just over a decade, and Nimyle has grown eight-fold in nine years – that is not a one-time bump from a good deal; it’s a decade of compounding choices,” Satpathy added.
Both brands have been built into “differentiated” offerings by leveraging the company’s scientific research capabilities, product development expertise, supply chain strengths and extensive distribution network to address evolving consumer needs.
ITC, which aspires to be a leading FMCG brand in the coming years, has amplified the playbook of Nimyle from being a mere floor cleaner brand into adjacent categories, including kitchen surface sprays and fruit and vegetable washes. The brand currently has seven products and around 20 SKUs.
“It’s now a volume leader across eastern India, and we have carried that momentum in the south. The ambition is simple: to take Nimyle wherever Indian homes are, and beyond,” said Satpathy.
Originally based in West Bengal and built around the natural properties of neem (Azadirachta indica), Nimyle is now certified by GreenPro, an internationally recognised ecolabel.
It has emerged as the volume leader and the most widely penetrated brand across eastern India, according to Cantor.
ITC has since expanded its presence into all four southern states, making the brand available across the country through e-commerce and modern trade channels.
Besides domestic markets, ITC has started exports of the Nimyle range to Cambodia and is scouting opportunities to enter more international markets.
ITC has established a dedicated neem plantation at its Neemgarh facility in Bengal, where more than 50 varieties of neem are being cultivated. The company is also collaborating with Alagappa University to strengthen scientific research around neem.
Similarly, ITC has expanded Savlon beyond its original antiseptic liquid category into products such as wipes, hand washes, laundry disinfectants, sanitisers, body washes and disinfectant sprays. The brand now has over 30 products and more than 75 SKUs.
“Savlon demonstrates what it means to build for the long haul. In the decade since we acquired it, the brand has grown almost ninefold, moving well beyond its original antiseptic liquid into wipes, hand washes, laundry disinfectants, sanitisers, bodywashes, disinfectant sprays, etc,” he said.
Savlon has strengthened its position in the hygiene segment and emerged as the market leader in the wipes category in India.
Satpathy said Savlon’s portfolio expansion has been underpinned by scientific research, consumer trust and ITC’s commitment to promoting health and hygiene, with the company aiming to sustain the brand’s credibility across generations.
Besides acquisition, ITC’s strategy is to build brands organically, Satpathy said, citing Fiama, Engage and Vivel as brands developed internally, while Savlon, Nimyle and Mother Sparsh represent acquired brands that have been scaled up.
“There’s no set formula, only the discipline to know a good strategic fit when we see one,” he said.
India continues to offer significant growth opportunities across personal care and hygiene categories, as rising incomes and evolving consumer preferences create demand for differentiated products at various price points, he added.
In July this year, Chairman & Managing Director Sanjiv Puri said the company expects its addressable FMCG market to expand to around Rs 8 trillion (Rs 8 lakh crore) by 2035, in which the group is strengthening its position through a combination of brand-building, digital commerce expansion and strategic acquisitions.
