GNFC enters personal care segment, eyes Rs 500 crore by 2020

By

Maverick Martins

Published
Jun 18, 2018

Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) has entered the natural personal care segment to cash in on this booming sector and targeting to generate revenue of Rs 500 crore (approx $73.6 million) over the next 2 years.

With Indian consumers increasingly preferring ayurvedic and natural products, the natural care segment has become one of the most lucrative options for FMCG companies. More and more firms are entering this space after the success of home grown firms like Patanjali, Sri Tattva among many others.
 
The natural segment accounts for 41 percent of the total Rs 44,790 crore personal care market, according to market research firm Nielsen. So it is no surprise that companies are exploring this segment and offering natural products for growth.

GNFC has started a separate division for fast moving consumer goods (FMCG) which will be responsible for rolling out natural care products across the country. It has already launched ‘Narmada Neem’ brand, which offers a range of products in the personal care like soaps, hair oil, shampoo etc.
 
“We have a dedicated team for neem-based consumer products, which will roll out newer categories including oral care and expand our reach to modern trade and kirana stores just like an FMCG company,” Rajiv Kumar Gupta, managing director at GNFC was quoted as saying by the Economic Times.
 
“Our products are far superior as we control the entire ecosystem of neem right from sourcing and seed collection to production capabilities,” he said.
 
To achieve its sales target and enhance visibility of the brand, GNFC will spend heavily on adverting and also looking to sign a brand ambassador to endorse the brand to compete with other established brands in this space.
 
“Our new business would need heavy advertising and even a brand ambassador to compete with other consumer products company,” Gupta added.
 
GNFC’s neem products are available through physical outlets and on leading e-commerce websites like Flipkart, Snapdeal, Shopclues among others.