Mcnroe eyeing Rs 1,200 crore revenue by 2022: Narendra Kumar Daga
today Sep 2, 2019
With men’s grooming market booming in India, Mcnroe Consumers Pvt. Ltd, the owner of poplular deodorant brands like Wild Stone, Secret Tempation and Heaven’s Garden is eyeing revenue of Rs 1,200 crore ($167.3 million) by 2022.
The company that started operations in 1986 with Heaven’s Garden talcum powders has gone on to become one of India’s fastest growing FMCG companies.
Mcnroe is currently amongst the top three deodorant companies in India, according to Nielsen’s latest report, with a market share of 9 percent. The company expects the perfume and deodorant market to grow by 15 to 20 percent in the coming years and is gearing up to cash in on this growth with the launch of new innovative products.
The company is banking of Bollywood actor Ranbir Kapoor to further popularize the brand and drive greater brand salience on a pan-India level.
Founder & managing director of Mcnroe Consumers Pvt. Ltd, Narendra Kumar Daga, talks to FashionNetwork.com about the fragrance market in India, emerging trends, and its growth strategy.
FashionNetwork.com: Mcnroe has been in the fragrance business for a long time and has been growing at a steady pace. Talk us through the journey?
Narendra Kumar Daga: Mcnroe was incepted with the singular objective to “Improve the Quality of Life” way back in 1986 in a small town called Bhadrak in Orissa. It was Heaven’s Garden premium range of talcum powders that positioned us on India’s FMCG map. For ease of business operations, we relocated to Kolkata and in 2006 launched female body deodorants under the brand Secret Temptation. The rapid acceptance bolstered our confidence to introduce Wild Stone range of male deodorants the following year. Three decades and three brands later, Mcnroe is recognized as India’s fastest growing FMCG company. Today, we are amongst the top three deodorant companies in India according to Nielsen (March 2019) with more than 60 products and capabilities across fragrance, shaving & grooming portfolios.
FNW: What is your assessment of the current fragrance and grooming market in India amidst the economic slowdown?
NKD: Well, ASSOCHAM (in its 2018 report) clearly states a sharp increase in the number of beauty salons & spas across our country and male segment alone drives about 40-45 percent of the total salon business in India. This not only highlights a demand for grooming as an industry, but also points at the need for quality grooming products in the market. To be precise, the men’s grooming industry is growing at a compound annual growth rate (CAGR) of about 45 percent, and is expected to touch Rs 35,000 crore by 2020. Mcnroe anticipates a 15 to 20 percent growth in the perfume market while a 10- 15 percent annual growth in the deodorant industry in the short to medium term.
FNW: Many companies are launching innovative products in the fragrance space, whether its two in one spray or fragrances in sachets to cater to a wider audience. What is your take on the changing trends? Will we see Mcnroe do something similar or different in the near future?
NKD: Mcnroe has dedicated, fully functional in-house R&D, Consumer Insights and Consumer Research Management (CRM) units. Our teams constantly interact with consumers, industry forums & partnering agencies to stay abreast on latest market trends and industrial & technological developments. With improved competencies, we are able to make informed decisions on delivering a quality product experience. Hence we were able to successfully venture into the compact perfume category with Wild Stone Move range for men and the Secret Temptation Go range for women earlier this year. These fragrances designed in France score in terms of water-proof, unbreakable, fist-sized 18ml packaging convenience besides the promise of affordability.
FNW: Mcnroe entered the men’s grooming segment last year. How has the response been to these products and what would you like it to be going forward?
NKD: Wild Stone Edge range of men’s grooming essentials marked our foray into this segment with inclusion of a gamut of products like face wash, shower gel, hair gel besides our marquee products body deodorant and Eau de Parfum. Well, I have realized through umpteen consumer drives that “fragrance” is really the steering factor for a gratifying consumer experience. We have received favourable response on the entire Wild Stone Edge range. In fact the face wash and hair gel were such a hit, that we had to rapidly resort to retail line expansion for both these products.
FNW: What new products can we expect from Mcnroe? Any plans for entering new segments for growth?
NKD: Wild Stone Move for Men launched three choicest perfumes Blast, Charge & Fresh while Lush, Bloom & Alive from Secret Temptation Go range enchanted females earlier this year. While these six new fragrances are enough to engage audience this year, we still feel very passionate about curating “fragrances” and always look forward to sharing our novel creations in the coming year.
FNW: Mcnroe has signed Ranbir Kapoor as its brand ambassador for Wild Stone, does celebrity endorsement help boost sales in a country like India? What impact has Ranbir had on the brand?
NKD: Mcnroe has always favoured quirky, out-of-the-box advertising campaigns to engage audiences across age-bands. Our choice of Ranbir Kapoor as Wild Stone’s brand ambassador is in line with the core values of modern-confident-inclusive masculinity. The aim is to drive greater brand salience on a pan-India level through our association with the popular Bollywood superstar.
#WildstoneIndiaJeetaga campaign’s youthful & humorous plot underlined by Ranbir’s “fragrance of confidence” during the Cricket World Cup has left a lasting impression on viewers. I am told memes have gone viral across social media, and that’s really the sort of connect we want to nurture with audiences across the board.
What is the current market share of Mcnroe in India’s fragrance market and what percentage is the company eyeing?
NKD: Mcnroe isn’t pinning to win the number game, our focus has always been to deliver a “quality experience” to the consumer. However, going by Nielsen, Mcnroe (Wild and Secret Temptation) closed 2018 as India’s second largest deodorant manufacture with 9.3 percent market share in terms of volume, and we have already clocked 9 percent in Q1, 2019.
What is the growth strategy and target revenue going forward?
NKD: The market for male grooming in general and fragrances in particular is growing at almost 15 percent annually. So achieving Rs 1,200-crore business by 2022 appears to be an optimistic target by increasing market penetration.
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