Fast moving consumer goods (FMCG) major Hindustan Lever has decided to develop Nihar as the umbrella brand for its coconut hair oil business. Consequently, the Cococare brand, which HLL acquired in 1999 from Recon Industries, will gradually migrate under the Nihar brand.

D Shivakumar, business head -- hair (personal products) of HLL, said: "We will focus on Nihar in the hair oil category. Cococare will gradually be integrated with Nihar."

HLL's portfolio of brands in this sector currently comprise Nihar and Cococare. HLL got the Nihar brand in its kitty following the acquisition of Tata Oils Mills Co (Tomco) in the early nineties. As per the agreement with the Tatas, in the initial years, HLL had retained the right to market the brand in its original name, Tata Nihar.

The hair oil business contributes around Rs 200 crore to HLL's turnover and the company intends to double this in the next two years.

Both Nihar and Cococare together command close to 20 per cent market share in all-India coconut oils, according to analysts tracking the FMCG sector. In the Rs 500 crore-plus branded coconut hair oil market, Marico Industries' flagship brand Parachute is the all-India market leader with a 54 per cent share.

"Pricing is a critical issue in the branded coconut hair oil market where the consumption of low priced loose oils is huge," analysts added. While Parachute is priced at Rs 22, Nihar and Cococare are both priced at Rs 26 for a 200 ml pack.

..extends Sunsilk to hair colour

Hindustan Lever, as part of its new growth plans, has decided to extend its shampoo brand Sunsilk to the hair colour business. Priced at Rs 220 for a 200ml kit, Sunsilk Pro-colour is available in seven colours, specially suited for dark Indian hair and skin tones.

Explaining the rationale behind the move, D Shivakumar, business head - hair (personal products), said: "Sunsilk is a leading beauty hair-care brand that understands the Indian women and her hair." Sunsilk has a brand value of Rs 160 crore.

The company will come out with a advertising campaign in mid-July which will be created by HTA.

The company has targetted a market share of around 30 per cent. Other competitors in the category are Godrej, L'Oreal and Revlon. "In the Rs 40 crore market, Sunsilk is here to grow and expand the market," Shivakumar said. HLL's other shampoo brands in the portfolio are Lux and Clinic Plus. HLL also has a anti-dandruff hair oil by the name Clinic All Clear.

"Currently, the company is not looking at importing any of its global brands in the Indian market," Shivakumar added.