Emami, HUL launch price war

Kolkata-based Emami is preparing to take on FMCG major HUL in the personal care segment by getting into the premium beauty soap category, with products priced almost half of its competitor.

The homegrown FMCG firm is launching its moisturising soap under the 'Malai Kesar' brand priced at Rs 18 for 75 gram that will directly take on HUL's Dove brand, which is priced at Rs 32 for 71 gram.

"We will go very aggressive in our marketing campaigns for the 'Malai Kesar' soap brand...The aim is to make 'Malai Kesar' a Rs 50-crore brand in the next two years, with the introduction of the soap range," Emami Director Priti Surekha said.

Emami sells cold creams under the 'Malai Kesar' brand and at present, it is around Rs 18 crore brand, she added.

The 'Malai Kesar' soap will be launched nationwide and the company has even roped in popular adman Alyque Padamsee as a consultant for a TV commercial, that is set to go on air by next week as part of the marketing campaign for the new product.

Emami's move is seen by industry analysts as continuation of its strategy of playing the price war in segments even where there is lesser competition to gain volumes.

"Moisturising soap segment is a very niche space, where there are very less competition. At this juncture, price point is very important. So what Emami is doing is trying to capture space by playing the pricing game," Shirish Pardeshi, analyst with brokerage firm Anand Rathi Financial Services said.