ITC to acquire leading floor cleaner brand Nimyle for undisclosed sum

Th brand, which controls 60-65% of the floor and bathroom cleaning space will give ITC immediate entry into a segment in which it is inexperienced

To boost revenue from its non-cigarette FMCG segment, cigarettes-to-hotels conglomerate ITC Ltd is in the process of acquiring the Nimyle brand of floor cleaner from Arpita Agro Pvt Ltd (AAPL).

Sources aware of the development told Business Standard that the primary reason ITC has opted for an acquisition in this space is that Nimyle — which has a strong presence in the country’s eastern markets — will give ITC an immediate entry into the floor, bathroom and kitchen cleaning space where it is inexperienced.

An ITC spokesperson refused to offer details on the development, saying, “We are unable to offer any comment at the moment". The size of the deal or ITC’s future plans with this brand is currently not known. Also despite several attempts, AAPL directors could not be reached for their comments.

However, industry estimates suggest that Nimyle has a 60-65 per cent market share in the floor and bathroom cleaning space in east India and has a potential to grow nationally once it is routed through proper distribution channels and is advertised properly. 

“As such, the product is very good and has a strong brand recall. However, some packaging changes need to be made for the product to be introduced nationally”, a source in the knowledge of this acquisition told this newspaper.

The purchase of the Nimyle brand will mark ITC’s maiden entry into the household cleaning segment which is estimated at Rs 400 billion of which floor cleaning market accounts for Rs 100 billion. 

Incorporated in 1992, Kolkata-based AAPL, which has a Rs 55.9 million paid-up capital, was one of the first movers into the household floor cleaning space and has a range of different fragrances, which are the primary reasons for its large market share.

Previously, ITC had set a target to up its revenue from the FMCG business to Rs 1 trillion by 2030 and industry officials view this move as a step in that direction.

Last year, with a similar objective to up its non-cigarette FMCG portfolio, ITC had acquired the Charmis brand of face cream from Colgate-Palmolive for South Asia, and some African and Middle Eastern markets. However, it wasn’t a new category that the company entered into as it was already present in the personal care segment with its Vivel and Essenza Di Wills brands.

However, it was in 2014, that the company entered the fruit juices space — a new vertical — after the acquisition of B Natural from Balan Natural Foods which was its first major acquisition since it entered the foods segment in 2001.