Marico Extends Parachute Brand

In a bid to strengthen its product portfolio, fast moving consumer goods (FMCG) major Marico Industries, is extending the Parachute brand yet again. It has begun test marketing Parachute Sampoorna, a value-added hair oil, in select parts of India.

Confirming the development, a senior Marico executive said, "We recently began test marketing Parachute Sampoorna in Maharashtra. Depending on the consumer response, we may decide to take the product national."

Marico hopes to create a new set of consumers with its latest product, the executive added.

Marico already sells Parachute Jasmine and Parachute Enrich types of coconut oil under the Parachute brand.

 

Parachute Sampoorna constitutes coconut oil, almonds and hibiscus, and is priced at Rs 27 for a 150 ml pack, a premium over the mother brand.

According to analysts, value-added hair oils is the fastest growing category. Dabur, the market leader in this segment, saw its share declining from 38 per cent to 36 per cent in 2001-02. Dabur's Vatika is the leader with a 41 per cent market share.

The branded coconut oil market is estimated to be worth Rs 700 crore. Marico is the leader in the coconut oil category, where it claims a 55 per cent market share among branded players.

Parachute, Marico's flagship brand in the coconut oil category, contributed 38 per cent to the total turnover of the company in fiscal 2002, down from 42 per cent in the previous fiscal.

The overall hair oil market consists of several categories including coconut, amla and scented hair oil.

As part of its brand extension strategy, the company is looking at extending the Parachute brand across categories, largely based on the goodness of coconut, that may include skincare products, coconut oil in tetrapacks and so on.