Sara Lee Corp to leverage Godrej JV distribution chain

Sara Lee Corporation, the US-based foods-to-household care major, expects the integration of its standalone India operations with the Godrej Sara Lee venture to triple the distribution of its core product lines.

At a management meeting with analysts in the US, the company said its household and body care business combined with the joint venture in India offered a tremendous potential to expand its business in India.

In July this year, Godrej Sara Lee (GSL) acquired the distribution and marketing rights for Sara Lee's household and body care products in India and South Asia. With the acquisition, GSL got to distribute brands such as Kiwi Shoe Polish, Kiwi Dranex drain cleaner and hair-care product Brylcreem in India, Sri Lanka, Bangladesh and Nepal, apart from its existing product portfolio.

GSL's portfolio largely comprises household insecticide brands such as Hit and Good Knight in India, apart from Sara Lee's air purifier brand, Ambi Pur. At the time of the acquisition, company executives said the takeover would help the company grow and expand beyond the household care and insecticides segment.

Next year, Sara Lee Corporation could introduce new products such as Ambi Pur 2Motion, a unique dual-fragrance car air freshener, Kiwi Comfort Insoles, a range of six different gel-pads developed to enhance comfort in female fashion shoes, Pyrel Naturals insecticides, which use natural extracts of flowers, Sanex Invisible, which minimises white marks on skin and clothes and so on. Some of these products could also enter India, said sources, though there was no official confirmation on this.

India figures among the key emerging markets for Sara Lee and Asia (under which India falls) reported a sales growth of 10 percent in the last financial year for the company.

Godrej Sara Lee was formed in 1995, a year after Godrej acquired the Good Knight brand from entrepreneur R Mohan.