Reckitt & Colman of India Ltd (RCIL) has acquired the `Colin' brand, which is a glass and household cleaner, from Fernhill Lab & Industrial Establishment.
Colin is a household name and the brand commands and enjoys consumer support and market leadership in its category. The glass and household cleaner is available to the consumer in a pump, trigger and refill pack, an official statement from RCIL company. RCIL already has a substantial portfolio of brands such as Dettol, Lizol, Harpic, Mortein mosquito repellent, Cherry Blossom, Dispirin and Robin Blue. According to the statement, Colin will add value to the company's brand portfolio not only in the domestic market, but also in the international market. "Being an FMCG company with strong marketing and distribution capabilities, RCIL will be in a position to further enhance Colin's current brand equity," the statement said.
The acquisition of Colin is in line with RCIL's strategic business plans and synergistic with its aggressive growth objectives.
The company this calendar year, till December 1998, expects its turnover to touch approximately Rs 380 crore. In 1997, the turnover was Rs 300 crore. The annual growth rate which hovered around 15 per cent had jumped to 27% in the accounting year ended December 1997.
RCI's dependence on debt has been drastically reduced and company executives said they internally fund expansion activities. The company ended the financial year December 1996 with just Rs 3 crore in commercial paper, raised at an affordable 9 per cent.
Much of the impetus of RCI growth plan, according to company, comes from its parent, Reckitt & Colman plc, which owns 51 per cent of the local company. The parent has identified as India as a high-focus area. The company has lined up plans to standardise packaging and go for pan-regional advertising as a part of its marketing efforts.
That the company is serious about attaining brand leadership is evident from the fact that the ad spend for 1998 has been increased to Rs 55.1 crore (14.5% of 1997 turnover) from Rs 32 crore in 1997.
The organisation proposes to increase the turnover in a major way and the game plan includes product launches, capacity expansion, brand building exercises and a new marketing alliance.
Under a deal signed with the Rs 325 crore Nicholas Piramal Healthcare and Reckitt & Colman's parent, the
