Kochi: After giving multinational and home grown FMCG behemoths a run for their money in its home ground and South India, public sector Kerala Soaps Limited is now eyeing to spread the Kerala Sandal fragrance up North.
“We have received encouraging responses from the India International Trade Fair held in Delhi last month,” said Febi Varghese, managing director, Kerala State Industrial Enterprises, which is now running Kerala Soaps.
“We have started negotiations with distributors and will start selling in the North soon.” Kerala Soaps has also registered with Kendriya Bhandar, the cooperative system through which Central government agencies procure consumables, as well as Director-General of Supplies and Disposals.
“These will help us get an entry into the wider market, and we are sure to replicate the success we have recorded in Kerala, Karnataka and Tamil Nadu, he said.
The last LDF government had, as part of its strategy to revive public sector units, had asked KSIE to takeover Kerala Soaps a once highly-successful soap maker with brands such as Kerala Sandal, Vep, Thrill and washing soap Washwell.
The company was in a moribund state since it closed shutters in 2002. KSIE invested close to Rs 10 crore for getting the company back on tracks.
The company last year recorded a turnover of Rs 10 crore and posted a net profit of Rs 1.25 crore, after its products hit a chord with the highly quality and cost-conscious Kerala consumer.
The products are now exported to Japan and Gulf countries. The products are now available in super market chains apart from retail outlets.
“We cannot match the MNCs in their advertisement budget and hence designed a prudent marketing strategy. And it paid off,” said Mr. Varghese.
“We banked on quality which was our USP. We also had a smart pricing strategy. Instead of looking for profits in the initial years, we wanted to grab the market share. As turnover grows, the profits will come," he said.
The 12000-tonne Kozhikode plant, which runs a single shift now, can augment production as and when required, he said.
