Date:06/05/2004 URL: http://www.thehindubusinessline.com/2004/05/06/stories/2004050600480900.htm

Back RP Elec ties up with US co for infant care products

Preeti Mehra

New Delhi , May 5

RP Electronics (RPE), promoters of the Rs 1,000-crore Salora Group, has tied up with US-based Luv n' care International to promote the latter's infant care products in the country through its Fast Moving Consumer Goods (FMCG) division.

The three-decade-old RPE, which has Mr R.P. Khaitan, Managing Director of Salora International Ltd, as one of the partners, has now created its own umbrella brand, Purple Turtle. Under this brand, RPE will roll out in phases products targeted at children up to eight years.

Luv n' care International's Nuby brand of infant care products, used for infant feeding, teething and soothing, will be first on the shelves.

"The Rs 500-crore infant care market is largely in the unorganised sector, with imports coming in selectively. The grey market does not have access to manufacturers. Hence, consumers have to pay a very high cost for quality products. With our own distribution network, the channel costs will be less. Also, the mark-up on the products will be low, with the US company looking at the Indian market with a long-term perspective. Realising that the Indian market is price-sensitive, the company is not loading us with R&D and tooling costs. This has helped us bring down prices in comparison to other products in the same category by 30 per cent," explained Mr Ashok Chowdhary, Chief Executive, RP Electronics (FMCG division).

RPE, which is also the distributor for NIPPO brand and American Safety Razors range of products and has a substantial presence in both the urban and rural markets, is also looking to manufacture some of the Nuby products for the domestic market.

"This would help us save on logistics and provide variants to target different price segments, though the quality will be constant. However, we will move into manufacturing in phases and, depending on consumer response, pick up only those products that appeal to the mass market," said Mr Chowdhary.

He added that the company was targeting a Rs 25-crore market in three years and would place the products in the over-the-counter segment in chemists across the country by the end of the year. Right now, Luv n' care products would be placed in upmarket stores and consist of non-drip feeding bottles, no-spill mugs and starter spoons.