Consumer spending on ITC-acquired to double

Consumer spending on Savlon and Nimyle, acquired by ITC Ltd in the health and hygiene segment, is projected to exceed Rs 2,000 crore in the medium term. Industry experts attribute this growth to product innovation, portfolio expansion, and enhanced market penetration since their acquisition by ITC. Acquired from Johnson & Johnson in 2015, Savlon has multiplied nearly nine times over the last decade, while Nimyle, acquired from Kolkata-based Arpita Agro Products in 2018, has grown eight-fold in roughly seven to eight years.

Sameer Satpathy, ITC's Divisional Chief Executive for Personal Care Products Business, emphasized that the future growth trajectory for these brands is as promising as the progress already achieved. Satpathy highlighted that acquiring a brand is a long-term commitment requiring sustained investment, innovation, and distribution efforts.

Both brands have become differentiated offerings by leveraging ITC's scientific research, product development, supply chain strengths, and extensive distribution network to meet evolving consumer needs.

ITC has transformed Nimyle from a basic floor cleaner brand into a volume leader across eastern India, now offering seven products and around 20 SKUs. The brand has expanded into adjacent categories like kitchen surface sprays and fruit and vegetable washes. ITC has taken Nimyle into all four southern states and is exploring opportunities for international expansion. The company's neem-based Nimyle is certified by GreenPro, an internationally recognized ecolabel.

Savlon, originally an antiseptic liquid, has grown nearly nine-fold in over a decade, venturing into wipes, hand washes, laundry disinfectants, sanitisers, body washes, and disinfectant sprays. Savlon is now the market leader in the wipes category in India. Satpathy stressed that Savlon's portfolio growth has been driven by scientific research, consumer trust, and ITC's commitment to promoting health and hygiene. The company aims to maintain the brand's credibility across generations.

While ITC has primarily acquired brands to scale them up, the company also focuses on organic brand development. Satpathy mentioned that brands like Fiama, Engage, and Vivel have been built internally, alongside the acquired brands Savlon, Nimyle, and Mother Sparsh. He emphasized that there is no one-size-fits-all strategy, and ITC relies on identifying strategic fits for potential acquisitions.

India presents significant growth opportunities in personal care and hygiene categories, driven by rising incomes and shifting consumer preferences, with the market expected to expand to Rs 8 trillion by 2035.