Top Story

e4m_logo.png

Home >> Marketing >> Article

Dabur may brush off Binaca

08-February-2005
Font Size   16
Share
Dabur may brush off Binaca

With the recent acquisition of Balsara's oral care brands, Dabur India Ltd appears to be in a dilemma over Binaca.

The brand, which was acquired from Reckitt Benckiser in 1996, appears to have become redundant for Dabur after the Balsara acquisition. And company sources indicate that Dabur might be once again keen to sell off Binaca.

But this is not the first time that the company appears to be at the crossroads over Binaca. Ever since the brand was acquired, various efforts to sell it and then to launch a herbal toothpaste under it have not fructified, company sources said. In 2002, Dabur decided to sell this brand and even appointed management consultant PricewaterhouseCoopers to seal the deal. After about two years of unsuccessful attempts, last summer the company reversed its stand to declare that it will launch a herbal toothpaste under Binaca.

But after the Balsara acquisition announced last month, Dabur has got a foothold at every price point in the oral care market. Its existing brands include Dabur Red toothpowder and toothpaste, Dabur Red Gel paste and Dabur Herbal Toothpaste; and new additions through Balsara acquisition are Promise, Babool and Meswak toothpastes. So, a hunt is again on for a buyer for Binaca.

In the latest investors' conference, the Chief Executive Officer, Mr Sunil Duggal, said, "The fact is it (Binaca) is not a strategic brand that had a role to play in the earlier scheme and now we have the Balsara brands which will enable us to have the portfolio (comprehensive oral care). This will enable us, like I said, a complete range of offering in oral care, so the role of Binaca which was not there earlier will not be there now also."

Company sources said that about three years ago Dabur had launched a toothpowder under Binaca. Though well received by consumers, trade margins remained low and the brand was withdrawn within a year of its launch. They said the company is not in negotiations with any buyer for the brand at present, but would like to sell it only at the "correct" price, adding the brand was acquired for a rather insignificant sum.

At present, the company sells toothbrushes under Binaca. According to market estimates, close to half of the Rs 2,000-crore toothpaste market rests with Colgate, followed by Hindustan Lever Ltd with 25 per cent share but Dabur has only 2 per cent share. However, it holds sway over 10 per cent of the Rs 500-crore toothpowder market.

Tags

Rajat Sharma who was recently elected as President of the NBA talks about his plans for the industry body

The Country Sales Manager Media at Akamai says that technology seems to be taking over all possible spaces and people considering it in both positive and negative ways

The India Marketing Lead of Skyscanner believes that with the acquisition by Ctrip they have reached the market leader status

Our typical marketing budget is usually 10 per cent of the topline spend

The BBC carried out a survey along with Globescan to see how the world looks at the issue of ‘fake news’

The objective of content marketing is not just to encourage product purchase or generate ROI. The key to its success lies in building relationships based on trust, opines Dasgupta

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions