NEW DELHI: Notwithstanding the broad-spectrum economic slowdown, consumer goods maker RSH Global said its expansion plans and growth targets will remain unchanged throughout the financial year. That's because the downturn may have had an impact on commercial business, but retail volumes have been largely unaffected so far.
The owner of brands such as Joy, X-Men and Karis has chalked out a multi-pronged strategy that entails ramping up capacities, expanding geographical reach and launching new products. “While the Rs. 13,000 crore skincare segment, within the personal care market, is growing at 10 per cent annually, Joy has been growing at a CAGR of 18 per cent,” said RSH Global Chairman Sunil Agarwal.
Unveiling the expansion plans, Agarwal said, the company is setting up a new plant in Baddi, Himachal Pradesh with an investment of about Rs 100 crore, which will be its third facility in the state. With a capacity of 35,000 tonnes per annum, the new plant is expected to commence operation in 2021, he added.
RSH Global, which has been concentrating on mass offerings such as body lotions and moisturisers, also plans to expand its personal care range of products in the mid- premium segment with anti-ageing solutions, wrinkle-free creams, mineral-based sunscreen and so on to take on brands such as Garnier, Himalaya, Ponds which dominate the segment.
According to Nielsen data, Joy has a 46 per cent volume share in the moist cream category (for women) and another 15 per cent in the winter-care and body lotion segment.
Currently, the company has three per cent share in the skincare market. It’s new line-up of products in line with consumer's changing needs and aspirations, is expected to shore up its market share in the bigger personal product pie. Apart from national expansion, plans are also afoot to grow in 15 new overseas geographies over the next three years. RSH Global’s advanced personal care offerings are expected to account for 20 per cent, or Rs. 200 crore, of the Rs.1,000 crore turnover that it is targeting by 2023.