Jyothy Labs sees FY09 revenues at Rs 600 cr
Jyothy Laboratories has listed with premium of 29.71% at Rs 895 as against its issue price of Rs 690 on the NSE. MP Ramachandran, CMD, Jyothy Laboratories in an exclusive interview to CNBC-TV18, said Jyothy Lab is looking for higher penetration and volumes. It currently has 73% marketshare in value terms. He said the company will be able to achieve Rs 600 crore revenues in FY09, he said
The company had increased prcies of their products in July, with hike in Ujala prices being as much as 10%.
Excerpts from CNBC-TV18's exclusive interview with MP Ramachandran:
Q: What are your plans for Ujala as a brand and do you see more penetration going forward and the prospect of getting even more market share?
A: Yes, the ongoing process is we are expanding the market, we are going for more and more dealer penetration and everyday the consumer base is also increasing. As such, we already have about 73% of market share by value times.
But we do expect that by volume times also, we will grow day by day. As far as Ujala brand is concerned, it is our umbrella brand for fabric-care products. Now we have developed new products, which is under that umbrella of Ujala, called Ujala Stiff and Shine to enhance the look of every cloth, whether coloured, white, or cotton or synthetic. It will give you an upgradation on using that one.
Q: We estimate that in FY09, you will do about Rs 600 crore in sales and Rs 84 crore or so around that figure in your profits; is that a doable target?
A: It is absolutely doable, because if you look at the track record in the past we have done that one. Based on the production that has been made, it is almost likely to be achieved.
Q: What are your plans for brands like Maxo and Exo? What kind of penetration growth do you see going forward on this two?
A: Maxo is in the householding insecticide sector; they are available in the coil, they are in the liquid as well as in aerosol. We already have a rural interest in the mosquito coil; we have above 31% market share in the rural sector, perhaps that is the best market share in rural as far as the mosquito coil is concerned. While value wise, we have about 22% market share. We are sure, because of our reach everywhere in the country whether rural or urban, we are planning for getting a higher and higher market share in India.
Q: The problem seems to be that margins have been coming off a bit in consecutive financial years; in which of these products do you think you can push in some kind of price increase as well?
A: From this July onwards, we have already increased the price of our flagship brand, which is Ujala by almost about 10%. In case of Maxo also, there has been a price revision to take care of that input cost escalation and in case of Exo also, there has been a price escalation. The raw material and other input cost escalation we have to take care of that by keeping a reasonable margin for the company.
The company had increased prcies of their products in July, with hike in Ujala prices being as much as 10%.
Excerpts from CNBC-TV18's exclusive interview with MP Ramachandran:
Q: What are your plans for Ujala as a brand and do you see more penetration going forward and the prospect of getting even more market share?
A: Yes, the ongoing process is we are expanding the market, we are going for more and more dealer penetration and everyday the consumer base is also increasing. As such, we already have about 73% of market share by value times.
But we do expect that by volume times also, we will grow day by day. As far as Ujala brand is concerned, it is our umbrella brand for fabric-care products. Now we have developed new products, which is under that umbrella of Ujala, called Ujala Stiff and Shine to enhance the look of every cloth, whether coloured, white, or cotton or synthetic. It will give you an upgradation on using that one.
Q: We estimate that in FY09, you will do about Rs 600 crore in sales and Rs 84 crore or so around that figure in your profits; is that a doable target?
A: It is absolutely doable, because if you look at the track record in the past we have done that one. Based on the production that has been made, it is almost likely to be achieved.
Q: What are your plans for brands like Maxo and Exo? What kind of penetration growth do you see going forward on this two?
A: Maxo is in the householding insecticide sector; they are available in the coil, they are in the liquid as well as in aerosol. We already have a rural interest in the mosquito coil; we have above 31% market share in the rural sector, perhaps that is the best market share in rural as far as the mosquito coil is concerned. While value wise, we have about 22% market share. We are sure, because of our reach everywhere in the country whether rural or urban, we are planning for getting a higher and higher market share in India.
Q: The problem seems to be that margins have been coming off a bit in consecutive financial years; in which of these products do you think you can push in some kind of price increase as well?
A: From this July onwards, we have already increased the price of our flagship brand, which is Ujala by almost about 10%. In case of Maxo also, there has been a price revision to take care of that input cost escalation and in case of Exo also, there has been a price escalation. The raw material and other input cost escalation we have to take care of that by keeping a reasonable margin for the company.
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