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Parachute Lite corners 10% market share

Namrata Singh

MUMBAI, DEC 27: Parachute Lite, an extension of Marico Industries' flagship brand and the latest entrant in the value-added coconut-oil market, has garnered a 10 per cent market share, a year since its launch.

The Rs 110-crore value-added coconut-oil category has two major players, Dabur Vatika and Hindustan Lever's Clinic Plus, commanding a share of 40 per cent each. The total volume in this market is 375 kl per month. In terms of value, the category is growing around 30 per cent.

According to company sources, Parachute Lite has captured this share partly from value-added coconut oil and, partly, from other hair oil. The Parachute franchise was extended last year with the launch of Parachute Lite, a less-greasy coconut hair oil. The move ensures that despite changing trends and preferences, consumers' needs continue to be met within Parachute's offerings.

HLL's Clinic Plus competes with Parachute Lite in terms of being a non-greasy coconut hair oil with a protein base. In terms of pricing, ParachuteLite at Rs 28 for 150 ml is sold at a premium to Clinic Plus, which is priced at Rs 32 for a 200ml pack. With Parachute Coconut Oil priced at Rs 25.50 for 200ml, the value-added oil product commands a premium of around 40 per cent.

As far as sales growth is concerned, analysts anticipate volume sales of Parachute to rise 4.5 per cent over the next two years, with realisation rising by 7 per cent.

Parachute, as a brand, is nearly three decades old and figures among the top 20 brands in the FMCG sector. Analysts, thus, expect the product to ride on the brand equity of Parachute so as to garner a better market share in its category. Parachute, as a whole, has sales of around Rs 250 crore, contributing almost 50 per cent to the company's turnover of Rs 490 crore.

The branded coconut-oil market is valued around Rs 500 crore, while the value-added market segment accounts for one-fifth of the branded category. The loose-oil market is estimated to be around Rs 700-800 crore. Thus, the total coconut-oil marketis valued at Rs 1,300 crore. The branded coconut-oil segment accounts for about 45 per cent of the total market.

With around 53 per cent market share, Parachute's dominance has not faded even after FMCG giant Hindustan Lever relaunched Nihar coconut hair oil two years back. Analysts say that the repositioning of Parachute, reflecting the "goodness of coconut" rather than just "coconut oil" is expected to deliver long-term growth benefit.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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