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“Study of Alternate Channels to Promote Kara Wipes in
Lucknow Market”
Summer Training Project Report submitted in partial
fulfillment of the requirements for the
Diploma of
Post Graduate Diploma in Management
At
Jaipuria Institute of Management, Lucknow
By
Feroz Ahmad
Enroll No. : JIML-11-057
Batch: 2011-13
Project Mentor: Prof. Hyma Apparaju
Abstract
2
The purpose of my study was to “find out different channels that can be used in
promoting and maximizing the sales of Kara in major markets of Lucknow. As
any study is incomplete without the interaction with its main stakeholders, I also
interacted with many commuters of different cosmetics, general stores and
medical stores covering various major markets of Lucknow such as Aminabad,
Hazratganj, Charbagh, Patrakarpuram, Bhoothnath, Hussainganj etc.
Further interaction was with the second most important stakeholder who plays a
significant role in sale of a product i.e. retailer. It helped in gauging the
expectations of retailers as well as the expectations of customers through
retailers to reduce the gap between expectations and realistic presence of the
product.
I sampled Kara in major markets of Lucknow to increase the awareness of Kara
because the concepts of using wet facial wipes is very new in India unlike other
western countries where people spend their major portion salary in disposable
products.
Executive Summary
3
In last few years, the growth and development story of India has seen different
stages. From the time of independence to 1991, the time of liberalization in India
and then to the twenty first century, the markets have shown tremendous
changes. Today consumers have got the power and the income to spend on
products. Different firms entered in the market and lost but many succeeded and
make their mark. All the markets starts with nascent stage and later grow to its
maturity, same with the wipes market which is in its nascent stage in India now
but the potential is high if explored.
Kara is a brand name of Wet wipes from the house of Grasim Industries, Aditya
BirlaGroup. Among its different variants, Refreshing facial wipes are the most
selling wipes inthe consumer market.
My project title was “study of alternate channels to promote Kara in Luknow
market” in Grasim Industries, Aditya Birla Group. Objective of the project was to
find out the ways to promote Kara and create new potential areas for the
product. It also involves the work to find out the measures to keep the product
ahead of its competitors such Johnson & Johnson, Bilt, Good Look, Freshia,
Mistique and last but the least the Chinese wipes products.
For brand promotion and widening the horizon for the new products launched
by the company I sampled Kara in almost all major markets and malls of
Lucknow such as Aminabad, Hazratganj, Hussainganj, Bhootnath,
Patrakarpuram, Thakurganj, Saharaganj mall, Spencer, Shalimar mall etc. which
also resulted into generating the awareness of the brand and it provided a
chance to the people to use Kara at free of cost first time. Once they are fond of
the product, they will voluntarily buy the product and will become its regular
user.
In my later stage of training, I was assigned to understand the operations of the
company by visiting almost all markets in Lucknow. For the purpose, I visited
more than 140 shops and took orders from retailersof the company and was also
4
responsible in placing the product onto new stores by convincing the retailers to
keep the product.
Without collection of statistical data and its analysis any project is incomplete,
thus, I surveyed 156people by way of questionnaire and collected some
secondary data from internet to understand and analyze the exact situation of
the market. Analysis part has been done through interviews and surveys with the
people visiting the retail stores in different major markets and malls of Lucknow.
Result showed that the concept of using wet facial wipe is not as new as it was a
couple of years ago in the Indian market and now people are partially aware of it.
Middle class people can be targeted and educated about this new concept
through extensive promotional activities. One of the finding was that people
consider wet wipes as an extravagant article rather than essential product which
is positioned by the company and do not want to spend a lot on such a product.
Acknowledgement
The training program was designed in such a way that it provided a full learning
opportunity throughout the training program. I would like to express my
5
gratitude towards all the people who guided me throughout the program and
their direct or indirect help was priceless for me, without their guidance and
support this project would not have been completed successfully.
I express my sincere gratitude to Mr. Divyankar Goel, Regional Sales Manager,
North Division, Grasim Industries & Birla Cellulose, for his belief in me and giving
a chance to do market research for the company.
It has been an honor to do my summer training under Mr. Surya Prakash Singh,
Area Sales Manager, North Division, Grasim Industries & Birla Cellulose, a
composed and talented person who not only guided but also supported and
rectified me where I was going wrong. Therefore, I would specially thank Mr.
Surya Prakash Singh for his continuous guidance and assistance throughout the
training.
There was a great learning from my team at Grasim Industries, who not only
behave in a co-operative manner but also provide constant help in the
completion of the project, thus, I thank to my each team member in the training
program.
Last but surely not the least, I am very much thankful to my faculty guide, Prof.
Hyma Apparaju, core faculty at Jaipuria Institute of Management Lucknow, for
her continuous guidance and support from the proceeding of the project to its
completion. I can not think of the accomplishment of the project without her
assistance and guidance.
TABLE OF CONTENTS
Page No.
CHAPTER - 1
………………………………………………………………………………………………………1
6
INTRODUCTION
……………………………………………………………………………………………2
SCOPE OF THE STUDY
…………………………………………………………………………………..3
OBJECTIVE OF THE STUDY
……………………………………………………………………………3
RELEVANCE OF THE
STUDE………………………………………………………………………….4
TEAM CONSTITUTION
…………………………………………………………………………………..4
ACHIEVEMENT AND RECOGNITION
……………………………………………………………..5
CHAPTER - 2
……………………………………………………………………………………………………...6
SUMMER INTERNSHIP PROFILE
…………………………………………...…………………….....7
STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA
WIPES………………………7
USE OF SOCIAL MEDIA TO PROMOTE KARA
WIPES………………......….………………….9
INDTRODUCTION ABOUT ADITYA BIRLA
GROUP…………………………..……………….11
HINDALCO
INDUSTRIES………………………………………………………….………………..22
7
IDEA CELLULAR………………………………
………………………………………………………25
ULTRATECH
………..…………………………………………………………………………………...27
GRASIM INDUSTRIES
……………………………………………….……………………………….31
BIRLA
CELLULOSE…...…………………………………………….…………………………………37
ANALYSIS OF INDIAN WIPES
MARKET………….………….………………...………………….60
COMPETITION ANALYSIS OF KARA WIPES
…………….…………..….……...……………….65
MICHAEL PORTER’S FIVE FORCES MODEL
………………………………………...………....67
SWOT ANALYSIS
………………………………………………………………………………………….69
CHAPTER – 3
………………………………………………………………………………………….…………72
RESEARCH METHODOLOGY
…………………………………………………………….…………..73
CHAPTER – 4
……………………………………………………………………………………….……………79
DATA ANALYSIS
………………………………………………………………………….………………80
8
CHAPTER – 5
…………………………………………………………………………………….………………99
RECOMMENDATIONS AND SUGGESTIONS
…………………………………….……………100
CHAPTER – 6
……………………………………………………………………………………….………..…104
CONCLUSION
…………………………………………………………………………….……………….105
CHAPTER – 7
……………………………………………………………………………………….…………...106
ANNEXURE
………………………………………………………………………………………………...107
BIBLIOGRAPHY
…………………………………………………………………………………………..109
MY LEARNING FROM SUMMER INTERNSHIP
…..…………………………………………..110
LIST OF FIGURES
Page No.
FIG 1: USE OF WET WIPES………………………………………………………………………
…………80
9
FIG 2: MARKET SHARE OF WET FACIAL WIPES
……………………..…………………………...81
FIG 3: FREQUENCY OF USE OF WET WIPES
……………………….……………………………….82
FIG 4: PREFERRED PLACE TO BUY SKIN CARE
PRODUCTS………………………………….83
FIG 5: RESPONSE ABOUT IDEAL PACK……….
……………………………………………………...84
FIG 6: RESPONSE ABOUT IDEAL PRICE FOR A MEDIUM SIZE PACK……………….
…...85
FIG 7: PURPOSE OF USE OF WIPES………………………………………………………………...
....86
FIG 8: PERCEPTION OF CUSTOMER TOWARDS THE CONCEPT OF
WIPES............….87
FIG 9: AWARENESS OF KARA WIPES
……………….……………………………………………….88
FIG 10: MEDIUM MADE AWARE ABOUT KARA
WIPES……………………………………….89
FIG 11: SATISFACTION LEVEL TOWARDS KARA
WIPES.…………………………………...90
FIG 12: INFLUENCIAL ATTRIBUTES OF KARA WIPES
…………………………………….…91
FIG 13: ATTRIBUTES LEAD TO DISLIKE KARA WIPES
…………………………….…….….92
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FIG 14: ATTRIBUTES THAT DIFFERENTIATE KARA FROM OTHER BRANDS
…….93
FIG 15: WOULD KARA BE RECOMMENDED BY CUSTOMERS
………………….……..….94
FIG 16: GENDER DISTRIBUTION OF CUSTOMERS……………………………………..
…….95
FIG 17: AGE DISTRIBUTION
…………………………………………………………………….….….96
FIG 18: SHARE OF INCOME CLASS………………………………………………………….
.….….97
FIG 19: PROFESSION DISTRIBUTION…………………………………………………….. .….….98
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CHAPTER-1
INTRODUCTION
12
Aditya Birla Group is India's first truly multinational corporation. Global
in vision, rooted in values, the Group is driven by a performance ethic
pegged on value creation for its multiple stakeholders. The group has an
annual turnover of US$ 24 billion, market capitalization of US$ 23 billion,
and has over 100,000 employees belonging to over 25 different
nationalities on its rolls. The group has diversified business interests and
is dominant player in all the sectors in which it operates such as viscose
staple fibre, metals, cement, viscose filament yarn, branded apparel,
carbon black, chemicals, fertilizers, insulators, financial, service, telecom,
BPO and IT services.
Its subsidiary company Grasim is the largest exporter of Viscose Rayon
Fiber in the country, with exports to over 50 countries.
Grasim Industries is mainly focusing on increasing more awareness about
its newly launched Kara wet wipes. Being a new concept in India, it is very
difficult for the company to divert Indian customers to substitute
traditional handkerchief by Kara wet wipes. They are position the same
through their continuous and effective marketing communication. They
have an edge over their competitors because of its backward integration
and the raw material for Kara wet wipes is being provided from Birla
cellulose division.
I sampled in different markets of Lucknow to create awareness about the
product and give the commuters opportunity to use Kara wet wipes free
of cost for the first time approach. A field work has also been done to
know the response of the customers towards the brand of company,
brand of the competitors, their perception about using wet wipes etc.
through a formal questionnaire.
I was fortunate enough to get this opportunity to work with such a
multinational incorporation. As the group quotes its tageline, “Taking
India to the world”, it provided a lot of learning experiences those will
surely help in long run in my transformation towards corporate world.
13
Scope of the study
The data collected gives the clear picture of the product in the markets of
Lucknow, the study of this research, gives the company an indication about
whether it is feasible to move on with the persisting movements and marketing
strategies, and if no, then how to go about it and make it worthwhile for the
brand as well as the company. And conclude on what should be the most favored
deal.
The main purpose to conduct this marketing research is to find out the
perception of the consumer towards the new concept of the skin care wet wipes
whether they are not hesitant to accept this new concept of the wet wipes or
they still believes in the traditional method of using the formulized based
products. And even to study how much awareness of this product is there in the
market and the brand image of it.
Another main aim to conduct this study was to understand the retailers reactions
and expectation towards the KARA and to reduce the gap between the
expectations of retailers and in actual.
The study of consumers’ responses helps firms and organizations improve their
marketing strategies.
Purpose of the study
The objective of project was “To take measures for maximizing sales
opportunities and promote Kara in Lucknow market. Thus, approaching to
general public and introducing our products to them and reminding them until
they give a formal response was our priority task. However, along with it, a
primary research work was also done to supplement the field work.
14
Context of Study
Free samples were given to people along with a small briefing about the product
who showed good level of interest in Kara. The questionnaire was pre-designed
and during conversation, the questions were disguisedly asked.
Relevance of Study
The research work gives us an idea as to what difficulties Kara is facing in spite
of being a very good quality product. It gives a scope of improvement to rethink
on some marketing aspects like better discount slabs, refining target customers
etc. Since the TV advertisement campaign for Kara is gaining momentum,
aggressive selling can be practiced to offer Kara in major market of Lucknow.
Reporting: I reported to Mr. Surya Singh, Area Sales Manager who acted as the
delivery head for this particular project.
Team Constitution: The core team was made up of six members in trade
management area covering Lucknow. The one management trainee, one Sales
Officer and Area Sales Manager were involved in Trade Management. We all
together sampled people covering a particular market for a particular day.
I applied my learning at JIML
During the project my learning in classroom (case studies, freewheeling
discussions) proved to be very useful. At times I referred to my marketing book
for brand promotion & distribution channel of KARA. Basically all the marketing
communication tools for brand promotion and different distribution channel for
placing the KARA to retailers are applied in the field came from my marketing
knowledge. This comparison pushed me to revisit the plans/ strategy thought
out by me. This was of immense help in improving the quality of my inputs.
15
Achievements/Recognition:
Post the sampling activity, I was assigned to visit retailers along with one
salesman to take orders from retailers keeping Kara and place the product onto
new counters for the increment of sales as well as awareness. I got appreciation
from Area Sales Manager for high worth of order in a day and continuous
placement of the product onto new counters.
16
Chapter-2
Detailed Introduction of about the Topic
17
Summer Internship Profile
1) Modern Trade Management
Modern trade management deals with malls and shopping complex where
thousands of customers come daily to buy household items. Kara is available at
almost every mall in Lucknow however internees under this profile have to
check inventory levels of product, placing of the product as compared to
competitor products, visibility, customers’ reaction on seeing the product etc.
2)General Trade Management
In this profile, all the small retail shops are focused where I had to see if Kara is
already available with them, are the retailers happy about the response of the
product, sufficient inventory levels are maintained etc. Also there were many
retail shops which didn’t have any wet wipes and were apprehensive about
keeping the product. I had to market the product to such retailers and clarify any
doubts which retailer has about the product.
3) Marketing Research
This profile is a pure marketing research based where I have to ask respondents
to fill up a pre-designed questionnaire thus fulfilling the given objective. I chose
places like malls and major markets where I had to intercept respondents and
request them to take part in the research. Sample size was 156 which includes
both online and offline.
“STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA
WET WIPES IN LUCKNOW MARKET”
Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers, directly or indirectly about the products and
brands they sell. In a sense, marketing communications represent the “voice of
18
the company and its brands and are a means by which it can establish a dialogue
and build relationships with consumers. Marketing communications also
perform many functions for consumers. They can tell or show consumers how
and why a product is used, by what kind of person, and where and when.
Consumers can learn about who makes the product and what the company and
brand stand for; and they can get an incentive or reward for trial or usage.
Marketing communications allow companies to link their brands to other people,
places events, brands, experiences, feelings, and things. They can contribute to
brand equity by establishing the brand in memory and creating a brand image as
well as drive sales and even affect shareholder value.
Although marketing communications can play a number of crucial roles, they
must do so in an increasingly tough communication environment. Technology
and other factors have profoundly changed the way consumer process
communications, and even whether they choose to process them at all. The rapid
diffusion of powerful broadband internet connections, ad skipping digital video
recorders, multipurpose cell phones, and portable music and video players have
forced marketers to rethink a number of their traditional practices. These
dramatic changes have eroded the effectiveness of the mass media.
Sales promotion tools
19
Using Social Media Channels to Promote Kara
The main challenge in this era is to stand out from the crowd, and use of any non-
traditional channel of promotion can differentiate us from our competitors and
we can attract the potential customers.
One of every nine people on earth log on to social media channels every day and
spend 700 billion minutes a day sharing content on social media. Kara needs a
social media component, or may potentially lose the attention of over 750 million
social media users. Here are five fun ways to promote the product on social
media channels.
Facebook Offers
Facebook recently rolled out the new Facebook offers for fan pages, which is a
free service for Facebook page administrative. The Facebook offers feature is as
easy as posting a status update, and is an easy, fun way to promote the brand. We
can create a catchy, strong headline – remember, the offer will be competing with
lots of other status updates, photos and links in your fans’ news feeds. Next, add
an image that is recognizable in thumbnail form and represents our offer at a
glance. As a final step, add fine print or terms and conditions to avoid
misconceptions if our customers have. Fans redeem Facebook offers via their
smartphone or from an email that’s mailed to them after they get the offer.
20
Pin it to win it
One of the hottest new social media channels over the past twelve months is
pinterest, a social bookmarking site that acts as a virtual pin board, visually
saving and sharing recipes, favorite products, stunning images, beauty tips and
much more.
The company can take full advantage of the excitement surrounding pinterst by
creating “pin it to win” contests. Where it can share some beauty tips and at the
same time it can educate how regular use of wet wipes can keep our skin healthy.
These contests encourage users to pin products from the company website to
their own personal pin boards – the more pins or “repins” the product receives,
the better chance the customers have to win. This is a great way to drum up
excitement for a new variant or change in existing variant of Kara. The more
visually striking our product, the more successful our pinterest contest will be.
Reviews on Blogs
There are more than 164 million blogs on the internet and more than 133 million
blog readers. If we search long enough, we will find well written, popular blogs
covering almost any topic under the sun.
Many bloggers are interested in reviewing products and working with brands,
especially when free products are involved. Giving a blogger with a loyal
following a sample or complimentary product is a great way to get exposure for
Kara wet wipes. Readers trust their favorite bloggers’ opinions on products, and
a great product review can go a long way in building our brand. We can consider
offering a second product or exclusive discount for the blogger to give away to
their readers. Blogger reviews promoting our product will give us lots of
exposure.
21
Aditya Birla Group is India's first truly multinational corporation. Global in
vision, rooted in values, the Group is driven by a performance ethic pegged on
value creation for its multiple stakeholders. The group has an annual turnover of
US$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000
employees belonging to over 25 different nationalities on its rolls. The group has
diversified business interests and is dominant player in all the sectors in which it
operates such as viscose staple fibre, metals, cement, viscose filament yarn,
branded apparel, carbon black, chemicals, fertilizers, insulators, financial,
service, telecom, BPO and IT services. The origins of Aditya Birla Group can be
traced back to the 19th century when Seth Shiv Narayan Birla started trading in
cotton in the town of Pilani, Rajasthan. In the early part of the 20th century,
Group's founding father, Ghanshyamdas Birla, expanded the group and set up
industries in critical sectors such as textiles and fibre, aluminium, cement and
chemicals. In 1969, Aditya Birla, the then Chairman of the Group, put the group
on the global map. He set up 19 companies outside India, in Thailand, Malaysia,
Indonesia, the Philippines and Egypt.
Under Aditya Birla's leadership, the group attained new heights and it became
world's largest producer of viscose staple fibre, the largest refiner of palm oil, the
third largest producer of insulators and the sixth largest producer of carbon
black. After Aditya Birla's demise his son Kumar Mangalam Birla took over the
charge of the group and under his leadership the group has sustained the
significant position in the sectors in which it operates. The Group operates in 25
countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
22
Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,
Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and
Korea.
A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune
500. It is anchored by an extraordinary force of 130,000 employees, belonging to
30 different nationalities. In India, the Group has been adjudged "The Best
Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times
and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from
its overseas operations.
Globally the group has proved its mettle:
 A metals powerhouse, among the world's most cost-efficient aluminium
and copper producers. Hindalco-Novelis is the largest aluminium rolling
company. It is one of the three biggest producers of primary aluminium in
Asia, with the largest single location copper smelter
 No.1 in viscose staple fibre
 The fourth largest producer of insulators
 The fourth largest producer of carbon black
 The eleventh largest cement producer globally and the second largest in
India
 Among the best energy efficient fertiliser plants
 Among the world's top 15 and India's top four BPO companies
In India, the Group holds a frontrunner position as:
 A premier branded garments player
 The second largest player in viscose filament yarn
 The second largest in the core alkali sector
23
 Among the top five mobile telephony players
 A leading player in life insurance and asset management
 Among the top three supermarket chains in the retail business
Global Presence of the group
Aditya Birla Group has many subsidiary companies across the world. It has its
presence not only in Asian countries but also in European and African countries.
Thailand
o Thai Rayon
o Indo Thai Synthetics
o Thai Acrylic Fibre
o Thai Carbon Black
o Aditya Birla Chemicals (Thailand) Ltd.
o Thai Peroxide
Philippines
o Indo Phil Textile Mills
o Indo Phil Cotton Mills
o Indo Phil Acrylic Mfg. Corp.
Indonesia
o PT Indo Bharat Rayon
o PT Elegant Textile Industry
o PT Sunrise Bumi Textiles
o PT Indo Liberty Textiles
24
o PT Indo Raya Kimia
Egypt
o Alexandria Carbon Black Company S.A.E
o Alexandria Fiber Company
China
o Liaoning Birla Carbon Canada
o AV Cell Inc.
o AV Nackawic Inc.
Australia
o Aditya Birla Minerals Ltd. Laos
o Birla Laos Pulp and Paper Plantation Company Ltd.
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to keep
experimenting.
Diversified Businesses
Aditya Birla is organized into various subsidiaries that operate across different
sectors. Among these are viscose staple fibre, non-ferrous metals, cement,
viscose filament yarn, branded apparel, carbon black, chemicals, Modern
retail(under the 'More' brand of Supermarkets, and also under the Trinethra, and
Fabmall brands until recently), fertilizers, sponge iron, insulators, financial
25
services, telecom, BPO and IT services. The Group consists of four main
companies, which operate in various industry sectors through subsidiaries, joint
ventures etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTech
Cement.
Non Ferrous Metals
The groups non-ferrous metals are under Hindalco. It is a dominant player in
aluminum and copper. Its manufacturing locations are primarily in India, and it
owns mines in Australia. On February 11, 2007, the company entered into an
agreement to acquire the Canadian company Novelis for U$6 billion, making the
combined entity the world's largest rolled-aluminium producer. On May 15,
2007, the acquisition was completed with Novelis shareholders receiving $44.93
per outstanding share of common stock.
Hindalco has also recently acquired Alcan's stake in the Utkal Alumina Project
Joint venture in Orissa,India. Hindalco is a Fortune500 company, it makes
alumina chemicals, primary aluminum, rolled products, alloy wheels, roofing
sheets, wire rods, Cast copper rods, copper cathodes and several other products.
But the project has faced massive protests from locals. On 16 Dec 2001 three
tribal people were shot dead because they were opposed to the project.
Cement
The Group has two subsidiary companies in cement sector named as Grasim and
UltraTech cement. Together the two companies under the group account for a
substantial share of the cement market in India. UltraTech cement comprises the
erstwhile cement business of L&T which was acquired by the group. UltraTech
announced an increase in sales by 18% and Profit after Tax by 42% for the
quarter ending March 31, 2012.
26
Carbon Black
The Group is the fourth largest manufacturer of Carbon Black worldwide. It
operates out of facilities in Egypt, Thailand, India and China.It is a major supplier
to several major automobile tyre manufacturers worldwide.
Textile Business
The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber
industry. It operates out of India also such as in Laos, Thailand, Malaysia and
China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the
group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament
yarn businesses and spinning mills at several locations all over India and South
East Asia.
The group has pulp and plantation interests in Canada and has recently invested
in plantations in Laos the Aditya Birla group is also a major player in the branded
garments market in India. Its subsidiary, Madura Garments, is a major producer
of textile fabric as well as the brand licensee of Louis Phillip, Van Heusen and
Allen Solly in India. It operates company owned retail outlets in several cities in
India and now planning to go to Pakistan as well.
Telecom Services
Aditya Birla Group holds a 98.3% stake in Idea Cellular, a leading telecom
operator in India. Idea Cellular started off as a joint venture with the group,
AT&T and the Tata Group. However the stakes of the remaining partners was
eventually acquired by the group. After an Initial Public Offering on the Indian
Stock Markets, Idea Cellular now accounts for a third of the group's market
capitalization.
27
Other Business
Apart from the above businesses, the group is a major player in sectors like
Insulators, Fertilizers, IT (It owns PSI Data Systems Limited -
http://www.psidata.com), ITeS (It owns Trans-works and recently acquired the
Canadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services
(A joint venture with Sunlife) and more recently, Retail.
Beyond Business
Transcending business for over 50 years now, the Group has been and continues
to be involved in meaningful welfare-driven initiatives that distinctly impact the
quality of life of the weaker sections of society in India, South-East Asia and
Egypt.
In India, the Group's social projects span 3,000 villages. It reaches out to seven
million people annually through the Aditya Birla Centre for Community
Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its
focus is healthcare, education, sustainable livelihood, infrastructure and
espousing social causes.
The Group runs 42 schools, which provide quality education to over 45,000
children in India's interiors. Of these, over 18,000 children receive free
education. An additional 8,000 students receive merit scholarships. Likewise at
its 18 hospitals in India, more than a million patients are given extremely
subsidised medical care. To embed corporate social responsibility as a way of life
in organisations, the Group has set up the FICCI – Aditya Birla CSR Centre for
Excellence, in Delhi.
28
The Group transcends the conventional barriers of business and reaches out to
the marginalised because of its conviction of bringing in a more equitable society
and send out a message that "We care”.
MAJOR COMPANIES
The major companies of the Groupare among India's leading corporate. These
include:
Grasim:Viscose staple fibre, rayon grade pulp, cement, chemicals, textiles
UltraTech Cement Ltd:Ordinary Portland cement, Portland blast furnace
slag cement, Portland pozzolana cement and grey Portland cement
Samruddhi Cement: Cement
Hindalco: Aluminum, copper
Aditya Birla Nuvo: Garments, viscose filament yarn, carbon black,
textiles, insulators
Idea Cellular Ltd.: Telecom
Birla Sun Life Insurance Co.Ltd.: Life insurance
Birla Sun Life Asset Management Company Ltd.:Mutual fund
Aditya Birla Money Mart Limited: Mutual fund distribution
Aditya Birla Capital Advisors Private Limited (ABCAP):Private equity
advisory and investment management, for Indian and offshore investors
Aditya Birla Money Limited:Leading player in broking space
Aditya Birla Minacs IT Services Ltd.:Application development,
maintenance and enhancement solutions
Aditya Birla Minacs Worldwide Limited: Customer relations
management (CRM), integrated marketing services, knowledge process
outsourcing
Aditya Birla Finance Limited: Asset-based finance, corporate finance
and investment banking, capital market and treasury
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Birla Insurance Advisory & Broking Services Ltd:Non-life insurance
advisory and broking services
Non-life insurance advisory and broking services: Apparel retail
Peter England Fashions and Retail Ltd:Apparel retail
Madura Garments Exports Limited:Apparel export
Aditya Birla Retail Limited:Multi-format stores
Tanfac Industries Ltd.:Fluorine chemicals
Essel Mining & Industries Ltd.:Iron and manganese ore mining, noble
ferro alloys
REWARDS & RECOGNITION
2002
KHARACH unit won Chairman's Gold Award for manufacturing excellence.
2003
Birla Cellulose's HARIHAR (India) unit bagged "TERI Corporate
Environmental Award" for cleaner production, while keeping waste
generation at its lowest.
Birla Cellulose's KHARACH (India) unit was awarded "Green-tech Gold
Award" for environmental excellence, in recognition for its continuous
efforts in the field of sustainable development and environmental
preservation.
2004
Birla Cellulose's NAGADA (India) unit was awarded the coveted
"Stockholm Industry Water Award", a first time achievement in Asia.
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Grasilene division – HARIHAR won “Green-tech Environment Excellence
Gold” Award.
HARIHAR unit won “Golden Peacock Environment Management” Award.
2005
KHARACH unit won PSU- Quality Circle competition for South Gujarat
Industries
2007
HARIHAR Poly fibers wins 2007 “IMC Ramakrishna Bajaj award
2008
The President of India, Mrs. Pratibha Patil confers the much coveted
Rotary International Polio Eradication Champion Award on Mrs.
Rajashree Birla
2009
Grasim's pulp and fibre division wins the highly prestigious Asian CSR
Award.
Idea Cellular wins the Economic Times' "Emerging Company of the Year
Award for 2009".
2010
Hindalco ranked ninth across industries on Forbes Asia's Fab 50
companies list of Asia's 50 most valued companies.
Hindalco and Birla White declared winners in the Golden Peacock Awards
for Corporate Social Responsibility
The Rajiv Gandhi Environment Award for Clean Technology for the year
2009-2010 is awarded to Vikram Cement Works.
31
2011
Business Today’s Best Companies to work for in India’s survey, the Aditya
Birla Group was on the top of the league in their “rankings of most loved
companies”.
The Aditya Birla Group is ranked No. 4 in the list of global top companies
for leaders and No.1 in Asia Pacific for 2011, in a study conducted by Aon
Hewitt, Fortune Magazine.
32
An industry leader in aluminium and copper, Hindalco Industries Limited, the
metals flagship company of the Aditya Birla Group is the world's largest
aluminium rolling company and one of the biggest producers of primary
aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a
single location.
Established in 1958, we commissioned our aluminium facility at Renukoot in
eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal,
Birla Copper and the Nifty and Mt. Gordon copper mines in Australia,
strengthened our position in value-added alumina, aluminium and copper
products.The acquisition of Novelis Inc. in 2007 positioned us among the top five
aluminium majors worldwide and the largest vertically integrated aluminium
company in India. Today we are a metals powerhouse with high-end rolling
capabilities and a global footprint in 13 countries. Our consolidated turnover of
USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league.
Hindalco's businesses — creating superior value
Hindalco is one of the leading producers of aluminium and copper. Our
aluminium units across the globe encompass the entire gamut of operations,
from bauxite mining, alumina refining and aluminium smelting to downstream
rolling, extrusions, foils, along with captive power plants and coal mines.Our
copper unit, Birla Copper, produces copper cathodes, continuous cast copper
rods and other by-products, such as gold, silver and DAP fertilisers.
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Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified.
Several units have gone a step further with an integrated management system
(IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business
excellence model. We have been accorded the Star Trading House status in India.
Hindalco's aluminium metal is accepted for delivery under the High Grade
Aluminium Contract on the London Metal Exchange (LME). Our copper quality
standards are also internationally recognised and registered on the LME with
Grade A accreditation.
Aluminium
Hindalco's major products include standard and
speciality grade aluminas and hydrates, aluminium
ingots, billets, wire rods, flat rolled products,
extrusions and foil.The integrated facility at
Renukoot houses an alumina refinery and an aluminium smelter, along with
facilities for the production of semi-fabricated products, namely, redraw rods,
flat rolled products and extrusions. The plant is backed by a co-generation power
unit and a 742 MW captive power plant at Renusagar to ensure the continuous
supply of power for smelter and other operations.
A strong presence across the value chain and synergies between operations has
given us a dominant share in the value-added products market. As a step
towards expanding the market for value-added products and services, we have
launched various brands in recent years — Everlast roofing sheets, Freshwrapp
kitchen foil and Freshpakk semi-rigid containers.
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Copper
Birla Copper, Hindalco’s copper unit, is located in
Gujarat. The unit has the unique distinction of
being the largest single-location copper smelter in
the world. The smelter uses state-of-the-art
technology and has a capacity of 500,000 tpa.
Birla Copper also produces precious metals, fertilisers and sulphuric and
phosphoric acid. The unit has captive power plants for continuous power
generation and a captive jetty to facilitate logistics and transportation.
Birla Copper upholds its longstanding reputation for quality copper cathodes and
continuous cast copper rods by assuring its management processes meet the
highest standards. It has acquired certifications such as ISO-9001:2000 (Quality
Management Systems), ISO-14001:2004 (Environmental Management System)
and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
Mines
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003.
The Birla Nifty copper mine consists of an underground mine, heap leach pads
and a solvent extraction and electrowinning (SXEW) processing plant, which
produces copper cathode.
The Mt. Gordon copper operation consists of an
underground mine and a copper concentrate
plant. Until recently, the operation produced
copper cathode through the ferric leach process.
In 2004, a copper concentrator was commissioned
to provide concentrate for use at Hindalco's operations in Dahej.
Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with
Hindalco for supply of copper concentrate to the copper smelter at Dahej.
35
Idea Cellular Limited was incorporated in 1995, and now ranks third in terms of
all-India wireless revenue market share at 13.6 per cent.Idea ranks second with
23.6 per cent revenue market share in nine service areas where it holds 900 MHz
spectrum and which derive about 41 per cent of the industry’s all-India
revenues. The market positioning of Idea reflects the strength of its brand
considering the fact that Idea added 11 out of its total 22 service areas in the past
four years. Today, it is a pan-India player with commercial 2G operations in 22
service areas, and 3G in nine of these circles. Its subscriber base has grown
multifold, from 7.37 million in March 2006 to 89.5 million in March 2011.
Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom
majors Bharti Airtel and Vodafone. Indus Towers is the world's largest tower
company with over one lakh towers.
Idea enjoys a market leadership position in many of its operational areas. It
offers GPRS on all its operating networks for all categories of subscribers, and
was the first company in India to commercially launch the next generation EDGE
technology in Delhi in 2003. As a pioneer in technology deployment, it has been
at the forefront through the adoption of bio fuels to power its base stations, and
by employing satellite connectivity to reach inaccessible rural areas in Madhya
Pradesh.
Idea has been a leader in the introduction of value-added services, and there are
many firsts to its credit, including a voice portal 'Say Idea', Idea TV, voice chat
and instant messenger. Tariff plans have been customer-friendly, catering to the
unique needs of different customer segments, for instance the 'Women's Card'
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caters to the special needs of women on the move, and 'Youth Card' covers the
emerging youth segment.Idea has a network of over 70,000 cell sites covering
the entire length and breadth of the country.The company has over 3,000 service
centres servicing Idea subscribers across the country. Idea’s service delivery
platform is ISO 9001:2008 certified, making it the only operator in the country to
have this standard certification for all 22 service areas and the corporate office.
Achievements
Idea has won numerous awards and is the only Indian GSM operator to win the
prestigious GSM Association Award consecutively in the best mobile technology
category for the Best Billing and Customer Care Solution both in 2006 and in
2007, even in the face of international competition.
Idea was adjudged the ‘Emerging Company of the Year’ by The Economic
Times. Brand Idea has won many accolades for its innovative communication.
The ‘What an Idea, Sirji’ ads have won four Effies from 2008-2010, making it
one of the ‘Buzziest’ brands in the country.
In 2011 Brand Idea moved to the No. 4 position amongst all service brands in
the 'Most Trusted Brands Survey' conducted by Economic
Timespublication.Idea's biggest campaigns – "Break the Language Barrier"
and "No idea – Get Idea" were ranked globally as the best brand campaigns
2011 at MMA Global Awards and World Communication Awards, London.
In radio, Idea won six awards at the Golden Mikes Awards 2011 and was
adjudged the Advertiser of the Year. Besides, Idea has also won a series of
Digital Awards, the biggest being the Yahoo Big Chair where it won Gold.
IDEA Cellular has been recognized as the 'Most Customer Responsive
Company' in the Telecom sector, at the prestigious Avaya GlobalConnect
Customer Responsiveness Awards 2010.
Idea's subscriber base as at the end of August 2011 according to the
statistics,is totalling to 98,441,714.
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UltraTech Cement Limited is India's biggest cement companyand India’s largest
exporter of cement clinker based in Mumbai,India.The company is division
of Grasim Industries. It has an annual capacity of 52 million tonnes. UltraTech is
India's largest exporter of cement clinker. The company's production facilities
are spread across eleven integrated plants, one white cement plant, and one
clinkerisation plant in UAE, fifteen grinding units, and five terminals.
UltraTech's success is attributed to its diverse product offerings. Different
products are handled by different product groups, which are also known as
profiles. Product groups decentralise control and encourage innovation. They
also ensure better customer segmentation, which in turn leads to better
customization of product offerings and guarantees cent percent customer
satisfaction. UltraTech Cement, Birla White, UltraTech Concrete, UltraTech
Building Products and UltraTech Solutions are the different profiles of UltraTech,
each catering to varied needs. This versatility has been a key competitive
advantage for UltraTech over the years.
UltraTech is the 10th largest cement manufacturer in the world making it a
significant global player. It has grinding units, jetties, bulk terminals and
integrated plants all across the world. UltraTech Cement is the country's largest
cement clinker exporter, catering to export markets in countries across the
Indian Ocean, Africa, Europe and the Middle East. Such diverse presence across
countries has helped UltraTech leverage economies of scale and enabled it to
become a name to reckon with in the international market.
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UltraTech’s journey began almost three decades ago and throughout this
journey, the focus has always been on providing customers with the best
products and services. The resulting success has only reaffirmed UltraTech’s
desire to be a complete end-to-end building solutions provider. Each milestone
in this journey is a cherished memory: becoming the largest cement
manufacturer in India, winning the ‘SUPERBRAND’ and 'POWERBRAND'
accolades and being recognised as a truly global organization, are a few that
stand out.
UltraTech’s inception can be traced back to the mid-1980s with the
establishment of Grasim’s first cement plant at Jawad in Madhya Pradesh. In
2001, with the objective of increasing its reach, Grasim acquired a stake in L&T
Cement Ltd. The stake was further increased to a majority stake in 2003 thereby
giving Grasim a pan-India presence and an increased market share. In 2004, the
demerger of L&T’s cement business was completed and Grasim acquired a
controlling stake in L&T Cement Ltd and the name was subsequently changed to
UltraTech cement. The cement business of Grasim was demerged and vested in
Samruddhi Cement Limited in May 2010, with Samruddhi Cement Limited
consequently being amalgamated with UltraTech Cement Limited in July 2010. In
September 2010, UltraTech Cement Middle East Investments Limited, a wholly
owned subsidiary of UltraTech Cement acquired management control of ETA
Star Cement Company, along with its operations in the UAE, Bahrain and
Bangladesh, thereby putting UltraTech on the global map.
Today, UltraTech Cement is the tenth largest producer of cement globally. It has
a diverse presence across the globe. The company has eleven integrated plants,
one white cement plant and one clinkerisation plant, which is based in the UAE.
Furthermore, UltraTech has 15 grinding units across the world: 11 in India, 2 in
UAE and 1 each in Bahrain and Bangladesh. It also has 2 rail bulk terminals in
India, 3 coastal terminals, out of which 2 are located in India and one in Sri
Lanka.
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UltraTech Cement is the largest selling single brand cement in India and the
largest cement clinker exporter. UltraTech's products include Ordinary Portland
Cement, Portland Pozzolana Cement and Portland Blast Furnace Slag cement.
UltraTech is the most trusted and preferred brand of Engineers, builders,
contractors and individual house builders. Today, UltraTech is used in vital
structures like dams, bridges, flyovers, airports, metro railways apart from
residential and commercial structures.
Ready mix concretes of UltraTech operate under the mother brand of UltraTech
Concrete. UltraTech Concrete sub-brands are christened 'Fibrecon', 'Free Flow',
'Colourcon', 'Stainless', 'Thermocon', 'Hypercon', 'Pervious' and 'Décor', each of
which offer a unique value proposition and cater mainly to specific requirements
of large infrastructural projects.
UltraTech Building Products manufactures and markets technologically
reengineered products including dry mix mortars and blocks for the construction
and infrastructure industry. The sub brands of UltraTech Building Products are
'Seal & Dry', 'Super Stucco', 'Readiplast', 'Fixoblock', 'Xtralite' and 'Powergrout'.
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UltraTech Building Solutions (UBS) is a novel concept in the Indian Construction
Industry. It is a one stop shop designed on the "plan, build and support"
philosophy, which offers home building solutions right from planning to
completion. UBS is based on a franchise model that caters to the building and
construction needs of individual home builders as well as the entire building and
construction fraternity. Collaboration is the key to UBS which houses renowned
brands of building materials apart from its own cement, namely paint,
construction chemicals, steel, pipes and fittings. A basket of services like
technical advisory, vaastu services, House Layouts and Construction Cost
Calculator, also form a significant part of the offerings at UBS.
The UltraTech brand houses its white cement products under the umbrella of
'Birla White'. Birla White's range comprises of Birla White Cement and other
finishing products, widely used for interiors and exteriors including flooring,
walls and ceilings. The sub brands of Birla White are 'Wallcare', 'Textura',
'Levelplast' and 'GRC'.
Star Cement is a leading manufacturer of cement in the Middle East. Its
operations are spread across UAE, Bahrain and Bangladesh with an installed
capacity of 3 million metric tons per annum.
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Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with consolidated net revenue of
Rs.202 billion and a consolidated net profit (before extraordinary items) of
Rs.27.6 billion (FY2010).
Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise
viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are
VSF and cement, which contribute to over 90 per cent of its revenues and
operating profits.The Aditya Birla Group is the world’s largest producer of VSF,
commanding a 21 per cent global market share. Grasim, with an aggregate
capacity of 333,975 tpa has a global market share of 10 per cent. It is also the
second largest producer of caustic soda (which is used in the production of VSF)
in India.Grasim is the largest exporter of Viscose Rayon Fiber in the country, with
exports to over 50 countries. This, along with Aditya Birla Nuvo can be
considered as the flagship companies of the AV Birla Group.
Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made,
biodegradable fibre with characteristics akin to cotton. As an extremely versatile
and easily blendable fibre, VSF is widely used in apparels, home textiles, dress
material, knitted wear and non-woven applications.
Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat
and Harihar in Karnataka, with an aggregate capacity of 333,975 tpa.
Nagda
Nagda is its largest unit producing a wide range of VSF to suit customer
42
requirements in terms of length, denier and colour and also second and third
generation fibres like Modal, Excel and Solvent Spun fibres, respectively. Nagda
is also the largest producer of spun-dyed specialty fibre in the world.
Harihar
The Harihar unit houses facility for manufacture of both VSF and rayon grade
pulp, the basic raw material for VSF. The company's Rayon Grade plant was the
first in India to use totally indigenous wood resources with in-house technology
for producing rayon pulp with an innovative oxygen bleaching process to reduce
the use of chlorine.
Kharach
The VSF plant at Kharach, set up in 1996, employs the most modern technology
giving it a competitive edge in the export market.
Joint Ventures (JV)
Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole
manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per
cent of Thai Rayon's VSF throughput is directly exported to more than 20
countries worldwide. The VSF meets the stringent quality expectations of
customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea,
Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka.
PT Indo Bharat Rayon Marketed under the brand name of 'Birla Cellulose', the
company produces a wide range of VSF in engineered specifications for textiles
and non-woven applications. The company's strong focus on environmental
protection is reflected through its investments in a sophisticated state-of-the-art
waste-water treatment plant and scientific waste disposal systems.
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Grasim has joint venture with the following overseas companies:
 AV Cell and AV Nackawic in Canada
AV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSF
units in India, Thailand and Indonesia.
 Birla Lao Pulp & Plantation Limited in Laos
To further strengthen the backward integration in pulp, Birla Lao has
been formed as a JV with other associate companies for raising captive
plantations at Laos. This will provide a low cost source for wood to meet
future requirements of a green field pulp plant in due course of time.
 Birla Jingwei Fibres Company Limited in China
The JV with Hubei Jingwei Chemical Fibre Company Ltd. was formed in
2006 for manufacturing VSF. Currently, this plant has a capacity to
produce VSF of 35,000 tpa.
This spread and scale of operations make the Group's VSF operations very cost
competitive. Moreover, vertical integration into plantation, manufacturing of rayon
grade pulp and horizontal integration into production of principal raw material
required for VSF production, namely, caustic soda, intermediate inputs namely CS2,
sulphuric acid along with captive power and steam generation facilities, further
enhance its competitive edge.
Research& Development
Grasim has established a very strong R&D base covering different stages of the
value chain such as:
Grasim Forest Research Institute, Harihar is involved in R&D of forestry. Birla
Research Institute for Applied Sciences (BRI), Nagda is involved in the
development of different generations of cellulosic fibres. Textile Research
Application Development Centre (TRADC) at Kharach, a NABL accredited Lab, is
44
involved in addressing research and development related to downstream textile
value chain comprising various fibres, yarns, processing, garments, etc.
With the capability to offer the entire range of cellulosic fibre under the umbrella
brand of “Birla Cellulose”, Grasim has positioned itself as a dependable supplier
of cellulosic fibres for “Feel, Comfort & Fashion” across global markets. To
penetrate into niche market segments and to grow further, the division has
ventured into the production of high performance viscose fibres aptly named
Viscose Plus, High Wet Modulus Fibres (Modal) and new generation Solvent
Spun Fibres and Birla Excel.Grasim is also the largest producer of Sodium
Sulphate, a byproduct of VSF manufacture. This chemical is widely used in the
paper and pulp, detergent, glass and textile industries.
Cement
Grasim has grown to become a leading cement player in India. Grasim ventured
into cement production in the mid 1980s, setting up its first cement plant at
Jawad in Madhya Pradesh and since then it has grown to become a leading
cement player in India.
Grasim’s cement operations today span the length and breadth of India, with 11
composite plants, 11 split grinding units, four bulk terminals and 64 ready-mix
concrete plants as on 30 June 2009.
All the plants are located close to sizeable limestone mines and are fully
automated to ensure consistent quality. All units use state-of-the-art equipment
and technology and are certified with ISO 9001 for quality systems and ISO
14001 for environment management systems.
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Chemicals
Grasim has India's second largest caustic soda unit. Rayon grade caustic soda is
an important raw material in VSF production. To achieve a reliable and
economical supply of this chemical, Grasim set up a rayon grade caustic soda unit
at Nagda in 1972, with an initial capacity of 33,000 tpa. This has since grown to
258,000 tpa, making it the country's second largest caustic soda unit.
Textiles
Grasim has strong nation-wide retail network and also caters to international
fashion houses in USA and UK. Grasim has a strong presence in fabrics and
synthetic yarns through its subsidiary, Grasim Bhiwani Textiles Limited, and is
well known for its branded suitings, Grasim and Graviera, mainly in the polyester
- cellulosic branded menswear.
Grasim's strong nationwide retail network includes 50 exclusive showrooms as
well as 200 wholesalers and 25,000 multi-brand outlets through which it reaches
its customers. Grasim caters to international fashion houses in the USA and UK
supplying fabric to them for manufacturing of garments, which are available in
some of the largest retail chain stores.
Sources of competitive advantage
Cost: Grasim is the lowest cost producer of VSF in the world. It is the most
integrated fibre producer with the chain stretching right from Forest to Pulp to
Fibre to Yarn. All most all the intermediate inputs are captive. Besides, their in-
house engineering division enables us to grow in a most cost effective way.
Technology: On technology front, they produce all the three generations of man-
made cellulosic fibres from an in-house developed capability through research
and development. Their research and development efforts are not limited to
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fibre stage alone but extend to entire textile value chain. While the plantation
and related activity is carried out at Grasim Research Institute (GFRI, Harihar,
India), the Product innovations are carried out at Birla Research Institute (BRI,
Nagda, India). For value chain related activities, a state of art “Textiles Research
& Application Development Centre” has been established at Kharach, Gujarat-
India to entire textile value chain from yarn to fabric to garments.
Markets: On marketing front, their reach extends to the entire globe, through
marketing offices. On a global level, their major strength is in spun-dyed fibres
and now other specialties such as Non-woven, Modal and Excel have started
penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched
in the market. Their value added marketing services comprising of technical,
logistical, financial, marketing and informational support have enabled us to
emerge as the most preferred supplier of VSF in world.Our offerings whether
from India, Thailand, Indonesia or China are all marketed under the mother
brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel.
An umbrella brand has enabled us to create a common identity for our product
across the globe irrespective of its production origin and creating of awareness
of the brand.
Consumer Products Division of Grasim Industries
Grasim Industries, an Aditya Birla Group Enterprise has started its Consumer
Product Division with various personal care & home care dry & wet wipes
products. This marks the company’s foray into the Indian FMCG market.The
Indian FMCG market is of US$13.1 billion and is the fourth largest sector in the
economy. FMCG Sector is expected to grow by over 60% by 2015. That will
translate into an annual growth of 10% over a 5-year period.
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In 2008 the company launched Kara skin care wipes and Prim Home Care wipes.
Kara Skincare wipes is positioned as an essential skincare accessory.
In 2009, Grasim entered the baby care segment with the launch of Puretta.
Puretta is targeted at today's mother, who opts for a contemporary and
convenient lifestyle. Introduced for the first time in India, the Puretta product
portfolio includes Complete Cleaning Wipes, Germ Shield Wipes and Skin
Nourishing Wipes.
Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of
cellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose
Plus, Birla Modal, and Birla Excel. These brands offer a wide range of functional
benefits such as soft feel, high moisture absorbency, bio degradability and
comfort to the wearer. These fibres have multiple applications including apparel,
home textiles, dress material, knitwear, non-woven etc.
Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in
1954. Birla Cellulose is a world leader in viscose staple fibre (VSF). Its
production is spread across six countries, viz. Canada, Thailand, India, Indonesia,
China and Laos. The Group independently fulfils India's entire VSF requirements.
With a strong focus on Research and Development (R&D), the Group's R&D
initiatives span the entire value chain.
 Grasim Forest Research Institute — pulp to plantation research
 Birla Research Institute for Applied Sciences — pulp to fibre research
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 Textile Research & Application Development Centre (TRADC) — value
chain from fibre to garments / made ups
"Nature is the genesis of all that surrounds us; therefore, what other than nature
could be the origin of Birla Cellulose.”. Nature is the source of Birla Cellulose and
herein the inspiration of our logo lies.
'Fibers from Nature' is our theme and our message: Leaves fall and grow all over
again; they are a renewable resource of nature. Birla Cellulose is much like these
leaves and is made from the same trees. The floating leaves symbolise the key
characteristics of Birla Cellulose which are "comfort and lightness". The vibrant
green indicates that Birla Cellulose can take on vibrant colours. The circle
signifies the cycle of nature and sustainability.
Nature remains the underlying theme for all our brands:
 Viscose is symbolised by the fresh green of summer
 Modal is symbolised by the burnt orange of autumn
 Excel is symbolised by the deep pink of spring.
An integrated outlook
Birla Cellulose is growing by leaps and bounds through both organic and
inorganic route. The efforts towards integration and self-sufficiency are as
follows:
 Backward integration into pulp and plantation.
 Captive power plant at all locations.
 In house manufacturing of all major chemicals and auxiliaries used in VSF
manufacturing.
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Attributes of Birla Cellulose
Natural: Soothing, comforting and elevating, Birla cellulose exhibits all qualities
of its source nature.
Stylish:The drape and fall of Birla Cellulose with its natural inheritance is a
fashion statement.
Timeless: Just like nature, Birla Cellulose, is timeless and shall always remain in
vogue.
A fashion catalyst: A hint of Birla Cellulose in your wardrobe brings in the
glamour that differentiates between mundane and fashionable.
Versatile: Birla Cellulose combines the best properties of all fibres. It is
extremely bendable hence enhancing the realms of possibilities in clothing.
Birla Cellulose - Fibres from nature contributing to a green world
Preserving our environment has always been the inspiration behind Birla
Cellulose. It has successfully achieved this goal through the following initiatives:
 Nurturing and building the green cover
Over a million plantlets are being produced from identified superior
clones for development of clonal orchards and plantations.
 Land conservation
Efforts are on to encourage tree-farming practice on marginal, sub-
marginal and fallow lands to the best advantage of the country. The yield
of Viscose is seven times that of cotton for the same land area. Thus
significantly contributing to conservation of land, and reaping maximum
results from this limited resource.
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 Water conservation
Birla Cellulose Viscose is highly environment friendly. Every kilogram of
viscose produced saves 200 buckets of water when compared to cotton.
Thus it preserves one of the most valuable natural resources.
 Process friendliness
The process being followed for production is environment friendly and
green due to the following advantages:
Non toxic effluent as a result of replacement of zinc by alum
Less solid waste generation due to reduced lime consumption
Reduced risk of fouling biological microorganism in reactor
 Spun Shades
This variant is environment friendly and results in conservation of water
throughout the value chain. It is Okeo Tex certified, i.e. it meets the
ecological requirements set for baby articles.
Birla Cellulose: The perfect blend
Birla Cellulose fibres are the perfect blend with all types of fibres. The benefits of
using Birla Cellulose as a blend are as below:
Birla Cellulose blends Benefits of blending with Birla Cellulose
Birla Cellulose-cotton Makes cotton soft and supple
Improves fabric uniformity
Imparts sheen and colour brilliance
Birla Cellulose-wool Improves wear properties
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Imparts softness
Enhances skin friendliness
Adds shine and luster
Birla Cellulose-silk Maintains sheen of silk
Improves comfort
Economical and fashionable
Birla Cellulose-
synthetics
Improves comfort, breathability, lustre and skin
friendliness
Birla Cellulose-elastane Offers excellent sheen, comfort and stretch
Birla Cellulose-elastane Offers excellent sheen, comfort and stretch
PRODUCTS OF BIRLA CELLULOSE
Aditya Birla group announced its foray into the baby care segment in India by
launching ‘PURETTA’ 100 per cent natural and biodegradable baby care wipes in
2009. Product portfolio includes Complete Cleansing Wipes, Germ Shield Wipes
and Skin Nourishing Wipes. These wipes are safe for the baby’s delicate skin as
they are alcohol free, hygienic, hypoallergenic and dermatologically tested. Since
Puretta (meaning pure and diminutive) is made from Birla Cellulose, soothes the
baby’s tender skin with its soft and nature-friendly properties.
While the usage of baby wipes is growing in India, there is limited access to
quality products at the right price points. Most of the products available today
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are imported, and are primarily regular wet wipes that do not serve the specific
needs of baby care. Puretta fills this gap with its three distinct variants, aiming to
satisfy the need of Smart Moms.
Most of the other wet wipes in the market today are made from Polyester-
Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its
repeated use on the skin is not advisable. Paper tissues tear off when rubbed
over skin and leave lint on face in a way that can often embarrass the user. While
Puretta is made up of non-woven fabric which absorbs sweat, extra oils from the
skin without scrubbing it. It doesn’t wither when rubbed hard and doesn’t leave
lint on facial skin or stubble.
Characteristics of Puretta Baby Wipes
 Safe for baby’s skin.
 Hygienic.
 Hypoallergenic
 Dermatologically tested.
 Alcohol free.
 With mild fragrance.
 Convenient- hassle free cleaning and application of lotions without using
towel or cotton balls.
 Portable.
 With optimized efficacy.
 For complete baby care.
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Variants of Puretta
 Complete Cleansing Wipes
Complete cleansing baby wipes are enriched with chamomile extracts these
wipes are gentle and soothing to the baby’s skin ensuring complete cleansing
while retaining the pH balance of the skin. It is a smart way to clean the baby
completely anytime & anywhere.
It is basically used on baby’s nappy area and can be used on complete body of a
0-3 years of babies. It is used for following:
Every nappy or diaper change.
For cleansing in the absence of regular bath while travelling or in
winters.
Wipe entire body to keep baby clean and fresh at all times, day or night.
Provide soothing relief.
Most of the other wet wipes in the market today are made from Polyester-
Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its
repeated use on the skin is not advisable.
Paper tissues tear off when rubbed over skin and leave lint on face in a way that
can often embarrass the user. While Puretta is made up of non-woven fabric
which absorbs sweat, extra oils from the skin without scrubbing it. It doesn‟ t
wither when rubbed hard and doesn‟ t leave lint on facial skin or stubble.
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 Skin Nourishing Wipes
Skin Nourishing Baby Wipes keeps the baby’s skin soft and nourished always,
after a bath or even during the dry season. Enhanced with Mineral oil and Pear
extracts, it leaves a protective layer of moisture on the baby’s delicate skin. A
smarter way to keep the baby’s skin nourished anytime, anywhere.
It is used on baby’s complete body especially hands, feet, face, neck and back
area. It is a good add-on or occasional substitute for baby oil massage. It is
basically for babies of age 0-3 years but can also be used for older children with
sensitive skin. And it is used for following:
Essential to keep baby’s skin soft and nourished always.
After bath and during dry season.
While travelling or exposure to air-conditioning at home
 Germ Shield Wipes
Germ Shield Baby Wipes contains antiseptic properties to protect the babies
from germs always. Enriched with Lavender extracts, it leaves the baby’s skin
refreshed. A smart multipurpose option for not only sanitizing baby’s hands and
mouth but also utensils, tethers and toys, anytime and anywhere.
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It is basically for 0-5 year old babies but can also be used by older children while
travelling and also advisable for adults handling the babies. And it is used for
protecting the babies from germs throughout the day with natural antiseptic
properties.
Essential to clean baby as he/she gains mobility and crawls on surface
that may be contaminated.
After play time, before food and especially while travelling.
To sanitize baby’s utensils, tethers and toys.
PRIM
Home & Kitchen Care Wipes
PRIM is basically dry wipes used in Kitchen and various multipurpose household
works. It can be used to wipe the utensils and cutleries. One wipe can be used for
at least a month in the kitchen. There is no product in the market in this category
but Scrotch brite is there which is seen as the substitute of the product. Usually
cloth is used as the substitute in most of the families but if the promotion is done
properly to make the consumers aware of this product it will do very good in the
market because of very less competition in this category. There are two packs
available in the market one is three wipes pack and the other one in five wipes
pack.
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HANDYS - Hand sanitizing wipes
Handys hand sanitizing wipes have been shown to clean and sanitize hands more
effectively than rub-in gels. These sanitizing wipes are extra tough on germs,
killing 99.9% of germs. Though there are few companies who manufacture
sanitizing wipes, but all of them are alcohol based. Handys is the only sanitizing
wipe which is Triclosan based and as sufficient as alcohol in killing germs.
Triclosan is one of the antibacterial and antifungal and even toothpaste. Grasim
Industries outsource Triclosan from vivimed Labs based in Hyderabad. The
wipes contain 0.1% Triclosan which is sufficient to give required anti bacterial
properties.
Rub-in gel sanitizers can not remove stain marks or dirt but sanitizing wipes are
very efficient in cleaning hands. It is gentle on hands, containing moisturizers,
aloe vera and silicones. Clinically tested, our hand sanitizing wipes provide
convenient protection anywhere, anytime when soap and water are not
available. It is an excellent product for anybody seeking hygiene and prevention
from infections.
KARA Skin Care Wipes
Grasim Industries has started its Consumer Product Division with various FMCG
products which includes personal care & home care dry & wet wipes products.
The main product of our concern for the research is Kara Skincare wipes.
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It is not easy to look beautiful all the time and it gets even harder when you are
out of home with pollution, dust and heat. Introducing for the first time in India,
Kara a complete range of skincare wipes.
In India, the market for wet wipes was gradually picking up with changing
lifestyles and the fast pace of life among the young and upwardly mobile
population with higher disposable income.
''Kara skincare wipes fill up the lacuna in this segment as there is lack of
availability of quality products at appropriate price in the Indian market.''
Kara Skincare wipes is a new product to hit the Indian market. The brand is now
running heavy print campaign announcing the launch. Kara Skincare wipes can
be called as India's first branded skincare wipe product. Skincare wipes are
popular in the west but in India the category is a new one. Although Indian
consumers are familiar with the products which are imported, it’s the first time
that an Indian company enters this segment Kara means care. The brand also
marks Aditya Birla Group's foray into the Indian FMCG market.
The brand aims to create a new category of wipes in India. Hence the challenge is
to educate the target audience about the usefulness of this product. This task is
cut out for Kara since the customer is already exposed to such products. The only
task is to inculcate the habit of buying and using the wipes. The product is
relevant in the Indian market for two reasons.
 One is the climate which necessitates such a product and
 Second is the growing number of lady professionals.
The brand has the tagline “At your best always” this clearly communicates the
core brand positioning. The brand is being promoted as the anytime solution to
look good.
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Also Kara is loaded with lotions for different application like deep pore cleansing,
moisturizing, toning, sunscreen and make up remover.
Rejuvenating the skin is a natural property of mint oil and cucumber coupled with
aloe Vera for skin nourishing – in refreshing wipes.
Jojoba and Avocado unclogs pres, detoxes and exfoliates dead skin in Deep Pore
Cleansing wipes.
Rose and Thyme are well known to have toning properties – used in Toning Wipes.
Honey and Almond are age – old products for removing dryness of skin and
moisturizing present in – moisturizing wipes
Aloe Vera and plum have natural sunscreen properties – Kara Sunscreen wipes.
Lavender cleaning and relaxing properties while Seaweed has nourishing effect on
skin – both used for makeup removal wipes.
Kara has a good potential to create and own a new category. The brand already
has the first mover advantage. But the category does not have much entry
barriers. It can face stiff competition from cheap imports. But Kara has the
financial backing of Birla group and the investment in building this brand will
pave the way for another successful marketing story.
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Kara is readily available pan India at superstores, cosmetic and chemist outlets
and modern retail. The ease of usability of a convenient and high value product
at an affordable cost in India for a young and mobile population is a huge
opportunity that Kara wishes to address.
Kara wipes were highly effective with unique formulations having natural
ingredients that nourish the skin. They are alcohol free and dermatologically
safe. Kara is made from 'Birla Cellulose', a fibre that is 100 % natural and
biodegradable
Compactly packaged and pre-moistened Kara skincare wipes give a hygienic,
convenient and effective skincare solution to the consumers on the go. These
wipes are easy to carry and use.
Raw Material Used for KARA
Kara is made of 100% Viscose. Viscose is Purer & Softer and more absorptive
than Cotton. VSF is 100% Natural and 100% Biodegradable. The material is non-
woven fabric which absorbs sweat, extra oils from the skin without scrubbing it.
It doesn’t wither when rubbed hard and doesn’t leave lint on facial skin or
stubble. Most other wet wipes in the market today are made from Polyester-
Viscose blended non-woven fabric or paper. Polyester is not skin-friendly and its
repeated use on the skin is not advisable. Paper tissues tear off when rubbed
over skin and leave lint on face in a way that can often embarrass the user.
How it works
The science behind this dullness is the formation of unstable molecules called
free radicals when your skin is exposed to elements like pollution, sun, wind,
temperature, and stress during the day. These react with the skin to deplete skin
proteins (collagen) and thus weaken the skin substrate to cause a slow
continuous ageing, which one does not realise till the effects start showing in the
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form of wrinkles and sagginess. How do we prevent this? The answer lies in a
regular dose of nourishment for your skin that is rich in antioxidants.
With a new innovative product range of Kara ™ Skincare Wipes rich in natural
extracts, this once incurable problem has found an extremely simple answer.
What you could not do so far through the day is now possible as many times as
you want. A critical three step action which cleans your skin, gives it essential
hydration and replenishes the vital nutrition of the skin can be done in one easy
swipe, thanks to the advanced skin wipe technology from Kara. Its unique
innovative three step action that is set to change your skincare routine, and
ensure that the skin stays young and vibrant all though the day.
1. Skin cleaning: Skin experts recommend thorough cleaning of the face before
applying anything in order to avoid blocking of pores with lotions which can
result in boils, acne and pimples. To take care of this, every skincare wipe has
fibrils on its surface which ensure thorough cleaning of the skin pores when they
come in contact with the skin.
2. Hydration: The benefits of water in preventing skin ageing and dullness are
well established. Each skincare wipe has 80% aqua loading which is transferred
to the skin, ensuring a rich, ageless and healthy skin.
3. Nourishment: Antioxidants are substances that combat free radicals, and thus
help reverse the process of ageing. A steady dose of antioxidants through the day
helps in preventing skin ageing. Each Kara wipe has natural ingredients like
avocado, aloe Vera and almonds etc. which serve as antioxidants, and thus
nourish the skin constantly to gradually reveal flawless glowing skin.
This three step action was always a very critical need for the skin, and with the
revolutionary wipe format of skincare, it has enabled women to rectify dull
sagging skin all through the day. Additionally, a mesh like structure of the easy-
to-carry around wipe helps to hold just the right amount of lotion for one time
usage, and a superior applicator technology that regulates the uniformity of
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lotion absorption into the skin. Therefore, the right amount of skincare at the
right time is the Kara way of doing skincare. Make Kara skincare wipes a habit,
and see your skin rejuvenate and glow with health and beauty, forever!
Manufacturing Facility of KARA
Kara wipes are manufactured at the company’s plant at Kharach, Gujarat. The
plant layout is approved by FDA and manufacturing activity takes place under
stringent conditions that ensure user safety and hygiene.
Aditya Birla Group launched this product i.e. KARA skincare wipes in 2008. It is
basically a solution to skin care regime out of home– a convenient way to be at
your best always. Sometimes your hectic schedule leaves you with little time to
take care of your skin. But with Kara skincare wipes in your bag, you can now take
care of your skin even when you are on the go.
With the unique formulation of natural ingredients, these wipes are easy to use
anytime and anywhere. What’s more they are made from Birla Cellulose, a fibre
that is 100 per cent natural and biodegradable.
Kara skincare wipes are the India’s first branded skin care product. These types
of products are very popular in west but in India the category is new one.
Although Indian consumers are familiar with the products which are imported, is
the first time that an Indian company entered this segment. The brand also
marks Aditya Birla Group’s foray into the Indian FMCG market. According to
reports, wipes market is worth around Rs. 30 crore (Source: Ginny filament
Website). Kara skincare wipes are positioned as an essential skincare accessory.
The brand is targeting the young lady professionals who often need to meet lot of
people. The brand aims to create a new category of wipes in India. Hence the
challenge is to educate the target population about the usefulness of this product.
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 Hassle free application of lotion without using cotton balls.
 Portable
 Optimized efficacy.
 100 per cent natural and biodegradable.
 Hygienic.
 Alcohol free.
 Dermatologically safe.
 Assurance of ‘Aditya Birla Group’
Variants of KARA
 Deep Pore Cleansing Wipes
Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of
dirt, grime and excess of oil. Enriched with Jojoba and Avocado extracts, it
unclogs pores, detoxifies and thoroughly exfoliates dead skin cells.
 Sunscreen Wipes
Kara sunscreen wipes has a formulation of SPF 20 which protects the skin
from the adverse effects of UV A and UV B sun rays. It is enriched with
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antioxidants like plum extract and vitamin E that nourishes the skin and
Aloe Vera that keeps the skin moisturized.
 Moisturising Wipes
Kara Moisturising wipes is enriched with the goodness of almond and
honey for beautiful radiant and glowing skin. It is also fortified with
vitamins for skin conditioning and is suitable for use right throughout the
year.
 Toning Wipes
Kara Toning Wipes is enriched with Rose and Thyme extract that tighten
the skin and maintain the normal pH balance.
 Make Up Removal Wipes
Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed
extracts that removes the make-up in just one swipe.
 Refreshing Facial Wipes
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Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment
and mint oil for effective freshening. It ensures effective cleansing to
remove dirt, excess oil and grime from the face and neck and also leaves a
lingering fragrance.
Disposable Wipes Market
Industrialization and urbanization has led to concentration of human settlement
at urban centers, which are the hub of the commercial activities. Industrialization
has also led to an increase in personal income levels and the consequential
expansion of the middle class, allowing a greater number of folks to indulge in
value added consumer disposable items like facial cleaning wipes,
moisttowelettes, personal hygiene wipes and time-saving products like
household cleaning wipes etc. The growing use of wipes in industrial and
consumer applications, combined with modernization and increased consumer
awareness, has led to an increase of demand of wipes globally.
Wipes started at the bottom or more precisely, the baby’s bottom. Yet, during the
past decade, the category has grown to include hard surface cleaning, makeup
applications and removal, dusting and floor cleaning.In fact, applications other
than baby care now account for about 50% of sales in the wipes category.
Disposable wipes have evolved into a global business concept generating more
than $5 billion in sales a year. Achieving strong double-digit growth year after
year, the category now assumes a major role in the personal care market.
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Spanning from make-up removal and deodorant wipes in personal care to floor
and furniture cleaning products in household care, disposable wipes have
gradually expanded to offer a wide range of new applications, replacing the
traditional combination of cloth, cotton and cleaning solution.
North America continues to be the leading market, and is projected to grow from
$4.5 billion in 2009 to $5.5 billion in 2014. Western Europe is second with sales
of $3.6 billion in 2009, which is predicted to grow to $4.2 billion in 2014.
According to reports, China represents more than 33% of the world’s spunlace
production, growing more than 33% between 2008 and 2009. More rapid gains
will be linked to developing nations such as China and India; China alone has
increased its demand for wipes to nearly $500 million in 2011 and will surpass
Japan as the leading market in the Asia/Pacific region.
Classification of wipes based on application
Wipes mainly cater into 3 categories:
1.Personal Care wipes
2.Household & home cleaning wipes
3.Industrial cleaning wipes
As per the EDANA’s report in 2010, the total wipes deliveries in 2010, amounted
to 283,058 tonnes to be compared to 250,356 tonnes in 2009. They subdivide as
shown in table 1.
Personal Care wipes:
The personal care wipes market has increased by 15.7% compared to 2009.
• Baby wipes: Baby wipes are wet wipes used to cleanse the sensitive skin of
infants. These are saturated with solutions anywhere from gentle cleansing
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ingredients to alcohol based cleaners. Baby wipes are typically sold in plastic
tubs that keep the cloths moist and allow for easy dispensing.
• Cleansing pads: Cleansing pads are fiber sponges that have been previously
soaked with water, alcohol and other active ingredients for a specific intended
use. There are different types of cleansing pads offered by the beauty industry:
makeup removing pads, anti-spot treatments and anti-acne pads that usually
contain salicylic acid, vitamins, menthol and other treatments).Cleansing pads
for preventing infection are usually saturated with alcohol and bundled in sterile
package. Hands and instrument may be disinfected with these pads while
treating wounds. Disinfecting cleansing pads are often included in first aid kits
for this purpose.
• Personal hygiene: These are usually pre-moistened and come either
individually packaged or in one larger container that can be resealed. These
kinds of wipes can be useful when you’re doing outdoor activities, especially
during warmer weather. The wipes can remove dirt and sweat before they settle
into your pores. Some no-rinse wipes can even remove waterproof makeup.
Household & home cleaning wipes:
• Kitchen wipes
• Bathroom wipes
• Food service wipes
• Glass surface cleaning wipes
• Automotive care wipes
Industrial cleaning wipe
When it comes to industrial applications, choosing the right wipe for the job can
make an enormous difference in terms of performance, efficiency and economy.
Rags and laundered cloths were once the all-purpose solution for wiping dirt and
oils from equipment and hands. Convenient disposable wipes are now widely
recognized as the preferred alternative.
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Global demand for wipes
Pre-moistened or wet wipes are normally supplied to the consumer already wet
or pre-moistened with a liquid, while the dry wipes are supplied dry, with the
understanding that the consumer will add a liquid if needed. In 2009, wet wipes
contributed around 71% of the total wipes market. Over time, dry wipes are
predicted to gradually gain market share, growing from 29% in 2009 to 30% in
2014.
Raw materials for wiping fabrics:
• Polyester: It is by far the most common fiber for carded technologies. Asper the
application and wipes categories the blend percentage varies. Normally the
Industrial wipes are made from 100% Polyester. It is estimated at nearly 43% of
the fiber consumed in spun lace.
• Viscose: It is another common fiber for wipes, especially for personal care.
Personal care wipes are used on very sensitive parts – baby care, facial wipes
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etc.It has to be very soft, smooth and silky. Viscose fiber has all these properties
and because of these properties viscose fiber is referred as “art silk” in the textile
industry. Nonwovens industry producers have been working on developing
wipes that will flush. To create aflushable nonwoven product, the right
combination of strength, easy break up and dispersion is required. To be
considered truly flushable the wipe must also be biodegradable. Wipes made
from viscose fibers have all these properties and thus can be categorized has
flushable products.Household wipes are generally made up of polyester and
viscose blended fibers, polyester being the major component.
• Cotton:Environmental consciousness combined with price increasesand
shortages in competing materials have created a strong market opportunity for
cotton in the nonwoven industry during the past two years, particularly in the
wipes market where the addition of cotton can boost absorbency and strength.
Cotton has been enjoying a place in the private label baby wipes market, viscose
continues to be a dominant fiber in most spunlace applications, despite a global
supply shortage that has driven up prices.
Developed regions like the U.S., Western Europe and Japan will continue to lead
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the global wipes market because of the large affluent population and lifestyle
trends focused on time saving products. Developing regions like China and India
will show a rapid growth for wipes – due to the industrial expansions leading to
express economic growth.
Opportunities for growth exist however they can only be realized by
continuously introducing innovative products. Wiping fabric manufacturers are
working hard to make sure their wipes customers have lots of choices when it
comes to environmentally friendly products.Some of the categories where we
can expect to see future growth are household cleaning wipes, toddler wipes and
facial wipes.
Baby care may have marked the beginning of nonwovens market; the marketers
are now moving into even more lucrative categories in an effort to expand the
use of wipes beyond babies and are reaching to older kids and their parents.
Their portability and convenience, coupled with the hygiene aspect of their
single usage, has made them very popular with all types of consumers. Clearly
wipes are a rags-to-riches success story in the household and personal products
industry and we can bet that demand for these products will continue to grow.
In the never-ending drive to encourage consumer spending, advertisers are
targeting the hygiene habits of the young Indian male.
Analysis of Indian wipes market
In the last 3 years there has been an explosion in the number and types of wipes
available to the consumer. From baby wipes and facial wipes to disinfecting
wipes for your countertop and a slew of automotive wipes to keep your 4-wheel
“baby” shiny and supple. In a fast paced world, these wipes are designed for
convenience, whether that is for your own personal use or to deal with all those
thankless jobs around the house and garage.
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Betting that rising incomes are persuading more Indian men to take better care
of their appearance, the Aditya Birla conglomerate is offering Kara – a new
weapon in the battle against the sweat generated as boys go about their daily
business. Kara is a face wipe designed to replace the damp cotton towel many
Indian men carry on their bikes and scooters as they negotiate the hot streets of
Mumbai or Madras.Male grooming products have become one of the fastest
growing segments of India’s consumer products industry as men pay ever more
attention to how they look and move away from a traditional emphasis on
intelligence as the ultimate male quality.
Datamonitor, UK-based market research consultancy, estimates that 50 per cent
of Indian men and women believe that physically attractive people have more
opportunities in life.
“Rising affluence and greater consciousness of personal image and hygiene are
expected to drive growth in both rural and urban areas,” said Euromonitor, a
London-based market research firm, in a report.Sales of dedicated men’s
grooming products in India are estimated to be $500m a year, and rising at 15
per cent annually.
Changes in trends in the wipes market have also been driven by new product
developments and the positive reception of new product applications by the
consumer.The global market for wet wipes continues to grow, although it is
important to becognizant of the challenges that will present great difficulties to
many. Those companiesthat can combine cutting edge technology with the
development of new and innovativeideas will survive in the long run. The wipes
in India are generally made of Viscose andSpun lace. Birla Cellulose
manufactures 98% of the Viscose Staple Fiber in India, so it ispoised to do well
against other local players as they would have to purchase VSF from it.
The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holds
adominant position in market with turnover of Rs. 4.5 crores thus capturing 56%
of themarket. However the sector in India is currently fragmented and
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unorganized. Ginnifilaments (Noida) also hold a strong position in wet wipes
market, though their productcan’t be matched in terms of quality to Kara.
Wipes witnessed a surge in the number of players vying for consumer attention
towards the latter half of the review period. Grasim Industries Ltd undertook
intense brand activity in 2009 and 2010, while Johnson & Johnson (India) Ltd
launched a baby wipes product line in 2010. Others such as The Himalaya Drug
Co. and Godrej Consumer Products Ltd launched brands in 2009 and extended
their portfolios over 2010. Private label players Apollo Pharmacy and Pantaloon
Retail India Ltd heightened their brand promotions through point-of-sale
visibility in 2010.
The disposable wet wipes market, fairly niche and nascent in India, has
grown to Rs 8 crores. Birla Cellulose (Consumer Products Division of
Grasim Industries), which has launched three brands in this category
namely Kara, Puretta and Prim for various purposes over the last couple
of years, accounts for Rs 4 crores of the market.
In the US and Europe, 6 and 10 per cent of the income is spent on
disposable products. In India, it is 0.0001 per cent.
Worldwide, wet wipes are a $6-billion category, but in India, it’s a nascent
category, and a lifestyle item at that, not an essential one, so it will take a
while before there comes an inflection point.
The disposable wipes market posted double-digit growth in 2008.
Consumer awareness about hygiene products increased as a result of
increasing advertising, price reductions and the launch of cheaper
variants by manufacturers over the latter half of the year. Skin Care wipes
also benefited due to the faster pace of life in cities and the rise in the
number of nuclear families and working women, who tend to rely more
on disposable products when working in the kitchen or whilst travelling
outside of the home.
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The wipes in India are generally made of Viscose and Spun lace. Birla
Cellulose manufactures 98% of the Viscose Staple Fibre in India, so it is
poised to do well against other local players as they would have to
purchase VSF from it.
The leading market research agency KSA TECHNOPAK conducted a
market survey & discovered that there is a huge untapped potential for
wipes in India. According to the survey after Delhi NCR and Chandigarh,
Lucknow is the biggest market for cosmetics in North India.
The disposable wipes market in India faces stiff competition from cheaper
Chinese imports.
Competitive Landscape
The stronghold of Tainwala Personal Care Products Pvt Ltd on wipes gradually
waned over the latter half of the review period. The company built on its first-
mover advantage in the review period, and still commands 70% of all wipes
value sales in India. However, the swift emergence of national players such as
Grasim Industries Ltd, The Himalaya Drug Co, and private label players has
caused disruption to its lead in both general purpose wipes and baby wipes.
Prospects
Wipes constituted less than 1% of retail hygiene value sales in India in 2010.
With such products not being traditionally popular in the country, the category
still relied on niche consumer segments or season-dependent sales. Though
home care wipes and floor cleaning systems is not likely to see any major
developments over the forecast period, other product categories under personal
wipes – including intimate wipes and cosmetic wipes – are expected to
contribute more to wipes growth overall. In a similar trend to the review period,
a majority of value sales growth in all wipes categories will be due to the entry
and marketing push of national manufacturers.
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The Indian tissue and hygiene market is very small and largely untapped.
Untapped market potential
As per the leading market research firm, Euromonitor, the market size of away-
from-home tissue and hygiene segment in the year 2010 is estimated to be Rs 3,
115.5 million; Retail tissue and hygiene market size is Rs 18, 623.8 million;
Hygiene market size is Rs 12, 454.2 million; and the Tissue category has the
market size of Rs 3, 895.6 million. But what’s the reason behind the low
penetration of tissue and hygiene market in India? The reason could be lack of
awareness and sensitivity/ attention paid towards the hygiene in India.
Lack of awareness in the category
Traditionally in India, very few consumers are habituated of face wipes. The
players in tissue and hygiene category needs to pay more attention on generating
consumer awareness relating to use and benefit of hygiene related products. One
such initiative is taken by Birla Viscose brand - Kara Skincare wipes, which was
launched nearly four year ago in 2008, as a new category in the tissue and
hygiene care. At first, the challenge for the brand was to educate and create
awareness among its target audience – the young consumers, about the use of
skin wipes. The brand used BTL and ATL marketing tools which helped it to be
recognised among its target audiences.
Urban vs. rural market
About 70 percent of India’s total population resides in rural India. With growing
income of the consumers from rural India, the industry is focusing more on
producing specific products, SKUs, priced reasonably for these markets. As per
Euromonitor International Report, in categories such as beauty and personal
care; consumer appliances; homecare and retailing; India ranks close to breaking
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Project kara

  • 1. “Study of Alternate Channels to Promote Kara Wipes in Lucknow Market” Summer Training Project Report submitted in partial fulfillment of the requirements for the Diploma of Post Graduate Diploma in Management At Jaipuria Institute of Management, Lucknow By Feroz Ahmad Enroll No. : JIML-11-057 Batch: 2011-13 Project Mentor: Prof. Hyma Apparaju Abstract
  • 2. 2 The purpose of my study was to “find out different channels that can be used in promoting and maximizing the sales of Kara in major markets of Lucknow. As any study is incomplete without the interaction with its main stakeholders, I also interacted with many commuters of different cosmetics, general stores and medical stores covering various major markets of Lucknow such as Aminabad, Hazratganj, Charbagh, Patrakarpuram, Bhoothnath, Hussainganj etc. Further interaction was with the second most important stakeholder who plays a significant role in sale of a product i.e. retailer. It helped in gauging the expectations of retailers as well as the expectations of customers through retailers to reduce the gap between expectations and realistic presence of the product. I sampled Kara in major markets of Lucknow to increase the awareness of Kara because the concepts of using wet facial wipes is very new in India unlike other western countries where people spend their major portion salary in disposable products. Executive Summary
  • 3. 3 In last few years, the growth and development story of India has seen different stages. From the time of independence to 1991, the time of liberalization in India and then to the twenty first century, the markets have shown tremendous changes. Today consumers have got the power and the income to spend on products. Different firms entered in the market and lost but many succeeded and make their mark. All the markets starts with nascent stage and later grow to its maturity, same with the wipes market which is in its nascent stage in India now but the potential is high if explored. Kara is a brand name of Wet wipes from the house of Grasim Industries, Aditya BirlaGroup. Among its different variants, Refreshing facial wipes are the most selling wipes inthe consumer market. My project title was “study of alternate channels to promote Kara in Luknow market” in Grasim Industries, Aditya Birla Group. Objective of the project was to find out the ways to promote Kara and create new potential areas for the product. It also involves the work to find out the measures to keep the product ahead of its competitors such Johnson & Johnson, Bilt, Good Look, Freshia, Mistique and last but the least the Chinese wipes products. For brand promotion and widening the horizon for the new products launched by the company I sampled Kara in almost all major markets and malls of Lucknow such as Aminabad, Hazratganj, Hussainganj, Bhootnath, Patrakarpuram, Thakurganj, Saharaganj mall, Spencer, Shalimar mall etc. which also resulted into generating the awareness of the brand and it provided a chance to the people to use Kara at free of cost first time. Once they are fond of the product, they will voluntarily buy the product and will become its regular user. In my later stage of training, I was assigned to understand the operations of the company by visiting almost all markets in Lucknow. For the purpose, I visited more than 140 shops and took orders from retailersof the company and was also
  • 4. 4 responsible in placing the product onto new stores by convincing the retailers to keep the product. Without collection of statistical data and its analysis any project is incomplete, thus, I surveyed 156people by way of questionnaire and collected some secondary data from internet to understand and analyze the exact situation of the market. Analysis part has been done through interviews and surveys with the people visiting the retail stores in different major markets and malls of Lucknow. Result showed that the concept of using wet facial wipe is not as new as it was a couple of years ago in the Indian market and now people are partially aware of it. Middle class people can be targeted and educated about this new concept through extensive promotional activities. One of the finding was that people consider wet wipes as an extravagant article rather than essential product which is positioned by the company and do not want to spend a lot on such a product. Acknowledgement The training program was designed in such a way that it provided a full learning opportunity throughout the training program. I would like to express my
  • 5. 5 gratitude towards all the people who guided me throughout the program and their direct or indirect help was priceless for me, without their guidance and support this project would not have been completed successfully. I express my sincere gratitude to Mr. Divyankar Goel, Regional Sales Manager, North Division, Grasim Industries & Birla Cellulose, for his belief in me and giving a chance to do market research for the company. It has been an honor to do my summer training under Mr. Surya Prakash Singh, Area Sales Manager, North Division, Grasim Industries & Birla Cellulose, a composed and talented person who not only guided but also supported and rectified me where I was going wrong. Therefore, I would specially thank Mr. Surya Prakash Singh for his continuous guidance and assistance throughout the training. There was a great learning from my team at Grasim Industries, who not only behave in a co-operative manner but also provide constant help in the completion of the project, thus, I thank to my each team member in the training program. Last but surely not the least, I am very much thankful to my faculty guide, Prof. Hyma Apparaju, core faculty at Jaipuria Institute of Management Lucknow, for her continuous guidance and support from the proceeding of the project to its completion. I can not think of the accomplishment of the project without her assistance and guidance. TABLE OF CONTENTS Page No. CHAPTER - 1 ………………………………………………………………………………………………………1
  • 6. 6 INTRODUCTION ……………………………………………………………………………………………2 SCOPE OF THE STUDY …………………………………………………………………………………..3 OBJECTIVE OF THE STUDY ……………………………………………………………………………3 RELEVANCE OF THE STUDE………………………………………………………………………….4 TEAM CONSTITUTION …………………………………………………………………………………..4 ACHIEVEMENT AND RECOGNITION ……………………………………………………………..5 CHAPTER - 2 ……………………………………………………………………………………………………...6 SUMMER INTERNSHIP PROFILE …………………………………………...…………………….....7 STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA WIPES………………………7 USE OF SOCIAL MEDIA TO PROMOTE KARA WIPES………………......….………………….9 INDTRODUCTION ABOUT ADITYA BIRLA GROUP…………………………..……………….11 HINDALCO INDUSTRIES………………………………………………………….………………..22
  • 7. 7 IDEA CELLULAR……………………………… ………………………………………………………25 ULTRATECH ………..…………………………………………………………………………………...27 GRASIM INDUSTRIES ……………………………………………….……………………………….31 BIRLA CELLULOSE…...…………………………………………….…………………………………37 ANALYSIS OF INDIAN WIPES MARKET………….………….………………...………………….60 COMPETITION ANALYSIS OF KARA WIPES …………….…………..….……...……………….65 MICHAEL PORTER’S FIVE FORCES MODEL ………………………………………...………....67 SWOT ANALYSIS ………………………………………………………………………………………….69 CHAPTER – 3 ………………………………………………………………………………………….…………72 RESEARCH METHODOLOGY …………………………………………………………….…………..73 CHAPTER – 4 ……………………………………………………………………………………….……………79 DATA ANALYSIS ………………………………………………………………………….………………80
  • 8. 8 CHAPTER – 5 …………………………………………………………………………………….………………99 RECOMMENDATIONS AND SUGGESTIONS …………………………………….……………100 CHAPTER – 6 ……………………………………………………………………………………….………..…104 CONCLUSION …………………………………………………………………………….……………….105 CHAPTER – 7 ……………………………………………………………………………………….…………...106 ANNEXURE ………………………………………………………………………………………………...107 BIBLIOGRAPHY …………………………………………………………………………………………..109 MY LEARNING FROM SUMMER INTERNSHIP …..…………………………………………..110 LIST OF FIGURES Page No. FIG 1: USE OF WET WIPES……………………………………………………………………… …………80
  • 9. 9 FIG 2: MARKET SHARE OF WET FACIAL WIPES ……………………..…………………………...81 FIG 3: FREQUENCY OF USE OF WET WIPES ……………………….……………………………….82 FIG 4: PREFERRED PLACE TO BUY SKIN CARE PRODUCTS………………………………….83 FIG 5: RESPONSE ABOUT IDEAL PACK………. ……………………………………………………...84 FIG 6: RESPONSE ABOUT IDEAL PRICE FOR A MEDIUM SIZE PACK………………. …...85 FIG 7: PURPOSE OF USE OF WIPES………………………………………………………………... ....86 FIG 8: PERCEPTION OF CUSTOMER TOWARDS THE CONCEPT OF WIPES............….87 FIG 9: AWARENESS OF KARA WIPES ……………….……………………………………………….88 FIG 10: MEDIUM MADE AWARE ABOUT KARA WIPES……………………………………….89 FIG 11: SATISFACTION LEVEL TOWARDS KARA WIPES.…………………………………...90 FIG 12: INFLUENCIAL ATTRIBUTES OF KARA WIPES …………………………………….…91 FIG 13: ATTRIBUTES LEAD TO DISLIKE KARA WIPES …………………………….…….….92
  • 10. 10 FIG 14: ATTRIBUTES THAT DIFFERENTIATE KARA FROM OTHER BRANDS …….93 FIG 15: WOULD KARA BE RECOMMENDED BY CUSTOMERS ………………….……..….94 FIG 16: GENDER DISTRIBUTION OF CUSTOMERS…………………………………….. …….95 FIG 17: AGE DISTRIBUTION …………………………………………………………………….….….96 FIG 18: SHARE OF INCOME CLASS…………………………………………………………. .….….97 FIG 19: PROFESSION DISTRIBUTION…………………………………………………….. .….….98
  • 12. 12 Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The group has an annual turnover of US$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000 employees belonging to over 25 different nationalities on its rolls. The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial, service, telecom, BPO and IT services. Its subsidiary company Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. Grasim Industries is mainly focusing on increasing more awareness about its newly launched Kara wet wipes. Being a new concept in India, it is very difficult for the company to divert Indian customers to substitute traditional handkerchief by Kara wet wipes. They are position the same through their continuous and effective marketing communication. They have an edge over their competitors because of its backward integration and the raw material for Kara wet wipes is being provided from Birla cellulose division. I sampled in different markets of Lucknow to create awareness about the product and give the commuters opportunity to use Kara wet wipes free of cost for the first time approach. A field work has also been done to know the response of the customers towards the brand of company, brand of the competitors, their perception about using wet wipes etc. through a formal questionnaire. I was fortunate enough to get this opportunity to work with such a multinational incorporation. As the group quotes its tageline, “Taking India to the world”, it provided a lot of learning experiences those will surely help in long run in my transformation towards corporate world.
  • 13. 13 Scope of the study The data collected gives the clear picture of the product in the markets of Lucknow, the study of this research, gives the company an indication about whether it is feasible to move on with the persisting movements and marketing strategies, and if no, then how to go about it and make it worthwhile for the brand as well as the company. And conclude on what should be the most favored deal. The main purpose to conduct this marketing research is to find out the perception of the consumer towards the new concept of the skin care wet wipes whether they are not hesitant to accept this new concept of the wet wipes or they still believes in the traditional method of using the formulized based products. And even to study how much awareness of this product is there in the market and the brand image of it. Another main aim to conduct this study was to understand the retailers reactions and expectation towards the KARA and to reduce the gap between the expectations of retailers and in actual. The study of consumers’ responses helps firms and organizations improve their marketing strategies. Purpose of the study The objective of project was “To take measures for maximizing sales opportunities and promote Kara in Lucknow market. Thus, approaching to general public and introducing our products to them and reminding them until they give a formal response was our priority task. However, along with it, a primary research work was also done to supplement the field work.
  • 14. 14 Context of Study Free samples were given to people along with a small briefing about the product who showed good level of interest in Kara. The questionnaire was pre-designed and during conversation, the questions were disguisedly asked. Relevance of Study The research work gives us an idea as to what difficulties Kara is facing in spite of being a very good quality product. It gives a scope of improvement to rethink on some marketing aspects like better discount slabs, refining target customers etc. Since the TV advertisement campaign for Kara is gaining momentum, aggressive selling can be practiced to offer Kara in major market of Lucknow. Reporting: I reported to Mr. Surya Singh, Area Sales Manager who acted as the delivery head for this particular project. Team Constitution: The core team was made up of six members in trade management area covering Lucknow. The one management trainee, one Sales Officer and Area Sales Manager were involved in Trade Management. We all together sampled people covering a particular market for a particular day. I applied my learning at JIML During the project my learning in classroom (case studies, freewheeling discussions) proved to be very useful. At times I referred to my marketing book for brand promotion & distribution channel of KARA. Basically all the marketing communication tools for brand promotion and different distribution channel for placing the KARA to retailers are applied in the field came from my marketing knowledge. This comparison pushed me to revisit the plans/ strategy thought out by me. This was of immense help in improving the quality of my inputs.
  • 15. 15 Achievements/Recognition: Post the sampling activity, I was assigned to visit retailers along with one salesman to take orders from retailers keeping Kara and place the product onto new counters for the increment of sales as well as awareness. I got appreciation from Area Sales Manager for high worth of order in a day and continuous placement of the product onto new counters.
  • 17. 17 Summer Internship Profile 1) Modern Trade Management Modern trade management deals with malls and shopping complex where thousands of customers come daily to buy household items. Kara is available at almost every mall in Lucknow however internees under this profile have to check inventory levels of product, placing of the product as compared to competitor products, visibility, customers’ reaction on seeing the product etc. 2)General Trade Management In this profile, all the small retail shops are focused where I had to see if Kara is already available with them, are the retailers happy about the response of the product, sufficient inventory levels are maintained etc. Also there were many retail shops which didn’t have any wet wipes and were apprehensive about keeping the product. I had to market the product to such retailers and clarify any doubts which retailer has about the product. 3) Marketing Research This profile is a pure marketing research based where I have to ask respondents to fill up a pre-designed questionnaire thus fulfilling the given objective. I chose places like malls and major markets where I had to intercept respondents and request them to take part in the research. Sample size was 156 which includes both online and offline. “STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA WET WIPES IN LUCKNOW MARKET” Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly about the products and brands they sell. In a sense, marketing communications represent the “voice of
  • 18. 18 the company and its brands and are a means by which it can establish a dialogue and build relationships with consumers. Marketing communications also perform many functions for consumers. They can tell or show consumers how and why a product is used, by what kind of person, and where and when. Consumers can learn about who makes the product and what the company and brand stand for; and they can get an incentive or reward for trial or usage. Marketing communications allow companies to link their brands to other people, places events, brands, experiences, feelings, and things. They can contribute to brand equity by establishing the brand in memory and creating a brand image as well as drive sales and even affect shareholder value. Although marketing communications can play a number of crucial roles, they must do so in an increasingly tough communication environment. Technology and other factors have profoundly changed the way consumer process communications, and even whether they choose to process them at all. The rapid diffusion of powerful broadband internet connections, ad skipping digital video recorders, multipurpose cell phones, and portable music and video players have forced marketers to rethink a number of their traditional practices. These dramatic changes have eroded the effectiveness of the mass media. Sales promotion tools
  • 19. 19 Using Social Media Channels to Promote Kara The main challenge in this era is to stand out from the crowd, and use of any non- traditional channel of promotion can differentiate us from our competitors and we can attract the potential customers. One of every nine people on earth log on to social media channels every day and spend 700 billion minutes a day sharing content on social media. Kara needs a social media component, or may potentially lose the attention of over 750 million social media users. Here are five fun ways to promote the product on social media channels. Facebook Offers Facebook recently rolled out the new Facebook offers for fan pages, which is a free service for Facebook page administrative. The Facebook offers feature is as easy as posting a status update, and is an easy, fun way to promote the brand. We can create a catchy, strong headline – remember, the offer will be competing with lots of other status updates, photos and links in your fans’ news feeds. Next, add an image that is recognizable in thumbnail form and represents our offer at a glance. As a final step, add fine print or terms and conditions to avoid misconceptions if our customers have. Fans redeem Facebook offers via their smartphone or from an email that’s mailed to them after they get the offer.
  • 20. 20 Pin it to win it One of the hottest new social media channels over the past twelve months is pinterest, a social bookmarking site that acts as a virtual pin board, visually saving and sharing recipes, favorite products, stunning images, beauty tips and much more. The company can take full advantage of the excitement surrounding pinterst by creating “pin it to win” contests. Where it can share some beauty tips and at the same time it can educate how regular use of wet wipes can keep our skin healthy. These contests encourage users to pin products from the company website to their own personal pin boards – the more pins or “repins” the product receives, the better chance the customers have to win. This is a great way to drum up excitement for a new variant or change in existing variant of Kara. The more visually striking our product, the more successful our pinterest contest will be. Reviews on Blogs There are more than 164 million blogs on the internet and more than 133 million blog readers. If we search long enough, we will find well written, popular blogs covering almost any topic under the sun. Many bloggers are interested in reviewing products and working with brands, especially when free products are involved. Giving a blogger with a loyal following a sample or complimentary product is a great way to get exposure for Kara wet wipes. Readers trust their favorite bloggers’ opinions on products, and a great product review can go a long way in building our brand. We can consider offering a second product or exclusive discount for the blogger to give away to their readers. Blogger reviews promoting our product will give us lots of exposure.
  • 21. 21 Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The group has an annual turnover of US$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000 employees belonging to over 25 different nationalities on its rolls. The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial, service, telecom, BPO and IT services. The origins of Aditya Birla Group can be traced back to the 19th century when Seth Shiv Narayan Birla started trading in cotton in the town of Pilani, Rajasthan. In the early part of the 20th century, Group's founding father, Ghanshyamdas Birla, expanded the group and set up industries in critical sectors such as textiles and fibre, aluminium, cement and chemicals. In 1969, Aditya Birla, the then Chairman of the Group, put the group on the global map. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Under Aditya Birla's leadership, the group attained new heights and it became world's largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of carbon black. After Aditya Birla's demise his son Kumar Mangalam Birla took over the charge of the group and under his leadership the group has sustained the significant position in the sectors in which it operates. The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
  • 22. 22 Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea. A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 130,000 employees, belonging to 30 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. Globally the group has proved its mettle:  A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter  No.1 in viscose staple fibre  The fourth largest producer of insulators  The fourth largest producer of carbon black  The eleventh largest cement producer globally and the second largest in India  Among the best energy efficient fertiliser plants  Among the world's top 15 and India's top four BPO companies In India, the Group holds a frontrunner position as:  A premier branded garments player  The second largest player in viscose filament yarn  The second largest in the core alkali sector
  • 23. 23  Among the top five mobile telephony players  A leading player in life insurance and asset management  Among the top three supermarket chains in the retail business Global Presence of the group Aditya Birla Group has many subsidiary companies across the world. It has its presence not only in Asian countries but also in European and African countries. Thailand o Thai Rayon o Indo Thai Synthetics o Thai Acrylic Fibre o Thai Carbon Black o Aditya Birla Chemicals (Thailand) Ltd. o Thai Peroxide Philippines o Indo Phil Textile Mills o Indo Phil Cotton Mills o Indo Phil Acrylic Mfg. Corp. Indonesia o PT Indo Bharat Rayon o PT Elegant Textile Industry o PT Sunrise Bumi Textiles o PT Indo Liberty Textiles
  • 24. 24 o PT Indo Raya Kimia Egypt o Alexandria Carbon Black Company S.A.E o Alexandria Fiber Company China o Liaoning Birla Carbon Canada o AV Cell Inc. o AV Nackawic Inc. Australia o Aditya Birla Minerals Ltd. Laos o Birla Laos Pulp and Paper Plantation Company Ltd. Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Diversified Businesses Aditya Birla is organized into various subsidiaries that operate across different sectors. Among these are viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, Modern retail(under the 'More' brand of Supermarkets, and also under the Trinethra, and Fabmall brands until recently), fertilizers, sponge iron, insulators, financial
  • 25. 25 services, telecom, BPO and IT services. The Group consists of four main companies, which operate in various industry sectors through subsidiaries, joint ventures etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTech Cement. Non Ferrous Metals The groups non-ferrous metals are under Hindalco. It is a dominant player in aluminum and copper. Its manufacturing locations are primarily in India, and it owns mines in Australia. On February 11, 2007, the company entered into an agreement to acquire the Canadian company Novelis for U$6 billion, making the combined entity the world's largest rolled-aluminium producer. On May 15, 2007, the acquisition was completed with Novelis shareholders receiving $44.93 per outstanding share of common stock. Hindalco has also recently acquired Alcan's stake in the Utkal Alumina Project Joint venture in Orissa,India. Hindalco is a Fortune500 company, it makes alumina chemicals, primary aluminum, rolled products, alloy wheels, roofing sheets, wire rods, Cast copper rods, copper cathodes and several other products. But the project has faced massive protests from locals. On 16 Dec 2001 three tribal people were shot dead because they were opposed to the project. Cement The Group has two subsidiary companies in cement sector named as Grasim and UltraTech cement. Together the two companies under the group account for a substantial share of the cement market in India. UltraTech cement comprises the erstwhile cement business of L&T which was acquired by the group. UltraTech announced an increase in sales by 18% and Profit after Tax by 42% for the quarter ending March 31, 2012.
  • 26. 26 Carbon Black The Group is the fourth largest manufacturer of Carbon Black worldwide. It operates out of facilities in Egypt, Thailand, India and China.It is a major supplier to several major automobile tyre manufacturers worldwide. Textile Business The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber industry. It operates out of India also such as in Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament yarn businesses and spinning mills at several locations all over India and South East Asia. The group has pulp and plantation interests in Canada and has recently invested in plantations in Laos the Aditya Birla group is also a major player in the branded garments market in India. Its subsidiary, Madura Garments, is a major producer of textile fabric as well as the brand licensee of Louis Phillip, Van Heusen and Allen Solly in India. It operates company owned retail outlets in several cities in India and now planning to go to Pakistan as well. Telecom Services Aditya Birla Group holds a 98.3% stake in Idea Cellular, a leading telecom operator in India. Idea Cellular started off as a joint venture with the group, AT&T and the Tata Group. However the stakes of the remaining partners was eventually acquired by the group. After an Initial Public Offering on the Indian Stock Markets, Idea Cellular now accounts for a third of the group's market capitalization.
  • 27. 27 Other Business Apart from the above businesses, the group is a major player in sectors like Insulators, Fertilizers, IT (It owns PSI Data Systems Limited - http://www.psidata.com), ITeS (It owns Trans-works and recently acquired the Canadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services (A joint venture with Sunlife) and more recently, Retail. Beyond Business Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt. In India, the Group's social projects span 3,000 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than a million patients are given extremely subsidised medical care. To embed corporate social responsibility as a way of life in organisations, the Group has set up the FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.
  • 28. 28 The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society and send out a message that "We care”. MAJOR COMPANIES The major companies of the Groupare among India's leading corporate. These include: Grasim:Viscose staple fibre, rayon grade pulp, cement, chemicals, textiles UltraTech Cement Ltd:Ordinary Portland cement, Portland blast furnace slag cement, Portland pozzolana cement and grey Portland cement Samruddhi Cement: Cement Hindalco: Aluminum, copper Aditya Birla Nuvo: Garments, viscose filament yarn, carbon black, textiles, insulators Idea Cellular Ltd.: Telecom Birla Sun Life Insurance Co.Ltd.: Life insurance Birla Sun Life Asset Management Company Ltd.:Mutual fund Aditya Birla Money Mart Limited: Mutual fund distribution Aditya Birla Capital Advisors Private Limited (ABCAP):Private equity advisory and investment management, for Indian and offshore investors Aditya Birla Money Limited:Leading player in broking space Aditya Birla Minacs IT Services Ltd.:Application development, maintenance and enhancement solutions Aditya Birla Minacs Worldwide Limited: Customer relations management (CRM), integrated marketing services, knowledge process outsourcing Aditya Birla Finance Limited: Asset-based finance, corporate finance and investment banking, capital market and treasury
  • 29. 29 Birla Insurance Advisory & Broking Services Ltd:Non-life insurance advisory and broking services Non-life insurance advisory and broking services: Apparel retail Peter England Fashions and Retail Ltd:Apparel retail Madura Garments Exports Limited:Apparel export Aditya Birla Retail Limited:Multi-format stores Tanfac Industries Ltd.:Fluorine chemicals Essel Mining & Industries Ltd.:Iron and manganese ore mining, noble ferro alloys REWARDS & RECOGNITION 2002 KHARACH unit won Chairman's Gold Award for manufacturing excellence. 2003 Birla Cellulose's HARIHAR (India) unit bagged "TERI Corporate Environmental Award" for cleaner production, while keeping waste generation at its lowest. Birla Cellulose's KHARACH (India) unit was awarded "Green-tech Gold Award" for environmental excellence, in recognition for its continuous efforts in the field of sustainable development and environmental preservation. 2004 Birla Cellulose's NAGADA (India) unit was awarded the coveted "Stockholm Industry Water Award", a first time achievement in Asia.
  • 30. 30 Grasilene division – HARIHAR won “Green-tech Environment Excellence Gold” Award. HARIHAR unit won “Golden Peacock Environment Management” Award. 2005 KHARACH unit won PSU- Quality Circle competition for South Gujarat Industries 2007 HARIHAR Poly fibers wins 2007 “IMC Ramakrishna Bajaj award 2008 The President of India, Mrs. Pratibha Patil confers the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla 2009 Grasim's pulp and fibre division wins the highly prestigious Asian CSR Award. Idea Cellular wins the Economic Times' "Emerging Company of the Year Award for 2009". 2010 Hindalco ranked ninth across industries on Forbes Asia's Fab 50 companies list of Asia's 50 most valued companies. Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate Social Responsibility The Rajiv Gandhi Environment Award for Clean Technology for the year 2009-2010 is awarded to Vikram Cement Works.
  • 31. 31 2011 Business Today’s Best Companies to work for in India’s survey, the Aditya Birla Group was on the top of the league in their “rankings of most loved companies”. The Aditya Birla Group is ranked No. 4 in the list of global top companies for leaders and No.1 in Asia Pacific for 2011, in a study conducted by Aon Hewitt, Fortune Magazine.
  • 32. 32 An industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location. Established in 1958, we commissioned our aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products.The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries. Our consolidated turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league. Hindalco's businesses — creating superior value Hindalco is one of the leading producers of aluminium and copper. Our aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.Our copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers.
  • 33. 33 Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. We have been accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Our copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation. Aluminium Hindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have launched various brands in recent years — Everlast roofing sheets, Freshwrapp kitchen foil and Freshpakk semi-rigid containers.
  • 34. 34 Copper Birla Copper, Hindalco’s copper unit, is located in Gujarat. The unit has the unique distinction of being the largest single-location copper smelter in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa. Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation. Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems). Mines Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an underground mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode. The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej.
  • 35. 35 Idea Cellular Limited was incorporated in 1995, and now ranks third in terms of all-India wireless revenue market share at 13.6 per cent.Idea ranks second with 23.6 per cent revenue market share in nine service areas where it holds 900 MHz spectrum and which derive about 41 per cent of the industry’s all-India revenues. The market positioning of Idea reflects the strength of its brand considering the fact that Idea added 11 out of its total 22 service areas in the past four years. Today, it is a pan-India player with commercial 2G operations in 22 service areas, and 3G in nine of these circles. Its subscriber base has grown multifold, from 7.37 million in March 2006 to 89.5 million in March 2011. Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom majors Bharti Airtel and Vodafone. Indus Towers is the world's largest tower company with over one lakh towers. Idea enjoys a market leadership position in many of its operational areas. It offers GPRS on all its operating networks for all categories of subscribers, and was the first company in India to commercially launch the next generation EDGE technology in Delhi in 2003. As a pioneer in technology deployment, it has been at the forefront through the adoption of bio fuels to power its base stations, and by employing satellite connectivity to reach inaccessible rural areas in Madhya Pradesh. Idea has been a leader in the introduction of value-added services, and there are many firsts to its credit, including a voice portal 'Say Idea', Idea TV, voice chat and instant messenger. Tariff plans have been customer-friendly, catering to the unique needs of different customer segments, for instance the 'Women's Card'
  • 36. 36 caters to the special needs of women on the move, and 'Youth Card' covers the emerging youth segment.Idea has a network of over 70,000 cell sites covering the entire length and breadth of the country.The company has over 3,000 service centres servicing Idea subscribers across the country. Idea’s service delivery platform is ISO 9001:2008 certified, making it the only operator in the country to have this standard certification for all 22 service areas and the corporate office. Achievements Idea has won numerous awards and is the only Indian GSM operator to win the prestigious GSM Association Award consecutively in the best mobile technology category for the Best Billing and Customer Care Solution both in 2006 and in 2007, even in the face of international competition. Idea was adjudged the ‘Emerging Company of the Year’ by The Economic Times. Brand Idea has won many accolades for its innovative communication. The ‘What an Idea, Sirji’ ads have won four Effies from 2008-2010, making it one of the ‘Buzziest’ brands in the country. In 2011 Brand Idea moved to the No. 4 position amongst all service brands in the 'Most Trusted Brands Survey' conducted by Economic Timespublication.Idea's biggest campaigns – "Break the Language Barrier" and "No idea – Get Idea" were ranked globally as the best brand campaigns 2011 at MMA Global Awards and World Communication Awards, London. In radio, Idea won six awards at the Golden Mikes Awards 2011 and was adjudged the Advertiser of the Year. Besides, Idea has also won a series of Digital Awards, the biggest being the Yahoo Big Chair where it won Gold. IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom sector, at the prestigious Avaya GlobalConnect Customer Responsiveness Awards 2010. Idea's subscriber base as at the end of August 2011 according to the statistics,is totalling to 98,441,714.
  • 37. 37 UltraTech Cement Limited is India's biggest cement companyand India’s largest exporter of cement clinker based in Mumbai,India.The company is division of Grasim Industries. It has an annual capacity of 52 million tonnes. UltraTech is India's largest exporter of cement clinker. The company's production facilities are spread across eleven integrated plants, one white cement plant, and one clinkerisation plant in UAE, fifteen grinding units, and five terminals. UltraTech's success is attributed to its diverse product offerings. Different products are handled by different product groups, which are also known as profiles. Product groups decentralise control and encourage innovation. They also ensure better customer segmentation, which in turn leads to better customization of product offerings and guarantees cent percent customer satisfaction. UltraTech Cement, Birla White, UltraTech Concrete, UltraTech Building Products and UltraTech Solutions are the different profiles of UltraTech, each catering to varied needs. This versatility has been a key competitive advantage for UltraTech over the years. UltraTech is the 10th largest cement manufacturer in the world making it a significant global player. It has grinding units, jetties, bulk terminals and integrated plants all across the world. UltraTech Cement is the country's largest cement clinker exporter, catering to export markets in countries across the Indian Ocean, Africa, Europe and the Middle East. Such diverse presence across countries has helped UltraTech leverage economies of scale and enabled it to become a name to reckon with in the international market.
  • 38. 38 UltraTech’s journey began almost three decades ago and throughout this journey, the focus has always been on providing customers with the best products and services. The resulting success has only reaffirmed UltraTech’s desire to be a complete end-to-end building solutions provider. Each milestone in this journey is a cherished memory: becoming the largest cement manufacturer in India, winning the ‘SUPERBRAND’ and 'POWERBRAND' accolades and being recognised as a truly global organization, are a few that stand out. UltraTech’s inception can be traced back to the mid-1980s with the establishment of Grasim’s first cement plant at Jawad in Madhya Pradesh. In 2001, with the objective of increasing its reach, Grasim acquired a stake in L&T Cement Ltd. The stake was further increased to a majority stake in 2003 thereby giving Grasim a pan-India presence and an increased market share. In 2004, the demerger of L&T’s cement business was completed and Grasim acquired a controlling stake in L&T Cement Ltd and the name was subsequently changed to UltraTech cement. The cement business of Grasim was demerged and vested in Samruddhi Cement Limited in May 2010, with Samruddhi Cement Limited consequently being amalgamated with UltraTech Cement Limited in July 2010. In September 2010, UltraTech Cement Middle East Investments Limited, a wholly owned subsidiary of UltraTech Cement acquired management control of ETA Star Cement Company, along with its operations in the UAE, Bahrain and Bangladesh, thereby putting UltraTech on the global map. Today, UltraTech Cement is the tenth largest producer of cement globally. It has a diverse presence across the globe. The company has eleven integrated plants, one white cement plant and one clinkerisation plant, which is based in the UAE. Furthermore, UltraTech has 15 grinding units across the world: 11 in India, 2 in UAE and 1 each in Bahrain and Bangladesh. It also has 2 rail bulk terminals in India, 3 coastal terminals, out of which 2 are located in India and one in Sri Lanka.
  • 39. 39 UltraTech Cement is the largest selling single brand cement in India and the largest cement clinker exporter. UltraTech's products include Ordinary Portland Cement, Portland Pozzolana Cement and Portland Blast Furnace Slag cement. UltraTech is the most trusted and preferred brand of Engineers, builders, contractors and individual house builders. Today, UltraTech is used in vital structures like dams, bridges, flyovers, airports, metro railways apart from residential and commercial structures. Ready mix concretes of UltraTech operate under the mother brand of UltraTech Concrete. UltraTech Concrete sub-brands are christened 'Fibrecon', 'Free Flow', 'Colourcon', 'Stainless', 'Thermocon', 'Hypercon', 'Pervious' and 'Décor', each of which offer a unique value proposition and cater mainly to specific requirements of large infrastructural projects. UltraTech Building Products manufactures and markets technologically reengineered products including dry mix mortars and blocks for the construction and infrastructure industry. The sub brands of UltraTech Building Products are 'Seal & Dry', 'Super Stucco', 'Readiplast', 'Fixoblock', 'Xtralite' and 'Powergrout'.
  • 40. 40 UltraTech Building Solutions (UBS) is a novel concept in the Indian Construction Industry. It is a one stop shop designed on the "plan, build and support" philosophy, which offers home building solutions right from planning to completion. UBS is based on a franchise model that caters to the building and construction needs of individual home builders as well as the entire building and construction fraternity. Collaboration is the key to UBS which houses renowned brands of building materials apart from its own cement, namely paint, construction chemicals, steel, pipes and fittings. A basket of services like technical advisory, vaastu services, House Layouts and Construction Cost Calculator, also form a significant part of the offerings at UBS. The UltraTech brand houses its white cement products under the umbrella of 'Birla White'. Birla White's range comprises of Birla White Cement and other finishing products, widely used for interiors and exteriors including flooring, walls and ceilings. The sub brands of Birla White are 'Wallcare', 'Textura', 'Levelplast' and 'GRC'. Star Cement is a leading manufacturer of cement in the Middle East. Its operations are spread across UAE, Bahrain and Bangladesh with an installed capacity of 3 million metric tons per annum.
  • 41. 41 Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net revenue of Rs.202 billion and a consolidated net profit (before extraordinary items) of Rs.27.6 billion (FY2010). Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits.The Aditya Birla Group is the world’s largest producer of VSF, commanding a 21 per cent global market share. Grasim, with an aggregate capacity of 333,975 tpa has a global market share of 10 per cent. It is also the second largest producer of caustic soda (which is used in the production of VSF) in India.Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group. Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. As an extremely versatile and easily blendable fibre, VSF is widely used in apparels, home textiles, dress material, knitted wear and non-woven applications. Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with an aggregate capacity of 333,975 tpa. Nagda Nagda is its largest unit producing a wide range of VSF to suit customer
  • 42. 42 requirements in terms of length, denier and colour and also second and third generation fibres like Modal, Excel and Solvent Spun fibres, respectively. Nagda is also the largest producer of spun-dyed specialty fibre in the world. Harihar The Harihar unit houses facility for manufacture of both VSF and rayon grade pulp, the basic raw material for VSF. The company's Rayon Grade plant was the first in India to use totally indigenous wood resources with in-house technology for producing rayon pulp with an innovative oxygen bleaching process to reduce the use of chlorine. Kharach The VSF plant at Kharach, set up in 1996, employs the most modern technology giving it a competitive edge in the export market. Joint Ventures (JV) Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per cent of Thai Rayon's VSF throughput is directly exported to more than 20 countries worldwide. The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka. PT Indo Bharat Rayon Marketed under the brand name of 'Birla Cellulose', the company produces a wide range of VSF in engineered specifications for textiles and non-woven applications. The company's strong focus on environmental protection is reflected through its investments in a sophisticated state-of-the-art waste-water treatment plant and scientific waste disposal systems.
  • 43. 43 Grasim has joint venture with the following overseas companies:  AV Cell and AV Nackawic in Canada AV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSF units in India, Thailand and Indonesia.  Birla Lao Pulp & Plantation Limited in Laos To further strengthen the backward integration in pulp, Birla Lao has been formed as a JV with other associate companies for raising captive plantations at Laos. This will provide a low cost source for wood to meet future requirements of a green field pulp plant in due course of time.  Birla Jingwei Fibres Company Limited in China The JV with Hubei Jingwei Chemical Fibre Company Ltd. was formed in 2006 for manufacturing VSF. Currently, this plant has a capacity to produce VSF of 35,000 tpa. This spread and scale of operations make the Group's VSF operations very cost competitive. Moreover, vertical integration into plantation, manufacturing of rayon grade pulp and horizontal integration into production of principal raw material required for VSF production, namely, caustic soda, intermediate inputs namely CS2, sulphuric acid along with captive power and steam generation facilities, further enhance its competitive edge. Research& Development Grasim has established a very strong R&D base covering different stages of the value chain such as: Grasim Forest Research Institute, Harihar is involved in R&D of forestry. Birla Research Institute for Applied Sciences (BRI), Nagda is involved in the development of different generations of cellulosic fibres. Textile Research Application Development Centre (TRADC) at Kharach, a NABL accredited Lab, is
  • 44. 44 involved in addressing research and development related to downstream textile value chain comprising various fibres, yarns, processing, garments, etc. With the capability to offer the entire range of cellulosic fibre under the umbrella brand of “Birla Cellulose”, Grasim has positioned itself as a dependable supplier of cellulosic fibres for “Feel, Comfort & Fashion” across global markets. To penetrate into niche market segments and to grow further, the division has ventured into the production of high performance viscose fibres aptly named Viscose Plus, High Wet Modulus Fibres (Modal) and new generation Solvent Spun Fibres and Birla Excel.Grasim is also the largest producer of Sodium Sulphate, a byproduct of VSF manufacture. This chemical is widely used in the paper and pulp, detergent, glass and textile industries. Cement Grasim has grown to become a leading cement player in India. Grasim ventured into cement production in the mid 1980s, setting up its first cement plant at Jawad in Madhya Pradesh and since then it has grown to become a leading cement player in India. Grasim’s cement operations today span the length and breadth of India, with 11 composite plants, 11 split grinding units, four bulk terminals and 64 ready-mix concrete plants as on 30 June 2009. All the plants are located close to sizeable limestone mines and are fully automated to ensure consistent quality. All units use state-of-the-art equipment and technology and are certified with ISO 9001 for quality systems and ISO 14001 for environment management systems.
  • 45. 45 Chemicals Grasim has India's second largest caustic soda unit. Rayon grade caustic soda is an important raw material in VSF production. To achieve a reliable and economical supply of this chemical, Grasim set up a rayon grade caustic soda unit at Nagda in 1972, with an initial capacity of 33,000 tpa. This has since grown to 258,000 tpa, making it the country's second largest caustic soda unit. Textiles Grasim has strong nation-wide retail network and also caters to international fashion houses in USA and UK. Grasim has a strong presence in fabrics and synthetic yarns through its subsidiary, Grasim Bhiwani Textiles Limited, and is well known for its branded suitings, Grasim and Graviera, mainly in the polyester - cellulosic branded menswear. Grasim's strong nationwide retail network includes 50 exclusive showrooms as well as 200 wholesalers and 25,000 multi-brand outlets through which it reaches its customers. Grasim caters to international fashion houses in the USA and UK supplying fabric to them for manufacturing of garments, which are available in some of the largest retail chain stores. Sources of competitive advantage Cost: Grasim is the lowest cost producer of VSF in the world. It is the most integrated fibre producer with the chain stretching right from Forest to Pulp to Fibre to Yarn. All most all the intermediate inputs are captive. Besides, their in- house engineering division enables us to grow in a most cost effective way. Technology: On technology front, they produce all the three generations of man- made cellulosic fibres from an in-house developed capability through research and development. Their research and development efforts are not limited to
  • 46. 46 fibre stage alone but extend to entire textile value chain. While the plantation and related activity is carried out at Grasim Research Institute (GFRI, Harihar, India), the Product innovations are carried out at Birla Research Institute (BRI, Nagda, India). For value chain related activities, a state of art “Textiles Research & Application Development Centre” has been established at Kharach, Gujarat- India to entire textile value chain from yarn to fabric to garments. Markets: On marketing front, their reach extends to the entire globe, through marketing offices. On a global level, their major strength is in spun-dyed fibres and now other specialties such as Non-woven, Modal and Excel have started penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched in the market. Their value added marketing services comprising of technical, logistical, financial, marketing and informational support have enabled us to emerge as the most preferred supplier of VSF in world.Our offerings whether from India, Thailand, Indonesia or China are all marketed under the mother brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel. An umbrella brand has enabled us to create a common identity for our product across the globe irrespective of its production origin and creating of awareness of the brand. Consumer Products Division of Grasim Industries Grasim Industries, an Aditya Birla Group Enterprise has started its Consumer Product Division with various personal care & home care dry & wet wipes products. This marks the company’s foray into the Indian FMCG market.The Indian FMCG market is of US$13.1 billion and is the fourth largest sector in the economy. FMCG Sector is expected to grow by over 60% by 2015. That will translate into an annual growth of 10% over a 5-year period.
  • 47. 47 In 2008 the company launched Kara skin care wipes and Prim Home Care wipes. Kara Skincare wipes is positioned as an essential skincare accessory. In 2009, Grasim entered the baby care segment with the launch of Puretta. Puretta is targeted at today's mother, who opts for a contemporary and convenient lifestyle. Introduced for the first time in India, the Puretta product portfolio includes Complete Cleaning Wipes, Germ Shield Wipes and Skin Nourishing Wipes. Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of cellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal, and Birla Excel. These brands offer a wide range of functional benefits such as soft feel, high moisture absorbency, bio degradability and comfort to the wearer. These fibres have multiple applications including apparel, home textiles, dress material, knitwear, non-woven etc. Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in 1954. Birla Cellulose is a world leader in viscose staple fibre (VSF). Its production is spread across six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The Group independently fulfils India's entire VSF requirements. With a strong focus on Research and Development (R&D), the Group's R&D initiatives span the entire value chain.  Grasim Forest Research Institute — pulp to plantation research  Birla Research Institute for Applied Sciences — pulp to fibre research
  • 48. 48  Textile Research & Application Development Centre (TRADC) — value chain from fibre to garments / made ups "Nature is the genesis of all that surrounds us; therefore, what other than nature could be the origin of Birla Cellulose.”. Nature is the source of Birla Cellulose and herein the inspiration of our logo lies. 'Fibers from Nature' is our theme and our message: Leaves fall and grow all over again; they are a renewable resource of nature. Birla Cellulose is much like these leaves and is made from the same trees. The floating leaves symbolise the key characteristics of Birla Cellulose which are "comfort and lightness". The vibrant green indicates that Birla Cellulose can take on vibrant colours. The circle signifies the cycle of nature and sustainability. Nature remains the underlying theme for all our brands:  Viscose is symbolised by the fresh green of summer  Modal is symbolised by the burnt orange of autumn  Excel is symbolised by the deep pink of spring. An integrated outlook Birla Cellulose is growing by leaps and bounds through both organic and inorganic route. The efforts towards integration and self-sufficiency are as follows:  Backward integration into pulp and plantation.  Captive power plant at all locations.  In house manufacturing of all major chemicals and auxiliaries used in VSF manufacturing.
  • 49. 49 Attributes of Birla Cellulose Natural: Soothing, comforting and elevating, Birla cellulose exhibits all qualities of its source nature. Stylish:The drape and fall of Birla Cellulose with its natural inheritance is a fashion statement. Timeless: Just like nature, Birla Cellulose, is timeless and shall always remain in vogue. A fashion catalyst: A hint of Birla Cellulose in your wardrobe brings in the glamour that differentiates between mundane and fashionable. Versatile: Birla Cellulose combines the best properties of all fibres. It is extremely bendable hence enhancing the realms of possibilities in clothing. Birla Cellulose - Fibres from nature contributing to a green world Preserving our environment has always been the inspiration behind Birla Cellulose. It has successfully achieved this goal through the following initiatives:  Nurturing and building the green cover Over a million plantlets are being produced from identified superior clones for development of clonal orchards and plantations.  Land conservation Efforts are on to encourage tree-farming practice on marginal, sub- marginal and fallow lands to the best advantage of the country. The yield of Viscose is seven times that of cotton for the same land area. Thus significantly contributing to conservation of land, and reaping maximum results from this limited resource.
  • 50. 50  Water conservation Birla Cellulose Viscose is highly environment friendly. Every kilogram of viscose produced saves 200 buckets of water when compared to cotton. Thus it preserves one of the most valuable natural resources.  Process friendliness The process being followed for production is environment friendly and green due to the following advantages: Non toxic effluent as a result of replacement of zinc by alum Less solid waste generation due to reduced lime consumption Reduced risk of fouling biological microorganism in reactor  Spun Shades This variant is environment friendly and results in conservation of water throughout the value chain. It is Okeo Tex certified, i.e. it meets the ecological requirements set for baby articles. Birla Cellulose: The perfect blend Birla Cellulose fibres are the perfect blend with all types of fibres. The benefits of using Birla Cellulose as a blend are as below: Birla Cellulose blends Benefits of blending with Birla Cellulose Birla Cellulose-cotton Makes cotton soft and supple Improves fabric uniformity Imparts sheen and colour brilliance Birla Cellulose-wool Improves wear properties
  • 51. 51 Imparts softness Enhances skin friendliness Adds shine and luster Birla Cellulose-silk Maintains sheen of silk Improves comfort Economical and fashionable Birla Cellulose- synthetics Improves comfort, breathability, lustre and skin friendliness Birla Cellulose-elastane Offers excellent sheen, comfort and stretch Birla Cellulose-elastane Offers excellent sheen, comfort and stretch PRODUCTS OF BIRLA CELLULOSE Aditya Birla group announced its foray into the baby care segment in India by launching ‘PURETTA’ 100 per cent natural and biodegradable baby care wipes in 2009. Product portfolio includes Complete Cleansing Wipes, Germ Shield Wipes and Skin Nourishing Wipes. These wipes are safe for the baby’s delicate skin as they are alcohol free, hygienic, hypoallergenic and dermatologically tested. Since Puretta (meaning pure and diminutive) is made from Birla Cellulose, soothes the baby’s tender skin with its soft and nature-friendly properties. While the usage of baby wipes is growing in India, there is limited access to quality products at the right price points. Most of the products available today
  • 52. 52 are imported, and are primarily regular wet wipes that do not serve the specific needs of baby care. Puretta fills this gap with its three distinct variants, aiming to satisfy the need of Smart Moms. Most of the other wet wipes in the market today are made from Polyester- Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its repeated use on the skin is not advisable. Paper tissues tear off when rubbed over skin and leave lint on face in a way that can often embarrass the user. While Puretta is made up of non-woven fabric which absorbs sweat, extra oils from the skin without scrubbing it. It doesn’t wither when rubbed hard and doesn’t leave lint on facial skin or stubble. Characteristics of Puretta Baby Wipes  Safe for baby’s skin.  Hygienic.  Hypoallergenic  Dermatologically tested.  Alcohol free.  With mild fragrance.  Convenient- hassle free cleaning and application of lotions without using towel or cotton balls.  Portable.  With optimized efficacy.  For complete baby care.
  • 53. 53 Variants of Puretta  Complete Cleansing Wipes Complete cleansing baby wipes are enriched with chamomile extracts these wipes are gentle and soothing to the baby’s skin ensuring complete cleansing while retaining the pH balance of the skin. It is a smart way to clean the baby completely anytime & anywhere. It is basically used on baby’s nappy area and can be used on complete body of a 0-3 years of babies. It is used for following: Every nappy or diaper change. For cleansing in the absence of regular bath while travelling or in winters. Wipe entire body to keep baby clean and fresh at all times, day or night. Provide soothing relief. Most of the other wet wipes in the market today are made from Polyester- Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its repeated use on the skin is not advisable. Paper tissues tear off when rubbed over skin and leave lint on face in a way that can often embarrass the user. While Puretta is made up of non-woven fabric which absorbs sweat, extra oils from the skin without scrubbing it. It doesn‟ t wither when rubbed hard and doesn‟ t leave lint on facial skin or stubble.
  • 54. 54  Skin Nourishing Wipes Skin Nourishing Baby Wipes keeps the baby’s skin soft and nourished always, after a bath or even during the dry season. Enhanced with Mineral oil and Pear extracts, it leaves a protective layer of moisture on the baby’s delicate skin. A smarter way to keep the baby’s skin nourished anytime, anywhere. It is used on baby’s complete body especially hands, feet, face, neck and back area. It is a good add-on or occasional substitute for baby oil massage. It is basically for babies of age 0-3 years but can also be used for older children with sensitive skin. And it is used for following: Essential to keep baby’s skin soft and nourished always. After bath and during dry season. While travelling or exposure to air-conditioning at home  Germ Shield Wipes Germ Shield Baby Wipes contains antiseptic properties to protect the babies from germs always. Enriched with Lavender extracts, it leaves the baby’s skin refreshed. A smart multipurpose option for not only sanitizing baby’s hands and mouth but also utensils, tethers and toys, anytime and anywhere.
  • 55. 55 It is basically for 0-5 year old babies but can also be used by older children while travelling and also advisable for adults handling the babies. And it is used for protecting the babies from germs throughout the day with natural antiseptic properties. Essential to clean baby as he/she gains mobility and crawls on surface that may be contaminated. After play time, before food and especially while travelling. To sanitize baby’s utensils, tethers and toys. PRIM Home & Kitchen Care Wipes PRIM is basically dry wipes used in Kitchen and various multipurpose household works. It can be used to wipe the utensils and cutleries. One wipe can be used for at least a month in the kitchen. There is no product in the market in this category but Scrotch brite is there which is seen as the substitute of the product. Usually cloth is used as the substitute in most of the families but if the promotion is done properly to make the consumers aware of this product it will do very good in the market because of very less competition in this category. There are two packs available in the market one is three wipes pack and the other one in five wipes pack.
  • 56. 56 HANDYS - Hand sanitizing wipes Handys hand sanitizing wipes have been shown to clean and sanitize hands more effectively than rub-in gels. These sanitizing wipes are extra tough on germs, killing 99.9% of germs. Though there are few companies who manufacture sanitizing wipes, but all of them are alcohol based. Handys is the only sanitizing wipe which is Triclosan based and as sufficient as alcohol in killing germs. Triclosan is one of the antibacterial and antifungal and even toothpaste. Grasim Industries outsource Triclosan from vivimed Labs based in Hyderabad. The wipes contain 0.1% Triclosan which is sufficient to give required anti bacterial properties. Rub-in gel sanitizers can not remove stain marks or dirt but sanitizing wipes are very efficient in cleaning hands. It is gentle on hands, containing moisturizers, aloe vera and silicones. Clinically tested, our hand sanitizing wipes provide convenient protection anywhere, anytime when soap and water are not available. It is an excellent product for anybody seeking hygiene and prevention from infections. KARA Skin Care Wipes Grasim Industries has started its Consumer Product Division with various FMCG products which includes personal care & home care dry & wet wipes products. The main product of our concern for the research is Kara Skincare wipes.
  • 57. 57 It is not easy to look beautiful all the time and it gets even harder when you are out of home with pollution, dust and heat. Introducing for the first time in India, Kara a complete range of skincare wipes. In India, the market for wet wipes was gradually picking up with changing lifestyles and the fast pace of life among the young and upwardly mobile population with higher disposable income. ''Kara skincare wipes fill up the lacuna in this segment as there is lack of availability of quality products at appropriate price in the Indian market.'' Kara Skincare wipes is a new product to hit the Indian market. The brand is now running heavy print campaign announcing the launch. Kara Skincare wipes can be called as India's first branded skincare wipe product. Skincare wipes are popular in the west but in India the category is a new one. Although Indian consumers are familiar with the products which are imported, it’s the first time that an Indian company enters this segment Kara means care. The brand also marks Aditya Birla Group's foray into the Indian FMCG market. The brand aims to create a new category of wipes in India. Hence the challenge is to educate the target audience about the usefulness of this product. This task is cut out for Kara since the customer is already exposed to such products. The only task is to inculcate the habit of buying and using the wipes. The product is relevant in the Indian market for two reasons.  One is the climate which necessitates such a product and  Second is the growing number of lady professionals. The brand has the tagline “At your best always” this clearly communicates the core brand positioning. The brand is being promoted as the anytime solution to look good.
  • 58. 58 Also Kara is loaded with lotions for different application like deep pore cleansing, moisturizing, toning, sunscreen and make up remover. Rejuvenating the skin is a natural property of mint oil and cucumber coupled with aloe Vera for skin nourishing – in refreshing wipes. Jojoba and Avocado unclogs pres, detoxes and exfoliates dead skin in Deep Pore Cleansing wipes. Rose and Thyme are well known to have toning properties – used in Toning Wipes. Honey and Almond are age – old products for removing dryness of skin and moisturizing present in – moisturizing wipes Aloe Vera and plum have natural sunscreen properties – Kara Sunscreen wipes. Lavender cleaning and relaxing properties while Seaweed has nourishing effect on skin – both used for makeup removal wipes. Kara has a good potential to create and own a new category. The brand already has the first mover advantage. But the category does not have much entry barriers. It can face stiff competition from cheap imports. But Kara has the financial backing of Birla group and the investment in building this brand will pave the way for another successful marketing story.
  • 59. 59 Kara is readily available pan India at superstores, cosmetic and chemist outlets and modern retail. The ease of usability of a convenient and high value product at an affordable cost in India for a young and mobile population is a huge opportunity that Kara wishes to address. Kara wipes were highly effective with unique formulations having natural ingredients that nourish the skin. They are alcohol free and dermatologically safe. Kara is made from 'Birla Cellulose', a fibre that is 100 % natural and biodegradable Compactly packaged and pre-moistened Kara skincare wipes give a hygienic, convenient and effective skincare solution to the consumers on the go. These wipes are easy to carry and use. Raw Material Used for KARA Kara is made of 100% Viscose. Viscose is Purer & Softer and more absorptive than Cotton. VSF is 100% Natural and 100% Biodegradable. The material is non- woven fabric which absorbs sweat, extra oils from the skin without scrubbing it. It doesn’t wither when rubbed hard and doesn’t leave lint on facial skin or stubble. Most other wet wipes in the market today are made from Polyester- Viscose blended non-woven fabric or paper. Polyester is not skin-friendly and its repeated use on the skin is not advisable. Paper tissues tear off when rubbed over skin and leave lint on face in a way that can often embarrass the user. How it works The science behind this dullness is the formation of unstable molecules called free radicals when your skin is exposed to elements like pollution, sun, wind, temperature, and stress during the day. These react with the skin to deplete skin proteins (collagen) and thus weaken the skin substrate to cause a slow continuous ageing, which one does not realise till the effects start showing in the
  • 60. 60 form of wrinkles and sagginess. How do we prevent this? The answer lies in a regular dose of nourishment for your skin that is rich in antioxidants. With a new innovative product range of Kara ™ Skincare Wipes rich in natural extracts, this once incurable problem has found an extremely simple answer. What you could not do so far through the day is now possible as many times as you want. A critical three step action which cleans your skin, gives it essential hydration and replenishes the vital nutrition of the skin can be done in one easy swipe, thanks to the advanced skin wipe technology from Kara. Its unique innovative three step action that is set to change your skincare routine, and ensure that the skin stays young and vibrant all though the day. 1. Skin cleaning: Skin experts recommend thorough cleaning of the face before applying anything in order to avoid blocking of pores with lotions which can result in boils, acne and pimples. To take care of this, every skincare wipe has fibrils on its surface which ensure thorough cleaning of the skin pores when they come in contact with the skin. 2. Hydration: The benefits of water in preventing skin ageing and dullness are well established. Each skincare wipe has 80% aqua loading which is transferred to the skin, ensuring a rich, ageless and healthy skin. 3. Nourishment: Antioxidants are substances that combat free radicals, and thus help reverse the process of ageing. A steady dose of antioxidants through the day helps in preventing skin ageing. Each Kara wipe has natural ingredients like avocado, aloe Vera and almonds etc. which serve as antioxidants, and thus nourish the skin constantly to gradually reveal flawless glowing skin. This three step action was always a very critical need for the skin, and with the revolutionary wipe format of skincare, it has enabled women to rectify dull sagging skin all through the day. Additionally, a mesh like structure of the easy- to-carry around wipe helps to hold just the right amount of lotion for one time usage, and a superior applicator technology that regulates the uniformity of
  • 61. 61 lotion absorption into the skin. Therefore, the right amount of skincare at the right time is the Kara way of doing skincare. Make Kara skincare wipes a habit, and see your skin rejuvenate and glow with health and beauty, forever! Manufacturing Facility of KARA Kara wipes are manufactured at the company’s plant at Kharach, Gujarat. The plant layout is approved by FDA and manufacturing activity takes place under stringent conditions that ensure user safety and hygiene. Aditya Birla Group launched this product i.e. KARA skincare wipes in 2008. It is basically a solution to skin care regime out of home– a convenient way to be at your best always. Sometimes your hectic schedule leaves you with little time to take care of your skin. But with Kara skincare wipes in your bag, you can now take care of your skin even when you are on the go. With the unique formulation of natural ingredients, these wipes are easy to use anytime and anywhere. What’s more they are made from Birla Cellulose, a fibre that is 100 per cent natural and biodegradable. Kara skincare wipes are the India’s first branded skin care product. These types of products are very popular in west but in India the category is new one. Although Indian consumers are familiar with the products which are imported, is the first time that an Indian company entered this segment. The brand also marks Aditya Birla Group’s foray into the Indian FMCG market. According to reports, wipes market is worth around Rs. 30 crore (Source: Ginny filament Website). Kara skincare wipes are positioned as an essential skincare accessory. The brand is targeting the young lady professionals who often need to meet lot of people. The brand aims to create a new category of wipes in India. Hence the challenge is to educate the target population about the usefulness of this product.
  • 62. 62  Hassle free application of lotion without using cotton balls.  Portable  Optimized efficacy.  100 per cent natural and biodegradable.  Hygienic.  Alcohol free.  Dermatologically safe.  Assurance of ‘Aditya Birla Group’ Variants of KARA  Deep Pore Cleansing Wipes Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of dirt, grime and excess of oil. Enriched with Jojoba and Avocado extracts, it unclogs pores, detoxifies and thoroughly exfoliates dead skin cells.  Sunscreen Wipes Kara sunscreen wipes has a formulation of SPF 20 which protects the skin from the adverse effects of UV A and UV B sun rays. It is enriched with
  • 63. 63 antioxidants like plum extract and vitamin E that nourishes the skin and Aloe Vera that keeps the skin moisturized.  Moisturising Wipes Kara Moisturising wipes is enriched with the goodness of almond and honey for beautiful radiant and glowing skin. It is also fortified with vitamins for skin conditioning and is suitable for use right throughout the year.  Toning Wipes Kara Toning Wipes is enriched with Rose and Thyme extract that tighten the skin and maintain the normal pH balance.  Make Up Removal Wipes Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed extracts that removes the make-up in just one swipe.  Refreshing Facial Wipes
  • 64. 64 Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment and mint oil for effective freshening. It ensures effective cleansing to remove dirt, excess oil and grime from the face and neck and also leaves a lingering fragrance. Disposable Wipes Market Industrialization and urbanization has led to concentration of human settlement at urban centers, which are the hub of the commercial activities. Industrialization has also led to an increase in personal income levels and the consequential expansion of the middle class, allowing a greater number of folks to indulge in value added consumer disposable items like facial cleaning wipes, moisttowelettes, personal hygiene wipes and time-saving products like household cleaning wipes etc. The growing use of wipes in industrial and consumer applications, combined with modernization and increased consumer awareness, has led to an increase of demand of wipes globally. Wipes started at the bottom or more precisely, the baby’s bottom. Yet, during the past decade, the category has grown to include hard surface cleaning, makeup applications and removal, dusting and floor cleaning.In fact, applications other than baby care now account for about 50% of sales in the wipes category. Disposable wipes have evolved into a global business concept generating more than $5 billion in sales a year. Achieving strong double-digit growth year after year, the category now assumes a major role in the personal care market.
  • 65. 65 Spanning from make-up removal and deodorant wipes in personal care to floor and furniture cleaning products in household care, disposable wipes have gradually expanded to offer a wide range of new applications, replacing the traditional combination of cloth, cotton and cleaning solution. North America continues to be the leading market, and is projected to grow from $4.5 billion in 2009 to $5.5 billion in 2014. Western Europe is second with sales of $3.6 billion in 2009, which is predicted to grow to $4.2 billion in 2014. According to reports, China represents more than 33% of the world’s spunlace production, growing more than 33% between 2008 and 2009. More rapid gains will be linked to developing nations such as China and India; China alone has increased its demand for wipes to nearly $500 million in 2011 and will surpass Japan as the leading market in the Asia/Pacific region. Classification of wipes based on application Wipes mainly cater into 3 categories: 1.Personal Care wipes 2.Household & home cleaning wipes 3.Industrial cleaning wipes As per the EDANA’s report in 2010, the total wipes deliveries in 2010, amounted to 283,058 tonnes to be compared to 250,356 tonnes in 2009. They subdivide as shown in table 1. Personal Care wipes: The personal care wipes market has increased by 15.7% compared to 2009. • Baby wipes: Baby wipes are wet wipes used to cleanse the sensitive skin of infants. These are saturated with solutions anywhere from gentle cleansing
  • 66. 66 ingredients to alcohol based cleaners. Baby wipes are typically sold in plastic tubs that keep the cloths moist and allow for easy dispensing. • Cleansing pads: Cleansing pads are fiber sponges that have been previously soaked with water, alcohol and other active ingredients for a specific intended use. There are different types of cleansing pads offered by the beauty industry: makeup removing pads, anti-spot treatments and anti-acne pads that usually contain salicylic acid, vitamins, menthol and other treatments).Cleansing pads for preventing infection are usually saturated with alcohol and bundled in sterile package. Hands and instrument may be disinfected with these pads while treating wounds. Disinfecting cleansing pads are often included in first aid kits for this purpose. • Personal hygiene: These are usually pre-moistened and come either individually packaged or in one larger container that can be resealed. These kinds of wipes can be useful when you’re doing outdoor activities, especially during warmer weather. The wipes can remove dirt and sweat before they settle into your pores. Some no-rinse wipes can even remove waterproof makeup. Household & home cleaning wipes: • Kitchen wipes • Bathroom wipes • Food service wipes • Glass surface cleaning wipes • Automotive care wipes Industrial cleaning wipe When it comes to industrial applications, choosing the right wipe for the job can make an enormous difference in terms of performance, efficiency and economy. Rags and laundered cloths were once the all-purpose solution for wiping dirt and oils from equipment and hands. Convenient disposable wipes are now widely recognized as the preferred alternative.
  • 67. 67 Global demand for wipes Pre-moistened or wet wipes are normally supplied to the consumer already wet or pre-moistened with a liquid, while the dry wipes are supplied dry, with the understanding that the consumer will add a liquid if needed. In 2009, wet wipes contributed around 71% of the total wipes market. Over time, dry wipes are predicted to gradually gain market share, growing from 29% in 2009 to 30% in 2014. Raw materials for wiping fabrics: • Polyester: It is by far the most common fiber for carded technologies. Asper the application and wipes categories the blend percentage varies. Normally the Industrial wipes are made from 100% Polyester. It is estimated at nearly 43% of the fiber consumed in spun lace. • Viscose: It is another common fiber for wipes, especially for personal care. Personal care wipes are used on very sensitive parts – baby care, facial wipes
  • 68. 68 etc.It has to be very soft, smooth and silky. Viscose fiber has all these properties and because of these properties viscose fiber is referred as “art silk” in the textile industry. Nonwovens industry producers have been working on developing wipes that will flush. To create aflushable nonwoven product, the right combination of strength, easy break up and dispersion is required. To be considered truly flushable the wipe must also be biodegradable. Wipes made from viscose fibers have all these properties and thus can be categorized has flushable products.Household wipes are generally made up of polyester and viscose blended fibers, polyester being the major component. • Cotton:Environmental consciousness combined with price increasesand shortages in competing materials have created a strong market opportunity for cotton in the nonwoven industry during the past two years, particularly in the wipes market where the addition of cotton can boost absorbency and strength. Cotton has been enjoying a place in the private label baby wipes market, viscose continues to be a dominant fiber in most spunlace applications, despite a global supply shortage that has driven up prices. Developed regions like the U.S., Western Europe and Japan will continue to lead
  • 69. 69 the global wipes market because of the large affluent population and lifestyle trends focused on time saving products. Developing regions like China and India will show a rapid growth for wipes – due to the industrial expansions leading to express economic growth. Opportunities for growth exist however they can only be realized by continuously introducing innovative products. Wiping fabric manufacturers are working hard to make sure their wipes customers have lots of choices when it comes to environmentally friendly products.Some of the categories where we can expect to see future growth are household cleaning wipes, toddler wipes and facial wipes. Baby care may have marked the beginning of nonwovens market; the marketers are now moving into even more lucrative categories in an effort to expand the use of wipes beyond babies and are reaching to older kids and their parents. Their portability and convenience, coupled with the hygiene aspect of their single usage, has made them very popular with all types of consumers. Clearly wipes are a rags-to-riches success story in the household and personal products industry and we can bet that demand for these products will continue to grow. In the never-ending drive to encourage consumer spending, advertisers are targeting the hygiene habits of the young Indian male. Analysis of Indian wipes market In the last 3 years there has been an explosion in the number and types of wipes available to the consumer. From baby wipes and facial wipes to disinfecting wipes for your countertop and a slew of automotive wipes to keep your 4-wheel “baby” shiny and supple. In a fast paced world, these wipes are designed for convenience, whether that is for your own personal use or to deal with all those thankless jobs around the house and garage.
  • 70. 70 Betting that rising incomes are persuading more Indian men to take better care of their appearance, the Aditya Birla conglomerate is offering Kara – a new weapon in the battle against the sweat generated as boys go about their daily business. Kara is a face wipe designed to replace the damp cotton towel many Indian men carry on their bikes and scooters as they negotiate the hot streets of Mumbai or Madras.Male grooming products have become one of the fastest growing segments of India’s consumer products industry as men pay ever more attention to how they look and move away from a traditional emphasis on intelligence as the ultimate male quality. Datamonitor, UK-based market research consultancy, estimates that 50 per cent of Indian men and women believe that physically attractive people have more opportunities in life. “Rising affluence and greater consciousness of personal image and hygiene are expected to drive growth in both rural and urban areas,” said Euromonitor, a London-based market research firm, in a report.Sales of dedicated men’s grooming products in India are estimated to be $500m a year, and rising at 15 per cent annually. Changes in trends in the wipes market have also been driven by new product developments and the positive reception of new product applications by the consumer.The global market for wet wipes continues to grow, although it is important to becognizant of the challenges that will present great difficulties to many. Those companiesthat can combine cutting edge technology with the development of new and innovativeideas will survive in the long run. The wipes in India are generally made of Viscose andSpun lace. Birla Cellulose manufactures 98% of the Viscose Staple Fiber in India, so it ispoised to do well against other local players as they would have to purchase VSF from it. The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holds adominant position in market with turnover of Rs. 4.5 crores thus capturing 56% of themarket. However the sector in India is currently fragmented and
  • 71. 71 unorganized. Ginnifilaments (Noida) also hold a strong position in wet wipes market, though their productcan’t be matched in terms of quality to Kara. Wipes witnessed a surge in the number of players vying for consumer attention towards the latter half of the review period. Grasim Industries Ltd undertook intense brand activity in 2009 and 2010, while Johnson & Johnson (India) Ltd launched a baby wipes product line in 2010. Others such as The Himalaya Drug Co. and Godrej Consumer Products Ltd launched brands in 2009 and extended their portfolios over 2010. Private label players Apollo Pharmacy and Pantaloon Retail India Ltd heightened their brand promotions through point-of-sale visibility in 2010. The disposable wet wipes market, fairly niche and nascent in India, has grown to Rs 8 crores. Birla Cellulose (Consumer Products Division of Grasim Industries), which has launched three brands in this category namely Kara, Puretta and Prim for various purposes over the last couple of years, accounts for Rs 4 crores of the market. In the US and Europe, 6 and 10 per cent of the income is spent on disposable products. In India, it is 0.0001 per cent. Worldwide, wet wipes are a $6-billion category, but in India, it’s a nascent category, and a lifestyle item at that, not an essential one, so it will take a while before there comes an inflection point. The disposable wipes market posted double-digit growth in 2008. Consumer awareness about hygiene products increased as a result of increasing advertising, price reductions and the launch of cheaper variants by manufacturers over the latter half of the year. Skin Care wipes also benefited due to the faster pace of life in cities and the rise in the number of nuclear families and working women, who tend to rely more on disposable products when working in the kitchen or whilst travelling outside of the home.
  • 72. 72 The wipes in India are generally made of Viscose and Spun lace. Birla Cellulose manufactures 98% of the Viscose Staple Fibre in India, so it is poised to do well against other local players as they would have to purchase VSF from it. The leading market research agency KSA TECHNOPAK conducted a market survey & discovered that there is a huge untapped potential for wipes in India. According to the survey after Delhi NCR and Chandigarh, Lucknow is the biggest market for cosmetics in North India. The disposable wipes market in India faces stiff competition from cheaper Chinese imports. Competitive Landscape The stronghold of Tainwala Personal Care Products Pvt Ltd on wipes gradually waned over the latter half of the review period. The company built on its first- mover advantage in the review period, and still commands 70% of all wipes value sales in India. However, the swift emergence of national players such as Grasim Industries Ltd, The Himalaya Drug Co, and private label players has caused disruption to its lead in both general purpose wipes and baby wipes. Prospects Wipes constituted less than 1% of retail hygiene value sales in India in 2010. With such products not being traditionally popular in the country, the category still relied on niche consumer segments or season-dependent sales. Though home care wipes and floor cleaning systems is not likely to see any major developments over the forecast period, other product categories under personal wipes – including intimate wipes and cosmetic wipes – are expected to contribute more to wipes growth overall. In a similar trend to the review period, a majority of value sales growth in all wipes categories will be due to the entry and marketing push of national manufacturers.
  • 73. 73 The Indian tissue and hygiene market is very small and largely untapped. Untapped market potential As per the leading market research firm, Euromonitor, the market size of away- from-home tissue and hygiene segment in the year 2010 is estimated to be Rs 3, 115.5 million; Retail tissue and hygiene market size is Rs 18, 623.8 million; Hygiene market size is Rs 12, 454.2 million; and the Tissue category has the market size of Rs 3, 895.6 million. But what’s the reason behind the low penetration of tissue and hygiene market in India? The reason could be lack of awareness and sensitivity/ attention paid towards the hygiene in India. Lack of awareness in the category Traditionally in India, very few consumers are habituated of face wipes. The players in tissue and hygiene category needs to pay more attention on generating consumer awareness relating to use and benefit of hygiene related products. One such initiative is taken by Birla Viscose brand - Kara Skincare wipes, which was launched nearly four year ago in 2008, as a new category in the tissue and hygiene care. At first, the challenge for the brand was to educate and create awareness among its target audience – the young consumers, about the use of skin wipes. The brand used BTL and ATL marketing tools which helped it to be recognised among its target audiences. Urban vs. rural market About 70 percent of India’s total population resides in rural India. With growing income of the consumers from rural India, the industry is focusing more on producing specific products, SKUs, priced reasonably for these markets. As per Euromonitor International Report, in categories such as beauty and personal care; consumer appliances; homecare and retailing; India ranks close to breaking