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    CavinKare forays into men's grooming, targets initial CAGR of 60 to 70%

    CavinKare forays into men's grooming, targets initial CAGR of 60 to 70%

    CavinKare forays into men's grooming, targets initial CAGR of 60 to 70%
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    By Jude Sannith   IST (Updated)

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    CavinKare has launched a range of men’s shampoos, shower gel, beard styling oils and beard creams, under its new brand ‘Bikers’.

    Chennai-based FMCG major CavinKare has announced a foray into men’s grooming — a segment that the decades-old company has not had a presence in. "The men’s grooming segment has been growing fast and witnessing at 15 percent CAGR (Compound Annual Growth Rate), which we have not been a part of," said Venkatesh Vijayaraghavan, CEO and director (FMCG), CavinKare.
    "We are seeing a marked consumption trend that men have begun looking at personal care and it’s an opportunity that we want to capitalise on," Vijayaraghavan added.
    In keeping with these plans, CavinKare launched a range of men’s shampoos, shower gel, beard styling oils and beard creams, under its new brand ‘Bikers’. The company expects to clock Rs 100 crore in revenues from the segment in the next three to four years.
    'Expecting explosive growth'
    "In a segment like this, our growth rates will need to be explosive; a growth rate of 20 to 30 percent would be considered nominal,” said Vijayaraghavan, "In some of these categories, we are seeing growth as high as 50 to 60 percent year-on-year, for the first four to five years. Up until Rs 100 crore revenue milestone, our growth will be in the range of 60 to 70 percent."
    CavinKare will begin leveraging its presence at 10 lakh retail channels — this includes modern trade outlets, e-commerce, anchor stores, supermarkets and general stores — to sell its men’s grooming range, as it hopes to target the mass-market segment.
    Three separate shampoo products — Helmet Damage Repair, Anti-Dandruff and Strong & Bouncy — will be available in sachets starting from Rs 2 per sachet and SKUs (stock-keeping units) priced between Rs 80 and 415 per SKU.
    'FMCG to contribute 65-70 percent of CavinKare revenues'
    A few weeks ago, CavinKare announced a change in leadership as it restructured business. The company’s chairman, CK Ranganathan, said the conglomerate would operate through four separate verticals: FMCG, retail, e-commerce and innovation. The company has outlined a growth target of 100 to 150 percent for each of these verticals.
    The company also publicised plans to target revenue of Rs 5,000 crore over the next four years. "Nearly 65 to 70 percent of this revenue target will be accounted for by the FMCG vertical," said Vijayaraghavan.
    He added that this was courtesy of multiple growth opportunities that the company had identified across key segments, including food and snacks and personal care: "Given the right set of investments and infrastructure, all verticals could reach 100 percent growth year-on-year in the next three to four years."
    One of the key growth drivers in CavinKare’s FMCG segment is the dairy business. "It could grow upwards of 20 percent and this growth will be driven by branded products beyond milk — like cheese," said Vijayaraghavan, "We're hoping to expand the dairy business beyond Tamil Nadu and invest upwards of Rs 500 crore in dairy infrastructure."
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