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Domestic feminine hygiene brand Niine is planning to increase its capacity and has already received the sanction under the PLI scheme for the first phase of expansion with an investment of more than Rs 135 crore in facilities and machinery. Niine has applied under the PLI scheme for capacity expansion with a proposed investment of over Rs 500 crore in phases. The brand was selected for the PLI Scheme for Textile Industries, approved by the Government of India this July. The investment, said Amar Tulsian, founder and CEO of Niine, will be made in Gorakhpur, Uttar Pradesh, where the brand has its existing facilities. “A total of 61 projects have been selected across India. The same will be funded from internal cash accruals and PE fundraising,” he said.
Established in 2018, Niine competes with major companies in the segment such as ITC Limited, Unilever, Johnson & Johnson, Procter & Gamble. Amar Tulsian, founder and CEO of Niine, spoke to FinancialExpress.com about its retail presence, expansion plans, growth prospects, the overall feminine hygiene industry, among other things.
Here are the edited excerpts from the interview:
Tell us about your current retail presence and your expansion plans. Are you planning to explore new retail channels?
We currently have a solid offline presence with 4.8 lakh retailers, 4000+ channel partners, advanced trade partners, 25 online platforms and a D2C network. We are continuously striving to increase the distribution network across India and our aim is to be present in every relevant outlet and modern outlet.
In terms of new retail strategies, although we are not currently looking at subscription models, I think we should consider it at least 1 year from now. We are currently focusing on maximizing trials.
What percentage of your sales come from offline retail channels compared to online channels?
Niine’s business is built primarily in the offline channel. 95 percent of sales in FY22 were from the offline channel. However, we are also gradually working on building our online presence.
What kind of investment are you planning for any expansion plans and new initiatives (if any)?
Niine has already invested more than Rs 150 crore in the first phase of expansion and the second phase is also planned. With the baby care product market in India expected to grow at USD 26.35 billion, at a CAGR of 11.11 percent from 2020 to 2025, Niine has further expanded into the baby care segment and -late in hand hygiene products. We are looking to expand the capacity of our sanitary napkin and baby diaper lines and add adult diapers to our product portfolio in the near future.
How do you see the current growth in the D2C segment? How are you capitalizing on this growth for Niine?
The D2C segment is growing tremendously as more and more companies give customers the ability to buy directly. This happened mainly because of the ease of payments and shipping brought into the game by platforms like Shopify. As the current sales ratio of sanitary napkins is much higher in offline channels, we have focused on this first and are now expanding to build our D2C channel.
How do you see the competition in this space? What are your strategies to stay ahead of the game?
Non-major players in the feminine hygiene and baby care market have been quick to jump on board with D2C. Market leaders are still a bit slow to respond with their D2C sites. The goal here is to start and aggressively build a user base with product trials and differentiated offerings. The quality of our products with European-style packaging really attracts consumers, and biodegradable waste bags are a much-discussed feature that Niine provides exceptionally.
Elaborate on the company’s performance over the previous year and your outlook for 2022.
We did exceptionally well last year, reaching Rs 300 crore in sales target. As a new brand and a local enterprise, we look forward to entering the areas where the giants have not reached. Our outlook for 2022 is also positive. We will definitely increase our sales even more.
How do you see this segment growing over the next 5 years?
We are seeing a CAGR of more than 20 percent in both the sanitary napkins and baby diapers markets, and with greater sensitivity to personal hygiene, this growth rate could increase by another 4-5 percent YoY. So the opportunities are huge for brands like Niine who have provided consistency in quality and better user experience compared to the leading brands in the market. We have attracted additional attention from both merchants and consumers. So the next five years will also see a lot of disruption in this segment and Niine will definitely lead this change.
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