Godrej Consumer to launch paper format mosquito repellent in India

The rise of dengue and malaria incidents in the country has helped the home insecticide business of Godrej Consumer Products. The company’s innovative paper coil, called Hit Magic Paper in Indonesia, has also turned around the fortunes of the company in the region.

Godrej Consumer Products holds 39% share of the Rs 3,500-crore home insecticide market in India. With growth drivers such as innovations, distribution synergies and continuous brand investments, the company has gained market share across all formats of electrics, coils and aerosols.

“While the category growth did get some benefit of dengue and malaria incidences, our household insecticides category delivered 28% sales growth. This is much higher than the category growth,” said Adi Godrej, Chairman, Godrej Consumer Products Ltd.

The company has a portfolio of insecticides and personal care products, that includes brands such as Snuggy, Goodknight and Hit, marketed through its joint venture with the US-based Sara Lee Corp.

The company’s home insecticide products are available across formats, including aerosols, coil, mat, liquid vaporiser and gel. While mosquito solutions contribute to 90 per cent of the insecticide revenues in India, cockroach products make up for less than 10 per cent. This year, the company focused on growing the market for cockroach repellents.

Indonesia contributes to 45% of the international business. The Hit Magic Paper in Indonesia, which was not available in that market earlier, is adding to the company’s bottomline, further improving valuations.

The smokeless high-margin product is endowed with fragrance and is priced lower than mosquito coils. The format got a good response in Indonesia and achieved 8% penetration within three months of launch.

The company plans to launch its disruptive, innovative paper format repellent in India within the year. The delay has been attributed to regulatory approvals.

The Hit Magic Paper burns for three minutes and has residual efficacy up to eight hours. The launch was supported by strong marketing investments, with the company aiming to make Hit Magic a category for a new, low-cost solution for end users and coil converts.