Ghadi Detergent (HUL) Success Story

Local brands are making inroads in the laundry market at large. A Famous brand of Kanpur named Ghadi is the biggest example of this. Every fourth detergent sold in the country is of Ghadi. In comparison, the stock of Hindustan Unilever (HUL) is lagging behind. Five years ago, Hindustan Unilever dominated every sub-category in this segment. Now Ghadi has become a popular brand while Hindustan Unilever has established itself in the premium and mid-market. In fact, the size of Ghadi Detergent as a brand has exceeded the combined size of the wheel, Dhoop, and Nirma.

Ghadi has maintained a 22% share of the mass market over the past three years, but the market share of other brands with similar price points has steadily declined. This is shown by the September data released by Nielsen. HUL’s Ghunghat and Sunlight both lost 1.70% market share overall, while Nirma lost 0.30% market share for regional brands. However, HUL continues to lead the Rs 17,000-crore Indian laundry market with a 37.4 percent share.

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However, the market share of Procter & Gamble (P&G), which sells detergents under the Tide and Ariel brands, declined by 3.50 percent to 15.7 percent during the same period. Nirma’s market share, which ousted Surf from the top 3 list three years ago, has also come down to 3% during this period. According to analysts, this shows that HUL, which has been slipping in the mass market, is finding success in the premium market.

Avneesh Roy, senior VP-institutional equities, at Edelweiss Securities, said, “The premium category that HUL is promoting is not increasing the market share of any mass-market brand, including Ghadi. This has led to an increase in the share of detergents in the premium category, while Ghadi largely dominates the market even without an increase in market share. The widening price differential now as compared to five years back has helped HUL snatch market share from P&G.

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Tide is priced 10% higher than Rin, which P&G has been leveling for years, often through promotional pricing, but over the last two years, it has been driven by P&G’s global strategy to focus on profit margins and lower The difference has widened due to the abolition of Margin pack and brand. There is an increase of about 25%. There are three sub-segments in the Indian laundry market. Ariel and Surf are in the premium, Rin and Tide are in the mid-market while Ghadi, Weal, and Nirma dominate the mass market.

The dominance of Indian brands is increasing now and this is good news. So, Friends, I hope you like this article about Ghadi Detergent. Thanks for reading this article.