Good knight plans to expand rural presence

FMCG major Godrej Consumer Products (GCPL) plans to expand its market reach in the rural areas with its flagship home insecticide brand ‘Good knight’, capitalising on the large scope of opportunities there.

Currently, the rural areas account for only 30 per cent of the company’s home insecticide business, but this share is expected to increase as Godrej is bullish on penetration.

“Right now, across the market, over 60 per cent consumers are yet to take to the habit of using home insecticides. Largely in the rural areas, over 74 per cent of the people do not use these products, which translates to roughly only three out of 10 homes using home insecticides. The reasons might be the environment in rural areas, the rampant use of traditional fumigants and difficulty in accessibility and lack of awareness,” GCPL Vice President, Marketing (Home Care) Ajay Dang told Deccan Herald.

“As part of our strategy, we will be launching more products suited to the rural market, considering factors of affordability and need, and linking tradition to scientific R&D. A large portion of the market (20-30 per cent) consumes loose coils. From our portfolio, we have rolled out mosquito repelents, Good knight fast cards and Neem Low Smoke Coil among other products,” Dang said.

In line with its plans, the company is investing in market penetration by touching more outlets. The company currently boasts of 2.2 million outlets retailing its range of home insecticides. “Each year we expand our outlet reach. This year, we will expand it by 8-10 per cent. We are primarily focused on South India for new launches,” he added.

Good knight has been a household name for decades. Many of GCPL Home Care’s products such as mosquito mats, coils, liquidators and non-mosquito insecticides have been gaining steady market share. The home insecticide market in India is pegged at Rs 3,800 crore, and GCPL claims to hold nearly 50 per cent of it, at nearly Rs 2,000 crore. “We have enjoyed year-on-year double-digit growth. Last quarter, we grew 16 per cent, and hope to grow further this year,” he said.

“We have robust R&D activities taking place in Mumbai, followed by manufacturing facilities in Chennai, Pondicherry and the North-east, among other regions,” Dang said, adding that the company is targeting foreign markets for its home insecticides, mostly the the subcontinent and Indonesia.