Mouthwash

The oral care market in India (2010)

THE ORAL CARE market in India is valued at over Rs 4500 crore and is expected to
reach Rs 5000 crore by 2012.

THE MARKET CAN be segmented into mouthwashes, toothpastes, toothbrushes and

tooth powders.

THE MOUTHWASH market in India is valued at over Rs 85 crore and is expected to

reach Rs 100 crore by 2012.

THE TOOTHBRUSH market is valued at over Rs 600 crore.

THE TOOTHPASTE market is estimated at over Rs 3000 crore and is expected to reach
Rs 3400 crore by 2012.

THE TOOTH POWDER market is reducing. It is valued at Rs 475 crore and is

expected to reduce to Rs 450 crore by 2012.

Mouthwash
Mouthwash category market size in India is at around Rs. 85 cr.( compare to Rs.
2800 cr. in US ) with more than 10 players fighting for the market share. Since
Mouthwash product is more like a therapeutic rather than daily use and
cosmetic product, it is sold as prescription and OTC brand both. More than 75%
of sales comes from prescription market. Listerine dominates the OTC market
with more than 90% market share. Betadine, Clohex and Hexidine are the
major brands in prescription market. Demand in this category is mainly
generated by medical practitioners as a medicine for gingivitis. In western
countries, this product is regularly used as a part of morning activities and
after meal. So for marketers in India, challenge lies into changing consumer
behavior from therapeutic care to preventive care.

Few Brands
Listerine
AM/PM
Plax
 Hand Sanitizers
For decades, personal hygiene for Indians started and ended with soaps and hand wash.
Not any more. With swine flu scare sweeping across the country and spreading
consciousness about hygiene like never before, a bunch of consumer product makers
including Godrej Consumer Products, Paras Pharmaceuticals and Wipro Consumer Care
have jumped into this market with hand sanitizers.

Hindustan Unilever too has launched its hand sanitizer in select markets under the
Lifebuoy brand alright, but it’s facing competition from Himalaya Herbal Healthcare, one
of the few existing players that had so long restricted its sales mostly to hospitals, and a
spate of new regional brands.

Reckitt Benckiser, makers of Dettol antiseptic liquid and soaps, also have introduced a
hand sanitizer.

Marketers are using different positioning from convenience (no need for water and
towels) and effectiveness (safer than traditional methods) to even emotion for their
respective brands.

Godrej Consumer Products, for example, is tapping distribution points like kirana and
general stores, and even small chemist outlets for its Protekt hand sanitizer. Paras
Pharmaceuticals is positioning its Dermicool hand sanitizer indirectly against soaps and
is mainly targeting women. It was the first in the category to advertise on television.

“When people are outside-the-home in shopping malls or traveling, even water can have
germs. Hand sanitizers offer far better protection against germs. The category seems to be
already overcrowded.

Wipro Consumer Care entered this space about three months ago by extending its
Chandrika brand to hand sanitizers. It is mainly focusing on schools to create awareness
about its hand sanitizer brand.

According to a Nielsen study, sales of hand sanitizers in the United States soared 245%
on reports of the H1N1 flu strain. In the UK, hand sanitizers has grown three-folds since
the HINI scare broke about 10 months ago. This sudden surge in demand around the
world has brought alive an almost non-existent market, where the only available hand
sanitizers were expensive imported brands.

Reckitt Wipro
Godrej HLL
Himalaya etc (Numerous Other brands already catering to hospitals and other institutions)
Amrutanjan
Paras
 Toluene Di-Isocyanate

Toluene diisocyanate (TDI) is an aromatic diisocyanate. It is produced for reaction with

polyols to form polyurethanes. It exists in two isomers, 2,4-TDI (CAS: 584-84-9) and
2,6-TDI (CAS: 91-08-7). 2,4-TDI is produced in the pure state, but TDI is often
marketed as 80/20 and 65/35 mixtures of the 2,4 and 2,6 isomers respectively. It is a
highly produced diisocyanate, accounting for 34.1% of the global isocyanate market in
2000, second only to MDI.

TDI is used mainly to produce flexible foams for furniture and car
seating, and also finds application in integral skin systems and
solid elastomers.

TDI is the oldest isocyanate and is the larger isocyanates used so far. Usage of MDI is
smaller, but has a faster growth rate in the past few years. MDI is expected to grow faster
for another decade, if not for longer period. The consumption of isocyanate and polyol
depends upon the finished product.

Typically, flexible PU products use maximum of 15% of isocyanate while the rigid
products use about of 30%. TDI has almost 45% share and MDI has 25% share. The
remaining 15% belongs to special isocyanates that are used for special PU used in
adhesive and coating. PU products besides isocyanate and polyol use 10% catalyst,
surfactant, blowing agent, pigment/colourant and filler.

Among the isocyanates, MDI is expected to grow at about 8% while TDI is likely to
grow at 3-4%. Typically MDI is used in rigid application while TDI is used in flexible
products. MDI is also increasingly snatching TDI share even from flexible product range.
In fact it is believed that the growth of MDI is increased by 1 % while substituting TDI as
raw material.

India has shown a very healthy growth of about 14 % over the last 15 years. From a level
of 17 KT in 1990, the consumption has reached a level of 120 KT in 2005. Exhibit 1 also
describes the application of PU in India in 2005. Flexible products have a significantly
larger share while rigid PU is only less than 5 KT out of which 1.5 KT is TPU.
 Exhibit 1
Polyurethane demand estimates in India
Application 2005 2010 AAGR
(KT) (%) (KT) (%) (%)
Flexible slabstock 50 42 95 44 13.7
Moulded flexible products 26 22 45 21 11.6
Shoe soles 11 9 20 9 12.7
Case 7 6 12 6 11.4
Rigid 24 20 40 19 10.8
TPU (Thermoplastic
2 2 3 1 8.4
Polyurethane elastomer)
Total 120 100 215 100 12.4

Historical growth of PU consumption as illustrated in exhibit 2 from 1990 to 2005 shows

almost uniform growth over this period.

Exhibit 2
Historical consumption of Polyurethane in India
Year Consumption (KT) AAGR (%)
1990 17 Nil
1995 30 12.0
1998 55 15.8
2003 105 15.0
2005 120 13.9
2010 215 13.5
*AAGR for each of the years mentioned above is calculated from 1990

Higher growth is seen from 1995 to 1998 compared to earlier phase from 1990 until
1995. It is almost similar between 1995 and 2005. In fact it is expected to grow slightly
faster in the next 5 years. The main reasons for higher growth are:

Growth in the middle-income group as well as disposable income resulting in buying

of more sophisticated consumer products that often use costly PU product.
Increased demand from consumer that is climbing the income group.
Increased activities in automobile and construction both are key drivers of PU growth.
 Increased activity of consumer durable market (refrigerators)
Increased environmental pressure against pentane used in EPS foam used in
refrigerator and construction activities

Indian PU market is concentrated in flexible products. Exhibit 3 summarizes the end-use

application and clearly shows a preference for flexible products.

Exhibit 3
End-use market of PU in India 2005
Sector (KT) (%)
Furniture & bedding 50 42
Adhesive & sealant 5 4
Packaging 4 3
Footwear 11 9
Automotive 15 13
Refrigeration 20 17
Construction 7 6
Textile & garment 5 4
Other 3 3
Total 120 100

Pioneered by U–foam, India began production of PU flexible slab stock in 1960.

However it is no longer a major force to reckon in this sector. There are two other larger
processors in flexible products of foam. They are:
• Sheela foam, Ghaziabad UP
• Tirupati foam, Ahmedabad, Gujarat

Automotive moulded products are manufactured by:

Bharat Seats
Krishna Maruti
Polyflex
Tata Johnson Controls

All major refrigerator producers in India also manufacture PU insulation slab stock.
Footwear producers such as Action and Liberty footwear are the major producers of PU
shoe sole.
Flex group and Paper converter are the major players in PU adhesive and sealant
For quite sometime, India did not have manufacturing facilities for PU rfeedstock- TDI,
MDI or polyols. Expanded Incorporation at Mumbai and Manali Petrochemical Ltd at
Manali Chennai manufacture Polyols in India. Narmada Chematur with 18 KT capacity
of TDI has partially fiiled the void. However, MDI is still not manufactured in India and
is required to be imported. The dependence on import of several small sized processors
affect cost effective imports of MDI. It could be one of the reasons for somewhat slower
growth of MDI at least until the end of 2000. In 2000, imports were liberalized and the
import tariff was reduced to a significant extent..

Indian PU market is expected to grow at about 12-13% if not at about 15% in the coming
5 years. The demand in 2010 is expected to reach a level of 215 KT from 120 KT in 2005
and thus is expected to grow at an average growth of 12.5% This estimate could be
conservative. It is possible that 13.5 % growth could be seen and the demand could reach
a level of 225 KT instead of 215 KT.

Major Players
MANALI
NCPL
GNFC
BASF
DOW
HOCL
Other Local and Exporters from Overseas Etc