Splash of innovation: Cholayil’s Ayurvedic body wash to go global

He says it is the convenience offered by body wash liquids and their ubiquitous nature of use that have led the company down this road. “There is a shrinkage of bar soaps in the international markets. We did not want to be left out as we were present only in the bar soap category. So, we introduced liquid body wash products to adapt to the changing consumer trends,” he says. The idea is to launch it exclusively for the global market in April, as the domestic market is still adapting to this change. 

The company plans to launch three variants of body wash replicating the formula of its bar soap. “Like the Medimix soaps, the body wash too will be available in classic, moisturising (glycerine) and sandal versions as we are banking on the familiarity, fragrance and quality aspects of our brand,” he says, highlighting the ‘ayurvedic’ nature of the body wash. In the ayurvedic bar soap and body wash space, we still have an edge over international and Indian brands (Wipro, Dabur, Himalaya, CavinKare) in the Middle East.”

He adds, “We have been operating in the international market for close to two decades. We are the only ayurvedic body wash available on the shelf. We are still exploring the market in terms of the placement in modern trade. The listing fee to operate in such a market is exorbitant and we recognise our own limitations. While we are strong in the Middle East as far as Medimix is concerned, we want to have a strong footprint in South East Asia.” 

So, is phasing out the bar soap on the cards? “We don’t have any such plans as a sizeable Indian population buys bar soaps. The body wash segment largely caters to the US market, where we are available in almost all the Indian stores there,” says Pradeep, whose company’s exports hover around Rs 30 crore and is growing like the domestic market at 15 per cent annually. Incidentally, a distinct market approach has enabled Cholayil to penetrate Taiwan, a new market with a smaller distribution of Indian expats. “Our distributor took a different route, using home-shopping to promote Medimix.” The company also plans to enter the creams and lotions category this fiscal.

The Rs 170 crore Cholayil, spearheaded by Pradeep, owns the marketing rights for Medimix brand for North, East and West India besides export markets. Maximum revenues come from the Western region, with 60 per cent followed by North and East. Cholayil has rationalised its distribution network recently, bringing its 500-odd channels down to 64. 

Terming it as a courageous decision taken by the company, Pradeep says, “Our bottom line and top lines were hit and so, it made sense to focus on lucrative markets. Though the Sales team was unwilling to back this decision initially, today, it is happy. Our bottom line has turned positive and topline growth is also happening.” Cholayil also owns the Cuticura talcum powder brand and although the younger generation is switching to alternatives like deodorants, the company has no intentions to phase it out. “Cuticura has a stronghold in Kerala and contributes Rs 15 crore to the turnover,” says Pradeep.