In an otherwise non-exciting detergent market in Ghana, Wilmar is trying to introduce products that can appeal to consumers. It recently launched three soaps at its premises.
Wilmar says that ‘convenience’ is a key thing consumers are looking for when buying soaps and detergents. For instance, consumers want a soap which not only cleans but also has anti-bacterial properties and the new launches are in tune with these trends.
This is venture into the soap and detergent market is a forward integration production for Wilmar as it refines oil palm to produce fresh stearin which is used in soap making. Wilmar uses the refined product immediately in production, maintaining its freshness.
Wilmar is also adding glycerine, shea butter and other essential oils that are good for the skin to the soaps.
Although, soap making is not Wilmar’s core business, they have formed a JV with Kappa Oil, a leading soap manufacturer in Kenya and East Africa, to establish Africa Consumer Product Limited, which would be the main vehicle for manufacturing of soaps and detergents.
Learn more about soaps and detergent trends in Africa at CMT’s Africa Home and Personal Care Markets Summit on 26-27 September, 2018 in Johannesburg, South Africa.
15 Aug, 2018
Dabur has been expanding its footprint in Africa via several acquisitions in the past few years. Its most recent acquisitions in Africa are - D&A Cosmetics Proprietary Ltd and Atlanta Body & Health Products Proprietary Ltd., to be acquired for 40.27 million rand and Atlanta Body for 1.73 million rand, respectively. Dabur reduced the value of the deal from its previously announced 50 million rand for both the companies.
The new acquisition in South Africa will be made by its step-down subsidiary Dermoviva Skin Essentials. The new acquisitions will establish Dabur as a key player in the African home and personal care market as D&A Cosmetics already has a good personal care and hair care products range for both wholesale and retail customers in South Africa, Namibia, Swaziland, Botswana and Lesotho. Besides Dabur can also profit from Atlanta Body's products sold to salons in South Africa.
Dabur started expanding into the African home and personal care market in 2016 with its first takeover deal when it bought South African cosmetics manufacturing and trading firm Discaria. The same year, Dabur also acquired the personal care, hair care and creams businesses of the South Africa-based CTL group of companies for $1.5 million.
Dabur started expanding overseas in 2010 with its first foreign acquisition of Turkish personal care products company - Hobi Kozmetik Group for $69 million. In 2010, Dabur also went ahead to acquire Namaste Laboratories in the US for $100 million.
It is not just Dabur, but another Indian home and personal care company Godrej Consumer Products that has made several acquisitions in the lucrative African home and personal care market.
Gain insights on Africa's home and personal care market's at CMT's Africa Home and Personal Care Markets Summit on 26-27 September, 2018 in Johannesburg, South Africa.
Contact Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.
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02 Jul, 2018
In 2013, L’Oreal established its first factory in Egypt’s 10th of Ramadan industrial city, with investments amounting to €50 million.
L’Oreal offers a variety of its international products in Egypt, reaching 12 brands – many of which are locally manufactured at its Egypt factory, while others, produced by L’Oreal Group, are imported from other facilities.
Now the cosmetics giant plans on expanding its production in Egypt. In 2018 it targets to produce more than 80 million units – from its 75m units produced last year. The products are expected to be sold not only to Egypt’s strong consumer base of 100 million but also in the Middle East and Africa region.
L’Oreal faced an increase in production costs due to the liberalisation of the exchange rate which finally led the company to increase its product prices. The increase ranged around 40% based on the type of product.
However, L’Oreal is now addressing the rising costs through local sourcing of raw materials and incorporating more locally manufactured packaging materials in Egypt. Locally manufactured packaging last year represented 85% of production versus 50% in 2015 while local component of raw materials in production further increased to 25% instead of 15% in the same year.
The production capacity at its Egypt factory is 120m units while it has the potential to expand its productivity to 300m units – which will be determined by the demand in both local and regional markets. Around 85% of its production from the Egypt facility is export-oriented, while the local market consumes the remaining 15%. Saudi Arabia, the rest of the GCC, Lebanon, and Morocco are the company’s main exporting markets.
Find out more at CMT’s Africa Home and Personal Care Markets Summit on 26-27 September, 2018 in Johannesburg, South Africa.
11 Jun, 2018
After much delay in bringing key spares and equipment from South Africa, Zimbabwe’s FMCG company - Trade Kings is expected to complete construction of its paste detergent plant.
The new detergent paste plant is an addition to Trade Kings’ larger detergent powder manufacturing plant, commissioned in October 2017. The detergent project is built at a total cost of approximately $20 million – that includes cost of construction, infrastructure, machinery, raw materials and commissioning.
Zimbabwe has a high demand for laundry detergents. The country imports a lot of this product from Zambia and distributes in Zimbabwe.
During the trial run, Trade Kings’ plant managed to produce 200 tonnes of high quality detergent powder. Trade Kings’ two plants have the capacity to supply both to local markets as well as export to regional markets, that will strengthen Trade Kings Zimbabwe as the only large-scale manufacturer of detergents in Zimbabwe.
Trade Kings is known for popular detergent pastes such as Boom, Xtra and Bullet and powders as well as other laundry soaps, household products, confectioneries, carbolic and snacks.
Ballestra has designed and supplied all the process machinery for the detergent powder plant.
Gain insights on Africa’s detergent market’s at CMT’s Africa Home and Personal Care Markets Summit on 26-27 September, 2018 in Johannesburg, South Africa.
10 May, 2018
