Godrej Consumer Products has sold its diaper brand Snuggy to Nobel Hygiene for an undisclosed amount, exiting the baby care segment that it entered nearly 15 year ago.
In 2003, GCPL had acquired the brand from Shogun Diapers, which was one of the three leading players in the Indian baby diaper market with presence mainly in South India. “A baby diaper is also one of the most technologically complex product in its price range. With our ability to deliver a consistent, high-quality product for over seven years of manufacturing, we aim to leverage the same expertise for Snuggy,” said Kamal Johari, founder of Nobel Hygiene which is a leader in the adult diaper category with their brand, Friends.
The size of diaper business in India is about Rs 5500 crore where Procter & Gamble controls nearly half the market with its Pampers brand, followed by Unicharm’s Mamy Poko. For Godrej, the category has been a non-focus area since a decade after it switched to higher margin and innovative products under three core categories of household insecticides, personal wash and hair care. GCPL didn’t respond to ET’s query on the deal.
The penetration of disposable diapers is less than 2% in the Indian market where several smaller stores refuse to stock higher quantities due to its large size. Also, with a price range of Rs 9 and Rs 43 for a single diaper pack, the segment is pricier and niche for most Indians who restrict its usage even after buying it.
“With a market growing so fast, there’s scope for multiple brands to survive and thrive. The challenge, however, is to consistently make and sell a high quality product,” said Johari. Nobel Hygiene was established in 2000 and also has a baby diaper brand called Teddyy.
Source: Economic Times