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Chemical industry in Argentina. Low demand for cosmetics and cleaning agents. Slump in domestic demand. Opportunities for exports [1 figure]
F O C U S decreased by 17% to €93 M. Profits per share decreased to €0.66 (€0.75 in 1Q 2001). Henkel Group managed a slight increase in turnover in Europe and North America but sales decreased in Latin America and Pacific Asia. Henkel Group targets a turnover of above €10 bn in 2002. Neue Zuercher Zeitung, 7 May 2002, 223 (104), 11 (in German),
Market report: Reckitt Benckiser programme of cost reductions The maker of Mr Sheen and Vanish cleaning products, Reckitt Benckiser, has been on a giant programme of cost reductions and looks like it is making a stonking start to 2002, when it has promised to deliver profit growth close to 15%. Net income in 1Q 2002 looks to have been up by about 28%, to £69 M, with the costs of marketing some new products offset by the cost cuts and reductions in the price of raw materials. The Independent, 4 May 2002, (Website: http://www.independent.co.uk)
Stepan Co 2001: Consumer and industrial products An extended table shows Stepan Co’s product range. Data are categorised as: personal care products (38 products), polymers (applications listed), food ingredients & industrial surfactants (40 products), and laundry & cleaning products (39 products). Stepan Co Annual Report 2001, 11 Feb 2002, 14-15 (Stepan Co, Northfield, Illinois 60093, USA, Tel: +1847-446-7500, http://www.stepan.com)
Procter & Gamble-Rakona uses traditional Czech trade marks Procter & Gamble-Rakona (P&GR) (Rakovnik, Czech Republic), washing and cleaning agents producer, uses traditional trade marks to raise its sales in the Czech Republic. P&GR’s best selling washing powder in the Czech Republic is Tix, which has a 10% share on the local market and which existed already before World War II. Its second best selling washing powder is Ariel, which has an 8% share on the Czech market and which was registered there in 1990. The best selling washing-up liquid in the 6
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Czech Republic is Jar, dating back to 1964. P&GR has used the popularity of Jar but has had to improve its quality. P&GR is part of the multinational concern Procter & Gamble. Hospodarske Noviny, 31 May 2002, 46 (105), 25 (in Czech)
Chemical industry in Argentina. Low demand for cosmetics and cleaning agents. Slump in domestic demand. Opportunities for exports [1 figure] Domestic production of cleaning agents and toiletries in Argentina decreased by 18.8% in 1Q 2002 after a rise of 8.6% in 2001, according to the National Institute of Statistics (Indec). Domestic sales of cosmetics, toiletries and cleaning agents decreased by 8% in 2001 and are predicted to drop a further 10–15% in 2002. Argentina manufacturers a range of precursors and intermediates for the cosmetics industry and is a major exporter of essential oils and essences as well as jojoba oil. Argentina exported essential oils, processed fragrances, toiletries and cosmetics worth $206 M (11%) in 2001. Corresponding imports decreased by 4.2% to $154.8 M. Imports of soap, detergents and dental wax decreased by 7.8% to $159.2 M and exports decreased by 3.6% to $65.8 M. Some cosmetics companies in Argentina envisaged improved opportunities for export after the depreciation of Argentina’s currency, particularly to neighbouring countries Chile, Columbia, Venezuela and Mexico. A pie-chart sections the Argentinean cosmetics market by companies and turnover figures in 2000 as follows: Unilever ARS 767 M; Cosmeticos Avon ARS 332 M; Procter & Gamble ARS 332 M; Gillette ARS 225 M; Kimberley Clark Argentina ARS 218 M; S C Johnson & Son ARS 190 M; Johnson & Johnson ARS 179 M; L’Oreal ARS 137 M; The Dial Group ARS 123 M; and Colgate Palmolive ARS 121 M. Nachrichten fuer Aussenhandel, 27 May 2002, 65 (99), 2 (in German)
Fast moving consumer goods: Can they spruce up their image? [1 table] Sales growth of most of the fast moving consumer goods (FMCG)
companies have been reduced to single digits from double digits since 1999, due to the economic slowdown and the decline in rural disposable incomes. Sales of Hindustan Lever recorded a negative 10% growth for 1Q 2002 while the sales of Nirma and Reckitt Benckiser were also affected for the quarter ending Mar 2002. While the sales growth of products like shampoos and cosmetic products have declined, the growth of toilet soaps, detergents and toothpastes have either remained flat or reduced. Business Line, 12 May 2002, 9 (131), 8
COMPANY NEWS Kao poised to scale down chemicals production Kao is to shut production at its site in Taiwan starting Jun 2002, with the exception of its detergents raw materials. The company’s Taiwan subsidiary Kao (Taiwan) Co will concentrate on the manufacture and sales of detergents and household products. Kao made a Yen 1–2 bn provision, for the shutdown, in its Mar 2002 accounts. Japan Chemical Week, 9 May 2002, 43 (2170), 5
Reckitt Benckiser seeks nod to buy out Indian arm The UK-based Reckitt Benckiser Plc has sought approval from Foreign Investment Promotion Board to acquire 49% stake in its Indian subsidiary Reckitt Benckiser India Ltd held by Indian public and convert it into its 100% subsidiary. The UK company plans the acquisition through one of its subsidiaries called Lancaster Square Holding. Reckitt Benckiser India is involved in the production of household laundry, toiletry, pharmaceuticals, air fresheners, bathroom cleaners among other products. For 1Q ended Mar 2002, the company incurred a loss of Rup 21.7 M on total sales of Rup 1155.5 M. For the year ended Dec 2001, net profit was Rup 214.3 M on total sales of Rup 5502.8 M. Business Line, 26 May 2002, 9 (145), 1
JULY 2002
Market report: Reckitt Benckiser programme of cost reductions The maker of Mr Sheen and Vanish cleaning products, Reckitt Benckiser, has been on a giant programme of cost reductions and looks like it is making a stonking start to 2002, when it has promised to deliver profit growth close to 15%. Net income in 1Q 2002 looks to have been up by about 28%, to £69 M, with the costs of marketing some new products offset by the cost cuts and reductions in the price of raw materials. The Independent, 4 May 2002, (Website: http://www.independent.co.uk)
Stepan Co 2001: Consumer and industrial products An extended table shows Stepan Co’s product range. Data are categorised as: personal care products (38 products), polymers (applications listed), food ingredients & industrial surfactants (40 products), and laundry & cleaning products (39 products). Stepan Co Annual Report 2001, 11 Feb 2002, 14-15 (Stepan Co, Northfield, Illinois 60093, USA, Tel: +1847-446-7500, http://www.stepan.com)
Procter & Gamble-Rakona uses traditional Czech trade marks Procter & Gamble-Rakona (P&GR) (Rakovnik, Czech Republic), washing and cleaning agents producer, uses traditional trade marks to raise its sales in the Czech Republic. P&GR’s best selling washing powder in the Czech Republic is Tix, which has a 10% share on the local market and which existed already before World War II. Its second best selling washing powder is Ariel, which has an 8% share on the Czech market and which was registered there in 1990. The best selling washing-up liquid in the 6
O N
S U R FA C TA N T S
Czech Republic is Jar, dating back to 1964. P&GR has used the popularity of Jar but has had to improve its quality. P&GR is part of the multinational concern Procter & Gamble. Hospodarske Noviny, 31 May 2002, 46 (105), 25 (in Czech)
Chemical industry in Argentina. Low demand for cosmetics and cleaning agents. Slump in domestic demand. Opportunities for exports [1 figure] Domestic production of cleaning agents and toiletries in Argentina decreased by 18.8% in 1Q 2002 after a rise of 8.6% in 2001, according to the National Institute of Statistics (Indec). Domestic sales of cosmetics, toiletries and cleaning agents decreased by 8% in 2001 and are predicted to drop a further 10–15% in 2002. Argentina manufacturers a range of precursors and intermediates for the cosmetics industry and is a major exporter of essential oils and essences as well as jojoba oil. Argentina exported essential oils, processed fragrances, toiletries and cosmetics worth $206 M (11%) in 2001. Corresponding imports decreased by 4.2% to $154.8 M. Imports of soap, detergents and dental wax decreased by 7.8% to $159.2 M and exports decreased by 3.6% to $65.8 M. Some cosmetics companies in Argentina envisaged improved opportunities for export after the depreciation of Argentina’s currency, particularly to neighbouring countries Chile, Columbia, Venezuela and Mexico. A pie-chart sections the Argentinean cosmetics market by companies and turnover figures in 2000 as follows: Unilever ARS 767 M; Cosmeticos Avon ARS 332 M; Procter & Gamble ARS 332 M; Gillette ARS 225 M; Kimberley Clark Argentina ARS 218 M; S C Johnson & Son ARS 190 M; Johnson & Johnson ARS 179 M; L’Oreal ARS 137 M; The Dial Group ARS 123 M; and Colgate Palmolive ARS 121 M. Nachrichten fuer Aussenhandel, 27 May 2002, 65 (99), 2 (in German)
Fast moving consumer goods: Can they spruce up their image? [1 table] Sales growth of most of the fast moving consumer goods (FMCG)
companies have been reduced to single digits from double digits since 1999, due to the economic slowdown and the decline in rural disposable incomes. Sales of Hindustan Lever recorded a negative 10% growth for 1Q 2002 while the sales of Nirma and Reckitt Benckiser were also affected for the quarter ending Mar 2002. While the sales growth of products like shampoos and cosmetic products have declined, the growth of toilet soaps, detergents and toothpastes have either remained flat or reduced. Business Line, 12 May 2002, 9 (131), 8
COMPANY NEWS Kao poised to scale down chemicals production Kao is to shut production at its site in Taiwan starting Jun 2002, with the exception of its detergents raw materials. The company’s Taiwan subsidiary Kao (Taiwan) Co will concentrate on the manufacture and sales of detergents and household products. Kao made a Yen 1–2 bn provision, for the shutdown, in its Mar 2002 accounts. Japan Chemical Week, 9 May 2002, 43 (2170), 5
Reckitt Benckiser seeks nod to buy out Indian arm The UK-based Reckitt Benckiser Plc has sought approval from Foreign Investment Promotion Board to acquire 49% stake in its Indian subsidiary Reckitt Benckiser India Ltd held by Indian public and convert it into its 100% subsidiary. The UK company plans the acquisition through one of its subsidiaries called Lancaster Square Holding. Reckitt Benckiser India is involved in the production of household laundry, toiletry, pharmaceuticals, air fresheners, bathroom cleaners among other products. For 1Q ended Mar 2002, the company incurred a loss of Rup 21.7 M on total sales of Rup 1155.5 M. For the year ended Dec 2001, net profit was Rup 214.3 M on total sales of Rup 5502.8 M. Business Line, 26 May 2002, 9 (145), 1
JULY 2002