Feb 5, 2013: Godrej Consumer Products which merged its subsidiary Godrej Hygiene with only one brand and that to in the
diaper category, Snuggy has decided not to focus much on this category. Snuggy brand which Godrej acquired from Shogun Diapers in 2003 has been a regional brand with most of the sales coming from states such as Kerala and Tamil Nadu. Snuggy has been one of the three leading brands in the Indian diaper market in the early 2000, with the brand generating a turnover nearly 5 crores in 2001-02. According to Mr. A. Mahendran, MD, Godrej Consumer products, “Snuggy is a regional jewel, but diaper as a category is not going to be an area of focus for us. The brand is not dead, but is only being made available in the southern markets. Baby care is a non-core segment for the company”.
According to industry experts, Godrej by merging its Global Hygiene division with GPCL is looking forward to divest its stake in the brand and exit the diaper market and instead focus on three core categories i.e. household insecticides, personal wash and hair care. GCPL as experts say is looking at the premium segment so as to get better margins. Godrej is focusing on new premium product categories and is trying to constantly innovate in the categories which will bring the company higher margins.
