Godrej Global Middle East FZE, a regional subsidiary of the giant Indian toiletries, chemical, appliance and food conglomerate, has begun manufacturing soaps in the United Arab Emirates through a contractual tie-up with the Dubai-based Gulf Sector Soaps and Chemicals, which has a full-fledged unit for the production of a variety of soaps.
The new arrangement is a strategic one. Godrej, which plans to introduce new soaps, toiletries products and household insecticides, is targeting 60 percent growth in the region. By opening a local manufacturing unit, it is able to overcome heavy duties imposed by several of the Gulf Cooperation Council (GCC) states. In Saudi Arabia, for example, a 20 percent rate is charged.
Currently the production rate at the Dubai soap factory is 2,000 tons per annum, but Godrej reported up to 8,000 ton of available capacity at the plant. Godrej already holds a three percent market share in the Gulf region, with Cinthol Lime being its fastest selling product.
Sales of Godrej deodorants grew between 22 percent and 23 percent in 2000, although the heavy duties in Saudi Arabia cut into profits. — (MENA Report)
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