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Hipolin was incorporated on 31 Mar.'94. It was promoted by Bhupendra Shah, Jaykumar

Shah and Daxesh Shah. The promoters also have interests in Hipolin Management and
Consultancy, Hipolin Investment, Jay Detergents, etc. Hipolin is managed by
Bhupendra Shah, Chairman and Managing Director. The company came out with a
public issue of 7.75 lac equity shares at a premium of Rs 40 aggregating Rs 3.87 cr in
May '95, to augment long-term working capital requirements and to strengthen the
capital base of the company. The company manufactures detergents, tooth pastes and
shaving creams. It exports its products to Russia and export earnings in 1994-95 were
Rs 62.98 lac. In 1994-95, Hipolin Products and Hipolin Surfactants were amalgamated
with the company. Also, Hipolin took over the business of Ramit Traders and Fresh
Laboratories. During the year 1995-96, the company has started generation of
electricitthrough wind farm technology.

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Hipolin Ltd, a Ahmedabad-based detergent company and once upon a household name is
planning a comeback by revamping its production facility and increasing its market presence in
areas where Hipolin used to be a household name.

Talking to Business Standard, Bhupendra Shah, managing director of Hipolin, said, ³The company
did not witness any growth for long but now we intend to achieve growth by increasing our
production capacity, re-entering into the markets where we have brand recognition and
undertaking aggressive marketing´.

The company plans to target its customer base amongst the lower income group to gain through
the economics of large scale production and sales.

Hipolin was started in the year 1970 with manufacturing of detergent powder on a small scale for
the domestic market and by the year 1994, it turned into a public limited company.

Presently, the company has total production capacity of 14,000 tones per year for its three major
products - detergent powder, detergent cake and dish wash bar.

For a long period the company was out of the lime light and did not advertise its products. But now
the company had jumped on the bandwagon of advertisement starting with television
advertisement on ETV Gujarati and in local dailies in Gujarat.

³We plan to further increase our visibility through advertisements´, adds Shah. Along with the
increases visibility of the brand ³Hipolin´, the company also plans to scale up its production
capacity at its facility at Sanand in Gujarat by adding another 4000 tones per annum.

Thereby, the total production would scale up to 18,000 tons per annum for the mix of its three
products in this financial year.

³We need to support the enhanced brand visibility with increased production capacity, so that the
customers get the product in the market as and when they want´, adds Shah.

It is also making its re-entry into the Uttar Pradesh, Bihar and West Bengal. The company has a
very strong brand name in UP, Bihar and West Bengal but due to the high transportation cost the
company was not able to capatilise on this markets.

Supplying finished products from Gujarat to faraway markets like UP, Bihar and WB led to high
transportation cost that added Rs 3 on per one kilogram of detergent or any other products
thereby increasing its overall retail price of the products.

³We have sort out this issue by giving job work to one of the manufacturer in Kolkata who would
be producing our product´, adds Shah. With production done in Kolkata, the company can easily
bring down its cost of production on per unit and would supply it products to UP, Bihar and West
Bengal.

The manufacturer in Kolkata would be producing 4,000 tons per annum of mix of three products -
detergent powder, cakes and washing bar for Hipolin.

³We have very strong brand recognition in these three geographical areas and with the re-entry
we are confident to gain in terms increase in sales´, adds Shah.

The company claims that it 80 percent sales generates from Gujarat and 20 percent from other
states. It has its presence in Maharastra , Rajasthan and Madhya Pradesh.

Uptill now the company was managed by the Shah family which holds 70 percent stake in Hipolin,
but with the increased competition, the company has planned to change its management system
by bringing in professional management team.

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³We will shortly recruit some senior level professionals so that the company can be managed
more efficiently now´, adds Shah.

Hipolin has appointed a management consultant firm to undertake a study for the company¶s
present situation and suggest ways for improvements.

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The Indian laundry market was now around Rs 50 billion (US$1.1 billion), making it the world's third largest market. While detergent
bars comprised 43 per cent of the total market, the powders constituted the balance 57 per cent

There are more than 10 brands available in the Indian market, but we have chosen 6 major
brands.The Indian laundry market is Rs 5000 crore, with HUL enjoying highest 38% of share,
followedby others like P&G, Nirma, Ghari etc. Detergent bar comprises of 43% of market share
andpowder enjoying the rest 57%

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The following project has been given to us in order to make us understand the real environment
of the market in which research is conducted. Marketing research, being a very important field
of study in management can only be learned through practically working in the markets. The
subject of our study being an FMCG product made us go and interact with the households and

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know their buying behaviour, preferences and expectations from the detergents they use. In our
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For a long period the company was out of the lime light and did not advertise its products. But now the company had
jumped on the bandwagon of advertisement starting with television advertisement on ETV Gujarati and in local dailies
in Gujarat.

³We plan to further increase our visibility through advertisements´, adds Shah. Along with the increases visibility of
the brand ³Hipolin´, the company also plans to scale up its production capacity at its facility at Sanand in Gujarat by
adding another 4000 tones per annum.

Thereby, the total production would scale up to 18,000 tons per annum for the mix of its three products in this
financial year.

³We need to support the enhanced brand visibility with increased production capacity, so that the customers get the
product in the market as and when they want´, adds Shah.

It is also making its re-entry into the Uttar Pradesh, Bihar and West Bengal. The company has a very strong brand
name in UP, Bihar and West Bengal but due to the high transportation cost the company was not able to capatilise on
this markets.

Supplying finished products from Gujarat to faraway markets like UP, Bihar and WB led to high transportation cost
that added Rs 3 on per one kilogram of detergent or any other products thereby increasing its overall retail price of

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the products.

³We have very strong brand recognition in these three geographical areas and with the re-entry we are confident to
gain in terms increase in sales´, adds Shah.

The company claims that it 80 percent sales generates from Gujarat and 20 percent from other states. It has its
presence in Maharastra , Rajasthan and Madhya Pradesh.

Uptill now the company was managed by the Shah family which holds 70 percent stake in Hipolin, but with the
increased competition, the company has planned to change its management system by bringing in professional
management team.

³We will shortly recruit some senior level professionals so that the company can be managed more efficiently now´,
adds Shah.

Hipolin has appointed a management consultant firm to undertake a study for the company¶s present situation and
suggest ways for improvements.

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