Reckitt Benckiser takes war with HUL to kitchens, enters dishwashing space with Dettol

NEW DELHI: Reckitt Benckiser is taking its battle over germ-protection with Hindustan Unilever to the kitchen by extending its Dettol brand to the dishwashing space dominated by the latter's Vim brand.

The UK firm, which has been taking on HUL's Lifebuoy in the hand-wash space for over three decades, is set to roll products for cleaning utensils and kitchen surfaces under the Dettol brand, company officials said.

"The product is a global innovation (and its launch is) led by a dedicated marketing team in India," CM Sethi, senior VP (South East Asia) at Reckitt Benckiser, told ET. India will become only the second country after South Korea where Dettol Kitchen gel is launched.

The product is positioned as a multi-purpose cleaner and germ killer. It can be used to clean and disinfect multiple kitchen surfaces apart from dishes and utensils, including sinks, kitchen slabs and cooking tops, a Reckitt Benckiser spokeswoman said.

This would pit the 80-year-old Dettol power brand directly against Vim, one of HUL's biggest brands that has been dominating the dishwashing space for close to 100 years.

Industry observers say it's a smart move that may help Reckitt Benckiser not only capture share from rivals riding on Dettol's equity but also to capitalise on a growing trend of kitchen products increasingly turning upmarket.

Shirish Pardeshi, co-head, research, at brokerage firm Anand Rathi Financial Services, says: "The liquid soaps category is incrementally outpacing growth of bars as consumers evolve.... With aggressive distribution, Dettol can capture share of a category that's evolving."

The liquid dishwash segment is valued at about Rs 300 crore, which is just 15 per cent of the Rs 2,000-crore overall dishwashing market that includes bars and powders.

However, with an annual growth rate of almost 40 per cent, the liquid segment is the fastest growing among dishwashing formats, riding on attributes such as urbanization and convenience.
Reckitt Benckiser's Sethi said he expected a 'significant' share of the Indian dishwashing market with Dettol Kitchen gel, which is in the process of being rolled out nationally across general and modern trade.

Sethi said the firm is currently focused on the liquid cleaner format, but did not rule out other variants.

"Further extensions will be based on consumer insights and evolving needs in this very high priority category for the housewife," he said. "We will launch products basis evolving consumer's needs."

Besides Vim, Dettol Kitchen gel will compete with Henkel-Jyothy's Pril and Exo. Reckitt Benckiser and HUL have been battling fiercely on the germ-protection platform for their respective brands Dettol and Lifebuoy, making and contesting advertising claims through Advertising Standards Council of India.

Dettol has roughly 53 per cent share of the liquid hand-wash category estimated at Rs 300 crore, while Lifebuoy's share is estimated at about 30 per cent. In the soap segment, however, Lifebuoy leads Dettol with about 14 per cent share against the latter's 8.2 per cent market share..