Published On:August 26 2014
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Swedish firm SCA to tap e-commerce channel for distribution.
Swedish hygiene products maker SCA plans to tap the e-commerce channel in the Indian market to distribute its product.
Cecilia Adebo, Managing Director, India told Business Line that the company has tied up with leading e-commerce portals in the country such as Flipkart, Firstcry, Snapdeal among few others to reach out to the Indian consumers in the tier 2 and 3 markets.
Adebo said that the company, which started its operations in the Indian market last year, is already getting about 10 per cent of its sales from the online channel and expects the same to grow 20-30 per cent in next 5 years on back of growing smartphone users and rising online market. At present the online retail is about $3.2 billion and is expected to reach $9 billion by 2016, according to industry reports.
That apart, the company has also launched a mobile app that will not only educate consumers about instilling hygiene practices among consumers, especially children, but also allows them to buy products online.
The company makes products like baby diapers, adult diapers (incontinence), tissue and toilet papers and hand sanitizers.
Besides, the company is looking tapping the quick service restaurants such as McDonald's, Pizza Hut and many local food chains to promote their tissue paper and sanitzer brand Tempo.
Stockholm-headquartered company, which is a leading player in Europe with brands such as Libero, Tempo, Tork and Libresse, aims to garner number one position in the Indian market in the hand sanitizer and baby diaper segment over the next few years.
To achieve this, the company has already invested Rs. 150 crore to set up a manufacturing unit at Ranjangaon, near Pune. The production will start early next year for tissues and diapers including those for adults. It has about 115 employees in India at present.