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This Article is From Apr 26, 2012

Nivea to raise contract manufacturing in India

Nivea to raise contract manufacturing in India
Analjit Singh, Non-executive Chairman, Vodafone India

German skincare major Nivea plans to increase its contract manufacturing to meet rising demand for its products in India, a top company official said Wednesday.

"We have third-party manufacturers exclusively for us for soaps and talcum powder. We are also evaluating other portfolio to be manufactured locally. We are looking at deodorants and emulsions... we are looking at the whole gamut. "We are close to finalising something and that should happen sometime this year," Nivea India Managing Director Rakshit Hargave told PTI.

The company has a tie-up with FMCG firm VVF, the maker of soaps like Jo and Doy Care, to manufacture soap exclusively for it.

When asked about tapping the small towns, he said: "At the moment we are focusing on routine consumer packs for the average urban customer.

But we will be introducing smaller packs of Nivea Creme and Nivea Softs which move fairly fast in smaller markets. We plan to launch them in a bigger way this winter."

The company yesterday launched its sunscreen Nivea Sun that is priced from Rs 199 to Rs 399. The product will be initially available in eight major cities and will be rolled out in 35 cities in the next six months.

"We will also come out with newer variants and products. Right now the sunscreen is for all. In future, we will come up with products dedicated to special skin types," Hargave said.

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