Nobel Hygiene pioneer of adult diaper may cause inconvenience to baby diaper market players such as P&G, Unicharm, Kimberly-Clark etc. - Bonafide Research


Having entered in baby diaper market in July 2018, Nobel Hygiene which is market leader in adult diaper with its brand 'Friends' will soon gain attention of consumers. All these will create trouble for existing players operating in baby diaper market.

The need for diapers was present since the ancient times. However, earlier when the baby diapers were not available, Indian parents used cloth or other materials for infants. With development in technology and design, the present day diapers came into existence. A baby diaper is also one of the most technologically complex products in its price range. Awareness is increasing through the media campaigns about the different diaper brands and the benefits of using disposable diapers over cloth versions. Even in smaller towns and cities, parents are now willing to spend money on disposable diapers when the baby is taken out of the home, for added convenience.

Bonafide Research has stated in its research report on ' India Diaper Market Outlook, 2023' the diaper market is growing with more than 20% CAGR from the last seven years. The healthy growth rate is driven by factors such as millions of babies born per year, higher disposable income among common people and the increased hygiene awareness of Indian mothers. The Indian diaper market has long been characterized by large fluctuations in the market share within short periods. Previously, the main players in the industry were Proctor & Gamble with its brand Pampers and Kimberly-Clark with its brand Huggies. However, Unicharm’s Mamy Poko Pants, one of the late entrants into the market has gradually developed into a major player now. The company has already over taken Kimberly-Clark before some years.

In 2003, GCPL had acquired the Snuggy brand from Shogun Diapers with intentions of entering the baby care segment. Snuggy, then, was one of the three leading players in the Indian baby diaper market, and had posted a turnover of Rs 5 crore in 2001-02. Subsequently in 2007, the brand was vested with the joint venture company Godrej SCA Hygiene. After the JV broke up with Sweden’s SCA Hygiene, Godrej had shifted the brand to a shell company 'Godrej Hygiene'. In 2013, Godrej Hygiene was merged with Godrej Consumer Products.

Finally in July 2018, it has sold its diaper brand Snuggy to Nobel Hygiene. Having ability to deliver a consistent, high-quality product for over seven years of manufacturing, Nobel Hygiene aims to leverage the same expertise for Snuggy. Nobel Hygiene is among the first players in adult diapers in India and the market leader in this segment. It also is planning to expand its capacity by setting up a new manufacturing facility in North India to cater to the growing demand for adult and baby diapers in the country. The company would invest ?25 crore in the new manufacturing unit. It already operates a factory in Nashik in Maharashtra where it has put up six manufacturing lines with fully-automated machines. The unit manufactures adult and baby diapers, underpads and baby diaper pants.

Private equity investors CLSA and Access Investment have invested in the company. The company is targeting to manufacture 20 lakh pieces of diapers per day by 2019 as compared to 10 to 12 lakh pieces in 2017. The company exports to Middle East, Africa, Central Europe and USA. Thus it would have great future with own brand 'Friends', 'Teddy' and acquired brand 'Snuggy'.

Nobel-Hygiene-pioneer-of-adult-diaper-may-cause-inconvenience-to-baby-diaper-market-players-such-as-P&G-Unicharm-KimberlyClark-etc.--Bonafide-Research

Having entered in baby diaper market in July 2018, Nobel Hygiene which is market leader in adult diaper with its brand 'Friends' will soon gain attention of consumers. All these will create trouble for existing players operating in baby diaper market. The need for diapers was present since the ancient times. However, earlier when the baby diapers were not available, Indian parents used cloth or other materials for infants. With development in technology and design, the present day diapers came into existence. A baby diaper is also one of the most technologically complex products in its price range. Awareness is increasing through the media campaigns about the different diaper brands and the benefits of using disposable diapers over cloth versions. Even in smaller towns and cities, parents are now willing to spend money on disposable diapers when the baby is taken out of the home, for added convenience. Bonafide Research has stated in its research report on ' India Diaper Market Outlook, 2023' the diaper market is growing with more than 20% CAGR from the last seven years. The healthy growth rate is driven by factors such as millions of babies born per year, higher disposable income among common people and the increased hygiene awareness of Indian mothers. The Indian diaper market has long been characterized by large fluctuations in the market share within short periods. Previously, the main players in the industry were Proctor & Gamble with its brand Pampers and Kimberly-Clark with its brand Huggies. However, Unicharm’s Mamy Poko Pants, one of the late entrants into the market has gradually developed into a major player now. The company has already over taken Kimberly-Clark before some years. In 2003, GCPL had acquired the Snuggy brand from Shogun Diapers with intentions of entering the baby care segment. Snuggy, then, was one of the three leading players in the Indian baby diaper market, and had posted a turnover of Rs 5 crore in 2001-02. Subsequently in 2007, the brand was vested with the joint venture company Godrej SCA Hygiene. After the JV broke up with Sweden’s SCA Hygiene, Godrej had shifted the brand to a shell company 'Godrej Hygiene'. In 2013, Godrej Hygiene was merged with Godrej Consumer Products. Finally in July 2018, it has sold its diaper brand Snuggy to Nobel Hygiene. Having ability to deliver a consistent, high-quality product for over seven years of manufacturing, Nobel Hygiene aims to leverage the same expertise for Snuggy. Nobel Hygiene is among the first players in adult diapers in India and the market leader in this segment. It also is planning to expand its capacity by setting up a new manufacturing facility in North India to cater to the growing demand for adult and baby diapers in the country. The company would invest ?25 crore in the new manufacturing unit. It already operates a factory in Nashik in Maharashtra where it has put up six manufacturing lines with fully-automated machines. The unit manufactures adult and baby diapers, underpads and baby diaper pants. Private equity investors CLSA and Access Investment have invested in the company. The company is targeting to manufacture 20 lakh pieces of diapers per day by 2019 as compared to 10 to 12 lakh pieces in 2017. The company exports to Middle East, Africa, Central Europe and USA. Thus it would have great future with own brand 'Friends', 'Teddy' and acquired brand 'Snuggy'.



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