Blue Power to expand soap line
BLUE Power Group plans to add three new soaps to its product line by next April.
The new soaps will fall under the Castile line. They will include new fragrances and packaging will be upgraded, according to Blue Power CEO Dhiru Tanna.
The local manufacturer currently manufactures 10 different bars of Castile soap.
The company also makes soap for AriLabs, GraceKennedy and Lasco.
AriLabs’ most recent product, ariSulfur, is gaining increasing market share in the pharmaceutical market, according to Blue Power financials.
Tanna reckons that AriLabs’ addition of salicylic acid and baby soaps to their product line will increase profit margins for Blue Power.
“The soaps are higher margin, higher price products,” said Tanna. “We want to continue being manufacturer for them.”
The local manufacturer’s bottom line for the three months to July 31 was slightly lower than the comparative period in 2013. It earned $29 million net profit during the quarter compared to $30 million in the same quarter last year.
The company blamed Lumber Depot for the poorer performance. The hardware’s $6-million contribution towards profit during the quarter under review was $18 million lower than year-earlier levels.
This reflected a discontinuation of contracts to supply Government with materials on behalf of organisations located overseas, according to Tanna.
Nevertheless, sales for the lumber division saw an increase of five per cent, moving from $174 million to $185 million. The soap division saw a higher jump in revenue. Sales for the Blue Power division rose 33 per cent from year-earlier levels to total $93 million for the quarter.
Consequently, the soap division’s earnings increased from $12 million to $23 million over the comparative periods.