Blue Power aims to boost sales with new fragranced soaps
BLUE Power Group has pumped US$30,000 ($3.45 million) into a new wrapping machine to start production of three new soaps by the end of April.
The new soaps, which will fall under the Castile line of products, will be fragranced in passion, mango, and aloe fresh, according to the company’s chief executive Dhiru Tanna.
“The new machine has just arrived, and now the wrappers are being printed for the soaps to be distributed by the end of the financial year,” Tanna told the Jamaica Observer.
“The fragrances we are working on now are passion, mango and aloe fresh. But by the time we get to the final production, depending on how they gel with the tests, we might change the fragrances a bit,” he added.
The local manufacturer currently manufactures 10 different bars of Castile soap and also makes soap for AriLabs, GraceKennedy and Lasco.
And with the installation of a solar power system, Blue Power should also see energy savings of up to $600,000 over the next few months.
The company posted a marginal increase in sales from $259 million to $264 million for the period under review, with the Lumber Depot division posting a small increase while the Blue Power division experienced a small decline.
Profits for Blue Power’s soap division showed an improvement for the third quarter of 2014. Profits for the quarter stood at $9 million, up from $7 million for the comparative period in 2013.
But over at the lumber division it was a different story, as Blue Power’s profits for the third quarter halved to $4 million compared to $8 million a year earlier.
“One contributor to the adverse comparison of profits with last year on a year-to-date basis is the increase in our expenses relating to advertising, administration and wages and salaries,” Tanna said in the company’s statement to its shareholders.
“We anticipate that the significant increase in advertising and promotion expenses will in due course be recouped by higher sales and higher overall gross profits.”
He stated that the company will be launching its web page by the end of March which will allow customers to order their goods online and come in for delivery. With the help of a qualified consultant, the Blue Power division is evaluating its sales strategy, and hopes to enhance product distribution and awareness.
“We understand that a lot of persons don’t like to wait, so we are in the process of putting up our web page and we have also improved our customer service experience. We also have a big advertising programme to start and that is why some of our expenses have gone up,” he told the Business Observer.
The CEO added that he is grateful that the company continues to produce positive results despite an economy in which purchasing power is being eroded by the need to meet overall targets set in conjunction with the International Monetary Fund (IMF).
“We are poised to meet increased demand from local and foreign sources,” Tanna said.