• briefing asia infrastructure aug 15, 2006 • briefing asia energy aug 15, 2006

mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company operates in four segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAN, Bluetooth, and other standards. Multimedia services include Internet services, optics, music synchronization, and streaming video. The Enterprise Solutions segment offers various products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software, and services for businesses and institutions. The Networks segment provides network infrastructure, and communications and networks service platforms, as well as professional services to operators and service providers. It focuses on the GSM family of radio technologies, such as EDGE and 3G/WCDMA networks; networks with Internet Protocol and multi access capabilities; and services. As of December 31, 2005, this segment had approximately 150 mobile network customers in 60 countries, serving 400 million subscribers with its systems. The company sells its products to operators, distributors, independent retailers, and corporate customers. It has a joint venture with China Putian to focus on research and development, as well as to manufacture and sell 3G network solutions for TD-SCDMA and WCDMA technologies. Nokia has as strategic relationship with ATI Technologies, Inc. to drive the complexity out of multimedia development by promoting open standards and providing integrated hardware, software, and tools. The company was founded in 1865 and is based in Espoo, Finland.
GTX Global Corp Ticker Symbol GTXC: Current Price (3.15) www.growthstockanalyst.com
As of January 26, 2006, GTX Global Corp. was acquired by Yadio, Inc. in a reverse merger transaction. GTX Global Corp. develops IP multimedia technologies that enable the delivery of video, voice, data, and multimedia capabilities. The company offers fully supported IP multimedia applications that are customizable in feature and form. GTX Global Corp. was formerly known as Gatelinx Global Corp and Autoleasecheck Com, Inc. GTX Global Corp. is based in Henderson, Nevada.
Xechem International, Inc Ticker Symbol XKEM: Current Price (0.0299) www.growthstockanalyst.com
Xechem International, Inc., a biopharmaceutical company, engages in the research, development, and production of generic and proprietary drugs from natural sources. Its principal product under development is NICOSAN/HEMOXIN, which would be used for the treatment of sickle cell disease. The company also applies its proprietary extraction, isolation, and purification technology to the production and manufacture of Paclitaxel, which is an anti-cancer compound used for the treatment of ovarian, breast, small cell lung cancers, and AIDS-related kaposi sarcomas. In addition, Xechem International engages in the research and development of other compounds using traditional medicinal plants, microbial fermentation, or semisynthesis to produce anti-cancer, anti-fungal, anti-viral, anti-inflammatory, anti-aging, and memory-enhancing compounds. It operates in the United States, India, the People's Republic of China, and Nigeria. The company was founded by Ramesh C. Pandey in 1994. Xechem International is headquartered in New Brunswick, New Jersey.
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Document MTPW000020060810e28a0060p
The International Top 30.
11,861 words

1 August 2006

Household & Personal Products Industry

HPPI

71

ISSN: 0090-8878; Volume 43; Issue 8

English

Copyright 2006 Gale Group Inc. All rights reserved.

The International Top 30
1. Unilever United Kingdom $21.8 billion

2. L'Oreal France $18.1 billion

3. Henkel Germany $8.3 billion

4. Reckitt Benckiser United Kingdom $7.0 billion

5. Kao Japan $6.9 billion

6. Shiseido Japan $5.9 billion

7. Beiersdorf Germany $5.0 billion

8. LVMH France $2.8 billion

9. Lion Japan $2.1 billion

10. GlaxoSmithKline United Kingdom $1.7 billion

11. Yves Rocher France $1.6 billion

12. Kose Japan $1.5 billion

13. Amore Pacific Korea $1.3 billion

14. Chanel France $1.2 billion

14. Clarins France $1.2 billion

14. Puig Spain $1.2 billion

17. LG Korea $948 million

18. Natura Brazil $942 million

19. Pola Tokyo $941 million

20. PZ Cussons United Kingdom $896 million

21. Body Shop United Kingdom $874 million

22. Oriflame Belgium $858 million

23. Pierre Fabre France $815 million

24. YSL Beaute The Netherlands $763 million

25. Colomer Spain $600 million

26. The Bolton Group The Netherlands $585 million

27. Sunstar Japan $575 million

28. Menard Japan $548 million

29. Mandom Japan $424 million

30. Noevir Japan $325 million

1. Unilever
United Kingdom
www.unilever.com
Sales: $21.8 billion
Sales: : $21.8 billion for home and personal care. Corporate sales: $49.4 billion. Net income: $4.9 billion.
Key Personnel: Patrick Cescau, group chief executive; Kees van der Graaf, president, Europe; Ralph Kugler, president, home and personal care; Rudy Markham, chief financial officer.
Major Products: Personal care--Axe/Lynx, Rexona/Sure and Degree deodorants; Dove, Caress, Lux and Lever 2000 soaps; Pond's and Vaseline skin care products; Organics, Salon Selectives, SunSilk, Suave and ThermaSilk hair care products; Close-Up and Signal oral care products. Household--Ala, All, Omo and Wisk laundry detergents; Comfort and Snuggle fabric softeners; Domestos, Cif, DiverseyLever.
New Products: Personal Care--Dove Cool Moisture, Rexona Teens; Home Care--All Small & Mighty, All Cleans & Softens.
Comments: Unilever continues to streamline operations. At the close of 2005, nearly 80% of its turnover was managed through "One Unilever" organizations. By the end of this year, the company expects to deliver $871 million in savings and as much as $1.2 billion in 2007. The reorganization has already helped sales growth, as corporate sales were up 3% in 2005 after being flat in 2004.
Within the home and personal care group, sales rose and the company credited the Dove "Campaign for Real Beauty" as a big reason for the sales gain.
At the regional level, sales in developing and emerging markets continues to grow. The company notes that these countries will account for 90% of the world's population by 2010. For the first time, sales in developing and emerging markets exceeded sales in Western Europe. But as important as D&E markets may be, Unilever hasn't lost focus on Europe and North America.
In 2005, Unilever managed to grow its U.S. business 3.2% behind gains in home and personal care sales. As one might expect, gains in deodorant and personal wash sales helped in a big way as Axe posted double-digit growth, and consumer demand for Dove and Rexona remained strong.
But much work remains to be done in Europe as weakness in the UK led to a decline in home and personal care sales. Still there were a few successes, as the introduction of a new gel-layered detergent tablet helped make Skip the fastest-growing HPC brand in France.
In Asia and Africa, sales were up 6.9%, driven by the launch of new Lux and Pond's products. During the year, the company launched Dove in Indonesia, a Sunsilk summer range in southeast Asia and a new variant for Lux Super Rich in China. The home care unit was busy too, with a new version of Surf in Indonesia and Omo for sensitive skin in Turkey. In South Africa, Unilever relaunched Vaseline with new formulas and packaging and rolled out the country's first mass market male lotion: Vaseline for Men.
Although Unilever management is determined to cut costs, one thing remains the same--Unilever will maintain its dual corporate headquarters arrangement.
For the first quarter of 2006, corporate sales rose 8.6% to $11.8 billion, helped along by a 6.3% favorable gain in currency. At the close of the first quarter, Patrick Cescau, group chief executive, noted that the company is on track to sustain top line growth and improve margins. Although demand in Europe remains sluggish, there were signs of improvement. Meanwhile demand in developing and emerging markets remained robust.
Axe Continues to Cut Down the Competition
UNILEVER'S AXE has been one of the fastest growing brands in the AP/deo market, posting tremendous sales growth since it made its debut in the U.S. market in 2002. According to IRI, its sales in supermarkets, drugstores and mass outlets, excluding Wal-Mart, have risen from just under $27 million in 2004 to nearly $60 million in the 52 weeks ending this April 16.
What has fueled the Axe brand's swift rise in the marketplace? An expensive launch and savvy integrated deodorant marketing focused on male-female relationships rather than traditional sports marketing. Among Unilever's recent endeavors was work with MTV's The Gamekillers, a reality-based television special during which characters from the show helped launch Axe Dry antiperspirant stick's new advertising campaign. Now Axe has a tie in with myspace.com and Christine Dolce. Known as Forbidden, Dolce--who reportedly claims 850,000 "friends" and 30 million page views, not to mention photos scheduled for a future issue of Playboy--is listed as the official myspace group moderator and spokesmodel for Axe Dry Gamekillers.
Unilever spent considerable cash--approximately $100 million--to bring the Axe brand to the U.S. market, which has added new dollars to the company's coffers.
"They aren't making a lot of money on it, but it's growing well. They are building good brand equity," said Jason M. Gere, associate vice president, securities research-household products for A.G. Edwards & Son in New York City. Mr. Gere, who contends that despite Axe's success, efforts to revive Old Spice may have been a better deal for P&G's bottom line.
Sunsilk includes eight customized collections--shampoos, conditioners and 24/7 Cremes--specially formulated to resolve common and bothersome hair problems. Two of the eight collections are specially designed for Hispanic hair.
2. L'Oreal
France
www.loreal.com
Sales: $18.1 billion
Sales: $18.1 billion. Net income: $2.4 billion.
Key Personnel: Lindsay Owen-Jones, chairman; Jean-Pierre Meyers, vice chairman; Jean-Paul Agon, chief executive officer; Beatrice Dautresme, executive vice president, corporate communications and external affairs; Christian Mulliez, executive vice president, administration and finance; Marcel Lafforgue, executive vice president, production and technology; Geoff Skingsley, executive vice president, human resources; Jean-Francois Grollier, executive vice president, research and development; Alain Evrard, managing director, Africa; Marc Menesquen, managing director; luxury products division; Patrick Rabain, president, consumer products; Jean-Jacques Lebel, president, professional products; Laurent Attal, president and chief executive officer, L'Oreal USA.
Major Products: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances marketed under such brand names as Artec, Biotherm, Cacheral, Carson, Helena Rubinstein, Lancome, Lanvin, La Roche-Posay, L'Oreal,
His Eyes are on the Prize
Jean-Paul Agon recently succeeded Lindsay-Owen Jones as chief executive officer of the largest beauty company in the world. Just last month, the French government announced it would honor Mr. Agon with the Legion of Honor award of merit.
Sunsilk Debuts in the U.S.
SUNSILK, one of the world's biggest hair care brands, debuted in North America in June after generating global sales of more than $1.2 billion a year. In fact, Sunsilk is the No. 1 brand in Asia, Latin America and the Middle East.
"We view North America as a big opportunity to continue the Sunsilk success story," said Esther Lem, vice president, North American hair care, Unilever. "Our learnings from around the globe, coupled with our deep insight into women in the U.S., allow us to offer unique solutions to address the hair problems of American women. Sunsilk is a fresh, new way to deal with hair."
L'Oreal Paris, L'Oreal Professionnel, L'Oreal Perfection, L'Oreal Kids, Kerastase, Redken, Inne, Laboratoires Garnier, Giorgio Armani, Harley Davidson, Matrix, Maybelline, Jade, Gemey Paris, Jean-Louis David, Dop, Cadonet, Jacques Dessange, Ralph Lauren, Redken, Soft Sheen.Carson and Vichy.
New Products: The Body Shop (acquisition). Professional-VolumeActive, Majirel colorants, ColorSmart. Consumer-RevitaLift Double Lifting skin care, Elseve Nutri-Gloss hair care and Volume Shocking mascara. Active Cosmetics-Aminexil SP94 hair loss treatment.
Comments: Corporate sales rose 6.5% last year and net income surged 37%.
But the big news out of France during the past 12 months wasn't about sales results. No, the big news has been the $1.17 billion acquisition of The Body Shop and the retirement of long-time CEO Lindsay Owen-Jones.
Of course, sales do matter and once again, L'Oreal didn't disappoint in 2005. By region, sales in western Europe rose a scant 0.1% to nearly $8.5 billion. But company executives were pleased with the way sales rose late in the year, as consumers went for "high value-added" products such as RevitaLift Double Lifting skin care and Elseve Nutri-Gloss hair care.
North America gained 6.4% to $5.0 billion buoyed by strong growth within the Garnier unit, particularly the Fructis line. Makeup sales were up due to several successful new product launches, and Redken provided a lift in the professional hair color category.
Sales in the rest of the world rose 12.6% to $4.5 billion. The gains were attributed to China and Indonesia, but the company noted that a distribution problem hurt results in South Korea.
Helped along by an 8.5% gain in the fourth quarter, sales in the professional products division rose 6.1% to $2.5 billion. The company credited the successful launch of the Kerastase Reflection range.
Consumer product division sales rose 4.6% to $9.3 billion. Strong results within the Garnier franchise were due to the UltraLift skin care range and Nutrisse hair colorants. L'Oreal Paris and Maybelline both recorded good gains too.
Within the luxury products segment, sales rose 2.7% to $4.4 billion. LancSme's sales were up, thanks to the success of Platineum skin care and L'Extreme mascara. Within the fragrance sector, Armani Code provided a lift.
The demand for effective skin care products helped sales of active cosmetics jump 13.5% to $1.2 billion. Consumers picked up products such as LiftActiv Pro anti-wrinkle firmness skin care and Redermic, a new anti-aging product from LaRoche-Posay.
"In 2005, L'Oreal's growth once again clearly outperformed the world market, thanks to the powerful appeal of its brands and the success of its new high-value-added products," said Sir Owen Jones. "Growth was driven by good performance in North America and new breakthroughs in emerging markets, while the rates of increase were more modest in Western Europe. Growth in sales combined with strict cost control has enabled us once again to improve profitability and achieve double-digit earnings growth. We are confident about the outlook for 2006 in view of the faster growth in Western Europe at the end of last year and the strong international momentum."
Sir Owen-Jones proved prophetic as a big rebound in Western Europe helped first-half sales reach nearly $9.6 billion.
"The increase of our sales up to the end of June is very encouraging and confirms the clear upturn in the group's growth, particularly in western Europe," said Jean-Paul Agnon, who succeeded Mr. Owen-Jones as CEO. "Furthermore, high growth rates have been recorded in the new markets, such as Latin America and eastern Europe. The major launch programs and promotional activities scheduled for the second half-year should enable us to maintain this momentum. All these factors mean that we are very confident about the outlook for the 2006 results."
L'Oreal Paris Sets Up Shop in Israel
L'OREAL, PARIS is opening its first flagship store in Israel. The company plans to open 10 stores within three years. The first store will be opened under the store-in-store concept at New Hamashbir Lazarchan Ltd. in the Kiryon Mall in Kiryat Bialik. The idea is to create an international self-service cosmetic shopping experience.
L'Oreal executives call the store "a breakthrough in the cosmetics industry in Israel and the world, by creating a different, original and international shopping experience."
3. Henkel
Germany
www.henkel.com
$8.3 bilion
Sales: $8.3 billion for laundry and home care products and cosmetics and toiletries. Corporate sales: $14.9 billion. Net income: $959 million.
Key Personnel: Prof. Dr. Ulrich Lehner, chairman of the management board; Dr. Lothar Steinebach, executive vice president, finance; Kasper Rorsted, executive vice president, human resources, purchasing, information technologies, infrastructure services; Dr. Friedrich Stara, executive vice president, laundry & home care; Hans Van Bylen, executive vice president, cosmetics/toiletries.
Major Products: Laundry and home care--Persil, Weisser Reise, Henko, Dixan, Spee and Fakt heavy duty detergents; Vernel, Perwoll and Few fabric softeners; Sil, Saptil, Wipp and Cid special detergents; Spee laundry and cleaning products; Pril and Pril balsam hand dishwashing liquids; Somat automatic dishwashing detergent; Dor cleansers; Ata scouring powders; Sofix, Sapur, Maga Sidlin and Bidd household cleaning detergents. Cosmetics and toiletries-Kaloderma and Bac toiletries; Fa deodorants, foam bath, shower gel, body lotion and soap; Action, City Man and Poly hair care; Schwarzkopf cosmetics, body care and hair care; Schauma, Drei Wetter Taf and Gliss hair care, Dep, L.A. Looks and ARL hair care, Dial personal cleansers.
New Products: Bref multi-degreaser, Persil Freshness by Silan, Pril Power Spray, Sil Oxi Perfect 2, WC Frisch Fresh Surfer, BC Bonacure hairtherapy, Diadermine Wrinkle Expert 3D, Fa Yogurt, got2b, Poly Color Retoucher, Taft Lycra Flex, Theramed Perfect Whitening Pen. Acquisitions--Right Guard, Soft & Dri and Dry Idea antiperspirants and deodorants.
Comments: At Henkel, the focus remains on North America and the emerging markets of Eastern Europe, Africa and the Middle East, Asia-Pacific and Latin America. Last year, sales attributable to North America reached 23%, due in part to the acqusition of Dial and ARL. Now, with several P&G AP/deo brands in its lineup (see box, p. 80), North American sales should account for an even larger portion of Henkel's sales.
Corporate sales jumped 13% last year. Laundry and home care sales increased 13% to nearly $5.1 billion, while cosmetics and toiletries sales rose more than 6% to $3.2 billion.
By region, sales in Europe, Africa and the Middle East increased 5.7% to $9.3 billion, with Germany providing a lift to sales. In North America, sales surged nearly 37% to $3.4 billion, due to the previously-noted acquisitions. Sales in Latin America were up more than 21% to $711 million and sales in Asia-Pacific rose more than 20% to $1.1 billion. The South Korean insecticide business acquired from Clorox provided a big boost.
According to Henkel's estimates, the global laundry and home care market rose 2% in 2005, after declining a bit in 2004. The company certainly participated in the rebound, with sales increasing 13%. Acquisitions accounted for 9.2% of the gain, organic growth added 3% and foreign exchange less than 1%. The markets in Eastern Europe, particularly Russia, provided a lift, as consumers moved to more complex formulas.
Sales of cosmetics and toiletries rose 6.2% to $3.2 billion. Acquisitions accounted for 4.1% of the gain; organic growth, 1.3% and foreign exchange, 0.8%. The increase is well-ahead of the 2% gain posted by the global cosmetics and toiletries market, according to Henkel. Demand was robust in eastern Europe, Asia and Latin America. The company's colorant portfolio was strengthened through the introduction of Poly Color Revital Farbcreme, which is especially formulated for older hair. In the body care segment, Fa was relaunched in Europe and Dial shower gels were expanded in North America. Skin care sales were up due to the popularity of Diadermine. Oral care sales also rose on the strength of Theramed sales in Germany.
For the first quarter of 2006, corporate sales rose 11.4% to $3.6 billion. Sales of laundry and home care products rose 5.4% to $1.2 billion. Cosmetics and toiletries sales were up even more, gaining 8.1% to $772 million.
"We have made a successful start to the new fiscal year. We are particularly pleased with our strong organic sales growth, to which all our business sectors have contributed," said Ulrich Lehner, chairman of the management board of Henkel KGaA. "The launch of numerous innovative products supported by targeted advertising measures has been successful. In regional terms, the growth drivers were once again Eastern Europe, Latin America and Asia-Pacific."
R&D expenditures rose to nearly $390 million, to a share of 2.7% of sales. In its annual report, Henkel management noted that the company is working on achieving superior bleaching and cleaning performance,