Run up to the Budget: Cosmetics and Toiletries Industry

State of the industry (2000-2001)

• In 2000-01, the rate of growth in the penetration of cosmetics and toiletries is expected to decline. In the large categories, such as talcum powder, hair oil, toilet soaps and toothpaste, the penetration level is near saturation. Consequently, growth, in terms of volumes, is likely to be affected in the case of a few large companies, especially companies with a significant presence in the toilet soaps category.
• In spite of a slow-down in sales growth, in volume terms, in the major product categories, players are expected to maintain or increase their sales growth, in value terms, either through an increase in prices or growth in smaller product categories, such as cosmetics and skin care.

Cosmetics and toiletries: Duty structure

(per cent)	Excise		Customs
	1999-2000	2000-01	1999-2000	2000-01
Personal care and household products
Perfumes	16	16	40	44
Beauty, make-up or skin care preparations	24	16	40	44
Hair oils	16	16	40	44
Pre-shave, shaving or after shave preparations	24	16	40	44
Personal deodorants and anti-perspirants	24	16	40	44
Shampoos	24	16	40	44
Toothpaste	8	16	40	44
Toothpowder	8	8	40	44
Tooth brushes	0	0	40	44
Shaving brushes, hair brushes, nail brushes, eye brushes, eyelash brushes and other toilet brushes (for use on the person)	0	0	40	44
Toilet soaps and detergents	16	16	40	44
Laundry soaps	8	16	40	44

Notes:

1) For 2000-01, the landed cost and customs duty include the SACD of 4 per cent, effective since 1999-2000. In 1999-2000, the SACD was applicable only for non-traders, and hence, has not been included in the customs duty.
2) The excise duty is applied on the maximum retail price, after reducing an abatement of 40 per cent.

Source: Central Excise and Customs Tariff

Rediff-CRISIL Budget Impact Analysis
Budget 2001

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