Chennai: Price cuts for detergents are no longer news. Launching a new detergent brand at a higher price point is news.

At a time when the detergent powder sector is witnessing price wars and a merger between the compact and premium segments, fast moving consumer goods (FMCG) marketing start up India Household & Healthcare Limited, is resuscitating the compact segment.

The sole Indian licencee of the Korean company LG Household & Healthcare Limited, is launching Super Enz a super premium detergent powder priced at a hefty Rs99 for a half kg pack and Rs150 for one kg - a marked departure from the Korean strategy of introducing predatory pricing strategy in consumer goods from automobiles to home electronics.

Interestingly, competing multi-national brands like Ariel from Procter & Gamble Home Products Limited, Henko Stain Champion from Henkel Spic India Limited and Surf from Hindustan Lever Limited are now priced substantially lower. Only last week, Henkel Spic slashed the price of its premium brand to Rs.75 per kg from Rs 90.

Similarly the 130gm Korean toothpaste Cliden is priced at Rs47 while competition offers 200g toothpaste at Rs.45.

''Our products are priced slightly higher than the competition only to signify their premium quality,'' says Vijay R Singh, managing director, India Household & Healthcare Limited. According to him the company will soon launch a slightly cheaper brand.

India Household, which has an investment of Rs.12 crore, has been jointly promoted by Singh and company chairman K Jayaram. Jayaram was earlier an importer of LG Household's products.

Apart from detergents and toothpastes India Household will also import and market toilet soaps (with total fatty matter 72 per cent), shampoo, cleaners, hair care products and diapers. The company will be next only to Hindustan Lever Limited in having a presence in at least seven key FMCG product categories.

''The range will feature 200 product packs in various sizes and variants,'' adds Singh. Though the products will be imported from the Korean plant, he says that the LG Household has taken into account the broad characteristics of the Indian water and has reformulated the products.

''Abroad whether in toothpaste or in detergents, consumers frown upon excessive foaming. On the other hand, Indian consumers want their toothpastes and detergents to froth a lot,'' explains Singh. A unique product from the Korean company is its oral hygiene product, Bamboo Salt toothpaste. The bamboo salt is said to have anti caries and anti gingivitis properties and is made by stuffing bay salt inside a bamboo and baking it nine times.

Having tied up 500 distributors in metros, mini metros, cities and towns India Household is all set to go full throttle with its Rs30-crore media campaign and fill up around four lakh retailers' shelves. The company has planned its marketing activity in three phases, starting with the metros and mini metros.

The company has put together an aggressive package of trade schemes and promos for its channel partners to drive growth. Special emphasis is also being placed on retailers as they form the customer contact point. Singh is targeting a turnover of Rs150 crore during the first year.

Adds Choong Ho Kim, vice president, LG Household, ''Our aim is to be one of the top three players in the Indian FMCG market by 2006.''

The Korean company will decide on setting up a production facility in India based on the market reception for its products. According to B K Jung, general manager, LG Household, the company is setting up plants in China and Vietnam. ''We will have to study the Indian market for at least two years before committing any investment.''

One of the 42 companies in the LG fold, LG Household was incorporated long before the popular electronics company. The Korean FMCG company has over 200 products in over 20 categories.