Monheim to build P300-million manufacturing plant in Phl

MANILA, Philippines - Monheim Group of Companies, makers of Vernel liquid detergent, has announced they will invest P300 million for a manufacturing plant in the Philippines.

Monheim was given the manufacturing and marketing license of German brand Henkel for its laundry and home care business in the Philippines.

Monheim and Henkel — which sells Vernel liquid detergent, Perwoll special detergent and Dutch cleanser, among others — signed the licensing contract yesterday. Monheim has been the distribution partner of Henkel in the Philippines for eight years.

“As we transition to the Monheim supervision, we will maintain the existing toll manufacturers but eventually Monheim will invest in a manufacturing plant. That is part of the investment package, and the plan is within the next three years,” Benjamin B. Ros, treasurer of the Monheim Group, said in a statement.

Ros said their target is to grow Henkel’s detergent and home care business in the Philippines by 15 percent annually.

“We need local expertise and we think we can grow much faster with Monheim than what we can without a partner. We can take advantage of so many synergies,” Thomas Jungmann, director for Global Business Development of Henkel’s Laundry & Home Care, said.

Jungmann said while Monheim will be taking charge of the production, Henkel will continue to be on top of the quality control, and will be injecting innovation, technology and high quality standards through its German team.

He said Henkel will be introducing new variants and innovations to its existing lines to help the brand in pursuing its target of growing faster than the industry average.

Currently, Vernel has a seven-percent market share here, while Perwoll dominates the special detergent segment. Vernel contributes about 70 percent of Henkel’s Philippine business, with Perwoll accounting for 20 percent.

The Philippine fabric softener market is estimated at P4.5 billion annually.

“We have developed over the past years a good relationship with Monheim. It has proved to be an excellent partner and capable to handle the business, and based on this expertise, we trust they will also be able to build the business for the future,” Jungmann said.