The industry can widen its product reach by upgrading consumers to washing machine-oriented detergents, attracting them through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents and entering adjacent markets such as the pre-wash and post-wash segments.

Vats adds that high level of market penetration will not deter growth as upgradation from lesser value to higher value products is taking place across the pyramid.

"Paradox is the paradigm in India and is true for the laundry category as well. The differences in consumption pattern in India are still very diverse and we are trying to cater to this demand by having a bigger portfolio," according to Vats.

Ranju Kumar Mohan, vice-president, marketing, laundry and home care, Henkel India [Get Quote], agrees, "The premium and mid-range price segments should see upgrades from the popular price segment users. The lower price point would play a key role. The bulk pack stock would be crucial in driving volume at the large format retail outlets."

The laundry care market is growing at a compounded annual growth rate (CAGR) of 10 per cent. The market share of HUL is 37 per cent, followed by Nirma at 13.2 per cent, Ghari 12.6 and P&G with 7.7.

According to research agency IMRB International, the category can be broadly classified into washing powder, liquid and detergent bars or soaps. Detergents, valued at Rs 4,500 crore (Rs 45 billion), constitute 51 per cent of the category and are growing at the rate of 4 per cent.

The penetration of detergents in India is 98 per cent and bars 79 per cent. Of this, 55 per cent of consumption is in urban areas and 45 per cent rural.

Vidya Murthy, brand manager, fabric and home care, Procter & Gamble (P&G), says, "The laundry-care market is still driven by detergents. The detergent bars market is big but has flattened with more and more consumers opting for convenience and better performance of powders versus the bars. Globally, we know that growth of fabric softeners is influenced by the increase in washing machines. With the explosion of the middle class, with higher disposable income, such niche categories are only going to get bigger."

Only 14 per cent of the urban population uses washing machines in India, but this share is increasing due to the rise in incomes.

HUL has reported double digit growth for its Surf Excel Automatic brand used in washing machines. P&G, another big player in the premium products range, has also introduced two variants of Ariel for washing machines, namely Front-O-Mat and Ultramatic. Mature markets around the world have upgraded to washing machine-oriented detergents.

Recently, HUL launched the fabric softener brand Comfort, a part of Unilever's global portfolio, in India. P&G is pushing its scented variants of Ariel such as Ariel 24 Hour Fresh into the market.