Quality, expertise and R&D drive Raani Corp.'s growth in personal care items.

From hair gel to sunscreen, Raani Corp. has evolved a wide spectrum of capabilities and expertise since principal owner and President Rashid Chaudary founded the company in a garage in 1983.

Chaudary started the contract packaging and private label manufacturing company after working in the industry approximately 15 years, explains Dr. Eugene Frank, senior vice president of sales and marketing.

"He decided he wanted to go into his own business and be an entrepreneur," Frank recounts.

More than two decades later, the company has grown to be a top-10 player in ethnic hair and skincare products, and deodorant/antiperspirants, he notes. It offers contract packaging and manufacturing for hair care, toiletries, bath care, cosmetics, skin care, baby care, OTC pharmaceuticals and household products.

"In the short period of time we've been in business 23 years, we've grown from a very, very small company to a medium-large-size organization that values its customer base," Frank emphasizes. "We've grown by a minimum couple hundred percent during the last eight to 10 years."

Frank says the company has a lot to offer its customers. "We feel we offer to our customers a combination of competitive pricing, excellent quality and excellent technical support in terms of R&D and quality assurance," he says.

Raani has established itself as a major player across its markets, Frank notes. "We feel we are one of the leading contract manufacturer companies in the United States," he emphasizes. "We will continue to grow with our existing customer base and future customers."

The company offers a full range of research and development services for its customers, including formulation development, stability testing, claim support testing, microbiological testing and documentation of services, "including all pertinent FDA-regulated documentations," Frank explains.

Word Gets Out
Word-of-mouth has helped the company grow, Frank says.

"We've primarily increased business through referrals," Frank asserts. "There's knowledge in the industry of who we are. We do advertising on the Internet and regular print. Most people who work at the company are known in the industry, myself included."

Frank has a doctorate in pharmaceutical chemistry, 32 years of industry experience and has been with Raani since 1989. His history with the company's founder goes back even further. He first met Chaudary when the two worked together at another company.

Long-term industry experience is a common trait at Raani and a key differentiator, he notes.

"Most of our upper management are people who have a lot of technical skills," Frank explains.

Quality Processes
The company also boasts ISO 9001 certification and is registered with the FDA as a manufacturer of OTC topical pharmaceutical products.

Frank says these traits, and the company's technical capabilities and quality "set us apart from our competition."

Many competitors in the company's markets are not ISO 9001 certified, he notes. "It has helped us a lot, especially with international sales where it is more important," Frank says. "[ISO certification] is not as common in personal care as you would see in some other industries, although it is becoming more common these days."

Raani is an established global player. In addition to the U.S. market, its products are sold in China, Brazil, Latin America, Europe, the Middle East, Russia and the United Kingdom.

The company is also active in its industry. Raani is a member of Independent Cosmetic Manufacturers and Distributors, as well as the Bedford Park-Clearing Industrial Association.

A Changing Landscape
Consolidation among both customers and competitors is a major trend in the marketplace, Frank notes.

"Today, there are probably less people in the private-label end of the business," he says. "The amount of manufacturers we compete against seems to have gone down because of consolidation and acquisitions."

Frank says it's the same situation with the company's customers, who are consolidating, as well.

"With consolidation, there are fewer companies to sell to," Frank says. "It has gotten harder to sell to the trade today because of all the consolidations and acquisitions. It's harder to deal with the companies that make the decision-making today."

The company has responded to these trends by decreasing and monitoring its costs. "You try to work your business leaner and keep operating costs to a minimum so you can achieve a good return on investment as best you can," Frank explains. "It's easier said then done. You have to watch overhead, the cost of goods, etc."

Future Vision
In the future, Frank says Raani is aiming for continued growth. The company operates out of a 275,000-square-foot leased facility in Bedford Park, Ill. Eventually, Frank says, Raani plans to buy its own, larger facility. He is optimistic about Raani's future.

"We take a lot of pride in what we do, and we're very happy with our growth over the last [23] years," Frank states. "We hope to continue to grow as an organization, so we can offer more products for the industry we serve in the near and immediate future."