Mitsui & Co has partnered Japanese consumer firm Kao Corporation to enter the baby diaper market in India. The company′s brand - Merries - will compete with the likes of Procter & Gamble′s Pampers which controls nearly half the market as well as another Japanese firm Unicharm that makes Mamy Poko. Merries generates more than ¥10 billion ($89,000) in annual sales and is the leading premium brand in Japan in term of sales value share for tape and pants diapers. Mitsui & Co India said it plans to tap into the growing potential of the Indian baby diaper market within the premium segment. Hiromichi Yagi, chairman of Mitsui & Co. India, said: "There is significant growth potential for us in India where the penetration rate of baby diapers is still below 6 per cent despite approximately 25 million babies being born every year. Presently the country is using 4.6 billion pieces of diapers as against its 80 billion potential. Through the launch of Merries, we hope to provide a thrust to the current number.” Over the years, the consumer's mindset while purchasing diapers has also evolved. Initially, consumers focused on a diaper's absorption capacity, but now are looking into other aspects as well like breathability and softness of the fabric, the company said.