The Hindu Business Line : HLL thrust on four businesses

FOR Hindustan Lever Ltd (HLL), 2004 will be the year to focus on four businesses — the confectionary brand, Max; ayurvedic range Ayush; direct marketing network, HLL Network; and water.

HLL's entry into water business will be different, the company Chairman, Mr M.S. Banga, said. "We have a new technology solution and a new business model. We are not entering the water business like the way some of the multinationals have entered," he said. This business will look at the entire consumption of water and not in the narrow sense as is known now. Water will be a big growth driver, he said.

"Ayush and HLL Network have the ability to go on to become mega brands," said Mr Banga.The FMCG major has categorised six brands as mega brands as their turnover is in excess of $100 million. The brands are Brooke Bond, Wheel, Lux, Fair & Lovely, Rin and Lifebuoy. According to him, the company's strategy to focus on power brands is paying. Each of these six brands "have the potential to touch $1000 million", Mr Banga said.

HLL, which went through a phase of consolidation pruning its businesses over the past couple of years, is poised for a growth phase. "We have lightened the boat and are ready to race upstream," Mr Banga told analysts. "We are well-poised for market challenges and are firmly in saddle to drive the growth agenda," he said adding the company would not hesitate to invest in protecting, developing and strengthening market shares in the face of any competitive challenge.

At present, 93 per cent of HLL's turnover is made up of FMCG brands.

The company expects the economic climate to be good especially in rural India. Though there is no sign of a rural demand pick-up on the back of a good kharif crop, it has revamped its rural sales organisation for deeper penetration in the rural markets. FMCG companies are also in conversation with the Government to allow low-priced packs in rural areas, as it would help crack the market, Mr M.K. Sharma, Vice-Chairman, HLL, said.

Project Shakti, a distribution model adopted by HLL in 2000 to sell its products through women self-help groups, is going to be yet another thrust area in the next 2-3 years, Mr Banga said. "The key factor is our ability to recruit the right kind of people. We have begun to roll this out nationally in 2004," he said. Now present in 15,000 villages, HLL hopes to reach out to 100 million people during the next 2-3 years.

The company would look at all opportunities in the area of distribution. "Our focus is to grow quality top line growth. We will grow our brands through delighting our consumers," he said.

More Stories on : Outlook | Strategy | Personal Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page