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HLL slashes prices of personal care brands

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HLL slashes prices of personal care brands

Consumer goods giant Hindustan Lever (HLL) has reduced prices of its brands in the personal care category. The company has decided to pass on the benefits to its customers following reduction in the excise duty on cosmetics and toiletries in the Union Budget 2002-03.

HLL has slashed the prices of Clinic Plus, Sunsilk and Lux in the hair care category, Fair & Lovely, Lakme, Pond’s Vaseline in skin cream and lotions. It has also cut prices of Pond’s, Denim and Liril in the talcum powder category, and Lakme, Elle 18 in beauty and make-up preparations.

According to analysts, the price-cuts are expected to boost demand. However, another section of analysts pointed out that the cut in peak customs duty to 30 per cent from 35 per cent may increase competition from imported goods.

The cosmetics and toiletries category, estimated to be around Rs 500 crore, had a slower rate of growth during 2001.

The skin care category recorded a growth of 4.4 per cent in 2001, compared with 13.1 per cent last year.

While talc category recorded a growth of 0.3 per cent as against 8.6 per cent in 2000, shampoos declined from 12.5 per cent to 10.8 per cent in 2001.

Source: Business Standard


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