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HLL extending Max brand to confectionery

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HLL extending Max brand to confectionery

Hindustan Lever (HLL) has decided to extend its ice cream brand, Max, to sugar-boiled confectionery. The nascent confectionery business will be HLL's new growth engine.

Hit by sluggish sales, HLL had recently announced that it will enter potential new businesses that include confectionery, consumer healthcare and water.

HLL launched ChocoMax, a chocolate deposited candy, Max Magic, a centre filled candy, as well as Max, a candy available in orange and mango flavours, in Chennai and Salem. The sugar-boiled confectionery market in India is estimated to be around 80,000 tonne in volume terms and Rs 700 crores in value terms.

Nutrine is the leader in the confectionery market with 25 per cent shares followed by EID Parrys with 23 per cent, analysts tracking the sector said.

The company is implementing an exercise focusing on pruning HLL's 110 brands to 40, of which 30 will be national power brands and the other 10 regional. These 40 brands contribute 90 per cent to the turnover. The parameters for selection of these brands were size, strengths and competitive positioning.

The move gains significance since HLL has become active on the foods market, which is expected to explode in the years to come.


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