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HLL hikes prices of shampoo

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HLL hikes prices of shampoo

Hindustan Lever Ltd. (HLL) has effected the first price hike of the new calendar year. The Rs 10,142 crore soaps and detergents maker, has taken a five per cent increase in all bottles of its shampoo brands.

The price increase is in line with inflation. The price of it’s leading shampoo brand Clinic Plus has risen to Rs 75 for a 160 ml bottle from Rs 71.20. The previous hike in shampoo prices was taken nearly five-six months back. The current price of Sunsilk shampoo, which is the second leading brand, is Rs 58 for 100 ml. This is expected to go up by a similar margin.

HLL is the market leader in the Rs 700 crore shampoo market, with a market share of around 65 per cent. The growth of the shampoo market is around 10-12 per cent.

HLL is also planning to double the shampoo market penetration to 40 per cent in the next three to four years. The multinational is using its leading brand Clinic Plus as the vehicle to achieve this objective. This is being brought about by creating a dissonance in the minds of the consumer through effective outdoor advertising in small towns, where toilet soap doubles up as shampoo for hair wash purpose.

Clinic Plus, the market leader with a share of 30-32 per cent, took the initiative to launch the Re 1 sachet as "Clinic Plus Mini" - the lowest ever price - as the bottom end of the market is price-led.

Personal products, as a category, contributed 17.4 per cent to HLL's 1999 turnover of Rs 10,142 crore. The turnover from the personal products business stood at Rs 1,765 crore in 1999. In addition to hair care, the personal products portfolio also constitutes toiletries, colour cosmetics, dental care products and skincare products.


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