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HLL hikes adspend to counter depressed market

10-September-2001
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HLL hikes adspend to counter depressed market

Hindustan Lever (HLL) has been stepping up its advertising and sales promotion expenditure during the year to beat the blues. The adspend growth was phenomenal in the second quarter, with that in home and personal care (HPC) power brands rising over 43 per cent, and foods power brands by 30 per cent. HLL's 30 power brands contribute 80 per cent to its turnover.

In the first six months, the increase in adspend in all HPC products was 19.6 per cent and 8.9 per cent in all foods brands. In power brands, its expenditure in the HPC segment had risen by 32.6 per cent in the first half, while in foods, it was 14 per cent in the same period.

Hindustan Thompson Associates (HTA), India's biggest ad agency which spends 70 per cent of its total budget on TV advertising, expects Indian advertising markets in 2001 to grow at 10 per cent on year-on-year basis. HTA's largest clients include Levers, ITC Pepsi among others.

The Unilever group's ad and promotional expenses in India in the 2000 fiscal had jumped to Rs 1,404 crores against Rs 1,354 crores for the year before.

While HLL reported a increase in net profit at Rs 346.73 crores in the second quarter this year against Rs 286.74 crores in the year -ago period. Turnover increased by a marginal 1.8 per cent to Rs 2,931 crores (Rs 2,879.72 crores).

Ad growth in 2002 is likely to be better than in 2001, but growth numbers will be firmed up only post monsoons, feel analysts.

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