Top Story

Home >> Marketing >> Article

Hind Lever recasts its foods business

12-February-2005
Font Size   16
Hind Lever recasts its foods business

Hindustan Lever (HLL), the country’s largest consumer products company, has restructured its foods business.

After betting big on the foods business for driving growth, HLL has not got satisfactory results. It had invested a lot on research and development in terms of launching innovative products to treat the platter of the Indian consumer.

“We had some unsuccessful innovations and are reworking in terms of product mix portfolio, D Sundaram, director finance of Hindustan Lever said.

As part of new ventures, the company entered the confectionery business two years ago under the Max brand. Today, the company announced that it is pulling out of this business, as its product could not provide much of a product differentiation as compared to other brands. So, we decided against further investment in this business, it was a well-calaculated move, M S Banga, non-executive chairman of Hindustan Lever said.

The exit costs relating to confectionery business stood at Rs 30.45 crore. Other products that has been withdrawn are biscuits(Kissan Bistix), Knorr Soupy Snax and Annapurna 4’0 clock tiffin and Annapurna ready-to-eat chappatis.

In the beverages business, Brooke Bond accounts for more than 90 per cent of tea sales, grew by 16 per cent. It restructured the tea brands portfolio and has Brooke Bond and Lipton. Under Brooke Bond, it has three sub-brands Taj Mahal, Red Label and Taaza.

The overall beverage business declined by 7 per cent due to the phasing out of the A1 tea brand. Its Bru instant coffee had performed well for the quarter.

In the atta business, it has exited unviable geographies and is focusing on the south and west regions as the margins are better in these markets, Lever executives explained. In the ice cream business, it focusing on key cities and not at a mass market segment.

Unsatisfied with the performance of its confectionery business, Hindustan Lever company is the confectionery business being run under the Max brand. It has also withdrawn Kissan Bistix, Soupy Snacks among others.

The company is reviewing the marketing mix and the product portfolio of Ayush as the Ayush range of ayurvedic products has not done well. However, the products sold through the direct selling route and the ayurvedic spas has performed well, said D Sundaram, director -finance said.

The home and personal care business, the largest contributor to HLL’s turnover reported sales of Rs 1825.73 crore, a growth of 4.9 per cent. Price cuts in laundry and shampoos helped the company gaining volume growth.

In soaps category, Lux share declined while its over 100 year old brand Lifebuoy grew strongly. In toothpaste, it maintained its volume share.

The foods business has declined for the quarter to Rs 399.53 crore because of the phased trade stock reduction in salt and culinary products, de-focusing of atta in unviable geographies and withdrawal of innovations launched in 2003.

Tags

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE LOKMAT MAHARASHTRIAN OF THE YEAR AWARDS 2018 RECOGNIZE EXCEPTIONAL TALENT CNBC-TV18’S INDIA BUSINESS LEADER AWARDS HONOUR HIGH-ACHIEVERS, OUTSTANDING LEADERS AND TOP VISIONARIES

Telugu channel Star Maa is launching two new serials in the afternoon slots on May 21- Kante Koothurne Kanali and Shambhavi

CCI in February fined Google $20 million for abusing its position in online web search and also slammed the company for preventing its partners from using competing search services

Bhattacharya was has now set his sights on entrepreneurship with plans to set up something in content and fashion tech space