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HLL expects double digit growth in Haircare segment

07-November-2002
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HLL expects double digit growth in Haircare segment

The haircare division of FMCG major Hindustan Lever Ltd is expecting a high double digit growth following the price cut initiated by the company for its shampoo brands Sunsilk and Clinic Plus.

HLL, the market leaders in the Rs 1000-crore shampoo market in the country, was forced to bring down prices from Rs 2.50 per sachet to Rs 2 and from Rs 1.50 to Re 1 respectively besides introducing a 50 paise sachet in July following stiff competition from low priced rivals impacting growth in the segment.

According to sources the haircare division, contributing to nearly eight per cent of the total revenue of HLL, is not having any immediate plans to enter into herbal shampoo segment. However the company is constantly monitoring the market and would introduce new products if it could drive a revenue growth of Rs 20 crore to Rs 25 crore in the first two years of launch.

The sachet segment accounting for 50 per cent of the shampoo volumes in the country is also the segment witnessing maximum competition. Ruling out any increased spend on advertisement source said that there may be reallocation in certain segments. The haircare division accounts for nearly 10 to 12 per cent of HLL’s advertisement spend.

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