The Hindu : Business : HLL earns less in Q1

Online edition of India's National Newspaper
Friday, Apr 30, 2004

Business

Business

HLL earns less in Q1

By Our Staff Correspondent

MUMBAI, APRIL 29 . Hindustan Lever Limited (HLL) today reported a lower net profit of Rs. 294.88 crores in the first quarter of 2004 against Rs. 382.92 crores in the same period of the previous year. Net sales were almost unchanged at Rs. 2,353.34 crores (Rs. 2,370.90 crores) of which home and personal care (HPC) sales were at Rs. 1,572.80 crores (Rs. 1,519.70 crores) and FMCG sales were at Rs. 409.94 crores (Rs. 404.28 crores). Exports were at Rs. 311.24 crores (Rs. 315.62 crores).

Addressing a press conference here, M. S. Banga, Chairman, Hindustan Lever Ltd., said the company had now evolved a ten-point programme to rebuild margins.

This included global buying initiatives, technology driven cost savings, channel financing, large scale logistics optimisation, restructuring inefficient units, improving performance of value destroyers, structural cost savings from a simplified structure and large scale savings in production.

The company is on course with its packaged water project. "It will be an immense growth driver for us,'' said Mr. Banga. By the end of the current year, HLL's foods portfolio will constitute 100 per cent power brands from the current 90 per cent. "We expect strong growth in foods going forward. The changing food habits require lot of marketing and capital investment and we now have the ammunition and fuel for growth.''

Regarding the recently announced restructuring of the company, Mr. Banga said the company was now very simple. "Three years ago, there were 57 categories and we were like a conglomerate. Now we have just 35 brands under Foods and HPC. Our business is now totally focused. The Indian market opportunity is huge and we will leverage our strengths.''

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