HLL keen to grow foods business: Banga

By Our Staff Correspondent

MUMBAI, MAY 24. Hindustan Lever Ltd. (HLL) will try to keep its business volume growth at 7-10 per cent and focus on the bottomline, according to its new Chairman, Mr. Manvinder (Vindi) Singh Banga.

In an informal chat with mediapersons here today, Mr. Banga said there had been a slowing down of sales volume growth as the tea business had been causing concern for the last 18 months. ``The challenge is to pick up tea and continue the high growth in the foods business where there have been huge initiatives,'' said Mr. Banga, adding that HLL was determined ``to grow the foods business `anchored' in the centre of the Indian plate.''

There are many categories where HLL has high market share and when that happens, growth stagnates, according to Mr. Banga. In the foods business, he felt there were huge opportunities to increase usage by providing the occasions to consume the product.

Regarding the fact that HLL has witnessed growth mainly in the top-end of the segment, Mr. Banga said, ``We follow separate strategies for different consumer segments according to income levels. We are in the business of providing products for everyday needs and as such, the income level should not matter as you have the same needs.''

There is the barrier of foreign products now for this top end - foreign v local products, according to Mr. Banga. There is no quality improvement in many local products. He felt the Indian consumer was extremely savvy and a smart individual retained extremely good value orientation.

``As such, `made in India' is not a barrier but quality is the issue. Our premium products are as good as any of our products anywhere else in the world.'' he said. Stressing the need to provide far more information, Mr. Banga felt the consumer was far more aware today. HLL was working on a capability `Hello Hindustan' where consumers could call in toll-free to discuss issues.

Regarding the company's strategies, Mr. Banga said there were good strategies in place. First, the company was thinking in terms of three different time horizons - the business of today, investing heavily in the businesses of tomorrow and developing business for day after tomorrow.

Second, according to him, is the need to significantly improve the speed of operations. ``The half life of everything has come down drastically. We have to move at `Net' speed and the Internet speed will continue to increase,'' he said. Third was the need to win the war for talent.

``Historically, we have enjoyed and benefited from excellent quality managers. Today, these managers have thousands of options. We will succeed in this endeavour if we transform ourselves and then the best will want to come to us. To do so, we have to be a `youthful' company in mind, spirit and heart. We have to reflect those values and if we succeed in this, we can win any battle against any competitor.'' said Mr. Banga.

Regarding the recent trend of `downtrading', Mr. Banga said, whenever the economy ran into slackness, the market instinctively began to downtrade. ``That is why we consciously have moved into every segment,'' he said.

``Besides'', he added, ``the only way to win is to improve products through real improvement of products through real consumer understanding and the cost has to compare with the best in the world.''

* * *

Slowdown in sales volume growth.

Sees huge opportunities to increase usage of food products.

Good strategies in place.

Need for a `youthful' company in mind, spirit and heart.

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