Date:04/08/2006 URL: http://www.thehindu.com/2006/08/04/stories/2006080404710400.htm

Karnataka - Bangalore

Hindustan Lever to move Bangalore Foods Division to Mumbai

Special Correspondent

Bangalore: Consumer goods giant Hindustan Lever Ltd. (HLL) is relocating its Bangalore-based Foods Division to Mumbai as part of a strategy to take on competition.

Hindustan Lever, in which the Anglo-Dutch firm Unilever Plc owns a 52 per cent stake, on Wednesday announced that it was shifting its corporate office to a new campus at Andheri in Mumbai.

The makers of Lux soap and Surf detergent said the move would integrate all existing business offices of HLL in Bangalore and Mumbai under one roof, and the transition would be completed by 2008.

The decision marks the end of the decades-old system of two power centres, with the home and personal care (HPC) business in Mumbai and the foods business in Bangalore.

HLL chairman Harish Manwani said the company was focussed on expanding the beverages and processed food markets in India. "The market for processed foods in India is at a very nascent stage. Only 5 per cent of the food consumed in India is processed. We want to exploit and build this market," he said.

Under phase one of the integration plan, HLL will relocate its 300-strong Bangalore foods team operating from a facility spread over 10 acres at Brookefield to the Mumbai head office by January 1, 2007. In phase two, the company will move its Mumbai head office and training centre to the new Andheri campus during 2008.

The Foods Division headed by S. Ravindranath handles tea, coffee, branded staples, culinary products, ice-cream and modern food products with popular brands such as Brooke Bond, Lipton, Bru, Kissan and Kwality Wall's.

HLL is understood to be looking at plans to sell its Brookefield facility, and chief executive officer Douglas Baillie gave an indication to this effect when he spelled out the reasons behind the integration of businesses under one roof. With competition from rivals such as Procter & Gamble snipping at its heels, Mr. Baillie said that the decision was "a significant step forward in our efforts to bring the scale and might of `One HLL' to win in the market place."

Expanding operations

Bangalore Staff Reporter writes:

Makemytrip.com is trying to redefine its positioning by promoting holiday packages, road trips, cab and hotel room bookings other than real-time booking of air tickets, according to Deep Kalra, founder and chief executive officer.

The company had set a target of Rs. 550 crore for this financial year, Mr. Kalra told The Hindu here on Thursday.