Pricing battles

For a company that was known in the times of Keki Dadiseth to double its turnover after every 4 years, the years from 2001 to 2005 were eminently forgettable; as the company’s turnover in 2005 didn’t even match its turnover in 2001! Add to that six consecutive quarters of internecine pricing battles with P&G, struggling bottom lines, plummeting share prices, resurgent and belligerent competitors like ITC snapping close at its heels; and it seemed like an obituary to HUL’s greatness was in order. Thankfully though, HUL has not taken a generation to bring back some semblance of pride to its balance sheet. For the financial year 2006, the gross sales figure has grown to Rs.130.35 billion (yo- y growth of 8%), and for the quarter ending June 2007, HUL has posted a growth of 13% in net sales to reach Rs.34.31 billion. Interestingly, profits have been even better off , with PAT growing at 24.4% to reach Rs.4.72 billion. An exuberant Manwani is quick to point out, “We have sustained our strong growth momentum across HPC and Foods businesses.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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