Abstract

The case discusses the problems faced by Hindustan Lever Limited (HLL), the largest FMCG company in India, in the early 2000s. Between 2001 and 2004, HLL's market share declined and its revenues plunged by Rs 7.27 billion, while profits fell by Rs 3.5 billion. In response, HLL's management began a restructuring exercise that aimed at boosting growth both in terms of volumes and revenues and finally translating into better profits for the company. The case discusses the restructuring exercise in detail and examines its effectiveness in reviving the company's financial performance. It also highlights the challenges that HLL may face in the near future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study and analyze the changing dynamics of FMCG industry in India
• Understand the reasons that led to the fall in HLL’s market share, revenues and profitability
• Critically examine HLL’s restructuring exercise and analyze its effectiveness in reviving the financial performance of the company.

Keywords

HLL, FMCG Industry in India, P&G, Power Brands, Margin Approach, Restructuring, Brand Portfolio, Product Range, Pricing Strategy, Marketing Channels, Management Reshuffle