Reviving Hindustan Lever Limited
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
HLL's problems began in the late 1990s. Since 1999, the company's revenues had been stagnant, at about Rs 100 billion, though profits had been increasing (except in 2004 when the company's profits plunged). In May 2000, MS Banga (Banga) took over as the Chairman of HLL. Banga aimed at bringing in a 'margin-based approach' for HLL.
HLL's Revival Efforts
In order to revive its business and financial performance, HLL undertook several new initiatives. HLL increased the ad spend on power brands by almost 30%. The company reduced prices of products like shampoos. It also started venturing into new areas like herbal products and water purifiers and refocused on its food business.
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