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HLL aims to be Unilever sourcing ally

BS Corporate Bureau

Hindustan Lever is working on a strategy to become a global sourcing partner to Unilever for its home & personal care and tea divisions.

The consumer goods giant is also concentrating on value-added products in the categories in which India has a competitive advantage. HLL's exports turnover in 2001 amounted to Rs 18.29 billion.

From end-April 2002, HLL's exports operations will be reorganised. This is aimed at more actively leveraging sourcing opportunities offered by Unilever companies and also to leverage synergies with HLL's domestic HPC and beverages business.

V Balaraman, director-exports of HLL and a member of the company's management committee, is retiring from the company to pursue other interests.

The reorganisation of the exports operations is based on recommendations of Balaraman. Accordingly, HLL's HPC exports group will report to Arun Adhikari, executive director -personal products.

The beverages exports group will report to S Ravindranath, executive director- beverages.

All other exports operations (marine, leather, agri commodities, mushrooms, carpets etc) will come under A K Mathur, executive director -exports, chemicals and fertilisers.

Mathur will also represent HLL on all corporate and external export related issues. Balaraman, who is retiring in end-June, will provide guidance and help in the transition to the new structure.

Meanwhile, HLL is exploring options like joint ventures or divestments for its non-core businesses such as leather products and mushrooms.

HLL has been engaged in the businesses of processing and sale of shoes and leather goods, consequent to the merger of Pond's (India) with itself. At present, the businesses mainly cater to the export market.

While the leather business employs about 660 permanent employees, the mushrooms business has about 340 employees.

... charts plan to introduce diet ice-cream

HLL has drawn up plans to introduce diet ice-creams for the health conscious Indian consumer. It is also planning to launch its premium ice creams including Ben & Jerry's in India next year.

"The company is working on a technique to produce diet ice-creams according to the Indian laws. While Unilever produces diet ice-creams internationally, the recipe cannot be copied because it is not in line with the archaic Indian laws," HLL ice-cream division executive director J H Mehta said.

He added that there is a plan to launch Ben & Jerry in India some time next year. Kwality Wall's has already launched a host of innovative products including Viennetta, Cornetto Soft, Black Currant Sundae, Super Cornetto, Feast bar and Vanilla gold for the Indian consumers.

The company has increased its focus on the premium ice-creams this year.

The new products will strengthen the perception of Kwality Walls as the brand which enhances fun and sharing, Mehta said.

The brand focus is being backed by new visibility elements to capture the core proposition of the brand in its different offerings. Some of the major initiatives in the direction are creation of select outlets of Kwality Walls, new look vending trikes, enhanced outlet level visibility and innovative signage. These select outlets will also be the focal points for local events, Mehta said.

HLL is now working on a three-pronged strategy to make Kwality Wall's a power brand through communication, innovation and activation, he said. The new advertising campaign has a brand tagline: Ho Jaaye Dil ka Connection.

Mehta was in New Delhi to announce the launch of its promotional campaign - Ek Din Ka Raja - which, the HLL officials claimed, is the biggest consumer promotion by any ice-cream brand in the country.

The promotion entitles 10 lucky consumers to spend Rs 1 million in one-day's shopping with their family in Mumbai.

The consumer will be offered hospitality in a royal style. The money can be spent on cars, home appliances, furnishings and even garments. Other prizes include microwave owens, walkmans, gold plated watches, puzzles and video games.

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