UNILEVER IN INDIA: Free Essay, Term Paper and Book Report
Executive Summary
The Indian subsidiary of Unilever or Hindustan Lever Ltd. (HLL) had been the market leader with strong market share for a long history of India until the early nineties. The opening up market to foreign investment in India has brought in many multinational competitors and pressure to HLL. Project ¡§Shakti¡¨ is an innovative approach to stimulate new demand in the rural markets, which are the large market potential for HLL. Shakti is expected to extend HLL¡¦s distribution reach to the most inaccessible rural villages in India. Although the project is now facing a number of challenges, the payback in terms of new markets and wealth creation is potentially enormous.
New Market Potential for HLL
HLL annual revenue = 120 bln Rs
India population = 1.02 bln
Population in rural areas = 742 mln
Below poverty line = 250 mln
New market potential in rural area
= 500 mln (ƒ° 100 mln households)
Rural area per household income
= 1,000 Rs/month
Positive Scenario Worse Scenario
Monthly Income (per household) 1,000 Rs 1,000 Rs
FMCG consumption rate 5......
Word Count: 760
Page Count: 3 (250 words a page / double spaced)
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