HLL on growth path: Banga

‘‘India is one of the most exciting markets offering great potential,’’ said Banga here today. ‘‘Over the next 10 years, the per capita income in India is likely to double.’’

He said HLL — which is 51 per cent owned by Unilever of the UK — will focus on 35 brands having better value and bigger role in consumers’ lives and will reduce its prices to make them more affordable. ‘‘Hll is now focussed on 35 brands covering all consumer appeal and price segments. They have been strengthened by ensuring that they offer better value and play a bigger role in consumers’ lives backed by appropriate technology,’’ Banga said while addressing the annual general meeting here.

‘‘The company had disengaged from all non-FMCG or commodity businesses with sales of Rs 1,750 crore as in 1999 while deriving value for these divestments,’’ Banga said. ‘‘This has already begun to yield benefits and we are returning to growth,’’ Banga said. ‘‘Volume growth is being followed by value growth, which in turn will bring profit growth.’’

‘‘The lure of new avenues of expenditure in products and services led to consumers restricting their spends on fast-moving consumer goods, or FMCGs, Banga told the shareholders. ‘‘It is not that they bathed less often or brushed their teeth less often or indeed washed their clothes less often. But they did downtrade to lower price substitutes from high quality brands,’’ said Banga.

Hindustan Lever expects consumers to spend more and switch to more expensive soaps, detergents, shampoos and toothpaste as the economy expands.

‘‘In FMCG, there is an opportunity to catalyze penetration, increase usage and upgrade consumers,’’ Banga said. ‘‘As a result, the FMCG market is expected to grow to over Rs 1 trillion from its current base of Rs 40,000 crore.