HUL identifies headroom for premium push

HUL identifies headroom for premium push

HUL identifies headroom for premium push

 FMCG major Hindustan Unilever (HUL) sees a significant headroom for premiumisation according to its Managing Director and Chief Executive Officer Sanjiv Mehta.

“There is significant headroom for premiumisation. In the laundry segment, if Rin is used as much as it is used in Tamil Nadu, it will be six times of what it is now. Similarly, Surf Excel will be three times of the current rate. Premium laundry for HUL has grown two times that of the mass brand. Rin bar in UP has grown five times in five years. Premium powders have a potential to grow 7.5 times, while premium bars can jump 3.5 times. Vim Liquid can be three times among under-penetrated geographies if penetration reaches the national average,” Mehta told brokerage firm Edelweiss in an interaction.

According to Mehta, HUL is taking all possible steps to regain its lost market share in the oral care segment.

“Oral care remains an important category for HUL, where the company has lost market share. HUL is taking all the steps to win back market share and will not leave any stone unturned. Between the two brands — Pepsodent and Close Up — the former suffered more, for which the company has recently rolled out a new variant Pepsodent Clove & Salt. Close Up has not lost market share and is targeting the youth. HUL is organising a large party event branded under Close Up First Move Party in Mumbai. This is targeted at the youth and the company is aggressively promoting the event through home advertising,” Mehta said.

Mehta believes that the company will remain competitive in the lower-end segment of home care and is not much worried about competition in the segment.

“HUL wants to remain competitive in lower end and is not defocusing on the Wheel brand. The company is taking steps to revive the brand,” Mehta said.

Global and regional competition is bound to remain in a country like India. A benign commodity environment leads to mushrooming of players. However, Winning in Many India (WIMI) arms HUL to fight regional players competently, Mehta added.

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