Wednesday, March 12, 2008

They both lack ‘levers’!

Finally, there’s the legacy burden, as HUL’s Anglo-Dutch parent company UniLever is going through a painful reorganization too... with plans of around 20,000 job cuts over the next four years as well as selling off its laundry division in the US, besides sell off or reorganisation of 60 factories in Europe, its biggest market. Uncon- firmed speculations are on about a merger with Colgate Palmolive. And just like Uni- Lever, even Manwani would realise that while HUL’s resurgence has begun, it is far from complete. Organised retailing in India could be the next big threat for HUL to contend with. With respect to the threats posed by organised retail to FMCG players, Neville M. Dumasia, Executive Director, Advisory Services, KPMG India, quoted exclusively to B&E, “Retailers would compete directly with FMCG companies by promoting their own brands which would give them higher margins.

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