Detergent Wars in India |
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We recognise the challenge of intensified competition from both low-priced players as well as international companies. Most recently, P&G has reduced prices and increased aggression in laundry. Our response, when faced with such challenges, will be to face them 'unblinkingly,' with the level of investment required to both, protect and grow our market positions. - M. S. Banga, Non-Executive Chairman, HLL1 IntroductionOn the 10th of March 2004, FMCG major Hindustan Lever Ltd. (HLL), the Indian subsidiary of Unilever, convened an urgent meeting of its dealers. HLL wanted to discuss how to retain the volumes and market shares in its fabric wash business in view of the price war, which Procter & Gamble (P&G) had unleashed.
P&G and HLL were not the only major players in the Indian detergent market. Henkel and Nirma were also becoming very aggressive. With a shakeout looking imminent, analysts wondered who would emerge the winner in the long run. Background NoteThe Indian Detergent Market Detergent Wars in India - Next Page>>
1] Ravi Ananthanarayanan, "Price war may not wash with veteran HLL," www.economictimes.indiatimes.com, 5th March 2004. |
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