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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The panacea for the FMCG giant’s tepid growth lies in small-town and rural India. But that’s also shaping up as the new battleground for competitors looking to challenge its dominance.
Hindustan Unilever’s moat is under attack. Across segments, its products ranging from Lux and Lifebuoy to Vim and Wheel—all market leaders in their own right—are under the pump in various markets.
Take Pitambari, for instance. A household name in Maharashtra for its metal polishing powder, it’s now finding takers for its much cheaper diswash bar/liquid, handwash, detergent powder and floor cleaning liquid in rural pockets, challenging HUL’s brands such as Vim and Domex. In the last three years (FY22-24), the Thane-based company has seen its profits grow at a CAGR of 51%.
In fact, Vim, with an over 60% market …
Investors expect the FMCG major to get back on the growth track in the quarters ahead, but protecting margins at the same time could be tough.
Brands are struggling amid plunging prices of lab-grown diamonds, poor margins, intense competition, shaky global demand and a domestic market where tradition continues to shape buying decisions.
The FMCG major acquired the maker of Ching’s Secret to make the most of its high margins, but things didn’t go to plan. Two years and a few lessons later, TCPL is trying to change that.
