They will begin to dominate the supply chain and shif
t the power from the FMCG companies to themselves.” And HUL clearly has to take up the cudgels in the semi-urban and rural segments as well, where ITC has pipped it to the post in setting up its retail outlets called choupal sagars. A recent Assocham study on FMCG projects that rural & semi-urban FMCG market size is projected to grow by 10% and 6% respectively by 2010. Urban India market size, on the other hand, is projected to fall by 25% as the market moves towards organic products. While that should be the preferred course of action for the future, there really seems to be little HUL can do currently to reinvigorate its stock. Indeed, more rocking quarters and expansions into sunrise areas could improve investor confidence. Surely HUL would not wish to wait for a generation for that to happen!
For Complete IIPM Article, Click on IIPM Article
t the power from the FMCG companies to themselves.” And HUL clearly has to take up the cudgels in the semi-urban and rural segments as well, where ITC has pipped it to the post in setting up its retail outlets called choupal sagars. A recent Assocham study on FMCG projects that rural & semi-urban FMCG market size is projected to grow by 10% and 6% respectively by 2010. Urban India market size, on the other hand, is projected to fall by 25% as the market moves towards organic products. While that should be the preferred course of action for the future, there really seems to be little HUL can do currently to reinvigorate its stock. Indeed, more rocking quarters and expansions into sunrise areas could improve investor confidence. Surely HUL would not wish to wait for a generation for that to happen!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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