Faced with stiff competition, fast moving consumer goods major Hindustan Lever Ltd has decided to tap the rapidly growing direct-selling segment with the launch of ready-to-eat foods.
Hindustan Lever Network, the direct-selling arm of HLL, has recently launched a complete range of ready-to-eat food category under its Indus Valley brand to expand its presence in this segment, a company spokesman told PTI in Kolkata on Tuesday.
The product range in these categories include mutton and chicken biryani, mushroom and vegetable pulao and jeera rice in packs of 170 grams, he said.
HLL entered the direct-selling market in 1999 through Aviance and launched HLN last year, the spokesman said, adding it has expanded its network by over three times with about 250,000 marketing personnel.
HLL's drive into the direct-selling segment comes at a time when the company is faced with stiff competition in the FMCG segment resulting in a 22.9 per cent dip in its net profit to Rs 294.88 crore (Rs 2.95 billion) in the first quarter of the current year ended March 31.
Net sales of the company in Q1 of 2004 also declined to Rs 2,353.34 crore (Rs 23.53 billion) as against Rs 2,370.93 crore (Rs 23.71 billion) for the corresponding period last year while the export during the period fell to Rs 311.24 crore (Rs 3.11 billion) [Rs 315.62 crore (Rs 3.16 billion) in Q1 of 2003].
