Reviving Hindustan Lever Limited

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR206 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Case Length : 19 Pages
Period : 1998-2006
Organization : HLL
Pub Date : 2006
Teaching Note : Not Available
Countries : India
Industry : FMCG


The case discusses the problems faced by Hindustan Lever Limited (HLL), the largest FMCG company in India, in the early 2000s. Between 2001 and 2004, HLL's market share declined and its revenues plunged by Rs 7.27 billion, while profits fell by Rs 3.5 billion. In response, HLL's management began a restructuring exercise that aimed at boosting growth both in terms of volumes and revenues and finally translating into better profits for the company. The case discusses the restructuring exercise in detail and examines its effectiveness in reviving the company's financial performance. It also highlights the challenges that HLL may face in the near future.


Study and analyze the changing dynamics of FMCG industry in India
Understand the reasons that led the fall in HLL's market share, revenues and profitability
Critically examine HLL's restructuring exercise and analyze its effectiveness in reviving the financial performance of the company


  Page No.
Back on Growth Path 1
About HLL 2
The Problems 3
HLL's Revival Efforts 8
Revamping Power Brands 8
Exploring New Businesses/Marketing Channels 10
Focus on Food Business 11
Changes at the Top 12
The Challenges Ahead 13
Exhibits 14


HLL, FMCG Industry in India, P&G, Power Brands, Margin Approach, Restructuring, Brand Portfolio, Product Range, Pricing Strategy, Marketing Channels, Management Reshuffle

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