Times of India Sept.

`12, 2004
Shakti powers HLL rural sales
By Namrata Singh/TNN
Mumbai: Consumption of Hindustan Levers (HLL) products in rural households has
increased by 15-20% after the multinational kicked off Project Shakti in 2001. This is
part of the findings from a dipstick conducted by market research firm IMRB to ascertain
the impact of Project Shakti on HLLs financials.
Project Shakti is a rural initiative by the company which seeks to empower
underprivileged rural women by providing income-generating opportunities. The dipstick
was a randomly selected sample in areas where Project Shakti operates. As per the
findings, there has been an increase in market share of HLLs toothpaste (Pepsodent),
personal wash (Lifebuoy, Rexona and Breeze), washing powder (Wheel) and tea (Brooke
Bond) categories. Further, penetration of iodized salt (Annapurna) and skin cream (Fair
& Lovely and Ponds) is said to have gone up. There has also been an increase in the
regular usage of HLL brands, the study reveals.
Shakti targets small villages with population of 2000 people or less. It aims at creating
livelihoods for rural women, organised in selfhelp groups (SHGs), to improve their
standards of living. Shakti provides critically needed additional income to these women
and their families, by equipping and training them to become an extended arm of the
companys operation. The income is to the tune of Rs 700-Rs 800 per month per person.
This income is higher in Andhra Pradesh.
Sales through Project Shakti contribute 10-15% of HLLs rural sales. It has also helped
us in replacing and wiping out counterfeits, said HLL executive director, new ventures
and marketing services, Dalip Sehgal.
Rural sales contribute around 40% to HLLs overall sales which were at Rs 9,927 crore
in calendar year 2004.
Through Project Shakti, the company has almost doubled its direct coverage in rural India
with the project extending upto 70,000 villages, inching closer to the one lakh mark. The
number of Shakti dealersShakti Ammas, as they are referred tohas gone up to
17,000, with the projected number being 25,000 by December this year.
The potential is another one lakh direct coverage in 2-3 years. Beyond this, however, it
may not be viable, said Sehgal. With Shakti becoming a bigger brand itself, it enables
the company to get better recognition of its entire product portfolio. We realised that
physical presence is important. Brand saliency for our leading brands has gone up by
nearly 40%, Sehgal added.
The next big task at hand for HLL is to improve literacy among 150-odd Shakti Ammas
under a pilot which is being carried out in Andhra Pradesh. It is a six week programme
and HLL is hopeful that this would bring about better understanding of the business
among the women. For these women, an increase in earnings has also led to a status in
the society, an aspirational tool which marketers latch on to for enhancing sales of
consumer products.
Meanwhile, iShakti, another leg of Project Shakti which is an Internet-based rural
information service aims to expand its base to 3,500 kiosks across Andhra Pradesh.

WIDER FOOTPRINT

Consumption of HLL products in rural ares has increased by 15-20% since the launch of
Project Shakti.
The company has almost doubled its direct coverage in rural India with the project
extending upto 70,000 villages.
The income earned under the project is around Rs 700-Rs 800 per month per person.