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nt. However, in more recent years, the private sector and civil society have done a reasonable job, whereas the State has slipped into corruption and nepotism, including conversion of political parties into family firms. The State has to perform once again for any meaningful resolution of the central challenges facing modern India. (Credit Suisse, 2010)

Hindustan Unilever-Project Shakti, Self Help Groups

HUL will defend market share in categories like soaps, laundry, hair and skin care. HUL leads the market (2.5-3x its nearest competitor) in core categories and will invest strategically (on new launches like Brooke Bond and Sehatmand and pricing strategies) and tactically through promotions to maintain the relative advantage. Skin, tea volumes under pressure; soaps, detergents to grow slowly Skin care volumes under pressure, partly due to high inflation. Tea volumes declined Due to high levels of penetration, traditional categories like soaps and detergents are likely to post growth in mid-single digits (4-5%). But the opportunity lies in uptrading consumers. Consumers are upgrading in the toilet soap category, from which HUL will benefit. HUL is investing in categories of the future HUL is investing in emerging segments like fabric conditioner, body wash, noodles and cooking aids, deodorant and water. HUL aims to corner 30-40% share in each of the categories though new players are likely to enter the segments. (Credit Suisse, 2010)

The new product segments are margin accretive. HUL expects 30-40bp gross margin expansion each year as the share of new segments increases. Pure IT posted sales of Rs3b in the previous year and is growing at 40-45%. HUL extended the basic product to Rs1,000 Pure IT compact and premium offering in Marvella. The future looks bright as cartridge sales are also picking up. (World bank, 2010)

HUL has launched a corporate social responsible mission named Shakti Mission. This mission is a social business model built on the grounds of Corporate Social Responsibility. This model has actually helped HUL to take their goods to the bottom of the pyramid. This is a huge distribution network built on the whelms of CSR. (World bank, 2010)
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