HUL cuts shampoo price, turns to e-com

The country's largest fast moving consumer goods company Hindustan Unilever (HUL), has cut shampoo prices in response to rival Procter & Gamble's recent moves. P&G effected a 17-32 per cent price cut last month in the portfolio as low input costs gave it the leeway to do so.

In a conversation with analysts from Edelweiss, HUL managing director Sanjiv Mehta said the company would take all necessary steps to defend its share.

P&G's market share in shampoos is about 27 per cent and HUL has a share of 46-47 per cent.

Even as HUL ringfences its core business (soaps and detergents gives it 50 per cent of its top line, while personal products, which includes shampoos, gives it 30 per cent of its turnover), it has begun trial runs of its e-commerce initiative.

Mehta said the company's e-commerce initiative Hamarashop.com was being piloted in Mumbai and Gurgaon. Much like Grofers, the platform would help kirana store owners to have their own website on the company's online shopping platform Hamarashop.com. The platform, the company said, would also execute deliveries for them.