Super cool Initiatives By HUL At The Rural
Survey by the National Council for Applied Economic Research, India’s premier economic research entity, recently confirmed that rise in rural incomes is keeping pace with urban incomes. From 55 to 58 per cent of the average urban income in 1994-95, the average rural income has gone up to 63 to 64 per cent by 2001-02 and touched almost 66 per cent in 2004-05. The rural middle class is growing at 12 per cent against the 13 per cent growth of its urban counterpart. Even better, the upper income class — those with household incomes of over Rs one million [$22,700] per annum — is projected to go up to 21 million by 2009-10 from four million in 2001-02. It will have a 22 to 23 per cent rural component.70% of the Indian population lives in rural areas. This segment, commonly referred to as the 'bottom of the pyramid', presents a huge opportunity for companies. Unilever's Indian subsidiary, Hindustan Lever Ltd (HLL), considered one of the best-managed companies in India, understands the importance of rural marketing. The trigger point came when a local firm Nirma, through its new product formulation, pricing and distribution challenged HLL's detergent business. Nirma's attack from below made HLL realize its vulnerability as well as identify a new opportunity. Since then, HLL has launched various initiatives to reach out to the rural consumer. It has changed its product formulations and deliveries. It has begun a number of initiatives in terms of widening distribution reach through traditional as well as unconventional channels. HLL has also empowered rural women by assisting them in obtaining financial assistance through its project shakti.
Hindustan Lever Ltd, the $2.3 billion Indian subsidiary of Unilever, the country’s largest FMCG company, has also got on the bandwagon. It’s Project Shakti uses self-help groups across the country to push Lever products deeper into the hinterland. Its four-pronged programme creates income-generating capabilities for underprivileged rural women; improves rural quality of life by spreading awareness of best practices in health and hygiene;empowers the rural community by creating access to relevant information through community portals and it also works with NGOs to spread literacy. There are currently over 15,000 Shakti entrepreneurs, most of them women, in 61,400 villages across 12 states. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 of India’s 640,000 villages,touching the lives of over 600 million people.
Hindustan Lever Ltd, the $2.3 billion Indian subsidiary of Unilever, the country’s largest FMCG company, has also got on the bandwagon. It’s Project Shakti uses self-help groups across the country to push Lever products deeper into the hinterland.Its four-pronged programme creates income-generating capabilities for underprivileged rural women; improves rural quality of life by spreading awareness of best practices in health and hygiene;empowers the rural community by creating access to relevant information through community portals and it also works with NGOs to spread literacy. There are currently over 15,000 Shakti entrepreneurs, most of them women, in 61,400 villages across 12 states. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 of India’s 640,000 villages,touching the lives of over 600 million people.
With such an emphasis on rural marketing,consumption patterns are changing and it signals a change in the regulatory environment. Vertical integration of the food market from farm to firm to fork becomes the best way to achieve efficiency
and serve the interest of every stakeholder in the chain — the farmer, the processor, the retailer and the consumer.As Ashok Gulati of the US-based International Food Policy Research Institute put its, “The future of Indian agriculture in general and the farmer in particular depends on the how soon they can become globally competitive.”Indian economic policy realises this.Between the 8th (1992-97) and the 10th (2002-07) Five Year Plans, successive governments have tripled the spending on rural development from $6.82 billion to $20.2 billion. The Manmohan Singh-led UPA government plans to enhance rural credit.
Survey by the National Council for Applied Economic Research, India’s premier economic research entity, recently confirmed that rise in rural incomes is keeping pace with urban incomes. From 55 to 58 per cent of the average urban income in 1994-95, the average rural income has gone up to 63 to 64 per cent by 2001-02 and touched almost 66 per cent in 2004-05. The rural middle class is growing at 12 per cent against the 13 per cent growth of its urban counterpart. Even better, the upper income class — those with household incomes of over Rs one million [$22,700] per annum — is projected to go up to 21 million by 2009-10 from four million in 2001-02. It will have a 22 to 23 per cent rural component.70% of the Indian population lives in rural areas. This segment, commonly referred to as the 'bottom of the pyramid', presents a huge opportunity for companies. Unilever's Indian subsidiary, Hindustan Lever Ltd (HLL), considered one of the best-managed companies in India, understands the importance of rural marketing. The trigger point came when a local firm Nirma, through its new product formulation, pricing and distribution challenged HLL's detergent business. Nirma's attack from below made HLL realize its vulnerability as well as identify a new opportunity. Since then, HLL has launched various initiatives to reach out to the rural consumer. It has changed its product formulations and deliveries. It has begun a number of initiatives in terms of widening distribution reach through traditional as well as unconventional channels. HLL has also empowered rural women by assisting them in obtaining financial assistance through its project shakti.
Hindustan Lever Ltd, the $2.3 billion Indian subsidiary of Unilever, the country’s largest FMCG company, has also got on the bandwagon. It’s Project Shakti uses self-help groups across the country to push Lever products deeper into the hinterland. Its four-pronged programme creates income-generating capabilities for underprivileged rural women; improves rural quality of life by spreading awareness of best practices in health and hygiene;empowers the rural community by creating access to relevant information through community portals and it also works with NGOs to spread literacy. There are currently over 15,000 Shakti entrepreneurs, most of them women, in 61,400 villages across 12 states. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 of India’s 640,000 villages,touching the lives of over 600 million people.
Hindustan Lever Ltd, the $2.3 billion Indian subsidiary of Unilever, the country’s largest FMCG company, has also got on the bandwagon. It’s Project Shakti uses self-help groups across the country to push Lever products deeper into the hinterland.Its four-pronged programme creates income-generating capabilities for underprivileged rural women; improves rural quality of life by spreading awareness of best practices in health and hygiene;empowers the rural community by creating access to relevant information through community portals and it also works with NGOs to spread literacy. There are currently over 15,000 Shakti entrepreneurs, most of them women, in 61,400 villages across 12 states. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 of India’s 640,000 villages,touching the lives of over 600 million people.
With such an emphasis on rural marketing,consumption patterns are changing and it signals a change in the regulatory environment. Vertical integration of the food market from farm to firm to fork becomes the best way to achieve efficiency
and serve the interest of every stakeholder in the chain — the farmer, the processor, the retailer and the consumer.As Ashok Gulati of the US-based International Food Policy Research Institute put its, “The future of Indian agriculture in general and the farmer in particular depends on the how soon they can become globally competitive.”Indian economic policy realises this.Between the 8th (1992-97) and the 10th (2002-07) Five Year Plans, successive governments have tripled the spending on rural development from $6.82 billion to $20.2 billion. The Manmohan Singh-led UPA government plans to enhance rural credit.