MUMBAI, Feb 14: The merger and acquisition (M&A) moves by fast-moving consumer goods (FMCG) major Hindustan Lever Ltd (HLL) are likely to dwarf the company's closest competitor, Procter & Gamble, in terms of its topline growth.P&G's turnover has been growing in the range of 35-40 per cent between 1991 and 1996 to Rs 331 crore. In comparison, HLL has announced that a merger with its group concern will double its turnover. The last three years have seen a sales growth of about 30 per cent year-on-year for P&G, 27 per cent for Pond's and 20 per cent in the case of Colgate-Palmolive.
In absolute terms, this is no comparison for a company which established its base in 1991, say analysts. However, the swelling financial clout of multinational HLL, which has been growing both through M&As and organically, may pose an indirect competition to competitors.
P&G, according to analysts, will not be directly affected by HLL's estimated strong double-digit growth. However, indirectly, it would be impacted in terms ofthe growing critical mass and increased media mileage for HLL. The fact that HLL has an advantage with the highest media spend, itself justifies its financial strength.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
