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Hindustan Lever to sell 'instant' chappatis; company mulls buyback of shares

Fast moving consumer goods giant Hindustan Lever Limited, or HLL, is test marketing 'puff and serve' chappatis as a prelude to introducing them into the market.

The success of its food products under the Kissan Annapurna brand has further bolstered its plan of strengthening its foods business. In January, HLL had announced that it would launch ready-to-serve chappatis this year.

Meanwhile, after deciding to split its equity shares from the nominal value of Rs 10 to Re 1, HLL is thinking of buying back its shares from the secondary market. However, this will not be done in the immediate future, sources said.

While the company has no immediate plans for buy-back of its shares in the near future, a resolution to this effect would be moved in the coming annual general meeting, a company official said.

The meeting will also dwell upon bringing the articles of association of the company in line with the amended provisions of the Companies Act, 1956.

"This is being done to ensure that when the company goes in for buy-back, the lack of an enabling provision in the articles of association does not become an impediment, the official added.

He said that HLL was primarily targetting working women for its 'puff and serve' chappatis .

"These are partially baked chappatis , prepared at HLL's state-of-the-art plant. They have to be heated to be puffed up, and are ready to be served. They have a shelf life of four days," he said.

Made from MP Sherbatti wheat blend Kissan Annapurna atta, the chappatis would be soft and wholesome and packed under hygienic conditions, he said.

HLL's branded staple foods division had achieved sales of Rs 2.18 billion in 1999, as against Rs 1.60 billion in 1998. The division was the seventh-largest contributor to the company's total sales.

Soaps, detergents and scourers unit recorded sales of Rs 41.01 billion, up from Rs 26.96 billion. It was followed by the personal products group's turnover of Rs 17.66 billion, as against Rs 15.26 billion in 1998.

The third largest contribution of Rs 15.75 billion was beverages, which had a difficult year as sales came down from Rs 17.99 billion in 1998.

Beverages, spreads and cooking products were the only two divisions of the company that had recorded lower sales in 1999 compared with 1998.

HLL's branded foods business, however, put up an impressive performance in 1999, with sales increasing by over 50 per cent. Its share also increased across all urban and rural markets.

UNI

Business