How can shakti contribute to hll s bottom line make an economic case

But, a monsoon revival and greater rural incomes can mean payback time for projects like Shakti. The team visits the house of Jella Sujathamma, whose spouse is a weaver who weaves the famous Pochampally sarees of AP.

The project will be piloted in Nalgonda district again. Returns may not happen in the next five years, but a lot of consumer understanding and insights comes from an exercise like Project Shakti, which in turn can lead to product innovation.

The most obvious is innovating in the value proposition. There are other plans brewing.

Hll Shakti Case Analysis

This could have never been achieved by the companies themselves. Hindustan Lever Limited www. Training costs of these trainers would also add up.

Then he partnered with Grameen Bank, an established micro-credit institution in Bangladesh who brought in the knowledge on credits and a database of potential customers. Since the inception of the SHGs, an amount of Rs 1, The challenge for HLL now is to take its products to towns with a smaller population - under 2, people.

Target customers are Indians who cannot afford conventional jeans but still wish to purchase them. I decided that it could be interesting to look at the shared examples through the business model lens, which I explained in an earlier post what is a business model. Identifying Self help groups and convincing them Not all the villages were Shakti project was decided to be rolled out had self help groups.

She, HLL officials explain, is a shining example of the success of the model - Sujathamma, on an initial loan of Rs 10, from her SHG to start the enterprise, has a turnover of Rs 10,Rs 25, a month earns a profit of Rs Rs 2, a month, an average return of 8 per cent.

Initiatives like Project Shakti will help them in establishing and consolidating their base in rural markets.

India was a country with milk shortfall and imported milk every year in form of milk powder. HLL was the pioneer to explore the markets at the bottom of the pyramid.

Case Study

To get started the Shakti woman borrows from her SHG and the company itself chooses only one person.Shakti is HUL’s initiative that combines social responsibility, sustainability, and business strategy.

India has more than 6, 30, villages, most of these are 'hard to. Perhaps the most interesting, though, was an initiative called Shakti, which aimed to extend the reach of HLL’s products to the million rural consumers invillages at the base of the economic pyramid, a market not well-served by HLL at the time.

How can Shakti make a contribution to HLL’s bottom line? Make an economic case.

What is the Economic Value created by Shakti? What is the social value? Shakti was launched to capture the lower ranks of the economic pyramid.

How can Shakti make a contribution to HLL's bottom line? HLL total turnover= Rs. billion Direct rural business in bottom end market= 20% of HLL turnover= 22 billion Also, direct coverage of rural business=40% of total rural business So, total rural business= 22/=55 billion Shakti’ contribution in HLL rural turnover =15 % of total rural business = billion Currently, Shakti is contributing % to.

An analyst with a leading brokerage points out that a lot of HLL's rural initiatives in the recent past have not paid off because of poor rural incomes. But, a monsoon revival and greater rural incomes can mean payback time for projects like Shakti. "Large companies like HLL have to push greater into rural areas.

Dec 11,  · 2) How can Shakti make a contribution for HLL bottom line By the following measures Shakti can contribute for HLL bottom line. Ø Shakti can provide a loyal customer base and a self motivated team of sales representatives which can penetrate the rural market which is largely untapped.

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How can shakti contribute to hll s bottom line make an economic case
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