With the liberalization of the Indian economy and the opening of markets to foreign multinational corporations such as Procter & Gamble, the Indian subsidiary of Unilever - Hindustan Lever Ltd (HLL) - was under pressure of rising incomes and profits. HLL has had a long and stellar record of market leadership in India (with a market share of about 60%) in categories such as soaps, detergents, and shampoos. Documents HLL innovative approach to penetrate rural markets (with a population of less than 1,000), where two-thirds of the population lives in India, with a scheme called "Shakti" (referring to empowerment). The central question is: How should the Shakti of scale and make it profitable?
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by V. Kasturi Rangan, Rohithari Rajan Source: HBS Premier Case Collection 24 pages. Publication Date: February 23, 2005. Prod. #: 505056-PDF-ENG
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