Hindustan Lever (HLL) today posted a 15% decline in net profit at Rs 259 crore in the first quarter ended March 31, 2005, and decided to merge five subsidiaries with itself.The net profit stood at Rs 302.91 crore in the same period of the previous fiscal.The company's total income rose 6.9% to Rs 2,506.40 crore during the quarter under review as against Rs 2,353.34 crore in Q1FY04, M S Banga, chairman of HLL, said in a teleconference today.HLL's home and personal care (HPC) sales grew 9.6% with volume growing 6.6%. "Investment in brand building continued with an increase in advertising spend of 12% in HPC," Banga said.In the laundry segment, the business grew 13% in value and 10% in volume - banking on growth of all main brands including Rin, Surf and Wheel.Shampoo volume posted a 20% growth with the company raking in both volume and marketshare, Banga said."HPC growth has accelerated strongly reflecting the success of our competitive strategy and brand investments. We have grown strongly in most competitive categories of hair and laundry. On the cost front, the hardening of commodity prices presents an important challenge," Banga said.The company's 30 power brands posted a 7% growth, and HLL is expecting a sustained growth over the next few months, the chairman said.The board today approved a proposal for merger of five subsidiaries with itself. HLL is planning to merge Lipton India Exports, Lever India Exports, Merry Weather Foods Products, TOC Disinfectants and International Fisheries with itself, subject to requisite approvals.
