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HLL to end some toothpaste brands

India's largest personal care and food products firm Hindustan Lever Ltd plans to discontinue or sell off some brands as part of a brand pruning exercise, a financial paper said on Tuesday.

The newspaper said that HLL had shortlisted for discontinuing or selling off two variants of Close-Up toothpaste, Oxy Fresh and Renew, the washing powder Revel and Aim, a toothpaste targeting rural customers.

HLL, owned 51 per cent by Anglo-Dutch consumer giant Unilever Plc, announced in February it plans to reduce its brand portfolio to 30 from 110.

The 30 brands account for 75 per cent of turnover.

The paper quoted HLL chairman M S Banga as saying HLL would not get out of any category it was currently in, but would "put disproportionate assets" behind the chosen brands.

HLL makes soaps, detergents, cosmetics, toothpastes, shampoos, beverages and food products.

The newspaper's own shortlist of the brands being retained included Lifebuoy, Lux, Dove, Breeze, and Pears soaps; Close-Up and Pepsodent toothpastes; Red Label, Taj Mahal, Three Roses and Lipton Taaza teas and Kwality Walls ice cream.

An HLL spokesman reached by Reuters declined comment on the newspaper's list.

HLL has in the past year grappled with poor sales growth, which analysts see constraining profits in the future.

HLL's net profit for the quarter ended March 31 rose 29.3 percent from a year earlier to Rs 3.39 billion, while sales rose just 1.1 percent to Rs 26.42 billion for the first quarter ended March.

HLL shares have gained 1.25 per cent since the beginning of the year, while the Sensex, of which HLL shares are a constituent has fallen 7.56 per cent in the same period.

HLL shares were up 0.37 per cent on Tuesday morning, while the index was up 0.42 per cent.

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