PGP 2019 – 21

Session 11
Delivering Value: Designing
& Managing
HUL Pureit

IIM Shillong
Pradip Sadarangani
Market Size
• HUL revenues from Pureit was $ X mn
– X mn x X = X cr
– Total revenues of HUL as per Ex 1 is about $ X mn. It
equals to about Rs X
– Pureit contributes to about X % of HUL revenues
• Current mkt size of all types of purifiers is $ X mn
(Case pg 4). Which equals to Rs X cr.
– In 2014 mkt size is projected to be $ X bn (Case pg 4). Which is
equal to Rs X cr (X x X x X)
– Countertop has mkt share of X % (Ex 6 – X / X x 100)
– Assuming HUL to have X % mkt share in the countertop, it will
have revenues of Rs X cr in 2014.
– But mkt size will increase if penetration increases. Current
penetration is only X %
Distribution cost

• Retailer margin is X %
• DTH salary is $ X-X and incentive is $ X-X
per month (case pg 11).
– XxX = about Rs X
– X x X= X
– About Rs X x X x X = X crores
• DTH cost/revenues
– X / X = X %. Hence DTH cost is X % of the
revenues whereas retailer cost is only X %
Cost to consumer
• Cost of compact
– $X
– Cost of refill is X $ for X litres
– Assuming 5 members in family and 2 litres consumption per day =
X litres
– X litres will last for X days
– About 3 months
– Hence refill to be done 4 times in a year
– X x X = X + X= X $ is total cost of compact plus refill for first year
– Case Ex 3 says total expenditure in rural household is $ X and
savings is $ X per annum. Total is $ X
– X/X=X%
– Hence rural consumer has to spend X % of his annual income on
pureit plus refill