The salaries of management trainees at HLL this year has gone up to Rs 3.25 lakh per annum from Rs 2.7 lakh last year. As compared to this, other FMCG companies like Procter & Gamble India pay close to Rs 3 lakh per annum. This is in addition to other perks offered by companies.

Industry observers feel that HLL's move to hike salaries of management trainees will be accompanied by similar moves by other companies in the FMCG industry.

HLL employs around 60 to 80 management trainees every year. The company spokesperson said that there was no hard and fast rule on the number of management trainees hired every year. The number varies every year depending on the requirement and the company does not dilute its terms to accommodate the same number every year.

According to HLL's Head ofManagement Development Prem Kamath, the hike in salaries at the trainee level is quite normal this year considering dull market conditions as compared to what the hikes were in the boom time four-five years back. The hike in the salaries of management trainees was of the order of 60-70 per cent four-five years back. Two years ago the industry undertook an increase of close to 20 per cent in salaries at the trainee level.

HLL benchmarks its remuneration with other FMCG industry players like Nestle, P&G, Colgate Palmolive, etc. The remuneration index in this bracket is said to have moved up by 10 per cent this year and this determines the salary levels.

``The early 90's were the boom years when the salary indices moved up in a major way. These have now settled down and reached a saturation level. We cannot predict the levels for next year,'' said Kamath. HLL's salaries, or that of other FMCG companies in this bracket (excluding Coca Cola and Pepsi), are not comparable to those of banks and consultancy firmswhich pay a higher remuneration, point out industry observers.

There have been instances, say industry head-hunters, when management trainees who even after being selected by paymasters like banks and other such companies have dropped these proposals to opt for working under companies like HLL, as this gives them wider opportunities for the future.

HLL, the Indian subsidiary of Anglo-Dutch Unilever PLC/NV, clocked a turnover of over Rs 10,000 crore in 1998.

The company spokesperson said that HLL is not restricting itself to the top management schools while recruiting management trainees this year. The company is also looking at widening its net to other management schools as well.