The gross turnover was up 7.4 per cent at Rs 5,590.88 crore in the first-half of the current year as compared to fiscal 1998. The HLL scrip closed lower at Rs 2705 on the Bombay Stock Exchange on Monday.

Addressing a news conference, HLL chairman Keki Dadiseth said the improvement in 1999 second quarter over the first quarter was driven by demand from rural India, which has demonstrated tremendous buying power. Demand from rural markets is over 50 per cent as of now, against urban India accounting for around 65 percent about seven years back, he pointed out.

The HLL chairman said the demand pattern in favour of rural markets would continue though the next three weeks of monsoon - crucial for farmers - can make or break the rural demand for the entire year. On the rumours of a possible stock split, which fueled the HLL scrip price in the last two weeks, Dadiseth said that the company is examining the possibility and a decision would be taken soon.

On implementation of employee stock option scheme, Dadiseth said ``we are examining it as a means of ensuring performance from employees.'' He said exports continue to be under pressure in a scenario of difficult international trading conditions and continued crisis in Russia. ``There is definite slackening in international trade and it is not at levels of the past,'' he added. HLL's export turnover for the first half of 1999 was Rs 982 crore.

Regarding disinvestment on public sector Modern Foods, Dadiseth said the company has expressed its interest to the government fora possible takeover. HLL's mass market detergents grew ahead of the market and gained share, while toothpaste brands have now attained market leadership in urban areas of north India, Dadiseth said.

The popular foods business comprising of Kissan Annapurna flour and iodised salt continued to grow rapidly with volume growing by over 80 per cent in the first half compared to last year, he said. The estimates of business restructuring costs for the year 1999 has been revised upwards to Rs 166 crore against the amount of Rs 100 crore estimated earlier.

The company is working on Project Millennium to decide the future focus of the company and how to maintain its market share. McKinsey & Co is helping HLL on the restructuring of its business. In the ice-cream segment, a major initiative to offer affordable ice-cream in the children has been the test-marketed. This includes `Max Uno' at only Re one per piece and national extension of `Fun Joos' at Rs two.

HLL to launch readymade chapatis

MUMBAI:Hindustan Lever Ltd (HLL) had drawn up plans to launch readymade chapatis to be test-marketed in Mumbai soon. Chairman K B Dadiseth said a pilot plant for the purpose has been set up at Sewri in the metropolis.

Aimed at working women and people leaving alone, HLL's chapatis would have a shelf life of one week and would be fat-free. The company will launch a major advertising and marketing campaign to sell the product.

HLL's branded staple business comprising of Kissan Annapurna wheat flour and iodised salt grew by over 80 per cent in the 1999 first half over last year. Having launched extra fibre atta, poori atta, rawa, crystal salt and a low unit price pack of iodised salt, the focus of the business, Dadiseth said, is to develop superior products relevant for the Indian market based on research and development capabilities.