Processing .....please wait.. 
The article has been forwarded.... 
MP sets new model with Hindustan Lever
Friday, 01 November 2002, 20:30 IST
BHOPAL: Madhya Pradesh and consumer goods giant Hindustan Lever Ltd. (HLL) have come together to create a new business model.
They have launched an umbrella food products brand, "Vindhya Valley", to be marketed by HLL. The project is a brainchild of Madhya Pradesh Chief Minister Digvijay Singh and HLL chairman M.S. Banga.
The government and HLL came together here Wednesday evening to launch the "Vindhya Valley" brand that includes four products -- red chilli powder, turmeric, coriander and a basic spice used in Indian cooking.
The project seeks to cash in on HLL's branding and distribution skills. The multi-national has developed a brand for the state government with a mechanism for quality control and marketing. The concept is on test now.
At the launch, the chief minister said: "We have been inspired by the Lijjat brand that was started with a capital of 
500 and now has a turnover of 1.5 billion with exports to several countries.
"The success of Lijjat lies in the fact that housewives demand its 'papad' by that brand name. We want to achieve the same success."
The 100 percent purity of "Vindhya Valley" products was their unique selling proposition, he said.
"We will make absolutely no compromise on this front, and though stringent quality control is difficult to achieve when a product is being processed at different places, it is our goal."
HLL's marketing team, which developed the brand, worked out details of a media campaign, packaging design, quality standards and control mechanisms.
Madhya Pradesh's Khadi Village and Industries Board (KVIB) is the owner of the brand. It is also responsible for product quality.
HLL chairman Banga said the launch of "Vindhya Valley" marked a throwback to the early days in his management career.
Now at the pinnacle of a 120-billion company, Banga began his career 25 years ago in the rural markets of Madhya Pradesh, picking up elements of rural marketing by walking through the dusty streets of Indore, Dewas and Jabalpur.
"I firmly believe agriculture is the only culture that needs to succeed in India. After our successes in the green revolution (that made us self sufficient in grains), the white revolution (that made us self reliant in milk), we now need a food revolution.
"This shall bring in value addition for our rural people and make our agriculture more viable," Banga said.
Anil Kumar Jain, managing director of KVIB, said the products would initially be sold in Bhopal and Indore. They will be taken to other parts of the state and the country at a later stage.
"We are targeting a modest turnover of 12.5 million in the first year. We hope to reach a target of 300 million within the next three years as we add more product lines," he said.
Chief minister Singh said the larger objective was the promotion of a new business model by the state and the private sector, and to enhance the rural population's purchasing power.
"We have a strong network of self-help groups in the state, and they currently have an aggregate turnover of 300 million. This partnership with HLL could lead to newer areas of activities for them like the retailing of HLL products and thus enhance their purchasing power," he said.
Source: IANS
500 and now has a turnover of 1.5 billion with exports to several countries.
"The success of Lijjat lies in the fact that housewives demand its 'papad' by that brand name. We want to achieve the same success."
The 100 percent purity of "Vindhya Valley" products was their unique selling proposition, he said.
"We will make absolutely no compromise on this front, and though stringent quality control is difficult to achieve when a product is being processed at different places, it is our goal."
HLL's marketing team, which developed the brand, worked out details of a media campaign, packaging design, quality standards and control mechanisms.
Madhya Pradesh's Khadi Village and Industries Board (KVIB) is the owner of the brand. It is also responsible for product quality.
HLL chairman Banga said the launch of "Vindhya Valley" marked a throwback to the early days in his management career.
Now at the pinnacle of a 120-billion company, Banga began his career 25 years ago in the rural markets of Madhya Pradesh, picking up elements of rural marketing by walking through the dusty streets of Indore, Dewas and Jabalpur.
"I firmly believe agriculture is the only culture that needs to succeed in India. After our successes in the green revolution (that made us self sufficient in grains), the white revolution (that made us self reliant in milk), we now need a food revolution.
"This shall bring in value addition for our rural people and make our agriculture more viable," Banga said.
Anil Kumar Jain, managing director of KVIB, said the products would initially be sold in Bhopal and Indore. They will be taken to other parts of the state and the country at a later stage.
"We are targeting a modest turnover of 12.5 million in the first year. We hope to reach a target of 300 million within the next three years as we add more product lines," he said.
Chief minister Singh said the larger objective was the promotion of a new business model by the state and the private sector, and to enhance the rural population's purchasing power.
"We have a strong network of self-help groups in the state, and they currently have an aggregate turnover of 300 million. This partnership with HLL could lead to newer areas of activities for them like the retailing of HLL products and thus enhance their purchasing power," he said.
Source: IANS