Abstract:   On 17th February 2023, HUL (Hindustan Unilever) announced the sale of its brands Annapurna Atta (flour) and Captain Cook salt. This Case illustrates the adoption of divestment as a defensive strategy by HUL in view of the low market attractiveness and weak strategic position of the two brands. The Case traces the journey of the two brands in HUL’s portfolio, the drift of HUL towards premiumization as a growth strategy in recent years and the change in priorities of different product categories within HUL for realising long term profit generation. The BCG growth-share matrix is used to classify the two brands and explore the strategic options available. This is a real-world, illustrative case based on a recent business decision aimed at an insightful understanding and appreciation of a company's use of defensive strategy in the face of growing competition in a high growth-low share market. This work attempts to understand HULs divestment announcement decision by integrating the available strategy options under BCG growth-share matrix framework with the company’s overall growth focus. The theme of the case resonates well with business management practice and holds high practical relevance for students and practitioners of strategy.

Learning Objectives

After analysing this case study, the student should be able to:

1. Identify all stakeholders in the scenario presented in the case study
2. Demonstrate knowledge of reasons necessitating a defensive strategy for a firm
3. Differentiate between the four quadrants of BCG growth-share matrix given the portfolio of a firm