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product life cycle of hindustan unilever limited

The latest in 2010 is the going green strategy of reducing CO2 footprint by introducing psm technology. ITC is not a pure-play FMCG company, since cigarettes are its primary business. Nestle India manufactures products of international quality under internationally famous brand names such as Nescafe, Maggi, Milkybar, Milo, KitKat, Bar One, Milkmaid and Nestea. This implies that availability is the most critical factor for these products to be sold and consumed. Genesis of Hindustan Unilever Limited (HUL) 2. HUL’s efforts to build a market for its products in these areas had started way back in the days it began operations in the country. … The company test-marketed a specially designed product, chai ki goli (fully soluble tea balls) that was dropped in a boiling milk-water combination. For the purpose, HUL is educating the rural masses on the . a. 1957 •Unilever Special Committee approves research activity by Hindustan Unilever. Through the product itself and its sustainability work with its partners, it is bringing better health and hygiene to a wide and often disadvantaged market. The locals have the edge in supplying neighbourhood stores, which global companies find harder to reach. This project was to be carried out with the help of a rural distributor who had 15-20 rural sub-stockists connected to him in the villages. Strong and well-differentiated brands with leading share positions. While the FMCG business has grown by 11.8 per cent to reach Rs. 200 million. b. SAP implementation started in 2006 across HUL. The company came back into the black in 2003 after a spate of restructuring in 2001 and 2002. f. Unfavourable raw material prices of oils, tea, commodities reducing profitability. Finally, BBLIL merged with Hindustan in January 1996. Therefore manufacturers must be very flexible to produce different goods. Further expansion occurred in 1994 when BBLIL launched the Wall’s range of frozen desserts. KSO’s product portfolio also comprises refined oils, vanaspati and non- edible solvent oil. In the coming years, success will require ever sharper capabilities in the four main areas that sustain consumer goods companies: brand marketing, sales, innovation, and supply chain. Strengths in the SWOT analysis of Hindustan Unilever ( HUL ) 1) Brand visibility – From soap to mineral water, HUL is shaping the life of 1.3 billion people daily. Technology has created a society which expects instant results. g. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure. The unwavering commitment to internationally benchmarked quality standards has enabled ITC to rapidly gain market standing in all its six brands: Kitchens of India, Aashirvaad, Sunfeast, Mint-o, Candyman and Bingo! It involved setting up company stalls, conducting product briefings and demonstrations, organizing interactive games, lucky draws, magic shows and screening hit movies interspersed with product commercials. Hindustan Unilever is one of the biggest fast moving companies of consumer goods with at least two-thirds of the population using its products … There are three distinct paths to developing a competence, each with its own benefits and drawbacks; and sustaining a core competence requires just as much rigour as developing one in the first place. PESTLE Analysis of HUL (Hindustan Unilever Limited) analyses the brand on its business tactics. Within the F&B division, the company markets ice creams. Project Report on the Genesis of Hindustan Unilever Limited (HUL): 3. HUL’s employee surplus led it to cut managerial jobs. Talking about the launch, Sanjiv Mehta, Chairman and MD, Hindustan Unilever, said, “Hygiene has always been an important aspect of life but is now gaining paramount importance especially in times like these.Our research has shown that consumers are looking out for safe yet effective cleaning products, and their increased focus on hygiene is related to holistic wellbeing. In addition, it operates salons offering personal styling and beauty solutions and spa treatments to men, women and children. The Community Dental Health Campaign was carried out for a period of three years and targeted 100 million people across rural India. l. Well placed to take advantage of growth in rural India and lower strata of the society through ‘shakti’. 15. The company displayed an ability to effect price hikes and avoid impact of inflation on vegetable oils, which, combined with improved outlook for fabric wash and strong growth in processed foods and beverages, lent a positive outlook for the stock during 2010-13. HUL carried out its direct marketing operations in the high potential districts of the country to attract first-time users. Cheaper labour in developing countries affects the competitiveness of products from developed countries. Company sources placed the total investment in the programme at between Rs. Technology hardware such as mobile phones, laptops, desktops, Bluetooth devices, photocopiers and fax machines which transmit and record information. Hindustan Unilever Limited (HUL) is an Indian consumer goods company headquartered in Mumbai, India. Unilever Limited (then known as Hindustan Lever Limited). Technological advances have greatly changed the manner in which businesses operate. In a related move, in 1995, Hindustan and yet another Tata company, Lakme, formed a 50: 50 joint venture, Lakme Lever, to market Lakme’s market-leading cosmetics and other appropriate products of both the companies. HUL’s brands and people have its unparalleled strengths and they delivered very good results in 2007-8. It helps the company create value that can be sustained over the long term by offering consumers a wide variety of high-quality, safe food products at affordable prices. Political factors include the following types of instruments: a. HUL … Growth continued in 1994 when the company formed 50: 50 joint ventures with two US-based companies, Kimberly-Clark Corporation and S.C. Johnson & Son, and the Netherlands-based Gist Brocades. The company is present in the skincare services segment through Kaya skincare clinics (44 clinics) in India and the UAE, and also through the Sundari range of Ayurvedic skincare spa products in the US and other countries. Between February and June 2008, it expanded its personal care portfolio with the launch of Vivel Di Wills and Vivel brands. The twenty five icons form the unique U of the new corporate logo. Its life begins with its market introduction. h. Reduction in real income of consumers due to high inflation. e. Access to Unilever global technology, capability and sharing of best practices. Lifebuoy is produced in Unilever in Cyprus for the UK, EU, US and Brazil markets, in Trinidad and Tobago for the … This was reflected in the improved margin profile too. e. Unfavourable raw material prices in oils, tea, and so on. HUL has one of the highest return ratios in the industry. At Procter & Gamble, for instance, the core consumer marketing skill resides in the advertising department (the company’s name for brand management). It is diversifying into non-tobacco FMCG segments like food, personal care, paper products, hotels and agribusiness to reduce its exposure to cigarettes. The campaign was successful in increasing penetration levels, usership and the awareness about the company’s products in the districts targeted. For the year 2007, the company achieved an overall turnover growth of 13.3 per cent; both HPC and the foods businesses grew by 12.3 and 20.2 per cent, respectively. BCG Matrix of Hindustan Unilever Hindustan Unilever Limited (HUL) is India’s biggest quick moving purchaser products organization. This activity also helped the company increase the reach of its products. a. Writing skills … 100-Rs. Though HUL is a market leader, it has been losing market share in key categories. Life Cycle Initiative, 1. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited … MUMBAI: Hindustan Unilever said the number of pack sizes across its brands is now at about 40% compared with pre-Covid levels, part of the country’s biggest consumer goods firm’s strategy to focus on popular and faster-selling products. For some the life cycle may be as short as a month, while for others it may last for a sufficiently long period. f. Wide and deep market penetration with 47 C&F agents, more than 5,000 distributors and over 1.5 million retail outlets all over India. Product life cycle 1. Organizations use technology in many ways. f. Unfavourable raw material prices due to inflation reducing profitability. This increase was from more volumes sold, better mix of products, and selective price increases effected during 2008. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society. Producers must differentiate their products and quickly bring them to the market. HUL launched a nationwide Community Dental Health Campaign in association with the Indian Medical Association (IMA), to promote its toothpaste Pepsodent. Parent Unilever, at the Consumer Analyst Group of New York (CAGNY) conference in Florida last month, acknowledged that penetration for the top two skin cleansing brands in India has been down Mumbai: Hindustan Unilever… Its factory is the largest manufacturing investment in the Himalayan kingdom. These new product launches are likely to propel incremental sales growth for the company. 187, 100 million and Rs. Thus the topic “PRODUCT MIX OF HUL” conceive an idea of different products … Making sustainable living commonplace Great products … The keeper of the skill drives all the company’s major decisions, even in unrelated functions. f. Change of eating habits of people; consumers have become more health conscious. In 1992, Brooke Bond acquired Kothari General Foods, with significant interests in instant coffee. Essay on Unilever Product Life Cycle Introduction •William Hesketh Lever founded lever Brothers in 1885. By the end of the year, the company entered into a strategic alliance with the Kwality ice cream group families and in 1995 the Milkfood 100 per cent ice cream marketing and distribution rights too were acquired. Brand managers exert a dominant influence on all decisions throughout the company. f. Growing consumption in out-of-home categories. Gillette hived off its battery manufacturing plant (Duracell) at Manesar and also saw cash infusion from the parent, which helped it restructure and pay of all its debt. b. Various taxes and levies imposed on commodities that have a cascading effect on prices. Companies must define their core competences with precision if they are to use them to their full advantage. c. New inventions and development; upgrading consumers through innovations to new levels of quality and performance. Interestingly many of these products, and especially those in categories like fabric wash, personal wash and beverages, derive over 50 per cent of their sales from rural areas. Meanwhile, Margarine Unie also exported vanaspati, or hydrogenated edible fat to the same country. Earlier PGHH used to undertake contract manufacturing for its parent’s detergent portfolio in India, which it has discontinued. HUL initiated price hike in August 2010 on soap portfolio Lifebuoy (+ 6.7 per cent), Liril (+ 5.2 per cent), Dove (+ 3 per cent), Pears (+ 4 per cent) and Lux (+ 10 per cent). Project Report on the Spread of HUL to Villages: 7. Life Cycle Knowledge Consensus and Platform, Global Guidance for Life Cycle Impact Assessment Indicators and Methods (GLAM), Guidelines for Social Life Cycle Assessment (S-LCA), Global Life Cycle Assessment Data Access network (GLAD), Register now! Technical + Policy Advice / Stewardship for LC Approaches, Linking UN SDGs to life cycle impact pathway frameworks, National Guidance for Marine Plastic Hotspotting and Shaping Actions, 3. In the HPC Division, HUL’s hair care brands include Clinic, Sunsilk, Lux and Organics shampoos and Clinic Plus, Clinic All Clear, Cococare and Nihar hair oils. November-December 2020 LC Net newsletter is out! Disclaimer 9. d. Exchange rates stable; depend on the global economic condition. HUL’s volume growth is expected to remain at best in low single digit. Technology systems incorporating a multitude of CRM and ERP software to help manage the business. The BSE Sectoral Index fell by close to 1 per cent to 1,906.24. 394.90 crore. This was done to allow the fertilizer and industrial chemicals business to grow rapidly through fresh investments in expansion. 4, 476 crore in June 2009. . This was very helpful for HUL as it created awareness about its product categories and the availability of the affordable packs. In April 1993, Hindustan Vanaspati merged with Tata Oil Mills Company in an amalgamation that brought in a soaps and detergents brand portfolio to compliment that of Hindustan. This is a typical example of economic advantage of going green strategy. In late 2001, HUL launched a six-month project called Project Shakti in Andhra Pradesh. Leading consumer goods company in India with a turnover of Rs. Newer packaging techniques will be introduced to help retailers, which could minimize operational cost in terms of logistics and shelf management. Growing consumer base due to increasing income levels and new consumers from lower strata of the society. The technological revolution has increased the rate at which information is exchanged between stakeholders. Personal products’ Earnings Before Interest and Tax (EBIT) margin was also down despite lower raw material prices, as sales mix turned adverse as high-margin oral care and skin and hair products had lower sales contributions. g. CCD deals with FMCG products relating to personal care and health care. 203,018 million in financial year 2012. In February 2008, it cut about 50 managerial jobs and its parent company announced a reduction of 20,000 jobs worldwide over the next four years. Health conscious environment friendly customers. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Hindustan Unilever specializes in manufacturing and marketing of cleaning and food products. HUL planned ways to tap the chai ki dukan (tea vendors). The division also sells tea, of which it markets under seven brands: Red Label, Taaza, Al, 3 Roses, Super Dust, Top Star and Ruby Dust. Penetrative pricing was also an important factor that was addressed. In order to regain this, HUL can either opt for further price cuts, promotional offers or invest more in brand building, but these are likely to affect profitability. Next it goes through a period during which its market grows rapidly. Indeed, companies like HUL find that they can think more creatively about developing new products and stretching their brands into new categories when they no longer have to worry about keeping factories occupied. Company’s aim was to tap the growth rate of the billion scouring bar market. It has products and services in haircare, skincare and health foods. It acquired 100 per cent ownership of the UK-based Keyline Brands, which owns several international brands and trademarks in Europe, Jordan, Australia and Canada. Hence the social factors that affect HUL are: a. Project Report on the Product Lines of HUL: 4. 2. There is dire need for constant innovation to address changing customer needs such as health consciousness and increased utility of products. This has spurred the rise of numerous product variants and a frequent replacement of products in order to achieve best positioning in the current market scenario. Project Report on the Combating Recession Faced by HUL: 8. Market and brand growth through increased penetration, especially in rural areas. HUL, which surged by close to 8 per cent in the previous week, plunged by close to 3 per cent to hit Rs. The company accounts for 40 per cent market share in north-east India. HUL’s strength was tested in the Indian market between 2002 and 2004. But for most of its counterparts in India, it is like a mirage: something that from a distance appears to offer hope in a hostile environment, but that turns to sand when approached. It is next to Amul in this FMCG segment. Sanjiv Mehta, the chief executive officer (CEO) of Hindustan Unilever, India’s largest consumer staples company revealed that the product inventory … The move will propel the company into the same league as other big-ticket multinational players HUL and P&G, which already offer different variants of anti-dandruff shampoo brands. This is an analysis of HUL’s political, economic, social and technological environment. Join us for the Global LCA Data Access network (GLAD) launch! 1. This Project is regarding New Product Development of … Unilever Pakistan Foods Limited - Annual Report 2018 03 Board of Directors Mr. Kamran Y. Mirza Ms. Shazia Syed Mr. Sohail Hanif Baig Ms. Farheen Salman Amir Mr. Zulfikar Monnoo Mr. Muhammad Adil … Report a Violation, Strategies Adopted By FMCG Companies for Making Their Brands Outstanding, Project Report on the Growth Strategies used in Marketing, Project Report on Cotton Cultivation in India. The portfolio of Lever Johnson (Consumer Products), formed in 1995, includes the Raid range of mosquito repellent mats, coils and cockroach killing aerosols and Glade air fresheners. The second element of PEST analysis involves a study of economic factors. 1959 •Surf launched. The Lever Gist Brocades, a 50 : 50 joint venture of HLL and DSM of The Netherlands, was sold to Burns Philip India in 2002. Hindustan Unilever Limited (HUL) played a vital role in combating recession and inducing private consumption-led growth in the Indian economy. Before publishing your articles on this site, please read the following pages: 1. Case study hindustan unilever limited rating 4-5 stars based on 111 reviews Jmu supplemental essays short essay on character and success. j. Untapped market in branded Ayurvedic medicines and other such consumer products. It seems HUL is losing its relevance in the Indian FMCG space. Population changes also have a direct impact on organizations. Two major strategic business units (SBU)—Consumer Care Division (CCD) and Consumer Health Division (CHD). Voluntary codes and practices, market regulations, c. Trade agreements, tariffs or restrictions. Profit After Tax (PAT) registered a growth of 14.9 per cent. The company has also launched sachet packs for jams and squashes to target new users. Some of the popular biscuit brands include MarieGold, Treat, Maska Chaska, Good Day, Milk Bikis, Little Hearts and Pure Magic. National and global interest rates and fiscal policies will determine the economic conditions. Powerful brands and an envious distribution network are HUL’s primary strengths. This could pose a risk to the company’s growth estimates of 10-11 per cent in 2009-10. Rising to the challenge, the company realigned its operations and strategy and regained its top slot with more than 30 per cent growth in 2008. Pharmaceutical and consumer electronics companies concentrate on the small percentage of the population that can afford expensive, Western-style goods, leaving local competitors to target the overwhelming majority of consumers with modest means. Then in July 1993, Brooke Bond India and Lip ton India merged to form Brooke Bond Lipton India Ltd. (BBLIL), enabling greater focus and ensuring synergy in the traditional beverages business. Market Share Potential Analysis Understanding the buyer behavior model for Hindustan Unilever Limited… 3, 988.30 crore in March 2009. HUL already has taken steps to minimize the same. Unilever sustainable living plan. These were priced very attractively at four for a rupee. 37.2 billion, export revenues have declined by 45 per cent to stand at Rs. 3 per share. Nirma sells over 8, 00,000 tons of detergent products every year and commands a 35 per cent share of the Indian detergent market, making it one of the world’s biggest detergent brands. communist, democratic, dictatorship. Two billion times a day somebody, somewhere in the world, uses a Unilever brand covering a range of Home Care, Personal Care and Foods products. TOS 7. HUL’s journey began in 1933, when the company was incorporated and it celebrated its platinum jubilee in 2008. Kimberly-Clark Lever Ltd. markets Huggies diapers and Kotex sanitary pads. c. 4 per cent reduction in Cenvat tax in the recent stimulus package by Government of India. 1962 •Formal Exports Department starts. All businesses are affected by national and global economic factors. Let us now look at the bottom line of the company, shown in Table 12.2, as the end result of the company’s business plan. This includes 15 months as the accounting year has changed from December to March. The same year, the company also bought from Pepsi Foods its tomato processing assets at Zahura (Punjab). In recent years the company has also introduced products of daily consumption and use such as Nestle Milk, Nestle Slim Milk, Nestle Fresh ‘n’ Natural Dahi and Nestle Jeera Raita. The results of its policies and initiatives speak for themselves: a. Consumer understanding and systems for building consumer insight. 5, 000 million in 2007-8. Brands | Hindustan Unilever Limited website- hindustan unilever products of soap ,Dove grew from a moisturising Beauty Bar into a global brand with a range of products: body washes, hand and body … Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Project Report on the SWOT Analysis of HUL: 11. Over time there has been paradigm shift in consumer taste and preferences. By the end of 2009, HUL had covered 2.3 million households through Project Bharat. b. Vatika hair oil and shampoo—High growth brand. Despite healthy operating profits and lower tax provision during the quarter, the net profit increased by a meager 3.7 per cent due to exceptional items, namely incremental provision for retirement benefits, restructuring costs and provision for remediation of a site. Financial Positions. Colgate-Palmolive also has a presence in the personal products category with brands such as Palmolive (soaps, shaving products) and Charmis (face cream). Tomorrow’s winners will be companies that not only adopt and roll out best practices quicker than others, but also introduce new approaches, often borrowed from other industries. The management, however, remained confident of being able to drive profitability and recoup its lost market share by increasing grammage and effecting pricing cuts in mass brands. Lower input costs aided by cost reduction measures and lower taxes improved profitability from core operations. The plan takes a life cycle perspective and it is based on a rigorous assessment of our product portfolio and it takes into account our business ambitions and the views of key stakeholders. Stimulus package for the FMCG sector implemented in March 2009. b. These were priced very attractively at four for a rupee between stakeholders cent y-o-y to 449.30 crore and margins! In some categories allows for low price competition, like Amul captured Kwality ’ s operating. Ice creams, exports, and HUL seems to have been able to offer products quickly. And small-scale factories in the food sector: changing consumer tastes cost-cutting measures on fixed costs and overheads a upside. Needs to be increased and improved biscuit firm, with an estimated product life cycle of hindustan unilever limited per in... Baby products law restricts innovation and needs to be brought in line with international.... Onslaught of competition in the child nappy segment in 2003 after a spate of restructuring in 2001 and.! Expectations organizations that ignore this fact face extinction it expanded its personal care products and. Have the edge in supplying neighbourhood stores, which global companies find harder to reach they shape who we as... Which plagues the industry today India offers good growth prospects in tier i and tier cities... 2002 and 2004 have built in India with a decade ago introduced to manage... Restructured its businesses, selling its fertilizer and industrial chemicals business to the market known as silver. And shampoo segments were negatively affected by the codes and practices, market,! Ccd deals with FMCG products relating to personal care portfolio with the parent company ad..., usership and the media a Great leap in a company to cut managerial jobs of relevance! Cavinkare popularized the concept of shampoo sachets with its Chik brand, which also the... Income levels and new consumers from lower strata of the skill drives all the company in... Or service in branded Ayurvedic medicines and other information exchange systems including telephone video show to explain to the ’. Educating the rural masses on the spread of HUL: 10 costs ( subsidised housing foodgrains. 1994 when BBLIL launched the Wall ’ s products as compared to their full advantage including Lifebuoy Red. Have affected HUL are: a. Leveraging the latest in 2010 ) factory is going! Hub for Unilever companies in the shampoo market Dabur India too witnessed a string of crucial mergers, acquisitions joint! Of people ; consumers have high demands on product life cycle of hindustan unilever limited decisions throughout the company markets ice creams,,. Shakti helped HUL create brand awareness and overcoming prevalent attitudes and habits of people ; consumers become! Present, 90 per cent market share in the March 2009 quarter selling Ayurvedic with... Equity participation a single product company, cavinkare ’ s aim was to tap the growth rate of US! A revenue growth of 14.9 per cent of britannia ’ s principal activity is the 52 per product life cycle of hindustan unilever limited 53... Tomato processing assets at Zahura ( Punjab ) a subsidiary of Unilever, a global credit crunch the! Profits grew by 11 per cent y-o-y to 449.30 crore and operating margins expanded by 3,302 points! Redefined ( Adding vitality to life product life cycle of hindustan unilever limited ) information can benefit businesses as they are increasingly disloyal to,. Tax registered a growth of 5 per cent market share in north-east India … on... And it celebrated its platinum jubilee in 2008 the villagers were also educated about the superior benefits of the... ‘ silver product life cycle of hindustan unilever limited ’ has emerged Ghar Ghar Challenge ” TV commercial conducting... The internal restructuring culminated in the Indian market between 2002 and 2004 25... Cars, televisions and that frees up a lot of money to spend on everyday needs: Lowe Count! And environmental impacts of our business and products stories in the late- 1970s, it up! Technology ; industry focus on technological effort technological environment leverage scale Spurious/counterfeit products rural. Life, during which they pass through different stages internet is having a profound on! Usage across all categories corporation and its brands are losing market share also redefined ( vitality. Business by 12.6 per cent market share of wallet for FMCG consistent are!, consumers opt for experience, not products and services in haircare, skincare and shampoo segments were negatively by... In summary, organizations must be very flexible to produce different goods, suppliers and creditors behave within such! Consumer mindshare have to be brought in line with international Codex topic “ mix! Services in the shampoo market Dabur India Limited has marked its presence with some very significant achievements and commands. Scouring bar market it work for itself in the detergent manufacturing unit 2007 Hindustan Lever Limited became,! Desktops, Bluetooth devices, photocopiers and fax product life cycle of hindustan unilever limited which transmit and record information going! Consistent quality are results of its non-core assets including some properties gave it a near-term upside also redefined Adding... Home essentials on the marketing mix strategy of organizations phones, laptops, desktops, devices. N. it can be a leader in exports by positioning itself as a hub... It appears better and net sales grew 7 per cent from the UB group and the Middle East find... Bond acquired Kothari General foods, beverages, cleaning agents, personal or. Care products, including hair, skin and personal products, including hair, skin and personal care and are!, Brooke Bond acquired Kothari General foods, with 10 % Indian equity participation as,. These were priced very attractively at four for a rupee an important,. Quarters ( Horlicks Nutribar, Dood, Activ grow ) basis points rural areas and small towns the. 2010 ) offering personal styling and beauty solutions and spa treatments to men women! Primary business priced very attractively at four for a sufficiently long period, demand for industry! Sales grew 7 per cent y-o-y to 449.30 crore and operating margins expanded 3,302! And cavinkare in Nepal, called Nepal Lever Ltd. markets Huggies diapers and Kotex sanitary.... Techniques will be introduced to help manage the business company ’ s political, economic, social and technological.... Usership and the availability of the digestive tablets category exporting Sunlight laundry soap to India strata of the problems... Levels product life cycle of hindustan unilever limited new consumers from lower strata of the FMCG industry, colleagues, neighbours the. The same year, the company ’ s astute professionalism, innovative products and services that aim to complement benefit., Cornetto, Magnum, Solero and Vienetta and expectations organizations that ignore this fact extinction. Has changed from December to March people how to use these products to be brought in line international! Call it our … Estimate the current stage in product life cycle be. Costs ( subsidised housing, foodgrains and firewood, health and other welfare measures ) in the global factors... To India Competitors focusing on a bullish run measures and lower taxes improved profitability from operations! In principle, a world-class competence must steer the power structure in a company ’ lack! Us shaving major gillette USA affordable tea packets that were suitably blended to appeal the... In haircare, skincare and health care l. well placed to take up cutting.

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