Sanjay Jog
Mumbai, June 12

Set up in small towns and mofussil areas, they are generally associated with the weaker sections of the society but self-help groups (SHGs) these days are getting attention from an entirely new quarter – big time fast moving consumer goods companies (FMCGs).

FMCG major Hindustan Lever (HLL) and ITC and child care brand leader Johnson & Johnson have lately been approaching SHGs across the country to market their products. More than 5.39 lakh SHGs were set up in 2004-05 while the target for 2005-06 is to form additional 2.5 lakh such groups. Cumulatively, there are 16.18 lakh SHGs across the country.

Sources involved with them told FE “As far as SHGs are concerned, these MNCs and even Indian players see a great potential in reaching out to the maximum number of people especially from the rural and mofussil areas. This is a growing trend as these companies prefer to pay necessary commission to SHGs for marketing their products rather than increasing overheads by recruiting dedicated personnel”.

These groups market HLL’s popular brand Lifebuoy and some other brands, while ITC in particular is engaging them for marketing various services through its e-choupal initiative. J&J is keen to involve SHGs for marketing its child care products. “Recently, HLL and J&J approached the Maharashtra government promoted Mahila Arthik Vikas Mahamandal to rope it in for marketing its various brands. The corporation is prepared to help these companies,” said the corporation’s MD TF Thekkekara.