Hindustan Unilever Lmtd. by DEEPAK Kumar

8/6/2019 Hindustan Unilever Lmtd. by DEEPAK Kumar

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HINDUSTAN UNILEVER LIMITED

Submitted by:-DEEPAK KumarRoll no 009

PGDM (2010-12), JKBs


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Hindustan Unilever Limited

Type Public company

BSE:HUL

Industry Fast Moving

Consumer Goods

FMCG)

Founded 1933

Headquarters Mumbai,India

Key people Harish

Manwani

(Chairman), Nitin

Paranjpe (CEO and

Managing Director)

Products Home &

Personal Care,

Foods, Water

Purifier

Revenue 20,869.57

crore (US$ 4.53

billion) (2008-2009)

[1]

Employees Over 65,000

direct & indirect

employees

Parent Unilever Plc

Website www.hul.co.in
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.hul.co.in/investor/investor_services_share_holding.asphttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Fast_Moving_Consumer_Goodshttp://en.wikipedia.org/wiki/Fast_Moving_Consumer_Goodshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Harish_Manwanihttp://en.wikipedia.org/wiki/Harish_Manwanihttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-0http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Websitehttp://www.hul.co.in/http://en.wikipedia.org/wiki/Indian_Rupeehttp://en.wikipedia.org/wiki/File:Hindustan_Unilever_Logo.svghttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.hul.co.in/investor/investor_services_share_holding.asphttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Fast_Moving_Consumer_Goodshttp://en.wikipedia.org/wiki/Fast_Moving_Consumer_Goodshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Harish_Manwanihttp://en.wikipedia.org/wiki/Harish_Manwanihttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-0http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Websitehttp://www.hul.co.in/http://en.wikipedia.org/wiki/Types_of_business_entity


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ABOUT COMPANY

Hindustan Unilever Limited (HUL) is India's largest fast consuming

company. The Anglo-Dutch company Unilever owns a 52% majority stake.

HUL was formed in 1933 as Lever Brothers India Limited and came into being

in 1956 as Hindustan Lever Limited through a merger of Lever Brothers,

Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in

Mumbai, India and has an employee strength of over 15,000 employees and

contributes to indirect employment of over 52,000 people. The company was

renamed in June 2007 as Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 1 million retail outlets across

India directly and its products are available in over 6.3 million outlets in the

country, nearly 80% of all retail outlets in India. It estimates that two out of three

Indians use its many home and personal care products, food and beverages.

OUR VISION

Unilever products touch the lives of over 2 billion people every day whether

that's through feeling great because they've got shiny hair and a brilliant smile,keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying

meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction forthe company

We work to create a better future every day.

We help people feel good, look good and get more out of life with brands

and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a

big difference for the world.


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We will develop new ways of doing business with the aim ofdoubling the size of our company while reducing ourenvironmental impact.

COMPANY HISTORY

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of

Sunlight soap bars, embossed with the words "Made in England by Lever

Brothers". With it, began an era of marketing branded Fast Moving Consumer

Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous

brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous

Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company, followed by Lever Brothers India Limited (1933) and

United Traders Limited (1935). These three companies merged to form HUL inNovember 1956; HUL offered 10% of its equity to the Indian public, being the first

among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the

company. The rest of the shareholding is distributed among about 360,675

individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the

company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.

India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through

an international acquisition. The erstwhile Lipton's links with India were forged in

1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limitedwas incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the

Unilever fold through an international acquisition of Chesebrough Pond's USA in

1986.


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Since the very early years, HUL has vigorously responded to the stimulus of

economic growth. The growth process has been accompanied by judicious

diversification, always in line with Indian opinions and aspirations.

The liberalisation of the Indian economy, started in 1991, clearly marked an

inflexion in HUL's and the Group's growth curve. Removal of the regulatory

framework allowed the company to explore every single product and opportunity

segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In

one of the most visible and talked about events of India's corporate history, the

erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from

April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited,

formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-

leading cosmetics and other appropriate products of both the companies.Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50%

stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark

Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers

and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever

Nepal Limited (UNL), and its factory represents the largest manufacturing

investment in the Himalayan kingdom. The UNL factory manufactures HUL's

products like Soaps, Detergents and Personal Products both for the domestic

market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances

on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired

Kothari General Foods, with significant interests in Instant Coffee. In 1993, it

acquired the Kissan business from the UB Group and the Dollops Icecream

business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two

plantation companies of Unilever, were merged with Brooke Bond. Then in 1994,

Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India

Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional

Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen

Desserts. By the end of the year, the company entered into a strategic alliance with

the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream

marketing and distribution rights too were acquired.


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Finally, BBLIL merged with HUL, with effect from January 1, 1996. The

internal restructuring culminated in the merger of Pond's (India) Limited (PIL)

with HUL in 1998. The two companies had significant overlaps in Personal

Products, Speciality Chemicals and Exports businesses, besides a common

distribution system since 1993 for Personal Products. The two also had a common

management pool and a technology base. The amalgamation was done to ensure

for the Group, benefits from scale economies both in domestic and export markets

and enable it to fund investments required for aggressively building new

categories.

In January 2000, in a historic step, the government decided to award 74 per cent

equity in Modern Foods to HUL, thereby beginning the divestment of government

equity in public sector undertakings (PSU) to private sector partners. HUL's entry

into Bread is a strategic extension of the company's wheat business. In 2002, HUL

acquired the government's remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business

of the Amalgam Group of Companies, a leader in value added Marine Products

exports.

HUL launched a slew of new business initiatives in the early part of 2000s.

Project Shakti was started in 2001. It is a rural initiative that targets small villages

populated by less than 5000 individuals. It is a unique win-win initiative that

catalyses rural affluence even as it benefits business. Currently, there are over

45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states andreaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category

with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever

Network, Direct to home business was launched in 2003 and this was followed by

the launch of Pureit water purifier in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever

Limited after receiving the approval of share holders during the 74th AGM on 18

May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales

mark the same year followed by Wheel which crossed the Rs.2,000 crore sales

milestone in 2008.


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COMPANY STRUCTURE

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods

(FMCG) Company. It is present in Home & Personal Care and Foods & Beverages

categories. HUL has about 15,000 employees, including over 1400 managers

The fundamental principle determining the organization structure is to infuse

speed and flexibility in decision-making and implementation, with empowered

managers across the companys nationwide operations.

Board of Directors

The Board of Directors as repositories of the corporate powers act as a guardian

to the Company as also the protectors of shareholders interest.

Director A Narayan

Director D S ParekhVice Chairman D Sundaram

Director Dhaval Buch

Director Gopal Vittal

Chairman Harish Manwani

Managing Director Nitin Paranjpe

Director Pradeep Banerjee

Director R A Mashelkar

Director S Ramadorai

Director Sridhar Ramamurthy
http://www.hul.co.in/investorrelations/CorporateGovernance/theboard/BoD.aspxhttp://www.hul.co.in/investorrelations/CorporateGovernance/theboard/BoD.aspxhttp://www.hul.co.in/investorrelations/CorporateGovernance/theboard/BoD.aspx


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HUL IN INDIA:-PRODUCT

A) HOME AND PERSONAL CARE:1) Personal wash

Lux BreezeLifebuoy DoveLiril PearsHamam Rexona

2) Laundry 3) Skin CareSurf Excel Fair and lovelyRin PondsWheel Aviance

4) Hair care 5) Oral careSunsilk naturals PepsodentClinic Close up

6) Deodorants 7)ColourCosmeticsAxe LakmeRexona

8)Ayurvedic Personal and health care:AyushB) FOODS1) Tea 2) Coffee 3) Foods 4) Icecream

Brooke Bond Brooke Bond Bru Kissan KwalitywallsLipton Knor

AnnapurnaC) WATER PURIFIER

Pureit.


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Brands:--

Wheel Detergent ad in rural Nepal area.

HUL is the market leader in Indian consumer products with presence in over 20consumer categories such as soaps, tea, detergents and shampoos amongst others

with over 700 million Indian consumers using its products. Sixteen of HULs

brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands

Annual Survey (2008).According to Brand Equity, HUL has the largest number of

brands in the Most Trusted Brands List. It has consistently had the largest number

of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35

major Indian brands.Its brands include Kwality Wall's ice cream, Knorr soups &

meal makers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam and Moti soaps,Pureit water purifier, Lipton tea, Brooke Bond (3 Roses, Taj Mahal, Taaza, Red

Label) tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf,

Rin and Whelel laundry detergents, Kissan squashes and jams, Annapurna salt and

atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams, Lakm

beauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos,

Vim dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe deosprays and

Comfort fabric softeners.

Leadership

HUL has produced many business leaders for corporate India; one of these,

Manvinder Singh Banga, has become a member of Unilever's Executive (UEx).

HUL's leadership-building potential was recognized when it was ranked 4th in the
http://en.wikipedia.org/wiki/M_S_Bangahttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/File:Wheel-detergent.jpghttp://en.wikipedia.org/wiki/File:Wheel-detergent.jpghttp://en.wikipedia.org/wiki/M_S_Bangahttp://en.wikipedia.org/wiki/Unilever


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Controversy

Mercury pollution

In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was

accused of dumping glass contaminated with mercury in municipal dumps, or

selling it on to scrap merchants unable to deal with it appropriately.

Skin lightening creams

Hindustan Unilever's fair and lovely is the leading skin-lightening cream for

women in India. The company was forced to withdraw television advertisementsfor the product in 2007. Advertisements depicted depressed, dark-complexioned

women, who had been ignored by employers and men, suddenly finding new

boyfriends and glamorous careers after the cream had lightened their skin.[13] In

2008 Hindustan Unilever made former Miss World Priyanka Chopra a brand

ambassador for Pond's,[14] and she then appeared in a mini-series of television

commercials for another skin lightening product, White Beauty, alongside Saif Ali

Khan and Neha Dhupia; these advertisements were widely criticised for

perpetuating racism.

SWOT ANALYSIS:--

STRENGTH

Variety of products

Distribution Network

Brand image

Quality Management

Innovation and R&D strength
http://en.wikipedia.org/wiki/Thermometerhttp://en.wikipedia.org/wiki/Kodaikanalhttp://en.wikipedia.org/wiki/Mercury_(element)http://en.wikipedia.org/wiki/Fair_and_Lovelyhttp://en.wikipedia.org/wiki/Skin-lighteninghttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-12http://en.wikipedia.org/wiki/Priyanka_Choprahttp://en.wikipedia.org/wiki/Pond's_Creamshttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-13http://en.wikipedia.org/wiki/Saif_Ali_Khanhttp://en.wikipedia.org/wiki/Saif_Ali_Khanhttp://en.wikipedia.org/wiki/Neha_Dhupiahttp://en.wikipedia.org/wiki/Thermometerhttp://en.wikipedia.org/wiki/Kodaikanalhttp://en.wikipedia.org/wiki/Mercury_(element)http://en.wikipedia.org/wiki/Fair_and_Lovelyhttp://en.wikipedia.org/wiki/Skin-lighteninghttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-12http://en.wikipedia.org/wiki/Priyanka_Choprahttp://en.wikipedia.org/wiki/Pond's_Creamshttp://en.wikipedia.org/wiki/Hindustan_Lever#cite_note-13http://en.wikipedia.org/wiki/Saif_Ali_Khanhttp://en.wikipedia.org/wiki/Saif_Ali_Khanhttp://en.wikipedia.org/wiki/Neha_Dhupia


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THREATS

From High Class Competitor

Proctor & Gamble

Pantene

Babool

Dabourlal Dent Manjan

Reckitt Benckiser

Dettol

Palmolive

Colgate, Nirma

OPPORTUNITIES Huge Market

Increasing per capital income

Increasing consumption pattern

Potential for making more impact of brand image.

Coming in technology e.g. in water purifiers

WEAKNESS

Not able to compete with local competitor in the ruralmarket

Not focus on upper class population


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Pricing policy is not good

Principal SubsidiariesBon Limited; Daverashola Tea Company Limited; Hindlever Trust Limited;

Indexport Limited; Indigo Lever Shared Services Limited; International Fisheries

Limited; KICM (Madras) Limited; Kimberly-Clark Lever Private Limited (50%);

Lever India Exports Limited; Levers Associated Trust Limited; Levindra Trust

Limited; Lipton India Exports Limited; Merryweather Food Products Limited;

Modern Food and Nutrition Industries Limited; Modern Food Industries (India)

Limited; Nepal Lever Limited (Nepal) (80%); Ponds Exports Limited; Quest

International India Limited (49%); Thiashola Tea Company Limited; TOC

Disinfectants Limited.

Principal Competitors

Nirma Ltd.;

Jocil Ltd.;

Nahar Industrial Enterprises Ltd.;

Shrihari Laboratories P Ltd.;

Ruchi Infrastructure Ltd.;

Procter & Gamble Hygiene and Healthcare Ltd.;

Amrit Banaspati Company Ltd.;

Henkel SPIC India Ltd.;

K S Oils Ltd.;

Ultramarine and Pigments Ltd.;

Vashisti Detergents Ltd

Documents

Hindustan Unilever Lmtd. by DEEPAK Kumar