Hindustan Unilver Distribution System

8/9/2019 Hindustan Unilver Distribution System

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Hindustan Unilever Ltd.(HUL)

Submitted by :

Bhumika Sharma(B17)Kriti Jain(B26)

Nishant Joshi(B44)

Piyush Rawtani(B48)

Group No:15Section BMBA-IB(08-10)

AIBS


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FMCG Product Line


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About Hindustan Unilever(HUL)

Earlier known as Hindustan Lever Limited

Was formed in 1933 as Lever Brothers IndiaLimited.

With headquarters in Mumbai, HUL is the marketleader in Indian products such as tea, soaps,

detergents etc.

The companys statement of corporate purpose is tomeet the everyday needs of people, everywhere.

HUL's distribution network has 4,000 redistributionstockists, covering 6.3 million retail outlets reachingthe entire urban population, and about 250 millionrural consumers.


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Hindustan Unilever(HUL)Products


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Personal Care Products


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Personal Care Products (contd..)


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Unilever-LargestF

MCG in India


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Leadership across FMCG categories


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Launced in India in 1929.

Offers a range of soaps in different sensuous colours and worldclass fragrances.

Recently launched its two fruit extract variants- Lux Strawberry& Cream and Lux Peach

Lux

Bathing Soap launched in 1970.

Present in many avatars; Presently, Liril Soft Aloe Vera & Lime,Liril Icy Cool and Liril Orange splash.Liril

Launched in 1985 Focuses on health & hygiene.Lifebuoy

Concentrated on rural areas. Comes in 4 fragrances-Rose,Sandal,Lime & Rajnigandha.Breeze

SOAPS


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Launced in India in 1902.

High content of glycerine. Availiable in Amber variant,Green variant & blue

variant.

Pears

Launched in 1947.

Content of coconut oil for glowing skin.Rexona

Launched in India in1995 Mild Soap-Neutral pH level(6.5-7.5).Dove

Launched in 1934. Contains polyols,aloe vera,tulsi & neem extracts.Hamam

SOAPS(contd..)


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Reduces water consumption and time taken for

rinsing by 50%. Available in 3 variants: Surf Excel Blue, Surf

Excel QuickWash and Surf Excel Automatic.

SurfExcel

Launched in 1969

Voted as the Most Preferred Detergent brand inIndia.Rin

Launched in India in1987. Focused on Mass market consumers.

Less %age of soda which doesnt burn hands.

Wheel

Sold in West Bengal & Kerala in India. Orange peel extracts which gives brightness to

clothes & also improved cleanliness andfragrance.

Sunlight

Detergents


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Launched in 1978. formulated with optimum levels of UVsunscreens and Niacinamide that is known tocontrol dispersion of melanin in the skin.

It is a patented and proprietary formulation.

Fair & Lovely

Launched in India in 1947. The Pond's promise has remained the same

across 58 countriesPonds

Launched in 1870. The Petroleum Jelly is a mixture of Mineral

oils, Paraffin and microcrystalline waxeshealthy for skin.

Vaseline

SkinCare


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Launched in 1975.

Closeup was the first gel toothpaste to belaunched in India.

Latest variant-Closeup Milk Calcium

Close Up

Launched in 1993.

First toothpaste with a unique anti-bacterial agent.Pepsodent

Launched in1983. Primarily focuses on men.Axe

Launched in India in 1995. Has ingredients that combine body odour

protection and cosmetic values which are proven towork in extreme situations..

Rexona

OralCare

Deodorants


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Launched in 1964. Largest hair shampoo brand in the country.Sunsilk

Launched in 1987.

Dual shampoo not only fights dandruff , but also adds backlost nutrients to make hair healthy and beautiful.

Clinic AllClear

One of the biggest brands in India. Has grown to have a wide variety of products and services that

cover all facets of beauty careLakme

Launched in India in 2002. Provides range of Ayurvedic Healthcare & Personal Care

Products.Ayush

Shampoo

Costmetics

Ayurvedic Care


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Production Process: Bar Soaps

Step1: Batch kettle boiling method is used to

produce liquid soap & glycerine as the

byproduct.

Step2: Chemical process involving evaporation

& refining of glycerine.

Step3: Vacuum spray drying is used to convert

the liquid soap into dry soap pellets.

Step4: The dry soap pellets pass through a bar

soap finishing line. The first unit in the line is a

mixer(amalgamator), in which the soap pellets

are blended together with fragrance, colorants

and all other ingredients.

Step5: Homogenized and refined through

rolling mills and refining plodders to achieve

thorough blending and a uniform texture.


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Production Process:Detergents

SPRAY DRYING METHOD

Step1:Dry and liquid ingredients are first

combined into a tank called crutcher

Step2:The tank is heated and then pumped to

the top of a tower where it is sprayed through

nozzles under high pressure to produce smalldroplets.

Step3:The droplets fall through a current of hot

air, forming hollow granules as they dry

Step4:The dried granules are collected from the

bottom of the spray tower where they are

screened to achieve a relatively uniform size.

Step5:After the granules have been cooled,

various other things (such as bleach, enzymes

and fragrance) are added.


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Production Process:Detergents

AGGLOMERATION METHOD:

Leads to higher density powders, consists of

blending dry raw materials with liquid

ingredients. Helped by the presence of a liquid

binder, rolling or shear mixing causes the

ingredients to collide and adhere to each other,

forming larger particles.

DRY MIXING METHOD:

Dry mixing or dry blending is used to blend dry

raw materials. Small quantities of liquids may

also be added


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Production Process:ShampooStep1:Stability testing :which is primarilyused on the shampoo formula to detect physical

changes in such things as color, odor, and

thickness.

Step2: Compounding: a.)Workers follow the

formula instructions to make batches that can

be 3,000 gallons or more. They are poured into

the tank and thoroughly mixed.b.)The tanks can be heated and cooled as

required to help the raw materials combine

more quickly. Some raw materials such as

water or the primary detergents are pumped and

metered directly into the tank.

Step3:Quality Control: a.)The QC group runs

tests such as pH determination, viscosity

checks, appearance and the amount of detergent

that is in the formula and whether there is

enough preservative.

b.)After a batch is approved by QC, it is

pumped out of the main batch tank into a

holding tank where it can be stored until the

filling lines are ready.


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Production Process:Shampoo

Step4:Filling:

a.)Empty bottles are put in a large bin called a

hopper. They are then moved along a conveyor

belt to the filling carousel, which holds the

shampoo. As the bottles move through this

section of the filling line, they are filled with

shampoo.b.) From here the bottles move to the capping

machine. The caps are also put in a hopper and

then correctly aligned. As the bottles move by

the caps are put on and twisted tight.

c.)Depending on the type of labels, they can

either be stuck on using adhesives or heat

pressed. Labels are stuck to the bottles as they

pass by.

d.)Bottles they are put into boxes, typically a

dozen at a time. These boxes are then stacked

onto pallets and hauled away in large trucks to

distributors


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Production Process:ToothpasteStep1:Weighing and mixing: a.)Theingredients are manually and mechanically

weighed. This ensures accuracy in the

ingredients' proportions. Then the ingredients

are mixed together.

b.)All the ingredients are mixed together in the

mixing vat. The temperature and humidity of

vat are watched closely. This is important toensuring that the mix comes together correctly.

Step2:Filling the tubes

a.) The tube itself passes under a blower and a

vacuum before they are filled with toothpaste to

ensure cleanliness. The tube is capped, and the

opposite end is opened so the filling machine

can load the paste.b.)The tubes are filled by the filling machine.

To make sure the tube is aligned correctly, an

optical device rotates the tube. Then the tube is

filled by a descending pump. After it is filled,

the end is sealed.

Step3:Packaging and shipment

a.)After tubes are filled, they are

inserted into open paperboard boxes.

Some companies do this by hand.

b.) The boxes are cased and shipped to

warehouses and stores.


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Production Process:DeodorantsStep1:Batching: a.)ingredients are combined ina jacketed stainless steel kettle.

b.)Steam heat is applied to melt the ingredients

while the batch is being mixed. The

temperature must be carefully controlled to

avoid scorching the waxy ingredients. Once all

the ingredients have been added to the batch, it

is blended until uniform.

Step2:Filling: a.)These empty containers move

along a conveyor belt where the molten product

is dispensed through a filling nozzle.

b.)The exact process varies depending on

whether the package is designed to be filled

from the top or bottom.

Step3:Finishing:a.)Sticks may then go

through subsequent finishing

operations to ensure the surface is

smooth and that they are free from

trapped pockets of air. These operations

usually involve heating the tops of the

sticks slightly by passing them underan infrared lamp.

b.) A probe is then stuck into the center

of the stick to allow air to escape and

the surface is heated again to remelt the

product, allowing it to flow into the

void.

c.)Sticks pass through a refrigeration

tunnel that rapidly lowers the

temperature and forces them to

solidify. A top or bottom piece is put

into place to seal the container.

Sticks may pass through cleaning

stations before they are placed in

cartons for shipping.


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HUL-Quality Process

Total QualityManagement

Total Safety System

Total ProductiveMaintenance


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Total Quality Management

The company's efforts towards TQM are based on its own TQMmodel, which is supported by good management practices thatinclude:

Total employee involvement

Continuous improvements in safety, health andenvironment

Quality management

Human resource development


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Total Safety System Total Safety Systems seek to achieve a zero risk objective by

implementing a harmonious, healthy and creative workenvironment.

The system is people centered

Contribution of workers in raising safety standards of hisworking environment through improvement activities.


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Total Productive Maintenance

HUL has implemented TPM in a big way across 7 factories . Reported an 8-12 times increase in ROI

Resulted in lesser machine downtime ,reduction in line changeover times & higher morals & productivity levels .

The Silvassa manufacturing plant has 20 TPM circles.

HUL has 70 trained TPM instructors .

Increased productivity

Improved product quality

Reduced manufacturing cost

On time delivery, always

Improved work environment

Motivated employees

Improved brand image

Delighted customers


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IMPROVEMENTS

Detergents Major innovations have taken place in detergents

manufacturing.

HLL has developed a proprietary technology which reduceswater consumption and time taken for rinsing by50%. Giventhat laundry consumes upto 20% of household water, this

technology will have a big impact.

Salts

HLL scientists have developed a technology to stabilize iodine insalt.

The technology developed by HLL encapsulates iodine,protecting its bio-availability.

This is a very key benefit, given the importance of iodine,especially for the mental development of young children.


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IMPRO VEMENTS (contd)

Soaps:

Research into how soap gets its rigidity has enableddevelopment of bars containing liquid actives.

Has enabled creation of bars that are milder to skin, with uniquesensory feel and the ability to deliver functional actives ontoskin or hair.

HLLs research initiative has also been the development of atechnology to use non-conventional forest seed oils for soap-making.

Beauty products:

Research in the biology of skin pigmentation has led to theformulation of a product like Fair &Lovely Skin Cream andLotion.

It has now become a global success through exports to over 30countries.


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IMPRO VEMENTS (contd)

Ice creams: Significant technological achievement has been development of

freezers, which can maintain an operating temperature belowMinus 18 Degree Celsius, even with power cuts lasting uptoeight hours.

The benefit has been extended to mobile units like vans and

pushcarts.

Tea and coffee:

Developed a technology to manufacture Instant Tea Powder.This has been used to set up an export-oriented plant in Etah to

manufacture Instant Tea Powder for exports to Unilevercompanies abroad.

Research has also been carried out to see as to how nutrition intea can be improved and enhance.


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New Distribution Channels

Project Shakti Started in 2000.

Partnership between HUL & its consumers.

The model consists of groups of (1520) villagers below thepoverty line (Rs.750 per month) taking microcredit from banks,and using that to buy HUL products, which they will thendirectly sell to consumers.

Project Streamline

Started in 1997.

The goods are distributed from C & F Agents to RuralDistributors (RD), who has 1520 rural substockists attached tohim. Each of these substockists / star sellers is located in a ruralmarket. Project Streamline being a cross functional initiative,the Star Seller sells everything from detergents to personalproducts.


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New Distribution Channels

Hindustan Lever Network(HLN) Spread to over 1500 towns and cities, covering 80% of the urban

population, backed by 42 offices and 240 service centres acrossthe country.

The Compensation plan for HLN partners provides new excitingways of earning substantial income .

Mother Depot & Just in Time System

Certain C&FAs were selected across the country to act as motherdepots. Each of them has a minimum number of JIT depotsattached. All brands and packs required for the set of marketswhich the MD and JITs service in a given area are sent to the

mother depot by all manufacturing units. The JITs draw their requirements from the MD on a weekly or

biweekly basis


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HUL-Successes

One of the country's largest exporters.It has been recognised asa Golden Super StarTrading House by the Government.

The research labs of HUL had discovered an improved way offortifying salt with iodine, which is added to many salts forhealth benefits which was a significant breakthrough.

First to package this product in small quantities, even single usequantities, for rural customers which was an effective strategy.

HLL takes a very active role in managing production,transferring their technology, and upgrading quality andcleanliness standards at each plant.

HUL partners for manufacturing capacity and sharesdistribution assets with other HLL products, so the investmentin fixed assets for the new product results nearly in zero.


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HUL-Critical Events

Was forced to withdraw T.V. advertisements for

Fair andLovely because it depicted dark-complexioned women which

was opposed by the society.

In 01,a thermometer factory in Kodaikanal was accused ofdumping glass contaminated with mercury in municipal dumps,or selling it to scrap merchants.

In 05,employees at Sewri factory accused the supervisors ofoffensive behaviour with them which damaged the reputation ofthe organisation.

In 06,pulled out its ayurvedic brand-Ayush from thetraditional retail channel because the brand did not catch the

fancy of consumers. In 07,sold Modern Foods to Switz Group due to its poor

performance.

Controversies in past that that the company has shiftedproduction out of Mumbai to evade taxes.

Case of child labor in cotton seed production.


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HUL-Recommendations

Operational Improvements are required to be made to protectthe environment and the welfare of society at large .

Regular Inspection of plants & manufacturing facilities to checkand control the emission of particulate matter resulting inpollution of any form.

Treating their employees with respect and giving them activeparticipation in the decision making.


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Documents

Hindustan Unilver Distribution System