PROJECT SHAKTI

A BUSINESS INITIATIVE WITH

SOCIAL BENEFITS
SURENDER CHORASIYA
MBA II Sem
HUL-About the company
Hindustan Unilever Limited (HUL) formerly
known as HLL, is India's largest FMCG Public
company formed in the year 1933.
Head quarters : Mumbai
Unilever sells Foods and Home and Personal
Care brands in about 100 countries worldwide.
HUL is also one of the country's largest
exporters
PRODUCT PROFILE
Home & Personal Care : 2 categories
1. Detergents: all the detergents and dishwashers are covered in this.
For example,
Vim, Rin, Surf Exel.
2. Personal Products: this comprises of all the products related to
personal care. These are as follows:
Oral: toothpaste and toothbrush ( Pepsodent, Close Up)
Skin: soaps, talcum powder, fairness cream, body lotion,
winter cream ( Pears, Vaseline,
Fair & Lovely, Ponds)
Hair: Sunsilk, Clinic All Clear

Food : Kissan squashes and jams, Annapurna
salt and atta Knorr, kwality walls, Lipton tea,
Bru coffee.

Water purifier : Puriet Water Purifier

HUL & RURAL DEVELOPMENT
HUL linked the companys core business with rural development
initiatives as it is mutually beneficial to both the society at large and
for the company..
Rural sales contribute around 40% to HLLs overall sales
HUL has been proactively engaged in rural development since 1976
with the initiation of the Integrated Rural Development Programme in
Uttar Pradesh.

LIFEBUOY SWASTHYA CHETANA
adoption of hygienic practices among rural Indians and aims to bring
down the incidence of diarrhoea
It has already touched 84.6 million people in approximately 43890
villages of 8 states.

PROJECT SHAKTI
Project Shakti was launched in the year 2001 in
the Nalgonda district situated in Andhra Pradesh
OBJECTIVE : To create income-generating
capabilities for underprivileged rural women, by
providing a sustainable micro enterprise
opportunity, and to improve rural living
standards through health and hygiene
awareness.
4,00,000 VILLAGES

States covered by Project shakti

HOW IT WORKS
Villages with a population of about 20003000 are
selected
Personnel from HUL approach SHGs
Selection of the Shakti Amma
HUL vouches for Shakti Ammas with banks for credit
one Shakti entrepreneur
is appointed for one village &
Villages that are about 2 kilometres
apart from her village
(satellite villages ).
PRICING AND PACKAGING

Rural consumers are price sensitive
Sachets and small packs of premium products.
Price doesnt exceed Rs.5 per sachet.
Lux at Rs.5,
Lifebuoy at Rs.2,
Surf Excel sachet at Rs.1.50,
Pond's Talc at Rs.5,
Pepsodent toothpaste at Rs. 5,
Fair & Lovely Skin Cream at Rs.5,
Pond's Cold Cream at Rs.5,
Brooke Bond Taaza tea at Rs.5.
Distribution
It is the combination of the 3 ways:
Door to door selling (11% margin on sales)
Sells from own home (11% margin on
sales)
Retailers (3% margin)
averages sales :
Rs. 10,000 - Rs. 15,000/month,
profit - Rs.1,000 per month
Future plans
Project Shakti plans to extend to the states
of West Bengal, Punjab and Rajasthan.
Partnership with other non-competitor
companies to sell their products through
the Shakti network.
Nippo, TVS Motor for mopeds, insurance
companies for LIC policies.
issues
Low margins .
Difficulty in acquiring
finance
transportation
Low disposable income
(dependence on monsoon)

Vision 2010
100,000
Entrepreneurs
500,000
villages
600 million
Consumers

Shakti shall reach every home in every village, create
sustainable livelihood opportunities, and enhance the
quality of life in rural India

Now SHAKTI has been extended 80,000 villages in 15
states with 45,000 women entrepreneurs & generating
Rs.700-1000 per month to each women.

CONCLUSION
Project Shakti is enabling families to live
with dignity and in better health &
hygiene, education of the children and an
overall betterment in living standards.
it creates a win-win partnership between
HUL and the rural consumers for mutual
benefit and growth.
Profile of Indian rural Economy
Sector %
Agriculture 78.0
Manufacturing 7.1
Service 5.8
Trade 4.4
Others 4.3

Why all these program
To take people aware
To increase the consumption.
To increase the income.
To increase behavior in
Awareness & living standard Lifestyle
Self consciousness.

W
H
Y

S
H
A
K
T
I
?
?
?

It was soon felt that HUL's sales and
distribution system which had protected it
from competitors would be soon replicated by
its rivals and to maintain its edge, the
company had to increase its reach beyond
the urban markets
Carrying and forwarding agents(CFA)
more than 70% of India's population lived in
villages and made a big market for the FMCG
industry
B
E
N
E
F
I
T
S

Earnings about 7%, after 3% goes towards
principal and interest

Improves her per-capita income by about
50% to 100%

100,000 entrepreneurs by 2010