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Corporate Information Introduction Chronology Products Demand Forecast Market Share Present Stature Competitors Policies Contribution to Society Survey
Registered Office Hindustan Unilever Limited, 165/166, Backbay Reclamation Mumbai – 400 020 Tel : +91 – 22 – 39830000 Fax no. : +91 – 22 – 22026712 Ashok.K.Gupta, Email : email@example.com Tel nos. : +91-22-39832567/ 39832358 / 39832557 Lovelock & Lewes, Chartered Accountants 252, Veer Savarkar Marg Dadar, Mumbai- 400 028 Crawford Bayley & Co. State Bank Building N.G.N. Vaidya Marg Mumbai – 400 023 Karvy Computershare Private Limited Unit : HINDUSTAN UNILEVER LIMITED Plot No. 17 to 24, Vittalrao Nagar, Madhapur, Hyderabad – 500 081. Phone : +91- 40 23420818-823 Fax : +91- 40 23420814 Email : firstname.lastname@example.org Website : www.karvy.com Unilever India Exports Limited Bon Limited Unilever Nepal Limited Pond’s Exports Limited Daverashola Estates Private Limited Jamnagar Properties Private Limited Shamnagar Estates Private Limited Brooke Bond Real Estates Private Limited Hindustan Unilever Field Services Private Limited Levers Associated Trust Limited Levindra Trust Limited Hindlever Trust Limited Executive Director (Legal) and Company Secretary
Registrar and Share Transfer Agents
Hindustan Unilever Limited (abbreviated to HUL)) formerly Hindustan Lever Limited, is India’s largest consumer products company and has an annual turnover of over Rs 13,000 crores (calendar year 2007). It 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 for indirect employment of over 52,000 people. The company was renamed in late June 2007 to “Hindustan Unilever Limited”. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of India’s leading business magazines. The rating was based on a compilation of the magazines annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s brands featured in the AC Nielsen-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’s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). Hindustan Unilever distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e. nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out of three Indians use the company’s products and HUL products have the largest consumer reach being available in over 80 per cent of consumer homes across India. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007 .
Lux and Vim. In 1931. Brooke Bond & Co. visitors to the Kolkata harbour noticed crates full of Sunlight soap bars. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.10% equity in the company. The liberalisation of the Indian economy. began an era of marketing branded Fast Moving Consumer Goods (FMCG). always in line with Indian opinions and aspirations. India Limited was formed. With it.CHRONOLOGY In the summer of 1888. Hindustan Vanaspati Manufacturing Company. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. and in 1977 Lipton Tea (India) Limited was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. By 1903. embossed with the words "Made in England by Lever Brothers". Since the very early years. The erstwhile Lipton's links with India were forged in 1898. These three companies merged to form HUL in November 1956. Soon after followed Lifebuoy in 1895 and other famous brands like Pears. Pond's (India) Limited had been present in India since 1947. the company had launched Red Label tea in the country. being the first among the foreign subsidiaries to do so. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). started in 1991. The rest of the shareholding is distributed among about 360. Unilever now holds 52. Unilever set up its first Indian subsidiary. clearly marked an inflexion in HUL's and the Group's growth curve. The growth process has been accompanied by judicious diversification. HUL offered 10% of its equity to the Indian public. In 1912. HUL has vigorously responded to the stimulus of economic growth.675 individual shareholders and financial institutions. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. The erstwhile Brooke Bond's presence in India dates back to 1900. without any constraints on production capacity. Unilever acquired Lipton in 1972. .
with significant interests in Instant Coffee. acquisitions and alliances on the Foods and Beverages front. In one of the most visible and talked about events of India's corporate history. acquisitions and mergers. the erstwhile Brooke Bond acquired Kothari General Foods. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. Unilever Nepal Limited (UNL). formed a 50:50 joint venture. In 1993. Tea Estates and Doom Dooma. with effect from January 1. 1996. . Lakme Limited. The two also had a common management pool and a technology base. 1993. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. to market Lakme's marketleading cosmetics and other appropriate products of both the companies. and its factory represents the largest manufacturing investment in the Himalayan kingdom. Kimberly-Clark Lever Ltd. effective from April 1. deregulation permitted alliances. HUL and yet another Tata company. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. enabling greater focus and ensuring synergy in the traditional Beverages business. Finally. Detergents and Personal Products both for the domestic market and exports to India. BBLIL merged with HUL. In 1992. The two companies had significant overlaps in Personal Products. Speciality Chemicals and Exports businesses. The UNL factory manufactures HUL's products like Soaps. 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. two plantation companies of Unilever. HUL has also set up a subsidiary in Nepal. Then in July 1993. The amalgamation was done to ensure for the Group. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. In 1995.Simultaneously. which markets Huggies Diapers and Kotex Sanitary Pads. As a measure of backward integration. Lakme Unilever Limited. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. were merged with Brooke Bond. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. By the end of the year. besides a common distribution system since 1993 for Personal Products. Subsequently in 1998. The 1990s also witnessed a string of crucial mergers.
HUL acquired the government's remaining stake in Modern Foods. HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. In January 2000. In 2003. a leader in value added Marine Products exports. . In 2002. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners.benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. in a historic step. HUL's entry into Bread is a strategic extension of the company's wheat business. the government decided to award 74 per cent equity in Modern Foods to HUL.
v. ii. iii. vii. ix. vi. AXE CLOSE UP DOVE FAIR & LOVELY LAKME LUX PEARS PEPSODENT PONDS SURF EXCEL . viii.PRODUCTS i. iv. x.
Axe. it is a world leader in male toiletries. The youth view it as an icon which introduces many 'firsts' to their world of music and dance – like the first "World's Longest Dance Party" and the first ever 'Axe Voodoo Island Party' . Consumers associate a lifestyle of cool clubs. fashionable and stylish by young men was launched in India in 1999. Axe is available in five fragrances: Java. Pulse. Dimension. Axe has a mix that is completely harmonised globally – from its proposition and communication to the product. cool music and cool fashion with Axe. Available in more than 60 countries around the world. Voodoo and Phoenix. Axe has become the leading male deodorant brand in India within just one year of its launch. as available on the shelf. the deodorant that is considered cool.
with white milk calcium nutrient on the inside and a refreshing blue gel on the outside. Closeup became the first Gel toothpaste with Fluoride in the Indian Market! The brand umbrella also includes Closeup Lemon Mint. Closeup was re-launched with a bang. Ever since its launch in 1975. The first brand targeting youth in the oral care market. with an edgy and youthful image which stays relevant till date. the perfect combination of ingredients for fresher breath and stronger. .Closeup is the original youth brand of India. In 2004. gel toothpaste with the whitening benefits of lemon. Mouthwash and Micro whiteners. Closeup has broken every rule in the book on how toothpastes should behave! Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format. whiter teeth. Fluoride. And this time it was packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins.
Dove is formulated to be pH neutral (pH between 6. it is about how you feel. for example. Dove has been extended to many other countries. Unilever has launched a moisturising bodywash.Dove soap.5 and 7. The skin's natural pH is slightly acidic 5. It provides a refreshingly real alternative for women who recognise that beauty is not simply about how you look. which was launched by Unilever in 1957. with pH higher than 9. Ordinary soaps tend to be alkaline.5-6. facial cleansers and shampoos and conditioners. This makes it suitable for all skin types for all seasons. deodorants. body lotions. providing a comprehensive range of solutions to bring out true inner beauty. While Dove soap bar is widely available across the country.5) and to be mild on skin. Globally. . has been available in India since 1995. Dove Body Wash is available in select outlets. Since the 1980s.
Fair & Lovely Oil control Fairness Gel. Specifically. based on pioneering research in the science of skin lightening to develop Fair & Lovely. The formulation is patented. reversible and totally safe.and its use in cosmetic formulations has been known for various end benefits. It is a patented and proprietary formulation. Based on a revolutionary breakthrough in skin lightening technology. Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. Niacinamide (Vitamin B3) is a water-soluble vitamin and is widely distributed in cereals. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour through a process that is natural. Fair & Lovely Anti-Marks cream. including Ayurvedic Fair & Lovely Fairness cream. fruits and vegetables . Its formulation acts safely and gently with the natural renewal process of the skin. which is more relevant to Asian skin than plain SPF protection creams sold in the West. The Hindustan Lever Research Centre (it is among the largest research establishments in India's private sector. Fair & Lovely was launched in 1978. making complexion fairer over a period of six weeks. including pharmaceutical companies.A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. The brand today offers a substantive range of products. Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacinamide that is known to control dispersion of melanin in the skin. this patented formulation offers a high UVA protection. which has been in the market for 25 years. . with facilities in Mumbai and Bangalore) deployed technology. The latest has been the Perfect Radiance. a complete range of 12 premium skincare solutions from Fair & Lovely. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection against UV rays of the sun.
that of skincare and cosmetic products. face and skin. At a time when the beauty industry in India was at a nascent stage. Lakme. nails. eyes. These include products for the lips. India's first beauty brand was born. as India took her steps into freedom.Half a century ago. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. Armed with a potent combination of foresight. Lakme has grown to be the market leader in the cosmetics industry. research and constant innovation. Lakme tapped into what would grow to be amongst the leading. high consumer interest segments in the Indian Industry . and arm the consumer with products to pamper herself from head to toe. and services like the Lakme Beauty Salons .
Lux Believes in passion for beauty . offers an exciting range of soaps and Body Washes with unique elements to make bathing time more pleasurable. One can choose from a range of skincare benefits like firming. Lux recognized the need for a compelling message about beauty that would resonate with women of today.It continues to be a favourite with generations of users for the experience of a sensuous and luxurious bath. Lux in step with the changing trends and evolving beauty needs of the consumers. .Since 1929. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux has offered a range of soaps in different sensuous colours and world class fragrances. fairness and moisturising. Since its launch in India in the year 1929. Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious Chantilly cream that melts down into your skin making it soft and smooth. Lux believes that femininity shouldn’t be denied. Lux is a beauty soap of film stars.
Introduced in India in 1902. It is gentle enough. a green variant for oil control and a blue variant for germ protection . the soap is mellowed under controlled conditions over weeks. At the end of this maturing process. Pears is manufactured like any other soap. After manufacturing. but unlike in conventional soaps. That is the cause if its unique transparency. it is individually polished and packed in cartons. Pears soap has no equal. the glycerine is retained within the soap.the traditional amber variant. Today Pears is available in three variants . even for baby's skin.
The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat. Pepsodent packs included a Germ Indicator in February-May 2002. in October 2002. Pepsodent connects directly with kids and their parents. was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. demonstrating that this makes their teeth vulnerable to germ attack. .Pepsodent. Pepsodent offered Dental Insurance to all its consumers to demonstrate the confidence the company has in the technical superiority of the product. which allowed consumers to see the efficacy in fighting germs for themselves. Pepsodent also includes a range of toothbrushes. As a follow-up. Pepsodent has always worked in the direction of an overall awareness of dental health. Pepsodent's most recent campaign aims at educating consumers on the need for germ protection through the night. launched in 1993.
Pond's Cold Cream and Vanishing Cream marked the brand's evolution to a beauty icon. Mumbai. From one man in a tiny home-made laboratory. a pharmacist from Utica New York. a witch-hazel based wonder product. the Pond's promise has remained the same across 58 countries . By this time the Pond's brand had built up a powerful international presence. In 1914. to today's state of the art R&D facilities led from Bangkok. In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased ChesebroughPond's.to deliver products that make a real difference to women's skin and the way they live their lives. . New York and Tokyo. introduced 'Pond's Golden Treasure' in 1846.Pond's has been synonymous with skin care in India since 1947. The impressive track record of Pond's began when Theron T Pond.
This means that mothers now have the freedom to let their kids experience life without worrying about stains.it reduces water consumption and time taken for rinsing by 50%.A pioneer in the Indian detergent powder market. to answer the constantly changing washing needs of the Indian homemaker. . Surf Excel hai na. It is a significant benefit. Today Surf Excel offers outstanding stain removal ability on a wide range of stains. Surf Excel is available in 3 variants: Surf Excel Blue. So whatever be the need. Surf Excel quick wash is powered with a path-breaking technology. given the acute water scarcity in most of India. Surf Excel Quick Wash and Surf Excel Automatic. Surf Excel has constantly upgraded itself over the years.
shampoos. toiletries.. Long a provider of low cost consumer goods. Raw material prices for palm oil and other chemicals increased of 31% from Nov'07-Apr'08.6% stake in the company. Unilever Plc holds a 51. Kissan andBrooke Bond in Foods and Beverages Segment are some of its top brands. coffee and branded flour. skin creams. In 2008. The company has a distribution channel of 6. detergents.2% so Hindustan has accrued higher revenue on lower volume sales in late 2008. Its Soaps and Detergents business was its largest contributor to revenues with 46% of total revenues where as Personal Care products contributed the most (46%) towards EBIT (Earnings before Income Tax). and food staples. early 2009.02% year over year (yoy) growth in revenue at Rs 16660. HUL has recently launched products in its high end segments. palm oil prices declined 62. it launched Ponds Age Miracle. of India has a positive effect on demand of consumer goods along with a shift in demand towards high end lifestyle products. spread across 20 distinct consumer categories. Increase in per capita income in urban.]HUL's brands. 'Pepsodent and Ponds in Home and Personal Care segment and Lipton.38 crores during the year ended Dec'08.3 million outlets and 35 major Indian brands. the largest FMCG Company in India by revenues was formed by merging three subsidiaries of Unilever in 1956.Surf Excel. however. (Bombay Stock Exchange: 500696) makes fast-moving consumer goods (FMCG) such as detergents. which led the company to implement a price hike by a weighted average of 10% from April to June 2008 in order to protect its margins. Company Overview HUL. From April to October 2008. It owns 35 major Indian brands. as well as rural areas. At present. HUL’s portfolio of products covers a wide spectrum including soaps.DEMAND FORECAST Hindustan Unilever Ltd. tea. HUL has consistently had the most number of brands in the Top 10 list for the most trusted brands in India from 2003 to 2008. HUL recorded 20.Vaseline range of products . toothpastes.
2%) towards the EBIT which is due to high margins and low penetration of the market. re-launches of products and a hike in product prices.in skin care category and Axe-Dark Temptation in personal care segment as part of their expansion into higher end products.7% in CY'07) in its soaps and detergents business and investment in IT and water purifier business in CY 05-06.36% in CY'07 (Calendar Year 2007) and 9. The net Income of the company has not increased at the same pace as revenues because of a decline in margins (from 18. Soaps and Detergents business contributes highest (46%) towards revenues followed by Personal care products (26%).38% in CY'06 can be attributed to aggressive launches. Despite being highest revenue generator soaps and detergents business is not the most profitable segment. Crore) There is an insignificant change in company's revenue mix in CY04-07 period. Personal care contributes highest (46.[ HUL Total Income and Net Profit over the years (in Rs.5% in CY'04 to 16. Business and Financial Metrics[ Sales growth of 13. .
HUL Total Sales Revenue distribution across segments (in %)  Discussion FY'09 (Financial Year 2009) : HUL has shown steady sales growth by 19-20 % in Jan .2% in Q1CY08 (1st quarter Calendar Year 2008) to 6. Volume growth has decreased from 10. EBIT margins fell by 30bps to 12.8% in Q3CY08.Sep'08 but it was largely price led due to a hike in product prices in the previous two quarters .9 due to inflation of Commodities prices but net profit saw a raise to 34% on account of income from sale of properties. Business Segments[ .
10.3 mn outlets) in the country. jams. launched in 1995.Thats why this is the current focus area for the company.2% EBIT) : This business which comprises mainly skin care. Ice Cream(1% Revenue. Low penetration and consumption of personal products has sustained these categories' high growth rates. detergent liquids.6%EBIT) : This segment includes include Ice Creams and Frozen Desserts. With the aggressive relaunch of Brooke Bond. which is low margin business. ketchups and salts.Sales of the segment grew sales by 13.etc.3% EBIT) : HUL's beverages business is operated through the Brooke Bond and Lipton brands for packet tea and Bru brand for coffee.8% EBIT) :In spite of having one of the best distribution networks (coverage of 6. detergent powders.It is highest contributor to HUL’s EBIT at 47%.Kwality Wall's. 0.9% in H1CY08 and the new launches in the Ponds and Dove range contributed to the profitability of the segment.7% in CY'02 to 13. scourers.9% and 20. Foods (4% Revenue. Beverages (11% Revenue.3% in Q2CY08 Profitability margins which declined from 25.6% in Q4CY06 to 38. is the company's . Taj Mahal and Taaza. Presence in the foods category is mainly through soup mix. 0. the company has been able to arrest the decline in its market share.6% (CY'07). hair care and oral care is the most profitable segment for HUL. Soaps and Detergents (46% Revenue.3% in CY07 and H1CY08 respectively. This segment has shown a revenue growth of 20. Fabric Wash has shown strong growth in this year with the market share moving up from 34. HUL is clearly keeping a low profile in the staples category. 46. Personal Care Products (26% Revenue. detergent bars. 44% EBIT): This segment includes Laundry and Personal Wash products like soaps.Overall margins have declined to 15% in CY'07 from 20% in CY'04 due to hike in Coffee bean prices.Foods margin dipped partly due to launch related costs for Amaze brain foods (launched in two southern states during the January–March 2008 quarter). Chinese meal maker. the food business has never constituted a big part of revenues.7 % in CY'05 due to pricing actions from P&G in the Laundry segment have slightly recovered to 15.
as well as sales of soaps and detergents. It has already exited the low-margin shrimps and castor business. master brand for ice cream. Castor. beverages and foods etc. Due to inflated input cost in Soap and Detergents division EBITDA . Water business. For HUL. HUL revenue distribution across segments for CY'07  Trends and Forces Increasing raw material prices drives HUL to raise its prices[ Raw materials constitute a big chunk (63%) of input cost for FMCG sector companies. personal products. It has launched Moo brand that boosts children’s calcium levels in the June quarter of CY07. Exports : Exports include sales of Marine Products. It has seen a growth of 41.Palm Oil and Chemicals contribute 59% of total raw material cost. by the Exports Division.5% as Pure It (a water purifier product) increased its reach to more than 600 towns. etc. Property Development. Agri seeds. Ayush services etc. Others: This section includes Chemicals.Water purifiers. Exports are the lowest-margin business for the company.
health foods etc. The first steep increase in the prices (31% in Nov'07-Apr'08 period) of key raw materials such as palm oil. Increasing per capita income drives FMCG sector growth[ Per capita Income in India has doubled in 4 years 04-07. HUL has launched 50 paise shampoo sachets in 2007. deodorants. where penetration levels are low as compared to urban areas. soaps. hike in minimum support price for crops and flood inflation has helped farmers with rise in income. Among many product launches. Rural India. hair care. Raw material and packaging materials have fallen sharply from their highs recorded in Sep'08. But recently softening Inventories . Factors like loan waiver of farmers. Targeting low income group people.7% in CY07. Indian customers’ for FMCGs are shifting towards higher lifestyle categories like skin care. raw tea. convenience foods.1% from Aril'08 prices. LAB . soda ash. coffee and crude oil derivatives has led the company to implement price hikes in competitive segments like toothpaste.2% and 40. detergents and shampoo.(earnings before income tax and depreciation) margins fell from 19. Company's premium products are now sold thorugh Modern Trade. Along with these. The weighted average price increases were 8% in January-March 2008 period and 10% in April-June 2008.Linear Alkyl Benzene. Palm oil and Brent Crude have fallen by 62. The purchasing power in rural areas has increased and spending behavior is also changing which shows a high growth potential for FMCG companies here. Also it has entered into a Joint venture with Smollons . caustic soda. HUL has adapted itself to changing consumer spending patterns. re-launch of Axe deodrants and launch of Ponds Anti Ageing cream are few to be mentioned in high end price spectrum in Personal care. As their incomes and standards of living improve.Raw Materials prices in the last 2-3 months have provided respite to FMCG sector companies. The benefit of fall in raw material prices will be accured later when high cost inventory will be replaced by a cheaper inventory. Dove hair care products.7% in CY03 TO 13. has a large consuming class with 41 per cent of India's middle-class and 58% of the total disposable income.
.3 0.0 12.1 6. ice-creams and skin care segments respectively which are lower than that of China.S.4.0.0 0.2 5.2 1.4 0. customer base.0.[ In a volume driven and competitively intense environment with competition also from local players FMCG players are aggressively promoting their brands to gain product awareness.6. Low consumption coupled with increase in per capita income poses as a growth opportunity for consumer products companies.3 US$ in detergents.9 China 2. Per Capita consumption of personal care products in India is one of the lowest among developing economies of the world.7.0 India 1.4 and 36. These factors eat up the profitability margins of the companies.6 in categories mentioned before.Holdings of South Africa to increase its capabilities to meet the merchandising demands in Modern Trade. 49. and their shares of the customers’ wallets.2 3. To facilitate launch new products and relaunch of existing products companies are increasing their research and development expenditure.3 0. India has one of the lowest levels in per capita consumption of consumer goods among developing economies of the world. Consumer goods consumption levels (in US $) ' Detergents Shampoo Skin Care Icecream Brazil 12.3. 6.2 and 0. . Brazil and Indonesia.0 Indonesia 1. It has per capita consumtion levels of 1.9 1. shampoo. a developed country.8 1. Consumption levels in the U. are 16.2 Highly Competitive FMCG Sector limits profit margins of HUL.0 3.
. also feature in the top 10 advertisers list. other FMCG players. Second largest spending is Rs 240 crore by a telecom company.HUL has consistently been the top advertisement spender over the years with expenditure of Rs 650 crore in the year 2008. Pricing scenario in current time is in favor of companies but in past due to pricing war with P&G in Soaps and Detergents. HUL has increased its advertising expenses by 26. HUL's magins in the segment declined from a high of 25.7% in CY05.16% in the same year.Also the money spent in Research and Development which facilitates new product launches and re-launches of existing products has seen a raise by 38.56% in CY'07.7% in CY02 to 13. P&G India and Colgate-Plamolive.
Godrej. According to Brand Equity. It has over 35 brands. Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World. It is The Market leader in number of products. Dabur. Sixteen of HUL’s brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). HUL has the largest number of brands in the Most Trusted Brands List.MARKET SHARE Total Turnover (in US$) 3500 3000 2500 2000 1500 1000 500 0 Total Turnover (in US$) This chart explains more about the market share of HUL. HUL or Hindustan Unilever is the number one Indian Brand. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps. one of India’s leading business magazines. Marico etc. . Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. Tea. In 2007. The Total turnover of Hul was 2961 million US$ way ahead of its competitors like Nestle.
The market share in Packet tea category is very competitive.Market share 70 60 50 40 30 HUL 20 10 0 Competitors This is the market share of various divisions of HUL products.8 %.4 % of market share while their competitors share was 8. while Other competitors managed 36.2%.4 %.1% of marketshare .5 %.The above Graph indicates the gap between HUL & other competitors.In case of shampoos HUL was number one but Its competitors are also more. In case of Dishwsh Hul retains Majority with 56. In the division of fabric wash Surf excel and Rin are the market leaders. sunsilk are the main products in this category. It has 63. But HUL has an slight edge over its competitors with brands like Brooke bond & Lipton.8 %. Kissan jam is the market leader in category of Jams.In case of skin care HUL was again the number one brand with market share of 55 % while its competitors share was 7.Brands like Lux. Brands like clinic all clear..6 % of market share while other brands has 5.6 %.The value of the graph is 100 basis points.In case os personal wash HUL brands cross majority of market share of 50%. Its value is 37% while its competitors value is13. In category of Coffee Brooke bond Bru has majority of market share of 47. Dove. In the category of Talcum powder Brands like Ponds and Aviance helped HUL maintain marketshare of 59. Pears are very popular.
and now has facilities in Mumbai and Bangalore.500 redistribution stockists.675 individual shareholders and financial institutions. covering 6. Lakme. branded staples. and personal care with brands that help people feel good. Pond's. Kissan.soaps. personal products. and about 250 million rural consumers. The operations involve over 2. coffee. which incorporates latest technology in all its operations. it has been recognised as a Golden Super Star Trading House by the Government of India. ice cream and culinary products. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and . hygiene. Pepsodent. Sunsilk. The rest of the shareholding is distributed among 360. The mission that inspires HUL's over 15. Kwality Wall's – are household names across the country and span many categories . detergents. Brooke Bond. tea. HUL's distribution network.000 employees. KnorrAnnapurna. is to "add vitality to life. Lux. Fair & Lovely. Rin. Unilever.like Lifebuoy." HUL meets everyday needs for nutrition. which holds 52.10% of the equity. HUL is also one of the country's largest exporters.3 million retail outlets reaching the entire urban population. Wheel. touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.13718 crores. look good and get more out of life. Close-up. comprising about 2. including over 1. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs. HUL has traditionally been a company. Clinic.PRESENT STATURE Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company.000 suppliers and associates. Surf Excel.300 managers. It is a mission HUL shares with its parent company. They are manufactured over 37 factories across India. The Hindustan Unilever Research Centre (HURC) was set up in 1958. HUL's brands .
The vision is to make a billion Indians feel safe and secure. In 2001. It is also involved in education and rehabilitation of special or underprivileged children.000 villages and directly reaching to 150 million rural consumers. HUL is focusing on health & hygiene education.technologists. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. and creating access to relevant information through the iShakti community portal. thereby improving their livelihood and the standard of living in rural communities. it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. and rural development. If Hindustan Unilever straddles the Indian corporate world. and water management. and relief & rehabilitation after the Tsunami caused devastation in South India. women empowerment. most recent being the village built by HUL in earthquake affected Gujarat. Shakti also includes health and hygiene education through the Shakti Vani Programme. reaching out to 135. HUL is creating micro-enterprise opportunities for rural women. many with post-doctoral experience acquired in the US and Europe. Shakti. Through Shakti. 676 villages across India. The program now covers 15 states in India and has over 45.000 women entrepreneurs in its fold. It has already touched 120 million people in approximately 50. HUL believes that an organisation's worth is also in the service it renders to the community. the company embarked on an ambitious programme. . care for the destitute and HIVpositive.
COMPETITORS PRODUCT PROFILE OF SOME OF THE COMPETITORS: The Fiama Di Wills range of soaps has been launched under the sub . the ranges offer a unique value proposition of bringing together ingredients that provide multiple benefits of Nourishment. reflecting the philosophy of the brand. ITC launched two new ranges of soap . In February 2008.brand SkinSense. Protection and Hydration in a single product. which helps enhance retention of skin proteins making skin look beautiful and youthful. Backed by consumer insights. This is a gentle caring soap. Hence providing the ever discerning consumer complete care. The unique carton pack has been developed by ITC’s design team to provide a novel consumer experience.Vivel Di Wills and Vivel -to cater to the skincare needs of a wide range of consumers. The packaging. The first variant to be introduced in this range is Soft Green. fuses multiple benefits. .
Men and women alike desire fairness. Elder Pharmaceuticals Ltd and Shahnaz Husain. has created “Fair & Handsome” a fairness cream for Men with a breakthrough Five Power Fairness System to make skin fair and handsome in 4 weeks. while the conception and composition is done by Husain. is one of the leading companies in India in the skin care sector. herbal beauty specialist. it is believed to be the key to a successful life. had entered into an agreement to launch four skin care products during 2006-2007.Although the market trend shows that these ITC brands are no competition to Pears right now. 'Fairone Fairness Cream' was launched jointly by Elder Pharmaceuticals and Shahnaz Husain. Elder Pharmaceuticals Ltd. Well for women the market is loaded with fairness cream but for men there are very few creams. But if ITC improves its distribution network then these brands can be a threat to HUL. . Emami Fair and Handsome is one such cream for men. The company is a major manufacturer of aloe vera-based skin care products. Emami herbalists and dermatologists from India along with Activor Corp USA. Elder undertakes the manufacturing and marketing of the products. A fair complexion has always been associated with success and popularity.
It claims to work from within to provide a distinctly fairer. .in a new packaging. that are sold around the world. talc and deo sprays in three exciting fragrance . glowing complexion much like that of Kashmiri beauties in just 4 weeks Triple sunscreens also retain your fairness and reduce the harmful effects of UV rays. The Fairever claims to have consumers as a woman who is the young and contemporary woman of today.Classic. following that a national launch was made in 1999. Cinthol offers a range of soaps. Natural Fairever was initially launched in A. Cologne and Sport . Fairever is the brand of CavinKare Pvt Ltd(CKPL). It comes in a pack of 50g and 100g. fructose and glucose. This cream has a blend of saffron and milk. Cinthol talc is a product of GODREJ Consumer Products Ltd (GCPL). in 1998. and most recently.P. Nutritioniste. including the Fructis line. talc and deodorant with Bollywood actor Hrithik Roshan as its new brand ambassador.Garnier is a division of L'Oréal that produces hair care products. vitamin B3 and B6. GCPL identifies Cinthol as its power brand. GCPL has launched new Cinthol range of soap. skin care products under the name. One of their key ingredients is a fruit concentrate used in all their products.55. She has strong values and believes in using a natural product that will help bring out her natural beauty from within. It is a combination of fruit acids. The 50g pack costs Rs.
80. Spinz talc is CavinKare Pvt Ltd(CKPL) brand.R.Cinthol has come out with a combi pack for this summer. who loves to have a lot of friends with whom she spends time. Easy-going and fun-loving.P Rs. Spinz Talc is packed in sizes of 20 g. . 100 g and 400 g and comes in three fragrances: Exotic Exchante Sandal The Spinz talc’s target are girls of around 18 to 26 years old from SEC A and B. 50 g. It is in pack of 300g + 100g for M.
50 1.55 19.85 920.65 5.074.01 Sales Turnover 20.573.Competition Last Price HUL Dabur India Colgate Godrej Consumer Godrej Ind Marico P and G Gillette Emami Jyothy Labs 290.37 67.02 588.770.80 1.41 117.496.601.01 350. Godrej Consumer products.322. The Net Profit stood at whooping 2500 crore approximately.15 114.91 1.628.10 676.085.75 163.45 222. HUL has Dominated the FMCG market but now faces a lot of competitors like ITC .20 352.82 1.40 140.56 290.00 9.01 880.85 645.723.88 2.80 5.22 161.10 Market Cap. Marico etc.46 877.191.17 220. (Rs.64 425.97 1.921.117.04 5.483.417.84 651.45 373.04 2.088.489.63 2.999.59 3.) 63.12 131. .56 2.05 83.21 346.74 828. HUL is the leader of the market with maximum market capitalization and maximum sales turnover.51 The above table shows the competition among the Indian FMCG brands.36 40.40 324. Procter & Gamble.88 12.00 669. cr.98 599.85 Total Assets Net Profit 2.104.33 142.55 414.
the Company recognises its responsibility to ensure safety and protection of health of its employees. Processes. These Principles have the same status as the Company's Code of Business Principles: .POLICIES Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and customers. which focuses on People. This Policy document defines the vision. employees. research laboratories and offices during work and work related travel. contractors and visitors in all its operating sites. required actions and scope of the policy application as well as the responsibility for execution. sales and distribution. We will realise our Vision through an Integrated Safety Management approach. Technology and Facilities. Safety Principles HUL's Occupational Safety and Health Policy is based on and supported by the following eight Principles. Towards this. aim. In doing so. supported by demonstrated leadership and employee commitment at all levels as the prime drivers for ensuring a safe and healthy work environment. Systems. which include manufacturing. Mission We will bring safety on top of mind for all employees and will integrate it with all business processes. the Company is committed to exhibit the highest standards of corporate behavior towards its consumers. the societies andthe environment in which we operate. principles. Vision Our vision is to be an injury free organisation.
canteen. All injuries and occupational illnesses are preventable All operational exposures can be safeguarded Safety evaluation of all business processes is vital Working safely is a condition of employment Training all employees to work safely is essential Management audits are a must Employee involvement is essential All deficiencies must be reported and corrected promptly Note: In order to facilitate operationalisation of the Safety Principles. Scope of Application This section defines the scope of application of this Policy (where.e. a separate document has been prepared. Warehouses In-house purchased services i. which covers: a) Safety Principles b) Success Criteria c) Illustrative KPI This document will form the basis for the concerned Line / Organisations in developing KPI's for their respective functions / sites. . Where does this policy apply? All own/leased sites – Manufacturing. travel desk. Research/Innovation. Offices. when and to whom is this Policy applicable). Depots. IT implementation etc.
Such SHE responsibilities shall form an integral part of overall job responsibilities of all employees. Quality is fundamental to our Business Success . All employees are required to ensure strict adherence. Implementation Responsibility HUL Management at all levels is responsible for Policy implementation. transporting. conferences. selling or disposing off of our products Who does the policy apply to? All employees at business anywhere Contractors and visitors while at our own sites When does it apply? At work (our employees. Rules and Procedures on Occupational Safety and Health. using. contractors and visitors) Travel between home and work of our employees Business related travel including stay out of headquarter All Company organised business events i. including those that may be specific to a site are integral to this Policy and its implementation. Sites of associates with HUL holding > 24% while carrying out operations of making. training programmes. Every site shall prepare a responsibility matrix with respect to this Policy. business related get-togethers. handling. annual sports etc.e. All Unilever and HUL Standards.
look good and get more out of life. And by applying consistently high standards. • Putting consumers and customers at the heart of our business We actively engage our consumers and customers. Our Quality Policy describes the principles that everyone in Unilever follows. We have stringent mandatory quality standards in place against which compliance is verified through regular audits and self assessments. To win consumers’ confidence and loyalty. We understand the different needs of our consumers and customers and strive to develop and deliver superior brands to ensure that they’re the preferred choice. And a key requirement is building in the quality expectations of our consumers into our products. Principles of the Quality Policy • Putting the safety of our products and our consumers first. translating their needs and requirements into our products and services. • Quality is a shared responsibility Quality and consumer safety is the responsibility of every Unilever employee and Unilever demonstrates visible and consistent leadership to meet this policy. manufacture and supply products that are safe. to ensure that we are recognised and trusted for our integrity. This is at the very heart of our innovation process. cut waste. The . reduce costs and drive profitability. hygiene and personal care with brands that help people feel good. of excellent quality. Comprehensive management procedures are in place to mitigate risks and to protect our consumers and markets. we’re able to do things right first time. thus creating consumer value wherever we position our products. and the high standards we set. wherever they are in the world. we need to consistently deliver branded products of excellent quality.Unilever’s mission is to meet everyday needs for nutrition. the quality of our brands and products. These standards ensure we design. and conform to the relevant industry and regulatory standards in the countries in which we operate.
. processes and performance indicators across all Unilever businesses at all levels. promote transparency and share best practice. We partner with stakeholders to provide leadership. and we’re setting a benchmark for the business. and will ensure that we deliver our quality objectives and targets. manufacturing and customer service processes and is also expected of our business partners. in all that we do. is a passion reflected in our brand development. We provide appropriate training and resources. • Building and maintaining excellent systems to ensure the quality and safety of our products We’re proactively and continuously developing our systems and processes to ensure quality and safety throughout the whole value chain. We actively promote our Quality Policy and have a quality assurance organisation in place to ensure consistency and visibility of quality standards. We regularly measure and improve our performance using both internal and external measures. and to anticipate and develop future quality capability requirements. And we’ve forged effective working relationships with suppliers and contract manufacturers.drive for quality.
4. HUL reconstructed a village in the Bhachau Taluka of Gujarat's Kachchh district (in December 2002). a playground. The relief operations included distribution of bread and biscuits to over 500 families in Pondicherry. to the Government of Tamil Nadu. Bihar Floods: After the floods in Bihar in 2008. The Company had distributed nutritional and personal hygiene products worth Rs 5 crore for immediate relief to the needy when the Tsunami had hit the region. and comprises 289 homes. employees of HUL factories and offices in Pondicherry. Cuddalore and Andamans.27 Acres of land (Market Value on a conservative basis Rs. The kit contained essential . pursuant to a request from the Government of Tamil Nadu on a more pressing need to provide housing to the affected families.CONTRIBUTION TO SOCIETY Yashodadham: After the devastating earthquake in 2001. land and towards construction of facilities. HUL has also provided a school building. Chennai. Tondiarpet in Chennai. On the day of the disaster. comprising of Company's dry rations and personal hygiene products were distributed.000 dry relief packs.5 crore) at Tondiarpet. 50 lakh towards the construction of the facilities in the complex. 000 kits worth Rs.000 cooked meals for families in Chennai. Later. Nagapattinam. Tamil Nadu and Kerala had provided necessary relief to the Tsunami-hit people. 12. which was completely wrecked by the earthquake. The village. HUL donated 5. HUL employees contributed Rs. a multi-purpose community centre. a crèche. Over 12. The complex has 960 permanent houses spread over 5. which has been named Yashodadham. was dedicated to the 1100 residents of Nani Chirai village. HUL contributed 10. health centre. 10 crore towards relief and rehabilitation of Tsunami affected families by way of relief material. Yashodadham. and community room and village administration office. 60 lakh as first instalment of relief material for the immediate relief of the flood affected families of Araria District in Bihar. Later the Community Hall was constructed for the benefit of Tsunami affected families at HUL Nagar. Tondiarpet: HUL contributed more than Rs. constructed with the active involvement of the villagers at every stage. All the structures are earthquake and cyclone-resistant.27 acres of land donated by Hindustan Unilever Limited (HUL). is spread over 25 acres. HUL has constructed both an underground reservoir and an overhead tank for water.
40 Lakh of contribution was received from employees and matching contribution from the company was collected which is now being invested in rebuilding homes in a village of Bihar. blankets and other useful material. Also. over Rs. clothes. . Total of 12 truck load material was distributed to the affected families under the guidance of Araria District Magistrate.items such as utensils.
Surf Excel was The market leader in this category. So we can say that HUL enjoys Majority Of market Share. Detergents In Detergents category Surf Excel was preferred by majority of the people followe by Rin and Local detergents.Survey We have conducted the survey about the popularity of Hindustan Unilever Ltd products. But HULs share was substantial. We asked the questions about popularity of HUL brands. Perfume In Perfumes category Axe was clear favourite among the youth. We asked the usage of Products of FMCG(Fast moving Consumer Groups). Colgate enjoyed the market share while Closeup and Pepsodents market share was minimal. HUL brands were very Popular. Shampoo In shampoo category Clinic and Head and shoulders faced stiff competition. Savy advertising has made the brand most popular and it enjoys majority of the market share. Toothpaste In Toothpaste category HUL was left tottering. We asked a few people from various backgrounds through various locations. Dove is the brand of HUL so is Lux and Pears. Pears and Cinthol. . Our Findings: Soap In soap Category Hul’s Dove was most preferred followed by Lux. Majority of the competitors had the market share.
Cosmetic Brand In case of cosmetic brand Garnier of Loreal was the market leader. . Tea In case of tea category Market share was found to be relatively uneven. Even though Lakme was not far behind. In the sample we surveyed It was preferred by all of them. Tata tea has slight edge over other brands like Brookebond and Taj mahal were also popular. Still it hass held on to the majority of the market share. Coffee In case of Coffee Nescafe was the most popular.Fairness cream In the category of fairness creams market leader Fair and lovely faced a stiff competition from fairever and other brands. Brooke bond of HUL was not even heard of in this category.
475 crore in this period. Though it was popular but its advertising expenditure was also huge. It was listed in ET-500 ranking of Indias biggest Companies and its ranking was number 32. Hindustan Unilever was the market leader in majority of the categories. According to Senior executive Harish Manwani the company was strengthening its competiveness through advertising and they see improved turnover in the near future. Competitors beware the” Big Bull is coming to crush you” .CONCLUSION From The above Survey and through the findings of this project we can conclude that Hindustan Unilever was the most preferred Brand in India. Thus we can state that HUL is ready to improve its product awareness in order to capture the majority of the market. It has increased its expenditure upto 26% in FY09. It has also launched water purifier. The net sales was Rs 4. It has wide range of products varying from Home care to food care and Other FMCG categories.
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