GROUP - 8

FMCG Sector : Overview
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The Indian FMCG sector is the fourth largest sector in the economy. The FMCG sector has registered a growth rate of 16 per cent for the year 2009-10. By 2012 it is expected to grow by more than 25 % in rural and semi-urban India

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With it. visitors to the Kolkata harbour noticed crates full of Sunlight soap bars. Soon after followed Lifebuoy soap in 1895 and other famous brands like Pears. Lux and Vim. Vanaspati ghee was launched in 1918 and became the famous brand Dalda.Heritage l In the summer of 1888. embossed with the words "Made in England by Lever Brothers". l l  l l . began an era of marketing branded Fast Moving Consumer Goods (FMCG).

with 10% Indian equity participation. ‘United Traders Limited’ incorporated on May 11th 1935.’ ‘Lever brothers India Ltd. July 19th 2007. changed the name to Hindustan Limited. Unilever 17th l l l  l  l l . In 1956.’ Incorporated on October 1933. Unilever set up its first Indian subsidiary of ‘Hindustan Vanaspati Manufacturing Co. Three companies merged to form ‘Hindustan Lever Limited’.Brief History l  On November 27th 1931.

98 Billion for FY 2009-10. BSE Ticker:500696 and is head quartered in Mumbai It employs 65000 people directly and indirectly It earned USD 3.Current Scenario l  India's largest fast moving consumer goods company.3 million outlets in the country l  l l l  l l l . It’s distribution covers over 1 million retail outlets across India directly and its products are available in over 6.

He joined the Board of the Company in 1995. Mumbai. Paranjape worked as Area Sales Manager – Detergents and then Product Manager-Detergents. R.Board of Directors The Board of Directors (the Board) is entrusted with: 1)The ultimate responsibility of the management 2)General affairs. Manwani joined the Company in 1976. Mr. He joined the Company in May 1989 and worked in a number of finance and commercial functions . Sridhar is CFO. as a Director responsible for the Personal Products business Mr. 3)Direction and performance of the Company 4)And vested with the requisite powers. he is a Commerce graduate from R. Mr. H. Poddar College. A. authorities and duties.

It comprises of 8 members and is headed by Mr. Dev Bajpai.Management Committee The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board.Executive Director.Executive Director. Nitin Paranjape Mr. Leena Nair. Home & Personal Care Ms.Executive Director. Legal and Company Secretary . Shreejit Mishra. Human resource Ms.

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Distribution at Villages… RURAL DISTRIBUTION MODEL .

New Distribution Channels… .

Shakti .Operations .

HUL’s Turnover Vs Competitors .

Market Leadership in FMCG categories .

Competitors .

labor practices. rural development. vocational training. Education. poverty eradication. water. environment commitment and prevention of corruption in the organization CSR areas include community welfare. Karamyog.Corporate Social Responsibility l Member of UN Global Compact Program which covers human rights. has given HUL 2/5 in its CSR Ratings for 2009. Disaster relief. Girl child. an NGO. women. Healthcare. No Trust/Foundation established for CSR  l l l  l l l . Employee welfare.

In 2008. Maharashtra. Rain water harvesting and soil conservation projects around Silvassa. healthcare & enhancement of livelihood. HUL employees volunteered more than 40.CSR Activities undertaken l 3 main CSR activities concern water. Lifebuoy has been conducting a sustained health education program to raise hygiene standards in rural communities.000 hrs of social work  l  l l l . Dadra & Nagra Haveli.

Project Shakti l l l l “Doing well by doing good” It is a rural initiative that targets small villages typically with a population of less than 5000. It empowers women in rural markets while contributing well as a sales channel Objectives of Shakti project l l l l l  Reach new consumers in small rural villages Grow markets through consumer education program Empower women through creation of employment opportunities for them Build a sustainable business model .

Operational efficiency l Reduced water usage per tonne by more than 26% in its manufacturing operations since 2004 l Energy consumption per unit of production has come down by 34% since 2004 l Exceeded the target of 25% reduction in CO2 in manufacturing operations per tonne of production against a baseline of 2004 l .

Corporate governance@ HUL l l Two basic tenets of corporate governance @ HUL 1. Transparency 2. executive body- Unilever . Accountability  l HUL's highest Executive.

Directors’ Shareholding .

Composition & directorships/Committee membership .

Attendance of the Members at Shareholders / Inventors Grievance Committee Meetings .

Details of Shareholders / Investors Complaints received and redressed .

Committees & Policies l l COMMITTEES: 1) Share Transfer/ Transmission Committee 2) Committee for Allotment of Shares under ESOPs COMPANY POLICIES: 1) Preventing Conflict of Interests 2) Whistle Blower Policy 3) Share Dealing Code 4) Affirmation And Disclosure 5) Disclosure Of Pending Cases / Instances Of Non-Compliance 6) Compliance With The Governance Framework 7) Compliance with Sarbanes–Oxley Act l .

Trend of Complaints Received During Last 5 Years: .

Controversies l In 2001 HUL was accused for dumping of glass contaminated with mercury in municipal dumps. l Empty mercury bottles found in the watershed forests behind the Unilever factory. India . Unilever's mercury tainted glass was found at this crowded scrap yard in Kodaikanal.

Controversies l Fair and lovely 2007 ad’s.skin lightning cream in IndiaRacism HUL is using Triclosanin the products which is still under testing phase by FDA. America l l l .

Rin V/S Tide l Rin started “Safedi ki chamkaar” advertising .

Recommendations .

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