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LAKME

LAKME

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Introduction
Hindustan Unilever Limited (HUL) is India’s largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13,718 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.

Mission
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

Company profile
Past Milestones In year 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 in November 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) Limited was 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. 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

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clearly marked an inflexion in HUL's and the Group's growth curve. In one of the most visible and talked about events of India's corporate history. BBLIL merged with HUL. The liberalisation of the Indian economy. In 2003. Tea Estates and Doom Dooma. effective from April 1. Lakme Limited. In 2002. Finally. Speciality Chemicals and Exports businesses. started in 1991. 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. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. two plantation companies of Unilever. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. the government decided to award 74 per cent equity in Modern Foods to HUL. HUL has also set up a subsidiary in Nepal. enabling greater focus and ensuring synergy in the traditional Beverages business. 1993. HUL acquired the government's remaining stake in Modern Foods. The two companies had significant overlaps in Personal Products. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. with significant interests in Instant Coffee. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. acquisitions and mergers. without any constraints on production capacity. a leader in value added Marine Products exports 3 . In 1995. 1996. Kimberly-Clark Lever Ltd. were merged with Brooke Bond. the erstwhile Brooke Bond acquired Kothari General Foods. besides a common distribution system since 1993 for Personal Products. The amalgamation was done to ensure for the Group. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). which markets Huggies Diapers and Kotex Sanitary Pads. HUL and yet another Tata company. In 1993. Lakme Unilever Limited. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. Detergents and Personal Products both for the domestic market and exports to India. in a historic step. Simultaneously. The 1990s also witnessed a string of crucial mergers. HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. acquisitions and alliances on the Foods and Beverages front. In 1992. The two also had a common management pool and a technology base. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. HUL's entry into Bread is a strategic extension of the company's wheat business. In January 2000. with effect from January 1. Subsequently in 1998.opinions and aspirations. formed a 50:50 joint venture. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. The UNL factory manufactures HUL's products like Soaps. By the end of the year. deregulation permitted alliances. As a measure of backward integration. Then in July 1993. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. Unilever Nepal Limited (UNL). and its factory represents the largest manufacturing investment in the Himalayan kingdom.

including over 1. it has been recognised as a Golden Super Star Trading House by the Government of India. Lux. Rin. many with post-doctoral experience acquired in the US and Europe. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana.3 million retail outlets reaching the entire urban population.6 million people in approximately 43890 villages of 8 states. Clinic. Unilever.000 employees. which incorporates latest technology in all its operations. Through Shakti. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists.300 managers. The program now covers 15 states in India and has over 45. It is also involved in education and rehabilitation of special or underprivileged children. Close-up. covering 6. Shakti aims to have 100. HUL's distribution network. and about 250 million rural consumers.10% of the equity. which holds 52. and water management. comprising about 4. The Hindustan Unilever Research Centre (HURC) was set up in 1958.000 plus villages and directly reaching to 150 million rural consumers. touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. Knorr-Annapurna. Kissan. The operations involve over 2. and now has facilities in Mumbai and Bangalore.like Lifebuoy. HUL is also one of the country's largest exporters. thereby improving their livelihood and the standard of living in rural communities.soaps. HUL's brands . HUL is creating micro-enterprise opportunities for rural women. coffee. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures. Surf Excel. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs. touching the lives of over 600 million people. The rest of the shareholding is distributed among 360. Kwality Wall's – are household names across the country and span many categories . and rural development. HUL is focusing on health & hygiene education.000 women entrepreneurs in its fold. It is a mission HUL shares with its parent company. By the end of 2010.000 redistribution stockists. is to "add vitality to life. Pepsodent. hygiene. The mission that inspires HUL's over 15. HUL believes that an organisation's worth is also in the service it renders to the community.000 Shakti entrepreneurs covering 500.675 individual shareholders and financial institutions. women empowerment. Shakti. Pond's. branded staples. Wheel. Sunsilk. detergents. look good and get more out of life.000 villages. and relief & rehabilitation after the Tsunami caused devastation in South India. 4 . personal products. Brooke Bond.13718 crores. Shakti also includes health and hygiene education through the Shakti Vani Programme. In 2001. the company embarked on an ambitious programme. most recent being the village built by HUL in earthquake affected Gujarat. reaching out to 100. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea." HUL meets everyday needs for nutrition. tea. Lakme. Fair & Lovely.000 suppliers and associates. and creating access to relevant information through the iShakti community portal. care for the destitute and HIV-positive. ice cream and culinary products. The vision is to make a billion Indians feel safe and secure. and personal care with brands that help people feel good. It has already touched 84. HUL has traditionally been a company.Present Stature Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company. They are manufactured over 40 factories across India.

In 2004. he held regional responsibility as the Category Leader for Personal Products for the then Central Asia and Middle East (CAME) Business Group. he became the Category Head – Fabric Wash & Regional Brand Director (Asia) for some Laundry and Household Cleaning (HHC) Brands. Manwani joined HUL in 1976. he was appointed President and Chief Executive Officer of the HPC . it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. he became Divisional Vice President . In 2000. Manwani then moved to the UK as Senior Vice President for the Global Hair Care and Oral Care Categories and in early 2001 was appointed President of the Home & Personal Care (HPC) . Manwani has attended the Advanced Management Programme (AMP) at Harvard Business School. responsible for the top and bottom-line of the Homecare business and in March 2006.Latin America Business Group. he was appointed as the 5 . In April 2005. Mr.Marketing.If Hindustan Unilever straddles the Indian corporate world. Mr. Paranjpe worked as an Area Sales Manager – Detergents. On his return to India in 2002. Manwani joined the Board of HUL in 1995. Mr. In April 1996. London and was involved in a review of the Organisation Structure. Chennai and in February 1999 was appointed a member of the Project Millennium team. Following several Sales and Marketing assignments. Mr. he became the Personal Assistant to the Unilever Chairman in London. In his early years in the Company. Mr. responsible for the Personal Products business. he moved to Unilever. Board of Directors arish Manwani Chairman A distinguished alumnus in statistics & economics and MBA from Mumbai University. In 2004. he became Vice President – Home Care (Laundry & HHC) India. During 2001. In addition. he became the Branch Manager. Nitin Paranjpe joined the Company as a Management Trainee in 1987 after obtaining a degree in BE (Mech) and MBA in Marketing (JBIMS) from Mumbai. he was elevated to the Unilever Executive as President – Asia & Africa.North America Business Group. in Delhi Branch and then as a Brand Manager in the Household Cleaning Category. Nitin Paranjpe CEO and Managing Director Mr.

He has held a series of assignments in Manufacturing. He has also had key stints as Category Head of Oral and General Manager – Sales & Customer Management of Personal Products. a key organisational 6 . IT and business strategies for Unilever companies in the Indian sub-continent. He was a member of Project Millennium. Commercial Manager and Treasurer till 1990. Household Care category and New Ventures including a stint with Unilever in U. London as Commercial Officer for Africa and Middle East Group between 1990 and 1993 and on return was the Financial Member of TOMCO Integration team from 1993 to 1994. Paranjpe was appointed as the CEO and Managing Director of the Company in February 2008. Sundaram Vice Chairman and CFO Mr D. Mr Sundaram was elevated as Vice Chairman of the Company in April 2008. during 1993-95. Mr. Sanjiv Kakkar Director Mr.Sales and Customer Development in May 2007. He was appointed Vice President – Oral & Hair Care in May 2004. North Africa and the Middle East countries. He was again seconded to Unilever in August 1996 as Senior Vice President – Finance Central Asia and Middle East Group with responsibility for Finance. Dhaval Buch Director Mr. He was seconded to Unilever. D. Mr. Kakkar was appointed as Executive Director . Personal Products and Oral & Hair Care. Dhaval Buch joined HUL as a Management Trainee in June 1984. Sundaram joined HUL in 1975 as Management Trainee and worked in various capacities in HUL as Corporate Accountant. Sanjiv Kakkar is BA (Economics) and PGDM from IIM Ahmedabad with 23 years work experience. In March 2006.Foods and joined the Management Committee on 1st January 2007. Sanjiv was appointed as the Executive Director .K.Executive Director for the Home & Personal Care business. Kakkar joined the Company in June 1984 and has worked in various Sales and Marketing assignments. He became the Finance Director of Brooke Bond Lipton India Limited in March 1994 when the two companies were merged. He returned to India in May 1999 as Finance & IT Director of HUL. His marketing experience spans across categories including Beverages. Mr.

Mr. Prahalad is the Harvey C. S. He joined the Board as Independent Non-Executive Director in 2000. He was appointed to the Board of Directors of the Company in April 2008. A. Mr. Prahalad Director Professor C. D. A. Parekh has held senior positions in Grindlays and Chase Manhattan. D. he was appointed as Vice President . Narayan Director Mr. K. In June 2005. S. and Chairman of CMC Ltd. Ramadorai is also Chairman of Tata Technologies Ltd. S.Technical (HPC) and in 2006 was appointed as Executive Director Supply Chain. Ramadorai Director Mr. S. His contribution to business strategy is globally recognised. Ramadorai is the Chief Executive Officer of Tata Consultancy Services.initiative. Parekh holds a FCA degree from England & Wales. Parekh joined the Board as Independent Non-Executive Director in 1997. Mr. the US. K. Fruehauf Professor of Business Administration at the University of Michigan at Ann Arbor. Parekh Director Mr. He is also the Chairman of ICI India Research & Technology Centre. He joined the Board as Independent Non-Executive Director in 2002. 7 . Mr. C. Narayan joined the Board as Independent NonExecutive Director in 2001. He is the Executive Chairman of Housing Development Finance Corporation. Narayan is the Managing Director and CEO of ICI India Limited.

Europe and USA with over 60. Mashelkar. in recognition of his contribution to nation building.000 scientists. He is also the President of National Innovation Foundation and Institution of Chemical Engineers (IChemE). 8 . a network of publicly funded R&D institutes from Asia-Pacific. He has served as the Director General of Council of Scientific and Industrial Research ( CSIR) for over 11 years and is presently the President of Indian National Science Academy and President of Global Research Alliance.A. Mashelkar has won over 50 awards and medals in the field of science and technology and was honoured by the President of India with Padmashri (1991) and with Padmabhushan (2000). Mashelkar Director Dr.R. a Ph. Dr. UK. D in Chemical Engineering is an eminent scientist. A. R.

we believe that the principles of fairness. It is the Company's endeavour to continue to achieve highest governance levels. As regards the compliance with the requirements of Clause 49 of the Listing Agreement with the Stock Exchanges. At Hindustan Unilever. As regards the compliance with the requirements of Clause 49 of the Listing Agreement with the Stock Exchanges. the Company is in full compliance with the norms and disclosures. The Audit Committee also looks into controls and security of the Company’s critical IT applications. knowledge and experience. transparency and accountability are the cornerstones for good governance. it must maintain global standards of Corporate Conduct towards all its stakeholders. It is the Company's endeavour to continue to achieve highest governance levels. The HUL Code of Business Principles reflects the Company's commitment to these principles. The Company's foundation has therefore been rooted to stringent Corporate Governance principles. COMMITTEES OF THE BOARD Audit Committee The Audit Committee of the Company is entrusted with the responsibility to supervise the Company’s internal control and financial reporting process. we believe that the principles of fairness. The total strength of the Board of Directors of the Company is 10 Directors comprising a Non-Executive Chairman.CORPORATE GOVERNANCE Hindustan Unilever Limited believes that for a Company to be successful. The HUL Code of Business Principles reflects the Company's commitment to these principles. Remuneration and Compensation Committee The Remuneration Committee is vested with all the necessary powers and authority to ensure appropriate disclosure on the remuneration of whole-time Directors and to deal with all the elements of remuneration package of all such Directors within the limits approved by the members of the Company. Hindustan Unilever Limited believes that for a Company to be successful. the Company is in full compliance with the norms and disclosures. transparency and accountability are the cornerstones for good governance. The Compensation Committee administers the stock option plan of the Company. BOARD OF DIRECTORS The Board of Directors of the Company represents an optimum mix of professionalism. four Executive Directors and five Non-Executive Independent Directors. At Hindustan Unilever. Shareholder/Investor Grievances Committee 9 . it must maintain global standards of Corporate Conduct towards all its stakeholders. The Company's foundation has therefore been rooted to stringent Corporate Governance principles.

Gupta.. Email : hllshare.cmpt@unilever.com Tel nos. Phone : +91. : +91-22-39832567/ 39832358 / 39832557 Lovelock & Lewes.N. The Committee also monitors and reviews the performance and service standards of the Registrar and Share Transfer Agents of the Company and provides continuous guidance to improve the service levels for investors. Madhapur.40 23420818-823 Fax : +91. non-receipt of declared dividends and ensure expeditious share transfer process. State Bank Building N. Other Functional Committees Apart from the above statutory committees. Chartered Accountants 252. Vaidya Marg Mumbai – 400 023 Karvy Computershare Private Limited Unit : HINDUSTAN UNILEVER LIMITED Plot No.400 028 Crawford Bayley & Co.karvy.40 23420814 Email : igkcpl@karvy. the Board of Directors have constituted other functional committees such as committee for approving disposal of surplus assets of the Company.G. 165/166. Backbay Reclamation Mumbai – 400 020 Tel : +91 – 22 – 39830000 Fax no. Veer Savarkar Marg Dadar.com Website : www.com Unilever India Exports Limited Bon Limited Registered Office Executive Director (Legal) and Company Secretary Statutory Auditors Solicitors Registrar and Share Transfer Agents Subsidiary Companies 10 . Hyderabad – 500 081. Corporate Information Hindustan Unilever Limited. : +91 – 22 . Mumbai. 17 to 24.The Committee specifically looks into redressing of investors’ complaints with respect to transfer of shares.K. Vittalrao Nagar. committee for allotment of shares under ESOP to raise the level of governance as also to meet the specific business needs. non-receipt of shares.22026712 Ashok.

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 11 .

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10 YEARS RECORD 13 .

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each under the depository system is INE030A01027. Share Price Data The monthly high and low prices and volumes of Hindustan Unilever share at the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE) for the year ended 31st December.Listing Details of Equity Shares Name of Stock Exchange Stock Code Bombay Stock Exchange Limited 500696 National Stock Exchange of India Limited HINDUNILVR The listing fee for the fi nancial year 2007-2008 has been paid to the above stock exchanges. 2007 are as under: 15 . 1/. The ISIN Number allotted to the Company’s equity shares of face value of Re.

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Analysis and interpretation of various accounting ratios gives skilled and experienced analyst a better understanding of the financial condition and performance of the firm than what he could have obtained only through a perusal of financial statements. Profitability ratio Leverage ratio / Capital structure ratio Turn over ratio Liquidity or Short term solvency ratio’s Profitability ratio : Profitability ratio measures profitability of a concern firm or company Net profit ratio: Net profit ratio is the ratio between net profits after taxes and net sales it indicates what portion of sales is left to the owners after operation expenses. Debt equity ratio : Debt equity ratio is the ratio is reflect the relative claim of creditors and share holders against the assets of the business. 2. Net profit ratio = (Net profit after taxes / Net sales )x 100 Operating ratio : Operating ratio is the ratio between cost of goods sold plus operating expenses and the net sales Operation ratio = {(operating expenses + cost of goods sold )/ net sales )}x 100 Cost of goods sold = sales – gross profit Leverage ratio :Leverage ratio indicates the relative interest of owner and creditors in a business. Types of ratio’s 1. 3. Debt equity ratio = Long term liabilities / share holders funds Long term liabilities = long term loan + Debentures + Other long term loans 25 . 4.Ratio Analysis Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the financial condition and performance of a firm.

Shares holders funds = equity share capital + Preference share capital + Reserves and Surplus + Undistributed profits – fictitious assets Turn over ratio (activity ratio ) : Turn over ratio measures the efficiency or effectiveness with which a firm manages with its resources or assets. Quick ratio = Quick assets / Current liabilities. Inventory turn over ratio : Inventory turn over ratio is the ratio measures numbers of times on an average stock is sold during the year. Current ratio : Current ratio is the ratio is a relationship between current assets and current liabilities. Current ratio = Current assets / Current liabilities Quick ratio : Quick ratio is the ratio is the relations between quick assets and current liabilities. Working capital turn over ratio = Cost of goods sold / working capital Working capital = Current assets – Current liabilities Cost of goods sold = sales – gross profit Liquidity ratio : liquidity ratio measures the short time solvency of the firm. Quick assets = Current assets – Stock + Loans and Advances 26 . Inventory turn over ratio = Cost of goods sold /Aerage inventory Cost of goods sold = sales – gross profit Average inventory = (Opening stock + Closing stock ) / 2 Working capital turn over ratio : Working capital turn over ratio is the ratio is express the relation between cost of goods sold and working capital.

61 -9098.61 87.952698597 NET PROFIT RATIO Net profit after tax sales Net profit ratio 176767.59 0.28 86.762396271 INVENTORY TURN OVER RATIO Cost of goods sold Average inventory Inventory turn over ratio 1391340.93974676 27 .01 78585.286172241 QUICK RATIO Quick assets Current liabilities Quick ratio 208573.6 147529.01 13.58095963 910806.944220416 2004 353194.47 13.3 0.6 11.02 389767.14 1156582.9 6.43736729 146181.27 0.6 -17187.3 0.49 OPERATING RATIO Operating expenses Sales Operating ratio 1200917.175 7.83 1241097.28 180407.61 12.38 -67.89 1241097.877338392 2006 318969.57 6.07 1391340.Years CURRENT RATIO current assets current liabilities current ratio 2007 341957.08 308130.70482013 152314.1017655 9 1241097.839660467 1059820.654093674 209360.4862082 EARNING PER SHARE (EPS) Net profit after taxes Number of shares out standing EPS 8.61 149806.68 7.28 12.99 0.29254837 1059820.82 328069.712222532 1241097.4087864 1156582.69 8.48 1059820.48 -29.27259555 132282.01095073 1012946.28 1391340.37 -136.28 -47809.99 1.6 1156582.01 152432.535121946 220678.6 87.79 389767.672658566 201546.972266782 2005 290942.92 308130.284656638 1156582.27 0.765 8.79304775 WORKING CAPITAL TURN OVER RATIO Cost of goods sold Working capital Working capital turn over ratio 1391340.87 274608.31368525 1079890.22 328067.1 85.61 5.46 274608.71 1059820.59 0.

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