India's FMCG sector is the fourth largest sector in the economy.

Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of 85,000 Cr. It is currently growing at double digit growth rate. The in-dustry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita con-sumption and intense competition between the organized and unorganized segments. The FMCG Industry remained insulated from inflation led demand slowdown. Inflation as measured by the wholesale price index shot up to 9.5 per cent in June 2008 quarter and further climbed up to 12.5 per cent in September quarter. In both these quarters, industry sales accelerated by more than 15 per cent backed by healthy growth in off take as well as price hikes effected. During this period, the industry was largely able to hold on to margins through a combination of strategies such as weight reduction and changes in product mix. Company Description Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods (FMCG) Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. In FY ending 2007 the Company generated net sales of INR 13,913.40 Cr. and a profit of INR 1,914.88 Cr. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Govern-ment of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." 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. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country and span many categories soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products.

PRODUCT MIX Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona Laundry:- Surf Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :- Vim Disinfectants:- Domex, cif Foods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread Ice-cream:- Kwality Wall's Bewerages:Tea:- Brooke bond, Lipton, taj mahal Coffee:- Brooke bond bru Beauty Products:- Fair & Lovely, Lakme, Ponds, Vaseline and Aviance Hair-Care:- Sunsilk naturals, Clinic , Dove and Lifebouy Oral-Care:- Pepsodent and Close-up Deo spray:- Axe and Rexona Water Purifier:- Pureit Ayurvedic Personal & health care:- Ayush

Market Share HUL products are a household name in India. Its brands across categories touch lives of over 700 million Indian consumers every day. That means roughly two-third of Indian population uses HUL products. The two biggest strengths of HUL are: its leading brands and extensive distribution network.

Nationwide manufacturing facilities This diverse product range is manufactured in over 100 factories, located across the length and breadth of India. The operations involve 2,000 suppliers and associates. About 28 factories are situated in backward areas. In fact, all major investments of HUL, in recent years, have been either in A-Category backward areas or No-Industry Districts. These include factories in Khamgaon and Yavatmal (Maharashtra),Chhindwara (Madhya Pradesh), Orai, Sumerpur and Khalilabad (Uttar Pradesh), Haldia (West Bengal), Silvassa (Dadra & Nagar Haveli), Pondicherry, Goa and Doom Dooma (Assam). In 2001 itself, HUL set up seven new factories in backward areas Equally, HLL has an enviable track record in taking over sick enterprises, in response to requests from government authorities, and converting them into viable operations. The company's units at Mangalore and Rajpura all bear testimony to this achievement. In the process, HUL has saved precious jobs and developed local economies. HUL is now implementing a turnaround strategy for Modern Foods, which is progressing as per plan. HLL's manufacturing facilities, like the Khamgaon soap plant and the Sumerpur detergent bar unit, have been recognized as among the best in the Unilever world. HUL has adopted Total Productive Maintenance (TPM) for achieving manufacturing excellence. Eight factories have already won different TPM awards from the Japan Institute of Plant Maintenance (JIPM). TPM has been launched in all key factories.

Technology, the Key Differentiator Their brands and local understanding of the general consumer is strongly backup by the world class Research and Development team . They have over 200 of the brightest scientists and technologists based in India. Their recent organization leverages the talent pool from across 16 global technology centres, of which 4 are in India. In all they have 4000 high quality minds across Uniliver working relentlessly to provide new benefits that make a real difference to the consumer. Distribution Network Hindustan Unilever's distribution network is recognised as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience. HUL's products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever services each with a tailor-made mix of services. The emphasis is equally on using stores for direct contact with consumers, as much as is possible through in-store facilitators. Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience

Supply Chain Management This is the most important factor that drives the sales and promote customer loyalty. It is the ability of any industry to offer a new product whenever customer wants. At the supermarkets: To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this channel. The business system delivers excellent customer service, while driving growth for the company and the store. At the same time, innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself, through product tests and in-store sampling In the villages: The company, to fully meet the emerging needs and increased purchasing power of the rural population has brought all markets with populations of below 50,000 under one rural sales organisation. The sales teams are formed, dedicated leaders are assigned to buikd tha brand availability and enabling brand building in the deepest sections. HUL's distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers, through about 6000 sub-stockists

Role of IT in Supply Chain The main objective behind the introduction of IT is to catalyse HUL's growth by ensuring that the right product is available at the right place in right quantities, in the most costeffective manner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction on orders, despatches, information sharing and monitoring. oday, the sales system gets to know every day what HUL stockists have sold to almost a million outlets across the country. RS Net is part of Project Leap, HUL's end-to-end supply chain, which also includes a back-end system connecting suppliers, all company sites and stretching right upto stockists. Brand Equity It is the degree of consumer loyalty that a company product enjoys. HUL has various brands in the Indian market with the highest market share. The main challenge was to reverse the downtrading the categories and reestablish the relevance of their brands in the minds of the customers. In 2000 they had 110 brands, many undifferentiated and lacking scale. Then they focus on 35 main brands covering all consumer appeal and pricing segments. They are already seeing the benefits . Six brands Brooke Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel have emerge as megabrands with sal of more than Rs.500 crores. As a corporate, HLL wants to be a leader in every one of its businesses and the strategy is to fight on the strength of the competitive advantage arising from the possession of strong brands. It is this strategy that is getting reflected in the development of a multitude of strong brands. If we take the business of bathing soaps, as an example, HLL has the objective of being a national player (not a niche or a regional marke ter) and the leader therein. HLL also wants about 30 per cent of the corporate income to come from this line. Price Protection The products of HUL enjoys the price protection in various segments of goods and services provided by the company. They have increased the prices of several main products and reduced on those products consumed by mass population . Project Shakti Project Shakti is a rural initiative of your Company 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 and is a great example of Doing Well by Doing Good. The specific objectives of Shakti are: Reach new consumers in small rural villages Develop/grow markets through consumer education programs Empower women through creation of employment opportunities for them Build a sustainable business model Project Shakti benefits the business by significantly enhancing its direct rural reach, and by helping the Companys brands to touch the lives

of people hitherto untouched. Shakti is built on Shakti Entrepreneurship program and Shakti Vani program. Shakti Entrepreneur program creates a win-win model by enhancing the efficacy of the micro-credit as an institution to alleviate poverty; this is done by providing appropriate investment opportunities and sustainable income for the recipients. Micro-credit enables rural women to become direct-to-home distributors in rural markets with significant retained earnings. This benefits rural consumers also by giving them access to some of Indias most trusted brands at affordable prices.