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The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production, distribution and marketing of consumer packaged goods, i.e. those categories of products that are consumed at regular intervals. Examples include food & beverage, personal care, pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry is vast and offers a wide range of job opportunities in functions such as sales, supply resources, chain, finance, marketing, operations, purchasing, human
product development and general management. Global leaders in the
FMCG segment are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc. Performance In India, the FMCG industry is the fourth largest sector with a total (organized) market size of over US$15 billion in 2007, as per ASSOCHAM, and can be classified under the premium and popular segments. The premium segment (~25%) caters mostly to the higher/upper middle income consumers while the price sensitive
mass segment (~75%) consists of consumers belonging mainly to the semi-
urban or rural areas who are not, and cannot afford to be, brand conscious. The market growth over the past 5 years has been phenomenal, primarily due to consumers‟ growing disposable income which is directly linked to an increased demand for FMCG goods and services. Indeed, it is widely acknowledged that the large young population in the rural and semi-urban regions is driving demand growth, with the continuous rise in their disposable income, life style, food habits etc. On the supply side, the wide availability of raw materials, vast agricultural produce, low cost of labor and increased organized retail have helped the competitiveness of players. At a time when the economy and other large industrial sectors such as
automobiles, aviation and financial services are reeling from the global slowdown, the consumer goods sector in India has managed to defy the trend. According to the recent reports by Zeus Consulting, India's FMCG industry has so far been resilient to the slowdown in the economy and a dip in consumer sentiment, with most companies posting double-digit
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The prospects going forward also remain promising. Going forward. As very categorically said by the Amway India Enterprises managing director and chief executive. FMCG already seems to be doing quite well and FMCG sector will have its best year ever in 2009-10. Future Prospects The only threats to this strong growth trajectory remain the high portion of unorganized trade. the limited distribution network of new entrants and the pressure on profit margins due to increasing competition. the industry prospects remain attractive. While a price hike and cost-cutting were the first lines of defense in a bid to protect margins. Adi Godrej.” he said. and new graduates can hope to leverage the training and on-the-job learning at the leading players in various functional roles. across the Metros as well as the interior heartlands on India. the economic growth will come through and that will generally create multiplier factors. backed by healthy sales. with increased marketing efforts. Mr.” This statement on the whole stands strong for most the leading players in the FMCG sector. Indian manufacturers were able to let logic rather than bottom lines dictate measures. But these are likely to be of diminished invest in importance as proportion of organized trade increases and players improving distribution. Chairman and MD of Godrej Consumer Products Limited (GCPL) and Chairman of Godrej Industries feels that the best policy would be to provide tremendous fiscal and monetary stimuli to the economy. William Pinckney. Brand Audit for HUL Page 2 . “I am not saying that our company [sector] is recession-proof but it is recession-resilient.growth in net profits in the first half of fiscal 2009. a well-thought product mix and new launches helping them emerge unscathed from the turmoil. “…[stimuli is needed] especially in industries connected with consumer finance. Once that is done.
Top 10 FMCG Companies Brand Audit for HUL Page 3 .
Market Share of FMCG Companies MARKET SHARE OF FMCG COMPANIES IN INDIA OTHERS 19% HUL 34% DABUR 4% BRITANNIA 6% NESTLE 8% ITC 29% Brand Audit for HUL Page 4 .
HUL offered 10% of its equity to the Indian public. Brooke Bond & Co. and in 1977 was incorporated. Brand Audit for HUL Page 5 . Unilever set up its first Indian subsidiary. Since the very early years. soap visitors bars.10% equity in the company. the company had launched Red Label tea in the country. The erstwhile Lipton's links with India were forged in 1898. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. The growth process has been accompanied by judicious diversification. Pond's (India) Limited had been present in India since 1947. In 1912. These three companies merged to form HUL in November 1956. In 1931. Soon after followed Lifebuoy in 1895 and other famous brands like Pears. being the first among the foreign subsidiaries to do so. The rest of the shareholding is distributed among about 360. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.675 individual shareholders and financial institutions. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). to the Kolkata with the harbour words noticed "Made crates full of Sunlight in England by embossed Lever Brothers". Lux and Vim. Hindustan Vanaspati Manufacturing Company. By 1903.History of HUL In the summer of 1888. Unilever Lipton Tea (India) Limited acquired Lipton in 1972. began an era of marketing branded Fast Moving Consumer Goods (FMCG). India Limited was formed. Unilever now holds 52. always in line with Indian opinions and aspirations. The erstwhile Brooke Bond's presence in India dates back to 1900. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. HUL has vigorously responded to the stimulus of economic growth. With it.
two plantation companies of Unilever. deregulation permitted alliances. The UNL factory manufactures HUL's products like Soaps. Simultaneously. HUL has also set up a subsidiary in Nepal. 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. As a measure of backward integration. In 1996. and its factory represents the largest manufacturing investment in the Himalayan kingdom. Unilever Nepal Limited (UNL). started in 1991. clearly marked an inflexion in HUL's and the Group's growth curve. 1993. the erstwhile Brooke Bond acquired Kothari General Foods. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. In 1992. By the end of the year. In 1993. acquisitions and alliances on the Foods and Beverages front. to market Lakme's market-leading other appropriate products of both the companies. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. formed a 50:50 joint venture. without any constraints on production capacity. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. with significant interests in Instant Coffee. The 1990s also witnessed a string of crucial mergers. Then in 1994. Detergents and Personal Products both for the domestic market and exports to India. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Lakme Limited. which markets Huggies Diapers and Kotex Sanitary Pads. Tea Estates and Doom Dooma.The liberalisation of the Indian economy. Lakme cosmetics and Unilever Limited. effective from April 1. Kimberly-Clark Lever Ltd. HUL and yet another Tata company. enabling greater focus and ensuring synergy in the traditional Beverages business. Subsequently in 1998. Brand Audit for HUL Page 6 . Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. acquisitions and mergers. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. were merged with Brooke Bond. In one of the most visible and talked about events of India's corporate history.
In 2002. HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. Project Shakti was started in 2001. benefits from scale economies both in investments domestic and export markets and enable it to fund required for aggressively building new categories. the government decided to award 74 per cent equity in Modern Foods to HUL. Currently. HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. in a historic step. The two companies had significant overlaps in Personal Products.000 Shakti entrepreneurs covering over 100. a leader in value added Marine Products exports. the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. 1996. BBLIL merged with HUL. HUL's entry into Bread is a strategic extension of the company's wheat business. Direct to home business was launched in 2003 and this was followed by the launch of „Pureit‟ water purifier in 2004.Finally. Speciality Chemicals and Exports businesses. besides a common distribution system since 1993 for Personal Products. On 17th October 2008 .000 villages across 15 states and reaching to over 3 million homes. there are over 45. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. In 2007. In 2003.000 crore sales milestone in 2008. with effect from January 1. . HUL completed 75 years of corporate existence in India. Brooke Bond and Surf Excel breached the the Rs 1. The amalgamation was done to ensure for the Group. HUL launched a slew of new business initiatives in the early part of 2000‟s. Hindustan Unilever Network.000 crore sales mark the same year followed by Wheel which crossed the Rs. HUL acquired the government's remaining stake in Modern Foods. In 2002. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. The two also had a common management pool and a technology base. It is a rural initiative that targets small villages populated by less than 5000 individuals. In January 2000.2.
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With over 35 brands spanning 20 distinct categories such as soaps. deodorants. Rin. Wheel. toothpastes. Pond‟s. one of the world‟s leading suppliers more of fast moving consumer goods with strong local roots in than 100 countries across the globe with annual sales of about €44. Kwality Wall‟s and Pure it. packaged foods. Pepsodent. Its portfolio includes leading household brands such as Lux. skin care.2010). Lakmé. Dove. cosmetics. Kissan. The Company has over 15. Vaseline. HUL works to create a better future every day and helps people feel good.000 employees and has an annual turnover of Rs. coffee. look good and get more out of life with brands and services that are good for them and good for others. Knorr. . in 1956. Axe.17. Brooke Bond. Unilever has about 52% shareholding in HUL. Close up. HUL is a subsidiary of Unilever. tea. Lifebuoy. the Company is a part of the everyday life of millions of consumers across India. Co. Fair & Lovely. The company was renamed in late June 2007 as Hindustan Unilever Limited. shampoos.3 billion in 2010. ice cream. and water purifiers. Ltd. Surf Excel. Clinic Plus.Introduction to HUL Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.523 crores (financial year 2009 . and United Traders Ltd. Bru. detergents. HUL is Hindustan Unilever Limited a merger of Lever Brothers and Hindustan Vanaspathi Mfg. Sunsilk.
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We will inspire people to take small everyday actions that can add up to a big difference for the world. Brand Audit for HUL Page 9 . A clear direction The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there: We work to create a better future every day We help people feel good. As our business grows. or by enjoying a great cup of tea. We recognize that global challenges such as climate change concern us all. so do our responsibilities. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are. We've always believed in the power of our brands to improve the quality of people‟s lives and in doing the right thing.Vision Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile. satisfying meal or healthy snack. look good and get more out of life with brands and services that are good for them and good for others. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. keeping their homes fresh and clean.
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