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Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration {BBA}

Uday jain

Shradha Vernekar



The present work is an effort to throw some light on ―HINDUSTAN UNILEVER LIMITED”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by my project guide _____________and other staff members of Hindustan unilever limited I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.


A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. During my training at Hindustan unilever limited, I was taken project on recruitment, selection & training policy of Hindustan unilever limited The main purpose of the study is to know the policies of the bank regarding recruitment, selection & training, which helped me in gaining knowledge about the different working pattern of different departments of the company.

Economic environment. 5. 2. Contribution to GDP) 2. 4. Sources of Finance Ratio Analysis –Any 5 Net Profit/ Balance sheet (from annual report) -Analyse Key Learning’s from the Company and Recommendations Chapter 5: 1. 5. technological environment. 5. Key Competitors 4. 2. 2. 3. 4.CONTENTS Chapter 1: 1. 5. Place & Promotion) STP (Segmentation. Targeting and Positioning) Distribution Channels Promotion Strategies Chapter 4: Financial Analysis 1. Environmental Scanning –Political environment. Journals –For Company and Industry) 3. Marketing Strategies Products of Company 4 Ps (Product: Price. Performance Analysis of the Company Reasons for the expansion/contraction/diversification of Company Comment on Organizational Leadership Market share/growth rate of Company SWOT Analysis of the Company Findings Conclusions and Suggestions Chapter 6: Chapter 7: Bibliography . Porters five forces model of competition –Michael Porter Chapter 3: 1. 4. 3. Industry Overview –(Growth rate of Industry. environmental issues (Green environment) and Legal environment. Introduction to Company Nature of Business Type & ownership Pattern Organizational Structure Production Lay out Organizational Policies Industrial Analysis Chapter 2: 1. Socio-Cultural Environment. 3. Current Issues (From Newspaper. 3. 2.

Our 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. . Rin.000 employees and has an annual turnover of around Rs. ice cream. toothpastes. The Company has over 16. Closeup. satisfying meal or healthy snack. 401 crores (financial year 2010 . Axe. deodorants. Vaseline. Surf Excel. Dove. coffee. skin care. Brooke Bond. Unilever has about 52% shareholding in HUL. Pepsodent. or by enjoying a great cup of tea. the Company is a part of the everyday life of millions of consumers across India. Clinic Plus. detergents. look good and get more out of life with brands and services that are good for them and good for others. tea.2011).19. and water purifiers. Its portfolio includes leading household brands such as Lux. Sunsilk.Chapter 1:      Introduction to Company Nature of Business Type & ownership Pattern Organizational Structure Production Lay out Organizational Policies Chapter-1 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. Lakmé. cosmetics. shampoos. one of the world‘s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. With over 35 brands spanning 20 distinct categories such as soaps. HUL is a subsidiary of Unilever. HUL works to create a better future every day and helps people feel good. keeping their homes fresh and clean. Fair & Lovely. Kwality Wall‘s and Pureit. Pond‘s. Bru. Kissan. Lifebuoy. packaged foods. Knorr. Wheel.

We've always believed in the power of our brands to improve the quality of people‘s lives and in doing the right thing. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. The rest of the shareholding is distributed among about 360. In 1912. Unilever set up its first Indian subsidiary. began an era of marketing branded Fast Moving Consumer Goods (FMCG). everyday actions that can add up to a big difference for the world. Unilever now holds 52. The erstwhile Brooke Bond's presence in India dates back to 1900. HUL offered 10% of its equity to the Indian public. We recognise that global challenges such as climate change concern us all. In 1931. Hindustan Vanaspati Manufacturing Company. The erstwhile Lipton's links with India were forged in 1898. We will develop new ways of doing business with the aim of doubling the size of our Company while reducing our environmental impact. These three companies merged to form HUL in November 1956. look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small. the company had launched Red Label tea in the country. Our Mission Company work to create a better future every day. We help people feel good.675 individual shareholders and financial institutions. As our business grows. Brooke Bond & Co. look good and get more out of life with brands and services that are good for them and good for others. being the first among the foreign subsidiaries to do so. By 1903. Soon after followed Lifebuoy in 1895 and other famous brands like Pears. With it. Unilever acquired Lipton in 1972. so do our responsibilities. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). Brooke Bond joined the Unilever fold in 1984 through an international acquisition. We will inspire people to take small everyday actions that can add up to a big difference for the world. and in 1977 Lipton Tea (India) Limited was incorporated. Our history In the summer of 1888.A clear direction The four pillars of 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. embossed with the words "Made in England by Lever Brothers". Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. Lux and Vim.10% equity in the company. visitors to the Kolkata harbour noticed crates full of Sunlight soap bars. India Limited was formed. .

000 Shakti entrepreneurs covering over 100. in a historic step. always in line with Indian opinions and aspirations. Project Shakti was started in 2001. In 2002. Speciality Chemicals and Exports businesses. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. In one of the most visible and talked about events of India's corporate history. In 1993. 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. On 17th October 2008 . enabling greater focus and ensuring synergy in the traditional Beverages business. HUL completed 75 years of corporate existence in India. two plantation companies of Unilever. The amalgamation was done to ensure for the Group. acquisitions and alliances on the Foods and Beverages front. Kimberly-Clark Lever Ltd. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. Subsequently in 1998.000 villages across 15 states and reaching to over 3 million homes. Since the very early years.Pond's (India) Limited had been present in India since 1947. Brooke Bond and Surf Excel breached the the Rs 1. HUL and yet another Tata company. formed a 50:50 joint venture. In 1992. The 1990s also witnessed a string of crucial mergers. BBLIL merged with HUL. there are over 45. effective from April 1. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. which markets Huggies Diapers and Kotex Sanitary Pads. By the end of the year. HUL's entry into Bread is a strategic extension of the company's wheat business. Then in 1994. Lakme Unilever Limited. the government decided to award 74 per cent equity in Modern Foods to HUL. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL has vigorously responded to the stimulus of economic growth.2. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. In 2007. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. 1996. The two companies had significant overlaps in Personal Products. Currently.000 crore sales mark the same year followed by Wheel which crossed the Rs. Lakme Limited. Detergents and Personal Products both for the domestic market and exports to India. The two also had a common management pool and a technology base. Simultaneously. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. with significant interests in Instant Coffee. acquisitions and mergers. Unilever Nepal Limited (UNL). In 1996. and its factory represents the largest manufacturing investment in the Himalayan kingdom. HUL has also set up a subsidiary in Nepal. HUL acquired the government's remaining stake in Modern Foods. 1993. It is a rural initiative that targets small villages populated by less than 5000 individuals. . Tea Estates and Doom Dooma. 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. The UNL factory manufactures HUL's products like Soaps.000 crore sales milestone in 2008. the erstwhile Brooke Bond acquired Kothari General Foods. The growth process has been accompanied by judicious diversification. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. As a measure of backward integration. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. HUL launched a slew of new business initiatives in the earl y part of 2000‘s. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). with effect from January 1. In January 2000. were merged with Brooke Bond. besides a common distribution system since 1993 for Personal Products. Finally. deregulation permitted alliances. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.

00 52.10 17. and understanding the ecosystem of local partners. OF SHARES DSP Blackrock Top 100 Equity Fund ." Observing that the market opportunity in lower income segments in India was huge." he said. he said poor household consumption in rural India would equal urban levels within 10 years.79 17.459 4. "More and more companies are targeting the bottom of the pyramid in markets and we need to the change market paradigm to tap the opportunity. Oct.754. Hindustan Unilever Ltd.19 12.47 12.00. Share Holding Pattern in (%) View details SEP' 11 JUN' 11 DEC' 10 SEP' 10 Promoter FII DII Others Total 52. Head of Retail India over next two years.52 17." he observed." he said.Hyderabad. In his keynote address on a seminar on 'Beyond Rich India . leapfrogging of technology.Regular Plan (G) HDFC Top 200 Fund (G) SBI Magnum Tax Gain Scheme (G) DSP Blackrock Equity Fund - 6.88 100. putting the last first.000 women entrepreneurs who sell our products directly to household and retailers in villages.000 by 2010.01 17.52 18.163 2.Lower Income Segments . New mantra The new marketing 'mantra' would consist of principles such as "deep dialogue. "Currently.00 52.158.00 Mutual Funds Holding SCHEME NO.01 17. Mr Baillie said.34 100.Shakti . Mr Rajiv Sabharwal.70 100.80 100. Chief Executive Officer. building of capacities. 28 Hindustan Unilever Ltd is planning to double the strength of its rural women entrepreneurship promotion programme . We will increase their number to over 1. ICICI Bank .390.195 .72 17. according to Mr Douglas Baillie.35 11.A Marketing Opportunity' at Indian School of Business (ISB) here on Saturday.780.92 17.00 52.68 12.338 3. said the bank would leverage technology to tap the rural retail credit demand. there are 42. Rural & Micro Banking Group. "We are working on a smart card that can combine 16 product offerings from our bank to be used in the rural markets.

000 people. HUL 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. two out of three Indians use HUL products. The company was renamed in June 2007 as “Hindustan Unilever Limited”. Co.500 employees and contributes to indirect employment of over 65.Regular Plan (G) More Fund A Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast-moving consumer goods company based in Mumbai. Hindustan Unilever Ltd Type Public Traded as BSE: 500696 BSE SENSEX Constituent Industry Fast-moving consumer goods Founded 1933 Headquarters Mumbai. embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG) Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6. India Key people Harish Manwani (Chairman).4 million outlets in the country. and United Traders Ltd. Maharashtra.Nitin . As per Nielsen market research data. Maharashtra. It is headquartered in Mumbai. when crates full of Sunlight soap bars. Hindustan Vanaspati Mfg. Lever Brothers started its actual operations in India in the summer of 1888. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. India and has an employee strength of over 16. Ltd.

305 crore (US$507. work groups within the Departments . The objective is to arrange these elements in a way that ensures a smooth work flow (in a factory) or a particular traffic pattern (in a service organization).1 million) Employees 16. . are common basic criteria. Space availability within the facility itself. 5. workstations. The amount of space required.500 (2011) Parent Unilever Plc (52%) Layout decisions entail determining the placement of departments. Specification of the objectives and corresponding criteria to be used to evaluate the design. the inputs to the layout decision are as follows: 1. or if this is a new facility. possible building configurations.401 crore (US$4. we examine how layouts are developed under various formats (or work-flow structures). Space requirements for the elements in the layout. 4. Both manufacturing and service facilities are covered in this technical note. Processing requirements in terms of number of operations and amount of flow between the elements in the layout. but we also show examples of how qualitative factors are important in the design of the layout. Food & Beverages Revenue 19. and the distance that must be traveled between elements in the layout.Paranjpe (CEO and Managing Director) Products Home & Personal Care. In our treatment of layout. machines. Estimates of product or service demand on the system. In general. Our emphasis is on quantitative techniques. and stock-holding points within a production facility.27 billion)(2010-2011)[1] Net income 2. 2. 3.

PLANET EARTH ORBITING THE ASSEMBLY LINE IN A GLOBE FACTORY. A product layout (also called a flow-shop layout) is one in which equipment or work processes are arranged according to the progressive steps by which the product is made. available plant space is depicted in Exhibit TN5. On the other hand. Production lines for shoes. the metal forming department. and 3 and 6. for example. information about flow patterns might be abstracted from the records. the departments in a low-volume toy factory might consist of the shipping and receiving department. will have to be modified to reflect the nature of future orders over the projected life of the proposed layout. 40 feet by 40 feet) and that the building is 80 feet wide and 160 feet long (and thus compatible with the department dimensions). Parts for the toys are fabricated in these departments and then sent to assembly departments where they are put together.2. Of course. In many installations. the sewing department. THE GLOBES ARE MOVING THROUGH THE FACTORY USING A TRANSPORT SYSTEM SUSPENDED FROM THE CEILING OF THE FACTORY. If the company has another factory that makes similar products. B A S I C P RO D U C T I O N L AYO U T F O R M AT S The formats by which departments are arranged in a facility are defined by the general pattern of work flow. The expected loads between departments for the first year of operation are tabulated in Exhibit TN5. where areas are dedicated to particular types of medical care. according to the established sequence of operations. Note that in our example. such as all lathes in one area and all stamping machines in another. product layout. and the painting department. A part being worked on then travels. and fixed-position layout) and one hybrid type (group technology or cellular layout). Suppose that we want to arrange the eight departments of a toy factory to minimize the interdepartmental material handling cost. . The first things we would want to know are the nature of the flow between departments and how the material is transported. chemical plants. Initially. are considered adjacent. these data. the plastic molding and stamping department. and car washes are all product layouts P RO C E SS L AYOUT The most common approach to developing a process layout is to arrange departments consisting of like processes in a way that optimizes their relative placement. The path for each part is. from area to area. in effect. a straight line. regardless of their source. there are three basic types (process layout. For example. such information would have to come from routing sheets or from estimates by knowledgeable personnel such as process or industrial engineers. optimal placement often means placing departments with large amounts of interdepartmental traffic adjacent to one another. A process layout (also called a job-shop or functional layout) is a format in which similar equipment or functions are grouped together. let us make the simplifying assumption that all departments have the same amount of space (say. such as maternity wards and intensive care units. This type of layout is typical of hospitals.1. diagonal moves are permitted so that departments 2 and 3. if this is a new product line. where the proper machines are located for each operation.

Company structure Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. (The ―distances‖ are taken from Exhibit TN5.4 presents this information.) The third step is a search for departmental changes that will reduce costs. Exhibit TN5.7 (whose total cost is $3. is given in Exhibit TN5.4. and so forth.6. and cloth particles might drift onto painted items. including over 1400 managers The fundamental principle determining the organisation structure is to infuse speed and flexibility in decisionmaking and implementation. $60 between Departments 1 and 7 ($3 × 20 moves). (Department 4 is arbitrarily selected for this purpose.2 or TN5. it seems desirable to place Departments 1 and 6 closer together to reduce their high move-distance costs. four Executive Directors and four Non-Executive Independent Directors. We would note. not Exhibit TN5.000 employees. introducing the hazard that lint. However. It is present in Home & Personal Care and Foods & Beverages categories.550). thread. thereby affecting their move-distance costs and the total cost of the second solution.5 shows the revised layout resulting from relocating Department 6 and an adjacent department. Board of Directors The Board of Directors of the Company represents an optimum mix of professionalism. it is rarely easy to decide the correct ―obvious move‖ on the basis of casual inspection. Clearly. . this requires shifting several other departments. showing the cost changes. knowledge and experience. HUL has about 15. The total strength of the Board of Directors of the Company is nine Directors.3. On the basis of the graph and the cost matrix. doubling the distance between Departments 6 and 7 accounted for the major part of the cost increase. first of all. This points out the fact that.) The revised cost matrix for the exchange. with empowered managers across the company‘s nationwide operations. that our shipping and receiving department is near the center of the factory—an arrangement that probably would not be acceptable. The sewing department is next to the painting department. $60 between Departments 1 and 5 ($2 × 30 moves). comprising NonExecutive Chairman. Suppose that we do arrive at a good solution solely on the basis of material handling cost. even in a small problem. Exhibit TN5. Note the total cost is $262 greater than in the initial solution. which is derived as follows: The annual material handling cost between Departments 1 and 2 is $175 ($1 × 175 moves). such as that shown in Exhibit TN5. $240 between diagonal Departments 2 and 7 ($3 × 80).The second step is to determine the cost of this layout by multiplying the material handling cost by the number of loads moved between each pair of departments.

Detergents and then Product Manager . Paranjpe worked as Area Sales Manager . Mr. Executive directors The Executive directors are members of the HUL Management Committee as well as the Board of HUL. In his early years in the Company. Sridhar .CEO and Managing Director Mr. Sridhar Ramamurthy (47) is a Chartered Accountant (Gold Medallist) as well as a Cost Accountant and Company Secretary.Chief Financial Officer Mr. Nitin Paranjpe (48) joined the Company as a Management Trainee in 1987. Mr.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. Mr. R. Nitin Paranjpe .Detergents. .

including Skin Care. Gopal Vittal . A. Mr Pradeep Banerjee . Non-executive directors The Company has Non-Executive Chairman and four Non-Executive Independent Directors Mr.Independent Director Mr.Mr. Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980. Gopal Vittal (44) has 21 years experience in Marketing & Sales in the FMCG market. Mr. Harish Manwani (57) assumed charge as the Non-Executive Chairman of the Company with effect from 1st July. .Executive Director. A.Executive Director. Soaps and Laundry. Home & Personal Care Mr. Supply Chain Mr. Narayan . Harish Manwani . 2005.Chairman Mr. Narayan (59) began his career as a Management Trainee with ICI India Limited (now AkzoNobel India Limited) in 1973.

Mashelkar .I. Europe and USA. O.Independent Director Mr. Ramadorai (66) is the Vice . a network of publicly funded R&D institutes from Asia . CSIR Bhatnagar Fellow. is presently also the President of Global Research Alliance.B. Mr.Mr. R. R. Dr.Pacific. Bhatt (60) is the former Chairman of S. A. S. (State Bank of India) . P.Independent Director Dr.Independent Director Mr. O. Mashelkar (68). S. Mr. Bhatt . Ramadorai was conferred the esteemed Padma Bhushan by the President of India in recognition of his contributions to IT industry of the Country. A. P.Chairman of Tata Consultancy Services Limited. Ramadorai .

The Management Committee is headed by Mr. Nitin Paranjpe (48) joined the Company as a Management Trainee in 1987. Nitin Paranjpe and has functional heads as its members representing various functions of the Company Mr. Home & Personal Care Mr. including Skin Care. Sridhar Ramamurthy (47) is a Chartered Accountant (Gold Medallist) as well as a Cost Accountant and Company Secretary. In his early years in the Company. Mr. Soaps and Laundry. R. Mr.Detergents. Gopal Vittal . Mr.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. Sridhar .Detergents and then Product Manager .CEO and Managing Director Mr.Executive Director.Chief Financial Officer Mr. Gopal Vittal (44) has 21 years experience in Marketing & Sales in the FMCG market. Paranjpe worked as Area Sales Manager . Nitin Paranjpe . .

Jamshedpur. Geetu Verma. . Foods Ms. has over twenty two years of marketing. Geetu Verma (45). Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980. HR Ms. business and innovation experience in leading FMCG firms – P&G. Mr Pradeep Banerjee . Leena Nair . Supply Chain Mr. Hemant Bakshi (47) joined the Company in June 1989 and has worked in various sales and marketing assignments spanning across Personal Products and Home Care categories. Hemant Bakshi . Seagram. Sales and Customer Development Mr.Executive Director. Leena (40) is an Electronic Engineer who discovered her passion for people and HR and switched lanes.Executive Director.Ms. Executive Director. She is a gold medalist and MBA in HR from XLRI.Executive Director. Mr. PepsiCo in India and Europe. Ms.

wherever they are in the world. Quality Policy Our Quality Policy describes the principles that everyone in Unilever follows. HUL Policies Unilever is committed to providing the very best not only to our customers but also to the environment. Read up on some Unilever policies that aim to do just that. Legal and Company Secretary Mr Dev Bajpai (45) is a Fellow Member of the Institute of Company Secretaries of India and has a law degree from University of Delhi. Environment Policy The aim of the Policy is to do all that is reasonably practicable to prevent or minimise. and the high standards we set. to ensure that we are recognised and trusted for our integrity. its use or foreseeable misuse. encompassing all available knowledge and information. the quality of our brands and products. the risk of an adverse environmental impact arising from processing of the product.Mr Dev Bajpai – Executive Director. .

on a scientifically established basis. the Company is committed to exhibit the highest standards of corporate behaviour towards its consumers. . its use or foreseeable misuse. employees. In doing so. performance and safety. the risk of an adverse environmental impact arising from processing of the product. The aim of the Policy is to do all that is reasonably practicable to prevent or minimise. the societies and the world in which we live. Affirmative Action Policy HUL is a signatory to the CII Code of Conduct on Affirmative Action and affirms its recognition. Environment Policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and industry. Our Commitment The company recognises its joint responsibility with the Government and the Public to protect environment and is committed to regulate all its activities so as to follow best practicable means for minimising adverse environmental impact arising out of its operations.Safety & Health Policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and customers. The company is committed to making its products environmentally acceptable. encompassing all available knowledge and information. while fulfilling consumers' requirements for excellent quality.

Encourage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and co-operate with other members of the supply chain to improve overall environmental performance. Review environment performance when visiting units and recognise exemplary performance. The Management Committee. Work in partnership with external bodies and Government agencies to promote environmental care. We will achieve this through an Integrated Environment Management approach. This document defines the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid down. Verify compliance with these standards through regular auditing.  Accordingly. Management at all levels. It is applicable to all company operations covering its plantations. apply more stringent criteria than those required by law. manufacturing. The Management Committee will: Set mandatory standards and establish environmental improvement objectives and targets for HUL as a whole and for individual units. and ensure these are included in the annual operating plans. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks. which focuses on People. sales and distribution. Technology and Facilities. The Environment Policy Hindustan Unilever Ltd. which are scientifically sustainable and commonly acceptable. . research & innovation centres and offices. HUL's aims are to: Ensure safety of its products and operations for the environment by using standards of environmental safety.     Corporate Responsibilities         The Board and the Management Committee of HUL is committed to conduct the company operations in an environmentally sound manner. increase understanding of environmental issues and disseminate good practice. Ensure that all employees are made aware of individual and collective responsibilities towards environment. introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. Establish systems for appropriate training in implementation of Environment Management Systems at work. (HUL) is committed to meeting the needs of customers and consumers in an environmentally sound manner. through the nominated environmental coordinator will: Ensure implementation of HUL Policy on environment and compliance with Unilever and HUL environmental standards and the standards stipulated under relevant national / local legislation. The Policy applies to development of a process. Arrange for expert advice on all aspects of environment management. supported by Management Commitment as the prime driver. from research to full-scale operation. The Vision Our vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of our operations. Formally review environment performance of the company once every quarter.This Policy document reflects the continuing commitment of the Board for sound Environment Management of its operations. Involve all employees in the implementation of this Policy and provide appropriate training. is responsible and will be held accountable for company's environmental performance. Develop. product and services. When believed to be appropriate. through continuous improvement in environmental performance in all our activities. jointly with employees.

Ensure that treatment techniques are developed for any wastes generated as a result of the new product/process and is incorporated into the process specifications. look good and get more out of life. Concerned line managers / heads of departments are responsible for environmental performance at department levels. we need to consistently deliver branded products of excellent quality. Report environmental statistics to HUL Corporate Safety & Environment Group on a monthly basis.Individual Units The overall responsibility for environment management at each unit will rest with the Unit Head. Ensure formal environmental risk assessment to identify associated environmental aspects and take appropriate steps to control risks at acceptable levels. who will ensure implementation of HUL Policy on environment at unit level. the heads of these units will: Ensure that a formal and systematic risk assessment exercise is undertaken during the process/product development stage with specific reference to environmental impact. Ensure periodic audits to verify compliance with environment management systems and personally carry out sample environment audits to check efficacy of the systems. Research and Innovation Centres Since most new products and processes are developed in these Units. Transfer technology to the pilot plant and main production through a properly documented process specification which will clearly define environmental impact and risks associated with processes. Agree with the Management Committee Member responsible for the unit. products. And a key requirement is building in the quality expectations of our consumers into our products. transport and storage. Provide appropriate training to all employees. hygiene and personal care with brands that help people feel good. Ensure that all new operations are subjected to a systematic and formal analysis to assess environmental impact. specific environmental improvement objectives and targets for the unit and ensure that these are incorporated in the annual objectives of the concerned managers and officers and are reviewed periodically. the Unit Head will:         Designate a unit environment coordinator who will be responsible for co-ordinating environmental activities at unit. Ensure that the unit complies with Unilever and HUL mandatory standards and the relevant national and state regulations with respect to environment. raw material and finished product handling. certain additional responsibilities devolve on them to ensure implementation of the Environment Policy of the company. We understand the different needs of our consumers and customers and strive to develop and deliver superior . In addition to the Unit Head's responsibilities outlined above. In order to fulfill the requirements of the Environment Policy at each site.    Quality Policy Unilever‘s mission is to meet everyday needs for nutrition. Our Commitment To win consumers‘ confidence and loyalty. Findings of such exercises should be implemented prior to commencement of the activity. collating environmental statistics and providing / arranging for expert advice.

brands to ensure that they‘re the preferred choice. to ensure that we are recognised and trusted for our integrity. and to anticipate and develop future quality capability requirements. manufacturing and customer service processes and is also expected of our business partners. cut waste. promote transparency and share best practice. We actively promote our Quality Policy and have a quality assurance organisation in place to ensure consistency and visibility of quality standards. Putting consumers and customers at the heart of our business We actively engage our consumers and customers. thus creating consumer value wherever we position our products. in all that we do. 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. and will ensure that we deliver our quality objectives and targets. and the high standards we set. reduce costs and drive profitability. Our Quality Policy describes the principles that everyone in Unilever follows. The drive for quality. And we‘ve forged effective working relationships with suppliers and contract manufacturers. translating their needs and requirements into our products and services. is a passion reflected in our brand development. and we‘re setting a benchmark for the business. of excellent quality. These standards ensure we design. the quality of our brands and products. This is at the very heart of our innovation process. wherever they are in the world. We have stringent mandatory quality standards in place against which compliance is verified through regular audits and self assessments. manufacture and supply products that are safe. we‘re able to do things right first time.   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. We regularly measure and improve our performance using both internal and external measures. We provide appropriate training and resources. And by applying consistently high standards. Comprehensive management procedures are in place to mitigate risks and to protect our consumers and markets. 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. Principles of the Quality Policy  Putting the safety of our products and our consumers first.  . We partner with stakeholders to provide leadership.

environmental issues (Green environment) and Legal environment. Journals –For Company and Industry) Key Competitors Environmental Scanning –Political environment. technological environment.  Porters five forces model of competition –Michael Porter Chapter-2  GROWTH RATE . Economic environment. Socio-Cultural Environment. Contribution to GDP) Current Issues (From Newspaper.Chapter 2:     Industrial Analysis Industry Overview –(Growth rate of Industry.

Biomass Boilers set up at HUL units across India . our people and our processes. The HUL Supply Chain team has come up with a number of unique initiatives across units to reduce CO2 emissions thereby reducing environmental footprint in our manufacturing operations.CURRENT ISSUES. Biomass Boilers in HUL units help reduce CO2 emissions 15-02-2012 : Biomass Boilers in HUL units help reduce CO2 emissions Unilever has set three big goals under Sustainable Living Plan to achieve by 2020 and these are: • Halve the environmental footprint of our products • Help more than 1 billion people take action to improve their health and well-being • Source 100% of our agricultural raw materials sustainably HUL has been continuously striving to contribute to the audacious goal by integrating these objectives into our brands.

construction of bunds. a farmer in Sonashi village in Maharashtra's Nashik district. The Spring water facility is cleaned every week by the villagers. The project is expected to deliver results over five years and benefit 900 families in the region." says Laxman Bhangre. An estimated 120 tribal families in Nashik district have. He earns Rs 15. 38.000 a year that is barely sufficient to support his family. A spring water facility which has been developed in Sonashi village supplies 70. the manufacturing operations at the Chiplun and Puducherry units saw a remarkable reduction of 11. The biomass boilers have been set up across Chiplun.8% of the total load.000 tonnes per annum in the C02 emissions. which yields two to four quintals of rice. Some of the other units where it is expected to rollout shortly are Haridwar. benefited from the Water conservation project initiated jointly by Hindustan Unilever Ltd (HUL) and Maharashtra Institute of Technology Transfer for Rural Areas (MITTRA). respectively. Nashik and Mysore.98 lakh while the check damn project costs Rs 8. The children in the village now fall ill less frequently. Goa. We consume most of it and the rest is sold. The first fully integrated and automated Multimedia boiler and biomass briquettes . an NGO promoted by Bharatiya Agro Industries Foundation (BAIF). he has adopted a four-step method of paddy cultivation and expects to harvest some extra quintals of rice. With the biomass boilers in place. Hosur and Kandla. spring development to provide drinking water for human consumption as well as animals. which is 7. increase crop production by 50 per cent. and seeding. Construction of check dams for irrigation. and planting on the bunds are some of the other activities under the project. . This reduction in CO2 emission levels spurred further implementation of the boilers in other HUL units.000 for every participating farmer. and generate employment. At the end of five years the project aims to create an additional 287 acres of cultivable land in these villages.000 litres a day and serves 50 families. Reducing Carbon Emission With this implementation.6 million euro in 2011. HUL partners with MITTRA for water conservation project in Nashik 15-01-2012 : "I have a small piece of land. Puducherry. The farmers each contribute Rs 300 towards the project. in locations which face acute water shortage. Mysore and Nashik factories in 2011. CO2 emission is expected to reduce by 28. The success of these projects has been driven by establishing public-private partnerships involving the local communities. The Mysore factory added impetus to the project by utilizing in-house generated wet coffee and ETP sludge as fuels for the boilers. Hindustan Unilever has been working for more than a decade in the area of water conservation in partnership with NGOs and local communities across the country. which is a public-private partnership involving local communities.One such initiative is setting up of Biomass Boilers that help reduce CO2 emissions from factories. The project is a part of HUL's Sustainable Living Plan and aims to help tribals adopt improved agricultural practices that promote effective utilisation of water. Chiplun and Puducherry units that had first set up Biomass Boilers in 2008 were retrofit of the existing oil fired boilers which were low in efficiency and manual in operation.000 tonnes and 10. The water harvesting and utilisation project (spring development) costs Rs 1.was carried into the Goa. as part of a water conservation project.which could burn spent coffee waste and ETP (Effluent Treatment Plants) waste . along with generating a total savings of 2.314 tonnes per annum. This year.11 lakh. while HUL contributes Rs l.

and provide a rich mouthful of flavour. With its special packaging created to keep the coffee fresh and aromatic. undiluted cup of robust coffee for coffee lovers who enjoy life and live each moment 100%. Gopal Vittal. executive director of the home and personal care business and considered the second most powerful executive after CEO Nitin Paranjpe at Hindustan Unilever. Beverages. 48 for a 25gm jar. Shahid Kapoor and Priyanka Chopra feature in the campaign. Bollywood stars. Vice President. . " Second top-level exit in the last one year. The product is a 100% coffee (non- chicory). The essence of the campaign is about taking every regular. 10 for an 8gm pack. HUL has initiated projects in several states in India that will help to conserve more than 50 billion litres of water by 2015. The special snap-fit cap of the jar ensures that the aroma and taste of this delectable coffee is preserved. Arun Srinivas. The packaging is stylish and trendy. 169 for a 100gm jar. "Bru Gold is our offering of a pure. and is in the form of a triangular jar. Bru Gold .a 100% coffee launched in India 29-12-2011 : Bru launched its new variant. The television campaign for the product encapsulates the idea of living life 100% by making the most of every moment with every sip of 100% coffee. 90 for a 50gm jar and Rs. one of the country's largest multinational.This has helped to not only sustain these projects but also to scale them. announced he was quitting the firm. Bru Gold this November. and has a distinct aroma and taste. Rs. Bru Gold is made of a fine blend of Robusta and Arabica beans that lend their aromatic & tasteful notes to the coffee. Hemant Bakshi a logical choice to fill the void I n a surprise move. The product is available at Rs. mundane moment and converting it into something special and extraordinary. Hindustan Unilever said. we are sure that consumers will definitely fall in love with Bru Gold. Rs.

Ahmedabad in 1992. In the last one and a half years. Vittal has not disclosed what he plans to do next. Sunil Mittal picked him out as a top-level lateral hire. It was the first time the company had taken an ex employee directly into the board possibly superceding others in the line of succession. . Shortly after he took charge of the HPC business. back his people and raise performance standards. HUL's mainline detergent business was facing huge competition from P&G's Tide. It is unclear who will now take over at the helm of the largest division at HUL. He was responsible for leading HUL's initiative to treble rural direct distribution coverage. The three and a half year stint as executive director of Hindustan Unilever was Vittal's second stint at the company. HUL's market value has climbed 60 percent since Paranjpe took over. Gopal Vittal. Bakshi is currently the executive director sales and customer development. (executive director of the home and personal care business. He joined the company as a management trainee after graduating from the Indian Institute of Management. But in 2006. (Read what CEO Paranjpe told Forbes India about the turnaround in fortunes ). the no-nonsense executive was able to take quick leadership calls. but he eventually stuck to his decision to move on. appointing him as director marketing and communications at Bharti Airtel's mobile telephony business. Vittal and the rest of the senior team were not only able to weather the storm. Our calls to HUL spokespersons were unanswered. he was able to get Vittal to come back to HUL. but eventually persuaded to stay back by the then chairman MS 'Vindi' Banga. Lux and Surf. HUL) As a key member of Paranjpe's team. Seen as a maverick and fiercely entrepreneurial. In early 2000s. HUL's CEO Nitin Paranjpe When Paranjpe took over as the CEO. Axe. If Paranjpe decides to pick an internal candidate. he had almost been lured away by Reckitt Benckiser. There were significant questions around HUL's overall performance and competitiveness. the home and personal care business emerged as a powerful engine of growth. Hemant Bakshi could emerge as a logical choice. Paranjpe. Vittal was responsible for consolidating and rejuvenating HUL's home and personal care business (HPC). which consists of marquee brands like Dove. Speculation has it that it could even include starting up a new entrepreneurial venture.Insiders say the company tried to persuade Vittal to change his mind for the past several weeks.

He has virtually no resources. Managers have a mindset that manages resources. but he has big dreams and there is a mismatch . I had given him the most obvious answer with which he wasn‟t pleased. Prahlad. During the course of the mentorship. The company‟s market cap is up nearly 60 percent to Rs. According to him. who was on the board of Hindustan Unilever.K. which is a steady state condition. the only difference between the two is the relationship between ambition and resources. he asked me the difference between an entrepreneur and a manager. 84. had chosen to mentor some of us. ambition (A) equals resources (R).HUL's Nitin Paranjpe On The Capacity To Fail HUL CEO believes that when you set your ambitions way beyond the resources available to you. you eliminate the fear of failure Image: Mallikarjun Katakol for Forbes India Name: Nitin Paranjpe Age: 48 Designation: Chief Executive Officer. There is no entrepreneur who starts off with A=R. So. the late C. while profits are up 17 percent. Hindustan Unilever The Challenge: To reignite growth at India‟s largest consumer goods company What He Has Achieved: Sales have grown by a third.020 crore How He Did It: He got employees to focus on both short-term and long-term goals In 1999.

000 more outlets in a year. Hindustan Unilever’s Bharat Darshan The new consumers in India‟s villages are ambitious and demanding just like their urban counterparts. I quickly discovered that most people don‟t achieve much when you give them a slightly higher target because they operate out of a fear of failure. So when HUL chairman Harish Manwani announced on the sidelines of its annual general meeting in July that the company was in the midst of trebling its rural coverage over two years. Both have to be done. Hemant Bakshi realised he had an interesting problem on his hands.between ambition and resources. In hindsight. For this. it was the most irrational decision. but look at what we achieved. This at a time when we had been adding just 15. But for the next two and a half decades. And Hindustan Unilever is responding to the change with a distribution overhaul S oon after he assumed his new role two years ago. we came up with an ambitious plan to add 500. it set the cat among the pigeons. Bakshi had to find a solution that had eluded the company for nearly 25 years. Ambition is substantially greater than resources. . this month and this quarter and the other part is how do I shape this business and make it „future-proof‟ five years from today. We found a way to speak for the business in the short term but „tangibilised‟ it for the long term. Part of it is looking at this week.000-20. It had taken more than seven decades for Hindustan Unilever‟s famous distribution juggernaut to directly reach a million outlets across the country. How would it feel to do what no one has ever done before? How would it feel to get there? Most people say we either need to do short term or long term. So.000 outlets a year. This increase in rural coverage will be a big leap. I say we have to run the business with a bifocal lens. When you increase the target so dramatically it becomes impossible to have a rational dialogue. Bakshi‟s senior colleagues simply couldn‟t find a viable way to expand its direct distribution model. As Hindustan Unilever‟s executive director in charge of customer development. we needed to articulate in a compelling manner what we need to do for the long term and the actions that we need to do now. The trick lies in getting people to suspend belief and judgement for a while and paint them a picture that in theory it could happen.

so did hundreds of other competitive brands.000. . we have to continuously create new gaps.000-odd villages in the country. Pradeep Kashyap. a low income farmer. HUL had relied on its network of 2. But then. if they knew they had to sell on credit to.700 redistribution stockists and substockists to supply products to stores in large villages. HUL had little or no control over the distribution chain. Starting 2001.” Manwani had said. While the model served the company well. There was another issue: availability of credit. At best. HUL‟s distribution machine pushed deeper into the hinterland. At one stage. This way. they used higher trade margins to snatch away HUL‟s business. say. In the late 1990s.000 people. where it used women entrepreneurs in distant villages to stock and sell its brands. rotate their stock and reach even villages with a population of 5. will be a huge driver of future growth. says he‟s seen several instances of shopkeepers offering low-priced brands (other than HUL). “It is crucial for a company to offer credit to shopkeepers. it began expanding its reach through Project Shakti. For smaller villages with a population of less than 5.000 women entrepreneurs. And from time to time. Through Project Streamline.” says Kashyap. It isn‟t as if HUL‟s brands didn‟t find their way to the 637. But Project Shakti was also the last round of expansion in distribution that the company undertook. its products were sold through wholesalers. when a rich farmer came along. Sales through the wholesale channel are seldom done on the basis of credit.000 people. it created a hub and spoke system and appointed sub-dealers who had the opportunity to serve villages in their vicinity. HUL took its first tentative step to expand rural distribution. Shopkeepers from these villages would travel to these wholesalers and to pick up their supplies as and when it suited them. “While competitors are closing gaps. it has a vibrant network of 40. And this can be done only by direct distribution.“and to my mind. the distribution in these villages was patchy and the company had no strategy on whom to cover and whom to leave out. CEO of rural marketing consultancy MART. a bar of Lux soap automatically comes out of the bottom shelf. Today. it found it difficult to expand into villages with less than 5. On the other hand. So. till the cost-benefit ratio began to work against the company. Sometimes wholesalers known as star sellers would hire a van and do some distribution on their own. it invariably did. here‟s the moot point: Just how did Bakshi‟s team take the big leap forward? The Way It Was In the past. Thanks to the remarkably efficient network of wholesale traders.” So had HUL stumbled upon a new magic formula all of a sudden that would help it crack open the large rural opportunity? That ensured that HUL distributors were able to keep costs low.

These expectations were then mapped with the areas in which HUL wanted to focus. . we also spoke to external thought leaders and opinion formers about their expectation on issues that should be material to us. We call this 'doing well by doing good'. it had to fix distribution first.With revenues from Project Shakti doubling every two years. Lever knew the next significant opportunity was in rural India.Issues our parent company Unilever is focusing on. STAKEHOLDER Priority Issues HUL Priority Issues Nutrition & Hygiene Water Sustainable Livelihoods Waste from Production Packaging Issues to Watch Green House Gases (GHG) Basic Issues Issues to Watch Education Climate change Health . . Building a robust strategy through stakeholder engagement: Apart from the above three filters. it is necessary to address them in a systematic manner to make a real difference to India. These have been arrived at using following three filters: . Building a sustainable business We see opportunities to grow our business by addressing some of the most important social and environmental challenges facing India today.Areas of capability and competence with which we can make meaningful impacts. Scoping issue areas While the issues are many. To ensure a deep impact instead of spreading thin across all issues.Millennium Development Goals which rank high for India. But to get in on the action. we have chosen three areas of impact.

Changing Scope of Corporate Responsibility (CR) Historically CR in India has been mainly seen as philanthropic actions of business houses. etc.Improve eco efficiency of our operations Apart from the above three areas. doing well & doing good have always been two sides of the same coin.Address health issues through hygiene and nutrition Economic . This is a myopic view of the impact that a business can tangibly have on the society. have always been areas of focus and action for us. At HUL. labour rights. has widened its scope to cover the social. which reflects the companies environmental & social initiatives in the communities were two different domains. employee health & safety. which is reflection of financial results and doing good.Basic Issues Corruption and Ethics Employee health and safety Labour rights Product safety Based on the scoping process. the basic issues such as product safety. Corporate Responsibility. HUL has identified: Social . environmental and economic impacts of a company‘s operations and that of its value chain. The new era compels the integration of these two domains. In the past doing well.Enhance livelihoods of vulnerable communities Environment . Doing Well Grow markets Fuel Innovations Risk free Supply Chain & material security Attract and retain talent Corporate reputation Doing Good Address health issues through hygiene and nutrition Enhance livelihoods of vulnerable communities Improve eco efficiency of our operations . today.

cr.43 434.49 84.45 33.53 7.86 1.420.58 315.33 716.430.86 2.) Sales Turnover 19.806.61 70.61 1.40 160.38 600.45 1.71 1.305.01 15.30 3.88 227.05 140.20 1.88 376.920.333.30 182.43 - Net Profit Total Assets HUL Dabur India Godrej Consumer Colgate Marico Godrej Ind Gillette India P and G Emami Bajaj Corp Jyothy Labs Amar Remedies JHS Svendgaard GKB Ophthalmics 381.644.15 150.95 8.977.67 13.15 359.84 1.33 600.09 1.759.633.95 392.01 85.467.25 1.03 15.98 6.63 Political  Taxation policy  Environmental protection laws  Employment laws Economical  Inflation  Employment  Disposable income  Business cycles  Energy availability and cost .80 102.Competition.65 82. Name Last Price Market Cap.75 1.84 9.18 384.65 6.296.96 123.51 1.44 608.50 444.164.442. (Rs.52 26.353.47 413.33 133.64 2.50 41.27 38.97 471.380.92 1.57 2.107.67 2.10 80.62 906.91 367.68 1.02 578.20 119.85 18.514.00 263.07 - 2.96 402.287.

It is a part of the external analysis when conducting a strategic analysis or doing market research. inserting Environmental factors expanded it to PESTEL or PESTLE. Technological. Ecological. and Regulatory factors. The model has recently been further extended to STEEPLE and STEEPLED. Some analysts added Legal and rearranged the mnemonic to SLEPT. It is a useful strategic tool for understanding market growth or decline. Economic. Economic. and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. which is popular in the United Kingdom. potential and direction for operations. adding Ethics and demographic factors. .Social  Demographics  Distribution of income  Social mobility  Lifestyle changes  Consumerism  Levels of education Technology  New discoveries and innovations  Speed of technology transfer  Rates of obsolescence  Internet  Information technology  Business cycles  Energy availability and cost PEST analysis stands for "Political. STEER analysis systematically considers Socio-cultural. business position. and gives an overview of the different macro-environmental factors that the company has to take into consideration. Social. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework.

Trends in social factors affect the demand for a company's products and how that company operates. farming. They can determine barriers to entry. Furthermore. age distribution. companies may change various management strategies to adapt to these social trends (such as recruiting older workers). and insurance. Environmental factors include ecological and environmental aspects such as weather.Political factors are how and to what degree a government intervenes in the economy. These factors have major impacts on how businesses operate and make decisions. which may especially affect industries such as tourism. automation. interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Economic factors include economic growth. career attitudes and emphasis on safety. technology incentives and the rate oftechnological change. and lead to innovation. Specifically. minimum efficient production level and influence outsourcing decisions. labour law. tariffs. quality. and political stability. Furthermore. trade restrictions. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bad). growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer. population growth rate. For example. both creating new markets and diminishing or destroying existing ones. exchange rates and the inflation rate. Technological factors include technological aspects such as R&D activity. an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). . For example. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy Social factors include the cultural aspects and include health consciousness. political factors include areas such as tax. Furthermore. interest rates. environmental law. climate. and climate change. technological shifts can affect costs.

the nature of competition in any industry is personified in the following five forces: i. the managers should use the five forces framework to determine the competitive structure of industry. Threat of new potential entrants Threat of substitute product/services Bargaining power of suppliers Bargaining power of buyers Rivalry among current competitors. Entry of new players increases the industry capacity.Porters five forces model of competition –Michael Porter Michael Porter (Harvard Business School Management Researcher) designed various vital frameworks for developing an organization‘s strategy. The threat of entry by potential competitors is partially a function of extent of barriers to entry. iv. ii. These forces jointly determine the profitability of industry because they shape the prices which can be charged. Let‘s discuss the five factors of Porter‘s model in detail: 1. v. The potential of these forces differs from industry to industry. The various barriers to entry are• • • • • • Economies of scale Brand loyalty Government Regulation Customer Switching Costs Absolute Cost Advantage Ease in distribution . According to Porter. iii. and the investment required to compete in the industry. begins a competition for market share and lowers the current costs. The five forces mentioned above are very significant from point of view of strategy formulation. One of the most renowned among managers making strategic decisions is the five competitive forces model that determines industry structure. Risk of entry by potential competitors: Potential competitors refer to the firms which are not currently competing in the industry but have the potential to do so if given a choice. Before making strategic decisions. the costs which can be borne.

Strong suppliers can extract profits out of an industry by increasing costs of firms in the industry. Their product is an important input to buyer‘s product. Bargaining Power of Suppliers: Suppliers refer to the firms that provide inputs to the industry. It presents a stagnant view of competition. Bargaining Power of Buyers: Buyers refer to the customers who finally consume the product or the firms who distribute the industry‘s product to the final consumers. and the capital investment essential for survival and competition in industry. 4. Also. This term refers to the reliance that develops between the companies whose products work is in combination with each other. Substitutes pose a ceiling (upper limit) on the potential returns of an industry by putting a setting a limit on the price that firms can charge for their product in an industry. they are regarded as a threat. etc) or the costs of industry in other ways. They pose credible threat of backward integration. The power of Porter‘s five forces varies from industry to industry. This five forces model also help in making strategic decisions as it is used by the managers to determine industry‘s competitive structure. Strong complementors might have a strong positive effect on the industry. Lesser the number of close substitutes a product has. these five forces influence the profitability as they affect the prices. They have high switching cost. Extreme rivalry among established firms poses a strong threat to profitability. Whatever be the industry. greater is the opportunity for the firms in industry to raise their product prices and earn greater profits (other things being equal). Buyers are not significant to strong suppliers. 5. however. Bargaining power of the suppliers refer to the potential of the suppliers to increase the prices of inputs( labour. They emphasize upon quality products. they are regarded as a threat.complementaries. Strong suppliers‘ products are unique. They have full information about the product and the market. They purchase in large quantities. They pose credible threat of forward integration. Rivalry among current competitors: Rivalry refers to the competitive struggle for market share between firms in an industry. Porter ignored. Strong buyers can extract profits out of an industry by lowering the prices and increasing the costs.• Strong Capital base 2. a sixth significant factor. In this way. the costs. the five forces model overlooks the role of innovation as well as the significance of individual firm differences. Threat of Substitute products: Substitute products refer to the products having ability of satisfying customers needs effectively. services. raw materials. . Suppliers products have a few substitutes. In this way. The strength of rivalry among established firms within an industry is a function of following factors: • • • • • • • Extent of exit barriers Amount of fixed cost Competitive structure of industry Presence of global customers Absence of switching costs Growth Rate of industry Demand conditions 3. Bargaining power of buyers refer to the potential of buyers to bargain down the prices charged by the firms in the industry or to increase the firms cost in the industry by demanding better quality and service of product.

Targeting and Positioning) Distribution Channels Promotion Strategies Chapter-3 Food brands HUL is one of India‘s leading food companies. Our passion for understanding what people want and need from their food .and what they love about it . Red Label Brooke Bond Red Label… 'Chuskiyaan Zindagi ki' .makes our brands a popular choice Brooke Bond 3 Roses Exquisite taste in a cup of tea that is also good for your health! Annapurna Partnering with the mom in nurturing her dreams. Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.Chapter 3:      Marketing Strategies Products of Company 4 Ps (Product: Price. Place & Promotion) STP (Segmentation.

Brooke Bond Taaza Brooke Bond Taaza Brooke Bond Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer. Bru Bru se hoti hain khushiyaan shuru… Kissan Eat Happily. nutritious. Knorr Knorr helps families make meal times special. Kwality Wall‘s A good honest scoop of daily pleasure. tasty and healthy. Grow Happily. .

Lipton Lipton has a range of vitality teas that truly encompass the goodness of tea. Active Wheel New Active Wheel – with Power of lemons and freshness of thousands of flowers! Cif Cif. Hygienically produced & Reliably Safe Bread Brooke Bond Sehatmand BB Sehatmand – Jo Sehatmand Woh Aage Har Dum!! (One who is healthy is a step ahead….the best cleaner to let you shine. . Always) Home care brands HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. Modern Modern – A Wholesome & Nourishing.

.Comfort The world‘s largest fabric conditioner brand. safe in the knowledge that Surf Excel will remove those stains Vim Created in 1885. Rin Rin provides ‗best in class whiteness‘ which is demonstrable. Sunlight Sunlight is a color care brand Surf Excel Giving your kids the freedom to get dirty and experience life. Domex The sheer power of Domex bleach gives you the confidence you need. the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later. eradicating all known germs.

Clear New CLEAR with Nutrium 10 goes 3 layers deep** into the scalp to nourish such that Dandruff Wont Come Back*! . with the goodness of glycerine gives soft. They help consumers to look good and feel good – and in turn get more out of life. Pond's. Lux. Aviance Aviance enables women actualize their unique potential through expert customized beauty solutions.Personal care brands Our personal care brands. Breeze Breeze. fragrant and smooth skin. Axe Axe with Best Quality Fragrance LEVER Ayush Therapy LEVER Ayush aims to help a new generation of Indians rediscover everyday health and vitality through customized Ayurvedic solutions. are recognised and love by consumers across India. including Axe. Dove. Rexona and Sunsilk.

All around the world. Hamam Holistic skin care experiences perfected over the ages to deliver healthy. outside long! Closeup Freshness that brings you Closer Dove Dove stands for real beauty. beautiful skin .makes hair inside strong. a unique brand was born. Dove is making real women feel more beautiful! Fair & Lovely More than 30 years ago. Wrapped within a humble lavender tube.1 Fairness cream.Clinic Plus Clinic Plus . it went on to become the World‘s No.

enabling her to realize the potency of her beauty. Lifebuoy Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash.Lakme Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus. catering to the entire family. Liril 2000 Liril 2000-Now come closer to your loved ones Lux Lux – For soft and smooth skin! Pears Pears – the purest and most gentle way to skincare! Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians. .

giving you water that is "as safe as boiled water". a breakthrough offering of Hindustan Unilever (HUL).Pond‘s Get the expert to look after your skin Rexona Rexona gives you silky skin irresistible to touch that keeps the romance alive! Sunsilk Sunsilk has had a re-style! Vaseline Your skin is amazing. It deserves to be treated as such. provides complete protection from all water-borne diseases. unmatched convenience and affordability. Water Pureit is the world‘s most advanced in-home water purifier. Pureit‘s unique Germkill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities. Pureit. It assures your family 100% protection .

Ensures total safety because when the germ kill power is exhausted. from one of the toughest regulatory agencies in the USA. Pureit does not leave any residual chlorine in the output water. The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. warning you to replace the battery Advanced Auto-Switch off . electricity or continuous tap water supply. as an additional assurance of safety. For a free home demo. Battery Life Indicator . or to purchase Call Pureit Helpline : 09223 200 200 *at a water temperature of 25° Celsius.In case. Pureit not only renders water micro-biologically safe. giving clear odorless and great tasting water 5.Removes visible dirt 2. odourless and goodtasting. Compact Carbon TrapTM . it doesn‘t need gas. namely. diarrhea. queries. A trained Pureit Water Expert will visit your home and give you a detailed demonstration of how Pureit works. The output water from Pureit meets stringent criteria for microbiologically safe drinking water. Protect your loved ones with a Pureit today! You can ask for a free home demonstration of Pureit.from all water-borne diseases like jaundice. Germkill ProcessorTM – uses 'programmed chlorine release chlorine technology' and its stored germ kill process targets and kills harmful virus and bacteria 4. EPA (Environmental Protection Agency). the indicator turns red. typhoid and cholera. but also makes the water clear.removes remaining dirt. What‘s more. the battery is not changed when it turns fully red. the advanced Auto-Switch off will automatically switch-off the flow of water. Pureit in-home purification system uses a 4 stage purification process to deliver ―as safe as boiled water‖ without the use of electricity and pressurized tap water. 1. PolisherTM – removes residual chlorine and all disinfectant by-products. harmful parasites & pesticide impurities 3. Micro-fiber MeshTM . in moderate humidity conditions Pureit-Blue Pureit-Maroon . Pureit purifies the input drinking water in four stages.

.To create the right marketing mix. it must look good and work well. The product range and how it is used is a function of the marketing mix.Promotion the 4ps of Marketing 1 )The right PRODUCT 2) Sold at the right PRICE 3) In the right PLACE 4) Using the most suitable PROMOTION that the goods arrive when and where they are wanted is an important operation . such as matching competition or catering for seasonal fluctuations. The goods must be in the right place at the right time.for example. getting the price right involves examining customer perceptions and rival products as well as costs of manufacture. However. and place involves using the best possible channels of distribution such as leading supermarket chains. Successful promotion helps a firm to spread costs over a larger output. Alternatively. Consumer will need to buy in large numbers to produce a healthy profit.g. Marketing therefore plays a key role in determining such aspects as:   The appearance of the product . businesses have to meet the following conditions: The Product: The product has to have the right features . a company like Kellogg's is constantly developing new breakfast cereals – the product element is the new product itself. competitions.products must address the needs of customers as identified through market research. product tasting etc. promotion involves engaging in a range of promotional activities e.. Making sureThe target group needs to be made aware of the existence and availability of the product through promotion. a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term line with the requirements of the market The function of the product . The price must be right. For example. The range may be broadened or a brand may be extended for tactical reasons. it is concerned with what the product means to the customer.

In theory. the value of water in the Lake District will be considerably different from the value of water in the desert. it enables an organization to develop and build up a succession of messages and can be extremely cost-effective. price is the one. 'Place' is concerned with various methods of transporting and storing goods. Crudely speaking.The price Of all the aspects of the marketing mix. and then making them available for the customer. It will provide information that will assist them in making a decision to purchase a product or service. Promotion is the business of business activities The promotion communicating with customers. Getting the right product to the right place at the right time involves the distribution system. The price of an item is clearly an important determinant of the value of sales made. which creates sales revenue . pace and creativity of some promotional activities are almost alien to normal The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. The place Although figures vary widely from product to product. roughly a fifth of the cost of a product goes on getting it to the customer. Though increased promotional activity is often a sign of a response to a problem such as competitive activity. However.all the others are costs. successful promotion increases sales so that advertising and other costs are spread over a larger output. An organisation's pricing policy will vary according to time and circumstances. The razzmatazz. The choice of distribution method will depend on a variety of circumstances. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. It will be more convenient for some manufacturer‘s to sell to wholesalers who then sell to retailers. . price is really determined by the discovery of what customers perceive is the value of the item on sale. while others will prefer to sell directly to retailers or customers.

Customers with similar needs and preferences are included in this segment. I.STP ANALYSIS OF THE COMPANY Segmentation Hindustan unilever limited has segmented its customer in the following ways: Understanding needs and preferences of consumers  Grouping customers based on their needs and preferences -.  Targeting the segment that the company can best meet the needs and preferences of . branding is important for a company.  Provide required product to meet targeted customers' needs and preferences -. Targeting  Its customer base represents the masses of India.Though being a commodity product.Delivering up to the expectations of the targeted segment.The Company targets the customers.  The company targets on the important sources like shops in the country  It targets the competitive companies like P&G.e.strength or low price.  Branding the commodity -. The result of the positioning is the successful creation of a customer focused value proposition. . of which it can meet the needs and preferences.  It Targets all Indian customers & communities.  It targets an individual (Retail Marketing) Positioning A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. a cogent reason why the target market should buy the product. customer needs higher.

giving stiff competition to the market leader Colgate. In the skin care market. has been unable to achieve a critical mass in India due to premium pricing strategy. Availability near the consumer through a wide distribution network is another crucial success factor. beverages. HUL has also been losing share to south based player Cavincare Ltd. 1. Hindustan Unilever Limited. In the foods business. color cosmetics. aggressive advertisement and marketing. HUL is strong on both these fronts with 110 brands and a 1mn strong direct retail reach.Brand Positioning of Different Soaps of Hindustan Unilever Limited Rs. and Godrej Pillsbury in staple food are the main competitors. It is also the leading player in food products such as branded packaged tea. as products are of small value. Nestle in coffee and culinary products. Nirma is a close competitor in detergents and has been slowly gaining ground in toilet soaps too. . Competitive Position: HUL is the market leader in the detergent and soap industry.00 The project will help in understanding the brand positioning of different soaps produced and marketed by Hindustan Unilever limited. skincare. ice cream and other culinary products. The company‘s business sprawls from personal and household care products to foods. with a turnover of Rs118bn. The company has a dominating market share in most categories that it operates in such as toilet soaps. Brand equities are built over a period of time by technological innovations. The other significant competitor in detergents is P&G. Despite being the global leader in this segment. detergents. GCMMF (Amul) in ice creams.6% subsidiary of Unilever Plc. Two pillars . specialty chemicals and animal feeds. is the largest FMCG Company in the country. In the hair care segment. besides competition from leading global players. characterize the fast moving consumer goods business. etc. hair care.strong brand equity and a wide distribution network. coffee. 51. HUL dominates the shampoo market and is the No 2 player in hair oils. frequently purchased daily use items. HUL has emerged as a strong No 2 player. Tata Tea in packet tea. In oral care segment.000. consistent high quality.

payment). FMCG major HUL caters to seven million distinct outlets across India and 59% of these stores are in rural India.Sales and distribution network of HUL A marketing channel performs the work of moving goods from producers to consumers. HUL directly services over 1 million stores and has a network of over 7000 stockists and distributors. It overcomes the time. Unilever Sales and Distribution in India Modern trade Organized retail Self-service stores General trade Wholesale Family grocer Marginal retail Rural trade Multi-purpose-retail . Members of the marketing channel perform a number of key functions like forward flow of activity from the company to the customers(goods) and backward flow from customers to company(order. place and possession gaps that separate goods and services from those who need or want them.

The goods move to the stockists go down by the company’s truck.creating new channels. the company maintains a stock of signed blank cheques of the stockist and these cheques are presented to the bank upon the receipt of order and generation of the bill. Evaluation and selection of channel members: The stockists are selected with a proper evaluation of the factors like the investment capacity.HUL’s approach to distribution: Direct-to-consumer distribution: Project “Sangam Direct”. appropriate sales force and infrastructure. . and a Territory Sales In-charge (TSI). with brand communication and brand experience. The center after procuring orders from customers passes them on for execution to a network of redistribution agents. Diagrammatic representation of the distribution channel Sales force behind the distribution channel: In case of HUL the sales are co-ordinate by Area Sales Manager (ASM). which does not call for owning a physical warehousing or selling facility. HUL’s policy is to work in advance payment mode. To ensure this. HUL. which once pioneered distribution in India. In the process it is converging product availability. is today reinventing distribution . The stockist then appoints a Re Stockist Salesman (RSSM) who is responsible for collecting the orders and payments from the retail outlets. wanted to take the idea across the country. Activation Manager (AM). and redefining the way current channels are serviced. number of retail stores covered. These people act as a link between the stockist and the company. In the end it could be said that HUL's SCM is one of the best in India and it is quite difficult for any company to challenge it. offers twin benefits of convenience and value to its customers. Conclusion: Hindustan Unilever. after understanding and analysing consumer response.a non-store home delivery retail business operates a dedicated call center with trained personnel in Mumbai. This model.

 Match the pairs. The first step was the usage of audio. this banners were embossed with the product photos.  Turn the wheel . The formal media used to communicate the product was T. The steps involved to promote the product in rural which contained games.Promotion strategy This strategy was used at village to village basis In the process of promoting “vim” in rural areas. which were composed with new lyrics. this lyrics gave the special features about the vim.V. The second step in the promotion strategy was to do Door-to-door marketing. The games used were  Spotting the right price. The Door-to-door marketing step was complementary to other step that involved the participation of the rural housewives. This step was used as an introduction of the product vim in rural markets.visual publicity vans. The audible material used were a tunes of current filmy songs. the base or tagline of the product and colorful picture that can attract the rural consumer. This games were strategically designed so as to position the product and the price of the product in the minds of consumer. To do Door. The informal promotion strategy was formulated.V. This step was very well designed. Keeping into mind The dynamics of rural consumer and distribution infrastructure.print proportionately depending upon their reach and their influence on rural masses. This youth carried along with them flip charts as a substitute medium to T.door marketing the marketer employed the young local youths who can communicate with rural people in the local language. the marketer had adopted a different promotion strategy to promote the vim in rural areas. radio cinema . This publicity vans were covered by beautiful banners.

The fourth step in promotion was Retail contact In this step the marketers gave scratch coupons to the consumers who came to purchased vim with incentive packages (i.e. packages one for two). The price given were on the. The prizes distributed to whom so ever won was 12months soaps. Prizes were distributed on the spot so to create better perception of the company and product in the mind of the consumer. The same was made applicable for the retailers on the bulk purchase. This retailers were also given special discount on their bulk purchase. The final step was that all the people were invited to the central location. This central location was usually a place were all the village people assembled so that becomes easy to communicate at large to the masses. The activity undertaken at the central location was cleaning up the sweet makers vessels, which was the toughest to do. It was communicated as “ Saf kare mitaheewale ki kadai”

The advantages of vim were that it relieved from the hardship of scrubbing the vessel, which was done with ease with the help of “vim”. The other advantage was that it would certainly save their lot of time, which can be utilized effectively for some other work. This created a clear perception about the product. The company even had to promoted the product in Haats & Melas of different villages. To promote the vim HLL planned to distribute gold as prize IN a bid to promote vim one of its leading dish wash soap, Vim Gold Bar, HLL had launched a below-theline advertisement.

Each scratch card carries an 8-digit number. Every Sunday, one such number will be announced on Sony Entertainment TV between 8-9 p.m. and this number will be valid for the entire period of the offer. Communication Vim Bar has always created an impact in the market with its path-breaking communication. The communication has been designed to powerfully communicate the tough stain removal properties of the Vim Bar. HLL created a new consumer lingo for the tough stain problem with the campaign baseline of Vim being the “Khar Khar ka moh tod jawab”. HLL had to completely change its communication when it entered into rural it had to completely changed its communication from the previous one that was that after cleaning the vessel with bar you can see your face(apka chehra Bhi dekha ga saf) to (khar khar ka moh tod jawab) just because the rural consumers used aluminum vessels to cook their food.

Chapter 4: Financial Analysis  Sources of Finance  Ratio Analysis –Any 5  Net Profit/ Balance sheet (from annual report) -Analyse


 Application Of Funds
Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets 3,759.62 1,590.46 2,169.16 299.08 1,260.68 2,811.26 943.20 281.91 4,036.37 3,581.96 1,419.85 2,162.11 273.96 1,264.08 2,179.93 678.44 231.37 3,089.74 2,881.73 1,274.95 1,606.78 472.07 332.62 2,528.86 536.89 190.59 3,256.34 2,669.08 1,146.57 1,522.51 185.64 1,440.81 1,953.60 443.37 200.11 2,597.08 2,462.69 1,061.94 1,400.75 110.26 2,522.22 1,547.71 440.37 170.80 2,158.88

Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets

1,099.72 1,358.10 6,494.19 0.00 6,264.21 1,324.98 7,589.19 1,095.00 0.00 2,633.92

1,068.31 1,660.84 5,818.89 0.00 5,493.97 1,441.55 6,935.52 -1,116.63

1,196.95 1,586.76 6,040.05 0.00 4,440.08 1,527.98 5,968.06 71.99

1,083.28 0.75 3,681.11 0.00 4,028.41 1,273.90 5,302.31 -1,621.20

1,150.06 246.15 3,555.09 0.00 3,362.52 1,429.71 4,792.23 -1,237.14

Miscellaneous Expenses Total Assets

0.00 2,583.52

0.00 2,483.46

0.00 1,527.76

0.00 2,796.09

Contingent Liabilities Book Value (Rs






Key Financial Ratios of Hindustan Unilever
Mar '11 Mar '10 Mar '09 Dec '07 Dec '06

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) 13.53 12.25 12.41 11.75 11.75 15.74 14.59 14.70 12.76 12.76 14.46 13.39 13.50 12.29 12.29 14.95 13.78 15.86 13.56 12.90 14.74 13.50 15.80 15.99 13.21 1.00 6.50 12.34 91.18 11.04 60.98 1.00 6.50 12.82 81.45 10.70 60.36 1.00 7.50 13.60 94.06 8.30 60.40 1.00 9.00 9.54 63.75 5.45 60.47 1.00 6.00 8.18 55.48 11.20 59.67

05 8.92 0.46 142.02 25.14 55.72 122.86 0.15 -20.28 7.84 106.26 14.49 6.37 53.99 5.43 --- 0.35 7.47 83.20 123.84 0.50 54.99 7.529.26 7.Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition 11.18 1.68 0.56 11.09 118.89 68.16 65.52 75.20 9.20 102.56 102.20 31.91 138.09 0.65 0.47 87.66 5.163.13 -421.81 171.67 5.88 12.45 67.63 -12.58 11.06 88.33 395.41 8.50 342.20 -- 0.24 8.64 84.84 11.54 35.22 7.67 55.03 183.43 24.19 12.05 -22.53 5.97 116.47 12.26 41.34 54.27 34.99 29.75 10.34 0.73 0.81 -42.84 116.81 9.91 24.51 0.78 12.61 147.02 8.74 185.45 9.63 61.25 0.95 27.31 5.08 32.61 6.62 0.85 9.58 7.59 121.83 9.29 106.20 29.03 -- 11.62 9.53 -36.27 9.45 24.40 11.34 113.61 .25 81.30 4.63 8.29 12.35 51.42 9.91 5.80 10.67 12.06 -- 0.46 --- 0.99 107.29 50.28 0.243.81 72.94 12.78 85.35 68.09 12.57 80.

25 27.12 7.68 16.364.17 0. Cr.25 18.65 277.00 217.417.13 -28.13 35.68 12.85 0.77 0.00 2.83 0.49 37.19 10.633.723.45 76.67 2.09 11.52 0.00 0.17 218.61 8.00 0.99 -- 75.92 0.24 25.51 144.01 88.00 0.00 0.30 0.14 0.35 7.00 2.00 0.00 218.17 131.30 421.65 15.75 0.04 Mar '11 Mar '10 Mar '09 Dec '07 Dec '06 Earnings Per Share Book Value 10.20 69.71 29.95 217.67 15.68 0.23 -39.34 Balance Sheet of Hindustan Unilever Mar '11 ------------------.98 22.220.47 9.75 11.99 217.68 0.67 2.842.52 63.93 18.05 81.95 215.99 0.98 9.47 16.12 6.00 1.00 1.35 7.40 21.67 2.00 2.89 15.00 0.45 8.68 220.67 1.59 -- 76.20 19.502.52 0.41 12.82 0.84 11.20 64.67 2.583.80 122.75 217.439.11 -0.00 0.56 10.72 71. ------------------Mar '10 Mar '09 Dec '07 Dec '06 12 mths 12 mths 15 mths 12 mths 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Rs.47 70.60 .95 0.47 72.Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 19.61 18.50 24.00 0.31 21.00 0.53 220.061.

483.583.Total Liabilities 2.46 Mar '09 1.77 Dec '07 2.92 Mar '11 2.527.633.52 Mar '10 2.796.09 Dec '06 12 mths 12 mths 15 mths 12 mths 12 mths .

set on Dec 26.67% 1 year change 0.05. 52-week range Today 265.70 / 3.05 Close in INR 12.90 May 05 2011 420. 2011.15% Today's change 4. 1.25.28m Shares traded 53.Chapter 5:      Key Learning’s from the Company and Recommendations Performance Analysis of the Company Reasons for the expansion/contraction/diversification of Company Comment on Organizational Leadership Market share/growth rate of Company SWOT Analysis of the Company Chapter-5  Performance Analysis of the Company Hindustan Unilever Ltd HINDUNILVR:NSI 416. Hindustan Unilever Ltd (HINDUNILVR:NSI)closed at 416.00% below its 52-week high of 420.2285 Beta Comparisons Summary On Tuesday.25 Dec 26 2011 .

35 Average volume 2.00 Previous close 403.86 Market cap 871.Open 404.03bn P/E (TTM) 53.70m Shares outstanding 2.74% Div ex-date Nov 04 2011 Div pay-date Nov 30 2011 Comparative analysis Past 90 days .80 Day High 417.00 Bid 416.00 INR Annual Dividend Yield 1.85bnINR EPS (TTM) 7.70 Day Low 403.05 Offer 0.49 INR Annual Dividend 7.16bn Free float 1.

72% +5.57% +34. That is a sign of pricing power – the company's ability to pass on raw material price increases to consumers. If raw material costs soften and the rupee begins to strengthen.49% +22.87% +53. AGGRESSIVE ADSPEND CUTS As a dominant player in soaps. suggests that consumers have taken these price increases in their stride.60% -0.45% INDIA INDEX SVC S&P CNX NIFTY INDEX -0.5 per cent this quarter. Materials consumed as a proportion of sales (included traded goods) has fallen to 52. just 9 per cent came from increase in underlying volumes.26% IN/CONSUMER STAPLES +2. beverages and foods all grew by 11-14 per cent) despite this. Reasons for expansion/contraction Values are based on Consolidated Data as on Mar 2011.20% +9. driven mainly by price increases on key brands. HUL's raw material costs already show a moderation relative to sales compared to three months ago. from 54. Of the 16.67% +107.Data delayed by at least 15 minutes. Most FMCG makers of soaps and detergents have also soft-pedaled on advertising spends in recent quarters.64% +6.36% +12. and its expanding margins for the latest December quarter are a demonstration of the clout that it wields in the FMCG market.5 per cent growth in sales.21% -- IN/HOUSEHOLD PRODUCTS +4.27% +37.79% -- As of Mar 27 2012 11:25 BST.4 per cent growth in Hindustan Unilever's (HUL) profits before exceptional items. Hindustan Lever recently hiked the prices of some of its detergents.72% +20.1 week 1 month 6 months 1 year 5 years Hindustan Unilever Ltd +5. HUL may manage to hold on to its price-line on key products. to keep its profits expanding strongly . PRICING POWER HUL's profits from its largest soaps and detergent segment more than doubled compared to a year ago. 2012: The 33.96% +8. detergents and personal products.4 per cent in the preceding September 2011 quarter. HUL has been able to dictate the trend in ad spends.47% -7.65% +18. The continued double-digit sales growth across segments (home. February 6. personal products.

Hindustan Unilever (HUL) appears the best bet within this space on many counts. possibly leading to share gains by larger brands. helping the segment deliver an 18 per cent sales growth with a 36 per cent higher profit in the first nine months. That drove consumer upgrades to better products and helped double digit growth in personal care. in soaps and detergents where raw material prices spiralled. HUL retains the 'Dream Employer' status for the 3rd year running and continues to be the top company considered for application by B-School students.Hindustan Unilever — Buy SHARE · PRINT · T+ With the Budget pegging up indirect taxes and inflation showing signs of returning. the stock is attractive. In addition. HUL sharply reduced adspend and raised selling prices.5 per cent in December). FMCG makers fit the bill. price increases balanced out lower volume growth. This is the 11th year of the Nielsen Campus Track B-school study. HUL's growth trajectory has been improving (16. With a vast product basket. from the top 35 Business Schools in India. HUL has navigated the inflation and cost pressures of the last two years exceptionally well. Hindustan Unilever Limited (HUL) has emerged as the No. 'Learning on the job' and 'Good growth prospects' are most critical factors claimed by the students that drive the choice of an employer. The Nielsen B-School Campus Track represents the views of 1100 students of the Class that will graduate in 2012. With smaller rivals following suit. investors may benefit by focussing on sectors and companies with undisputed pricing power. A high-cost scenario is usually negative for local and unorganised players in FMCGs. . 'Compensation'. HUL's presence across many FMCG categories has given it the flexibility to tweak prices and adspend to deliver a good overall result. 'Degree of independence at work and decision making'. the company kept up a hectic pace of new launches and adspends.1 Employer of Choice in India 17-01-2012 : As per the latest Nielsen Campus Track-B School Survey. it also reduced prices.  Comment on Organizational Leadership HUL is the No. In personal products. At a price-earnings multiple of 33 times its trailing 12-month earnings and 28 times next year's earnings. It trades at a discount to smaller peers such as Nestle India and Procter & Gamble Hygiene. For instance. 1 employer of choice for B-School students who will graduate in 2012. The high inflation scenario also seems to have aided market share gains for HUL across categories. While FMCG industry growth has been tapering down in the last two quarters (it was 10 per cent in the December quarter). strengths in both rural retail and modern trade and brands across price points.

60EPS ( ` ) : 8. The LDT position is communicated transparently with individual employees and career paths are shared with them.65 (0. The RBL Group and Fortune recently. There are several senior HUL managers working in leadership roles across markets and functions for Unilever globally. Over 200 managers of HUL currently serve Unilever globally.Leadership Development In the list of 'Top Companies for Leaders 2011 Study Results' announced by Aon Hewitt. One of the most important factors is the line ownership for the processes and management time & commitment to developing talent.00 . Driving Performance Culture HUL performance management and reward processes are geared to building a 'Performance and Execution' focused work culture.38. of shares) : 15.95 / 383. The approach of identifying and grooming top talent has established the company as a source of leadership talent. HUL was ranked sixth globally. which is about 13% of the HUL managerial strength. peer groups and subordinates to provide holistic and objective evaluation of the employees. HUL encourages reverse evaluation where management trainees assess their coaches and tutors for the quality of inputs they get during their training period. The good tutors and coaches get recognized while those who don't rate well are given feedback and held accountable for grooming talent. The company also encourages reverse mentoring.26 P/E (x) Div.25 / 218.15 : 420.10 388.( ` in Cr.00 5 Year High / Low ( ` ) : 420. Close ( ` ) : 389. The Global Top Companies for Leaders is the most comprehensive study of organizational leadership in the world.) BV ( ` ) : 85.33 : 1. Not only does HUL have formal processes for inculcating leadership. HUL is well-known for its talent pool and as a source of leadership talent. Yield (%) : 46.00 Volume (No.45 3 Year High / Low ( ` ) : 420. employees are plotted on the Leadership Differentiation Tool which not only evaluates the 'What' of their performance but also he 'How' of their performance. MARKET SHARE 16 Mar 2012 | 13:35 Open / Prev.25 / 169. but it also provides a culture of coaching and mentoring at every level in the organization.75 0.25 / 264.17%) High / Low ( ` ) 52 Wk High / Low ( ` ) : 391. Mechanisms like 360 degree feedback provide feedback from superiors.283 MCap. For example. both for Unilever globally and the industry in general.90 / 388. There are a number of tools and processes that drive transparency and rigour in assessing and developing people. HUL is the only Indian company that has been ranked in the 'global top 10' consistently since the 'Top Companies for Leaders' global survey was first launched in 2007. HUL has improved its ranking in the 2011 study to sixth position globally compared to 2009 when it was ranked 10th globally.937 : 12. Senior Management team members often have young managers mentoring them on a specific area such as digital media. The number of managers expatriated has been increasing steadily over the last few years.64 FV ( ` ) : 1.

8% compared to FY2009. Hindustan Unilever Limited .238 million ($3.SWOT Analysis company profile is the essential source for top level company data and information. a decrease of 13. a decrease of 3. The company recorded revenues of INR175. India and employs more than 15.Swot analysis.1 million ($499.3 million) during the financial year ended March 2010 (FY2010) .3 million ($464. Scope of the Report Provides all the crucial information on Hindustan Unilever Limited required for business and competitor intelligence needs . and provides summary analysis of its key revenue lines and strategy.8 million) in FY2010. The operating profit of the company was INR23. SWOT COMPANY PROFILE: Hindustan Unilever Limited Key Facts: Hindustan Unilever Limited Company Overview: Hindustan Unilever Limited Business Description: Hindustan Unilever Limited Company History: Hindustan Unilever Limited Key Employees: Hindustan Unilever Limited Key Employee Biographies: Hindustan Unilever Limited Products & Services Listing: Hindustan Unilever Limited Products & Services Analysis: Hindustan Unilever Limited SWOT analysis: Hindustan Unilever Limited Strengths: Hindustan Unilever Limited Weaknesses: Hindustan Unilever Limited-Opportunities: Hindustan Unilever Limited-Threats: Hindustan Unilever Limited Company View: Hindustan Unilever Limited Top Competitors: Hindustan Unilever Limite Location and Subsidiary: Hindustan Unilever Limited-Head Office: Hindustan Unilever Limited Other Locations and Subsidiaries: Hindustan Unilever Limited .4% compared to FY2009.SWOT Analysis examines the company‘s key business structure and operations.000 people.SWOT Analysis Description: The Hindustan Unilever Limited . It is headquartered in Mumbai.699. history and products.644. The net profit was INR22.9% compared to FY2009.020. a decrease of 11.Contains a study of the major internal and external factors affecting Hindustan Unilever Limited in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams of Hindustan Unilever Limited. Hindustan Unilever Limited .1 million) in FY2010.


EXPANSION OF HORIZON OUTSIDE ASIA. 4. Ltd. 3.  H. New Dehli.trai.LOOSING MARKET SHARE DUE TO NEW ENTRANTS. V.MIMIC OF RURAL MARKET. Ltd. Kothari ‗Research methodology‘.in . 3.EXPORT IS LESS COMPARED TO PRODUCTION. R.  C.1. New Delhi.  Saxena Rajan ‗marketing management‘ Idea McGraw-hill publication Co. BIBLIOGRAPHY Books:  Philip Kotler.  Business today magazine of February issue. New Delhi.3DIVERSIFY ITS BRAND IN FOOD PRODUCTS. 5. ‗marketing management‘ prentice Hall of India Pvt. www. 2. 2.ITC LTD.LARGE DOMESTIC MARKET OVER A BILLION POPULATION. 2008. 4. Verma ‗marketing of services‘ Global business press.-ONE OF THE BIGGEST THREATS. vishwa publication. New Delhi. THREATS 1.REMOVAL OF IMPORT RESTRICTION RESULTING IN REPLACING OF DOMESTIC BRANDS.

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