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Executive Summary Introduction Company Profile Current Market Context Exports Portfolios Corporate Management Research & Innovation Centre Safety & Health Policy Market Strategies HLL Distribution Network Pioneering Channels Hindustan Unilever Ltd. Competitors Research Methodology Future Scope Findings, Data Analysis & Conclusion Recommendations Suggestions Limitations Bibliography (Annexure) Questionnaire


Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million units and sales of Rs.10, 000 crores. HUL is also one of the countrys largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. Hence, research aims is that to study the existing marketing practices, emerging marketing plans and understanding companies business strategy with its profile. The main recommendations have been made on the addressing of the advertising message to the customers. An attempt has been made to formulate the communication in a way to build it on a platform of the basic need for buying HUL products. In another recommendation the suggestions towards better dealer interest in HUL products has been given a chance.

The research is based primarily on primary data; however few references to industry figures from secondary data have been made. Data has been collected through in depth interviews and administered questionnaires.

The study has given the researchers an inside of the Consumer durable Industry and an opportunity to use the theoretical knowledge in live project.

Over 100 years' link with India. In the summer of 1888, visitors to the Kolkata harbor & noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded. Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond

joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been

accompanied by judicious diversification, always in line with Indian opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's

corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994

witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, 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.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award

74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in close to 80 factories. The operations involve over 2,000 suppliers and associates. HUL's

distribution network, comprising about 7,000 redistribution stockists, directly covers the entire urban population, and about 250 million rural consumers.

HUL has traditionally been a company, which incorporates latest


technology in all its operations. The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with postdoctoral experience acquired in the US and Europe.

HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural

development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India.

Over the last three years the company has embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and


creating access to relevant information through the iShakti community portal. The programme now covers about 50,000 villages in 12 states. HUL's vision is to take this programme to 100,000 villages impacting the lives of over a 100 million rural Indians.

HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme endeavtheirs to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 70 million people in approximately 15000 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If Hindustan Lever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.






Hindustan Lever Limited Shareholding Pattern Flls 13.7 Domestic Fls 14.8

Unilever 51.6

Individual 19.9
HUL Equity Capital - 50 Mn $ Market Capitalisation - 7,300 Mn $



Mission: Hindustan Unilever Limited mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Policy: HUL has earned a reputation for conducting its business with integrity and with respect for the interests of those their activities can affect. This reputation is an asset, just as real as their people and brands. Their first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. It also means caring about their consumers, employees and shareholders, their business partners and the world in which we live. From HUL Spokesperson To succeed requires the highest standards of behavior from all of us. The general principles contained in this Code set out those standards. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate, but will not include any standards less rigorous than those contained in this Code.


We want this Code to be more than a collection of high-sounding statements. It must have practical value in their day-to-day business and each one of us must follow these principles in the spirit as well as the letter. ref: business world magazine. Obeying the Law HUL companies and employees are required to comply with the laws and regulations of the countries in which they operate. Employees

HUL is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. HUL will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed.

HUL are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour.

HUL are committed to working with employees to develop and enhance each individual's skills and capabilities.

HUL respect the dignity of the individual and the right of employees to freedom of association.


HUL will maintain good communications with employees through company based information and consultation procedures.

Consumers HUL is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labelled, advertised and communicated. Shareholders HUL will conduct its operations in accordance with internationally accepted principles of good corporate governance. They will provide timely, regular and reliable information on their activities, structure, financial situation and performance to all shareholders. Business Partners HUL is committed to establishing mutually beneficial relations with their suppliers, customers and business partners. In their business dealings they expect their partners to adhere to business principles consistent with their own. Community Involvement HUL strives to be a trusted corporate citizen and, as an integral part of society, to fulfill their responsibilities to the societies and communities in which they operate.


Public Activities HUL companies are encouraged to promote and defend their legitimate business interests. HUL will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. HUL neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. The Environment HUL is committed to making continuous improvements in the management of their environmental impact and to the longer-term goal of developing a sustainable business. HUL will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation In their scientific innovation to meet consumer needs they will respect the concerns of their consumers and of society. They will work on the basis of sound science, applying rigorous standards of product safety. Competition HUL believes in vigorous yet fair competition and supports the development of


appropriate competition laws. Their companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business Integrity HUL does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. HUL accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. Conflicts of Interests All HUL employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. HUL employees must not seek gain for themselves or others through misuse of their positions.


Compliance Monitoring Reporting Compliance with these principles is an essential element in their business success. The Unilever Board is responsible for ensuring these principles are communicated to, and understood and observed by, all employees. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee. Any breaches of the Code must be reported in accordance with the procedures specified by the Joint Secretaries. The Board of Unilever will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so. In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience and mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and their respective subsidiary companies. The Board of Unilever means the Directors of Unilever N.V. and Unilever PLC.ref:THE NEWS


Envoirment policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and industry. In doing so, the Company is committed to exhibit the highest standards of corporate behaviour towards its consumers, employees, the societies and the world in which we live. 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. The company is committed to making its products environmentally acceptable, on a scientifically established basis, while fulfilling consumers' requirements for excellent quality, performance and safety. The aim of the Policy is to do all that is reasonably practicable to prevent or minimise, encompassing all available knowledge and information, the risk of an adverse environmental impact arising from processing of the product, its use or foreseeable misuse. This Policy document reflects the continuing commitment of the Board for sound Environment Management of its operations. The Policy applies to development of a process, product and services, from research to full-scale operation. It is applicable to all company operations covering its plantations, manufacturing, sales and distribution, research & innovation centres and offices. This document defines the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid down.


The Vision Their vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of their operations. HUL will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities, supported by Management Commitment as the prime driver.

FMCG Markets

Slowdown in growth & then 2 years of decline

FMCG Market (HLL Categories) Growth%

00 8 6 4 2 0 -2 -4 6.7 3.4 -1.1 -2.5 01 02 03


FMCG Markets

2009 - Revival after 2 years of decline

FMCG Market (HLL Categories) Growth%

02 8 6 4 2 0 -2 -4 -1.1 0.8 -2.5 -2.8 2.0 6.1 03 Q1 '04 Q2 '04 Q3 '04 Q4 '04


Pricing action in 2009:

Price reduction

Price reduction (Bottles) & Value improvement (Sachets)


Investment Behind Brands

Innovation & Superior Quality

Family safe Advance from germs


Water & effort saving

Quick wash - 50%

No mud Rin

Perfect Radiance 5 in 1 hair health benefits

Total Care

Whiter teeth

Fresher breath


Current Market Context

Actions Pricing Laundry : Price Reduction Shampoos: Value Improvement & Lower Price Points Toothpaste: Value Corrections & SKU rationalization Investments behind brands Innovations Quality Higher A&P Corrective actions in processed Processed Foods Corrective actions Phased stock reduction Withdrawl of 03 innovation Defocus of Atta in unviable geographies Sales decline of 26% arising from above actions Market shares held / improved




Lux Lifebuoy Liril Hamam Breeze Dove Pears Rexona

Surf Excel Rin Wheel

Fair & Lovely Pond's

Sunsilk Naturals Clinic

Pepsodent Close-up

Axe Rexona



Brooke Bond Lipton



Kwality Wall's


India's Largest Branded FMCG Exporter

It was 1962. The reality of India then was very different from what it is today. India's economy then suffered from foreign exchange shortage. Hindustan Lever voluntarily decided to take up Exports to support the country's economy.

Today, HUL is India's largest exporter of branded Fast Moving Consumer Goods. It has been recognized by the Government of India as a Golden Super Star Trading House. Over time, HUL has developed appropriate capabilities to be globally competitive Focus Areas HUL's Exports focuses on two broad areas. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Tea for supplies to other Unilever companies. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories in which India, as a country, has competitive advantage - Marine Products, Castor and its Derivatives and Rice. HUL enjoys international recognition within Unilever and outside for its quality, reliability and speed of customer service. HUL's Exports geography comprises, at present, countries in Asia, Australia, Africa, North America and Europe. in cost and quality for a viable Exports business.


HUL's Exports portfolio HPC: The categories are soaps, skin care products and oral care products. The brands are Lux, Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up, Pepsodent, Signal. HUL is the only source of Pears soap across the world. Tea: The categories are branded packet tea, and instant tea for Unilever's ready-to-drink tea business. The branded teas are Brooke Bond, Brooke Bond Red label, Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, Lipton Brisk, Lipton 3-in-1 premix, Chinese Rickshaw. Marine Products: HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to Shrimps and several value-added products. Among its customers is Icelandic, the world's third largest seafood company. In addition, HUL has also become a part of Unilever's supply chain in seafoods for Europe too. HUL's Marine Products brands are Ocean Diamond, Ocean Excellence, Shogun, Hima, Gold Seal, Tara and Prima. Rice: The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna. Castor: The categories are Castor Oil, Castor-oil based products, like


hydrogenated castor oil, 12 - Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and lubricant industry, paints and surface coatings, cosmetics, emulsifiers), and Speciality Castor Oils (USP grade, BP grade, DAB 10) etc used in pharmaceutical preparations. HUL's Castor brand is Topsol. Today, Exports is a substantial business in HUL, accounting for about 12% of the company's turnover. HUL believes that its competitive advantages of cost competitiveness, process competitiveness and economies of scale both at the company and country level, hold it in good stead. They position the company to become one of the hubs for sourcing by Unilever companies in HPC and Tea, and also simultaneously become a preferred partner to global customers in Marine Products, Castor and Rice. Direct Selling: Product Range Lever home range Male grooming Oral Care Ayurveda Personal Wash Foods Reach - 1400 towns (Largest in India) Consultant base - 330,000



Accordingly, HUL's aims are to: Ensure safety of its products and operations for the environment by using standards of environmental safety, which are scientifically sustainable and commonly acceptable. Develop, introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. Verify compliance with these standards through regular auditing. Assess environmental impact of all its activities and set annual improvement objectives and targets and review these to ensure that these are being met at the individual unit and corporate levels. Reduce Waste, conserve Energy and explore opportunities for reuse and recycle. Involve all employees in the implementation of this Policy and provide appropriate training. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks. Enctheirage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and cooperate with other members of the supply chain to improve overall environmental performance. Work in partnership with external bodies and Government agencies to promote environmental care, increase understanding of environmental issues and disseminate good practice.


Responsibilities Corporate The Board and the Management Committee of HUL is committed to conduct the company operations in an environmentally sound manner. 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. Formally review environment performance of the company once every quarter. Review environment performance when visiting units and

recognise exemplary performance. Nominate: - A senior line manager responsible for environmental performance at the individual HUL site. - HUL environmental coordinator. The Management Committee, 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. When believed to be appropriate, apply more stringent criteria than those required by law.

Assess environmental impact of HUL operations and establish strategies for sound environment management and key implementation steps. Enctheirage development of inherently safer and cleaner

manufacturing processes to further raise the standards of environment performance. Establish appropriate management systems for environment management and ensure regular auditing to verify compliance. Establish systems for appropriate training in implementation of Environment Management Systems at work. Ensure that all employees are made aware of individual and collective responsibilities towards environment. Arrange for expert advice on all aspects of environment management. Participate, wherever possible, with appropriate industry and Government bodies advising on environmental legislation and interact with national and local authorities concerned with protection of environment. Individual Units The overall responsibility for environment management at each unit will rest with the Unit Head, who will ensure implementation of HUL Policy on environment at unit level. Concerned line managers / heads of departments are responsible for environmental performance at department levels.


In order to fulfill the requirements of the Environment Policy at each site, the Unit Head will: Designate a unit environment coordinator who will be

responsible for co-ordinating environmental activities at unit, collating environmental statistics and providing / arranging for expert advice. Agree with the Management Committee Member responsible for the unit, 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. Ensure that the unit complies with Unilever and HUL mandatory standards and the relevant national and state regulations with respect to environment. Ensure formal environmental risk assessment to identify

associated environmental aspects and take appropriate steps to control risks at acceptable levels. Ensure that all new operations are subjected to a systematic and formal analysis to assess environmental impact. Findings of such exercises should be implemented prior to commencement of the activity. Manage change in People, Technology and Facilities through a planned approach based on training, risk assessment, precommissioning audits and adherence to design codes. Regularly review environment performance of the unit against set objectives and targets and strive for continual improvement.


Sustain a high degree of environmental awareness through regular promotional campaigns and employee participation through training, safety committees, emergency drills etc. Ensure dissemination of relevant information on environment within the unit and to outside bodies, and regularly interact with Government authorities concerned for protection of environment. Maintain appropriate emergency procedures consistent with available incidents. Provide appropriate training to all employees. Ensure periodic audits to verify compliance with environment management systems and personally carry out sample environment audits to check efficacy of the systems. Report environmental statistics to HUL Corporate Safety & Environment Group on a monthly basis. technologies to prevent / control environmental

Research and Innovation Centres

Since most new products and processes are developed in these Units, certain additional responsibilities devolve on them to ensure implementation of the Environment Policy of the company. In addition to the Unit Head's responsibilities outlined above, 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.


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, products, raw material and finished product handling, transport and storage. 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. QUALITY POLICY: Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates. The company is committed to respond creatively and competitively to the changing needs and aspirations of their consumers through relentless pursuit of technological excellence, innovation and quality management across their businesses, and offer superior quality products and services that are appropriate to the various price points in the market as well as to their commitment to building shareholder value. The company recognises that its employees are the primary stheirce of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organisation at all levels.


The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings. It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers. The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them. The company is committed to extend its quality standards to its contract manufacturers, key suppliers and service providers and by entering into alliances with them, to jointly improve the quality of its products and services. This policy is applicable to production from its own facilities as well as to production that is outsourced. The company will periodically review this quality policy for its effectiveness and consistency with business objectives. The company delegates authority and responsibility for dissemination and implementation of this policy to each Business and Unit Head.


SAFETY AND HEALTH POLICY Introduction Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and customers. In doing so, the Company is committed to exhibit the highest standards of corporate behavior towards its consumers, employees, the societies and the environment in which we operate. Towards this, the Company recognizes its responsibility to ensure safety and protection of health of its employees, contractors and visitors in all its operating sites, which include manufacturing, sales and distribution, research laboratories and offices during work and work related travel. This Policy document defines the vision, principles, aim, required actions and scope of the policy application as well as the responsibility for execution. Their Vision Their vision is to be an injury free organization. HUL NEWS:We will bring safety on top of mind for all employees and will integrate it with all business processes. We will realize their Vision through an Integrated Safety Management approach, which focuses on People, Processes, Systems, Technology and Facilities, supported by demonstrated leadership and employee commitment at all levels as the prime drivers for ensuring a safe and healthy work environment.


Safety Principles:
HUL's Occupational Safety and Health Policy is based on and supported by the following eight Principles. These Principles have the same status as the Company's Code of Business Principles: All injuries and occupational illnesses are preventable All operational exposures can be safeguarded Safety evaluation of all business processes is vital Working safely is a condition of employment Training all employees to work safely is essential Management audits are a must Employee involvement is essential

All deficiencies must be reported and corrected promptly

In order to facilitate operationalisation of the Safety Principles, a separate document has been prepared, which covers: a) Safety Principles b) Success Criteria c) Illustrative KPI


Consumer satisfaction

Indira is 20 years old, a tribal woman at Kondegaon village in Bastar district. She is just back from the nearby jungles, collecting firewood. After attending to her baby son, she will go to the village well to take a quick wash. Yesterday her husband brought her a white soap, with pink petals in it. Indira had requested him to buy one, for the festival later this evening. Indira is among millions of consumers in rural India who use Hindustan Lever's products. She came to know about Lux through the TV set at the community centre. It is not very costly, and also available nearby. Home to over 700 million people, rural India comprises not only over 70% of India's billion-strong population, but also over 12% of the world's population. The rural population already accounts for substantial consumption of Fast Moving Consumer Goods and also consumer durables. About 50% of the sales of soaps & detergents are generated in rural India. Similarly, almost half the demand for black & white television sets, pressure cookers, table fans, sewing machines also comes from there.


Cost management:
But the potential is even larger, both in terms of consumption and penetration. The fact that 70% of the population accounts for only 50% of even relatively well-penetrated categories, like soaps & detergents, indicates the enormous scope of consumption-led growth in these categories. Therefore such categories will derive growth out of increased usage. In categories, which are relatively less penetrated, like personal products, rural India offers an even bigger growth opportunity through greater penetration and then consumption. For example only three out of 10 consumers in rural markets use shampoo or skin care products. Therefore growth in such categories will emerge, as more consumers purchase these products, and then continue to use them regularly. Hindustan Lever has taken many initiatives over the decades to create markets in the rural hinterlands. By marketing relevant products, at affordable prices. A unique example is Hindustan Lever's Lifebuoy soap. In rural India, health is of paramount importance, because indisposition is very directly related to loss of income. Lifebuoy, whose core equity is health and hygiene , has for decades now been synonymous with soap in rural India. At the same time, if products have to come up the order in the rural purchase hierarchy, they have to be affordable. If rural India today accounts for about half of detergents sales, it is because HUL has developed low-cost value-for-money branded products, like Wheel. The company has also taken initiatives to create markets even for apparently premium products, by offering them in pack sizes, like sachets, whose unit prices are within the reach of rural consumers. For example, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise) today


constitute about 55% of Hindustan Lever's shampoo sales. With media reach gradually increasing, rural consumers today, where the media has its footprints, share the same aspirations with their urban counterparts. HUL has responded to the trend with low unit price packs of even other products - Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at Rs.5.

Other marketing strategies:

For decades now, Hindustan Lever has also taken initiatives to circumvent the limitation in communication channels, by innovatively leveraging non-conventional media. Among them are wall paintings, cinema vans, weekly markets (haat), fairs and festivals. Given the rural consumer's fascination for cinema, the cinema vans show popular movies, interspersed with products advertisements. Weekly markets, fairs and festivals are parts and parcel of rural life. They give an opportunity to address consumers, spread over many tiny hamlets, at one location. The occasions are used to demonstrate product benefits and also sell such products. Such demonstrations have played a significant role in creating, for example, the detergents market in rural India. In recent times, such demonstrations are being deployed to illustrate how visible clean is not hygienic clean, and how using soap is essential to prevent easily avoidable infections. Communication through fairs and festivals are backed by direct consumer contact. For example, in 1998-99, Hindustan Lever implemented a major direct consumer contact, called Project Bharat, which covered 2.2 crore homes. Each home was given a box, at a special price of Rs.15, comprising a low unit price pack of shampoo, talcum powder, toothpaste and skin cream, along with educational


leaflets and audio-visual demonstrations. The project has helped eliminate barriers to trial, and has strengthened salience of both particular categories and brands. Similarly in 2002, Hindustan Lever has launched a similar large-scale direct contact, called Lifebuoy Swasthya Chetana, which already covers 70 million people in 18,000 villages of 8 states. The project is intended at generating awareness about good health and hygiene practices, and specifically how a simple habit of washing hands is essential to maintaining good health. The initiative will involve interaction with students and senior citizens, who act as change agents.

Availability of HULs Product:

Generating awareness pays dividends only when steps are taken to ensure constant availability of products. In rural India particularly, availability determines volumes and market share, because the consumer usually purchases what is available at the outlet, influenced very largely by the retailer. Therefore, over the decades, Hindustan Lever has progressively

strengthened its distribution reach in rural India, which today has about 33 lakh outlets. Direct rural distribution in Hindustan Lever began with the coverage of villages adjacent to small towns. The company's stockists in these towns were made to use their infrastructure to distribute products to outlets in these villages. But this distribution mode could only be extended to villages connected with motorable roads, and it could cover about 25% of the rural population by 1995. Therefore in 1998, Hindustan Lever launched Project Streamline to further extend its distribution reach. Under this initiative, the company identifies sub-stockists in a large village, connected by motorable road to a small town. This sub-stockist in turn distributes the company's


products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the age-old bullock cart. Hindustan Lever is thus trying to circumvent the barrier of motorable roads. As a result, the distribution network, as of now, directly covers about 50,000 villages, reaching about 250 million consumers. The company simultaneously uses the wholesale channel, suitably incentivising them to distribute company products. HUL has in the recent past established a common distribution system in rural areas for all its products. Given the number of brands and their packs the rural retailer usually requires, one HUL representative can take all the products from the company portfolio that he needs. This common distribution system is now fully operational, under one Regional Sales Manager exclusively dedicated to rural markets of each region of the country. Over time, Hindustan Lever will further strengthen its rural distribution through mutually beneficial alliances with rural Self Help Groups (SHGs). Over the last five years, financial institutions, NGOs and government organisations are working closely to establish SHGs, whose objective is to alleviate poverty through sustainable income-generating activities. Since 2001, Hindustan Lever is implementing Project Shakti, whereby SHGs are being offered the option of distributing relevant products of the company as a sustainable income-generating activity. The model hinges on a powerful win-win relationship; the SHG engages in an activity which brings sustainable income, while Hindustan Lever gets an interface to interact and transact with the rural consumer. HUL's vision for Project Shakti is to scale it up across the country by 2005, creating about 25000 Shakti entrepreneurs, covering 100,000 villages, and touching the lives of 100 million rural consumers. Begun with 50 groups in Nalgonda district of Andhra Pradesh, with the support of local


authorities, the project has been extended, as of now, to about 50,000 villages in 12 states. A typical Shakti entrepreneur conducts business of around Rs.10,000 - Rs 15,000 per month, which gives her an income of about Rs 700 - Rs.1000 per month on a sustainable basis. As most of these women are from below the poverty line, and live in extremely small villages (less than 2000 population), this earning is very significant, and is almost double of their past household income. The full benefit of Project Shakti will be realised after some years.




C&F 1

C&F 2

C&F 3

C&F 4

C&F 5

C&F 6

C&F 7











This is the whole Distribution Chain of HUL to cover the Rural market. The company has remarkably worked upon to make the supply chain from manufacturers to retailers simple with very few numbers of mediators and jobbers. It has helped them to maintain the transparency in the cycle and also have let them established a prompt delivery process. The products are manufactured in the factories all across India and then is supplied from there to the various Carriage and Forwarding (C&F) units which are 5-10 per state depending on the area they have to cover and are established by the company. These C&F units then supply the products to the various Wholesalers confined to their area only and according to the wholesalers demand. The wholesalers then supply the products to the semi-wholesalers and the retailers as per the volume of their order. Then the semi-wholesalers deliver the products to the retailers and customers.




In this stage the products reach to the Carriage and Forwarding unit from various manufacturing units established all across India. The volume of the delivery depends upon the quantity required/ordered by the C&F unit. The depot sends the request of the volume of the products to the Head Office, which then order the various factories to supply the products to the mentioned depot. The supply is met within a week. HUL has 45 C&Fs with 7000 stockists and 2000+ suppliers and associates to target the market.



The C&F then supplies the products according to the demand of various wholesalers. Each of the depot cover a region assigned to them. Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply products everyday. They work on the concept of advance payment by DD by the wholesalers and deposit them in the bank which is transferred to the head office.



80 factories, across India

The year was 1923. Lord Leverhulme, the legendary founder of Lever Brothers, was visiting India. The nationalist sentiment in India was for locally manufactured products. Lord Leverhulme, who believed that what is good for a country is equally good for the company, responded to that aspiration because he too shared that dream.

His dream ultimately was realised in 1934. In September 1934, after more than a decade of discussions in London and in India, a Lever factory was allowed to sprout on the land that had been reclaimed by the Bombay Port Trust at Sewri. From here, a month later rolled out the first cake of Sunlight soap to be manufactured in India. The same year, Lever Brothers took over the Garden Reach Factory in Kolkata.

These two factories were the first in a manufacturing base, which today literally dots the length and breadth of India. From Assam to Gujarat, from Uttaranchal to Kerala.

Hindustan Lever's diverse product range is today manufactured in about 80 factories. In addition, the company outsources from 150 other units. The operations involve 2,000 suppliers and associates.



Several HUL factories are situated in backward areas. The company has consciously responded to the national policy of development of backward areas by setting up manufacturing units in these places, which provide several direct and indirect employment opportunities for these areas, and leads to general economic development of these regions through industrialisation. In fact, all major investments of HUL, in recent years, have been either in A-Category backward areas or No-Industry Districts. These include factories in Khamgaon and Yavatmal (Maharashtra), Chhindwara (Madhya Pradesh), Orai, Sumerpur and Khalilabad (Uttar Pradesh), Haldia (West Bengal), Silvassa (Dadra & Nagar Haveli), Pondicherry, Goa, Doom Dooma (Assam), Haridwar (Uttaranchal) and Barotiwala (Himachal Pradesh). Since 2001 itself, HUL has set up nine new factories in backward areas. Equally, HUL has an enviable track record in taking over sick enterprises, in response to requests from Government, and converting them into viable operations. The company's units at Mangalore and Rajpura all bear testimony to this achievement. In the process, HUL has saved precious jobs and developed local economies. HUL's manufacturing facilities, like the Khamgaon soap plant and the Sumerpur detergent bar unit, are recognised as among the best in the Unilever world. HUL has adopted Total Productive Maintenance (TPM) for achieving manufacturing excellence since 1994. As on date, TPM is in different stages of implementation in 28 factories. Four HUL factories have already received the TPM Consistency Award, and 14 factories have been awarded with the TPM Excellence Award.


Marketing needs every where

How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy soap and Mrs. Kulkarni in Jammu gets to know how Bru coffee tastes even before she has bought it? Well, you need to have a cutting edge distribution network in place. Hindustan Lever's distribution network is recognised as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience. HUL's products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Lever services each with a tailormade mix of services. The emphasis is equally on using stores for direct contact with consumers, as much as is possible through in-store facilitators.


Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this channel. The business system delivers excellent customer service, while driving growth for the company and the store. At the same time, innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself, through product tests and in-store sampling.

In the villages
HUL has also revamped its sales organisation in the rural markets to fully meet the emerging needs and increased purchasing power of the rural population. The company has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists, under the charge of dedicated managers. The team focuses on building superior availability, while enabling brand building in the deepest interiors. HUL's distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers, through about 6000 sub-stockists. Harnessing Information Technology An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. The objective is to catalyse HUL's growth by ensuring that the right product is available at the right place in right quantities, in the most


cost-effective manner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction on orders, despatches, information sharing and monitoring. RS Net covers about 80% of the company's turnover. Today, the sales system gets to know every day what HUL stockists have sold to almost a million outlets across the country. RS Net is part of Project Leap, HUL's end-to-end supply chain, which also includes a back-end stretching system connecting right suppliers, all upto company sites and stockists.

SHAKTI - Changing Lives in Rural India Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the iShakti community portal. In general, rural women in India are underprivileged and need a sustainable source of income. NGOs, governmental bodies and other institutions have been working to improve the status of rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation. Started in 2001, Shakti has already been extended to about 80,000 villages in 15 states - Andhra Pradesh, Karnataka, Tamilnadu, Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar Pradesh, Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand.

The respective state governments and several NGOs are actively involved in the initiative. Shakti already has about 25,000 women entrepreneurs in its fold. A typical Shakti entrepreneur earns a sustainable income of about Rs.700 -Rs.1,000 per month, which is double their average household income. Shakti is thus creating opportunities for rural women to live in improved conditions and with dignity, while improving the overall standard of living in their families. In addition, it involves health and hygiene programmes, which help to improve the standard of living of the rural community. Shakti's ambit already covers about 15 million rural population. Plans are also being drawn up to bring in partners involved in agriculture, health, insurance and education to catalyze overall rural development. HUL's vision for Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2005. Shakti Vani is a social communication programme. Women, trained in health and hygiene issues, address village communities through meetings at schools, village baithaks, SHG meetings and other social fora. In 204, Shakti Vani has covered 10,000 villages in Madhya Pradesh, Chattisgarh and Karnataka. The vision is to cover 80,000 villages in 2005. iShakti, the Internet-based rural information service, has been launched in Andhra Pradesh, in association with the Andhra Pradesh Government's Rajiv Internet Village Programme. The service is now available in Nalgonda, Vishakapatnam, West Godavari and East Godavari districts. iShakti has been developed to provide information


and services to meet rural needs in medical health and hygiene, agriculture, animal husbandry, education, vocational training and employment and women's empowerment. The vision is to have 3,500 kiosks across the state by 2005.

Pioneering New Channels

Hindustan Lever is simultaneously creating new channels, designed on the same principle of holistic contact with consumers. Project Shakti, HUL's partnership with Self Help Groups of rural women, is becoming an extended arm of the company's operation in rural hinterlands. Started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The respective state governments and several NGOs are actively involved in the initiative. The SHGs have chosen to partner with HUL as a business venture, armed with training from HUL and support from government agencies concerned and NGOs. Hindustan Lever Network (HLN) is the company's arm in the Direct Selling channel, one of the fastest growing in India today. It already has about 3.5 lakh consultants - all independent entrepreneurs, trained and guided by HLN's expert managers. HLN has already spread to over 1500 towns and cities, covering 80% of the urban population, backed by 42 offices and 240 service centres across the country. It presents a range of customised offerings in Home & Personal Care and Foods.


Out-of-Home consumption of products and services is a growing opportunity in India, as elsewhere in the world. Hindustan Lever is already the largest player in the hot beverages out-of-home segment, with over 15000 tea and coffee vending points. The company is expanding the network aggressively, in the education, entertainment, leisure and travel segments. HUL's allaince with Pepsi will significantly strengthen this channel.

Health & Beauty Services are Hindustan Lever's simultaneous foray to meet the increasing consumer need for such products and services. Lakme Salons provide specialised beauty services and solutions, under the recognised authority of the Lakme brand. The Ayush Therapy Centres provide easy access to authentic Ayurvedic treatments and products. Hindustan Lever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience.



Hindustan Lever's mission is to meet everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. HUL's research & development base, one of the largest in Indian industry, helps achieve this mission, with novel products and new processes. The company has over 380 patents, demonstrating its leading edge in consumer-relevant R&D. The Hindustan Lever Research Centre (HLRC), with facilities in Mumbai and Bangalore, and global technology centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. Set up in 1958, HLRC's aim is to develop new products and processes, improving benefits and quality of existing products, and optimal use of resources. Major innovations have taken place, down the decades, in every category in which HUL is present. From Home Care to Personal care, Beverages to Foods. Better cleaning, lesser water consumption Consider for example, HUL's development of a water-saving technology for its detergents. One of the most severe problems that India faces today is shortage of water. Water scarcity affects one in every three Indians. In a typical Indian home, at least 20% of the water consumed goes behind washing of clothes. HUL decided that it would be of immense benefit to an Indian household, if a technology could be developed, which would help reduce water consumed in washing of clothes. HUL's scientists have innovated a path-breaking technology - it reduces water consumption and time taken for rinsing by 50%. The technology has already been introduced.


World's most advanced water purifier: People in cities and towns spend enormous amounts, either in fuel or devices, to ensure safe drinking water. HUL's scientists have developed a breakthrough device, called "Pureit", which purifies water as safe as boiled water, providing 100% protection from all waterborne diseases; it also removes pesticides that may be present in drinking water. Its operation does not require electricity, running tap water and plumbing or expensive maintenance. It thus provides water at a cost of just Re.1 for every six litres - or less than 20 paise a litre. Iodine In Salt - the vital ingredient Iodine, it is well-known, is important for the mental development of young children. Iodised salt is a well-accepted mode of ensuring appropriate iodine intake. Yet Iodine added to salt is lost in transport, storage as well as in the process of cooking. HUL scientists have developed a patented breakthrough technology to stabilise iodine in salt, following work on the stability of iodine under Indian conditions of storage and cooking. The technology has made it possible to actually realise the purpose of iodised salt - that people get appropriate iodine intake through the food they eat. Technology of skin lightening Research in the biology of skin pigmentation has led to the formulation of a product like Fair & Lovely Skin Cream and Lotion. The product has been periodically updated through new patented actives. It has now become a global success through exports to over 30 countries. The product is equally used by the local population of these countries, apart from those of Indian origin.


HUL has equally developed new processes. In-house machine development The company has the capability to design and manufacture machines in-house. This enables the company to set up plants at half the cost of others. Such technological developments have also led to significant improvement in productivity.

Energy conservation
In the past, one of the most significant breakthroughs of HUL's research initiative has been the development of a technology to use non-conventional forest seed oils for soap-making which, since the 1970s, has helped save around $1.2 billion in foreign exchange. HUL had received the Government of India's prestigious award for import substitution. compromise Development on product of Structurant and Technology quality. for The soap latest manufacturing also helped save costly conventional oils without any performance technology to produce Distilled Fatty Acid for soap making and the resultant plant capacity expansion has drastically brought down specific energy consumption while improving distillation yields. The evolution of continuous soap processing technology has also reduced energy consumption. HUL believes that technology is critical to delight consumers. Creative application of technology has made Hindustan Lever successful in launching products and services, which raise the quality of life.










REHABILITATION TO TSUNAMI-HIT COMMUNITIES MUMBAI, January 7, 2005: Hindustan Unilever Limited (HUL) today announced to commit, a total outlay of Rs.8 crores for immediate relief and helping people to rehabilitate them so that they can resume their livelihood, in the tsunami-hit areas of Pondicherry, Tamil Nadu and Kerala. Of this, Rs.5 crores (absolute value terms) is being utilized for distribution of the Company's nutritional & personal hygiene products for immediate relief to the needy. Another Rs.3 crores will be raised partly by contributions from company employees and the balance contribution from the Company to be used in collaboration with NGOs working with the community to provide the people, notably fishermen, with means of livelihood and help them back on their feet. Since December 26, employees of HUL factories and offices in Pondicherry, Tamil Nadu and Kerala have been providing necessary relief to the tsunami-hit people. The relief operations include distribution of bread and biscuits to over 2000 families in Pondicherry, 12,000 cooked meals for families in Chennai, Nagapattinam, Cuddalore and Andamans. Over 12,000 dry relief packs, comprising of Company's dry rations and personal hygiene products have already been distributed. HUL's employees are donating a day's salary, matched equally by the Company for exclusive use in rehabilitation.


The biggest concern is, that people/ fishermen have lost their means of livelihood. HUL plans to focus its rehabilitation efforts to restore their means of livelihood so that the local communities can quickly get back to their lives at the earliest.

HUL has always been a front runner in its call for national duty and caring for the community. Its employees not only donate generously, but volunteer to take part in relief operations by committing their time and physical effort. This is in line with our corporate value of care and our CSR mission which has become an integral part in our way of doing business. Earlier during the Gujarat earthquake, HUL had adopted and

reconstructed a new village, Yashodadham, in Bhachau Taluka of Kutch district. Yashodadham, spread over 25 acres, comprises 289 homes, school building, an exclusive playground for children and a multi-purpose community centre, including an anganwadi (creche), health centre, community room and panchayat office, an underground reservoir and an overhead tank for water. All the dwelling units have electricity and piped water and are now fully occupied. HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians. HULs mission is to add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life.


Special Education & Rehabilitation Under the Happy Homes initiative, HUL supports special education and rehabilitation of children with challenges. Asha Daan: The initiative began in 1976, when HUL supported Mother Teresa and the Missionaries of Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged children, and the destitute. Subsequently, Asha Daan has also become a home to the HIV-positive. The objective in supporting Asha Daan was and continues to be to share the organsation's prosperity in supporting the Mother's mission of serving the "poorest of the poor". Asha Daan has been set up on a 72,500square feet plot belonging to HUL, in the heart of Mumbai city. HUL bears the capital and revenue expenses for maintenance, upkeep and security of the premises. The destitute and the HIV-positive are provided with food, shelter and medication for the last few days of their lives. The needs of the abandoned challenged children are also met through special classes of basic skills, physiotherapy and, if possible, corrective surgery. At any point of time, it takes care of over 300 infants, destitute men and women and HIV-positive patients. Over the years, HUL has opened schools for challenged children with a sharper objective of supporting families of such children, helping the children become self-reliant by learning appropriate skills to be productive members of the household.


Ankur: In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special education of challenged children. The centre takes care of children with challenges, aged between 5 and 15 years. Ankur provides educational, vocational and recreational activities to over 35 children with a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral palsy and severe learning difficulties. These physically and mentally challenged children are taught skills, such as cookery, painting, embroidery, bamboo crafts, weaving, stitching, etc depending on their aptitudes. The centre has rehabilitated 10 children, including self-employment for 6 children by providing them with shops, and 3 girls have been provided employment as creche attendants. It has also moved to normal schools 18 children. Since inception it has covered about 80 children. Ankur received the Lawrie Group Worldaware Award for Social Progress in 1999 from HRH Princess Royal in London.

Kappagam: Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of challenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children. The focus of Kappagam is the same as that of Ankur. The centre has 17 children, being taught self-help skills, useful vocational activities like making of paper covers, greeting cards, wrapping papers, fancy stationery, napkins, brooms made out of coconut leaves, candles, and also some home care products. About 12 of the children have become relatively self-reliant by earning through crafts learnt at the centre. Since inception, it has covered about 28 children.


Anbagam: Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are being taught skills such that they can become self-reliant and elementary studies. Over 20,000 individuals have benefitted from the Happy Homes initiatives since inception. HUL is wholeheartedly involved with all four centres and will continue to be involved in the future.



Total Sales grow by 14.4%; FMCG Sales growth at 15.8% HPC and Foods grow by 17% and 9% respectively; Broad based growth across categories PBIT grows 13.5%; Net Profit increases by 56% EPS for 2005 grows 17.6%; Final Dividend Rs 2.50 per share of Re 1/- each; Total Dividend Rs 5.00 per share for 2005

Mumbai, February 14, 2006: Hindustan Unilever Limited


announced its results for December Quarter 2005. Growth momentum achieved in the last three quarters has been sustained with total sales growing by 14.4%. Domestic FMCG sales were higher by 15.8% with both Home and Personal Care (HPC) and Foods performing well. HPC business grew by 17.3% driven by strong performance in all categories. Significant sales growth was achieved in the highly

competitive categories of Laundry and Shampoo. Soaps recorded good growth, with Lux growing handsomely reflecting in market share gains. All the brands in Skin category maintained their strong performance leading to a double digit growth for the category. Consumer relevant innovations continue to drive off-take and key innovations during the quarter include the re-launch of Thick and Strong Sunsilk Pink, Lux variants for the 75-year celebrations, and the national launch of Jasmine Fresh Rin Advanced Powder. In Foods business, Tea achieved a modest growth despite a declining market and falling commodity prices; Coffee continued to perform well. Processed Foods business grew strongly, albeit on a low base. The Icecream business also achieved a 33% increase in sales, led by the impulse category. Relaunch of Knorr soup with a superior mix and introduction of new variants was the key Foods innovation during the quarter. Profit before Interest and Taxes (PBIT) increased by 13.5% after absorbing a 50% higher spend in Advertising and Promotions. Higher crude oil price led cost pressures continued, particularly in Laundry category, but were mitigated by aggressive cost effectiveness programs. Profit after tax (PAT) grew by 22.7% due to a lower effective tax rate and Net profit, including the impact of exceptional items was higher by 56%. For full year 2005, total sales were 11.4% higher than in the previous year, with broad based growth across categories leading to both HPC and Foods businesses growing by 14% and 8%, respectively. Judicious price increases coupled with robust cost saving initiatives


partly neutralised the impact of both cost escalations, particularly in the Laundry category, and the higher investments behind brands. Consequently, PBIT increased by 1.1%. A lower tax charge for the year resulted in a PAT growth of 12.9%. Net Profit and Earnings Per Share at Rs 6.40, grew by 17.6%. Mr Harish Manwani, Chairman commented: We have sustained the growth momentum in December quarter and it continues to be broad based across HPC and Foods categories, particularly, in the competitive categories of Laundry and Shampoo. This was driven by higher investment behind our brands with exciting innovations, excellent activation, new initiatives in Customer Management and with significantly higher levels of A&P spends. of six years. Our strategic priority remains unchanged. We will continue to The double digit sales growth of over 11% for the year 2005 has been achieved after a gap

leverage our focused portfolio of powerful brands to sustain market leadership and grow our market position across strategic brands and categories. In a competitive landscape, we shall continue to deliver We recognize the consumer value and invest behind our brands.

challenge of inflationary cost pressures driven by crude oil prices and, in the competitive context, achieving cost leadership across the extended supply chain continues to be a key priority.

DIVIDEND The Board of Directors at their meeting held on February 14th, 2006 has proposed a final dividend of Rs 2.50 per share of Re 1 each, subject to the approval of the shareholders at the annual general


meeting. This along with the interim dividend of Rs 2.50 per share amounts to a total dividend of Rs 5.00 per share for the year 2005. HUL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HULs mission is to add vitality to life through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. HUL TRANSFERS TEA ESTATES INDIA TO MAXWELL GOLDEN TEA PRIVATE LIMITED Mumbai, March 01, 2006: Hindustan Unilever Limited (HUL) has

transferred its entire shareholding in its 100% subsidiary Tea Estates India Limited (TEIL) to Maxwell Golden Tea Private Limited (MGT), a Woodbriar Group company on March 1, 2006. TEIL owns 8 tea estates and 6 factories for processing tea in the high-yielding belt of Tamilnadu with an average annual output of approx. 10,500 metric tons. Woodbriar Group has interests in plantations, insurance services and real estate. The Groups gardens are spread across the premium tea growing regions in Tamilnadu and Kerala. HUL management believes that the proposed transfer to Woodbriar Group is in the best interest of the tea plantation business and all its stakeholders. Existing terms and conditions of services of all TEIL employees will be fully protected in accordance with applicable laws and terms of their employment.


The acquisition of TEIL by Woodbriar Group will provide scale and bring in synergy benefits to Woodbriar Group, as a large portion of TEIL gardens are contiguous to the existing tea gardens of Woodbriar Group. Canara Bank, Madurai Circle has funded the debt component to Woodbriar Group for this acquisition. With this disposal of shareholding in TEIL, HUL has completed its exit from its tea plantations business both in South India and Assam. It may be recalled that HUL had sold its interests in Rossell Industries Limited and Doom Dooma Tea Company Limited in Assam during the last 12 months. DSP Merrill Lynch Limited acted as financial advisor to Hindustan Unilever Limited . About HUL: HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians. HUL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. For more information visit


The section includes the overall research design, the sampling procedure, the data collection method, the field method, and analysis and procedure. RESEARCH DESIGN For this research project exploratory method is using DATA COLLECTION METHOD The data collect for the research can be classified as primary data and secondary data. Primary data is by visiting existing customer and expected customer of Hindustan Unilever Limited and making them fill up the questionnaire. Secondary data is from internet, books, magazine etc.

The instrument use for data collection is structured questionnaire. Question is open and close ended depending upon the information that needed to be elicited. I am also using the scaling technique to assess the attitude of the customer. SAMPLING PLAN Keeping all the constrains in mind a sample size of 100 people .The sampling procedure is systematic sampling


The Indian FMCG market currently appears to be at a crossroads, and HUL are attempting to change customer perceptions of their brands and where specific buying motivations appear to be replacing generalities. This meanwhile is quite unlike the west where buyers consider aesthetics, comfort and safety, not necessarily in that order, before finalising a purchase. Its smarter to think about emotions and attitudes, if marketers are to do a better job of marrying what a HUL offers to the consumers image of the offerings. Another important outcome of the research is the believability of the claims. Most of the claims are realistic and easy to understand. Most of the people dont understand the quality claims by HUL. The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper than his neighbour. Things are, however, slowly changing and customers at the upper end of the market are now ready to pay more for more. I hope that this approach will soon enter the new era, maybe not with the same intensity. Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a Product. Thus, success could well hinge on the best of bundle of services that HUL provides.HUL grew from zero to the 2,268 Million $, mark and the number One FMCG company in India this year. Looking at the present scenario it can be said that though there is lot of competition in the market but HUL is picking up well. The landmark achievement comes in 74 years in India after clinching its first overseas sale.


The HUL and P&G companies having good market share in India and it keep on increasing. Both the co. i.e. HUL and P&G should open exclusive shop. HUL is already having exclusive shop in Mumbai called SANGAM STORE. But it is only in India so it should be increased. The employee should be given uniforms in which the name of the company should be printed, by doing this the sales people get motivated. These shops should be opened for 24 hours. They should offer 24 hours free home delivery system. The delivery vehicle should be attractive the name of the company should be printed in that so that it becomes the sources of advertisement. The companies should emphasis on its advertisement; there should be BRAND FIT in that. For example, Lux launching its advertisement featuring Shahrukh khan with young girls. It was heavily criticized because it was not fit with the brand. It adversely affects the opinion of the customer and it results in decrease in sales. Both companies should emphasis their business in areas. They should penetrate their business in the rural areas. 69% of the Indian population lives in rural areas. There is huge market there and very less market has been penetrated. Both these companies should concentrate on rural areas. P&G has been hardly been seen in the rural areas. So they should increase their presence.


They should increase their CSR activities in northern India. At present they are currently doing their CSR in southern India. So they should increase their activities in north India also.

Key attributes components: Value for money and Customer Care Operational attributes. Physical attributes. Brand Image. Customer Specific Details. In any correspondence with the customers the message should be sent in these components only to have the maximum benefit from the advertisement. Also these components should be dealt with independently. The advertisements should speak only of the believable concepts rather than glorifying the pretentious ones. The basic need of the customer need to be addressed which is actually not much expensive and better quality. HUL sales growth in June 2004 was decreased due to the problem with promotion and pricing. Although being the most competitive product on the basis of the Market Operating Price (MOP), the shampoos are still not selling much. This is perhaps due to the bargaining stress on the customer and the weak push given by the dealer to the particular item, when actually it should be sold like a high volume product. Another serious suggestion is that HUL must give good attention to their all the products rice and all are not getting much attention. The


dealers dont provide much support to the customers in making them understand the real Quality behind them. Either, the technical details should be presented in a clearer manner or the dealers need to be educated properly.

Everything in this world has its own advantages and disadvantages which shows nothing is perfect. Following are the problems faced but its a part of game: 1. TIME CONSUMING: It is very much obvious that it is a time consuming process. So much time has been spent for this purpose. 2. LOW PARTICIPATION: Obviously many respondents have not participated in this and have also created some problems which simply shows that they were not interested. 3. BIASNESS: Sometimes interested customers were also biased so the collected figures involve both positive and negative figures. 4. It does not cover all the aspects of the company. 5. SUBJECTIVE: This project only tells you what it is all about.


1. The Times of India and Hindustan Times 2. The Economic Times 3. Companys brochure 4. 5.