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What Is Research?
Research is a systematic inquiry to describe, explain, predict and control the observed
phenomenon. Research involves inductive and deductive methods (Babbie, 1998).
Inductive methods analyze the observed phenomenon and identify the general
principles, structures, or processes underlying the phenomenon observed; deductive
methods verify the hypothesized principles through observations. The purposes are
different: one is to develop explanations, and the other is to test the validity of the
explanations.
One thing that we have to pay attention to research is that the heart of the research is
not on statistics, but the thinking behind the research. How we really want to find out,
how we build arguments about ideas and concepts, and what evidence that we can
support to persuade people to accept our arguments.
Gall, Borg and Gall (1996) proposed four types of knowledge that research
contributed to education as follows:
1. Description: Results of research can describe natural or social phenomenon,
such as its form, structure, activity, change over time, relationship to other
phenomena. The descriptive function of research relies on instrumentation for
measurement and observations. The descriptive research results in our
understanding of what happened. It sometimes produces statistical information
about aspects of education.
2. Prediction: Prediction research is intended to predict a phenomenon that will
occur at time Y from information at an earlier time X. In educational research,
researchers have been engaged in:
o Acquiring knowledge about factors that predict students' success in
school and in the world of work
o Identifying students who are likely to be unsuccessful so that
prevention programs can be instituted.
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3. Improvement: This type of research is mainly concerned with the effectiveness
of intervention. The research approach include experimental design and
evaluation research.
4. Explanation: This type research subsumes the other three: if the researchers
are able to explain an educational phenomenon, it means that they can
describe, can predict its consequences, and know how to intervene to change
those consequences.
What Are The Purposes Of Research?
Patton (1990) pointed out the importance of identifying the purpose in a research
process. He classified four types of research based on different purposes:
1. Basic Research: The purpose of this research is to understand and explain, i.e.
the research is interested in formulating and testing theoretical construct and
propositions that ideally generalize across time and space. This type of
research takes the form of a theory that explains the phenomenon under
investigation to give its contribution to knowledge. This research is more
descriptive in nature exploring what, why and how questions.
2. Applied Research: The purpose of this research is to help people understand
the nature of human problems so that human beings can more effectively
control their environment. In other words, this type of research pursues
potential solutions to human and societal problems. This research is more
prescriptive in nature, focusing on how questions.
3. Evaluation Research (summative and formative): Evaluation research studies
the processes and outcomes aimed at attempted solution. The purpose of
formative research is to improve human intervention within specific
conditions, such as activities, time, and groups of people; the purpose of
summative evaluation is to judge the effectiveness of a program, policy, or
product.
4. Action Research: Action research aims at solving specific problems within a
program, organization, or community. Patton (1990) described that design and
data collection in action research tend to be more informal, and the people in
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the situation are directly involved in gathering information and studying
themselves.
What Is The Research Process?
Gall, Borg, and Gall (1996) described the following stages of conducting a research
study:
1. Identify a significant research problem: in this stage, find out the research
questions that are significant and feasible to study.
2. Prepare a research proposal: a research proposal usually consists of the
sections including introductory, literature review, research design, research
method, data analysis and protection of human subject section, and timeline.
3. Conduct a pilot study: the purpose is to develop and try out data-collection
methods and other procedures.
4. Conduct a main study
5. Prepare a report










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What Is A Report?
A report is written for a clear purpose and to a particular audience. Specific
information and evidence are presented, analysed and applied to a particular problem
or issue. The information is presented in a clearly structured format making use of
sections and headings so that the information is easy to locate and follow.
When you are asked to write a report you will usually be given a report brief which
provides you with instructions and guidelines. The report brief may outline the
purpose, audience and problem or issue that your report must address, together with
any specific requirements for format or structure. This guide offers a general
introduction to report writing; be sure also to take account of specific instructions
provided by your department.
What Makes A Good Report?
Two of the reasons why reports are used as forms of written assessment are:
to find out what you have learned from your reading, research or experience;
to give you experience of an important skill that is widely used in the work place.
An effective report presents and analyses facts and evidence that are relevant to the
specific problem or issue of the report brief. All sources used should be acknowledged
and referenced throughout, in accordance with the preferred method of your
department. For further information see the Learning Development guide: Avoiding
Plagiarism. The style of writing in a report is usually less discursive than in an essay,
with a more direct and economic use of language. A well written report will
demonstrate your ability to:
understand the purpose of the report brief and adhere to its specifications;
gather, evaluate and analyse relevant information;
structure material in a logical and coherent order;
present your report in a consistent manner according to the instructions of the report
brief;
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make appropriate conclusions that are supported by the evidence and analysis of the
report;
make thoughtful and practical recommendations where required.
The Structure Of A Report
The main features of a report are described below to provide a general guide. These
should be used in conjunction with the instructions or guidelines provided by your
department.
Title Page
This should briefly but explicitly describe the purpose of the report (if this is not
obvious from the title of the work). Other details you may include could be your
name, the date and for whom the report is written.
Geology of the country around Beacon Hill, Leicestershire
Angus Taylor
2 November 2004
Example of a title page
Terms of Reference
Under this heading you could include a brief explanation of who will read the report
(audience) why it was written (purpose) and how it was written (methods). It may be
in the form of a subtitle or a single paragraph.
A report submitted in fulfilment of the requirements for Course GL456, Department
of Geology, Univeristy of Leicester.
Example of terms of reference
Summary (Abstract)
The summary should briefly describe the content of the report. It should cover the
aims of the report, what was found and what, if any, action is called for. Aim for
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about 1/2 a page in length and avoid detail or discussion; just outline the main points.
Remember that the summary is the first thing that is read. It should provide the reader
with a clear, helpful overview of the content of the report.
Exposure of rocks belonging to the Charnian Supergroup (late Precambrian) were
examined in the area around Beacon Hill, north Leicestershire. This report aims to
provide details of the stratigraphy at three sites - Copt Oak, Mount St. Bernard Abbey
and Oaks in Charnwood. It was observed that at each of these sites, the Charnian
Supergroup consists mainly of volcaniclastic sediments (air-fall and ash-flow tuffs)
interbedded with mudstones and siltstones. These rocks show features that are
characteristic of deposition in shallow water on the flanks of a volcano (e.g. welding
and alteration of ignimbrites). Further studies are required to understand depositional
mechanisms and to evaluate the present-day thickness of individual rock units.
Example of a summary (abstract)
Contents (Table of Contents)
The contents page should list the different chapters and/or headings together with the
page numbers. Your contents page should be presented in such a way that the reader
can quickly scan the list of headings and locate a particular part of the report. You
may want to number chapter headings and subheadings in addition to providing page
references. Whatever numbering system you use, be sure that it is clear and consistent
throughout.
Introduction
The introduction sets the scene for the main body of the report. The aims and
objectives of the report should be explained in detail. Any problems or limitations in
the scope of the report should be identified, and a description of research methods, the
parameters of the research and any necessary background history should be included.
In some reports, particularly in science subjects, separate headings
for Methods and Resultsare used prior to the main body (Discussion) of the report as
described below.
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Methods
Information under this heading may include: a list of equipment used; explanations of
procedures followed; relevant information on materials used, including sources of
materials and details of any necessary preparation; reference to any problems
encountered and subsequent changes in procedure.
Results
This section should include a summary of the results of the investigation or
experiment together with any necessary diagrams, graphs or tables of gathered data
that support your results. Present your results in a logical order without comment.
Discussion of your results should take place in the main body (Discussion) of the
report.
Discussion
The main body of the report is where you discuss your material. The facts and
evidence you have gathered should be analysed and discussed with specific reference
to the problem or issue. If your discussion section is lengthy you might divide it into
section headings. Your points should be grouped and arranged in an order that is
logical and easy to follow. Use headings and subheadings to create a clear structure
for your material. Use bullet points to present a series of points in an easy-to-follow
list. As with the whole report, all sources used should be acknowledged and correctly
referenced. For further guidance check your departmental handbook and the Student
Learning Centre guide: Referencing and Bibliographies.
Conclusion
In the conclusion you should show the overall significance of what has been covered.
You may want to remind the reader of the most important points that have been made
in the report or highlight what you consider to be the most central issues or findings.
However, no new material should be introduced in the conclusion.
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Appendices
Under this heading you should include all the supporting information you have used
that is not published. This might include tables, graphs, questionnaires, surveys or
transcripts. Refer to the appendices in the body of your report.
In order to assess the popularity of this change, a questionnaire (Appendix 2) was
distributed to 60 employees. The results (Appendix 3) suggest the change is well
received by the majority of employees.
Example of use of appendices
Bibliography
Your bibliography should list, in alphabetical order by author, all published sources
referred to in your report. There are different styles of using references and
bibliographies. Refer to the study guide Referencing and Bibliographies and check
your departmental handbook for guidelines. Texts which you consulted but did not
refer to directly could be grouped under a separate heading such as 'Background
Reading' and listed in alphabetical order using the same format as in your
bibliography.
Acknowledgements
Where appropriate you may wish to acknowledge the assistance of particular
organisations or individuals who provided information, advice or help.
Glossary of Technical Terms
It is useful to provide an alphabetical list of technical terms with a brief, clear
description of each term. You can also include in this section explanations of the
acronyms, abbreviations or standard units used in your report.



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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.
HUL works to create a better future
every day and helps people feel good,
look good and get more out of life with
brands and services that are good for
them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents,
shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods,
ice cream, and water purifiers, the Company is a part of the everyday life of millions
of consumers across India. Its portfolio includes leading household brands such as
Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm,
Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr,
Kissan, Kwality Walls and Pureit.
The Company has over 16,000 employees and has an annual turnover of around
Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one
of the worlds leading suppliers of fast moving consumer goods with strong local
roots in more than 100 countries across the globe with annual sales of about 46.5
billion in 2011. Unilever has about 52% shareholding in HUL.
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, keeping
their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or
healthy snack.
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A Clear Direction
The four pillars of our vision set out the long term direction for the company where we want
to go and how we are going to get there:
We work to create a better future every day
We help people feel good, 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 everyday actions that can add up to a big difference for
the world.
We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of peoples lives and
in doing the right thing. As our business grows, so do our responsibilities. We recognise that
global challenges such as climate change concern us all. Considering the wider impact of our
actions is embedded in our values and is a fundamental part of who we are.











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Our Mission

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.

Our Vision

To Earn the Love and Respect of India, by making a real
difference to every Indian


Our Purpose

At the heart of the corporate purpose, which guides us in our
approach to doing business, is the drive to serve consumers in a
unique and effective way. This purpose has been communicated
to all employees worldwide.



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PRODUCT PORTFOLIO
KWALITY WALL'S ICE CREAM
LIFEBUOY
LUX
BREEZE
LIRIL
REXONA
HAMAM
MOTI SOAPS
PURE IT WATER PURIFIER
LIPTON TEA
BROOKE BOND TEA
BRU COFFEE
PEPSODENT AND CLOSE UP TOOTHPASTE AND BRUSHES
SURF
AXE DEOSPRAYS.
RIN
WHEEL LAUNDRY DETERGENTS
KISSAN SQUASHES AND JAMS
ANNAPURNA SALT AND ATTA
POND'S TALCS CREAMS
VASELINE LOTIONS
FAIR AND LOVELY CREAMS
LAKM BEAUTY PRODUCTS
CLINIC PLUS
CLINIC ALL CLEAR
SUNSILK SHAMPOOS
DOVE SHAMPOOS
VIM DISHWASH
ALA BLEACH
DOMEX DISINFECTANT
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REXONA


























Household Care
Fabric wash (laundry
soaps and synthetic
detergents)
Household
cleaners(dish/utensil
cleaners, floor cleaners,
toilet cleaners, air
fresheners, insecticides
and mosquito
repellents, metal polish
and furniture polish)
Personal Care
Oral care, hair care,
skin care, personal
wash (soaps)
Cosmetics and
toiletriesdeodorants
Perfumes
Feminine hygiene
Paper product
Food & Beverage
Health beverages; soft
drinks
Staples/cereals
Beverages bakery
products (biscuits,
bread, cakes)
Snack food
Chocolates
Ice cream
Tea
Coffee
Soft drinks
Processed fruits,
vegetables
Dairy products
Bottled water
Branded flour
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Company structure
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods
(FMCG) company. It is present in Home & Personal Care and Foods & Beverages
categories. HUL has over 16,500 employees, including over 1500 managers
HUL (Hindustan Unilever Limited)
Parent Company Unilever Limited
Category Consumer Products, Food & Beverages
Sector FMCG
Tagline/ Slogan Small Actions, Big Difference
USP India's largest fast-moving consumer goods company
STP
Segment Products and services for daily needs
Target Group Every Indian household especially the middle class
Positioning
Being the largest FMCG company , their little efforts make a huge
difference in the lives of people

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Milestones

1895 - Lifebuoy soap was launched
1902 -Pears soap was introduced
1903 - Brooke Bond Red Label tea launched
1905 - Lux flakes introduced.
1913 -Vim scouring powder introduced.
1914 - Vinolia soap launched in India.
1918 - Vanaspati introduced.
1922 - Rinso soap powder introduced.
1924 - Gibbs dental preparations launched
1996 -Formation of Hul
1969- Rin bar
1972 ClinicPlus were introduced both of which made HuL take a firm platform.
1968 - Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon
(the first indian director) 1982- the Government allowed 51% Unilever shareholding.
1993 -HLL's largest competitor, Tata Oil Mills Company (TOMCO), merged with the
company. Brooke Bond India acquired Kissan Business from the UB Group and
Dollops icecream business from Cadbury . 2007- the company was renamed as
Hindustan Unilever Limited.



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DIRECTORS' REPORT:
To the Members,
Your Company's Directors are pleased to present the 80th Annual Report of the
Company, along with Audited Accounts, for the financial year ended 31st March,
2013.
1. DIVIDEND
Your Directors are pleased to recommend a Final Dividend of Rs. 6.00 per equity
share of face value of Re. 1/- each for the year ended 31st March, 2013. The Interim
Dividend and Special Dividend of Rs. 4.50 and Rs. 8.00 per equity share,
respectively, were paid on 16th November, 2012.
The Final Dividend, subject to approval of Members at the Annual General Meeting
on 26th July, 2013, will be paid to the Members whose names appear in the Register
of Members, as on the date of book closure, i.e. from Friday, 12th July, 2013 to
Friday, 26th July, 2013 (inclusive of both dates). The total dividend for the financial
year, including the proposed Final Dividend, amounts to Rs. 18.50 per equity share
and will absorb Rs. 4,655.68 crores, including Dividend Distribution Tax of Rs.
655.69 crores.
2. RESPONSIBILITY STATEMENT
The Directors confirm that:
in the preparation of the annual accounts, the applicable accounting standards have
been followed and that no material departures have been made from the same;
they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent, so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year and of the
profits of the Company for that period;
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they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 1956, for
safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; and,
they have prepared the annual accounts on a going concern basis.
3. MANAGEMENT DISCUSSION AND ANALYSIS
In order to avoid duplication between the Directors' Report and the Management
Discussion and Analysis, we present below a composite summary of performance of
the various businesses and functions of the Company.
4.CUSTOMER DEVELOPMENT
During the year, your Company ensured that it continues to build on its reputation of a
distribution and execution powerhouse with a best in class quality and a vast
distribution network of more than 2,500 re-distribution stockists.
Your Company has undertaken some important initiatives during the year to become
more customer centric and win in the market place. These initiatives include
establishing dedicated call centres for distributors as well as retailers to reach out to
the Company. The call centres set up for retailers have helped millions of outlet
owners reach out directly to the Company. The calls received from retail outlets
provide useful insights and help the Company understand issues and opportunities in
the market place better and address them effectively. Your Company has also
launched a structured Consumer & Customer License programme, under which
Company employees spend time with the customers to understand their needs better.
These initiatives have helped in keeping the consumers and customers at the heart of
your Company's business model.
During the year, your Company set up a state-of-the-art Customer Insight and
Innovation Centre (CiiC) at Mumbai, the latest among seven such centres across
Unilever worldwide. This centre is equipped with the latest technologies to help us
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work closely with our distributive and modern trade partners to develop sharp and
incisive shopper insights and platforms to win with shoppers.
Your Company further strengthened the Perfect Stores programme to drive superior
availability and visibility of its products at the market place. The Perfect Stores
programme has proven to deliver higher growth and share for the business. Your
Company continues to make good progress in covering more stores under the Perfect
Stores programme.
Modern Trade, which is the growth channel for the future, continues to be a focus
area for your Company. The relentless focus on joint business planning and ensuring
best in class on-shelf availability to grow the business together was appreciated by
modern trade customers. Your Company was awarded the 'Best Supplier' by leading
modern trade customers for yet another year.
Leveraging the rural distribution network of the Company, the rollout of Telecom
Distribution alliance with Tata Teleservices Limited (TTSL) into 13 Telecom Circles
nationally for the distribution of telecom products, was completed during the year.
The Company is now distributing these products in more than 95,000 telecom outlets
through over 720 rural distributors. This distribution alliance has helped the Company
further drive rural growth with enhanced earning potential for its channel partners,
rural distributors and Shakti entrepreneurs.
5. SUPPLY CHAIN
Your Company's Supply Chain agenda for the year was focused on strengthening five
key areas: Customer Service Excellence, Focus on Consumer & Customer Quality,
Robust Supply Chain Saving Programme, Turbo-Charging TPM (Total Productivity
Management) and Partner to Win through Continuous Improvement, Teaming and
Collaboration.
Your Company has made significant progress in its vision to deliver outstanding
customer service and enable sustainable growth. The service delivery standards
improved steadily with CCFOT (Customer Case Fill on Time) increasing to 93%. The
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Customer Satisfaction Survey Scores and Best Supplier recognition from customers
have been encouraging and suggest that the actions taken by your Company are in the
right direction. Modern Trade OSA (On-Shelf Availability) has further improved
during the year. Your Company has embedded Sales and Operation Planning Process
(S&OP) and Innovation Process Management (IPM) as business enabler and is adding
value to the business.
The quality performance measured as Consumer Relevant Quality Standard (CRQS)
has shown 50% improvement over last year. Quality continues to be a major focus
area, with a thrust on design quality improvement and new quality standards
implementation for warehousing and transportation. The consumer care lines have
been improved and are being used as channels to engage with consumers.
Your Company has a robust Supply Chain savings programme with continuous focus
on end-to-end Supply Chain cost reduction through new technologies, alternative
sources of energy, efficient processes and methods. During the year, your Company
has delivered 5% saving in Supply Chain cost with sourcing network optimisation,
logistic efficiency through improved utilisations, factory production cost reduction
through improvement in energy efficiency, technical efficiencies, wastage reduction
and yield improvement.
The TPM journey, with strong focus on autonomous maintenance, preventive
maintenance, focused improvement and strong circle engagements, has helped the
Company improve employee engagement, efficiency and derive competitive
advantage. The performance across PQCDSM (Productivity, Quality, Cost, Delivery,
Safety, and Morale) is showing sustained improvement.
Your Company has progressed on the long term plan to create capacities through
efficiency improvement, speed improvement and high speed technologies to support
volume growth while managing costs. Your Company has successfully executed all
capacity creation projects on time to ensure smooth delivery during the year.
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There has been a 15% improvement in innovation OTIF (On Time in Full) with more
than 150 innovation networks being executed during the year touching more than 50%
of the product portfolio. The focus on better and faster innovation and capability
development has significantly helped the Company launch innovations first time
right. Your Company has identified beauty, foods, modern trade and rural as key
capabilities to win in the future and the supply chain function has significantly
improved capability and skill building in these areas during the year.
The Partner to Win programme with supplier and business partners in procurement
function focuses on reducing lead time, decreasing procurement cost, improving
reliability and work on new innovation. Your Company leverages benefits of scale
and synergy through Unilever's global buying network.
6. RESEARCH & DEVELOPMENT
Your Company continues to derive sustainable benefit from the strong foundation and
long tradition of Research & Development (R&D) which differentiates it from many
others. New products, processes and benefits flow from work done in various
Unilever R&D Centres across the globe as well as in the Research Centres in India.
The R&D labs in Mumbai and Bangalore are aligned to Unilever's global R&D. Many
of the projects run out of these centres are of global relevance and have a strong focus
on the needs of this region and the overall Developing & Emerging (D&E) world.
With the world class facilities and a superior science and technology culture, your
Company is able to attract the best talent to provide significant technology
differentiation to its products and processes.
Your Company's R&D programmes are focused on development of breakthrough and
proprietary technologies with innovative consumer propositions. The R&D team of
over 750 people comprises highly qualified scientists and technologists working in
areas of Home & Personal Care, Foods & Beverages and Water Purification. The
R&D group also comprises critical functional capability teams in the areas of
Regulatory, Clinicals, Patents, Digital R&D, Product & Environment Safety and Open
Innovation.
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During the year, your Company introduced several innovations in Soaps and
Detergents category. In Wheel, a new surfactant was introduced to enhance superior
performance and quality. Surf Excel Blue was re-launched with significantly
improved efficacy. Household Care launched Domex toilet cleaner in a child safe
pouch form to make hygiene more affordable. New water saving rinse aids 'Magic'
and 'Comfort One Rinse' were introduced in a test market.
In Personal Care category, particularly Skin Care, the key deliveries during the year
were PPARs (Peroxisome Proliferation-Activated Receptor) and a new modified
sunscreen system. Both of these products were launched as world's first skin and spot
lightening cream sensory, with SPF20 under Pond's White Beauty. The PPARs, along
with next-generation instant optics, were also launched as a part of the new Fair &
Lovely Advanced Multivitamin formula.
In Hair Care category, Clinic Plus was re-launched with improved formulation that
provides enhanced wet and dry conditioning and a significantly superior hair fall
reduction benefit. A colour rescue variant in Dove, specially formulated for care of
coloured hair was introduced. TRESemme, an international salon brand, with a
formulation tailored for Indian hair and endorsed by salon professionals, was
launched for the first time in India. The entire range of Sunsilk was re-launched with
enhanced benefits and premium packaging. At the end of the year, premium hair oil
under Dove, comprising a special, light and non-sticky nourishing formula with
precious oils and real flowers, was launched.
In Oral Care category, Pepsodent Expert Protection was launched in the premium
segment with a new regime based claim, 'action of toothpaste, mouthwash and floss in
one tube'. Closeup was re-launched with a new anti-malodour agent and new claims,
such as 3X more fresh breath for 12 hours.
The year witnessed several new R&D innovations in Beverages category. Brooke
Bond Taaza was re-launched with new proposition, packaging and a superior product
delivery aimed at enhancing economy of use for consumer. Lipton Iced tea powder
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mixes were revamped with new product and packaging. Taj Mahal leaf tea range was
extended to new geographies with location specific blends.
The Foods R&D team has continued to focus on delivering winning formulations and
product superiority. A new variant called 'Sweet & Spicy' was launched under Kissan
ketchups, which is a winning formulation when compared in blind with other products
in the market by consumers. In the Jams portfolio of Kissan, a new pack at an
affordable price of Rs. 5/-was introduced to drive penetration in the category. In
Frozen Desserts category, a new variant of Cornetto, 'Pistachio' was also developed
and launched. Premium single origin, freeze dried coffee range under BRU was
expanded with the launch of a new unique variant, Guatemala. R&D along with
supply chain and procurement teams, also focused on developing innovative end-to-
end solutions to proactively manage commodity cost pressures.
In Water business, advanced Pureit with significantly enhanced design was launched.
A long life battery kit was also launched for Pureit during the year. The year also
witnessed the launch of a reverse osmosis based water purifier, Pureit Marvella UV.
R&D has further contributed to the Company's sustainability agenda by enabling
significant reduction in packaging material consumption through several material
efficiency initiatives. Your Company's R&D is also working on novel technologies to
help save substantial amount of water.
With strong scientific expertise and the potential to deliver high value technologies,
India continues to occupy a premier position in Unilever R&D. Your Company is well
placed to meet the challenges emanating from the increased competition intensity and
the opportunities to drive faster growth on the back of strong support from R&D as
well as brand development capabilities.
Your Company had entered into a Technical Collaboration Agreement (TCA) and a
Trade Mark License Agreement (TMLA) with Unilever. The TCA provided for
payment of 1% royalty on net sales of specific products, manufactured with technical
inputs developed by Unilever. The TMLA provided for the payment of trademark
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royalty at the rate of 1% of net sales on specific brands, where Unilever owns the
trade mark in India. Given that the pace of innovations and the scope of services have
expanded over the years and that Unilever's global resources are providing greater
expertise, superior innovations and scale advantage for all Unilever entities, your
Company is enjoying the benefits of an increasing stream of new products and
innovations, backed by technology and know-how from Unilever. Your Company is
also receiving support and guidance to drive functional excellence in marketing,
supply management, media buying, IT, etc., which helps your Company to remain
competitive and further step-up its overall business performance.
Unilever is committed to ensuring that the support in terms of new products,
innovations, technologies and services is commensurate with the needs of your
Company and enables it to win in the market place. Given the need for increased
levels of service and the consequent additional costs, your Company has entered into
a new agreement with Unilever in order to ensure a fair recovery of costs by Unilever.
In terms of the new agreement, the existing royalty cost of c. 1.4% of turnover will
increase, in a phased manner, to a royalty cost of c. 3.15% of turnover no later than
the financial year ending 31st March 2018, i.e. a total estimated increase of 1.75% of
turnover.
The details of expenditure on scientific research and development at the Company's
in-house R&D facilities eligible for a weighted deduction under Section 35(2AB) of
the Income Tax Act, 1961 for the year ended 31st March, 2013, are as follows:
Capital Expenditure: 1.67 crores
Revenue Expenditure: 35.66 crores
7. ENVIRONMENT, SAFETY, HEALTH AND ENERGY CONSERVATION
Your Company continues to focus on the vision of being an 'Injury Free' and 'Zero
Environment Incident' organisation. A behavioural safety programme was deployed
across the Company as the core of our safety journey. This has been supplemented by
a consistent focus on prevention of hand-in-machine and slip-trip-fall injuries at
24

workplace and multiple initiatives for improving road safety. In 2012, the safety
incident rate measured as total recordable frequency rate (TRFR) decreased by 61%
over 2008 baseline.
The behavioural safety model has now been customised as BeSafE and will be
launched company-wide in latter half of the year. Your Company has taken safety
programmes to the families and homes of employees, through 'Beyond Work Safety'
campaigns, which have been very well received. Your Company continues to
benchmark itself with the units known for best safety performance in the country and
across Unilever. Your Company has received many awards from the Government and
independent organisations for its safety practices.
Your Company continues to make excellent contribution to the Unilever Sustainable
Living Plan, where Unilever's vision is to double the size of its business while
reducing the overall impact on environment and improving its positive social impact.
Your Company has been taking steps to reduce electricity and water consumption in
its manufacturing processes as well as control waste generation. The key actions in
this direction include:
i. Use of biomass fired boilers and hot air generators, which reduce consumption of
fossil fuels like coal and furnace oil.
ii. Use of plant waste / by-products like spent tea leaves and coffee beans as fuel.
iii. Shift to cleaner sources of energy like natural gas and other renewable sources,
wherever available.
iv. Adoption of energy efficient technology, like LED lights, high efficiency motors,
electronic drives / inverters, screw compressors.
Your Company has reduced CO2 emissions (per tonne of production) in India by 22%
compared to 2008 baseline. Use of renewable energy has increased to 15% of the total
consumption. Your Company has reduced water usage in manufacturing operations
by 29% compared to 2008 baseline. Rainwater harvesting has been implemented in 22
25

units to recharge up to 3,32,000 KL /annum ground water. In addition, rainwater
recycling being done at seven sites of your Company has reduced up to 51,000 KL /
annum of freshwater usage. Total 31 sites became 'zero-discharge site' i.e. 79% of our
sites do not discharge any liquid effluent.
In all Company units, recyclable waste e.g. packaging material, empty raw material
containers, spent lubricants, project scrap, etc. are systematically segregated and
tracked for effective recycling. More than 98% of total waste is recycled in
environment friendly ways. Total waste per tonne from the manufacturing sites has
reduced by 77% against the 2008 baseline.
The information required under Section 217(1)(e) of the Companies Act, 1956, read
with the Companies (Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 with respect to energy conservation is appended hereto and forms part of
this Report.
8. HUMAN RESOURCES
Your Company's Human Resource agenda for the year was focused on strengthening
four key areas: building a robust and diverse talent pipeline, enhancing individual and
organisational capabilities for future readiness, driving greater employee engagement
and strengthening employee relations further through progressive people practices at
the shopfloor.
Your Company's employer brand has been built with high levels of rigour and
thoroughness through a large number of student interactions and qualitative and
quantitative analysis of the responses. Your Company is widely acclaimed for its
people development practices and has reinforced its position in this area. This,
coupled with the ability to attract best talent, gives a competitive edge to the
organisation. Your Company, for the fourth consecutive year, retained its position as
the Dream Employer with students of top business schools. Your Company was voted
to this position from a mix of FMCG, Consulting, Financial Services organisations,
26

etc. Your Company has also been voted as the No. 1 Employer for Mid Career
recruits in a survey conducted amongst active job candidates in the FMCG sector.
Your Company has a vision to improve its Gender Balance and the roadmap involves
a four pronged approach:
i. Increasing the number of female talent through proactive market mapping.
ii. Staying connected with our stakeholders through digital recruitment campaigns.
iii. Creating a culture of inclusion.
iv. Leveraging visible leadership role models.
The enablers for these could be as varied as flexi time to agile working to customised
solutions for women who come back from maternity breaks. 'Career by Choice', a
unique re-hire programme, provides a platform for women looking for real
opportunities to work flexibly and part time for live business projects. With these
enablers and focused plans, your Company has witnessed 8% shift in the Gender
Balance Ratio over the last two years.
The initial part of the journey for Talent and Organisation Assessment was undertaken
successfully. Your Company has now institutionalised the next phase of the Talent
and Organisation Assessment charters, which will take-off during 2013 and chart out
the best practices for each stream. The aim is to meet the requirements of the current
talent pool and to enhance the Company's future readiness.
In addition to building core capabilities in marketing, sales and distribution, your
Company is investing in the areas of beauty, foods, digital, e-commerce, frontline
capabilities and crafting brands for life, to win in the future. Your Company has
developed comprehensive plans in each of these key areas that are customised to suit
the present and future business needs. In addition to building capabilities, your
Company has also identified two key behaviours, Bias for Action and Consumer and
Customer Centricity that will supplement the capabilities to achieve business goals. In
27

order to drive Bias for Action, your Company has developed Project Sunset which is
an online platform for speedy resolutions of issues within the Company and has a
satisfaction score of over 88% from internal employees. To drive Consumer and
Customer Centricity, your Company has undertaken a number of activities to
regularly communicate with and reach out to its consumers and has a well defined
programme to capture insights from its consumers.
Your Company undertook intensive training programmes through a combination of
face-to-face and virtual learning approaches. Over 41,600 e-learning registrations
took place indicating that the spirit of 'learn where you are' is imbibed in employees of
the Company. Your Company is also investing in building capabilities in digital and
social media to find new platforms for brands to engage more effectively with Indian
consumers.
The Global People Survey is a part of the Unilever Employee Insight Programme,
which aims to give a voice to the Company's people and provides a vehicle to make
their views heard. The Survey also provides regular, meaningful and actionable
feedback to the leaders in the organisation. It has questions spread across several
dimensions in the areas such as Strategic Leadership, Immediate Boss Effectiveness
and Engagement. Feedback from this survey forms the basis of holistic engagement
plans, which are reviewed regularly. As per Global People Pulse Survey 2012, India
features in the top 25 countries across Unilever. An extremely favourable 91% of
employees expressed pride to work for your Company. This is in recognition of your
Company's Performance Management and Reward processes, which are geared
towards building a performance and execution focused culture.
Your Company has been investing in progressive employee relations practices to
ensure that it invests in capability at the grass root level. 'Sparkle' is a centrally hosted
intranet based tool that supports skill mapping, skill assessment, performance
assessment, gap analysis and enables training plan identification which is customised
to each workman basis priority areas. Sparkle has been a pioneering tool in the area of
workmen capability development that promotes higher transparency and focused
training intervention linked to individual and business needs. The tool has delivered
28

results for over two years now and your Company has successfully completed
appraisals, thereby identifying top performers and completing skill gap analysis of
over 10,000 workmen online. 'Sparkle' has been recognised as a best practice and
adopted for a global roll-out. Business Linked Engagement and TPM Edge
programmes continued with full focus and rigour during the year and delivered
significant improvement in factory operations.
Information as per Section 217 (2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975, forms part of this Report.
However, as per the provisions of Section 219(1)(b)(iv) of the Act, the Report and
Accounts are being sent excluding the statement containing the particulars to be
provided under Section 217(2A) of the Act. Any Member interested in obtaining such
particulars may inspect the same at the Registered Office of the Company or write to
the Company Secretary for a copy thereof.
9. INFORMATION TECHNOLOGY (IT)
Your Company continues to invest in IT, leveraging it as a source of competitive
advantage. The enterprise wide SAP platform, the backbone of IT, encompasses all
core business processes in your Company and also provides a comprehensive data
warehouse with analytics capability that help in better and speedier decisions. SAP is
used to collaborate with the suppliers and customers. Supply Chain optimisation,
enabled by the IT capability, remains a source of significant value. Your Company
continuously invests in upgrading the SAP platform to leverage the latest
functionality and technology enhancements to deliver business efficiencies.
Your Company has institutionalised an extensive IT capability for Customer
Development function to support front-end execution. All distributors run a standard
distributor management system. The salesmen of the distributors use handheld
devices for accepting retail orders, which enable faster tracking and real time sales
information. Your Company has used analytics and the existing IT infrastructure to
build a capability for an intelligent sales call. This enables your Company to
29

customise sales call for each outlet on a scientific basis, thus helping to significantly
improve the effectiveness and efficiency of the sales process.
Your Company is leveraging GIS (Geographic Information System) based mapping
technology to aid planning for coverage expansion drives in urban and rural markets.
The capability allows field personnel to identify pockets for coverage and also
evaluate their attractiveness to help derive coverage plans.
Your Company is further enhancing IT capabilities built for rural expansion to equip
Shakti ammas with low cost mobile technology to help them work in a more
controlled and efficient manner. This technology now allows your Company to
standardise selling processes across the Shakti network and also track outlet sales
information which can be leveraged through analytics to further aid the selling
process.
Your Company continues to invest in IT infrastructure to support business
applications and has made use of India's expanded telecom footprint to provide high
bandwidth terrestrial links to all operating units. Your Company also uses software as
a service to provide agile and cost effective IT capabilities in select areas.
10. FINANCE AND ACCOUNTS
Your Company continued to focus on cash generation. The focus on managing
optimal levels of inventory, sound business performance, operating efficiencies and
cost savings across the organisation helped generate healthy cash flows. Your
Company managed investments prudently by deploying cash surplus in a balanced
portfolio defined to offer primacy to safety and liquidity of the investments. Capital
Expenditure during the year was at Rs. 409.34 crores (Rs. 310.01 crores in the
previous year).
The Finance function of your Company has initiated a multi-fold transformation
programme, aligned to the ambition to be the Best Finance Team in the Industry.
During the year, multiple finance processes across accounting and reporting, controls
and information management were reviewed and work streams were defined to
30

implement global best practices. Significant broad-based progress has been made on
this agenda during the year. Project 'Parivartan' delivered a further step up in the
efficiency of the Purchase to Pay process along with a corresponding improvement in
vendor satisfaction. This is now being driven to the next level of simplifying and
centralising end-to-end invoice processing. Project 'My Business Information' took an
ambitious goal of revamping your Company's information management function.
Significant steps are underway towards further exploring this space to get increased
information insights to drive growth, margins and cash.
In the initial phase of the project 'Effective Financial Controls and Reporting' (EFCR),
the finance control environment has been streamlined and strengthened with 50% of
key controls being automated by further leveraging SAP. Similarly, significant
process and technology interventions were taken up to achieve over 25% reduction in
time consumed on annual closing processes. The EFCR Project aims to simplify,
standardise and automate processes whilst driving value beyond transaction
processing. Your Company also focused on simplifying banking processes by driving
a reduction in the number of bank accounts operated across the Company. This has
helped to streamline banking operations, strengthen controls and optimise cash
utilisation. All these initiatives will lead to a transformation of the finance function to
world class standards, thereby ensuring operational excellence.
Your Company has not accepted any fixed deposits during the year and there was no
outstanding towards unclaimed deposit payable to depositors as on 31st March, 2013.
In terms of the provisions of Investor Education and Protection Fund (Awareness and
Protection of Investors) Rules, 2001, Rs. 3.13 crores of unpaid / unclaimed dividends
and interest / redemption of debentures were transferred during the year to the
Investor Education and Protection Fund.
10.AUDITORS
M/s. Lovelock & Lewes, Statutory Auditors of the Company retire and offer
themselves for re-appointment as the Statutory Auditors of the Company, pursuant to
Section 224 of the Companies Act, 1956.
31

11. APPRECIATIONS AND ACKNOWLEDGEMENTS
Your Directors place on record their deep appreciation to employees at all levels for
their hard work, dedication and commitment. The enthusiasm and unstinting efforts of
the employees have enabled the Company to remain as industry leaders.
Your Directors would also like to acknowledge the excellent contribution by Unilever
to your Company in providing the latest innovations, technological improvements and
marketing inputs across almost all categories, in which it operates. This has enabled
the Company to provide higher levels of consumer delight through continuous
improvement in existing products and introduction of new products.
The Board places on record its appreciation for the support and co-operation your
Company has been receiving from its suppliers, redistribution stockists, retailers,
business partners and others associated with the Company as its trading partners.
Your Company looks upon them as partners in its progress and has shared with them
the rewards of growth. It will be the Company's endeavour to build and nurture strong
links with the trade based on mutuality of benefits, respect for and co-operation with
each other, consistent with consumer interests.
The Directors also take this opportunity to thank all Investors, Clients, Vendors,
Banks, Government and Regulatory Authorities and Stock Exchanges, for their
continued support.
On behalf of the Board
Harish Manwani
Chairman
Mumbai, 29th April, 2013


32

ANNUAL REPORT
Profit And Loss A/C
(Rs.in cr)

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09


12 mths 12 mths 12 mths 12 mths 15 mths


Income

Sales Turnover 25,810.21 22,116.37 19,735.51 18,462.34 21,927.23

Excise Duty 0.00 0.00 0.00 693.22 1,422.95

Net Sales 25,810.21 22,116.37 19,735.51 17,769.12 20,504.28

Other Income 1,215.30 397.18 479.71 199.73 276.54

Stock Adjustments 31.13 -128.73 290.53 19.47 434.33

Total Income 27,056.64 22,384.82 20,505.75 17,988.32 21,215.15

Expenditure

Raw Materials 13,633.79 11,701.45 10,515.56 9,003.97 11,380.05

Power & Fuel Cost 319.91 285.21 274.74 244.34 301.37

Employee Cost 1,318.34 1,107.28 961.26 936.30 1,152.12

Other Manufacturing Expenses 0.00 0.00 0.00 412.19 297.34

Selling and Admin Expenses 0.00 0.00 0.00 3,737.52 3,857.48

Miscellaneous Expenses 6,565.55 5,602.36 5,596.09 656.57 985.31

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 21,837.59 18,696.30 17,347.65 14,990.89 17,973.67


Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

33



12 mths 12 mths 12 mths 12 mths 15 mths


Operating Profit 4,003.75 3,291.34 2,678.39 2,797.70 2,964.94

PBDIT 5,219.05 3,688.52 3,158.10 2,997.43 3,241.48

Interest 25.15 1.24 0.24 6.98 25.32

PBDT 5,193.90 3,687.28 3,157.86 2,990.45 3,216.16

Depreciation 236.02 218.25 220.83 184.03 195.30

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 4,957.88 3,469.03 2,937.03 2,806.42 3,020.86

Extra-ordinary items 0.00 0.00 0.00 43.97 48.53

PBT (Post Extra-ord Items) 4,957.88 3,469.03 2,937.03 2,850.39 3,069.39

Tax 1,161.21 777.63 631.04 648.36 572.94

Reported Net Profit 3,796.67 2,691.40 2,305.99 2,202.03 2,500.71

Total Value Addition 8,203.80 6,994.85 6,832.09 5,986.92 6,593.62

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 3,999.99 1,620.94 1,410.60 1,417.94 1,634.51

Corporate Dividend Tax 655.69 262.96 231.36 238.03 277.79

Per share data (annualised)

Shares in issue (lakhs) 21,624.72 21,615.12 21,594.72 21,816.87 21,798.76

Earning Per Share (Rs) 17.56 12.45 10.68 10.09 11.47

Equity Dividend (%) 1,850.00 750.00 650.00 650.00 750.00

Book Value (Rs) 12.37 16.25 12.32 11.84 9.45


34

BALANCE SHEET
(Rs crore)

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Sources of funds
Owner's fund
Equity share capital 216.25 216.15 215.95 218.17 217.99
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 2,457.77 3,296.78 2,443.57 2,364.68 1,842.85
Loan funds
Secured loans - - - - 144.65
Unsecured loans - - - - 277.30
Total 2,674.02 3,512.93 2,659.52 2,582.85 2,482.79
Uses of funds
Fixed assets
Gross block 3,868.95 3,564.35 3,531.50 3,581.96 2,881.73
Less : revaluation reserve - - - 0.67 0.67
Less : accumulated depreciation 1,576.05 1,416.88 1,362.40 1,419.85 1,274.95
Net block 2,292.90 2,147.47 2,169.10 2,161.44 1,606.11
Capital work-in-progress 215.64 215.45 288.76 273.96 472.07
Investments 2,330.66 2,438.21 1,260.67 1,264.08 332.62
Net current assets
Current assets, loans & advances 6,673.27 6,157.14 6,444.13 5,818.89 6,040.04
Less : current liabilities & provisions 8,838.45 7,445.34 7,503.14 6,935.52 5,968.06
Total net current assets -2,165.18 -1,288.20 -1,059.01 -1,116.63 71.98
Miscellaneous expenses not written - - - - -
Total 2,674.02 3,512.93 2,659.52 2,582.85 2,482.79
Notes:
35


Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Book value of unquoted investments 515.87 153.38 108.91 466.46 317.30
Market value of quoted investments 1,982.78 2,469.28 1,279.49 953.58 71.09
Contingent liabilities 894.21 1,009.23 922.92 468.49 417.26
Number of equity sharesoutstanding (Lacs) 21624.72 21615.12 21594.72 21816.87 21798.76



Notes to Accounts
Year End : Mar '13
1) COMPANY INFORMATION
Hindustan Unilever Limited (the ''company'') is a public limited company domiciled in India and is
listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company
is a market leader in the FMCG business comprising Home and Personal Care (HPC) and Foods and
Refreshments. The company has manufacturing facilities across the country and Research and
Development centres in Mumbai and Bangalore and sells primarily in India through independent
distributors and modern trade.

2) DUES TO MICRO AND SMALL ENTERPRISES
There are no Micro and Small Enterprises, to whom the Company owes dues, which are
outstanding for more than 45 days as at March 31, 2013. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available with
the Company.

3) EMPLOYEE STOCK OPTION PLAN
The members of the Company had approved ''2001 HLL Stock Option Plan''at the Annual General
Meeting held on 22nd June, 2001. The plan envisaged grant of share options to eligible employees
at market price as defined in SEBI (Employee Stock Option Scheme And Employee Stock Purchase
Scheme) Guidelines, 1999.This plan was amended and revised vide ''2006 HLL Performance Share
Scheme'' at the Annual General Meeting held on 29th May, 2006. This scheme provided for
conditional grant of Performance Shares at nominal value to eligible management employees as
determined by the Compensation Committee of the Board of Directors from time to time, at the end
36

of 3-year performance period. The performance measures under this scheme include group
underlying sales growth and free cash flow. The scheme also provided for ''Par'' Awards for the
managers at different work levels.

The 2006 scheme was further amended and revised vide ''2012 HUL Performance Share Scheme'' at
the Annual General Meeting held on 23
rd
July, 2012. This scheme provided for conditional grant of
Performance Shares at nominal value to eligible management employees as determined by the
Nomination and Remuneration Committee of the Board of Directors from time to time, at the end of
3-year performance period. The performance measures under this scheme include group underlying
sales growth, core operating margin improvement and operating cash flow.

The number of shares allocated for allotment under the 2006 and 2012 Performance Share Schemes
is 2,00,00,000 (two crores) equity shares of Re. 1/- each. The schemes are monitored and supervised
by the Nomination and Remuneration Committee of the Board of Directors in compliance with the
provisions of SEBI (Employee Stock Option Scheme And Employee Stock Purchase Scheme)
Guidelines, 1999 and amendments thereof from time to time.

4) PREVIOUS YEAR FIGURES
Previous year''s figures have been regrouped/ restated wherever necessary to conform with this
year''s classification.

5) RELATED PARTY DISCLOSURES
A. Enterprises where control exists
(i) Holding Company : Unilever PLC
(ii) Subsidiaries
(Extent of holding): Brooke Bond Real Estates Private Limited (100%) Daverashola Estates Private
Limited (100%) Hindlever Trust Limited (100%) Jamnagar Properties Private Limited (100%)
Lakme Lever Private Limited(100%)
Levers Associated Trust Limited (100%)
Levindra Trust Limited (100%)
Pond''s Exports Limited (90%)
Unilever India Exports Limited (100%)
37

Unilever Nepal Limited (80%)
Hindustan Unilever Foundation (76%) (with effect from December, 2012)
(iii) Trust : Hindustan Unilever Limited Securitisation of Retirement
Benefit Trust (100% control) (from October, 2012)
B. Other Related Parties with whom the company had transactions during
the year
(i) Fellow Subsidiaries : Besan-Besin Sanayi ve Ticaret A.S.Brooke Bond Assam Estates Limited
Brooke Bond Group Limited Brooke Bond South India Estates Ltd.Conopco, Inc.
6. Business Segments
The Company has considered business segments as the primary segments for disclosure. The
products included in each of the reported domestic business segments are as follows:
a) Soaps and Detergents include soaps, detergent bars, detergent
powders, detergent liquids, scourers, etc.
b) Personal Products include products in the categories of Oral Care,Skin Care (excluding soaps),
Hair Care, Deodorants, Talcum Powder,Colour Cosmetics, Ayush services, etc.
c) Beverages include tea and coffee.
d) Packaged foods include Branded Staples (Atta, Salt, Bread, etc.),Culinary Products (tomato
based products, fruit based products, soups,etc.) and Frozen deserts
e) Others include Exports, Chemicals, Water business, infant Care Products etc.Segment Revenue
relating to each of the above domestic business segments includes Income from Services provided to
group companies,where applicable
The above business segments have been identified considering :a) the nature of products and
services
b) the differing risks and returns
c) the internal organisation and management structure, and
d) the internal financial reporting systems
7. Geographical Segments
The geographical segments considered for disclosure are as follows :
a) Sales within India includes sales to customers located within India.
38

b) Sales outside India includes sales to customers located outside India.
c) The carrying amount of segment assets in India and Outside India is based on geographical
location of assets.
8. Previous year''s figures have been regrouped wherever necessary to conform with this year''s
classification.


















39

CONCLUSION
Hindustan Unilever Limited considers quality as one of the principal strategic
objectives to guarantee its growth and leadership in the markets.
The fundamental principle determining the organization structure is to infuse speed
and flexibility in decision making and implementation the companys nationwide
operation.
FMCG companies such as HUL are still to be adversely hit by the economic
slowdown, which is beginning to make its impact felt across other sectors. They
manufacture items of everyday consumption and are usually the last to be hit by a
slowdown. FMCG growth has been supported by strong demand in rural markets,
which has been growing at between 15% and 18%, after three years of good
agricultural output. HUL derives more than 50% of its sales from rural markets. With
the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will
boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain. FMCG
sector is also likely to benefit from growing demand in the market. Because of the low
per capita consumption for almost all the products in the country, FMCG companies
have immense possibilities for growth. And if the companies are able to change the
mindset of the consumers, i.e. if they are able to take the consumers to branded
products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2009,
boosting purchasing power in the countryside. However, the demand in urban areas
would be the key growth driver over the long term. Also, increase in the urban
population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of
consumption.