Professional Documents
Culture Documents
on
Submitted to
ASIAN BUSINESS SCHOOL, NOIDA
In partial fulfillment for the award of full time
Post Graduate Diploma in Management (PGDM)
Approved by AICTE, Ministry of HRD, Govt. of India
Session 2019-20
1
ASIAN BUSINESS
SCHOOL
CAPSTONE PROJECT
(PGDM 2019-2021)
2
HINDUSTAN UNILEVER LIMITED
3
INDEX
S.NO. CONTENTS PG.NO.
1. CHAPTER 1[INTRODUCTION , 6-11
IMPORTANCE , NEED]
2. CHAPTER 2 [BACKGROUND ,VISION ,
12-23
MISSION , CULTURE , STRUCTURE]
3. CHAPTER 3 [FINANCIAL ANALYSIS OF 24-31
BALANCE SHEET]
4. CORRELATION BETWEEN SHARE PRICE 32-40
OF COMPANY AND SENSEX TAKING
DAILY DATA FOR PAST 6 MONTHS.
5. PESTLE AND COMPETITOR ANALYSIS OF 41-50
THE COMPANY AND PREPARING ETOP
6. CSR POLICY AND INITIATIVES OF THE 51-62
COMPANY.
7. CONCLUSION. 63-64
8. REFRENCE. 65
4
ADDRESS OF TABLES AND FIGURES
S.NO CONTENT PAGE NO.
1. TABLE 1: INCOME STATEMENT 26
2. TABLE 2: BALANCE SHEET 27
3. TABLE 3: CASH FLOW STATEMENT 28
4. TABLE 4: SHARE ANALSIS 29
5. TABLE 5: SHARE ANALYSIS OF RATIO 31
6. TABLE 6: DAILY SHARE PRICE 39
5
CHAPTER 1
6
INTRODUCTION
HUL was consolidated on seventeenth October 1933 under the
name the Lever Brothers (India) pvt. Ltd. (LBIL). sIt had
producing units in B0mbay and Kolkata ,related organization
viz.Hindustan Vanaspati Mfg. co. pvt. Ltd. (HVM), was prior
joined on November 27th, 1931 that was at vanaspati industrial
facility in Bombay. Both the LBIL and HVM were completely
claimed backup organizations of Unilever Ltd. L0nd0n, U.K.
HVM later procured three more vanaspati industrial facilities at
Shamnagar (West Bengal), Tirchirapalli (Tamil Nadu) and
Ghaziabad (UP). On eleventh May 1935 United Traders Pvt. Ltd.
(UTL) was joined as another completely possessed backups of
LBIL.In 1994 the administration of LBIL and HVM was
consolidated. In N0vember 1956, HVM and tw0organizations
viz. William Gossage and children (India) Pvt. Ltd. Also, Joseph
Cross field and children Pvt. Ltd. which were entirely claimed
auxiliaries of HUL. Were combined with LBIL and the name was
transferred t0 shape the celebrated HINDUSTAN UNILEVER
LIMITED.
7
1925-Lever siblings oversaw N0rth West Soap company.
8
9
IMPORTANCE
HUL is a FMCG organization. It incorporates the items that are
sold rapidly and at generally minimal effort. Instances of FMCG
items are soda pops, cigarettes, ketchups, moment noodles and
different consumables. They additionally incorporate excellence
items. HUL is doing an exemplary business of low edge and high
volume. It is 0ne of the quickest devel0ping0rganization in India.
10
FMCG items and help in building brand mindfulness. This is the
reason it is critical to learn about the HUL.
NEED
11
CHAPTER 2
12
COMPANY’S BACKGROUND
In 1888, guests to the Kolkata harbor saw cases loaded with
Sunlight cleanser bars, highligted with the w0rds "Made in
England by Lever Br0thers". With it, began a period of advertising
marked Fast M0vingC0nsumingG00ds (FMCG).
13
HUL like consistently has vivaciously reacted to the improvement
of monetary development. The development procedure has been
joined by sensible enhancement, consistently in accordance with
Indian suppositions, goals and requirements.
14
Beverages front. In 1992, the past Brooke Bond took over K0thari
General Foods, with huge interests in Instant mix c0ffee . In 1993,
it gained the Kissan buss. From the UB Group just as the Dollops
Ice-cream business from Cadbury India.
15
organization's wheat business. In 2002, HUL gained government's
outstanding stake in Modern Foods.
16
In 2010, the Unilever Sustainable Living Plan was formally
introduced in India at New Delhi.
17
Another best in class producing office was appointed in
D00mD00ma Industrial Estate, Assam on eleventh March 2017.
18
VISION OF HUL
To gain the adoration and regard of India, by having a genuine effect
to consistently India the four mainstays of our vision set out the long
haul bearing for the Company.
Sustainability targets
The Unilever Sustainable Living Plan, launched in 2010, laid the
blueprint for achieving this strategy. We continue to work towards
the ambitious targets we have set ourselves for halving our
environmental impact, improving the health and wellbeing of 1
billion people, and enhancing the livelihoods of millions.
19
MISSION
Our mission is to add Vitality to life. HUL meet each day requirements
for sustenance, cleanliness and individual consideration with brands
that assist individuals with feeling better, look great and get
progressively out of life.
Positive Impact
We aim to make a positive impact in many ways : through our
brands , commercial operations and relationships , voluntary
contributions , and through various other ways in which we
engage with society.
20
ORGANIZATION’S STRUCTURE
21
Hul bargains in wide assortment of items with the goal that
necessary specific group guilty pleasure in like manner.
The item administrator are liable for larger part of business related
to that specific item and will undoubtedly tune in to the general
divisional heads dispensed over them by the organization. Each land
zone comprises of different concerned directors .
Hul working all around have long business auxiliary chains however
with long chains the position and power is likewise being appointed
as needs be to stay away from any deferrals or miscommunication
inside the different business features or hierarchical levels.
ORGANIZATION’S CULTURE
Unilever has an organREizational culture of execution, which
underlines the centrality of worker yield. This corporate culture
additionally indicates the significance of criteria or measures used to
decide required yield and sufficiency of output. Hindustan Unilever's
hierarchical culture of execution has the different attributes:
22
⦁ Focus on quality as ideal minding nature of yield in all territories
23
CHAPTER 3
24
HUL 2018-19 ANNUAL FINANCIAL REPORT ANALYSIS
HUL has reported its outcomes for the year finished March 2019.
Give us a chance to take a gander at the point by point execution
audit of the organization during FY18-19.
• Net overall revenues during the year developed from 14.5% in FY18
to 15.2% in FY19. HUL Income Statement 2018-19
25
12 Mar- 12 Mar- %
No. of Mths Year Ending
18* 19* Change
Rs
Net Sales 355,450 393,100 10.6%
m
Rs
Other income 3,840 5,500 43.2%
m
Rs
Total Revenues 359,290 398,600 10.9%
m
Rs
Gross profit 74,990 88,800 18.4%
m
Rs
Depreciation 5,200 5,650 8.7%
m
Rs
Interest 260 330 26.9%
m
Rs
Profit before tax 73,370 88,320 20.4%
m
Rs
Tax 20,790 25,440 22.4%
m
Rs
Profit after tax 52,250 60,600 16.0%
m
Gross profit
% 21.1 22.6
margin
Effective tax rate % 28.3 28.8
Net profit margin % 14.5 15.2
Table 1: income statement of HUL
26
HUL Balance Sheet Analysis
• Overall, the all out resources and liabilities for FY19 remained at
Rs 186 billion as against Rs 179 billion during FY18, in this manner
seeing a development of 4%.HUL Balance Sheet as on March 2019
12 Mar- 12 Mar- %
No. of Mths Year Ending
18* 19* Change
Rs
Networth 72,810 78,670 8.0
m
Current Rs
88,870 86,670 -2.5
Liabilities m
Rs
Long-term Debt 0 0 0.0
m
Rs
Total Liabilities 178,620 186,290 4.3
m
Rs
Current assets 116,600 119,140 2.2
m
Rs
Fixed Assets 49,890 51,210 2.6
m
Rs
Total Assets 178,620 186,290 4.3
m
Table 2: balance sheet of HUL
27
HUL Cash Flow Statement Analysis
No. of
12 12
months %
Particulars
Year Mar- Mar- Change
Ending 18 19
Cash Flow from
Rs m 60,590 58,000 -4.3%
Operating Activities
Cash Flow from -
Rs m -4,380 -
Investing Activities 10,630
Cash Flow from - -
Rs m -
Financing Activities 49,750 53,900
Net Cash Flow Rs m 210 -280 -
Table 3: cash flow of HUL
28
Current Valuations for HUL
29
Ratio Analysis for HUL
• Solvency Ratios
30
Return on Assets (ROA): The ROA of the organization improved and
remained at 32.7% during FY19, from 29.4% during FY18. The ROA
estimates the productivity of the organization which utilizes its
advantages for create profit.
Over the last one year, HUL Share Price has moved up from Rs
1,601.8 to Rs 1,834.5, registering a gain of Rs 232.7 or around 14.5%.
Meanwhile, there is trading at Rs 11,537.9 (down 0.2%). Over the last
one year it has moved up from 11,243.8 to 11,537.9, a gain of 294
points (up 2.6%).
31
CHAPTER 4
32
SHARE PRICE AND SENSEX OF HUL
Date Close Close of sensex
04-01-2019 1690 38871.87109
04-02-2019 1687.150024 39056.64844
04-03-2019 1670.800049 38877.12109
04-04-2019 1666.550049 38684.71875
04-05-2019 1659.099976 38862.23047
04-08-2019 1664.900024 38700.53125
04-09-2019 1680.5 38939.21875
04-10-2019 1694.150024 38585.35156
04-11-2019 1710.400024 38607.01172
04-12-2019 1721.650024 38767.10938
34
5/29/2019 1780.849976 39502.05078
35
6/26/2019 1761 39592.07813
36
7/24/2019 1728.650024 37847.64844
37
8/22/2019 1872.099976 36472.92969
38
9/20/2019 1969.75 38014.62109
39
Column1
Mean 1782.24877
Standard
Error 7.380011953
Median 1772.224976
Mode #N/A
Standard
Deviation 81.51489633
Sample
Variance 6644.678324
Kurtosis 2.29253488
Skewness 1.269251315
Range 392.400024
Minimum 1659.099976
Maximum 2051.5
Sum 217434.35
Count 122
CORRELATION
Column 1
Column 1 1
Column 2 -0.022063575
40
CHAPTER 5
41
PESTEL ANALYSIS
Unilever is a transnational customer organization with items
accessible in more than 190 nations with M0re than 4OO brands,
including Dove, Magnum, Sunsilk, Rexona and numerous others.
In 2012, it was considered the world's biggest shopper products
enterprise. As a firm with solid worldwide ties, it implies they
should submit to numerous laws. They have customers
everywhere throughout the world and must create items to meet
their requests — regardless of whether said requests are winding
down.
42
Monetary factors: Competition is prepared
43
Innovative factors: Automation is critical
Each brand and area of stores are liable to pursue copyright, item
security, laws in regards to wellbeing and wellbeing of
representatives, and duties — worldwide and territorial.
44
They need to be viewed as an earth cordial association and have
worked for almost the most recent decade to do as such.
In end… CONCLUSION
45
COMPETITORS ANALYSIS
ITC is HUL's top rival. ITC was established in 1910 in Kolkata, West
Bengal. ITC contends in the Household Products field. ITC produces
$1.2B more income HUL.
WEEKNESS
Opportunity
1. HUL is fit for tap and catching provincial markets and increment
entrance in urban regions
2.Mergers and acquisitions to reinforce the brand
3.Increasing buying intensity of individuals in this way expanding
interest
THREATS
48
ETOP OF HUL
Social
Clients incline toward motorbike, which are in vogue, simple to ride
and tough.
Political
No critical factor.
Financial
Developing luxuriousness among urban purchasers; Exports potential
high.
Administrative
Bike industry a push region for sends out.
Market
Industry is developing at a quick pace of 10 to 12 percent for each
year. For motorbike development rate is 40 percent, to a great
extent Unsaturated interest.
49
Provider
For the most part ancillaries and related organizations supply parts
and segments, REP licenses for imported crude materials accessible.
Innovative Innovative up degree of industry in progress.
50
Chapter 6
51
Corporate Social Responsibility
Policy
HUL is resolved to work and develop its business in a socially capable
manner. Their vision is to develop their business while diminishing
the natural effect of their tasks and expanding positive social effect.
As per Section 135(5) of the Companies Act, 2013 (the Act), HUL is
resolved to spend at any rate 2% of its normal net benefits made
during the three quickly going before budgetary years in a portion of
the recognized exercises that are recorded in Schedule VII (as
revised) to the Act. This will incorporate the spends through
exercises attempted by Hindustan Unilever Foundation (HUF), our
52
not revenue driven auxiliary Company, planned for building abilities
to save water and to encourage network improvement activities.
GOVERNANCE MECHANISM
HUL initiatives
HUL is resolved to work and develop its business in a socially
dependable manner. Their vision is to develop their business while
decreasing the natural effect of their activities and expanding
positive social effect. Their point is to accomplish mindful
development andwill move to breath life into this by urging
individuals to take little regular activities that will indicate have a
major effect. HUL have grasped the Unilever Sustainable Living Plan
(USLP), which is it's outline for feasible development.
53
⦁ Plan sets out three major objectives:
⦁ Enhancing jobs
⦁ Improving Nutrition.
⦁ Greenhouse gases.
⦁ Sustainable sourcing.
⦁ Enhancing occupations.
⦁ Stakeholder commitment.
54
Water Conservation Project
55
through more than 2,000 delegates working at the Company's plants,
we associated with 6,000,000 people through this program. Till date
13.5 million people have been come to through the SwachhataDoot
program. Association furthermore adds to the Chief Minister of
Maharashtra's Village Social Transformation Mission (VSTM). In such
way, it has moreover made Swachhata Curriculum that shows
understudies the essentialness of accepting three clean penchants -
washing hands with chemical, safe drinking water rehearses and
using clean toilets over a 21-day time length. The Community
Hygiene Center – Suvidha is another noteworthy endeavor by
Company that adds to SASB. 'Suvidha' is a first-of-its-sort urban
water, neatness and sanitation open scene in one of the greatest
ghettos in Mumbai. The open setting gives drinking water, sanitation,
handwashing, shower workplaces and dress organizations at a
moderate cost. Your Company has gone into relationship with HSBC
to set-up four more Suvidhacenters. In December 2018, your
Company pushed the fight, 'Start to some degree incredible' to urge
clients to take little exercises in the locales of water security, plastic
waste organization, and preparing extraordinary tidiness penchants.
The campaign *pending self-governing affirmation Annual Report
2018-19 Hindustan Unilever Limited Overview Reports Financial
Statements 41 has associated with 1.1 million people by end of
March 2019.
56
program has helped Shakti Entrepreneurs increment selling
aptitudes, become brave, improve their certainty, get the hang of
orchestrating and social capacities. Specifically, our interventions
have helped in building and developing imaginative frame of mind
among Shakti Entrepreneurs.
Around 0.9 million adolescents more youthful than five pass on due
to diarrhoeal and respiratory contaminations in India1 .
Handwashing with chemical has been refered to as one of the most
functional responses for improve prosperity and neatness and
diminish infant kid mortality. A review of a couple of studies shows
that the essential exhibition of handwashing with chemical
diminishes the recurrence of diarrhoeal sicknesses by a typical of 30
for each cent2 . Association's Lifebuoy handwashing conduct change
movement helps in propelling the upsides of handwashing with
chemical at key events during the day and asking people to grasp and
proceed with extraordinary handwashing conduct. From 2010 till
date, Company has associated with in excess of 68 million people in
India through the handwashing conduct change exercises.
Association has been driving handwashing conduct change programs
in association with Global Alliance for Vaccine Initiative (GAVI) Plan,
World Association of Girl Guides and Girl Scouts (WAGGGS), Naman
SevaSamiti, NGOs in Uttar Pradesh, Jharkhand, Orissa, Madhya
Pradesh and Maharashtra. Through the activities, the demonstration
of using chemical at fundamental occasions reliably is spread
transversely over systems, along these lines protecting people from
maladies.
57
⦁ Plastic Waste Management
⦁ Project Prabhat
59
Section B Improving Health and Well-being:
Average Net Profit of the Company for last 3 financial years: 6,20,971
Prescribed CSR Expenditure 12,419
Details of CSR spends during the financial year 2018-19:
a. Total amount to be spent for the financial year 12,419 (2% of Average
Net Profit for the last 3 financial years)
b. Total amount spent during the financial year 12,645
c. Amount unspent, if any Nil Hindustan Unilever Limited Annual Report
2018-19 44 Report of Board of Directors
d. Manner in which the amount was spent during the financial year is
detailed below:
61
Amount spent on the project/programme Direct expenditure Overheads
1. Project Shakti (ii) PAN India 4,335 4,335 0 4,335
2. SwachhAadat (i) PAN India 4,781 4,781 0 4,781
3. Water Conservation Project (iv) PAN India 895 570 325 825
4. Asha Daan (iii) Mumbai 1,475 1,475 0 1,475
5. Project Prabhat (x) PAN India 608 600 8 608
6. Sanjeevani (i) Assam 68 68 0 68
7. Ankur (iii) Assam 33 33 0 33
8 CM Relief Fund (iii) Kerala 100 100 0 100.
62
CONCLUSION
Hindustan unilever ltd. have risen to be one of the main firms or organization
in the economy( in FMCG division).
throughout the years since its joining in as switch siblings india ltd in 1933 it
has become a significant job player in the market by serving the necessities
and requests of different clients and customers of the market.
the development of HUL is altogether recognizable as the offer cost and the
budgetary development as far as total assets and yearly benefits have
expanded definitely.
in 2018 the net income earned by HUL was 38,224 crores(in terms of rupees),
though the EBITDA (procuring before assessment and profit commitments)
was 8,637 crores.
the gaining per portion of the investors of HUL was 27.89 (rupee) per share
which was more than the earlier year EPS.
this shows the money related hold and the development of the HUL in the
economy.
63
HUL isn't just identified with gaining benefits but on the other hand is seeing as
driving organization as far as CSR activities and approaches. different
distinctive help activities and manageable approaches and activities were
planned for the upliftment of the general public and serving for investors as
well as for the partners particularly society by having a dream of reasonable
activities and practices.
HUL can't bear to get smug as different enormous contenders like P&G, ITC
which are alluded to as other huge FMCG area inclination of clients.
so HUL throughout the years have confronted serious and expanding rivalry
was as yet ready to serve for the necessities of the clients and make due in
harsh days by great administration arrangements, better quality item,
adaptable and assigning hierarchical structures.
64
REFERENCE
• Wikipedia
• Google
• Hul.co.in
• Economictimes.indiatimes.com/hul
65