RISKS FACED BY HINDUSTAN UNILEVER LIMITED

 The risks that HUL currently facing is increasing input costs and operations costs due to cases of
rise in raw material costs, increasing imitative and spurious products, and tough competition
from other FMCG players.

 There is an abrupt slowdown in the global economy and the problem that started in the
financial sector extended to other sectors affecting not only the US but the entire global
economy. Most of India’s domestic sectors are also impacted including country’s exports
performance and FMCG sectors.

 There is an unparalleled volatility in raw materials price contributed by increasing crude oil
prices. Volatility in raw materials price associated with unpredictability in the commodities
movement needs a careful management in the FMCG companies. Although some companies
managed to do well in categories like detergents met decreasing sales.

 Hindustan Unilever Limited has a large brand portfolio consisting numerous brands. It will be
tough to manage such extended brand portfolio by any company, but it is the nature of FMCG
industry and company. The current global structure with swinging raw material prices and
intense competition faced by the company needs a cautious management.

Major issues or problems:

 The problem that the company is facing for long time is the increasing similar products. The
popularity of the Hindustan Unilever Limited’s brand and the reach it possesses drives the local
manufactures to copy the products leading some to produce even the fake products. The fake
products are visible highly in rural markets. This significantly affects the brand equity of the HUL.

 The company is facing an increase in input costs due to increase in price of the raw materials.
There is a potential impact on the company due to increasing inflation, freight costs and raw
materials.

 HUL is facing tough competition than years before from ITC, Procter & Gamble, Colgate-
Palmolive, Nestle and Godrej. ITC Limited is competing toughly with HUL through various brands
that are market leaders. The competition is further boosted by several new entrants. This
increasing competition already witnessed by HUL’s losing market share in certain segments and
an obvious increase in operation costs.
MAJOR PRODUCTS:

Food

 Annapurna salt and Atta (previously known as Kissan Annapurna)

 Bru coffee
 Brooke Bond (3 Roses, Taj Mahal and Taaza, Red Label) tea
 Kissan squashes, ketchups, juices and jams
 Lipton ice tea
 Knorr soups & meal makers and soupy noodles
 Kwality Wall's frozen dessert
 Modern Bread, ready to eat chapattis and other bakery items (now sold to Everstone Capital)
 Magnum (ice cream)

Homecare brands

 Active Wheel detergent

 Cif Cream Cleaner
 Comfort fabric softeners
 Domex disinfectant/toilet cleaner
 Rin detergents and bleach
 Sunlight detergent and colour care
 Surf Excel detergent and gentle wash
 Vim dishwash
 Magic – Water Saver

Personal care brands

 Aviance Beauty Solutions

 Axe deodorant and aftershaving lotion and soap
 LEVER Ayush Therapy ayurvedic health care and personal care products
 International breeze
 Brylcreem hair cream and hair gel
 Clear anti-dandruff hair products
 Clinic Plus shampoo and oil
 Close Up toothpaste
 Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
 Denim shaving products
 Fair and Lovely, skin lightening cream
 Hamam
 Indulekha ayurvedic hair oil
 Lakmé beauty products and salons
 Lifebuoy soaps and handwash range
 Liril 2000 soap
 Lux soap, body wash and deodorant
 Pears soap, body wash
 Pepsodent toothpaste
 Pond's talcs and creams
 Rexona
 Sunsilk shampoo
 Sure anti-perspirant
 Vaseline petroleum jelly, skin care lotions
 TRESemmé
 TIGI
 Vaseline