IPS ACADEMY IBMR

INDORE

Presented by- Amreen Chippa Submitted to- Nidhi Jhawar Mam

Abhishek Kamthe
Faizan Hussain
Jayant Karade
Chanchlesh shrivas
INTRODUCTION OF HUL AND ITC
 Hindustan Unilever Ltd. (HUL) is an Indian customer goods
Compa
(FMCG) sector company with all type of
household products available with it. It
has home and personal care product, and
also food and water purifier available with
it. According to Brand Equity, HUL has
largest number of brand in most trusted
brand list.
 ITC LIMITED
 Its diversified business includes five
segments: Fast-Moving Consumer
Goods (comprising Foods, Personal Care,
Cigarettes and Cigars, Apparel, Education and
Stationery Products, Incense Sticks and Safety
Matches), Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business and
Information Technology. Though, cigarette
business contributes more than 80% of the profits
of the company, 80% of the capital is invested in
the non-tobacco businesses.
COMPARATIVE ANALYSIS OF BOTH THE
COMPANIES UNDER SOME HEADS:
HUL
 Hindustan Unilever (HUL) is
the largest pure-play of
FMCG company in the
country and has one of the
widest portfolio of products
sold via a strong distribution
channel.
 It owns and market some of
the most popular brands in
the country across various
categories including soaps,
detergents, shampoos, tea
and face creams.
ITC
 ITC is not a pure-play of
FMCG company , since
cigarettes is its primary
business.
 It is diversifying into non-
tobacco.
 FMCG segments like foods,
personal care, paper products,
hotels and agri-business to
reduce its exposure to
cigarettes.
 GROWTH DRIVERS
HUL
 The company has been launching
new products and brand
extensions, with investment
being made towards brand-
building and increasing its
market share. HUL is also
streamlining its various business
operations, in line with one
Unilever philosophy adopted by
the One Unilever group
worldwide. Introduction of
premium products and addition
of new consumers via market
expansion will be HULs growth
drivers.
ITC
 ITCs backward integration to
ensure that its products pass
efficiently from the farms to
consumers has helped it to cut
down supply and procurement
costs. ITCs non- cigarette of
FMCG business leverages the
large distribution networks the
company has developed by
selling cigarettes over the
years. A rich product mix, along
with ramp-up of investments in
its new sectors, will be
instrumental in charting ITCs
growth path.
 PERFORMANCE OF ITC AND HUL

 After stagnating between 1999 and 04, the

company is back on the growth track. In the past
3 years, is 2008 HUL’s net sales have witnessed a
CAGR of 11%, while net profits has posted a
CAGR of 17%.
 Despite diversification, ITC’s reliance on
cigarettes is still huge. The tobbaco business
contribute 40% to its revenues, and account for
over 80% of its profit. This cash-generating
business has enabled it to take ambitious, but
expensive bets in new segments and delivers
modest profit growth.
 CONCLUSION
 HULs up-and-running business model is a treat for
investors seeking exposure in the FMCG segment.
The company has delivered in the past and has the
potential to do better in future. In the small and
medium term. ITCs growth story is still evolving.

 ITCs is eyeing the pie with HUL and other FMCG

players currently enjoy. Though risky, the companies
business model will pay off in the long run. ITCs has
proved its expertise in the cigarettes, hotels, paper
and agri-business. Investors who want to bank on its
execution ability in FMCG and consider the stock
with a long-term horizon.
THANK YOU