HINDUSTAN UNILEVER LIMITED

INTRODUCTION Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast moving consumer goods company owned by the European company Unilever. The Anglo-Dutch company Unilever owns a 52% majority stake. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). [2] Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. The company claims that two out of three Indians use its many home and personal care products, food and beverages.

Industry Founded Headquarters

Fast Moving Consumer Goods (FMCG) 1933 Mumbai, India Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director) Home & Personal Care, Food & Beverages 19,987.14 crore (US$3.8 billion) (20102011) [1] 2,305.97 crore (US$438.13 million) Over 65,000 direct & indirect employees Unilever Plc (52%) www.hul.co.in

Key people

Products

Revenue

Net income Employees Parent Website

HISTORY OF HUL
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 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 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 liberalisation 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 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever 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, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL 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 1994, 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, Speciality 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. HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of Pureit water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2,000 crore sales milestone in 2008. On 17th October 2008 , HUL completed 75 years of corporate existence in India.

Product line of Hindustan Unilever Ltd

Some of its brands include:

Kwality Walls ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam, Moti soaps, Pureit Water Purifier , Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and brushes, Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakm beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Lux shampoos, Vim dishwash, Ala bleach and Domex disinfectant.

FINANCIAL POSITION OF COMPANY BALANCE SHEET

Balance Sheet of Hindustan Unilever

Mar '11

------------------- in Rs. Cr. -------------------

Mar '10

Mar '09

Dec '07

De

12 mths

12 mths

15 mths

12 mths

12

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth 215.95 215.95 0.00 0.00 2,417.30 0.67 2,633.92 218.17 218.17 0.00 0.00 2,364.68 0.67 2,583.52 217.99 217.99 0.00 0.00 1,842.85 0.67 2,061.51 217.75 217.75 0.00 0.00 1,220.82 0.67 1,439.24

22

22

2,50

2,72

Secured Loans Unsecured Loans Total Debt Total Liabilities

0.00 0.00 0.00 2,633.92 Mar '11

0.00 0.00 0.00 2,583.52 Mar '10

144.65 277.30 421.95 2,483.46 Mar '09

25.52 63.01 88.53 1,527.77 Dec '07

2,79

De

12 mths

12 mths

15 mths

12 mths

12

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets 3,759.62 1,590.46 2,169.16 299.08 1,260.68 2,811.26 943.20 281.91 4,036.37 1,099.72 1,358.10 6,494.19 0.00 6,264.21 1,324.98 7,589.19 1,095.00 0.00 2,633.92 3,581.96 1,419.85 2,162.11 273.96 1,264.08 2,179.93 678.44 231.37 3,089.74 1,068.31 1,660.84 5,818.89 0.00 5,493.97 1,441.55 6,935.52 -1,116.63 0.00 2,583.52 2,881.73 1,274.95 1,606.78 472.07 332.62 2,528.86 536.89 190.59 3,256.34 1,196.95 1,586.76 6,040.05 0.00 4,440.08 1,527.98 5,968.06 71.99 0.00 2,483.46 2,669.08 1,146.57 1,522.51 185.64 1,440.81 1,953.60 443.37 200.11 2,597.08 1,083.28 0.75 3,681.11 0.00 4,028.41 1,273.90 5,302.31 -1,621.20 0.00 1,527.76

2,46

1,06

1,40

11

2,52

1,54

44

17

2,15

1,15

24

3,55

3,36

1,42

4,79

-1,23

2,79

Contingent Liabilities Book Value (Rs)

663.00 12.19

468.49 11.84

417.26 9.45

494.46 6.61

47

COMPITITORS
Name HUL Dabur India Colgate Godrej Consumer Marico Gillette India P and G Godrej Ind Emami Bajaj Corp Jyothy Labs Amar Remedies JHS Svendgaard GKB Ophthalmics Last Price 416.75 102.65 1,019.60 389.85 145.35 1,933.00 1,715.60 174.45 349.85 100.60 158.95 129.95 34.35 28.50 Market Cap. (Rs. cr.) 90,060.73 17,882.59 13,865.83 12,615.16 8,936.84 6,298.72 5,568.96 5,540.97 5,293.64 1,483.85 1,281.65 340.00 58.57 11.84 Sales Turnover 19,333.30 3,287.67 2,296.86 2,442.64 2,353.71 1,056.86 1,000.25 1,145.84 1,221.15 359.44 608.02 578.01 85.42 Net Profit 2,305.97 471.43 402.58 434.96 315.33 86.15 150.88 133.43 227.49 84.10 80.27 38.05 6.07 -

Total Asset 2,633.92 1,354.51 384.09 1,806.18 1,425.61 600.33 600.62 1,644.38 906.88 376.33 716.47 413.96 112.98 26.63

PRODUCT LINE OF SUNSILK

Sunsilk Waves of Envy Sea Mist

Why are all other sea salt sprays so incredibly overpriced? This spray was reasonably priced and easy to find. Most importantly, it really pumps up your waves. It delivers that beachy texture without looking messy. It looks very intentional. Just spray all over damp hair and let air dry for great waves. Sadly, I'm down...

Sunsilk Captivating Curls Scrunching Mousse

Love sunsilk mousse I have natural curly hair I'm puerto rican/ Italain hair is not as tight. Cant find this mousse any where please help if any of you know where to find sunsilk mousse.online it cost to much! Thank you for your help.

Sunsilk Daring Volume Anti-Flat Plumping Creme

This is the best product I have ever used to give hair body. This lifts your hair not just at the roots but all over. It also smells fantastic! Sadly, Sunsilk felt the need to redesign their entire product line and this one got the axe. Inexplicable. Why, Sunsilk? I still haven't found anything that works as well!

Sunsilk Hydra TLC Conditioner

After reading great reviews I tried this a few days ago. My hair is colored, thin and wavy. Usually, with any conditioner, if I let my hair dry naturally, the first day it's fluffy - ready frizzy, and out of control. I used a nickle size of this, left it on my hair a few minutes while I did over shower duties.

Sunsilk Straighten-Up 24/7 Creme

Fisrt thing i've found in years that actually works. Conditioners make my hair oily & this doesn't.

Sunsilk Anti-Caida (Anti-Fall) Shampoo

I love it; I have very thin lifeless hair and after using the conditioner my hair has lots of volume.

Sunsilk Anti-Flat Shampoo

I am very disappointed that this Sunsilk shampoo has been discontinued. I loved it!!! I have never said that about any shampoo!!!!!

Sunsilk Anti-Flat Weightless Volumizing Creme

i've been using this for over a year now and i'm finally finished with it. it doesn't do anything for my really curly and frizzy hair, no matter how i style it. I didn't notice any volume whatsoever

Sunsilk Hydra TLC Shampoo

I love this shampoo. It's very moisturizing and hydrating. A word of caution: avoid using on roots, it can make them oily. Otherwise, it's amazing.

LEVELS OF SUNSILK
The Sunsilk Ethnique Range covers all hair care needs: Relaxer Range Anti-dandruff Range Damage Repair Range

Relaxer Range
It is important to know your hair type before applying any relaxer. Sunsilk Ethnique offers a range of relaxers specifically formulated for the different hair types, with variants for Soft Hair, Medium Hair and Coarse Hair. Sunsilk Ethnique Relaxersmake Afro hair easy to comb and gives you the flexibility to create a variety of different hairstyles. Depending on your re-growth, it is recommended to apply a relaxer every 6-8 weeks.

Sunsilk Soft Hair Relaxer

Soft hair tends to be fragile and thin, with looser curls and fewer strands on the scalp. The good news is that this type of hair is easier to relax, but the down side is that it is prone to damage. The Sunsilk Ethnique Soft Hair Relaxeris specially formulated to straighten soft hair, leaving it silky, straight and easy to manage.

Sunsilk Medium Hair Relaxer

Medium hair is slightly thicker than soft hair, has tighter curls and more volume. This type of hair is easy to relax and style. The Sunsilk Ethnique Medium Hair Relaxer has been created specifically for this type of hair to ensure long lasting straightness.

Sunsilk Coarse Hair Relaxer

Coarse hair is the thickest type of hair. It characteristically has very tight curls and the most volume. The advantage of coarse hair is that it holds style well, but it is also known to be difficult to relax. The Sunsilk Ethnique Coarse Hair Relaxerhas been specially developed to effectively straighten hard-to-relax hair, leaving it silky, soft and manageable.

Neutralising Shampoo
It is very important to use Sunsilk Ethnique Neutralising Shampoo when relaxing your hair. Sunsilk Ethnique Neutralising Shampoo is formulated to complete the relaxing process and will indicate if all the relaxer has been properly washed out. If there is still relaxer in the hair, the shampoo with foam blue. It is important to keep washing hair until the shampoo foams white, otherwise the relaxer will continue processing your hair, which could lead to hair and scalp damage.

Anti-Dandruff Range
Dandruff is a common scalp condition which can result in skin flakiness if left untreated. This is usually caused by a dry scalp and not shampooing your hair often enough. Afro scalps are more prone to dandruff as they naturally have lower oil levels. To clean your hair and be kind to your scalp Sunsilk Ethniques Anti-dandruff Range covers all your dandruff needs in 4 products.

Anti-Dandruff 2-In-1 Shampoo

Using Sunsilk Ethnique Anti-dandruff 2-in-1 Shampoo can save time, but there are more important benefits than this. It not only cleans and conditions hair at the same time, but a quality 2-in-1 Shampoo also provides long lasting dandruff control if used regularly, providing additional relief from itchiness. It also leaves your hair feeling soft and silky, without the undesirable flakiness.

Anti-Dandruff Oil Moisturising Lotion

Sunsilk Ethnique Anti-dandruff Oil Moisturising Lotionhelps to reduce dryness and itchiness. It contains very high oil levels, which coat the hair, leaving it shiny and easy to comb. An oil moisturiser should be used daily or at least once every two days. It works particularly well on Afro hair, whether it has been relaxed or not.

Anti-Dandruff Braid Spray

The process of hair braiding causes stress to the scalp, which creates the feeling of scalp tightness. This constant pulling on the scalp contributes to dryness and flaking. Braids are difficult to wash, but infrequent hair washing can result in scalp itchiness. The Sunsilk Ethnique Anti-dandruff Braid Spray helps to moisturise the scalp and hair whilst controlling itchiness. The handy pump format can be used for more targeted applications.

Anti-Dandruff Hair Food

Because the scalp needs constant moisturisation to prevent flaking and itchiness it is important to use hair food to keep it nourished. Sunsilk Ethnique Anti-dandruff Hair Foodalso contains high levels of oils which form a barrier to prevent excess water loss through the scalp.

Damage Repair Range

There are a number of things that can cause hair breakage, specifically the use of heat appliances such as hair dryers, hair tongs and hair irons. The heat generated from these appliances opens up the layer around the cuticle that protects the hair, causing damage to the cuticle which results in weak and damaged hair. These appliances also strip the hair of moisture, leaving it dry and brittle. The Sunsilk Ethnique Damage Repair Rangeincludes a variety of products that are specially formulated to protect and repair hair, ensuring 20 times less hair breakage and leaving it looking healthy at all times.

Damage Repair Shampoo

A shampoo can do more than just clean hair. Sunsilk Ethnique Damage Repair Shampoo helps to improve the condition of your hair, while it cleans. It works by removing any unwanted residue from the hair, ensuring it feels clean and fresh. The formulation is also light so it doesnt make your hair feel heavy.

Damage Repair Conditioner

A conditioner improves the condition of hair by providing essential nourishment. It also helps make hair easier to comb and more manageable. Sunsilk Ethnique Damage Repair Conditioner can provide these benefits when used at least once a week after washing.

Damage Repair Intensive Treatment

Sunsilk Ethnique Damage Repair Intensive Treatmentpromises 20 times less hair breakage* and also helps reduce tangling while nourishing and strengthening the hair. As a result, hair looks healthy, soft and is easier to manage. Damage Repair Range Intensive Treatment can be used on relaxed and natural hair and is recommended to be applied at least every two weeks.

Damage Repair Oil Moisturising Lotion

Hair can be nourished and strengthened with Sunsilk Ethnique Damage Repair Oil Moisturising Lotion . It applies exactly the right amount of moisturising oils to help reduce hair breakage and brittleness, without leaving hair feeling stiff. It also lasts all day long without the need to re-apply.

Damage Repair Oil Moisturising Spray

Sunsilk Ethnique Damage Repair Oil Moisturising Sprayhas a light formulation that wont weigh your hair down. The oil in the spray moisturises your hair without it looking and feeling greasy, and the nourishing ingredients leaves hair feeling soft, silky and bouncy. Visit http://www.sunsilkethnique.co.za/index.html for more information

Sunsilk Caucasian in South Africa

The sunsilk brand has always known that hair is a big, big, big thing in girls lives - hair is a crucial element in how girls express themselves ! Most girls are not happy with the hair they have they always want what others have. At Sunsilk, we are not trying to change the hair you are born with, we are trying to open your mind about the possibilities of the hair you have. Because we understand that when hair is on, girls are on and if girls are on, life is on. That is why we believe that hair is the most important thing in a girls life: Hair on, Life on! The Sunsilk range offers a quality electroshock by introducing:
Natural energisers that absorb quickly into hair, to transform it from the first wash, making hair visibly beautiful. "Best in class" formulations. Addictive fragrances. Attractive new packing - modern and feminine designs.

The Sunsilk range is divided into two types of shampoo/conditioner: Blockers and Boosters. Boosters are product platforms with benefits that easily switch girls on, such as shape, color and shine. Blockers are product platforms with benefits that remove barriers to girls feeling on such as Scalp, Dry and Damage. We believe that dramatic change does not only depend on cut or permanent coloration. Hair offers the daily ability to transform mood, if not whole appearances, without any major cost or investment; by making you feel great about the way you look.

Sunsilk Breakage

Sunsilk Anti-dandruff

Sunsilk Clean

Sunsilk Damage Repair

Sunsilk Shine

Sunsilk Course Hair Relaxer

Sunsilk Medium Hair Relaxer

Sunsilk Neutralising Shampoo

MARKETING MIX

THE MARKETING MIX : PRODUCT: Sunsilk is one of the star products of Unilever, and comes under the category of personal care products.Products in this category are more developed and have a broader scope in Pakistan because of thegrowing economy. Sunsilk is a twenty-plus urbanite girl, who doesnt wait for things to happen. Shescharismatic, confident, approachable and a go getter. She portrays a perfect century woman whomakes her dreams come true by sheer hard work. Although the target audience is purely women intwenties, but Sunsilk has a mass appeal and is used by people of multiple classes, professions or agegroups. Furthermore, the brand has various types of shampoos and conditioners designed for individualswith varying hair types; as a result each consumer becomes intimate with the brand. The quality of theproduct is maintained through

extensive chemical testing which takes place after every month. ThusSunsilk secures its place in the consumer mind by frequent innovations in the product and maintaining itsquality.

PACKAGING: Sunsilks approach to responsible packaging seeks to take into account environmental, social andeconomic considerations. In 200 7 it created a Responsible Packaging Steering Team to define a revisedstrategy. The global relaunching of Sunsilk with improved

SKUs was the result of the following approachtowards packaging which consists of five key principles: Remove: to eliminate, where possible, unnecessary layers of packaging such as outer cartonsand shrink-wrap film an area where our retail customers are increasingly setting reductiontargets. Reduce: to reduce packages to the optimal size and weight for their contents. Reuse: to reuse packaging from the materials we receive at our factories. Renew: to maximize the proportion of packaging from renewable resources and to investigate thetechnical feasibility of

biodegradable and compostable materials Recycle: to increase the use of recycled, recyclable and singlematerial components in packagingfor easy sorting and recycling at the end of its use.Reducing packaging and waste can have business benefits, too, as it can lead to cost savings. Apart fromthat the outlook of the product matters as well. Sunsilk is known for its bright, catchy colors which instantlyattract a customer so that they can spot a Sunsilk bottle from a vast array of different shampoos. Thecolors also go along with the brand image of Sunsilk which portrays an outgoing personality of a youngwoman. PRICE: Sunsilk is the market leader and it therefore sets the market price. As

stated earlier, Unilevers goal is tomaximize profits, increase market share and improve sales. The price of the product determines all thesefactors. Sunsilk claims to practice value-based pricing in which the customers perception of the productsprice provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups, hence taking into account the affordability of theproduct by people of all incomes.Unilever makes use of a process known as demand planning to estimate local demand. Through thistechnique they keep track of the weekly sales and production- sales going out and stock coming in.Sunsilk is Pakistans leading shampoo and it has no shelf

life. Hence the stocks constantly flow in andout. The forecasted demand is updated every month. This demand planning also helps in setting up themarket price of Sunsilk.Sunsilk major competitor is Procter and Gambles Pantene. Being a market leader, Sunsilk has theadvantage to set the market price. Even though Pantene revised its pricing policy recently but Sunsilk maintained its original market price. Sunsilk does, however, take inflation into account. Since Pakistan is economy is not stable, inflation can prove to be detrimental to Unilever is organizational goals. To maintain constant profit margins, Sunsilk makes use of price indexes and hence the market price is subjected to inflation.