INDIRA SCHOOL OF BUSINESS STUDIES
Group- 08 ,Div-E
E-23 E-05 E-24 E-12 E-17 E-18
1- CHANDRA SHEKHAR KUMAR 2- ABHISHEK KUMAR AMAR 3- CHETAN TANDON 4- ANSHU KUMAR 5- ASHISH UPADHYAY 6- ATUL NANAVATI
Report date: Report content:
Executive summary. Introduction to HUL. Current performance of HUL. Dimensions of HUL. Future direction of HUL.
2- 3 4-13 14-20 21-26 27-28
1,003 2,244 1,687 2,206 954
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. The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401 crore (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. Unilever has about 52% shareholding in HUL. Hindustan Unilever is one of the leading FMCG manufacturing companies in India. The company's FMCG products include all types of daily use products. The company also provides finance for its distributors. The company primarily operates India, Bhutan, Nepal, US, Australia, South Korean, South Africa, Turkey, Sri Lanka and Russia, etc. Its headquarter is in Mumbai, India and employed direct and indirect more than 65,000 people as on March 31, 2008. The year 2010-2011 has been an eventful and satisfying year for the business. Their net sales are increased by 10.7% which is a good double digit growth as compared to its competitors. HUL has shown double digit volume growth of 13%.Pure-it grew strongly and has until covered 4.5 million homes. Due to their project of Shakti Amma their direct retail coverage in rural areas is increased by 600000. HUL provide income generating opportunities to 45000 shakti entrepreneurs in rural areas across 15 states in 100000 villages through project Shakti and Hindustan Unilever Ltd is positioned as market leader in the F.M.C.G industry. It is a very well established brand and claims that two out of three Indian uses its products. Company has got a very vast distribution network and a strong supply chain network to support. Despite having a slight decrease in the market share the company has been able to maintain its profitability.
Company dimension of H.U.L lead in different part as it is the subsidiary of Anglo-Dutch Company Unilever. The parent company (Unilever) holds 52% stake in H.U.L.thats why its hold the decision making authority and remaining share to Indian counterpart. .As the company is very old so the company’s organizational structure is very well placed and the company has produced many successful business managers. The organization is divided in four different functions. Each headed by a functional head. All these functional heads report to the chairman. The Board of Directors appoints the chairman and the C.E.O The company has non-executive Directors, Executive Directors as well as management committees which look into different operations. The different functions report to the vertical head as well as co-ordinate at the horizontal level. : The Company grew organically through its own expansion and new launches. The size of the market increased and new products were introduced in the market. The company launched new products in various categories and this helped the company to grow its market. Company maintained its growth rate in double-digit. New products which were launched also captured the market very well. . Most of the segments saw good increase in their sales. There was large volume growth overall. The business saw growth across all segments. The Home and Personal Care business grew by 9.8 per cent with competitive growth in both Laundry and Personal Wash. Personal Products business grew strongly at 15.7 per cent. Growth was broad based across categories with Skin Care delivering a particularly strong performance. Water purifier brand, Pureit, grew strongly and continued to expand its franchise with product offerings across multiple prices. The company did not have any joint ventures with any other firm but plans to open so in the near future as the competition is increasing with more players coming in the market. The Company did not have any merger or acquisition in previous 3-4 years. One major incident happened in 2007 when the parent Unilever Company acquired the majority stake (52%) and the name of company was changed to Hindustan Unilever Limited. The Company has two research and development centers in India. The company focuses on sustainable growth. The company spends a good amount of its money in research & development. The company focuses on saving water as it will be scarce in quantity till 2030. As India is focusing on preserving water for future as water will become scarce. Company has been actively performing corporate social responsibility for long. Their schemes have been high point and earned them a good-will in the market. Keeping an eye on water scarcity in the future both for consumption and for drinking Purposes Company looks to store water in its surrounding areas and also consume less water. The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs and support in the areas of education, career and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic empowerment platform and the Foundation is an extension of this promise. The Foundation has renowned Indian women, from various walks of life, as its advisors. Among them are educationists, NGO activists, physicians. The Foundation is implementing its activities in association with state governments. supply chain network to support. Company always look for innovations and come up with new and improved products. It serves the old market so they emphasize on market penetration and product innovations. In sync with Indian demands they come with valuable products which provide values to customers. They try to have a good penetration in rural areas to increase their sales. They always work to have a sustainable growth. The company has been able to maintain its leadership position for long and has a very established organization structure. It has produced many business leaders in India. The company aims to grow further and want to add 300 million untrapped market in India .
Closeup. skin care. the household brands such as Lux. Bru. Lakmé. Clinic Plus. shampoos. ice cream. Dove. Lifebuoy. Kwality Wall’s and Pureit. packaged foods. Pepsodent. Kissan. deodorants. Surf Excel. Sunsilk. Brooke Bond. cosmetics. look good and get more out of life with brands and services that are good for them and good for others. tea. Vaseline.4
INTRODUCTION OF HUL
HUL works to create a better future every day and helps people feel good.
. Knorr. Axe. detergents. Pond’s. Rin. Hul product category such as soaps. coffee. toothpastes. Wheel. Fair & Lovely. and water purifiers.
Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. ➢ In 1956 three companies merged to form hul in November. Unilever has about 52% shareholding in HUL. US. With it. Nepal. India and employed direct and indirect more than 65. The company also provides finance for its distributors.) ➢ Since 1947 Pond's (India) Limited had been present in India. It is headquartered in Mumbai. Hindustan Vanaspati Manufacturing Company. a increase of 0.000 employees and has an annual turnover of around Rs. ➢ In 1984 broke bond joined the unilever fold through an international acquisition. visitors to the Kolkata harbour noticed crates full of Sunlight soap bars.82% over 2010.059.72% compared to 2010. 401 crores (financial year 2010 . South Africa.7 million in FY2011. Turkey. Unilever set up its first Indian subsidiary.(1918) ➢ In 1898(Lipton’s links with India were forged.
In the summer of 1888. one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. Bhutan. ➢ In 1931.
. etc. HUL is a subsidiary of Unilever.85% compared to 2010. The company's FMCG products include all types of daily use products.2011). Hindustan Unilever is one of the leading FMCG manufacturing companies in India. The company primarily operates India. ➢ IN 1985 Lifebuoy and other famous brands like Pears. Lux and Vim launches. followed by Lever Brothers India Limited. The operating profit of the company was INR27. an increase of 11.301. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. 2008.5
The Company has over 16. a increase of 4.5 million during the financial year ended March 2011. began an era of marketing branded Fast Moving Consumer Goods (FMCG) ➢ In 1918 Vanaspati was launched in and the famous Dalda brand came to the market in 1937.19. embossed with the words "Made in England by Lever Brothers". The company recorded revenues of INR199871. Australia. Sri Lanka and Russia.8 million during FY ended on March 2011.000 people as on March 31. South Korean. The net profit was INR23.
the government decided to award 74 per cent equity in Modern Foods to HUL ➢ In 2001 HUL launched a slew of new business initiatives in the early part of 2000’s. Currently. HUL made its foray into Ayurveda health & beauty Centre . HUL and yet another Tata company. . Lakme Limited.
. ➢ HUL has also set up a subsidiary in Nepal. On 17th October.000 Shakti entrepreneurs covering over 100. Unilever Nepal Limited (UNL). ➢ In 1996. ➢ In 1992. formed a 50:50 joint venture. ➢ In 2002. BBLIL merged with HUL. Finally. ➢ IN 2004. which markets Huggies Diapers and Kotex Sanitary Pads. it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. ➢ In 1993. It is a rural initiative that targets small villages . in a historic step. factory represents the largest manufacturing investment in the Himalayan kingdom. Project Shakti. ➢ In April 1993 Tata Oil Mills Company (TOMCO) merged with HUL. ➢ In 1998. the Company name was formally changed to Hindustan Unilever Limited. ➢ In january1994. ➢ In 2002. the erstwhile Brooke Bond acquired Kothari General Foods. with significant interests in Instant Coffee. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). HUL launch pure it water purifier.6 ➢ In 1991 the liberalization of the Indian economy started &clearly marked an inflexion in HUL's and the Group's growth curve. ➢ In 1994 HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation. ➢ In 2007. ➢ In January 2000. there are over 45. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL acquired the government's remaining stake in Modern Foods. Kimberly-Clark Lever Ltd.000 villages across 15 states and reaching to over 3 million homes.
Knorr soups. Rexona. Rin. ketchup.Lux. The company's key products and services include the following: Products: Personal Wash:. Liril. Ponds and Vaseline. Surf Excel. Sun Light. Liril. Lifebuoy. Wheel & Ala Bleach Dishwasher:. Clinic plus.Vim Foods:. salt). While Wheel Rexona are targeted at low income group Surf Excel Dove are targeted at the
. Pears and Rexona Laundry:. Dove. Life-buoy Oral-Care:.Vim. Annapurna(aata. Lifebuoy.Fair & Lovely. Lakme. Dove. Breeze.
➢ Soaps And Detergents: Company has got many different products in this category
and caters to different income groups.Wheel. Taj Mahal Coffee:. Major Products offered are Rin. squashes). Lipton. Modern Bread Ice-cream:. Dove.Pears. Lux.Kissan(Jam.Pepsodent.Sun silk.Surf Excel. Hair-Care:.Kwality wall’s Tea:. Bru Cosmetic Products:. Colgate.Brooke bond.7
Products & Services
HUL is a FMCG manufacturing company in India. Hamam.Axe and Rexona. Ham am.Brooke Bond. Rin. Close-up Deo-Spray:.
➢ Personal Products: This category includes sub. Bru is a comparatively new product and company has also offered its different variants. oral care. Taj Mahal Bru in this category.9% Processed Foods 4. Similarly different products in other categories are offered like Close-Up.
➢ Ice-Creams: In this segment the company has got a very popular brand Kwality
Walls. children and families. Deodorants. Red Label.
➢ ➢ ➢ ➢ ➢ ➢ ➢ Soaps and Detergents 44. Taj Mahal tea is targeted at the premium segment whereas. Here the company is able to connect itself to different age groups as per their requirements.6% Ice creams 1. Sunsilk Clinic Plus Livon etc.8
premium class Some of the soaps are very old and are household names while some are comparatively new. which are popular with youth. Taj Mahal is also marketed in the tea bag industry. There are three main variants . Company’s biggest brand in cosmetics is Pond’s. colour and cosmetics.categories like skin care. Company offers a wide array of products in all the different sub categories. hair
care. Company also owns the Modern brand of foods.6% Personal Products 29. Later Knorr soup noodles were launched which created a rage in the market.
➢ Processed Foods: The Company had a major brand in this segment “Kissan”
Ketchup.4% Exports 5. Different products are offered keeping in mind different income groups.7% Beverages 11. Paddle Pop and Selection Take Home Tubs. The has been very successful and has a presence all over. Company launched its Knorr Soups there after.Fair& Lovely Axe Elle 18 Dove.2%
. Cornetto. Company has been able to identify the requirements of different segments and have delivered to them.
➢ Beverages: This segment includes the segment of tea and coffee. Company has
got many brands like Brooke Bond.6% Others 2. Different Variants were also launched of kissan ketchup. Red Label is targeted at the low income group.
➢ In personal care company is at top in skin care hair care and is second in oral care. China India etc which helps the company to understand the local market requirements as well. The company has managed to keep a good balance of its revenues earned from different parts of the world. ➢ In the water industry the company sells maximum number of machines in its category.
Here we can see how the company earns its revenue from different category and its position in different categories is: ➢ In Soaps and Detergent sector the company is at the top. Many new segments have been identified and new companies are coming up in different categories like ITC P&G Marico.
➢ The sector overall face neck to neck competition among rivals as shown by different
advertisement programmes. etc. ➢ The company export are maximum and is the biggest exporter in the industry.
MARKET AND REVENUE Market & Revenues HUL serves in all the countries of different continents except Antarctica. The company is very old(more than 100 years) in Europe and has also got more than 50 years of experience of operating in emerging economies like Brazil. Company is trying to retain and regain its market share. ➢ Company is at second position in Beverages category. The revenues earned from different continents are also in proportions to their population. ➢ Despite increase in the volume of sales there has been a decline in the market share of many products in different categories. 53% of the total revenue of the company comes from emerging economies whereas remaining 47% come from developed economies. Company always try to come up with new and innovative products so as to maintain its position as leader. The company serves in more than 180 countries across the globe. ➢ In Processed foods category the company entered new whereas. On a given day around 2 billion people use products offered by the company worldwide The company has got its presence in developed as well as developing or emerging markets. existing brands were at top ➢ In ice creams the company is at first position. The company operates in the entire major as well as small nations.
. ➢ The companies understand the Indian market well and make products that suit the local people and their demand. skin care & deodorant.
MISSION OF HUL
➢ In INDIA the company is positioned as the leader having a market share of 52%. As indicated by the overall market share the company is placed at top in many categories in which it operates. laundry. The company also spends a significant amount on its Research & Development (R&D) to come up with new and innovative products. Company’s products are easily available all over. The company claims that two out of three Indians use the company’s products. Company follows the channel distribution strategy to reach out to its customers. The company is placed at top in categories like soaps. In
the year 2010-2011 the company had total sales of Rs. It has a vast number of dealers and distributors.54crores. hair care. home care. 20.
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.
Purpose & principles: Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with. and through the various other ways in which we engage with society. through voluntary contributions. organisations and environments our business touches has always been at the heart of our corporate responsibility. Positive impact We aim to make a positive impact in many ways: through our brands.11
Mission of The Company:
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. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. the communities we touch. our commercial operations and relationships. and the environment on which we have an impact. Continuous commitment
• • • • • Always working with integrity Positive impact Continuous commitment Setting out our aspirations Working with others
Always working with integrity Conducting our operations with integrity and with respect for the many people.
in www. keeping their homes fresh and clean or by enjoying a great cup of tea. aligned to our own Code of business principles. Company goal: Company goal is to build capability of our people so as to enable them to grow markets with innovative solutions and make a difference to India and create a competitive. care and drive our people to fulfil their optimal potential. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows. satisfying meal or healthy snack.co. profitable and sustainable business. Working with others We want to work with suppliers who have values similar to our own and work to the same standards we do. Setting out our aspirations Our corporate purpose sets out our aspirations in running our business.12
We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. Vision: 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.hul. We enable them to develop new skills to stay on top of the success curve. Our Business partner code. www. Company Approach: Our biggest asset is our people and they are the central pillar that supports our growth agenda. comprises ten principles covering business integrity and responsibilities relating to employees. We nurture.irish. consumers and the environment. The code also supports our approach to governance and corporate responsibility. 2009-2010. The key action areas are: • •
Build capabilities of our people Ensure employee health and safety Instilling values
SOURCE OF INFORMATION
• • •
ANNUAL REPORT OF HUL 2010-2011 . wherever they are in the world.com
(156.4 3 193.34% inc.96
CURRENT PERFORMANCE OF HINDUSTAN UNILEVER LIMITED INTERNAL COMPARATIVE ANALYSIS OF HINDUSTAN UNILEVER LIMITED
Comparative profit and loss account of Hindustan Unilever Limited
Percent age Change
Net sales Other Operational Income
2420.30 (1.83) (20% inc)
1933.3 7) 4) 6)
.8 0 201.81% dec.51%
TOTAL Operating cost and expense
2749.11 (10.7 (14066.6 (14975.41%
2432.75% inc) 2699.8
2565.4 6 307.71% inc.09
Interest income (net)
9.8% due to increase in the operating cost.168
19.5 million homes.35
Domestic consumer business is grown by 10.25%
1925.56 (3.21) 1743.12 182.58
2202. It is now covering more than 4. ➢ This year hul has shown a double digit volume growth of 13%.
Home and personal care business is grown by 9.52% -16. ➢ Top line of the company has been decrease by 1.00.39) 2102.14 Taxation PAT Exceptional/ extraordinary item Net Profit
➢ In the year 2011 total sales of Hindustan unilever limited is increased by 10. one of the product of HUL grew strongly. This sale is increased due to increase in their direct retail coverage in rural areas.)
Basic EPS (Rs)
8.72 (53.000.08% 23.10
1997.68 99.co. which is a good
double digit growth.7%. In these 4 years sales is increase by 41.40)
(604. Their strongest growth is shown in personal product business which is 15.97 (4.9%.8% with competitive growth in laundry and personal wash.86%.67% inc.
➢ Their direct retail coverage is tripled due to increase in their retail outlet by 6.71% inc.
interest and tax is reduced by 1. This leads to continuous increase in depreciation. then personal products sector i. According to the financial report of the company the main reason in the increase in the operating cost of the company is the increase in the cost of raw material and increase in the price of the oil.
➢ As the depreciation is increased by 20%.7% due to increase in the exceptional / extraordinary items by 53. The net profit of the company is increased by 4.35% due to good investment policy adopted by the company.e 46%. For HUL.
Profit before tax is increased by .
➢ The operating cost of the company have been increased by 206054cr this yr as compare to 2010
which effect the net profit of the company.e32%. 2% due to which depreciation was increased by 20% and during the 5 years fixed assets was increased by 63%.
SEGMENT-WISE SALES PERCENTAGE YEAR-2010-2011
Major portion of Hindustan unilever limited’s income is contributed by soaps.detergents and household care sector i.4%.
As mentioned in the annual report of the company “Raw materials constitute a big chunk (around 60%) of input cost for FMCG sector companies.75%.e 20% and other is just 2%.Palm Oil and Chemicals contribute 59% of total raw material cost.
Over the four years the operating cost and expense is increased by 44% this is all due to increase in the advertisement expenses which increases due to tough competition and major reason was inflation also.7%.
➢ The cost of outbondlogistic is also increase due to increase in the petrol price.15
➢ During year 2011 total assets of HUL was increased by approx. due to inflation in that year the cost of raw material is increased and the company was not be able to increase its selling price due to tough competition.80% as there interest income is increased by 78.
.” Due to inflation the increase in the cost of raw material affects a lot towards the cost of manufacturing which leads to decrease in the gross profit of the company.
Profit before depreciation. as it is mentioned in the annual report of the company.8 % because HUL’s operating expenses is increased by 13.then food sector i. profit before interest and tax is reduced by 3.
49 88.43 2583.07 1264.93 224.4 2796.09
2007-2008 1708.68 209.072 266.76
Comparative Balance Sheet of Hindustan Unilever Limited
PARTICULARS Fixed assets Investments Net deferred tax Net current assets TOTAL ASSETS
2006-2007 1511. value grew by 6.74 1221.816 337.1% due to price corrections taken in laundry business in the early part of 2010.92
Share capital Reserves and surplus Loan fund TOTAL LIABILITIES
220.01 2413.92 (source – HUL annual report 2010-2011)
Ratio analysis of the company
2009-2010 2436.272 1986.76
218.08 248.57 1527.52 2633.096 203.52
2010-2011 2468.8 212.16
There was strong volume growth in the Soaps and Detergents category.24 1260.53 1527.17 2365.81 72.97
1986.66 2633.7% during the year.35
215.82 -1365.55 -1353.39 -1833.864 -146.68 2502.76 2583.09
217.14 1440.Personal Products category grew by 15.66 -1304.95 2417.392 1474.
21. An ideal current ratio should be 2:1 and an ideal Quick ratio should 1:1.00.01 0 02 1
0 6 .6 9 .7 0 .4 7 .5 1 .4 3 . and this is all due to good marketing strategies opted by the company like SHAKTI AMMA. The higher the ratio the better it is as it indicates the amount from debtor is being collected more quickly.8 0 3 .moneycontrol.4 7 1 .9 2 .91 this shows that stock of HUL is efficiently used. It can easily raise funds from the market in order to perform its activities.09 0 82 0
0 3 .33 cr.4 to 7.com)
Current ratio and Quick ratio shows the short term financial position of the company. it does not get any problem in dealing in credit basis.
➢ The higher the ratio the better it is.
. ➢ But as compared to previous year there is decrease of approximately 15% in the turnover ratio.5 1 6 12 7 0 . The company may get difficulty in paying of its current liabilities
Since Hindustan unilever limited is such a huge company and having a good market repo. ➢ The inventory of the company is also increased by 631.3 1 .8 47
20.28 from 33.4 8 9 . Their direct retail coverage in rural areas was increased by 6.8 0 9 7 .9 2 .7 4 1 .00 0 92 1
0 4 . ➢ Inventory turnover ratio is increased from 7. it is repeated 7 times during
the year.4 36 7 7 . .2 1 .2 4 8 7 5 . HUL’s stock is selling quickly.2 2 9 16 8 0 . This ratio indicates the number of times the stock is turned into sales during the year.000 outlets.
Company’s debtor turnover ratio is reduced to 24.4 2 1 1 .4
R TO AI
C R E TR T U R N A IO Q IC R T U K A IO IN E T R T R O E R T V N O Y U N V R A IO DB O T R O E R T E T R U N V R A IO E P N E ( O T T LS L S X E SS % F O A A E ) G O S R FTM R I R S P O I A GN N TP O ITM R IN E R F AG R T R O C P A E PO E E U N N A IT L M L Y D
20.2 9 4 7 1 .8 0 6 .
47. 11 09 10 11
Net profit margin ratio.86
25.70 to 12.29
.29%.41%. As the total sales of the company is increasing these expenses is also increasing in the same trend.35
This ratio is decrease due to increase in the credit sales of the products also the sales policy of the company was good in 08-09.89
22. This ratio is the
barometer of the overall performance of the enterprise.89
13. so there is decrease in margin
➢ Gross profit margin has been decrease from 14.
➢ Company’s return on capital employed is increased from 94.94
25. 09 10 11
.87 to 102.18
➢ The more quickly the debtor pay the less risk from bad debts and so the lower the expenses of collection there is an increase in the liquidity of the company.84
EXTERNAL COMPARATIVE ANALYSIS OF HINDUSTAN UNILEVER LIMITED
Name of competitors.41
Gross profit margin ratio.www.7
The gross profit margin of the company is increasing as compared to 08-09 but tie rate is slow and in 10-11 it is decreased by approximately 2% it is due to the increase in the price of raw material and the selling price is not gone –up in proportion to the increase in cost.65
19.Since the price of the raw material.
Current ratio. Expenses as a percentage of total sales are approximately 7%.67
1. The capital employed by the company is efficiently used.3
15. 09 10 11
Inventory turnover ratio. freight etc is increased but the sale is not increased in that proportion so there is decrease in the gross profit margin.91
PROCTER and GAMBLE
moneycontrol. as the inventory turnover ratio of PandG is much high as compared to Marico and HUL.346. Dove etc.25 2.
➢ On analyzing the ratios of hul and it’s competitors. It means that PandG is earning more on selling a single unit as compared to HUL and MARICO.32
OURCE. Detergents and Personal Care.19
Name of company Market capital Sales turnover Net profit
HUL PROCTER and GAMBLE MARICO
72. It’s earning per unit is low as
compared to MARICO and Pand G both.
➢ Head & shoulder.251. P and G is having highest net profit
margin.97 150.88 315. Ariel are some of the products of P&G which are in great
competition with Hindustan unilever limited product like Rin.
➢ The stock of PandG is more efficiently used as compared to Hindustan unilever limited and
➢ As compared to Hindustan unilever limited and Marico.154.
➢ HUL is one of the largest Fmcg company whose products are served in all market segments
that’s why the sales of HUL is largest among the individuals.
➢ Talking about the sales turnover Hindustan uniliver limited has the highest sales among it’s
competitors. HUL faces a tough competition from P&G India in its key segments i.44 6.305.it is all due to huge direct retail coverage.e. ➢ It can be observed that P and G is having very less current liability as compared to its current assets.228. Tide. It has issued a large number of shares in the market as compared to other competitors.com)
➢ It can be easily observed from the above data that HUL has the major market capitalization
among its competitors. surf excel. Pantene. P and G is incurring more indirect
expenses in its business.87
➢ Hindustan unilever limited believes in more and more selling.94 9. good sales and marketing strategies. It’s close competitor are far away in terms of market capitalization. but in case of HUL it is not so.
COMPARATIVE ANALYSIS WITH COMPETITORS .moneycontrol.hul. The parent company (Unilever) holds 52% stake in H.
COMPARATIVE BALANCE SHEET COMPARATIVE RATIO ANALYSIS -
HUL ANNUAL REPORT.20
SOURCE OF INFORMATION:
• COMPARATIVE PROFIT AND LOSS ACCOUNT SEGMENT-WISE SALES PERCENTAGE –
HUL ANNUAL REPORT.com
Organizational Structure: The Company is the subsidiary of Anglo-Dutch Company Unilever.moneycontrol.2010-2011. They have the total decision making authority.2010-2011.U.co. The remaining
C. The Company follows the matrix structure of the organizational chart in Indi
(Supply Chain) (Personal Care)
Executive Director Executive C. The organization is divided in four different functions.21
share is with the Indian counter-part.F.O Board of Dir
.As the company is very old so the company’s organizational structure is very well placed and the company has produced many successful business managers.E.
The company has non-executive Directors. Mashelkar Independent Director 8. Harish Manwani Chairman 2. Mr. Mr.
. Parekh Independent Director 5. Gopal Vittal Executive Director. D. A. Mr. Lovelock & Lewes and Mr.22
Each headed by a functional head. Mr. All these functional heads report to the chairman. A. Mr.O of the company respectively. R.E. Narayan Independent Director 6.E. The Board of Directors appoints the chairman and the C. Supply Chain 6 The external auditors for the company are M/s. Mr. Nitin Paranjpe are the Chairman and C. Dr. Home & Personal Care 9. Mr. Dev Bajpai is the
company secretary. Ramadorai Independent Director 7. The Board of Directors comprises of nine persons. S. Pradeep Banerjee Executive Director. S. Harish Manwani and Mr. Executive Directors as well as management committees which look into different operations. Mr. Sridhar Ramamurthy Executive Director.O. The different functions report to the vertical head as well as co-ordinate at the horizontal level. Nitin Paranjpe Managing Director and Chief Executive Officer 3. Mr. Finance & IT and Chief Financial Officer 4.
Pureit.20. The company is also working on new ice-cream formula which will have better taste and will contain low fat n high amount of fruits.8 per cent with competitive growth in both Laundry and Personal Wash. One major incident
happened in 2007 when the parent Unilever company acquired the majority stake (52%) and the name of company was changed to Hindustan Unilever Limited. Pureit now protects 4.10 cr in 2007 to Rs. In Food & Beverages company is focussing on products which are good to health and are good in taste. The company launched new products in various categories and this helped the company to grow its market. There was 13% volume growth overall. Water purifier brand. The business saw growth across all segments. It launched its tea brand Red Label with added vitamins which are helpful for good health. grew strongly and continued to expand its franchise with product offerings across multiple price points. The Foods business grew 13. Personal Products business grew strongly at 15.54.7 per cent.715.305.25
Organic: The Company grew organically through its own expansion and new launches. The company spends a good amount of its money in research & development. The company also focuses on reducing plastics used for packaging of its different products and in doing so they reduced plastics by 18% it in their deodorants and are continuously trying to reduce use of plastics. In Rexona deodorants a special molecule has been formed which kicks in stressful conditions as claimed by the company. New products which were launched also captured the market very well. Growth was broad based across categories with Skin Care delivering a particularly strong performance. Similarly company is also working on tooth brushes and company is soon going to launch new tooth brushes.
Initiative on Product & Market Development:
.4 per cent. In 2010 the company launched its water purifier (Pureit) which runs on battery (first time in India) as there is frequent power cut in India and acquired number one position in the market.5 million homes. Red Label tea was relaunched and continued to deliver double-digit growth. As India is focusing on preserving water for future as water will become scarce. Most of the segments saw good increase in their sales. The company focuses on sustainable growth. Similarly. The company also spends a lot of money so that it can develop better personnel and oral care products as the competition is increasing in this segment with many entrants although its products have highest market share in the market. The size of the
market increased and new products were introduced in the market.
Initiative on Research & Development: The Company has two research and development centres
in India. It went up from Rs.14. The company focuses on saving water as it will be scarce in quantity till 2030. The Home and Personal Care business grew by 9. in sync with India the company is working on developing detergents which uses less water so that water can be saved as a lot of water is wasted in washing clothes.
Inorganic: The Company did not have any merger or acquisition in previous 3-4 years. The company did not have any joint ventures with any other firm but plans to open so in the near future as the competition is increasing with more players coming in the market. Company maintained its growth rate in double-digit.
The company launched new flavours in ice-creams through its brand Kwality which won many awards. Wheel were re-launched.shelf availability backed by extensive merchandising and visibility. Thus. Company made rural women self-dependent as they use to sell the company’s product in the designated area. The Company always come up with its new innovations in its products which are better and easy to use.Reduce. The company’s brand Knorr tried to make a “soup time” among kids and also entered in the noodles market with Knorr soupy noodles. The Company also launched Kissan soya n Kissan spread in sauce and spread respectively. The company initiated its scheme that its product should be sold at every store. The Company increased its market penetration with the help of project Shakti in rural areas. different variants of Pureit were launched.26 1. Market Penetration: The Company grew through this matrix a lot.000 Shakti amma work under this project in different villages.
2. It was a horizontal diversification as it was focused on the same set of customers who already use the company’s product. Later on looking at the success. It launched Purit water purifier
which was different from its previous launches. Further Shakti-Maan was also launched after project Shakti Amma became hit. This project helped the company to grow at a very healthy rate. Pureit worked on a simple formula of giving boiled water. The company also plans to open Bru wold cafe on a pilot basis. It helped the company to exploit the uncaptured market of the village. The company also focused on reducing inventory and delivering fresh products. LifeBuoy. This project also helped in creating employment at the lower level. Life of many women and families changed through this project. Company also focussed on. motivating dealers to perform better. Pond’s Gold Radiance range were introduced.000 outlets in rural areas that tripled its reach in rural market.
4. The company also devised new tool for distributors which analyses the performances and reward them accordingly. Keeping an eye on water scarcity in the future both for consumption and for drinking Purposes Company looks to store water in its surrounding areas and also consume less water. It served the same old market.
The company re-launched many of its existing brands with new packaging and design. Company also launched many different variants of bread through its brand Modern Bread. 3. Greening Barriers:
Water Conservation and Harvesting:
HUL's Water Conservation and Harvesting project has two major objectives: To reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R . These made the company supplier of the year in 2010 by many retailers. As the figures show that this project” Shakti-Amma” played a very vital role in maintaining the double digit growth of the company. Diversification: Although the company launches it products in the same line. Reuse. Rin.00. The company follows TPM in the supply-chain department so that any damage is prevented. Around 23. Company added 6. The company made a specialised and dedicated sales team for top skin and cosmetic care which already existed in different product lines. Their schemes have been high point and earned them a good-will in the market. Recycle. Product development: New products were launched in these years but older ones also stayed in the
. The company also increased its presence by increasing the number of dealers. Market development: The Company did not serve any new market. New products like Cif. This also became part of their corporate social responsibility. Recover and Renew. In food business Kissan Nutrismart were launched. Pureit when launched captured the market and became leader in its category. Fair & Lovely eraser pen. Company has got a very vast distribution network so they are able to make the product available easily through their distributors.000 Shaktimaans and 60. Initiatives on Corporate Social Responsibilities: Company has been actively performing corporate social responsibility for long.
According to a study done by the London School of Hygiene and Tropical Medicine. NGO activists. Bihar. One of the unique aspects of the project was to form social capital by organizing villagers into pond association and empower them to execute the physical renovation work. LBSC was initiated in media dark villages (in UP. Rainwater harvesting storage of 22300 cu. SHAKTI . It specifically targets women from low-income groups in rural as well as urban India. rural women in India are underprivileged and need a sustainable source of income. Project Puducherry
In 2008-09. by equipping and training them to become an extended arm of the company's operation. as a brand. and improving living standards in rural India. NGOs.27
Company has launched detergents which clean clothes with lesser water. The pilot project has improved water availability in eight village ponds by harvesting monsoon run-off. Maharashtra. governmental bodies and other institutions have been working to improve the status of rural women. HUL's Puducherry unit partnered with DHAN Foundation. organised in Self-Help Groups (SHGs). However.50 267.50 2010-11 305.00 2009-10 253.00 395. Fair & Lovely. It seeks to empower underprivileged rural women by providing income-generating opportunities. which targets small villages with population of less than 2000 people or less.
Health & Hygiene Education Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative. the simple practice of washing hands with soap and water can reduce diarrhoea by as much as 47%. meter has fulfilled the multiple domestic needs of 4519 households in eight hamlets and 346 acres are now irrigated due to the rejuvenation of ground water. as its advisors. Madurai and identified eight village ponds for renovation to enhance the water availability. from various walks of life. West Bengal. and creating access to relevant information through the iShakti community portal. inputs and support in the areas of education. ignorance of such basic hygiene practices leads to high mortality rates in rural India. resources. career and enterprise. Orissa) with the objective of spreading awareness about the importance of washing hands with soap.(Surf Excel Quick Wash)
Help adjacent villages to implement appropriate models of watershed development. Among them are educationists. The Foundation is implementing its activities in association with state governments.80
. In general. Shakti is a pioneering effort in creating livelihoods for rural women. stands on the economic empowerment platform and the Foundation is an extension of this promise.
Market Standing: Event Opening price Highest price 2008-09 217. MP. Economic Empowerment of Women The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of women across India.50 288. physicians. It is estimated that diarrhoea claims the life of a child every 10 seconds and one third of these deaths are in India. health and hygiene education through the Shakti Vani programme. It aims to achieve this through providing information. The Foundation has renowned Indian women. The need for a program of this nature arose from the fact that diarrhoeal diseases are a major cause of death in the world today. Shakti provides critically needed additional income to these women and their families.Changing Lives in Rural India Shakti is HUL's rural initiative.
. We can see that the opening price at the start of the year was Rs. The opening price Rs 217.economictimes.50 is of 01st April 2008. The demand went down and there was an industry slowdown.com www.50
228. Company increased its sales and was in profit. 20010-11: The markets went to being normal and the sales as well as the share prices also went up.moneycontrol. The Company re-launched its brands like Rin. 253.00
www.hul. It also went up due to launch of new products by the company. The market value of the financial year also increased. Lifebuoy.in/innovation/ www.co.28
Lowest price Closing price
170.hul. 2009-10: In the next year the market started recovering and the share prices as a result went up. During the whole year the highest price per share went up to Rs 267.00.
SOURCE OF INFORMATION
• • • • •
2008-09: We can see that in 2008 the share price went down due to global recession. The Company stabilized itself well and still was in profit when its sales went down.50 and year’s high was at Rs 288.50.05 265.00 253.in www. The company launched its products like Cif which also captured the market. Rin again became leader in its category.co.00 393.
More organized distribution system and cold stores will help the company to sell its product. where they will sell bakery products in Big Bazar and name of both the companies will be there on the products. Company is focusing on those products which will consume lesser water. On 16-05-2011 company launched “India water body” which focuses on developing those products which consume less water so that more water can be saved. Surf Excel quick wash was a move in this direction. It will be sold with the brand name Modern. The initiative is a part of companies plan to strengthen their presence in food portfolio. In this they will get the wide selling networks of Big Bazar and the product can also be kept safely in the store so the extra cost for HUL will down in transportation.
Future Direction OF HUL HUL plans to launch global margarine brand in India
Company plans to launch global margarine brand in India. AS the company’s CEO in a recent interview said that there has been a change in the market with rise in income of people. The company will also launch other food item after this big launch. more working women. Initially the project will be started in selected cities and then it will be expanded in many cities. The Company also plans to enter into organized retails and want to increase its share in the total revenue by 20% -25% which is currently 6-7%. The company will also have to facilitate its retailers with appropriate cold storage machines and transportation facilities. Margarine is also 25%-30% cheaper than butter. As the company states that by 2030 there will be a huge water scarcity in India. fight for time in urban India and increased global awareness towards health and packaged food items. The Company will make it of their own and will sell through Big Bazar outlets only. Company is also entering into Bakery products along with future group. The company will have to fight with AMUL’s LITE which is present in the market for last twenty years. The Company is currently working on setting up distribution network across all its retailers as it will require different facilities such as cold chain. younger population willing to experiment.
The programme aims to drive consumer participation through a consumer incentive scheme.30
The Company is planning to enter high end of personnel care goods.” According to market research firm AC Nielsen. “There are lot of regional as well as national players operating in this segment. economic and environmental targets. Consumers who bring empty plastic bottles and pouches of any brands in five FMCG categories (tea pouches. the demand will increase in the near future The Company plans to introduce complete range of personnel products with a new brand name. CEO. Hindustan Unilever Limited is a subsidiary of Unilever. we have stood the ground all this while and will continue to do so. detergent powder pouches. It will not be easy to crack into this category.as the demand has increased with rise in income of the consumer and with more working women. This initiative builds on the Unilever Sustainable Living Plan. tooth paste tubes and ketchup pouches & pet packs) will be awarded discount coupons at the ‘easyday’ and ‘easyday Market’ stores in NCR. It sets out over 50 social. “Our margarine brand Amul Lite has been present in the market for the past 20 years. The “Go Recycle” programme will be promoted to consumers through in-store displays. The coupons can be redeemed at these stores to buy any products of the five leading Hindustan Unilever brands. The Unilever Sustainable Living Plan has set three big goals for Unilever to achieve by 2020:
Help more than one billion people improve their health and well-being Help the environmental impact of our products Source 100% of our agricultural raw materials sustainably
Nitin Paranjpe. namely Surf. Nestle India Ltd and Britannia Industries Ltd are well penetrated. the butter and margarine market is currently estimated at Rs688 crores. Some such as Amul (Anand Milk Union Ltd).” It will run for three months in all the 31 easyday and easyday Market stores across National Capital Region (NCR). This is a first-of-its kind initiative in India and is targeted to help reduce packaging waste and also inform and educate consumers to practice responsible consumption.” said Sodhi “It was launched around the same time when HUL brought Blue Band to India. While Blue Band was withdrawn. Hindustan Unilever Limited.” said Sameer Deshmukh. Dove. said. Red Label and Closeup. The Sustainable Living Plan aims to help everyone enjoy a good quality of life while respecting the planet. shampoo & conditioner bottles. “One of our key endeavors as part of the Unilever Sustainable Living Plan is to motivate consumers to take the small achievable
. HUL may not have a smooth sailing as the dairy segment is already too crowded.
This programme launched jointly by Hindustan Unilever Limited and Bharti Retail is called “Go Recycle. leaflets and mailers. Kissan.
HUL and Bharti Retail partner to promote consumer awareness on plastic Recycling. Even rivals such as Amul say the new product will have to compete with well-entrenched brands to establish itself. The Unilever Sustainable Living Plan decouples business growth from environmental impact. an analyst with Mumbai-based brokerage.
It will ensure that while consumers have the opportunity to improve their quality of lives through use of our products it will also reduce the environmental impact of this consumption.”
. With over 700 million consumers across India using our products we believe that such small actions by our consumers will result in a big difference to promote sustainable living.31 actions that add up to a big difference and enable us all to live more sustainably.