HIND STAN

Group 9​
AGENDA
1. The Company
2. External Analysis/Internal Analysis
3. ​Strategic Group Map
4. ​Financials
5. Organizational Structure
6. Value Chain
7. Recommendations
 3

INTRODUCTION
Hindustan Unilever Limited (HUL) is a subsidiary of Unilever and one of India's
largest consumer goods companies

HUL's vision is to "Create a Better Future Every Day“

It is headed by Mr. Sanjiv Mehta, and in 2021, the company reported a net profit of
INR 8,925 crore, up 18.8% from the previous year. Its revenue for the year was INR
45,311 crore, up 10.3% from the previous year
EXTERNAL ANALYSIS
PESTEL
Porter’s Five Forces
Opportunities & Threats
PORTERS’ 5 FORCES
ANALYSIS 5
PESTEL ANALYSIS
6
INTERNAL ANALYSIS
Strengths & Weaknesses
VRIO Analysis
VRIO ANALYSIS
8

Competitive
Valuable Rare Inimitable Organized Advantage

Local Food

Distribution

Financial Resources

Employees

Patents
STRATEGIC GROUP
MAP
 10

The strategic group mapping shown above highlights the market in which HUL operates, the grouping was done
with Revenue CAGR vs Profit Margin. Although it might seem as though HUL is operating in a rather cluttered
market; with its strong brand reputation and one of the best distribution networks of any organization in India,
HUL need not worry about being challenged for their market leader position.
 Plan 11

VALUE CHAIN ANALYSIS

Deliver Source

Market Make

INBOUND OPERATIONS OUTBOUND MARKETING LAUNCH

LOGISTICS
- Strong relationship
with vendors (UPWP)
- Partnership with
Mahindra Logistics and
farmers.
LOGISTICS & SALES
- Just-in-time delivery,
real-time info, - Unique selling
Kaizen, Total Quality characteristics of the
- Reimagine HUL, brands Intelligent consumer
Management (TQM),
Livewire, Shikhar goods enterprise
and cost-optimization - Marketing funnel
- Penetration in rural
method
areas
 12

“ OUR VISION WOULD BE THAT

WHAT YOU SELL TODAY, WE

”
MANUFACTURE TOMORROW
Sanjiv Mehta, CEO
FINANCIALS
 14
HUL has seen a mix of negative and positive net cash flows during the period of 10 years. However, the company has
positive cash flows from operations during this period implying that company is able to generate cash flows from its
core operations and can meet day to day expenses necessary to earn revenue. It is also an indication that company can
undertake investments, pay dividends to shareholders, and attract outside investment. The company has been
investing in new equipments/fixed assets and undertaking new investments which can be demonstrated by negative
cash flow from investing activities. The company is also utilising its cash reserves to pay dividends to shareholders
and thereby generating return on the investments made by them. This is an indication of company's strength and a
sign that management has positive expectations for future earnings, which again makes the stock more attractive.

Cash Flows
15000

10000

5000

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
-5000

-10000

-15000

CFI CFO CFF

source: ACE Analyser
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CASH FLOW STATEMENT

PEER BENCHMARKING
ORGANIZATIONAL
STRUCTURE
 17

HUL has a Divisional

Organizational Structure,
wherein, the employees are
assigned to functional roles
based on the different
Product/Service lines that the
company offers

Divisional structures enable

businesses to concentrate on
particular consumer segments
or product lines it but can
result in resource and effort
duplication. Having separate
accounting, human resources,
and information technology
departments for each division
can be expensive and
ineffective.
 18

MARKETING
STRATEGY
 Middle-Class Soul
 Leveraging the power of purpose
 Shaping categories of the future
 Winning in Many Indias
 19

WHAT HAS HUL BEEN UP TO?

2018 2019 2020 2021 2022

-Relaunch of Lever -Sustainability -Acquisition of Vwash -Acquisition of -Digital platform for

Ayush range initiatives: eco-friendly -Merger with GSK Indulekha professional cleaning
-Acquisition of Adityaa packaging for its Ayush -Internal restructuring products: Upro
Milk range --Launch of SmartFill -1st FMCG to hit Rs
-New factory in Assam Machines 50K Cr. business
-Plan to expand in rural
areas

RECOMMENDATIONS
SUPPLY CHAIN
SUSTAINABILITY
• Source raw materials
sustainably
• Energy efficient operations
• Waste reduction
• Ethical labour practices
• Supply chain transparency
• Collaboration with suppliers
20
INNOVATIVE STRONGER D2C BRAND REPUTATION
PRODUCT PRESENCE The company's brand
OFFERINGS reputation is critical to its
• Double down on its success. Hindustan Unilever
• Understanding changing already existing e- has a strong brand portfolio
consumer preferences commerce platforms that resonates with
• Personalization and • Invest in Digital customers,
customization marketing Must invest in advertising
• Incorporating technology, • Data analytics for targeted and marketing spend to
like Metaverse marketing maintain and enhance its
brand value
THANK YOU
​