Chapter 1

Profile of the company

NATURE
Hindustan Unilever Limited (HUL) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products. 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 employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 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 harbor and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products. 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.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

Vision and Mission

VISION 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, 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.

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. We've always believed in the power of our brands to improve the quality of peoples lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

Mission
We work to create a better future every day We help people feel good, 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. We will develop new ways of doing business with the aim of doubling the size of our Company while reducing our environmental impact.

Present leadership
Chairman - Harish Manwani Managing Director and Chief Executive Officer - Nitin Paranjpe Executive Director, Supply Chain - Pradeep Banerjee Independent Director A. Narayan , S Ramadorai , R A Mashelkar , O P Bhatt SWOT ANALYSIS Strength 1) R&D and marketing strategy. 2) Project SHAKTI creating brand awareness in rural India. 3) New division called HLL network. 4) Growth more in the FMCG products. 5) New sales organization called ONE HLL.

WEAKNESSES 1) Market myopia lead to the market stagnation. 2) Low raw material cost high priced products. 3) Inability to transfer the strategy at the right time.

OPPORTUNITY
1) 2) 3) 4) 5)

Tap rural markets and increase penetration in urban areas. Mergers and acquisitions to strengthen the brand. Increasing purchasing power of people thereby increasing demand. Large domestic market over a billion populations. Expansion of horizon outside Asia.

THREATS 1) Loosing market share due to new entrants. 2) ITC Limited is one of the biggest threat for the Hindustan Unilever. 3) Removal of import restriction resulting in replacing of domestic brands. 4) Competition from unbranded and local products. 5) Intense and increasing competition amongst other FMCG products.