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Unilever in India
Doug Baillie
Group Vice President, South Asia
Unilever
Mumbai
14th November 2007
Overview
India opportunity
~ 29 states
~ Diverse language and culture
Population 1129 Mln
~ US$ 1trln economy 5,545 Towns 2.5 Mln outlets
Turnover (US$m)
2961
690
503 396 320 314 307 273 254 180
Unilever Nestle Britannia Dabur Marico P&G Colgate GSK Tata Tea Godrej CP
Combined
2006 TTM Turnover –Source: Audited Reports and Company Press release
P&G Turnover is the combined Turnover of its listed entity together with its estimated turnover of its unlisted entity
Sales growth trend
12.7 12.8
4.8
3.7 3.6
0.3
-0.5
Operating margin
20.1%
19.3%
15.5%
14.7%
14.1%
13.2% 13.3%
37.0 36.8
30.0 30.9
26.9
24.3 23.4
20.2
13.2 14.1
10.2 8.6 7.4 5.1
Fabric Personal Dishwash Skin Shampoo Talcum Packet Coffee Jams Toothpaste Ketchups
Wash Wash Powder Tea
Agenda
Overview
India opportunity
Video
Sustained 8% + growth
%
12 851
Rising GDP and Per Capita Income
800
730
8 o wth GDP ($ Bln)
Gr 634
% Per Capita Income ($)
7-9 600
rowth 553
4 3-4% Growth 5-6% G
441 467
423
400
0
58 62 66 70 74 78 82 86 90 94 98 02 06
-4 200
-8 0
1960- 1980 1980- 2000 2000-2006 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
300
200
India
100
0
0 1000 2000 3000 4000 5000 6000 7000
Per capita Disposable Income (US$)
20% Skin
Tea
Hair Wash
16%
672
466 Oral 912 Personal Wash Laundry
12%
907
8%
1522 1972
4%
0%
Size of Market US$m.
India - 2013
2003 2013
181 mn hhlds 231 mn hhlds
3 Affluent 11
46 Aspirers 124
131 Strivers 96
0.8 3.2
5.9 0.3
0.2 1.0 3.0
India
India Indonesia China Brazil USA Germany
India
India Indonesia China Brazil Germany USA
Source : Euromonitor, 2006
3.8
75
2.3
37
21 19
6 14
Eastern Europe Latin America Africa and West India
Asia
Packaged,
5% $ 14 Billion
Unpackaged/ Fresh,
95% $ 275 Billion
Agenda
Overview
India Opportunity
Non
Core
Business
One
DIVESTED Company One Top Team
AFS
35 Global
Quest Leading Innovation; Local
110 Brands Powerful positions Activation
Adhesives Brands
Nickel One Sales Force
Catalyst High
Seeds growth
Diversey spaces Non Core
Lever Processes
Outsourced
Oils & Fats
Mushrooms
2000 2004
Portfolio straddling the pyramid
Case study : Laundry
Laundry Current
Market Size $ 1773 M.
Affluent
Unilever share 37.0%
No.2 Share 13.2%
Aspiring
Striving
Recognition
45 42 42 42
40
39 39
40
35 SSK Black 8m
35 Rural plan
31
30 27
23
25 21 Rollout of Rs 1 (2 cents)
20 and Rs 0.50 (1 cent)
sachets
15
MQ 04 JQ 04 SQ 04 DQ 04 MQ 05 JQ 05 SQ 05 DQ 05 MQ 06 JQ 06 SQ 06
z Some achievements:
• Single Shot Soap making process
• Skin Lightening Cream
• Non Soap Detergent Bars
• Poly coated Dish Wash Bar
• Drinking water purifier (Pure-It)
R&D achievements
Total population
Distribution Strength
1.1
(In Bln.) Direct coverage – 1milllion outlets
Number of Retail Brands reach – 6.3 million outlets
7.74
Stores (Mlns)
Strong IT capability, end to end
FMCG Market connectivity
16448
(Annual, $ Mln)*
Urban : Rural Ratio 67:33 Unique channel Initiatives to Win at
“Point of Purchase”
FMCG Growth
11
(Value %) Portfolio of category and Brands
Store Density give unique reach in Modern Trade
(Stores Per 1000 6.8
People) Project Shakti, a competitive
Per Capita FMCG advantage in Rural India
14.5
Spend (Annual,$)
End 2008
GT MT
NSD Bars NSD Shampoo Skin Skin Care Tooth Tea Coffee Overall
Powders Cleansing Paste
SEASONINGS
DRESSINGS
Sanitary napkins
WINE
Dish Wash
DIAPERS
Tooth brush
Paper pdts
OIL
SOUP
Soap
Toothpaste
Hair
Tea
Coffee
PASTA SAUCE
SAUCE
BAKERY
LAUNDRY
DELI
SNACKS
DEO
Skin
CHECKOUTS
Custards and jelly
Jams, Squashes
Cosmetics
Project Shakti- Enabling direct rural reach
• To Reach:
• Small, scattered settlements and poor
infrastructure make distribution difficult
• Over 500,000 villages not reached directly
by Unilever
• To Communicate:
• Low literacy hampers effectiveness of print
media
• Poor media-reach: 500 million Indians lack
TV and radio
• To Influence:
• Low category penetration, consumption,
brand awareness
• Per capita consumption in Unilever
categories is 33% of urban levels
Shakti
Three Shakti initiatives
• Shakti entrepreneur; currently ~ 42000 women
cover 1,23,000 villages
• Shakti Vani: one-to-many communication for
category growth
• iShakti: customized interaction with remote
consumers
Impact on community
• Business and social impact can go together
• Partnerships with diverse stakeholders
SWASTYA CHETNA
Diarrhoea – Kills a child LSHTM* Study - Washing
every 10 secs - 33%(1 mn) hands with soap and water
of these deaths are in India reduces diarrhoeal diseases
by 47% * London School of Hygiene &
Tropical Medicine
2002- Cum.
Results
2006 2007
No of villages
27800 40000
contacted
No. of people
80 140
contacted (mn)
Global
GlobalRank
Rank #4
#4
Rank
RankininAsia
Asia #1
#1
Rank
RankininIndia
India #1
#1
2007 Rankings
Most Respected Company Ranks
Most
Mostrespected
respectedcompany
rank
rank(2006
company
rank::17
(2006rank 17))
#9
#9
Most
Mostrespected
respectedFMCG
FMCG #1
#1
Most
Mostrespected
respectedMNC
MNC #2
#2
Agenda
Overview
India Opportunity
z Leverage the impact on the consumer from the growing Indian eonomy
Thank You
Accelerating change
Unilever in India
Doug Baillie
Group Vice President, South Asia
Unilever
Mumbai
14th November 2007