HINDUSTAN UNILEVER LIMITED

Submitted by:-
DEEPAK Kumar
Roll no 009
PGDM (2010-12), JKBs
 HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited

• Type Public company

BSE:HUL
• Industry Fast Moving
Consumer Goods
FMCG)
• Founded 1933
• Headquarters Mumbai, India
• Key people Harish
Manwani
(Chairman), Nitin
Paranjpe (CEO and
Managing Director)
• Products Home &
Personal Care,
Foods, Water
Purifier
• Revenue 20,869.57
crore (US$ 4.53
billion) (2008-2009)
[1]

• Employees Over 65,000

direct & indirect
employees
• Parent Unilever Plc
• Website www.hul.co.in
 HINDUSTAN UNILEVER LIMITED

ABOUT COMPANY
Hindustan Unilever Limited (HUL) is India's largest fast consuming
company. 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”.

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. It estimates that two out of three
Indians use its many home and personal care products, food and beverages.

OUR 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,
keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying
meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for
the company –

• 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.
 HINDUSTAN UNILEVER LIMITED
• We will develop new ways of doing business with the aim of
doubling the size of our company while reducing our
environmental impact.

COMPANY HISTORY
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of
Sunlight soap bars, embossed with the words "Made in England by Lever
Brothers". With it, began an era of marketing branded Fast Moving Consumer
Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous

brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous
Dalda brand came to the market in 1937.

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.
 HINDUSTAN UNILEVER LIMITED
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.
 HINDUSTAN UNILEVER LIMITED
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 2000’s.
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.
 HINDUSTAN UNILEVER LIMITED

COMPANY STRUCTURE
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods
(FMCG) Company. It is present in Home & Personal Care and Foods & Beverages
categories. HUL has about 15,000 employees, including over 1400 managers

The fundamental principle determining the organization structure is to infuse

speed and flexibility in decision-making and implementation, with empowered
managers across the company’s nationwide operations.

Board of Directors

The Board of Directors as repositories of the corporate powers act as a guardian

to the Company as also the protectors of shareholder’s interest.

Director A Narayan
Director D S Parekh
Vice Chairman D Sundaram
Director Dhaval Buch
Director Gopal Vittal
Chairman Harish Manwani
Managing Director Nitin Paranjpe
Director Pradeep Banerjee
Director R A Mashelkar
Director S Ramadorai
Director Sridhar Ramamurthy
 HINDUSTAN UNILEVER LIMITED

HUL IN INDIA:-PRODUCT
A) HOME AND PERSONAL CARE:
1) Personal wash
Lux Breeze
Lifebuoy Dove
Liril Pears
Hamam Rexona

2) Laundry 3) Skin Care

Surf Excel Fair and lovely
Rin Pond’s
Wheel Aviance

4) Hair care 5) Oral care

Sunsilk naturals Pepsodent
Clinic Close up

6) Deodorants 7)Colour
Cosmetics
Axe Lakme
Rexona

8)Ayurvedic Personal and health care:Ayush

B) FOODS
1) Tea 2) Coffee 3) Foods 4) Ice
cream
Brooke Bond Brooke Bond Bru Kissan Kwality
walls
Lipton Knor
Annapurna
C) WATER PURIFIER
Pureit.
 HINDUSTAN UNILEVER LIMITED

Brands:--

Wheel Detergent ad in rural Nepal area.

HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. Sixteen of HUL’s
brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands
Annual Survey (2008).According to Brand Equity, HUL has the largest number of
brands in the Most Trusted Brands List. It has consistently had the largest number
of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35
major Indian brands.Its brands include Kwality Wall's ice cream, Knorr soups &
meal makers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam and Moti soaps,
Pureit water purifier, Lipton tea, Brooke Bond (3 Roses, Taj Mahal, Taaza, Red
Label) tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf,
Rin and Whelel laundry detergents, Kissan squashes and jams, Annapurna salt and
atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams, Lakmé
beauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos,
Vim dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe deosprays and
Comfort fabric softeners.

Leadership
HUL has produced many business leaders for corporate India; one of these,
Manvinder Singh Banga, has become a member of Unilever's Executive (UEx).
HUL's leadership-building potential was recognized when it was ranked 4th in the
 HINDUSTAN UNILEVER LIMITED
Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking
ahead of HUL in the ability to produce leaders with such regularity.

Present Stature
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer
goods company, and estimates that two out of three Indians use its products. It has
over 42 factories across India.

HUL is also one of the country's largest exporters; it has been recognized as a
Golden Super Star Trading House by the Government of India.[citation needed]

The Hindustan Unilever Research Centre (HURC) was set up in 1967 in

Mumbai, and Unilever Research India in Bangalore in 1997. Staff at these centre
developed many innovations in products and manufacturing processes. In 2006, the
company's research facilities were brought together at a single site in Bangalore.

HUL also renders services to the community, focusing on health & hygiene
education, empowerment of women, and water management. It is also involved in
education and rehabilitation of underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded to national
calamities, for instance with relief and rehabilitation after the 2004 tsunami caused
devastation in South India.

In 2001, the company embarked on a programmed called Shakti, through which

it creates micro-enterprises for rural women. Shakti also includes health and
hygiene education through the Shakti Vani Programme, which now covers 15
states in India with over 45,000 women entrepreneurs in 135,000 villages. By the
end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000
villages, touching the lives of over 600 million people. HUL is also running a rural
health programme, Lifebuoy Swasthya Chetana. The programme endeavors to
induce adoption of hygienic practices among rural Indians and aims to bring down
the incidence of diarrhoea. So far it has reached 120 million people in over 50,000
villages.
 HINDUSTAN UNILEVER LIMITED

Controversy

Mercury pollution
In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was
accused of dumping glass contaminated with mercury in municipal dumps, or
selling it on to scrap merchants unable to deal with it appropriately.

Skin lightening creams

Hindustan Unilever's fair and lovely is the leading skin-lightening cream for
women in India. The company was forced to withdraw television advertisements
for the product in 2007. Advertisements depicted depressed, dark-complexioned
women, who had been ignored by employers and men, suddenly finding new
boyfriends and glamorous careers after the cream had lightened their skin.[13] In
2008 Hindustan Unilever made former Miss World Priyanka Chopra a brand
ambassador for Pond's,[14] and she then appeared in a mini-series of television
commercials for another skin lightening product, White Beauty, alongside Saif Ali
Khan and Neha Dhupia; these advertisements were widely criticised for
perpetuating racism.

SWOT ANALYSIS:--
STRENGTH
 Variety of products
 Distribution Network
 Brand image
 Quality Management
 Innovation and R&D strength
 HINDUSTAN UNILEVER LIMITED

THREATS
 From High Class Competitor

 Proctor & Gamble

 Pantene
 Babool
 Dabourlal Dent Manjan
 Reckitt Benckiser
 Dettol
 Palmolive
 Colgate, Nirma

OPPORTUNITIES
 Huge Market
 Increasing per capital income
 Increasing consumption pattern
 Potential for making more impact of brand image.
 Coming in technology e.g. in water purifiers

WEAKNESS
 Not able to compete with local competitor in the rural
market
 Not focus on upper class population
 HINDUSTAN UNILEVER LIMITED
 Pricing policy is not good

Principal Subsidiaries
Bon Limited; Daverashola Tea Company Limited; Hindlever Trust Limited;
Indexport Limited; Indigo Lever Shared Services Limited; International Fisheries
Limited; KICM (Madras) Limited; Kimberly-Clark Lever Private Limited (50%);
Lever India Exports Limited; Levers Associated Trust Limited; Levindra Trust
Limited; Lipton India Exports Limited; Merryweather Food Products Limited;
Modern Food and Nutrition Industries Limited; Modern Food Industries (India)
Limited; Nepal Lever Limited (Nepal) (80%); Ponds Exports Limited; Quest
International India Limited (49%); Thiashola Tea Company Limited; TOC
Disinfectants Limited.

Principal Competitors
 Nirma Ltd.;
 Jocil Ltd.;
 Nahar Industrial Enterprises Ltd.;
 Shrihari Laboratories P Ltd.;
 Ruchi Infrastructure Ltd.;
 Procter & Gamble Hygiene and Healthcare Ltd.;
 Amrit Banaspati Company Ltd.;
 Henkel SPIC India Ltd.;
 K S Oils Ltd.;
 Ultramarine and Pigments Ltd.;
 Vashisti Detergents Ltd