By

Kavya.C
(1891025)
COMPANY PROFILE
HISTORY OF THE COMPANY
COMPETITIORS
MICRO AND MACRO ANALYSIS
PESTEL
SWOT ANALYSIS
CONCLUSION
 INCORPORATION : 1933 as Lever Brothers Limited
 PREDECESSOR : Hindustan Vanaspati Manufacturing
Company (1931-1956)
Lever Brothers India Limited
(1933- 1956)
United Traders Limited
(1935-1956)
Hindustan Lever Limited
(1956-2007)
 NET INCOME : 4,490 crore (US$630 million)
(2016-17)
 CEO : Sanjiv mehta
 AMBASSADOR : Shahid Kapoor and Priyanka Chopra
 HEAD QUATORS : Andheri, Mumbai
 HUL is India's largest Fast Moving Consumer Goods company
with a heritage of over 85 years in India.
 The Company has about 18,000 employees and has a sales of
INR 34,619 crores (financial year 2017-18).
 1888 - Sunlight soap introduced in India.
 1986- Agri-products unit at Hyderabad starts functioning first
range of hybrid seeds comes out.
 1995-The Company received the President's Award for
Outstanding performance in Agri-Commodities.
 2000-The Company has launched an innovative scheme with
gold coins embedded in tablets of its Lux brand of soap.
 2015-HUL launches ‘Swachh Aadat, Swachh Bharat’
programme in India.
 2016-HUL recognized among Top 10 Best Companies 2016
for Women.
 2017-Hindustan Unilever Ltd develops new technology to
reduce plastic waste.
 HUL wins at CII National Food Safety Award 2017.
 Indian Tobacco Company (ITC)
 Nestle India
 Dabur India
 AMUL
 Asian Paints (India)
 Cadbury India
 Britannia Industries
 Procter & Gamble Hygiene and Health Care
 Marico Industries
 FMCG sector started early in 20th century, procter & Gamble
is the first FMCG industry founded in 1837.
 Market size of FMCG in India is estimated to grow from
US$ 30 billion in 2011 to US$ 74 billion in 2018.
 Food products leads the segment with 43 per cent of the
overall market whereas personal care (22 per cent) and fabric
care (12 per cent) comes next in terms of market share.
 HUL is the leading FMCG in 2018. The highlight of the
quarter was sustenance double digit volume growth at 12%
in the domestic business.
 The FMCG industry growth rate was 12.5% in terms
of moving annual total in June 2018.
 In India has enacted policies aimed at attaining
international competitiveness through lifting of the
quantitative restrictions, reduced excise duties, automatic
foreign investment and food laws resulting in an
environment that foster growth.
 The Indian government has abolished licensing for almost
all food and agro processing industries.
 Urban segment accounted for a revenue share 55% in overall
revenues recorded by FMCG sectors.
 At present Nestle is first position in FMCG Sectors.
 The FMCG sector has grown from US $31.6 billion in 2011
to US $52.75 billion in 2017-2018.
 Compound annual growth rate 27.86% to US $103.7 billion
by 2020.
 With the retail inflation consistently below 3 % and crude oil
prices below $50 the benefits of low inflation is getting
transmitted into better economics for FMCG companies
 POLITICAL FACTORS
Taxation structure: Complicated tax structure, high in
direct tax and changing tax policies are challenges for this
sectors.
Policy framework: FDI into retail sector (single-brand &
multi-brand retail), license rules in setting up of industry,
changes in statutory minimum price of commodities are
barriers for growth of this sector.
 GDP Growth: Growth of FMCG industry is consistent
with the Indian economy. It has grown by 15% over past 5
years. It shows good scope for this sector in near future.
 Inflation: Inflationary pressures alter the purchasing power
of consumer which Indian economy is facing in recent
years. But it has not affected much to Indian FMCG sector.
 Consumer Income: Over the past few years, India has seen
increased economic growth. The GDP per capita income of
India increased from 797.26 US dollars in 2006 to 1262.4
US dollars in 2014.It resulted in increase of consumer
expenditure.
 Private consumption: The Indian economy, unlike other
economies, has a very high rate of private
consumption(61%)
 Change in consumer profile: Rapid urbanization, increased
literacy, increase in nuclear families and rising income, have
all caused rapid growth and change in demand patterns,
leading to an explosion of new opportunities. Around 45% of
the population in India is below 20% of age and the young
population is set to rise further.
 Rural focus: As market is getting saturated, companies are
focusing on rural area for penetration by providing consumers
with small sized or single-use packs such as sachets.
 Change in Lifestyle: In past decade changes are taking
place in consumption pattern of Indian consumer with more
spending on discretionary (52%) than necessities (Ex: food,
clothings). In last decade the apparel, footwear and
healthcare segments have registered highest growth
whereas essentials such as cereals, edible oil, fruits and
vegetables shown decline.
 Effective use of technology is seen only in leading companies
like HUL, ITC, Nestle, P&G etc.
 E-Commerce will boost FMCG sales in future. More than
150 million consumers would be influences by digital by
2020 and they will spend more than $45 billion on FMCG
categories.
 These FMCG manufacture products from raw materials that
are grown in the fields and are result of agricultural activities
in the region, therefore they are careful in protecting and
preserving the environment.
 Some of the efforts include setting up of green houses, use
of herbal waste, supporting rag pickers, establishing green
buildings and procedures that are green, minimize
consumption of clean and fresh water.
 The constraint on energy is reduced by using alternative
sources of energy like herbal waste.
 Government also has made some anti dumping laws which
prohibits manufacturing facilities to contaminate any clean
source of water flow.
 STRENGTHS
 HUL is a brand equity and it has over 18000 employees.
 It reach 6.4 million retail outlets which includes direct
reach to over 1.5 million retail outlets.
 Products with presence in over 20 consumer categories
with over 700 million Indian consumers using its products.
 HUL has initiatives like project Shakti, plastic recycling,
women empowerment.
 WEAKNESS
 Market share is limited due to presence of other strong
FMCG brands
 Hindustan Unilever faced controversies like skin
lightening creams, pollution etc
 Stiff competition with domestic and international brands.
 Inability to transform its strategies at right time.
 OPPORTUNITY
 HUL can tap rural markets and increase penetration in
urban areas.
 Mergers and acquisitions to strengthen the brand.
 Increasing purchasing power of people thereby increasing
demand.
 Expansion of horizon outside Asia.
 THREATS
 Intense and increasing competition amongst other FMCG
companies can affect business of HUL.
 FDI in retail thereby allowing international brands.
 Competition from unbranded and local products can
hurt Hindustan Unilever's market.
 They are big on positive image, helping consumers live better
lives, and meeting demands for products.
 ‘One HUL’ brings “Household and Personal Care” and foods
distribution networks together, thereby aligning all the units
towards the common goal of achieving success.
 It has been continuously able to grow at a rate more than
growth rate for FMCG Sector, thereby reaffirming its future
stronghold in Indian market.
Thank You