Introducing Unilever

No matter who you are, or where in the world you are, the chances are that our products are a familiar
part of your daily routine. Every day, around the world, people reach for Unilever products.

Unilever today
Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one
of the world's most successful consumer goods companies. In fact, 150 million times a day, someone
somewhere chooses a Unilever product.

Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands.
We create, market and distribute the products that people choose to feed their families and keep
themselves and their homes clean and fresh.

People's lives are changing fast. As the way we all live and work evolves, our needs and tastes change
too. At Unilever we aim to help people in their daily lives. So we keep developing new products,
improving tried and tested brands and promoting better, more efficient ways of working.

We have a portfolio of brands that are popular across the globe - as well as regional products and local
varieties of famous-name goods. This diversity comes from two of our key strengths:

• Strong roots in local markets and first-hand knowledge of the local culture.
• World-class business expertise applied internationally to serve consumers
everywhere.

Focusing on performance and productivity, we encourage our people to develop new ideas and put
fresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the
communities we serve. We don't only measure success in financial terms; how we achieve results is
important too. We work hard to conduct our business with integrity - respecting our employees, our
consumers and the environment around us.

Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are some recent
highlights from our three global divisions - Foods, home care and personal care.
Foods:-

• The acquisition of Bestfoods in 2000 brought us leadership in the culinary category. Knorr is
now our biggest brand, with €2.3 billion sales in over 100 countries and a product range
covering soups, bouillons, sauces, noodles and complete meals.
• We are the number one producer of frozen foods in Europe, under the Findus brand in Italy,
Birds Eye in the UK and Iglo in other European countries.
• We are the category leader in margarine and spreads in most European countries and North
America, with brands such as Becel (the Netherlands), Flora (UK) and Take Control (US). We
have met consumer demand for healthy foods by launching pro.active, a spread which contains
ingredients that can help reduce cholesterol levels.
• In the branded olive oil category we are a leader, the most important brand being Bertolli.
Appealing to consumers' taste for Mediterranean food, we have launched Bertolli pasta sauces
and dressings.
• We are the world's leading ice cream producer, with brands such as Algida and Wall's in
Europe, and Ben & Jerry's in the United States. Innovations such as Magnum snack-sizes and
Cornetto miniature and multi-packs have sparked progress.
• We are the largest seller of packet tea in the world through our Lipton and Brooke Bond
brands.

Home & personal care:-

• We lead the home care market in much of the world, which includes cleansing and hygiene
products.
• Many of our home care products are market leaders including Brilhante, Cif, Comfort,
Domestos, Omo, Skip and Snuggle.
• Within the personal care market, we are global leaders in products for skin cleansing,
deodorants and antiperspirants.
• Our global core brands in the personal care market are Axe, Dove, Lux, Pond's, Rexona and
Sunsilk.

HISTORY
Unilever was formed in 1930 when the Dutch Margarine Company Margarine Uni merged
with British soap maker Lever Brothers. Companies were competing for the same raw materials, both
were involved in large-scale marketing of household products and both used similar distribution
channels. Between them, they had operations in over 40 countries.

Margarine Unie grew through mergers with other margarine companies in the 1920s. Lever
Brothers was founded in 1885 by William Hesketh Lever. Lever established soap factories around the
world. In 1917, he began to diversify into foods, acquiring fish, ice cream and canned foods
businesses.
 In the Thirties, Unilever introduced improved technology to the business. The business grew
and new ventures were launched in Latin America. The entrepreneurial spirit of the founders and their
caring approach to their employees and their communities remain at the heart of Unilever's business
today.

Unilever NV and Unilever PLC are the parent companies of what is today one of the largest
consumer goods businesses in the world. Since 1930, the two companies have operated as one, linked
by a series of agreements and shareholders that participate in the prosperity of the whole business.
Unilever's corporate centers are London and Rotterdam.
Margarine Uni and Lever is taken for Unilever. Its head quarter was established at
England and Rotterdam. Unilever has 500 operating companies in 100 countries. It has 0.3 million
employees and turnover of sales in 23000 million pounds. The global business proportion is 60%
in Europe, 20% in North America and 20% in Rest of the world. An identical board of directors
controls the activities of subsidiary companies throughout the world.

Unilever Pakistan history

In the world of consumer products Unilever Pakistan has created an indelible name for itself with
brands such as Lifebuoy, Lux, Surf and Walls.

Unilever Pakistan Limited needs no introduction

By far the largest consumer products company in Pakistan, UPL is a part of the consumer products
giant Unilever.

UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar
Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL
manufacturing facility developed.

Now a force to be reckoned with

Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic
development cannot be overestimated. Now operating six factories at different locations around the
country, the company contributes a significant proportion of the country's taxes. It employs a large
number of local managers and workers. It provides a pool of well-trained and highly motivated
manpower to other segments and has introduced new and innovative technologies into the country.
The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this
time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated
near the factory is the home of UPL employees at Rahim Yar Khan.

Introduction of Rahim Yar Khan Factory

Rahim Yar Khan Factory is situated on Shahbaz Pur road Rahim Yar Khan (Punjab). It is the
largest production unit of Unilever in Pakistan. At the time of establishment of Unilever Pakistan the
head office of the company was in Rahim Yar Khan. Subsequently in 1966 the head office was shifted
to Karachi. Production of ghee was started in R.F but now ghee is not produced in R.F due to certain
reasons.

DEPARTMENTS IN R.F:-
The company has employed approximately 525 persons including management & non-management
staff. Following departments are in operation in R.F Main Office.

♦ Buying department
♦ Human Resource Department
♦ Planning department
♦ Costing department
♦ Finance department
♦ Payment department
♦ Cash office
♦ Wages & salaries department
♦ Business Support Department
♦ Administration department

Unilever Pakistan Ltd is a wholly owned subsidiary of Unilever Overseas Holding, UK,
Unilever PLC (a company incorporated in the United Kingdom)
 The company is incorporated in Pakistan and listed on the Karachi, Lahore and Islamabad stock
exchanges. It manufactures and markets foods, beverages, detergents and personal products.
AUDIT COMMITTEE
Mr. Fatehali W. Vellani
Chairman

Mr. Zaffar A. Khan

Member

Mr. Omar H. Karim

Member

Mr. Ayub Vohra

Head of Internal Audit & Secretary

AUDITORS
A.F. Ferguson & Co.
State Life Building No. 1-C
I.I. Chundrigar Road
Karachi.
REGISTERED OFFICE
Avari Plaza
Fatima Jinnah Road
Karachi - 75530
Telephones: +92-21-5660062-9
Facsimile: +92-21-5681705

SHARE REGISTRATION OFFICE

C/o. Ferguson Associates (Pvt.) Ltd.
State Life Building No. 1-A
I.I. Chundrigar Road
Karachi.
WEBSITE ADDRESS
www.unileverpakistan.com.pk
COMPANY BANKS
Abn –Amro bank Karachi
Grindllays bank ltd. Karachi
Grindllays bank ltd. Lahore
Muslim commercial bank Rahim Yar Khan
National bank of Pakistan ltd. Rahim Yar Khan

PRODUCTION UNITS OF UNILEVER IN PAKISTAN

UNITS LOCATION

HPC Factory Rahim Yar Khan (RF)

Tea Factory Karachi (KTF)

Tea Factory Khanewal (KHWTF)

Ice cream Factory Lahore (ICF)

Unilever Pakistan Best foods Limited Faisalabad (UPFL)

BRANCH OFFICES

Ice cream metropole Lahore

Consumer interaction center Karachi (Lever Raabta)
Branch office shafic court Karachi
Branch office Islamabad
Branch office Lahore
Branch office Multan
 Organizational Chart Of HPC Factory
Rahim Yar Khan

HPC Head
Shahab Muhammad Ali

Fundamentals of Organization
We often begin to describe a firms Structure by looking at its Organization Chart.
Organizational Chart:-
The reporting structure and division of labor in an organization is called Organizational Chart.
The above chart provides a picture of reporting structure (who reports to whom) and the various
activities that are carried out by different individuals.
Note that organizational chart give various kinds of information that are conveyed in a very simple
way:
1. The boxes represent different work.
2. The titles in the boxes show the work perform by each unit.
3. Reporting and authority relation ship are indicated by solid lines showing superior-subordinate
connections.
 4. Levels of management are indicated by horizontal layers in the chart. All the persons or units
that are of the same ranks and report to same person are on one level.
5. The solid lines are called functional lines and they report to works manager and the doted lines
are called operational lines and they report to their own head. This would be someone in an
organization.

There are two fundamental concepts around which organization is structured is differentiation and
integration.

Differentiation:-
Differentiation is created through division of labor and job specialization. Division of labor
means that the work of the organization is subdivided into smaller task. Various individuals and units
through out the organization perform different tasks. e.g. Repair and maintenance department further
divided into sub department which are engineering store, area engineer personal wash, area engineer
personal product, engg. Planning, projects. They all have assigned different task under the repair and
maintenance department. Specialization is a process in which different individuals and units perform
different tasks. e.g. The Buying department of unilever has a specific task which purchasing inventory
or raw material.

Integration:-
The degree to which differentiated work units work together and coordinate their efforts.
As Unilever differentiate their structures, managers must simultaneously consider the issues of
integration. All the specialized in Unilever cannot be performed completely independently. Because
the Unilever is a larger organization and it has different units, some degree of communication and
cooperation must exist among them. Integration and its related concept, coordination, refer to the
procedure that link the various part of Unilever to achieve the Unilever overall mission. e.g. the
finance department, buying department and marketing department link together to achieve overall
mission.
First we will discuss vertical differentiation within Unilever organizational structure. This
include issues pertaining to authority within an organization, the board of directors, the chief executive
officer and hierarchical levels, as well as issues pertaining to delegation and decentralization.

Vertical Structure:-
Vertical structure is also called Reporting structure which tells about the hierarchy of an
organization an chain of command.

Top Level

Middle Level

Lower Level

This is Hierarchical Levels

Unilever top level managers are:

Chairman UPl (Ehsan Maalik) Supply Chain Director(M.Qayser Alam)

HPC head(Shahab Mohammad Ali) WM-RF(Shahid Rafique)
Service Eng( Fayyaz H. shah) Operation Mgr PP (Irfan bhatti)
R&ME (Talha Kidwai) HR Manager (Mohsin Nishat)
HPC Controller(Ismail Tahir)

Middle Level managers:

Soap making (Hassan Abbas) Soap Finishing (M.Zaheer)

AM Distribution (Sohail A.Malik) AM Stores (M. Nazir)
Planners PW & PP (Ashfaq Ahmad, Abdullah Aslam)
TPM (Co-ordinator) Environmental Co-ordinator (Abdullah Javed)
Safety Co-ordinator (Sohail Zahid) FMO (Dr. Hafeez)
Q.A Lab. (M. Idrees)

Lower Level:

Services & Utilities PP Finishing

PP Process PW-Soap Making
PW- Finishing Engineering Store
Area Engineer PW Area Engineer PP
Engg. Planning Projects
Unilever Estate Admin & Security
Human Resource Dept. Estate First Aid Center
Factory Medical Center Business service Dept.
Account payableVource/Costing Packaging & Raw Mat.
Quality Assurance Buying

Authority in Unilever:-
Authority means the legitimate right to make decision and to tell other people what to do.
In Unilever authority resides in positions rather than in people. Thus the job of CEO of particular
division has the authority over that division, regardless of how many people come and go in that
position and who currently holds it .

The Board of Directors:-

In Unilever owner are the stockholders. Stockholders elect the BOD to over see the
organization. Board perform at least three major set of duties,
1. Selecting, Assessing, Rewarding and perhaps replacing the CEO
2. Determining the firms strategic direction and reviewing financial performance
3. Assuring ethical, Socially responsible and legal conduct.
The Unilever BOD are
Mr. Ehsan A. Malik Mr. Peter I. Harvey
Chairman & Chief Executive CFO & Executive Director

Mr. M. Qaysar Alam Mr. Syed Babar Ali

Executive Director Non-Executive Director

Mr. Fatehali W. Vellani Mr. Omar H. Karim

Non-Executive Director Non-Executive Director

Mr. Zaffar A. Khan Mr. Zarrar Haider

Non-Executive Director Non-Executive Director

Mr. Syed Hashim Raza Zaidi Mr. Amar Naseer

Non-Executive Director Company Secretary

Executive directors

Patrick Cescau - Group Chief Executive Kees van der Graaf - President Europe

Non-Executive directors
 Michael Treschow Professor Geneviève Berger

The Rt. Hon. The Lord Brittan of Spennithorne, QC Wim Dik

Mr Charles E Golden N. R. Narayana Murthy

Hixonia Nyasulu The Lord Simon of Highbury, CBE

Unilever executive (UEX)

Manvinder Singh (Vindi) Banga - President Foods Harish Manwani - President, Asia Africa

Sandy Ogg - Chief HR Officer Michael B. Polk - President, Americas

Chief Executive Officer:-

The authority officially vested in the board of directors is assigned to CEO, who occupies the
top of the organizational pyramid. CEO is personally accountable to the board and to the owners for
the organization performance.

Unilever Span of Control

A span of control is the number of people who report to one manager in a hierarchy. The more
people under the control of one manager - the wider the span of control. Less means a narrower
span of control.

Unilever has the Narrow span of control but now they are moving to wide span of control by reducing
their layers. It is tall organization that has many reporting level. In this the communication is difficult
for employees.

Decentralized or Centralized organization?

Decentralized mean an organization in which lower level managers make important decisions.
Centralized mean an organization in which high level executives make most decisions and pass them
down to lower levels for implementation.
Unilever is a centralized organization because most of its decision makes by top level executives but
lower level can also gives their views.

Secondly we will discuss the horizontal Structure including issues of decartelization that create
functional, divisional, and matrix organization

Horizontal Structure
It is also called division of labor. As the task of Unilever become increasingly complex, the
organization in inevitably must be sub divided that is, departmentalized-into smaller unit’s
organization departments. One of the first places this can be scene is in the distinction between line
and staff departments. Line departments are those units that deal directly with the organization
primary good organization services, they make things, sell things, organization provide customers
service. In Unilever buying department, Quality assurance, Packaging & Raw material, Business
service department, Admin & security, Factory medical center, Estate First aid center, Human resource
department, Unilever estate, Area Eng. Personal product (Shampoo, Lotions), Area Eng. Personal
wash(Soap), PW finishing, PP finishing, PW soap finishing, and service and Utilities department are
the line department.
Staff department means units that support line department. e.g. Services engineer support the service
& utilities department.

Buying Department
 The word “buying” means purchase of any thing or any merchandise or item. This function is
performed by buying department in any organization.

Buying or purchase is one of the major functions of any company of organization. Without it
no one organization can run successfully in the field of business. So we may say that buying is the soul
of company. Without buying all departments of the company will be failed.

Planning Department
Planning is intellectually demanding process. It requires that we consciously determine courses of
action and based our decisions on purpose knowledge and considered estimates.
Before planning we set our goals and reach on a certain decision with the help of knowledge
and estimates.
Finance Department
Following functions are performed by Financial Accounts Department of RF:
 Maintenance of fixed assets records including related reports.
 Calculation of depreciation, Gross Book value (GBV) and Net Book Value (NBV)
 Capitalization and other schedules on yearly basis
 Allocation of manpower cost and depreciation to different location on monthly basis
 Maintenance of medical expenses, Traveling expenses vouchers and their record up to
management staff

Cost Department
This department provides very useful services to the company and is responsible for costing of
the products. This department does the yield calculations of the followings:
• Soapery fatty acids
• Crude glycerin
• Refined glycerin
• Edibles
For the calculation of yield, these elements are taken into consideration:
• Storage loss/gain
• Bleaching loss
• Packing loss/gain
• Un-accounted loss

Payment Department
Different department of UPL R.F are working under Commercial Department. Payment Department is
one of them. Payment Department is also called APV (Accounts Payable Vouchers). The purpose of
this department is to make the arrangements for the payments of the factory liabilities.
APV section is further classified into two sections

• APV 1
• APV 2

APV1
APV 1 is classified into further three sections:
• Packing and materials payment section
• Local payment section
• Chemicals and engineering stores payment section

APV 2:
APV 2 makes a payment of wages and salaries for the workers of UPL Rahim Yar Khan
Factory.

Human Resource Department

The assets of the organization like machinery. According to the Personnel Department of UPL
R.F., there are things which are common between workers and machinery of the organization. For
examples:
 Machinery requires repair where as workers required training.
 Both are used for production purposes.
 Both require improvement.
 Both become inefficient if proper attention is not given.
Administration Department
Unilever Pakistan Limited R.F. has also an administration department that is controlled by the
personal department. Following functions are performed by the Administration Department:

• Arrangements for providing for providing transport facility to management staff.

• Arrangements for the journey of management & non-management staff.
• Arrangements of stationery and printing.

Distribution Department
Now a day’s business is extended to a great extent. Markets are widening briskly, so there is a great
need to meet the requirements of this large market successfully. There should be such a system of
distribution that the supply of products to the markets should be according to the needs; this system
should be “sales loss proof”.

UPL has a system, which gives maximum results. Supply of product is monitored in such a
way that there are minimum chances of shortage in supply.

Quality Control Department

Quality is the use of techniques and activities to achieve, sustain and improve quality. It
involves integrating the following related techniques and activities:

1. Specification of what are needed.

2. Design of the product or service to meet the specifications.
3. Production or installation to meet the full intent of the specification.
4. Inspection to determine conformance to the specification.
5. Review of usage to provide information for the revision of specification if needed.
6. Utilization of these activities provides the customer with the best product or service at
lowest cost. The aim should be continuous quality improvement.
Material Store Department
Material Store is place where raw material is store. There are different function of Material Store and
stock maintenance. It is consist of two Hangers and one Perfume and Color Store. Total area of each
hanger is 256 x 107feet.

The Divisional Organization

Departmentalization that groups units around products, customer’s organization geographic
regions.
Unilever has groups its units around product, customer, and geographic regions.

Product Division:-
How Unilever follow the product division? Because in product division
1. Information needs are managed more easily.
2. People have a full-time commitment to a particular product line.
3. Task responsibilities are clear.
4. People receive broader training.

Customer & Geographic Division:-

Unilever made customer based product & they also make geographic division. They make
customer division. Unilever made soap and now they also make toilet soap. By geographic division
Unilever is in south asia, Europe, the fast east, west Europe, south America.

The Functional Organization:-

It means that departmentalization which is the basis by which the jobs are grouped together. In
this case there is a unity of command which means’s that all the subordinate would report to one head.
In Unilever the job of production department, HRM dept., and marketing dept., are grouped together.
 Functional Organization

Production
Finance dept. HRM dept. Marketing dept.
dept.

The Matrix Organization

A matrix organization is a hybrid form of organization in which functional and divisional form
overlap.
Unilever is matrix organization and composed of dual reporting relationship in which some manager’s
report to two superiors-a functional manager and a divisional manager.
A Matrix Organization is an organization structure that is matrix-shaped. It has 2 axes, rather
than a pyramid-shape. The vertical hierarchy is overlaid by some form of lateral authority, influence,
or communication and there are dual lines of authority, responsibility, and accountability that violate
the traditional "one-boss" or "Unity of Command" (Fayol) principle of management.

CHAIRMAN UPL

Supply Chain Director

WORKS MANAGER-RF

QA Manufacturi
Factory HPC Medical
ng HR Manager
Manager Engineer Controller Officer
Manager
AM
Planners PW & Environmental Safety AM Raw
PP Co-coordinator Co-coordinator Distributor Material
Stores
Op Manager
Quality Assurance

Services & Utilities

Admin. & Security
Maintenance - II

Factory Medical
Maintenance - I

Soap Finishing

Estate First Aid

Unilever Estate

Engg. Planning

Drawing Office
Soap Making

APV / Costing
packaging &

PP Finishing

Engg. Stores
PP Process
Raw Mat.

Projects

Center

Center
Buying
HRD

BSD

Organizational Integration
In this there are several coordination methods in Unilever which are given below
Coordination by Standardization:-
Establishing common rules and procedures that apply uniformly to every one. Standardization
means actions and integrates various units by regulating what to do. It consists of standard operating
procedure and formalization. In Unilever every person knows what he do and apply standard operating
procedure.

Coordination by plan:-
Interdependent units are required to meet deadlines and objectives that contribute to a common
goal. e.g. Finance, Buying in marketing department are interdependent units and they have dead lines
and objectives that contribute to a common goals. In Unilever the Coordination between
interdependent units are by plan.

Coordination by Mutual Adjustment:-

Units interact with one another to make a accommodations in order to achieve flexible
coordination. There is a coordination by mutual adjustment between different department in Unilever.

Coordination & Communication:-

Unilever has a strong communication between its different departments and they coordinate
through it. They have to ability to handle more information
 CONCLUSION

T he Islamia University of Bahawalpur has provided us with the

opportunity to visit Unilever Pakistan Ltd, which is one of the largest multi
domestic and multinational company working in Pakistan. we feel proud to
represent our department in this MNC well-reputed in Pakistan.

we got a lot of experience from Unilever Pakistan Ltd Rahim Yar khan
factory. During our visit we came to know that how different activities take
place in a work environment, what are there procedures and processes and
how to interact with people at work. Unilever Pakistan Ltd is on the way of
progress. It has been earning a healthy profit with a strong financial position
and goodwill in the market. The management is professionally qualified and
experienced and well competent.

Unilever produces high quality consumer goods in Pakistan. The demand of

the Unilever‘s products is increasing with the passage of time.
VISION OF UNILEVER

Touching Hearts
Changing Lives

MISSION STATEMENT
Our mission is to add Vitality to life. We meet everyday
needs for nutrition, hygiene and personal care with brands
that help people

Look good, feel good

And get more out of life.
Perfection is not attainable,
But if we chase perfection,
We can catch excellence
(Vince Lambarto)