A

PROJECT REPORT ON
Potential marketing analysis for water purifier a case
of HUL pure it.

Submitted by
Pramod kumar swain
Roll no-0911a24
PGDM-RM 2009-11

Under the guidance of

 Dr. N.R.K REDDY

Professor & Director

IN PARTIAL FULFILMENT FOR THE AWARD OF THE

DEGREE OF POST GRADUATE

DIPLOMA IN MANAGEMENT

Synergy school of

business

Hyderabad-

500078

DECLARATION

I hereby declare that this Project Report titled “Potential

marketing analysis for water purifier a case of HUL pure

it” submitted by me to the Department of synergy school of

business is a bonafide work undertaken by me and it is not

submitted to any other University or Institutions for the award of

any degree diploma/certificate or published any time before.

Name and Address of the student Signature

of Student

Date:

CERTIFICATE

This is to certify that the Project Report titled “Potential

marketing analysis for water purifier a case of HUL pure

it” submitted in partial fulfillment for the award of the degree of

Post Graduate Diploma in Management was carried out by

Pramod kumar swain under my guidance. This has not been

submitted to any other University or Institution for the award any

degree/diploma/certificate.

Name and Address of the Supervisor Signature

of the Supervisor

Date:

Place: Hyderabad
 TABLE OF CONTENTS
CONTENTS Page No.

1. INTRODUCTION

2. OBJECTIVE

3. THE INDUSTRY

4. THE COMPANY

5. SURVEY & OBSERVATION

6. CONCLUSIONS

7. BIBLIOGRAPHY
 INTRODUCTION
Approximately 80% of diseases in India are caused by water borne micro

organisms. This is true in rural as well as urban India. However, awareness of health

risks linked to unsafe water is still very low among the rural population. The few

who treat water resort to boiling or use domestic candle filters. In comparison, the

urban Indian is definitely more health conscious and understands the necessity of

purifying water before it is fit for consumption. Even so, it is estimated that roughly

7% of urban Indians use non manual water purifiers. More Indians need to become

aware of the importance of installing drinking water purifiers. There remains a huge

untapped market.

Though quite a few city dwellers still boil water, many are switching over to modern

domestic water purifiers. Electrical or chemical based home water purification

systems are most suitable for urban households because they require little or no

manual operation and depending on the technology can eliminate biological

contaminants, chemical toxins and excessive salts. The main contaminants are,

however, micro organisms. UV purifiers and advanced chemical based systems deal

effectively with viruses, giardia and bacteria. This is one of the reasons why UV and

resin based purifiers are the most widely used water purifiers in India today.

It is estimated that around 80% of urban dwellers do not purify tap water. Many of

them are from the lower income strata and cannot afford UV or reverse osmosis

water purification systems. They are the potential buyers of economical but

effective chemical purifiers. This is the market that Eureka Forbes and Hindustan

Unilever are tapping aggressively. Chemical based purifiers, Aquasure and Pureit,
together account for 20% of water purifiers sold. Both are becoming increasingly

popular because they are effective and affordable. The two brands are reported to

be growing at 100 percent per annum. Also, they do not run on electricity and are

ideal for locations where power supply is unpredictable. Neither do they demand

continuous water supply. Power and water are still scarce even in urban India.

That the Indian market has tremendous potential is evident from the fact that

global majors such as Philips and Hindustan Lever have stepped in and are looking

to increase their share of the market. The three principal players today are Eureka

Forbes, Hindustan Lever and Philips. In the years to come, we are likely to see

others entering the fray.

HOW DOES ONE CHOOSE FROM THE PLETHORA OF TECHNOLOGIES AND BRANDS

NOW AVAILABLE IN INDIA? WHICH WATER PURIFICATION SYSTEM WOULD BE BEST

FOR US?

The two parameters of selection here would be

Degree of purification and

Price.

Different technologies deliver differing degrees of purity. Water may be purified

using the following technologies:

UV purification

Reverse Osmosis

Activated carbon filtering

Distillation

Ion exchange
 Electro deionization

Domestic water purifiers usually use chemical purification, ultraviolet treatment and

filtration, or reverse osmosis.

Do We Need a Water Purifier?

Do we really need a home water purification system when others just boil water or use candle

filters? And, quite a few people we know drink it straight from the tap. Well, yes, because water,

that precious fluid that is so essential for life, can also turn out to be harmful and occasionally

even deadly. According to the U.S. Environmental Protection Agency 90 percent of water the

world over contains contaminants. Very few people today are fortunate enough to have direct

access to pure, clear and healthy water at its natural source. In India, 80 percent of all diseases

are reported to be caused by water borne micro organisms.

Boiling, an age old method of water purification is known to kill all microbes. So why invest in a

domestic water purifier, why can’t we just boil tap water? Well, boiling does not remove toxic

chemicals and dissolved solids. Water contains not only biological contaminants; it may contain

chlorine, lead, fluoride, rust, pesticides and heavy metals. All or some of these toxins can prove

very damaging in the long run. Besides, boiling is time consuming and expensive because of the

rising cost of fuel.

Local municipal corporations commonly use chlorine to destroy harmful bacteria and viruses in

the water they supply to domestic users in towns and cities across India. Chlorine if allowed to

remain in the water we drink everyday can have adverse effects on our health and that of our

family. Besides, the pipes that municipal water flows through are often rusty, so by the time

water reaches our home, it’s very likely to be contaminated again.

Home water purifiers available on the market today are capable of destroying or deactivating

bacteria and removing toxins and suspended solids as well. What’s more, some brands also use

technology that retains natural minerals, which are beneficial. So, it is possible for us to have

water that is safe, clear, and healthy and tastes great as well. We don’t always need to invest in a

high-end expensive water purifier. The high priced reverse osmosis domestic water purifiers that

are advertised these days are not really necessary or even advisable at many locations. Basically,

the quality of water in our area and our budget should determine what purification system we

select.

Whatever our raw water type and budget, we are likely to find a suitable purification system to

protect us and our loved ones from the hazards of consuming polluted water. The few thousand

rupees we spend will prove to be a worthwhile investment in the long run.

Water Purifiers and Health Benefits

The health benefits of using drinking water filters or purifiers are significant. Comprehensive

home water purifiers:-

Protect against water borne intestinal disorders and infections – purifiers eliminate

bacteria, viruses and pathogens such as giardia and cryptosporidium, which can cause

persistent gastrointestinal upsets. Safe drinking water protects against diarrhea,

amoebic dysentery, cholera, typhoid, jaundice and other ailments.

Might reduce the risk of developing certain cancers by removing chlorine, which is

known to be very harmful. Chlorine releases certain by products which are believed

to be cancer causing.
 Prevent oxidation by removing chemical toxins and heavy metals such as copper,

cadmium, lead, magnesium, silica and chromium. Lead in particular is very harmful

and should not be ingested.

Retain essential natural minerals, which are necessary for good health. They restore

the PH balance of water. Water that is acidic in nature harms the body. The water that

we drink should be alkaline.

Remove pesticides that can prove to be toxic if allowed to remain in water.

Eliminate excessive iron and fluoride. Water with high iron content is known to cause

constipation and other problems. While fluoride in small quantities aids dental health,

a high concentration can damage teeth and bones.

Remove excessive salt deposits.

Effectively assist in cleansing the system by providing pure and clear water.

A suitable domestic water purifier thus has an important role to play in preserving human health.

Not all water purifiers are completely beneficial, though. Many chemical based purification

systems leave harmful chemicals in the water. These should be avoided.

Reverse osmosis systems that produce totally mineral deficient water have adverse effects on

human health, making them an non-viable investment. If you must have a reverse osmosis

purifier, select one that is capable of retaining essential minerals. Also, select a purifier that uses

technology that removes all biological and other contaminants. There are purification systems

today that claim to destroy or deactivate 100 percent of micro organisms and remove more than

90 percent of dissolved solids.

The health benefits that result from using an effective and comprehensive domestic water

purifier are worth considering. The right water purifier can safeguard you and your loved ones

from harmful diseases and hospital bills.

Finally, settle for a brand that has a good track record in terms of equipment quality and after

sales service and comes with a warranty.

RESEARCH PROBLEM

It is a well known truism that the happy customer is a best customer. It follows that the best

leads are referrals from happy customers. Referral leads are almost always the best prospects

because a recommendation from one customer to another provides credibility, a positive

impression and reduces doubt in the prospect's mind. And a bonus for company is that is an

incredibly cost-effective means of generating new business!

Some common misconceptions about referrals that I've heard from the peoples:

Customers don't want to give referrals.

You can't plan or influence referral business - it just happens on its own.

Advertising and sales requires too much of our attention; there aren't enough

resources for a referral process.

The truth is that customers do want to give the referrals. They like to see themselves as an

authority, a helper or someone "in the know." And company can plan and influence the amount

of referrals in much the same way they do traditional leads. Once company realizes the value of

referrals, they won't want to take a passive approach.

New sales leads are the lifeblood of any business. In tough times a company has to

get creative on ways to get sales leads. To grow their business and keep it healthy,

they need a steady flow of new customers. Where & how will they come from?

NEED FOR STUDY

Referrals are one of the best sources of new customers. Unfortunately many businesses neglect

this form of lead generation, and then the owners wonder why the results are so poor.

A substantial part of the business can come from referrals. The key is to provide extraordinary

customer service and educate the clients and influencers to this fact. Company must actively

cultivate referrals; otherwise they are just leaving it to chance

According to the survey results by the Chief Marketing Officer Council, most valued source of

leads is from customer referrals.

Sources of Leads Percentage

s
Customer Referrals 54%

E-Mail or Direct Marketing 14%

Internet 8%

Events 7%

Leads from Vendors 7%

Third Party Lead Generation 3%

Organizations
 Others 8%

Referral marketing is a systematized approach that maximizes the power of word of

mouth. Referral marketing asks, promotes, and rewards customers, suppliers, and

other contacts for referring potential prospects to a company.

Thus an understanding into the customer’s referrals space is needed to help

company give a direction to this wave of growth.

This report explores the key issues around the existing customer’s

referrals in India and provides a much needed holistic perspective to

macro and micro issues in this space.

OBJECTIVES

The followings are the main objectives of this research/project

Primary objective

How to enhance referral leads from the existing customers

Secondary objectives

Factors responsible for building referrals easy and profitable

How to convert customers into sales people who generate new business for the company

Hypothesis

(A). GENERAL HYPOTHESIS

Null Hypothesis (H0): There is no significant relationship between getting

referrals and the factors that responsible for getting reference like knowledge of

product/ service, satisfaction level of customers, rewards, relationship with

customers and providing regular information about any new product or service
Alternate Hypothesis (H1): There is significant relationship between getting

referrals and the factors that responsible for getting reference like knowledge of

product/ service, satisfaction level of customers, rewards, relationship with

customers and providing regular information about any new product or service

(B). INDIVIDUAL HYPOTHESIS:

1. Customer’s knowledge about product/service

H0: There is no significant relationship between getting reference and

customer’s knowledge

about product/service

H1: There is significant relationship between getting reference and customer’s

knowledge

about product/service

2. Satisfaction level of customers

H0: There is no significant relationship between getting reference and

satisfaction level of

customers
 H1: There is significant relationship between getting reference and satisfaction

level of

customers

3. Rewarding customers

H0: There is no significant relationship between getting reference and rewarding

customers

H1: There is significant relationship between getting reference and rewarding

customers

4. Maintaining relationship with customers

H0: There is no significant relationship between getting reference and

maintaining

relationship with customers

H1: There is significant relationship between getting reference and maintaining

relationship

with customers
5. Providing regular information about any new product or service

H0: There is no significant relationship between getting reference and providing

regular

information about any new product or service

H1: There is significant relationship between getting reference and providing

regular

information about any new product or service

METHODOLOGY

Type of research-Descriptive & Exploratory research

Descriptive study is a fact finding investigation with an adequate interpretation. It is

the simplest type of research and is more specific. Mainly designed to gather

descriptive information and provides information for formulating more sophisticated

studies. Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studies.

Identification of variables

Dependent Independent variables

 variable

Knowledge of product/ service

Satisfaction level of customers

Rewards

Getting referrals Relationship with customers

Providing regular information about any new product or

service

Scaling technique

For the measurement of variables, Nominal Scale is used which is the most widely

used scale in market research, where respondents specify their response to a

statement.

DATA COLLECTION

1. Primary Data

(A). Questionnaire:- A set of questions related to the research topic was formulated. Response

for each questions included in the questionnaire has been collected from the existing customers.

(B). Interview:- Apart from collecting different responses from the customers some extra

information has been obtained regarding referral leads through face to face interviewing

activity.2. Secondary Data

Secondary research was done to build an in-depth understanding of the referral marketing
 Information from various published resources like India stat and other research bodies

were also used to validate the market figures and cross-validate the data.

Detailed analysis of secondary information was used to arrive at the specific frameworks

provided in the report.

3. Sampling methodology: The sampling methodology used is Non Probability sampling

technique-Convenience sampling (A non probability sampling technique that attempts to obtain

a sample of convenient elements. The selection of sampling unit is left primarily to the

interviewer)

4. Sample size: I had chosen 72 samples for the analysis.

5. Questionnaire: The questionnaire is formed in such a way that the information

required for the study is acquired from each item i.e. questions. Here I have used

Nominal scale of measurement to measure the respondent’s responses with each of

the series of the items in the form of statements. The respondents categories range

from housewives & working women to working men who are using HUL Pure it

water purifier from at least 6 months or more.

6. Sampling design:

1. Selection of study area: Hyderabad & Secunderabad

2. Selection of Sample size: 72

 SCOPE AND IMPORTANCE OF THE STUDY

The project aims to get us out of the classroom and into the real world of

companies/ competitors, markets, managers and customers. For me, it opens the

way for walking into experiences. The ultimate goal of this research is enormous

with its true sense. Physically and practically, it shows the potential for the

company and me.

The scope of the project helps in analyzing the factors, which influence the referring

behavior of customers.

The scope is such that the study has been conducted by taking samples from different

areas, which depicts the overall picture.

The results obtained will give an overview of the different criteria based on which an

existing customer can be used to generate sufficient leads for the company.

The study can be helpful in taking decision so as to improve the approach towards

customers for getting reference and service.

This project also helps to know how an organization works in real environment and

under different market scenario.

Importance of Study:
The main purpose of study is to know the referring behavior of consumers

regarding

HUL Pure it water purifiers. The survey was conducted in Hyderabad &

Secunderabad area not all but only some parts have included for survey. Due to

shortage of time it was not possible to cover the whole areas. The existing

customers of these areas were targeted to get the full information related to the

problem. The interaction with the customers was through direct meeting, Phone

calls were used for appointments with customers. Thus the scope of the study was

completed with the time and resources available.

Limitations of the study

Time is the major constraint in the study

My Study is confined to 72 respondents.

Research is done only in some parts of Hyderabad & Secunderabad

Respondents Fatigue.

Researcher inexperience.
 2.OBJECTIVE
a.Pure it To reach every household each and
every corner of India .

b.Hul tries people should use purifier water

instead of unpurified water.

c.No one supplier of water purifier in India in

coming future.

d.To protect every Indian family by providing

purifier water.
 INDUSTRY

In the last decade and more, the country has undergone many changes and one of

the important ones is that people have become health conscious. People realized

that around 80 per cent of diseases in India are caused by water-borne micro-

organisms. With bottled mineral water brands gaining prominence, consumers

realized that they would prefer safe water at home, too.

Safe drinking water, thus, becomes a priority and this is a cue for the Rs 600-crore domestic

water purification industry to step up its operations. Not surprisingly, various companies

involved in water purification and water treatment are aggressively marketing their products.

But, in spite of the tremendous potential for expansion and growth, the water purification

industry has not had an easy time, partly because a water purifier is still not considered a

consumer durable and partly because of issues of pricing, low margins and technology. Many

were still boiling water or using domestic candle filters. But while the former was a tedious

process the latter wasn't 100 per cent effective. Water purifier makers spotted this potential and

launched their brands at various price points.

About a decade ago, the Indian market had just a couple of players in the water purifier market

like Eureka Forbes and Zero-B. Many other brands have entered and expanded the market since

then. And the consumer was only too willing to try this offering.
It is estimated that only 9-10 per cent of urban Indians use water purifiers. Therefore, there still

remains a large untapped market. While there is no independent data on the size of this growing

category, estimates indicate that the size of the water purification industry is about Rs 1,000-

1,500 crore. The differentiating factor among various brands is the kind of technology being

used. Up to now, the ultra violet or the UV technology, used by companies like Eureka Forbes,

Sintex Industries and a several other smaller players, has been the dominant technology.

However, ultra filtration membrane technology and reverse osmosis are now being used

increasingly.

Water purifiers are one of the most used kitchen utilities available in India. Water

purification and Backpacking is an industry in itself in India. Portable versions of

water purifiers are available for camping and hiking.

WATER PURIFIER COMPANIES IN INDIA

Eureka Forbes Philips

Hindustan Unilever Limited Kent

Usha Brita Jaipan

Kenstar Maharaja Whiteline

Orpat Zero B

In the market for water purifiers, while Aquaguard from Eureka Forbes remains the

market leader, several others have made it to the market place. Usha Shriram with its

established Brita water purifier launched India's first digital water purifier, the Water

guard Digital in collaboration with Brita GmbH of Germany.

Another company, Proctor & Gamble (P&G) has also been planning to launch its

international brand Pur, a water purification product. The product has been developed in

close consultation with CDC (Centre for Disease Control and Prevention) and USAID.

The product was expected to be highly useful for developing countries such as India.

Hindustan Unilever India (HUL, erstwhile HLL) also forayed into the water purifier

business, with its water purifier device called Pure. It can be attached to the kitchen tap to

purify potable water at minimum cost. Unilever India took the purifiers to small metros,

towns and cities so that it does not remain an urban phenomenon. Water purifiers

(residential segment) are growing at 22-25% annually. It is nearly Rs 15 bn industry, with

Aquaguard cornering more than 50% of the market. The rest is divided among Kent RO,

Pehltair, Ion Exchange and others.

The French water giant Vivendi Water's arm, US Filter Corporation, has acquired a

controlling stake in Johnson Filtration System India. The latter is engaged in the business

of filtering and purifying machinery for industrial units. US Filter itself was acquired by

the global water giant, Vivendi.

WATER PURIFIERS DEMAND

(1). Past

Year Amount (Rs.

In billions)

1996-97 2.80

1997-98 3.50

1998-99 4.20

1999-00 5.00

2000-01 5.85
 2001-02 6.90

2002-03 7.95

2003-04 9.14

2004-05 10.54

2005-06 12.18

2006-07 14.12

2007-08 16.41

2008-09 19.12

2009-10 22.33

(2). Future

Year Amount (Rs.

In billions)

2010-11 26.17

2011-12 30.75

2012-13 34.86

2013-14 39.53

2014-15 44.82

2015-16 84.92

Market Segmentation (1)

Domestic: - 70% Institutional: - 30%

Market Segmentation (2)

 Segment Share (%)

North 25

East 25

West 40

South 10

Market Growth Rates

Years Growth Rates

(%)

(1990-90)- (1996-97) 16

(1996-97)- (2001-02) 19.8

(2000-01)- (2006-07) 15.4

(2006-07)- (2011-12) 16.8

(2011-12)- (2019-20) 13.5

Market Structure

1. Product Variations

Off-line:- 70% On-line:- 30%

UV Technology: - 40% Resin-based Technology: - 60%

Chapter -4
 COMPANY
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG)

Company.

HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's are household names across the country and span a host of

categories, such as soaps, detergents, personal products, tea, coffee, branded

staples, ice cream and culinary products. These products are manufactured over 40

factories across India and the associated operations involve over 2,000 suppliers

and associates.
Hindustan Lever Limited's distribution network comprises about 4,000

redistribution stockists, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers. HLL is also one of India's largest

exporters. It has been recognized as a Golden Super Star Trading House by the

Government of India. Presently, HLL has over 16,000 employees including over

1,200 managers. Its mission is to "add vitality to life." The Anglo-Dutch company

Unilever owns a majority stake in Hindustan Lever Limited.

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. 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 Ice-cream 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 Ice-cream Group families and in 1995 the Milk food 100%

Ice-cream marketing and distribution rights too were acquired.

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, Specialty

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 Pasteurized 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.

On 17th October 2008, HUL completed 75 years of corporate existence in India.

HUL MILESTONES

Year Achievement
1895 Lifebuoy soap lnched

1902 Pears soap introduced in India

1903 Brooke Bond Red Label tea launched

1905 Lux flakes introduced

1913 Vim scouring powder introduced

1918 Vanaspati introduced by Dutch margarine manufacturers

1925 Lever Brothers gets full control of North West Soap Company.

1930 Unilever is formed on January 1 through merger of Lever Brothers and

Margarine Unie.

1943 Personal Products manufacture begins in India at Garden Reach

Factory.

1947 Pond's Cold Cream launched.

1951 Mr. Prakash Tandon becomes first Indian Director.

1959 Surf launched.

1961 Mr. Prakash Tandon takes over as the first Indian Chairman

Rin bar launched; Fine Chemicals Unit starts production; Bru coffee
1969
launched

1988 Launch of Lipton Taaza tea.

1991 Surf Ultra detergent launched.

1992 HUL recognized by Government of India as Star Trading House in

Exports.

1996 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture

Group company, Pond's India Ltd., merges with HUL. HUL acquires

1998 Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever

Ltd.

2002 HUL enters Ayurvedic health & beauty centre category

2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2004 Launch of "Pureit" water purifiers

Company name formally changed to Hindustan Unilever Limited Sales

2007
of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark

2008 HUL completes 75 years on 17th October 2008

Company 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 vision set out the long term direction for the company – where

they want to go and how they are going to get there:

• They work to create a better future every day

• They 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.

• Company will inspire people to take small everyday actions that can add up to a big

difference for the world.

• Company will develop new ways of doing business that will allow us to double the size

of our company while reducing our environmental impact.

Company have always believed in the power of their brands to improve the quality of people’s

lives and in doing the right thing. As their business grows, so do their responsibilities. They

recognise that global challenges such as climate change concern us all. Considering the wider

impact of their actions is embedded in their values and is a fundamental part of who they are.

Purpose & principles

Company corporate purpose states that to succeed requires "the highest standards of corporate

behavior towards everyone they work with, the communities they touch, and the environment on

which they have an impact."

Always working with integrity

Conducting compnay operations with integrity and with respect for the many people,

organisations and environments their business touches has always been at the heart of their

corporate responsibility.

Positive impact

Company aim to make a positive impact in many ways: through its brands, its commercial

operations and relationships, through voluntary contributions, and through the various other

ways in which the company engage with society.

Continuous commitment

They are also committed to continuously improving the way they manage our environmental

impacts and are working towards their longer-term goal of developing a sustainable business.

Setting out our aspirations

Their corporate purpose sets out their aspirations in running their business. It's underpinned by

their code of business Principles which describes the operational standards that everyone at

Unilever follows, wherever they are in the world. The code also supports their approach to

governance and corporate responsibility.

Working with others

They want to work with suppliers who have values similar to their own and work to the same

standards as they do. Their Business partner code, aligned to their own Code of business
principles, comprises ten principles covering business integrity and responsibilities relating to

employees, consumers and the environment.

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.

Management Committee

The day-to-day management of affairs of the Company is vested with the Management

Committee which is subjected to the overall superintendence and control of the Board.

Executive directors
MR.NITIN PARANJPE MR. R. SRIDHAR MR. GOPAL VITTAL MR. PRADEEP

(CEO & Managing (Chief Financial (Executive Director, BANERJEE

Director) Officer Home & Personal (Executive Director,

Care) Supply Chain)

The Executive directors are members of the HUL Management Committee as well as the Board

of HUL.

Non-executive directors

Mr. Harish Mr. D. S. Mr. S. Mr. A. Dr. R. A.

Manwani Parekh Ramadorai Narayan Mashelkar

(Chairman ) (Independent (Independent (Independent (Independent

Director ) Director ) Director ) Director )

Management Committee
MR.NITIN PARANJPE MR. R. SRIDHAR MR. SHREEJIT MR. GOPAL VITTAL

(CEO & Managing ( Chief Financial MISHRA (Executive (Executive Director,

Director) Officer ) Director, Foods ) Home & Personal Care )

MR. HEMANT MR. PRADEEP MS. LEENA NAIR

BAKSHI (Executive BANERJEE (Executive Director,

Director) (Executive Director, HR )

Supply Chain)

COMPANY BRANDS

Food brands

Brooke Bond 3Roses Annapurna Red Label Brooke Bond Taaza Taj Mahal

Bru Kissan Knorr Kwality Wall’s Lipton

Home care brands

Active Wheel Cif Comfort Domex

Rin Sunlight Surf Excel Vim

Personal care brands

Aviance Axe Ayush Therapy Breeze Clear

Clinic Plus Closeup Dove Fair & Lovely Hamam

Lakme Lifebuoy Liril Lux Pears

Pepsodent Pond’s Rexona Sunsilk Vaseline

Water
Pureit is the world’s most advanced in-home water purifier. Pureit, a breakthrough

offering of Hindustan Unilever (HUL), provides complete protection from all water-

borne diseases, unmatched convenience and affordability.

Pureit’s unique Germkill Battery technology kills all harmful viruses and bacteria

and removes parasites and pesticide impurities, giving you water that is "as safe

as boiled water". It assures your family 100% protection from all water-borne

diseases like jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need

gas, electricity or continuous tap water supply.

Pureit not only renders water micro-biologically safe, but also makes the water

clear, odourless and good-tasting. Pureit does not leave any residual chlorine

in the output water.

The output water from Pureit meets stringent criteria for microbiologically

safe drinking water, from one of the toughest regulatory agencies in the

USA, EPA (Environmental Protection Agency).

The performance of Pureit has also been tested by leading scientific and medical

institutions in India and abroad.

This patented technological breakthrough has been developed by HUL. This state-of

–the-art engineering developed by a team of over 100 Indian and international

experts from HUL and Unilever Research Centres has made Pureit possible at the

consumer price of just Rs. 2000

Nutrition

We've created policies and guidelines to ensure we always act responsibly when it comes to

health and nutrition.

Acting responsibly

Millions of people around the world enjoy the foods and drinks we create. So the ingredients we

use, the formulations, and the way we advertise and market our brands can potentially make a

big impact on global health.

We aim to act responsibly and have a strong nutrition policy. We've also developed a carefully

considered approach to health and nutrition.

Clear communication

We've also developed a set of marketing principles to ensure we're always 'honest, decent and

truthful' in our communication – which include special principles on advertising to children.

As well as excluding anything that appears to condone over-consumption in our marketing, we

also prohibit anything that undermines the promotion of healthy, balanced diets and lifestyles, or

misrepresents snacks as meals. We will also make sure that any claims made in our marketing

about any of our products are supported by scientific evidence.

Under our principles for marketing to children, we ensure our advertisements don't convey

misleading messages, don't undermine parental influence, don't encourage pester power, don't

suggest time or price pressure, don't encourage unhealthy dietary habits, and don't blur the

boundary between promotion and content.

In addition, as well as supporting the development of international self-regulatory codes for all

marketing and advertising, we recently agreed to voluntarily restrict all paid marketing

communications (with the exception of packaging) directed primarily at children under the age

of six years.
We believe that by putting these principles in place, we're not only doing the right thing, but

we're being proactive through voluntary self-regulation – instead of simply reacting to external

pressures.

Health, hygiene & beauty

Unilever's vitality mission is a mandate to help people feel good, look good and get more out of

life. At the heart of this mission is hygiene and health through hygiene.

"Hands are a superhighway for transmitting germs, but most people don't wash their hands with

soap and water at key times," she explains. "In the UK, for example, only 30% of people wash

their hands after going to the toilet and only 43% after changing a nappy." The statistics in

developing countries are similar.

So what's Hindustan Unilever doing?

One of our oldest brands, Lifebuoy, exemplifies our commitment to champion health through

hygiene for everyone.

HINDUSTAN UNILEVER IN ACTION

(1). Enhancing livelihoods

In both developed and developing countries, our companies are active in projects that contribute

to economic development, from sharing good practice, training and technology to creating new

distribution channels.
 Shakti: Economic Shakti was initiated to reach the massive

development through micro un-served and under-served markets that

enterprise cannot be economically and effectively

serviced through the conventional

distribution network.

HUL committed to enhance Hindustan Unilever Limited has embarked

livelihoods under Project upon Project Samruddhi to create

Samruddhi sustainable villages in Dadra & Nagar

Haveli.

Apart from this, medical / health camps and pulse polio immunisation programme

are also conducted in the village. With the objective of improving animal health,

animal husbandry and to educate farmers on advance agricultural practices 'krishi

melas' were organized which received excellent response.

(2). Employees

HUL Sankalp In its 75th year of HUL’s existence in India, in 2008, our employees

committed to volunteer one hour for each day that HUL has been in this

country which collectively meant 27,375 hours of volunteering

(3). Environment

Environmental responsibility underpins our activities wherever we operate, such as developing

technologies that utilize less energy to using carbon neutral fuels.

 A carbon reduction supply-chain project has enabled
Ploughshare
Hindustan Unilever Limited (HUL) to become the first
Technology
Unilever business worldwide to be awarded carbon credits

under the Clean Development Mechanism (CDM) scheme

operated by the United Nations Framework Convention on

Climate Change (UNFCCC).

Agricultural waste such as groundnut shells, bagasse (from

Agri waste
sugarcane), saw-dust, Coconut shells, cashew nut kernels etc.

does not have any primary use as a product & is treated as a

waste. However, it contains a fair amount of calorific value

(ability to burn & impart heat) which can be used as fuel for

burning in boilersHUL uses such agriwaste as fuel in boilers in

some of its factories.

(4). Health, nutrition & hygiene

Our companies are involved in a wide range of projects designed to improve health. These

include AIDS counselling and education programmes, sponsoring sporting events and teaching

people about the importance of oral hygiene, good nutrition and heart health.

Lifebuoy's Swasthya Chetna is the single largest rural

Lifebuoy
health and hygiene educational programme ever
Swasthya Chetna
undertaken in India. A large percentage of rural

population in India do not wash their hands on

important occasions.
 HUL started Sanjivani – a free mobile medical service
Sanjivani – Free
camp in the year 2003 near its Doom Dooma factory in
Mobile Medical
Assam. The aim was to provide free mobile medical
Facility
facility to the interior villagers in Assam. This was

done keeping in mind the lack of quality medical

facilities available in the villages in and around Doom

Dooma.

5.SURVEY &
OBSERVATION
I have gone almost one hundred houses saw most people are
interested towards the Pure it water purifier. They give positive
opinion about it. It doesn’t mean that everyone purchased it .High
class people find high price water purifier. Interested people want
to see demo first then acquire it. Education wives are more
interested to purchase it. They know difference between purifier
water & normal water. But rural don’t know about how to utilize
it. So we have to tell them the difference between two waters.

Actually company provides three types of water purifier. They are

(i)M 05 -2000/-
(ii)Autofill -3200/-

(iii)marvella -6990/-

Among them M05 is more favorable to everyone.

In my experience I would like tell that India is a such a big country

& india is developing country, most people are middle class they
use normal water. if hul pure it tell them about purifier water then
they will understand &there is huge market in India such a huge
population.

Conclusion:

Hindustan Unilever ltd. Is a leading FMCG company in India and from last three
consecutiveyears has shown accelerated growth in FMCG portfolio. Customers in
India are also spending more in FMCG as their standard of living is growing. HUL
has placed itself successfully in the position of market leader in FMCG products.
Though there was some downfall in sales and profit of the company in the
beginning of this decade but after that HUL has shown considerable rise in both
sales and profit. The future of the company is also looking bright as FMCG market
in India is still expanding and so we can safely conclude that HUL will be able to
secure its number one position in FMCG product.
HUL has also started project SHAKTI that has provided it direct reach to rural
market. This may be considered a revolutionary step since the urban market is
reaching its saturation level and there is a huge scope exploring rural market. This
will also be helpful not only increasing its market share but also fight competition.
I found many Water purifiers in the market, which can be compared with
Pureit. As a conclusion I found that particularly in my provided area Pureit is
really doing well and its performance is on surprising level. During the fieldwork
and after intensive study it was found that main competitor of Parle is Aqua guard
(Eureka forbs Ltd). So this is the comparison with other water purifier brands.
According to our findings, we found that Pureit is the market leader
followed by Hindustan Unilever Ltd.