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Winning Today and Tomorrow

Investor Seminar
10th May 2011

Safe harbour statement


This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability, change in international oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward looking statements as may be required from time to time on the basis of subsequent developments and events. The Company does not undertake any obligation to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.

Context

How will we win?


Today & Tomorrow

Context

How will we win?


Today & Tomorrow

Business Goals
Winning with Brandsand Innovations Competitive Growth

Profitable Growth

Sustainable Growth

Context

Changing consumer aspirations Hybrid retail landscape

Intense competitive environment


Cost inflation and volatility

Changing consumer aspirations


Demand Elasticity
LSM 8+ (new categories) LSM 8+
4.9 x

Personal Care/Beauty/Foods Explosion


LSM 1 LSM 2-4 LSM 5-7 LSM 8

7.7 x

LSM 5-7 LSM 2-4 LSM 1

3.1 x
1.7 x

1x

2000 4000 6000 8000 10000 Exp per HH / year (INR)


Laundry, Cleansing Pers Prod Foods

HUL Participating Categories

Source : Family Budget Survey, Consumer Panel

Expanding retail landscape


Raid growth in MT; GT will remain large
Year 2007 2010 Modern Trade 5% 10% General Trade 95% 90%

2015
2025

18%
25%

82%
75%

MT contribution ~ 30% in Major Cities

Competitive context continues to be intense


No of brands growing at 40% CAGR Spending more to gain share

Foods

No of brands

Indexed GRPs

160

Personal Care
100

Home Care

300

2300

4300

6300

2007

2008

2009

2010

2007 2009 2010

Cost inflation combined with volatility


Palm Oil
380 330 280
CPO Index PFAD Index

still at high levels

Crude Oil

21% Up

233

193

169
230
142

173

180 130 80
Jul-05 Jul-06 Jul-07 Jul-08 Jul-09

100

Jan-05

Oct-05

Jan-06

Oct-06

Jan-07

Oct-07

Jan-08

Oct-08

Jan-09

Oct-09

Jan-10

Jul-10

Oct-10

Jan-11

Apr-07

Apr-05

Apr-06

Apr-08

Apr-09

Apr-10

Apr-11

MQ'09

FH'09-10

SH'09-10

FH'10-11

DQ'10

MQ'11

Tea

high inflation continues

110 100

Coffee

at all time high levels

90
80 70

119 100
2008 2009

121

60
Sep'08 Sep'09 Nov'08 Nov'09 Sep'10 Nov'10 Jul'08 Jul'09 Mar'08 Mar'09 Mar'10 Jul'10 May'08 May'09 May'10

FY'10-11

Indexed Chart; Average market prices (Source: Market Rate, Tea auction average for north Indian tea); HUL buying cost may be different

Mar'11

Jan'08

Jan'09

Jan'10

Jan'11

Context

How will we win?


Today & Tomorrow

Turbo charging the Compass

Bigger Better & Faster Innovations

12

Strengthening the core: > 50% portfolio relaunched

Foods

Fabric Wash

Beverages

Personal Wash

Skin Care

Hair Care

Oral Care

with competitive & compelling communication Ad Preview Score

> 2/3rd
6 Effies*
Persuasion

Awareness

6 EMVIEs+

*Effies 2010 - Advertising Club Bombay +EMVIES 2010, Excellence in media innovation & execution

Shaping the portfolio of tomorrow

Building capabilities for tomorrow: winning in Personal Care

Transforming beauty experience

Integrated Communication

Expanding OOH footprint


150 Swirl Parlours
Experimenting with Beverages retail services

140+ Lakme Salons

Accelerating growth from categories of future

Core Categories

Future Categories

*Chart depicts FY 2010-11 contribution to Domestic Consumer Business

Recognized as Most trusted & Mega Brands

7 brands > 1000 crore; 12 brands > Rs.500 crore *6 out of top 10 most trusted brands in India^
^(including Pepsodent)

Turbo charging the Compass

Bigger Better & Faster Innovations

Be an execution powerhouse
More & Better Stores

21

Winning in the Market Place : More Stores

Every village in the country mapped

Technology leveraged for blueprinting

Shakti network leveraged in v small villages

Rigorous ROI Model for each state

Winning in the Market Place : More Stores

New Markets

New outlets (current villages)


2009 2010 Direct Coverage Outlets

Shakti/ Shaktiman

1. 500,000 + outlets added 2. Rural Footprint Tripled

Winning with technology iQ: Perfect Stores

Rolled out Nationally in Urban GT; Rural roll out by 2011 ~ 150,000 perfect stores executed Drive higher throughput through perfect stores

Assotment Growth% Other

Sales Growth% A-Perfect

Winning in Modern Trade : Channel of Tomorrow


MT Share > GT Shares (145 bps gain in 09) Increasing Market Shares eQ* at 89 (world class level) Continuous improvement in Customer Service

Profitability Profitability Improvement inimproved

2008

2009

2010

*Nielsen Equity Management Program Score

2008

2009

2010

Turbo charging the Compass

Bigger Better & Faster Innovations

Be an execution powerhouse
More & Better Stores

Re-engineer the Cost Base


Supply Chain , Indirects

26

Winning through Continuous Improvement


Indexed CEPs
140 127 100

Indexed Overheads
(as a % of TO)
2009-10 2010-11
100

2008-09

93

Raising the bar on cost competitiveness


2008-09 2009-10

88

2010-11

Tight cost control and building capabilities for future

Winning through Continuous Improvement

Drive Return on Marketing Investment (ROMI)

+
ROI Positive

-/TO Growth

-/-

Turbo charging the Compass

Bigger Better & Faster Innovations

Be an execution powerhouse
More & Better Stores

Re-engineer the Cost Base


Supply Chain , Indirects

Employer of choice
Performance Culture
29

Winning through People


Engaged Organization
110

104

100

2007

2009

2010

# 1 Best Employer in India, 2011 Awarded by AonHewitt

Indexed Employee Engagement Scores

Winning through People


# 1 Dream Employer
2009
HUL TAS P&G BCG .McKinsey & Co Aditya Birla Group Bain & Company Google ITC Goldman Sachs

# 2 on CRI
2010
65 62 59 55 53 51 51 50

2 3

CRI

45 39

Strengthening Performance Culture

Turbo charging the Compass


Drive HUL Sustainable Living Plan
32

Bigger Better & Faster Innovations

Be an execution powerhouse
More & Better Stores

Re-engineer the Cost Base


Supply Chain , Indirects

Employer of choice
Performance Culture

HUL Sustainable Living Plan

Improve health and wellbeing by increasing awareness of & access to hygiene & nutrition

Reduce environmental Impact Water, Waste and GHG

Enhance livelihoods through our value chain

HUL Sustainable Living Plan Progress vs Targets


2015 Target
Health and hygiene Nutrition
Hygiene awareness in 150 mln Healthy Choice: 2/3rd of portfolio

2010-11
Hygiene awareness in 128 mln 85% of Portfolio certified

GHG Water Sustainable sourcing

25% reduction of CO2

28% reduction

Conserve 25 billion liters of water

Initiated projects for 75 billion liters

Sustainable sourcing: Over 50% of tomatoes 100% certified palm oil

Sustainable sourcing: ~35% of tomatoes ~35% certified palm oil

Better livelihoods

Improve livelihood > 75,000 families

Improved livelihood of ~65000 families thru Shakti

Turbo charging the Compass


Drive HUL Sustainable Living Plan
35

Bigger Better & Faster Innovations

Be an execution powerhouse
More & Better Stores

Re-engineer the Cost Base


Supply Chain , Indirects

Employer of choice
Performance Culture

Strong volume growth sustained


13.1%

14% 11% 5% 11%

13%

14%

2%
JQ'09

2%
SQ'09 DQ'09 MQ'10 JQ'10 SQ'10 DQ'10 MQ'11

Domestic Consumer Business Underlying Volume Growth

> Rs.1800 Cr incremental turnover


11% growth driven by 13% volume growth
584

523
Growth turnover* in Rs. crore

453

318

*Incremental turnover YoY

Business Goals
Winning with Brandsand Innovations Competitive Growth

Profitable Growth

Sustainable Growth

Thank You