Changing lives in rural India

Unilever in India
Unilever has been in India since 1895

Hindustan Lever formally incorporated in 1956

A subsidiary of Unilever (51.5%) Most sought after recruiter among Indias B schools

Source of employment
15,000 permanent employees 200,000 indirect jobs

Unilever
One of the largest consumer goods companies in the world Global, regional and local brands 223 000 employees world-wide Brands on sale in 151 countries 65.3 million spent on community projects in 2003 (1.7% pre-tax profits)

Vision 2011
100,000
Entrepreneurs

500,000
villages

600 million
Consumers

Shakti shall reach every home in every village, create sustainable livelihood opportunities, and enhance the quality of life in rural India

HUL & RURAL DEVELOPMENT

HUL linked the companys core business with rural development initiatives as it is mutually beneficial to both the society at large and for the company. Rural sales contribute around 40% to HLLs overall sales HUL has been proactively engaged in rural development since 1976 with the initiation of the Integrated Rural Development Programme in Uttar Pradesh. It has already touched 84.6 million people in approximately 43890 villages of 8 states.

Introduction
Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This project was started in 2001 with the aim of increasing the companys rural distribution reach as well as providing rural women with income-generating opportunities. This is a case where the social goals are helping achieve business goals.

 The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of HUL identifying the uncovered village. The representative of the company meets the panchayat and the village head and identify the woman who they believe will be suitable as a SA. After training she is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes a 10% margin on the products she sells.

Objective
The Shakti entrepreneur program creates livelihood opportunities for underprivileged rural women. The Shakti Vani program works to improve the quality of life in rural India, by spreading awareness of best practices in health and hygiene. They are also studying the consumption habits of the rural people.

Hand-wash demo in schools

Shakti Activities

Free Health Camps in Shakti Village

Free Dental Camps in Shakti Villages

HOW IT WORKS
Villages with a population of about 20003000 are selected Personnel from HUL approach SHGs Selection of the Shakti Amma HUL vouches for Shakti Ammas with banks for credit one Shakti entrepreneur is appointed for one village & Villages that are about 2 kilometres apart from her village (satellite villages ).

 The Shakti dealer places initial orders worth Rs. 15,000/(principal customer of HUL) Finance : Self+SHG+micro credit Training by the Rural sales promoter. The Shakti dealer organizes, a Shakti Day in the village (display of products & free gifts ) Core Brands: Lifebuoy, Wheel, Pepsodent, Annapurna salt, Clinic Plus, Lux, Ponds, Nihar and 3 Roses tea.

PRICING AND PACKAGING

Rural consumers are price sensitive Sachets and small packs of premium products. Price doesnt exceed Rs.5 per sachet. Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at Rs.5.

Distribution
It is the combination of the 3 ways: Door to door selling (11% margin on sales) Sells from own home (11% margin on sales) Retailers (3% margin) averages sales : Rs. 10,000 - Rs. 15,000/month, profit - Rs.1,000 per month

Future plans
Project Shakti plans to extend to the states of West Bengal, Punjab and Rajasthan. Partnership with other non-competitor companies to sell their products through the Shakti network. Nippo, TVS Motor for mopeds, insurance companies for LIC policies.

CONCLUSION
Project Shakti is enabling families to live with dignity and in better health & hygiene, education of the children and an overall betterment in living standards. it creates a win-win partnership between HUL and the rural consumers for mutual benefit and growth.

Thank You