TERM PAPER PRESENTATION

ON
HINDUSTHAN UNILEVER LTD
PRESENTED BY
Rajeev Reddy 141159
Dinesh Reddy 141156
Teja Srinivas 141111
B. Manikanth 143108
S.Md.Ayazur Rahman 141147
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Vision:
HUL is a unique company, with a proud history
and a bright future. We have ambitious plans
for sustainable growth and an intense sense of
social purpose.
We work to create a better future every day
We will develop new ways of doing business
with the aim of doubling the size of our
company while reducing our environmental
impact

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Mission:
HUL's mission is to add Vitality to life. We meet
everyday needs for nutrition, hygiene, and
personal care with brands that help people feel
good, look good and get more out of life.

Company overview:
Hindustan Unilever Limited(HUL) is Indias largest fast moving consumer goods company, with
leadership in Home & Personal Care Products, Foods & Beverages.
HULs products are household names across the country and host 20 distant product categories,
touching two out of three Indians with their large brand portfolio.
They endow the company with a scale of combined volumes of about 4 million tonnes and sales of
Rs. 13,718 crores.
The mission that inspires HUL's over 16,000 employees is to "add vitality to life".

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Portfolio of HUL brands:

HUL is the market leader in Indian consumer products with presence in over 20 countries.
Sixteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands
Annual Survey (2014), carried out by Brand Equity, a supplement of The Economic Times.
The "most trusted brands" from HUL in the top 100 list (their rankings in brackets) are: Lux (6), Surf
Excel (7), Clinic Plus (8), Rin (13), Lifebuoy (15), Close up (21), Pond's (22), Pepsodent (24), Fair &
Lovely (29), Dove (30), Sunsilk (34), Vim (48), Wheel (67), Vaseline (70),Pears (78), Lakme (91).
The latest launches for Hindustan Unilever include: Knorr Chinese Noodles, Schezwan and Hot &
Spicy, Lakme Absolute Sculpt Range, Lakme Lip Love, Magnum Choco Cappuccino and Axe Gold
Temptation.

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History
Acquisitions

Mergers

Lipton 1972
Brooke Bond 1984
Ponds USA 1986
Dollops Ice-cream 1993
Lakme Ltd. (50:50 jv) 1996
Kissan 1993

Tata Oil Company 1993

Alliance with the Kwality Ice cream
group, 1995
Brooke Bond Lipton India Ltd, 1996

Modern Foods 2002

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BUSINESS MODEL OF HUL

The inputs to our business model, like those of

all major packaged goods manufacturers, are
threefold: brands; people; and operations.
The differentiator in our business model is our
USLP and the goal of sustainable living.
The outputs of the model are threefold: sustained
growth;

lower

environmental

impact;

positive social impact.

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and

BUSINESS DEFINITION:
HUL is Indias largest FMCG company, Today, there are over 7.7 million retail outlets in India with an
average of 8 stores per thousand people the highest store density in the world.
The unorganized and scattered character of markets in India means sales and distribution (S&D) requires a
different tactic from that of more developed economies. HUL knew it needed to tailor its approach for
INDIA.
To maintain their market leadership, HUL pursues innovative distribution mechanisms to reach the millions
of potential consumers in both urban areas and small remote villages where there is no retail distribution
network, no advertising coverage, and poor roads and transport.
Its S&D network gave it an edge over the competition, but that rivals would try to match it over time. To
maintain their competitive advantage, HUL has aggressively extended more deeply in India, moving from
large to small towns, and from urban to semi-urban areas.

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GOALS & OBJECTIVES

Reduce diarrhea & respiratory disease: Reached out to 70 million through handwashing programs.
Improve sanitation: Domex toilet academy aims to built 1 lakh toilets in rural communities
Reduction in greenhouse gas emissions from manufacturing and transport: CO2 emissions are reduced
by 38% compared to 2008
Sustainable Sourcing: 85% of tomatoes for Kissan ketchup from sustainable sources
Enhance the livelihoods: enhance the role of women in the value chain (Project Shakti)

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CORPORATE LEVEL STRATEGIES

HULs purpose is to make sustainable living commonplace. They are developing new business
practices that grow both their company and communities.

Expansion Strategy:In Cosmetics and personal care HUL took over lakme in 1998.
HUL's most significant acquisitions came during the '90s when it acquired Lakme, Kwality,
Tomco and Kissan.
HUL signs an agreement with Mosons Group for acquisition of its flagship Indulekha brand.

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Organic Growth Route:HULs first priority is to be a successful business and that means investing for growth and balancing
short term and long term interests.
QIL was engaged in perfumery and flavours which enabled ponds expertise in launching many
unique perfumes and fine fragrances.
HULs skin care factory at Silvasa in Dadra and Nagarhaveli acquired capacity to manufacture
entire line and range of skin care compounds and Ingredients.

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BUSINESS LEVEL STRATEGIES

Focus on product innovation/ relaunches/ development of new markets
The successful relaunch of Lux helped volume growth in the soaps segment and market share seems to
be stabilizing now.
Fair & Lovely winter fairness cream was relaunched and the company is seeing good growth.
Aggressive price cuts
The company insisted that competitive growth is the No. 1 priority and thus the companys price cut
in Rin (~2% of sales) and other segments will help it record higher volume growth.
Premiumization of customers
Dove grew rapidly across shampoo and conditioners, becoming the No.1 hair care brand in modern
trade while Dove sachet has captured ~5% of the market.
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SNAPSHOT OF FINANCIAL PERFORMANCE OF HUL

The Domestic Consumer business grew by 10% with 5% underlying volume growth, both ahead
of market.
In the past three years, HUL's net sales have witnessed a CAGR of 11%, while net profit has
posted a CAGR of 17%.
It has diversified into processed foods, ice-creams , water purifiers and specialised chemicals. But
home and personal care (HPC) continues to remain the bread & butter segment for the company.

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PERFORMANCE TRENDS
GROSS SALES

PROFIT AFTER TAX

GROSS SALES (Rs in cr)

PROFIT AFTER TAX

35,000.00

4,500.00
4,000.00

30,000.00

3,500.00
25,000.00

3,000.00

20,000.00
REVENUE

2,500.00
REVENUE

15,000.00

2,000.00
1,500.00

10,000.00

1,000.00
5,000.00
-

500.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YEAR

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YEAR

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SEGMENT WISE SALES %

4%
18%

49%

29%

Soaps, Dets & household Care

Foods

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Personal Products
Others

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SWOT
ANALYSIS

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STRENGTHS

OPPURTUNITIES

HUL is a part of the Unilever group,

hence strong brand equity.
Products with presence in over 20
consumer categories with over 700
million Indian consumers using its
products.
As a part of CSR, HUL has initiatives
like project Shakti, plastic recycling,
women empowerment etc

Tap rural markets and increase

penetration in urban areas.

Mergers and acquisitions to

strengthen the brand.

Increasing purchasing power of

people thereby increasing demand

WEAKNESSES
High competition with domestic and
international brands

THREATS
Intense and increasing
competition amongst other FMCG
companies

FDI in retail thereby allowing

international brands

Competition from unbranded and

local products

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BCG MATRIX
FOR HUL

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STAR
LUX (16%)
SUNSILK (32%)
FAIR & LOVELY (60%)
SURF EXCEL (37%)

?
RIN (4.8%)
PEPSODENT (13.81%)

COW
AXE (70%)
VASELINE JELLY (90%)

DOGS
WHEEL (falling)

PEST
ANALYSIS

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POLITICAL ANALYSIS

ECONOMIC ANALYSIS

Political environment played a vital role in the

growth of HUL.
Legislation such as the minimum wage or
anti discrimination laws.
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime eg communist,
democratic, dictatorship

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Affected by national and global

economic factors.
National and global interest rate and
fiscal policy will be set around
economic conditions.
Inflation has affected HUL such that
it lead to increase in raw materials.

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SOCIAL ANALYSIS

Population changes
Changing interest among
individuals.
Falling birth rates will result in
decreased demand.

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TECHNOLOGICAL ANALYSIS

Technology infrastructure help them

manage their business transmit and
record information.
Increased the rate at which
information is exchanged between
stakeholders.
Created a society which expects
instant results.

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ORGANISATIONAL APPRAISAL

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HUL VALUE CHAIN PROCESS

HULs
business
processes
and
brands
have
an
impact
at
every
stage of the value
chain
from
sourcing
raw
materials,
manufacturing,
distribution,
to
consumer use and
disposal.
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PRIMARY AND SECONDARY

ACTIVITIES
PRODUCT DEVELOPMENT:
HUL has concentrated in a very wide way on the product development
factor. The product has been focused on various segments from low
price products to premium products. Their product ranges are health
care, personal care, household care, beverages etc.

Procurement and Manufacturing:

The procurement procedure undertaken by HUL is followed by a
combination of backward integration and with suppliers. HUL has its
own farms for the production of agri based products. HUL has a strong
network of suppliers which supply materials for the production purpose.

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Service and Logistics:

Hindustan Unilever, which once pioneered distribution in India, is
today reinventing distribution - creating new channels, and
redefining the way current channels are serviced.
HUL's

products,

manufactured

across

the

country,

are

distributed through a network of about 7,000 redistribution

stockists

covering

about

one

million

retail

outlets.

The

distribution network directly covers the entire urban population.

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Marketing Activities:
It focuses on short supply chain for distribution. It also focuses to meet the
every need of people everywhere
For long term benefits, HUL started Project Streamline in 1997. They
appointed 6000 Sub-stockists that directly covers about 50,000 villages &
250 million customers.
They also undertook PROJECT SHAKTI, partnership with Self help groups of
rural women & covers 5000 villages in 52 districts in different states to
make available HUL products in rural areas.

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ACTIVATING
STRATEGIES

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Focused Business strategy of HUL

PLAN

HUL plans to launch global margarine brand in India

Hindustan Unilever's plan new horizons: Beauty, food and water

PROGRAMS

HUL is currently working on setting up a distribution network across

the country for the product as it would require different facilities such
as a cold chain
Developing its portfolio to stand up to the marketing onslaught of
brands such as Maybelline, Chambor, Revlon and Lreal

PROJECTS

The company had launched margarines here under the Blue Band
brand about 20 years ago.
HUL has launched affordable products in the beauty segment

Focused Business strategy of HUL

POLICIES

Consistency in delivery
Quite cost economical for the impact delivered
Quality control

PROCEDURES Apply for government permissions.

REVIEW OF STRATEGY

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