Hindustan Unilever

Limited

PRESENTED BY :
SMITA SRIVASTAVA (B046)
SHIVANI GOYAL (B043)
LAVINA CHAWLA (B020)
TANISHQ KATHOTIA (B049)
MADHUR BAGRI (B020)
 FMCG
The Fast-Moving Consumer
Goods (FMCG) sector is the key
contributor to the Indian economy.
(4TH Largest Sector)
India’s FMCG market generated
revenue of about 47.3 billion U.S.
dollars in 2015, with revenue
forecast to reach 103.7 billion U.S.
dollars in 2020.
 Hindustan Unilever Limited
 Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in
India.

 HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a
merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. The company was renamed in June
2007 to Hindustan Unilever Limited´.

 It is headquartered in Mumbai, India and has an employee strength of over 18,000 employees and indirectly provide
employment to many more people around.

 It touches the lives of nine out of ten Indian households with over 20 distinct categories in home & personal care products
and food & beverages which includes soap, detergents, shampoos, skin care, toothpaste, deodorants, cosmetics, tea, coffee,
water purifier etc.
Annual turnover of 37,660 Crores for the financial year 2018-19
 FINANCIAL
PERFOMANCE
NON-FINANCIAL PERFOMANCE
PORTER’S FIVE FORCES MODEL
 SWOT ANALYSIS

oStrengths
oHigh brand visibility Weaknesses
oMarket Leader in Consumer Goods
Large Number of Brands in Different
oExtensive & Integrated Distribution System Categories
oHigh Brand Awareness
Decreasing Market Share
oMultiple Product Lines
oHigh Share of Wallet of Consumer

Opportunities Threats
Expanding Market Competition In the Market
Increasing Income Levels Price of Commodities
Awareness in Usage Rate of Consumer Goods Buyers Power
 ● Volatility of Raw
Materials
Challenges faced ● Imitation of Products
by HUL ● Capacity over-
utilization
● Price Wars
● Purchase on-impulse
products
REGRESSION ANALYSIS AND SALES
FORECAST
Dependence of Sales on Raw Material Expense
Regression and Coefficient of Determination
Analysis of Regression
• 67.66 percent of the total variation in HUL’s sales is accounted for by variation in HUL’s
raw material/consumable expenses.
• The positive slope of the regression line tells us that as we go on increasing the raw
material cost the Sales will also increase.
• The intercept tells us that when there is an absence of any raw material cost the sales
revenue will be 13,588.13
• The regression line is Y’hat=13588.13+2.24*X.
• Standard error= 0.895
• The calculated value of t-ratio is 2.5027. And taking 10% significance level we get
t(cal)>t(tabular). Hence we are 90% confident that such a relationship exists.
Sales Forecast (Linear Trend Method)
Analysis of Sales Forecast
We can see an increasing trend of demand in the next three years as by 2020-2022