HUL REPORTS

8/7/2019 HUL REPORTS

1/41

Page1

TABLE OF CONTENT

S.NoContent PageNo1. Executive Summary 22. Introduction to HUL 33. History of HUL 64. Corporate Governance inHUL165. Corporate SocialResponsibility

186. Company Structure 177. Brands for Life 218. Market Analysis 449. Performance Analysis 4710. SWOT Analysis 5011. Recommendations 55

12. Project Shakti 5913. Conclusion 60

Page214. Bibliography 61


2/41

EXECUTIVE SUMMARYHindustan Unilever Limited is the Indian arm of the Anglo-Dutch company Unilever.Both Unilever and HUL have established themselves well in the Fast MovingConsumer Goods (FMCG) category. In India, the company offers many households

brands like, Dove, Lifebuoy, Lipton,Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts werealso rewarded when four of HUL brands found place in the Top 10 brands list forthe year 2008 published in The Economic Times.Unilever was a result of the merger between the Dutch margarine company,Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For70 years, Unilever was the undisputed market leader but now faces toughcompetition from Proctor & Gamble and Colgate-Palmolive.HUL is also known for its strong distribution network in India. In order to furtherstrengthen its distribution in the rural areas and to empower the local women, HULlaunched a Project Shakti in 2000 in a district in Andhra Pradesh. The idea behindthis project was to create women entrepreneurs and provide them with micro-credit

and training in enterprise management, which would enable them to create selfhelpgroups and become direct-to-home distributors of HUL products. Today ProjectShakti is present across 80,000 villages in 15 states and is helping manyunderprivileged women earn their livelihood.As the per-capita income of India is increasing along with the Indian population. So,the future for the FMCG Companies is bright. To analysis the past performance &the future demand of HUL, FMCG products we have considered following points:We have a listed the different FMCG product lines of HUL.We have done competitors analysis in which the market share of top FMCGcompanies are analysed & the market share of HULS different categoriesproduct are analysed with comparison to its competitors.Then performance analysis is made by taking 10 year financial data from1998-2007. The profit & sales growth is analysed.

Page3We have done SWOT analysis to know the threat & opportunities of HUL inpresent market.

The future opportunities for FMCG products are taken into consideration byanalyzing the increased per capita income & increased disposable income toforecast the future demand of HUL.

Introduction to HULHindustan Unilever Limited (HUL) is India's largest Fast Moving

Consumer Goods Company, touching the lives of two out of threeIndians with over 20 distinct categories in Home & Personal CareProducts and Foods & Beverages. The companys Turnover is Rs.20, 239 crores (for the 15 month period January 1, 2008 toMarch 31, 2009).HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast movingconsumer goods with strong local roots in more than 100 countries across the globe


3/41

with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding inHUL.Hindustan Unilever was recently rated among the top four companies globally in thelist of Global Top Companies for Leaders by a study sponsored by HewittAssociates, in partnership with Fortune magazine and the RBL Group. The companywas ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400managers, is to add vitality to life". The company meets everyday needs fornutrition, hygiene, and personal care, with brands that help people feel good, lookgood and get more out of life. It is a mission HUL shares with its parent company,Unilever, which holds about 52 % of the equity.

HeritageHULs heritage dates back to 1888, when the first Unilever product, Sunlight, wasintroduced in India. Local manufacturing began in the 1930s with the establishmentof subsidiary companies. They merged in 1956 to form Hindustan Lever Limited(The company was renamed Hindustan Unilever Limited on June 25, 2007). Thecompany created history when it offered equity to Indian shareholders, becoming

Page4the first foreign subsidiary company to do so. Today, the company has more thanthree lakh resident shareholders.HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk,Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna,Kwality-Walls - are household names across the country and span many categories -soaps, detergents, personal products, tea, coffee, branded staples, ice cream andculinary products. They are manufactured in over 35 factories, several of them inbackward areas of the country. The operations involve over 2,000 suppliers andassociates. HUL's distribution network covers 6.3 million retail outlets includingdirect reach to over 1 million.HUL has traditionally been a company, which incorporates latest technology in all itsoperations. The Hindustan Lever Research Centre (now Hindustan UnileverResearch Centre) was set up in 1958.

Doing Well by Doing GoodHUL believes that an organisations worth is also in the service it renders to thecommunity. HUL focuses on hygiene, nutrition, enhancement of livelihoods,reduction of greenhouse gases and water footprint.It is also involved in educationand rehabilitation of special or underprivileged children, care for the destitute andHIV-positive, and rural development. HUL has also responded in case of nationalcalamities / adversities and contributes through various welfare measures, mostrecent being the relief and rehabilitation of the people affected by the Tsunamidisaster, in India.

HULs Project Shakti is a rural initiative that targets small villages populated by lessthan 5000 individuals. Through Shakti, HUL is creating micro-enterpriseopportunities for rural women, thereby improving their livelihood and the standardof living in rural communities. Shakti also provides health and hygiene educationthrough the Shakti Vani programme.The program now covers 15 states in India andhas over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villagesand directly reaching to over three million rural consumers.HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. Theprogramme endeavours to induce adoption of hygienic practices among rural


4/41

Indians and aims to bring down the incidence of diarrhoea. It has already touched120 million people in approximately 50, 676 villages across India.If Hindustan Unilever straddles the Indian corporate world, it is because of beingsingle-minded in identifying itself with Indian aspirations and needs in every walk oflife.

VisionPage5Unilever products touch the lives of over 2 billion people everyday whether that's through feeling great because they've gotshiny hair and a brilliant smile, keeping their homes fresh andclean, or by enjoying a great cup of tea, satisfying meal or healthysnack.

A clear direction

The four pillars of our vision set out the long term direction for the company wherewe want to go and how we are going to get there:yWe work to create a better future every dayyWe help people feel good, look good and get more out of life with brands andservices that are good for them and good for others.yWe will inspire people to take small everyday actions that can add up to a bigdifference for the world.yWe will develop new ways of doing business that will allow us to double the size ofour company while reducing our environmental impact.We've always believed in the power of our brands to improve the quality of peopleslives and in doing the right thing. As our business grows, so do our responsibilities.We recognise that global challenges such as climate change concern us all.

Considering the wider impact of our actions is embedded in our values and is afundamental part of who we are.

Purpose & PrinciplesOur corporate purpose states that to succeed requires "thehighest standards of corporate behaviour towards everyone wework with, the communities we touch, and the environment onwhich we have an impact."

Always working with integrityConducting our operations with integrity and with respect for the many people,

organisations and environments our business touches has always been at the heartof our corporate responsibility.

Positive impactWe aim to make a positive impact in many ways: through our brands, ourcommercial operations and relationships, through voluntary contributions, andthrough the various other ways in which we engage with society.

Continuous commitmentWe're also committed to continuously improving the way we manage our


5/41

environmental impacts and are working towards our longer-term goal of developinga sustainable business.

Page6Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It'sunderpinned by our code of business Principles which describes the operationalstandards that everyone at Unilever follows, wherever they are in the world. Thecode also supports our approach to governance and corporate responsibility.

Working with othersWe want to work with suppliers who have values similar to our own and work to thesame standards we do. Our Business partner code, aligned to our own Code ofbusiness principles, comprises ten principles covering business integrity andresponsibilities relating to employees, consumers and the environment.

History of HULIn the summer of 1888, visitors to the Kolkata harbour noticedcrates full of Sunlight soap bars, embossed with the words "Madein England by Lever Brothers". With it, began anera of marketing branded Fast Moving ConsumerGoods (FMCG).Soon after followed Lifebuoy in 1895 and other famous brandslike Pears, Lux and Vim. Vanaspati was launched in 1918 andthe famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan VanaspatiManufacturing Company, followed by Lever Brothers India Limited (1933) andUnited 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 firstamong the foreign subsidiaries to do so. Unilever now holds 52.10% equity in thecompany. The rest of the shareholding is distributed among about 360,675individual shareholders and financial institutions.The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, thecompany 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

Page7international acquisition. The erstwhile Lipton's links with India were forged in 1898.Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited wasincorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unileverfold through an international acquisition of Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously responded to the stimulus ofeconomic growth. The growth process has been accompanied by judiciousdiversification, always in line with Indian opinions and aspirations.The liberalisation of the Indian economy, started in 1991, clearly marked aninflexion in HUL's and the Group's growth curve. Removal of the regulatoryframework allowed the company to explore every single product and opportunitysegment, without any constraints on production capacity.


6/41

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In oneof the most visible and talked about events of India's corporate history, theerstwhile 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 50:50joint venture, Lakme Unilever Limited, to market Lakme's market-leadingcosmetics 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 jointventure to the company.HUL formed a 50-50 joint venture with the US-based Kimberly Clark Corporation in1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and KotexSanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited(UNL), and its factory represents the largest manufacturing investment in theHimalayan kingdom. The UNL factory manufactures HUL's products like Soaps,Detergents and Personal Products both for the domestic market and exports toIndia.The 1990s also witnessed a string of crucial mergers, acquisitions and alliances onthe Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired KothariGeneral Foods, with significant interests in Instant Coffee. In 1993, it acquired the

Kissan business from the UB Group and the Dollops Ice-cream business fromCadbury India.As a measure of backward integration, Tea Estates and Doom Dooma, twoplantation companies of Unilever, were merged with Brooke Bond. Then in 1994,Brooke Bond India and Lipton India merged to form Brooke Bond Lipton IndiaLimited (BBLIL), enabling greater focus and ensuring synergy in the traditionalBeverages business. 1994 witnessed BBLIL launching the Wall's range of FrozenDesserts. By the end of the year, the company entered into a strategic alliance withthe Kwality Ice-cream Group families and in 1995 the Milk-food 100% Ice-creammarketing and distribution rights too were acquired.Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internalrestructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in

1998. The two companies had significant overlaps in Personal Products, SpecialityChemicals and Exports businesses, besides a common distribution system since1993 for Personal Products. The two also had a common management pool and atechnology base. The amalgamation was done to ensure for the Group, benefits

Page8from scale economies both in domestic and export markets and enable it to fundinvestments required for aggressively building new categories.In January 2000, in a historic step, the government decided to award 74 per centequity in Modern Foods to HUL, thereby beginning the divestment of governmentequity in public sector undertakings (PSU) to private sector partners. HUL's entryinto 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 Pasteurised Crabmeatbusiness of the Amalgam Group of Companies, a leader in value added MarineProducts exports.HUL launched a slew of new business initiatives in the early part of 2000s. ProjectShakti was started in 2001. It is a rural initiative that targets small villagespopulated by less than 5000 individuals. It is a unique win-win initiative thatcatalyses rural affluence even as it benefits business. Currently, there are over45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and


7/41

reaching to over 3 million homes.In 2002, HUL made its foray into Ayurvedic health & beauty centre categorywith the Ayush product range and Ayush Therapy Centres. Hindustan UnileverNetwork, Direct to home business was launched in 2003 and this was followed bythe launch ofPure-it 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 sameyear 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.

MEANING OF THE NAME & HOW WAS ITNAMED& EVOLUTION OF THE NAME:HUL means Hindustan Unilever Limited formally it is known as Hindustan LeverLimited (HUL) through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.Ltd. and United Traders Ltd. in 1956. The company was renamed in late June 2007to Hindustan Unilever Limited.

Page9EVOLUTION OF THE LOGO:The previous logo represents the green and healthy scenario of the Indianeconomy. And the current logo expresses the vitality at the heart of ourbrands, our people and our values. Each icon within our logo represents anaspect of our business, showing that we add vitality in everything we do.(SUN): Our primary natural resource. All life begins with the sun theultimate symbol of vitality. It evokes Unilever's origins in Port Sunlightand can represent a number of our brands. Flora, SlimFast and Omo alluse radiance to communicate their benefits.

(HAND & FLOWER): Hand is a symbol of sensitivity, care and need. Itrepresents both skins and touch. Flower represents fragrance. When seen with thehand, it represents moisturizers or cream.(BEE): Represents creation, pollination, hard work and bio-diversity. Beessymbolize both environmental challenges and opportunities.(DNA): The double helix, the genetic blueprint of life and a symbol of bioscience.It is the key to a healthy life. The sun is the biggest ingredient of life, andDNA the smallest.

Page10(HAIR): A symbol of beauty and looking good. Placed next to the flower itevokes cleanliness and fragrance; placed near the hand it suggests softness.

(PALM TREE): A nurtured resource. It produces palm oil as well asmany fruits coconuts and dates and also symbolizes paradise.(SAUCES & SPREADS): Represents mixing or stirring. It suggestsblending in flavors and adding taste.(BOWL): A bowl of delicious-smelling food. It can also represent a readymeal, hot drink or soup.(SPOON): A symbol of nutrition, tasting and cooking.(SPICE & FLAVOURS): Represents chilli or fresh ingredients.


8/41

(FISH): Represents food, sea or fresh water.

Page11(SPARKLE): Clean, healthy and sparkling with energy.(BIRD): A symbol of freedom. It suggests a relief from daily chores, andgetting more out of life.(TEA): A plant or an extract of a plant, such as tea. Also a symbol ofgrowing and farming.(LIPS): Represent beauty, looking good and taste.(ICE CREAM): A treat, pleasure and enjoyment.(RECYCLE): Part of our commitment to sustainability.(PARTICLES): A reference to science, bubbles and fizz.(FROZEN): The plant is a symbol of freshness, the snowflake representsfreezing. A transformational symbol.

Page12(CONTAINER): Symbolizes packaging - a pot of cream associated with

personal care.(HEART): A symbol of love, care and health.(CLOTHES): Represent fresh laundry and looking good.(WAVE & LIQUID): Wave symbolizes cleanliness, freshness and vigour.Liquid a reference to clean water and purity.

ChronologyYEARMILESTONES188

8Sunlight soap introduced in India.1895Lifebuoy soap launched; Lever Brothers appointsagents in Mumbai, Chennai, Kolkata, and Karachi.1902Pears soap introduced in India.

Page13190

3Brooke Bond Red Label tea launched.1905Lux flakes introduced.1913Vim scouring powder introduced.191


9/41

4Vinolia soap launched in India.1918Vanaspati introduced by Dutch margarinemanufacturers like Van den Berghs, Jurgens,

Verschure Creameries, and Hartogs.1922Rinso soap powder introduced.1924Gibbs dental preparations launched.1925Lever Brothers gets full control of North West SoapCompany.192

6Hartogs registers Dalda Trademark.1930Unilever is formed on January 1 through merger ofLever Brothers and Margarine Unie.1931Hindustan Vanaspati Manufacturing Companyregistered on November 27; Sewri factory sitebought.193

2Vanaspati manufacture starts at Sewri.1933Application made for setting up soap factory next tothe Vanaspati factory at Sewri; Lever Brothers IndiaLimited incorporated on October 17.1934Soap manufacture begins at Sewri factory in October;North West Soap Company's Garden Reach Factory,Kolkata rented and expanded to produce Lever

brands.1935United Traders incorporated on May 11 to marketPersonal Products.1937Mr. Prakash Tandon, one of the first Indiancovenanted managers, joins HVM.


10/41

1939Garden Reach Factory purchased outright;concentration on building up Dalda Vanaspati as abrand.

Page141941Agencies in Mumbai, Chennai, Kolkata and Karachitaken over; company acquires own sales force.1942Unilever takes firm decision to "train Indians to takeover junior and senior management positions insteadof Europeans".1943

Personal Products manufacture begins in India atGarden Reach Factory.1944Reorganisation of the three companies with commonmanagement but separate marketing operations.1947Pond's Cold Cream launched.1951Mr. Prakash Tandon becomes first Indian Director.

Shamnagar, Tiruchy, and Ghaziabad Vanaspatifactories bought.195565% of managers are Indians.1956Three companies merge to form Hindustan UnileverLimited, with 10% Indian equity participation.1957Unilever Special Committee approves research

activity by Hindustan Unilever.1958Research Unit starts functioning at Mumbai Factory.1959Surf launched.1961


11/41

Mr. Prakash Tandon takes over as the first IndianChairman; 191 of the 205 managers are Indians.1962Formal Exports Department starts.196

3Head Office building at Backbay Reclamation,Mumbai, opened.1964Etah dairy set up, Anik ghee launched; Animal feedsplant at Ghaziabad; Sunsilk shampoo launched.1965Signal toothpaste launched; Indian shareholdingincreases to 14%.196

6Lever's baby food, more new foods introduced; Nickelcatalyst production begins; Indian shareholdingincreases to 15%. Statutory price control onVanaspati; Taj Mahal tea launched.1967Hindustan Unilever Research Centre, opens inMumbai.

Page15196

8Mr. V. G. Rajadhyaksha takes over as Chairman fromMr. Prakash Tandon; Fine Chemicals Unitcommissioned at Andheri; informal price control onsoap begins.1969Rin bar launched; Fine Chemicals Unit startsproduction; Bru coffee launched1971Mr. V. G. Rajadhyaksha presents plan for

diversification into chemicals to Unilever SpecialCommittee - plan approved; Clinic shampoolaunched.1973Mr. T. Thomas takes over as Chairman from Mr. V. G.Rajadhyaksha.1974


12/41


13/41

1992HUL recognised by Government of India as StarTrading House in Exports.1994

HUL's largest competitor, Tata Oil Mills Company(TOMCO), merges with the company, the biggest suchin Indian industry till that time.HUL forms Unilever Nepal Limited, HUL and US-basedKimberley-Clark Corporation form 50:50 joint venture- Kimberley-Clark Lever Ltd. - to market Huggiesdiapers and Kotex feminine care products. Factory setup at Pune in 1995; HUL acquires Kwality andMilkfood 100% brandnames and distribution assets.HUL introduces Wall's.1996

HUL and Indian cosmetics major, Lakme Ltd., form50:50 joint venture - Lakme Lever Ltd.; HUL entersbranded staples business with salt; HUL recognisedas Super Star Trading House.1996Mr. K. B. Dadiseth takes over as Chairman from Mr. S.M. Datta; Merger of Group company, Brooke BondLipton India Limited, with HUL, with effect fromJanuary 1; HUL introduces branded atta; Surf Excellaunched.199

7Unilever sets up International Research Laboratory inBangalore; new Regional Innovation Centres alsocome up.1998Group company, Pond's India Ltd., merges with HULwith effect from January 1, 1998. HUL acquires Lakmebrand, factories and Lakme Ltd.'s 50% equity inLakme Lever Ltd.2000

Mr. M. S. Banga takes over as Chairman from Mr. K.B. Dadiseth, who joins the Unilever Board; HULacquires 74% stake in Modern Food Industries Ltd.,the first public sector company to be disinvested bythe Government of India.2002HUL enters Ayurvedic health & beauty centrecategory with the Ayush range and Ayush Therapy


14/41

Centres.2003Launch of Hindustan Lever Network; acquisition of theAmalgam Group200

4Launch of "Pure-it" water purifiers

Page172006Brookefields food operations moved to Mumbai2007Company name formally changed to HindustanUnilever Limited after receiving the approval of shareholders during the 74th AGM on 18 May 2007

Sales of Brooke Bond and Surf Excel each cross theRs 1,000 crore mark2008HUL completes 75 years on 17th October 2008

Corporate GovernanceI believe that nothing can be greater than a business, however small it maybe, that is governed by conscience; and that nothing can be meaner orpettier than a business, however large, governed without honesty andwithout brotherhood.

-William Hesketh LeverTransparency and accountability are the two basic tenets of Corporate Governance.We, at Hindustan Unilever, feel proud to belong to a Company whose visionaryfounders had laid the foundation stone for good governance long back and made itan integral principle of the business, demonstrated in the words above.

Our approach to Corporate GovernanceTo succeed, we believe, requires the highest standards of corporate behaviourtowards everyone we work with, the communities we touch, and the environmenton which we have an impact. This is our road to sustainable, profitable growth andcreating long-term value for our shareholders, our people, and our businesspartners.The Company's foundation has therefore been rooted to stringent Corporate

Governance principles. At Hindustan Unilever, we believe that the principles of

Page18fairness, transparency and accountability are the cornerstones for goodgovernance. The HUL Code of Business Principles reflects the Company'scommitment to these principles. It is the Company's endeavour to continue toachieve highest governance levels.As regards the compliance with the requirements of Clause 49 of the Listing


15/41

Agreement with the Stock Exchanges, the Company is in full compliance with thenorms and disclosures.BOARD OF DIRECTORSThe Board of Directors of the Company represents an optimum mix ofprofessionalism, knowledge and experience. The total strength of the Board ofDirectors of the Company is 10 Directors comprising a Non-Executive Chairman,

four Executive Directors and five Non-Executive Independent Directors.COMMITTEES OF THE BOARDAudit CommitteeThe Audit Committee of the Company is entrusted with the responsibility tosupervise the Companys internal control and financial reporting process. The AuditCommittee also looks into controls and security of the Companys critical ITapplications,Remuneration and Compensation CommitteeThe Remuneration Committee is vested with all the necessary powers and authorityto ensure appropriate disclosure on the remuneration of whole-time Directors andto deal with all the elements of remuneration package of all such Directors withinthe limits approved by the members of the Company. The Compensation Committee

administers the stock option plan of the Company.Shareholder/Investor Grievances CommitteeThe Committee specifically looks into redressing of investors complaints withrespect to transfer of shares, non-receipt of shares, non-receipt of declareddividends and ensure expeditious share transfer process. The Committee alsomonitors and reviews the performance and service standards of the Registrar andShare Transfer Agents of the Company and provides continuous guidance toimprove the service levels for investors..Other Functional CommitteesApart from the above statutory committees, the Board of Directors have constituted

Page19other functional committees such as committee for approving disposal of surplusassets of the Company, committee for allotment of shares under ESOP to raise thelevel of governance as also to meet the specific business needs.

Corporate SocialResponsibility.(CSR) at HUL.Sales (2007-2008) = Rs.14000 crores (rounded off)

Net profit after tax = Rs.2000 crores (rounded off)CSR Budget: Not Available

CSR Activities

Page20GREENING BARRIERS:Water Conservation and Harvesting


16/41

(Linked to product Pure-it)HUL's Water Conservation and Harvesting project has two major objectives:a. to reduce water consumption in its own operations and regenerate sub-soil watertables at its own sites through the principles of 5R - Reduce, Reuse, Recycle,Recover and Renew;b. help adjacent villages to implement appropriate models of watershed

development.SHAKTI - Changing Lives in Rural IndiaShakti is HUL's rural initiative, which targets small villages with population of lessthan 2000 people or less. It seeks to empower underprivileged rural women byproviding income-generating opportunities, health and hygiene education throughthe Shakti Vani programme, and creating access to relevant information throughthe iShakti community portal.In general, rural women in India are underprivileged and need a sustainable sourceof income. NGOs, governmental bodies and other institutions have been working toimprove the status of rural women. Shakti is a pioneering effort in creatinglivelihoods for rural women, organised in Self-Help Groups (SHGs), and improvingliving standards in rural India. Shakti provides critically needed additional income to

these women and their families, by equipping and training them to become anextended arm of the company's operation.HEALTH & HYGIENE EDUCATIONLifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which wasstarted in 2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, WestBengal, Maharashtra, Orissa) with the objective of spreading awareness about theimportance of washing hands with soap.The need for a program of this nature arose from the fact that diarrhoeal diseasesare a major cause of death in the world today. It is estimated that diarrhoea claimsthe life of a child every 10 seconds and one third of these deaths are in India.According to a study done by the London School of Hygiene and Tropical Medicine,the simple practice of washing hands with soap and water can reduce diarrhoea by

as much as 47%. However, ignorance of such basic hygiene practices leads to highmortality rates in rural India.ECONOMIC EMPOWERMENT OF WOMENThe Fair & Lovely Foundation is HUL's initiative which aims at economicempowerment of women across India. It aims to achieve this through providing

Page21information, resources, inputs and support in the areas of education, career andenterprise. It specifically targets women from low-income groups in rural as well asurban India. Fair & Lovely, as a brand, stands on the economic empowermentplatform and the Foundation is an extension of this promise. The Foundation hasrenowned Indian women, from various walks of life, as its advisors. Among them are

educationists, NGO activists, physicians. The Foundation is implementing itsactivities in association with state governments.SPECIAL EDUCATION & REHABILITATIONUnder the Happy Homes initiative, HUL supports special education andrehabilitation of children with challenges.Asha Daan:The initiative began in 1976, when HUL supported Mother Teresa and theMissionaries of Charity to set up Asha Daan, a home in Mumbai for abandoned,


17/41

challenged children, and the destitute.Ankur:In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for specialeducation of challenged children. The centre takes care of children with challenges,aged between 5 and 15 years. Ankur provides educational, vocational andrecreational activities to over 35 children with a range of challenges, including sight

or hearing impairment, polio related disabilities, cerebral palsy and severe learningdifficulties.Kappagam:Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for specialeducation of challenged children, was set up in 1998 on HUL Plantations in SouthIndia. It has 17 children. The focus of Kappagam is the same as that of Ankur.Anbagam:Yet another day care center, Anbagam ("shelter of love"), has been started in 2003also in the South India Plantations. It takes care of 11 children. Besides medical careand meals, they too are being taught skills such that they can become self-reliantand elementary studies.

Company StructureHindustan Unilever Limited is India's largest Fast MovingConsumer Goods (FMCG) company. It is present in Home &Personal Care and Foods & Beverages categories. HUL has about15,000 employees, including over 1400 managers

Page22The fundamental principle determining the organisation structure isto infuse speed and flexibility in decision-making andimplementation, with empowered managers across the companys

nationwide operations.Board ofDirectorsThe Board of Directors as repositories of the corporate powers act as a guardian tothe Company as also the protectors of shareholders interest.

Executive directorsThe Executive directors are members of the HULManagement Committee as well as the Board of HUL.Mr. Nitin Paranjpe - CEO and Managing DirectorMr. Nitin Paranjpe (46), after obtaining a degree in BE(Mechanical) and MBA in Marketing (JBIMS) from Mumbai, joinedthe Company as a management trainee in 1987.

Mr. R. Sridhar - Chief Financial OfficerMr. Sridhar Ramamurthy (45) is a Chartered Accountant (Gold Medallist) aswell as a Cost Accountant and Company Secretary.Mr. Gopal Vittal - Executive Director, Home & Personal CareMr. Gopal Vittal (42), an alumnus of Madras Christian College, completed hisMBA from IIM, Kolkata. Mr. Vittal has 18 years experience in Marketing & Salesin FMCG market including Skin Care, Soaps and Laundry.Mr Pradeep Banerjee - Executive Director, Supply Chain


18/41

Mr Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980.

Non-executive directorsThe non-executive directors are the independent directors in the HUL BoardHarish Manwani - Chairman

Page23Mr. Harish Manwani (55), assumed charge as the Non-Executive Chairman of theCompany with effect from 1stJuly, 2005.D. S. Parekh - Independent DirectorMr. D. S. Parekh (64), is a B.Com graduate and holds a FCA degreefrom England and Wales. Mr. Parekh has held senior positions inGrindlays and Chase Manhattan.(Late)C. K. Prahalad - Independent DirectorProf. C. K. Prahalad (67), is the Paul and Ruth McCrackendistinguished University Professor of Corporate Strategy at theUniversity of Michigan. He received his Doctorate of BusinessAdministration from the Harvard Business School.

A. Narayan - Independent DirectorMr. A. Narayan (57), joined ICI India as a Management Trainee in1973 and grew through diverse functions and businesses beforebeing appointed as the Managing Director of ICI India in 1996.S. Ramadorai - Independent DirectorMr. S. Ramadorai (64), is the Chief Executive Officer and ManagingDirector of Tata Consultancy Services Limited; Chairman of TataTechnologies Limited and Chairman of CMC Limited.R. A. Mashelkar - Independent DirectorDr. R. A. Mashelkar (66), is presently the President of GlobalResearch Alliance, a network of publicly funded R&D institutes fromAsia-Pacific Europe and USA.

Management CommitteeThe day-to-day management of affairs of the Company is vestedwith the Management Committee which is subjected to the overallsuperintendence and control of the Board.

Page24The Management Committee is headed by Mr. Nitin Paranjpe andhas functional heads as its members representing variousfunctions of the CompanyMr. Nitin Paranjpe - CEO and Managing DirectorMr. Nitin Paranjpe (46), after obtaining a degree in BE (Mechanical) and MBA in

Marketing (JBIMS) from Mumbai, joined the Company as a management trainee in1987.Mr. R. Sridhar - Chief Financial OfficerMr. Sridhar Ramamurthy (45) is a Chartered Accountant (GoldMedallist) as well as a Cost Accountant and Company Secretary.Mr. Shreejit Mishra - Executive Director, FoodsMr. Shreejit Mishra (44), joined HUL on June 1st 1987. His 20 year experience in thecompany comprises of stints in General Management, Marketing Innovation andActivation, Brand & Services Development, Sales Management and Project


19/41

Management.Mr. Gopal Vittal - Executive Director, Home & Personal CareMr. Gopal Vittal (42), an alumnus of Madras Christian College,completed his MBA from IIM, Kolkata. Mr. Vittal has 18 yearsexperience in Marketing & Sales in FMCG market including SkinCare, Soaps and Laundry.

Mr. Hemant Bakshi - Executive DirectorMr. Hemanth Bakshi (44) joined the Company in June 1989 andhas worked in various sales and marketing assignments spanningacross Personal Products and Home Care categories.Mr Pradeep Banerjee - Executive Director, Supply ChainMr Pradeep Banerjee (51) joined HUL as a Management Traineein 1980.

Page25Mr. Ashok Gupta - Executive Director, LegalMr. Ashok Gupta (51), after acquiring Masters Degrees inCommerce & Laws, and having qualified as a Company Secretaryand Cost Accountant, joined Unilever India in 1989 as LegalManager (in Lipton India Ltd.).Ms. Leena Nair - Executive Director, HRMs. Leena (40) is an Electronic Engineer who discovered her passion for people andHR and switched lanes. She is a gold medalist and MBA in HR from XLRI,Jamshedpur.

Brands for life (ProductLine)Page26From sumptuous soups to sensuous soaps, our products all haveone thing in common. They help you get more out of life.Two out of three Indians use Hindustan Unilever products. Fromfeeding your family to keeping your home clean and fresh, ourbrands are part of everyday life.

Food BrandsHUL is one of Indias leading food companies. Our passion for

understanding what people want and need from their food - andwhat they love about it - makes our brands a popular choiceBrooke Bond 3 RosesPlayful banter, a little mischief, serious conversation theres notime for young couples like the time spent sharing a cup of 3 Roses.To keep a relationship going, every young coupleneeds a little time to talk.The perfect colour, strength and aroma of 3 Roses creates that perfect tea moment


20/41

where couples can spend time talking about the everyday issues that matter tothem.Whether it is playful banter, a little mischief or serious conversation, in the finalreckoning, its these little moments and conversations that make relationshipsstronger.Key facts

y3 Roses is a 30 year old regional brand and is the market leader in Tamil Nadu.yIt is one of the largest FMCG brands in Tamil Nadu across categories.yIt has a strong presence in both in home and out of home segments.yIt has two functionally differentiated variants - 3 Roses Natural Care and 3 RosesMind Sharp.Available in 3 Packs: 3 Roses Regular, 3 Roses Natural Care, 3 Roses Mind SharpAnnapurnaPartnering with the mom in nurturing her dreams, Annapurna Attais aimed at helping her provide wholesome tasty nutrition to herfamily.Annapurna Atta is aimed at helping the homemaker provide

wholesome, tasty nutrition to her family.Page27Launched nationally in 1998, Annapurna Atta is aimed at helping the homemakerprovide wholesome, tasty nutrition to her family.Annapurna was awarded the prestigious Awaaz Consumer Award for the mostpreferred brand of atta for two successive years in 2006 and 2007Key facts

yAwarded the prestigious Awaaz Consumer Award for the most preferredbrand of atta for 2006 and 2007.Available in 2 Packs: Annapurna Atta, Anna Pack 3Red Label

Indias favourite cup of tea, the great taste of Red Label bringspeople closer together and strengthens relationships.The brew that bonds.The taste of Red Label brings alive the little moments that bring us closer to peoplewe love. It is the simple act of sharing a cup of Red Label that often adds magic toeveryday moments, strengthening the relationships that matter most to us.Life is lived in those moments, one sip at a time.Key facts

yRed Label is a 105 year old brand and has tremendous equity and heritage in theIndian market.yIt is the second largest tea brand in the country.yIt has both leaf and dust variants, as well as a health and immunity variant -

Red Label Natural Care.yIt is now proven that regular consumption of 3 cups of Red Label Natural Careevery day can enhance one's immunity and help one fall ill less often.yRed Label holds the Guinness Record for the worlds largest tea party.Available in 2 packs: Red Label, Red Label Natural Care.Brooke Bond TaazaBrooke Bond Taaza lifts me and unshackles my mind, allowing meto see and realize possibilities.


21/41

The great refreshment of Taaza inspires women tohave an identity beyond their homes and to refreshtheir lives.Many young women in emerging India live life bound within their roles as a mother,wife and daughter in law. In the process, they lose their own identity. However, achanging India and examples of women achievers as portrayed by media, is leading

Page28to an awakening of her desire to carve out an identity for herself. She is howeverlimited by her own inhibitions and a sense of inertia.Key facts

yTaaza is a 20 year old brand with strong presence in North & West India.yIt is the 3rd largest tea brand in the country with a portfolio spanning in both leafand dust segments.yIt has a strong presence in the out of home segment in South India.Available in 2 Packs: Taaza, Taaza ThandaTaj Mahal

Brooke Bond Taj Mahal is an exclusive selection of teas for thediscerning consumer.A taste for the finer things in life.Crafted from carefully selected tender leaves from Indias finest tea gardens, thelingering aroma of Taj Mahal always has an impact. When a cup of Taj is served,compliments follow.Taj Mahal is not just a cup of tea, it is a sensory experience.Key facts

yTaj Mahal was launched in 1966 by Brooke Bond.yUstad Zakir Hussain, the tabla maestro was the brands ambassador for almost twodecades, exemplifying both discernment as well as the pursuit of excellence.yTaj Mahal since 2007 has Saif Ali Khan as its ambassador, a relevant choice for

todays IndianyTaj Mahal is the most premium brand of tea in the Indian market.yIt was the first brand to launch tea bags and is the only tea brand in India to be soldin vacuum sealed packs.Available in 3 Packs: Taj Mahal, Taj Mahal Tea Bags, Taj Mahal Flavoured TeaBagsBruEk cup Bru aur mood ban jaeSome moments in life are special and close to theheart. Bru makes these moments with loved ones evenmore magicalIts Indias largest coffee brand thatoffers a range of products in Instant coffee, Conventional coffee and

premixes....Its rich aroma and unique blend makes every momentcome alive

Page29In the year 1962 Brooke Bond India creates the branded roast and ground coffeesegment launching Deluxe green label. 1968 gave birth to the first Instant coffeechicory mix under the brand name BruKey Facts


22/41

yNumber 1 coffee brand in IndiayUnilevers only coffee brandyEnjoys a rich heritage, came into existence in 1962 under the brand name Deluxegreen labelyConsistently offering better and newer products to the consumer through improvedpackaging solutions and innovative product formatsyEnjoys a strong presence at various out of home locations.Available in 4Packs: Bru Roast and Ground- Indias original f ilter coffee, BruInstant now with even more aroma, Bru Ice cappuccino, Bru hot cappuccino in 4exciting flavours.KissanWith Kissan, good food is loved not shoved!Kissan acts as a catalyst, easing stressful moments atthe dining table. With Kissan, good food is loved notshoved!Kissan wants to be the brand which will help dissolve tension between mother andthe family during informal good food moments.

Key factsyKissan is in its 62nd year of its existence in India.yCategory leaders in Jams with an All India Share of 65%.Variants Available: Kissan Jam, Kissan Juice, Kissan Tomato Ketchup, KissanTomato Ketchup, Kissan Jam Squeeze Green Apple, Kissan Jam Squeeze Mango,Kissan Jam Squeeze Pineapple, Kissan Jam Squeeze Strawberry.Kissan Amaze BrainfoodKissan Amaze Brainfood is specifically designed for the mentaldevelopment of kids.Good nutrition is the key for developing childrens brains andbodies to their full potential. Kissan Amaze Brainfood helps momscontribute to their kids brighter future by helping their mental

development.Kissan Amaze Brainfood is a range of nutritious products specifically designed toprovide 33% of key brain nutrients children need daily for mental development.

Page30Amaze fits in a healthy diet and has a nutritional composition in line withinternational recommended dietary intakes for balanced nutrition for schoolchildren. The bad nutrients like sugars, salt, trans fat and saturated fat are keptas low as possible and adequate quantities of all the key nutrients which supportthe development of the brain (like Iodine, Zinc and Omega 3 fatty Acids and BVitamins), in particular are added.Key facts

ySpecifically designed for the mental development of childrenyProvides 33% of key brain nutrients.yAvailable in Smart Mix & Brainy Bites.yAvailable in the state of Tamil Nadu, Andhra Pradesh & Karnataka.Range Available: Smart Mix in Chocolate & Vanilla Flavours, Brainy Bars in ChocolateFlavour

KnorrKnorr helps families make meal times special, nutritious, tasty and


23/41

healthy.Knorr helps families make meal times special,nutritious, tasty and healthy.It is not wrong to say that the category of soups was launched by Knorr in India. TheKnorr range of soups is available in a number of tasty and exciting varieties. Thereis a flavour to literally suit every taste palate; the Classic range of soups with

flavours like Thick Tomato, Mixed Vegetable and Chicken Delite, the Oriental rangewith flavours like Sweet Corn Vegetable, Sweet Corn Chicken and Hot n Sour andthe Snacky range (pasta /noodles in soup) with innovative flavours like MasalaTwisty Pasta soup and Thai Curry Noodle soup.This year has also seen the addition of the Indian soup range with lip smackingflavours inspired by Indian cuisine; these include soups like Tomato Chatpata, CornMast Masala , Veg Hara Bhara, etc.Key facts

yKnorr in India is generic to soups.yKnorr is the largest soup brand in India and has a lions share of the soup market inIndia 70%yAll Knorr products have no added preservatives and are a healthy choice option.Range Available: Classic Thick Tomato Soup, Sweet Corn Veg Soup, Hot n SourVeg soupTomato Twisty Pasta Soup, Tomato Chatpata Soup, Chinese Manchurian, PaneerButter Masala,Punjabi Chana MasalaKwality WallsA good honest scoop of daily pleasure.

Page31Kwality Walls, the brand with a big heart, offers a range ofdelightful frozen desserts that bring smiles to the faces of millions

of Indians kids, teens and adults. We do so with our very popularbrands - Cornetto, Feast, Paddle Pop, Selection & our award winningparlour concept, Swirls.In a world of stress, denial and restraint, providing moments of daily pleasure toconsumers, through our delightfully delicious products, is our passion. We believe inspreading happiness and smiles through every cone, cup, stick and tub we sell. Ourbiggest satisfaction comes from the look of bliss and happiness of our consumersfaces, as they devour our products.Our passion is inspired by our love for simple ingredients like Milk, Fruit andChocolate, which make our products the best Pleasure Food there is.Mention ice cream, and most people in India think of Kwality Walls and the bigheart. The brand with the big heart logo is behind many much-loved ice cream

classics - from indulgent treats like Cornetto & Feast (for teens and young adults),to Moo & Paddle Pop (for kids), to family favourites like our Selection range of RedTubs, Italian Gelato and Viennetta.Key facts

yUnilever is the world's largest ice cream manufacturer with an annual turnover ofmore than 5 billion.yHeartbrand products are sold in more than 40 countries worldwideyAlso sold as Algida in Italy & Turkey, Langnese in Germany, Kibon in Brazil, Streetsin Australia and Ola in the Netherlands


24/41

yKwality Walls turnover has doubled in the last 3 years. We strive to keep driving thebusiness at growth rates significantly ahead of market, and become the number onefrozen dessert/ Ice Cream player in India.Range Available: Cornetto, Feast, Paddle Pop, SelectionLiptonLipton has a range of vitality teas that truly encompass the

goodness of teaWorlds #1 tea brandLipton Yellow Label is a premium, full-bodied tea, made out of the finest teas,perfect for the healthy Indian .Lipton Yellow Label has a unique blend that has highlevels of natural Theanine, which along with other goodness of tea can help youclear your mind.The range also contains, Lipton Clear Green tea, which combines the goodness ofantioxidants and purifying effect of water to help cleanse your body naturally.Key factsLipton is the #1 tea brand in the world

Page32Ranges Available: Lipton Yellow Label, Lipton Clear Green Tea, Lipton DarjeelingTea

Home Care BrandsHUL has a diverse portfolio of brands offering home care solutions formillions of consumers across India.Active WheelActive Wheel de "Mehnat se Aazadi" Freedom from painful &tiring laundry.Active Wheel enables consumers to perform laundrychores, giving Great Clean within less effort.

Key FactsyWheel, biggest laundry brand in India, dominates a complex mass market laundrybusiness in India.ySales Turnover of about 1500 crs in 2007 as per AC Nielson Data.yWheel powder commands the market with 20 shares as per AC Nielson data.yIts contribution to HPC business in Value and Volume terms is 17% and 47%respectively.Range Available: Active Wheel Easy Wash (Blue), Active Wheel Easy Wash Green, Active Wheel Gold

Page33CifCif- the best cleaner to let you shine.Cif- The Worlds leading cream cleaner which gives youthe power to deal with the toughest dirt is now inIndia.You can use Cif on all types of surfaces- Kitchen tiles, gas stove, kitchen platform,floor, mirror, fridge, taps, bath tub and furniture.Key Facts

yCif is the number 1 cream cleaner in the World.


25/41

yIt is the number one cleaner in various countries including France, Germany, Russia.yIts a 500 million Euro Brand.yCif is Sold in 51 countries around the globe.Range Available: Cif Pack Blue, Cif Pack YellowComfortThe worlds largest fabric conditioner brand.For most homemakers, ensuring their family's wellbeingis of utmost importance. Every task, whether its preparing ameal or washing the clothes, is an expression of her love andaffection for the family.Key facts

yThe worlds largest fabric conditioner brand.yWorldwide sales of over Euro 750 million. (approx. 4,500 crore)yComfort is the No. 1 in 14 of the 23 countries in which it is sold!Range Available: Comfort Lilly Fresh, Comfort BlueDomexThe sheer power of Domex bleach gives you the confidence

you need, eradicating all known germs.

Page34The sheer power ofDomex bleach gives you the confidence youneed, eradicating all known germs. With Domex, you can beabsolutely certain that the job is done.Key facts

yDomex is the number 1 or 2 bleach in 9 countries ( Croatia, Greece, Hungary, India,Ireland, Netherlands, Philippines, Poland, South Africa).yDomex is sold in 35 countries globally.yThere are more than 250 million sales of Domex every year.y

Domex is also sold as Domestos, Glorix, Klinex.Range Available: Domex Toilet Cleaner Blue, Domex Toilet Cleaner - Pine Blast,Domex Toilet Cleaner Lemon Explosion, Domex Toilet Cleaner Pink Power,Domex Disinfectant Floor Cleaner, Domex Phenolic, Domex Atlantic Toilet Block,Domex Citrus Toilet Block,RinRin provides best in class whiteness which is demonstrable.Clothes talk for us. Rin plays an integral part inenabling us to look good by providing demonstrably superiorwhites, giving us the confidence to realize our ambitions.Sparkling white - clean clothes not only help us form great impressions on thepeople we meet but also provide us confidence to realize our ambitions. Rin

understands this need and strives to deliver best in class whiteness throughcontinuous innovation and product improvements supported by memorablecampaigns like Uski saari, meri saari se safed kaise in the 90s to Safedi kaShehanshah with Amitabh Bachchan. In 2007, Rin introduced the first ever shadein the laundry category, offering proof of whiteness to consumers with the KyaSaboot Hai campaign with Boman Irani.In 2008 Rin has been re launched and now provides Dugni Safedi, Dugni Chamakas compared to ordinary powders.Rin Matic, a specialist washing machine powder, launched in July 2008, is based on


26/41

the insight that ordinary powders do not deliver under machine wash conditions,thus requiring intervention. Hence, leading to a situation aptly articulated in thetagline Machine kare maaze, Biwi ghar pe kapde ghise. Now with Rin Maticconsumers can delegate laundry back to machine, because Chamkti safedi hai,machine aur Rin Matic ka kaam.Key Facts

yRin was launched in India as a bar in 1969 with the iconic lightning mnemonic.yRin powder was launched in 1994 as Rin Power WhiteyRin Matic for washing machines, launched in July 2008ySold in developing markets in Africa, Asia and Latin America.

Page35ySold as Brilhante (Brazil), Rin (India) and under other local brand names.Range Available: Rin Bar, Rin Powder, Rin Jasmine Powder, Rin MaticSunlightSunlight is a color care brandA dash of pink, a splash of yellow, a hint of purple

and a bit of orange. Colours can liven up anywardrobe and can make you look and feel precious and iftheres one detergent brand thats committed to colour care, itsSunlight.Sunlight keeps your clothes sparkling clean besides keeping the colours bright forlong and preventing any colour loss. Thats why its patrons haveelevated it to thestatus of the No. 1 brand in the states it is present in, Bengal and KeralaKey Facts

yFirst Brand of unilever in IndiayNo 1 brand in Kerala and West BengalRange Available: Sunlight 1kg, Sunlight SachetSurf Excel

Giving your kids the freedom to get dirty and experience life,safe in the knowledge that Surf Excel will remove thosestains.When children go out to play and get dirty, they don't just collectstains. They experience life, make friends, share with each otherand learn from each other. This helps them get stronger and getready for the world outside.Surf Excel quick wash is powered with a path-breaking technology- it reduces waterconsumption and time taken for rinsing by 50%. It is a significant benefit, given theacute water scarcity in most of India.Key Facts

Surf Excel was introduced in 1959Range Available: Surf Excel Quick Wash Detergent Powder, Surf Excel BlueDetergent Powder, Surf Excel Detergent Bar, Surf Excel Gentle Wash, Surf ExcelMatic Top Load, Surf Excel Quick Wash Detergent Powder

Page36VimCreated in 1885, the Vim brand is still innovating and usingthe magic of natural ingredients to create unbeatable results


27/41

over a hundred years later.Created in 1885, the Vim brand is still innovating and using themagic of natural ingredients to create unbeatable results over ahundred years later.Key Facts

y

Vim was the original hand dishwashing brand: so we invented the whole category!yVim is sold in four continents, is the leading hand dishwashing brand in twentycountries, and is available to more than 2 billion people around the world.yVim began life as a soap (both in England, and in Thailand, where King Rama Vasked Unilever to supply his household with soap), but is now available as acomplete range of hand dishwashing including bars, powders and liquids.Range Available: Vim Plastic Coated Bar, Vim Anti-Bactria Bar with Plastic Coat,Vim Ultra Powder, Vim Popular, Vim Drop Active Gel Lemon, Vim Drop Active GelLime, Vim Drop Active Gel Orange, Vim Drop Active Gel Pouch.

Personal Care BrandsOur personal care brands, including Axe, Dove, Lux, Pond's, Rexona and

Sunsilk, are recognised and love by consumers across India. They helpconsumers to look good and feel good and in turn get more out of life.AvianceAviance enables women actualize their unique potentialthrough expert customized beauty solutions.The Aviance promiseAviance believes that no two women are alike. A truly beautiful woman is constantlysearching for ways to express and celebrate her own individuality. Aviance wascreated to empower this woman. Encourage her. And help her become all she canbe.

Page37Total beauty solutionsAviance is an exquisite range of high technology, high performance expert beautysolutions for todays progressive woman. The Aviance range of beauty solutionsincludes customized skincare, haircare and a wide range of cosmetics that aredeveloped using Unilevers advanced technology to deliver results you can see.What truly sets Aviance apart from other beauty products is the fact that Avianceproducts are brought to women with professional beauty advise from trainedAviance Consultants.AxeAxe with Best Quality FragranceAXE is a cool, iconic, youth brand available in morethan 60 countries. In India, Axe, which has beenlaunched in 1999, is the largest selling Male Deodorant.AXE is a cool, iconic, youth brand available in more than 60 countries around theworld. It was launched in India in 1999 and has already become the largest sellingMale Deodorant in India. Apart from the deos, Axe also provides a grooming rangefor the young Indian male, viz. Shaving Gel, Foam, After-Shave lotion, and CologneTalc.Key facts

yNumber 1 male deodorant brand in India.


28/41

yAvailable in over 60 countries first.Range Available: Axe Instinct - Deodorant & After shaving lotion, AxeDarkTemptation - Deodorant & After shaving lotion, Axe Pulse - Deodorant & Aftershaving lotion, Axe Denim Deodorant & After shaving lotion, Axe Click Deodorant, Axe Touch Deodorant, Axe Dimension Deodorant Limited Edition,Axe Summer Deodorant Limited Edition

LEVER Ayush TherapyLEVER Ayush aims to help a new generation of Indians rediscovereveryday health and vitality through customized Ayurvedicsolutions.Rapid urbanization, booming economy, new job opportunities andhigh disposable incomes in India have paved way for an affluentlifestyle. But they also put you at the risk of lifestyle diseases likehigh blood pressure, diabetes, obesity, heart diseases etc. ThroughAyush, this new generation of Indians can rediscover everydayhealth and vitality through customized Ayurvedic solutions.

Page38Ayush Therapy range is endorsed by Arya Vaidya Pharmacy, one of Indias mostreputed houses of Ayurveda and created by Hindustan Unilever Ltd., Indias leadingFMCG company.Key Facts

yLEVER Ayush has five categories across health care and personal care rangeyLEVER Ayush is a unique combination of the Truth of Ayurveda with the Proof ofScience.yIt is also endorsed by Arya Vaidya Pharmacy, CoimbatoreyFree from harmful levels of heavy metals like Arsenic, Mercury and Lead; Pesticidesand Bacterial contamination.Breeze

Breeze, with the goodness of glycerine gives soft, fragrant andsmooth skin.Breeze makes use of a new revolutionary globaltechnology which enhances the impact of world class perfumes in amuch larger way, apart from bringing out the goodness of glycerine.New Breeze is filled with the goodness of glycerine, which makes your skin soft andsmooth.Key facts

yLaunched in 1988 as a family beauty soap with the promise of a fresh feeling ofnatureyComes in 5 attractive variants Lemon Twist, Rose Mallika, Sandal Sparsh, Rajnigandha & Morning MuskaanClearNew Clear with Essential Oils, guarantees Zero dandruff and leavesyour hair feeling fabulous.New Clear. Zero dandruff, Just fabulous hairThe Clinic All Clear brand was launched in 1980 in India. It was known as ClinicSpecial then and its name was later changed to Clinic All Clear in 1996.The brand isalso present as Clearin 14 other countries worldwide. To align itself to theinternational quality standards this year Clinic All Clear has been relaunched this


29/41

year as Clear.Clear is available in 5 variants, each catering to a specific scalp/hair need.yClear Active Care

Page39yClear Ice CoolyClear Hairfall DefenseyClear Soft GlossyClear Radiant BlackKey facts

yPresence in countries like Indonesia, thailand, phillipines, vietnam, arabia, russia,turkey etcyClinic is Clear is the only brand that offers specially formulated Anti dandruffshampoo for menyClinic All Clear also has Anti Dandruff Hair Oil thatyFights dandruff gently and effectively, giving you dandruff free hair.

yStrengthens hair from scalp to give you hair full of health.

Clinic PlusClinic Plus is Indias largest selling shampoo and has won the trustthe millions of families across India.Clinic Plus understands that healthy hair is animportant asset which helps your family progress in life andempowers you.For over 20 years, for most Indians, a shampoo means Clinic Plus. Over this periodof time the brand has constantly evolved to meet the hair care needs of millions.Clinic Plus appeals the most to mothers and daughters who are most concernedabout the health of their hair.Clinic plus offers 3 types of shampoos:Clinic Plus Clean and Thick Shampoo

Clinic Plus Anti-Dandruff ShampooClinic Plus Naturals ShampooKey facts

yLargest selling shampoo in India.yLargest distributed shampoo in IndiayIts known as Lifebuoy in Pakistan, Sri Lanka, Indonesia and Vietnam and inPhilippines its known as VaselineyIts a huge $200mn brand across the 6 countries where it is present.CloseupFreshness that brings you Closer

Page40Closeup is synonymous with Freshness that gives you theconfidence to be close to someone.Closeup, since its launch, has been synonymous with Freshness that gives you theconfidence to have close physical proximity with someone.Key facts

yFirst HUL offering in the oral care categoryyFirst gel toothpaste in India launched in 1980yMarket leader in the gel-segment for almost 3 decades


30/41

yMaking stars out of models (Present-day stars like John Abraham, DeepikaPadukone, Salman Khan, etc. are some of many who have been models of Closeupin the early days of their careers).DoveDove stands for real beauty. All around the world, Dove is makingreal women feel more beautiful!

Since 1993, Indian women have relied on Dove forbeautiful skin. Dove is known to be a keeper of promises and hasgiven real products to women world over. To help you enjoy yourown brand of beauty, Dove provides a wide range of personal care,hair care, skin care and deodorants. So choose a new way ofpampering your skin, everyday, with Dove.Dove Bar and Skin CleansingDove Hair care rangeDove Anti-perspirant DeodorantsDove Lotions and CreamsKey facts

yLaunched first in the US in 1957; is one of the leading brands of Unilever globally.yDove has its footprint in 80 countries worldwide with a range of superior productsfrom bar, lotions, body washes, face care and creams.yIt is the leading bar brand in UK, US and Canada.yFastest growing hair category brand in IndiaFair & LovelyMore than 30 years ago, a unique brand was born. Wrapped withina humble lavender tube, it went on to become the Worlds No.1Fairness cream.

Page41Worlds No.1 fairness cream, HULs largest skin-brand. How Fair &

Lovely is that!Enablinga billion women in Asia/AMETto carve out their destinies thattransforms their lives.Fair & Lovelys skin-lightening technology is known to be the best in the world!However, this hasnt stopped the brand from innovating further to pioneer thedevelopment of cutting-edge fairness solutions.Key factsKnow Fair & Lovely even better!

yDeveloped in 1975, Fair & Lovely is the worlds first fairness cream.yIt contains no bleach or harmful ingredients. Instead, it provides visible fairness in asafe and reversible process.yIn 2003, it was rated as the Twelfth Most Trusted Brand in India by ACNielsen ORGMARG.yIn 2004, it was identified as a Super Brand.HamamHolistic skin care experiences perfected over the ages to deliverhealthy, beautiful skin.Hamam brings alive the wisdom behind time-lessskincare rituals in convenient and contemporary formatsLaunched in 1931 as a mild, family soap, Hamam soon drew alarge naturalfollowing long before it was trendy or fashionable. Perhaps the only


31/41

Indian-made natural soap at the time, Hamam was embraced by mothers anddoctors alike, for its purity and safety on skin.Key facts

yOnly 400 crore Herbal soap brand in the personal care segmenty21.36% market share in the South Indian state of Tamil NaduLakmeLakme is an ally to the Indian Woman and inspires her to expressher unique beauty and sensuality. Thus, enabling her to realize thepotency of her beauty.Lakme is the Indian womans Beauty Sutra inspiring expression of her unique beauty and sensualityKey facts

yLakme was the first major beauty brand in India and takes pride in being the experton Indian Beauty for over 50 years.

Page42yIt is complete beauty brand spanning colour cosmetics, skin care & hair styling

products and extending to beauty services through the network of Lakme BeautySalons.yIts bond with beauty and fashion is manifested through the Lakme Fashion Week,which is now the largest fashion event of its kind in the country.yLakme has a foot print of over 1200 assisted sales outlets, which is the largest spanof outlets with Beauty Advisors in the country.LifebuoyLifebuoy is available in multiple variants in soaps and specialistformats such as liquid handwash, catering to the entire family.Lifebuoy, an undisputed market leader for 112 years,has a compelling vision to make 5 billion people across the world,feel safe and secure by meeting their personal care hygiene &

health needsLifebouy has a strong social mission, promoted through its rural hygieneprogramme, Lifebuoy Swasthya Chetna, which propogates the practice of handwashing with soap to reduce diarrheal deaths.Key facts

yUndisputed Leader in the soaps market of India, with 18.4% share.yTurnover of 350 million a year globally, 200 million in India.yHas a consumer base of 140 Million households in IndiayThe iconic jingle of Lifebuoy tandrusti ki raksha.. is almost like the healthanthem of India and IndiansyRecent Awards:Voted in the top 10 most trusted brands in India in the Brand EquitySurvey (came in at No. 9 in 2008 as well)Marketing excellence awards for itsrecent innovations and activations:yGold at the Emvies 2008 for best use of media innovationyASIA Pacific CSR Award 2007, for Lifebuoy Swasthya ChetnaLirilAwaken, and enliven your senses with a Liril bath.Over time, Liril has come to be synonymous with thefreshness of limes, active energy and freedom ofexpression by its symbolic display of the uninhibited female form.


32/41

Key facts

yLiril was launched in 1977. Its 30 years old!yLiril has been a trendsetter over times. The soap & its advertising have beenconsidered to be revolutionary!

Page43yThe first TV ad dates back to 1985. The Liril expressions, associations & the Liril adsare recalled even till now!LuxLux believes in passion for beauty. It continues to be a favorite withgenerations of users for a sensuous experience of luxury.Lux stands for the promise of beauty and glamour asone of India's most trusted personal care brands.Key facts

yLux stands amongst Indias top 10 most trusted brandsyRecent Awards: Lux PR campaign(India): Diva Temptation awarded Gold at AMEAwards , Hong Kong, 09, Readers Digest Trusted Brand 08, Brand Equity Most

Trusted Brands 08, Awards CNBC Awaaz Consumer Awards 07, 4Ps Power BrandAwards 07PearsPears the purest and most gentle way to skincare!Pears launched in India in 1902, exuberates a longheritage of purity. It is so pure that you can actuallysee through it!Pears launched in India in 1902, exuberates a long heritage of purity and has apristine quality.Pears is available in three variants - the traditional Pure & Gentle variant, a greenvariant for oil control and a blue variant for germ protection.Key facts

yThe story of this popular soap was first created in 1789 by a young man calledAndrew Pears. This is from whom it derived its name!yThe most famous Pears 'face' is 'Bubbles', from an original painting by Sir JohnEverett Millais in 1866. The painting later came to be the very first advertising onthe brand!PepsodentPepsodent India is committed to improve the overall Oral health ofIndians.Pepsodent is a 15 year old brand that offers variousoral care solutions to specific need based solutions.

Page44Pepsodent was launched in 1993 in India and since then the brand has raised thebenchmark on Oral Care solutions in India.Key facts

yEndorsed by FDI ( the largest dental association globally)yAmong the most trusted brands in India (Brand Equity, Economic Times, India)yAlso sold as Mentadent, Zhonghua, PS and Signal in other countriesPondsGet the expert to look after your skin


33/41

Ponds, has been listening to womens needs anddesires for 150 years and this has enabled us todeliver new products customised to their needs. Pondsaccompanies them on their journey to enhance the beauty of theirskin.

RexonaRexona gives you 24 hr protection from sweat and body odour andtherefore the confidence to handle whatever the day has in store.Rexona is the world's leading anti-perspirant brand. Itwas the first anti-perspirant deodorant to be launched in India.Rexona is the world's leading anti-perspirant brand and is number one in more than40 countries out of the 90 countries its present in. It was the first Anti-PerspirantDeodorant to be launched in India, way back in 1995. Targeted at both men &women, this anti-perspirant deodorant was the first to talk about body odour as aproblem.Key facts

yWorlds leading Deodorant Brand

yNumber one Deodorant brand in more than 40 countries.yFirst Deodorant Brand to be launched in India, launched in 1995SunsilkSunsilk encourages young women in India to live for today. Sunsilkhelps you transform the beauty of your hair instantly because LIFECAN'T WAIT!!For 20-something single girls, hair is often an emotionalrollercoaster. Sunsilk understands and has designed its wash, care

Page45and styling collections to enable her to express herself, through herhair.Sunsilk brand was launched in 1964 and is a global brand with its presence across80 countries.The new Sunsilk range comprises of the following variants to suit your hair type:Sunsilk Thick & long shampoo & conditionerSunsilk soft and smooth shampoo & conditioner.Sunsilk hairfall solution shampoo & conditionerSunsilk damage repair shampoo, conditioner and leave-on.Blackshine shampoo & leave-onAnti-dandruff shampoo & scalp lotionSunsilk Straight n sleek shampoo, conditioner and anti-frizz lotion:Sunsilk Curls & waves bounce shampoo, conditioner & mousse:Sunsilk layers & texture definition shampoo, conditioner & wax:

Key factsyNumber 1 in Asia, Latin America and the Middle EastySales of more than 1 billion a year.ySelling in 80 countries.yAlso sold as Elidor, Hazeline, Seda and Sedal.yRecent Awards: Holds the Guinness World Record for the most heads of hair washedand styled in one day.yCreated the largest community for Indian girls which is


34/41

www.sunsilkgangofgirls.comVaselineYour skin is amazing. It deserves to be treated as such.Nobody knows skin and how to keep it at its healthybest better than Vaseline.Your skin is amazing. It's your waterproof barrier. It's how you sense and adjust toyour surroundings. Constantly growing and replacing itself. It's easy to take skinand all of its properties for granted, but we never did. For years we've marveled atskin and have developed products to help keep it amazing.

Page46WaterPure-it is the worlds most advanced in-home water purifier. Pure-it, abreakthrough offering of Hindustan Unilever (HUL), provides completeprotection from all water-borne diseases, unmatched convenience andaffordability.

Pure-its unique Germkill Battery technology kills all harmful viruses and bacteriaand removes parasites and pesticide impurities, giving you water that is "as safeas boiled water". It assures your family 100% protection from all water-bornediseases like jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt needgas, electricity or continuous tap water supply.Pure-it not only renders water micro-biologically safe, but also makes the waterclear, odourless and good-tasting. Pure-it does not leave any residual chlorinein the output water.The output water from Pure-it meets stringent criteria formicrobiologically safe drinking water, from one of the toughest regulatoryagencies in the USA, EPA (Environmental Protection Agency).The performance of Pure-it 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-ofthe-art engineering developed by a team of over 100 Indian and internationalexperts from HUL and Unilever Research Centres has made Pure-it possible at theconsumer price of just Rs. 2000Pure-it runs with a unique Germkill Battery Kit that typically lasts for 1500 litres*of water. The Germkill Battery Kitis priced at Rs.365. This means consumers willget 4 litres of water that is as safe as boiled water for just one rupee, whichworks out to an extremely affordable 24 paise per litre.

Page47Pure-it in-home purification system uses a 4 stage purification process to deliver as

safe as boiled water without the use of electricity and pressurized tap water. Pureitpurifies the input drinking water in four stages, namely;1. Micro-fiber MeshTM - Removes visible dirt2. Compact Carbon TrapTM - removes remaining dirt, harmful parasites &pesticide impurities3. Germkill ProcessorTM uses 'programmed chlorine release chlorine technology'and its stored germkill process targets and kills harmful virus and bacteria4. PolisherTM removes residual chlorine and all disinfectant by-products, givingclear odourless and great tasting water


35/41

5. Battery Life Indicator - Ensures total safety because when the germkill poweris exhausted, the indicator turns red, warning you to replace the batteryAdvanced Auto-Switch off - In case, the battery is not changed when it turnsfully red, as an additional assurance of safety, the advanced Auto-Switch off willautomatically switch-off the flow of water.Protect your loved ones with a Pure-it today!

Market Share of Hindustan UnileverLimitedIn the above pie chart we see the position of various FMCG companies doingbusiness in India. We can see that HUL is enjoying the position of market leader andis followed by ITC as close second in the market share of FMCG products.

Page48THE COMPARATIVE DATA OF % MARKET

SHARE OF HUL AND

ITS COMP

ETITOR INQUARTER ENDED JUN08(Above graph showing %age Market share of HUL and its competitor in differentcategories of FMCG products)As mentioned in the above graph, HUL is enjoying the leader position in the marketand is having highest market shares which are followed by the market challengerslike Dabur India Ltd, Nestle India Ltd, and ITC LTD, ETC..In different categories ofFMCG products like shampoo, skincare , deo, jams, coffee, etc.In some category these market challengers are giving high level competition indifferent product lines such as ketchup and toothpaste (As shown in the graphbelow)(Above graph showing the two category of products in which HUL percentagemarket share is less than its competitor in Quarter ended JUN08)So we can see that in overall FMCG business HUL is distantly ahead of rest of thecompanies as far as market share of different products are concerned.

Page49 PERFORMANCE ANALYSISHindustan Unilever Ltd is one of the leading FMCG company in India which havingthe following past financial records we have taken for the analysis as follows:Table showing past 10 years financial dataRs.Lakhs

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007P & L

a/cSales 10215241091769

113921411781301095161


36/41

1109602

1088838119755

31303506

1475742

OtherIncome24474 31898 34507 38179 3845445983 31883 30479 35451 46268

Interest(2928) (2239) (1315) (774) (6676) (6676) (12998

)(1919) (1073) (2550)

PAT 113044 138794 166509 194337 224495 224495 150532 160447 186168 218453PBT 83744 106994 131009 154095 180434 180434 119928 135451 153967 176906

DATA ANALYSIS:

We have the sales and profit figures of HUL from the year 1998 to 2007 in the10year past data from Yr1998-2007, after plotting two graph one of sales & other ofprofit as shown in here we can see that both profit and sales of the company rose

Page50from the year 1998 till 2001, but in the year 2002 we see that the sales fell butthere was actually rise in the profit of the company. In the year 2004 we see thatthere was a steep fall in the profit of the company and from the year 2005 onwardsthere was a slow but steady rise in the profit of the company, but a rapid rise in thesales of the company in the given years.Reason for the steep fall in the profit of the company in the year 2004:-yThe FMCG market in Urban India was attaining the saturation level and so

companies had to expand its market in rural India. This resulted in thedownfall in the profit of HUL. There was very aggressive advertisingcampaign by ITC in that year to set itself in the market this affected HUL whowas enjoying the position of market leader and resulted in the fall in theprofit of the company.In the following graph we can see the percentage growth in FMCG sales ofHUL from March quarter 07 to March quarter 08.(Graph showing the FMCG trend through last quarters)

Page51

SWOT AnalysisSTRENGTHHUL enjoys a formidable distribution network covering over 3400 distributors and16 million outlets. This helps them maintain heavy volumes, and hence, fill theshelves of most outlets. The new sales organization named 'One HUL' brings"Household and Personal Care" and foods distribution networks together, therebyaligning all the units towards the common goal of achieving success. HUL has beencontinuously able to grow at a rate more than growth rate for FMCG Sector, thereby


37/41

reaffirming its future stronghold in Indian market.Project Shakti (Discussed later in Detail)- Rural India is spread across 627,000villages and possesses a serious distribution challenge for FMCG Cos. HUL has comeup with a unique and successful initiative wherein the women from the rural sectormarket HUL products, and hence, are able to reach the same wavelength as of thecommon man in village. Apart from product reach, the initiative also creates brand

awareness amongst the lower strata of society. This has brought about phenomenalresults.

Page52WeaknessesHUL's market dominance, originating from its extensive reach and strong brand presence,allowed it to raise the prices even as raw materials were getting cheaper. Hence, though thevolumes decreased, the margins grew, and company was able to earn more profits. Buthigher margins attracted competition in areas of operations. HUL's strategy remainedfocused on creating power brands and earning higher margins. It was not left with any otheroption but to try cutting down the costs in order to protect volumes, if not increase it.

Page53As shown in above figure, the key differentiators for an FMCG player are ability tocall shots and pricing power, and HUL has shown weakness over both these factors.HUL's weakness was its inability to transform its strategies at the right time. Theycontinued with the same old strategy which helped them gain profits but were notgenuine in this changed environment. HUL's risk aversion and market myopia led tostagnation of business, and ferocity of competition forced it into a defensive mode.Lack of pricing power in core business and absence of growth drivers have put HULon a deflationary mode.

OpportunitiesIndia is one of the world's largest producer of FMCG goods but its exports areminiscule as compared to production. Though Indian Cos. have been going global,their focus is more towards Asian countries because of the similar preferences. HULis one of the top companies exporting FMCG goods from India. An expansion ofhorizons towards more and more countries would help HUL grow its consumer baseand henceforth the revenues.Opportunity in Food Sector- The advent of modern trade has opened up greateropportunities for HUL to diversify its brand and strength its food division. It couldlook at introducing products from its parents stable like margarines and could alsolook at expanding its Knorr range of products.Well-placed to take advantage of future FMCG Growth - HUL reach out 80% of 207million households in the country through various brands. It has a very well-definedproduct portfolio spread across many product categories.

Page54Penetration levels for some major categories like skin-cream (22%), shampoo(38%), toothpaste (48%) and processed foods, continue to remain low offeringsbut great growth opportunities products.

ThreatsITC has reduced its dependence on the cigarettes business - Contribution of the


38/41

core business in revenues has come down from 87% in FY99 to 70% in FY05.Over a period of five years, ITC has extended its presence into areas like foods,retailing, hotels, greetings, agriculture, paper, etc. These are businesses that cangive it growth impetus in the long run. With ITC gaining momentum in each of thesebusinesses, it is turning into a consumer monolith, and hence, the greatest threat toHUL's Business.

SSKI India has gone on to say, "We maintain Out performer on ITC with a pricetarget of Rs. 2200, while our Under performer call on HUL remains unaltered (pricetarget of Rs. 160)."

Page55Economic Times, December 28, 2004The battle lines are drawn between HUL and ITC for supremacy in the war formarket capitalisation among FMCG companies. Riding high on better valuations, ITChas overtaken HUL's market capitalisation of Rs 31,600 crore by around Rs 1,000crore (at Rs 32,695 crore) as of Tuesday. Earlier too, the company had overtakenHUL's capitalisation by around 5% in Aug-Sep '04.Analysts say ITC continues to command pricing power in its core business, unlike

HUL that is facing tremendous pricing pressure. ITC derives 95% of its profitabilityfrom cigarettes and has been investing heavily in its new businesses like foods andhotels. On the other hand, HUL has been preoccupied with protecting its turf fromcompetition. ITC's increase in market capitalisation reflects the rise in its shareprice, which is up 40% to Rs 1,318 on Tuesday, compared to end June '04, whileHUL's share price has risen by about 13% to Rs 143 in the same period.

RecommendationsMarket Strategy: As we have seen earlier that HUL's weakness was itsinability to transform its strategies at the right time. They continued with the sameold strategy which helped them gain profits but were not genuine in this changedenvironment. HUL's risk aversion and market myopia led to stagnation of business,and ferocity of competition forced it into a defensive mode. Lack of pricing power incore business and absence of growth drivers have put HUL on a deflationary mode.

Page56So according to us, HUL needs to foresee the market in a more efficient way that itis following till yet. Since the market situations has changed, the company (HUL)which was once the market leader and had aggressive market policies is nowdefending itself among the competitors like ITC, Dabur, Marico, Cadbury etc. Thecompetitors cover all the product line of HUL, so the market strategy has to beefficient to regain the market strength. Plus point with HUL here is, it has long faithof consumers in India since it is the oldest among the contenders.In case of risk taking ability, HUL has been a risk averter. Been such a bigorganisation, with such good experts in its management, it can formulate newpolicies and start facing risks rather than averting it. Yes, the competition is furiousbut risk aversion is not the way which will lead to be the market leader. Pricingpolicy can be done accordingly to ensure profit margin.At HUL, the investment in advertisements have increased which is said to beshowing positive changes in the turnover of the company.

Future Prospects: India is a fast developing country with a hugepopulation whose per capita income is growing rapidly and there is huge


39/41

opportunity for FMCG companies.The opportunities are as follows:yIncreasing per capita income is driving FMCG growth in IndiayIndias consuming class is growing rapidlyyChanging consumption pattern: Per capita income of Indian customer isincreasing and FMCG products are relatively elastic in nature hence theexpected sale should increase.By the following three graphs(data collected from a research made by govt. ofINDIA) we can very well assimilate the increase in future demand of FMCG products,the graphs showing the increasing per capita income, per capita disposable incomeand population of India respectively are as follows:(Above graph showing per capita income of INDIANS through out Yr2000-2008)As shown in the above graph the per capita income of an INDIAN increasedthroughout years, and if this trend will continue in future the people can purchasemore FMCG products.(Graph below showing increased per capita disposable income fromYr2002-2007)

Page57(Above graph shows the past population and expected future populationrise, data are collected from the research made by govt. of INDIA)

CATEGORY WISE SALE GROWTH OF FMCG SECTOROF HUL IN INDIACATEGORY %AGE GROWTHSoaps & Detergents 19.3Personal Products 22.4Ice Cream 15.7Processed Foods 13.7Beverages 13.6

Others 19.4(Above graph shows the data of MAR08 Quarter %growth of differentproducts of HUL)

Page58With the help of the graphs given above, we can analyse these facts:The Indian middle class is prospering with around 70 million householdsearning anywhere between Rs80,000 and Rs 18 lakh per annum. Thesecomprise 34 per cent of the slightly over 200 million middle class households.Indian Consumer is no longer Price Obsessed, with the rise in Per-capitaIncome; a consumer is ready to pay higher prices for the better qualityproducts.

Indian consumer goods market is expected to reach $400 billion by 2010Higher disposable incomes, there is money left over for daily products evenafter spending on durables.As per the future plans of HUL:

HUL has drawn up a comprehensive plan to expand its portfolio in the area ofHealth Care and Contraceptives.Chemicals business (encompassing Flavours, Fragrances and other SpecialtyChemicals), as well as several non-FMCG export businesses such as


40/41

Thermometers and Mushrooms.HUL has been pepping up its rural distribution systems and has launched lowunit price variants of its popular brands to draw in new users in the ruralareas.

Project ShaktiWith the urban market saturated, FMCG companies are now targeting the ruralmarkets. In spite of the income imbalance between urban and rural India, ruralholds great potential since 70% of Indias population lives there. Due to the recentgovernment measures like waiver of loans, national rural employment guaranteescheme and increasing minimum support price, disposable income in rural India hasbeen rapidly increasing. However, rural markets present their own sets of problems.These include poor infrastructure, dispersed settlements, lack of education and avirtually nonexistent medium for communication. Furthermore, retailers cannot bepresent in all the centres as many of them are so small that it makes themeconomically unfeasible.Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti.T

HUL REPORTS

Documents

Transcript of HUL REPORTS