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Winning Today and Tomorrow: Analyst Meet May 26, 2010
Winning Today and Tomorrow: Analyst Meet May 26, 2010
Analyst Meet
May 26, 2010
Safe harbour statement
This Release / Communication, except for the historical information, may contain
statements, including the words or phrases such as ‘expects, anticipates, intends, will,
would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects,
should’ and similar expressions or variations of these expressions or negatives of these
terms indicating future performance or results, financial or otherwise, which are forward
looking statements. These forward looking statements are based on certain expectations,
assumptions, anticipated developments and other factors which are not limited to, risk and
uncertainties regarding fluctuations in earnings, market growth, intense competition and the
pricing environment in the market, consumption level, ability to maintain and manage key
customer relationship and supply chain sources and those factors which may affect our
ability to implement business strategies successfully, namely changes in regulatory
environments, political instability, change in international oil prices and input costs and new
or changed priorities of the trade. The Company, therefore, cannot guarantee that the
forward looking statements made herein shall be realized. The Company, based on
changes as stated above, may alter, amend, modify or make necessary corrective changes
in any manner to any such forward looking statement contained herein or make written or
oral forward looking statements as may be required from time to time on the basis of
subsequent developments and events. The Company does not undertake any obligation to
update forward looking statements that may be made from time to time by or on behalf of
the Company to reflect the events or circumstances after the date hereof.
Agenda
Context
Winning Today
Emerging Trends
Winning Tomorrow
Context : Recent Performance
24 USG %*
22 20.0
20
18
16
14 13.0
12.2
12
10 8.0
8
6
4
2
0
2006 2007 2008-9 2009-10
Domestic FMCG
CAGR: 13% over the last 4 years
08-09 Annualised 130 bps increase in operating margin
Agenda
Context
Winning Today
Emerging Trends
Winning Tomorrow
Winning Today : Principles
SUPERIOR PRODUCTS
Winning through brands and innovation : HPC
Fabric Wash Personal Wash Hair Skin/Deo Tooth
Paste
Premium
Popular
Mass
Premium
Popular
Mass
18.0
14.5
15.0 14.1
13.5
12.5
12.0 11.3
9.0
6.0
3.0
0.0
MQ '09 JQ'09 SQ'09 DQ'09 MQ'10
Winning in the marketplace : Micro Marketing
Casefill on Time
95%
90%
85%
80%
75%
2008 2009 MQ 2010
Execution in the field
FCS
• More Frequently
MQ 09 JQ 09 SQ 09 DQ 09 MQ 10
Execution : Greater Speed
10.9
4.6
2.0 1.0
Volume 10.9
Growth 9.6
7.8
Value Growth
6.4
HUL Market
• Results positive
– Substantial step up in volume growth
– Growth ahead of market
Context
Winning Today
Emerging Trends
Winning Tomorrow
Emerging Trends
WHO TRENDS
• More Affluence
CONSUMERS • Changing Attitudes
COMPETITION • Intense
• More Conscious
SOCIETY /
• Only sustainable business
ENVIRONMENT
models will survive
Agenda
Context
Winning Today
Emerging Megatrends
Winning Tomorrow
Business Goals
• Profitable Growth
• Sustainable Growth
Winning Tomorrow : Our Approach
19
> Rs.110/kg
Premium
18 Rs.50/kg
Mid Priced
63 Mass Rs.30/kg
16 Premium
Rs.100/kg
Bars
71 Mass Rs.28/kg
HUL Competitor
Market Shares up by 160 bps Customer Service scores up
MT Share > GT Shares Continuous improvement in
100%
(145 bps gain in 09) Customer Service
43 90%
80%
70%
60%
42
50%
FY 2008 FY 2009
Profitability improved
Improvement in Profitability
41
40
FY 2008 FY 2009 FY 2008 FY 2009
Winning in winning geographies : Rural
New Markets
New outlets
+500,000
(current villages)
stores
Shakti/
Shaktiman
Winning with technology : iQ
Deliver Assortment
Build Assortment
level interventions
Identify Opportunities
S imple front-end for better
execution by salesmen
Winning Tomorrow : Our Approach
• Continuous improvements in
– Customer Service
– Cash
– System Costs
• Delivered through
– Leading edge IT solutions
90%
35
88%
30
86%
25
84%
226 82% 20
181 80%
15
144 78%
10
100 100 76%
5
74%
72% 0
2005 2006 2007 2008 2009 2008 2009 MQ 2010
7.5
6.8
7.0
6.5
6.0
6.0
5.4
5.5
5.0
2008 2009 2010
% Turnover
• Talent
• Culture
• Capabilities
Talent : Our Edge
TAS 58
ABG 57
.Mckinsey & Co 57
CITI 53
Bharti Airtel 39
BCG 37
CTS 35
Goldman Sachs 34
Culture : Embedding Consumer Centricity
Levercare
Objective:
Objective:
Set up a world-class consumer and customer connect system to reach the company, and equally
to help brands reach out to them.
SCOPE
SCOPE
Features:
•• CONSUMER
CONSUMER
•• DISTRIBUTOR
DISTRIBUTOR
• Multiple channels to connect - National toll free number •• RETAILER
RETAILER
B, Raja Ahmed, Mohd. Singh, Deepak Sharma, Ashish Hussain, Shaikh V, Kosal Raman
Dey, Raju Gaur, Pankaj Suman, Manish Sharma, Vishnu Panchal, Nilesh T N, Sethupathy
R, Rajesh A T K, Kiran Sharma, Mukul Sharma, Arvind Banerjee, Arijit Y, Krishna Prasad
Dholey,
6
Lad, Amit P V, Mohanan Sharma, Kunal G, Suresh Babu Supantha Brahmbhatt, Kirti
Roy, Dilip P, Rajagopal Gupta, Mukesh V, Shankar Jee Tripathi, Srujit Kargathia, Mahesh
Days Dasgupta,
Khan, Mohd S S, Puranik Sinha, Nikhil V, Kosal Raman Sugata Pandey, Ripusudan
120
C, Ramdass S, Manjunath K N, Nagaraja R, Jagannathan Banerjee, Sanjoy Tijare, Jeetendra
Prasad,
K G, Mohan
Das, Hitesh
T, Rajendran
V, Kapil Dev
M C, Rajmohan
P, Sivanandam Towns
Kapale, Madhav Dayanand Choudhuri, Anirban
Khanna, Yogesh Rizvi, Syedqamar Choudhury, Susanta
Dutta, Amal V, Sivakumar S, Udai Kumar Sharma, Hemant Singh, Charanjit Srivastava, Manish
4000
K N,
Nandi, Raju G R, Inbaraj V G, Mohanraj Hinge, Sanjeev Raghavendra N, Vishala Krishna
Roy, Partho Budhe, Rahul G R, Srikanth Feet on Street
Shenoy, Satish M, Karthik Kumar V M, Fayas Ahammed
Osman, Sharma,
14,600
Ghai, Rohit Singh, Manoj Ghyar, Rajesh Mohammad Hitender Chawcharia, Harish
Thakur,
Goel, Rajiv
Khan, Imran
Jain, Shital
Raman, Manoj
Pathak, Rajiv
Singh, Dhiraj Perfect Stores
Sharma, Prajeev Hemendra Chouragade, Sanjay
Singh, Tejinder Vevariya, Ashfaq Das, Shuddha Sattwa
M, Ramesh Wadhawan,
Batra, Anil Kant, Kaushal Usman, Shaikh Kumar Suneet A, Padmanaba Pillai
G, Bala
39
P K, Murali Kumar, Mukund Varghese, Aju R, Ramachandran Kargathia, Lalit Subramanyam
Capability : Building sustainable business models
Our Brands
Our People
Our Processes
– Strengthening portfolio
– Stepping up execution
• Winning Tomorrow
• Profitable Growth
• Sustainable Growth
Thank You