HINDUSTAN UNILIVER LIMITED

Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast moving consumer
goods company. The Anglo-Dutch company Unilever owns a 52% majority stake.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength
of over 15,000 employees and contributes to indirect employment of over 52,000 people. The
company was renamed in June 2007 as “Hindustan Unilever Limited”.

Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its
products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in
India. It estimates that two out of three Indians use its many home and personal care products,
food and beverages.[2]

Contents
[hide]

 1 Brands
 2 Leadership
 3 Other awards
 4 Research facilities
 5 Community services
 6 Direct Selling Division
 7 Controversy
o 7.1 Mercury pollution
o 7.2 Skin lightening creams
o 7.3 Triclosan
 8 See also
 9 Notes
 10 External links

[edit] Brands
Wheel Detergent ad in rural Nepal area.

HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as soaps, tea, detergents and shampoos amongst others with over 700 million
Indian consumers using its products. Sixteen of HUL’s brands featured in the ACNielsen Brand
Equity list of 100 Most Trusted Brands Annual Survey (2008).[3] According to Brand Equity,
HUL has the largest number of brands in the Most Trusted Brands List. It has consistently had
the largest number of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.
[4]
Its brands include Kwality Wall's ice cream, Knorr soups & meal makers, Lifebuoy, Lux,
Pears, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit water purifier, Lipton tea, Brooke
Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea, Bru coffee, Pepsodent and Close Up
toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams,
Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams,
Lakmé beauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim
dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe deosprays and Comfort fabric
softeners.

[edit] Leadership
HUL has produced many business leaders for corporate India; one of these, Manvinder Singh
Banga, has become a member of Unilever's Executive (UEx).A survey conducted by
International Managers Evaluating Committee (IMEC) found that HUL has best managers in the
industry and they are getting best remuneration for their jobs.HUL's leadership-building potential
was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only
GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity.
[5][6][7]

[edit] Other awards

HUL is one of the country's largest exporters; it has been recognised as a Golden Super Star
Trading House by the Government of India.[2]

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Businessworld, one of India’s leading business magazines.[8] The rating was based on a
compilation of the magazine's annual survey of India’s most reputed companies over the past 25
years.

HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most
Reputed companies in 2007.[9]

[edit] Research facilities

The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai, and Unilever
Research India in Bangalore in 1997. Staff at these centres developed many innovations in
products and manufacturing processes. In 2006, the company's research facilities were brought
together at a single site in Bangalore.[10]

[edit] Community services

HUL also renders services to the community, focusing on health & hygiene education,
empowerment of women, and water management. It is also involved in education and
rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural
development. HUL has also responded to national calamities, for instance with relief and
rehabilitation after the 2004 tsunami caused devastation in South India.[2]

In 2001, the company embarked on a programme called Shakti, through which it creates micro-
enterprises for rural women. Shakti also includes health and hygiene education through the
Shakti Vani Programme, which now covers 15 states in India with over 45,000 women
entrepreneurs in 135,000 villages. By the end of 2010, Shakti aims to have 100,000 Shakti
entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL is
also running a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavours
to induce adoption of hygienic practices among rural Indians and aims to bring down the
incidence of diarrhoea. So far it has reached 120 million people in over 50,000 villages.[2]

[edit] Direct Selling Division

HUL also runs Hindustan Unilever Network (HULN), a direct selling business arm. Under
HULN, health products are marketed by AYUSH[disambiguation needed] in collaboration with Arya
Vaidya Pharmacy, Coimbatore; beauty products by Aviance; home products by Lever Home, and
male grooming by DIY.[disambiguation needed] There are also premium products for beauty salons and
others.

[edit] Controversy
[edit] Mercury pollution
 In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of
dumping glass contaminated with mercury in municipal dumps, or selling it on to scrap
merchants unable to deal with it appropriately.[11]

[edit] Skin lightening creams

Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in India.
[12]
The company was forced to withdraw television advertisements for the product in 2007.
Advertisements depicted depressed, dark-complexioned women, who had been ignored by
employers and men, suddenly finding new boyfriends and glamorous careers after the cream had
lightened their skin.[13] In 2008 Hindustan Unilever made former Miss World Priyanka Chopra a
brand ambassador for Pond's,[14] and she then appeared in a mini-series of television commercials
for another skin lightening product, White Beauty, alongside Saif Ali Khan and Neha Dhupia;
these advertisements were widely criticised for perpetuating racism.[15]

[edit]
1. INTRODUCT
o Mission
 Unilever's mission is to add Vitality to life. They meet
everyday needs for nutrition, hygiene, and personal care with brands that help people feel
good, look good and get more out of life
o Innovation
 In their scientific innovation to meet consumer needs they
will respect the concerns of their consumers and of society. They will work on the basis of
sound science applying rigorous standards of product safety.
2. Mr. Shreejit M
3.
o Personal Wash
 Lux
 Lifebuoy
 Liril
 Hamam
 Breeze
 Dove
 Pears
 Rexona
4.
o Fabric Wash
 Surf Excel
 Rin
 Wheel
o Hair Care
 Sunslik Naturals
 Clinic
o Oral Care
 Pepsodent
 Closeup
5.  
6.
o House Hold Care
 Vim
o Skin Care
 Fair & Lovely
 Pond's
  Vaseline
 Aviance
7.
o Tea
 Brooke Bond
 Lipton
o Coffee
 Brooke Bond Bru
o Foods
 Kissan
 Annapurna
 Knorr
o Ice Cream
 Kwality Wall's
8. CHALLENGE
o Inflation reducing Profit
o Competition in Core Categories
o Raw materials
o Consumer income reduction
o Emerging player
o Advertising expenditure
o Price positioning
o Competitors focusing single category
9. CHALLENGE
o Consumer behavior
o Global Exposure
o Changing habits
o Confused with competitors product
o Traditional habits
o Go Further-Go Faster
o Challenge conventional wisdom
10. CHALLENGE
o Creating a different mind set
o Make something from waste
o Deal with a difficult visitor
o Help to improve nation’s nutrition
o Turn a problem into solution
o Give life an Extra-Flavor
11. Strategies fo
o Restructured in two divisions
o Improvement in portfolio products
o Change in job management structure
o 400 products selected
o Manufacturing reorganised in regional networks
o IT systems reconfigured
o Food
o Home / Personal care products
o Reduction in managerial job classes
o Develop deep level expertise
12. Pioneer strat
o Building markets and building brands
o Launch brands when innovation pipeline is full
o To deliver sustainable performance by looking long term
o Clarity of strategies where HUL want to win
o Transformational changes
13. Strategies fo
o Management strategies
o Self - development
o Encompassed career planning and progression
 o Learning and development
o Remuneration
o Reward system
o Competence dictionary
o Job skill profile
o Distingushment of job classes
o Commitment to own professional development
o Global Exposure to Managers
o Sound knowledge of local market
14. Strategies fo
o Aspiration and personal growth needs
o Balance between private and professional life
o Emphasis in MDS
15. Strategies fo
o Who will be the manager?
o High level performance
o Have strong potential
16. Some Major
o Cavinkare Ltd
o Procter & Gamble
o Marico group
o Nestle
o Dabur
o Fairever
o Tide
o Hair oil and Food products
o Coffee
o Health care products
17. Indian Comp
Products Colgate L’Oreal Balsara Revlon Benckiser Avon Oriflame Amway Home Care TOMCO P &G Nirma Henkel
Godrej Sara Lee
18. NET PROFIT
1998 1999 2000 Note : Net Profit is after exceptional items
19. Key Financia
Before restructuring, disposal As per audited financial statements of the company; accounting as per Indian GAAP
20. HUL vs Near
2247 1658 542 698 691 1113 177 HUL Share 37.5% 54.3% 47.8% 54.5% 29.5% 22.7% 44.0% Nearest Competitor
13.6% 9.7% 23.7% 7.4% 48.8% 20.8% 39.1% Affluent Aspiring Striving
21. Financial Ov
Market Capitalisation ~11500 Operating Cash Flow 419 Personal Products Soaps and 26% Detergents Processed
Breverages Exports 46% Foods 11% 10% 4% Others Icecreams 2% 1%
22. Analysis
o There is a crucial need to strategically place brands on strong position. The time has come to
differentiate various brands and solve the mess around. It is hard to differentiate blue competitive brands cash
brands in case of HUL. Its not a good idea to choose a cshing brands for competitives moves. The only worry
for HUL should be to avoid the multiple price wars. Product line proliferation is the one of the usual way to
come out of this chakar vyu. But still there are many ways to get the competitors on their feet
FMCG during Recession
FMCG Overview
At a time when the economy and industry
sectors such as automobiles, aviation and
financial services are reeling from the global
slowdown, the consumer goods sector in India
has managed to buck the trend with most
companies posting double-digit growth in net
profits in the first half of fiscal 2009 backed by
healthy sales

According to the recent reports, India's fast

moving consumer goods industry has so far
been resilient to the slowdown in the economy
and a dip in consumer sentiment. If we go by
the numbers for the past few months, the
growth only seems to have got better when
compared to the earlier months.
FMCG

Fast Moving Consumer Goods (FMCG) sector which caters mainly to perishable consumer
products (like soaps, shampoos, detergents, biscuits, confectionary, chips, toffee, battery,
torches, tea, ice cream, cosmetics etc) doesn’t get too affected with recession.

Although demand in cosmetics and other lifestyle products may decrease a little but no real
impact comes in the overall demand of food items (like biscuits and confectionaries); batteries
and torches; tea, coffee and other beverages; toiletries (soap, shampoo, detergents) etc, which
comprises essential commodities of day to day use.

It’s the diverse product portfolio which keeps these FMCG companies going even in a
slowdown.

FINANCE
Asia-Pacific
India: Choose FMCG stocks with care: Analysts
Shares of most fast moving consumer goods (FMCG) companies have performed better than the Sensex
in 2010 so far, but analysts feel it may be time to be choosy about stocks in the sector. Though valuations
have almost caught up with that of the broader market, companies profitability could be under pressure
due to higher input and advertising costs may weigh down performance of some FMCG stocks. The BSE
FMCG index has risen 3.35% in 2010 so far, while the Sensex has gained 1% in the same period. The
biggest drag on the FMCG index has been Hindustan Unilever, which fell 9% in 2010 on fears that price
cuts across products and stubborn raw material prices could impact the companies profit margins.
India: FMCG cos may see strong profits on volume growth
FMCG Companies are expected to log a healthy performance for the March quarter on strong volume
growth coupled with a robust increase in earnings. Godrej Consumer Products (GCPL), Marico, Asian
Paints and ITC are likely to report the strongest growth in earnings. The average of the total estimates of
ETIG and three other brokerages for leading eight fast-moving consumer goods (FMCG) companies point
to a strong 28% increase in net profits during the March quarter, against the corresponding quarter in the
previous year. In view of price cuts affected by companies during the quarter, the growth in revenues is
likely to be volume-driven for the second consecutive quarter. The eight companies are expected to log a
modest growth of 14% in revenues. The net profit margin is likely to increase by 180 bps to 15.8% year-
on-year.
India: FMCG sales to sag in Jan-Mar, Godrej Cons to defy trend
Indian mid-cap consumer goods firms are expected to report a modest rise in sales as higher food
inflation hurts buying, but low input costs will help maintain margins in the Jan-March quarter, Britannia
Industries is expected to post a sales growth of 9%, Marico by 10% and Colgate Palmolive by 16%.
India's food price index rose 17.70%, while the fuel index was up 12.71%, government data showed. The
profit growth at these firms is also likely to be slower than in previous quarters but lower raw material
costs could provide a cushion, Marico is expected to maintain margins as input costs have come down
but the price cut by the firm during the just-concluded quarter will hurt.
DABUR GROUP
Dabur India Ltd. Is a company where a balance of all these fields exists and where they perform in a
perfect harmony. Dabur was set up in 1884 by Dr. S. K. Burman, a physician tucked away in Bengal,
to produce and dispense Ayurvedic medicines. His mission was to provide effective and affordable
cure for ordinary people living in far-flung villages. Reaching out to a wide mass of people who had
no access to proper treatment, Dr. S. K. Burman's commitment and ceaseless efforts resulted in the
company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household
name that at once evokes trust and reliability.
Dabur India Limited is India's leading FMCG Company with interests in health care, personal care
and foods. Dabur has a history of more than 100 years and the company has carved a niche for
itself in the field of Ayurvedic medicines. The products of Dabur are marketed in more than 50
countries worldwide.
Dabur India Limited today is the third largest FMCG Company in India after a takeover of Balsara
India Limited and with interests in Health care, Personal care and Food products. Powerful brands
like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real are the major contributors to
MANAGEMENT & OWNERSHIP

STRUCTURE
Board of Directors
Dabur has an illustrious Board of Directors who are committed to take the company onto newer
levels of human endeavour in the service of mankind. The Board comprises of:

Debut’s turnover of Rs.2396 crore

COMPANY’S PROFILE
Dabur India Limited is India’s fourth largest FMCG company. The first Dabur plant was set up in
1896 and research laboratories established in 1919. Dabur became a public limited company in
1986. In 1998, the Burman family, the original promoters, handed over the day-to-day running of the
company to professionals. With effect from 1 April 2005, Balsara Home Products became a
subsidiary of Dabur. Apart from Balsara, Dabur has five other subsidiaries — Dabur Foods, Dabur
Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma.

The shareholding pattern of the company last year is as follows -:

Promoters
70.81%
Non promoter corp. hold
21.24%
Public & others
7.94%

Dabur brands are broadly divided in to six categories:-

1) Health Care
2) Personal Care
3) Home Care
4) Ayurvedic Specialities
5) Foods
6) Guar Gum

HEALTH CARE PRODUCTS

Dabur Chyawanprash and Chyawanshakti

Market Share of Dabur

Dabur India Ltd. is India’s third largest fast moving consumer goods company by sales.
Some of their achievements are
 Strategic positioning of Honey as food product, leading to market leadership (over 40%)
in branded honey market
 Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market
share.
 Leader in herbal digestives with 90% market share

 Hajmola tablets in command with 75% market share of digestive tablets category
 Dabur Lal Tail tops baby massage oil market with 35% of total share

 Dabur Lal Tail tops baby massage oil market with 35% of total share

Exports
Dabur India Limited is a leader in manufacturing and marketing herbal, nature-based products,
marked with quality and trust gained through more than 100 years of experience. Today Dabur’s
products are available for people in more than 50 countries across the world, helping them move
towards a healthy, natural and holistic lifestyle. Dabur’s products are available in the markets of the
Middle East, South-East Asia, Africa, the European Union and America.

COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors selling
the same or similar products, the pricing freedom is considerably reduced. Its price must fall in line
with the competitors. Similarly Dabur India Limited also has many competitors. But Dabur’s top
selected competitors are:-
1. Hindustan Unilever Limited
2. Proctor and Gamble
3. Pepsi co.
4. Colgate Palmolive
5. Godrej Industries
6. Marico Ltd. etc.

Advertising
Advertising is a form ofcommunicat ion that typically attempts to persuade potentialcus tomers
topurchas e or tocons ume more of a particularbrand ofproduct ors ervice. Manyadvertis ements are
designed to generate increased consumption of those products and services through the creation
and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements
sometimes embed their persuasive message with factual information. Every major medium is used
to deliver these messages, includingtelevis ion,radio,cinema,magazines,
newspapers, video games, the Internetand billboards. Advertising is often placed by an
advertising agency on behalf of a company or other organization.
Dabur has created the huge brand image and a vast product following by associating mega-names
like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150
crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the company has been
successful in this mission as the people now know the brand and ask for its products by name.