SIX MONTH INDUSTRIAL TRAINING

COMPLETED AT

Lotus Beauty Care Products Private Limited

Haridwar, Uttarakhand

BY

MUKESH KUMAR

(UNIV ROLL NO-1501273)

(COLL ROLL NO – 3012/15)

DEPARTMENT OF CHEMICAL ENGINEERING

BEANT COLLEGE OF ENGINEERING AND TECHNOLOGY, GURDASPUR

 ACKNOWLEGEMENT

I am grateful to the staff and management for letting me pursue SIX-

MONTH INDUSTRIAL TRAINING at the LOTUS BEAUTY CARE PRODUCTS
PRIVATE LIMITED, HARIDWAR.

I grateful for the explanation given to me by the officers and the staff of
the LBCP and helpful me become aware of the technology in the real
world.The training I had received here has helped me immensely in
understanding the particles concepts of manufacturing and micro lab.

I extended my heartfelt thanks to staff of LBCP for allowing me to

undertake the training under their guidance. I thank them for helping
and guiding me at every stage.

This report would have been incomplete without the help of

manufacturing team of LBCP who gave a complete insight of
manufacturing department.
 INTRODUCTION
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company, touching the lives of Indians with over 20 distinct categories in
Home & Personal Care Products. The company’s Turnover is Rs. 300 crores (for
the 12 month period – January 1, 2018 to January 1, 2019).

Lotus beauty care private product Limited (L.B.C.P.) is a subsidiary of Unilever

(HUL), one of the biggest suppliers of Hindustan Unilever Limited having
manufacturing capacity of 50000 tons per annum with annual sales of 300 crores
in 2018. Hindustan Unilever was recently rated among the top four companies
globally in the list of “Global Top Companies for Leaders” by a study sponsored
by Hewitt Associates, in partnership with Fortune magazine and the RBL Group.
The company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires L.B.C.P.’s more than 1500 employees, is to “add vitality
to life". The company meets everyday needs for nutrition, hygiene, and personal
care, with brands that help people feel good, look good and get more out of life.
PRODUCT MANUFACTURE
 Dove Daily Shine Shampoo.
 Dove Oxygen Moisture Shampoo
 Dove Split End Rescue Shampoo
 Dove Regenerative Repair Shampoo
 Dove Hair Fall Rescue Shampoo
 Dove Nourishing Oil Care Conditioner
 Dove Split End Rescue Conditioner
 Dove Hair Fall Rescue Conditioner
 Pond's Moisturising Cold Cream
 Pond's Gold Radiance Serum
 Pond's Triple Vitamin Moisturising Lotion
 Pond's Age Miracle Micro-Dermabrasion Kit
 Pond's Dream flower Talc
 Pond's Sandal Radiance Natural Sunscreen Talc
 Denim Shaving Cream
 Fair & Lovely
 Tresemme Shampoo
 Lifebouy Total 10 H/W
 Lifebouy Mild Care H/W
 Lifebouy Lemon Fresh H/W
 (Mr. K.N.Laxmanan)

CMD

( Mr.Y.C.Khorni ) MD ( Mr. K.L.Natarajan)

GM (Mr. Deivasigamani)

FM (Mr. S.Ravindar)

(Mr. Harish Chhatwani) (Mr. Harpal Thakur ) (Mr. Sajith Menon)

HR manager Quality Manager Safety & Maintenance manager

 1. Lotus beauty care Private Ltd. Hardwar Plant Production Started .

UNIT- 1 DEC -2004

UNIT-2 MARCH- 2010

Security department:-
1. Enter Proper way according attendance Sno. Register.
2. Entry with two wheeler with helmet & without helmet not entry in company.
3. No smoking, No tobacco, use in plant are.
4. Production area without disposal cap not enters.
5. Enter in company proper dress code.
6. Tea timing :-
10.00 Am, 04.00 Pm, 02.00 Am.

7. Food requirement register:

1. Hr office (Unit-1) ------------ Unit-1 . 2. Security office (Unit-1) ---------- Unit-2

Quality & Lab department:-

1. RM material Unloading under testing area.
2. RM store inform to quality dept by mail.
3. Sampling plan for raw material & packing material. N+1

RM Lab equipments details :-

S.no Item Name Working/Use

1. Qc laboratory centrifuge Air bubble Remove Purpose

2. Melting point apparatus Wax item check purpose

3. Viscometer lu – II Viscosity

4. Ph meter pH calculate

5. Conductivity & TDS meter TDS check purpose

 6 CV meter Cream Test Purpose

7. Weight balance Weight check purpose

8. Polari meter

9. App refracto meter Perfume check purpose

10. Colour matching cabinet Raw material Colour matching purpose

11. Foam height apparatus Shampoo purpose

12. Tin to meter Colour matching M/C

13. Desiccators’ Sample Cold purpose

14. Fum Chamber Acid Material purpose

15. Hot air oven (105 0c) Moisture

16. Hot air oven (60 0c) Moisture

17. Muffle furnace (7000c to 10000c) Ash check purpose

18. Water bath

19. Soxhlet Assembly For Heating buck

20. Karl Fischer testator Water % check purpose

21. Uv Spectro photo meter Absorption range

PM Lab equipment detail :-

S.no Item Name Working/Use

1. Weighting Balance Tube ,Jar Weight check Purpose.

2. Rub /Scuff tester Curtan printing test Purpose.

3. Bursting Strength Material box strength check Purpose

4. Coefficiet of friction tester

5. Bond seal strength test Shampoo Pouch inner Packing Check

Purpose

6. Opacity & Brightness test Colour Brightness Check Purpose For

Shampoo Pouch Roll.

7. Height Gauge Jar, Bottle Height Check Purpose

8. Vernier Caliper Inner Outer Dia Check Purpose

9. Micro meter Thickness Check Purpose

10. Box compression tester Pack Box Strength Check Purpose

Safety department:-
1.) PPE :- Personal Protective Equipment.
2.) SBO:- Safety Behavior Observation.
3.) HI:-Hazation identification.
4.) Fire Extinguisher:- Unit:-I ----- 71 Nos. , Unit:-II ----- 79 Nos.

1.) Types Safety :-

1.) Personal Safety: - Use Proper hand Gloves, Nose makes, Helmet, Safety belt etc.

2.) Machine Safety:-

 1.) Types Fire :-(* in company)
1. Solid*
2. Liquid*
3. Electrical *
4. Gas
5. Metal
3.) Fire Extinguisher Type.
1. ABC Type: - 5 Kg, 2Kg,5Kg.
2. BC Type:-9 Kg.
3. Machine type AB Co2 (Electrical fire) 2.5 Kg to 4.5 Kg.
4.) Fire Extinguishers height: - 4 Feet.

Production Department:-

TUBE LINE (UNIT –I): - Tube line change holder, Dia as for production requirement.

LINEAR FILLING LINE (LFL) {TOTAL LINE :- 02} SMALL BOTTLES/JAR FILLING

3. SHAMPOO LINE {TOTAL LINE:- 20} FOAM FILLING SEALING M/C

Manufaturing Departmment:-
Weekly Wash & Sanitizations is System Manufacturing M/C

S.No Manufacturing M/C Unit-I Size Use

1. Mixer PDL & Side Parts With Pump Side Pot 1a & 2b 5.0 Ton shampoo, cream
lotion, conditioner

2. Mixer PDL & Side Parts With Pump Side Pot 1a & 2b 5.0 Ton shampoo, cream
lotion, conditioner

3. Mixer UMX & Side Parts With Pump Side Pot 1a & 2b 5.0 Ton shampoo, cream
lotion, conditioner
4. Mixer PDL & Side Parts With Pump Side Pot 1a 5.0 Ton shampoo, cream
lotion, conditioner

5. Mixer UMX & Side Parts With Pump Side Pot 1a & 2b.3c 5.0 Ton shampoo, cream
lotion, conditioner

6. Mixer UMX & Side Parts With Pump Side Pot 1a & 2b,3c 5.0 Ton shampoo, cream
lotion, conditioner

7. New Mixer (for Deo Line ) 5.0 Ton shampoo, cream

lotion, conditioner

STORAGE TAKE DETAIL.

S.No Storage Tanks Unit-I Size

1. Storage Tank 10,000 Ltr

2. Storage Tank 10,000 Ltr

3. Storage Tank 10,000 Ltr

4. Storage Tank 10,000 Ltr

5. Storage Tank 10,000Ltr

6. Storage Tank 10,000 Ltr

7. Storage Tank 10,000 Ltr

8. Storage Tank 10,000 Ltr

9. Storage Tank 10,000 Ltr

10. Storage Tank 10,000 Ltr

Maintenance Department:-

UTILITY:- Water consumption in UNIT-II – 25000 LTR. Per Months

S.no Machine Size Uses Unit Maintenance

deception Time

1. Hot Blower M/C 600 Steam Unit-I,II Weekly

2 No’s Kg/400Kg Purpose

2. DM Water M/C Batch Mixing Unit-I,II Daily

2 No’s

3. R.O Plant Unit-I,

4. D.G 500 KVA Electrical Unit-I,II 2000 Hour

RM/PM Store Department:-

1. Material Proper Stacking in Rack .

2. Timely Report send For HOD.
3. Proper Hygine & House Keeping in RM Store.
4. Proper Plan Planning for weekly Base.

Account Department:-

1. Free lodging for company working .

2. Timely Monthly stock statement send for account dept.

Manufacturing Department:-

AUTOMATION

Automation is basically the delegation of human function to technical equipment for :

 Increasing productivity
 Increasing quality
  Reducing cost
 Increasing safety in working conditions

Mixture specifications:

 Mixture type : Batch reactor

 Mixture capacity : 5 ton
 Agitator type : propeller type
 Scrapper type : anchor blade

WATER PROCESSING

Raw water from borewell

Carbon Tank

Cation Heat Exchanger

Degasser

Anion Heat Exchanger

 Multi Bed Reactor

NAOH HCL

DM Storage Tank Heating Tank Service Tank Chlorination Tank

For Manufacturing Process CIP Tank

 DM water used in industry having temperature above 80 degree Celsius..

MANUFACTURING PROCESS:

Major raw material used in plant:

 Carbopol
 Tetra sodium EDTA
 Butylated hydroxytoluene (BHT)
 Lauric acid
 Myristic acid

CARBOPOL ETD 2020 POLYMER:

INCI Name: Acrylates/C10-30 Alkyl Acrylate Crosspolymer

Carbopol® ETD 2020 polymer is an easy-to-disperse, white powder, cross-linked polyacrylic
acid copolymer polymerized in a toxicologically-preferred cosolvent system specifically
designed for thickening surfactant systems. It delivers excellent thickening efficiency and
suspending capability, long viscous flow, and sparkling clarity in gel systems. Suggested
applications include clear gels, hydro-alcoholic gels, surfactant systems (specialty shampoos,
cleaning products, etc.), and high electrolyte systems such as aloe gels.

Features/Benefits

 Easier processing for high polymer solids dispersions

 Easy-to-disperse technology reduces lumping for ease of dispersion in water
 High compatibility with anionic surfactants imparting thickening and yield value
 High resistance to dissolved electrolytes enabling formulation flexibility
 Low dispersion viscosity allows for easier pumping and handling before neutralization
 Rich creamy feel in formulated product
Applications:

 Body Lotions/Creams/Gels
 Hair Coloring
 Shampoo
 Styling Products
 Wipes

Primary Functions:

 Rheology Modifier
 Suspending Agent

TETRA SODIUM EDTA :

EDTA (ethylenediaminetetraacetic acid) is a chelating agent, used to sequester and decrease the
reactivity of metal ions that may be present in a product.

Function(s): Chelating Agent

BUTYLATED HYDROXYTOLUENE (BHT):

Overview Information

BHT (butylated hydroxytoluene) is a lab-made chemical that is added to foods as a

preservative. People also use it as medicine.
BHT is used to treat genital herpes and acquired immunodeficiency syndrome
(AIDS).

Some people apply BHT directly to the skin for cold sores.

How does it work?

BHT is an antioxidant. It may damage the protective outer layer of viral cells.
This may keep the viruses from multiplying and/or doing more damage.

Uses & Effectiveness

Insufficient Evidence for

 Cold sores caused by a type of virus called herpes. Developing evidence suggests that
putting BHT on cold sores may help them heal faster.
 Genital herpes.
 Acquired immunodeficiency syndrome (AIDS).
 Other conditions.

More evidence is needed to rate the effectiveness of BHT for these uses.

Side Effects & Safety

BHT is safe in the amounts found in processed foods. But there isn’t enough
information to know if it is safe to take BHT in medicinal doses, which are typically
higher. There also isn’t enough information to know whether BHT can be safely
used on the skin.
Special Precautions & Warnings:

Pregnancy and breast-feeding: BHT is safe when eaten as food, but there's not
enough information to know if it's safe in the larger amounts that are used as
medicine. If you are pregnant or breast-feeding, stick with food amounts until
more is known.
 Dosing:

The appropriate dose of BHT depends on several factors such as the user's age,
health, and several other conditions. At this time there is not enough scientific
information to determine an appropriate range of doses for BHT. Keep in mind that
natural products are not always necessarily safe and dosages can be important. Be
sure to follow relevant directions on product labels and consult your pharmacist or
physician or other healthcare professional before using.

FREE FATTY ACIDS:

Stearic Acid, Lauric Acid, Myristic Acid, Oleic Acid and Palmitic Acid are fatty acids that
occur naturally in some foods. In cosmetics and personal-care products, fatty acids and
mixtures of fatty acids such as Stearic Acid, Oleic Acid, Lauric Acid, Palmitic Acid and
Myristic Acid are used in a variety of cosmetic creams, cakes, soaps and pastes.

Why is it used in cosmetics and personal care products?

The following functions have been reported for these ingredients.

 Opacifying agent - Myristic Acid, Palmitic Acid

 Surfactant cleansing agent - Stearic Acid, Lauric Acid, Myristic Acid, Oleic
Acid, Palmitic Acid
 Surfactant emulsifying agent - Stearic Acid, Palmitic Acid

MICRO LAB TESTINGS:

COD:
 Take a blank beaker filled with 20ml of normal water.
 Take 19ml + 1ml of inlet water in another beaker.
 Take 19ml + 1ml of outlet water in another beaker.
 Add 10ml of potassium dichromate.
 Add some glass beads.
 Add 0.1gm of silver sulphate.
 Add 0.4gm mercuric sulphate.
 Add slowly 30ml conc H2SO4
 Add 20ml of water.
 Heat all beakers at 45 degree in extraction unit for 2 hours
 Then cool all beakers.
 Add two drops of ferric indicator in all beakers.
 Then titrate the solution with 0.25M ferrous ammonium sulphate solution.
 Color should be wine.
 Formula used:

((blank) – (sample reading)*molarity of FAS * 8000)/sample weight

TDS:

TDS = CONDUCTIVITY *0.67

PH METER:

 Ph meter construct of an electrode which have filament made up of silver.

 The electrode is dipped in KCL solution.

SPECIFIC GRAVITY:

 Specific gravity is measured with a GARDNER CUP.

 Weight it empty.
 Its weight around 142.8014gm .
 Fill cup with water and weight it again.
 Water weight is 49.6748gm
 Then fill material whose specific gravity we need to find and weight.
 Total weight = ((gardener cup+bulk) – (empty cup weight))/water weight

FREE FATTY ACID TEST:

 First take 1gm of sample in conical flask.

 Add 50ml ethanol which is 99.9% pure.
 Heat generally at 60 degree.
 Then add few drops of phenolphthalein indicator.
 Then titrate it with 0.1N NAOH solution.
 End point should be pink color
 Formula used : 24.8* burrette reading * normality of NAOH/ sample weight

AD TEST:

 Sample weight = 1.0710gm

 Take 10ml sample.
  Add few drops of methyl blue
 Add 15ml of chloroform
 Then titrate it with 0.004N hymen solution

Formula used : burrete reading *0.004*mol weight/sample weight.

INTRODUCTION
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company, touching the lives of two out of three Indians with over 20
distinct categories in Home & Personal Care Products and Foods & Beverages.
The company’s Turnover is Rs. 20, 239 crores (for the 15 month period – January
1, 2008 to March 31, 2009).

Hindustan unilever limited is a subsidiary of Unilever, one of the world’s leading

suppliers of fast moving consumer goods with strong local roots in more than 100
countries across the globe with annual sales of €40.5 billion in 2008. Unilever has
about 52% shareholding in HUL. Hindustan Unilever was recently rated among the
top four companies globally in the list of “Global Top Companies for Leaders” by
a study sponsored by Hewitt Associates, in partnership with Fortune magazine and
the RBL Group. The company was ranked number one in the Asia-Pacific region
and in India.

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

Heritage

HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was
introduced in India. Local manufacturing began in the 1930s with the
establishment of subsidiary companies. They merged in 1956 to form Hindustan
Lever Limited (The company was renamed Hindustan Unilever Limited on June
25, 2007). The company created history when it offered equity to Indian
shareholders, becoming the first foreign subsidiary company to do so. Today, the
company has more than three lakh resident shareholders.

HUL’s 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 and culinary products. They are manufactured in over 35 factories,
several of them in backward areas of the country. The operations involve over
2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail
outlets including direct reach to over 1 million.

HUL has traditionally been a company, which incorporates latest technology in all
its operations. The Hindustan Lever Research Centre (now Hindustan Unilever
Research Centre) was set up in 1958

Doing well by doing good

HUL believes that an organisation’s worth is also in the service it renders to the
community. HUL focuses on hygiene, nutrition, enhancement of livelihoods,
reduction of greenhouse gases and water footprint.It is also involved in education
and rehabilitation of special or underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded in case of national
calamities / adversities and contributes through various welfare measures, most
recent being the relief and rehabilitation of the people affected by the Tsunami
disaster, in India.

HUL’s Project Shakti is a rural initiative that targets small villages populated by
less than 5000 individuals. Through Shakti, HUL is creating micro-enterprise
opportunities for rural women, thereby improving their livelihood and the standard
of living in rural communities. Shakti also provides health and hygiene education
through the Shakti Vani programme.The program now covers 15 states in India
and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000
villages and directly reaching to over three million rural consumers.

HUL also runs 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. It has already touched
120 million people in approximately 50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being

single-minded in identifying itself with Indian aspirations and needs in every walk
of life.

Type Public company BSE: 500696

Industry Fast Moving Consumer Goods FMCG)

Founded 1933

Headquarters Mumbai, India

Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and

Managing Director)

Products Home & Personal Care, Food & Beverages

Revenue 17,873.44 crore (US$3.97 billion) (2009-2010) [1]

Net income 2,202.03 crore (US$488.85 million)

Employees Over 65,000 direct & indirect employees

Parent Unilever Plc (52%)

 Website www.hul.co.in

History of HUL
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of

Sunlight soap bars, embossed with the words "Made in

England by Lever Brothers". With it, began an era of marketing branded Fast
Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and
Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the
market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company, followed by Lever Brothers India Limited (1933) and
United 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 first
among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the
company. The rest of the shareholding is distributed among about 360,675
individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company 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 international acquisition. The erstwhile Lipton's links with India were forged in
1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited
was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the
Unilever fold through an international acquisition of Chesebrough Pond's USA in
1986.

Since the very early years, HUL has vigorously responded to the stimulus of
economic growth. The growth process has been accompanied by judicious
diversification, always in line with Indian opinions and aspirations. The

liberalisation of the Indian economy, started in 1991, clearly marked an inflexion

in HUL's and the Group's growth curve. Removal of the regulatory framework
allowed the company to explore every single product and opportunity segment,
without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one

of the most visible and talked about events of India's corporate history, the
erstwhile 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 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-
leading cosmetics 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 joint venture to the company.

HUL formed a 50-50 joint venture with the US-based Kimberly Clark Corporation
in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex
Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited
(UNL), and its factory represents the largest manufacturing investment in the
Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps,
Detergents and Personal Products both for the domestic market and exports to
India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on
the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired
Kothari General Foods, with significant interests in Instant Coffee. In 1993, it
acquired the Kissan business from the UB Group and the Dollops Ice-cream
business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two
plantation companies of Unilever, were merged with Brooke Bond. Then in 1994,
Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India
Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional
Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen
Desserts. By the end of the year, the company entered into a strategic alliance with
the Kwality Ice-cream Group families and in 1995 the Milk-food 100% Ice-cream
marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL
in 1998. The two companies had significant overlaps in Personal Products,
Speciality Chemicals and Exports businesses, besides a common distribution
system since 1993 for Personal Products. The two also had a common management
pool and a technology base. The amalgamation was done to ensure for the Group,
benefits from scale economies both in domestic and export markets and enable it
to fund investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent
equity in Modern Foods to HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners. HUL's entry
into 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 Crabmeat business of
the Amalgam Group of Companies, a leader in value added Marine Products
exports.

HUL launched a slew of new business initiatives in the early part of 2000’s.
Project Shakti was started in 2001. It is a rural initiative that targets small villages
populated by less than 5000 individuals. It is a unique win-win initiative that
catalyses rural affluence even as it benefits business. Currently, there are over
45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and
reaching to over 3 million homes.
In 2002 In 2002, HUL made its foray into Ayurvedic health & beauty centre
category with the Ayush product range and Ayush Therapy Centr es. Hindustan
Unilever Network, Direct to home business was launched in 2003 and this was
followed by the launch of ‘Pure-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
same year 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
 REVIEW OF LITERATURE
Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –
Unilever. Both Unilever and HUL have established themselves well in the Fast
Moving Consumer 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 were also rewarded when four of
HUL brands found place in the ‘Top 10 brands’ list for the 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.
For 70 years, Unilever was the undisputed market leader but now faces tough
competition from Proctor & Gamble and Colgate-Palmolive.

HUL is also known for its strong distribution network in India. In order to further
strengthen its distribution in the rural areas and to empower the local women, HUL
launched a Project Shakti in 2000 in a district in Andhra Pradesh. The idea behind
this project was to create women entrepreneurs and provide them with micro-credit
and training in enterprise management, which would enable them to create self-
help groups and become direct-to-home distributors of HUL products. Today
Project Shakti is present across 80,000 villages in 15 states and is helping many
underprivileged 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 competitor’s analysis in which the market share of top

FMCG companies are analysed & the market share of HUL’S different
categories product are analysed with comparison to its competitors.
 Then performance analysis is made by taking 10 year financial data from
1998-2007. The profit & sales growth is analysed We have done SWOT
analysis to know the threat & opportunities of HUL in present market.

 The future opportunities for FMCG products are taken into consideration by
analyzing the increased per capita income & increased disposable income to
forecast the future demand of HUL.

Vision of Hindustan unilever limited

Unilever products touch the lives of over 2 billion people every day – whether
that's through feeling great because they've got shiny hair and a brilliant smile,
keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying
meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company –
where we want to go and how we are going to get there:

• We work to create a better future every day

• We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.

• We will inspire people to take small everyday actions that can add up to a big
difference for the world.

• We will develop new ways of doing business that will allow us to double the size
of our company while reducing our environmental impact. We've always believed
in the power of our brands to improve the quality of people’s lives 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 a fundamental part of who
we are.

Purpose & principles of hul

Our corporate purpose states that to succeed requires "the highest standards of
corporate behaviour towards everyone we work with, the communities we touch,
and the environment on which we have an impact."
Always working with integrity
Conducting our operations with integrity and with respect for the many people,
organisations and environments our business touches has always been at the heart
of our corporate responsibility.

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

Continuous commitment
We're also committed to continuously improving the way we manage our
environmental impacts and are working towards our longer-term goal of
developing a sustainable business.
Setting out our aspirations
Our corporate purpose sets out our aspirations in running our business. It's
underpinned by our code of business Principles which describes the operational
standards that everyone at Unilever follows, wherever they are in the world. The
code also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to
the same standards we do. Our Business partner code, aligned to our own Code of
business principles, comprises ten principles covering business integrity and
responsibilities relating to employees, consumers and the environment.

MARKETING STRATEGYOF HINDUSTAN UNILEVER

LIMITED

1)HUL’S NEW GROWTH STRATEGY:

After having fought a bitter price battle for market share with its rivals, Hindustan
Unilever Ltd (HUL), Indian subsidiary of the Anglo- Dutch consumer goods
company Unilever Plc, is now working on a new growth strategy for its laundry
business.

“Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now
passe,” insists Sudhanshu Vats, category head, home care. “Our strategy for
growth, now is focused on product innovation, new consumer and retail trends and
aggressive marketing and promotions,” he said.

This comes even as Unilever is scouting for a potential buyer for its laundry
business in the US.

HUL says it is quite upbeat about the segment and says the laundry segment is one
of its “key growth areas. “We have done key innovations across the product
portfolio and it is working for us,” says Vats. “We successfully migrated from Rin
Supreme to Surf Excel and Wheel Smart Srimati—which was rolled out in 2006—
is also on the right track.”

HUL’s market share in the laundry segment grew to around 37.8% in the quarter
ended June from 35.5% in the same period last year, according the market research
firm ACNielsen. However, this time, the increase was not at the expense of price
war with its multinational rival Procter & Gamble Co. P&G also gained 0.5
percentage points, up to a 7.6% share. Nirma Ltd, the Ahmedabad- based
manufacturer, however, saw its market share dip by 1.7% percentage points to
13.5%.

Wheel, a value brand that, according to Vats contributes around 50% of HUL’s
laundry segment revenues, increased its market share by 2 percentage points in the
same period, with a total share of about 18%.

According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in
2006 and rose 8.4% over 2005. HUL doesn’t report its laundry revenues separately
but puts them under the soaps and detergent category.

In 2006, HUL’s soaps and detergents segment contributed around Rs5,596 crore to
the company’s total sales of Rs12,103 crore. “Laundry has been an attractive
segment in the past and is likely to keep growing in the near future. The recent
price war between companies led to erosion in their profitability but now, the
industry is stabilizing,” says Unmesh Sharma, an analyst at Macquarie Securities
here.
According to Vats, the laundry business is witnessing a surge in demand from
cities and HUL is focusing on Tier I and II cities to tap that demand.

2)SUSTAINABILITY STRATEGY
We have a long-standing set of values and principles that guides our behaviour.
These values underpin our approach to sustainability.
We have always been a business driven by a strong set of values. Today those
values are as important as ever. We now know that the well-being of society and
the environment is critical to our ability to grow.

Our Sustainability strategy

Unilever’s vision is to double the size of its business while reducing the overall
impact on environment. This new vision recognises that the world is changing,
populations are growing and the rise in incomes is fuelling a growth in the demand
for consumer products. Products like ours rely on an increasingly constrained set of
natural resources, whether it is fuel, water, or other raw materials.
In Hindustan Unilever Limited (HUL), the principle of Corporate Responsibility
(CR) is an integral part of our commitment to all our stakeholders – consumers,
customers, employees, the environment and the society that we operate in.

Today, India is battling multiple issues like water scarcity, poverty, and problems
arising out of low awareness of health, hygiene, and nutrition. If these issues are
not addressed soon, they will create insurmountable barriers to business growth.
We believe that helping society prosper and ensuring a sustainable future for the
planet goes hand in hand with our goal of ensuring growth that is competitive,
profitable, and sustainable for our organisation.

Our contributions have to be substantial and sustainable, which is why we are not
just banking on our philanthropic programmes, but are transforming our core
business practices as well. Even the seemingly small innovations in our brands and
business processes can lead to a big difference in society as we touch the lives of
two out of every three Indians.*

For example, if one household uses Surf Excel detergent, it can conserve two
buckets of water per wash. A million Indian households using Surf Excel can save
enough water for meeting the basic hygiene needs of many Indians. Thus, small
individual actions multiplied with our large consumer base will make a big
difference in combating the issues society faces.

We will further demonstrate that successful business strategies are driven by

responsible business practices. The key to this approach is developing a CR
framework which integrates the social, economic, and environmental agenda with
our business priorities – growing markets, maintaining the competitive edge,
enjoying goodwill in the communities we operate in, and building trust and an
exceptional reputation. Hence, in the future, the three cornerstones for CR
integration with business at HUL will be:
Growing markets responsibly:
We will address issues related to hygiene and nutrition through product
innovations and awareness. Gathering information about the concerns expressed by
consumers, communities, and stakeholders can help us identify opportunities for
innovation at the category, brand, and marketing plan level. We have a very strong
and trusted position in India and we can leverage this to our competitive
advantage.
Ensuring sustainable practices in our operations:

To secure a thriving future, we need to establish sustainable sources for raw

materials. Being a company that is heavily dependent on water, agriculture, fuels
and petrochemicals, we must plan now for a future in which water could be scarce,
agriculture could be under pressure, and fuels will be expensive. Our consumers
add up to two-thirds of the Indian population, hence addressing sustainability
issues is a high priority.

Building a good reputation through responsible leadership:

CR is one of the key components of reputation and trust. A good reputation can be
a major competitive advantage and can build employer brand and consumer
loyalty.

3)Engaging with our stakeholders

Listening to others and learning from our stakeholders informs our decision-
making, strengthens our relationships and helps us succeed as a business.

Stakeholder engagement for identifying issues that are material to us:

We appointed SustainAbility International to conduct stakeholder engagement on

our behalf. They analysed and assimilated the expectations of stakeholders
regarding issues that matter to them. These expectations were similar to the areas
identified by us, where HUL's contribution could create a significant impact.

Scoping the areas for intervention

While the issues are many, it is necessary to address them in a systematic manner
to make a real difference. Instead of spreading thin across all issues, we have
chosen to work on five areas to ensure a deep impact.

These areas have been arrived at using the output from our stakeholder
engagement process and areas which we are poised to address through our
business.

Key messages from stakeholders

‘Target. Allocate resources. Achieve those targets. This is more critical than just
being visible & talking about it.’

- ‘We feel that some Indian companies can be leaders in their respective sectors.
HUL has the potential to be such a leader.’
- ‘Invest for your markets – don't do social work, it isn't your ballgame.’

- ‘Please make money out of it. When you make money out of it, things are going
to change.’
 4)Governance
We aim to have strong governance structures in place to manage our social and
environmental responsibilities carefully and thoughtfully.
Corporate Responsibility at HUL is led by the CEO and the Management
Committee (MC) of the company. The MC governs the sustainability strategy with
a view of key strategic approaches and seeks reports on impacts and efforts against
clear targets.

Each of the nine cells (in the daigram shown in Sustainability strategy section) is
owned by an MC member. For the execution of the strategy there is a team of 12
Sustainability Governing Council (SGC) members based on their respective
functions.

Sustainability Governing Council

The Sustainability Governing Council is responsible for:

 Recommending sustainability priorities for approval by the MC and monitoring its
progress
 Recommending HUL's positions on critical issues for approval by MC
 Receiving stakeholder feedback

The role of the SGC is formalised, with a clear mandate and terms of reference
outlining its mission, purpose, membership, meeting schedule, and reporting
systems.
External commentary
We shared our sustainability strategy with leading external experts from diverse
backgrounds. Below you can read their comments on our sustainability strategy.

View of leading external experts on HUL’s sustainability strategy

‘The long-term strategy and roadmap provides a comprehensive approach towards

meeting future sustainability challenges, especially with respect to resources such
as water and energy.’

- Shirish Sinha, Head Climate Change & Energy Programme, WWF

‘We are happy with the focus on linking the business processes with corporate
responsibility. Social impact has to be central to business processes, which is
brought about by HUL's strategy. Corporate responsibility via business strategies is
the way forward.’

- Ibrahim H. Rehman, Director, Social Transformation Division, TERI

‘The tying up of your strategic threads is excellent. Ensure that you carry it
through action!’
5)COMPETATIVE STRATEGY

As Competition Heats Up, India’s Top Consumer-Products Company Woos

Affluent Shoppers With Global Brands Like Dove, While Cooking Up Its Foods
Biz

The middle-aged Briton strolling the aisles and checking out the products doesn’t
attract much notice from other shoppers in Mumbai’s Hypercity, the India
hypermarket chain. That’s how Douglas Baillie likes it. Baillie, the managing
director of Hindustan Unilever, India’s premier consumer-products company,
wants to see how his products are stocked, what consumers are buying, and how
shoppers are reacting to competitive brands. It’s primary market research at its
most elemental, and it’s best done incognito.

Hindustan Unilever has traditionally relied on small traders and mom-and-pop

corner stores to retail its products. But India’s recent retail boom has created large
stores and malls, so the company wants to make sure it’s in with the new
marketing crowd. Hence Baillie’s Hypercity visits, and the calls he makes on the
headquarters of the big retail chains.

This is quite a change for Hindustan Unilever, whose executives used to have
emissaries make obeisance at Lever house in downtown Mumbai. “I can’t imagine
any head from Lever House ever visiting other company offices like this,” says an
amazed Damodar Mall, chief executive of innovation and incubation at Pantaloon
Retail, India’s largest retailer and a former manager at Hindustan Unilever.

6)OTHER STRATEGY

 Grow ahead of market by leading market development activites.

 leverage positive impact of growing Indian economy on consumer spending.
 Grow a profitable foods and top end business.
 Grow the bottom-line ahead of top line.
 Strong commitment to sustainable development.
 SWOT ANALYSIS

STRENGTHS

 Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods company, touching the lives of two out of three Indians with over 20
distinct categories in Home & Personal Care Products and Foods &
Beverages..

 Due to its long presence in India – has deep penetration – 20 consumer

product category, over 15,000 employees, including over 1,300 managers, is
to "add vitality to life."

 The company derives 44.3% of its revenues from soaps and detergents,
26.6% from personal care products, 10.5% from beverages, and the rest from
foods, ice creams, exports, and other products.

 Low cost of production due to economic of scale. That means higher profits
and / or more competitioners. Better market penetration.

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

Weakness

 Strong competitors and availability of substitute products

 Low export levels

 High price of some products

 High advertising cost

Opportunities

 Increasing per capita national income resulting in higher disposable income.

 Growing middle class and growing urban population.

 Increasing gifts cultures.

 Increasing departmental stores concept – impulse @ at cash counters.

 Globalization.

Threats

 HUL's tea business has declined marginally, reason is that, cost pressure is
likely due to rising crude and freight costs.

 Tax and regulatory structure.

 Mimic of brands.

 Removal of import restrictions resulting in replacing of domestic brands.

 Temporary slowdown in economy can have an impact on FMCG in Industry.

PEST ANALYSIS
P:
 since the budget range is decontrolled, no political effects are envisaged.

E:
 increasing per capita income resulting in higher Disposable income

 Growing middle class/urban population – increase in Demand

 Low cost of production – better penetration

S:
 Per capita consumption expected to increase – fashion

 Increasing gifts culture – increase in demand

T:
 Will have to reinforce technology to international levels Once India is a
“fully free” economy

MAJOR FINDINGS
  The Crisis of Declining Markets
Through the nineties, the FMCG markets grew at almost 15% per annum in value.
Suddenly, in 2000, FMCG market growth stalled and then declined for the next
four years. It is important to understand why this happened.
The rapid opening up of the economy resulted in many new avenues of expenditure
for the consumer’s growing income.A sharp drop in interest rates from 18% to 8%
led to explosive demand for consumer durables like white goods, two-wheelers and
automobiles. After all, one could drive out of a car showroom in a Maruti 800 with
a down payment of only Rs. 2000. The home ownership market grew
exponentially as the average age of a home loan borrower dropped from 50 in 1999
to 30 in 2004. Mobile phone ownership and usage exploded due to its amazing
lifestyle and convenience benefits as well as lower prices. Entertainment, Leisure
and Travel sectors also boomed.

The lure of new avenues of expenditure in products and services led to consumers
restricting their expanse on FMCG. It is not that they bathed less often or brushed
their teeth less often or indeed washed their clothes less often. But they did
downtrade to lower priced substitutes from higher quality brands. For example, a
consumer buying six tablets of Lux in a month went to buying three of Lux and
three cheaper brands. Or a consumer buying Surf Excel for her clothes mixed it
with a cheaper powder. As a result of this shift in spending patterns, the FMCG
market declined in value in the last four years creating a major challenge for
growth.

 The new Hindustan Lever:

Focused on FMCG In 2000, 75% of our sales came from FMCG businesses. The
rest came from several non-FMCG businesses which were not profitable, and did
not offer prospects for long-term leadership. Besides, they were a drain on the core
FMCG business, both in terms of resource and focus.
They decided to disengage from all non-FMCG or commodity businesses. In all,
we have divested and discontinued 15 businesses including Animal Feeds,
Speciality Chemicals, Nickel Catalyst, Adhesives, Thermometers, Seeds,
Mushrooms etc. with sales of Rs.1,750 crores as in 1999.
Today they are a focused on FMCG company with our branded business
accounting for over 90% of sales, consisting of 35 brands across 20 categories.
These will be their main engines of growth, with higher levels of resource
concentration, be it technology, people talent or media spend.

 Building blocks of a strong Foods business

In Foods, there is enormous growth potential in leading the evolution of
consumers to branded and processed foods. Over the last few years they have
focused on putting in place the building blocks of a strong Foods business.
Historically their Foods business was fragmented and lacked scale. It was often
commoditized with low margins. They recognized that changing food habits would
require considerable investment, which the current business simply could not
afford. Therefore they divested the non-value added parts like Vanaspati. They
have consolidated theuir portfolio and improved the gross margins by over 13%
through product mix and cost reduction. They have also cleared the supply chain of
all old stock and geared up for fresh availability on shelf.Today, their Foods
business has a healthy gross margin and a supply chain driven by freshness. The
Foods business will now invest for growth through relevant innovation.

 FMCG still offers enormous potential

As the largest FMCG player it was up to them to reverse the downtrading to
realize its true growth potential. They could achieve this by raising the bar and
becoming world class in what their brands offered and how they worked. Nothing
less would do.
Penetration levels in several of the categories and consumption levels in all of the
categories is low by any comparison.Across the world, they are seeing a strong
correlation between income levels and the size of FMCG markets.Over the next 10
years, per capita income in India is likely to touch China’s current levels. At those
levels, the FMCG market will be over Rs.100,000 crores from a current value of
Rs.40,000 crores. This is an opportunity that they have to seize.

 Portfolio of Strong Brands

Their main challenge was to reverse the downtrading in the categories and re-
establish the relevance of their brands in the mind of the consumer. In 2000, they
had 110 brands, many undifferentiated and lacking scale. They chose to focus on
35 power brands covering all consumer appeal and price segments. They are
already seeing the benefits. Six brands – Brooke Bond, Lifebuoy, Lux, Fair &
Lovely, Rin and Wheel – have emerged as mega brands in the last five years, each
with sales of more than Rs.500 crores.
  Better Value
The first step was to ensure that they offer world class quality and real
differentiation backed by technology to give them the advantage over low priced
competition. They have invested over Rs.400 crores, or 5% of sales, in the last
three years to upgrade the brands. In several cases they reduced prices to make the
brands more affordable. Better quality and more affordable prices have increased
the value to the consumer. They have also launched several low unit size and price
packs for single use to make the brands more accessible to all income groups. For
example, they are the first to introduce a branded toothpaste in a tube at Rs.5 and a
branded quality shampoo in a bottle at Rs.5.

 Bigger Role in Consumers’ Lives

Perhaps the most significant change has been to move the brands beyond merely
making functional claims to playing a bigger and deeper role in the lives of
consumers. They had to move from selling a soap or a detergent to something far
more important and central to the consumer’s life. How often have we heard
someone say, “A soap is a soap is a soap!” Or indeed, “All detergents clean clothes
as well”.

In the case ofLifebuoy, it was only when they associated it with the promise of
health and protection against disease that it claimed a larger space in the
consumer’s mind. It moved from being a mere soap to a health essential. Today
Lifebuoy, their oldest brand, has grown at over 15% for the last three years.
Similarly, in the laundry market, Surf Excel went well beyond the benefit of ‘great
clean’ by saving two buckets of water with every wash. Imagine the importance of
that benefit to consumers in cities, who often get running water for only a couple
of hours a day. Surf Excel is one of their fastest growing brands today.

Both Lifebuoy and Surf Excel have succeeded because they are relevant to two
key concerns of the Indian housewife: family health and the scarcity of water.

In addition to the growing consciousness of health, consumers today are looking

for ways to look good and feel good so that they can get much more out of life. In
short, consumers are seeking Vitality in their lives. Their portfolio of 35 power
brands is uniquely positioned to offer nutrition, hygiene and personal care benefits
and thereby deliver Vitality.
  Technology, the Key Differentiator
Their brands and sound understanding of the local consumer are supported by a
world class Research and Development capability. They have over 200 of the
brightest scientists and technologists based in India.

Their recent reorganization leverages the talent pool from across 16 global
technology centres, of which four are in India.In all, they have over 4,000 high
quality minds across Unilever working relentlessly to provide new benefits that
make a real difference to the consumers.

 Winning with Customers

Hindustan Lever has historically had a strong bond with its customers. They have
strengthened this and reinvented the way they manage their distribution channels
and their customers. The sales structure has been transformed to leverage scale and
build expertise in servicing Modern Trade and Rural Markets. They have also de-
layered their sales force to improve the response times and service levels.
Their customers are serviced on continuous replenishment. This is possible
because of IT connectivity across the extended supply chain of about 2,000
suppliers, 80 factories and 7,000 stockists. They have also combined backend
processes into a common Shared Service infrastructure, which supports the units
across the country. All these initiatives together have enhanced operational
efficiencies, improved the service to the customers and have brought us closer to
the marketplace.

 Our Acorns: Investing in our Future

In the pursuit of growth, they have also begun to nurture some acorns for the
future. These are both new businesses and new ways of engaging with consumers.

Their entry into Water Purifiers, through Pureit, shows great promise. Pureit
delivers 100% protection against all water-borne diseases. It provides water which
is as safe as boiled water, without needing electricity or continuous tap water
supply. At 17 paise per litre, it is extremely affordable for the common man. They
have launched it in Tamil Nadu and are fine-tuning all aspects of the business
system before a phased national launch.

In urban India, Hindustan Lever Network (HLN) is their direct selling initiative
selling a special range of products. It already reaches 1,400 towns with over 3 lakh
consultants. Besides reach, HLN enables direct interaction with consumers and
customises solutions for them to give them a complete brand experience.

 Our People & Organisation

They have restructured the company, integrating eight Profit Centres into two
Divisions – Home and Personal Care (HPC) and Foods. The result is a simpler and
leaner organisation, less hierarchical with fewer levels and greater empowerment.
This has eliminated complexity and speeded up decision making. Today the
company is far more youthful in attitude and spirit. There is greater openness and
transparency.

 The Transformation: Investment in the Future

To ensure that Hindustan Lever remains competitive in the long-term, they have
made significant investments in product quality, pricing and marketing. As
mentioned earlier, the investment in product quality alone has been in excess of Rs.
400 crores, or 5% of our sales.
In addition there has been the cost of defending their market position. Recently an
international competitor attacked their laundry business led by a price reduction of
as much as 50%. They acted with speed and determination leveraging all their past
experience in India and internationally. They have been able to fully protect their
market leadership and share, albeit sacrificing short-term profit. They made this
necessary trade-off as market share is the best means of sustaining future profit.
Over time, their stronger market positions will surely lead to greater long-term
profit.

Despite these significant investments to strengthen the long-term competitiveness

and the costs of defending the strong market position, they still remain one of the
most profitable companies in the country.
 FIVE P’S OF MARKETING
Product

Satisfaction suffices. But delight dazzles the average company will compete for
customer by conforming to her expectation consistently. But the winner will
surpass them by constantly exceeding her expectation, delivering to her door step
additional benefits which she would never have imagined possible. Hindustan
Unilever Ltd(HUL) offer such product. The wide variety products offered by the
company include:

The company’s popular product’s include:

• Bathing soaps : Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and Rexona

• Laundry items : Surf Excel, Rin and Wheel

• Skin care: Fair & Lovely, Pond’s and Vaseline

•Hair care: Sunsilk and Clinic

• Oral care: Pepsodent and Close up

• Deodorants : Axe and Rexona

• Colour cosmetics : Lakme

• Ayurvedic: Ayush

• Tea: Brooke Bond and Lipton

• Coffee : Bru

• Foods: Kissan, Annapurna and Knorr

• Ice cream:kwality walls

Pricing
Make no mistake. Second P of marketing is not another name for blindly lowering
prices and relying on this strategy alone to increase sales dramatically.

The strategy used by Hindustan Unilever Ltd(HUL) is for matching the value that
customer pays to buy the product with the expectation they have about what the
production is worth to them.

Hindustan Unilever Ltd(HUL) has launched various products which cater to all
customer segments. So every customer segment has different price expectation
from the product. Therefore maximizing the returns involves identifying right price
level for each segment, and then progressively moving through them.

Physical Distribution –

“Place” BRAND ISN’T THE ONLY ANY MORE.Marketers and finance manager
need a new term to evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built,
distribution equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the hottest strategies
on the block, swamp prime television with best Ads, but the end of it all, you
would be know of selling your products. The cardinal task before the Indian
market is managing is to shoe-horn its product on retail shelves. Buyers are paying
for distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in India? With
technology and competitive pressure slash in it is becoming increasing difficult for
marketers to retain a unique product differentiation for ling period. In a product
and price parity situation, the brand that sells more is the one that reaches the
highest number of customers.

India – The operations involve over 2,000 suppliers and associates. HUL's
distribution network, comprising about 4,000 redistribution stockists, covering 6.3
million retail outlets reaching the entire urban population, and about 250 million
rural consumers.television has already primed and population for consumption, and
the marketer who can get to the to the consumer ahead of competition will give a
hard – to – overtake lead.

But getting their means managing wildly different terrains-climate, language,

value system, life style, transport and communication network. And your brand
equity isn’t going to help when it comes to tackling these issues. Own distribution
network consist of clearing and forwarding (C&F) agents & distribution stockiest.
This network of distribution can either contact wholesalers and which in turn
retailers or the distributors can contact to the retailers directly. Once the stock
product reaches retailers, the prospective customers can have access to the product.
Hindustan Unilever Ltd(HUL) distributes the product in the manner stated above.

Hindustan Unilever Ltd(HUL) distribution network has expanded. Beside use of

improved logistics, Hindustan Unilever Ltd(HUL) is also attempting to improve
the distribution quality. To address the issue of product stability, it has installed
visi colors at several outlets. This helps in maintaining consumption in summer
when sales usually drops due to the fact that the heal effects product quality and
thereby off takes.

Looking at the low penetration of few products, a distribution expansion would

itself being incremental volume. The other reason is arch rival Procter & Gamble
Co. reaches more than a million retailers. This increase in distribution is going to
be accompanied by reduction in channel costs. Hindustan Unilever Ltd(HUL)
marketing costs, at 18% of total costs, is much higher than Procter & Gamble Co.
The company is looking to reduce this parity level. At Hindustan Unilever
Ltd(HUL), they believe that selling FMCG is it like selling soft drinks.

Promotion

If an advertisement is to communicate effectively, the receiver must at least half

want it to, and be prepared too take step toward the sender. Effective advertising is
rarely hectoring or loudly explicit…. It often both attracts and generates arm
feelings. More often than not, a successful campaign has a stronger element of the
unexpected a quality that good advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first
ensure exposure, grab her attention evoke her comprehension, grab her acceptance
and then extract retention competing with thousands of other units of
communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product
actually meant for children. The strategic response address the emotional appeal of
the band to the child within the adult.Naturally, that produced just the value
vacuum that Hindustan Unilever Ltd(HUL)was looking to fill.

Thereafter it was the job of the advertising to communicate customer the

wonderful feeling that he could experience by re-discoursing the careful, unself
conscious, pleasure – seeking child within himself – a graft these feeling onto the
Ad campaign like “hasso to khul k hasso for close up”, “cream bathing bar for
dove soap” and daag ache hai for surf excel” have been sure shot winner with
the audience.

It has also launched Pureit, a home water purifier which supplies drinking water
without boiling/need of electricity , As well as outdoor and radio ads, ad agency
contract has created communication for cinemas and even ATM machines for the
brand.

All ICICI’ s ATM a message flashes on the screen as soon as customer insert his
ATM card. Something familiar is planned for phone-book as well. In cinemas,
Hindustan Unilever(Ltd)has a message on-screen just before the lights are dimmed
to give them a chance to get their product There will also be after dinner sampling
in restaurants – to begin with, 30 catteries in Mumbai have been selected. Ad
spend in 2000 was about 14% of sales and the management said that plans to
maintain as spend at this level in the current year also.

And since any discussion today would be incomplete without mention ‘e’ word,
the management plans to tap this new channel of marketing. Beside the company
website (i.e. www.unilever.com), that the company has launched, it had also
entered into various marketing relationship with other portals, specially targeted
during festivals and events such as Valentines day, etc….
It’s a combination of spiffing up its key brand, researching and improving the
newer products that haven’t taken off,supported with high ad – spends that
Hindustan Unilever(Ltd) hopes will see it emerges stronger after the current
slowdown, as well as expand the market.

Positioning

In the 1970s consumers were ready to pay “more for more”, and luxury goods
flourished. In the 1980s, consumers began to demand “more for same”, and the
discounting era grew strong. Today’s consumer demanding “more for less”, and
the winner will be that super value marketers…. Some of today’s most successful
companies recognize those customers are more educated and able to recognize true
customer value…

Positioning is simply concentrating on an idea – or – even a word defines that

company in the mind of the consumer. It is more efficient to market one successful
concept to one large group of people than 50 product or service ideas to 50
separate group

Positioning is a must when customer attitude have changed and product have
strayed away from the consumer’s long standing perception of them… Hindustan
Unilever(Ltd) is an anchor in sea of consumer products. As a variety of
competitive claims assails her senses, today customer uses complicated decision
making process to assess the alternative before making a purchase.

Since Hindustan Unilever(Ltd) is more clearly associated with a particular set of

attributes in terms of benefits and prices, the quicker becomes her search process.
Positioning of individual product:

 Lifebuoy is ‘one of Unilever’s oldest brands’ with more than a hundred-year

history, as www.unilever.com informs. “Lifebuoy has become more than
just a red bar of soap – today the brand provides hygiene and health
solutions for families

 Fair & Lovely, a hot-selling “fairness” cream, which promises a lighter skin
tone for many of India’s complexion-conscious consumers
 HINDUSTAN UNILEVER’S MARKET SEGMENTATION
 Market place for any product is comprised of many different segments of
consumers, each with different needs and wants. Markets segmentation
can be defined in a number of ways such as:

 Demographic variables (e.g. Consumers are groups, gender, material

states income etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits
which consumers look for in a product or on the occasions when the
product might be consumed.

 Hindustan Unilever(Ltd) takes into account all these factors when

producing a range of products. It targets different segments within the
market, such as the:

 Break segment – products which are normally consume as a snatched

break and often with tea and coffee.

 Impulse segment – these products are often purchase on impulse, used

these and then. They include product such as close up.

 Take home segment – this describes product that are normally

purchased in supermarkets, taken home consumed at a later stage.

CONCLUSION
In recent years, the FMCG sector declined due to downtrading. Also because of
presence of large number of companies trying to seize this opportunity, this force
the old HUL for the change and thus, their transformation has resulted in a new
HUL, which has successfully faced this challenge and reversed this trend. It has
done so by substantially strengthening their brands and building capabilities. This
has already begun to yield benefits and they are returning to growth. Volume
growth is being followed by value growth, which in turn is bringing profit growth.

India is one of the most exciting markets offering great potential.Over the next 10
years, the per capita income in India is likely to double. In FMCG, there is an
opportunity to catalyze penetration, increase usage, and upgrade consumers. As a
result, the FMCG market is expected to grow to over Rs.100,000 crores from its
current base of Rs.40,000 crores.

The new Hindustan Lever see an exciting opportunity for growth. They have 35
powerful brands covering all segments, with leading market positions in most.
Today, these are stronger and more relevant to the consumer than ever. The people
are energized by the scale of the opportunity and determined to seize it. The scale
of the business and operations gives them the resources needed.They are delivering
good services and the changes they brought in the products are well taken by the
customers, by this they are generating sustainable profitable growth