Industry Research – Company Analysis

Company name: Hindustan Unilever Limited

Sector & Subsector: FMCG & Household & Personal Products

Group No: Marketing 3

Students’ Introduction
Sr.no. Name Roll no. Division
1 Sakshi Bonde 08 MKT A
MKT A
2 Sahil Kadte 25
MKT A
3 Rohit Mane 35
MKT A
4 Baibhav Roy 48
MKT A
5 Rahil Tickoo 57
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 About the Sub-Sector
• Introduction to the sub-sector
The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry is mainly responsible
for producing, distributing and marketing fast-moving consumer goods. Household and personal care products accounts for
50% of the sales in the industry, healthcare accounts for 31-32% and food and beverage accounts for the remaining 18-19%.
• Characteristics
• Market Size and Growth-$600 billion in 2023
• Product Diversity and innovation
• Competition and Brand Loyalty
• Shifting Consumer Preferences
• Distribution Channels and E-commerce

• Segments/Categories
Home care: Laundry detergents, dishwashing products, household cleaners, air fresheners Personal care: Skin care,
hair care, cosmetics, toiletries, fragrances Baby care: Diapers, wipes, baby bath products, baby food Oral care: Toothpaste,
mouthwash, dental floss.
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 FMCG & Household & Personal Products
Importance for the Economy :

• Employment

• tax revenues

• foreign exchange

• enhancing the quality of life

• Improving health and hygiene

• Training ground for skilled personnel

• entrepreneurial opportunities

• Growth of the Sub-sector :

1) Region: Developed markets: slower growth around 2-3%. Emerging markets: Emerging economies like China and India are driving significant expansion, with
growth rates of 5-7%.

2)Product category Essential categories: Basic hygiene products tend to have stable growth rates around 2-3%. Non-essential categories: Cosmetics, fragrances, and
premium skincare can experience faster growth 4-6%

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 FMCG & Household & Personal Products

Challenges
(Headwinds)
• Intense competition
• Evolving consumer preferences
• Economic fluctuations
• Supply chain disruptions
Opportunities
(Tailwinds)
• Emerging markets
• E-commerce boom
• Personalization and customization
• Collaborations and partnerships
• subscription models

Trends in the Sector :

1) Rise of e-commerce

2) Shifting consumer preferences

3) innovation

4) Sustainability
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 FMCG & Household & Personal Products

What’s new in the Sub-Sector?

• Personalization and Customization
• Rise of Direct-to-Consumer Brands
• Digital Transformation
• Expansion in Emerging Markets
• focus on Health and Wellness

New developments and updates in the sector:-

1.Household products and personal care sector can generate up to an additional usd 62 billion in annual business value by 2030 if it makes nature A central focus of
its operations, A new research by the world economic forum (wef)
2. Export $17.34 bn forecasted market size: fy26 the growing middle class population and rising disposable income will be the key growth drivers for segmenst such
as premium beauty and personal care products
3. Role of innovation and technology play in this sector:
Utilizing biotechnologies, natural extracts, and advanced materials to create more effective, sustainable, and personalized products

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 FMCG & Household & Personal Products

Innovation and Technology play :

Role of AI :
Artificial Intelligence (AI) is playing an increasingly important role. Optimizing inventory management, logistics, and
predictive maintenance of equipment. Marketing and Consumer Engagement
Automation :
Enhancing supply chain transparency, ensuring ethical sourcing, and combating counterfeiting. Enhancing product education
and offering immersive shopping experiences.

Government policies :
Regulations Safety and quality standards
Taxes and subsidies
Consumer protection
trade agreements
sustainability regulations
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 FMCG & Household & Personal Products

Metrics Year 2023

Industry size (in crores) 135,000 cr

Growth percentage of the sub-sector 8-10%

Main players/top companies and their market HUL- 44%

share GODREJ CONSUMER-8.7%

Revenue structure (Key revenue generation FMCG GOODS

items) PURE CLICK
BRICK AND MORTAR

Cost structure DIRECT AND INDIRECT COSTS

Percentage Import 10-15%

Percentage contribution to GDP AROUND 5%

Profitability Margin Range 13%

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 FMCG– HOUSEHOLD AND PERSONAL CARE
• Develop custom tailored face and • Custom-made, • Young adults
• Suppliers of body care products individualized face and • Direct consultation • Health conscious
targeted • Produce targeted treatments and body care products with personalized people
treatments and creams for skin care tailored to each offerings • People aged 40
creams: • Offer a customer loyalty program customer's unique • Membership
to reward brand loyalty and above
• Professionals needs and preferences subscription to
• Manage relationships with
offering • Targeted treatments exclusive discounts
existing distributors and partners
personalized and creams tailored to • Personalized
Organize online workshops and
skin care events each customer's skin monthly emails
type Personalized skin
routines
care routine detailed
• Reputable labs
according to customer
to quality test preferences and Traditional retail
and certify • Manufacturing facilities Online retail
• lifestyle Monthly
products Distribution networks Specialized categories
advice tailored
• Intangible resources
according to customer
• human resources skin type
• Premium Membership
with exclusive
discounts

• Revenue from sales of face and body care products

• Cost of natural ingredients,
• Revenue from sales of targeted treatments and creams
• treatments and creams
• Revenue from customization of products for customers based on their skin
• Labor costs
• type.
Website maintenance & management
• Revenue from Premium Membership subscription
• Advertising and promotional costs.
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 Porter’s Five Forces Model – Sub-Sector
Threat of New Entrants
• Barriers to entry
• Need for specialized skills
• Brand recognition
Bargaining Power of
Buyers
• Price sensitivity
• Switching costs
• Buyer concentration
Bargaining Power of
Suppliers
A B • Number of alternative
suppliers
• Switching costs
• Criticality of resources
Competitive
Rivalry
Threat of Substitutes
C D • Number of alternative
suppliers
• Switching costs
• Criticality of resources
• Number of competitors
• Product differentiation,
• Level of concentration
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 PESTEL Analysis – Sub-Sector

P E S T E L
• Government • Disposable • Demographics • Artificial • Climate • Product safety
Regulations income levels and intelligence change and regulations
consumer spending natural
patterns • Changing • Digitalization resource • Intellectual
• Trade policies lifestyle (E – commerce availability property laws
and tariffs • Economic platform)
growth rate • Sustainability • Product
• Focus on • Product regulations liability laws
• Political • Inflation sustainability Innovation
stability • Consumer • Employment
• Exchange Rates preferences laws, labor
• Social media • Automation regulations,
• Taxes • Unemployment • Waste and health and
Management safety
( sustainable standards
initiatives) Ozone by YUGMA | yugma.ai
 SWOT Analysis – Sub-Sector

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• High demand • • Emerging market • Private label
Low margins
• Wide product • • E-commerce competition
Seasonality
range • Susceptibility to growth • Regulatory
• Brand loyalty • Personalization changes
economic
• Innovation potent • Sustainability foc • Raw material
downturn
ial • High us price fluctuations
dependence on r • Tech disruption
etailers

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 CONCLUSION

The Indian HPC sector boasts strong growth potential fueled by a rising middle
class and changing consumer preferences.
While premiumization and sustainability trends offer lucrative opportunities,
intense competition and evolving regulations require strategic navigation.
Companies that adapt to personalization, technological advancements, and
environmental demands will thrive in this dynamic market.

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 HINDUSTAN UNILEVER

(students can add company’s name, logo, picture etc)

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 HINDUSTAN UNILEVER

Date of Incorporation 17 OCT 1933

Chief Executive officer ROHIT JAWA

Headquarters (location) Andheri (E), Mumbai

Bombay Stock Exchange Limited

Listing status (listed/unlisted) 500696

National Stock Exchange of India

Limited
HINDUNILVR

No. of employees 21,000 employees

Recommended Source: Company website, LinkedIn page.

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 INTRODUCTION

• Hindustan Unilever Limited (HUL) is a British-owned Indian final good

company
• Headquartered in Mumbai It is a subsidiary of the British company Uniliver.
• Its products include foods, beverages, cleaning agent ,personal care products ,
water purifires and other fast moving consumer goods (FMCGs).
• Hindustan Unilever Limited (HUL) was established in 1931 as Hindustan
Vanaspati Manufacturing Co.
• Following a merger of constituent groups in 1956,
• It was renamed Hindustan Lever Limited.
• The company was renamed again in June 2007 as Hindustan Unilever Limited

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 Key Products
•Foods and Refreshment:
•Beverages: Brooke Bond tea, Lipton tea,
Horlicks health drinks, Boost health drinks, Bru
coffee
•Foods: Kissan jams, ketchups, squashes; Knorr
soups and noodles; Kwality Wall's ice-creams;
Hellmann's mayonnaise
•Home Care:
•Laundry: Surf Excel, Rin detergents, Comfort
fabric softeners
•Cleaning: Vim cleaners, Cif cleaners, Domex
bleach
•Personal Care:
•Skin Care: Dove soaps and lotions, Lux soaps,
Pears soaps, Glow & Lovely fairness creams
•Hair Care: Clinic Plus shampoos, Clear anti-
dandruff shampoos, Pepsodent toothpaste,
Close-up toothpaste
•Deodorants: Axe deodorants, Dove deodorants

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Categories Segment

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 History & Background
• 1930s: Roots established with formation of:
•Hindustan Vanaspati Manufacturing Co. (1931) - focused on vegetable oils (Dalda)

•1956: Merger of Hindustan Vanaspati Manufacturing Co., Lever Brothers India Limited,
and United Traders Limited forms Hindustan Lever Limited (HLL)

•1956: HLL becomes one of the first foreign subsidiaries to offer equity to the Indian public

•1960s-1970s: Brand expansion with Lipton tea and Kwality Wall's ice-cream

Late 20th Century: HLL becomes market leader in various FMCG categories

•2007: Rebranding as Hindustan Unilever Limited (HUL) to reflect globa l association with
Unilever
•Present: HUL remains a dominant player
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 HUL Growth Strategy
.

WINNING WITH BRANDS &

INNOVATION

WINNING IN THE MARKET

PLACE

WINNING THROUGH
CONTINUOUS
IMPROVEMENTS

WINNING WITH PEOPLE

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VISION MISSION Business Model

 HUL makes its money

 The mission that inspires through the sales of
HUL is to help people products across a range
feel good of categorie

 look good & get mere  including beauty,

out of life with brands personal care, and ice
cream
 And services that are
good for them & good for  This diversified
others. portfolio helps the
company weather
volatility and grow
profits overOzone
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INNOVATION

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 AWARDS Latest News

• Received the Best Company award in ESG

practices in the Consumer Products sector on all
three facets of E, S, & G at the KPMG India ESG
Excellence Awards 2023.
• Top performer in FMCG category in Dun &
Bradstreet's India’s Top 500 Companies list
2022.
• Overall winner across Asia in the ‘Best Supply
Chain Solution’ category at the Adam Smith
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Main Competitors of HUL

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 Competition Analysis: Key Performance
metrics
Metrics HUL ITC GODREJ CONSUMER DABUR INDIA

Type (Public/Private) Public Public Public Public

Health Care
Foods, beverages, Hotels Soaps and Personal Care
Personal Care
cleaning agents, Paperboards & Packaging Hair Care
Products Foods
personal care products, Agri-business Household Care
Home Care
water purifiers IT (Information Technology) Health Care and Nutrition
Beverages
Cigarette Business

Net sales (Cr) 60,580 Cr. 76,518 Cr. 13,315 Cr. 11,529 Cr.

Employees 21,000 employees 50,000 Employees 21,000 Employees 7,740 Employees

19,476 Cr.
Profit (Cr) 10,144 Cr. 1,702 Cr. 1,701 Cr.

Recommended Source: Screener.in

PROPRIETORY & CONFIDENTIAL Ozone by YUGMA | yugma.ai
 Data analysis - HUL
CAGR
CAGR
Metrics
Metrics 2019
2019 2020
2020 2021
2021 2022
2022 2023
2023 Growth 1 year
Growth 1 year growth Remarks/Analysis
Remarks/Analysis
(5
(5 years) growth
years)
Revenue (Rs
Revenue (RsCr)
Cr) 8,533.05 8,703.59
8,703.59 9,561.65
9,561.65 10,888.68
10,888.68 11,529.8
11,529.89 Revenue increased from 10,888 FY22 to 11,529 in FY23
8,533.05
9 7.82%
7.82% 5.89%
5.89%
Profit (Rs Cr) 1,446.25 1,447.92 1,694.95 1,742.30 1,701.33 Profit decreased by 2.35%
Profit (Rs Cr) 1,446.25 1,447.92 1,694.95 1,742.30 1,701.33 4.14% -2.35%
4.14% -2.35%
Overall Cost 132400 115720 149515 158696 192295 Overall cost increased by 21.17%
Overall Cost 9.78%
9.78% 21.17%
21.17%
Market share witnessed a spike and stood at 601000 in
Market share
Market share 37,00,00
37,00,00 497000
497000 571000
571000 481000
481000 601000
601000
FY23 as against 481000 in FY22
24.95%
24.95%

15,845 15,697 20,141 22,871 28,427 Cost of Material consumed witnessed a spike and stood
Costof
Cost of Materials
Materials consumed
consumed(Rs
(RsCr)Cr) 15,845 15,697 20,141 22,871 28,427 at 28,427 Y23 as against 22,871 in FY22
15.73%
15.73% 24.29%
24.29%
Cost
Costof of
Materials consumed
Materials (% of(%Total
consumed of
Cost/ Revenue) 185.69 180.35
185.69 180.35 210.64
210.64 210.04 246.55
210.04 246.55
Total Cost/ Revenue) 7.34% 17.38%
7.34% 17.38%
Employee Benefit expenses witnessed a spike and stood
Employee Benefit
Employee Benefit Expenses
Expenses(Rs
(RsCr)Cr) at ,2665 cr. in FY23 as against 3,399 in FY22
1,747
1,747 1,691
1,691 2,229
2,229 2,399
2,399 2,665
2,665 11.14% 11.09%
11.14% 11.09%
Employee Benefit Expenses (% of Total
Employee Benefit
Cost Expenses (% of
or Revenue) 1.319 1.461 1.491 1.512 1.386
Total Cost or Revenue) 1.319 1.461 1.491 1.512 1.386 1.24% -8.32%
1.24% -8.32%
It witnessed a spike and stood at 1667 in FY23 as against
Total Cost/
Total Cost/ Total
Totalrevenue
revenue(%)
(%) 1551.61
1551.61 1329.57 1563.69
1329.57 1563.69 1457.44 1667.80
1457.44 1667.80 1.82%
1.82% 14.43%
14.43% 12457 in FY22
Operating Profit
Operating Profit 8,880
8,880 9,853
9,853 11,626
11,626 12,857
12,857 14,148
14,148 12.35% 10.04% Operating profit witnessed a spike and stood at 14,148
12.35% 10.04% in FY23 as against 12,857 in FY22
Operating Profit Margin (%) 23% 25% 25% 25% 23% 0.00% -8.00% Operating profit margins witnessed a fall and stood at
Operating Profit Margin (%) 23.3% 25% 25% 25% 23%
0.00% -8.00% 23.3% in FY23 as against 25% in FY22
Net Profit (Rs) 15.40% 17% 17% 16.90% 16.70%
Net Profit (Rs) 15.40% 17% 17% 16.90% 16.70% 2.05% -1.18%Net profit margins during the year declined from 16.90%
in FY22 to 16.70% in FY23.
2.05% -1.18%
PROPRIETORY & CONFIDENTIAL Recommended Source: Screener.in Ozone by YUGMA |

• Suppliers
• NGOs
• Social Enterprises
• Government Bodies
• Variable Cost Structure
• Fixed Cost Structure
BMC – HUL
• Product Innovation • High-Quality, Diverse • Understanding Customer • Value-conscious
Product Portfolio Needs Consumers
• Product Development • Security and Hygiene
• Innovation& • Building Brand Trust & Seekers
• Manufacturing Affordability Loyalty
• Aspirational Consumers
• Marketing & Sales • Strong Brand • Personalized
Reputation & Trust Communication • Rural Consumers
Focus on Sustainability & • Customer Service • Environmentally
Social Impact Conscious Consumers
• Strong Brand Portfolio • Nestle India Ltd
• Effective Distribution
• R&D Capabilities Network & Market • GodrejConsumer
Reach Products Ltd
• Extensive Distribution
Network • P&G
• Extensive Distribution • Dabur India Ltd
Network
• Sales of FMCG Products
• Sales of Water Purifiers
• Other Services
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 Porter’s Five Forces Model – HUL

Bargaining Power of Bargaining Power of

Supplier customer
• Moderate
• Diversified Supplier Base
A B • Moderate to High
• Power of Retailers
• Large Volume Purchases • Price Sensitivity of
Consumers
Competitive
Rivalry

Threat of New Entry Threat of Substitutes

• LOW C D • Moderate
• Availability of
• High capital
investment: . substitutes
• Brand • Innovation plays a role
loyalty: Regulatory
requirements: • High
• Fragmented market with
numerous players
• Regular product launches
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 PESTEL Analysis – Company

P E S T E L
• Political • Economical • Social • Technological • Envirnomental • Legal
• Governmen • Economic • Changing • E-commerce • Resource • Packaging
regulations growth consumer DigitalTransfor Scarcity Innovations
• Government • Inflation preferences mation • Climate Change • Product Safety
policies • Economic • Rising • Automation and and and Labeling
• Political Growth Urbanization Robotics Sustainability Regulations
Stability • Inflation • Evolving Family • Artificial • Waste • Advertising and
• Foreign Trade • Interest Rates Structures Intelligence (AI) Management Marketing
Policies • Social and Machine and Pollution Norms
• Geopolitical Stratification Learning (ML) Control • Consumer
Environment and Income • Packaging • Consumer Protection Laws
Inequality Innovations Preferences and • Competition
• Government Regulations Law
Initiative • Government
Initiatives

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 SWOT Analysis – HUL

OPPORTUNITIE
STRENGTHS WEAKNESSES THREATS
• Strong Brand •
S
Expansion into • Intensified
• Limited Presence in
Portfolio Premium and Organic Competition:
Premium Segments
Segments • Evolving Consumer
• Extensive Preferences
• Dependence on Key
Distribution • Focus on Rural
Raw Materials
Network Markets • Sustainability
• Vulnerability to • Sustainability and
Concerns
• Financial Economic Downturns
Strength Environmental
• Economic
Consciousness
• Slow Innovation in Fluctuations and
• Profitability Some Categories Inflation

• Text Ozone by YUGMA | yugma.ai

 Preparing for the Company
Why knowing this company useful for you
• Knowledge about varied businesses
• Knowledge about Business & Revenue model (Products & Services)
• Deep understanding about the sector

How would you prepare for this company

• Jobs available (Review sites such as Glassdoor, Mouthshut.com etc. for Roles, Comps, Company feedback etc.)
• Skill sets required (how will you build these skill sets)
• Research on Interview questions
• How do you see yourself growing in this organization / growing in this sector

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 Conclusion about the Company
• Conclusion About FMCG Sector & Summary of Hindustan Uniliver Limited
• Promising Market
• Competitive Landscape
• HUL's Strengths:
-Strong brand recognition and consumer loyalty
-Extensive distribution network
-Focus on R&D and innovatiom
• By adapting to the dynamic market environment, focusing on innovation, and
addressing emerging threats, HUL can solidify its position as a leader in the
Indian FMCG sector and achieve sustainable growth

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 Sources of data you captured
• www.hul.co.in

• Economic Times

• www.moneycontrol.com

• Wikipedia

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 Some suggested sources
• Sector Research Reports • Equity Research Reports

• Research and Markets: https://www.researchandmarkets.com/ • Moneycontrol: https://www.moneycontrol.com/

• Frost & Sullivan: https://ww2.frost.com/ • Screener: https://www.screener.in/

• PwC India: https://www.pwc.in/ • Equitymaster: https://www.equitymaster.com/

• KPMG India: https://home.kpmg/in/en/home.html • Investing.com: https://in.investing.com/

• India Brand Equity Foundation (IBEF): https://www.ibef.org/ • Dalal Street Investment Journal: https://www.dsij.in/

• Confederation of Indian Industry (CII): https://www.cii.in/

• FICCI: https://www.ficci.in/

• Wikipedia

• ChatGPT, Bard Ai, Microsoft Co-pilot

• Company Website - Investor Presentations

• Primary Research (Meet stakeholders, Employees, Customers, Visit Outlets, Factory for gathering insights)
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Thank you

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