CHAPTER -1

INDUSTRY STUDY
1.1 SECTOR OVERVIEW AND STRATEGIC ANALYSIS

The company's portfolio comprises three divisions: home care, beauty

care, personal care, and food and refreshment. It includes 16 FMCG
categories, which are a part of the everyday life of millions of consumers
across India.

Guided by a mantra of 'doing well by doing good’, HUL are one of India's
largest Fast-moving Consumer Goods (FMCG) Companies with best-in-
class ESG ratings.
Michael porter’s five forces model:
Threats of new entrants
Threat of new entrants reflects how new market players impose threats to the
existing market players. If the industry will be profitable and barriers to enter
the industry will be low, it will attract more players and hence, the threat of
new entrants. will be high.

Threat of Substitute Products or services

The availability of substitute products or services makes the competitive
environment challenging for Hindustan Unilever Limited and other existing
players. High substitute threat shows that customers can use alternative
products/services from other industries to meet their needs.
Rivalry among existing firms
The Rivalry among existing firms shows the number of competitors that give
tough competition to the Hindustan Unilever Limited High rivalry shows
Hindustan Unilever Limited can face strong pressure from the rival firms,
which can limit each other’s growth potential. Profitability in such industries
is low as firms adopt aggressive targeting and pricing strategies against each
other.
Bargaining Power of Buyers
Bargaining power of buyers indicates the pressure that customers exert on the
business organizations to get high quality products at affordable prices with
excellent customer service. This force directly influences the Hindustan
Unilever Limited’s ability to accomplish the business objectives. Strong
bargaining power lowers profitability and makes the industry more
competitive. Whereas, when buyer power is weak, it makes the industry less
competitive and increase the profitability and growth opportunities for
Hindustan Unilever Limited
Bargaining Power of Suppliers
Bargaining power of suppliers in the Porter 5 force model reflects the
pressure exerted by suppliers on business organizations by adopting different
tactics like reducing the product availability, reducing the quality or increasing
the prices. When suppliers have strong bargaining power, it costs the buyers-
(business organizations). Moreover, high supplier bargaining power can
increase the competition in the industry and lower the profit and growth
potential for Hindustan Unilever Limited Similarly, weak supplier power can
make the industry more attractive due to high profitability and growth
potential.
PESTEL Analysis
PESTEL is an acronym for Political, Economic, Social, Technological, Legal,
and Environment. This unit of analysis assesses these four external factors
concerning the business situation. The analysis examines opportunities and
threats arising from these four factors.
Political Factors:
Merging of HUL with Tata Oil Mills Company and Lakme helped Hindustan
Unilever to venture into new areas like cosmetics and food oil with the help
of regulations of India eventually helping them to expand into product and
services. Hindustan Unilever, later on merged with Kimberly Clark
Corporation helping them to enter Huggies diapers and Kotex Sanitary
pads.

Economic Factors:
The whole world got hit with an economic crisis in 2009 but the Asian
countries were the ones which were least hit as their reliance was less
based on interest investments. When HUL was losing profits in most of the
countries abroad it was still earning profits in India.
Social Factors:
Lifebuoy Swasthya Chetana is another program that Hindustan Unilever runs.
This program focuses on getting people rid of diarrhea. HUL's Project Shakti is
an activity through which it focuses on little towns. Through it, Hindustan
Unilever is taking rural women and their needs into consideration, helping
them live a better and much more hygienic life. This program also gives them
cleanliness and wellness education through Shakti Vani.
Technological Factors:
HUL is utilizing the most recent IT innovation; industry center around a
mechanical exertion by utilizing innovation foundations, for example, the web,
intranet and other data trade frameworks including phone and innovation
equipment, for example, cell phones, workstations, work areas, Bluetooth
gadgets, printers and fax machines which transmit and record data.

Hindustan Unilever has started selling its products online and this has only
been possible through digitalization. Through its technology, HUL has been
able to analyze the big data of customers and their wants, what product sells
more and by how much, thus making a breakthrough. Technology has also
helped HUL understand customer relations and apply it in modern trade.
Legal Factors:
HUL ensures that it follows every local and national law in opts working and
selling. For example, in case of Gujarat, even after high rising prices of
production, Hindustan Unilever charged nominal in the times of drought and
floods in the state. The rest of the laws which are followed by HUL are mostly
the same as followed by any other MNC, it just needs to make sure that it
doesn’t abuse or violate any law.

Environmental Factors:
Hindustan Unilever has been in news always for breaking natural laws and
dumping compounds which are harmful and have jeopardized lives of workers
and residents living around their factories. An episode which occurred at
Kodaikanal industrial facility, because of dumping and selling pieces of glass
material containing Mercury, HUL came into light and was blamed for the same.
1.2 Key Market Players

Company’s Name Market Share (%)

ITC 14%
Hindustan Unilever (HUL) 12%
Marico 5%
Parle Agro 8%
Nestlé 3%
Britannia 3%
Dabur 2%
Godrej Group 2%
Procter & Gamble Co. 10.74 %
Colgate-Palmolive 7.06 %
Johnson and Johnson 7.12%
competitive landscape:
1.3 Analysis of growth trajectories of HUL in the FMCG Sector:

1. Market Leadership: HUL has been a dominant player in the Indian FMCG
sector for decades. Its strong brand portfolio, encompassing categories like
home care, personal care, foods, and refreshments, has enabled it to
maintain a leadership position in several product segments.

2.Distribution Network: HUL boasts an extensive distribution network that

reaches even the most remote corners of India. This widespread reach
ensures that its products are available to a vast consumer base,
contributing significantly to its growth.
3. Product Innovation: HUL has consistently focused on innovation to meet
evolving consumer preferences. Whether it's introducing new product variants,
improving formulations, or launching innovative packaging solutions, HUL stays
ahead of the curve in addressing changing consumer needs.

4.Brand Equity: The strong brand equity enjoyed by HUL's products instills
consumer trust and loyalty. This allows the company to command premium
pricing and maintain its market share even in the face of competition.

5. Adapting to Market Trends: HUL has demonstrated agility in adapting to

emerging market trends.
future opportunities of HUL in the fmcg sector:

Sustainability and Environmentally-friendly Products

Expanding into Rural Markets

Health and Wellness Segment

E-commerce and Digital Initiatives

Evaluating the Expansion & investment
Strategy of Hindustan Unilever Limited (HUL)

Understanding the Landscape

Project Streamline and Project Bharat

Shakti - Empowering Women, Empowering Rural Growth

Challenges and the Road Ahead

 CHAPTER -2

COMPANY STUDY
 1.1 Company overview
Hindustan Unilever Limited (HUL) is a British-Dutch company that is the largest
fast moving consumer goods (FMCG) company in India. It is a subsidiary of the
global company Unilever and has its headquarters in Mumbai, India. HUL
produces and sells a variety of products, including foods, beverages, cleaning
agents, personal care products, water purifiers, and other consumer goods. HUL
has over 35 brands and touches the lives of two out of three Indians23.
Company name HINDUSTANI UNILIVER LIMITED [HUL]

Address Khanvel Rd, Dapada, Dadra and Nagar

Haveli and Daman and Diu 396230

Email id H
Details on the company’s size

Man power financial turnover

2.2 Mission and Vision Statements
2.3 Facilities and Locations
2.4 Products and Services
2.5 Corporate History and Achievements
2.6 Market Competition Analysis
2.7 Financial and Operational Performance
2.8 SWOC Analysis