Hindustan Lever Limited

Presented by Anupam Sinha(m605) Khushboo Kumari(m610) Nitin Singh(m615) Roshan K Raju(m620) Sushil Kumar(m625) Uma sankar(m630) Nitin Kattiyar(m634)

Overview
Back on Growth Path About HLL The Problems HLL's Revival Efforts Revamping Power Brands Exploring New Businesses/Marketing Channels Focus on Food Business Changes at the Top The Challenges Ahead

Back on growth path

Announcement of Baillie as CEO. HLL's financial performance between 2001 and 2004 was not up to the mark. During the period, its revenues plunged by Rs 7.27 billion, while profits fell by Rs 3.5 billion. P&G cut their price in the detergent so as lever is also forced to. The sales increased but the value got decreased. The company decided to do away with its 'margin approach' and aimed at getting more market share in all product categories The company's stock too performed badly during the period

 Started focusing on volume and revenue growth, reviving promising products and concentrating on its 'power brands. All these changes, begun in 2002, have started to bear fruit as HLL registered double digit growth of 14% in its revenues in the third quarter of 2005.

The problems
HLL's problems began in the late 1990s. In May 2000, MS Banga (Banga) took over as the Chairman of HLL. Banga aimed at bringing in a 'margin-based approach' for HLL (power brand strategy)-Hll withdrew from several small market. Discounting of tea brands e.g-ruby dust and super dust(slow death of these brand).

 hll divested dalda brand in September 2003 because he think dalda had low growth potential . In 2003 Up government debarred Hll from bidding for supply of supplementary nutrition foods. Price war between p&g and Hll.in mid 2004 many company joined this war. Competition from regional player ghadi , amul ,cavinkare limited, anchor and ajanta clock. Several senior executive were being left the company

HLL's Revival Efforts

HLL increased the ad spend on power brands by almost 30%. The company reduced prices of products like shampoos. It also started venturing into new areas like herbal products and water purifiers and refocused on its food business.

Revamping Power Brands

HLL decided to revamp some of its power brands. Adding new variants to these popular brands would arouse customer curiosity and also provide better choice within the HLL product range itself.

Exploring New Businesses/Marketing Channels

HLL started to venture into new areas such as the ayurveda/herbal market, water purification systems, and into new channels of marketing. In June 2002, HLL introduced Lever Ayush ayurvedic health and beauty care products. In February 2005, HLL launched a water purifier named Pure-it.

Focus on food business

1990s 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 Icecream 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 Icecream Group families . 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. In 2005 introduced Brook Bond red label Natural care tea. Sold DDTCL to MRIL because to focus only on packaged tea business. In May 2007 it became the first tea company to commit to sourcing all its tea in a sustainable manner. It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010, followed by all Lipton tea bags globally by 2015 In 2011 the country's largest consumer products company Hindustan Unilever (HUL) and biggest retailer Future Group will co-develop and co-brand a line of bakery products that will be sold exclusively at Big Bazaar stores .

Food brands
Annapurna salt and atta Bru coffee Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea Kissan squashes,ketchups, juices and jams Lipton tea Knorr soups & meal makers and soupy noodles Kwality Wall's ice cream Modern Bread, ready to eat chapattis and other bakery items

FMCG industry in India

Earlier the purchasing power was less in India and govt. policy favoring the small sector. HLL made to the urban market though choice was less. They launched NIRMA. NIRMA provide quality product and at affordable rates. In 1991 the Indian govt. liberalized the economy and allowed foreign companies to enter the country. This improve the purchasing power of the rural areas. As this happened the product created to different segment of the society from mass to the premium market. Introduction of sachet was the boom in the FMCG market as it bring lot many changes.

Conclusion
Over the years , HLL has introduced and developed a full line of brands in all segments of the market. The HLL brand is to lead a better life . It advocates values that stand for healthy , hygiene ,family, trust and tastes . Today ,HLL driven by a passion for excellence , manifested by its innovative thinking ,has been able to weave itself into the fabric of consumers everyday life . Lastly ,the HLL brands have found their way into the hearts and homes of people all over the WORLD.HLL, continue to spread happiness and joy among people of alleges.