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HUL PROFILE

Harish Manwani (Chairman), Nitin Paranjpe (CEO and ManagingDirector).

Hindustan Unilever Limited is Indias largest fast moving consumergoods company.

HUL was formed in 1933 as Lever Brothers India Limited and cameinto being in 1956 as Hindustan Lever Limited through a merger ofLever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and UnitedTraders Ltd.

The company was renamed in June 2007 as Hindustan Unilever Limited.

Company with a scale of combined volumes of about 4 milliontonnes and sales of Rs.13, 718 crores.

Has an employee strength of over 15,000 employees and

contributes to indirect employment of over 52,000 people.

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Contd Gross Margins: 40% to 45%

Net Margins: 10% to 15%

Market share of about 45% across categories.

With 35 Power Brands, HUL meets everyday needs.

HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government

of India.

For the entire year ending March 2009 net turnover of company is Rs

20239.33 crore which is 47.99% higher than 31st Dec 2007s Rs

13675.43%crore driven by domestic FMCGs with net profit stood at

Rs. 2496.45 crore.

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HUL Brand

HUL is the market leader in Indian consumer products with

presence in over 20 consumer categories such as soaps, tea,

detergents and shampoos amongst others with over 700

million Indian consumers using its products.

According to Brand Equity, HUL has the largest number of

brands in the Most Trusted Brands List. It has consistently

had the largest number of brands in the Top 50, and in the

Top 10.

The company has a distribution channel of 6.3 million

outlets and owns 35 major Indian brands.

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HUL Brand..

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Winningwith Brands & Innovations: Launchesin 2009-10

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FINANCIAL DETAILS:-

Net Sale :- INR 17524 crores

Net profir:- INR 2202 crores

6 brands with net sales more than INR1000 crores

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FINANCIAL DETAILS- contd..

Home and personal care:- INR 13150 crores (net sales).

Foods, beverage, and ice creams:- INR 3062 crores (net

sales).

Material consumed and purchase of goods:- INR 8901

CRORES.

EXPORTS:- INR 1000 CRORES

Advertising and Promotion:- INR 2391 crores.

Research and Development :- inr 81 crores

** source Hansa Research guide to indian market 2010-11-17

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StructureofCompetitionin

Ind

ian

Markets

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StructureofHLLs Market Reach

in India

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FIVE MAIN COMPETITIVE

STRATEGIES ARE:-

Overall low cost leadership strategy

Best cost providers strategy

Broad differentiation strategy

Focused low cost strategy

Focused differentiation strategy

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DistributionofVillagesin India

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Project Shakti SHAKTI - ChangingLivesin Rural India

In 2000 HUL collaborated with self help group

(SHG) to extend the rural reach.

The objective is to extend the direct reach intountapped markets and to build brand throughlocal influencer.

And the social objective is to providesustainable livelihood opportunities forunderprivileged rural women..

Government of Andhra Pradesh took thepioneering step of supporting the initiative by

enabling linkages with the network of DWACRAGroups.

Started in 2001, Shakti is HUL's rural initiative,which targets small villages with population ofless than 2000 people or less .

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Project Shakti

Providing health and hygiene education through shaktivani program.

Micro-enterprise opportunities for rural women.

Help to meet rural needs by starting ishakti program

Rural India is spread across 630,000 villages and possesses a serious distributionchallenge for FMCG Cos.

HLL has come up with a unique and successful initiative wherein the women from therural sector market HLL products, and hence, are able to reach the same wavelength as

of the common man in village.

Apart from product reach, the initiative also creates brand awareness amongst thelower strata of society.

Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti.

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Project Shakti

This project was started in 2001 with the aim of increasing the companys

rural distribution.

And also providing rural women with income- generating opportunities.

Shakti is thus creating opportunities for rural women to live in improved

conditions and with dignity.

Shakti is working closely with the rural development departments of the

state governments, as well as large number of NGOs.

Shakti entrepreneurs earns INR 1000- 1500 a month, and since most of

them are live below the poverty line, this earning is significant and often

doubling the house hold income.

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Project Shakti

Shakti is having total 250 organisation that are supporting it.

Shakti has already been extended to about 15 states ,80,000 villages in

with 45,000 women entrepreneurs and generating Rs.700-1000 per month

to each women.

Shkati started with 17 women in two states and today it provides

livelihood to about 45000 women in 15 states and provide access to

quality products across 100000+ villages and over 3 million household

every month.

Shakti is not only a channel a distribution but shakti entrepreneurs are

also brand ambassador for all HUL brands in rural india. Shakti

entrepreneurs relationship with consumer is forged by their home to

home contacts, and go a long way in building brand loyalty.

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Shakti- VAANI Shakti Vani is a social communication programme.

Women, trained in health and hygiene issues, address

village communities through meetings at schools,

village baithaks.

In 2004, Shakti Vani has covered 10,000 villages inMadhya Pradesh, Chattisgarh and Karnataka.

The vision is to cover 5 lac villages in 2012

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iShakti The Internet-based rural information service, launched in Andhra

Pradesh, in association with the Andhra Pradesh Government's Rajiv

Internet Village Programme.

iShakti has been developed to provide information and services to

meet rural needs in medical health and hygiene, agriculture,

animal husbandry, education, vocational training and employmentand women's empowerment.

The vision is to have 10,000 kiosks across the state by 2011

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The GrowthofProject Shakti

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Participated States

Andhra Pradesh

Karnataka

Madhya Gujarat

Chhattisgarh

Maharashtra Orissa

Punjab

Rajasthan

Tamilnadu

UttarPradesh

West Bengal

Bihar

Haryana

Jharkha

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OTHER ACTIVITIES To improve the business skills of the SHG women, extensive training

programmes are being held.

Workshops have already covered a large number of Shakti Entrepreneurs

in Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh,

Tamilnadu, Chattisgarh and Orissa.

As part of their training programme, all HULManagement Trainees spend

about 4 weeks on Project Shakti in rural areas .

The factories that HUL continued establishing in less-developed regions of

the country have been engaged in developing rural market in adjacent

villages.

These factory-centered activities mainly focus on training farmers, animal

husbandry, generating alternative income, health & hygiene and

infrastructure development.

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Economic and Social Benefits

Sales Rs 11690/- month Rs 140,000/year

100,000 entrepreneurs by 2010.

Provide earnings to the women entrepreneur.

Improving the standard of living of rural sector.

New direction towards the retail industry

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Challenges

Scaling up for economic profit. Moving from variable

cost to fixed cost model.

Significance ofPartnerships with NGO sector and

Government

Building Commercial infrastructure (even Competitors).

Sustainability and Attention.

Multinationals Dilemma