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A Presentation on
HINDUSTAN UNILEVER LIMITED
BY -:
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HINDUSTAN UNILEVER LTD. India's largest FMCG
A subsidiary of Unilever which
holds 52% of the equity 2 out of 3 Indians use its products
Over 42 factories across India
Around 45% of HULs sales turnover of
Rs. 17,524 crore comes from rural markets,
valued at around Rs. 8,000 crore
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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.
In 1931, Unilever set up its first Indian subsidiary, HindustanVanaspati Manufacturing Company, followed by
Lever Brothers India Limited (1933) and
United Traders Limited (1935). These three companies
merged to form HUL in November 1956.
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PRODUCTS/BRANDS OF HUL
Food Brands
Red Label, Brooke Bond, Taj Mahal, Bru, Kissan, Knorr, Lipton ,
Kwality Walls
Personal Care Brands
Lux, Liril, Ponds, Pears, Dove, Rexona, Hamam, Close up, Clinic Plus,
Pepsodent, Vaseline, Sunsilk, Lakme, Fair and Lovely, Lifebouy
Home Care Brands
Surf Excel, Wheel, Rin, Domex, Cif
Water
Pure It
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VISION STATEMENT
The four pillars
1. Create a better future everyday
2. Help people feel good, look good & get more out of
life with brands & services that are good for them &for others
3. Inspire people to take small everyday actions that
can add up to a big difference for the world
4. Develop new ways of doing business that doublethe size of the company while reducing
environmental impact
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MISSION STATEMENT
Add Vitality to Life
Meet everyday needs for nutrition, hygiene and personal care
with brands that help people feel good, look good and getmore out of life
Total commitment to exceptional standards of performance
and productivity
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PURPOSE
Always working with integrity
Creating positive impact
Continuous commitment
Setting out our aspirations
Working with others
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STRENGTHS More than 50 years of operation (Rs. 3500 Cr. Fixed Assets
and Rs. 2000 Cr. Cash)
Soaps and detergents segment contribute 47% revenue
Sales (Rs. 17,500 Cr.) are 5 to 6 times that of Dabur, P&G
and Godrej
Extensive product innovation through R&D for 51 years
Business optimisation & integration of suppliers anddistributers through IT
YOY increase in growth, EPS and dividend
Very high returns e.g. ROA, ROC and RON
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WEAKNESSES
Profitability margin parameters are low compared to ITC,
P&G, Dabur, Marico and Godrej
Expenditure is 85% of sales (16% Advertising Expense)
More emphasis on power brands or low focus
Gain from other segments
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OPPORTUNITIES
Huge Rural Market
Increased purchasing power of middle class
Growth of other segments e.g. food
New markets e.g. Ayurvedic products
Export advantage
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THREATS
Huge players both Domestic & International
Inflation is reducing buying power
Price rise Stiff competition with ITC
Counterfeit products in rural areas
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HUL VALUE CHAIN
Business optimisation through Technology.
Integrating suppliers and distributers through SAP
Best marketing talent from top B-schools TPM and product flexibility in Operations
Emotional buying of satisfied customer