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SUMMER TRAINING REPORT
ON
MARKETING STRATEGIES
OF
HINDUSTAN UNILEVER LTD
As a partial fulfillment for the award of MBA Degree under
UTTARANCHAL INSTITUTE OF TECHNOLOGY
(Approved by AICTE, Affiliated to Uttarakhand Technical University)
ACADEMIC SESSION
(2010-12)
Submitted To: Submitted By:
Miss Shilpi Mittal Gaurav Balooni
FACULTY (UIM) MBA III
UIT (C)
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ACKNOWLEDGEMENT
I wish to express my heartfelt appreciation to many who have contributed to this study. I would
like to thank to Faculty Guide, uit, dehradun for her valuable guidance. I wish to express my
gratitude to my faculty guide, who provided me with constant impetus to complete this project.
GAURAV BALOONI
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TABLE OF CONTENTS
Executive Summary
Introduction
Company Profile
Current Market Context
Exports Portfolios
Corporate Management
Research & Innovation Centre
Safety & Health Policy
Market Strategies
HLL Distribution Network
Pioneering Channels
Hindustan Unilever Ltd.
Competitors
Research Methodology
Future Scope
Findings, Data Analysis & Conclusion
Recommendations
Suggestions
Limitations
Bibliography
(Annexure) Questionnaire
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EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians with over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. They endow the company with a scale of
combined volumes of about 4 million units and sales of Rs.10, 000 crores.
HUL is also one of the countrys largest exporters; it has been recognized as a Golden Super Star
Trading House by the Government of India. Hence, research aims is that to study the existing
marketing practices, emerging marketing plans and understanding companies business strategy
with its profile. The main recommendations have been made on the addressing of the advertising
message to the customers. An attempt has been made to formulate the communication in a way
to build it on a platform of the basic need for buying HUL products. In another recommendation
the suggestions towards better dealer interest in HUL products has been given a chance.
The research is based primarily on primary data; however few references to industry figures from
secondary data have been made. Data has been collected through in depth interviews and
administered questionnaires.
The study has given the researchers an inside of the Consumer durable Industry and anopportunity to use the theoretical knowledge in live project.
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INTRODUCTION
Over 100 years' link with India. In the summer of 1888, visitors to the Kolkata harbor & 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 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
These three companies merged to form HUL in November 1956; HUL offered 10% of its equity
to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds
51.55% equity in the company. By 1903, the company had launched Red Label tea in the
country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the
Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with
India were forged in 1898. It joined the Unilever fold through an international acquisition of
Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously responded tothe stimulus of economic growth. The growth process has been accompanied by judicious
diversification, always in line with Indian opinions and aspirations.
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's
and the Group's growth curve. Removal of the regulatory framework allowed the company to
explore every single product and opportunity segment, without any constraints on production
capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to
market Lakme's market-leading cosmetics and other appropriate products of both the companies.
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Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the
joint venture to the company.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL hasalso set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures
HUL's products like Soaps, Detergents and Personal Products both for the domestic market and
exports to India.
The 1990s also 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 July 1993, 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 and in 1995 the Milkfood 100% Icecream
marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies
had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses,
besides a common distribution system since 1993 for Personal Products. The two also had a
common management pool and a technology base. The amalgamation was done to ensure for the
Group, benefits from scale economies both in domestic and export markets and enable it to fundinvestments required for aggressively building new categories.
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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.
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COMPANY PROFILE
The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is to "addvitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands
that help people feel good, look good and get more out of life. It is a mission HUL shares with its
parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is
distributed among 380,000 individual shareholders and financial institutions.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sun silk,
Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's
are household names across the country and span many categories - soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in
close to 80 factories. The operations involve over 2,000 suppliers and associates. HUL's
distribution network, comprising about 7,000 redistribution stockiest, directly covers the entire
urban population, and about 250 million rural consumers.
HUL has traditionally been a company, which incorporates latest technology in all its operations.
The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now has facilities in
Mumbai and Bangalore. HLRC and the Global Technology Centers in India have over 200
highly qualified scientists and technologists, many with post-doctoral experience acquired in the
US and Europe.
HUL believes that an organizations worth is also in the service it renders to the community.
HUL is focusing on health & hygiene education, women empowerment, and water management.
It is also involved in education and rehabilitation of special or underprivileged children, care for
the destitute and HIV-positive, and rural development. HUL has also responded in case of
national calamities / adversities and contributes through various welfare measures, most recent
being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after
the Tsunami caused devastation in South India.
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Over the last three years the company has embarked on an ambitious program me, Shakti.
Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby
improving their livelihood and the standard of living in rural communities. Shakti also includes
health and hygiene education through the Shakti Vani Programme, and creating access to
relevant information through the iShakti community portal. The program me now covers about
50,000 villages in 12 states. HUL's vision is to take this program me to 100,000 villages
impacting the lives of over a 100 million rural Indians.
HUL is also running a rural health program me Lifebuoy Swasthya Chetana. The programe
endeavtheirs to induce adoption of hygienic practices among rural Indians and aims to bring
down the incidence of diarrhoea. It has already touched 70 million people in approximately
15000 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If
Hindustan Lever straddles the Indian corporate world, it is because of being single-minded in
identifying itself with Indian aspirations and needs in every walk of life.
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HINDUSTAN UNILEVER LIMITED INDIAS LARGEST FMCG COMPANY
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FINANCIAL OVERVIEW
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Hindustan Lever Limited Shareholding
Pattern
Unilever
51.6
Flls
13.7
Domestic
Fls
14.8
Individual
19.9
HUL Equity Capital - 50 Mn $
-
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PRESENT MARKETING STRATEGY:
Mission:
Hindustan Unilever Limited mission is to add Vitality to life. We meet everyday needs for
nutrition, hygiene, and personal care with brands that help people feel good, look good and get
more out of life.
Policy:
HUL has earned a reputation for conducting its business with integrity and with respect for the
interests of those their activities can affect. This reputation is an asset, just as real as their people
and brands.
Their first priority is to be a successful business and that means investing for growth and
balancing short-term and long-term interests. It also means caring about their consumers,
employees and shareholders, their business partners and the world in which we live.
From HUL Spokesperson To succeed requires the highest standards of behavior from all of us.
The general principles contained in this Code set out those standards. More detailed guidance
tailored to the needs of different countries and companies will build on these principles as
appropriate, but will not include any standards less rigorous than those contained in this Code.
We want this Code to be more than a collection of high-sounding statements. It must have
practical value in their day-to-day business and each one of us must follow these principles in the
spirit as well as the letter.ref: business world magazine.
Obeying the Law
HUL companies and employees are required to comply with the laws and regulations of the
countries in which they operate.
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Employees
HUL is committed to diversity in a working environment where there is mutual trust
and respect and where everyone feels responsible for the performance and reputation
of the company. HUL will recruit, employ and promote employees on the sole basis
of the qualifications and abilities needed for the work to be performed.
HUL are committed to safe and healthy working conditions for all employees. We
will not use any form of forced, compulsory or child labour.
HUL are committed to working with employees to develop and enhance each
individual's skills and capabilities.
HUL respect the dignity of the individual and the right of employees to freedom of
association.
HUL will maintain good communications with employees through company based
information and consultation procedures.
Consumers
HUL is committed to providing branded products and services which consistently offer value in
terms of price and quality, and which are safe for their intended use. Products and services will
be accurately and properly labelled, advertised and communicated.
Shareholders
HUL will conduct its operations in accordance with internationally accepted principles of good
corporate governance. They will provide timely, regular and reliable information on their
activities, structure, financial situation and performance to all shareholders.
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Business Partners
HUL is committed to establishing mutually beneficial relations with their suppliers, customers
and business partners.
In their business dealings they expect their partners to adhere to business principles consistent
with their own.
Community Involvement
HUL strives to be a trusted corporate citizen and, as an integral part of society, to fulfill their
responsibilities to the societies and communities in which they operate.
Public Activities
HUL companies are encouraged to promote and defend their legitimate business interests. HUL
will co-operate with governments and other organizations, both directly and through bodies such
as trade associations, in the development of proposed legislation and other regulations which
may affect legitimate business interests.
HUL neither supports political parties nor contributes to the funds of groups whose activities are
calculated to promote party interests.
The Environment
HUL is committed to making continuous improvements in the management of their
environmental impact and to the longer-term goal of developing a sustainable business.
HUL will work in partnership with others to promote environmental care, increase understanding
of environmental issues and disseminate good practice.
Innovation
In their scientific innovation to meet consumer needs they will respect the concerns of their
consumers and of society. They will work on the basis of sound science, applying rigorous
standards of product safety.
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Competition
HUL believes in vigorous yet fair competition and supports the development of appropriate
competition laws. Their companies and employees will conduct their operations in accordance
with the principles of fair competition and all applicable regulations.
Business Integrity
HUL does not give or receive, whether directly or indirectly, bribes or other improper advantages
for business or financial gain. No employee may offer, give or receive any gift or payment which
is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected
immediately and reported to management.
HUL accounting records and supporting documents must accurately describe and reflect the
nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will
be established or maintained.
Conflicts of Interests
All HUL employees are expected to avoid personal activities and financial interests which could
conflict with their responsibilities to the company.
HUL employees must not seek gain for themselves or others through misuse of their positions.
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ComplianceMonitoring Reporting
Compliance with these principles is an essential element in their business success. The Unilever
Board is responsible for ensuring these principles are communicated to, and understood and
observed by, all employees.
Day-to-day responsibility is delegated to the senior management of the regions and operating
companies. They are responsible for implementing these principles, if necessary through more
detailed guidance tailored to local needs.
Assurance of compliance is given and monitored each year. Compliance with the Code is subject
to review by the Board supported by the Audit Committee of the Board and the Corporate Risk
Committee.
Any breaches of the Code must be reported in accordance with the procedures specified by the
Joint Secretaries. The Board of Unilever will not criticise management for any loss of business
resulting from adherence to these principles and other mandatory policies and instructions.
The Board of Unilever expects employees to bring to their attention, or to that of senior
management, any breach or suspected breach of these principles.
Provision has been made for employees to be able to report in confidence and no employee will
suffer as a consequence of doing so.
In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience and
mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and their
respective subsidiary companies. The Board of Unilever means the Directors of Unilever N.V.
and Unilever PLC.ref:THE NEWS
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Environment policy
Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily
needs of consumers and industry. In doing so, the Company is committed to exhibit the highest
standards of corporate behaviour towards its consumers, employees, the societies and the world
in which we live.
The company recognises its joint responsibility with the Government and the Public to protect
environment and is committed to regulate all its activities so as to follow best practicable means
for minimising adverse environmental impact arising out of its operations.
The company is committed to making its products environmentally acceptable, on a scientifically
established basis, while fulfilling consumers' requirements for excellent quality, performance and
safety.
The aim of the Policy is to do all that is reasonably practicable to prevent or minimise,
encompassing all available knowledge and information, the risk of an adverse environmental
impact arising from processing of the product, its use or foreseeable misuse.
This Policy document reflects the continuing commitment of the Board for sound Environment
Management of its operations. The Policy applies to development of a process, product andservices, from research to full-scale operation. It is applicable to all company operations
covering its plantations, manufacturing, sales and distribution, research & innovation centres and
offices. This document defines the aims and scope of the Policy as well as responsibilities for the
achievement of the objectives laid down.
The Vision
Their vision is to continue to be an environmentally responsible organisation making continuousimprovements in the management of the environmental impact of their operations.
HUL will achieve this through an Integrated Environment Management approach, which focuses
on People, Technology and Facilities, supported by Management Commitment as the prime
driver.
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FMCG Market (HLL Categories)
Growth%
-1.1-2.5 -2.8
0.82.0
6.1
-4
-2
0
2
4
6
8
02 03 Q1 '04 Q2 '04 Q3 '04 Q4 '04
FMCG Markets
Slowdown in growth & then 2 years of decline
FMCG Markets
2009 - Revival after 2 years of decline
FMCG Market (HLL Categories)
Growth%
6.7
3.4
-2.5-1.1
-4
-2
0
2
4
6
8
00 01 02 03
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Pricing action in 2009:
Price reduction
Price reduction (Bottles) & Value improvement (Sachets)
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Investment Behind Brands
Innovation & Superior Quality
Familysafe Petalsoft Water & effort saving Quick wash - 50% No mud Rin Advance
from germs
Perfect Radiance 5 in 1 hair Total Care Whiter teeth Fresher breath
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Current Market Context
Actions
Pricing
Laundry : Price Reduction
Shampoos: Value Improvement & Lower Price Points
Toothpaste: Value Corrections & SKU rationalization
Investments behind brands
Innovations
Quality
Higher A&P
Corrective actions in processed
Processed Foods
Corrective actions
Phased stock reduction
Withdrawal of 03 innovation
Defocus of Atta in unviable geographies
Sales decline of 26% arising from above actions
Market shares held / improved
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BRANDS
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PRODUCTS
PERSONAL WASH
Lux Breeze
Lifebuoy Dove
Liril Pears
Hamam Rexona
LAUNDRY SKIN CARE
Surf Excel Fair & Lovely
Rin Pond's
Wheel
HEALTH CARE ORAL CARE
Sunsilk Naturals Pepsodent
Clinic Close-up
DEODORANTS COLOUR COSMETICS
Axe Lakme
Rexona
http://www.hll.com/brands/lux.asphttp://www.hll.com/brands/lux.asphttp://www.hll.com/brands/breeze.asphttp://www.hll.com/brands/breeze.asphttp://www.hll.com/brands/lifebuoy.asphttp://www.hll.com/brands/dove.asphttp://www.hll.com/brands/dove.asphttp://www.hll.com/brands/liril.asphttp://www.hll.com/brands/liril.asphttp://www.hll.com/brands/pears.asphttp://www.hll.com/brands/pears.asphttp://www.hll.com/brands/hamam.asphttp://www.hll.com/brands/hamam.asphttp://www.hll.com/brands/rexona.asphttp://www.hll.com/brands/surf_excel.asphttp://www.hll.com/brands/surf_excel.asphttp://www.hll.com/brands/fairnlovely.asphttp://www.hll.com/brands/rin.asphttp://www.hll.com/brands/ponds.asphttp://www.hll.com/brands/ponds.asphttp://www.hll.com/brands/wheel.asphttp://www.hll.com/brands/wheel.asphttp://www.hll.com/brands/sunsilk.asphttp://www.hll.com/brands/sunsilk.asphttp://www.hll.com/brands/pepsodent.asphttp://www.hll.com/brands/pepsodent.asphttp://www.hll.com/brands/clinicallclear.asphttp://www.hll.com/brands/close_up.asphttp://www.hll.com/brands/close_up.asphttp://www.hll.com/brands/axe_magnet.asphttp://www.hll.com/brands/lakme.asphttp://www.hll.com/brands/lakme.asphttp://www.hll.com/brands/rexona_deo.asphttp://www.hll.com/brands/rexona_deo.asphttp://www.hll.com/brands/lakme.asphttp://www.hll.com/brands/axe_magnet.asphttp://www.hll.com/brands/close_up.asphttp://www.hll.com/brands/clinicallclear.asphttp://www.hll.com/brands/pepsodent.asphttp://www.hll.com/brands/sunsilk.asphttp://www.hll.com/brands/wheel.asphttp://www.hll.com/brands/ponds.asphttp://www.hll.com/brands/rin.asphttp://www.hll.com/brands/fairnlovely.asphttp://www.hll.com/brands/surf_excel.asphttp://www.hll.com/brands/rexona.asphttp://www.hll.com/brands/hamam.asphttp://www.hll.com/brands/pears.asphttp://www.hll.com/brands/liril.asphttp://www.hll.com/brands/dove.asphttp://www.hll.com/brands/lifebuoy.asphttp://www.hll.com/brands/breeze.asphttp://www.hll.com/brands/lux.asp8/4/2019 Gaurav New
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AYURVEDIC PERSONAL AND HEALTH CARE
Ayush
Today, HUL is India's largest exporter of branded Fast Moving Consumer Goods. It has been
recognized by the Government of India as a Golden Super Star Trading House.
Over time, HUL has developed appropriate capabilities to be globally competitive in cost and
quality for a viable Exports business.
Focus Areas
HUL's Exports focuses on two broad areas. It is a sourcing base for Unilever brands in Home &
Personal Care (HPC) and Tea for supplies to other Unilever companies. It also focuses on
becoming a preferred supplier to both non- Unilever and Unilever clients in three categories in
which India, as a country, has competitive advantage - Marine Products, Castor and its
Derivatives and Rice. HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.
HUL's Exports geography comprises, at present, countries in Asia, Australia, Africa, North
America and Europe.
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HUL's Exports portfolio
HPC:
The categories are soaps, skin care products and oral care products. The brands are Lux,
Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up, Pepsodent, Signal. HUL is the only
source of Pears soap across the world.
Tea:
The categories are branded packet tea, and instant tea for Unilever's ready-to-drink tea business.
The branded teas are Brooke Bond, Brooke Bond Red label, Brooke Bond Taj Mahal, Lipton,
Lipton Yellow Label, Lipton Green Label, Lipton Brisk, Lipton 3-in-1 premix, Chinese
Rickshaw.
Marine Products:
HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to Shrimps and several
value-added products. Among its customers is Icelandic, the world's third largest seafood
company. In addition, HUL has also become a part of Unilever's supply chain in seafoods for
Europe too. HUL's Marine Products brands are Ocean Diamond, Ocean Excellence, Shogun,
Hima, Gold Seal, Tara and Prima.
Rice:
The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice meals. The brands are
Gold Seal Indus Valley, Rozana and Annapurna.
Castor:
The categories are Castor Oil, Castor-oil based products, like hydrogenated castor oil, 12 -
Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and lubricant industry, paints and surface
coatings, cosmetics, emulsifiers), and Speciality Castor Oils (USP grade, BP grade, DAB 10) etc
used in pharmaceutical preparations. HUL's Castor brand is Topsol.
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Today, Exports is a substantial business in HUL, accounting for about 12% of the company's
turnover. HUL believes that its competitive advantages of cost competitiveness, process
competitiveness and economies of scale both at the company and country level, hold it in good
stead. They position the company to become one of the hubs for sourcing by Unilever companies
in HPC and Tea, and also simultaneously become a preferred partner to global customers in
Marine Products, Castor and Rice.
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Direct Selling:
Product Range
Lever home range
Male grooming
Oral Care
Ayurveda
Personal Wash
Foods
Reach - 1400 towns (Largest in India)
Consultant base - 330,000
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Accordingly, HUL's aims are to:
Ensure safety of its products and operations for the environment by using standards of
environmental safety, which are scientifically sustainable and commonly acceptable.
Develop, introduce and maintain environmental management systems across the
company to meet the company standards as well as statutory requirements for
environment. Verify compliance with these standards through regular auditing.
Assess environmental impact of all its activities and set annual improvement objectives
and targets and review these to ensure that these are being met at the individual unit and
corporate levels.
Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.
Involve all employees in the implementation of this Policy and provide appropriate
training. Provide for dissemination of information to employees on environmental
objectives and performance through suitable communication networks.
Enctheirage suppliers and co-packers to develop and employ environmentally superior
processes and ingredients and co-operate with other members of the supply chain to
improve overall environmental performance.
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Responsibilities
Corporate
The Board and the Management Committee of HUL is committed to conduct the
company operations in an environmentally sound manner. The Management Committee
will:
Set mandatory standards and establish environmental improvement objectives and targets
for HUL as a whole and for individual units, and ensure these are included in the annual
operating plans.
Formally review environment performance of the company once every quarter.
Review environment performance when visiting units and recognize exemplary
performance.
Nominate:
- A senior line manager responsible for environmental performance at the individual HUL site.
- HUL environmental coordinator.
The Management Committee, through the nominated environmental coordinator will:
Ensure implementation of HUL Policy on environment and compliance with Unilever
and HUL environmental standards and the standards stipulated under relevant national /
local legislation. When believed to be appropriate, apply more stringent criteria than
those required by law.
Assess environmental impact of HUL operations and establish strategies for sound
environment management and key implementation steps.
Enctheirage development of inherently safer and cleaner manufacturing processes to
further raise the standards of environment performance.
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Establish appropriate management systems for environment management and ensure
regular auditing to verify compliance.
Establish systems for appropriate training in implementation of Environment
Management Systems at work.
Ensure that all employees are made aware of individual and collective responsibilities
towards environment.
Arrange for expert advice on all aspects of environment management.
Participate, wherever possible, with appropriate industry and Government bodies
advising on environmental legislation and interact with national and local authorities
concerned with protection of environment.
Individual Units
The overall responsibility for environment management at each unit will rest with the
Unit Head, who will ensure implementation of HUL Policy on environment at unit level.
Concerned line managers / heads of departments are responsible for environmental
performance at department levels.
In order to fulfill the requirements of the Environment Policy at each site, the Unit Head
will:
Designate a unit environment coordinator who will be responsible for co-coordinating
environmental activities at unit, collating environmental statistics and providing /
arranging for expert advice.
Agree with the Management Committee Member responsible for the unit, specific
environmental improvement objectives and targets for the unit and ensure that these are
incorporated in the annual objectives of the concerned managers and officers and are
reviewed periodically.
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Ensure that the unit complies with Unilever and HUL mandatory standards and the
relevant national and state regulations with respect to environment.
Ensure formal environmental risk assessment to identify associated environmental
aspects and take appropriate steps to control risks at acceptable levels.
Ensure that all new operations are subjected to a systematic and formal analysis to assess
environmental impact. Findings of such exercises should be implemented prior to
commencement of the activity.
Manage change in People, Technology and Facilities through a planned approach based
on training, risk assessment, pre-commissioning audits and adherence to design codes.
Regularly review environment performance of the unit against set objectives and targets
and strive for continual improvement.
Sustain a high degree of environmental awareness through regular promotional
campaigns and employee participation through training, safety committees, emergency
drills etc.
Ensure dissemination of relevant information on environment within the unit and to
outside bodies, and regularly interact with Government authorities concerned for
protection of environment.
Maintain appropriate emergency procedures consistent with available technologies to
prevent / control environmental incidents.
Provide appropriate training to all employees.
Ensure periodic audits to verify compliance with environment management systems and
personally carry out sample environment audits to check efficacy of the systems.
Report environmental statistics to HUL Corporate Safety & Environment Group on a
monthly basis.
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Research and Innovation Centers
Since most new products and processes are developed in these Units, certain additional
responsibilities devolve on them to ensure implementation of the Environment Policy of the
company. In addition to the Unit Head's responsibilities outlined above, the heads of these units
will:
Ensure that a formal and systematic risk assessment exercise is undertaken during the
process/product development stage with specific reference to environmental impact.
Transfer technology to the pilot plant and main production through a properly
documented process specification which will clearly define environmental impact and
risks associated with processes, products, raw material and finished product handling,
transport and storage.
Ensure that treatment techniques are developed for any wastes generated as a result of the
new product/process and is incorporated into the process specifications.
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QUALITY POLICY:
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to
guarantee its growth and leadership in the markets in which it operates.
The company is committed to respond creatively and competitively to the changing needs andaspirations of their consumers through relentless pursuit of technological excellence, innovation
and quality management across their businesses, and offer superior quality products and services
that are appropriate to the various price points in the market as well as to their commitment to
building shareholder value.
The company recognizes that its employees are the primary stheirce of success in its operations
and is committed to training and providing them the necessary tools and techniques as well as
empowering them to ensure broad base compliance of this policy in the organization at all levels.
The company is committed to fulfill its legal and statutory obligations and international
standards of product safety and hygiene and will not knowingly sell product that is harmful to
consumers or their belongings. It will institute systems and measures to monitor compliance in
order to meet its responsibilities to consumers. The company will maintain an open
communication channel with its consumers and customers and will carefully monitor the
feedback to continuously improve its products and services and set quality standards to fulfill
them. The company is committed to extend its quality standards to its contract manufacturers,
key suppliers and service providers and by entering into alliances with them, to jointly improve
the quality of its products and services. This policy is applicable to production from its own
facilities as well as to production that is outsourced.
The company will periodically review this quality policy for its effectiveness and consistency
with business objectives.
The company delegates authority and responsibility for dissemination and implementation of thispolicy to each Business and Unit Head.
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SAFETY AND HEALTH POLICY
Introduction
Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily
needs of consumers and customers. In doing so, the Company is committed to exhibit the highest
standards of corporate behavior towards its consumers, employees, the societies and the
environment in which we operate.
Towards this, the Company recognizes its responsibility to ensure safety and protection of health
of its employees, contractors and visitors in all its operating sites, which include manufacturing,
sales and distribution, research laboratories and offices during work and work related travel.
This Policy document defines the vision, principles, aim, required actions and scope of the policy
application as well as the responsibility for execution.
Their Vision
Their vision is to be an injury free organization.
HUL NEWS:We will bring safety on top of mind for all employees and will integrate it with all
business processes. We will realize their Vision through an Integrated Safety Management
approach, which focuses on People, Processes, Systems, Technology and Facilities, supported by
demonstrated leadership and employee commitment at all levels as the prime drivers for ensuring
a safe and healthy work environment.
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Safety Principles:
HUL's Occupational Safety and Health Policy is based on and supported by the following eight
Principles.
These Principles have the same status as the Company's Code of Business Principles:
All injuries and occupational illnesses are preventable
All operational exposures can be safeguarded
Safety evaluation of all business processes is vital
Working safely is a condition of employment
Training all employees to work safely is essential
Management audits are a must
Employee involvement is essential
All deficiencies must be reported and corrected promptly
In order to facilitate operationalisation of the Safety Principles, a separate document has been
prepared, which covers:
a) Safety Principles
b) Success Criteriac) Illustrative KPI
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Consumer satisfaction
Indira is 20 years old, a tribal woman at Kondegaon village in Bastar district. She is just back
from the nearby jungles, collecting firewood. After attending to her baby son, she will go to the
village well to take a quick wash. Yesterday her husband brought her a white soap, with pinkpetals in it. Indore had requested him to buy one, for the festival later this evening.
Indira is among millions of consumers in rural India who use Hindustan Lever's products. She
came to know about Lux through the TV set at the community centre. It is not very costly, and
also available nearby.
Home to over 700 million people, rural India comprises not only over 70% of India's billion-
strong population, but also over 12% of the world's population. The rural population already
accounts for substantial consumption of Fast Moving Consumer Goods and also consumer
durables. About 50% of the sales of soaps & detergents are generated in rural India. Similarly,
almost half the demand for black & white television sets, pressure cookers, table fans, sewing
machines also comes from there.
Cost management:
But the potential is even larger, both in terms of consumption and penetration. The fact that 70%
of the population accounts for only 50% of even relatively well-penetrated categories, like soaps
& detergents, indicates the enormous scope of consumption-led growth in these categories.
Therefore such categories will derive growth out of increased usage. In categories, which are
relatively less penetrated, like personal products, rural India offers an even bigger growth
opportunity through greater penetration and then consumption. For example only three out of 10
consumers in rural markets use shampoo or skin care products. Therefore growth in such
categories will emerge, as more consumers purchase these products, and then continue to use
them regularly.
Hindustan Lever has taken many initiatives over the decades to create markets in the ruralhinterlands. By marketing relevant products, at affordable prices.
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A unique example is Hindustan Lever's Lifebuoy soap. In rural India, health is of paramount
importance, because indisposition is very directly related to loss of income. Lifebuoy, whose
core equity is health and hygiene , has for decades now been synonymous with soap in rural
India.
At the same time, if products have to come up the order in the rural purchase hierarchy, they
have to be affordable. If rural India today accounts for about half of detergents sales, it is
because HUL has developed low-cost value-for-money branded products, like Wheel. The
company has also taken initiatives to create markets even for apparently premium products, by
offering them in pack sizes, like sachets, whose unit prices are within the reach of rural
consumers. For example, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise) today constitute
about 55% of Hindustan Lever's shampoo sales. With media reach gradually increasing, rural
consumers today, where the media has its footprints, share the same aspirations with their urban
counterparts. HUL has responded to the trend with low unit price packs of even other products -
Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent
toothpaste at Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond
Taaza tea at Rs.5.
Other marketing strategies:
For decades now, Hindustan Lever has also taken initiatives to circumvent the limitation in
communication channels, by innovatively leveraging non-conventional media. Among them are
wall paintings, cinema vans, weekly markets (haat), fairs and festivals. Given the rural
consumer's fascination for cinema, the cinema vans show popular movies, interspersed with
products advertisements. Weekly markets, fairs and festivals are parts and parcel of rural life.
They give an opportunity to address consumers, spread over many tiny hamlets, at one location.
The occasions are used to demonstrate product benefits and also sell such products. Such
demonstrations have played a significant role in creating, for example, the detergents market in
rural India. In recent times, such demonstrations are being deployed to illustrate how visible
clean is not hygienic clean, and how using soap is essential to prevent easily avoidable
infections.
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Communication through fairs and festivals are backed by direct consumer contact. For example,
in 1998-99, Hindustan Lever implemented a major direct consumer contact, called Project
Bharat, which covered 2.2 crore homes.
Each home was given a box, at a special price of Rs.15, comprising a low unit price pack of
shampoo, talcum powder, toothpaste and skin cream, along with educational leaflets and audio-
visual demonstrations. The project has helped eliminate barriers to trial, and has strengthened
salience of both particular categories and brands. Similarly in 2002, Hindustan Lever has
launched a similar large-scale direct contact, called Lifebuoy Swasthya Chetana, which already
covers 70 million people in 18,000 villages of 8 states. The project is intended at generating
awareness about good health and hygiene practices, and specifically how a simple habit of
washing hands is essential to maintaining good health. The initiative will involve interaction with
students and senior citizens, who act as change agents.
Availability of HULs Product:
Generating awareness pays dividends only when steps are taken to ensure constant availability of
products. In rural India particularly, availability determines volumes and market share, because
the consumer usually purchases what is available at the outlet, influenced very largely by the
retailer.
Therefore, over the decades, Hindustan Lever has progressively strengthened its distribution
reach in rural India, which today has about 33 lakh outlets. Direct rural distribution in Hindustan
Lever began with the coverage of villages adjacent to small towns. The company's stockiest in
these towns were made to use their infrastructure to distribute products to outlets in these
villages. But this distribution mode could only be extended to villages connected with motor able
roads, and it could cover about 25% of the rural population by 1995.
Therefore in 1998, Hindustan Lever launched Project Streamline to further extend its distribution
reach. Under this initiative, the company identifies sub-stockiest in a large village, connected by
motor able road to a small town. This sub-stockiest in turn distributes the company's products to
outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like
cycles, scooters or the age-old bullock cart. Hindustan Lever is thus trying to circumvent the
barrier of motor able roads. As a result, the distribution network, as of now, directly covers about
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50,000 villages, reaching about 250 million consumers. The company simultaneously uses the
wholesale channel, suitably incentivising them to distribute company products.
HUL has in the recent past established a common distribution system in rural areas for all its
products. Given the number of brands and their packs the rural retailer usually requires, one
HUL representative can take all the products from the company portfolio that he needs. This
common distribution system is now fully operational, under one Regional Sales Manager
exclusively dedicated to rural markets of each region of the country.
Over time, Hindustan Lever will further strengthen its rural distribution through mutually
beneficial alliances with rural Self Help Groups (SHGs). Over the last five years, financial
institutions, NGOs and government organizations are working closely to establish SHGs, whose
objective is to alleviate poverty through sustainable income-generating activities. Since 2001,
Hindustan Lever is implementing Project Shakti, whereby SHGs are being offered the option of
distributing relevant products of the company as a sustainable income-generating activity. The
model hinges on a powerful win-win relationship; the SHG engages in an activity which brings
sustainable income, while Hindustan Lever gets an interface to interact and transact with the
rural consumer. HUL's vision for Project Shakti is to scale it up across the country by 2005,
creating about 25000 Shakti entrepreneurs, covering 100,000 villages, and touching the lives of
100 million rural consumers. Begun with 50 groups in Nalgonda district of Andhra Pradesh, with
the support of local authorities, the project has been extended, as of now, to about 50,000
villages in 12 states. A typical Shakti entrepreneur conducts business of around Rs.10,000 - Rs
15,000 per month, which gives her an income of about Rs 700 - Rs.1000 per month on a
sustainable basis. As most of these women are from below the poverty line, and live in extremely
small villages (less than 2000 population), this earning is very significant, and is almost double
of their past household income. The full benefit of Project Shakti will be realised after some
years.
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HUL DISTRIBUTION NETWORK
This is the whole Distribution Chain of HUL to cover the Rural market. The company have
remarkably worked upon to make the supply chain from manufacturers to retailers simple
with very few number of mediators and jobbers. It has helped them to maintain the
transparency in the cycle and also have let them established a prompt delivery process. The
products are manufactured in the factories all across India and then is supplied from there
to the various Carriage and Forwarding (C&F) units which are 5-10 per state depending on
the area they have to cover and are established by the company. These C&F units then
supply the products to the various Wholesalers confined to their area only and according to
the wholesalers demand. The wholesalers then supply the products to the semi-wholesalers
and the retailers as per the volume of their order. Then the semi-wholesalers deliver the
products to the retailers and customers.
MANUFACTURING UNITS ALLACROSS INDIA
C&F 1
STOCKISTS
C&F 2
STOCKISTS
C&F 3
STOCKISTS
C&F 4
STOCKISTS
WHOLESALERS
RETAILERS
CUSTOMERS
C&F 5
STOCKISTS
C&F 6
STOCKISTS
C&F 7
STOCKISTS
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STAGE 1-
In this stage the products reach to the Carriage and Forwarding unit from various
manufacturing units established all across India. The volume of the delivery depends upon
the quantity required/ordered by the C&F unit. The depot sends the request of the volume
of the products to the Head Office, which then order the various factories to supply the
products to the mentioned depot. The supply is met within a week. HUL has 45 C&Fs
with 7000 stockiest and 2000+ suppliers and associates to target the market.
STAGE 2-
The C&F then supplies the products according to the demand of various wholesalers. Each
of the depot cover a region assigned to them.
Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply products everyday.
They work on the concept of advance payment by DD by the wholesalers and deposit themin the bank which is transferred to the head office.
MANUFACTURER
C&F
C&F
WHOLESALERS
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NATION WIDE MANUFACTURING:
80 factories, across India
The year was 1923. Lord Leverhulme, the legendary founder of Lever Brothers, was
visiting India. The nationalist sentiment in India was for locally manufactured products.
Lord Leverhulme, who believed that what is good for a country is equally good for the
company, responded to that aspiration because he too shared that dream.
His dream ultimately was realized in 1934. In September 1934, after more than a decade of
discussions in London and in India, a Lever factory was allowed to sprout on the land that
had been reclaimed by the Bombay Port Trust at Sewri. From here, a month later rolled out
the first cake of Sunlight soap to be manufactured in India. The same year, Lever Brothers
took over the Garden Reach Factory in Kolkata.
These two factories were the first in a manufacturing base, which today literally dots the
length and breadth of India. From Assam to Gujarat, from Uttaranchal to Kerala.
Hindustan Lever's diverse product range is today manufactured in about 80 factories. In
addition, the company outsources from 150 other units. The operations involve 2,000
suppliers and associates.
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DEVELOPING BACKWARD AREAS
Several HUL factories are situated in backward areas. The company has consciously
responded to the national policy of development of backward areas by setting up
manufacturing units in these places, which provide several direct and indirect employment
opportunities for these areas, and leads to general economic development of these regions
through industrialization. In fact, all major investments of HUL, in recent years, have been
either in A-Category backward areas or No-Industry Districts. These include factories in
Khamgaon and Yavatmal (Maharashtra), Chinaware (Madhya Pradesh), Orai, Sumerpur
and Khalilabad (Uttar Pradesh), Haldia (West Bengal), Silvas (Dadra & Nagar Haveli),
Pondicherry, Goa, Doom Dooma (Assam), Hardwar (Uttaranchal) and Barotiwala(Himachal Pradesh). Since 2001 itself, HUL has set up nine new factories in backward
areas.
Equally, HUL has an enviable track record in taking over sick enterprises, in response to
requests from Government, and converting them into viable operations. The company's
units at Mangalore and Rajpura all bear testimony to this achievement. In the process, HUL
has saved precious jobs and developed local economies. HUL's manufacturing facilities,
like the Khamgaon soap plant and the Sumerpur detergent bar unit, are recognized asamong the best in the Unilever world.
HUL has adopted Total Productive Maintenance (TPM) for achieving manufacturing
excellence since 1994. As on date, TPM is in different stages of implementation in 28
factories. Four HUL factories have already received the TPM Consistency Award, and 14
factories have been awarded with the TPM Excellence Award.
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Marketing needs every where
How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy soap and Mrs. Kulkarni
in Jammu gets to know how Bru coffee tastes even before she has bought it? Well, you need to
have a cutting edge distribution network in place.
Hindustan Lever's distribution network is recognised as one of its key strengths. Its focus is not
only to enable easy access to our brands, but also to touch consumers with a three-way
convergence - of product availability, brand communication, and higher levels of brand
experience.
HUL's products, manufactured across the country, are distributed through a network of about
7,000 redistribution stockiest covering about one million retail outlets. The distribution network
directly covers the entire urban population.
The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores.
Hindustan Lever services each with a tailor-made mix of services. The emphasis is equally on
using stores for direct contact with consumers, as much as is possible through in-store
facilitators.
AT THE SUPERMARKETS
Self-service stores and supermarkets are fast emerging in metros and large towns. To service
modern retailing outlets in the metros, HUL has set up a full-scale sales organization, exclusively
for this channel. The business system delivers excellent customer service, while driving growth
for the company and the store. At the same time, innovative marketing initiatives are taken to
provide consumers with experience of our brands at the store itself, through product tests and in-storesampling.
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In the villages
HUL has also revamped its sales organization in the rural markets to fully meet the emerging
needs and increased purchasing power of the rural population. The company has brought all
markets with populations of below 50,000 under one rural sales organization. The team
comprises an exclusive sales force and exclusive redistribution stockiest, under the charge of
dedicated managers. The team focuses on building superior availability, while enabling brand
building in the deepest interiors. HUL's distribution network in rural India already directly
covers about 50,000 villages, reaching about 250 million consumers, through about 6000 sub-
stockiest.
Harnessing Information Technology
An IT-powered system has been implemented to supply stocks to redistribution stockiest on a
continuous replenishment basis. The objective is to catalyse HUL's growth by ensuring that the
right product is available at the right place in right quantities, in the most cost-effective manner.
For this, stockiest have been connected with the company through an Internet-based network,
called RSNet, for online interaction on orders, despatches, information sharing and monitoring.
RS Net covers about 80% of the company's turnover. Today, the sales system gets to know every
day what HUL stockists have sold to almost a million outlets across the country. RS Net is part
of Project Leap, HUL's end-to-end supply chain, which also includes a back-end system
connecting suppliers, all company sites and stretching right upto stockists.
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SHAKTI - Changing Lives in Rural India
Shakti is HUL's rural initiative, which targets small villages with population of less than 2000
people or less. It seeks to empower underprivileged rural women by providing income-
generating opportunities, health and hygiene education through the Shakti Vani programme, and
creating access to relevant information through the iShakti community portal.
In general, rural women in India are underprivileged and need a sustainable source of income.
NGOs, governmental bodies and other institutions have been working to improve the status of
rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in
Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides
critically needed additional income to these women and their families, by equipping and training
them to become an extended arm of the company's operation.
Started in 2001, Shakti has already been extended to about 80,000 villages in 15 states - Andhra
Pradesh, Karnataka, Tamilnadu, Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar
Pradesh, Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand. The respective
state governments and several NGOs are actively involved in the initiative.
Shakti already has about 25,000 women entrepreneurs in its fold. A typical Shakti entrepreneur
earns a sustainable income of about Rs.700 -Rs.1,000 per month, which is double their average
household income. Shakti is thus creating opportunities for rural women to live in improved
conditions and with dignity, while improving the overall standard of living in their families. In
addition, it involves health and hygiene programmes, which help to improve the standard of
living of the rural community. Shakti's ambit already covers about 15 million rural population.
Plans are also being drawn up to bring in partners involved in agriculture, health, insurance and
education to catalyze overall rural development.HUL's vision for Shakti is to scale it up across
the country, covering 100,000 villages and touching the lives of 100 million rural consumers by
2005. Shakti Vani is a social communication programme. Women, trained in health and hygiene
issues, address village communities through meetings at schools, village baithaks, SHG meetings
and other social fora. In 204, Shakti Vani has covered 10,000 villages in Madhya Pradesh,
Chattisgarh and Karnataka. The vision is to cover 80,000 villages in 2005.
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IShakti, the Internet-based rural information service, has been launched in Andhra Pradesh, in
association with the Andhra Pradesh Government's Rajiv Internet Village Programme. The
service is now available in Nalgonda, Vishakapatnam, West Godavari and East Godavari
districts. 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
employment and women's empowerment. The vision is to have 3,500 kiosks across the state by
2005.
Pioneering New Channels
Hindustan Lever is simultaneously creating new channels, designed on the same principle of
holistic contact with consumers.
Project Shakti, HUL's partnership with Self Help Groups of rural women, is becoming an
extended arm of the company's operation in rural hinterlands. Started in 2001, Project Shakti has
already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka,
Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan,
Maharashtra and West Bengal. The respective state governments and several NGOs are actively
involved in the initiative. The SHGs have chosen to partner with HUL as a business venture,armed with training from HUL and support from government agencies concerned and NGOs.
Hindustan Lever Network (HLN) is the company's arm in the Direct Selling channel, one of the
fastest growing in India today. It already has about 3.5 lakh consultants - all independent
entrepreneurs, trained and guided by HLN's expert managers. HLN has already spread to over
1500 towns and cities, covering 80% of the urban population, backed by 42 offices and 240
service centres across the country. It presents a range of customised offerings in Home &
Personal Care and Foods.
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Out-of-Home consumption of products and services is a growing opportunity in India, as
elsewhere in the world. Hindustan Lever is already the largest player in the hot beverages out-of-
home segment, with over 15000 tea and coffee vending points.The company is expanding the
network aggressively, in the education, entertainment, leisure and travel segments. HUL's
allaince with Pepsi will significantly strengthen this channel. Health & Beauty Services are
Hindustan Lever's simultaneous foray to meet the increasing consumer need for such products
and services. Lakme Salons provide specialised beauty services and solutions, under the
recognised authority of the Lakme brand. The Ayush Therapy Centres provide easy access to
authentic Ayurvedic treatments and products.
Hindustan Lever, which once pioneered distribution in India, is today reinventing distribution -
creating new channels, and redefining the way current channels are serviced. In the process it isconverging product availability, with brand communication and brand experience.
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NOVEL PRODUCT NEW PROCESS
Hindustan Lever's mission is to meet everyday needs for nutrition, hygiene, and personal care,
with brands that help people feel good, look good and get more out of life. HUL's research &
development base, one of the largest in Indian industry, helps achieve this mission, with novel
products and new processes. The company has over 380 patents, demonstrating its leading edge
in consumer-relevant R&D.
The Hindustan Lever Research Centre (HLRC), with facilities in Mumbai and Bangalore, and
global technology centers in India have over 200 highly qualified scientists and technologists,
many with post-doctoral experience acquired in the US and Europe. Set up in 1958, HLRC's aim
is to develop new products and processes, improving benefits and quality of existing products,
and optimal use of resources.
Major innovations have taken place, down the decades, in every category in which HUL is
present. From Home Care to Personal care, Beverages to Foods.
Better cleaning, lesser water consumption
Consider for example, HUL's development of a water-saving technology for its detergents. One
of the most severe problems that India faces today is shortage of water. Water scarcity affects
one in every three Indians. In a typical Indian home, at least 20% of the water consumed goes
behind washing of clothes. HUL decided that it would be of immense benefit to an Indian
household, if a technology could be developed, which would help reduce water consumed in
washing of clothes. HUL's scientists have innovated a path-breaking technology - it reduces
water consumption and time taken for rinsing by 50%. The technology has already been
introduced.
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World's most advanced water purifier
People in cities and towns spend enormous amounts, either in fuel or devices, to ensure safe
drinking water. HUL's scientists have developed a breakthrough device, called "Pureit", which
purifies water as safe as boiled water, providing 100% protection from all water-borne diseases;
it also removes pesticides that may be present in drinking water. Its operation does not require
electricity, running tap water and plumbing or expensive maintenance. It thus provides water at a
cost of just Re.1 for every six litres - or less than 20 paise a litre.
Iodine in Salt - the vital ingredient
Iodine, it is well-known, is important for the mental development of young children. Iodised salt
is a well-accepted mode of ensuring appropriate iodine intake. Yet Iodine added to salt is lost intransport, storage as well as in the process of cooking. HUL scientists have developed a patented
breakthrough technology to stabilise iodine in salt, following work on the stability of iodine
under Indian conditions of storage and cooking. The technology has made it possible to actually
realise the purpose of iodised salt - that people get appropriate iodine intake through the food
they eat.
Technology of skin lightening
Research in the biology of skin pigmentation has led to the formulation of a product like Fair &
Lovely Skin Cream and Lotion. The product has been periodically updated through new patented
actives. It has now become a global success through exports to over 30 countries. The product is
equally used by the local population of these countries, apart from those of Indian origin.
HUL has equally developed new processes.
In-house machine development
The company has the capability to design and manufacture machines in-house. This enables the
company to set up plants at half the cost of others. Such technological developments have also
led to significant improvement in productivity.
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ENERGY CONSERVATION
In the past, one of the most significant breakthroughs of HUL's research initiative has been the
development of a technology to use non-conventional forest seed oils for soap-making which,
since the 1970s, has helped save around $1.2 billion in foreign exchange. HUL had received the
Government of India's prestigious award for import substitution. Development of Structuring
Technology for soap manufacturing also helped save costly conventional oils without any
compromise on product performance and quality. The latest technology to produce Distilled
Fatty Acid for soap making and the resultant plant capacity expansion has drastically brought
down specific energy consumption while improving distillation yields. The evolution of
continuous soap processing technology has also reduced energy consumption.
HUL believes that technology is critical to delight consumers. Creative application of technology
has made Hindustan Lever successful in launching products and services, which raise the quality
of life.
HELPING HANDS:
HUL COMMITS Rs. 8 CRORES FOR IMMEDIATE RELIEF, REHABILITATION TO
TSUNAMI-HIT COMMUNITIES
MUMBAI, January 7, 2005: Hindustan Unilever Limited (HUL) today announced to commit, a
total outlay of Rs.8 crores for immediate relief and helping people to rehabilitate themselves so
that they can resume their livelihood, in the tsunami-hit areas of Pondicherry, Tamil Nadu and
Kerala. Of this, Rs.5 crores (absolute value terms) is being utilized for distribution of the
Company's nutritional & personal hygiene products for immediate relief to the needy. Another
Rs.3 crores will be raised partly by contributions from company employees and the balance
contribution from the Company to be used in collaboration with NGOs working with the
community to provide the people, notably fishermen, with means of livelihood and help them
back on their feet.Since December 26, employees of HUL factories and offices in Pondicherry,
Tamil Nadu and Kerala have been providing necessary relief to the tsunami-hit people.
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The relief operations include distribution of bread and biscuits to over 2000 families in
Pondicherry, 12,000 cooked meals for families in Chennai, Nagapattinam, Cuddalore and
Andamans. Over 12,000 dry relief packs, comprising of Company's dry rations and personal
hygiene products have already been distributed.HUL's employees are donating a day's salary,
matched equally by the Company for exclusive use in rehabilitation.
The biggest concern is, that people/ fishermen have lost their means of livelihood. HUL plans to
focus its rehabilitation efforts to restore their means of livelihood so that the local communities
can quickly get back to their lives at the earliest.HUL has always been a front runner in its call
for national duty and caring for the community. Its employees not only donate generously, but
volunteer to take part in relief operations by committing their time and physical effort. This is in
line with our corporate value of care and our CSR mission which has become an integral partin our way of doing business.
Earlier during the Gujarat earthquake, HUL had adopted and reconstructed a new village,
Yashodadham, in Bhachau Taluka of Kutch district. Yashodadham, spread over 25 acres,
comprises 289 homes, school building, an exclusive playground for children and a multi-purpose
community centre, including an anganwadi (creche), health centre, community room and
panchayat office, an underground reservoir and an overhead tank for water. All the dwelling
units have electricity, and piped water and are now fully occupied.
HUL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of
three Indians. HULs mission is to add vitality to life" through its presence in over 20 distinct
categories in Home & Personal Care Products and Foods & Beverages. The company meets
everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good,
look good and get more out of life.
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SPECIAL EDUCATION & REHABILITATION
Under the Happy Homes initiative, HUL supports special education and rehabilitation of
children with challenges.
ASHA DAAN:
The initiative began in 1976, when HUL supported Mother Teresa and the Missionaries of
Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged children, and the
destitute. Subsequently, Asha Daan has also become a home to the HIV-positive. The objective
in supporting Asha Daan was and continues to be to share the organsation's prosperity in
supporting the Mother's mission of serving the "poorest of the poor". Asha Daan has been set up
on a 72,500-square feet plot belonging to HUL, in the heart of Mumbai city. HUL bears the
capital and revenue expenses for maintenance, upkeep and security of the premises. The destitute
and the HIV-positive are provided with food, shelter and medication for the last few days of their
lives. The needs of the abandoned challenged children are also met through special classes of
basic skills, physiotherapy and, if possible, corrective surgery. At any point of time, it takes care
of over 300 infants, destitute men and women and HIV-positive patients.
Over the years, HUL has opened schools for challenged children with a sharper objective of
supporting families of such children, helping the children become self-reliant by learning
appropriate skills to be productive members of the household.
ANKUR:
In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special education of
challenged children. The centre takes care of children with challenges, aged between 5 and 15
years. Ankur provides educational, vocational and recreational activities to over 35 children with
a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral
palsy and severe learning difficulties. These physically and mentally challenged children are
taught skills, such as cookery, painting, embroidery, bamboo crafts, weaving, stitching, etc
depending on their aptitudes.
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The centre has rehabilitated 10 children, including self-employment for 6 children by providing
them with shops, and 3 girls have been provided employment as creche attendants. It has also
moved to normal schools 18 children. Since inception it has covered about 80 children.
KAPPAGAM:
Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of
challenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children.
The focus of Kappagam is the same as that of Ankur. The centre has 17 children, being taught
self-help skills, useful vocational activities like making of paper covers, greeting cards, wrapping
papers, fancy stationery, napkins, brooms made out of coconut leaves, candles, and also some
home care products. About 12 of the children have become relatively self-reliant by earningthrough crafts learnt at the centre. Since inception, it has covered about 28 children.
ANBAGAM:
Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the
South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are
being taught skills such that they can become self-reliant and elementary studies.
Over 20,000 individuals have benefitted from the Happy Homes initiatives since inception. HUL
is wholeheartedly involved with all four centres and will continue to be involved in the future.
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HINDUSTAN UNILEVER LIMITED DECEMBER QUARTER 2005 RESULTS
Total Sales grow by 14.4%; FMCG Sales growth at 15.8%
HPC and Foods grow by 17% and 9% respectively; Broad based growth across
categories
PBIT grows 13.5%; Net Profit increases by 56%
EPS for 2005 grows 17.6%; Final Dividend Rs 2.50 per share of Re 1/- each; Total
Dividend Rs 5.00 per share for 2005
Mumbai, February 14, 2006: Hindustan Unilever Limited (HUL) announced its results forDecember Quarter 2005. Growth momentum achieved in the last three quarters has been
sustained with total sales growing by 14.4%. Domestic FMCG sales were higher by 15.8% with
both Home and Personal Care (HPC) and Foods performing well.
HPC business grew by 17.3% driven by strong performance in all categories. Significant sales
growth was achieved in the highly competitive categories of Laundry and Shampoo. Soaps
recorded good growth, with Lux growing handsomely reflecting in market share gains. All the
brands in Skin category maintained their strong performance leading to a double digit growth for
the category. Consumer relevant innovations continue to drive off-take and key innovations
during the quarter include the re-launch of Thick and Strong Sunsilk Pink, Lux variants for
the 75-year celebrations, and the national launch of Jasmine Fresh Rin Advanced Powder.
In Foods business, Tea achieved a modest growth despite a declining market and falling
commodity prices; Coffee continued to perform well. Processed Foods business grew strongly,
albeit on a low base. The Icecream business also achieved a 33% increase in sales, led by the
impulse category. Relaunch of Knorr soup with a superior mix and introduction of new variants
was the key Foods innovation during the quarter.
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Profit before Interest and Taxes (PBIT) increased by 13.5% after absorbing a 50% higher spend
in Advertising and Promotions. Higher crude oil price led cost pressures continued, particularly
in Laundry category, but were mitigated by aggressive cost effectiveness programs. Profit after
tax (PAT) grew by 22.7% due to a lower effective tax rate and Net profit, including the impact of
exceptional items was higher by 56%.
For full year 2005, total sales were 11.4% higher than in the previous year, with broad based
growth across categories leading to both HPC and Foods businesses growing by 14% and 8%,
respectively. Judicious price increases coupled with robust cost saving initiatives partly
neutralised the impact of both cost escalations, particularly in the Laundry category, and the
higher investments behind brands. Consequently, PBIT increased by 1.1%. A lower tax charge
for the year resulted in a PAT growth of 12.9%. Net Profit and Earnings Per Share at Rs 6.40,
grew by 17.6%.
Mr Harish Manwani, Chairman commented: We have sustained the growth momentum in
December quarter and it continues to be broad based across HPC and Foods categories,
particularly, in the competitive categories of Laundry and Shampoo. This was driven by higher
investment behind our brands with exciting innovations, excellent activation, new initiatives in
Customer Management and with significantly higher levels of A&P spends. The double digit
sales growth of over 11% for the year 2005 has been achieved after a gap of six years.
Our strategic priority remains unchanged. We will continue to leverage our focused portfolio of
powerful brands to sustain market leadership and grow our market position across strategic
brands and categories. In a competitive landscape, we shall continue to deliver consumer value
and invest behind our brands. We recognize the challenge of inflationary cost pressures driven
by crude oil prices and, in the competitive context, achieving cost leadership across the extended
supply chain continues to be a key priority.
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DIVIDEND
The Board of Directors at their meeting held on February 14 th, 2006 has proposed a final
dividend of Rs 2.50 per share of Re 1 each, subject to the approval of the shareholders at the
annual general meeting. This along with the interim dividend of Rs 2.50 per share amounts to atotal dividend of Rs 5.00 per share for the year 2005.
HUL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of
three Indians. HULs mission is to add vitality to life through its presence in over 20 distinct
categories in Home & Personal Care Products and Foods & Beverages. The company meets
everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good,
look good and get more out of life.
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HUL TRANSFERS TEA ESTATES INDIA TO MAXWELL GOLDEN TEA PRIVATE
LIMITED
Mumbai, March 01, 2006: Hindustan Unilever Limited (HUL) has transferred its entire
shareholding in its 100% subsidiary Tea Estates India Limited (TEIL) to Maxwell Golden Tea
Private Limited (MGT), a Woodbriar Group company on March 1, 2006. TEIL owns 8 tea
estates and 6 factories for processing tea in the high-yielding belt of Tamilnadu with an average
annual output of approx. 10,500 metric tons.
Woodbriar Group has interests in plantations, insurance services and real estate. The Groups
gardens are spread across the premium tea growing regions in Tamilnadu and Kerala. HUL
management believes that the proposed transfer to Woodbriar Group is in the best interest of the
tea plantation business and all its stakeholders. Existing terms and conditions of services of all
TEIL employees will be fully protected in accordance with applicable laws and terms of their
employment.
The acquisition of TEIL by Woodbriar Group will provide scale and bring in synergy benefits to
Woodbriar Group, as a large portion of TEIL gardens are contiguous to the existing tea gardens
of Woodbriar Group. Canara Bank, Madurai Circle has funded the debt component to Woodbriar
Group for this acquisition.
With this disposal of shareholding in TEIL, HUL has completed its exit from its tea plantations
business both in South India and Assam. It may be recalled that HUL had sold its interests in
Rossell Industries Limited and Doom Dooma Tea Company Limited in Assam during the last 12
months.
DSP Merrill Lynch Limited acted as financial advisor to Hindustan Unilever Limited .
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About HUL:
HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of
three Indians. HUL's mission is to "add vitality to life" through its presence in over 20 distinct
categories in Home & Personal Care Products and Foods & Beverages. The company meetseveryday needs for nutrition, hygiene, and personal care, with brands that help people feel good,
look good and get more out of life. For more information visit www.HUL.com
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COMPETITORS
THE PROCTER & GAMBLE COMPANY COMPANY PROFILE
The Procter & Gamble Company (P&G) is a brand behemoth. The world's #1 maker of
household products courts market share and billion-dollar brands. P&G's products fall into three
categories: global beauty care; global health, baby, and family care; and global household care. It
also makes pet food and water filters and produces soap operas (As the World Turns). More than
20 of P&G's brands are billion-dollar sellers (including Actonel, Always/Whisper, Bounty,
Charmin, Crest, Downy/Lenor, Folgers, Iams, Olay, Pampers, Pantene, Pringles, Tide, and
Wella). Acquisitive P&G bought Clairol in 2001 and a majority of Wella in 2003. Its purchase of
Gillette in late 2005 was its biggest buy in company history.
Financial Highlights
Fiscal Year End: June
Revenue (2005): 56741.00 M
Revenue Growth (1 yr): 10.40%
Employees (2005): 110,000
Employee Growth (1 yr): 0.00%
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RESEARCH METHODOLOGY
The section includes the overall research design, the sampling procedure, the data collection
method, the field method, and analysis and procedure.
RESEARCH DESIGN
For this research project exploratory method is using
DATA COLLECTION METHOD
The data collect for the research can be classified as primary data and secondary data. Primary
data is by visiting existing customer and expected customer of Hindustan Unilever Limited and
making them fill up the questionnaire. Secondary data is from internet, books, magazine etc.
RESEARCH INSTRUMENT
The instrument use for data collection is structured questionnaire. Question is open and close
ended depending upon the information that needed to be elicited. I am also using the scaling
technique to assess the attitude of the customer.
SAMPLING PLAN
Keeping all the constrains in mind a sample size of 100 people .The sampling procedure issystematic sampling
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SCOPE
The Indian FMCG market currently appears to be at a crossroads, and HUL are attempting to
change customer perceptions of their brands and where specific buying motivations appear to be
replacing generalities.
This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety,
not necessarily in that order, before finalising a purchase. Its smarter to think about emotions
and attitudes, if marketers are to do a better job of marrying what a HUL offers to the
consumers image of the offerings. Another important outcome of the research is the
believability of the claims. Most of the claims are realistic and easy to understand. Most of the
people dont understand the quality claims by HUL.
The mindset of the Indian consumer is such that he is delighted