A Presentation On: Hindustan Unilever Limited

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A Presentation on

HINDUSTAN UNILEVER LIMITED


BY -:

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

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, 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.

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

VISION STATEMENT
The four pillars

1.
2.

Create a better future everyday


Help people feel good, look good & get more out of life with brands & services that are good for them & for others Inspire people to take small everyday actions that can add up to a big difference for the world Develop new ways of doing business that double the size of the company while reducing environmental impact

3. 4.

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 get more out of life Total commitment to exceptional standards of performance and productivity

PURPOSE
Always working with integrity

Creating positive impact


Continuous commitment Setting out our aspirations

Working with others

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 and distributers through IT YOY increase in growth, EPS and dividend

Very high returns e.g. ROA, ROC and RON

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

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

THREATS
Huge players both Domestic & International Inflation is reducing buying power Price rise Stiff competition with ITC Counterfeit products in rural areas

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

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