EXECUTIVE SUMMARY

Hindustan Unilever Limited (HUL ) is India ’s 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 country ’s 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.
 HISTORY

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 lik 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 . The rest of the shareholding is distributed among
about 380 ,000 individual shareholders and financial
institutions.

The erstwhile Brooke Bond's presence in India dates back to

1900. 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 . Unilever acquired Lipton in 1972 , and in
1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947.
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 to
the 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 . Subsequentl 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 has also 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 1990 s 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 fund
investments required for aggressively building new
categories.
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 Centres 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 organisation 's 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.

Over the last three years the company has embarked on an

ambitious programme , 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 programme now covers about 50,000
villages in 12 states . HUL's vision is to take this programme
to 100,000 villages impacting the lives of over a 100 million
rural Indians.
HUL is also running a rural health programme – Lifebuoy
Swasthya Chetana . The programme 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.
 HISTORY OF HUL

 1888- Lever brothers came to India Sunlight soap introduced in India.

 1895-Lifebuoy soap launched.

 1905-Lux soap introduced in India.

 1913-Vim scouring powder introduced.

1930-Unilever is formed on January 1stthrough merger of Lever

Brother and Margarine Unite.

 1931-Company registered on November 27th; Sewri factory site bought.

 1932-Hindustan Vanaspati Manufacturing Vanaspati manufacture starts

at Sewri  1947- Pond’s Cold Cream launched.

 1959-surf launched.

 1969-RIN bar launched; Braun coffee launched.

 1971-Climic shampoo launched.

 1978-Fair & Lovely skin cream launched.

 1993-The erstwhile Brooke Bond India acquires the kissan brand from
the United Breweries Group, giving HLL an entry into the foods business.

 1994-Tata oil Mills Company merges with HLL, the largest merger
in Indian corporate history.

 1994-Brooke Bound India and Lipton India merged to form Brooke

Bond Lipton India Limited.

 1995-Kissan Annapurna salt is launched.

 1996-Brooke Bond Lipton India Limited merges with HLL.

 1996-Lakme Lever Limited, a joint venture with Lakme limitedis formed

  1998-pond’s India limited merges with HLL.

 1998-HLL acquires 100% shareholding of Lakme in Lakme lever limited.

 2001-HLL identifies 35 ‘power’ brands form a total of 110 brands, to be Be pushed

for higher growth.

 2002-Modern becomes a wholly owned subsidiary of HLL.

 2007-Name formally changed to Hindustan Unilever Limited.

17th October 2008-HUL Completed 75 years of corporate existence in India.

 October 2013-Mr.Sanjiv Mehta (53) joined the Board of the Company.  October

17th –HUL Completed 80 years.

PRODUCT DECISION

INTRODUCTION

Marketing starts with the product since it is what an organization has to offer its target market.
The product offering , the heart of a firm’s entire marketing effort , is usually the starting point in
creating a marketing mix . A marketing manager cannot determine a price , design a promotion
strategy , or create a distribution channel until the firm has a product to sell . Moreover , an
excellent distribution channel , a persuasive promotion campaign and a fair price have no value if
they are associated with a poor or inadequate product offering . An organization attempts to
provide solutions to a target market ’s problems . These solutions include tangible or intangible (
or both ) product offerings marketed by an organization.
Product decisions need to be made after researching the target market and with the needs of
that market in mind . Questions like , “What does the customer want and need ?” and “How will
the customer use it?” are examples of the answers required to make good product decisions . “
What does it look like ?” and “How will it be unique ?” are some other great questions . The
market manager is going to have to make decisions about things like: quality, design, sizes,
warranties, returns, brand name, features, functionality, colour, safety, repairs, support, styling,
accessories and much more.These are not static decisions because every product is subject to the
product life cycle that includes introduction, growth, maturity and decline stages that will require
modifications to the product decisions to remain competitive and optimize profitability at
each stage.

Product is one which has the capacity to satisfy our wants /needs . A product is the item
offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.
Every product is made at a cost and each is sold at a price . Each product has a useful life after
which it needs replacement , and a life cycle after which it has to be re-invented. In marketing , a
product is anything that can be offered to a market that might satisfy a want or need. In retailing ,
products are called merchandise . In manufacturing , products are bought as raw materials and
sold as finished goods . One can say a product is a good , service , or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers and is received in exchange for money
or some other unit of value.

Definitions of Product :
1. Philip Kotler:
“Product is anything that can be offered to someone to satisfy a need or a want.”
2. William Stanton:
“Product is complex of tangible and intangible attributes, including packaging, colour,
price, prestige, and services, that satisfy needs and wants of people.”
3. W. Alderson:
“Product is a bundle of utilities, consisting of various product features and
accompanying services.” 4. We can also define the term as:
Product is a vehicle or medium that delivers service to customers.

TYPES OF PRODUCT

The products are classified into two major groups namely Consumer Goods and
Industrial Goods.

(1) CONSUMER GOODS

Products which are for direct consumption or which require no further processing are
known as consumer goods . Alternatively called final goods , consumer goods are the end result
of production and manufacturing and are what a consumer will see on the store shelf. Clothing ,
food, automobiles and jewellery are all examples of consumer goods. Basic materials such as
copper are not considered consumer goods because they must be transformed into usable
products . So it can be said that the Consumer goods are goods that are ultimately consumed
rather than used in the production of another good.
Consumer products can be further classified into following categories.
A. ON THE BASIS OF DURABILITY
(i) Durable Products
(a) The goods which are used for a longer period of time are known as durable goods. These
goods are generally of high price and require after sale service and promotion tools for sale.
examples:Teleyismn, refrigerator, fans, cars, etc.

(ii) Non-Durable Products

Goods which are consumed in short period of time are called non-durable goods . These
products are generally sold at low price and with fewer profit margins.Non durable goods have
short life. They must be consumed within short time after they are manufactured . Example :
milk , cheese , vegetables , etc . Most non -durable goods are expected to be consumed or used
in three years or less.
(iii) Services
Services refer to benefits or satisfactions which are offered for sale.
Main features of services:
1. Sendees are intangible in nature.
2. It is inseparable from its source.
3. It cannot be stored.
4. These are heterogeneous in nature i.e., services are highly variable as the quality
and type of service vary from person to person who performs it.
B. CLASSIFICATION BASED ON CONSUMER BUYING BEHAVIOUR AND
ATTITUDE
Under this classification there are three types of goods:
(i) Convenient Goods
The items which are bought frequently , immediately and with minimum shopping efforts
are convenience goods . These include candy , ice -cream , cold drinks , cigarettes , magazines ,
medicines , salt, match box, bread etc. The shops which keep the convenience goods are called
convenience stores. Often convenient goods are non - durable goods.

Features of Convenient Goods

1. These can be purchased with minimum shopping efforts.
2. These products have regular and continuous demand.
3. These units are generally of low prices.
4. These have standardised price,
5. There is high competition in these goods.
6. Sales promotion incentives are generally used to increase the sale of these products.
(ii) Shopping Goods
Shopping is the activity of examination and selection of the goods or services from retailers
with the intent to purchase at that time . Shopping goods are those goods which are
purchased by the consumer only after comparing quality, price, suitability and style such
as furniture , shoes, readymade garments , etc. So these goods or services are bought after
some shopping efforts i.e., search or comparison of goods. Most of the shopping goods are
durable goods.

Features of Shopping Goods

1. These are generally durable goods.
2. Prices of such goods are generally high.
3. Customers generally compare these goods and then buy such goods.
4. Retailers play an important role in selling shopping goods.
5. People plan the buying of such goods.
(iii) Speciality Goods
Speciality Goods have unique characteristics for which a significant group of buyers are
habitually willing to make a special purchasing effort . These goods are of higher value (
costly) and are not purchased frequently. Example: air conditioners, refrigerators, TV, Cars,
etc. These are the goods of unique nature and hold special importance for customers. These
can be low priced or high priced for example , designerclothes , and cars such as Mercedes
etc. The rare arts collections , antiques , prestige brands , style goods , automobiles etc. are
some other examples of goods and the particular hotel, restaurant, hair salon, spa & resorts
are examples of services. The comparison factor is absent in specialty goods.
Features of Speciality Goods
1. Demands for such products are limited.
2. These products are of high price.
3. These products are available at few selected places only.
4. These products are sold as a result of aggressive promotion techniques.
5. After sale service is very important in these products.

(2) INDUSTRIAL GOODS

Industrial goods are those goods which are used by the manufacturers for further
production of goods . Some examples are Machinery , manufacturing plants , materials , and
other goods or component parts for use or consumption by other industries or firms .
Demand for industrial goods is usually based on the demand for consumer goods they help
to produce (called derived demand). They are classified as (1) Production goods, that enter
the production of a final product, such as the raw materials and component parts, or (2)
Support goods, that assist in the production process, such as fixed equipment and machinery,
instruments, jigs, tools, etc.
Industrial goods may be classified as -
1. Raw materials : Raw materials include products which require processing
Example: cotton, steel, class.
2. Equipments : Equipments include installations such as boilers , lathes ,
accessory equipmentssuch as welding equipment, tools, etc.
 3. Fabricated Materials : They are part of finished goods and are directly
used in the manufactured goods like batteries, spark plugs, types etc.
4. Operating supplies : These supplies are essential to the business
operations such as fuel, oil, coal, lubricants, etc.

Features of Industrial Products

1. Numbers of buyers of industrial products are limited as compared to
consumer products.
2. Shorter channel of distribution is used for sale of industrial products as
there are limited buyers.
3. Generally the demand for industrial products is not scattered but is concentrated
at a fixed geographical location.
4. Industrial products are demanded to produce consumer products that is why it is
called derived demand , as demand of sugarcane depends upon the demand of
sugar in the . country.
5. Industrial products are produced as a result of complex process so there is more '
technical consideration of these products.
6. Some industries buy product from a company with intention of selling the
finished goods to the same company. For example the Maruti Co. may buy tyres
from MRF Company and tyre Company may in turn buy car from Maruti Co.
7. Nowadays instead of buying , industrialists prefer to take fixed assets on lease,
because of high prices of these products.

PRODUCT LINE
Product line is a group of related products manufactured by a single company . It is a
products that are closely related to each other by function , customer group,
price range. They are closely related because they function in a similar way, are sold to the
same consumer groups , are marketed through the same type of outlet or fall within given
price range . For example , a cosmetic company 's makeup product line might include
foundation , concealer , powder, blush, eyeliner, eyeshadow , mascara and lipstick products
that are all closely related. A product line is typically managed by a product line manager ,
who may supervise several product managers who are responsible for individual products in
the line. Product line managers usually have the responsibility of determining whether the
product line should expand and whether products should be removed from the line. They will
also analyze the effects of the product expansion or contraction on the profitability of other
products in the line . One company can offer more than one product Jine . This helps to
enhance the business by adding items to the product line which is already established . As
people are already familiar with the brand and there are more chances of a purchase.

Characteristics
1. Product line consists of closely related items.
2. There is difference in the price of items.
 i

3. The purpose of offering similar items in each of the product line may be toattract
customers by offering varieties of goods to them.
4. The product items in the product line have more or less same utility.
5. They are sold to same consumer group.
6. They can be manufactured using same technology.
7. The product items are distributed through the same distribution channels. Product
items are various varieties offered within the product line, which are similar in one or
other ways.

PRODUCT MIX
Product mix consists of various decisions related to product . Product is the basic
element of marketing mix because all other elements are required only when there is
product . Product mix , also known as product assortment , refers to the total number of
product lines that a company offers to its customers. Here, product includes both goods and
services . Marketer can satisfy needs and wants of consumers by product . Product is the
vehicle, medium, or means by which consumers can satisfy their needs. For example a small
company may sell multiple lines of products . Sometimes , these product lines are fairly
similar , such as dish washing liquid and bar soap , which are used for cleaning and use
similar technologies. Other times, the product lines are vastly different, such as diapers and
razors. The four dimensions to a company 's product mix include width, length, depth and
consistency.
Product mix concerns with following decisions:
1. Development and introduction of new products.
2. Matching the products with needs and wants of target consumers.
3. Modifications (in term of qualities , features , and performance ) on existing
products.
4. * Product-related strategies including branding, packaging, labeling, colour,
weight, grading, etc.
5. Product line decisions including different varieties or models , and product mix
decisions including width , depth , length , and consistency .
6. Product -related services like after -sales services , home delivery , guarantee ,
warrantee, and demonstration.
7. Study of competitive (or comparative) advantages of products.
8. Product life cycle, relevant strategies for each of the stages of product life cycle,
and consumer adoption process.
1. Product Design : The marketing decisions start with designing the product .
Products have to be designed i.e. planning of the form , colour , appearance so
as to enhance their utility, attractiveness , safety and ultimately increasing their
sales volume.
2. Product Package : Package is the containing or wrapper used to cover the product .
Deciding about the product package is important because it protects the products, provides
convinience to the customers, increases economy and is also a source of communication to
the consumers regarding the product.
 3. Product quality : Certain standards or grades of quality are established for the
product. These standards are set in terms of colour, texture, weight, size, appearance and
other physical features of the product.
4. Product labeling : A label means a strip/piece of paper giving detail fixed on a thing.
Label is a paper or plastic piece that gives detail about name , use , instruction , cant
features of the product, the process of deciding the label for the product is called labelling .
Labels are fixed to the product to identify them from other products and to describe their
ingredients, quality, quality and other characteristics.
5* Product branding : A brand is a name, symbol or sign by which a product can be
distinguished from other products available in the market . Examples : Colgate
toothpaste, close up, are all different brands of toothpastes.
6. Product Related Decisions : Addition , Diversification , simplification are important
decisions of marketing to decide whether a new line of product has to be added (known as
product addition ), whether the product line has to be changed entirely (diversity the
business ) or whether a firm has to delete a line of product which is not profitable for the
business (Simplification of the product).
7. Product Related services : It includes after sale services , home delivery ,
guarantee, warrant and demonstration.
8. Study of competition : It is necessaryto study the various competitors of the same
product (a firm is manufacturing ) so as to analyse its own products and make
improvements, if required to cater to the needs of the target market.
9. Product life cycle: Decision to be taken regarding formulation of strategies in the
different stages of product life cycle - introduction , growth , maturity , and declive.

FACTORS AFFECTING THE PRODUCT MIX

Product mix is expanded, contracted, modified depending upon the

following factors:
1. Profitability : Modifications in the product mix are made with respect to maximize
the profits of the company . A company may add or delete a product line or any
item of the product line depending on the situation whether it is running into
profits or losses.
2. Objectives and policy of the company : Company frames its product mix
according to the objectives and policies of the company.
3. Production capacity: Production capacity determines a company’s product mix. A
company will design its product mix in a way that there is optimum use of
production capacity.
4. Demand : Product mix decisions are taken on the basis of studying consumer
demands , fashion , preferences , needs , interest so that goods are produced
according to consumer satisfaction , A company will try to include those products
in its product mix which are demanded by the target market.
5. Production cost : Product mix decisions also depend upon the production costs .
Company will prefer to make those products which are within its budget. Even if
the company wants to add a product line or any item of the product line , it will
have to see its resources and the cost of making the product to take any kind
oftlecision.
 A brand is a name, symbol or sign by which a product can be distinguished from other
products available in the market. Examples : Colgate toothpaste , close up, Cibaca are all
different brands of toothpastes. The process involved in creating a unique name and image
for a product in the consumers ' mind , mainly through advertising campaigns with a
consistent theme. Branding aims to establish a significant and differentiated presence in
the market that attracts and retains loyal customers. It
• Delivers the message clearly
• Confirms your credibility
• Connects your target prospects emotionally
• Motivates the buyer
• Concretes User Loyalty
To succeed in branding the company must understand the needs and wants of the
customers and prospects . The company can do this by integrating the brand
strategies through the company at every point of public contact. The name of a company
or its short form like ‘coca cola ’ brand used by the coca cola company doesn ’t only
represents company ’s face to the external world but also how that name is usually
expressed through a logo and now that name and logo collectively be used in company’s
communications .The components of brand that takes company to heights are brand
personality , brand attributes , core value (company ’s value statement ), brand
characteristics, brand development strategy (why, what, who and where of brand) and an
efficient brand management strategy that keeps pace with the merging opportunities in
which the brand will participate . Brands have certain recognizable elements that
differentiate a brand from its competitors.
These are : Brand Name, Logo, Sign, Trademark etc.

PACKING AND PACKAGING

MEANING
Packing and packaging are closely related concepts though being totally different. The
task of -keeping, packing, wrapping, or binding commodity in sack, cloth, paper, box, can,
bottle etc. according to the nature of product is called packing . Packing is meant for the
basic protection of the goods like damage, leakage, pilferage etc. while packaging is more
about the design , the appearance , colours as perceived by the consumers . But the word
packaging does not limit the meaning to only packing, wrapping or binding in anything
, rather it also works for sales promotion . Packaging is also concerned with the matter
how to put or keep a commodity in a container , box or can in an attractive , safe and
comfortable manner. It is mostly done by factory owner who have to send products in bulk
. Packaging refers to placing inside individual products into a carton using wrapping
materials to protect products from any damage. Packaging plays a crucial role in attracting
customers and in their decision to purchase a product . Ex: AmulTaaza milk is stored in
tetrapacks to preserve them for longer periods as milk is a product that perishes very fast.
The tetrapacks provide the freshness needed to keep the milk in good condition while
 LABEL
A label means a strip /piece of paper giving detail fixed on a thing . Label is a paper or
plastic piece that gives detail about name, use, instruction , cant features of the product , the
process of deciding the label for the product is called labelling . If information about the
product is printed on the package or pasted on it, then it is called label. A label can be printed
statement or written in paper, or it may be unprinted piece or leather piece. A label is a carrier
of information about the product. The attached label provides customers with information to
aid their purchase decision or help improve the experience of using the product.
Labels can include:
• Care and use of the product
• Recipes or suggestions
• Ingredients or nutritional information
• Product guarantees
• Manufacturer name and address
• Weight statement
• Sell by date and expiration dates
• Warnings
The label is the primary point of contact between the producer and the purchaser and
should be thought of as an integral part of the producer 's marketing plan. It is not just a piece
of paper stuck onto the container but should be an expression of a number of important
decisions that have been made about marketing.
The customers can compare the products and know about the quality of the product from
the label pasted, put or printed on the package . Label provides information about the name,
feature , quality , price, utility , nature , ingredients etc. of the product and also manufactured
date, place and producer 's identification . It also gives instruction how to use and handle the
product. In the label used on medicine package, manufactured date, expiry date, composition
of the ingredients , using instruction etc. are mentioned . Customers can get information about
the ingredients or composition used in manufacturing the medicine from label on the bottle or
packet. In the lack of proper information , the customers hesitate to buy any products . Label
gives information or answers of all possible questions that the customers may raise about the
product. It also mentions, maximum retail prices of the products. So, labeling is an important
part of branding and marketing.
Products of HUL:-

Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona

Laundry:- Surf Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :- Vim

Disinfectants:- Domex, cif

Foods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread

Ice-cream:- Kwality Wall's

Tea:- Brooke bond, Lipton, taj mahal Coffee:- Brooke bond bru

Beauty Products:- Fair & Lovely, Lakme, Ponds, Vaseline and Aviance

Hair-Care:- Sunsilk naturals, Clinic , Dove and Lifebouy

Oral-Care:- Pepsodent and Close-up

Deo spray:- Axe and Rexona

Water Purifier:- Pureit

Ayurvedic Personal & health care:- Ayush

STAR India Pvt Ltd has tied up with Hindustan Unilever Ltd (HUL) to advertise only HUL
brands across all 10 star channels. Leading the pack will be Lifebuoy ads. According to media
buyers, the deal is estimated to be around Rs 52 crore. This is the biggest deal after Vodafone
took a similar step in 2007. When contacted, Kevin Vaz, executive V-P (advertising and sales),
STAR India, refused to comment on the deal.
The Star India channels include Star Plus, Star One, Star Gold, Star Utsav, Star Movies, Star
World, Channel [v], Star Jalsha, Star Pravah and Star Vijay.
Speaking on this initiative, Vaz said, “At Star, we have always gone that extra mile to provide
our customers with exclusive campaigns that create a high impact for their brands. The first time
this was done as a network roadblock was in 2007, when Hutch changed to Vodafone. We are
confident that this roadblock with HUL brands, primarily Lifebuoy, will create as huge an
impression in the minds of the customers as it did for Vodafone.”
HUL in 2008 spent close to Rs 650 crore on TV and print advertising. The company posted a net
profit of Rs 543.19 crore for the quarter ended June 30, 2009, as compared to
Rs 558.18 crore same quarter last year. Total income stood at Rs 453.61crore for the quarter as
compared to Rs 431.75 crore same quarter last year. The company in the first quarter of 2009
increased its ad spend by 26 % as part of its efforts to drive up volumes.
 HUL is the marketer 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.
 The company has a distribution channel of 6.4 million outlets and owns 35
major Indian brands. Its brands include :

 Home Food and

Care
brand Drink brand

Personal Water Purifier

are brand brand
Our performance
THE BENEFITS THAT OUR VISION AND STRATEGY DELIVERS, TRANSLATE INTO GROWTH ORIENTED PERFORMANCE FOR
SHAREHOLDERS AND SOCIETY AT LARGE

SEGMENT PERFORMANCE
SEGMENTal revenue (%) SEGMENTal PROFITS (%)

Home Care 33 Home Care 21

Personal Care 48 Personal Care 65
Foods 3 Foods 1
Refreshments 14 Refreshments 13
Others 2 Others 0

FINANCIAL

NET REVENUE EBITDA EPS (basic) Cash from Operations

2016-17 2016-17 2016-17 2016-17

` 34,487 ` 6,047
crores crores
` 20.75 ` 6,500+
crores
The Domestic Consumer Earning Before Interest Tax Last year basic EPS: ` 19.12 Cash from operations was up
business grew by 4% with 1% Depreciation and Amortisation per share ` 1079 crores over the previous
underlying volume growth in a (EBITDA) improved by 38 bps year
challenging environment

NON-FINANCIAL
MANUFACTURING
2016 2016 2016

49%
Reduction in CO2 emissions (kg/tonne
53%
Reduction in water consumption (m3/
45%
Reduction in total waste (kg/tonne of
of production) in our manufacturing tonne of production) in our manufacturing production) generated from factories
operations compared to 2008 operations compared to 2008 baseline compared to 2008 baseline
baseline

BETTER LIVELIHOODS SUSTAINABLE SOURCING HEALTH AND WELL-BEING

2016 2016 2016

72,000
Shakti Entrepreneurs empowered
100%
Tomatoes used in Kissan ketchup sourced
>130 million
People reached through our health and
sustainably hygiene programmes
Financial performance
10 YEAR RECORD
Standalone (` crores)

IGAAP IND AS
Statement of Profit & Loss
Account 2007 2008-09 2009-10 2010-11^ 2011-12^ 2012-13^ 2013-14^ 2014-15^ 2015-16^ 2015-16## 2016-17
(15 months)
Gross Sales* 14,715 21,650 18,220 20,285 22,800 26,680 28,947 32,086 33,856 32,929 33,895
Other Income 432 590 350 627 659 1,211 1,232 1,254 1,063 1,126 1,118
Interest (25) (25) (7) (0) (1) (25) (36) (17) (0) (15) (22)
Profit Before Taxation @ 2,146 3,025 2,707 2,730 3,350 4,349 4,800 5,523 5,910 5,977 6,155
Profit After Taxation @ 1,743 2,501 2,103 2,153 2,599 3,314 3,555 3,843 4,078 4,116 4,247
Earnings Per Share of ` 1 8.73 11.46 10.10 10.58 12.46 17.56 17.88 19.95 18.87 19.12 20.75
Dividend Per Share of ` 1 9.00# 7.50 6.50 6.50 7.50 18.50# 13.00 15.00 16.00 16.00 17.00
*Sales before Excise Duty Charge @ Before Exceptional/Extraordinary items ^Based on Revised Schedule VI/Schedule III #Includes special dividend
##
Figures are restated as per IND AS

IGAAP IND AS
Balance Sheet 2007 2008-09 2009-10 2010-11^ 2011-12^ 2012-13^ 2013-14^ 2014-15^ 2015-16^ 2015-16## 2016-17
(15 months)
Fixed Assets 1,708 2,079 2,436 2,458 2,363 2,509 2,742 2,937 3,300 3,300 4,227
Investments 1,441 332 1,264 1,261 2,438 2,330 3,094 3,278 2,967 2,780 3,779
Net Deferred Tax 213 255 249 210 214 205 162 196 231 168 160
Net Assets (1,834) (183) (1,365) (1,269) (1,502) (2,370) (2,721) (2,686) (2,811) 31 (1,676)
(Current and Non-current)
1,528 2,483 2,584 2,660 3,513 2,674 3,277 3,725 3,687 6,279 6,490
Share Capital 218 218 218 216 216 216 216 216 216 216 216
Reserves & Surplus 1,221 1,843 2,366 2,444 3,297 2,458 3,061 3,509 3,471 6,063 6,274
Loan Funds 89 422 - - - - - - - - -
1,528 2,483 2,584 2,660 3,513 2,674 3,277 3,725 3,687 6,279 6,490
^Based on Revised Schedule VI/ Schedule III Figures are restated as per IND AS
##

IGAAP IND AS
Key Ratios and EVA 2007 2008-09 2009-10 2010-11^ 2011-12^ 2012-13^ 2013-14^ 2014-15^ 2015-16^ 2015-16## 2016-17
(15 months)
EBITDA (% of Gross Sales) 14.1 14.0 15.1 13.2 14.4 15.0 15.5 16.2 16.9 17.5 17.8
Fixed asset Turnover (No. of 8.6 8.3* 7.5 8.3 9.6 10.6 10.6 10.9 10.3 10 .0 8.0
Turnover)
PAT / Gross Sales (%) 11.8 11.6 11.5 10.6 11.4 12.4 12.3 12.0 12.0 12.5 12.5
ROCE (%) 78.0 107.5* 103.8 87.5 96.8 109.1 130.2 127.7 128.4 105.8 105.9
RONW (%) 80.1 103.6* 88.2 74.0 77.7 94.7 104.1 99.5 88.7 72.8 76.6
Economic Value Added 1,314 2,154 1,791 1,750 2,250 2,926 3,147 3,380 3,526 3,438 3,498
(EVA)(` crores)
* Shown on annualised basis ##Figures are restated as per IND AS
Return metrics (ROCE and RONW) are lower in Ind AS compared to IGAAP since under IND AS final dividend including taxes are accounted after approval in AGM only; whereas
in IGAAP such dividends were recognised in the same year to which they relate to. The final final dividend for the financial year 2015-16 was ` 2,474 crores.

2007 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Others
(15 months)
HUL Share Price on BSE 214 238 239 285 410 466 604 873 870 910
(` Per Share of ` 1)*
Market Capitalisation 46,575 51,770 52,077 61,459 88,600 1,00,793 1,30,551 1,88,849 1,88,154 1,96,902
(` crores)
Contribution to Exchequer (` crores) 3,133 4,429 3,704 3,953 4,839 6,365 6,680 8,309 8,856 9,249
*Based on year-end closing prices quoted in the bse Limited
Performance Trends
Gross Sales (` crores) Profit After Tax (` crores) EBIT (% of Sales)
35000 4,500
32500 20.0%
30000 4,000
27500 3,500 16.0%
25000
22500 3,000
20000 12.0%
2,500
17500
15000 2,000
8.0%
12500 1,500
10000
1,000 4.0%
7500
5000 500
2500 0.0%
0
0

2007
*2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2015-16
2016-17
2007

*2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2015-16

2016-17
2007

*2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2015-16

2016-17

#
#
#

Contribution to Exchequer (` crores) Fixed Assets Turnover (No. of times)

10,000 12.0
9,000
8,000 10.0

7,000
8.0
6,000
5,000 6.0
4,000
3,000 4.0

2,000
2.0
1,000
0 0.0
2007

*2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2015-16

2016-17
2007
*2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2015-16
2016-17

#
#

Economic Value Added (EVA) Earnings and Dividend Per Share Market Capitalisation and HUL Share
(` crores) (`) Price
3600
22.00 250,000 1000
3200 20.00 900
18.00 200,000 800
2800 16.00 700
2400 14.00 150,000 600
12.00
2000 500
10.0
100,000 400
8.00
1600 300
6.00
1200 4.00 50,000 200
2.00 100
800 0 0 0
^2007

*2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2015-16

2016-17

2007
*2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17

400

0
2007

*2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2015-16

2016-17

Market CapitalisaIon (` crores)

Earnings Per Share Dividend Per Share HUL Share Price on BSE (`)*
#

*Figures are for 15 months period ^Includes Special Dividends #

Figures are restated as per IND AS *Based on year-end closing prices quoted in the bse Limited
1. FINANCIAL PERFORMANCE (STANDALONE)
1.1 Results
(` crores)

For the year ended For the year ended

31st March, 2017 31st March, 2016
Revenue from operations (including excise duty) 34,487 33,491
Profit before exceptional items and tax 6,155 5,977
Profit for the year 4,490 4,137

1.2 Category Wise Turnover

(` crores)

For the year ended For the year ended

31st March, 2017 31st March, 2016
Sales Others* Sales Others*
Home Care 11,123 223 10,585 228
Personal Care 16,078 226 15,791 220
Foods 1,102 22 1,078 18
Refreshments 4,795 53 4,434 48
Others (including Exports, Infant and Feminine Care) 797 22 1,043 9
TOTAL 33,895 546 32930 524
*Others include service income from operations, relevant to the respective businesses.

1.3 Summarised Profit and Loss Account

(` crores)

For the year ended For the year ended

31st March, 2017 31st March, 2016
Sale of products (including excise duty) 33,895 32,929
Other operational income 592 562
Total Revenue 34,487 33,491
Operating Costs 28,440 27,742
Profit Before Depreciation, Interest, Tax (PBDIT) 6,047 5,749
Depreciation 396 321
Profit Before Interest & Tax (PBIT) 5,651 5,428
Other Income (net) 504 549
Profit before exceptional items 6,155 5,977
Exceptional items 241 (31)
Profit Before Tax (PBT) 6,396 5,946
Taxation 1,906 1,809
Profit for the year 4,490 4,137
Basic EPS (`) 20.75 19.12

The financial statements for the year ended 31st March, 2017 are the first the Company has prepared under Ind AS (Indian Accounting Standards).
The financial statements for the year ended 31st March, 2016 have been restated in accordance with Ind AS for comparative information.
 Providing education on health and hygiene.

 Women empowerment.
 Water management.

 Rehabilitation of special or underprivileged children.

 Care for the destitute and HIV-positive.

 Rural development.
 Plays activate role in natural calamities.

 THE PROJECT SHAKTI

 SWACHH AADAT
SWACHH BHARAT

 HAND WASHING BEHAVIOUR

CHANGE PROGRAMME
 Hindustan Unilever Limited is a most admired FMCG
company of India.

 HUL has market share of 36% in India.

 Strong marketing strategies.

 Touches the life of every 2 out of 3 Indians.

 Deals in wide range of product.