46259548 SWOT Analysis of Hindustan Unilever Ltd

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IntroductionHistoryCompany ProfileProduct portfolioProductsOwnership structureProfits & markets of HUL CompetitorsSWOT Analysis

Introduction

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business world.

HUL is the market leader in Indian consumer products with presence in over 20 consumer categories.

It has over 35 brands.The company has a distribution channel of 6.3

million outlets.HUL has the largest number of brands in the

Most Trusted Brands List.

HistoryFormed in 1933 as Lever Brothers India

Limited. It came into being in 1956 as Hindustan

Lever Limited through a merger of Lever Brothers(Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd)

The company was renamed in June 2007 to “Hindustan Unilever Limited”.

Company ProfileHLRC- SET UP IN 1958.INDIA’S LARGEST FMCG.MARKET CAPITALISATION OF $6,660 MILLIONCEO-DOUGLAS BAILEYSALES- RS.10,000 CRORE.CATEGORY- 20 CO.(home & personal care, food &

beverages),80 FACTORIES.EMPLOYEE- 41000,MANAGER- 1350.EQUITY SHARES- 51.55%. 2000 SUPPLIERS.200 SCIENTISTS & TECHNOLOGISTS.

Mission

Hindustan Unilever's mission is to add Vitality to life

They meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life

Vision

To Earn the Love and Respect of India, by making a real difference to every Indian.

Product Portfolio Kwality Wall's ice cream Lifebuoy Lux Breeze Liril Rexona Hamam Moti soaps Pure it water purifier Lipton tea Brooke Bond tea Bru coffee Pepsodent and Close Up

toothpaste and brushes Surf Axe deosprays.

Rin Wheel laundry detergents Kissan squashes and jams Annapurna salt and atta Pond's talcs creams Vaseline lotions Fair and Lovely creams Lakmé beauty products Clinic Plus Clinic All Clear Sunsilk shampoos Dove shampoos Vim dishwash Ala bleach Domex disinfectant Rexona

Ownership Structure

Promotors Mutual Funds Insurance company

FII's Individual Shareholder Others

Contribution to Different Sectors

MARKET CAPITALISATION AS PER BSE Dec 2009

HOME & PERSONAL CAREFOODSEXPORTSOTHERS(CHEMICALS, WATER)

16.2%

7.3%

2.2%

Sales of HUL

Source:- http://cms.outlookindia.com/Uploads/Outlookprofit/20091113/Mom_HUL_Chart1.jpg

Market Share of HUL

Source:-http://cms.outlookindia.com/Uploads/Outlookprofit/20091113/Mom_HUL_Chart2.jpg

Profit of HUL

Source:- http://www.financialexpress.com/news/hul-profit-dips-21.6-co-seen-losing-market-share/535685/

Competitors

KRAFTP & GNESTLELO’REALDABURITC

Structure of S.W.O.T Analysis

Strength Weakness

Opportunity Threat

Internal Environment

External Environment

Strength

R&D and Marketing strategyProject SHAKTI –creating brand

awareness in rural IndiaFormidable distribution networkNew division called HLL NETWORKNew sales organization called ONE HLLGrowth more than the FMCG sector

Weakness

Market myopia led to stagnation of business

Low raw material cost-high priced products

Lacked the ability to call shots and power pricing

Inability to transform its strategies at the right time

Opportunity

Expansion of horizon outside Asia

Export is less compared to production

Diversify its brand in food products

Large Domestic market over a billion Population

Untapped rural market.

Threats

Loosing market share due to New Entrants

ITC Ltd. – one of the biggest threats

Mimic of Brands

Removal of import restrictionsresulting inreplacing of domestic brands.

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