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HINDUSTAN UNILEVER LIMITED PPT

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BY FELIN FRANCIS JDC BYTCO IMSR NASHIK

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OVERVIEW OF THE COMPANY INCORPORATED: 1933 INDUSTRY: CONSUMER GOODS. HEADQUARTERS: MUMBAI ,MAHARASHTRA. KEY PEOPLE: HARISH MANWANI(CHARIMAN) NITIN PARANJE(MD &

CEO) TURNOVER: 25,206 CRS. PEOPLE: 16000 EMPLOYEES INCLUDING

1500 MANAGERS. PARENTAGE: PART OF 44.3 BILLION EUROS

OF UNILEVER GROUP. REACH: 6.4 MILLION RETAIL OUTLETS. R&D CENTRES: MUMBAI & BANGALORE, INDIA.

INTRODUCTION Hindustan Unilever Limited (HUL) is the largest

FMCG company in India. It is owned by the British-Dutch company

“Unilever” and has about 52% majority stake in Hindustan Unilever Limited .

Its products include foods, beverages, cleaning agents and personal care products.

It is headquartered in Mumbai, Maharashtra, India.

Hindustan Unilever Limited has over 35 brands spanning 20 distinct categories.

As per Nielsen market research data, two out of three Indians use HUL products.

Hindustan Unilever – a 75 year history

HISTORY AND BACKGROUNDHindustan Unilever Limited was established in 1933

as Lever Brothers India Limited by Lever Brothers.In 1956, it became known as Hindustan Lever

Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.

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

Lever Brothers first commenced operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

VISION OF THE COMPANY The four pillars of our vision set out the long term

direction for the company – where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more out

of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

To earn the love and respect of India, by making a real difference to every Indian.

MISSION OF THE COMPANY

Unilever's mission

Is

“TO ADD VITALITY TO LIFE”

MERGERS &ACQUISITIONS MERGERS:

THE ERSTWHILE TATA OIL MILLS COMPANY(TOMCO) IN 1ST APRIL,1993

POND’S (INDIA) LIMITED(PIL) IN 1998

BROOKE BOND LIPTON INDIA LIMITED(BBLIL) IN 1ST JANUARY,1996

ACQUISITIONS:

BROOKE BOND IN 1984

LIPTON IN 1972

LAKME LIMITED

50:50 JOINT VENTURE WITH US BASED KIMBERLY CLARK CORPORATION IN 1994

MODERN FOODS IN 2002

POND’S(INDIA) LIMITED IN 1986

AWARDS AND RECOGNITION In 2012, HUL was recognized as one of the worlds most

innovative companies by Forbes. With a ranking of number 6, it was the highest ranked FMCG company

Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards organized by the Advertising Club Bombay in September 2012

In July, 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and Safety Award for 2012 in the FMCG category for its safety and health initiatives and continuous improvement on key metrics.

As per the latest Nielsen Campus Track-Business School Survey released in February 2013, Hindustan Unilever Limited has emerged as the No.1 employer of choice for B-School students who will graduate in 2013, across functions. HUL also retained the 'Dream Employer' status for the 4th year running and continues to be the top company considered for application by B-School student in India

Board Of Directors

Mr.Harish ManwaniNon-Executive Chairman

Mr. Nitin Paranjpe Managing Director and Chief Executive Officer

Mr. Sridhar Ramamurthy Executive Director, Finance & IT and Chief Financial Officer

Mr. Pradeep Banerjee Executive Director, Supply Chain

ORGANISATION STRUCTURE

Mr. Aditya NarayanIndependent Director

Mr. S. Ramadorai Independent Director

Mr. O. P. Bhatt Independent Director

Dr. Sanjiv Misra Independent Director

BRANDS HUL is the market 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:

Food and Drink brandPersonal Care brandHome Care brandWater Purifier brand

FOOD AND DRINK BRAND

PERSONAL CARE BRAND

HOMECARE BRANDS

WATER PURIFIER BRAND

SUSTAINABLE LIVING Unilever launched Sustainable Living Plan in

on 15th November 2010 at London, Rotterdam, New York and New Delhi simultaneously.

The Unilever Sustainable Living Plan has three major goals, which Unilever aims to achieve by 2020:

Help more than one billion people improve their health and well-being

Halve the environmental impact of their products

Source 100% of their agricultural raw materials sustainably

CORPORATE SOCIAL RESPONSIBILITYProviding education on health and hygieneWomen empowermentWater managementRehabilitation of special or underprivileged

children Care for the destitute and HIV-positiveRural development. Plays active role in natural calamities

Lifebuoy Swasthya Chetana - Health & Hygiene

Shakti – Empowerment of women through micro-enterprise Opportunity

Yashodadham - Relief and Reconstruction in Gujarat's Kutch district

Asha Daan - Happy Home actively supported by HUL

At Hindustan Unilever Limited (HUL), we have always believed in an approach of doing business which we call “doing well by doing good”. Project Shakti is a rural distribution initiative that targets small villages. The project benefits HUL by enhancing its direct rural reach and also creates livelihood opportunities for underprivileged rural women. Shakti is our initiative that combines social responsibility, sustainability, and business strategy. Shakti model is very strong and sustainable because it is the best way we can give it back to the society through supporting our cause of ' empowering underprivileged rural women' along with making business sense.Shakti started with 17 women in two states. Today, it provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and provides access to quality products across 100,000+ villages and over 3 million households every month .

PROJECT SHAKTI

FINANCIALSSegment-Wise Sales (%)

2008-09

2009-10

2010-11

2011-12

2012-13

Soaps and Detergents

49 48 46 48 49

Personal Products

29 30 32 31 31

Beverages and Packaged Foods

19 20 20 19 18

Others 3 2 2 2 2

Year 2008-09

2009-10

2009-10

2009-10

2012-13

Market Capitalisation (Rs. crores)

51,770 52,077 61,459 88,600 100,793

Rs. crores

Year (Sales) 2013 2012 2011 2010 2009

Soaps and Detergents

12,460.9 10,488.38

8,683.88 8,180.29 9,770.26

Personal Products 7,309.10 6,486.45 5,750.68 4,969.36 5,272.31

Beverages 2,913.67 2,577.02 2,309.23 2,119.44 2,272.29

Packaged Foods 1,473.86 1,341.93 1,162.28 942.91 1020.69

Others (including Exports, Chemicals, Infant Care Products, Water, etc.)

1,048.79 841.82 1,474.94 1315.65 1911.70

Total 25,206.38

21,735.60

19,381.01

17,523.80

20,239.33

Category wise Turnover (Rs. crores)

Year (Income) Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Net Sales Turnover 25810.21 22116.37 19333.30 17725.33 20601.

56

Other Income 606.90 278.31 251.94 148.11 205.55

Total Income 26417.11 22394.68 19585.24 17873.44 20807.11

Year 2013 2012 2011 2010 2009Profit and Loss for the Year 3172.44 2482.78 2124.36 2102.69 2346.3

2

Stock Exchange Listing

The Company's shares are listed and traded at the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).

Name of the Stock Exchange

Stock Code

Bombay Stock Exchange Limited

500696

National Stock Exchange of India Limited

HINDUNILVR

ISIN INE030A01027

Share Performance Comparison: 05/09/2012 - 04/09/2013

Share Performance Comparison: 05/09/2010 - 04/09/2013

First Last High Low

Hindustan Unilever Ltd. 530.90 627.35 718.90 433.20

First Last High Low

Hindustan Unilever Ltd. 271.45 627.35 718.90 265.90

Key RatiosYears Mar-13 Mar-12 Mar-11 Mar-10 Mar-09

PE32.1 36.5 29.6 26.5 29.3

MARKET CAP (Rs Cr) 135,536.75

P/E 38.90

FACE VALUE (Rs) 1.00

Current Market Value

Crisil rating

GOVERNANCE

Company Name Industry Instrument Rating

Hindustan Unilever limited

Household Products Working Capital Demand Loan

CRISIL AAA

Proposed Fund-Based Bank Limits CRISIL AAA

CONTROVERSIES• Mercury pollution

In 2001, a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of dumping glass contaminated with mercury in municipal dumps, or selling it on to scrap merchants unable to deal with it appropriately.

• Skin lightening creamsHindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in India. The company had to cease television advertisements for the product in 2007. Advertisements depicted depressed, dark-complexioned women, who had been ignored by employers and men, suddenly finding new boyfriends and glamorous careers after the cream had lightened their skin. In 2008 Hindustan Unilever made former Miss World Priyanka Chopra a brand ambassador for Pond's, and she then appeared in a mini-series of television commercials for another skin lightening product, 'White Beauty', alongside Saif Ali Khan and Neha Dhupia; these advertisements, showing Priyanka's face with a clearly darker complexion against the visibly fairer Neha Dhupia, were widely criticized for perpetuating racism and lowering the self-esteem of women and girls throughout India who were misled by HUNL to believe that they needed to be white to be beautiful

• Triclosan

Several academic papers have pointed out the firm's continued use of the antibacterial agent Triclosan ('Active B') in India because it is under review by the American Food and Drug Administration (US FDA).

THANK YOU….