FINAL Jj Project

7/31/2019 FINAL Jj Project

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ACKNOWLEDGEMENTS

This project has been made with the help of books, research and Google

searching and articles from various editor and commissions which were

researching on inflation and the strategies taken by the companies during

inflation period. Some contents are taking from ECONOMIC TIMES and from

the major newspaper and articles from India and abroad. This project is giving

focuses on inflation and the condition of the India and of the world during

inflation period and of the companies mainly focussing on Hindustan Unilever

ltd (HUL), Toyota, Samsung electronics.

This project is been made with lots of research done in various factors which

involves during making and applying a strategy in the company


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INDEX

TOPIC PAGE NO:

Marketing 4

Marketing strategies 5

Recession in India 7

AUTOMOBILE MARKET

Toyota 15

Toyota history 16

Toyota strategies 18

Toyota financial crisis 20

Toyota strategies in India 22

ELECTRONIC MARKET

Samsung 25

Marketing strategies 26

Samsung financial crisis 27

FMCG MARKET

HUL 29

HUL financial Performance 31

HUL Strategies in Indias market 32

HUL product detail 34


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MARKETING

Marketing is the process by which companies determine what products or services may be of

interest to customers, and the strategy to use in sales, communications and business development.

It generates the strategy that underlies sales techniques, business communication, and business

developments. It is an integrated process through which companies build strong customer

relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the

customer as the focus of its activities, it can be concluded that marketing management is one of the

major components of business management. Marketing evolved to meet the stasis in developing

new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of

marketing strategies requires businesses to shift their focus from production to the perceived needs

and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the

needs and wants of target markets and delivering the desired satisfactions. It proposes that in order

to satisfy its organizational objectives, an organization should anticipate the needs and wants of

consumers and satisfy these more effectively than competitors.


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Marketing Strategy

The field of marketing strategy encompasses the strategy involved in the management of a givenproduct. A given firm may hold numerous products in the marketplace, spanning numerous and

sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage

such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite

resources. For example, a start-up car manufacturing firm would face little success should it attempt

to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product

may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be

made. Each scenario requires a unique marketing strategy. Listed below are some prominent

marketing strategy models

BUYING BEHAVIOUR

A marketing firm must ascertain the nature of customers' buying behaviour if it is to market its

product properly. In order to entice and persuade a consumer to buy a product, marketers try to

determine the behavioural process of how a given product is purchased. Buying behaviour is usually

split into two prime strands, whether selling to the consumer, known as business-to-consumer

(B2C), or to another business, known as business-to-business (B2B).

B2C BUYING BEHAVIOUR

This mode of behaviour concerns consumers and their purchase of a given product. For example, if

one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an

information search on available types/brands. This may include perusing media outlets, but most

commonly consists of information gathered from family and friends. If the information search is

insufficient, the consumer may search for alternative means to satisfy the need/want. In this case,

this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in which the

consumer actually buys the product. Following this stage, a post-purchase evaluation is often

conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If

the value/utility is high, then a repeat purchase may be made. This could then develop into

consumer loyalty to the firm producing the sneakers.

B2B buying behaviour

Relates to organizational/industrial buying behaviour. "B2B" stands for Business to Business. B2B

marketing involves one business marketing a product or service to another business. B2C and B2B

behaviour are not precise terms, as similarities and differences exist, with some key differences

listed below:

In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the

fifth and sixth stages are precluded. In a new buy, all stages are conducted.


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RECESSION IN INDIA

Recession in India: Challenges & Opportunities Galore

The global economic recession has taken its toll on the Indian economy that has led to multi-croreloss in business and export orders, tens of thousands of job losses, especially in key sectors like the

IT, automobiles, industry and export-oriented firms. It has also shaken up the investment regime,

which is being restructured, with the telecom sector likely to be declared off-limits for foreign

investors. Although the next two years or more are expected to usher in a difficult phase for the

national economy, there are silver linings still amid the dark clouds looming on the horizon. The

stimulus package unveiled by the central government should boost exports, especially to the Gulf

States, which are still awash in petro-dollars, even if the oil prices have plummeted from $142 to $42

within six months. Restrictions on exports of food, textiles and construction material to the Gulf

have jacked up the prices there. Easing on export curbs should be welcome news to some 30 million

people in that region. The scope and size of the export market to Saudi Arabia, the biggest market in

the GCC, will be discussed later in this article.

Before the crisis erupted, there were more than 1500 software firms in the country, while the

employee base of the sector had grown to 553,000 (from 415,000 in FY 06). More than 1300 IT

companies were operating in Bangalore alone. This sector has been adversely affected by the global

crisis-a fact acknowledged by Bangalore-based Infosys Technologies Co-Chairman, Nandan M.

Mililani. He believes that even though the tech sector would see the impact of the economic

slowdown in terms of growth rate, the IT industry will continue to grow and recruit manpower.


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Interestingly, his observation finds support from the Manpower Employment Outlook Survey which

ranks India second after Peru in terms of the recruitment programme. The survey, which covered 33

countries, reveals that although the global slowdown will certainly impact the hiring plans of

employers in India over the next three months, it has the second strongest hiring capacity globally,

with a Net Employment Outlook of 19 percent. This outlook represents a sharp decrease of 24

percentage points quarter-over-quarter and 27 percentage points year-over-year. Of the 33

countries covered by the survey, employers in Peru have been found to be the most upbeat with Net

Employment Outlook of 24 per cent. Peru is followed by India, Costa Rica, Canada, Romania,

Colombia, South Africa, Australia, Poland, the United States and China. The slowest hiring activity is

expected in Singapore and Taiwan.

As for the IT industry, Nasscom had initially projected a 21-24 per cent growth rate for the current

financial year, but the software association revised it downward in the wake of the global financial

meltdown. Nasscom will complete the review processes of the FY09 export growth targets,

sometime in December. Similar was the projection of Infosys, when it lowered its dollar revenue

guidance for FY09 by six percentage points. It now expects revenue to be between $4.72-4.81billion.

There is a global scenario which is unprecedented and it will have an impact on everyone. But the IT

industry has demonstrated time and again that it is resilient enough to deal with these challenges,

said a Nasscom spokesman.

But for now heads continue to roll in the IT sector. In February this year, Tata Consultancy Services

(TCS) had asked about 500 employees to leave due to non-performance. Patni Computer Systems

(PCS) has already laid off around 400 employees, or nearly 3% of its 14,800 workforce, on the same

ground, while IBM Corp. followed suit in the case of 700 freshers. Wipro, the countrys third largest

IT exporter, is considering firing 3,000 employees over performance-related issues. However, this is

yet to be confirmed by the company. More trouble seems to be in store for this sector. This time the

news is that the relatively liberal visa regime in the US that enabled IT services companies to send

employees on client work is under review following the job losses in the US. The United States

Citizenship and Immigration Services (USCIS), the visa controlling agency, is tightening the screw on

screening and issuing L1 visas and L1 extensions.

L1s are three-year visas meant for intra-company transfers, with some 50,000 Indians estimated to

be currently in the US on these visas. About a third of them are coming up for renewal this year for a

further two-year extension. Nasscom has said that the proposed legislation by the US House of

Representatives to restrict the use of L1 visas by Indian companies will affect the Indian IT industry in

the long term, as about 10 per cent of Indian software professionals in the US avail themselves of L1

visas. Away from IT firms, the IT-Enabled Services sector may also face the crunch, since a majority

of Indian IT firms derive 75% or more of their revenues from the US. Thus, if the Fortune 500

companies slash their IT budgets, Indian firms could feel the heat. The sector should review its

priority and focus on product innovation (as opposed to merely providing services). If this is done,

India can emerge as a major player in the IT products category as well.

As a result of putting all their eggs in one basket, developers, consultants, trainers, team leaders

have all become victims of the recession facing the IT sector. A fresh entrant-the bloggers-is in for

trouble as well. With corporate budgets getting trimmed, professional bloggers may be the next to

come under the hatchet.


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Advertisements, sponsored listing and pay per post have been affected by the slowdown. For

Pranav Dharma, a part-time blogger, the recession has shrunk ad contracts. I was running an ad

campaign on my blog for the past three months. When time came for extending the contract, the

advertiser said they are re-evaluating the contract campaigns due to the slowdown.

However, business process outsourcing firms believe they will be less impacted by the global crisisthan their IT counterparts, since they are involved in facilitating day-to-day operations. Avinash

Vashistha, MD of technology consultancy firm Tholona says the slowdown impact on BPOs will be

limited. BPOs are about core transactions and day-to-day functioning and clients will find it tough to

delay these projects or make cuts in them, adding that applications support and maintenance and

project implementation services of IT may be slashed by over 30 percent.

Currently, processing services account for 60% of the industry, while the rest comes from core

services (business analysis, financial planning etc). Last year the ratio was 70:30 and its likely to be

in the 50:50 ranges next year. Also, the share of voice-based services has fallen from 95 % two years

ago to 80% now and is expected to slide further. India will not be much affected, since it accounts

for only 5% of the global voice market. Industry-wide indications after September are also uniformly

gloomy. There are reports of significant declines in output of automobiles, commercial vehicles,

steel, textiles, petrochemicals, construction, real estate, finance, retail activity and many other

sectors. Exports fell by 12 percent in dollar terms in October, while core industries slowed to 3.4 %

during the same month from 4.6 % a year ago.

Giving his assessment, Jasjit Sawhney, CEO, net4 India Ltd., told the SME Times: The major impact

of recession or economic slowdown is with the small exporters and importers in the country as mostof them are facing the problem of heavy duties.

Continuing further, he observed: The US slowdown will immensely hit the mid-sized IT companies

and also the big players to some extent. On the higher end, you have scenarios where people are

cutting back on contracts. They are reducing the fees per manpower in their contracts.

A survey of 125 companies by the commerce department in New Delhi has revealed that Indian

companies lost export orders worth Rs.1, 792 crores during August-October 2008 and were forced to

lay off 65,000 workers. The manufacturing sector, especially the auto industry, has also sustained a

severe hit. As a result, the global credit rating agency, Standard &Poors (S&P) has downgraded Tata

Motors rating for the foreign market. The company witnessed a 30 % drop in sales in India compared

to last year. The manufacturing sector had been calling for action in this regard to cushion the

recessionary impact. In the meantime, it has impacted the entire spectrum of the automobile

industry. Dunlop India Ltd, for instance, asked all 1,171 permanent employees at its Sahagunj unit

and 917 staffers at Ambattur (in West Bengal) not to report for work for an indefinite period.

Whats strange about this management move is that it is an informal directive with neither

suspension of work (mandating a notice period) nor a lay-off that obliges the management to pay

the basic salary and a portion of the dearness allowance. The Dunlop management, meanwhile, will

pay each employee a monthly allowance to support their families. As the companys senior

executive Pawan Kumar Ruia put it: The tyre market is facing a slump due to the global meltdown,


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forcing us to take the decision. The Tatas have left Singur. We do not want to ruin our chances by

operating the factory now. We could have announced a shutdown. But we didnt take that route.

Instead, we are working on a revival package and have asked the workers to stay away for the time

being.

The textile giant, VF-Arvind, has started releasing employees, especially from the imported brandssection, as there are few takers. Around 80 employees have been pink-slipped under its downsizing

programme. An offshoot of this impact is being felt on warehouses, which are being vacated due to

inventory control. Along with warehouses, other sectors of the real estate market have also

tumbled, with property prices dropping by 10-15% in addition to various incentives that are being

offered. For NRIs, this is the prime time to invest in the real estate market, which is bound to rally

once it gets over the hump. On the educational front, bank officials point out that there is no impact

yet on the grant of loans for higher education. Students of IIM, IIT, medicine, engineering and other

professional courses continue to receive educational loans repayable after the student has

completed his/her course.

Foreign students, too, will stay put, since security measures are being beefed around hotels,

prestigious institutes and other places frequented by foreigners. Countries from Southeast Asia and

the West have also advised their nationals to consider deferring their visit to India till the situation

improves. In line with this policy, the Singapore government issued a temporary travel ban on

schoolchildren coming to Bangalore for a leadership conclave. The Malaysian government has also

cautioned its citizens against travelling to India for the time being. However, new educational

projects could be on hold for a while, since the banks lending rates continue to be high despite the

stimulus package.

The tourism sector has been affected, too. Hotels have already reported 20-25 % cancellation from

international tourists who were booked to visit over the next one year. Airlines, including low cost

carriers (LCCs), may lower their fares by 10-12 % to extend the benefit of lower fuel prices to the

customers and rein in the sagging demand. With hotel occupancy levels and room rates dipping by

20 % and 50 % respectively in just two weeks, the sector is clamouring for a substantial cut in luxury

tax slabs. The industry also wants that the luxury tax on rooms be charged on the actual rates rather

than on the printed rack rates. According to market sources, guests are paying 20-25% higher room

rates because of this tax structure.

The reduced purchasing power of Indian consumers in the current situation has revved up

competition among shopping malls. They now have to step up their ad spend along with discounts to

lure consumers who have restricted their shopping list to essentials, such as food and other

consumables. After all, the purchasing power of 350 million Indians cannot be glossed over.

Together with the package of incentives offered by the government to kick-start the economy, good

management practices and self-imposed check on profiteering, the retail sector can hold its own.

However, for the time being, the growth of this sector will be stunted as overseas investors will be

on guard for two reasons. The financial meltdown has burnt a hole in millions of Indian pockets.

With their shopping budget on a tight leash, one should not expect overseas malls to make forays

into the Indian market anytime soon. The second important factor is that overseas retailers,

especially from the US and other western countries, would not like to take the plunge given the fact

that the terrorist attacks in Mumbai on selected targets were politically motivated.


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All these factors will have to be weighed in by an overseas investor till the economic and security

situation improves. The Prime Ministers National Security Council (NSC) is coordinating efforts

between various government departments to finalise draft legislation which is being piloted by

national security advisor M K Narayanan. The thrust of this legislative exercise is to boost nationalsecurity by restricting foreign investment in sensitive areas like ports, airports, defence equipment

and telecom. The proposed law will be drafted on the model of the Exxon-Florio Act of the US which

arms the US government with powers to block acquisition of any American company by a foreign

investor. This Act gained international attention during 2006 when Port Dubais attempt to acquire a

majority stake in the US for ports management was blocked by the US Congress citing security

reasons. Prior to the terrorist attacks, India was in a comfortable position with Foreign Direct

Investment flows shooting up by a whopping 124% during the first five months of 2008-09 to $14.6

billion. Despite the global financial turmoil, it is set to surpass the FDI target of $35 billion during

2008-09. The country will achieve about $35-40 billion in the current fiscal. The first quarter has

crossed $ 10 billion. Last year, it was $24 billion for the entire fiscal year, a senior official in

Department of Industrial Policy and Promotion (DIPP) said.

The sectors that attracted maximum FDI inflows in 2007-08 were services, telecom, housing,

construction activities, real estate, electrical equipment, computer software and hardware. The year

before, India ranked fourth after China, Hong Kong and Singapore as a major investment destination

in Asia. The situation on the ground has since changed in the aftermath of economic recession and

the current security threat. The government has already unveiled a Rs.300, 000 crore package to

pump prime the economy with specific measures for various sectors.

This amount is to be spent on revitalizing stake holders such as exporters, housing, infrastructure

and textiles. A four-percent cut in Value Added Tax has also been announced to help the corporate

sector in general. This apart, additional allocation has been made towards various incentives for

exporters, guarantee of export credit, full refund of service tax to foreign agents and refund of

service tax under the duty drawback scheme. Relief for exporters includes a 2% interest subvention

up to March 2009 for pre- and post-shipment export credit for all exports. Additionally, a Rs.350-

crore booster for schemes like Market Development Assistance (MDA) and Market Assessing

Scheme has been granted to help exporters develop new markets. This will be applicable to all

exporters. As a result of these measures, the Centres direct tax collection in November was Rs.10,

347 crore against Rs.16, 189 crore in the same month last year, a fall of 36 %.

Given the market turbulence that will grip the world economy in 2009, there is no prospect of a

quick turnaround in India. Broadly, the 4% relief on ex-factory cost is likely to result in ex-showroom

price reduction in the range of Rs.8, 000 to Rs.45, 000 for different passenger vehicles (cars and

SUVs).Similarly, prices of cars, two-wheelers and commercial vehicles are set to come down by

around 3.5 percent due to duty cut announced by the government. Almost all the major

manufacturers, including Maruti, Hyundai, M&M, Tata Motors, Ford, Skoda and TVS said they would

be passing on the benefits of the reduced duty to customers immediately.

The techno-savvy group will also benefit as the IT hardware industry has decided to pass on the 4%

across-the-board excise duty cut to consumers which will help bring down the prices of IT products

like TFT monitors, printers and projectors as well as computers and notebooks.With this, desktops


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and notebooks will attract 8% excise duty, while all other hardware equipment would attract 10%,

according to MAIT executive director Vinnie Mehta.

In the construction sector, ACC Ltd., the countrys biggest cement manufacturer, slashed prices by

up to Rs.5 on account of reduction in cement prices by 4 %. The demand for appliances, consumer

electronics, apparel, and other products is still huge and can be tapped by adopting appropriatepricing strategies. This should be possible thanks to the 4 % cut in excise duty and subsidy on export

credit.Other measures in the offing include easy access to the credit market for exporters, textile

manufacturers and farmers collectively to the tune of Rs.9,000 crore. Of the total outlay, a Rs.4,000

crore line of credit will be extended to the National Housing Bank (NHB) and a similar allocation for

the Exim Bank. The remainder of the rescue package will be utilised for the relief of farmers and

infrastructural projects.

Besides these measures, a public-private partnership (PPP) could be launched to tap the investment

potential in various sectors. Health tourism is one of them. In the past, most of the patients coming

to India were from the SAARC region. However, in the aftermath of Nov. 26 terrorist attacks, this

catchment area will dry up necessitating a new market. There needs to be a shift in priority towards

the Gulf States, with more focus on medical tourism combined with the pleasures of sun, sea and

sand plus visits to spas and wildlife sanctuaries as part of the itinerary.

These nationals are already coming to India for manpower recruitment. Air-India and other airlines

operating on the Gulf sector should coordinate with the Indian diplomatic missions in the Gulf

States, so that applicants going there for visa endorsement could also be handed tourist brochure in

Arabic along with their passports. This facility should also be available at the offices of national

carriers of India and the GCC states. It is important to remember that while upscale Gulf citizens

prefer the US, western and some West Asian countries (UAE, Egypt and Lebanon) as their tourist

destination, only the budget-conscious group comes to south Asia. Malaysia has emerged as a hot

spot for Arab tourists due to its lush greenery, spas and overall picture postcard look, which they

rave about. Given the availability of talented professionals along with the added attraction of the

cheap cost factor, a coordinated drive could go a long way in bringing more Gulf tourists to India,

especially for health and eco-tourism. It is worth noting that whereas a heart valve replacement

surgery would cost $10,000 in Thailand, $12,500 in Singapore, $ 200,000 in the US and $ 90,000 in

Britain, in India it would just cost $8,000.

As for overseas investment, the remittance channels are beginning to diversify. Apart from FDI, third

countries like Mauritius and Cyprus are serving as conduits for channelling foreign investment into

India. Mauritius thus emerged as the top investing country in India during 2007-08, with inflows

from there more than doubling to $1.6 billion from $578 million in 2006-07. The total FDI inflows

into the country in April-June period amounted to $10.073 billion, nearly $1 billion more than the

total in 2005-06.Another major player was Cyprus, which became the eighth-largest FDI contributor

to the Indian economy, up from the 14th slot in the list of top source countries a year ago. It has

benefited from the European tax regime by becoming the favoured destination for facilitating FDI

into India.


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As recently as July this year, the IMF foresaw the world economy growing at 3.9 percent in 2009,

advanced economies at 1.4 percent and developing countries at 6.7 percent. By early November

(just four months later) these forecasts had been slashed down to 2.2 percent, minus 0.3 percent

and 5.1 percent, respectively. The official estimates of Indias GDP growth for the first two quarters

of 2008/9 stayed above 7.5 percent, with future projections indicating the same growth trajectory.

According to the Executive Summary ofAngel BrokingsIndia Education Sector Report2008, Indias

GDP has grown at a compounded grate (CAGR) of around 8.5 % over FY 2003-08, growing at over 8%

in four of the five fiscals. GDP growth in FY 2007 accelerated and came in at an impressive 9.6%.

Even for FY 2008, India logged in GDP growth of 9%, commendable by any standards. This makes it a

hat-trick for Indias GDP, which has now recorded in excess of 9% GDP growth in each of the last

three fiscals.

Yet, the report expresses dismay over Indias literacy rate of just 61%, ranking the country a

disappointing 172nd. In fact, there is a huge requirement of talent in the field of hospitality, IT

services, retail, financial services and aviation, to name a few. We believe India will have to

significantly gear up its educational infrastructure to meet this demand.

In this context, an Indian Institute of Technology survey points out that every IIT alumnus has

created 100 jobs and that every rupee spent on an IIT has created an economic impact of Rs 50 at

the global level, half of which is Indias share. The study is a global Internet-based survey that

attempts to gauge the impact of IIT on the global economy across areas like entrepreneurship,

scientific and technological achievement, social transformation, and research, educational and

business leadership. But challenges still remain. One of these is the massive scale of corruption that

has diverted crores of tax payers money into the pockets of corrupt politicians and officials. This has

strained the economy, tarnished Indias image abroad, and sapped the investors confidence.

Another problem is the sluggish bureaucracy that taxes an investors patience to the hilt. There is no

active single window clearance mechanism in place where business decisions could be expedited.

Therefore many potential investors have been moving away to greener pastures in the country or

outside. Bangalore, which once served as a magnet for investors due to its operational efficiency,

among other factors, has nose-dived on several counts, including poor infrastructure, traffic

bottlenecks, culture of corruption and casteism. It is losing out to Andhra Pradesh and Tamil Nadu as

the countrys IT hub. If these challenges represent one side of the coin, there are opportunities

galore on the other. The stimulus package that the Centre is offering to the state governments

presents an exciting opportunity to the private sector to resume exports to the Gulf states as Indian

exporters are being offered credit facilities. For exporters from Hyderabad, now is the time to strike

a deal in view of the incentives being offered. In this context, it is worthwhile considering the Saudi

market which, unlike a major segment of the international market, still remains vibrant as it gears up

for the expansion mode. Right now, the growth areas are real estate, renewable sources of energy,

especially solar, and seasonal market like pilgrimage, when nearly 2.5 million pilgrims become

consumers of electronic, household and food items that are available at cheap prices. The immense

market potential of the Haj season should not be underestimated, since the impact of recession will

be felt at least over the next two years or more.

On the export front, Indian businessmen might be interested to note that Alshoula Holding and Bayt

Al-Mal Investment, two major Saudi investment companies, signed in October this year an


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agreement with Awan Real Estate Investment & Development Company to execute an ambitious $ 2

billion real estate project in Riyadh for setting up a shopping complex in the Saudi capital. Covering

an area of 2.348 million square meters, the project will have 3,350 commercial shops and 1,380

housing units designed to meet the requirements of Saudi citizens. It will also have 97 palaces, while

residents of these housing units will have access to recreational facilities.

According to Suleiman Al-Qamlas, chairman of Bayt Al-Mal, investment in the Saudi real estate

sector is projected to increase in the coming years. He points out that Riyadh alone needs 5.5 million

housing units by 2020, with annual requirement standing at 145,000 houses, while Jeddah needs

18,000 new houses annually. He estimates real estate financing in the GCC countries at about $750

billion and real estate loans at around $1.3 trillion. Similarly, in the non-oil energy sector, new

windows of opportunity are opening in the Sun Belt countries like Saudi Arabia which are among the

sunniest of the lot, with temperatures shooting up to 50 degrees C during summer.

In March this year Saudi Arabias oil minister, Ali al-Nuaimi, went on record as saying that the

country hopes to find its place under the sun as a solar power in addition to being among the top oil

exporters. It has already set up a solar village near Riyadh for harnessing solar energy for heating and

lighting purposes. With oil prices ruling currently at $42 bpd, down from a high of $147 bpd in July

this year, Saudi authorities are seeking to diversify their energy base away from oil. Such a course of

action is also dictated by the need for illuminating homes in far-flung desert areas beyond the power

grid. The other imperative is to provide power for small projects coming up in remote townships as

Saudi Arabia strives to promote such units for extending the benefits of oil boom to the interior of

the country. While solar firms have already sprung up in the Kingdom, there is space for others as

well in this burgeoning market.

The export-oriented facility is coming up in a SEZ-designated area and will enjoy fiscal benefits.

Around 10 acres of land will be utilized initially with the remaining area allocated for future

expansion. Its joint venture partner, Eco Progetti from Italy, will supply a 19-mw solar photovoltaic

cell production line, while a 38-mw module facility will be sourced from P. Energy SRL. It could

contact the Economic and Commercial wing of the Indian Embassy in Riyadh by logging on to its

website www.indianembassy.org.sa for customs duties on products exported to Saudi Arabia as well

as other rules and regulations.


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Toyota Motor Corporation

Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC is a

multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation

employed 317,734 people worldwide.TMC is the world's largest automobile manufacturer by sales

and production.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota

Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota

Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the

Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand),

Lexus, Daihatsu and Hino Motors, along with several "non-automotive" companies. TMC is part of

the Toyota Group, one of the largest conglomerates in the world.

Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. Its Tokyo head office

is located at Koraku, Bunkyo-ku, Tokyo 112-8701, and Japan. Nagoya Office at 4-7-1 Meieki,

Nakamura-ku, Nagoya City, Aichi Prefecture. In addition to manufacturing automobiles, Toyota

provides financial services through its Toyota Financial Services division and also builds robots.

Company overview

Toyota headquarters in Toyota City, Japan

Vehicles were originally sold under the name "Toyoda" , from the family name of the company's

founder, Kiichir Toyoda. In September 1936, the company ran a public competition to design a new

logo. Out of 27,000 entries the winning entry was the three Japanese katakana letters for "Toyoda"

in a circle. But Risabur Toyoda, who had married into the family and was not born with that name,

preferred "Toyota because it took eight brush strokes (a fortuitous number) to write in Japanese,

was visually simpler (leaving off the diacritic at the end) and with a voiceless consonant instead of a

voiced one (voiced consonants are considered to have a "murky" or "muddy" sound compared to

voiceless consonants, which are "clear"). Since "Toyoda" literally means "fertile rice paddies",

changing the name also prevented the company being associated with old-fashioned farming. The

newly formed word was trademarked and the company was registered in August 1937 as the

"Toyota Motor Company".

In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g.

Hong Kong and Taiwan. These are the same characters as the founding family's name "Toyoda" in

Japanese, which translate to "fertile rice paddies" in the Chinese language as well.

With over 30 million sold, the Corolla is one of the most popular and best selling cars in the world.

The Toyota Motor Company received its first Japanese Quality Control Award at the start of the

1980s and began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers

in the lucrative US market began turning to small cars with better fuel economy. American car

manufacturers had considered small economy cars to be an "entry level" product, and their small

vehicles employed a low level of quality in order to keep the price low. By the early sixties, the US


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had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax

on imported light trucks. In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co.

began building plants in the US by the early eighties.

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota

Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors calledNUMMI, the New United Motor Manufacturing, Inc, operating an automobile-manufacturing plant in

Fremont, California. The factory was an old General Motors plant that had been closed for two

years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their

luxury division Lexus in 1989.

In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many

larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the

Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the

Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young

adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in 1997.With a

major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set

up TMME, Toyota Motor Europe Marketing & Engineering, to help market vehicles in the continent.

Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had

become very popular among British drivers. Bases in Indiana, Virginia and Tianjin were also set up. In

1999, the company decided to list itself on the New York and London Stock Exchanges.

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which was

accused of corruption by the Japan's government for making bad loans to alleged Yakuza crime

syndicates with executives accused of blocking Financial Service Agency inspections. The UFJ was

listed among Fortune Magazine's largest money-losing corporations in the world, with Toyota's

chairman serving as a director. At the time, the UFJ was one of the largest shareholders of Toyota. As

a result of Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the

Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with

French motoring companies Citron and Peugeot a year after Toyota started producing cars in

France. Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year 2005

but slid to 55 for 2011. The company was number one in global automobile sales for the first quarter

of 2008.

On December 7, 2004, a US press release was issued stating that Toyota would be offering Sirius

Satellite Radios. However, as late as January 27, 2007, Sirius Satellite Radio and XM Satellite radio

kits were not available for Toyota factory radios.[citation needed] While the press release

enumerated nine models, only limited availability existed at the dealer level in the US. As of 2008, all

Toyota and Scion models have either standard or available XM radio kits. Major Lexus dealerships

have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped

satellite radio models.

In 2007, Toyota released an update of its full size truck, the Tundra, produced in two American

factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year," andthe 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new


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factories, one to build the RAV4 in Woodstock, Ontario, Canada and the other to build the Toyota

Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the Toyota

Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The company

has also found recent success with its smaller modelsthe Corolla and Yarisas gasoline prices

have risen rapidly in the last few years.

COMPANY STRATEGY

Toyota's management philosophy has evolved from the company's origins and has been reflected in

the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in

developing. Toyota's managerial values and business methods are known collectively as the Toyota

Way.

In April 2001 the Toyota Motor Corporation adopted the "Toyota Way 2001," an expression of

values and conduct guidelines that all Toyota employees should embrace. Under the two headings of

Respect for People and Continuous Improvement, Toyota summarizes its values and conduct

guidelines with the following five principles:

1) Challenge

2) Improvement

3) Go and see

4) Respect

5) Teamwork

Toyota has grown to a large multinational corporation from where it started and expanded to

different worldwide markets and countries. It displaced GM and became the world's largest

automobile maker for the year 2008. It held the title of the most profitable automobile maker

(US$11 billion in 2006) along with increasing sales in, among other countries, the United States. The

world headquarters of Toyota are located in its home country in Toyota, Aichi, Japan. Its subsidiary,

Toyota Financial Services sells financing and participates in other lines of business. Toyota brands

include Scion and Lexus and the corporation is part of the Toyota Group. Toyota also owns 51% of

Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures Subaru vehicles. They also

acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel

technology into their products.

Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-

electric vehicles, of which it says it has sold 2 million globally as of 2010, Advanced Parking Guidance

System (automatic parking), a four-speed electronically controlled automatic with buttons for power

and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-produced

Lexus and Scion automobiles consistently rank near the top in certain quality and reliability surveys,

primarily J.D. Power and Consumer Reports although they led in automobile recalls for the first time

in 2009.In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company,

produced 8.54 million vehicles, about 500,000 fewer than the number produced by GM that year.


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Toyota has a large market share in the United States, but a small market share in Europe. Its also

sells vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has

significant market shares in several fast-growing Southeast Asian countries.

According to the 2008 Fortune Global 500, Toyota Motor is the fifth largest company in the world.

Since the recession of 2001, it has gained market share in the United States. Toyota's market sharestruggles in Europe where its Lexus brand has three tenths of one percent market share, compared

to nearly two percent market share as the US luxury segment leader.


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Toyota financial crisis

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its

first annual loss in 70 years. In January 2009 it announced the closure of all of its Japanese plants for

11 days to reduce output and stocks of unsold vehicles.

Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing

Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.

Toyota Suffering from Economic Recession in India

It is not only Toyota but also Honda suffering during the time of economic recession in India. I am

not surprised with this news because condition of Indian economy has not been good in the last one

year. Hardly anyone now talks about high economic growth in the country. Export earning suffered a

series of setbacks in 2009 so far. Even in the outsourcing sector, there is less optimism now. In such

a time, most people do not want to think of buying a new car.

Hindu Business wrote:

The two leading Japanese car-makers Honda and Toyota saw the fortunes of their Indian

operations dip in 2008-09, with Honda Siel Cars India Ltd reporting a loss for the year, while Toyota

Kirloskar Motor Pvt Ltd saw its profit fall 41 per cent. The vehicle sales of the two companies fell,

resulting in a drop in income.

Both the companies have said in their annual reports that their operations were affected by the

general economic slowdown, rising input costs and the weakening rupee. I think that both Honda

and Toyota should come with some inexpensive car models just for the Indian market. Maruti andHyundai are successful in Indian market and both of them focus on inexpensive cars.


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TOYOTA STRATEGY FOR INDIA

After a decade of slow movement, the Japanese car manufacturer, Toyota Motors has decided to

sharpen its focus on Indian car market. Toyota has finally turned into energetic mode after a snails

pace of 10 years, where new models were introduced slowly and the portfolio included a handful of

cars. But now Toyota is buzzing with life with recently launched Toyota Corolla Altis, the company

also plans to introduce small car to India. Last year the company forayed into the used car market

with Toyota You Trust outlets in all metro cities.

The hunch in Indian market has hardly affected Toyota brand and 2015, the company plans to gain

10 percent market share. Toyota has introduced vehicles only for premium segment in India-MUV

Innova, Corolla, Camry and Land Cruiser Prado. Innova and Corolla have been very successful

models, while others have made a mark in the niche market. The CNG variants of the existing models

are expected to roll out this year. Toyota also plans to introduce new cars in other segments, which

include a petrol sedan that will compete against Ford Fiesta and Maruti Suzuki SX4 and a hatchback

to compete against Chevrolet Spark, Hyundai Getz and Maruti Suzuki Swift.

Corolla Altis

The first leg of the new plans for Indian market has been realized with the launch of Corolla Altis

(August 2008). The Corolla Altis that is priced between Rs 10.83 lakh to Rs 12.86 lakh will give a tight

competition to Honda Civic. So far it has pinned high hopes on the new launch Corolla Altis and has

set a target of 20,000 cars by 2009. Altis is a premium vehicle takes over from the existing Corolla.

Small car

The small car is an ambitious plan set to take off in 2010 and the construction for the new plant has

already started, near its existing plant in Bangalore. The small car is expected to further strengthen

Toyotas presence in India. The hatchback would also make Toyota engage actively in Indian car

market, where it has been a reluctant player so far.

A statement by Managing Officer, Toyota Motor Corporation, Japan, and Yasuhiko Yokoi said that

the company had understood the Indian car market over the last ten year. The market is tough and

is a major competitive arena for global players. Toyota wants to bring the global quality standards to

Indian market also, for which it has embarked on teaching Indian suppliers the Toyota Production

System. He further added that though the growth rate has fallen to 7 percent in 2008 from 11

percent last fiscal, the company was optimistic about Indian car market. Especially the launch of

hatchback in 2010 is expected to provide handsome returns for large investments made in India. The

company plans to increase the small car production capacity to 2 lakh units per year, from the

current estimated capacity of 1 lakh units.

Despite its few models, Toyota has been a major player in Indian market through its popular vehicles

like Qualis, Innova, Corolla and others. The company has managed to make inroads into Indian

hinterland with its tough vehicle. Achieving the 2015 target will not be a major problem unless the

company plans to roll back its initiatives. Indian car market is encouraging and highly competitive for

major world players. However, infrastructure problems could be the only impediments for which the

company has to chart its own course


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Small cars to drive Toyota brand in

India

World's largest carmaker, Toyota Motor Corporation, has ambitious plans for its new small car Etios,made especially for India. However, it will also be sold in other emerging markets where consumers

are gradually opting for compact cars. Hiroji Onishi, President, Asia-Pacific Region, insists that India

plays a key role in Toyota's global growth strategy. He admits that the company has not been so

aggressive in India so far, but plans to push sales of its newly-launched small cars.

"The Etios platform, both in sedan and hatchback, will make inroads in India and other emerging

markets. It is a futuristic car that is bound to make a dent in similar markets. While the potential is

immense, we believe that the Etios range should ideally account for large proportion of our sales as

we increase our focus on other emerging markets," he says.

Toyota has a marketshare of around 5% in India and the plan is to double the share by 2015.Industry watchers say the company has positioned itself well in the domestic market in terms of

pricing. Its compact car Etios Liva - priced between. 3.99 lakh and.`5.99 lakh (ex-showroom Delhi) -

is the cheapest premium hatchback in India and has notched up over 3,500 bookings within a

fortnight of its launch.

"The sedan, that was developed keeping in view the diverse needs of global customers, has already

gained strong acceptance for its performance, fuel efficiency and design in India. Small cars are

slowly gaining acceptance across the world and India takes lead as world's largest market for such

compact cars,.

Toyota is renewing its strategy for the India. It has followed a top-down approach after launching itsbigger vehicles like Camry sedan and expensive SUVs such as Prado and Land Cruiser. The strategy

met with a fair amount of success, prompting the company to roll out smaller cars like Etios and now

Liva for the local consumers. Toyota plans to increase its portfolio as the global company and hopes

to grab a large slice of the market in emerging economies - Russia , Mexico, Brazil and South Africa -

in the near future.

"The line-up of cars that we have in India is not sufficient to cater to the growing demands of this

market," says Onisha, the chief architect of the company's Asia strategy. He foresees a huge

potential for two categories of cars in India - one at the lower end and cheaper than the Liva and

another in a higher segment. It is also looking at a compact SUV to target young customers in India.

The feasibility of producing quality automobiles in India is not in question anymore, though scale ityet to be fully achieved.

Industry watchers say Toyota's localization strategy has compelled other carmakers, including new

entrants like Volkswagen, to follow suit and make cost-competitive cars here. Honda has already

established a R&D at its Greater Noida plant to bring down its car prices. A two-year effort by its

engineers saw City getting cheaper by Rs 66,000, while the yet-to-be-launched car Brio is expected

to be much cheaper than the originally planned price of Rs 5 lakh. Toyota claims it has set new

benchmarks for all other global carmakers in India, both in terms of price and quality. Even the

largest carmaker Maruti Suzuki is feeling the heat now as the (base price) of Liva is lower than

Maruti's Swift.

So, the psychological price advantage of Swift, whose base model is priced at Rs 4.09 lakh, may nolonger be there. The hatchback segment that is the fastest-growing category in the country's 2.5-


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million passenger car market. And competition is intensifying, with companies launching new

models. After Liva, Honda's Brio, also developed for the Indian market, is set to be launched in

September this year. However, Toyota does not seem to be worried about yet another competitor.

The reason being the steady sales of most of its cars. This is in contrast to the rest of the world

where serious quality concerns have dented Toyota's sales. There has been a recall of over 14 million

of its vehicles worldwide.The company's US subsidiary is reported to have announced a recall of 82,200 hybrid vehicles due to

some flaws on the computer boards last month. However, there has been no recall of the cars sold

in India. Around 5-million cars are expected to be sold in the country by 2015. On its part, Toyota

plans to ramp up production to 2.1 lakh cars by 2012 and beyond, aiming at a 10% marketshare.

But India is a buoyant market for us. There has been strong acceptance of Etios, based on its

performance, efficiency and design. The car has been developed keeping in view diverse needs of

customers across various geographies,


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SAMSUNG ELECTRONICS

Samsung Electronics is the world's largest electronics company with a 2009 revenue of $117.4

billion, headquartered in Samsung Town, Seoul, South Korea. It is the flagship subsidiary of the

Samsung Group. With assembly plants and sales networks in 65 countries across the world, Samsung

has as many as 157,000 employees.

In 2009, the company took the position of the worlds biggest IT maker by surpassing the previous

leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and computer chips is

number one in the world.

In the TV segment, Samsungs market position is dominant. For the four years since 2006, the

company has been in the top spot in terms of the number of TVs sold, which is expected to continue

in 2010 and beyond. In the global LCD panel market, the company has kept the leading position for

eight years in a row. With the Galaxy S model, Samsungs Smartphone lineup has retained the

second-best slot in the world market for some time. In competition to Apple's iPad tablet, Samsung

released the Android powered Samsung Galaxy Tablet.

History

Samsung Group headquarters at Samsung Town, Seoul.

Samsung Electronics was founded in 1969 in Daegu, South Korea as Samsung Electric Industries,

originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners

and washers. By 1981, the company had manufactured over 10 million black and white TVs. In 1988,

it merged with Samsung Semiconductor & Communications. It is noteworthy that Samsung

Electronics has grown in leaps and bounds in a business notorious for cyclical fluctuations. Founded

in 1938 as a food processing and textile purveyor, the parent group entered the electronic business

as late as in 1969 when it created under its wings an electronic component subsidiary. It was a

decision made after considering the fast-growing domestic demand for electronic goods.

Just one year after its founding, the Samsung Group established in 1970 another subsidiary

Samsung-NEC jointly with Japans NEC Corp. to manufacture electric home appliances and audio-

visual devices. In 1974, it expanded into the semiconductor business by acquiring Korea

Semiconductor, one of the first chip-making facilities in the country at the time. It was soon followed

by the 1980 acquisition of Korea Telecommunications, an electronic switching system producer.

In February 1983, Samsungs founder Lee Byung-chull made an epoch-making announcement,

dubbed the Tokyo declaration, that his company would enter the DRAM (dynamic random access

memory) business. And only one year after the declaration did Samsung became the third company

in the world that developed the 64k DRAM after the United States and Japanese predecessors. The

march from then onward as the pioneer in the memory chip-making industry has continued to this


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day for almost three decades. Although Samsung Electronics was already one of the biggest

companies in Korea as early as the 1990s, it now is by far the most important company with

unrivalled influence on the economy through a large network of supplier and partner companies as

well as through its own revenue-generating power Global consumers brand recognition of Samsung

Electronics has increased steadily: According to the top-100 brand list compiled by Millward Brown,

the British brand consultancy, Samsung, ranked at 68th on its list, was one of the worlds most

valuable brands whose growth has been most pronounced during the 2009-2010 period. Its brand

value, estimated at as much as US$1.1 billion, grew by 80 percent. (For more on this, refer to the

April 28, 2010 FT news article Big names prove worth in crisis)

In the Worlds Most Reputable Companies 2010 ranking published by Reputation Institute of the

United States, Samsung was placed at 22nd, a large advancement from the previous years 74th. This

ranking, compiled by the U.S. consulting company since 2006, reflects survey results collected from

consumers in 24 different countries for global 600 large corporations in terms of annual revenue and

its GDP share in respective countries. The respondents answer questions in seven categories

including products and services, innovativeness, work conditions, corporate governance, social

responsibility, leadership, and financial performance. (For details, read Worlds Most Reputable

Companies, Forbes, May 24, 2010)

Samsung was also ranked 11th in the 50 Most Innovative Companies 2010 list put out by Business

Week, a five-notch increase from the previous years 16th. The ranking, collated jointly by the U.S.

weekly magazine and Boston Consulting Group since 2005, is based on answers to innovation-

related survey questions asked to executives of global corporations. While survey answers take an

80-percent weight to the compilation of the ranking, the remaining 20 percent is accounted for by

annual share appreciation (10%) and three-year average sales revenue and profit margin (5% each),

respectively.

Samsungs 2010 Smartphone shares worldwide are rising rapidly. The share in the United States has

doubled in the second quarter of the year from the previous quarter. In the second quarter the

company shipped as many as 3 million Smartphone, a 173-percent increase from the same period

last year.

While many other handset makers tend to focus on supporting one (or at most two) operating

system, Samsung has kept supporting a wide range of operating systems in the market. Although the

Galaxy S adopts Google Android as the primary operating system, it also supports other competing

operating systems such as Symbian, Microsoft Windows Phone, Linux-based LiMo, and Samsungs

proprietary Bada.

The company set the sales goal of the 2010 yearend at 20 million units.

Samsung faces challenges in the phone market. An alliance of Chinese low wage and Taiwanese

technology is catching up closely. Smartphone makers such as Apple, RIM, and HTC are busy coming

up with new models, and Samsung is working to maintain its top position.


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Financial crisis

Financial crisis, the company has become more powerful: While most other high-tech companies

were hit by cash-flow problems after the crisis, Samsung could avoid financial difficulties by broad-based structural reforms.

After the crisis subsided, Samsung emerged as a global corporation. For four consecutive years from

2000 to 2003, it posted more than 5-percent net earnings when 16 large conglomerates out of 30

top companies of the nation went out of business in the wake of the unprecedented crisis.

In 2009, the year of worldwide recession due to the 2008 global credit crisis, Samsungs sales

revenue rose 27 percent from the previous year, the biggest increase in the industry. In the home

market, Samsung held the leading position thanks to strong sales of its flagship items, Zipel-brand

side-by-side and kimchi refrigerators. In the North American, European, and Russian markets, it

solidified its image as a premier home appliance maker by selling so many refrigerators, washing

machines, air-conditioners, as well as new steam microwave ovens and robot vacuum cleaners.

In a market clearly split into two extremes of upmarket and budget categories, Samsung employs a

two-pronged strategy to emphasize its premium image for affluent consumers while marketing

lower-end items with fewer bells and whistles for emerging economies consumers.


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HINDUSTHAN UNILEVER LTD


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HINDUSTHAN UNILEVER LIMITED

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 marketingbranded 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 52.10% equity in

the company. The rest of the shareholding is distributed among about 360,675 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 beenaccompanied by judicious diversification, always in line with Indian opinions and aspirations.

The liberalisation 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 1996, HUL and yet another Tata

company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's

market-leading cosmetics and other appropriate products of both the companies. Subsequently in1998, 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, Unilever Nepal Limited (UNL), and its factory represents the largest

manufacturing investment in the Himalayan kingdom. The UNL 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


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interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the

Dollops Ice cream 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 1994, Brooke Bond India and Lipton India merged

to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in thetraditional 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 Ice cream

Group families and in 1995 the Milk food 100% Ice cream 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, Speciality 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.

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.HUL launched a slew of new

business initiatives in the early part of 2000s. Project Shakti was started in 2001. It is a ruralinitiative that targets small villages populated by less than 5000 individuals. It is a unique win-win

initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000

Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million

homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product

range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was

launched in 2003 and this was followed by the launch of Pure it water purifier in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the

approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel


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breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the

Rs.2,000 crore sales milestone in 2008.On 17th October 2008 , HUL completed 75 years of corporate

existence in India.


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HUL STRATEGIES IN INDIA

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The Anglo-

Dutch company Unilever owns a 52% majority stake.HUL was formed in 1933 as Lever Brothers India

Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers,

Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and

has employee strength of over 15,000 employees and contributes to indirect employment of over

52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its

products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in

India. It estimates that two out of three Indians use its many home and personal care products, food

and beverages

Leadership

HUL has produced many business leaders for corporate India; one of these, Harish Manwani, has

become a member of Unilever's Executive (UEx).

HUL's leadership-building potential was recognized when it was ranked 4th in the Hewitt Global

Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce

leaders with such regularity

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


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consumers using its products. Sixteen of HULs brands featured in the ACNielsen Brand Equity list of

100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest

number of brands in the Most Trusted Brands List. It has consistently had the largest number of

brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Itsbrands include Kwality

Wall's ice cream, Knorr soups & meal makers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam

and Moti soaps, Pure it water purifier, Lipton tea, Brooke Bond (3 Roses, Taj Mahal, Taaza, Red

Label) tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel

laundry detergents, Kissan squashes and jams, Annapurna salt and Atta, Pond's talcs and creams,

Vaseline lotions, Fair and Lovely creams, Lakm beauty products, Clear, Clinic Plus, Clinic All Clear,

Sunsilk and Dove shampoos, Vim dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe

deosprays and Comfort fabric softeners.


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Surf Excel

Surf Excel was introduced in 1959

When children go out to play and get dirty, they don't just collect stains. They experience life, make

friends, share with each other and learn from each other. This helps them get stronger and get ready

for the world outside. A pioneer in the Indian detergent powder market, Surf Excel has constantly

upgraded itself over the years, to answer the constantly changing washing needs of the Indian

homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range of stains. Thismeans that mothers now have the freedom to let their kids experience life without worrying about

stains.

Surf Excel quick wash is powered with a path-breaking technology- it reduces water consumption

and time taken for rinsing by 50%. It is a significant benefit, given the acute water scarcity in most of

India.

Key Facts

Surf Excel Quick Wash Detergent Powder

Surf Excel Blue Detergent Powder


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Surf Excel Detergent Bar

Surf Excel Gentle Wash

Surf Excel Matic Top Load

Surf Excel Quick Wash Detergent Powder


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Active Wheel

Indias largest detergent brand, Wheel, aims to bring delight back into the lives of lacs of women

across India, by giving them a magical wash experience of lemons and thousands of flowers. The

New Wheel is an offering to lakhs of women across India, transforming even as tedious a chore as

laundry into a delightful experience that lifts her spirits for the day to come. As the largest laundry

brand in the country, Wheel touches the lives of more than 1 in 2 Indian households.

The brand is available in three formats,

1) Powders 2) Bars 3) Laundry Soaps

The powder is available in three variants with delightful fragrances,

1) Active Wheel Lemon & Orange2) Active Wheel Lemon & Jasmine3) Active Wheel Gold

Key Facts

Benefits after marketing over the product

1) The largest selling detergent brand in India.

2) Used by over 1 in 2 households in India

3) Famous for using Bollywood stars as its Brand Ambassadors.


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The Range in wheel are:-

Active Wheel Blue Bar

Active Wheel Lemon & Orange

Active Wheel Lemon & Jasmine

Active Wheel Green Bar


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Sunlight

A dash of pink, a splash of yellow, a hint of purple and a bit of orange. Colours can liven up any

wardrobe and can make you look and feel precious and if theres one detergent brand thats

committed to colour care, its Sunlight.

Sunlight keeps your clothes sparkling clean besides keeping the colours bright for long and

preventing any colour loss. Thats why its patrons have elevated it to the status of the No. 1 brand in

the states it is present in, Bengal and Kerala

Key Facts

1) First Brand of unilever in India2) No 1 brand in Kerala and West Bengal

Documents

FINAL Jj Project