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INDUSTRY REVIEW

Description

Hindustan Unilever Limited (HUL) is one of the largest fast moving consumer goods

company in India. The company, a subsidiary of Unilever, sells Foods and Home and

Personal Care brands in about 100 countries worldwide. The company, along with its

subsidiaries, is engaged in the production and distribution of soaps and detergents,

personal products, beverages, foods, ice creams, exports and others products such as

chemicals and agri products. The major brands of the company include Lux, Hamam,

lifebuoy, Dove, RIN, Surf, Wheel, Sunlight, Vim, Fair & Lovely, Clinic Plus, Sun Silk,

Close-up, Pepsodent, Lakme, Brook Bond and others.

Global Markets Directs Hindustan Unilever Limited - Financial and Strategic Analysis

Review is an in-depth business, strategic and financial analysis of Hindustan Unilever

Limited. The report provides a comprehensive insight into the company, including

business structure and operations, executive biographies and key competitors. The

hallmark of the report is the detailed strategic analysis of the company. This highlights its

strengths and weaknesses and the opportunities and threats it faces going forward.

Scope

Provides key company information for business intelligence needs

The companys strengths and weaknesses and areas of development or decline are

analyzed. Financial, strategic and operational factors are considered.

The opportunities open to the company are considered and its growth potential

assessed. Competitive or technological threats are highlighted.

The report contains critical company information business structure and

operations, the company history, major products and services, key competitors,

key employees and executive biographies, different locations and important

subsidiaries.

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The report provides detailed financial ratios for the past five years as well as

interim ratios for the last four quarters.

Financial ratios include profitability, margins and returns, liquidity and leverage,

financial position and efficiency ratios.

Reasons to Buy

A quick one-stop-shop to understand the company.

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Identify prospective partners and suppliers with key data on their businesses and

locations.

Capitalize on competitors weaknesses and target the market opportunities

available to them.

Compare your companys financial trends with those of your peers / competitors.

Scout for potential acquisition targets, with detailed insight into the companies

strategic, financial and operational performance.

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COMPANY PROFILE

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company, with leadership in Home & Personal Care Products and Foods & Beverages.HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out

of three Indians. They endow the company with a scale of combined volumes of about 4

million tonnes and sales of nearly Rs.13,718 crores. The mission that inspires HUL's over

15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets

everyday needs for nutrition, hygiene, and personal care with brands that help people feel

good, look good and get more out of life. It is a mission HUL shares with its parent

company, Unilever, which holds 51.55% of the equity.The rest of the shareholding is

distributed among 360,675 individual shareholders and financial institutions. A Fortune

500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100

countries worldwide.

HUL is also one of the country's largest exporters; it has been recognised as a Golden

Super Star Trading House by the Government of India.

Over time HUL has developed into a viable & competitive sourcing base for Unilever

world wide in Home and Personal Care & Foods & Beverages category of products. HUL

is also a global marketing arm for select licensed Unilever brands and also works on

building categories with core country advantage such as branded basmati rice.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured over 40 factories across India. The operations involve

over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000

redistribution stockists, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers.

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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.

In 2001, the company 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 program now covers 15 states in

India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 plus

villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti

aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives

of over 600 million people.

HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The

programme endeavours to induce adoption of hygienic practices among rural Indians and

aims to bring down the incidence of diarrhoea. It has already touched 84.6 million people

in approximately 43890 villages of 8 states. The vision is to make a billion Indians feel

safe and secure.

If Hindustan Unilever 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.

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SWOT ANALYSIS

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Strengths

Largest organizations

Advanced technologywell skilled professionals

Good distribution network all over world

Unilever provided creative strategies

Strong marketing and good image creation

Wide distribution channels in both national and internal

markets

Decentralized decision-making

Weaknesses

Competitors offered better alternative product

Dual co-chair approach and dual company structure

create problems

Lack of high volume brands

Slow sales growth compared with the competitors.

Low cash flow

Opportunities

Rural areas are a large prospective market

Employing external job applicants

Gain high market share

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Introducing new distribution channel

Advertising through e-commerce

Promote its products in new geographic areas

Customer base is increasing with effective marketing

Threats

Product innovation is ineffective

The high competition for market share

increases rapidly

Changes of peoples lifestyle

Political and Economic factors

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Competitor Analysis

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Competitor Comparison

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Competitive Profile Matrix

(unilever)