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Know Your Company HUL
A B-Gyan Initiative 1
INTRODUCTION
Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company. Unilever which owns a 52% controlling share in HUL. HUL's products include foods, beverages, cleaning agents and personal care products.
HUL was established in 1933 as Lever Brothers India Limited and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers whilst also indirectly helping to facilitate the employment of over 65,000 people.[3] The company was renamed in June 2007 as "Hindustan Unilever Limited"
Hindustan Unilever's distribution covers over 2 million retail outlets across India
directly and its products are available in over 6.4 million outlets in the country. As
per Nielsen market research data, two out of three Indians use HUL products.
Two R&D centres in India in Mumbai and Bangalore. Over 42 factories across India.
COMPANY INFORMATION
Founded in: 1933 as Lever Brothers India Limited 1956, became Hindustan Lever Limited, as a result of a merger . between Lever Brothers Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.
Head Quarters: Mumbai, Maharastra, India Industry/Product: Consumer Goods Key people: Harish Manwani (Chairman)
Sanjiv Mehta (CEO and MD) Employees: 16,500 (2011)
VISION
We're constantly developing our brands and products to keep pace with the changes
in consumers lives.
Know Your Company HUL
A B-Gyan Initiative 2
FINANCIALS
Know Your Company HUL
A B-Gyan Initiative 3
BUSINESS MODEL
PRODUCT PORTFOLIO
Food Brands
Annapurna salt and atta, Modern bread
Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea, Lipton tea, Bru coffee
Kissan squashes, ketchups, juices and jams
Knorr soups & meal makers and soupy noodles,
Magnum, Kwality Wall's frozen dessert
Personal Care Brands
ActiveWheel detergent, Cif Cream Cleaner, Comfort fabric softeners
Domex disinfectant/toilet cleaner, Rin detergents and bleach
Sunlight detergent, Surf Excel detergent
Vim dishwash, Magic – Water Saver
Home Care Brands
Axe, Breeze beauty soap, Clear anti-dandruff hair products
Clinic Plus shampoo and oil, Close Up toothpaste
Know Your Company HUL
A B-Gyan Initiative 4
Dove, Denim shaving products, Fair & Lovely, Hamam
Lakmé beauty products and salons, Lifebuoy soaps and handwash range
Liril 2000 soap, Lux , Pears soap, Pepsodent toothpaste, Pond's
Rexona soap, Sunsilk shampoo, Sure anti-perspirant
Water Purifier
Pure It
SWOT ANALYSIS
Strengths
More than 50 years of operation Sales are 5 to 6 times that of Dabur, P&G and
GodrejExtensive product innovation through R&D for 51
yearsBusiness optimisation & integration of suppliers
and distributers through ITVery high returns e.g. ROA, ROC and RON
Weaknesses
Profitability margin parameters are low compared to ITC, P&G, Dabur, Marico and
Godrej
Expenditure is 85% of sales (16% Advertising Expense)
More emphasis on power brands
Opportunities
Huge Rural Market
Increased purchasing power of middle class
Growth of other segments e.g. food
New markets e.g. Ayurvedic products
Export advantage
Threats
Huge players both Domestic & International
Inflation is reducing buying power
Price rise
Stiff competition with ITC
Counterfeit products in rural areas
Know Your Company HUL
A B-Gyan Initiative 5
PORTERS FIVE FORCES
RECENT NEWS
• Nifty at record high; HUL, M&M lead rally with 8% gains http://www.moneycontrol.com/news/local-markets/nifty-at-record-high-hul-mm-lead-rally8-gains_1158535.html?utm_source=ref_article
• HUL Rejigs Management Committee, Reorganizes Business http://profit.ndtv.com/news/corporates/article-hul-rejigs-management-committee-reorganizes-business-632265
• HUL beats Q1 Profit Estimates; Volume Growth Lifts Shares
http://profit.ndtv.com/news/corporates/article-hul-beats-q1-profit-estimates-
volume-growth-lifts-shares-594989
• HUL in Premium Drive to Boost Sales Growth
http://profit.ndtv.com/news/corporates/article-hul-in-premium-drive-to-
boost-sales-growth-574547
Threat of New Entrants
Time and cost of entryEconomies of scale
Technology protectionBarriers to entryCost Advantage
Industry Rivalry
Number of customersQuality Differences
Switching costsCustomer loyalty
Cost of leaving market
Bargain Power of Suppliers
Number of suppliersSize of supplier
Cost of changingAbility to change
Bargain power of Buyers
Number of customersSize of order
Price sensitivityCost of charging
Ability to substitute
Threat Of Substitutes
Substitute performance
Cost of change
Know Your Company HUL
A B-Gyan Initiative 6
SUPPLY CHAIN
HUL’s products are distributed through a network of 4000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. There are 35 C&FAs in the country who feed these redistribution stockists regularly. HUL provides tailor made services to each of its channel partners. It has developed customer management and supply chain capabilities for partnering emerging self service stores and supermarkets. Around 2000 suppliers and associates serve HUL’s 40 manufacturing plants which are decentralized across 2 million square miles of territory
HULCarrying & Forwarding
Agents
Redistribution Stocklist
WholesalersRural/Urban
RetailersConsumers
