A

project report on HUL

Introduction to HUL
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Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company, touching the lives of two out of three Indians with over 20
distinct categories in Home & Personal Care Products and Foods & Beverages.
The company’s Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010)

HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast

moving consumer goods with strong local roots in more than 100 countries across
the globe with annual sales of about €40 billion in 2009 Unilever has about 52%
shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in
the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt
Associates, in partnership with Fortune magazine and the RBL Group. The
company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over
1,400 managers, is to 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.  It is a mission
HUL shares with its parent company, Unilever, which holds about 52 % of the
equity.

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

company, touching the lives of two out of three Indians with over 20 distinct
categories in home & personal care products and food & beverages. They endow
the company with a scale of combined volumes of about 4 million tonnes and sales
of over Rs. 13,000 crores[citation needed]. 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.

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 an employee strength of over 15,000 employees and contributes for
indirect employment of over 52,000 people. The company was renamed in June
2007 to “Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for
the past 25 years by Businessworld, one of India’s leading business magazines.[2]
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The rating was based on a compilation of the magazines annual survey of India’s
Most Reputed Companies over the past 25 years. 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. It has over 35 brands. Sixteen of HUL’s brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual
Survey (2008).[3] According to Brand Equity, HUL has the largest number of
brands in the Most Trusted Brands List. It’s a company that has consistently had
the largest number of brands in the Top 50 and in the Top 10 (with 4 brands).

Hindustan Unilever's distribution covers over 1 million retails outlets across India
directly and its products are available in over 6.3 million outlets in India, i.e.,
nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out
of three Indians use the company’s products and HUL products have the largest
consumer reach being available in over 80 per cent of consumer homes across
India.

The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan

Unilever Limited. HUL was one of the eight Indian companies to be featured on
the Forbes list of World’s Most Reputed companies in 2007.

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 Hindustan Unilever Limited

Type Public company BSE:HUL

Industry Fast Moving Consumer Goods FMCG)
Founded 1933
Headquarters Mumbai, India
Harish Manwani (Chairman), Nitin Paranjpe (CEO and
Key people
Managing Director)
Products Home & Personal Care, Foods, Water Purifier
Revenue Rs 20,869.57 crore (US$ 4.45 billion) (2008-2009) [1]
Employees Over 65,000 direct & indirect employees
Parent Unilever Plc
Website www.hul.co.in

History
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 marketing branded Fast Moving Consumer
Goods (FMCG).

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  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 been accompanied 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,

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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 in 1998, 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 interests in Instant Coffee. In 1993, it
acquired the Kissan business from the UB Group and the Dollops Icecream
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 the traditional
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 Icecream Group families and in 1995 the Milkfood 100% Icecream
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

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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 2000’s.
Project Shakti was started in 2001. It is a rural initiative 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 ‘Pureit’ 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 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.

Brands

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Wheel Detergent ad in rural Nepal area.

The company has a distribution channel of 6.3 million outlets and owns 35 major
Indian brands. Some of its brands include Kwality Wall's ice cream, Knorr soups &
meal makers, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit
water purifier, Lipton tea, Brooke Bond 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, Lakmé beauty products, Clinic Plus, Clinic All
Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach, Domex
disinfectant, Rexona, Modern Bread, and Axe deosprays.

Leadership
HUL has produced many business leaders for corporate India, one of these,
Manvinder Singh Banga has become a member of Unilever's Executive (UEx).
HUL is referred to as a 'CEO Factory' in the Indian press for this reasonIt'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.

Mission
Unilever's mission is to add Vitality to life.

Present Stature
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, and estimates that two out of three Indians use its products. It has over
42 factories across India.

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.[citation needed]

The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has
facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in

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India have over 200 highly qualified scientists and technologists, many with post-
doctoral experience acquired in the US and Europe.

HUL also renders services to the community, focusing on health & hygiene
education, empowerment of women, and water management. It is also involved in
education and rehabilitation of underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded to national
calamities, for instance with relief and rehabilitation after the 2004 tsunami caused
devastation in South India.

In 2001, the company embarked on a programme called Shakti, through which it

creates micro-enterprises for rural women. Shakti also includes health and hygiene
education through the Shakti Vani Programme, which now covers 15 states in
India with over 45,000 women entrepreneurs in 135,000 villages. 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. So far it has reached 120 million people in over 50,000
villages.

Controversy 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.

Board of Directors
The Board of Directors as repositories of the corporate powers act as a guardian to
the Company as also the protectors of shareholder’s interest.

This Apex body comprises of a Non- Executive Chairman, four whole time
Directors and five Independent Non – Executive Directors. The Board of the
Company represents the optimum mix of professionalism, knowledge and
experience.

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Mr. Harish Manwani - Chairman

Mr. Harish Manwani (55), assumed charge as the Non-Executive Chairman of the
Company with effect from 1st July, 2005.

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. Nitin Paranjpe (46), after obtaining a degree in BE (Mechanical) and MBA in
Marketing (JBIMS) from Mumbai, joined the Company as a management trainee
in 1987.

Mr. R. Sridhar - Chief Financial Officer

Mr. Sridhar Ramamurthy (45) is a Chartered Accountant (Gold Medallist) as well

as a Cost Accountant and Company Secretary.

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Mr. Gopal Vittal - Executive Director, Home & Personal Care

Mr. Gopal Vittal (42), an alumnus of Madras Christian College, completed his
MBA from IIM, Calcutta. Mr. Vittal has 18 years experience in Marketing & Sales
in FMCG market including Skin Care, Soaps and Laundry.

Mr Pradeep Banerjee - Executive Director, Supply Chain

Mr Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980. 

Mr. D. S. Parekh - Independent Director

Mr. D. S. Parekh (64), is a B.Com graduate and holds a FCA degree from England
and Wales. Mr. Parekh has held senior positions in Grindlays and Chase
Manhattan.

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Mr. A. Narayan - Independent Director

Mr. A. Narayan (57), joined ICI India as a Management Trainee in 1973 and grew
through diverse functions and businesses before being appointed as the Managing
Director of ICI India in 1996.

Mr. S. Ramadorai - Independent Director

Mr. S. Ramadorai (64), is the Chief Executive Officer and Managing Director of
Tata Consultancy Services Limited; Chairman of Tata Technologies Limited and
Chairman of CMC Limited.

Dr. R. A. Mashelkar - Independent Director

Dr. R. A. Mashelkar (66), is presently the President of Global Research Alliance, a

network of publicly funded R&D institutes from Asia-Pacific Europe and USA.

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Management Committee
The day-to-day management of affairs of the Company is vested with the
Management Committee which is subjected to the overall superintendence and
control of the Board.

The Management Committee is headed by Mr. Nitin Paranjpe and has functional
heads as its members representing various functions of the Company

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. Nitin Paranjpe (46), after obtaining a degree in BE (Mechanical) and MBA in
Marketing (JBIMS) from Mumbai, joined the Company as a management trainee
in 1987.

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Mr. R. Sridhar - Chief Financial Officer

Mr. Sridhar Ramamurthy (45) is a Chartered Accountant (Gold Medallist) as well

as a Cost Accountant and Company Secretary.

Mr. Shreejit Mishra - Executive Director, Foods

Mr. Shreejit Mishra (44), joined HUL on June 1st 1987. His 20 year experience in
the company comprises of stints in General Management, Marketing Innovation
and Activation, Brand & Services Development, Sales Management and Project
Management.

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Mr. Gopal Vittal - Executive Director, Home & Personal Care

Mr. Gopal Vittal (42), an alumnus of Madras Christian College, completed his
MBA from IIM, Calcutta. Mr. Vittal has 18 years experience in Marketing & Sales
in FMCG market including Skin Care, Soaps and Laundry.

Mr. Hemant Bakshi - Executive Director

Mr. Hemanth Bakshi (44) joined the Company in June 1989 and has worked in
various sales and marketing assignments spanning across Personal Products and
Home Care categories.

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Mr Pradeep Banerjee - Executive Director, Supply Chain

Mr Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980. 

Ms. Leena Nair - Executive Director, HR

Ms. Leena (40) is an Electronic Engineer who discovered her passion for people
and HR and switched lanes. She is a gold medalist and MBA in HR from XLRI,
Jamshedpur.

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