CHAPTER I

INTRODUCTION

INTRODUCTION OF FINANCE

Every economy is based on finance, which provides the vitality that promotes investment,
growth, and prosperity. Basically, finance is the study of how people, organizations, and governments
manage their financial resources, including how they raise, distribute, and use money. It covers a wide
range of tasks, from capital markets, banking, and corporate finance to individual investment planning
and budgeting.

Finance is essential to the facilitation of economic activity in today's globalized world because
it provides the capital that companies need to grow, innovate, and create jobs. In order to maximize
returns while successfully controlling risks, it involves the analysis of financial markets, tools, and
institutions. Furthermore, finance plays a significant role in determining public policy, as well as
interest rates, inflation, and currency exchange rates, all of which have an effect on the general stability
and well-being of economies.

Gaining a grasp of finance fundamentals is crucial for both individuals and organisations,
whether they are planning for retirement or obtaining funds for a new enterprise. Individuals and
corporations can guarantee their future prosperity and reach their financial goals by utilising a variety
of financial tools and methods along with making well-informed financial decisions.

DEFINITION OF FINANCE

Finance is the administration of assets and money, involving the procurement, distribution, and
application of financial resources. It includes managing financial resources in a broad sense, including
lending, borrowing, investing, budgeting, and risk management. In addition to affecting individual
financial decisions, finance is a significant factor in both personal and professional contexts. It also
influences the operations and policies of enterprises and governments. In the end, finance seeks to
balance risk and return considerations while optimizing resource allocation to meet certain financial
goals.

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 At its core, finance seeks to optimize the allocation of scarce resources to maximize value and
achieve specific objectives. Whether it's individuals planning for retirement, corporations raising
capital for expansion, or governments funding public projects, finance provides the tools and
frameworks necessary to make informed decisions in the face of uncertainty. Through principles of
valuation, portfolio management, and financial modeling, finance professionals strive to enhance
efficiency, mitigate risks, and generate returns in a constantly evolving financial landscape. By
understanding the intricacies of finance, individuals and organizations can navigate complex financial
environments to achieve their long-term financial goals.

SCOPE OF FINANCIAL MANAGEMENT

Financial management involves a wide range of activities aimed at efficiently managing

financial resources, optimizing decision-making processes, and ensuring the long-term financial
sustainability and success of an organization. The following are some of the important scope of
financial management.

1. Financial Planning: Developing strategies to achieve financial goals and objectives over a
specific time frame.

2. Budgeting: Creating budgets to allocate resources effectively and efficiently across different
activities and departments within an organization.

3. Investment Decisions: Evaluating and selecting investment opportunities that generate

returns while managing risks.

4. Risk Management: Identifying, assessing, and mitigating various financial risks such as
market risk, credit risk, liquidity risk, and operational risk.

5. Capital Structure Management: Determining the optimal mix of debt and equity financing
to fund operations and growth initiatives while minimizing the cost of capital.

6. Financial Analysis: Analyzing financial statements, ratios, and other metrics to assess the
financial performance and health of an organization.

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 7. Performance Evaluation: Monitoring and evaluating the effectiveness of financial strategies
and decisions through key performance indicators (KPIs) and benchmarks.

8. Cash Flow Management: Managing cash inflows and outflows to ensure sufficient liquidity
for day-to-day operations and to meet financial obligations.

9. Financial Reporting: Preparing accurate and timely financial reports in accordance with
regulatory requirements and accounting standards to provide transparency to stakeholders.

OBJECTIVES OF FINANCIAL MANAGEMENT

The objectives of financial management are primarily focused on maximizing shareholder wealth
and ensuring the financial health and sustainability of the organization. These objectives can be
summarized as follows:

1. Maximizing Shareholder Wealth: By making decisions that increase the value of the
company's stock and maximize returns to shareholders.

2. Optimizing Profitability: By efficiently allocating resources and managing costs to generate

profits.

3. Ensuring Liquidity: By maintaining sufficient cash and liquid assets to meet short-term
obligations and unexpected expenses.

4. Minimizing Risk: By identifying, assessing, and managing financial risks to protect the
organization's assets and enhance stability.

5. Achieving Growth: By investing in profitable opportunities and expanding operations to

increase revenue and market share.

6. Maintaining Financial Health: By managing debt levels, capital structure, and financial
ratios to ensure long-term solvency and sustainability.

7. Enhancing Stakeholder Value: By considering the interests of various stakeholders,

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 including employees, customers, suppliers, and creditors, while making financial decision.

8. Efficient allocation of resources: Ensuring that funds are allocated in a manner that
maximizes returns, considering factors such as risk, opportunity cost etc.
9. Financial reporting and compliance: Ensuring accurate and timely disclosure of financial
information in accordance with regulatory requirements and accounting standards to provide
transparency to stakeholders and maintain compliance with laws and regulations.

INTRODUCTION OF HINDUSTAN UNILEVER LIMITED

One of the biggest consumer products corporations in India, Hindustan Unilever Limited (HUL)
has a rich and distinguished tradition spanning more than eight decades. HUL, a division of the
multinational company Unilever, is a household name in India, having a daily impact on the lives of
millions of people. With a wide range of products that include meals, beverages, personal care, and
home care, the corporation is a major player in almost every aspect of customers' lives.

Motivated by a dedication to social responsibility, sustainability, and innovation, HUL has

constantly led the industry with ground-breaking goods and programmes. Its extensive distribution
network makes it possible to reach even the most remote areas of India, which adds to its success and a
wide audience. In addition to its commercial activities, HUL actively participates in community
development initiatives with an emphasis on health, hygiene, and education. This helps to establish the
company's reputation as a reliable partner in India's progress and prosperity.

Beyond its business pursuits, HUL is firmly established in India's social fabric and actively
supports programmes for empowerment and community development. Millions of people have
benefited from the company's signature initiatives in fields like health, hygiene, and education, which
have a real impact on the lives of underprivileged groups all throughout the nation. HUL's constant
commitment to corporate social responsibility has solidified its standing as an ethical corporate citizen
and elevated it to a position of significance for many in India.

MISSION

Hindustan Unilever Limited (HUL) is committed to enhancing the quality of life of people

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everywhere, every day. Through our wide range of high-quality products and services, we aim to meet
the diverse needs of consumers, while simultaneously creating value for our shareholders, employees,
business partners, and communities. We strive to be a responsible corporate citizen, promoting
sustainability, inclusivity, and innovation in everything we do.

At the core of its mission, HUL seeks to create a brighter future by empowering people to live
healthier, happier lives. By addressing global challenges such as climate change, poverty, and
inequality, HUL endeavors to build a more inclusive and sustainable world. Through its diverse
portfolio of brands spanning personal care, home care, foods, and refreshments, HUL remains
dedicated to delivering value to consumers while upholding its commitment to ethical and responsible
business conduct.

VISION

Our vision at HUL is to be the most trusted and admired company in India, renowned for our
integrity, excellence, and social impact. We aspire to lead the FMCG industry by continuously
innovating and delivering superior value to our consumers, while simultaneously contributing to the
well-being of society and the planet. By fostering a culture of collaboration, diversity, and continuous
improvement, we aim to create a brighter future for generations to come.

At the core of its mission, HUL seeks to create a brighter future by empowering people to live
healthier, happier lives. By addressing global challenges such as climate change, poverty, and
inequality, HUL endeavors to build a more inclusive and sustainable world. Through its diverse
portfolio of brands spanning personal care, home care, foods, and refreshments, HUL remains
dedicated to delivering value to consumers while upholding its commitment to ethical and responsible
business conduct.

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 CHAPTER II
REVIEW OF LITERATURE

RATAN TATA (BUSINESS MAGNATE):

"HUL's resilience in navigating market challenges while maintaining a commitment to excellence

is truly commendable. Their ability to innovate and adapt to changing consumer preferences has
solidified their position as a leader in the FMCG sector."

NARENDRA MODI (PRIME MINISTER OF INDIA):

"HUL's contributions to India's economic growth and social development are noteworthy. Their
extensive reach and diverse product portfolio have played a significant role in improving the lives of
millions across the country."

SATYA NADELLA (CEO, MICROSOFT):

"HUL's innovative marketing strategies and digital transformation efforts have set industry
benchmarks for consumer engagement and brand loyalty. Their ability to leverage technology to
connect with consumers in meaningful ways is truly impressive."

MALALA YOUSAFZAI (NOBEL LAUREATE, ACTIVIST):

"HUL's commitment to education and empowerment resonates deeply with my advocacy work.
Their initiatives aimed at providing access to education and improving livelihoods for marginalized
communities are making a tangible difference in people's lives."

NITA AMBANI (PHILANTHROPIST):

"HUL's initiatives in healthcare and sanitation have had a transformative impact on communities
across India. Their focus on promoting hygiene and improving access to healthcare services reflects a
genuine commitment to social welfare."

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 VIRAT KOHLI (CRICKETER):

"HUL products have been a part of my grooming routine for years, embodying quality and
authenticity. From Dove to Pepsodent, each brand reflects HUL's commitment to excellence and
consumer satisfaction."

CHANDA KOCHHAR (FORMER CEO, ICICI BANK):

"HUL's customer-centric approach and focus on innovation have set them apart in the FMCG
sector. Their ability to anticipate and meet the evolving needs of consumers is a testament to their
leadership in the industry."

GRETA THUNBERG (CLIMATE ACTIVIST):

"HUL's efforts towards sustainability and environmental conservation are commendable. Their
initiatives aimed at reducing carbon footprint and promoting eco-friendly practices serve as a model
for corporate responsibility in the fight against climate change."

NANDAN NILEKANI (CO-FOUNDER, INFOSYS):

"HUL's digital transformation journey is a testament to their commitment to staying ahead in a

rapidly evolving market. Their investment in technology and data analytics has enabled them to
enhance consumer experiences and drive business growth."

KIRAN MAZUMDAR-SHAW (CHAIRPERSON, BIOCON):

"HUL's leadership in corporate governance and ethics sets a benchmark for the industry. Their
transparent business practices and commitment to integrity have earned them the trust and respect of
stakeholders."

ELON MUSK (CEO, SPACEX, TESLA):

"HUL's forward-thinking approach to sustainability and innovation is inspiring for companies

worldwide. Their initiatives aimed at reducing environmental impact while driving business growth

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exemplify the power of corporate responsibility."

WARREN BUFFETT (INVESTOR, CEO OF BERKSHIRE HATHAWAY):

"HUL's long-standing track record of delivering consistent returns to shareholders reflects their
strong management and strategic vision. Their focus on long-term value creation sets them apart in the
competitive FMCG landscape."

INDRA NOOYI (FORMER CEO, PEPSICO):

"HUL's commitment to diversity and inclusion in the workplace is commendable. Their efforts to
create a culture of equality and empowerment resonate with my own values and experiences."

JEFF BEZOS (FOUNDER, AMAZON):

"HUL's customer-centric approach and relentless focus on innovation are key drivers of their
success in the Indian market. Their ability to anticipate and fulfil consumer needs sets a high standard
for the industry."

BILL GATES (CO-FOUNDER, MICROSOFT):

"HUL's initiatives aimed at improving access to healthcare and sanitation align with my own
philanthropic goals. Their commitment to addressing pressing social issues reflects a deep sense of
responsibility towards communities."

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 CHAPTER III

COMPANY PROFILE

COMPANY NAME HINDUSTAN UNILEVER LIMITED

TYPE PUBLIC

TRADED AS BSE: 500696

NSE: HINDUNILVR
BSE SENSEX
Constituent
NSE NIFTY 50
Constituent

ISIN INE030A01027

INDUSTRY CONSUMER GOODS

PREDECESSOR INDIAN VANASPATI

MANUFACTURING COMPANY (1931- 1956)
LEVER BROTHERS INDIA LIMITED (1933-1956)
UNITED TRADERS LIMITED (1935-1956)
HINDUSTAN LEVER LIMITED (1956-2007)

FOUNDED 1933; 91 YEARS AGO

HEADQUARTERS MUMBAI, MAHARASHTRA, INDIA

KEY PEOPLE ROHIT JAWA (CEO)

PRODUCTS FOODS, CLEANING AGENTS, PERSONAL CARE,

SKIN CARE AND WATER PURIFIERS

REVENUE ▲ 61,092 CRORE (US$7.7 BILLION) (2023)

OPERATING INCOME ▲ 13,409 CRORE (US$1.7 BILLION) (2023)

NET INCOME ▲10,143 CRORE (US$1.3 BILLION) (2023)

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 TOTAL ASSETS ▲ ₹73,087 CRORE (US$9.2 BILLION) (2023)
TOTAL EQUITY ▲ ₹50,522 CRORE (US$6.3 BILLION) (2023)

NUMBER OF EMPLOYEES 21,000 (2020)

PARENT UNILEVER PLC (61.90%)

WEBSITE www.hul.co.in

HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) boasts a storied history dating back to its inception in 1933 as
Hindustan Vanaspati Manufacturing Company. From these humble beginnings, the company has
navigated through decades of economic and industrial shifts, emerging as a powerhouse in India's
consumer goods landscape.

Throughout its journey, HUL has achieved significant milestones that have shaped its trajectory:

 1933: Hindustan Vanaspati Manufacturing Company is founded, laying the groundwork for what
would become HUL.
 1956: The company undergoes a pivotal transformation, rebranding itself as Hindustan Lever
Limited, signaling a new chapter in its evolution.
 1996: A landmark merger takes place between Hindustan Lever Limited and Tata Oil Mills
Company (TOMCO), expanding the company's reach and market presence.
 2007: Recognizing its affiliation with Unilever, one of the world's leading consumer goods
companies, Hindustan Lever Limited rebrands once again as Hindustan Unilever Limited,
underscoring its global connections and standards.
 2013: HUL commemorates a century of operations in India, a testament to its enduring commitment
to serving the needs of Indian consumers.
 2020: In a strategic move to diversify its portfolio and strengthen its market position, HUL acquires
GSK Consumer Healthcare's nutrition business in India, further solidifying its foothold in the
industry.

With a workforce numbering in the thousands, HUL is not only a major player in India's consumer
goods sector but also a significant employer, providing livelihoods and opportunities to individuals
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across the country. Financially, HUL has consistently delivered strong performance, generating
substantial revenue and profits over the years. Its success can be attributed to a combination of factors,
including its robust brand portfolio, innovative products, and effective marketing strategies.

Speaking about brands, HUL has a strong portfolio of well-known names that are in the Indian
market and have come to represent excellence and dependability. Every day, millions of people come
into contact with HUL's brands, which range from home necessities like Surf Excel, Rin, and Vim to
personal care items like Lux, Lifebuoy, and Dove. Beyond business success, HUL is committed to
making a positive impact on society and the environment. The company actively pursues sustainability
initiatives and corporate social responsibility programs aimed at reducing its ecological footprint and
uplifting communities.

The history of Hindustan Unilever Limited is a landmark to determination, creativity, and a constant
commitment to offering customers with products and services that uphold social responsibility and
sustainability. HUL is a pillar of the Indian consumer goods sector, positioned for long-term growth and
success as it continues to change and adapt to the times.

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