Transcript of "Hindustan unilever limited (hul) hard copy"
ARTS & COMMERCE
Class : S.Y.B.F.M.
Semester : 3
PRESENTATION ON :
Hindustan Unilever Limited
Submitted to : Prof.Shweta Mishra
Academic year : 2011-12
Introduction to HUL :
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
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
History of HUL :
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
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.
Consumers: Making a difference through our
We believe that our brands can grow by addressing some of
the most important social and environmental challenges
facing the country today.This process has been carried out
across all our key categories. Social and environmental
considerations are now integrated with innovation plans for
our major brands.We believe we can make a difference –
through our brands and behaviour change campaigns in the
space of nutrition and hygiene, and by providing consumers,
from all income groups, access to a better life.
Employees: Building responsible leaders
Our employees are our biggest assets. Every step taken by our
team boosts our growth exponentially. We endeavour to
constantly strengthen our team's capabilities and develop
innovative business solutions for a competitive, profitable,
and sustainable future. We have clear action plans aimed at
building responsible leaders, ensuring employee health and
safety, and promoting sound human resource practices and
policies. Over the years, our approach towards nurturing
leaders has been very successful.
Society: Creating a positive impact.
In 2009, HUL contributed INR 30 crores towards community
related initiatives. Our contribution in 2009, went either to
long-term community investment partnerships or to
commercial initiatives, with mutual benefits for both our
business and our partners.
The United Nations reports that people need a minimum of 50
litres of water a day for drinking and other basic needs. In
India, more than 50%of the population lives on less than 10
litres of water a day. Approximately 70% of the total water is
consumed by the agriculture sector. India is an agri-economy,
and as its population grows, there will be an increase in water
consumption by the agriculture sector. These issues are likely
to be exacerbated by climate change, making access to water
an issue for farmers and society.
Investors: Ensuring returns through sustainable
The company created history when it was listed in the
Bombay, Calcutta, and Madras Stock Exchanges in 1956 and
offered 10% of its equity to Indian shareholders. It became the
first subsidiary of a foreign company in India to offer equity
to the Indian public. Today, HUL shares are listed on the
Bombay Stock Exchange and the National Stock Exchange.
1. Rewarding shareholders
At HUL, we believe in creating long term value for our
shareholders. HUL has a history of consistent dividend
payment to its shareholders. As on March 31, 2010, HUL has
over 3.5 lakh shareholders, of which more than 3.4 lakh are
To mark the completion of the 75th year of our operation in
India, HUL, in 2007, declared a special Platinum Jubilee
Dividend to the shareholders at the rate of INR 3 per share. A
share buy-back scheme, announced in the same year, further
strengthened the Earning Per Share (EPS) for the shares of the
Company. For 2009-10, HUL has declared a total dividend of
INR 6.5 per share of INR 1 each.
2. Communication to shareholders
Effective communication of information is an essential
component of corporate governance. It is a process of sharing
information, ideas, thoughts, opinions and plans to all
stakeholders, and promotes management shareholder
relations. HUL regularly interacts with shareholders through
multiple channels of communication, such as the results
announcement, annual report, media releases, company
website and other subject specific communications. Quarterly,
half-yearly and annual results are published in leading
newspapersThe Annual General Meeting of Shareholders is
an important annual event where the shareholders of the
Company come in direct communication with the Board of
Directors and management. The Board engages with
shareholders and answers their queries on varied subjects
whether relating to financials, performance of the Company or
Our vision :
Unilever products touch the lives of over 2 billion
people every day – whether that's through feeling great
because they've got shiny hair and a brilliant smile,
keeping their homes fresh and clean, or by enjoying a
great cup of tea, satisfying meal or healthy snack.
A clear direction
The four pillars of our vision set out the long term
direction for the company – where we want to go and
how we are going to get there:
We work to create a better future every day
We 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.
We will inspire people to take small everyday
actions that can add up to a big difference for the
We will develop new ways of doing business with
the aim of doubling the size of our company while
reducing our environmental impact.
We've always believed in the power of our brands to
improve the quality of people‟s lives and in doing the
right thing. As our business grows, so do our
We recognise that global challenges such as climate
change concern us all. Considering the wider impact of
our actions is embedded in our values and is a
fundamental part of who we are.
The vision of Hindustan Lever is to integrate social,
economical, and environmentalconsiderations into its
business and brands. The company also aims to focus
on climatechange, water, packaging and sustainable
agricultural resources as our key sustainabilitythemes.
The company also focuses on making global
partnerships on nutrition andhygiene issues.
Purpose & principles :
Our corporate purpose states that to succeed requires
"the highest standards of corporate behaviour towards
everyone we work with, the communities we touch, and
the environment on which we have an impact."
Always working with integrity
Conducting our operations with integrity and with
respect for the many people, organisations and
environments our business touches has always been at
the heart of our corporate responsibility.
We aim to make a positive impact in many ways:
through our brands, our commercial operations and
relationships, through voluntary contributions, and
through the various other ways in which we engage
We're also committed to continuously improving the
way we manage our environmental impacts and are
working towards our longer-term goal of developing a
Setting out our aspirations
Our corporate purpose sets out our aspirations in
running our business. It's underpinned by our code of
business Principles which describes the operational
standards that everyone at Unilever follows, wherever
they are in the world. The code also supports our
approach to governance and corporate responsibility.
Working with others
We want to work with suppliers who have values
similar to our own and work to the same standards we
do. Our Business partner code, aligned to our own Code
of business principles, comprises ten principles
covering business integrity and responsibilities relating
to employees, consumers and the environment.
Awards & recognition :
HUL ranked fourth in the „Top Companies for
Leaders, 2009' (Asia Pacific region) and 10th
place in the global rankings in a survey carried
out by Hewitt Associates
Awarded Customer and Brand Loyalty Award
by Business India & Business Standard in
Project Shakti won the Silver Trophy at the
EMPI-Indian Express Indian Innovation
HUL's Goa factory won a Gold Trophy at the
Greentech Awards in 2009 the manufacturing
sector category for their outstanding work in
CSR activities :
HUL's Water Conservation and Harvesting project has
two major objectives:
a). to reduce water consumption in its own operations
and regenerate sub-soil water tables at its own sites
through the principles of 5R - Reduce, Reuse, Recycle,
Recover and Renew;
b). help adjacent villages to implement appropriate
models of watershed development.
SHAKTI - Changing Lives in Rural India
Shakti is HUL's rural initiative, which targets small
villages with population of less than 2000 people or
less. It seeks to empower underprivileged rural women
by providing income-generating opportunities, health
and hygiene education through the Shakti Vani
programme, and creating access to relevant information
through the iShakti community portal.
In general, rural women in India are underprivileged
and need a sustainable source of income. NGOs,
governmental bodies and other institutions have been
working to improve the status of rural women.
Shakti is a pioneering effort in creating livelihoods for
rural women, organised in Self-Help Groups (SHGs),
and improving living standards in rural India. Shakti
provides critically needed additional income to these
women and their families, by equipping and training
them to become an extended arm of the company's
Health & Hygiene Education
Lifebuoy Swastya Chetna (LBSC) is a rural health and
hygiene initiative which was started in 2002. LBSC was
initiated in media dark villages (in UP, MP, Bihar, West
Bengal, Maharashtra, Orissa) with the objective of
spreading awareness about the importance of washing
hands with soap.
The need for a program of this nature arose from the
fact that diarrhoeal diseases are a major cause of death
in the world today. It is estimated that diarrhoea claims
the life of a child every 10 seconds and one third of
these deaths are in India. According to a study done by
the London School of Hygiene and Tropical Medicine,
the simple practice of washing hands with soap and
water can reduce diarrhoea by as much as 47%.
However, ignorance of such basic hygiene practices
leads to high mortality rates in rural India.
Economic Empowerment of Women
The Fair & Lovely Foundation is HUL's initiative
which aims at economic empowerment of women
across India. It aims to achieve this through providing
information, resources, inputs and support in the areas
of education, career and enterprise. It specifically
targets women from low-income groups in rural as well
as urban India. Fair & Lovely, as a brand, stands on the
economic empowerment platform and the Foundation is
an extension of this promise. The Foundation has
renowned Indian women, from various walks of life, as
its advisors. Among them are educationists, NGO
activists, physicians. The Foundation is implementing
its activities in association with state governments.
The main objective of the project is to get the full
knowledge of the products of the HUL and what
are they doing to get the customer loyalty, to
maintain there market. This is also to find the
preferences of customer and there market
knowledge and product information, information
about the presence of the rivals of HUL and all the
other options they have in the market. What are
the techniques they adopt to know about the
preferences and changing needs of the customer?
HUL are also looking to tap the market in rural
sector, so they also taking into consideration the
needs and wants of the people there.
They are also studying the consumption habits of
the rural people. Like most of them are daily wage
earners or small peasants, so they are studying the
buying patterns of them also.