HUL - Introduction Unilever the world's largest Fast Moving Consumer Goods (FMCG) company with a worldwide revenue of $55 billion. It's Indian subsidiary, the Hindustan Unilever Limited (HUL) is the country's largest FMCG company with combined volumes of about 4 million tonnes and revenues near about INR 19,401cr with 6.4 million retail outlets. 9/13/2011 2 GISBS-Pioneer Batch
Rural India With 12.2% of the world population residing in the villages of India, the country's rural FMCG market had a huge potential . The Indian FMCG sector was the fourth largest sector in the economy with a market size of $13.1 billion . 9/13/2011 3 GISBS-Pioneer Batch
HUL - Shakti HUL introduced project Shakti, a flag-ship programme to capture untapped rural markets. HUL partnered with recipients of the micro-credits by offering the village women to be micro-entrepreneurs. 9/13/2011 4 GISBS-Pioneer Batch
Motivation for initiative In 1991, Feeling the competition HUL tried to find a new lease of business area. Large parts of rural areas were utterly inaccessible and non-communicable. There are 6,38,365 Indian villages but their reach is to only a meagre amount of 100000 villages. In this project HUL will be involved in direct distribution to rural market. 9/13/2011 5 GISBS-Pioneer Batch
Changing Lives in Rural India
Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.
Started in 2001, Shakti has already been extended to about 1 lakh villages in 15 states.
Shakti already has about 45,000 women entrepreneurs in its fold.
A typical Shakti entrepreneur earns a sustainable income of about Rs.700 -Rs.1,000 per month, which is double their average household income.
Shakti is thus creating opportunities for rural women to live in improved conditions and with dignity, while improving the overall standard of living in their families.
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Working Model Villages with a population of about 2000-3000 are selected. Personnel from HUL approach SHGs. Selection of the Shakti Amma. One Shakti entrepreneur is appointed for one village & villages that are about 2 kms apart from her village. Finance: Self+SHG+micro credit Training by the Rural sales Promoter The Shakti dealer organizes a “Shakti Day” in the village(display of products & free gifts) 9/13/2011 8 GISBS-Pioneer Batch
Shaktivani An initiative which helps support Project Shakti is the Shakti Vani programme. Under this programme, trained communicators visit schools and village congregations to drive messages on sanitation, good hygiene practices and women empowerment. This serves as a rural communication vehicle and helps the Shakti Amma’s in their sales. 9/13/2011 10 GISBS-Pioneer Batch
Hand-wash demo in schools 9/13/2011 11 GISBS-Pioneer Batch
It helps women in rural India set up small businesses as direct-to-consumer retailers.
The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers.
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Distribution It is the combination of the 3 ways: Door to door selling (11%margin on sales) Sells from own home (11% margin on sales) Retailers (3% margin) Average sales: Rs.10000-Rs.15000/month Profit-Rs.1000/month 9/13/2011 13 GISBS-Pioneer Batch
Positive Aspects A great opportunity to capture the rural market. To increase sales and net profit A sales and distribution initiative to place it at a higher percent of growth. A social platform to build up economic prospects in rural India and improve the standard of life. I-Shakti portal to make people information packed. Shakti Vani to make people more health conscious 9/13/2011 14 GISBS-Pioneer Batch
SOME OF THE PRODUCTS SOLD THROUGH PROJECT SHAKTI AT RS.2 AT RS.5 AT RS.1.50 AT RS.5 AT RS.5 AT RS.5 AT RS.5 AT RS.5 9/13/2011 15 GISBS-Pioneer Batch
Objectives To make people aware. To increase the consumption. To increase the income. To increase behavior in-
Awareness & living standard lifestyle
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Plans are also being done to bring in partners involved in:
To catalyze overall Rural Development. 9/13/2011 17 GISBS-Pioneer Batch
Shakti I-portal The Internet-based rural information service, launched in Andhra Pradesh, in association with the Andhra Pradesh Government's Rajiv Internet Village Programme. iShakti has been developed to provide information and services to meet rural needs in medical health and hygiene, agriculture, animal husbandry, education, vocational training and employment and women's empowerment. The vision is to have 10,000 kiosks by 2011. 9/13/2011 18 GISBS-Pioneer Batch
Present scenario Shakti started with 17 women in 2 states. Today, reached 15 Indian states and provides access to 100,000+ villages and over 3 million households every month. Project Shakti contributes to 10% of rural turnover nationally. 9/13/2011 GISBS-Pioneer Batch 19
CONCLUSION Project Shakti is enabling families to live with dignity and in better health & hygiene. Education of the children and overall betterment in living standards. It creates a win-win partnership between HUL and the rural consumers for mutual benefit and growth. 9/13/2011 20 GISBS-Pioneer Batch