2. Routemap:- Company profile Back ground Acquisition's Working capital Objectives of working capital management Mergers HLL&DELL Problems Solutions
3. Company Profile Hindustan Lever limited(HLL) (CM: M.S.BANGA) India’s largest fast moving consumer goods(FMCG) company with Brands spread across 20 distinct consumer categories. Touching lives, “adding vitality to life”. Sales generated of Rs 10,000 crores in 2002. As one of the India’s best managed & most respected co’s. Unilever, which held 51.55% of the equity of HLL.
4. Background notes “Made in England by lever brothers”. In 1895, lifebuoy was introduced followed by pears, lux &vim. 1918, vanaspathi, dalda. Unilever-Hindustan vanaspathi manufacturing company, lever Brothers India limited & United traders merged to form HLL in nov 1956.
6. Working capital : “The amount of capital required in the day to day functioning & the capital requirement depends on the operating cycle of a firm”. Types of working capital: Gross Working Capital Net Working Capital Permanent Working Capital Temporary Working Capital
7. Objectives of Working capital management Balance between liquidity and profitability Choosing the pattern of financing
8. Mergers Tata oil mills company (TOMCO) merged with HLL(1993) Lakme india LTD(1995) Kimberly-Clark lever LTD(1998) which marketed Huggies diapers,etc. Kwality walls milkfood(1995) And various others.
10. Problems HLL is facing the problem i.e.; operating with a negative working capital since 2000. As compared toDELLHLL was facing problem of low current assets, quick ratio, cash to current asssets ratio, etc. Lacking behind DELL in terms of working capital management.
11. Solution HLL should adopt aggressive attitude in respect of investment in current assets which leads to high % of operating profit. Duration of operating cycle period should be reduced so that transformation of current assets to cash is faster.
