HUL Case Study Analysis

HINDUSTAN UNILEVER LIMITED
A Project Report
Post Graduate Diploma In International Marketing
(2021-22)
Submitted by:
ATUL KUMAR SAH
RYTHMPREET KAUR SAINI
KANISHK CHAUHAN
MAHIP SINGH JAGDEV
DAKSH ANAND
SHIVAM MALHOTRA
Under the supervision of
Dr. DD Chaturvedi
INTERNATIONAL MARKETING
(affiliated to Delhi School of Economics)
SRI GURU GOBIND SINGH COLLEGE OF COMMERCE
(Delhi University)
Pitam Pura, New Delhi, Delhi 110034
DECEMBER 2021

(Delhi University)
DECLARATION
We students of PGDIM (Post Graduate Diploma in International Marketing), hereby
declare that the project titled “ Hindustan Unilever Limited: A Case Study Analysis” which
is submitted by us to the Department of PGDIM, SGGSCC, Delhi University in partial
fulfilment of the requirement for the grade of the subject of Managerial Economics, is
original and not copied from any source without proper citation. This work has not
previously formed the basis for the award of any Degree, Diploma, Associateship,
Fellowship or other similar title or recognition.
Place: New Delhi
Date: 19 December, 2021
Atul Kumar Sah Mahip Singh Jagdev RythmPreet Kaur Saini
(217019) (217017) (217016)
Kanishk Chauhan Daksh Anand Shivam Malhotra
(217020) (217021) (217031)

(Delhi University)
CERTIFICATE
I hereby certify that the Project titled “HINDUSTAN UNILEVER LIMITED: A CASE STUDY
ANALYSIS” which is submitted by us in partial fulfilment of the requirement for the award
of the grade of Managerial Economics, is a record of the project work carried out by the
students under my supervision. To the best of my knowledge this work has not submitted in
part or full any Degree or Diploma to this University or elsewhere.
Place: Delhi Dr. DD CHATURVEDI
Date: 19 December, 2021 Associate Professor
SGGSCC, Delhi University

(Delhi University)
ABSTRACT
Over the years, many multinational corporations have made India their second home. The
fact that India has the world's second largest population is enticing because it translates into a
massive opportunity for marketers all over the world. Hindustan Lever Limited, a subsidiary
of Unilever, is one such multinational that has almost become a homegrown brand. This
corporation's strategies leave no stone unturned in capitalising on the smallest niche markets
available. Reaching the four billion people in the base of the pyramid markets has recently
become a research topic. Many exploratory and case studies have been conducted in this
field. This Project is a study of the strategies developed by Hindustan Lever Limited, one of
the most successful companies to foray into emerging markets in South East Asia and
successfully tap the bottom of the pyramid in India.

(Delhi University)
ACKNOWLEDGEMENT
It is our privilege to express our sincerest regards and thanks to our project supervisor,
Dr. DD Chaturvedi, for his valuable inputs, able guidance, encouragement, whole-hearted
cooperation and constructive criticism throughout the duration of our project. Also, we
deeply express our sincere thanks to Dr, DD Chaturvedi for encouraging and allowing us to
present the project on the topic “HINDUSTAN UNILEVER LIMITED: A CASE STUDY
ANALYSIS” at our department premises for the partial fulfilment of the requirements leading
to the award of grade in Managerial Economics.
Atul Kumar Sah Mahip Singh Jagdev RhythmPreet Kaur Saini
(217019) (217017) (217016)
Kanishk Chauhan Daksh Anand Shivam Malhotra
(217020) (217021) (217031)

CONTENT
● Objective And Methodology
○ Objective
○ Research Methodology
○ Data Collection
■ Primary Data
■ Secondary Data
○ Research Type
1. Introduction
1.1. Company Profile
1.2. FMCG Sector
1.2.1. Market
1.3. History
1.4. Business Principle
1.5. Present Stature
2. Market Analysis
2.1.1. Strategy And Impact
2.1.2. Brand Position
2.1.3. Segments
2.1.4. Porter’s five force Analysis
2.1.5. Competitive Profile Matrix
2.1.6. Competitors
3. Financial Analysis
3.1. Financial Chart
3.2. Peer Comparison Chart
3.3. Quarterly Result
3.4. Profit Loss Statement

3.5. Balance Sheet
3.6. CashFlow
3.7. Ratios
3.8. ShareHolding Patterns
3.9. Total Income
3.10. Overall Outcome
4. SWOT Analysis And Future Opportunity
4.1. SWOT Analysis
4.2. Major Events
4.3. Future Opportunities
Conclusion
References

Objective and Research Methodology
Objective:
1. Analysis of HUL
2. Market Analysis
3. Financial Evaluation
4. SWOT Analysis
Research Methodology:
Research Methodology is considered as the nerve of the project. It refers to the search for
knowledge. Research comprises defining and redefining problems, collecting, organizing and
evaluating data making analysis and research conclusions. Research is thus an original
contribution to the existing stock of knowledge. In short, the search for knowledge through
objective and systematic methods of finding solutions to problems is research. Without a
proper well organized research plan, it is impossible to complete the project and reach any
conclusion.
Data Collection:
The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have
been posed. By taking the concept into consideration, the data can be classified into primary
data and secondary data.
Data Sources:
Primary data: In primary data collection the data is collected by the investigating
team for the purpose of the specific study. The data collected is original in character. The
advantage of this method of collection is the authenticity.
Secondary data: Secondary data refers to data that was collected by someone other
than the user. The secondary data could be collected from journals, Reports and various
Publications. The Secondary data is economical, both in the term of money and time spent.

Here project analysis is made by collecting secondary data from different websites, journals,
etc.
1. Secondary data are pre published and research data collected from different websites,
journals, newspapers, company research papers.
2. These documents and data are very useful for theoretical, conceptual and
organizational background analysis.
3. Detailed analysis of data is made by plotting different graphs and tables which can be
easily understandable
4. Then by observing these graphs we have made our conclusions and recommendations.
Research Type :
A research design is a plan, structure and strategy of investigation so conceived as to obtain
answers to research questions or problems. The design may be a specific presentation of the
various steps in the process of Research. The theoretical and descriptive research methods
are used for this particular study.

CHAPTER 1
Introduction
Case studies on companies are used to study the business of a firm systematically by
identifying either research oriented strategies, issues and analysing them to create new
knowledge or to learn a better way of solving the problems.
Accordingly, case studies are considered as a qualitative research method in business
management research. Company analysis can be considered as the most powerful tool to
learn new skills required identifying, understanding, and solving the problems to manage and
lead the organizations
This is a study on the “Hindustan Lever Limited” which has been one of the most successful
companies to foray into the emerging markets in South East Asia and successfully tapped the
base of the pyramid in India.
1.1 Company Profile
Hindustan Unilever Company LTD. CEO Nitin Paranjpe executive director Mr. Shrjeet
Mishra, foods executive director, Mr. Hemant Bakshi home and personal care headquarters
Mumbai, India founded in 1933. Unilever products touch the lives of over 2 billion people
every day whether that’s through feeling great because they have 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. Unilever with the aid of its heavy promotional activities has been able to
penetrate the market. But the other producers in the industry are posing a threat towards
Unilever’s market share as they have moved towards the rural masses of the population.
Therefore, Unilever India should undertake further steps such as moving towards the rural
and/or poorer.

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1.2 FMCG Sector
The fast-moving consumer goods (FMCG) sector is India's fourth-largest, with household and
personal care accounting for half of FMCG sales in the country. The key growth drivers for
the sector have been increased awareness, easier access, and changing lifestyles. The urban
segment (which accounts for approximately 55% of total revenue generated by the FMCG
sector in India) is the largest contributor to total revenue generated by the FMCG sector.
However, in recent years, the FMCG market in rural India has grown at a faster rate than in
urban India. Semi-urban and rural segments are rapidly expanding, with FMCG products
accounting for half of total rural spending.
1.2.1 Market
The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220
billion by 2025, from US$ 110 billion in 2020.T he FMCG market in India is expected to
increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in
2020. According to Nielsen, the Indian FMCG industry grew 9.4% in the January-March
quarter of 2021, supported by consumption-led growth and value expansion from higher
product prices, particularly for staples. The rural market registered an increase of 14.6% in
the same quarter and metro markets recorded positive growth after two quarters.
Final consumption expenditure increased at a CAGR of 5.2% during 2015-20. According to
Fitch Solutions, real household spending is projected to increase 9.1% YoY in 2021, after
contracting >9.3% in 2020 due to the economic impact of the pandemic.
The FMCG sector's revenue growth will double from 5-6% in FY21 to 10-12% in FY-22,
according to CRISIL Ratings. Price increases across product categories will offset the impact
of rising raw material prices, along with volume growth and resurgence in demand for
discretionary items, driving growth. The FMCG sector grew by 36.9% in the April-June
quarter of 2021 despite lockdowns in various parts of the country.

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1.3 History
HUL is India's largest FMCG manufacturer, with a presence in Soaps, Detergents, Skin Care,
Oral Care, Hair Care, Staple Foods and Beverages. HUL was founded in 1933 as Lever
Brothers India Ltd and renamed Hindustan Lever Ltd (HLL) in 1956 after a merger of Lever
Brothers, Hindustan Vanaspati Manufacturing Company Ltd, and United Traders Ltd. Later
that year, in mid-2007, the company was renamed "Hindustan Unilever Ltd." HUL is owned
by the European company Unilever, which owns approximately 52 percent of the company.
HUL is a key scrip in the stock indices, accounting for more than 3% of the weightage in the
BSE SENSEX.
Despite the fact that HUL has maintained leadership positions in the majority of categories,
the concern factor is a loss of volume and value market share. Companies with a higher
current in their River (Range, Innovation, Value weightage, Engage, and Reach) will be the
game's leaders. The brand's range (coverage of price points and wide variety) should be
considered a key trait. HUL's market leadership in soaps, detergents, skin care, and shampoo
is due to its broad product offering. In all of the categories. HUL has 2-3 brands, with each
brand having more than variations, giving customers a wide range of options.
1.4 Business Principles
The operational standards they adhere to are described in HUL's code of business principles.
It also supports our governance and corporate responsibility approach.
Unilever has earned a reputation for conducting business with integrity and regard for the
interests of those who may be impacted by our activities. This reputation is a valuable asset,
just like our people and brands.
Its first priority is to be a successful business, which requires investing for growth and
balancing short and long-term interests. It also entails caring about customers, employees,
and shareholders, as well as business partners and the environment in which we live. “To
succeed, we must all exhibit the highest levels of behaviour.”
These standards are outlined in the general principles contained in this Code.

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1.5 Present Stature
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. They endow the company with as cale of
combined volumes of about 4 million tonnes and sales of nearly Rs.13718 crores. 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. The mission that inspires HUL's over 15,000
employees, including over 1,300 managers, is to "add vitality to life." HUL meets everyday
needs for nutrition, hygiene, and personal care with brands that help people feel good, look
good and get more out of life. It is a mission HUL shares with its parent company, Unilever,
which holds 52.10% of the equity. The rest of the shareholding is distributed among 360,675
individual shareholders and financial institutions. HUL's brands - like Lifebuoy, Lux, Surf
Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme,
Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the
country and span many categories - soaps, detergents, personal products, tea, coffee, branded
staples, ice cream and culinary products. They are manufactured over 40 factories across
India. The operations involve over 2,000 suppliers and associates. HUL's distribution
network, comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets
reaching the entire urban population, and about 250 million rural consumers.

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CHAPTER 2
MARKET ANALYSIS

India’s USD 70 Billion FMCG market is the major contributor to India’s GDP. The household
and personal care segment is the primary driver and accounts for 50% of India’s FMCG sales.
With 44+ brands across 14 distinct categories, HUL dominates the FMCG market in India.
90% of households in India use one or more HUL brands. It has also entered the top 15
global consumer staple stocks list with a current market cap of USD 75 Billion.
HUL offers its products according to the taste and preference of the local consumers
as India is not a homogeneous market. It includes customers from various clusters based on
their socio-economic attributes and it provides value to customers in terms of price and
quality.
Hindustan Unilever continues to demonstrate its clear and well-structured nutrition
strategy in India. The company publicly discloses its approach through policies that can
be found on its website, and publishes the percentage of products that meet its Highest
Nutritional Standards (HNS) in India each year

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2.1 Strategy And Impact
Some of the significant strategies that impacted the business growth of HUL positively and
its impact on its businesses.
Table 1: Strategies and impact
Strategy Impact
Customisation
Product flanking
Different variations of the core product for
different segments
HUL was one of the foremost companies to customise
products by breaking into smaller sachets, customising it to
suit the targets cost and value requirements
Rural Reach Rural India is estimated to account for more than 50% of
the total FMCG market in India; HUL has a first mover
advantage in this
Backward Integration Integration with local farmers to source tomatoes for
ketchup and such other initiatives
Third Party Manufacturing In order to scale up business it is always better to leverage
on local third party manufacturing to meet demand
requirements and sustainable growth to the economy as
well
Scalable Distribution Networks Following on the model of the microfinance initiatives’ not
only ensured bottom level reach but created financial
freedom and informed choice purchases boosted by income
generation for the segments untapped
Grass Roots Understanding HUL ensured that the managers at all locations spend
minimum 6 weeks in the BOP markets to actively gather
consumer insights and preferences’ which generated more
than
1 billion $ in revenues from these markets alone in India
Unlike other multinationals that came in thinking they had global expertise and product
knowledge and didn't need to change anything, HUL looked at every market segment
differently from the start and realised early on that local adaptability and acceptability was
crucial . As a result, they continued to reinvent practises and strategies along these lines. The
vision also included a practice for long-term economic and social growth.

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2.2 Brand Position
HUL markets itself as a multi-local multinational. It is the Indian subsidiary of Unilever PLC
that holds ~62% of the share in the company and offers international expertise to the service
of local consumers in the broad spectrum of product categories defined in its mission
statement.
It has a robust competitive performance, with ~85% of its business is gaining penetration and
>90% of business is winning a share of the market. Hence, Forbes ranked HUL as the most
innovative company in India and 8th globally.
HUL Market Analysis:
1. Reach in 8 million+ outlets in India (i.e. 60% of India’s outlets).
2. One of the largest distribution networks in India with 4,500+ distributors.
3. Number 1 in 8 product categories (Skincare, skin cleansing, hair care, fabric wash,
household care, tea, health drinks, ketchup).
4. Leading fabric wash brand (surf excel) generates Rs.5,000+ Cr. revenue. And with a
market share of ~18%, it accounts for 14% of its revenue and 45% of its laundry
segment sales.
5. Three brands generate Rs. 2,000+ Cr. Revenue.
6. Eight brands generate Rs. 1,000+ Cr. Revenue.
7. Nine brands generate Rs. 500+ Cr. Revenue.

8
2.3 HUL Segments
HUL has classified its business into four broad divisions. Given below is the division wise
revenue contribution.
HUL continues to strengthen its market position in the BPC segment by driving penetration
in core brands, such as Dove, Ponds, Sunsilk, and dominate the hair care and skincare
category market.
Personal Care:
Aviance Axe Brylcreem
Citra Clear Nothing To Hide Clinic Plus
Close Up Dove ELLE 18
Glow & Handsome Glow & Lovely Hamam
Indulekha International Breeze LAKMÉ

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LEVER Ayush Lifebuoy Liril
Love Beauty And Planet LUX Pears
Pepsodent POND’s PUREDERM
Rexona Sunsilk TIGI
TONI&GUY TRESemmé Vaseline
Foods:
Annapurna Boost Brooke Bond 3Roses
Brooke Bond Red Label Brooke Bond Taaza Brooke Bond Taj Mahal
Bru Cornetto Hellmann’s
Horlicks Horlicks Cardia Horlicks Growth
Horlicks Mother’s Plus Horlicks Protein Plus Horlicks Women’s Plus
Junior Horlicks Kissan Knorr
Kwality Walls Lipton Little Horlicks
Magnum
Home Care:
Active Wheel Cif Comfort
Domex Love&Care Nature Protect
Rin Sunlight Surf Excel
Vim

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2.4 Porter's Five Force Analysis
Here we can look at the prominent strategies of HUL in conjunction with Porter's Five Forces
analysis.
Fig: Porter’s Five Force Model
HUL focussed on creating a sustainable living and improving local communities, this along
with providing adequate and timely training to local entrepreneurs and other partners and
recognised the importance of building social infrastructure. An analysis of HUL using
Porter's five forces analysis throws up the below facts listed in Table 3.
Table 3: Porter's Five Forces Analysis
Competitive Rivalry
(High)
Threat of New
Entrants (Medium)
Substitute
Products (High)
Bargaining Power
of Suppliers (Low)
Bargaining Power of
Customers (High)
1. Increasing
competition from other
rivals
2. Other rivals such as
Dabur, ITC, Marico are
moving at fast pace
3. Big threat from brand
such as Patanjali if they
able to enter the rural
market as well at a fast
pace.
1. High investment
requirements for
brand building and
distribution networks
2. High promotion
and distribution costs
ensure only large cash
rich firms make an
entry
1. Creating a
lasting product
differentiation is
very difficult
2. Price wars
3. Presence of
large number of
multiple brands
1. Large MNCs and
big domestic players
are able to dictate
prices through local
sourcing
2. Backward
integration
1. Reduced customer
loyalty
2. Low switching costs
3. Minimal product
differentiation between
different brands

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The NIFTY FMCG Index is designed to reflect the behaviour and performance of FMCGs
which are non-durable, mass consumption products and available off the shelf.
NIFTY FMCG Index is computed using free float market capitalization method, wherein the
level of the index reflects the total free float market value of all the stocks in the index
relative to particular base market capitalization value.
Table 2: Nifty FMCG Index
2.5 Competitive Profile Matrix:
The HUL Competitive Profile Matrix (CPM) will highlight the major Critical Success Factors
and the weighted scores for each parameter, and we have compared it to other major
competitors ITC and Patanjali. The CPM demonstrates that HUL has a higher
competitiveness score in its distribution network, which has resulted in the company's
advantage, the network's sustainability and scalability are extremely difficult to replicate in
order to compete Furthermore, HUL has always been a pioneer in developing “sustainable
living environments initiatives” for the community and the customers it serves.

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HUL ITC PATANJALI
Critical Success Factor Weightage Rating Score Rating Score Rating Score
Promotion and
Advertising
0.1 3 0.3 3 0.3 1 0.1
Product Quality 0.2 2 0.4 2 0.4 3 0.6
Financial Position 0.1 2 0.2 2 0.2 2 0.2
Global Expertise 0.1 4 0.4 1 0.1 1 0.1
Distribution Network 0.2 4 0.8 2 0.4 1 0.2
Price Competitiveness 0.2 2 0.4 2 0.4 2 0.4
Market Share 0.1 4 0.4 3 0.3 2 0.2
Total 1 2.9 2.1 1.8
Fig: CPM
2.6 Competitors
Procter & Gamble: P&G
Procter & Gamble (PG) is a multinational corporation headquartered in Cincinnati, Ohio. The
company, founded in 1837, employs over 97,000 workers across the world except for Cuba
and North Korea. The company is headed by chair, president, and chief executive officer
(CEO) David S. Taylor, and vice-chair, chief operating officer (COO), and chief financial
officer (CFO) Jon. R. Moeller.
Segments and Brand Names:
The company has six business segments organized centered around its product lines. These
include baby, feminine care, and family care, beauty, fabric and home care, grooming, and
healthcare.
The company has a number of iconic, well-known brand names from laundry detergents and
cleansers, to grooming and beauty products. Some of the most popular and well-recognized
names include:
1. Tide, Bounce, and Downy
2. Pampers

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3. Bounty and Charmin
4. Gillette and Venus
5. Head & Shoulders
6. Crest and Oral-B
7. Vicks
8. Olay
Market Share
P&G gets nearly 45% of its revenue from North America and some 23% from Europe. Nearly
two-thirds of P&G’s total revenue is from developed markets.This is one of P&G's most
significant problems being concentrated in slow-growth markets, while rivals like Unilever
are focused on driving growth and sales from emerging or developing markets.
ITC
ITC Limited is an Indian conglomerate company headquartered in Kolkata, West Bengal. ITC
has a diversified presence across industries such as FMCG, hotels, packaging, paperboards,
specialty papers and agribusiness. The company has 13 businesses in 5 segments. It exports
its products in 90 countries. Its products are available in 6 million retail outlets.[
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was
renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.
The company now stands renamed to ITC Limited, where "ITC" today is no longer
an acronym. The company completed 100 years in 2010 and as of 2019–20, had an annual
turnover of US$10.74 billion and a market capitalisation of US$35 billion. It employs 36,500
people at more than 60 locations across India.

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Nestle
Nestlé is the world's largest food producer, by revenue. It was formed in the 1950s, when
two companies merged. At the start in the 1860s, the company produced soluble milk that
could be given to infants and babies. From about the 1930s, Nestlé also produced
soluble coffee. In 2010, Nestle's revenue was about 109 billion Swiss Francs, and its net
profit was about 32 billion Swiss Francs.
Market share
In 2020, Nestle Cerelac, a product by Nestle India occupied 97 percent of the instant cereal
market in India. This was followed by instant pasta occupying approximately 75 percent of
the instant pasta market in India. Nestle India held a strong position, with most of its product
categories having more than 50 percent of the market share in India. Nestle India is one of the
largest FMCG companies in India specializing in food, beverages, chocolate, and
confectioneries.

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CHAPTER 3
FINANCIALANALYSIS
Current Market Status
Market Cap ₹ 545,446 Cr.
Current Price ₹ 2,321
High / Low ₹ 2,859 / 2,104; As on 16 Dec 12AM
Stock P/E Price to Earnings Ratio 64.5
Book Value ₹ 204
Dividend Yield 1.34 %
ROCE Return on Capital Employed 39.2 %
ROE Return on Equity 29.2 %
Face Value ₹ 1.00
Current ratio 1.28
Sales ₹ 49,854 Cr.
OPM Operating Profit Margin 24.4 %
Profit after tax ₹ 8,453 Cr.
Mar Cap ₹ 545,446 Cr.
Sales Qtr . ₹ 13,046 Cr.
Qtr Profit Var 7.30 %
Qtr Sales Var 11.7 %
PAT Profit After Tax Qtr ₹ 2,185 Cr.
Dividend yield 1.34 %
Price to Earning 64.5
Price to book value 11.4
ROCE Return On Capital Employed 39.2 %
Return on equity 29.2 %
EPS Earning Per Share ₹ 35.8
Debt ₹ 1,129 Cr.
Dividend Payout 119 %
Dividend last year ₹ 9,518 Cr.

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3.1 Financial Chart : NSE HINDUNILVR
This is the maximum time frame chart for HINDUNILVR, showing a growth on a year on
year basis with a CAGR Compound Annual Growth Rate of 19% over a period of 10 years
which is far better than banks deposits and bonds purchasing.
PROS:
1. Company is almost debt free.
2. Company has a good return on equity (ROE) track record: 3 Years ROE 48.81%
3. Company has been maintaining a healthy dividend payout of 92.52%
CONS:
1. Stock is trading at 11.37 times its book value
2. The company has delivered a poor sales growth of 7.88% over the past five years.
3. Promoter holding has decreased over last 3 years: -5.29%

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3.2 Peer Comparison Chart:
These are some top competitors of HINDUSTAN UNILEVER, i.e., Procter and Gamble,
COLGATE and GILLETE. According to past performance in HINDUSTAN UNILEVER
performed better as shown in the above table i.e., sales and profit of HUL has increased by
11% and 7% from QOQ (Quarter on Quarter) basis which looks great among all the
competitors.
3.3 Quarterly Result:

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1. Total sales grew by 11% during the quarter. Underlying domestic consumer business
sales grew by 11% during the quarter,
2. Earnings before interest, tax, depreciation,and amortization (EBITDA) for the quarter
at Rs. 3,132 crores (SQ 20: Rs. 2,869 crores) grew by 9%. EBITDA margin declined
by 40 bps vs SQ 20.
3. Profit after tax before exceptional items for the quarter at Rs. 2,187 (SQ 20: Rs. 2,035
crores) grew by 7%
4. Profit after tax for the quarter at Rs. 2,187 crores (SQ 20: Rs. 2,009 cores) grew by
9%.
5. The Board of Directors declared an interim dividend of Rs. 15/- per equity share of
face value of Re.1/- each for the financial year ending 31st March 2022 at its meeting
held on 19th October 2021. The record date for the purpose of determining the
entitlement for payment of interim dividend is fixed as 27th October 2021.
3.4 Profit and Loss Statement:

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Expenses include material cost and employee cost. Some long term results on the basis of
profit and loss statement : Sales are growing from 9% per annum if we look over a longer
timeframe i.e., 10 years, profits are growing 15% p.a. which is healthy for the company. A
CAGR of 19% is very healthy for the investors which is far better than govt securities and
bank deposits.
Compounded Sales Growth Compounded Profit Growth
10 years 9% 10 years 15%
TTM 19% TTM 18%
Stock Price CAGR Return On Equity
1 year -1% Last Year 29%

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3.5 Balance Sheet
Consolidated Figures in Rs. Crores as of September 2021.
3.6 Cash Flows
Consolidated Figures in Rs. Crores as of September 2021.

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3.7 RATIOS:
Consolidated Figures in Rs. Crores.
3.8 Shareholding Pattern:
Numbers in Percentage.
1. Promoters are someone, who has been connected with the business from the start.
They can also be referred to as the starter of a business or the founder. They
are responsible for raising capital from various sources and entering into the first
agreements for the start of a business and incorporation of a company.
2. DIIs are domestic institutional investors like LIC and SBI.
3. FIIs are Foreign Institutional Investors like foreign banks. E.g., BlackRock and
Singapore GOVT.

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3.9 Total income:
Hindustan Unilever Limited had a total income of about 470 billion Indian rupees in 2021, up
from about 397 billion rupees in the previous fiscal year. The FMCG conglomerate's income
had linearly increased over the years from financial year 2014 in India.
3.10 Overall Outcome:
Unilever’s commentary marks a reversal from a quarter ago when it said rising Covid
cases were a worrying trend in India and its local unit, Hindustan Unilever Ltd, saw a
7% drop in sales in the April-June quarter.Improvement in Demand.
It reported a 16% growth in sales in the September quarter on October 20, helped by
the acquisition of GSK Consumer. Excluding the integration, revenue rose 3%, boosted
by the relaxation of restrictions on manufacturing and distribution.The business in India
did really well to grow in single digits.
Beauty & Personal Care Segment, the company has a wide-spread portfolio of more than 900

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SKUs spread across one or more of categories which are made for 14 consumer clusters
identified in India. The company earns ~29% margins from this segment which is the most
among its divisions.
1. HUL is a very strongly solvent company, Institutions and banks will compete with
each other to lend the company on the slightest indication to borrow.
2. HUL is efficiently using the resources which have been provided by suppliers. The
working capital management is impressive.
3. The market capitalization of the company has increased significantly from the
previous year which indicates the positive sentiment of investors regarding a
company.
4. The large part of the company's expenses is selling expenses which indicates the
nature of the FMCG industry in which HUL operates where advertising plays a very
big role.
5. Return on investment depicted by the arrows ratio is very high. This means that the
company is in a very strong position and in a favourable position for all stakeholders.

24
Chapter 4
SWOT Analysis and Future Opportunity
4.1 SWOT Analysis:
Strengths:
1. Brand visibility: From soap to mineral water, HUL is shaping the life of 1.3 billion
people daily. Being in the consumer goods market with its 20 consumer categories
such as soap, tea, detergents, shampoo etc. & each having large assortments, helped
HUL in occupying the large shelf space of Grocery /departmental stores which itself
explains the acceptance/demand of their products in the market.
2. Market leader in consumer goods: According to Nielsen data 2 out of 3, Indian
consumers use HUL products. HUL used a selective targeting strategy to emerge as a
market leader in the Indian market.
3. Innovative FMCG Company: Hindustan Unilever Research center
(HURC),Mumbai & Unilever Research India, Bangalore ,both research facilities were
bought together in a single site in Bangalore in 2006.Employees in this facility
continuously working & developing innovations in products & manufacturing
processes which is helping the HUL to set it as front-runner in the consumer goods
market.
4. Extensive & integrated distribution system: HUL’s brands are now household
name which is only possible due to its 4 tier distribution system namely
1. Direct Coverage through common stockists within a town of population under
50000 people.
2. Indirect coverage: Villages closer to larger urban markets have been targeted.

25
3. Streamline: Leveraging the rural wholesale market to reach markets
inaccessible by road.
4. Project SHATKI AMMA: It targeted the very small villages (2000
population) & tapped into pre-existing women’s SHG (self-help groups).
Markets have been segmented based on their accessibility & business
potential.
5. High Brand awareness: By signing popular celebrities for the advertisements of
their products HUL has created positive word of mouth over the ages which helped
them in social acceptance of their products intelligently targeted & meant for different
income groups.
6. Product line: It offers product categories namely oral care, personal care,
household surface, fabric care and pet nutrition etc. having deep assortments across
the product categories.
7. Financial position: Having more than 80 years of experience in the consumer
goods market & backed by Unilever who owns 67% controlling share in HUL, It is
financially strong.
8. Market share: Through high penetration in the market, HUL had managed to hold
their high market share in different product categories.
9. Share of Wallet: Whether one buys surf /wheel /Rin detergent it will go to HUL’s
pockets. HUL's strategy to offer different products for different income groups
(selective targeting) has been successful in having a share of wallet of a consumer.

26
Weaknesses :
1. Decreasing Market share: Competitors focusing on a particular product & eating up
HUL’s share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market
share.
2. Large number of brands in different product categories: Sometimes having a
broad brand portfolio can lead to confused positioning. Price positioning in some
categories allows for low price competition like AMUL captured Kwality’s market
share.
Opportunities:
1. Expanding market: By penetrating more in the rural markets through its project
Shakti AMMA and transition of unorganized business to organized one will lead to
further expansion of the consumer goods market.
2. Awareness in usage rate of consumer goods: People getting more aware and
conscious about the usage may be through advertising /word of mouth /doctor
prescription ,resulting in an increase in usage rate of these products.
3. Increasing Income levels: Due to a stable political scenario, improved literacy rate &
controlled inflation, disposable income of the people is increasing thereby resulting
into upsurge in demand & changing their lifestyle.
Threats:
1. Competition in the market:
With an increasing number of local & national players it’s becoming very hard for the
companies to differentiate themselves from others. There is also a threat from
counterfeit products destroying its brand image in the market.
2. Price of commodities: Increasing price of commodities will result in further increase
in the price. Further increase in price will result in decrease in sales, margins & brand
switching.

27
3. Buyers Power: With a highly diversified consumer goods market where there are
lots of brands claiming different sorts of benefits, it’s very difficult for consumers to
stick to a particular brand & hence results in brand switching where consumers got
power to select a brand based on several factors like availability, reference group
recommendation, preference & price.
4.2 Major Events:
● 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
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.
● 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.
● 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 shareholders during the 74th AGM on 18 May 2007.
Brooke Bond and Surf excel breached 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. In
January 2010, the HUL head office shifted from the landmark Lever House, at
Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai.
● On 15th November, 2010, the Unilever Sustainable Living Plan was officially
launched in India at New Delhi.
● In March, 2012 HUL’s state of the art Learning Centre was inaugurated at the
Hindustan Unilever campus at Andheri, Mumbai.

28
● In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at
the Hindustan Unilever campus at Andheri, Mumbai
● HUL completed 80 years of corporate existence in India on October 17th, 2013.
● In 2013, HUL launched ‘Prabhat’ (Dawn) - a Unilever Sustainable Living Plan
(USLP) linked program to engage with and contribute to the development of local
communities around its manufacturing sites. Also, Unilever’s first aerosol plant in
Asia was inaugurated in Khamgaon, Maharashtra in 2013.
● In 2014, The ‘Winning in Many Indias’ operating framework, piloted in 2013,
launched nationally. Sales offices expanded from four to seven with the launch of
offices in Lucknow, Indore and Bangalore in addition to the existing sales offices in
Delhi, Kolkata, Mumbai and Chennai.
● In 2015, HUL acquired Indulekha, a premium hair oil brand with strong credentials
around Ayurveda.
● HUL announced signing of an agreement for the sale and transfer of its bread and
bakery business under the brand “Modern” to Nimman Foods Private Limited.
● In 2016, HUL unveiled ‘Suvidha’ a first-of-its-kind urban water, hygiene and
sanitation community centre in Azad Nagar, Ghatkopar, one of the largest slums in
Mumbai.
● A new state-of-the-art manufacturing facility was commissioned in Doom Dooma
Industrial Estate, Assam on 11th March 2017.
● In 2018, HUL signed an agreement with Vijaykant Dairy and Food Products Limited
(VDFPL) and its group company to acquire its ice cream and frozen desserts business
consisting of its flagship brand ‘Adityaa Milk’ and front-end distribution network
across geographies.
● In 2020, HUL announced acquisition of VWash, the market leader in female intimate
hygiene category to enter the currently underpenetrated and rapidly growing market
segment.
● In 2020, with the Merger of GSK Consumer Healthcare with Hindustan Unilever
Limited, Iconic health food drink brands – Horlicks and Boost enter the foods &

29
refreshment portfolio of HUL, making it the largest F&R business in India.
4.3 Future Opportunities:
India is a fast developing country with a huge population whose per capita income
is growing rapidly and there is a huge opportunity for FMCG companies.
Future plans to expand its portfolio in the area of Healthcare and contraceptive, chemical
business as well as service at 10 on FMCG export business. It is trying to pepup through the
distribution system and has launched a unit price variant of its popular brand to draw in new
uses in the rural areas.
The opportunities are as follows:
1. Increasing FMCG market growth in India
2. India's consuming class is growing rapidly
3. Changing consumption pattern: Per capita income of Indian customers is increasing
and FMCG products are relatively elastic in nature hence the expected sales should
increase.
Fig: Market size of fast moving consumer goods in India
Above graph shows the growth rate of the FMCG market in India. Here by the above graphs
we can see that there is huge scope for FMCG products.

30
Fig: Population rise
Graph shows the past population and expected future population rise.
Here by the above graphs we can see that there is huge scope for FMCG products and since
HUL is the market leader in India hence it can gain the most out of it.

31
Conclusion
HUL has been working since 1912 trying to be a multi local multinational, they reflect it
national priorities over the years and remain committed over the years they have adopted
good company policies which have help them gain an edge over their competitors such as;
First, developing and using the relevant Technology. Second, generating productive
employment. Third, adding value to agriculture and Forth, Sustaining export performance.
HUL is now relying more on trying tested marketing models such a 6P model which focuses
on getting the product, price, package, proposition, place and promotion to attract a consumer
to explain the market and out-space competitors .
In volatile cost and consumption scenarios, there are far quicker changes in the way
consumers respond to pricing, place and promotion while changes to product and proposition
typically have a longer cycle time.
With its long and luminous history , it is India's true pride. It is a company which the
customers in rural as well as in urban areas relate to.
These explains the deep penetration of HUL in the Indian market
Past few trends may have been disturbing but there have been multi facets to the decrease in
profit. The future of HUL demands new and high level innovation so as to cope with
increasing competition. However, HUL is well equipped with all the needs to do this Indian
giant.

32
References
1. http://www.unilever.com/
2. http://simple.wikipedia.org/
3. http://statista.com/
4. http://moneycontrol.com/
5. http://investopedia.com/
6. http://csimarket.com/
7. https://mpra.ub.uni-muenchen.de/85699/
8. Media Reports, Press Information Bureau (PIB), Firstpost
9. www.scrid.com
10. https://accesstonutrition.org/index/india-spotlight-2020/scorecards/hindustan-

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