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project of business environment (HUL) 11.pptx
1.
2. A TERM POJECT REPORT ON
Submitted To :
Prof. Moushmi Chakraborty
Fast moving consumer goods
(FMCG)
3. INTRODUCTION
Type : Public &British Company
Industry : consumer goods
Founder : 1933; 89 [years ago]
Headquarter : Mumbai, India
CEO : Sanjeev Mehta
Turnover : 45,311 Crores grew
by 18%,
4. SWOT Analysis of HUL ( Hindustan Unilever Ltd ) in a
Simplified Way
HUL, the Indian arm of the Anglo-Dutch consumer goods giant Unilever, has about 40
brands in its portfolio that include categories like soaps, detergents, shampoos, skincare,
toothpaste, deodorants,
cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.
5. Overview of Hindustan Unilever Limited ( HUL )
Hindustan Unilever Limited (HUL) is a consumer goods company headquartered
in Mumbai, India. It is a subsidiary of Unilever, a British company. Its products
include food, beverages, detergents, personal care products, water purifiers, and
other fast-moving consumer goods.
HUL was founded in 1931 as Hindustan Vanaspati Manufacturing Co. and was
renamed Hindustan Lever Limited after a merger of the separate groups in
1956. The company was renamed Hindustan Unilever Limited in June 2007.
Hindustan Unilever Limited ( HUL ) states that nine out of ten Indian
households use their products.
6. SWOT Analysis Of HUL ( Hindustan Unilever Limited )
The SWOT Analysis of HUL ( Hindustan Unilever Limited ) includes its strengths,
weaknesses, opportunities, and threats. And in this reading of the SWOT Analysis
of HUL ( Hindustan Unilever Limited ), we will examine this beauty and wellness
company in terms of its internal and external factors.
7. S Stands For Strengths ( Internal Factor )
Leader in FMCG Market: Two out of three Indian consumers use HUL products,
according to Nielsen Study. To establish itself as a market leader in the Indian
market, HUL has adopted a targeted approach in the supply chain & other things.
Most Preferred Brand: From soap to mineral water, HUL shapes the lives of 1.3
billion people every day. HUL’s presence in the consumer market with its 20
categories such as soap, tea, detergent, shampoo, etc., and its wide range of
products has helped it occupy a large share of shelf space in grocery and
department stores, which explains the acceptance/demand for its products in the
market.
Innovations: Hindustan Unilever Research Center (HURC), Mumbai, and
Unilever Research India, Bangalore, both research facilities were merged at one
location in Bangalore in 2006. The people at this facility are continuously working
on developing innovations in products and manufacturing processes that will help
HUL establish itself as a frontrunner in the consumer goods market.
8. •High Brand Awareness: HUL generated positive word of
mouth over the years by enlisting celebrities to promote their
brands. This allowed them to socially anchor their brands,
which were intelligently tailored to different income brackets.
•Wide Range of Products: It offers product categories,
namely, oral care, personal care, household surface care,
textile care, and pet food, etc., and has a wide range of
products in all product categories.
•Strong Promoter: With more than 80 years of experience in
the consumer goods market and backed by Unilever, which
owns 67% of HUL, the company is financially strong.
9. •Huge market share: due to high market penetration, HUL has managed to
maintain its high market share in various product categories.
•Comprehensive and automated supply chain: hull products are now a
household name thanks only to the four-tier distribution system.
10. •Social Media: HUL has a strong social media presence with millions of followers on the
three most popular social networking platforms: Facebook, Twitter and Instagram. The
company has a high level of customer engagement with a low response time on these
channels.
•Most Reputed Brand: The brand has always been recognized as a leading FMCG
company and enjoys an excellent reputation.
•Marketing: HUL products have good visibility thanks to strong advertising via TV ads,
print ads, online ads, social media engagement and digital marketing .
11. W Stands For Weaknesses ( Internal Factor )
Declining Market Share: competitors focusing on a particular product eating
up HUL’s share, such as Ghadi & Nirma detergents eating up HUL’s market share
in wheel washes.
Large selection of brands in various product categories: A large portfolio of
brands often leads to incorrect positioning. Price placement in some segments
ensures low price competition, such as the market share gained by Amul from
Quality.
Limited Market Share: The market share of HUL is limited due to the presence
of other strong FMCG brands.
12. O Stands For Opportunities ( External Factor )
Expanding the market: Greater penetration of rural markets through Project
Shakti AMMA and the transition from unorganized to organized enterprises will
lead to further expansion of the consumer market.
Awareness of the use of consumer products: advertising, word of mouth and
medical prescribing raise people’s awareness of the use of consumer products,
leading to an increase in the rate of use of these products.
Growing income level: due to a stable political situation, higher literacy rate
and regulated inflation, people’s disposable income is increasing, leading to
higher demand and changing lifestyles.
Ayurvedic products: May start manufacturing or marketing Ayurvedic
products under the brand name of HUL.
Partnerships: Mergers and acquisitions can further strengthen the brand in a
long run.
13. T Stands For Threats ( External Factor )
Market competition: with the increasing number of local and national suppliers, it is
becoming very difficult for businesses to differentiate themselves from others. There is
also a risk of counterfeit products destroying the brand image in the market.
Price of raw materials: rising prices of raw materials will lead to further increases in
prices. The further price increase will lead to a decrease in sales, profit margins and
brand switching.
Buyer Power: In a highly diversified consumer goods market, where many brands are
promising different benefits, it is very difficult for consumers to get loyal to a particular
brand. This leads to brand switching where consumers have the power to choose a
brand based on various factors such as availability, recommendations from reference
groups, preferences and price.
Government regulations: Changing government norms and regulations can also
directly affect business policies and practices.
14. SWOT Analysis Of HUL ( Hindustan Unilever Limited ) Key Takeaways
The SWOT Analysis of HUL ( Hindustan Unilever Limited ) highlights
where the brand currently stands and its threats in this era. Following the
detailed SWOT Analysis of Hindustan Unilever Limited ( HUL ) Here are a
Few Important Key Points.
•Strong Promoter
•Strong Market Share
•Highly Preferred Brand
•Supply Chain System
15. Suggestions:
Following the detailed SWOT Analysis of HUL ( Hindustan Unilever Limited ),
we have a few suggestions from Business Mavericks:
1.HUL needs to focus more on advancing its supply chain system and
manufacturing department.
2.HUL needs to focus on the quality and also quantity of the product
3.HUL needs to launch more Ayurvedic products and more.
19. HUL 2020-21 Annual Report Analysis
HUL Income Statement Analysis
• Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.9% YoY during the fiscal. Operating
profit margins witnessed a fall and stood at 24.2% in FY21 as against 24.3% in FY20.
• Depreciation charges increased by 7.2% and finance costs decreased by 0.8% YoY,
respectively.
• Other income declined by 35.1% YoY.
• Net profit for the year grew by 18.4% YoY.
• Net profit margins during the year grew from 16.7% in FY20 to 16.9% in FY21.
20. No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 397,830 470,290 18.2%
Other income Rs m 6,320 4,100 -35.1%
Total Revenues Rs m 404,150 474,390 17.4%
Gross profit Rs m 96,550 113,860 17.9%
Depreciation Rs m 10,020 10,740 7.2%
Interest Rs m 1,180 1,170 -0.8%
Profit before tax Rs m 91,670 106,050 15.7%
Tax Rs m 24,110 26,060 8.1%
Profit after tax Rs m 67,560 79,990 18.4%
Gross profit margin % 24.3 24.2
Effective tax rate % 26.3 24.6
Net profit margin % 16.7 16.9
HUL Income Statement 2020-21
21. Current Valuations for HUL
• The trailing twelve-month earnings per share (EPS) of the company stands at Rs
34.0, an improvement from the EPS of Rs 31.2 recorded last year.
• The price to earnings(P/E)ratio , at the current price of Rs 2,444.6, stands at 71.8
times its trailing twelve months earnings.
• The price to book value(P/BV) ratio, at current price levels stands at 11.1 times,
while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at 63.3 times its end-of-year
operating cash flow earnings.
22. HUL Share Price Performance
Over the last one year, HUL share price has moved up from
Rs 2,185.3 to Rs 2,444.6, registering a gain of Rs 259.3 or
around 11.9%.
Meanwhile, the S&P BSE FMCG Index is trading at Rs 13,573.3
(down 0.7%). Over the last one year it has moved up from
11,357.8 to 13,573.3, a gain of 2,215 points (up 19.5%).
Overall, the S&P BSE SENSEX is up 44.1% over the year.
Editor's Notes
Type public
Industry consumer goods
Founded 1933; 89 [years ago]
Headquarter Mumbai, India
CEO Sanjeev Mehta
Why hindustan unilever products is the Reasons Why Hindustan Unilever Is the Most Successful FMCG Co.
