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Company Analysis
Retail market in India is
estimated to reach by 2020
Revenues of FMCG sector
Industry Overview (FMCG)
$52.75B
Estimated to reach US$
103.7 billion in 2020​
16.5%
supported by moderate
inflation, increase in
private consumption and
rural income
$1.1T
from US$ 840 billion in 2017,
with modern trade expected to
grow at 20 per cent - 25 per
cent per annum, which is likely
to boost revenues of FMCG
companies​
2
Growth in value terms
between July-September 2018
In November 2019, ITC Ltd acquired 33.42 per cent stake in Delectable TechnologiesNestle plans to invest Rs 700 crore (US$ 100.16 million) to open a new plant in Sanand for MaggiITC to invest Rs 700 crore (US$ 100 million) in food park in Madhya Pradesh
FMCG
3
Insight
Current Affairs
4
GlaxoSmithKline Plc is selling its entire stake in
Unilever’s listed India unit for about $3.3 billion,
according to terms seen by Bloomberg
Tie up with UNICEF Acquired Horlicks Donating Product
for better health
Partnership for
better infrastructure
Extending
#breakthechain
Program to tea
estates
Custom
er
centrici
ty
Analyti
cal
Approa
ch
Custom
er
Contin
ence
Custom
er
Engage
ment
Custom
er
Sentim
ent
Driving Factor of FMCG
5
Internal
External
Oil/Gas
Prices
Labor
Market
wages
Strengt
h of
Dollar
Raw
materia
l cost
Dispos
able
Income
Pros
Particularly in India.
Policy Support
• Food Security Bill &
Transfer Subsidies
• Foreign Equity of
100% in single &
51% in multi brand
Higher
Investment
• Motivation to
investors.
• $15.94 B FDI during
2000 to 2019.
Attractive
Opportunities
• Disposable income
and low penetration
in rural market.
Growing Demand
• Consumption to 5.8%
by 2020.
• Rural Consumption
26%.
6
HUL OVERVIEW
7
VIDEO IG
Incorporated in 1933​
Industry Consumer Goods​
Headquarters Mumbai, Maharashtra​
Turnover 25,206 Cr.
People 16000 Employees including
1500 Managers​
Percentage Part of € 44.3 Billions of
Unilever Group​
Reach 6.4 Million Retail Outlets
R&D Centers Mumbai & Bangalore, India​
Timeline
Journey of HUL as well as Unilever.
1888: Sunlight soap introduced in India.
1895: Lifebuoy
soap launched;
Lever Brothers
appoints agents in
Mumbai, Chennai,
Kolkata, and
Karachi.
1902: Pears soap introduced in India.
1903: Brooke Bond
Red Label tea
launched.
1926: Hartogs
registers Dalda
Trademark.
1937: Mr. Prakash
Tandon, one of the
first Indian
covenanted
managers, joins
HVM.
1955: 65% of
managers are
Indians.
1961: Mr. Prakash Tandon
takes over as the first Indian
Chairman; 191 of the 205
managers are Indians.
About
#HULStandsWithTheNation
Vision
To grow our business,
while decoupling our
environmental footprint
from our growth and
increasing our positive
social impact.
Mission
To add vitality to life. We
meet everyday needs for
nutrition, hygiene and
personal care with
brands that help people
feel good, look good and
get more out of life.
Purpose, values &
principles
The highest standards of
corporate behavior
towards everyone we
work with, the
communities we touch,
and the environment on
which we have an
impact.
9
Sanjiv Mehta is the
Chairman and Managing
Director of HUL since
30th June, 2018.
Product Mix
10
HUL
Home &
Personal
Care
Personal
Wash
LUX
Lifebuoy
Liril
Humam
Breeze
Dove
Pears
Rexona
Laundry
Surf Excel
Rin
Wheel
Skin Care
Fair &
Lovely
Ponds
Vaseline
Hair Care
Clinic Plus
Sunsilk
Oral Care
Close-up
Pepsudent
Deodorants
AXE
Rexona
Beverages
Tea
Brorke
Bond
Lipton
Coffee
Bru
26%
48%
11%
4%
1%
8% 2%
Revenue Share
Personal Products
Soaps &
Detergents
Beverages
Exports
Food (Bakery)
Other Operations
HUL - BCG Matrix
Question Mark
Cash Cow
Star
Dog
11
MarketGrowth
High
Low
Low
High
Market Share
The Competitors
ITC
ITC Limited is an Indian
multinational
conglomerate company
headquartered in
Kolkata, West Bengal.
P&G
The Procter & Gamble
Company is an American
multinational consumer
goods corporation
headquartered in
Cincinnati, Ohio.
Colgate-Palmolive
Colgate is an American
brand principally used
for oral hygiene products
such as toothpastes,
toothbrushes,
mouthwashes and dental
floss.
Nestle
Nestlé S.A. is a Swiss
multinational food and
drink processing
conglomerate
corporation
headquartered in Vevey,
Vaud, Switzerland.
Loreal
L'Oréal S.A. is a French
personal care company
headquartered in Clichy,
Hauts-de-Seine with a
registered office in Paris.
12
The Competitors
Dabur
Dabur is an Indian
consumer goods
company founded in
1884 by S. K. Burman.
Godrej
The Godrej Group is an
Indian conglomerate
headquartered in
Mumbai, Maharashtra,
India, managed and
largely owned by the
Godrej family.
Patanjali
Patanjali Ayurved
Limited is an Indian
consumer goods
company.
Emami Limited
Emami Group is an
Indian conglomerate
company headquartered
in Kolkata, India.
Marico
Marico Limited is one of
India's leading consumer
goods companies
providing consumer
products and services in
the areas of health,
beauty and wellness.
13
Forecast
Forecasting for Sale & Profit
SALES
(Rs. In Cr)
PROFIT
(Rs. in Cr)
2016
31,061 4,137
2017
31,890 4,490
2018
34,525 5,237
2019
38,224 6,036
2020
38,785 6,738
2021
41432.41 7352.418898
2022
43609.28 8137.825861
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2016 2017 2018 2019 2020 2021 2022
Sale & Profit
14
SWOT Analysis
15
Strength
ThreatsWeakness
Opportunity
• Brand visibility​
• Market leader in
consumer goods ​
• Innovative FMCG
company​
• High Brand awareness​
• Product line​
• Financial position ​
• Market share ​
• Strong distribution
network​
• Largest exporter of the
country
• Strong Competitors​
• Changing consumption
pattern​
• High advertising costs​
• Low export level​
• Large number of brands
in different product
categories​
• HUL is continuously
loosing its market share
due to presence of
other strong FMCG
brands.​
• Tap rural markets and
increase penetration in
urban areas​
• Mergers and
acquisitions ​
• New brand segments
like medicines etc.​
• Diversification ​
• Expansion of horizon
outside Asia​
• Competition in the
market​
• Price of commodities ​
• Buyers power​
• Food price inflation and
economic slowdown
PESTLE Analysis
16
• HUL is subject to laws and regul
ations both locally and globally.
• Restrictions: Imports, Exports,
or Trade Laws
“ ” • COVID-19 have a great impact
on consumer behaviour.
• Reduced consumer wealth.
“ ” • The company expresses a
strong desire to help people feel
and look good, while also living
the life they deserve.
Particularly with Dove, focuses
on helping women feel their
best from the inside out.
“ ”
• HUL has a higher level of
automation, especially
compared to its competitors;
allowing to supply products to
store locations quickly.
“ ”
• HUL promotes sustainable and
renewable resources.
• The materials are eco-friendly,
from packaging to design.
“ ” • HUL is subjected to many laws
and legalities.
• Each brand and location of
stores are subject to follow
copyright, product safety, laws
regarding health and safety of
employees, and taxes.
“ ”
POLITICAL
TECHNOLOGICAL
SOCIO-CULTURE
ENVIRONMENTAL LEGAL
ECONOMICS
A friend to the Earth
Competition is ready Heavy emphasis on image
Automation is key It never ends
Its Politics!
PORTER’S 5 FORCE MODEL Analysis
• The cost of switching for the
customers is really low so they can
easily transfer or switch from the
HUL.
• Perfect competition market – grater
knowledge of the product.
“ ”
• Competition is one of the most
important external factors to
consider.
• Factors such as, large number of
firms and high aggressiveness, and
the low switching costs.
“ ”
Everything worked seamlessly!
“ ”
Ian Hansson, Head of Technical
17
• The reason is that HUL has won the
trust of its customers by proffering
the high-quality products at fair
prices which makes HUL the best
choice for all the customers.
“ ”
• Moderate overall supply, the
moderate population of suppliers
as well as the moderate size of
individual suppliers.
• HUL has good relation with
supplier as with the customer.
“ ”
• As the first and foremost thing to
consider in this regard is the high
cost of brand development and the
second thing is high economies of
scale.
“ ”Threat of New Entrant Threat of Substitution
Bargaining Power of Buyers
Bargaining Power of Supplier
Competitive Rivalry
M
H
L
H
L
○ Its portfolio includes leading household
brands such as Lux, Lifebuoy, Surf Excel,
Rin, Wheel, Fair & Lovely, Pond’s,
Vaseline, Lakmé, Dove, Clinic Plus,
Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality
Wall’s and Pureit
○ The Company has about 21,000
employees and has sales of INR 38,273
crores (the financial year 2019-20)
○ Unilever has over 67% shareholding in
HUL
Conclusion
Amongst the leading retailers, Dabur generates over 40-45 per cent
of its domestic revenue from rural sales. HUL rural revenue
accounts for 45 percent of its overall sales while other companies
earn 30- 35 per cent of their revenues from rural areas 18
Reference
• www.unilever.com
• www.hul.co.in
• www.ibef.com
• finance.yahoo.com
• https://www.ukessays.com/essays/marketin
g/the-hindustan-unilever-limited.php
• https://www.brandlanes.com/blog/swot-
analysis-of-hindustan-unilever/
• https://www.slideshare.net/RavinGandhi/hu
l-14285591
19
Team
Anima Kumari
192FCMD009
Baishali
Chakraborty
192FCMD014
Madhu Sharma
192FCMD035
20
Reshmi
Shrivastav
192FCMD058
Shireen Sk
192FCMD065
Shailendra
Singh
192FCMD066
Vishal Sharma
192FCMD076
Thank
You!

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FMCG Industry Analysis: HUL's Growth in India

  • 2. Retail market in India is estimated to reach by 2020 Revenues of FMCG sector Industry Overview (FMCG) $52.75B Estimated to reach US$ 103.7 billion in 2020​ 16.5% supported by moderate inflation, increase in private consumption and rural income $1.1T from US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues of FMCG companies​ 2 Growth in value terms between July-September 2018 In November 2019, ITC Ltd acquired 33.42 per cent stake in Delectable TechnologiesNestle plans to invest Rs 700 crore (US$ 100.16 million) to open a new plant in Sanand for MaggiITC to invest Rs 700 crore (US$ 100 million) in food park in Madhya Pradesh
  • 4. Current Affairs 4 GlaxoSmithKline Plc is selling its entire stake in Unilever’s listed India unit for about $3.3 billion, according to terms seen by Bloomberg Tie up with UNICEF Acquired Horlicks Donating Product for better health Partnership for better infrastructure Extending #breakthechain Program to tea estates
  • 5. Custom er centrici ty Analyti cal Approa ch Custom er Contin ence Custom er Engage ment Custom er Sentim ent Driving Factor of FMCG 5 Internal External Oil/Gas Prices Labor Market wages Strengt h of Dollar Raw materia l cost Dispos able Income
  • 6. Pros Particularly in India. Policy Support • Food Security Bill & Transfer Subsidies • Foreign Equity of 100% in single & 51% in multi brand Higher Investment • Motivation to investors. • $15.94 B FDI during 2000 to 2019. Attractive Opportunities • Disposable income and low penetration in rural market. Growing Demand • Consumption to 5.8% by 2020. • Rural Consumption 26%. 6
  • 7. HUL OVERVIEW 7 VIDEO IG Incorporated in 1933​ Industry Consumer Goods​ Headquarters Mumbai, Maharashtra​ Turnover 25,206 Cr. People 16000 Employees including 1500 Managers​ Percentage Part of € 44.3 Billions of Unilever Group​ Reach 6.4 Million Retail Outlets R&D Centers Mumbai & Bangalore, India​
  • 8. Timeline Journey of HUL as well as Unilever. 1888: Sunlight soap introduced in India. 1895: Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. 1902: Pears soap introduced in India. 1903: Brooke Bond Red Label tea launched. 1926: Hartogs registers Dalda Trademark. 1937: Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM. 1955: 65% of managers are Indians. 1961: Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.
  • 9. About #HULStandsWithTheNation Vision To grow our business, while decoupling our environmental footprint from our growth and increasing our positive social impact. Mission To add vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Purpose, values & principles The highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact. 9 Sanjiv Mehta is the Chairman and Managing Director of HUL since 30th June, 2018.
  • 10. Product Mix 10 HUL Home & Personal Care Personal Wash LUX Lifebuoy Liril Humam Breeze Dove Pears Rexona Laundry Surf Excel Rin Wheel Skin Care Fair & Lovely Ponds Vaseline Hair Care Clinic Plus Sunsilk Oral Care Close-up Pepsudent Deodorants AXE Rexona Beverages Tea Brorke Bond Lipton Coffee Bru 26% 48% 11% 4% 1% 8% 2% Revenue Share Personal Products Soaps & Detergents Beverages Exports Food (Bakery) Other Operations
  • 11. HUL - BCG Matrix Question Mark Cash Cow Star Dog 11 MarketGrowth High Low Low High Market Share
  • 12. The Competitors ITC ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal. P&G The Procter & Gamble Company is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. Colgate-Palmolive Colgate is an American brand principally used for oral hygiene products such as toothpastes, toothbrushes, mouthwashes and dental floss. Nestle Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. Loreal L'Oréal S.A. is a French personal care company headquartered in Clichy, Hauts-de-Seine with a registered office in Paris. 12
  • 13. The Competitors Dabur Dabur is an Indian consumer goods company founded in 1884 by S. K. Burman. Godrej The Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India, managed and largely owned by the Godrej family. Patanjali Patanjali Ayurved Limited is an Indian consumer goods company. Emami Limited Emami Group is an Indian conglomerate company headquartered in Kolkata, India. Marico Marico Limited is one of India's leading consumer goods companies providing consumer products and services in the areas of health, beauty and wellness. 13
  • 14. Forecast Forecasting for Sale & Profit SALES (Rs. In Cr) PROFIT (Rs. in Cr) 2016 31,061 4,137 2017 31,890 4,490 2018 34,525 5,237 2019 38,224 6,036 2020 38,785 6,738 2021 41432.41 7352.418898 2022 43609.28 8137.825861 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2016 2017 2018 2019 2020 2021 2022 Sale & Profit 14
  • 15. SWOT Analysis 15 Strength ThreatsWeakness Opportunity • Brand visibility​ • Market leader in consumer goods ​ • Innovative FMCG company​ • High Brand awareness​ • Product line​ • Financial position ​ • Market share ​ • Strong distribution network​ • Largest exporter of the country • Strong Competitors​ • Changing consumption pattern​ • High advertising costs​ • Low export level​ • Large number of brands in different product categories​ • HUL is continuously loosing its market share due to presence of other strong FMCG brands.​ • Tap rural markets and increase penetration in urban areas​ • Mergers and acquisitions ​ • New brand segments like medicines etc.​ • Diversification ​ • Expansion of horizon outside Asia​ • Competition in the market​ • Price of commodities ​ • Buyers power​ • Food price inflation and economic slowdown
  • 16. PESTLE Analysis 16 • HUL is subject to laws and regul ations both locally and globally. • Restrictions: Imports, Exports, or Trade Laws “ ” • COVID-19 have a great impact on consumer behaviour. • Reduced consumer wealth. “ ” • The company expresses a strong desire to help people feel and look good, while also living the life they deserve. Particularly with Dove, focuses on helping women feel their best from the inside out. “ ” • HUL has a higher level of automation, especially compared to its competitors; allowing to supply products to store locations quickly. “ ” • HUL promotes sustainable and renewable resources. • The materials are eco-friendly, from packaging to design. “ ” • HUL is subjected to many laws and legalities. • Each brand and location of stores are subject to follow copyright, product safety, laws regarding health and safety of employees, and taxes. “ ” POLITICAL TECHNOLOGICAL SOCIO-CULTURE ENVIRONMENTAL LEGAL ECONOMICS A friend to the Earth Competition is ready Heavy emphasis on image Automation is key It never ends Its Politics!
  • 17. PORTER’S 5 FORCE MODEL Analysis • The cost of switching for the customers is really low so they can easily transfer or switch from the HUL. • Perfect competition market – grater knowledge of the product. “ ” • Competition is one of the most important external factors to consider. • Factors such as, large number of firms and high aggressiveness, and the low switching costs. “ ” Everything worked seamlessly! “ ” Ian Hansson, Head of Technical 17 • The reason is that HUL has won the trust of its customers by proffering the high-quality products at fair prices which makes HUL the best choice for all the customers. “ ” • Moderate overall supply, the moderate population of suppliers as well as the moderate size of individual suppliers. • HUL has good relation with supplier as with the customer. “ ” • As the first and foremost thing to consider in this regard is the high cost of brand development and the second thing is high economies of scale. “ ”Threat of New Entrant Threat of Substitution Bargaining Power of Buyers Bargaining Power of Supplier Competitive Rivalry M H L H L
  • 18. ○ Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit ○ The Company has about 21,000 employees and has sales of INR 38,273 crores (the financial year 2019-20) ○ Unilever has over 67% shareholding in HUL Conclusion Amongst the leading retailers, Dabur generates over 40-45 per cent of its domestic revenue from rural sales. HUL rural revenue accounts for 45 percent of its overall sales while other companies earn 30- 35 per cent of their revenues from rural areas 18
  • 19. Reference • www.unilever.com • www.hul.co.in • www.ibef.com • finance.yahoo.com • https://www.ukessays.com/essays/marketin g/the-hindustan-unilever-limited.php • https://www.brandlanes.com/blog/swot- analysis-of-hindustan-unilever/ • https://www.slideshare.net/RavinGandhi/hu l-14285591 19