Hindustan Unilever Limited (HUL) is India's largest FMCG company. It has a portfolio of brands in home and personal care such as Lux, Lifebuoy, Surf Excel, Fair & Lovely, and Dove. The FMCG sector in India is estimated to reach $103.7 billion by 2020, growing at 16.5% annually. HUL generates over 45% of its revenue from rural India. It has a strong distribution network of over 6.4 million retail outlets across the country. HUL faces competition from other FMCG giants like ITC, P&G, Nestle and Dabur. Its future growth prospects lie in expanding its rural footprint and product portfolio
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
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%.
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7. HUL OVERVIEW
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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.
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.
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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.
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15. SWOT Analysis
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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
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• 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
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• 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