This document provides an overview of the Indian FMCG sector and Hindustan Unilever Limited (HUL). It discusses that the Indian FMCG sector is the 4th largest sector in India with an estimated size of Rs. 1,300 billion. It then lists the top 10 companies in the FMCG sector. The rest of the document focuses on providing details about HUL, including its mission, vision, portfolio of brands, strategies and financial performance.

1. Contents
1 About The Company
2 India FMCG Market
3 Our Strategy
4 Financial Information, Share
5 Corporate Governance

2. Indian FMCG sector
• 4th Largest sector in the economy with an
estimated size of Rs.1,300 billion.
• The sector has shown an average annual growth
of about 11% per annum over the last decade.
• Characteristics: Strong MNC Pressure, Well
established distribution network, intense
competition between the organized and
unorganized players, Easy availability of raw
material, cheaper labor cost

3. THE TOP 10 COMPANIES IN FMCG SECTOR
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7.Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries

4. FMCG Market Opportunity
137
62
87
58
28
FY 10 E FY15P FY20P
Base case
High case

5. Key growth drivers to the Industry are
as follows:
• Robust growth in India’s GDP
• Growing urbanization
• Evolving consumer life style
• Increased income in rural areas
• Spending Pattern
• Changing Profile and Mind Set of Consumer
• Growth of modern retail

6. Presented by: Sourabh, Laltendu & Shweta
Date: 11th Aug 2012
MPE Batch IV

7. Introduction to Hindustan Unilever Limited

8. Mission And Vision
We work to create a better future everyday.
We help people feel good, look good and get more out of life with
brands and services that are good for them and good for others.
We will inspire people to take small everyday actions that can add
up to a big difference for the world.
We will develop new ways of doing business that will allow us to
double the size of our company while reducing our environmental
impact.

9. India’s Largest FMCG Company
More than 75 years
of experience in
India
Products touch the
lives of 2 out of 3
Indians everyday
Direct distribution
reach of > 2 Mn
stores
7 brands > Rs. 1000 crs; 13 brands > Rs. 500 crs No.1 and strong
17 out of top 100 most trusted brands in India^ No.2 in more than
95% of the business

10. Portfolio straddling the pyramid
Fabric Cleaning Skin Cleansing Hair Skincare Tooth Paste
Soaps & Detergents: 48% Personal Products: 31%

11. Portfolio straddling the pyramid
Tea Coffee Processed Foods Ice Creams Water
Beverages: 12% Packaged Foods: 6% Others: 3%

12. Our Strategy
Strategic framework Sustainable Living Plan Our Goals
Consistent Growth
Competitive Growth
Profitable Growth
Responsible Growth

13. Winning Principles
Our first priority is to our consumers, then customers, employees
and communities. When we fulfill our responsibilities to them
our shareholders will be rewarded.

14. How Will We Win

15. How Will We Win
30 million people reached with Lifebuoy soap handwashing
programmes in 2010-11
30 million people have gained access to safe drinking water by
using Pureit in-home water purifier, since 2005
Around 60%of our major food and beverage brands – Brooke Bond,
Bru, Knorr, Kissan and Kwality Wall’s – comply with the ‘Healthy
Choice’ guidelines’
Reduced CO2 emissions by 14.7%, water use by 21.5% and waste
by 52.8% in our factories, over 2008 baseline
Improved CO2 efficiency in transportation by 17.8%
60% of tomatoes in Kissan Ketchup are sourced sustainably

16. Unilever Sustainable Living Plan - Three big goals

17. How Will We Win

18. HUL Financial Performance

19. Corporate Governance

20. Financial year 2011-2012 - Results

21. Strength
HLL enjoys a formidable distribution network covering over 3400 distributors and 16
million outlets. This helps them maintain heavy volumes, and hence, filth shelves of most
outlets.
The new sales organization named 'One HLL' brings "Household and Personal Care" and
foods distribution networks together, thereby aligning all the units towards the common
goal of achieving success.
HLL has been continuously able to grow at a rate more than growth rate for FMCG Sector,
thereby reaffirming its future stronghold in Indian market.
Project Shakti - Rural India is spread across 627,000 villages and possesses a serious
distribution challenge for FMCG Cos.
HLL has come up with a unique and successful initiative wherein the women from the
rural sector market HLL products, and hence, are able to reach the same wavelength as of
the common man in village.
Apart from product reach, the initiative also creates brand awareness amongst the lower
strata of society. This has brought about phenomenal results.

22. Weakness
HLL's market dominance, originating from its extensive reach and strong brand presence,
allowed it to raise the prices even as raw materials were getting cheaper.
Hence, though the volumes decreased, the margins grew, and company was able to earn
more profits. But higher margins attracted competition in areas of operations.
HLL's strategy remained focused on creating power brands and earning higher margins. It
was not left with any other option but to try cutting down the costs in order to protect
volumes, if not increase it.
The key differentiators for an FMCG player are ability to call shots and pricing power, and
HLL has shown weakness over both these factors.
HLL's weakness was its inability to transform its strategies at the right time. They
continued with the same old strategy which helped them gain profits but was not genuine
in this changed environment.
HLL's risk aversion and market myopia led to stagnation of business, andferocity of
competition forced it into a defensive mode.

23. Opportunity
India is one of the world's largest producer of FMCG goods but its exports areminiscule as
compared to production.
Though Indian Cos. have been going global, their focus is more towards Asian countries
because of the similar preferences.
HLL is one of the top companies exporting FMCG goods from India. An expansion of
horizons towards more and more countries would help HLL grow its consumer base and
henceforth the revenues.
Opportunity in Food Sector - The advent of modern trade has opened up greater
opportunities for HLL to diversify its brand and strength its food division. It could look at
introducing products from its parents stable like margarines and could also look at
expanding its Knorr range of products.
Well-placed to take advantage of future FMCG Growth - HLL reach out 80% of 207 million
households in the country through various brands. It has a very well-defined product
portfolio spread across many product categories.
Penetration levels for some major categories like skin-cream (22%), shampoo(38%),
toothpaste (48%) and processed foods, continue to remain low offerings but great
growthopportunities products

24. Threats
ITC has reduced its dependence on the cigarettes business - Contribution
of the core business in revenues has come down from 87% in FY 99 to 70%
in FY 05.
Over a period of five years, ITC has extended its presence into areas like
foods, retailing, hotels, greetings, agro, paper, etc. These are businesses
that can give it growth impetus in the long run.
With ITC gaining momentum in each of these businesses, it is turning into
a consumer monolith, and hence, the greatest threat to HLL's Business.
SSKI India has gone on to say, "We maintain Out performer on ITC with a
price target of Rs.2200, while our Under performer call on HLL remains
unaltered (price target of Rs. 160)."

25. Two billion times a day, P&G brands touch the
lives of people
around the world. P&G people work to make
sure those brands live
up to their promise to make everyday life just a
little bit better.
At P&G, we see big potential in the little moments of life.
Touching lives, improving life.

26. Some Key Facts
• Founded in 1837 by William Proctor & James Gamble.
• Headquartered in Cincinnati, Ohio, USA
• Operations in 80 countries.
• Brand available in more than 180 countries worldwide.
• Established in India in 1964.
• P&G operates under three entities in India - two listed
entities “Procter & Gamble Hygiene and Health Care
Limited” and ‘Gillette India Limited’, as well as one
100% subsidiary of the parent company in the U.S.
called ‘Procter & Gamble Home Products’.

28. • Vision:
Be, and be recognized as, the best consumer products
and services company in the world.
• Mission:
We will provide branded products and services of
superior quality and value that improve the lives of the
world's consumers. As a result, consumers will reward us
with leadership sales, profit, and value creation, allowing
our people, our shareholders, and the communities in
which we live and work to prosper."

30. Our Principles
• We Show Respect for All Individuals
• The Interests of The Company and The Individual Are Inseparable
• We Are Strategically Focused in Our Work
• Innovation Is The Cornerstone of Our Success
• We Are Externally Focused
• We Value Personal Mastery
• We Seek to Be The Best
• Mutual Interdependency Is a Way of Life

31. P&G SWOT Analysis
Strengths Weakness
• Product innovation • Views Product performance only
• Offers multiple Products • Increased promotional spending to
• Strong Brand Image keep health sales
• Strong Customer Loyalty • Customer concentration
• Diversified Business Structure
Opportunities Threats
• Going Green Eco Friendly High levels of competition
• Emerging Markets • Raw material and energy price
• Selling directly to consumers increases
• Better Product Experience • Potential Gillette integration
Vicks banned in US market
Slow down in consumer spending
Substitute products have cheaper price

32. Porter's 5 forces model
 Threat of Competition
 Threat of New Entrants
 Threat of Substitutes
 Power of Suppliers
 Power of Buyers

33. Threat of Competition: HIGH
 P&G’s market environment is highly competitive, with global, regional, and local
competitors. In many of the markets and industry segments in which P&G sells
its products, P&G competes against other branded products as well as retailers’
private-label brands.
 There are many different options for consumer products. Consumers can choose
not solely based on price but also brand strength and now there is even a push
for environmentally friendly products. Although the options are abundant, the
threat is still more moderate because of the brand equity in most products.
Advertising and marketing are a large part of swaying consumers to purchase one
product over another and the economies of scale that are presented with large
companies (P&G) favor them in the advertising. Advertising also helps establish
the brand loyalty.
 Although the consumer has many options to choose from it all comes down to
the value and quality of the product. Product quality and performance are
important and P&G focuses on providing a quality offering to the consumer.
Competition is even present with the non-branded products and with consumer
spending and disposable income low, competition is increasing.

34. Threat of New Entrants: LOW-MODERATE
 The threat of new entrants seems to be low overall but it depends on which
business segment of Procter & Gamble the threat is coming from. It is a low
probability for a new entrant to become as big and as well capitalized as P&G.
The biggest barriers to entry are derived from research and development. Since
competition is somewhat intense, a new entrant must enter the market with a
product that is differentiated. Again, reputable companies with successful brand
names have established relationships with retailers and have advantages when
competing for shelf space. Nearly all the markets that P&G participates in are
mature markets making it less attractive for new entrants.

35. Threat of Substitutes: LOW-MODERATE
 The threat of substitutes is moderate and not high because most of the products
that P&G sells are necessities. There is no substitute for laundry detergent
besides different types of laundry detergent. The only true substitute is to not
wash your clothes or wash them without laundry detergent. It is similar for
shaving and using diapers. However, some of the business segments i.e. snacks
and beauty do have substitute products. That is why the threat of substitutes is
low to moderate.

36. Power of Suppliers: LOW
 Procter & Gamble does not seem to have any reliance on specific suppliers and
P&G forms joint ventures and partnerships for new products. The sheer size of
P&G also helps it deal with suppliers in delivering the product because
companies want to work with P&G.

37. Power of Buyers: MODERATE
 The power of buyers is moderate because as mentioned, 15% of P&G’s sales are
to Wal-Mart who is a very demanding buyer. There are two tiers of buyers, the
retailers and the end consumer. The retailers have more power in dealing with
P&G because they have large contracts for many stores (Wal-Mart stores,
Albertsons). Yet, many of these retailers enjoy having P&G products because of
the profit potential they bring. The end consumer has moderate to high power.
Although they have the decision on choosing substitutes or the competition, the
success of P&G’s brands and the brand loyalty they have created thus far have
shown that the consumers enjoy its products.

38. Product Categories of P&G
Segment Categories
Beauty Antiperspirant and Deodorant, Cosmetics, Hair Care, Hair
Color, Hair Styling, Personal Cleansing, Prestige Products,
Salon Professional, Skin Care
Grooming Blades and Razors, Electronic Hair Removal Devices, Shave
Products, Home Small Appliances
Health Care Feminine Care, Gastrointestinal, Incontinence, Rapid
Diagnostics, Respiratory, Toothbrush, Toothpaste, Water
Filtration, Other Oral Care

39. Product Categories of P&G Cont.
Segment Categories
Fabric Care & Home Care Laundry Additives, Air Care, Batteries,
Dish Care, Fabric Enhancers, Laundry
Detergents, Surface Care
Baby Care and Family Care Baby Wipes, Diapers, Paper Towels,
Tissues, Toilet Paper

40. P&G Global Brands- More than 300 brands
23 brands with annual sales of a billion dollars or more.
 Actonel- A prescription medication to treat and prevent postmenopausal osteoporosis.
 Always/Whisper- Women around the world count on Always and Whisper feminine
protection.
 Ariel- Fabric cleaning and care at its best.
 Bounty- Spills happen. With the Quilted Quicker Picker-Upper paper towel, cleanup is
easy.
 Braun Electric Razor- Keeping millions of men well-shaved and well-groomed.
 Charmin- America’s favorite bathroom tissue.
 Crest- Oral care products creating beautiful, healthy smiles every day.
 Dawn- No matter what your dishwashing need, Dawn has a product that’s right for you.
 Downy/Lenor- Laundry feels soft and smells fresh because of Downy and Lenor.
 Duracell- You can depend on powerful, long-lasting Duracell batteries.

41. P&G Global Brands- More than 300 brands
23 brands with annual sales of a billion dollars or more.
 Folgers-Millions of Americans wake up with Folgers coffee every day.
 Gain- Laundry detergent that delights scent-seekers.
 Gillette Gel- Get a close shave, with comfort.
 Gillette MACH3 Razor- Battery-powered shaving. Push the button, feel the power.
 Head & Shoulders- Smooth, beautiful, flake-free hair. It’s not what you’d expect in a
dandruff shampoo. Head & Shoulders has 12 customized formulas – one just for you.
 Iams - Nutrition for every life stage and lifestyle of your pet.
 Olay- Designed for women of all ages to “love the skin they’re in.”
 Oral-B- Dental hygiene products used by dentists themselves.
 Pampers- Millions of babies experience the comfort and dryness of Pampers diapers.
 Pantene- Hair around the world shines because of Pantene hair care products.
 Pringles- Potato chips: Once you “pop,” the fun doesn’t stop!
 Tide- Tough cleaning power that gets out laundry stains.
 Wella- Hair care products used in salons and at home.

42. P&G India Brands
Though we strive hard to keep our homes and our cars clean
and tidy, the results are rarely satisfactory. Odours that linger
in our homes just before guests arrive, or a persistent stench
that never leaves the car, not only adversely affect our mood,
but also that of our guests. With this in mind, P&G experts
have bottled the fragrance of freshness with the new Ambi
Pur range for both homes and cars.
Introduced in 1991, Ariel was the first to bring the 'compact
detergent' technology, the enzyme technology for safe and
superior stain-removing power and the 'smart eyes'
technology into India, with an aim of becoming India's best
stain removal detergent. Ariel contains safe ingredients for all
fabrics under recommended usage conditions for laundry. The
Ariel product range in India includes different variants to meet
your specific needs like Ariel OxyBlu, Ariel Oxyblu Ultramatic,
Ariel Front O Mat, Ariel 2in1.
Duracell batteries have a history of providing dependable
power when and where you need it the most. Our range of
Batteries gives you the right power for all your device needs,
providing up to 10x performance. The product range in India
includes Duracell and Duracell Ultra. Duracell is available in
sizes AAA, AA, C, D, and 9-volt while Duracell Ultra is available
in sizes AA and AAA sizes.

43. P&G India Brands Cond…
Oral-B continuously strives to work closely with the dental
professionals and deliver high quality products, which make
us leaders* in the $ 4.5 billion toothbrush category.In India,
Oral-B has an innovative range of toothbrushes including
Cross Action Pro-health 7 Benefits, CrossAction Pro-health
Superior Clean and Advantage Sensitive toothbrush. Oral-B’S
floss range includes Ultra Floss & Essential Floss.
As a result of constant research and innovation in
understanding the needs of babies at various stages of
development, Pampers Active Baby has been voted as the
best diaper by Indian moms with the guarantee of superior
dryness for an uninterrupted sleep of 12 hours. Pampers has
an answer for all your needs with its innovative product range
that includes Pampers, Pampers Active Baby, Pampers Active
Baby Pants, all designed especially for providing a night of
Golden Sleep for the baby.
The New Pantene Amino Pro-V Complex range of shampoo &
conditioner comes in three variants suited for individual needs
- Pantene Nourished Shine, Pantene Hair Fall Control &
Pantene Smooth & Silky. Enriched with the goodness of pro-
vitamins and three essential aminos, Pantene restores your
hair with its lost beauty while making your hair ten times
stronge.

44. P&G India Brands Cond…
Gillette’s innovative razors and shaving products designed for
the unique needs of men – helping them to look, feel and be
their best every day. The razor range in India includes Gillette
Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard
and Gillette Mach3 Turbo Sensitive and Gillette Fusion. The
Shave Care range includes Gillette Fusion HydraGel, Gillette
Series Sensitive Skin Foam, Gillette Series After Shave &
Gillette Classic Shave Foam Sensitive Skin. Gillette Skincare
Foaming Wash, Gillette Skincare Scrub, Gillette Skincare Facial
Moisturizer with Aloe Vera, Gillette Skincare Facial
Moisturizer with SPF and Gillette Skincare Lotion 100ml.
Since 1950, Head & Shoulders has been at the forefront of
scalp and hair science, significantly advancing the treatment
of dandruff and scalp problems. Along with professional
advice and expert insight we have a wide range of products to
care for your scalp and nurture your hair. Head & Shoulders is
available in 8 variants in India including Men Hair Retain,
Complete Care for Dry Scalp, Anti Hair fall, Smooth & Silky,
Cool Menthol, Clean & Balanced, Thick & Long & Silky Black.
Help women look and feel beautiful and Challenge what’s
possible with their skin. The Olay portfolio in India covers Base
Moisturizer, Anti Ageing and Olay Whitening. The Anti Aging
range includes Olay Regenerist, Olay Total Effects, and Olay Age
Protect. The Olay Whitening range includes Olay White
Radiance and Olay Natural White. The Base Moisturizer
includes Olay Moisturizing Lotions and Creams.

45. P&G India Brands Cond…
Tide is the World’s Oldest & Most Trusted Detergent brand
and is the Market Leader in 23 Countries around the world.
Launched in India in mid-2000, Tide provides ‘Outstanding
Whiteness’ on white clothes & excellent cleaning on coloured
clothes as well. Tide’s Fabric Whitening Agents clean clothes
without bleaching or removing colour from a garment. The
Tide range in India includes Tide (Detergent) and Tide (Bar
with Whiteons). Tide Naturals was launched in India in
December 2009. Packed with the benefits of lemon and
chandan, it provides great cleaning while keeping the hands
soft.
Vicks has long been invested in the science and research of
respiratory health and through that dedication has developed
a wide range of therapeutic products that offer effective relief
for all the major signs and symptoms of the common cold, flu
and sinus pain and pressure. The Vicks product range in India
includes Vicks Cough drops, Vicks Vaporub, Vicks Inhaler, Vicks
Vapocool, and Vicks Action 500 Extra.
Whisper understands that we're each very different, and
offers a wide range of sanitary napkins to suit every girl or
woman's needs. With the right menstrual pad, you could take
the first step to having a Happy Period. Whisper has a wide
range of products in India which includes Whisper Ultra
Regular Wings,Whisper Ultra XL Wings, Whisper Ultra Heavy
Flow Overnights Wings, Whisper Maxi Regular, Whisper Maxi
XL Wings, Whisper Choice Regular, Whisper Choice Wings and
Whisper Choice Ultra Wings.

46. P&G India Brands Cond…
Wella Kolestint with it deep, long lasting colour has mesmerized Indian
women. No doubt, 96% Indian women say that it is the best hair colour
they have ever used. Wella Kolestint packs are available in 12 vibrant
shades in beauty stores across India. Each pack comes with a complete
hair colour kit to give deep, long lasting colour.

47. P&G Strategies

52. Structure
• Organizational structure composed of three
Global Business Units (GBUs) and a Global
Operations group. The Global Operations
group consists of the Market Development
Organizations (MDOs) and Global Business
Services (GBS).
• GBU’s are: Beauty, Health and Well-Being,
Household Care.

53. Structure
• Global Operations
The MDOs develop go-to-market plans at the local level,
leveraging their understanding of the local consumer
and customer. MDOs are organized along seven
geographic regions. (See next page for map.)
• Global Business Services
GBS operates as the “back office” for the GBU and MDO
organizations, providing world-class technology,
processes and standard data tools to better understand
the business and better serve consumers and
customers. GBS personnel, or highly efficient and
effective third-party partners, provide these services.