MINOR PROJECT REPORT ON

Submitted in partial fulfilment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

To
Guru Gobind Singh Indraprastha University, Delhi
Under the guidance of

SUBMITTED BY

MR SOHAIL

SRISHTI JAIN

ASSISTANT PROFESSOR

BBA III SEMESTER

41421301715

SESSION: 2015-2018

Certificate

I, Ms Srishti Jain, Enrolment No. 41421301715 from BBA-III Semester, Shift Evening of
the Tecnia Institute of Advanced Studies, Delhi hereby declare that the Personality
Development and Communication Skill-III (Minor Project Report) (BBA-209)
Entitled HINDUSTAN UNILIVER LIMITED is an original work based on secondary
data and the same has not been submitted to any other Institute for the award of any other
degree. A Presentation of the Minor Project Report was made on HINDUSTAN
UNILIVER LIMITED and the suggestions as approved by the faculty were duly
incorporated.

Date :-

(Srishti Jain)

Certified that the Personality Development and Communication Skills-III (Minor Project
Report) submitted in Partial Fulfillment of Bachelor of Business Administration (BBA) to be
awarded by G.G.S.I.P. University, Delhi by Srishti Jain, Enrollment No. 41421301715 has
been completed under my guidance and is Satisfactory.

Date: -

Mr Sohail
(Assistant Professor)
(Tecnia Institute of Advanced Studies)

ACKNOWLEDGEMENT

Getting a project ready requires the work and effort of many people. I would like to thank all
those who have contributed in completing this project. First of all, I would like to send my
sincere thanks to MR SOHAIL for his helpful hand in the completion of my project.

I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report. I am grateful to all of them for their time,
energy and wisdom.

(SRISHTI JAIN)

HINDUSTAN UNILIVER LIMITED

INDEX
S. No Particulars

Page No.

1. Chapter-1 Introduction

6-10

2. Chapter-2 Vision, Mission, Objectives and Dimensions

11-14

Chapter-3 History/Milestone

3.

15-22

4. Chapter-4 Success Path

23-28

5. Chapter-5 Roadblock And feasible Solution

29-33

6 Chapter-6 Future Projection

34-35

7 Chapter-7 Conclusion of the study

36-38

8 Chapter-8 Professional outcome

39-40

CHAPTER 1
INTRODUCTION

INTRODUCTION
Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai,
Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a 67% controlling
share in HUL as of March 2015 and is the holding company of HUL. [2] HUL's products
include foods, beverages, cleaning agents, personal care products and water purifiers.
HUL was established in 1933 as Lever Brothers and, in 1956, became known as Hindustan
Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,000
workers, [2] whilst also indirectly helping to facilitate the employment of over 65,000 people.
[3]
The company was renamed in June 2007 as "Hindustan Unilever Limited".[4]
Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and
its products are available in over 6.4 million outlets in the country. As per Nielsen market
research data, two out of three Indians use HUL products.

Company profile
Hindustan Unilever Limited

Type

Public

Traded as

BSE: 500696
BSE SENSEX Constituent

Industry

Consumer goods

Predecessor

Hindustan

Vanaspati

Company

Manufacturing
(1931-1956)

Lever Brothers India Limited (1933-1956)

United

Traders

Limited

(1935-1956)

Hindustan Lever Limited (1956-2007)

Founded

1934

Headquarters

Mumbai, Maharashtra, India

Area served

India

Key people

Harish Manwani (Non-executive Chairman),

Sanjiv Mehta (CEO and MD)[1]

Products

Foods, beverages, cleaning agents personal

care products and water purifiers.

Revenue

30,170 crore (US$4.5 billion) (2014-15)

Net income

4,315 crore (US$640 million) (2014-15)

Number

of 18,000 (2014)

employees

Parent

Website

Unilever

www.hul.co.in

Mr. Harish Manwani

Mr. Harish Manwani (62) assumed charge as the Non-Executive Chairman of the Company
with effect from 1st July, 2005.

Chairman
Mr. Manwani joined the Company in 1976. He joined the Board of the Company in 1995 as a
Director responsible for the Personal Products business. In addition, he held regional
responsibility as the Category Leader for Personal Products for the then Central Asia &
Middle East (CAME) Group.
In 2000, Mr. Manwani moved to UK as Senior Vice President for the Global Hair Care and
Oral Care categories and in early 2001, he was appointed as President - Home & Personal
Care (HPC), Latin America Business Group. He has also served as the Chairman of
8

Unilevers Latin America Advisory Council. In 2004, he was appointed President of the HPC
North America Business Group and in April 2005, was elevated to the Unilever Executive as
the President - Asia & Africa and the region was later extended to include Central and Eastern
Europe.
In 2008, Mr. Manwani received the CNBC Asia Business Leader of the Year Award and as a
part of the Singapore National Day Awards 2012, Mr. Manwani was conferred the Public
Service Medal (Friends of Singapore) by the Singapore Government. Mr. Manwani was the
Chief Operating Officer of Unilever and a member of the Unilever Leadership Executive
(ULE) until 31st December, 2014, where after Mr. Manwani superannuated from Unilever.
Mr. Manwani is an Honours Graduate from the Mumbai University and holds a Master
Degree in Management Studies. He has also attended the Advanced Management Programme
(AMP) at Harvard Business School. Mr. Manwani is a member of the Nomination and
Remuneration Committee of the Company.

Mr. Sanjiv Mehta

Mr. Sanjiv Mehta (56) joined the Board of the Company in October 2013. He is also the
Executive Vice President for Unilever in South Asia and a member of Unilevers Global
Market Executive.

Managing Director and CEO

Mr. Mehta joined Unilever in October 1992. He has led several Unilever businesses across
South Asia, South East Asia and Middle East. He was appointed Chairman and Managing
Director of Unilever Bangladesh in 2002. In 2007, he was appointed as Chairman and CEO
of Unilever Philippines. In 2008, he took up responsibility as the Chairman of Unilever North
Africa and Middle East (NAME), leading a multi country organisation spanning 20 countries
in the region.
During his tenure as the head of various Unilever Companies, the business achieved
significant success accelerating both growth and profitability. Importantly, he has been
instrumental in building leadership talent and substantially strengthening organisational
capabilities.

Before joining Unilever, Mr. Mehta worked for Union Carbide India. He is a Commerce
graduate and a Chartered Accountant. He has also completed Advanced Management
Program from Harvard Business School.
He is a Member of the Nomination and Remuneration Committee, Stakeholders Relationship
Committee and Corporate Social Responsibility Committee of the Company.

10

CHAPTER 2
OBJECTIVES, VISION AND
MISSION OF THE COMPANY

OBJECTIVE

The objective of this research is to identify the factors that influence a person into
making a decision to buy a certain brand of malt-based health drink.
11

As mentioned in the Literature Review, according to industry analysts, this

category has grown only on promotions and for now, except for promotions,
nothing seems to be working. Therefore, ideally, this research should be able to
bring to the fore, certain other factors that could lead to a growth of this segment.

At the very least, the research should corroborate the existing assumptions regarding the
influencing factors. It should be in a position to verify that the steps various players are
taking to stimulate volumes are in the right direction, and would eventually lead to an
increase in market share

VISION

Unilever is a unique company, with a proud history and a bright future. We

have ambitious plans for sustainable growth and an intense sense of social
purpose.
Clear direction
The purpose is to make sustainable living commonplace. We work to create a better future
every day, with brands and services that help people feel good, look good, and get more out
of life.
In 2009, we launched The Compass our strategy for sustainable growth. It sets out our clear
and compelling vision to double the size of the business, while reducing our environmental
footprint and increasing our positive social impact and gives life to our determination to build
a sustainable business for the long term. This is captured in the Unilever Sustainable Living
Plan.
By combining our multinational expertise with our deep roots in diverse local cultures, were
continuing to provide a range of products to suit a wealth of consumers. Were also
strengthening our strong relationships in the emerging markets we believe will be significant
for our future growth.
And by leveraging our global reach and inspiring people to take small, everyday actions, we
believe we can help make a big difference to the world.
"We cannot close our eyes to the challenges that the world faces. Business must make an
explicit and positive contribution to addressing them. Im convinced we can create a more
equitable and sustainable world for all of us by doing so, says Unilever CEO Paul Polman.
12

But this means that business has to change. The Unilever Sustainable Plan is a blueprint for
sustainable growth. And in 2014 we are strengthening our Plan with new commitments to
drive further transformational change.

Priorities and Principles

Unilever is committed to supporting sustainability and providing our consumers around the
world with the products they need to look good, feel good and get more out of life.
Five key priorities provide the foundation for our brands campaigns. Read some examples of
how different brands are upholding these principles.

A better future for children

Our oral care brands Signal and Close-Up encourage children to brush their teeth day
and night for optimal dental health. We also partner the FDI World Dental Federation,
supporting oral health programmes around the world
Brands such as Omo and Persil have helped parents believe the unconventional
philosophy that Dirt is Good. Children learn through play, and mud spatters and grass stains
can easily be removed with effective laundry products
Unilever also partners the World Food Programme and launched the Together for
Child Vitality initiative to bring our expertise in nutrition to children in some of the worlds
poorest countries.

A healthier future
Our Flora/Becel margarine brands have been scientifically proven to help reduce
cholesterol levels
Vaseline has launched the Vaseline Skin Care Foundation, providing research into
skin conditions and support for people affected by them
Lifebuoy soap has long had a presence in developing markets around the world, and
its campaign to promote handwashing with soap was celebrated by 200 million people across
53 countries in 2013.

A more confident future

Doves Campaign for Real Beauty uses real women instead of models in its
advertising campaigns. The brand has also launched the Dove Self Esteem Fund which
educates and inspires millions of young women
Our Sunsilk hair care brand has partnered some of the worlds leading hair specialists
to co-create formulas tailored to treat conditions such as hair-fall, frizz, limp locks and
uncontrollable curls
Close-Up toothpaste provides an affordable oral care solution for consumers in
developing markets, allowing them to take care of their dental health and closer with
confidence.

A better future for the planet

Were aiming to grow our business while reducing our environmental footprint and
working across the supply chain for every brand to do so
Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the
Cleaner Planet Plan together, encouraging consumers to change their laundry habits to reduce
water and energy consumption
Our Lipton tea brand backs sustainable forest management projects in Africa

A better future for farming and farmers

13

Many of our brands contain ethically and sustainably sourced ingredients that are
independently certified
Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben
& Jerrys ice cream, which includes Fairtrade vanilla and almonds in various flavours
Around half our raw materials come from agriculture and forestry, so were working
towards making our key crops 100% sustainable.

Mission

Unilever's mission is 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.

14

CHAPTER 3
HISTORY / MILESTONE

15

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap
bars, embossed with the words "Made in England by Lever Brothers". With it began an era of
marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered 10%
of its equity to the Indian public, being the first among the foreign subsidiaries to do so.
Unilever now holds 67.2% equity in the company. The rest of the shareholding is distributed
among about three lakh individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company
had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was
formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition.
The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in
1972 and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold
through an international acquisition of Chesebrough Pond's USA in 1986.

16

Since the very early years, HUL has vigorously responded to the stimulus of economic
growth. The growth process has been accompanied by judicious diversification, always in
line with Indian opinions and aspirations.
The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in
HUL's and the Group's growth curve. Removal of the regulatory framework allowed the
company to explore every single product and opportunity segment, without any constraints
on production capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the
most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever
Limited, to market Lakme's market-leading cosmetics and other appropriate products of both
the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its
50% stake in the joint venture to the company.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL
has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory
represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory
manufactures HUL's products like Soaps, Detergents and Personal Products both for the
domestic market and exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods
and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods,
with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the
UB Group and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India
and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling
greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed
BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company
entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the
Milk food 100% Icecream marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998.
The two companies had significant overlaps in Personal Products, Speciality Chemicals and
Exports businesses, besides a common distribution system since 1993 for Personal Products.
The two also had a common management pool and a technology base. The amalgamation was
done to ensure for the Group, benefits from scale economies both in domestic and export
markets and enable it to fund investments required for aggressively building new categories.
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

17

extension of the company's wheat business. In 2002, HUL acquired the government's
remaining stake in Modern Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
HUL launched a slew of new business initiatives in the early part of 2000s. 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. Currently, there are over 45,000 Shakti entrepreneurs covering over
100,000 villages across 15 states and reaching to over 3 million homes.
In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush
product range and Ayush Therapy Centres. 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 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 HULs state of the art Learning Centre was inaugurated at the Hindustan
Unilever campus at Andheri, Mumbai.
In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the
Hindustan Unilever campus at Andheri, Mumbai
HUL completes 80 years of corporate existence in India on October 17th, 2013.

18

YEAR MILESTONES
1888
1895

Sunlight soap introduced in India.

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.

1905

Lux flakes introduced.

1922

Rinso soap powder introduced.

1924

Gibbs dental preparations launched.

1925

Lever Brothers gets full control of North West Soap Company.

1926

Hartogs registers Dalda Trademark.

1930

1931
1932
1933

Unilever is formed on January 1 through merger of Lever Brothers and Margarine

Unie.
Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri
factory site bought.
Vanaspati manufacture starts at Sewri.
Application made for setting up soap factory next to the Vanaspati factory at Sewri;
Lever Brothers India Limited incorporated on October 17.

1935

United Traders incorporated on May 11 to market Personal Products.

1937

Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

1939

1941

1942
1943
1944

Garden Reach Factory purchased outright; concentration on building up Dalda

Vanaspati as a brand.
Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires
own sales force.
Unilever takes firm decision to "train Indians to take over junior and senior
management positions instead of Europeans".
Personal Products manufacture begins in India at Garden Reach Factory.
Reorganisation of the three companies with common management but separate
marketing operations.

1947

Pond's Cold Cream launched.

1951

Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and
19

Ghaziabad Vanaspati factories bought.

1955
1956

65% of managers are Indians.

Three companies merge to form Hindustan Unilever Limited, with 10% Indian
equity participation.

1957

Unilever Special Committee approves research activity by Hindustan Unilever.

1958

Research Unit starts functioning at Mumbai Factory.

1959

Surf launched.

1961

Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205
managers are Indians.

1962

Formal Exports Department starts.

1963

Head Office building at Backbay Reclamation, Mumbai, opened.

1964
1965

Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk
shampoo launched.
Signal toothpaste launched; Indian shareholding increases to 14%.
Lever's baby food, more new foods introduced; Nickel catalyst production begins;

1966

Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj

Mahal tea launched.

1967
1968
1969
1971
1973
1974

Hindustan Unilever Research Centre, opens in Mumbai.

Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine
Chemicals Unit commissioned at Andheri; informal price control on soap begins.
Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever
Special Committee - plan approved; Clinic shampoo launched.
Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.
Pilot plant for industrial chemicals at Taloja; informal price control on soaps
withdrawn; Liril marketed.
Ten-year modernisation plan for soaps and detergent plants; Jammu project work

1975

begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up
toothpaste launched.

1982

Government allows 51% Unilever shareholding.

1984

Foods, Animal Feeds businesses transferred to Lipton.

20

1988

Launch of Lipton Taaza tea.

1990

Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

1991

Surf Ultra detergent launched.

1992

HUL recognised by Government of India as Star Trading House in Exports.

HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the

1993

company with effect from April 1, 1993, the biggest such in Indian industry till that
time. Merger ultimately accomplished in December 1994; Launch of Vim bar;
Kissan acquired from the UB Group.
HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark
Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market

1994

Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995;
HUL acquires Kwality and Milkfood 100% brandnames and distribution assets.
HUL introduces Wall's.
HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture Lakme

1995

Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as
Super Star Trading House.
Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group

1996

company, Brooke Bond Lipton India Limited, with HUL, with effect from January
1; HUL introduces branded atta; Surf Excel launched.

1997

Unilever sets up International Research Laboratory in Bangalore; new Regional

Innovation Centres also come up.
Group company, Pond's India Ltd., merges with HUL with effect from January 1,

1998

1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in
Lakme Lever Ltd.
Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the

2000

Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first
public sector company to be disinvested by the Government of India.

2002

2013

HUL enters Ayurvedic health & beauty centre category with the Ayush range and
Ayush Therapy Centres.
Launch of Hindustan Lever Network; acquisition of the Amalgam Group

21

2012

Launch of "Pureit" water purifiers

2015

HLL Launch of "SUPER VALUE STORE" for Urban Market

22

CHAPTER-4
SUCCESS STORY

To be sure, HUL remains the country's largest fast-moving consumer goods (FMCG)
company and the jewel in Unilever's crown, providing the world's second-largest consumer
goods company about eight per cent of its annual revenues. This contribution is expected to
grow, as India's long-term consumption story remains intact.
Last year, in an affirmation of India's growing importance, Unilever increased its stake in
HUL from 52.5 per cent to 67.3 per cent, with Rs 29,200-crore (Rs 292 billion) open offer,
the largest such offer in India.
While Unilever consolidated its presence here, its hold over the local management was, in a
sense, complete. Unilever's domination was in sharp contrast to the culture of HUL, known as
Hindustan Lever, or HLL, till 2007, through the 40 years of business history this series
covers.

23

Since its inception in November 1956 to the mid-1990s, HUL had a history of powerful and,
as company observers say "iconic", chairmen, following the merger of three subsidiaries Hindustan Vanaspati Manufacturing Company, Lever Brothers Ltd and United Traders Ltd.
Giants such as Prakash Tandon, T Thomas, A S Ganguly, S M Datta and K B Dadiseth were
responsible for shaping the company's future, with entrepreneurial zeal and passion.
Like the Tata satraps during the time of J R D Tata, these men dominated the corporate world
during their tenures.
Consider Prakash Tandon, HUL's first Indian chairman (appointed in 1961).
He was responsible for introducing many noteworthy practices such as the popular
management trainee programme that ensured the company was a breeding ground for good
managers.

To this day, HUL retains this edge, as a flag-bearer of premium management talent.
The company's relentless focus on market research, product development and innovation was
also a legacy attributed to Tandon. He persuaded parent Unilever to set up a research centre
here in the 1960s.
This allowed the company to develop products locally, using local ingredients and processes,
helping cut costs and respond to market challenges quickly.
T Thomas, chairman from 1973 to 1980, contributed to bringing an end to the government's
price control of soaps in the 1970s.

24

He did this by introducing a mass-market soap brand---Saral. At that time, India, among the
world's largest importers of crude oil, was reeling under global oil shocks.
To tackle the resultant inflation, the Indira Gandhi government had imposed price controls on
manufactured products, including soaps and vanaspati, in 1973.
Thomas's response, on a suggestion from senior Cabinet minister Jagjivan Ram (for which he
sought approval from Gandhi), ensured HUL cut the losses it had incurred in the first half of
1974 (the first loss in the company's history), bringing it back on the growth path. In a special
issue HUL brought out in 2008 to celebrate its 75th anniversary, Thomas wrote: "If price
control had continued for some more time, HLL would have suffered mounting losses.
In that case, even Unilever would have lost patience and considered ways of pulling out of
India, as it had done in some African countries." By the 1990s, HUL was pushing hard on
mergers and acquisitions (M&As), led by S M Datta (1990-96) and, subsequently, K B
Dadiseth (1996-2000).

Expansion of its core FMCG business and diversification into new areas such as cosmetics,
foods and women's hygiene characterised HUL's 'M&A decade'.
In 1994, Datta led the merger of HUL's key competitor, Tata Oil Mills Company, with itself, a
move that gave corporate watchers a shape of things to come, just as the Indian market was
opened to global competition, following the end of the licence raj. Joint ventures with US-

25

based Kimberly-Clark (for baby and women hygiene products) and Tata's Lakme (for
cosmetics) followed.
In 1993, Unilever's second subsidiary, Brooke Bond, acquired the Kisan business (jams and
ketchup) from the UB Group, and Dollops ice-cream from Cadbury's, marking its foray into
the foods segment.
In 1994, the Kwality ice-cream business was acquired by Brooke Bond and the latter merged
with Lipton India to form Brooke Bond Lipton India Ltd. In 1996, Datta merged this
company with HUL by Datta to bring all businesses under "one roof".
K B Dadiseth, Datta's successor, kept the M&A momentum going, merging Pond's India with
HUL in 1998, acquiring Tata's 50 per cent stake in the Lakme-Lever joint venture, and buying
74 per cent in Modern Foods, the first public sector company to be divested by the
government, in 2000 (the remaining 26 per cent was acquired in 2002).
Much of this inorganic growth was a means for HUL to acquire market share in an arena that
was rapidly turning hyper-competitive and to use the new-found domination to cut supplier
costs and hold margins.

In the new millennium, HUL opted to go slow on the M&A front, choosing to build its
business organically.
In part, the decision was led by a need to consolidate its operations, following the frenetic
pace with which it had bought and merged companies in the 1990s. This was also a time
when competition with rivals such as Procter & Gamble was heating up in categories such as
detergents.
Thus began HUL's focus on core operations, under chairman M S 'Vindi' Banga (2000-2005).

26

He famously devised HUL's power brands strategy, which meant focus on 35 core products
across detergents, soaps, personal products and packaged foods. Brands with a pan-India and
international appeal (such as Lux, Lifebuoy, Fair & Lovely, Wheel, Surf, Rin, Knorr, Kissan,
Dove, Ponds, Lakme, Brooke Bond) gained from this exercise, while regional gems (Breeze,
Liril, Moti, Hamam, Rexona, etc) were relegated to the background.
With a focus on bigger and more global brands, it wasn't surprising that HUL's dependence
on its parent grew.
At the same time, Unilever was also beginning to take greater hold of its Indian operations,
under what it called the 'One Unilever' policy; this strategy would be increasingly determined
by the parent.
The policy also paved the way for the company's name being changed from HLL to HUL in
2007.
In an increasingly globalised world, HUL's senior executives and managers turned to the
parent for technological transfers, best practices and brands. While products such as water
purifier Pureit were Indian creations, these were largely few and far between.
Chief executives came and went, but didn't quite dominate the scene as their predecessors had
from the 60s to the 90s.
Today, HUL is on its way to increasing the royalty it pays to its parent - from 1.4 per cent (the
rate till January last year) to 3.15 per cent of its turnover by March 2018. HUL's dependence
on Unilever appears complete.
Timeline
1956: Hindustan Lever Ltd is formed following the merger of Hindustan Vanaspati
Manufacturing Company, Lever Brothers Ltd and United Traders Incorporated
1961: Prakash Tandon appointed as chairman of HLL, the first Indian to be appointed to the
position
1963: HLL headquarters at Backbay Reclamation, Mumbai, opened; called Lever House
1975: Ten-year modernisation plan for soaps and detergent plants put in place
1982: Government allows 51 per cent Unilever shareholding in HLL
1993: Brooke Bond India acquires the Kissan brand from UB Group
1994: Tata Oil Mills Company merges with HLL
1996: HLL and Lakme Ltd form 50:50 joint venture
27

 1996: Brooke Bond Lipton India Ltd merges with HLL

1998: Ponds India merges with HLL
1998: HLL acquires Lakme Ltd's 50 per cent stake
2000: HLL acquires 74 per cent stake in Modern Food Industries
2007: Company name changed to Hindustan Unilever Ltd (HUL)
2008: HUL completes 75 years

28

CHAPTER-5
ROADBLOCK & FEASIBLE
SOLUTION

29

The problems that Hindustan Unilever Limited currently facing is increasing input costs and
operations costs due to rise in raw material costs, increasing imitative and spurious products,
and stiff competition from other FMCG players.
There is slowdown in the global economy and the problem that started in the financial sector
extended rapidly to other sectors affecting not only the US but the global economy. Most of
India's domestic sectors are also affected including country's exports performance and FMCG
sectors.
There is an unprecedented volatility in raw materials price contributed largely by increasing
crude oil prices. Unprecedented volatility in raw materials price associated with uncertainties
in the commodities movement needs a desperate careful management in the FMCG
companies. Although some companies managed to do well categories like detergents met
decreasing sales.
Hindustan Unilever Limited has a large brand portfolio consisting number of brands. It will
be difficult to manage such extended brand portfolio by any company but it is the nature of
FMCG industry and company. The current global scenario with swinging raw material prices
and intense competition faced by the company needs a careful management.

Major issues or problems

The problem that the company is facing for long time is the increasing imitative products.
The popularity of the HUL's brand and the reach it possess drives the local manufactures to
imitate the products leading some to produce even the fake products. The fake products are
seen highly in rural markets. This greatly affects the brand equity of the HUL.
The company is facing increasing input costs due to increase in price of the raw materials.
There is a potential impact on the company due to rising inflation, freight costs and raw
materials.
Hindustan Unilever Limited is facing tough competition than years before from ITC, Procter
& Gamble, Colgate-Palmolive, Nestle and Godrej. ITC is competing toughly with HUL
through various brands that are market leaders. The competition is further intensified by
several new entrants. This intensified competition already witnessed by HUL's losing market
share in certain segments and also increase in operation costs.

STRATEGY FORMULATION:
Strategic alternatives:
The strategic alternatives for HUL to address the issues of increasing input costs and
operations costs due to rise in raw material costs, increasing imitative and spurious products,
and stiff competition from other FMCG players are,
Leverage and Proliferation of brand portfolio
Competitive pricing
Cost efficient initiatives
Leverage and proliferation of brand portfolio:

30

HUL has gained reputation of meeting customer needs through various products in different
segments. HUL has strong supply chain and distribution network meeting customer needs.
This gives competitive advantage for HUL over its competitors. The proliferation of brand
portfolio will protect customers especially in rural markets from purchasing spurious
products. HUL's product of different brand in same category will back the revenue generating
brand from imitative products.
Competitive pricing:
Hindustan Unilever Limited facing stiff competition from organized as well as unorganized
players in the industry. This is an industry where buyers have numerous choice of brand to
shift one brand to another brand if not affordable. Rising inflation in the country makes the
companies to increase the price of their product. Competitive pricing will get the local
manufactures and organized players on their feet.
Cost efficient initiatives:
Increase in the raw material price and uncertainties in the commodity movement rises the
operation costs of the company. The company is in desperate need to do some initiatives like
cutting down the advertisement cost and also to cut down the cost in its operation rather than
worrying about the increase in raw material price.
Alternative Evaluation:
Leverage and proliferation of brand portfolio:
Leveraging and proliferation of brand portfolio by introducing new brands will help the
company to compete with the spurious products and competitors brands by providing the
customers a variety of brand in the same category. This will prevent the customers from
shifting to imitative products and competitor brands thereby retaining the customers.
Hindustan Unilever Limited has a competitive advantage of robust supply chain and
distribution network. This will help the new brand in reaching the customers effectively. The
disadvantage is that the company will have various brands in the same category which may
make difficult to manage them.

31

Competitive pricing:
This strategy of competitive or decreasing the price of company's product will not to
efficient. The company is dealing with increase in input and operation costs. Reducing the
price of the products will decrease the profit margin. Moreover it will start the price war in
the industry which is not good for the company as well as to the industry. Most of the HUL's
market leader brands are being closely chased by its competitors with only slight difference
in the market share and lot of local products. Also, in many categories in oral, skin care
segments the competitors are having market leader brands with strong foothold. Initiating the
price war will have a drastic impact on all the segments also will not increase the profit
margin.

Cost efficient initiatives:

The cost efficient initiative like reducing cost over advertisement and reducing the operation
cost will help the company to gain competitive advantage in its operations. However FMCG
industry requires consistent advertisements and promotional effects to stay in the minds of
customers. Cutting down the expense on advertisement will let the competitor to gain
advantage over HUL in reaching the customers mind. Also the organization cannot do much
about the increasing raw material cost where they have a choice of only optimizing the
procurement procedures.
Alternative choice:
Leverage and proliferation of brand portfolio is the optimal choice to address the problems
that the company is facing. HUL has a competitive advantage of possessing many strong
brands with robust supply chain and distribution network. They have a strong resource that
they can allocate to proliferate the brand that can cover different market segments at different
price points. This will prevent the price wars as it will give consumers a wide choice of
brands that can cover different market segments at different price points and simultaneously
retain the customers from shifting to competitor's brands. This will give wide choice to
customers and back the revenue generating brands from its competitors. This is an industry
which is difficult to retain the customers. So it is risky to go head on head with the
competitors with revenue generating brands. Proliferation of brand will increase the volume
growth and profit margin.
32

STRATEGY IMPLEMENTATION:

HUL will not require any culture or structural changes in the organization to implement the
strategy. The organization with its robust supply chain and distribution network will help the
brand to reach the customers like other brands.
Immediate action plan:
The company has to first differentiate the strong performing and revenue generating brands
from the non-performing brands. It is important to determine brand relevance and assessing
the key competitors in the category.
Short term action plan:
The company has to decide the segments in which they have proliferate the brand portfolio. A
research has to be conducted to analyze the performance of existing brand and that of the
competitor's brand.
Long term action plan:
After determining the category they need a well designed performing monitoring system to
analyze the performance of brands before and after the introduction of new brand.

33

Chapter-6
Future projection

34

Hindustan Unilever Limited brightFuture is a platform that helps unite and amplify the efforts
of a growing community of people who believe it is possible to build a world where everyone
lives well and lives sustainably, and who recognise we can only achieve this if we all work
together to do small actions every day that make a real difference.

Unilever brightFuture
We believe there has never been a better time to create a better future for our children: a
world where everyone has enough food to eat and no child goes to bed hungry. Where every
child lives to their fifth birthday and has the right to a happy childhood. Where every home
has enough water to drink and to wash, cook and clean, and where everybody can enjoy life
today while protecting the planet for future generations.
Launched in November 2013 under the original name: Project Sunlight, Hindustan Unilever
Limited brightFuture has already made a positive contribution to the lives of millions around
the world. Having experienced an overwhelming amount of support, with people and
communities embracing the bright future spirit, the Project Sunlight platform was renamed
Hindustan Unilever Limited bright Future in April 2015.
We have had many proud moments along the way:

Weve helped 2 million children across the world, through Unilever's ongoing
partnership with Save the Children, UNICEF and the World Food Programme.
We provided half a million meals in the UK in partnership with Oxfam through the
campaign #ClearAPlate.
In the US, weve been working with Free the Children for We Day, celebrating the
accomplishments of thousands of inspiring young people.
We reached 20 thousand children in over 100 schools in Indonesia with hygiene
education programs and sanitation facilities.
In India, together with our NGO partners, we are helping over 115 million people
through health and sanitation programs.
In Brazil, we are committed to help more than 1 billion people to improve their health
and
Hygiene conditions.

35

CHAPTER-7
CONCLUSION OF THE STUDY

36

Conclusion

Today, brands and other tangible assets represent a significant proportion of a companys
enterprise value. The traditional approach to brand management is changing and their has
been shift towards a new paradigm in the marketing organization .This emerging trend
represents a more away from a system focuses on the individual brand manager, who is
responsible for all the business activities that relate to ensuring the success of a specific
brand. Branding identifies five major environmental forces affecting market behavior and
suggests their implications for brand management. We pay some attention to interrelations
among these forces and the proactive nature of brand management itself in helping shape
them. Given dramatic changes in the competitive nature of product-markets and technology
and their consequences in the evolving role of both distributors and facilitating organizations,
it is understandable that decision processes and organizational structures used to make and
implement brand decisions also may need reexamination.
Firms face difficult trade-offs between the increased importance of coordinating brand
activities, both within and outside the organization, and the pressures to decentralize decision
making and eliminate entire layers of management in the hope of curtailing costs. Low and
Fullerton (1994) trace the evolution of brand management from the origins of the first
national brands to the present. They provide an important historical perspective for many of
the issues affecting brand management today. They note that brand management has proves
quite adaptable to differing firm and marketing environments over its existence. As the
modern corporation increasingly incorporates horizontal coordination structures, the brand
manager may even become part of cross-functional teams. The original logic for the brand
manager system in the multibrand firm rested on the belief that competition internally for
resources would improve efforts on behalf of each brand. But managers for multiple brands
in the same product category (such as Cheer, Bold, Oxydol, and Tide detergents for P & G)
often competed as ruthlessly with one another as they did with counterparts from competing
firms. The difficulty in coordinating marketing programs for each brand and demands for a
more coherent approach to managing an entire

37

S.W.O.T ANALYSIS OF THE ORGANIZATION

Strengths

Use of brand affinity of HUL to promote FMCG sales.

HUL brought its strong local market knowledge, reputation and India.

Associated with HUL world leader in financial protection and wealth management,
ranked No 13 in the Fortune 500 list of global companies and has enabled the
company to have access to HULs global life insurance and asset management
expertise.

Strong partner HUL- provides access to customer base of more than 20 million

Weakness

Late entrant in the insurance sector

Thin distribution network all over the nation

Very less number of product offering in comparison to its competitors

Lack of confidence among the customers as parent company does not have a financial
background.
Opportunities

Strong growth of unit linked market at the mass affluent end.

Potentially with 20% insurance cross sale only to new telecom customers, this network
can yield 48 lac policies per year with sum assured of nearly Rs 58000 crores.

Threats

Many more companies are lining up to enter into Indian Insurance Industry.

Consumers preference is still more towards public sector insurance companies.

38

CHAPTER 8
PROFESSION OUTCOME

39

PROFESSION OUTCOME
After studying various market dynamics of HUL products with the help of customer survey
market standing of HUL products is quite clear. HUL products are clearly the market leader
in branded products.
According to analysis it can be conducted that HUL products are having good market share
and excellent quality as compared to other branded products. More number of people prefer
these products.
Customer consider quality of HUL products as most important factor .Moreover the prices of
the HUL products are very competitive.
According to customers, media is the main source of information of HUL products, electronic
media is the best way of information.
In nutshell, it can be concluded that mostly customers prefer HUL products and they are
satisfied with them.

SUMMARY OF FINDINGS
This project had the aim of analysing and nding out the Customer Perception toward
HINDUSTAN UNILIVER products. The eld work was done with the help of questionnaires
and the summary of nding of the study is given below separately as follows:

60% of respondents were males and rest were females.

83% of the majority is using HUL products.
55% of the respondents are using TAJ MAHAL tea 20% are using BRU and 25% are

using LIPTON.
55% are using PEPSODANT and 45% are using CLOSE UP as oral care product of

HUL.
TV MEDIA is the main source of information about HUL products.
98% of respondents are using HUL products for more than 1 year.
50% of respondents are highly satisfied while using HUL products.
65% of respondents didnt faced any problem while using HUL products.
MORE THAN HALF of the respondents are satisfied with the pricing of the products.
ADVERTISEMENTS is the main source of promotion of products.
OVERALL SATISFACTION IS GOOD.

40

QUESTIONNAIRE
NAME _________________________________________________________________
ADDRESS______________________________________________________________
MOBILE NUMBER______________________________________________________
GENDER_______________________________________________________________
Q1. SEX?
MALE
FEMALE

Q2. DO YOU USE HINDUSTAN UNILIVER PRODUCTS?

YES
NO
SOMETIMES
NEVER
Q3. WHICH TEA OR COFFEE PRODUCT YOU USE?
BRU
LIPTON
TAJ MAHAL
NONE OF ABOVE

Q4. WHICH SKIN AND HAIR CARE PRODUCT YOU USE?

PONDS
CLINIC
SUNSILK
NONE OF ABOVE
Q5. WHICH ORAL CARE PRODUCT YOU USE?
CLOSE UP
PEPSODENT
Q6. WHAT IS YOUR MAIN SOURCE OF INFORMATION ABOUT HUL
PRODUCTS?
MEDIA
FRIENDS
41

 BROACHERS
Q7. IF MEDIA WHICH ONE?
TV
INTERNET
RADIO
Q8. SINCE HOW LONG YOU ARE USING HUL PRODUCTS?
LESS THAN 1 YEAR
MORE THAN 1 YEAR
LESS THAN 5 YEAR
MORE THAN 5 YEAR

Q9. WHAT IS YOUR SATISFACTION LEVEL OF HUL PRODUCTS?

HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY DISSATISFIED
Q10. HAVE YOU FACED PROBLEM DURING USING HUL PRODUCTS?
YES
NO
SOMETIMES
NEVER
Q11. ARE YOU SATISFIED WITH THE PRICES OF THE PRODUCTS?
YES
NO
Q12. ACCORDING TO YOU WHY HUL PRODUCTS ARE BETTER THAN OTHER
PRODUCTS?
PRICE
RANGE
QUALITY
IMAGE
Q13. WILL YOU PURCHASE HUL PRODUCTS IF PRICES ARE INCREAED?
YES
NO

42

Q14. WHICH IS THE BEST WAY OF PROMOTING HUL PRODUCTS?

ADVERTISEMENT
INTERNET
Q15. OVERALL SATISFACTION OF HUL PRODUCTS?
HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY DISSATISFIED

43