hindustan lever ltd

HISTORICAL SAGA OF HINDUSTAN UNILEVER

LIMITED

UNITEDWORLD SCHOOL OF BUSINESS

KOLKATA

SECTION-C

GROUP MEMBERS

• ABHISHEK DAS• MONIKA AGARWAL• ABHISHEK SARKAR• PRASUN GHOSH• PRITHIRAJ SANYAL• ARINDAM CHOUDHURY• TANMAY KUMAR PATRA• JAGMOHAN SINGH WARAICH

GROUP 3.3

INTRODUCTION

• Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) company. These products are manufactured over 40 factories across India and the associated operations involve over 2,000 suppliers and associates.

Hindustan Unilever - a 75year history

~ 15,000 employees • Population 1027 Mln ~ 1,200 managers

5,545 Towns 2.5 Mln outlets • ~ 2,000 suppliers & associates • •

• • ~ 75 Manufacturing Locations 6,38,000 Villages 5.0 Mln outlets • ~ 45 C&FAs, 4,000 Stockists • • • •

• • ~ Total Coverage 6.3 Mln Outlets • • • • • • • • ~ Direct Coverage 1 Mln outlets • • • • • • •

• • • Turnover $ Mln • • Market Cap $ Bln

• 11.5

3473 • • • •

• • 847 631 3.3 540 476 388 361 323 2.1 308 218 1.5 1.3 1.0 0.9 0.7 0.7 0.6

HUL Nestle Dabur Colgate Tata Tea Marico Britannia Godrej GSK P&G

VISION

To earn the love and respect of India, by making a real

difference to every Indian.

THE LEGEND BEGINS…In the late 19th and early 20th century Unilever used to export its products to India. This process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after. 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). The three companies were merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so.

OVER THE YEARSProduct innovation, 19th century style:• In the early 1870s, they become

interested in a new product made from beef fat and milk – margarine – which, they realise, could be mass-produced as an affordable substitute for butter.

1900’s

New focus on raw materials• Competition and a sudden sharp rise in the cost

of raw materials leads many to set up associations, promoting their interests and defending themselves against supplier monopolies.

• With supplies of oils and fats struggling to meet the demand created by fast growing soap and margarine production, the companies that will one day become Unilever focus on securing stable sources of raw materials.

1930-1960

1888, less than four years after William Hesketh Lever launched Sunlight Soap in England, his newly-founded company, Lever Brothers, started exporting the revolutionary laundry soap to India. By the time the company merged with the Netherlands-based Margarine Unie in 1930 to form Unilever, it had already carved a niche for itself in the Indian market. Coincidentally, Margarine Unie also had a strong presence in India, to which it exported Vanaspati (hydrogenated edible fat). 1933 

- Incorporated on 17th October, under the name of a Lever Brothers (India) Pvt., Ltd. (LBIL) was the wholly owned subsidiary of Unilever Ltd. London, UK 

1956-A MILESTONE

On 27th October, the Co. was converted into a Public Ltd. Co., Hindustan Vanaspati Mfg. Co. Pvt. Ltd., William Gossage & Sons (India) Pvt. Ltd. and Joseph Crosfield & Sons Unilever Ltd. were amalgamated with LBIL and the name was changed to Hindustan Lever Ltd. From 23rd October onwards activities of subsidiary Co. were taken over by its holding Co. 

1976

• The company had set up plants at Taloja in Maharashtra for the manufacture of ossein and di-calcium phosphate.

1979

• In October, the company set up a new industrial undertaking at Haldia for the manufacture of sodium tri-polyphosphate, phosphoric acid and sulphuric acid.

1983-1988A new plant for synthetic detergents in Chindwara district of M.P commissioned Co. took on lease a detergent and toilet soap factory at the request of Punjab govt. owned by a joint sector Co. Stephans Chemicals Ltd.

Lux toilet soap, Lifebouy Personal and Breez soaps launched.

Company in collaboration with National Starch Corporation USA, undertook to set up a new facility at Pondicherry for the manufacture of functionalized biopolymers.

1989

Synthetic Detergent plant at Sumerpur in UP & Toilet soap plant in Orai in UP were commissioned.Cracking catalyst plant at Haldia commissioned.Vegetable oil plant commissioned at Kandla free trade zone.

THE LEGEND CONTINUESThe liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HLL to explore every single product and opportunity segment, without any constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions and alliances. 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. In one of the most talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL).The Company entered into joint venture agreement with Lakme Lever Ltd. to undertake the manufacturing and distribution of color cosmetics and other personal care products.(1994)

1998•Unilever set up the Hindustan Vanaspati Manufacturing Company, its first subsidiary in India, and established two more subsidiaries, lever Brothers India Ltd. and United Traders Ltd.

•Hindustan Lever Ltd (HLL) has signed the Fuel Supply Agreement (FSA) with public sector Indian Oil Corporation (IOC) for the entire fuel and lubricant requirements of its manufacturing unit in Orai.

•HLL has a world-class information technology infrastructure to enable the businesses to respond faster and perform better.

•Hindustan Lever Ltd (HLL) has entered into job work arrangements with some bought leaf tea factories in the Nilgiris.

•HLL was one of the first companies to join the National Securities Depository (NSDL) to encourage its shareholders to avail themselves of its benefits.

THE ERA OF NEW AGE 2000-2009

•  The Company has launched a `ready to drink' (RTD) tea brand Lipton Ice Tea in Hyderabad with lemon and mango flavors+ launched a new brand of toothpaste -- Aim. daily washing needs Surf Excel Liquid detergent in the Indian Market. International Lux Skin care range, "Sunscreen Formula"HLL markets more than 110 brands, in 950 packs. the products are sold in one million retail outlets, directly covering India's entire urban population and about 50,000 villages+spree in deodorants a nascent Rs 75 crores market seems to be growth by categorization+ relaunched Close-Up as "Super Fresh Close-Up“+Lux Body Wash+Hindustan Lever Ltd. has proposed to make an open offer for a 24 per cent stake held by local shareholders in International Best foods Ltd., which is now a subsidiary of parent Unilever. Hindustan Lever Ltd's Pepsodent toothpaste has introduced games at McDonald's outlets.

Key Innovations/Activations

MORE PRODUCTS

TO SUM UP• Broad-based double digit sales growth; and

ahead of market • Growth momentum sustained in competitive

categories of Laundry and Shampoo• Looking forward:

• Thrust on innovation, market activation and appropriate A&P spends behind brands will continue, for driving growth.

• Continued cost pressure from input and freight escalation remains a challenge

• Cost savings and judicious price increases to help mitigate cost pressure

THANK YOU