hindustan liver limited
TRANSCRIPT
-
8/21/2019 Hindustan Liver Limited
1/83
CERTIFICATE
Certified that this project report MARKETING STRAREGY OF
HINDSTAN !E"ER !IMITED #is the $o%afide &or' of (( # &ho
carried o)t the project &or' )%der the s)per*isio% of (( +
SIGNATRE SIGNATRE
DR+ R+ K G,TA MISS+ ANKITA DHAMI-A
HEAD OF THE DE,ARTMENT ,roject I%char.e
//A //A
!!DIMS !!DIMS
-
8/21/2019 Hindustan Liver Limited
2/83
DEC!ARATION
I here$0 dec1are that the project &or' e%tit1ed MARKETING
STRATEGY OF HINDSTAN !E"ER !IMITED# s)$2itted to theGGS INDRA,RASTHA NI"ERSITY3 is a record of a% ori.i%a1 &or'
do%e $0 2e )%der the .)ida%ce of 3 Fac)1t0 Me2$er3 !INGAYA4S
!A!ITA DE"I INSTITTE OF MANAGEMENT AND SCIENCE3
a%d this project &or' has %ot perfor2ed the $asis for the a&ard of a%0
De.ree to the $est of 20 '%o&1ed.e+
5sa*i%a06 56
5SIGNATRE OF STDENT6
-
8/21/2019 Hindustan Liver Limited
3/83
ACKNO7!EDGEMENT
I owe a great many thanks to a great many people who helped and supported
me during the writing of this report. My deepest thanks to Lecturer, Ankita
Dhamija for correcting various documents of mine with attention and care.
He has taken pain to go through theprojectand make necessary correction
as and when needed. I epress my thanks to the H!D of ""A, for
etending his support. #hanks and appreciation to the helpful people at our
Institute, for their support. I would also like to thank my Institute and my
faculty mem$ers without whom this project would have $een a distant
reality.
http://www.blurtit.com/q6229703.htmlhttp://www.blurtit.com/q6229703.html -
8/21/2019 Hindustan Liver Limited
4/83
E8ECTI"E SMMARY
Hindustan Lever Limited %HLL& is India's largest (ast Moving )onsumer *oods
company, touching the lives of two out of three Indians with over + distinct categories in
Home - ersonal )are roducts and (oods - "everages. #hey endow the company with
a scale of com$ined volumes of a$out / million ecog and sales of 0s.1, crores.
HLL is also one of the country's largest eporters2 it has $een recogni3ed as a *olden
4uper 4tar #rading House $y the *overnment of India.
Hence, research aims is that to study the eisting marketing practices, emerging
marketing plans and understanding companies $usiness strategy with its profile.
#he main recommendations have $een made on the addressing of the advertising message
to the customers. An attempt has $een made to formulate the communication in a way to
$uild it on a platform of the $asic need for $uying HLL products. In another
recommendation the suggestions towards $etter dealer interest in HLL products has $een
given a chance.
#he research is $ased primarily on primary data2 however few references to industry
figures from secondary data have $een made. Data has $een collected through in depth
interviews and administered 5uestionnaires.
#he study has given the researchers an inside of the )onsumer dura$le Industry and an
opportunity to use the theoretical knowledge in live project.
-
8/21/2019 Hindustan Liver Limited
5/83
TA/!E OF CONTENTS
9 INTRODCTION 9
(M)* 46)#!0 I7 I7DIA 18+
: RESEARCH METHODO!OGY ;
0646A0)H !"96)#I:64 ;
0646A0)H M6#H!D!L!*< ;
0646A0)H I74#0=M67# ;
0646A0)H D64I*7>8 ;
DA#A )!LL6)#I!7 M6#H!D>8 ;
0IMA0< DA#A ;
; COM,ANY ,ROFI!E /I/!IOGRA,HY @9
-
8/21/2019 Hindustan Liver Limited
7/83
INTRODCTION
FMCG SECTOR IN INDIA
)onsumer Dura$le $rands may $e strong and have a good recall value $ut whether and to
what etent that results in incremental sales for the company is a de$ata$le issue. A
consumer's preference for )olgate or 7escafe, which results in incremental sales to the
respective companies. "ut at the time of $uying a television or a refrigerator, although the
strong $rand attachment is there, $etter product features, discountechangefree$ie
schemes going on at that point of time, a perception of superior value for money
proposition and most importantly the dealers push, finally leads to the decision which
may not necessarily $e the $rand with highest recall value.
)ompetition may $e as intense in the (M)* sector as the )onsumer Dura$le sector, so
are the $rands as strong. "ut (M)* companies' inspite of the intense competition
including the competition from imports still have reasona$le amount of pricing power.
ricing power is the a$ility of a company to increase prices without significantly
affecting the demand of the product. !ften aggressive price increases $y (M)*
companies go unnoticed $ecause of the small unit value of the product. "ut the same
cannot $e said a$out )onsumer Dura$les. 4everal $rands are fighting it out in the
fragmented market $ut all either have wafer thin margins %most are into huge losses& or
are competing at the cost of their profita$ility
(M)* companies and )onsumer Dura$les have strong $rands, the difference lies in
"rand ull among most (M)* companies as against "rand ush for )onsumer
Dura$le companies. If a consumer has a preference for *illette it is $rand pull. "ut in the
$uying decision of a consumer dura$le the dealers opinion and his push plays a very
important role to an etent that it is the dealer who decides what $rand you will $uywithin the parameters of $udget and product features. #herefore it is the $rand push $y
the dealer.
"rand ull in a consumer dura$le would come, when a consumer develops a preference
for a particular $rand. (or e.g. say an owner of a direct8cool refrigerator, later $uys the
same $rand of frost8free refrigerator, or $uys other products of the same company like
washing machine or television etc. (or this to happen the product attri$utes and the after
-
8/21/2019 Hindustan Liver Limited
8/83
sales services play a very important role. hile some companies lately have $een taking
lot of initiatives in improving the after sales service and $etter product performance
whether it has resulted in $uilding $rand loyalty is yet unclear. #o my knowledge no
study has yet $een conducted on repeat purchase of consumer dura$le $rands across
products. #he day it is esta$lished that $rand loyalty in this sector results in incremental
sales, then may$e )onsumer Dura$le )ompanies should command $etter valuations.
#he (M)* sector has shown splendid resilience in recent times. :arious companies
continue to go ahead with large investments in capacity augmentation despite stagnation
in the industry, a poor monsoon in +?8F and conse5uent dip in rural incomes. "esides,
on the anvil are $rand launches and entry into new product categories. #he performance
of large players apart, even medium and smaller companies are now dictating terms and
redefining the market. (M)* is an interesting and very eisting industry to work on, and
hence I was fascinated to my research work on this industry.
-
8/21/2019 Hindustan Liver Limited
9/83
RESEARCH METHODO!OGY
RESEARCH O/-ECTI"ES
#he $asic o$jective $ehind carrying out this research study is
#o study and analy3e the present marketing strategy followed $y HLL and
ropose effective strategies to HLL for greater market share
RESEARCH METHODO!OGY
#he section includes the overall research design, the sampling procedure, the datacollection method, the field method, and analysis and procedure.
RESEARCH DESIGNB(
(or this research project eploratory method is using
DATA CO!!ECTION METHODB(
#he data collect for the research can $e classified as primary data and secondary data.
rimary data is $y visiting eisting customer and epected customer of Hindustan Lever
Limited. And making them fill up the 5uestionnaire.4econdary data is from internet, $ooks, maga3ine etc.
RESEARCH INSTRMENT
#he instrument use for data collection is structured 5uestionnaire. Guestion is open and
close ended depending upon the information that needed to $e elicited. I am also using
the scaling techni5ue to assess the attitude of the customer.
4ampling plan>8
Ceeping all the constrains in mind a sample si3e of 1 people .#he sampling procedure
is systematic sampling
-
8/21/2019 Hindustan Liver Limited
10/83
HINDSTAN !E"ER !IMITED TO /ECOME HINDSTAN
NI!E"ER !IMITED
(M)* major Hindustan Lever on Monday said it has received governmentJs approval to
change its name to Hindustan =nilever Ltd following which, its new corporate identity
represented $y a new logo will come into effect.
#he identity sym$oli3es the $enefits we $ring to our consumers and the communities we
work in. !ur new identity will help us confidently position ourselves in every aspect of
our $usiness, Hindustan =nilever )6! Doug "aillie said. #he new logo is sym$olic of
the companyJs mission of JAdding :itality to life.J It comprises of + different icons
representing the organisation, its $rands and the idea of vitality, Hindustan =nilever said
in a communi5ue to the "om$ay 4tock 6change %"46&.
#he shareholders of the company had approved the proposal on May 1B. (or us this is
really an opportunity, collectively as an organisation, to renew and strengthen our
commitment to continue our endeavour to earn the love and respect of India, $y making a
real difference to every Indian, "aillie added.
6arlier in (e$ruary, the company said the proposed name change would provide optimum
$alance $etween maintaining its heritage and synergies of glo$al alignment with the
corporate name of =nilever. Anglo8Dutch (M)* giant =nilever owns a majority stake in
Hindustan Lever. =nilever set up its first Indian su$sidiary Hindustan :anaspati
Manufacturing )ompany in 1@;1, followed $y Lever "rothers India Ltd %1@;;& and
=nited #raders Ltd %1@;&. #hese three companies were merged to form HLL in
7ovem$er 1@?. 4hares of Hindustan =nilever were trading at 0s 1@+.F, up .F per
cent on "46 in early morning trade.
-
8/21/2019 Hindustan Liver Limited
11/83
COM,ANY ,ROFI!E
-
8/21/2019 Hindustan Liver Limited
12/83
-
8/21/2019 Hindustan Liver Limited
13/83
/RIEF HISTORY
-
8/21/2019 Hindustan Liver Limited
14/83
!ver 1 yearsJ link with India
In the summer of 1BBB, visitors to the Colkata har$their noticed crates full of 4unlight
soap $ars, em$ossed with the words Made in 6ngland $y Lever "rothers. ith it, $egan
an era of marketing $randed (ast Moving )onsumer *oods %(M)*&.
4oon after followed Life$uoy in 1B@ and other famous $rands like ears, Lu and :im.
:anaspati was launched in 1@1B and the famous Dalda $rand came to the market in 1@;F.
In 1@;1, =nilever set up its first Indian su$sidiary, Hindustan :anaspati Manufacturing
)ompany, followed $y Lever "rothers India Limited %1@;;& and =nited #raders Limited
%1@;&. #hese three companies merged to form HLL in 7ovem$er 1@?2 HLL offered
1K of its e5uity to the Indian pu$lic, $eing the first among the foreign su$sidiaries to do
so. =nilever now holds 1.K e5uity in the company. #he rest of the shareholding is
distri$uted among a$out ;B, individual shareholders and financial institutions.
#he erstwhile "rooke "ondJs presence in India dates $ack to 1@. "y 1@;, the
company had launched 0ed La$el tea in the country. In 1@1+, "rooke "ond - )o. India
Limited was formed. "rooke "ond joined the =nilever fold in 1@B/ through an
international ac5uisition. #he erstwhile LiptonJs links with India were forged in 1B@B.
=nilever ac5uired Lipton in 1@F+, and in 1@FF Lipton #ea %India& Limited was
incorporated.
ondJs %India& Limited had $een present in India since 1@/F. It joined the =nilever fold
through an international ac5uisition of )hese$rough ondJs =4A in 1@B?.
4ince the very early years, HLL has vigorously responded to the stimulus of economic
growth. #he growth process has $een accompanied $y judicious diversification, always in
line with Indian opinions and aspirations.
#he li$eralisation of the Indian economy, started in 1@@1, clearly marked an infleion in
HLLJs and the *roupJs growth curve. 0emoval of the regulatory framework allowed the
company to eplore every single product and opportunity segment, without any
constraints on production capacity.
4imultaneously, deregulation permitted alliances, ac5uisitions and mergers. In one of the
most visi$le and talked a$out events of IndiaJs corporate history, the erstwhile #ata !il
Mills )ompany %#!M)!& merged with HLL, effective from April 1, 1@@;. In 1@@, HLL
and yet another #ata company, Lakme Limited, formed a > joint venture, Lakme
Lever Limited, to market LakmeJs market8leading cosmetics and other appropriate
-
8/21/2019 Hindustan Liver Limited
15/83
products of $oth the companies. 4u$se5uently in 1@@B, Lakme Limited sold its $rands to
HLL and divested its K stake in the joint venture to the company.
HLL formed a > joint venture with the =48$ased Cim$erly )lark )orporation in
1@@/, Cim$erly8)lark Lever Ltd, which markets Huggies Diapers and Cote 4anitary
ads. HLL has also set up a su$sidiary in 7epal, 7epal Lever Limited %7LL&, and its
factory represents the largest manufacturing investment in the Himalayan kingdom. #he
7LL factory manufactures HLLJs products like 4oaps, Detergents and ersonal roducts
$oth for the domestic market and eports to India.
#he 1@@s also witnessed a string of crucial mergers, ac5uisitions and alliances on the
(oods and "everages front. In 1@@+, the erstwhile "rooke "ond ac5uired Cothari *eneral
(oods, with significant interests in Instant )offee. In 1@@;, it ac5uired the Cissan
$usiness from the =" *roup and the Dollops Icecream $usiness from )ad$ury India.
As a measure of $ackward integration, #ea 6states and Doom Dooma, two plantation
companies of =nilever, were merged with "rooke "ond. #hen in 9uly 1@@;, "rooke "ond
India and Lipton India merged to form "rooke "ond Lipton India Limited %""LIL&,
ena$ling greater focus and ensuring synergy in the traditional "everages $usiness. 1@@/
witnessed ""LIL launching the allJs range of (ro3en Desserts. "y the end of the year,
the company entered into a strategic alliance with the Cwality Icecream *roup families
and in 1@@ the Milkfood 1K Icecream marketing and distri$ution rights too were
ac5uired.
(inally, ""LIL merged with HLL, with effect from 9anuary 1, 1@@?. #he internal
restructuring culminated in the merger of ondJs %India& Limited %IL& with HLL in 1@@B.
#he two companies had significant overlaps in ersonal roducts, 4pecialty )hemicals
and 6ports $usinesses, $esides a common distri$ution system since 1@@; for ersonal
roducts. #he two also had a common management pool and a technology $ase. #he
amalgamation was done to ensure for the *roup, $enefits from scale economies $oth in
domestic and eport markets and ena$le it to fund investments re5uired for aggressively
$uilding new categories.
In 9anuary +, in a historic step, the government decided to award F/ per cent e5uity in
Modern (oods to HLL, there$y $eginning the divestment of government e5uity in pu$lic
sector undertakings %4=& to private sector partners. HLLJs entry into "read is a strategic
etension of the companyJs wheat $usiness. In ++, HLL ac5uired the governmentJs
remaining stake in Modern (oods.
-
8/21/2019 Hindustan Liver Limited
16/83
In +;, HLL ac5uired the )ooked 4hrimp and asteurised )ra$meat $usiness of the
Amalgam *roup of )ompanies, a leader in value added Marine roducts eports.
#he mission that inspires HLLJs ;?, employees, including over 1,; managers, is to
add vitality to life. HLL meets everyday needs for nutrition, hygiene, and personal care
with $rands that help people feel good, look good and get more out of life. It is a mission
HLL shares with its parent company, =nilever, which holds 1.K of the e5uity. #he
rest of the shareholding is distri$uted among ;B, individual shareholders and
financial institutions.
HLLJs $rands 8 like Life$uoy, Lu, 4urf 6cel, 0in, heel, (air - Lovely, ondJs,
4unsilk, )linic, epsodent, )lose8up, Lakme, "rooke "ond, Cissan, Cnorr8Annapurna,
Cwality allJs are household names across the country and span many categories 8soaps, detergents, personal products, tea, coffee, $randed staples, ice cream and culinary
products. #hey are manufactured in close to B factories. #he operations involve over
+, suppliers and associates. HLLJs distri$ution network, comprising a$out F,
redistri$ution stockists, directly covers the entire ur$an population, and a$out + million
rural consumers.
HLL has traditionally $een a company, which incorporates latest technology in all its
operations. #he Hindustan Lever 0esearch )entre %HL0)& was set up in 1@B, and now
has facilities in Mum$ai and "angalore. HL0) and the *lo$al #echnology )entres in
India have over + highly 5ualified scientists and technologists, many with post8doctoral
eperience ac5uired in the =4 and 6urope.
HLL $elieves that an organisationJs worth is also in the service it renders to the
community. HLL is focusing on health - hygiene education, women empowerment, and
water management. It is also involved in education and reha$ilitation of special or
underprivileged children, care for the destitute and HI:8positive, and rural development.
HLL has also responded in case of national calamities adversities and contri$utes
through various welfare measures, most recent $eing the village $uilt $y HLL in
earth5uake affected *ujarat, and relief - reha$ilitation after the #sunami caused
devastation in 4outh India.
!ver the last three years the company has em$arked on an am$itious programme, 4hakti.
#hrough 4hakti, HLL is creating micro8enterprise opportunities for rural women, there$y
improving their livelihood and the standard of living in rural communities. 4hakti also
-
8/21/2019 Hindustan Liver Limited
17/83
includes health and hygiene education through the 4hakti :ani rogramme, and creating
access to relevant information through the i4hakti community portal. #he programme
now covers a$out , villages in 1+ states. HLLJs vision is to take this programme to
1, villages impacting the lives of over a 1 million rural Indians.
HLL is also running a rural health programme Life$uoy 4wasthya )hetana. #he
programme endeavtheirs to induce adoption of hygienic practices among rural Indians
and aims to $ring down the incidence of diarrhoea. It has already touched F million
people in approimately 1 villages of B states. #he vision is to make a $illion Indians
feel safe and secure.
If Hindustan Lever straddles the Indian corporate world, it is $ecause of $eing single8
minded in identifying itself with Indian aspirations and needs in every walk of life.
HI7D=4#A7 L6:60 LIMI#6D I7DIA'4 LA0*64# (M)* )!MA7>>
4unlight soap introduced in India.
9>
Dr. A. 4. *anguly takes over as )hairman from Mr. #. #homas2 =nilever shareholding in
the company comes down to 1K.
9>:
*overnment allows 1K =nilever shareholding.
9>=
(oods, Animal (eeds $usinesses transferred to Lipton.
9>?
Agri8products unit at Hydera$ad starts functioning 8 first range of hy$rid seeds comes
out2 Chamgaon 4oaps unit and
-
8/21/2019 Hindustan Liver Limited
25/83
9>>
Launch of Lipton #aa3a tea.
9
Mr. 4. M. Datta takes over as )hairman from Dr. A. 4. *anguly.
1@@1
4urf =ltra detergent launched.
9:
HLL recognised $y *overnment of India as 4tar #rading House in 6ports.
9;
HLLJs largest competitor, #ata !il Mills )ompany %#!M)!&, merges with the company
with effect from April 1, 1@@;, the $iggest such in Indian industry till that time. Merger
ultimately accomplished in Decem$er 1@@/2 Launch of :im $ar2 Cissan ac5uired from
the =" *roup.
9=
HLL forms 7epal Lever Limited, HLL and =48$ased Cim$erley8)lark )orporation form
> joint venture 8 Cim$erley8)lark Lever Ltd. 8 to market Huggies diapers and Cote
feminine care products. (actory set up at une in 1@@2 HLL ac5uires Cwality and
Milkfood 1K $randnames and distri$ution assets. HLL introduces allJs.
9 joint venture 8 Lakme Lever
Ltd.2 HLL enters $randed staples $usiness with salt2 HLL recognised as 4uper 4tar
#rading House.
9?
Mr. C. ". Dadiseth takes over as )hairman from Mr. 4. M. Datta2 Merger of *roup
company, "rooke "ond Lipton India Limited, with HLL, with effect from 9anuary 12
HLL introduces $randed atta2 4urf 6cel launched.
9@
=nilever sets up International 0esearch La$oratory in "angalore2 new 0egional
Innovation )entres also come up.
9>
*roup c4ompany, ondJs India Ltd., merges with HLL with effect from 9anuary 1, 1@@B.
HLL ac5uires Lakme $rand, factories and Lakme Ltd.Js K e5uity in Lakme Lever Ltd.
-
8/21/2019 Hindustan Liver Limited
26/83
:
Mr. M. 4. "anga takes over as )hairman from Mr. C. ". Dadiseth, who joins the =nilever
"oard2 HLL ac5uires F/K stake in Modern (ood Industries Ltd., the first pu$lic sector
company to $e disinvested $y the *overnment of India.
::
HLL enters Ayurvedic health - $eauty centre category with the Ayush range and Ayush
#herapy )entres.
:;
Launch of Hindustan Lever 7etwork2 ac5uisition of the Amalgam *roup
:
HLL has earned a reputation for conducting its $usiness with integrity and with respect
for the interests of those their activities can affect. #his reputation is an asset, just as real
as their people and $rands.#heir first priority is to $e a successful $usiness and that means investing for growth and
$alancing short8term and long8term interests. It also means caring a$out their consumers,
employees and shareholders, their $usiness partners and the world in which we live.
(rom HLL 4pokesperson N#o succeed re5uires the highest standards of $ehavior from all
of us. #he general principles contained in this )ode set out those standards. More detailed
guidance tailored to the needs of different countries and companies will $uild on these
principles as appropriate, $ut will not include any standards less rigorous than those
contained in this )ode.
e want this )ode to $e more than a collection of high8sounding statements. It must have
practical value in their day8to8day $usiness and each one of us must follow these
principles in the spirit as well as the letterO.ref: business world magazine.
)ode of "usiness rinciples
4tandard of )onduct
HLL conduct their operations with honesty, integrity and openness, and with respect for
the human rights and interests of their employees.
#hey similarly respect the legitimate interests of those with whom we have relationships.
!$eying the Law
HLL companies and employees are re5uired to comply with the laws and regulations of
the countries in which they operate.
6mployees
HLL is committed to diversity in a working environment where there is mutual trust and
-
8/21/2019 Hindustan Liver Limited
29/83
respect and where everyone feels responsi$le for the performance and reputation of the
company.
HLL will recruit, employ and promote employees on the sole $asis of the 5ualifications
and a$ilities needed for the work to $e performed.
HLL are committed to safe and healthy working conditions for all employees. e will not
use any form of forced, compulsory or child la$our.
HLL are committed to working with employees to develop and enhance each individualJs
skills and capa$ilities.
HLL respect the dignity of the individual and the right of employees to freedom of
association.
HLL will maintain good communications with employees through company $ased
information and consultation procedures.
)onsumers
HLL is committed to providing $randed products and services which consistently offer
value in terms of price and 5uality, and which are safe for their intended use. roducts
and services will $e accurately and properly la$elled, advertised and communicated.
4hareholders
HLL will conduct its operations in accordance with internationally accepted principles of
good corporate governance. #hey will provide timely, regular and relia$le information on
their activities, structure, financial situation and performance to all shareholders.
"usiness artners
HLL is committed to esta$lishing mutually $eneficial relations with their suppliers,
customers and $usiness partners.
In their $usiness dealings they epect their partners to adhere to $usiness principles
consistent with their own.
)ommunity Involvement
HLL strives to $e a trusted corporate citi3en and, as an integral part of society, to fulfill
their responsi$ilities to the societies and communities in which they operate.
u$lic Activities
HLL companies are encouraged to promote and defend their legitimate $usiness interests.
HLL will co8operate with governments and other organisations, $oth directly and through
$odies such as trade associations, in the development of proposed legislation and other
regulations which may affect legitimate $usiness interests.
-
8/21/2019 Hindustan Liver Limited
30/83
HLL neither supports political parties nor contri$utes to the funds of groups whose
activities are calculated to promote party interests.
#he 6nvironment
HLL is committed to making continuous improvements in the management of their
environmental impact and to the longer8term goal of developing a sustaina$le $usiness.
HLL will work in partnership with others to promote environmental care, increase
understanding of environmental issues and disseminate good practice.
Innovation
In their scientific innovation to meet consumer needs they will respect the concerns of
their consumers and of society. #hey will work on the $asis of sound science, applying
rigorous standards of product safety.
)ompetition
HLL $elieves in vigorous yet fair competition and supports the development of
appropriate competition laws. #heir companies and employees will conduct their
operations in accordance with the principles of fair competition and all applica$le
regulations.
"usiness Integrity
HLL does not give or receive, whether directly or indirectly, $ri$es or other improper
advantages for $usiness or financial gain. 7o employee may offer, give or receive any
gift or payment which is, or may $e construed as $eing, a $ri$e. Any demand for, or offer
of, a $ri$e must $e rejected immediately and reported to management.
HLL accounting records and supporting documents must accurately descri$e and reflect
the nature of the underlying transactions. 7o undisclosed or unrecorded account, fund or
asset will $e esta$lished or maintained.
)onflicts of Interests
All HLL employees are epected to avoid personal activities and financial interests which
could conflict with their responsi$ilities to the company.
HLL employees must not seek gain for themselves or others through misuse of their
positions.
)ompliance Monitoring 0eporting
)ompliance with these principles is an essential element in their $usiness success. #he
=nilever "oard is responsi$le for ensuring these principles are communicated to, and
understood and o$served $y, all employees.
-
8/21/2019 Hindustan Liver Limited
31/83
Day8to8day responsi$ility is delegated to the senior management of the regions and
operating companies. #hey are responsi$le for implementing these principles, if
necessary through more detailed guidance tailored to local needs.
Assurance of compliance is given and monitored each year. )ompliance with the )ode is
su$ject to review $y the "oard supported $y the Audit )ommittee of the "oard and the
)orporate 0isk )ommittee.
Any $reaches of the )ode must $e reported in accordance with the procedures specified
$y the 9oint 4ecretaries. #he "oard of =nilever will not criticise management for any loss
of $usiness resulting from adherence to these principles and other mandatory policies and
instructions.
#he "oard of =nilever epects employees to $ring to their attention, or to that of senior
management, any $reach or suspected $reach of these principles. rovision has $een
made for employees to $e a$le to report in confidence and no employee will suffer as a
conse5uence of doing so.
In this )ode the epressions J=nileverJ and J=nilever companiesJ are used for convenience
and mean the =nilever *roup of companies comprising =nilever 7.:., =nilever L) and
their respective su$sidiary companies. #he "oard of =nilever means the Directors of
=nilever 7.:. and =nilever L)'.ref>#H6 764
EN"IRONMENT ,O!ICY
Hindustan Lever Limited %HLL& supplies high 5uality goods and services to meet the
daily needs of consumers and industry. In doing so, the )ompany is committed to ehi$it
the highest standards of corporate $ehaviour towards its consumers, employees, the
societies and the world in which we live.
#he company recognises its joint responsi$ility with the *overnment and the u$lic to
protect environment and is committed to regulate all its activities so as to follow $est
practica$le means for minimising adverse environmental impact arising out of its
operations.
#he company is committed to making its products environmentally accepta$le, on a
scientifically esta$lished $asis, while fulfilling consumersJ re5uirements for ecellent
5uality, performance and safety.
#he aim of the olicy is to do all that is reasona$ly practica$le to prevent or minimise,
encompassing all availa$le knowledge and information, the risk of an adverse
-
8/21/2019 Hindustan Liver Limited
32/83
environmental impact arising from processing of the product, its use or foreseea$le
misuse.
#his olicy document reflects the continuing commitment of the "oard for sound
6nvironment Management of its operations. #he olicy applies to development of a
process, product and services, from research to full8scale operation. It is applica$le to all
company operations covering its plantations, manufacturing, sales and distri$ution,
research - innovation centres and offices. #his document defines the aims and scope of
the olicy as well as responsi$ilities for the achievement of the o$jectives laid down.
THE "ISION
#heir vision is to continue to $e an environmentally responsi$le organisation making
continuous improvements in the management of the environmental impact of their
operations.
HLL will achieve this through an Integrated 6nvironment Management approach, which
focuses on eople, #echnology and (acilities, supported $y Management )ommitment as
the prime driver.
#he 6nvironment olicy
Hindustan Lever Ltd. %HLL& is committed to meeting the needs of customers and
consumers in an environmentally sound manner, through continuous improvement inenvironmental performance in all their activities. Management at all levels, jointly with
employees, is responsi$le and will $e held accounta$le for companyJs environmental
performance.
-
8/21/2019 Hindustan Liver Limited
33/83
,RICING ACTION IN :?B
,rice red)ctio%
rice reduction %"ottles& - :alue improvement %4achets&
-
8/21/2019 Hindustan Liver Limited
34/83
IN"ESTMENT /EHIND /RANDS
I%%o*atio% S)perior )a1it0
(amily safe etalsoft Guick wash 8 K 7o mud 0in Advance
from germs ater - effort
saving
erfect 0adiance N in 1O hair #otal )are hiter teeth (resher $reath
health $enefits
CRRENT MARKET CONTE8T
-
8/21/2019 Hindustan Liver Limited
35/83
Actio%s
P ricing
Laundry> rice 0eduction
4hampoos> :alue Improvement - Lower rice oints
#oothpaste> :alue )orrections - 4C= rationali3ation
P Investments $ehind $rands
Innovations
Guality
Higher A-
P )orrective actions in processed
,rocessed Foods
P )orrective actions
hased stock reduction
ithdrawl of Q; innovation
Defocus of Atta in unvia$le geographies
P 4ales decline of +?K arising from a$ove actions
P Market shares held improved
:alue 4hares MG '/ 9G '/ 4G '/ DG Q/
9ams FB.B FB.F F@. FB./
Cetchup +@ +F.B +@.@ ;.;
4alt 1./ 1.+ 1?.1 1.F
-
8/21/2019 Hindustan Liver Limited
36/83
,RODCTS
Lu "ree3eLife$uoy DoveLiril earsHamam 0eona
4urf 6cel (air - Lovely 0in ondJs heel
4unsilk 7aturals epsodent )linic )lose8up
Ae Lakme
0eona
Ayush
"rooke "ond
"ruLipton
CissanCwality allJs
Cnorr Annapurna
http://www.hll.com/brands/lux.asphttp://www.hll.com/brands/breeze.asphttp://www.hll.com/brands/lifebuoy.asphttp://www.hll.com/brands/dove.asphttp://www.hll.com/brands/liril.asphttp://www.hll.com/brands/pears.asphttp://www.hll.com/brands/hamam.asphttp://www.hll.com/brands/rexona.asphttp://www.hll.com/brands/surf_excel.asphttp://www.hll.com/brands/fairnlovely.asphttp://www.hll.com/brands/rin.asphttp://www.hll.com/brands/ponds.asphttp://www.hll.com/brands/wheel.asphttp://www.hll.com/brands/sunsilk.asphttp://www.hll.com/brands/pepsodent.asphttp://www.hll.com/brands/clinicallclear.asphttp://www.hll.com/brands/close_up.asphttp://www.hll.com/brands/axe_magnet.asphttp://www.hll.com/brands/lakme.asphttp://www.hll.com/brands/rexona_deo.asphttp://www.hll.com/brands/ayush_range.asphttp://www.hll.com/brands/brook_bond.asphttp://www.hll.com/brands/bru.asphttp://www.hll.com/brands/lipton.asphttp://www.hll.com/brands/kissan.asphttp://www.hll.com/brands/kwality_walls.asphttp://www.hll.com/brands/annapurna.asphttp://www.hll.com/brands/lux.asphttp://www.hll.com/brands/breeze.asphttp://www.hll.com/brands/lifebuoy.asphttp://www.hll.com/brands/dove.asphttp://www.hll.com/brands/liril.asphttp://www.hll.com/brands/pears.asphttp://www.hll.com/brands/hamam.asphttp://www.hll.com/brands/rexona.asphttp://www.hll.com/brands/surf_excel.asphttp://www.hll.com/brands/fairnlovely.asphttp://www.hll.com/brands/rin.asphttp://www.hll.com/brands/ponds.asphttp://www.hll.com/brands/wheel.asphttp://www.hll.com/brands/sunsilk.asphttp://www.hll.com/brands/pepsodent.asphttp://www.hll.com/brands/clinicallclear.asphttp://www.hll.com/brands/close_up.asphttp://www.hll.com/brands/axe_magnet.asphttp://www.hll.com/brands/lakme.asphttp://www.hll.com/brands/rexona_deo.asphttp://www.hll.com/brands/ayush_range.asphttp://www.hll.com/brands/brook_bond.asphttp://www.hll.com/brands/bru.asphttp://www.hll.com/brands/lipton.asphttp://www.hll.com/brands/kissan.asphttp://www.hll.com/brands/kwality_walls.asphttp://www.hll.com/brands/annapurna.asp -
8/21/2019 Hindustan Liver Limited
37/83
I%dias !ar.est /ra%ded FMCG Eporter
It was 1@?+. #he reality of India then was very different from what it is today. IndiaJs
economy then suffered from foreign echange shortage. Hindustan Lever voluntarily
decided to take up 6ports to support the countryJs economy.
#oday, HLL is IndiaJs largest eporter of $randed (ast Moving )onsumer *oods. It has
$een recognised $y the *overnment of India as a *olden 4uper 4tar #rading House.
!ver time, HLL has developed appropriate capa$ilities to $e glo$ally competitive in cost
and 5uality for a via$le 6ports $usiness.
(ocus Areas
HLLJs 6ports focuses on two $road areas. It is a sourcing $ase for =nilever $rands in
Home - ersonal )are %H)& and #ea for supplies to other =nilever companies. It also
focuses on $ecoming a preferred supplier to $oth non8=nilever and =nilever clients in
three categories in which India, as a country, has competitive advantage 8 Marine
roducts, )astor and its Derivatives and 0ice. HLL enjoys international recognition
within =nilever and outside for its 5uality, relia$ility and speed of customer service.
HLLJs 6ports geography comprises, at present, countries in Asia, Australia, Africa,
7orth America and 6urope.
HLLJs 6ports portfolioH)>
#he categories are soaps, skin care products and oral care products. #he $rands are Lu,
Life$uoy, ears, (air - Lovely, Dove, :aseline, )lose8=p, epsodent, 4ignal. HLL is the
only source of ears soap across the world.
#ea>
#he categories are $randed packet tea, and instant tea for =nileverJs ready8to8drink tea
$usiness. #he $randed teas are "rooke "ond, "rooke "ond 0ed la$el, "rooke "ond #aj
Mahal, Lipton, Lipton
-
8/21/2019 Hindustan Liver Limited
38/83
seafoods for 6urope too. HLLJs Marine roducts $rands are !cean Diamond, !cean
6cellence, 4hogun, Hima, *old 4eal, #ara and rima.
0ice>
#he categories are "asmati 0ice and "asmati 0ice8$ased ready8to8eat rice meals. #he
$rands are *old 4eal Indus :alley, 0o3ana and Annapurna.
)astor>
#he categories are )astor !il, )astor8oil $ased products, like hydrogenated castor oil, 1+
8 Hydroy 4tearic Acid, 0icinoleic Acid %used in grease and lu$ricant industry, paints and
surface coatings, cosmetics, emulsifiers&, and 4peciality )astor !ils %=4 grade, "
grade, DA" 1& etc used in pharmaceutical preparations. HLLJs )astor $rand is #opsol.
#oday, 6ports is a su$stantial $usiness in HLL, accounting for a$out 1+K of the
companyJs turnover. HLL $elieves that its competitive advantages of cost
competitiveness, process competitiveness and economies of scale $oth at the company
and country level, hold it in good stead. #hey position the company to $ecome one of the
hu$s for sourcing $y =nilever companies in H) and #ea, and also simultaneously
$ecome a preferred partner to glo$al customers in Marine roducts, )astor and 0ice.
Direct 4elling>
roduct 0ange
P Lever home range
P Male grooming
P !ral )are
P Ayurveda
P ersonal ash
P (oods
0each 8 1/ towns %Largest in India&
)onsultant $ase 8 ;;,
-
8/21/2019 Hindustan Liver Limited
39/83
-
8/21/2019 Hindustan Liver Limited
40/83
ACCORDING!Y3 H!!S AIMS ARE TOB
6nsure safety of its products and operations for the environment $y using
standards of environmental safety, which are scientifically sustaina$le and
commonly accepta$le.
Develop, introduce and maintain environmental management systems across the
company to meet the company standards as well as statutory re5uirements for
environment. :erify compliance with these standards through regular auditing.
Assess environmental impact of all its activities and set annual improvement
o$jectives and targets and review these to ensure that these are $eing met at the
individual unit and corporate levels.
0educe aste, conserve 6nergy and eplore opportunities for reuse and recycle.
Involve all employees in the implementation of this olicy and provide
appropriate training. rovide for dissemination of information to employees on
environmental o$jectives and performance through suita$le communication
networks.
6nctheirage suppliers and co8packers to develop and employ environmentally
superior processes and ingredients and co8operate with other mem$ers of the
supply chain to improve overall environmental performance.
ork in partnership with eternal $odies and *overnment agencies to promote
environmental care, increase understanding of environmental issues and
disseminate good practice.
-
8/21/2019 Hindustan Liver Limited
41/83
RES,ONSI/I!ITIES
COR,ORATE
#he "oard and the Management )ommittee of HLL is committed to conduct the
company operations in an environmentally sound manner. #he Management )ommittee
will>
Mandatory standards and esta$lish environmental improvement o$jectives and targets
for HLL as a whole and for individual units, and ensure these are included in the annual
operating plans.
(ormally review environment performance of the company once every 5uarter.
0eview environment performance when visiting units and recognise eemplary
performance.
7ominate>
A senior line manager responsi$le for environmental performance at the individual HLL
site.
H!! EN"IRONMENTA! COORDINATOR+
#he Management )ommittee, through the nominated environmental coordinator will>
6nsure implementation of HLL olicy on environment and compliance with =nilever
and HLL environmental standards and the standards stipulated under relevant national
local legislation. hen $elieved to $e appropriate, apply more stringent criteria than
those re5uired $y law.
Assess environmental impact of HLL operations and esta$lish strategies for sound
environment management and key implementation steps.6nctheirage development of inherently safer and cleaner manufacturing processes to
further raise the standards of environment performance.
6sta$lish appropriate management systems for environment management and ensure
regular auditing to verify compliance.
6sta$lish systems for appropriate training in implementation of 6nvironment
Management 4ystems at work.
-
8/21/2019 Hindustan Liver Limited
42/83
6nsure that all employees are made aware of individual and collective responsi$ilities
towards environment.
Arrange for epert advice on all aspects of environment management.
articipate, wherever possi$le, with appropriate industry and *overnment $odies
advising on environmental legislation and interact with national and local authorities
concerned with protection of environment.
Individual =nits
#he overall responsi$ility for environment management at each unit will rest with the
=nit Head, who will ensure implementation of HLL olicy on environment at unit level.
)oncerned line managers heads of departments are responsi$le for environmental
performance at department levels.
In order to fulfill the re5uirements of the 6nvironment olicy at each site, the =nit Head
will>
Designate a unit environment coordinator who will $e responsi$le for co8ordinating
environmental activities at unit, collating environmental statistics and providing
arranging for epert advice.
Agree with the Management )ommittee Mem$er responsi$le for the unit, specific
environmental improvement o$jectives and targets for the unit and ensure that these are
incorporated in the annual o$jectives of the concerned managers and officers and are
reviewed periodically.
6nsure that the unit complies with =nilever and HLL mandatory standards and the
relevant national and state regulations with respect to environment.
6nsure formal environmental risk assessment to identify associated environmental
aspects and take appropriate steps to control risks at accepta$le levels.
6nsure that all new operations are su$jected to a systematic and formal analysis to assess
environmental impact. (indings of such eercises should $e implemented prior to
commencement of the activity.
Manage change in eople, #echnology and (acilities through a planned approach $ased
on training, risk assessment, pre8commissioning audits and adherence to design codes.
0egularly review environment performance of the unit against set o$jectives and targets
and strive for continual improvement.
-
8/21/2019 Hindustan Liver Limited
43/83
4ustain a high degree of environmental awareness through regular promotional
campaigns and employee participation through training, safety committees, emergency
drills etc.
6nsure dissemination of relevant information on environment within the unit and to
outside $odies, and regularly interact with *overnment authorities concerned for
protection of environment.
Maintain appropriate emergency procedures consistent with availa$le technologies to
prevent control environmental incidents.
rovide appropriate training to all employees.
6nsure periodic audits to verify compliance with environment management systems and
personally carry out sample environment audits to check efficacy of the systems.
0eport environmental statistics to HLL )orporate 4afety - 6nvironment *roup on a
monthly $asis.
0esearch and Innovation )entres
4ince most new products and processes are developed in these =nits, certain additional
0esponsi$ilities devolve on them to ensure implementation of the 6nvironment olicy of
the company. In addition to the =nit HeadJs responsi$ilities outlined a$ove, the heads of
these units will>
6nsure that a formal and systematic risk assessment eercise is undertaken during the
processproduct development stage with specific reference to environmental impact.
#ransfer technology to the pilot plant and main production through a properly
documented process specification which will clearly define environmental impact and
risks associated with processes, products, raw material and finished product handling,
transport and storage.
6nsure that treatment techni5ues are developed for any wastes generated as a result of
the new productprocess and is incorporated into the process specifications.
-
8/21/2019 Hindustan Liver Limited
44/83
A!ITY ,O!ICYB
Hindustan Lever Limited considers 5uality as one of the principal strategic o$jectives to
guarantee its growth and leadership in the markets in which it operates.
#he company is committed to respond creatively and competitively to the changing needs
and aspirations of their consumers through relentless pursuit of technological ecellence,
innovation and 5uality management across their $usinesses, and offer superior 5uality
products and services that are appropriate to the various price points in the market as well
as to their commitment to $uilding shareholder value.
#he company recognises that its employees are the primary stheirce of success in its
operations and is committed to training and providing them the necessary tools and
techni5ues as well as empowering them to ensure $road $ase compliance of this policy in
the organisation at all levels.
#he company is committed to fulfill its legal and statutory o$ligations and international
standards of product safety and hygiene and will not knowingly sell product that is
harmful to consumers or their $elongings. It will institute systems and measures to
monitor compliance in order to meet its responsi$ilities to consumers.
#he company will maintain an open communication channel with its consumers and
customers and will carefully monitor the feed$ack to continuously improve its productsand services and set 5uality standards to fulfill them. #he company is committed to
etend its 5uality standards to its contract manufacturers, key suppliers and service
providers and $y entering into alliances with them, to jointly improve the 5uality of its
products and services. #his policy is applica$le to production from its own facilities as
well as to production that is outstheirced.
#he company will periodically review this 5uality policy for its effectiveness and
consistency with $usiness o$jectives.
#he company delegates authority and responsi$ility for dissemination and
implementation of this policy to each "usiness and =nit Head.
-
8/21/2019 Hindustan Liver Limited
45/83
SAFETY AND HEA!TH ,O!ICY
I%trod)ctio%
Hindustan Lever Limited %HLL& supplies high 5uality goods and services to meet the
daily needs of consumers and customers. In doing so, the )ompany is committed toehi$it the highest standards of corporate $ehavior towards its consumers, employees, the
societies and the environment in which we operate.
#owards this, the )ompany recognises its responsi$ility to ensure safety and protection of
health of its employees, contractors and visitors in all its operating sites, which include
manufacturing, sales and distri$ution, research la$oratories and offices during work and
work related travel.
#his olicy document defines the vision, principles, aim, re5uired actions and scope of
the policy application as well as the responsi$ility for eecution.
Their "isio%
#heir vision is to $e an injury free organisation.
HLL 764>Oe will $ring safety on top of mind for all employees and will integrate it
with all $usiness processes. e will realise their :ision through an Integrated 4afety
Management approach, which focuses on eople, rocesses, 4ystems, #echnology and
(acilities, supported $y demonstrated leadership and employee commitment at all levels
as the prime drivers for ensuring a safe and healthy work environmentO.
Safet0 ,ri%cip1esB
HLLJs !ccupational 4afety and Health olicy is $ased on and supported $y the followingeight rinciples.#hese rinciples have the same status as the )ompanyJs )ode of "usiness rinciples>
All injuries and occupational illnesses are preventa$le
All operational eposures can $e safeguarded
4afety evaluation of all $usiness processes is vital
orking safely is a condition of employment
#raining all employees to work safely is essential
Management audits are a must
6mployee involvement is essential
-
8/21/2019 Hindustan Liver Limited
46/83
All deficiencies must $e reported and corrected promptly
In order to facilitate operationalisation of the 4afety rinciples, a separate document has
$een prepared, which covers>
a& 4afety rinciples
$& 4uccess )riteria
c& Illustrative CI
-
8/21/2019 Hindustan Liver Limited
47/83
CONSMER SATISFACTION
Indira is + years old, a tri$al woman at Condegaon village in "astar district. 4he is just$ack from the near$y jungles, collecting firewood. After attending to her $a$y son, she
will go to the village well to take a 5uick wash.
-
8/21/2019 Hindustan Liver Limited
48/83
Life$uoy, whose core e5uity is health and hygiene , has for decades now $een
synonymous with soap in rural India.
At the same time, if products have to come up the order in the rural purchase hierarchy,
they have to $e afforda$le. If rural India today accounts for a$out half of detergents sales,
it is $ecause HLL has developed low8cost value8for8money $randed products, like heel.
#he company has also taken initiatives to create markets even for apparently premium
products, $y offering them in pack si3es, like sachets, whose unit prices are within the
reach of rural consumers. (or eample, initiated in the 1@Bs, sachets %0s.+, 0e.1, or
paise& today constitute a$out K of Hindustan LeverJs shampoo sales. ith media reach
gradually increasing, rural consumers today, where the media has its footprints, share the
same aspirations with their ur$an counterparts. HLL has responded to the trend with low
unit price packs of even other products 8 Lu at 0s., Life$uoy at 0s.+, 4urf 6cel sachet
at 0s.1., ondJs #alc at 0s., epsodent toothpaste at 0s. , (air - Lovely 4kin )ream
at 0s., ondJs )old )ream at 0s., "rooke "ond #aa3a tea at 0s..
!ther marketing strategies>
(or decades now, Hindustan Lever has also taken initiatives to circumvent the limitation
in communication channels, $y innovatively leveraging non8conventional media. Among
them are wall paintings, cinema vans, weekly markets %haat&, fairs and festivals. *iven
the rural consumerJs fascination for cinema, the cinema vans show popular movies,
interspersed with products advertisements. eekly markets, fairs and festivals are parts
and parcel of rural life. #hey give an opportunity to address consumers, spread over many
tiny hamlets, at one location. #he occasions are used to demonstrate product $enefits and
also sell such products. 4uch demonstrations have played a significant role in creating,
for eample, the detergents market in rural India. In recent times, such demonstrations are
$eing deployed to illustrate how visi$le clean is not hygienic clean, and how using soap is
essential to prevent easily avoida$le infections.
)ommunication through fairs and festivals are $acked $y direct consumer contact. (or
eample, in 1@@B8@@, Hindustan Lever implemented a major direct consumer contact,
called roject "harat, which covered +.+ crore homes. 6ach home was given a $o, at a
special price of 0s.1, comprising a low unit price pack of shampoo, talcum powder,
toothpaste and skin cream, along with educational leaflets and audio8visual
demonstrations. #he project has helped eliminate $arriers to trial, and has strengthened
salience of $oth particular categories and $rands. 4imilarly in ++, Hindustan Lever has
-
8/21/2019 Hindustan Liver Limited
49/83
launched a similar large8scale direct contact, called Life$uoy 4wasthya )hetana, which
already covers F million people in 1B, villages of B states. #he project is intended at
generating awareness a$out good health and hygiene practices, and specifically how a
simple ha$it of washing hands is essential to maintaining good health. #he initiative will
involve interaction with students and senior citi3ens, who act as change agents.
Availa$ility of HLL's roduct>
*enerating awareness pays dividends only when steps are taken to ensure constant
availa$ility of products. In rural India particularly, availa$ility determines volumes and
market share, $ecause the consumer usually purchases what is availa$le at the outlet,
influenced very largely $y the retailer.
#herefore, over the decades, Hindustan Lever has progressively strengthened its
distri$ution reach in rural India, which today has a$out ;; lakh outlets. Direct rural
distri$ution in Hindustan Lever $egan with the coverage of villages adjacent to small
towns. #he companyJs stockists in these towns were made to use their infrastructure to
distri$ute products to outlets in these villages. "ut this distri$ution mode could only $e
etended to villages connected with motora$le roads, and it could cover a$out +K of the
rural population $y 1@@.
#herefore in 1@@B, Hindustan Lever launched roject 4treamline to further etend its
distri$ution reach. =nder this initiative, the company identifies su$8stockists in a large
village, connected $y motora$le road to a small town. #his su$8stockist in turn distri$utes
the companyJs products to outlets in adjacent smaller villages using transportation
suita$le to interconnecting roads, like cycles, scooters or the age8old $ullock cart.
Hindustan Lever is thus trying to circumvent the $arrier of motora$le roads. As a result,
the distri$ution network, as of now, directly covers a$out , villages, reaching a$out
+ million consumers. #he company simultaneously uses the wholesale channel,
suita$ly incentivising them to distri$ute company products.
HLL has in the recent past esta$lished a common distri$ution system in rural areas for all
its products. *iven the num$er of $rands and their packs the rural retailer usually
re5uires, one HLL representative can take all the products from the company portfolio
that he needs. #his common distri$ution system is now fully operational, under one
0egional 4ales Manager eclusively dedicated to rural markets of each region of the
country.
!ver time, Hindustan Lever will further strengthen its rural distri$ution through mutually
-
8/21/2019 Hindustan Liver Limited
50/83
$eneficial alliances with rural 4elf Help *roups %4H*s&. !ver the last five years,
financial institutions, 7*!s and government organisations are working closely to
esta$lish 4H*s, whose o$jective is to alleviate poverty through sustaina$le income8
generating activities. 4ince +1, Hindustan Lever is implementing roject 4hakti,
where$y 4H*s are $eing offered the option of distri$uting relevant products of the
company as a sustaina$le income8generating activity. #he model hinges on a powerful
win8win relationship2 the 4H* engages in an activity which $rings sustaina$le income,
while Hindustan Lever gets an interface to interact and transact with the rural consumer.
HLLJs vision for roject 4hakti is to scale it up across the country $y +, creating a$out
+ 4hakti entrepreneurs, covering 1, villages, and touching the lives of 1
million rural consumers. "egun with groups in 7algonda district of Andhra radesh,
with the support of local authorities, the project has $een etended, as of now, to a$out
, villages in 1+ states. A typical 4hakti entrepreneur conducts $usiness of around
0s.1, 8 0s 1, per month, which gives her an income of a$out 0s F 8 0s.1
per month on a sustaina$le $asis. As most of these women are from $elow the poverty
line, and live in etremely small villages %less than + population&, this earning is very
significant, and is almost dou$le of their past household income. #he full $enefit of
roject 4hakti will $e realised after some years.
H!! S,,!Y CHAIN
-
8/21/2019 Hindustan Liver Limited
51/83
NATION 7IDE MANFACTRING>
B factories, across India
#he year was 1@+;. Lord Leverhulme, the legendary founder of Lever "rothers, was
visiting India. #he nationalist sentiment in India was for locally manufactured products.
Lord Leverhulme, who $elieved that what is good for a country is e5ually good for the
company, responded to that aspiration $ecause he too shared that dream.
His dream ultimately was realised in 1@;/. In 4eptem$er 1@;/, after more than a decade
of discussions in London and in India, a Lever factory was allowed to sprout on the land
that had $een reclaimed $y the "om$ay ort #rust at 4ewri. (rom here, a month later
rolled out the first cake of 4unlight soap to $e manufactured in India. #he same year,Lever "rothers took over the *arden 0each (actory in Colkata.
#hese two factories were the first in a manufacturing $ase, which today literally dots the
length and $readth of India. (rom Assam to *ujarat, from =ttaranchal to Cerala.
Hindustan LeverJs diverse product range is today manufactured in a$out B factories. In
addition, the company outsources from 1 other units. #he operations involve +,
suppliers and associates.
Ma%)fact)ri%.
Company SupplyPersons
Company SupplyPersons
Company SupplyPersons
Company SupplyPersons
WholesellerFamily GrocerKioskSupermarkets
-
8/21/2019 Hindustan Liver Limited
52/83
De*e1opi%. $ac'&ard areas
4everal HLL factories are situated in $ackward areas. #he company has consciously
responded to the national policy of development of $ackward areas $y setting up
manufacturing units in these places, which provide several direct and indirect
employment opportunities for these areas, and leads to general economic development of
these regions through industrialisation. In fact, all major investments of HLL, in recent
years, have $een either in A8)ategory $ackwad areas or 7o8Industry Districts. #hese
include factories in Chamgaon and
-
8/21/2019 Hindustan Liver Limited
53/83
How do you ensure that Mr. 0amesh in Canyakumari gets his Life$uoy soap and Mrs.
Culkarni in 9ammu gets to know how "ru coffee tastes even $efore she has $ought itR
ell, you need to have a cutting edge distri$ution network in place.
Hindustan LeverJs distri$ution network is recognised as one of its key strengths. Its focus
is not only to ena$le easy access to our $rands, $ut also to touch consumers with a three8
way convergence 8 of product availa$ility, $rand communication, and higher levels of
$rand eperience.
HLLJs products, manufactured across the country, are distri$uted through a network of
a$out F, redistri$ution stockists covering a$out one million retail outlets. #he
distri$ution network directly covers the entire ur$an population.
#he general trade comprises grocery stores, chemists, wholesale, kiosks and general
stores. Hindustan Lever services each with a tailor8made mi of services. #he emphasis is
e5ually on using stores for direct contact with consumers, as much as is possi$le through
in8store facilitators.
AT THE S,ERMARKETS
4elf8service stores and supermarkets are fast emerging in metros and large towns. #o
service modern retailing outlets in the metros, HLL has set up a full8scale salesorganisation, eclusively for this channel. #he $usiness system delivers ecellent
customer service, while driving growth for the company and the store. At the same time,
innovative marketing initiatives are taken to provide consumers with eperience of our
$rands at the store itself, through product tests and in8store sampling.
IN THE "I!!AGES
HLL has also revamped its sales organisation in the rural markets to fully meet the
emerging needs and increased purchasing power of the rural population. #he company
has $rought all markets with populations of $elow , under one rural sales
organisation. #he team comprises an eclusive sales force and eclusive redistri$ution
stockists, under the charge of dedicated managers. #he team focuses on $uilding superior
availa$ility, while ena$ling $rand $uilding in the deepest interiors. HLLJs distri$ution
-
8/21/2019 Hindustan Liver Limited
54/83
network in rural India already directly covers a$out , villages, reaching a$out +
million consumers, through a$out ? su$8stockists.
HARNESSING INFORMATION TECHNO!OGY
An I#8powered system has $een implemented to supply stocks to redistri$ution stockists
on a continuous replenishment $asis. #he o$jective is to catalyse HLLJs growth $y
ensuring that the right product is availa$le at the right place in right 5uantities, in the
most cost8effective manner. (or this, stockists have $een connected with the company
through an Internet8$ased network, called 047et, for online interaction on orders,
despatches, information sharing and monitoring. 04 7et covers a$out BK of the
companyJs turnover. #oday, the sales system gets to know every day what HLL stockists
have sold to almost a million outlets across the country. 04 7et is part of roject Leap,
HLLJs end8to8end supply chain, which also includes a $ack8end system connecting
suppliers, all company sites and stretching right upto stockists.
,IONEERING NE7 CHANNE!S
Hindustan Lever is simultaneously creating new channels, designed on the same principle
of holistic contact with consumers.
roject 4hakti, HLLJs partnership with 4elf Help *roups of rural women, is $ecoming an
etended arm of the companyJs operation in rural hinterlands. 4tarted in +1, roject
4hakti has already $een etended to a$out , villages in 1+ states 8 Andhra radesh,
Carnataka, *ujarat, Madhya radesh, #amil 7adu, )hattisgarh, =ttar radesh, !rissa,
unja$, 0ajasthan, Maharashtra and est "engal. #he respective state governments and
several 7*!s are actively involved in the initiative. #he 4H*s have chosen to partner
with HLL as a $usiness venture, armed with training from HLL and support from
government agencies concerned and 7*!s.
Hindustan Lever 7etwork %HL7& is the companyJs arm in the Direct 4elling channel, one
of the fastest growing in India today. It already has a$out ;. lakh consultants 8 all
independent entrepreneurs, trained and guided $y HL7Js epert managers. HL7 has
already spread to over 1 towns and cities, covering BK of the ur$an population,
-
8/21/2019 Hindustan Liver Limited
55/83
$acked $y /+ offices and +/ service centres across the country. It presents a range of
customised offerings in Home - ersonal )are and (oods.
!ut8of8Home consumption of products and services is a growing opportunity in India, as
elsewhere in the world. Hindustan Lever is already the largest player in the hot $everages
out8of8home segment, with over 1 tea and coffee vending points. #he company is
epanding the network aggressively, in the education, entertainment, leisure and travel
segments. HLLJs allaince with epsi will significantly strengthen this channel.
Health - "eauty 4ervices are Hindustan LeverJs simultaneous foray to meet the
increasing consumer need for such products and services. Lakme 4alons provide
specialised $eauty services and solutions, under the recognised authority of the Lakme
$rand. #he Ayush #herapy )entres provide easy access to authentic Ayurvedic treatments
and products.
Hindustan Lever, which once pioneered distri$ution in India, is today reinventing
distri$ution 8 creating new channels, and redefining the way current channels are
serviced. In the process it is converging product availa$ility, with $rand communication
and $rand eperience.
NO"E! ,RODCT NE7 ,ROCESS
Hindustan LeverJs mission is to meet everyday needs for nutrition, hygiene, and personal
care, with $rands that help people feel good, look good and get more out of life. HLLJs
research - development $ase, one of the largest in Indian industry, helps achieve this
mission, with novel products and new processes. #he company has over ;B patents,
demonstrating its leading edge in consumer8relevant 0-D.
#he Hindustan Lever 0esearch )entre %HL0)&, with facilities in Mum$ai and "angalore,
and glo$al technology centres in India have over + highly 5ualified scientists and
technologists, many with post8doctoral eperience ac5uired in the =4 and 6urope. 4et up
in 1@B, HL0)Js aim is to develop new products and processes, improving $enefits and
5uality of eisting products, and optimal use of resources.
-
8/21/2019 Hindustan Liver Limited
56/83
Major innovations have taken place, down the decades, in every category in which HLL
is present. (rom Home )are to ersonal care, "everages to (oods.
"etter cleaning, lesser water consumption
)onsider for eample, HLLJs development of a water8saving technology for its
detergents. !ne of the most severe pro$lems that India faces today is shortage of water.
ater scarcity affects one in every three Indians. In a typical Indian home, at least +K of
the water consumed goes $ehind washing of clothes. HLL decided that it would $e of
immense $enefit to an Indian household, if a technology could $e developed, which
would help reduce water consumed in washing of clothes. HLLJs scientists have
innovated a path8$reaking technology 8 it reduces water consumption and time taken for
rinsing $y K. #he technology has already $een introduced.
orldJs most advanced water purifier
eople in cities and towns spend enormous amounts, either in fuel or devices, to ensure
safe drinking water. HLLJs scientists have developed a $reakthrough device, called
ureit, which purifies water as safe as $oiled water, providing 1K protection from all
water8$orne diseases2 it also removes pesticides that may $e present in drinking water. Its
operation does not re5uire electricity, running tap water and plum$ing or epensive
maintenance. It thus provides water at a cost of just 0e.1 for every si litres 8 or less than
+ paise a litre.
Iodine In 4alt 8 the vital ingredient
Iodine, it is well8known, is important for the mental development of young children.
Iodised salt is a well8accepted mode of ensuring appropriate iodine intake.
-
8/21/2019 Hindustan Liver Limited
57/83
HLL has e5ually developed new processes.
In8house machine development
#he company has the capa$ility to design and manufacture machines in8house. #his
ena$les the company to set up plants at half the cost of others. 4uch technological
developments have also led to significant improvement in productivity.
6nergy conservation
In the past, one of the most significant $reakthroughs of HLLJs research initiative has
$een the development of a technology to use non8conventional forest seed oils for soap8
making which, since the 1@Fs, has helped save around 1.+ $illion in foreign echange.
HLL had received the *overnment of IndiaJs prestigious award for import su$stitution.
Development of 4tructurant #echnology for soap manufacturing also helped save costly
conventional oils without any compromise on product performance and 5uality. #he latest
technology to produce Distilled (atty Acid for soap making and the resultant plant
capacity epansion has drastically $rought down specific energy consumption while
improving distillation yields. #he evolution of continuous soap processing technology
has also reduced energy consumption.
HLL $elieves that technology is critical to delight consumers. )reative application of
technology has made Hindustan Lever successful in launching products and services,
which raise the 5uality of life.
-
8/21/2019 Hindustan Liver Limited
58/83
HE!,ING HANDSB
HLL )!MMI#4 0s. B )0!064 (!0 IMM6DIA#6 06LI6(, 06HA"ILI#A#I!7 #!
#4=7AMI8HI# )!MM=7I#I64
M=M"AI, 9anuary F, +> Hindustan Lever Limited %HLL& today announced to
commit, a total outlay of 0s.B crores for immediate relief and helping people to
reha$ilitate themselves so that they can resume their livelihood, in the tsunami8hit areas
of ondicherry, #amil 7adu and Cerala. !f this, 0s. crores %a$solute value terms& is
$eing utili3ed for distri$ution of the )ompanyJs nutritional - personal hygiene products
for immediate relief to the needy. Another 0s.; crores will $e raised partly $y
contri$utions from company employees and the $alance contri$ution from the )ompany
to $e used in colla$oration with 7*!s working with the community to provide the
people, nota$ly fishermen, with means of livelihood and help them $ack on their feet.
4ince Decem$er +?, employees of HLL factories and offices in ondicherry, #amil 7adu
and Cerala have $een providing necessary relief to the tsunami8hit people. #he relief
operations include, distri$ution of $read and $iscuits to over + families in
ondicherry, 1+, cooked meals for families in )hennai, 7agapattinam, )uddalore and
Andamans. !ver 1+, dry relief packs, comprising of )ompanyJs dry rations and
personal hygiene products have already $een distri$uted.
HLLJs employees are donating a dayJs salary, matched e5ually $y the )ompany for
eclusive use in reha$ilitation.
#he $iggest concern is, that people fishermen have lost their means of livelihood. HLL
plans to focus its reha$ilitation efforts to restore their means of livelihood so that the localcommunities can 5uickly get $ack to their lives at the earliest.
HLL has always $een a front runner in its call for national duty and caring for the
community. Its employees not only donate generously, $ut volunteer to take part in relief
operations $y committing their time and physical effort. #his is in line with our corporate
value of NcareO and our )40 mission which has $ecome an integral part in our way of
doing $usiness.
-
8/21/2019 Hindustan Liver Limited
59/83
6arlier during the *ujarat earth5uake, HLL had adopted and reconstructed a new village,
-
8/21/2019 Hindustan Liver Limited
60/83
!ver the years, HLL has opened schools for challenged children with a sharper o$jective
of supporting families of such children, helping the children $ecome self8reliant $y
learning appropriate skills to $e productive mem$ers of the household.
ANKRBIn 1@@;, HLLJs Doom Dooma lantation Division set up Ankur, a centre for special
education of challenged children. #he centre takes care of children with challenges, aged
$etween and 1 years. Ankur provides educational, vocational and recreational
activities to over ; children with a range of challenges, including sight or hearing
impairment, polio related disa$ilities, cere$ral palsy and severe learning difficulties.
#hese physically and mentally challenged children are taught skills, such as cookery,
painting, em$roidery, $am$oo crafts, weaving, stitching, etc depending on their aptitudes.
#he centre has reha$ilitated 1 children, including self8employment for ? children $y
providing them with shops, and ; girls have $een provided employment as creche
attendants. It has also moved to normal schools 1B children. 4ince inception it has
covered a$out B children. Ankur received the Lawrie *roup orldaware Award for
4ocial rogress in 1@@@ from H0H rincess 0oyal in London.
KA,,AGAMB
6ncouraged $y AnkurJs success, Cappagam %shelter&, the second centre for specialeducation of challenged children, was set up in 1@@B on HLL lantations in 4outh India.
It has 1F children. #he focus of Cappagam is the same as that of Ankur. #he centre has 1F
children, $eing taught self8help skills, useful vocational activities like making of paper
covers, greeting cards, wrapping papers, fancy stationery, napkins, $rooms made out of
coconut leaves, candles, and also some home care products. A$out 1+ of the children
have $ecome relatively self8reliant $y earning through crafts learnt at the centre. 4ince
inception, it has covered a$out +B children.
AN/AGAMB
-
8/21/2019 Hindustan Liver Limited
61/83
inception. HLL is wholeheartedly involved with all four centres and will continue to $e
involved in the future.
-
8/21/2019 Hindustan Liver Limited
62/83
HINDSTAN !E"ER !IMITED DECEM/ER ARTER : #his is in line with our ortfolio
rationali3ation strategy, while at the same time creating value for our shareholders.
-
8/21/2019 Hindustan Liver Limited
66/83
Am$it )orporate (inance acted as Marico's advisors in this transaction.
-
8/21/2019 Hindustan Liver Limited
67/83
COM,ETITORS
The ,rocter Ga2$1e Co2pa%0 Co2pa%0 ,rofi1e
#he rocter - *am$le )ompany %-*& is a $rand $ehemoth. #he worldJs T1 maker of
household products courts market share and $illion8dollar $rands. -*Js products fall into three
categories> glo$al $eauty care2 glo$al health, $a$y, and family care2 and glo$al household care. It
also makes pet food and water filters and produces soap operas %As the orld #urns&. More than
+ of -*Js $rands are $illion8dollar sellers %including Actonel, Alwayshisper, "ounty,
)harmin, )rest, DownyLenor, (olgers, Iams, !lay, ampers, antene, ringles, #ide, and
ella&. Ac5uisitive -* $ought )lairol in +1 and a majority of ella in +;. Its purchase of
*illette in late + was its $iggest $uy in company history.Fi%a%cia1 Hi.h1i.hts(iscal 9une0evenue %+&> ?F/1. M0evenue *rowth %1 yr&> 1./K6mployees %+&> 11,6mployee *rowth %1 yr&> .K
-
8/21/2019 Hindustan Liver Limited
68/83
DATA ANA!YSIS
FMCG MARKETS
4lowdown in growth - then + years of decline
-
8/21/2019 Hindustan Liver Limited
69/83
FMCG MARKETS
+/ 8 0evival after + years of decline
FMCG Mar'et H!! Cate.ories)Gro&thJ
-1.1 -2. -2.!
".!2."
#.1
-$
-2"
2
$
#!
"2 "% &1 '"$&2 '"$&% '"$&$ '"$
-
8/21/2019 Hindustan Liver Limited
70/83
IN"ESTMENTS /EHIND /RANDS
STE, , IN H,C A, S,ENDS
-
8/21/2019 Hindustan Liver Limited
71/83
CRRENT ,ERFORMANCE
H,C( GRO7TH
"o1)2eGro&thJSa1esGro&thJ
-
8/21/2019 Hindustan Liver Limited
72/83
C)rre%t ,erfor2a%ce
(a$ric 7ash
Actions takenrice reduction
Additional investment
in 5uality
Higher A - spends
"rand repositioning
-
8/21/2019 Hindustan Liver Limited
73/83
Actio%s ta'e%
rice reduction
Additional investment
in 5uality
Higher
A - spends
"rand
repositioning
-
8/21/2019 Hindustan Liver Limited
74/83
:? ( Fi%a%cia1 Hi.h1i.hts
P Co%ti%)i%. sa1es f1at
H,C
H) grows ?K in :olumes2 growth across categories
ricing actions lead to +K value growth
:alue growth momentum picking up
:olume market shares gains in Laundry and 4hampoo
Foods
4trong growth in "rooke"ond, Lipton and Instant )offee
Decline $y FK impacted largely due to planned discontinuation2 stock reduction
and one8 offs
POperati%. ,rofits ,/ITL dec1i%es :J
Co2petiti*e strate.0 i% !a)%dr0 Hair
Additio%a1 A, spe%ds i% H,C
Hi.her foods 1osses
-
8/21/2019 Hindustan Liver Limited
75/83
-
8/21/2019 Hindustan Liver Limited
76/83
CONC!SION
#he Indian (M)* market currently appears to $e at a crossroads, and HLL are
attempting to change customer perceptions of their $rands and where specific $uying
motivations appear to $e replacing generalities.
#his meanwhile, is 5uite unlike the west where $uyers consider aesthetics, comfort and
safety, not necessarily in that order, $efore finalising a purchase. NIt's smarter to think
a$out emotions and attitudes, if marketers are to do a $etter jo$ of marrying what a HLL
offers to the consumer's image of the offerings. Another important outcome of the
research is the $elieva$ility of the claims. Most of the claims are realistic and easy to
understand. Most of the people don't understand the 5uality claims $y HLL.
#he mindset of the Indian consumer is such that he is delighted if he $uys a pen a little
cheaper than his neigh$our. #hings are, however, slowly changing and customers at the
upper end of the market are now ready to pay more for more. I hope that this approach
will soon enter the new era, may$e not with the same intensity .
N4uccess will largely $e determined to the etent a company can differentiate
itself in terms of intangi$les that go with a roductO. #hus, success could well hinge onthe $est of $undle of services that HLL provides.HLL grew from 3ero to the +,+?B
Million , mark and the num$er !ne (M)* company in India this year. Looking at the
present scenario it can $e said that though there is lot of competition in the market $ut
HLL is picking up well. #he landmark achievement comes in F/ years in India after
clinching its first overseas sale.
-
8/21/2019 Hindustan Liver Limited
77/83
SGGESTIONS
Ke0 Attri$)te co2po%e%tsB
:alue for money and )ustomer )are
!perational attri$utes.
hysical attri$utes.
"rand Image.
)ustomer 4pecific Details.
In any correspondence with the customers the message should $e sent in these
components only to have the maimum $enefit from the advertisement. Also these
components should $e dealt with independently. #he advertisements should speak only of
the $elieva$le concepts rather than glorifying the pretentious ones. #he $asic need of the
customer need to $e addressed which is actually not much epensive and $etter 5uality.
HLL sales growth in june +/ was decreased due to the pro$lem with promotion and
pricing. Although $eing the most competitive product on the $asis of the Market
!perating rice %M!&, the shampoos are still not selling much. #his is perhaps due to
the $argaining stress on the customer and the weak push given $y the dealer to the
particular item, when actually it should $e sold like a high volume product.
Another serious suggestion is that HLL must give good attention to their all the products
rice and all are not getting much attention. #he dealers don't provide much support to the
customers in making them understand the real Guality $ehind them. 6ither, the technical
details should $e presented in a clearer manner or the dealers need to $e educated
properly.
-
8/21/2019 Hindustan Liver Limited
78/83
-
8/21/2019 Hindustan Liver Limited
79/83
!IMITATIONS
6verything in this world has its own advantages and disadvantages which shows Qnothing
is perfect'.
(ollowing are the pro$lems faced $ut it's a part of game>
1. #IM6 )!74=MI7*> It is very much o$vious that it is a time consuming process. 4o
much time has $een spent for this purpose.
+. L! A0#I)IA#I!7> !$viously many respondents have not participated in this
and have also created some pro$lems which simply shows that they were not
interested.
;. "IA47644> 4ometimes interested customers were also $iased so the collected figures
involve $oth positive and negative figures.
/. It does not cover all the aspects of the company.
. 4="96)#I:6> #his project only tells you what it is all a$out.
-
8/21/2019 Hindustan Liver Limited
80/83
A,,ENDI8
C)sto2er S)r*e0 )estio%%aire
7ame
Age
Address
G1. How many mem$ers are there in your familyR
G+. Have you ever heard of HLL %Hindustan Lever Limited&R
-
8/21/2019 Hindustan Liver Limited
81/83
G?. hich $rand do you use in the following categories >
ersonal ash
Lu UUUUUUUUUU "ree3e UUUUUUUUUUU
Dove UUUUUUUUUU !thers UUUUUUUUUUU
Laundary
4urf 6cel UUUUUUUUU 0in UUUUUUUUUU
heel !thers
4kin )are
(air-Lovely UUUUUUUU ond's UUUUUUUU
4unslik 7aturals UUUUUUUU !thers UUUUUUUU
!ral )are
epsodent UUUUUUUU )lose8up UUUUUUUU
!thers UUUUUUUU
Deodorants
Ae UUUUUUUU Lakme UUUUUUUU
0eona UUUUUUUU
)olour )osmetics
Lakme UUUUUUUU !thers UUUUUUUU
-
8/21/2019 Hindustan Liver Limited
82/83
GF. hat 0ecommendations or suggestions would you like to give for
improvement of our productsR
-
8/21/2019 Hindustan Liver Limited
83/83
/I/!IOGRA,HY
1. #he #imes of India and Hindustan #imes
+. #he 6conomic #imes
;. )ompany's $rochure
/. www.google.co.in
http://www.google.co.in/http://www.google.co.in/