hindusthan unilever ltd

8/12/2019 Hindusthan Unilever Ltd

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HISTORYIn the summer of 1888, visitors to the Kolkata harbour noticed crates full ofSunlight soap bars, embossed with the words "Made in England by LeverBrothers". With it, began an era of marketing branded Fast Moving ConsumerGoods (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 brandcame to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan VanaspatiManufacturing Company, followed by Lever Brothers India Limited (1933) andUnited Traders Limited (1935). These three companies merged to form HULin November 1956; HUL offered 10% of its equity to the Indian public, beingthe first among the foreign subsidiaries to do so. Unilever now holds 52.10%equity in the company. The rest of the shareholding is distributed amongabout 360,675 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, BrookeBond & Co. India Limited was formed. Brooke Bond joined the Unilever fold

in 1984 through an international acquisition. The erstwhile Lipton's links withIndia were forged in 1898. Unilever acquired Lipton in 1972, and in 1977


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HISTORY CONTD-

Pond's (India) Limited had been present in India since 1947.It joined the Unilever fold through an international acquisitionof Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded tothe stimulus of economic growth. The growth process hasbeen accompanied by judicious diversification, always in linewith Indian opinions and aspirations.

The liberalisation of the Indian economy, started in 1991,clearly marked an inflexion in HUL's and the Group's growthcurve. Removal of the regulatory framework allowed thecompany to explore every single product and opportunity

segment, without any constraints on production capacity.


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CONTD-Simultaneously, deregulation permitted alliances, acquisitionsand mergers. In one of the most visible and talked aboutevents of India's corporate history, the erstwhile Tata Oil MillsCompany (TOMCO) merged with HUL, effective from April 1,1993. In 1996, HUL and yet another Tata company, LakmeLimited, formed a 50:50 joint venture, Lakme Unilever

Limited, to market Lakme's market-leading cosmetics andother appropriate products of both the companies.Subsequently in 1998, Lakme Limited sold its brands to HULand divested its 50% stake in the joint venture to thecompany.


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CONTD-

HUL formed a 50:50 joint venture with the US-based Kimberly ClarkCorporation in 1994, Kimberly-Clark Lever Ltd, which markets HuggiesDiapers and Kotex Sanitary Pads. HUL has also set up a subsidiary inNepal, Unilever Nepal Limited (UNL), and its factory represents the largestmanufacturing investment in the Himalayan kingdom. The UNL factorymanufactures HUL's products like Soaps, Detergents and Personal Productsboth for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions andalliances on the Foods and Beverages front. In 1992, the erstwhile BrookeBond acquired Kothari General Foods, with significant interests in InstantCoffee. In 1993, it acquired the Kissan business from the UB Group and theDollops Ice-cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, twoplantation companies of Unilever, were merged with Brooke Bond. Then in1994, Brooke Bond India and Lipton India merged to form Brooke BondLipton India Limited (BBLIL), enabling greater focus and ensuring synergy inthe traditional Beverages business. 1994 witnessed BBLIL launching theWall's range of Frozen Desserts. By the end of the year, the companyentered into a strategic alliance with the Kwality Ice-cream Group families

and in 1995 the Milk food 100% Ice-cream marketing and distribution rightstoo were acquired ..


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CONTD-In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeatbusiness of the Amalgam Group of Companies, a leader in value addedMarine 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 smallvillages populated by less than 5000 individuals. It is a unique win-wininitiative that catalyses rural affluence even as it benefits business.Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000villages across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre categorywith the Ayush product range and Ayush Therapy Centres. HindustanUnilever Network, Direct to home business was launched in 2003 and thiswas followed by the launch of Pureit water purifier in 2004.

In 2007, the Company name was formally changed to Hindustan UnileverLimited after receiving the approval of share holders during the 74th AGM on18 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.2,000crore sales milestone in 2008.


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CONTD-In March, 2012 HULs state of the art Learning Centre wasinaugurated 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


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VISIONUnilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair anda brilliant smile, keeping their homes fresh and clean, or by enjoying agreat cup of tea, satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for thecompany where we want to go and how we are going to get there:

We work to create a better future every dayWe help people feel good, look good and get more out of life withbrands and services that are good for them and good for others.We will inspire people to take small everyday actions that can add up to

a big difference for the world.We will develop new ways of doing business with the aim of doublingthe size of our company while reducing our environmental impact.We've always believed in the power of our brands to improve the qualityof peoples lives and in doing the right thing. As our business grows, sodo our responsibilities. We recognise that global challenges such asclimate change concern us all. Considering the wider impact of our

actions is embedded in our values and is a fundamental part of who weare.


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PRINCIPLESOur corporate purpose states that to succeed requires "the highest standards ofcorporate behaviour towards everyone we work with, the communities we touch, andthe environment on which we have an impact."

Always working with integrityConducting our operations with integrity and with respect for the many people,organisations and environments our business touches has always been at the heart ofour corporate responsibility.

Positive impactWe aim to make a positive impact in many ways: through our brands, our commercial

operations and relationships, through voluntary contributions, and through the variousother ways in which we engage with society.

Continuous commitmentWe're also committed to continuously improving the way we manage our environmentalimpacts and are working towards our longer-term goal of developing a sustainablebusiness.

Setting out our aspirationsOur corporate purpose sets out our aspirations in running our business. It's underpinnedby our code of business Principles which describes the operational standards thateveryone at Unilever follows, wherever they are in the world. The code also supportsour approach to governance and corporate responsibility.

Working with othersWe want to work with suppliers who have values similar to our own and work to thesame standards we do. Our Business partner code, aligned to our own Code ofbusiness principles, comprises ten principles covering business integrity andresponsibilities relating to employees, consumers and the environment .


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COMPANY STRUCTUREHindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)

company. It is present in Home & Personal Care and Foods & Beverages categories. HULhas over 16,500 employees, including over 1500 managers

The fundamental principle determining the organisation structure is to infuse speed andflexibility in decision-making and implementation, with empowered managers across thecompanys nationwide operations.

Board of DirectorsThe Board of Directors of the Company represents an optimum mix of professionalism,knowledge and experience. The total strength of the Board of Directors of the Company iseight Directors, comprising Non-Executive Chairman, three Executive Directors and fourNon-Executive Independent Directors.

Management CommitteeThe day-to-day management of affairs of the Company is vested with the ManagementCommittee which is subjected to the overall superintendence and control of the Board.


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LEADERSMr Nitin Paranjpe - CEO and Managing Director

Mr Nitin Paranjpe (49) joined the Company as a Management Trainee in1987.Mr R. Sridhar - Chief Financial OfficerMr Hemant Bakshi - Executive Director, Home & Personal Care

Ms Geetu Verma, Executive Director, Foods Mr Manish Tiwary - Executive Director, Sales and Customer DevelopmentMr Pradeep Banerjee - Executive Director, Supply ChainMs. Leena Nair - Executive Director, HRMr Dev Bajpai Executive Director, Legal and Company Secretary


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AWARDSIn 2012, HUL was recognised as one of the world's most innovative companies by Forbes. With a ranking ofnumber 6, it was the highest ranked FMCG company.Hindustan Unilever Limited (HUL) won the first prize at FICCI Water Awards 2012 under the category ofcommunity initiatives by industry for Gundar Basin Project, a water conservation initiative.Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards organized by the AdvertisingClub Bombay in September 2012.The company bagged four awards at the Spikes Asia Awards 2012, held in September. The awards includedone Grand Prix one Gold Award and two Silver Awards.HULs Chhindwara Unit won the National Safety Award for outstanding performance in Industrial Safety. Theseawards were instituted by the Union Ministry of Labour and Employment in 1965.HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds Most Reputedcompanies in 2007.

In July, 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and Safety Award for2012 in the FMCG category for its safety and health initiatives and continuous improvement on key metrics.Ponds Talcum Powders packaging innovation has bagged a Silver Award at the prestigious 24th DuPontGlobal Packaging Award, in May 2012.The brand was recognised for cost and waste reduction.In May 2012, HUL & Star Bazaar bagged the silver award for Creating Consumer Value through JointPromotional and Event Forecasting at the 13th ECR Efficient Consumer Response Asia Pacific Conference .


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AWARDSIn 2011, HUL was named the most innovative company in India by Forbes and ranked 6th in the top 10 list ofmost innovative companies in the world.

Hindustan Unilever Ltd received the National Award for Excellence in Corporate Governance 2011 of theInstitute of Company Secretaries of India (ICSI) for excellence in corporate governanceIn 2012, Hindustan Unilever emerged as the No. 1 employer of choice for B-School students who will graduatein 2012. In addition, HUL also retained the 'Dream Employer' status for the 3rd year runningHindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list, which was released byFortune India in partnership with the Hay Group. The company received the highest scores for endurance andfinancial soundnessHUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research Advisory.Seven HULbrands also featured in the list: Lux, Ponds, Dove, Lakme, Axe, Sunsilk and Pepsodent.HUL emerged as the top Dream Employer as well as the top company considered for application in the annualB-School Survey conducted by Nielsen in November 2010. This was the second successive year that HUL hasbeen rated as the top Dream Employer in India . HUL has also emerged as the top employer of choice amongthe top six Indian Institutes of Management (IIM C, A, B, L, K and I).HUL won three awards at the 'CNBC Awaaz Storyboard Consumer Awards in 2011 - Most RecommendedFMCG Company of the Year; Most Consumer Conscious Company of the Year and Digital Marketer of the Year.The company was felicitated in April 2010 for receiving the highest number of patents in the year 2009 at

Annual Intellectual Property Awards 2010.In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years byBusinessworld , one of Indias leading business magazines.[41] The rating was based on a compilation of themagazine's annual survey of Indias most reputed companies over the past 25 years. HUL is one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House bythe Government of India


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R & D AT HUL

The Hindustan Unilever Research Centre (HURC) was set up in 1967 inMumbai, and Unilever Research India in Bangalore in 1997. Staff at thesecentres developed many innovations in products and manufacturingprocesses. In 2006, the company's research facilities were brought together

at a single site in Bangalore


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BRANDS & PRODUCTS


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LOGO


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THANK YOU!

hindusthan unilever ltd

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