small actions, big difference
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TRANSCRIPT
Hindustan Unilever Limited
Presented By-
Bishnu Prasad Sharma 10DF004
Subhajit Bhattacharya 10DF005
Silvee Kamboj 10DF006
Brief Introduction of HULProductsMarket Shares in Different SegmentsConsumptive & Sustainable GrowthFavorable FactorsBright Future AheadConclusion
The journey began in 1888 India’s largest FMCG CompanyTouching the lives of two out of three
Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages
The company’s Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010)
Works to create a better future everyday
To inspire people to take small everyday actions that can add up to a big difference for the world
Trying to develop new ways of doing business to double the size of the company while reducing the environmental impact
Value creation for the shareholders
Operates through five segments – Soaps & detergents, Personal products, Beverages & Foods & Ice creams, Exports and Other operations
Six brands i.e. Wheel, Surf Excel, Lifebuoy, Lux, Brooke Bond, Fair & Lovely with net sales more than INR 1000 Crores
Together Personal Products and Soaps and detergents which constitutes the HPC sector contribute 71% of net sales and 82% of operating profit
Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona
Laundry:- Surf Excel, sun light, Rin ,Wheel & Ala bleech
Dishwasher :- Vim
Disinfectants:- Domex, cif
Foods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread
Ice-cream:- Kwality Wall's
Bewerages:- Tea:- Brooke bond, Lipton, taj mahal
Coffee:- Brooke bond ,Bru
Oral-Care:- Pepsodent and Close-up
Deo spray:- Axe and Rexona
Water Purifier:- Pureit
Ayurvedic Personal & health care:- Ayush
Soaps & Detergents
HUL commands 39% market share in this category
HUL is followed by 16% of P&G and 18% of Ghari brand detergent powder
Packaged Food Category
HUL has a market share of 60% in this category led by its Knorr brand
Branded Tea Segment
HUL commands 16-17% in this segment
Coming only second to Tata Global Beverages which occupies 20% market share
Toothpaste Segment
Colgate-Palmolive is the leader with 50% market share
HUL is second with around 28%Close-Up has 17% and Pepsodent
has 11% in this
HUL has displayed its ability to effect price hikes and avoid the impact of inflation in major segments
It boosts the positive outlook on the stock The recent moves to dispose its non core
assets has given it a short term upside According to the retail chains the
acceptability of the products of HUL is much more than any of its rivals
In the recent past HUL has initiated a price increase in soap portfolio
120 gm Lifebuoy – 6.7% hike 75 gm Liril – 5.2% hike 75 gm Dove – 3.3% hike 80 gm Pears – 3.8% hike plus Weight reduction on Lux from 110 gm to 100 gm
All these price increase has not played any deterrent role in the sales volume of the products
Growing markets responsibly
Ensuring sustainable practices in operations
Building a good reputation through responsible leadership
Monsoon is 4% higher than normal till September 2010
FMCG Companies will benefit from good harvesting that will cool down food inflation
The FMCG Sector has become more attractive after the global meltdown to the investors
HUL has not gone anywhere in terms of share price in the last ten years and given a CAGR return of 2.43% in that period
For the past one decade the return has not been exciting
In the present scenario HUL with its unique supply chain management and ability to penetrate deeper into the rural areas has given the company an edge over its competitors
The company is going to triple its outlets by 2012-13 to become the biggest rural player in the world
It has reported a topline growth of 7% for Q1FY11
Sales 17,674.10
Operating Profits 2,482.62 Financial Expenses 7.47 Depreciation 191.94 Adjusted PAT 2156.63 Equity Capital 218.21 Promoter Holding (%) 52.01 Inst. Holding (%) 29.6
Though HUL is not considered an Wealth Creator anymore but its share price staged a comeback in the last few quarters
The dividend yield of the company is 2.10 % at present
Looking at the business volume and market shares, in the present situation adding HUL to your portfolio with a long term perspective is likely to provide it with stability