Work

Project

Project Work

WEbOD

PROJECT ON FMCG (FAST

MOVING CONSUMER
GOODS)

SidA
ton
Veuetable
deeo
moisture
Doe

RKPPY
nestvie
OOCk
 GAIN

KOLESTON
DAWN
founty
GOODS

ActoNe
Downy

EHEALTH
DURACELL
Toy

CONSUMER

de alwajs
2XvRA
FMCG OLAY
OLAY
regenerist
A
MOVING
CreS&PRHEABTM
Pampers

Strong
Oral
Ultra

FAST Charmin

Fusion
 INTRODUCTION
Fast Moving Consumer Goods (FMCG) r Consumer Packaged G0ods (CPG) are
that aresold quicklyand
products
low cost. Examples include non-durable goodssuch
at relatively

drinks, toiletries and

grocery items. Though the absolute profit made on
assoft
s products FMCG
small, they generally sellin
is relatively largequantities, so the cumulative profit on such products
can be substantial.
EMCG have a short shelf life, either as a of high consumer
result demandor because the
deteriorates rapidly.
product
The FMCG sectorin India isat present, thefourth
largest sector with a total market size in
USD 13 billion as of 2012. This sector
eNCeSSof is expected to grow to a USD 33 billion industry
2015.FMCG goods are all consunmable items that
one needs to buy at regular intervals. These
have a quick rate of consumption and a high return.
items

clobal Leaders in the FMCG segmentare:

Nestle, ITC, Hindustan Unilever Limited, Reckitt Benckiser,Procter &
Gamble, Coca-cola,
General Mills, Pepsi, Gillette, etc.

Catbus

Guava ived Chocolat

DAIRYMILK
F
orinking
COVUT OL

PEST ANALYSIS (FMCG SECTOR)

Pest Analysis (FMCG Sector)

1. GST Regime 1. GDP rate increasealong

2. Transportationand infrastructuredevelopment 2. Annual profit of this sector is

in rural areas helps in distribution network. $14.72 billion.

3. Restrictions in import policies. 3. Indian FMCG recorded 16% Sales

Growth in last Fiscal.
4. Helps for agricultural sector.
4. It isthe 4th largest sector of India.

1. Rural employment
1. Technology hasbeen simplified,
2. Volume-driven growth in rural market
available in the industry.
O. Major young population can increaserevenue
2. Foreign players help in high
4. The Indian culture, social and lifestyles are technological development.
changing drastically
 FMCGProducts

SolateP
Colgatersot

EIC

3ROSES

NOUCAY

SWOT ANALYSIS (FMCG SECTOR)

S-Strengths

1. Low operational cost

2. Established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector

W-Weaknesses
1. Lower scopeof investingin
technology and achieving economies of scale
2. Low export level

3. Counterfoil Products

0-0pportunities

1. Untapped Rural Market

 Project Work 381

Levels
Income
Rising
2 Market
Domestic
3.
Large
Potential
4.
Export
goodsspending
High consumer

FThreats
, Removal of import restrictions

, Slowdown in rural demands

Tax and regulatorystructure

COMPAN Y PROFILE...

HUL
Hindustan Unilever
Linted

I AMUL Amul
The Taste of India

I DABUR

Dabur Life!
celebrate
382 Project Work

LOAD)
Surf
TOP

Surf

Surf'

excel
LOAD

Sur

FRONT
Surtexcel
Sunlight,
LIMITED

Sunlight

Sur

Uomekx
UNILEVER

Gold
wheel
Active
whee

HINDUSTAN

RID
INTRODUCTIONUnilever ILtd. (HUL)is Indias largest consumer goods company based in
Hindustan
Mumbai, Maharashtra. It is owned by the British-dutch company, Unilever which controls

s2% majority stake in HUL. Its products include goods, beverages cleaning agents and

nersonal care products. It isa company witha heritage of over 75 yearsin India and touches
he lives of two out of three Indians. HUL WOrks to create a better future everyday and

are
people feel good, look good and get more out of life with brand and services
that
helps
for others.
good for them as well as good

Snapshot.
..
Type: Public Company

BSE: HUL

E Industry: FMCG
Date of Establishment: 1933

Headquarters: Mumbai,India

Corporate Address: Unilever House B.D,, Sawant

Marg, Chakala, Andheri East, Mumbai - 400099,
Maharashtra.

E Business Operation: Household & Personal Products

Key People: Harish Manwani(Chairman) Nitin Paranjpe (CEO & Managing Director)

Revenue: 18,220.27 crore (US$ 3.96 billion)

(2009-2010)

Employees: More than 15,000 Direct Employees including more than 1400 managers.
E Parentage Company: Unilever PLC.

E Financials: Total Income <223977.4 Million (Year ending March 12)

E Company Secretary: Dev Bajpai

Formation

HUL was formed in 1933 as Lever Brothers India Ltd. and came into being in 1956 as
Findustan Lever Ltd. through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and

Ed Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over
o,D00 employees and contributes to indirect employment of over
65,000 people. The company
tenamedin June 2007 as "Hindustan Unilever Ltd" Lever Brother startedits actual
in
operations
India in
the Summer of 1888, when crates full of sunlight soap bars, embossed with the words,
"Madein
England by Lever Brothers" were shipped to the Kolkata harbour and it began an era
of
marketing branded Fast Moving Consumer Goods (FMCG) HULs distributioncovers over
2 million
retail outlets
across India directly and its products are available in over 6.4 million
outlets
inthe
country. As per market research data, two out of three Indians use HUL products.
 384
Project Work

Brands...
Home & Personal Care
Under this it has brands that caters to every income segment of the population.
Inthis
segment it has brands like: Lakme, Axe, Pepsodent and many more.
Personal Wash:

Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears

Laundry:
Surf Excel, Rin, Wheel
Skin Care:
Fair & Lovely, Pond's, Vaseline
Oral Care:

Pepsodent,Close-Up.
Colour Cosmetics:
Lakme
Tea:

Brooke Bond, Bru

Food:
Kissan, Knoor,
Annapurna
Ice Cream:

KwalityWall's
Hair Care:
Sunsilk Naturals, Clinic Plus

AvurVedic Personal & Health Care:

Ayush

FINANCIAL STATEMENTS...
Hindustan Unilever Ltd. Research Center
Back to Company Page
Results

Statement
More

Rcrore)
Balance Sheet
Particulars
Mar '12 Mar '11
Sources of Funds Mar '10 Mar '9 Dec. '07

Owners' fund: Equity Share

Capital 216.15 215.95 218.17 217.75
Share application 217.99
money
Preference share capital

Reserve & Surplus

3,296.11
Loan Funds 2,417.30 2,364.68 1,842.85 1,220.82

Secured Loans

Unsecured Loans 25.52

144.65
Total 63.01
277.30
3,512.26
2,633.25 2,582.85 2,482.79 1,527.10
 Project Work 385

of ftunds
Uses
Assets
Fxed 3,574.67
3,759.62
bloCk 3,58196
Gross reserve 0.67 2,881.73
0.67 2,669.08
revaluation 0.67
Less.
depreciation 1,416.88 0.67
1,590,46 0.67
caccumulated 1,419.85
Less.
2,157.12 1,274.95
2,168,49 1,146.57
block 2,161,44
Net 1,606.11
210,89
work-in-progress
299.08 1,521.84
Capital 273.96
2,438.21 472.07
1,260.68 185.64
investments 1,264,08
332.62
Assets 1,440.81
Net Current

Assets,
Loans and Advances 6,340.40
Qurrent 6,494.19
5,818.89
LLiabilities & Provisions 6,040.04
Current 7,634.36 7,589.19 3,681.12
Less: 6,935.52
5,968.06
TotelNet
CurrentAssets -1,293.96 5,302.30
-1,095.00
-1,116.63
Expenses not written -71.98
Mispellaneous -1,621.18

Total 3,512.26
2,633.25
2,582.85 2,482.79
Notes 1,527.10

R0ok value of unquoted investments 156.51 108.93 466.46

arket value of quoted investments 317.30 1,364.36
2,469.28 1,279.49 953.58 71.09
Contingent liabilities 287.83
1,009.23 836.96 468.49 417.26
Number of equity shares outstanding 494 46
21615.12 21594.72
Lacs)
21816.87 21798.76 21774.63

Cash Flow
Particulars
Mar'12 Mar'11 Mar '10 Mar '9 Dec. '07
Profit before tax
3,350.16 2,730.18 2,707.07 3,025.12
Net 2,184.53
cashflow-operatingactivity 2,869.56 1,890.57 3,432.37 2,028.65 1,680.11
Net cash used in investing activity -452.45 134.99 -1,137.46 878.19 1,023. 76
liet cash used in financial
activity -1,722.32 -2, 277.75 -2,180.32 -1,330.36
liet -2,921.34
inc/decin cash andequivalent 694.79 -252.19 114.59 1,576.49 -217.47
Cash and equivalent
begin of year 228.15 1,892.20 1,777.62 200.86 418.33
Cash and equivalent
end of year 922.94 1,640.01 1,892.21 1,777.35 200.86

Profit and Loss AcCount

Particulars
Mar'12 Mar'11 Mar '10 Mar '09 Dec. '07
Income:
Operating Income 22,118.64 19,689.91 17,769.12 20,504.28 13,880.56
xpenses: Material
consumed 11,832.45 10,199.25 8,984.50 10,945.71 7,380.72

Manufacturing 922.37 825.99 498.74 598.71 401.99

expenses
Personnel 767.81
expenses 1,095.54 961.27 936.30 1,152.12

Selling
expenses 3,811.55 3,262.12 3,277.74 2,160.38
3,705.28

Administrative 1,289.76 1,565.05 L,092.23

1,237.80 1,227.36
expenses
Cxpenses
capitalised
Cost of
sales 18,793.44 17,025.42 14,971.42 17,539.33 11,804. 13
 386 Project Work

2,664.49 2,797.70 2,964.95

Operating Profit 3,325.20 2,076.43

254.81 144.36 174.94

Other recurring income 162.35 180.42

3,487.55 2,919.30 2,942.06 3,139.89

Adjusted PBDIT 2.256.84

1.24 0.24 6.98 25.32

Financial expenses 25.50
218.25 220.83 184.03 195.30
Depreciation 138.36

Other write offs

PBT 3,268.06 2,698.23 2,751.05 2,919.26

Adjusted 2.092.99

785.28 573.87 648.36 572.94

Tax charges 417.14

Adjusted PAT 2,482.78 2,124.36 2,102.69 2,346.32 1,675.85

Non-recurring items 200.97 184.67 55.37 101.60 247.95

Other non-cash adjustments 7.65 -3.06 43.97 48.53 1.67

Reported net profit 2,691.40 2,305.97 2,202.03 2,496.45 1,925.47

Earnings before appropriation 3,927.00 3,1 08.16 2,678.36 2,693.95 2,729.12

Equity dividend 1,620.94 1,410.60 1,417.94 1,634.51 1,976.12

Preference dividend

Dividend Tax 262.96 231.36 238.03 277.78 355.50

Retained earnings 2,043.10 1,466.20 1,022.39 781.66 397.50

Share Holding
Share holding pattern as on: 31/12/2012 30/09/2012 30/06/2012

Face value 1.00 1.00 1.00

No. of shares % Holding No. of shares % Holding No. of % Holding

shares

No. of Shares % Holding No. of Shares % Holding No. of Shares % Holding

Foreign Promoters 1134849460 52.49 1134851276 52.49 1134849460 52.50

Sub total 1134849460 52.49 1134851276 52.49 1134849460 52.50

Non Promoter's Holding

Institutional Investors

Banks Fin. Inst. and 153387475 7.09 158684997 7.34 172460789 7.98
Insurance

Fll's 468735513 21.68 456414944 21.11 433723325 20.06

Sub total 652638979 30.19 651614830 30.14 647273957 29.94

Other Investors

Private Corporate Bodies 64321678 2.98 64749539 3.08

3.00 665113662
NRI's/0CB's/Foreign Other 7213650 0.33 7176356 0.33 7227954 0.33
 roject VorK

255971 0.01 255971 0.01 270971 0.01

20 20
pirectors/Emplovees 20
Covt 1919106 0.09 2810782 0.13 2275120 0.11

Others 73685429 341 74964255 3.47 76259314 3.53

total
Sub 300760738 13.91 300459324 13.90 303382g90 1403
public
General 2161934606 100.00 2161889685 100.00 2161765721 10000
total
Grend

Graphical Presentation

Market Capitalisation
Company's Stake Holding and HUL Share Price

50,000

40,000
Unilever
48% 52% 30,0004
R
Crores)
HUL
20,000

10,000

Market Capitalisation as at vear and Crores)

HUL share Price on BSE

Gross Sales (R Crores) EBIT as % of Sales

22500 20.0 -

20000
16.0
17500

15000
12.0
12500

10000 8.04
7500
5000 4.0

2500
 Comparison on the Basis of Sales

VOLUME OF PRODUCTION

40
35
30
25
20 VOLUME
INMILLION
15 TONNES
10

HUL AMUL DABUR

Graphical Presentation Milestones Achieved

Five of HULs leading brands - Lux,

Dove, Pears,Clinic Plus and Sunsilk

-won the Reader's Digest Trusted

Brand 2008 Award.

Four HUL brands featured in the

top 10 list of the Economic Times

Brand Equity's Most Trusted

Brands 2008 survey.

HUL was awarded the Bombay

Chamber Civic Award 2007

in the category of sustainable

environmental initiatives.

HUL was selectedas the top Indian

company in the FMCG sector for

the Dun and Bradstreet-Annerican
Express Corporate Awards 2007.
 Comparison of Top three Players in India

SALES SALES
IN CRORE

14000

12000

10000

8000

6000

4000

2000

HUL AMUL DABUR

Hindustan Unilever Limited

Revenue Expenditure

20.529

17.929

15.329

12.729

10.129
2005 2006 2007 2008 -2009 2009- 2010
 390
Project VWork

Hindustan Unilever Limited

Interest EBIDTA PAT

3.007

2.257

1.507

757

7
2005 2006 2007 2008-2009 2009 - 2010

HUL Price chart sinc e 1 January, 2010 (adjusted for bonus)

350

300

250

200
150

100

50

an-0z
3-Jan-01 3-Jan-o2 3-Jan-03 3-Jan-o4 3Jan-06 Jan-10
3-Jan-0s 3-Jan-08 3-Jan-09

STAFF
S.No. Name Designation

Harish Manwani Chairman

2 Dev Bajpai Company Secretary

3 Sridhar Ramamurthy Executive Director

4 Pradeep Banerjee Executive Director

5 A. Narayan Independent Director

6 S. Ramadorai Independent Director

7. R.A. Masherkar Independent Director

8. 0.P, Batt Independent Director

9 Nitin Paranjpe Managing Director & CEO

 Annual Turnover

employees an annual turnover of around 21,736 crore

and has
has over l6.000
is a subsidiary Unilever, one the world's leading suppliers
The comppany -2012). HUL
of of of

20l1- Goods) with strong local roots in more than 100 countries across
year
Consumer
(Financial Moving
of about 46.5 billion in 2011.
(ast sales
FMCG with annual in HUL.
globe about 52% shareholding
has
the
Unilever Gillette
EMACH

OFREE

Paripers
Fde RIEL
OAY
Scivebsby

KM82

Category
Comparison on the Base of Brands

SALES BRANDS
40
35 CATEGORY
35 32

30

25
20
20 17
15
15

10

0
HUL AMUL DABUR

NAJOR COMPETITORS...
Procter & Gamble India: P &G India in itskey segment i.e. Detergents and Personal Care.
Itoperates in India through three subsidiaries.
) Godrej
Consumer Products Ltd.: GCPL
second largest soap player iin India after
is the HUL
na market share of 9.2%. Personal care includes hair
care products shaving cream, etc.
DaburIndia
Care and food
Ltd.: It is an India-based FMCG company which deals in health care, personal
products.
 under the
manufactures a rangeof products marketed
Colgate-Palmolive (India)Ltd.: It
(iv)

Colgate.

portfolio on high margin "Beauty

& wellness:
(v) Marico Ltd.: It has a

Mission..
everyday
Unilever mission add Vitality to life. They meet
is to

and personal care with brands that help

needs for nutrition, hygiene
get more outof life.
people feel good, look good and

Innovation...
they will
In their scientific innovation to meet consumer needs,
society. They work on the
respect the concerns of their consumers and
basis of sound scienceapplying rigorous
standards of product safety.

Mergers...
(i) Erstwhile Tata Oil Mills Company (TOMCO)in April 1993

(ii) Brooke Bond Lipton India Limited in Jan. 1, 1996

(ii) Pond's India (PIL) Ltd. in 1998

Acquisitions

(i) Brooke Bond in 1984 (1) Lipton in 1972

(ii) Pond's India Ltd. in 1986 (iv) Lakme Ltd.

(v) HUL formed a 50:50 joint venture with US based Kimberly Clark Corporation in 1994.

(vi) In 2002, Modern Foods

Challenges...
1. Competition in Core Categories 2. Raw Material

3. Consumer Income Reduction 4. Emerging Player

5. AdvertisingExpenditure 6. Price Positioning

7. Competitors focussing single category 8. Consumer BehaviourA

9. Global Exposure 10. Changing habits

11. Confused with competitorsProduct 12. Traditional habits

13. Go farther -go faster. 14. Challenge conventional wisdom

15. Creating a different mind set
16. Make something from waste
17. Help to improve nation's nutrition. 18. Give life an Extra-flavour.
 Project Work 393

ANALYSIS

sStrength
Variety
ofProducts (ii) Distribution Network
()
Brand Image (iv) Quality Management

() Innovation

W-Weaknesses
able to compete with local lcompetitor
() Not.

Not focuson upper class population

) Pricing policy
is not good.

(-0pportunities

() Huge Market (i) Increasing Per Capita Income

consumption ratio (iv)

G) Increasing Potential for making more impact of
Brand Image

-Threats

) High class competitor (ii) Pantene

Babool
m) Dabur (iv)

FUTURE PROJECTS
As competition is increasing day-by-day, it is difficult to maintain leader position and to

further strengthen the distribution network. HUL made a project called Project Shakti" to:

(A) To Reach:Small scattered settlement and poor infrastructure.

(B) To Communicate: Low literacy hampers effectiveness of printing media. Poor Media
reach-500 million Indian lack TV & Radio.
(C) ToInfluence: Low category penetration consumption.

(D) Awareness: Per capita consumption in Unilever categories is 33% of urban level.

Conclusion

This sector will continue tosee growth as it depends on an ever-increasing internal market
lor consumption,and demand for these goods remains more or less constant, irrespective of

Tecesion or inflation. Hence,this sector will grow,through it may not be a smooth growth path,
due to the present world wide economic slowdown, rising inflation and fall of the rupee. his
Sector will seegood growth in the long run and hiring will continueto remain robust.