project report on

Himalaya Herbal
Anti-wrinkle cream
This-PC
PGDM 1
[Date]

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Table of Contents
Sector Information......................................................................................................................................3
Sector wise contribution to GDP.............................................................................................................4
Reasons for Growth in FMCG sector........................................................................................................4
Porter’s five forces model of FMCG sector..............................................................................................6
Himalayan Herbal limited: Company Profile................................................................................................8
Company snapshot..................................................................................................................................8
Promoters of Himalayan Herbal..............................................................................................................8
Product and Service Portfolio of Himalaya Herbals.................................................................................9
Competitor Analysis...............................................................................................................................10
News latest by 6 to 12 months..............................................................................................................10
Marketing Strategy of Himalaya Herbal wellness......................................................................................12
SWOT ANALYSIS OF Himalaya Herbal wellness......................................................................................12
Targeting by Himalaya Wellness............................................................................................................14
Positioning by Himalaya wellness..........................................................................................................14
SWOT Analysis of Product: Himalayan herbal anti-wrinkle cream.........................................................15
BCG matrix of Himalaya wellness..........................................................................................................16
Product Life Cycle of Himalaya Herbal anti-wrinkle cream....................................................................17

Sales for the last 3 years........................................................................................................................17

Marketing and Promotional strategy of Himalaya Herbal wellness.......................................................18
Business Finance........................................................................................................................................19
A). Financial Statements........................................................................................................................19
Profit and Loss Statement of Himalaya Granite for the year ending 31-march-2018............................19
Balance sheet as on 31-march-208........................................................................................................20
( in Rupees)............................................................................................................................................20
Observation of financial Statements.....................................................................................................20
Liquidity Ratio....................................................................................................................................21
Solvency Turnover Ratio....................................................................................................................21
Profit Volume ratio............................................................................................................................21
Human Resource Management.................................................................................................................22
Skills required in company.....................................................................................................................23
JD and Job Specification at Himalaya Herbal.........................................................................................23

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 Selection Process...................................................................................................................................26
Induction Process at Himalaya Herbals..................................................................................................26
Reward and Recognition........................................................................................................................26
Performance Appraisal model of Himalaya wellness.............................................................................27
Himalaya Employee Benefits.................................................................................................................27
Career Planning at Himalaya wellness...................................................................................................28
Performance Appraisal Model of Himalaya...........................................................................................28
Organization Culture.............................................................................................................................28

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Sector Information

India is the sixth largest economy in the world. In 2019, India has emerged as one of the fastest growing
country. India’s nominal GDP rate has been measured at 12% in 2018-19, With a GDP growth of 5% in
quarter June 2019.
Anti- wrinkle cream comes under Personal care under FMCG sector.
FMCG is the fourth largest sector in the Indian economy, with household and personal care accounting
for almost 50% sales.

FMCG

House hold Personal food and

care care bevrages
There are three main segments in the sector – food and beverages which accounts for 19 per cent of the
sector, healthcare which accounts for 31 per cent and household and personal care which accounts for the
remaining 50 percent. Accounts for the remaining 50 per cent.

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 Sector wise contribution to GDP

Sales

Haircare Digestive OTC Health supplements

Oral care food skin care Home

 Haircare is the leading segment, Accounting for 23 percent of the

overall market in term of revenue.
 Food production is the 2nd largest segment in the sector
accounting to 19% followed by health care and oral care with a market share of 16% and 15%
respectively.
 Contribution of herbal products to personal care is 6.7%.
 Skin care products accounts to 16% in FMCG sales.
 Home care contributes 16% in FMCG sales.

Reasons for Growth in FMCG sector

 Growing Awareness. Awareness has been spread through advertisements, movies, peer influence.
Now, a person in village also uses a Colgate. Even, kids are aware of the importance of a Hand
wash.
 Easier Access. Now-a-days, products are available through online as well as offline medium. So,
consumers have to make less efforts in buying a product of FMCG segment.
 Changing lifestyle. Lifestyle has been changed to a great extent. Now current workforce includes
almost 40% women participation. Which means there is more demand for packaged food. People
are now more Health freaks they prefer oil which can take care of their heart.

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 sales(in crores)

2017 368669.75

2011 220852.04

0 50000 100000 150000 200000 250000 300000 350000 400000

sales(in crores)

Porter’s five forces model of FMCG sector

To determine industry attractiveness and long-run industry profitability of the Indian FMCG Industry,
Porter’s five forces are: (1) Barriers to Entry and exit, (2) Threat of substitutes, (3) Buyer

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bargaining power, (4) supplier bargaining power, and (5) Industry Competition.

1. Barriers to Entry and exit: The Indian FMCG Industry is characterized with modest entry
and exit barriers. Integrated
business model and increasing capital requirement in the industry restrict new entrants. Huge
investments in setting
up distribution networks and promoting brands and competition from established companies.
2. Threat of substitutes: Being an essential commodity the demand for consumer products is
elastic. Multiple brands
positioned with narrow product differentiation. Companies entering a category /trying to gain
market share compete on
pricing which increases products substitution. Hence, threat of substitute is high in the industry.
3. Buyer bargaining power: High brand loyalty for some products, thereby discouraging
customers’ product shift. But low
switching cost and aggressive marketing strategies under intense competition within the FMCG
companies, induce
Customers to switch between products, thereby driving value for money deals for consumers.
4. Supplier bargaining power: Prices are generally governed by international commodity
markets, making most FMCG companies price takers. Due to the long term relationships with
suppliers etc., FMCG companies negotiate better rates
during times of high input cost inflation
5. Industry Competition: Competitiveness among the Indian FMCG players is high. With more
MNCs entering the country,
the industry is highly fragmented. Advertising spends continue to grow and marketing budgets as
well as strategies are
becoming more aggressive. Private labels offered by retailers at a discount to mainframe brands
act as competition to
undifferentiated and weak brands.

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Himalayan Herbal limited: Company Profile

Himalayan herbal is one of India’s major Herbal Product Company with an existence of over 80 years of
India. Himalayan Herbal was founded in 1930 by Manal. It has its headquarter in Bengaluru. Its provides
Ayurveda Products like Himalayan Face wash, Himalayan scrub and Himalayan herbal anti-wrinkle
cream. It operates its operations in more than 100 countries. And its products are also prescribed by
45000 Doctors. Its major Product Portfolio includes Pharmaceuticals, Personal care, wellness, Baby care,
Himalaya for Moms, Animal Care.

Company snapshot
Chief Executive- Philippe Haydon and Nabil Manal
Business Group- Beauty and wellness.

Promoters of Himalayan Herbal

Director- Syed Farooq Ahmed, Jayashree Ulaal, Syed Farooq Ahmed, Philipe Joseph Hayden, Meraj
Alim Manal

Market share of Himalayan Herbal

Market Capitalization of HUL- Rupees

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Product and Service Portfolio of Himalaya Herbals

The major products category are Pharmaceuticals, Beauty, wellness, Mom health, Baby care,
Animal care.

Pharmaceuticals product are Him Colin, Tentex Forte, Confido, Platenza, Liv. It contributes 30%
to Revenue.
Beauty Products are Himalaya clarifying mud pack, Himalaya neem scrub, Himalaya neem
facewash, Himalaya Anti-wrinkle cream. It contributes 17% to the Revenue.
Mom Health products are Himalaya Stretch mark oil, Himalaya stretch mark cream.
Wellness products are Himalaya Active Fresh Toothpaste, Himalaya Quist pro, Anti hair loss
cream, Anti Dandruff conditioner. It contributes 4% to Revenue.
Baby care products are Gentle Baby shampoo, Baby Lotion, Baby Massage oil, Diaper rash
cream, Himalaya Baby Diaper, Gentle Baby soap. It contributes 17% to Revenue.
Animal care products are liv 52 pets, Healthy Treats Adults, Healthy pet food, Healthy treats
Puppy. It contributes 4% to Revenue.

Sales

4%4% Personal Care

Pharma
17%
Baby Care
45% Wellness
Animal produts

30%

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Competitor Analysis

1. Dabar
2. HUL
3. Zandu
4. Marico
5. Pat Anjali
6. Parle Agro
7. P&g

Market share composition

Sales

Himalaya Dabar HUL Zandu Marico

Patanjali Parle Agro Ruchi mohsons

News latest by 6 to 12 months

1. Himalaya Herbals open a New Shampoo center in UAE.
2. Advertisement of Himalaya got popularity as it brings back the Nostalgia of
Traditional bath.
3. Incredible growth of Himalaya supplements.
4. Himalaya to promote me time concept.
5. Massive growth for Ayurveda products by 2025.

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 6. Himalaya launched Eye Drops.
7. Himalaya lunched Green Tea.
8. Virat Kohli and Rishabh Pant to endorse Himalaya men facewash.
9. Himalaya launched cleansing milk.
10. Himalaya launched its first ever Brand Campaign “khush Raho”.

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Marketing Strategy of Himalaya Herbal wellness

SWOT ANALYSIS OF Himalaya Herbal wellness

Strengths
sssghgshkk Weakness
 Strong Financial backup.  Some products are unaffordable.
 Targeting both Rural and urban  Stereotype regarding s Ayurveda
STP Of HUL
market. products.
 Eco-friendly products.

Opportunity Threats
 Strong distribution.  Well established competitors.
 More diversified product  Non-ecofriendly products.
portfolio.

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 Segmentaion by Himalaya wellness

Psychographi
c
Demographic Target group is
Geographic people having
Behavioral
Targets are scholars, Teens,
Young age, Middle aged and It focuses on India only. Attitude to adopt people whose
old aged. Loved by both It has existence in both to changes. usage of product is
Interest in natural governed by
male and female and middle Rural and Urban market . benefits sought.
and high income group. products.

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Targeting by Himalaya Wellness

Himalaya herbals has well defined product portfolio for

 Baby Care
 Beauty
 Wellness
 Mother care
 Animal Care.
It has separate consumer base.

Positioning by Himalaya wellness

It has positioned itself as natural ingredients giver.
Vast product line for each income group.
Effective Promotion strategies like CSR activities, marketing campaign.
Different tagline for each product category

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SWOT Analysis of Product: Himalayan herbal anti-wrinkle
cream

strong financial position of parent comapany Himalaya wellness.

Popularity of herbal products.
customized packs.
Strength strong brand name.

less popularity
weakness

Awareness regarding aging problems.

new technologies.
opportunitymore product line.

competetion from foreign players.

Threats well established players .

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BCG matrix of Himalaya wellness.

Star

Question mark
Himalaya neem Facewa
Himalaya herbal anti dandruff s

cash cow Dog

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Product Life Cycle of Himalaya Herbal anti-wrinkle cream

 Sales volume increases significantly.

 Popularity is increasing.
 Advertisement is not focused on generating Awareness

Sales for the last 3 years

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 Chart Title
39000

38000

37000

36000

35000

34000

33000

32000
2016-17 2017-18 2018-19

Column2
Observations
1. Sales changed by 8.535% in 2018-19 from 2017-18.
2. Sales changed by 2.120% in 2018-19 from 2016-17.

Marketing and Promotional strategy of Himalaya Herbal

wellness
 Shifting from Ayurveda to Herbal Products.
 Key marketing Strategies are high quality, uncompromised service
with a smile.
 Digital Marketing enables online shopping.
 Social media Marketing it has a Facebook page with 2 million like and
8K subscribers in Twitter.
 Targeting all segments, to target males, it launched “Himalaya for
him”.
TV commercials depicting social values and positive message like being confident and Bold.

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Business Finance

A). Financial Statements

Profit and Loss Statement of Himalaya Granite for the year

ending 31-march-2018

FINANCIAL Highlights (Amount in rupees)

Particulars 2017-18 2016-17

Revenue from Operations nill 79,800

Other Income 73,76,349 70,27,511
Profit and loss before finance cost, depreciation, Amortization and Total
expenses (24,21,190) (86,49,387)
less: finance cost nill nill
Less: Depreciation 12,68,883 14,80,740
Profit and loss before Tax (36,90,073) (1,01,30,127)
less: Provisions for Taxation nill nill
Profit/ loss for the year (36,90,073) (1,01,30,127)
Add: other comprensive income nill (1,37,353)
Total income (36,90,073) (1,02,67,480)
Balance brought forward from last year (3,37,77,008) (2,35,09,528)
Balance carried to Balance sheet (3,74,67,081) 3,37,77,008)

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 Balance sheet as ( in
on 31-march-208 Rupees)

on 31 march on 31 march
Assets 2018 2017
Non-current Assets 1,53,48,035 1,78,91,268
Property, plants and equipment 8,77,512 8,77,512
Loans 8,77,512 8,77,512
Total non-current Assets 1,62,25,547 1,87,68,780
Current Assets    
Investment 12,44,592 nill
Assets held for sale 4,07,884 nill
Trade Receivables nill nill
Cash and cash equivalent 20,93,911 2,47,08,562
Loans 3,61,92,657 1,20,64,033
other current Assets 15,12,176 56,27,231
Total current Assets 4,14,51,220 4,23,99,826
Total Assets 5,76,76,767 6,1,68,606
Equity and Liability    
Equity capital 2,31,67,840 2,47,08,562
Other Equity 3,33,62,847 56,27,231
Total Equity 5,65,76,767 6,02,20,760
Liability    
Non-current liability    
Provision 6,24,974 5,14,838
Total non-current Liability 6,24,974 5,14,838
current liability    
other current liability 5,21,106 4,33,508
Total current Liability 5,21,106 4,33,508
Total Equity and Liabilities 5,76,76,767 6,11,68,606

Observation of financial Statements

Other income increased by 4.96% in the year 2017-18 from the year 2016-17.
Losses are reduced by 72% in the year 2017-18 from the year 2016-17
Total non-current Assets are reduced by 13% in the year 2017-18 from the year 2016-17.
Total current Assets are reduced by 2% in the year 2017-18 from the year 2016-17.
Equity capital reduced by 6% in the year 2017-18 from the year 2016-17.
Total non-current liability increased by 21% in the year 2017-18 from the year 2016-17.
Total current Liability increased by 20% in the year 2017-18 from the year 2016-17.

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 Liquidity Ratio= current Assets/ Current Liability
= 41451220/521106=79.55

Solvency Turnover Ratio= Net income/ total liability= (3690073/521106=7.08%

Profit Volume ratio= net profit/sales*100

=(3690073)/7376349*100=50%

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Human Resource Management
1). Organizational Structure

Meraj Manal
(founder)

Hayden Phillippe
(CEO)

Dr. prasun Chakravarty N V Rajesh Rama Dhamija

Krishnamurthy
(Head R&D) (Head Baby (Head of
care) care) (Business marketing)
Director)

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 Skills required in company
General Skills
 Communication (listening skills, verbal and written)
 Technical skills
 Analytical skills
 Interpersonal skills
 Problem solving skills
 Multi Task
 Manpower Management.
 Ability to innovate.

JD and Job Specification at Himalaya Herbal

Marketing:

Job Title- Digital Marketing Manager at Himalaya Herbals.

Business unit- Marketing
Nature- Permanent
Qualification- MBA/ PGDM in marketing.
Work experience- 4-5 years
Salary-10 lakhs per annum.

Key Responsibilities
 Manage website redesign.
 SEO
 Ongoing website maintenance.
 Web design agency management.
 Display Activation.
 Contingent Agency management.
 Amazon marketing activation.
 Build and deploy Emails.
 Develop Digital Strategy plan.

Skills Required.
 Analytical skills.
 Project Management skills.
 Visual storytelling.
 Process Oriented.
 Business acumen.
 Strong sense of Urgency.

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  Proficiency in MS word, outlook, Excel and PowerPoint.

Finance

Business Unit- Finance

Title- Finance officer.
Location- PAN India
Qualification- MBA/ PGDM in finance
Experience- 5 years minimum.
Salary- 10 lakh per annum.

Key skills required

 Outstanding analytical skills.
 Time management skills.
 Excellent written and verbal communication.

Key Responsibilities
 Cash flow projection.
 MIS reporting.
 Working Capital Management.
 Accounts Payable.
 Create and implement financial policies to guarantee operational efficiencies.
 Oversee the planning and preparation of Budget.
 Contribute to financial audit.
 Monitor all bank deposit and payment.

Human Resource department

Business Unit- Human Resource

Job Title- Human Resource officer.
Location- PAN India
Nature of Job- Permanent
Qualification- MBA/ PGDM in Human Resource.
Experience- 5 years minimum.

Key skills required

 Understanding of Labor Laws and Disciplinary procedures.
 Outstanding management skills.
 Excellent communication skills.

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  Strong Ethics and Reliability.
 Proficient in MS Office, HRMS.
 HR credentials.
Key Responsibilities
 Support the development and Implementation of HR initiatives and System.
 Provide counselling on policies and procedures.
 Be actively involved in Recruiting.
 Assist in PMS.
 Review employment and working conditions.
 Developing Training and development Programs.
 Create an effective onboarding plans.

Selection Process

Himalaya herbals has a well-defined selection process for each of its job position.
1. Firstly, the candidate needs to register for the job in online site of Himalaya
i.e. Himalayawellness.com.
2. Then there is Aptitude Written Test online. To check analytical skills of
Candidate.
3. Group Discussion is also conducted to find out Management skills of the
candidate.
4. Technical Interview is also taken to check Domain Knowledge of Candidate.
5. Finally, comes the HR interview, in which interpersonal skills and
communication skills are checked. After which Attitude and Personality is
assessed and job offer is given to the Right candidate .

Induction Process at Himalaya Herbals

 Employees are first familiarize with the customer expectations, since
the main focus is to satisfy customers.
 On weekends, Employees are sent to Retail store to learn about
entire product category of Himalaya Herbals, interact with customers
and take feedback.

Reward and Recognition

 Bonuses- Bonus are the monetary rewards that are given to motivate
an employee. Himalaya Herbal rewards its employees by giving
attractive rewards.
 Written Praise- Employees are often appreciated by giving written
praise. It is a flexible method of recognition whether written or sent.

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  Verbal Praise- Employees are given Verbal praise for recognition.
 Vacations are given for the best performing employee. And family
Holidays are funded by the company.
 Employee gifts during Festivals and special events to form a bond
between employees and organization.
 Effective Retirement plans to promote employee safety.

Training methods at Himalaya Herbal-

 Training Through Giving Challenging Jobs.
 Employees are sent to Retail stores to know about every product
personally so that they can grow their awareness regarding the
company.
 In Induction every employee has to undergo the process of
understanding CRM.

Performance Appraisal model of Himalaya wellness.

 Skills development program are held to make employee efficient.
 Wellness; Himalaya herbal has a unique concept of “care”, where they provide their customer the
recreational activity like Yoga, personal effectiveness so that overall performance can be
improved.
 Outbound- employees are sent to retail stores and health Exhibition to learn new concepts.
 Life skills- company also provide their employee along with their family to enjoy various health
facility.
 Online- as Himalaya is in the business of online sales and online marketing. Its employees are
also trained on the same.

Himalaya Employee Benefits

 Medical Facility for employees and their family.
 Insurance schemes for employees.
 Regular in house health schemes.
 Family Insurance.
 Training and development is free.
 Skill development.
 Company Pension plan.
 Paid holidays.
 Company car.
 Casual dress/ atmosphere.

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Career Planning at Himalaya wellness

 Recruitment- candidate attraction, shortlisting, framing selection process.

 Learning and development.
 Performance Management.
 Engagement and recognition
 Risk Management
 Compliance and reporting
 Separation and Retirement.

Performance Appraisal Model of Himalaya

1. Setting performance Standards.
2. Communicating Standards.
3. Measuring Standards
4. Comparing standards
5. Discussing Results
6. Taking corrective actions.

Organization Culture
 Open workspace.
 Many growth opportunities.
 Excellent Wage structure.
 Best work life balance.
 Less pressure.

 360-degree Appraisal at once.

 Eliminate biased loyalty.
 Promote out of the box thinking.
 Accept doing Is the best way to learn.

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