Hindustan Unilever Limited

PROJECT REPORT

ACKNOWLEDGEMENT
I Varsha Kashyap take this opportunity to express my sincere gratitude to express my sincere gratitude to my project guide Mrs. Suhasini Parashar for her able guidance, advice and valuable

suggestion, this along with co-operation enabled me to finish this project successfully. Without her guidance and support I would not have been successful in my endeavors. Last but not the least I would like to place a word of thanks for all those who have helped me in a successful completion of the project. Varsha Kashap BBA (B&I), 3rd Sem

INDEX
1. Introduction
1.1 Objective of the study 1.2 Research methodology 1.3 Limitations

2.

Company profile

3.

Marketing strategy
3.1 Operating performance 3.2 Financial performance 3.3 Swot analysis

4.

Conclusion and recommendations

CHAPTER 1
INTRODUCTION
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was first incorporated. In 1931, HUL set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited in the year 1933 and United Traders Limited in 1935. These three companies merged to form Hindustan Unilever Limited in November 1956. In the year 1958 the company was started its Research Unit at Mumbai Factory namely The Hindustan Unilever Research Centre (HLRC). HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. The notable thing in company's history is the company became the first foreign subsidiary in India to offer equity to the Indian public. The company also partaking in sell abroad, the export business gives a sustain growth to the company in every agenda. The company's Formal Exports Department was started in the year 1962 and HUL recognized by Government of India as Star Trading House in Exports in 1992. A turning point to the company was guaranteed in the year 1993, HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994. HUL forms Nepal Lever Limited in 1994, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture as Kimberley-Clark Lever Ltd to market Huggies diapers and Kotex feminine care products. Factory was set up at Pune in 1995. HUL acquired Kwality and Milk food 100% brand names and distribution assets

accordingly HUL introduced Wall's. The company and Indian cosmetics major, Lakme Ltd came to joint ventures and formed Lakme Lever Ltd and HUL recognized as Super Star Trading House in1995. In 1997 Unilever sets up International Research Laboratory in Bangalore and the new Regional Innovation Centres also came up to existence. A group company, Pond's India Ltd was merged with HUL on January of the year 1998. HUL believes that an organizations worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. In 2001, the company embarked on an ambitious program, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. The company's spotlight was turned on to Ayurvedic health & beauty, HUL entered Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres 2002.

Incorporation Year Chairman Managing Director Company Secretary Auditor Registered Office Telephone Fax E-mail Website Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters ISIN Demat Market Lot Listing Financial Year End Book Closure Month AGM Month Registrar's Name & Address

1933 Harish Manwani Dev Bajpai Lovelock & Lewes Hindustan Lever House, 165/166 Backbay Reclamation, Mumbai, 400020, Maharashtra 91-022-39830000 91-022-22871970 lever.care@unilever.com http://www.hul.co.in 1 500696 A HINDUNILVR HUVR IN HLL.BO INE030A01027 1 Mumbai,NSE 3 Jul Jul Karvy Computershare Pvt Ltd, Plot No 17-24, Vittal Rao Nagar, Madhapur, Hyderabad-500081. 91-040-44655000 91-040-23420814

Objectives of Study

 To study the usage of HLL products in Indian households. In particular, Surf-Excel and their preferences in terms of: Price Quality Packaging Texture/Odor Skin-friendly

To know the scope of fabric wash-industry. Analyze the present market scenario. Understand the changing market situation. Recommendation/feedback of the consumers.

Research Methodology

A market research is systemtic study for analysis of information. The research was started with a clear objective in mind that why people need HLL products and what are the factors that influence the purchase of their product.

DETERMINING RESEARCH DESIGN A research design is the specification of the methods for acquiring the necessary information for the research. Descriptive research design was used to collect information regarding consumer behavior for buying of different HLL products.

DATA COLLECTION METHOD: PRIMARY DATA:

A fully structured method of data collection was used. Only 50% were contacted and interviewed. SECONDARY DATA:

The Internet, journals, newspapers, magazines with vast knowledge regarding the project.

Limitations
In the making of the thesis following were the limitations: 1) Due to shortage of time we are unable to have larger data. 2) Scope of the study has been restricted to a city. 3) Difficulty in doing up follow-ups. 4) Cost factor was always a concern.

CHAPTER 2
PROFILE OF THE COMPANY

MAIN PRODUCT LINE

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs. 13,000 crores. HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. The various segments where HUL has strong presence are as follows: Food brands Home care brands Personal care brands Water Nutrition Health, hygiene & beauty

A brief study of the various product lines is done in the following section.

Food brands:

HUL is one of Indias leading food companies and their products are the leaders in their respective fields. Some of the food brands are as follows:

Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation theres no time for young couples like the time spent sharing a cup of 3 Roses.

Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.

Red Label Indias favourite cup of tea, the great taste of Red Label brings people closer together and strengthens relationships.

Brooke Bond Taaza Brooke Bond Taaza lifts me and unshackles my mind, allowing me to see and realize possibilities.

Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Bru Ek cup Bru aur mood ban jae

Kissan With Kissan, good food is loved not shoved!

Knorr helps families make meal times special, nutritious, tasty and healthy.

Kwality Walls A good honest scoop of daily pleasure.

Lipton has a range of vitality teas that truly encompass the goodness of tea.

Home care brands:

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.

Active Wheel aims at giving freedom from painful & tiring laundry

Cif targets being the best cleaner to let the utensils shine.

Comfort Is the worlds largest fabric conditioner brand.

Domex Introduced as a strong toilet cleaner that eradicates all the germs.

Rin aims at providing the best whiteness which can be demonstrable. Sunlight is a color care brand

Surf Excel The washing powder brand.

Vim Created in 1885, the Vim brand is placed as a domestic appliances cleaning brand.

Personal care brands:

HULs personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognised and known by consumers across India. They are aimed at helping to look good.

Aviance provides women with customized beauty solutions.

Axe is a leading deodorant brand.

LEVER Ayush Therapy provides customized ayurvedic solutions.

Breeze beauty soap targeted towards the lower end of the market.

Clear New Clear is a hair washing shampoo.

Clinic Plus is Indias largest selling shampoo.

Closeup The dental care product.

Dove is premium beauty soap.

Fair & Lovely Built more than 30 years ago, Worlds No.1 Fairness cream.

Hamam Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin.

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling to realize the potency of beauty.

Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family.

Liril Awaken, and enliven your senses with a Liril bath.

Lux believes in passion for beauty. It continues to be a favorite with generations of users for a sensuous experience of luxury.

Pears the purest and most gentle way to skincare!

Pepsodent India is committed to improve the overall Oral health of Indians.

Ponds Get the expert to look after your skin

Rexona gives you 24 hr protection from sweat and body odour and therefore the confidence to handle whatever the day has in store.

Sunsilk encourages young women in India to live for today. Sunsilk helps you transform the beauty of your hair instantly because LIFE CAN'T WAIT!!

Vaseline Your skin is amazing. It deserves to be treated as such.

Some of the salient features of the company are:1. 2. 3. 4. 5. 6. 7. 8. Indias largest fast moving consumer goods company. Touches the lives of 2 out of 3 Indians. 35 Power Brands. Combined volume 4 million tones. Leadership in home and personal care, food and beverages. Covers 1 million retail outlets, 50,000 villages. About 40,000 employees (including group companies). Golden Super-Star Trading House; Net foreign exchange earner.

Their vision has made it Indias largest packaged mass consumption goods company, with leadership in Home and Personal Care Products and Food and Beverages. It is countrys largest marketer of Soaps, Detergents and Household Care Products. It expertise in Personal Products makes it the leader in Shampoos, Skin Care Products, Colour Cosmetics, Deodorants and Fragrances.

In Foods and Beverages, it remains undisputed market leaders in Tea, Processed Coffee, Branded Wheat Flour, Tomato Products, Ice Cream, Jams and Squashes. Their other Ventures include Healthcare, Confectioneries and Network Marketing. They are also one of the countrys biggest exporters and have earned the distinction of a Super Star Trading House. Its exports division is a net foreign exchange earner. Among its exports are Branded Soaps and Detergents, Personal Products, Tea, Coffee, Basmati Rice, Castor oil and its Derivatives, Meals/Extractions and Marine products.

In Soaps the big brands are Lifebuoy, Lux, Liril, Breeze, Pears, Hamam, Dove and Savlon. In Detergent the Brands are International Surf Excel, Rin, Wheel, 501 and Ala. Its Personal Products business addresses Oral, Hair and Skin Care needs. In Oral Care, Close-Up and Pepsodent toothpaste, toothbrushes and toothpowders are the offerings. In Hair Care it offers a host of products ranging from Shampoos to Hair Oils, Clinic, Sunsilk and Lux are the mega Hair care products. In Skin Care it market Fair & Lovely, Ponds, Lakme and Pears Franchises. In Colour Cosmetics it offers the Lakme range of beauty products. In Deodorants and Fragrances the households names are Rexona, Axe and Denim.

Hindustan Unilever Limited, a fast moving consumer goods company, provides nutrition, hygiene, and personal care products in India and internationally. It offers soaps and detergents, including soaps, detergent bars, detergent powders, detergent liquids, and scourers; personal products, such as oral, skin, and hair care products, as well as toothpaste and brush, deodorants, talcum powder, color cosmetics, and beauty and wellness services; and beverages, including tea and coffee. The company also provides food products, such as branded staples, including flour and salt; culinary products comprising tomato based products, fruit based products, and soups; wheat based products consisting of bread and supplementary nutritional products; bakery products; recipe mixes; and ice creams and frozen desserts. In addition, it exports marine products, rice, and leather products. Further, the company involves in chemicals, agri seeds, property development, and water businesses. It was formerly known as Hindustan Lever Limited and changed its name to Hindustan Unilever Limited in 2007. The company was founded in 1931 and is headquartered in Mumbai, India.

MARKET LEADING BRANDS HLLs brands have become household names. The companys strategy is to concentrate its resources on 30 national power brands, and 10 other brands which are strong in certain regions. The top five brands together account for sales of over Rs.3000 crores. Each of these mega brands has a potential scale of Rs.1000 crores in the foreseeable future. Some of the big brands in Soaps and Detergents are Lifebuoy, Lux, Liril, Hamam, Breeze, Dove, (all soaps) surf excel,surf , Rin, Wheel (the number one detergent brand in India, and HLL's largest), 501, Sunlight (all detergents). HLL also markets the Vim and Domex range of Home Care Products. In the Personal Products business, HLL's Hair Care franchises are Clinic, Sunsilk and Lux shampoos; the company markets Nihar oil. In Oral Care, the portfolio comprises Closeup and Pepsodent toothpastes and toothbrushes. In Skin Care, HLL markets Fair & Lovely Skin Cream and Lotion, the largest selling Skin Care Product in India; a brand developed in India, it is now exported to over 30 countries. It has been extended as an Ayurvedic cream, an undereye cream, a soap and a talc, in line with the strategy to take brands across relevant categories. The other major Skin Care Franchises are Ponds, Vaseline, Lakme and Pears. In Colour Cosmetics, HLL markets the Lakme and Elle18 ranges. In Deodorants, the key brands are Rexona, Axe, Denim and Pond's, while the Talc brands are Pond's, Liril, Fair & Lovely, Vaseline and Lifebuoy. Axe and Denim are HLLs franchises for Mens toiletries. HLL has recently launched Lever Ayush Ayurvedic Health & Personal Care Products.

Health Care is among the new businesses HLL has chosen to enter. The product range comprises Cough Naashak Syrup, Headache Naashak Rollon, Dandruff Naashak Shampoo, Hair Rakshak Oil and Body Rakshak Soap. The purity of the Ayurvedic ingredients in Lever Ayush is endorsed by the renowned Arya Vaidya Pharmacy (AVP) of Coimbatore.

CHAPTER 3 MARKETING STRATEGY

Operating Performance
Year Net sales Change sales % change in 794.96 6.86 1454.49 11.75 2526.78 18.27 6615.79 47.83 -13.24 2006(12) 12374.76 2007(12) 13829.25 2008(12) 16356.03 2009(15) 20445.04 2010(12) 17,737.57

-2,707.47

At the operating level, HUL posted a weak performance during the Financial year 2009-2010, despite a fall in input costs, largely on account of a significant jump in advertising expenditure due to intense competitive pressures. Although previous year company has changed its accounting period from January- December to January, 08- March, 09 hence these figures do not give the correct representation of the year on year increase when the net sales of the company are adjusted to 12 months period the net increase is accounted to be of around 18 % with a figure of net sales of 16356.03 crores. The net sales increase for the previous year was somewhere around 11.75%.

Advertising spending rose 34% to Rs 751 crore, or around 16% of sales, from around 13% in the year earlier. Profit before interest and tax from personal care products such as skin creams and tooth paste rose 26% to Rs 339 crore. The company has spent heavily on advertisements across categories to increase sales because of competition from Procter & Gamble in the laundry segment and ITC in soaps. Though there has been a decrease in the net sales of the company but the expenditure has also decreased from Rs 18,218.49 cr to Rs 15,222.89 cr, which eventually resulted in lesser investment.

Trend Analysis of Sales

year Net sales sales due to Exports % of Net sales % change 2007 13829.25 1348.96 9.75 2008(12) 16356.03 1260.56 7.70 -6.55 2009(15) 20445.04 1575.7 7.70 16.8

After a bad phase of 2001- 2004 when the overall increase in the Net sales was not very high Hindustan Unilever has shown some good results in the previous few years as it has been able to record a CAGR of greater than 11% for the previous 4 years and also the profit has increased with a CAGR of 17% in these years. During this period as the sales have maintained a steep trend the profit margins have also increased. The annual growth rate in net sales which was recorded for the previous years from 2004- 2009 is 9.21, 6.86, 11.75 and 18.27. This steady growth has resulted in the payment of high dividend which has established HUL as a company with high return on investment and as a market leader and has given it a power to acquire the premium position in the market as compared to other FMCG companies. The revenue generated by the export sales in the year 2007-2008 was 1348.96 crores which has increased by 16.80% to 1575.70 crores but this sales is for the period of 15 months and when accounted for the period of 12 months the amount comes out to be 1260.56 crores which means there has been a reduction in the net export sales in this year by an amount of 88.40 crores or we can say there has been a net reduction of 6.55% in the year 2008-2009.

There has also been a decrease in the share of export in net sales which was 9.75 % in the year 2007-08 has come down to 7.70 %. Although the companys report suggests that there has been an increase in the net export sales but this is due to change in accounting period. The products which have done well are Pears, skin care products and oral care in countries like Sri Lanka and Myanmar and tea and coffee brands in European countries.

CATEGORY WISE CONTRIBUTION:

Some highlights are given below in respect of each of the business categories of the Company. Increase/growth percentages refer to the comparison of the financial year ended31st March, 2010 with the 12 months period ended 31st March, 2009.

1. Home & Personal Care Business (HPC)

The HPC Business consists of Fabric Wash, Household Care, Personal Wash and Personal Care categories, which includes products such as toothpaste, shampoo, skin care, deodorants and color

cosmetics. During the year, the HPC business delivered sales growth of 6.6%.While the underlying volume growth was higher, aggressive price reductions were effected in the market place linked to significant reduction in commodity prices over the previous year. Further, competitive intensity increased substantially in most categories, especially in the second half of the year; evidenced by many new competitive entries as well as a step up in media spend levels. As a result of these efforts, the growth momentum of the HPC business accelerated through the year with double digit volume growth in the last quarter of the year under review.

2. Soaps & Detergents

Soaps and Detergents category recorded modest turnover growth of 1.5%. The growth of the Soaps and Detergents category needs to be viewed in the context of a very high base in the previous year which saw high price increases linked to commodity cost inflation. During the year under review, the prices of products, particularly in the Detergents segment, were reduced taking into account the reduction in commodity prices. The segmental margin of this category was lower by 100 bps linked to the volatility in commodity costs in the initial part of the year and the actions taken to defend the Company's leadership position in the face of heightened competitive intensity.

3. Personal Products
The Personal Products category of the Company comprise of Hair Care, Skin Care, Oral Care, Deodorants and Color Cosmetics. The Personal Products category grew by 16.2%overall with good growth in profits.

4. Foods
The business has delivered strong double digit growth. This growth has been broad based across the portfolio and has been driven through a deep understanding of consumer and customer needs translated into relevant innovations. The growth in the Foods business has been achieved in the face of some key challenges: High competitive intensity from national as well as local players in many categories. HUL has responded through increased brand investments and value enhancing innovations. Significant food inflation across the spectrum leading to market slowdown and down trading in some categories as the year progressed. The Company has responded to this challenge through a combination of consumer centric value packs and judicious price increases combined with aggressive cost saving programs.

5. Beverages
For three consecutive years, inflation in the Tea commodity continues unabated, driven by strong global demand and local crop shortages. This has resulted in down trading and the overall growth in the discounted segment of the market, becoming the major portion of the portfolio. Market shares during the year came under pressure due to lack of a strong presence at the discount end of the market. During the year under review, Coffee markets have decelerated significantly in comparison to earlier years due to adverse climatic and weather conditions. Through key innovations, the Company was able to register strong volume growth in the second half of the year.

6. Ice Creams
The year under review has been an excellent, with strong growth in both the impulse and take home segments. Growth has been driven by the three key platforms 'Cornetto', 'Selection' and 'Paddle Pop'. Significant inflation in input prices put tremendous pressure on the margins of the business. Significant investments are being made by the Company in front end assets and for leveraging IT for enhanced scalability and asset productivity. Going forward these is expected to provide the Company a competitive advantage.

7. Exports Business
Company managed to achieve a turnover of Rs. 1,000 crores with good profits and strong cash delivery. The non-value adding commodity exports were rationalized resulting in improved Gross Margins. Cash generation was significantly enhanced by placing specific focus on the reduction of Working Capital through improved inventory management and debtors reduction, while simultaneously enhancing customer service.

Peer comparison

HUL

Hindustan Unilever (HUL) is the largest pure-play FMCG Company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams.

PERFORMANCE: After stagnating between 1999 and 04, the company is back on the growth track. In the past three years, HULs net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. The company is set to gain further momentum, given the revival of consumer spending. HUL sells products at different price points straddled between the entire value chains. In the past few years, it has diversified into processed foods, ice-creams, water purifiers and specialized chemicals. But home and personal care (HPC) continues to remain the bread & butter segment for the company. This division accounted for 72% of HULs revenue and 91% of its profit (before interest and tax) during the year ended December 07. So, it wont be wrong to call HUL a personal care major.

GROWTH DRIVERS: The Company has been launching new products and brand extensions, with investments being made towards brand-building and increasing its market share. HUL is also streamlining its various business operations, in line with the One Unilever philosophy adopted by the Unilever group worldwide. Introduction of premium products and addition of new consumers via market expansion will be HULs growth drivers.

FINANCIALS: HULs net sales have recorded a CAGR of more than 11% over the past three years, while its net profit has posted a CAGR of 17% during the same period. While its sales have maintained a secular growth trend, profit margins have shown an erratic trend during the period. High dividend yield, steady growth and strong market standing in its product categories have enabled

HUL to command premium valuations, compared to other FMCG companies.

RISKS: Being an MNC operating in India, HUL is more conservative in its strategies than its Indian counterparts. Moreover, given increasing competition, it faces the risk of being overtaken by domestic players in various categories. Prolonged inflation may lead to margin contraction, in case HUL is not able to pass on this burden to consumers. The companys large size also poses a problem, since it does not give HUL the agility to address the competition it faces from national and regional players.

TO SUM IT UP: HULs up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. In the small and medium term, HUL is a better bet than ITC.

ITC
ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco FMCG segments like foods, personal care, paper products, hotels and agribusiness to reduce its exposure to cigarettes.

PERFORMANCE: Despite diversification, ITCs reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cashgenerating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth. ITCs non-cigarette FMCG business which contributes 15% of its revenues eroded close to 8% of ITCs profit last year. Its other businesses like hotels and paper together account for over 20% of ITCs profit. Agri-business, which is its second-largest revenue earner, contributes one fourth to its revenues, but only 3-4 % to its PBIT.

GROWTH DRIVERS: ITCs backward integration to ensure that its products pass efficiently from the farms to consumers has helped it to cut down supply and procurement costs. ITCs non-cigarette FMCG business leverages the large distribution network the company has developed by selling cigarettes over the years. A rich product mix, along with ramp-up of investment in its new sectors, will be instrumental in charting ITCs growth path.

FINANCIALS: During the past three fiscals, ITCs consolidated revenue has seen a CAGR of 22%. Its profit has grown at just 12% during the same period. ITCs sales and profits have displayed a secular growth trend. But the pressure of sustaining its new businesses, as well as higher tax burden on the cigarette business, is straining its profits. After undeterred growth spanning eight quarters, ITC witnessed a marginal de-growth in net profit for the trailing four quarters ended June 08. RISKS: Increased regulatory clamps on tobacco, along with rising tax burden, pose a business risk for ITC. So, it has started an ambitious diversification plan, which has its own set of risks. With its foray into the conventional FMCG space, ITC has entered the high-clutter branded products market. This will burden its resources in terms of ad spend and brand-building. Creating brand recall and building market share in new products are ITCs key challenges. Export ban and rising crop prices pose a threat for its agri-business, taxing its margins.

TO SUM IT UP:

ITCs growth story is still evolving. ITC is eyeing the pie which HUL and other FMCG players currently enjoy. Though risky, the companys business model will pay off in the long run. ITC has proved its expertise in the cigarettes, hotels, paper and agri-businesses. Investors who want to bank on its execution ability in FMCG can consider the stock with a long-term horizon.

Raw Material Consumption

Hindustan Unilever Ltd Industry :Personal Care - Multinational Break up of Raw Materials (Rs in Crs) Year Mar 10(12) ar 09(15) ec 07(12) ec 06(12) M D D Opening Stock of Raw Materials 1,080.02 967.06 730.44 652.8 Purchases of Raw Material 4,917.55 6,810.33 4,371.33 3,891.35 Purchase of Trading Goods 2,291.74 2,845.07 2,122.56 1,751.51 Direct Expense on Purchase/ Adjustment 0 0 0 0 Closing Stock of Raw Materials 745.31 1,080.02 967.06 730.44 Adjustment on amalgamation / trial runs 0 0 0 0

RESEARCH AND DEVELOPMENT This is the 51st year of Research and Development (R&D) of the Company. The Company has continued to build on this heritage by further strengthening the R&D Units in Bangalore and Mumbai with stronger integration with Unilever Global R&D. The R&D programs are geared towards delivering bigger, better and faster innovations with a robust pipeline of radically new technologies with innovative consumer propositions. R&D in India continues to focus on Water Treatment, Health and Hygiene, Laundry, Skin Care, Tea, Ice Cream and Ayurveda. The Company continues to benefit from the strong linkages with the Global R&D organization of Unilever. This has become even more critical in the context of entry of many global players in the attractive Indian FMCG market. These players are keen to get a slice of the large and fast growing FMCG market in India. With the strong support from Unilever R&D as well as the brand development capabilities, the Company is well placed to meet the challenges arising from the increased competition intensity. The Company had entered into a Technical Collaboration Agreement (TCA) in August 1999 with Unilever PLC, which provided a non-exclusive license to manufacture specified products in accordance with and using the Technical Documentation, Information and Know-how in consideration of payment of royalty at the rate of 1% (net of tax) both on domestic and export sales of the specified products. In December 2009, the Board of Directors of the Company

have approved amendments to the said TCA to include additional product categories where technical inputs are provided by Unilever as well as products of specified categories manufactured by third party manufacturers where technical inputs developed by Unilever are made available to the third party manufacturer. In addition, the Board have approved a trademark license agreement with Unilever which provides for payment of trademark royalty at the rate of 1% of net sales on specific brands where Unilever owns the trade mark and the Company is the licensed user. Both these amendments are well within the Government of India Guidelines for payment of royalty. On the back of strong R&D initiatives, a number of new products were launched successfully in the market. 'Pureit', a breakthrough innovation of the Company's R&D, was launched with additional technical features such as 'Auto Shut-Off' and 'Auto Fill' that enhance its safety and convenience. A winter variant of a skin lightening formulation was developed and launched as 'Fair & Lovely' Winter Fairness Cream. Also, during the year 'Lifebuoy' was re-launched with clinically proven hygiene benefits. Foods R&D continue to focus on delivering healthy options with superior taste and flavours. In 2009, 'Knorr' soups were re-launched with new formulations without MSG and with 100% real vegetables. The Ice Cream business grew on the back of several successful innovations such as Cornetto variants - Strawberry Tease Cake and Black Forest. During the year, Beverages introduced a premium Green Tea, Lipton Clear Green and launched a new blend of Lipton Yellow Label with higher levels of Theanine. The Company also re-launched a superior Bru Coffee with improved aroma. The continuous stream of innovative and technically advanced products launched in the market was a result of significant R&D investments and the scientific talent that the Company can attract and retain. India continues to occupy a premier position in Unilever's R&D initiatives with a significant share of Global Programs backed by strong in-house scientific expertise. The Company has been working aggressively towards building these expertise bases further to address emerging needs of our consumers and to retain our competitive edge in the market place. The details of expenditure on Scientific Research and Development at the Company's in-house R&D facilities eligible for a weighted deduction under Section 35(2AB) of the Income Tax Act, 1961 for the year ended 31st March, 2010 are as under :

- Capital Expenditure : Rs. 1.05 crores - Revenue Expenditure :Rs. 27.55 crores

Hindustan unilever has a strong foundation and long tradition of Research & development (R & D) which differentiates it from others. These benefits flow not only from work done in Research Centres in India, but also from the centres of Unilever's global research work. With the world class facilities and a superior science and technology culture, they are able to attract the best of talent to provide significant technology differentiation to products and processes.

The R&D labs in Mumbai and Bangalore are aligned significantly to Unilever's global R&D. There are several exciting innovations that are in the pipeline now in Water, Laundry, Skin, Oral Care, Beverages, Savory, Ice Cream etc. These technological innovations cover the whole spectrum of consumer income segments. A series of new and superior products were launched helped by the formidable global research and development activities. A range of Pond's top end products with anti-ageing and skin lightening benefits was introduced using technology developed at the global R&D centre. The R & D team also developed products to address specific requirements of Indian consumers like Lifebuoy range with improved hygiene benefits and Wheel detergents requiring less effort for cleaning. Based on unique consumer insight, Foods R&D came up with an innovative design for packaging of Kissan Jam in Squeeze Tubes. India now occupies a premier position in the global R&D domain for Unilever, performing leading research and development work to advance its brands and categories. A testimony of the high quality research done by Indian labs is the recent selection of Bangalore lab as one of the six major Discovery Research Centers for Unilever globally.

MERGERS, DISPOSALS

ACQUISITIONS,

JOINT

VENTURES

AND

Divestment of 49% shareholding in Capgemini Business Services Gemini SA

(India) Limited to Cap

In October 2006, the Company divested its 51% controlling stake in Unilever India Shared Services Limited, now known as Capgemini Business Services (India) Limited (CGSL) to Cap Gemini SA. The Company believed that the business would benefit from the systems and processes brought in by a leading player in the BPO space. Cap Gemini SA had a call option for the balance 49% stake in CGSL. Consequent to the exercise of the call option by Cap Gemini SA in March 2010, the balance stake of 49% in the business held by the Company has been sold to Cap Gemini SA for a consideration of Rs. 91.1 crores.

Merger of Bon Limited with the Company

Bon Limited a wholly owned subsidiary of the Company was not engaged in any significant business activity since 2003. During the year 2005, the Company's undertaking at Sewree (Mumbai) was transferred to Bon Limited pursuant to Section 293(1)(a) of the Companies Act, 1956 to facilitate transparent understanding and review of viability of the unit costs and productivity on a standalone basis. Despite all efforts by the Company, the undertaking could not be revived and was eventually closed after following the due process of law in July 2006. All legal issues with relation to the undertaking have been settled and Bon Limited was not having any operations. Therefore, for the purpose of administrative simplification, the Board of Directors of the Company, subject to the necessary approvals, decided in January 2010 to merge Bon Limited with the Company with effect from 1st April, 2009. The Hon'ble High Court of Bombay has, vide its order dated 16th April, 2010, approved the scheme of amalgamation of Bon Limited with the Company. The appointed date for the above mentioned scheme was 1st April, 2009 and the scheme has been made effective from 28th April, 2010 i.e. from the date of filing certified copy of order of Hon'ble High Court with the Registrar of Companies, Mumbai.

Hindustan Unilever Ltd Industry :Personal Care - Multinational (Rs in Crs) Company Industry House Hind. Unilever Care-MNC NC Associate - Unilever Per M 201003 Latest Latest 576.3 4,371.60 0 0 4,947.90 0.3 318.08 318.38 5,266.28 5,623.79 2,337.68 0 3,286.11 0 360.92 1,305.09 2,910.34 1,166.53 3,003.46 1,767.93 8,848.26 6,875.31 1,955.58 8,830.89 17.37 0.21 580.66 284.08 296.58 5,266.28 586.97 3,230.97 0 0 3,817.94 522.92 280.41 803.33 4,621.27 4,729.58 1,747.02 0 2,982.56 0 318.84 1,553.21 3,015.40 1,144.72 2,131.48 985.63 7,277.23 6,235.19 1,593.05 7,828.24 -551.01 85.79 471.75 239.87 231.88 4,621.27

Year SOURCES OF FUNDS : Share Capital 218.17 Reserves Total 2,365.35 Equity Share Warrants 0 Equity Application Money 0 Total Shareholders Funds 2,583.52 Secured Loans 0 Unsecured Loans 0 Total Debt 0 Total Liabilities 2,583.52 APPLICATION OF FUNDS : Gross Block 3,581.96 Less : Accumulated Depreciation 1,419.85 Less:Impairment of Assets 0 Net Block 2,162.11 Lease Adjustment 0 Capital Work in Progress 273.96 Investments 1,264.08 Current Assets, Loans & Advances Inventories 2,179.93 Sundry Debtors 678.44 Cash and Bank 1,892.21 Loans and Advances 617.18 Total Current Assets 5,367.76 Less : Current Liabilities and Provisions Current Liabilities 5,291.66 Provisions 1,441.55 Total Current Liabilities 6,733.21 Net Current Assets -1,365.45 M iscellaneous Expenses not written off 0 Deferred Tax Assets 451.13 Deferred Tax Liability 202.31 Net Deferred Tax 248.82 Total Assets 2,583.52

BALANCE SHEET AS ON MAR, 2010

5 year Balance Sheet of the company

Analysis according to Balance Sheet: Gross Block and Net Block has remained constant for the first 2 years but increased in 2007 and then declined in 2009 whereas the Sales in the same period have increased constantly. This may be due to the fact that certain fixed assets may have been sold which would have generated cash, thus increasing the figure of current assets.

The Net Current Liability remained fairly constant in initial 2 years but has decreased drastically in the current year. This is due to the disproportionate increase in the current asset in the form of cash at hand and at bank.

Net Worth has increased from 0.64 in 2007 to 0.84 in 2009. It is not in line with the growth in Gross Block.

The Fixed Asset Turnover over the period of 2009-10 has been on decline. This has been mainly due to decline in Sales.

In 2007 earnings per share just surpassed dividend per share. In 2010 there has been a great decline in both EPS and DPS which implies that company is not making much profit which come from the fact that there is decline in sales.

Profit and loss a/c

------------------- in Rs. Cr. ------------------Dec '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income 12,108.8 6 914.98 11,193.8 8 218.01 -48.12 11,363.7 7 13,189.70 945.68 12,244.02 512.60 129.97 12,886.59 6,687.30 180.79 642.81 187.37 2,328.51 541.52 0.00 10,568.30 Dec '06 12 mths 1,805.69 2,318.29 10.73 14,937.88 1,057.32 13,880.56 428.37 162.06 14,470.99 7,542.78 198.89 767.81 204.10 2,561.12 691.49 0.00 11,966.19 Dec '07 12 mths 2,076.43 2,504.80 25.50 21,927.23 1,422.95 20,504.28 276.54 434.33 21,215.15 11,380.05 301.37 1,152.12 297.34 3,857.48 985.31 0.00 17,973.67 Mar '09 15 mths 2,964.94 3,241.48 25.32 18,462.34 693.22 17,769.12 199.73 19.47 17,988.32 9,003.97 244.34 936.30 254.40 3,737.52 814.36 0.00 14,990.89 Mar '10 12 mths 2,797.70 2,997.43 6.98 Dec '06 12 mths Dec '07 12 mths Mar '09 15 mths Mar '10 12 mths

Expenditure Raw Materials 6,170.98 Power & Fuel Cost 168.74 Employee Cost 591.32 Other Manufacturing Expenses 191.82 Selling and Admin Expenses 2,010.10 Miscellaneous Expenses 429.09 Preoperative ExpCapitalised 0.00 Total Expenses 9,562.05 Dec '05 12 mths Operating Profit PBDIT Interest 1,583.71 1,801.72 19.19

PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

1,782.53 124.45 0.00 1,658.08 44.04 1,702.12 294.00 1,408.10 3,391.08 0.00 1,100.62 159.62 22,012.4 4 6.40 500.00 10.47

2,307.56 130.16 0.00 2,177.40 -0.21 2,177.19 321.80 1,855.37 3,881.00 0.00 1,325.48 185.90 22,067.76 8.41 600.00 12.34

2,479.30 138.36 0.00 2,340.94 1.67 2,342.61 417.14 1,769.06 4,423.41 0.00 1,976.12 355.50 21,774.63 8.12 900.00 6.61

3,216.16 195.30 0.00 3,020.86 48.53 3,069.39 572.94 2,500.71 6,593.62 0.00 1,634.51 277.79 21,798.76 11.47 750.00 9.45

2,990.45 184.03 0.00 2,806.42 43.97 2,850.39 648.36 2,202.03 5,986.92 0.00 1,417.94 238.03 21,816.87 10.09 650.00 11.84

Analysis according to Profit and Loss Account:

There has been a constant increase in Sales from 2005 to 2009 but decrease in sales figures is seen in 2010.

The expenditure has been on increase until in 2010 there has been a decrease in the expenditure. There was less demand so there was decrease in production and net sales.

Gross Profit has been increasing constantly and so is the trend seen for Operating profit figure with a small decline in 2010.

PBT shot up abruptly from 1.00 in 2005 to 1.35 in 2006 but after that there has been a steady growth. The increase in PBT is showing a direct relationship to the growth in Sales.

But PAT has been increasing constantly from year 2005 to 2009 and a small dip in 2010. This difference between the growth pattern of PBT and PAT can be attributed to Extraordinary items whose value is much more in 2006 as compared to 2005. Therefore PAT has increased to 1.13 only in 2006 from 1.00 in 2005. Again the value of Extraordinary items decreased in 2009, therefore the PAT value increased from 1.26 in 2007 to 1.45 in 2010.

There has been a steady increase in the value of Dividends paid till year 2007 after which there has been a decline from 1.8 in 2007 to 1.19 in 2009. This may be due to the fact that since total debts has increased, management has decided to pay lower dividends in the current year

Overall Assessment
The company has high debts in the current year signifying that it is highly leveraged. The company has a Net Current Liability. It means that it is making money out of the non-interest bearing outstanding of its suppliers. The company is generating huge amount of income which has been increasing at a constant rate.

The Earnings per Share (EPS) is showing a constant increasing rate signifying that the company is generating high profits at a steady rate.

Segment wise there has been a increase in personal product consumption which has taken up some of the market share of food.

TREND ANALYSIS
Trend Analysis is done to compare the position of the company over a period exceeding two years. The method is quite simple. Here the farthest year figure is taken as 1.00 and all successive years figures are accordingly indexed. The utility of the tool lies in the fact that while two years comparison may provide indication of growth, it may not lead to a conclusive judgment and therefore it becomes necessary to confirm the findings of horizontal analysis through trend analysis over a longer period. In our case, the period is taken from Dec 2005 to Mar 2010.

CASH FLOW

------------------- in Rs. Cr. -------------------

Dec '05 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 1604.47 2018.13 386.16 -2748.25 -343.96 698.99 355.03

Dec '06 12 mths 1861.68 1594.82 -197.95 -1344.73 52.15 364.79 416.94

Dec '07 12 mths 2184.53 1680.11 1023.76 -2921.34 -217.47 418.33 200.86

Mar '09 15 mths 3025.12 2028.65 878.19 -1330.36 1576.49 200.86 1777.35

Mar '10 12 mths 2707.07 3432.37 -1137.46 -2180.32 114.59 1777.62 1892.21

ANALYSIS
Net profit before tax showed a regular increase over the years from 2005 to 2009 but there is a decrease in 2010 primarily due to lesser investment and lesser net sales. Although there was a decline in the Net profit before tax but in 2010 Net Cash from operating activities was on rise. This shows that HUL have invested heavily on advertisement due to peer pressure i;e P&G. In 2010 the opening Cash and Cash Equivalents is on heavy rise which shows that the closing stock in 2009 was high. So the Net sales in 200910 was low

CURRENT & QUICK RATIOS

Overall analysis:
1. HUL is a very strongly solvent company. Institutions and banks will compete with each other to lend to the company on the slightest indication to borrow. 2. HUL is efficiently using the resources which have been provided by its suppliers. The working capital management is impressive. 3. Return on Investment as depicted by the RONW and ROCE ratios is very high. This means that the company is in a strong position and in a favorable position for all stakeholders. 4. The market capitalization of the company has increased significantly from the previous year which indicates the positive sentiment of investors regarding the company. 5. A large part of the companys expense is selling expense which indicates the nature of the FMCG industry in which HUL operates, where advertising plays a very big role.

Analysis of auditors report:

1) HUL has been audited by the auditing firm Lovelock and Lewes, Chartered Accountants, Mumbai. 2) The auditors have verified that HUL is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. 3) According to the auditors, the company is managing its inventory effectively by maintaining proper records and physically verifying the inventory. 4) Auditors have also stated the internal audit system of the company is appropriate according to its size and nature of business. 5) The auditors verify that the company is generally regular in depositing its dues like Income Tax, Wealth Tax, Customs Duty, Excise Duty, Provident Fund etc.

6) The auditors state that the company has not come out with any Public issue during the financial period audited by them 7) The auditors also confirm that the company has not made any losses in the said financial year.

Accounting Policies Analysis

Basis for preparation of accounts
The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

Fixed Assets
Fixed assets are stated at cost less depreciation except in the case of certain Land and Development in the Tea Estates Division shown at revalued amount. In Tea / Coffee estates, the cost of extension planting of cultivable land including cost of development is capitalized.

Depreciation is provided (except in the case of leasehold land which is being amortized over the period of the lease) on the straight line method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. However,

- Certain employee perquisite-related assets are depreciated over four to six years, the period of
the Perquisite scheme. -Computers and related assets are depreciated over four years. -Certain assets of the cold chain are depreciated over four / seven years and - Motor vehicles are depreciated over six years Assets identified and evaluated technically as obsolete and held for disposal are stated at their estimated net realizable values.

Goodwill and other Intangible Assets

Goodwill and other Intangible assets are amortized over the assets useful life not exceeding.

Investments
Investments are classified into current and long-term investments. Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments.

Inventories
Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Employee related Liabilities

Contributions to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to the profit and loss account as incurred. The Company also provides retirement / post-retirement benefits in the form of gratuity, pensions, leave encashment and medical. Such benefits are provided for based on valuations, as at the balance sheet date, made by independent actuaries.

Swot Analysis
1. Strong and well differentiated brands with leading share positions. 2. Distinctly placed products provide reach to every segment of society. 3. Consumer Understanding and systems for building consumer insight. 4. Integrated supply chain and well spread manufacturing units. 5. Distribution structure with wide reach, high quality coverage 6. Access to Unilever global technology, capability and sharing of best practices from other Unilever companies
7. Well placed to take advantage of growth in rural India and lower strata of the society

through Shakti

8. It can introduce products from its parent company in order to cater to the changing

consumer tastes and opportunities in food sector. 9. It has the potential of being a market leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries.

Strength HLL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The new sales organization named 'One HLL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HLL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Project Shakti - Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos. HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and hence, are able to reach the same wavelength as of the common man in village. Apart from product reach, the initiative also creates brand awareness amongst the lower strata of society. This has brought about phenomenal results. Weaknesses HLL's market dominance, originating from its extensive reach and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HLL's strategy remained focused on creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it. HLL's weakness was its inability to transform its strategies at the right time. They continued with the same old strategy which helped them gain profits but were not genuine in this changed environment. HLL's risk aversion and market myopia led to stagnation of business, and ferocity of competition forced it into a defensive mode. Lack of pricing power in core business and absence of growth drivers have put HLL on a deflationary mode.

Opportunities India is one of the world's largest producers of FMCG goods but its exports are miniscule as compared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HLL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HLL grow its consumer base and henceforth the revenues. Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities for HLL to diversify its brand and strength its food division. It could look at introducing products from its parents stable like margarines and could also look at expanding its Knorr range of products.

Well-placed to take advantage of future FMCG Growth - HLL reach out 80% of 207 million households in the country through various brands. It has a very well-defined product portfolio spread across many product categories. They can expand horizon into more and more countries. Untapped markets in Ayurveda medicines and other such consumer products.

Threats:

Reduced dependence on cigarette business. Unfavorable raw material prices due to inflation, reducing profitability. Heavy onslaught of competition in the core categories from emerging players like ITC resulting in higher advertising expenditure. Counterfeit products in rural areas and small towns. Reduction in income of consumers due to inflation.

CHAPTER 4
CONCLUSION AND RECOMENDATION

With its long and luminous history, HUL is Indias true pride. It is a company which the customers in rural as well as urban areas relate to. This explains the deep penetration of HUL in Indian market. Past few trends may be disturbing but there have been multi facets to the decrease in profits. The future of HUL is demanding new and high level innovations so as to cope with increasing

competitions. However, HUL is well equipped with all that is needed do this Indian Giant.

the motto of Hindustan Unilever Ltd is to encourage their employees irrespective of success and failure. They combine the efforts on building strong corporate relationships which in turn proves beneficial for the functioning of the company. The most important thing in life is not to capitalize on your successes - any fool can do that. The really important thing is to profit from your mistakes.Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and

redefining the way current channels are serviced. In the process it is converging

product availability, with brand communication and brand experience.

TRENDS AND FUTURE PLANS:

HUL has been working since 1912 striving to be a multilocal multinational. They reflected national priorities over the years and remained committed over the years. They have adopted good company policies which have helped them gain edge over their competitors such as: Developing and using relevant technology Generating productive employment Adding value to agriculture Sustaining export performance

IN todays period, for the quarter ending June 2007, HUL has posted a growth of 13% in net sales to reach Rs. 34.31 billion. The profits have been even better off, with PAT growing at 24.4% to reach 4.72 billion. The company is on a cost cutting spree with reduced expenditure on advertisement by 2.7%. FMCG BSE index is above 2600 points. HUL is now relying more on tried and tested marketing models such as the 6P model, which focuses on getting right the product, price, package, proposition, place and promotion to attract a consumer, to expand the market and outpace competitors. In a volatile cost and consumption scenario, there are far quicker changes in the way consumers respond to pricing, place and promotion, while changes to product and proposition typically have a longer cycle time. Recent trends show that niche and discretionary categories are no longer making it to the shopping basket. An Indian consumer averaged 130-140 shopping trips a yearthe economic slowdown took a toll on this also as she was forced to make the packs last longer. But at the same time, data crunching at HUL threw up some paradoxical trends. The paradox is further accentuated for a national player such as HUL, with the northern and eastern regions showing signs of down trading (a trend whereby consumers switch to cheaper alternatives in a difficult economic situation), while the south shows few signs of this. And we are being far more nimble at the speed and pace at which we are acting on that information, says Vittal. The complexities are reflected in the contrasting views of analysts tracking HUL. Analysts Mahesh Nandurkar and VivekMaheshwari of brokerage firm CLSA Asia Pacific Markets, in a research report immediately after the results were announced had announced an outperformer rating. Anecdotal evidence suggests that restocking (as opposed to destocking) has already begun in categories where price cuts have been taken, which could improve revenue growth in FY10, the report said. Credit Suisse Securities (India) Pvt. Ltd is also bearish about HUL and the consumers goods market in India. In a research report on 11 May, their analysts GovindrajanChellappa and Rajasa K. wrote, The FMCG (fast moving consumer goods) market is likely to slow down from high teens growth to low teens (it probably has already). HULs core categories (soaps and detergents) will likely slow more than the rest due to higher penetration levels. In this context, we are most concerned about HULs share loss in PP (personal products). Unless HUL manages to stem the loss, especially in oral care and soaps, deceleration in sales growth could be significant.