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HISTORICAL SAGA OF

HINDUSTAN UNILEVER
LIMITED

UNITEDWORLD SCHOOL OF
BUSINESS
KOLKATA
SECTION-C
GROUP MEMBERS
• ABHISHEK DAS
• MONIKA AGARWAL
• ABHISHEK SARKAR
• PRASUN GHOSH
• PRITHIRAJ SANYAL
• ARINDAM CHOUDHURY
• TANMAY KUMAR PATRA
• JAGMOHAN SINGH WARAICH

GROUP 3.3
INTRODUCTION

• Hindustan Lever Ltd (HLL) is India's


largest Fast Moving Consumer
Goods (FMCG) company. These
products are manufactured over 40
factories across India and the
associated operations involve over
2,000 suppliers and associates.
Hindustan Unilever - a 75year history
~ 15,000 employees
Population 1027 Mln • ~ 1,200 managers
5,545 Towns 2.5 Mln outlets • • ~ 2,000 suppliers & associates

6,38,000 Villages 5.0 Mln outlets • •• ~ 75 Manufacturing Locations
• ~ 45 C&FAs, 4,000 Stockists
• • •
• •
• • ~ Total Coverage 6.3 Mln Outlets
• •
• • • • • • ~ Direct Coverage 1 Mln outlets
• • •
• •

• •
Turnover $ Mln • • Market Cap $ Bln

3473 • • 11.5

••
• •
847 3.3
631 540 476 388 361 323 308 218 2.1
1.5 1.3 1.0 0.9 0.7 0.7 0.6

HUL Colgate
Nestle Tata
Dabur
Tea Marico Britannia Godrej GSK P&G
VISION

 To earn the love and respect of


India, by making a real difference to
every Indian.

THE LEGEND BEGINS…
ØIn the late 19th and early 20th century Unilever used
to export its products to India.
ØThis process began in 1888 with the export of
Sunlight soap, which was followed by Lifebuoy in 1895
and other famous brands like Pears, Lux and Vim soon
after.
ØIn 1931, Unilever set up its first Indian subsidiary,
Hindustan Vanaspati Manufacturing Company, followed
by Lever Brothers India Limited (1933) and United
Traders Limited (1935).
ØThe three companies were merged in November
1956 and the new entity that came into existence after
merger was called as Hindustan Lever Limited.
ØHLL offered 10% of its equity to the Indian public, and
it was the first among the foreign subsidiaries to do so.
OVER THE YEARS
Product innovation, 19th century

style:
• In the early 1870s, they become
interested in a new product made
from beef fat and milk – margarine
– which, they realise, could be
mass-produced as an affordable
substitute for butter.

1900’s

New focus on raw materials


• Competition and a sudden sharp rise in the


cost of raw materials leads many to set up
associations, promoting their interests and
defending themselves against supplier
monopolies.
• With supplies of oils and fats struggling to meet
the demand created by fast growing soap
and margarine production, the companies
that will one day become Unilever focus on
securing stable sources of raw materials.

1930-1960
1888, less than four years after William Hesketh Lever
launched Sunlight Soap in England, his newly-founded
company, Lever Brothers, started exporting the
revolutionary laundry soap to India. By the time the
company merged with the Netherlands-based Margarine
Unie in 1930 to form Unilever, it had already carved a niche
for itself in the Indian market. Coincidentally, Margarine Unie
also had a strong presence in India, to which it exported
Vanaspati (hydrogenated edible fat). 1933
- Incorporated on 17th October, under the name of a Lever
Brothers (India) Pvt., Ltd. (LBIL) was the wholly owned
subsidiary of Unilever Ltd. London, UK
1956-A MILESTONE
qOn 27th October, the Co. was converted
into a Public Ltd. Co., Hindustan
Vanaspati Mfg. Co. Pvt. Ltd., William
Gossage & Sons (India) Pvt. Ltd. and
Joseph Crosfield & Sons Unilever
Ltd. were amalgamated with LBIL and
the name was changed to Hindustan
Lever Ltd. From 23rd October
onwards activities of subsidiary Co.
were taken over by its holding Co.

1976
• The company had set up plants at
Taloja in Maharashtra for the
manufacture of ossein and di-
calcium phosphate.


1979
• In October, the company set up a
new industrial undertaking at
Haldia for the manufacture of
sodium tri-polyphosphate,
phosphoric acid and sulphuric
acid.

1983-1988
vA new plant for synthetic detergents in
Chindwara district of M.P commissioned Co.
took on lease a detergent and toilet soap
factory at the request of Punjab govt. owned
by a joint sector Co. Stephans Chemicals
Ltd.
v
vLux toilet soap, Lifebouy Personal and Breez
soaps launched.
v
vCompany in collaboration with National
Starch Corporation USA, undertook to set up
a new facility at Pondicherry for the
1989
qSynthetic Detergent plant at
Sumerpur in UP & Toilet soap plant
in Orai in UP were commissioned.
qCracking catalyst plant at Haldia
commissioned.
qVegetable oil plant commissioned at
Kandla free trade zone.

THE LEGEND CONTINUES
vThe liberalization of Indian economy in 1991 and subsequent
removal of the regulatory framework allowed HLL to explore every
single product and opportunity segment, without any constraints on
production capacity.
vThe 1990s witnessed a string of crucial mergers, acquisitions and
alliances.
vIn 1992, the erstwhile Brooke Bond acquired Kothari General Foods,
with significant interests in Instant Coffee.
vIn 1993, it acquired the Kissan business from the UB Group and the
Dollops Ice-cream business from Cadbury India.
vIn one of the most talked about events of India's corporate history,
the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL,
effective from April 1, 1993.
vIn July 1993, Brooke Bond India and Lipton India merged to form
Brooke Bond Lipton India Limited (BBLIL).
vThe Company entered into joint venture agreement with Lakme
Lever Ltd. to undertake the manufacturing and distribution of color
cosmetics and other personal care products.(1994)
v
1998
• Unilever set up the Hindustan Vanaspati Manufacturing
Company, its first subsidiary in India, and established two
more subsidiaries, lever Brothers India Ltd. and United
Traders Ltd.

• Hindustan Lever Ltd (HLL) has signed the Fuel Supply


Agreement (FSA) with public sector Indian Oil Corporation
(IOC) for the entire fuel and lubricant requirements of its
manufacturing unit in Orai.

• HLL has a world-class information technology infrastructure


to enable the businesses to respond faster and perform
better.

• Hindustan Lever Ltd (HLL) has entered into job work


arrangements with some bought leaf tea factories in the
Nilgiris.
THE ERA OF NEW AGE 2000-
2009
• The Company has launched a `ready to drink' (RTD) tea brand
Lipton Ice Tea in Hyderabad with lemon and mango
flavors+ launched a new brand of toothpaste -- Aim. daily
washing needs Surf Excel Liquid detergent in the Indian
Market. International Lux Skin care range, "Sunscreen
Formula"HLL markets more than 110 brands, in 950 packs.
the products are sold in one million retail outlets, directly
covering India's entire urban population and about 50,000
villages+spree in deodorants a nascent Rs 75 crores market
seems to be growth by categorization+ relaunched Close-Up
as "Super Fresh Close-Up“+Lux Body Wash+Hindustan
Lever Ltd. has proposed to make an open offer for a 24 per
cent stake held by local shareholders in International Best
foods Ltd., which is now a subsidiary of parent Unilever.
Hindustan Lever Ltd's Pepsodent toothpaste has introduced
games at McDonald's outlets.


Key Innovations/Activations
MORE PRODUCTS
TO SUM UP
Broad-based double digit sales growth;
and ahead of market
Growth momentum sustained in
competitive categories of Laundry and
Shampoo
Looking forward:
Thrust on innovation, market
activation and appropriate A&P
spends behind brands will
continue, for driving growth.
Continued cost pressure from input
and freight escalation remains a
challenge
Cost savings and judicious price
THANK YOU

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