FINANCIAL STRUCTURE AND MANAGEMENT OF HINDUSTAN UNILEVER LTD

Group members
PURVI SETH POOJA SHAH RUCHI SHAH GITANJALI SHIVGAN NEHA VERMA JASHODHA TALESHA 37 39 41 49 57 65

INTRODUCTION
Hindustan Lever Limited , is India's largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps, detergents, as its products have become daily household name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited. The company was renamed in late June 2007 to "Hindustan Unilever Limited" to provide the optimum balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever". Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13,718 crores.

MANAGEMENT STRUCTURE
 Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group companies have about 15,000 employees, including 1200 managers.  The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the companys nationwide operations.

PRESENT STRUCTURE
 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 Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of nearly Rs.13718 crores. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is distributed among 360,675 individual shareholders and financial institutions.

Continued
 HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, Kwality Wall's are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe.

Continued
 HUL believes that an organization's 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. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India.

In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 plus villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme Endeavour's to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhea. It has already touched 84.6 million people in approximately 43890 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.

Profit & Loss account

Dec05
Dec06

Dec07

Mar09

Mar10

12 Income Sales turnover Excise duty Net sales Other income Stock Adjustments Total Income Expenditure Raw Materials Power & FuelCost Employee Cost Ors Mfg. Expenses Selling & Adm Exp. Misc. Exp. Preoperative Exp. Total Expenses Operating Profit 6,170.98 168.74 591.32 191.82 2,010.10 429.09 0.00 9,562.05 1,583.71

12

12

15

12

12,108.86 914.88 11,193.88 218.01 -48.12 11,363.77

13,189.70 945.68 12,244.02 512.60 129.97 12,886.59

14,937.88 1,057.32 13,880.56 428.37 162.06 14,470.99

21,927.23 1,422.95 20,504.28 276.54 434.33 21,215.15

18,462.34 693.22 17,769.12 199.73 19.47 17,988.32

6,687.30 180.79 642.81 187.37 2,328.51 541.52 0.00 10,568.30 1,805.69

7,542.78 198.89 767.81 204.10 2,561.12 691.49 0.00 11,966.19 2,076.43

11,380.05 301.37 1,152.12 297.34 3,857.48 985.31 0.00 17,973.67 2,964.94

9,003.97 244.34 936.3 254.40 3,737.52 814.36 0.00 14,990.89 2,797.70

Profit & Loss account

Dec05 12 PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax ExtraOrdinary Items PBT(Post Extra-Ord Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Per Share Data (Ann.) Shares in Issue (Lakhs) Earning Per Share Equity Dividend % Book Value (Rs) 22,012.44 6.40 500.00 10.47 22,067.76 8.41 600.00 12.34 21,774.63 8.12 900.00 6.61 21,798.76 11.47 750.00 9.45 21,816.87 10.09 650.00 11.84 1,801.72 19.19 1,782.53 12.45 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
Dec06

Dec07 12 2.504.80 25.50 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

Mar09 15 3,241.48 25.32 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

Mar10 12 2,997.43 26.98 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

12 2,318.29 10.73 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

Cash flow
Mar ' 10 Mar ' 09 Mar07 Mar ' 06 Dec ' 05 2,707.07 Profit before tax Net cash flow operating activity Net cash used in investing activity Net cash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 3,432.37 2,028.65 1,680.11 1,594.82 2,018.13 3,025 .12 2,184.53 1,861.68 1,604.47

-1,137.46

878.19

1,023.76

-197.95

386.16

-2180.32

-1330.36

-2921.34

-1344.73

-2748.25

114.59

1,576.49

-217.47

52.15

-343.96

1,777.62

200.86

418.33

364.79

698.99

1,892.21

1,777.35

200.86

416.94

355.03

Balance sheet
Mar10 Sources of Fund Equity Fund Share Application Money Preference Share Reserve & Surplus Loan Funds Secured Loans Unsecured Loans Total Uses of Funds Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block 3,581.96 0.67 1.419.85 2.881.73 0.67 1,274.95 2,669.08 0.67 1,146.57 2,462.69 0.67 1,061.94 2,375.11 0.67 989.61 -144.65 277.30 2,582.85 25.52 63.01 2,482.79 37.13 135.47 1,527.10 24.50 32.44 2,795.42 2,361.90 218.17 2,364.68 217.99 1,842.85 217.75 1,220382 220.68 2,502.14 220.12 2,084.84 Mar09 Dec07 Dec06 Dec05

2,161.44

1,606.11

1,521.84

1,400.08

1,384.83

Balance sheet
Mar10 Capital Work in progress Investments Net Current Assets Current Assets, Loans & Advances Less: Current Liabilities & Provisions Total Net Current Assets Misc. Exp. Not Written Total Notes Book Value of Unquoted Investments Market Value of Quoted investments Contingent Liabilities Number of Equity Shares Outstanding (Lacs) 466.46 953.58 468.49 21816.87 317.30 71.09 417.26 21798.7 6 1,364.36 287.83 494.46 21774.63 2,346.08 170.29 476.40 22067.76 1,896.19 364.81 468.33 22012.44 5,818.89 6,935.52 1,116.63 2,582.85 6,040.0 4 5,968.0 6 71.98 2,482.7 9 3,681.12 5,302.30 -1,621.18 1,527.10 3,555.08 4,792,.23 1.237.15 2,795.42 3,101.67 4,371.36 -1,269.69 2.361.90 273.96 1,264.08 Mar09 472.07 332.62 Dec07 185.64 1,440.81 Dec06 110.26 2,522.22 Dec05 98.03 2,148.72

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