small actions, big difference

Hindustan Unilever Limited

Presented By-

Bishnu Prasad Sharma 10DF004

Subhajit Bhattacharya 10DF005

Silvee Kamboj 10DF006

Brief Introduction of HULProductsMarket Shares in Different SegmentsConsumptive & Sustainable GrowthFavorable FactorsBright Future AheadConclusion

The journey began in 1888 India’s largest FMCG CompanyTouching the lives of two out of three

Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages

The company’s Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010)

Works to create a better future everyday

To inspire people to take small everyday actions that can add up to a big difference for the world

Trying to develop new ways of doing business to double the size of the company while reducing the environmental impact

Value creation for the shareholders

Operates through five segments – Soaps & detergents, Personal products, Beverages & Foods & Ice creams, Exports and Other operations

Six brands i.e. Wheel, Surf Excel, Lifebuoy, Lux, Brooke Bond, Fair & Lovely with net sales more than INR 1000 Crores

Together Personal Products and Soaps and detergents which constitutes the HPC sector contribute 71% of net sales and 82% of operating profit

Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona

Laundry:- Surf Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :- Vim

Disinfectants:- Domex, cif

Foods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread

Ice-cream:- Kwality Wall's

Bewerages:- Tea:- Brooke bond, Lipton, taj mahal

Coffee:- Brooke bond ,Bru

Oral-Care:- Pepsodent and Close-up

Deo spray:- Axe and Rexona

Water Purifier:- Pureit

Ayurvedic Personal & health care:- Ayush

Soaps & Detergents

HUL commands 39% market share in this category

HUL is followed by 16% of P&G and 18% of Ghari brand detergent powder

Packaged Food Category

HUL has a market share of 60% in this category led by its Knorr brand

Branded Tea Segment

HUL commands 16-17% in this segment

Coming only second to Tata Global Beverages which occupies 20% market share

Toothpaste Segment

Colgate-Palmolive is the leader with 50% market share

HUL is second with around 28%Close-Up has 17% and Pepsodent

has 11% in this

HUL has displayed its ability to effect price hikes and avoid the impact of inflation in major segments

It boosts the positive outlook on the stock The recent moves to dispose its non core

assets has given it a short term upside According to the retail chains the

acceptability of the products of HUL is much more than any of its rivals

In the recent past HUL has initiated a price increase in soap portfolio

120 gm Lifebuoy – 6.7% hike 75 gm Liril – 5.2% hike 75 gm Dove – 3.3% hike 80 gm Pears – 3.8% hike plus Weight reduction on Lux from 110 gm to 100 gm

All these price increase has not played any deterrent role in the sales volume of the products

Growing markets responsibly

Ensuring sustainable practices in operations

Building a good reputation through responsible leadership

Monsoon is 4% higher than normal till September 2010

FMCG Companies will benefit from good harvesting that will cool down food inflation

The FMCG Sector has become more attractive after the global meltdown to the investors

HUL has not gone anywhere in terms of share price in the last ten years and given a CAGR return of 2.43% in that period

For the past one decade the return has not been exciting

In the present scenario HUL with its unique supply chain management and ability to penetrate deeper into the rural areas has given the company an edge over its competitors

The company is going to triple its outlets by 2012-13 to become the biggest rural player in the world

It has reported a topline growth of 7% for Q1FY11

Sales 17,674.10

Operating Profits 2,482.62 Financial Expenses 7.47 Depreciation 191.94 Adjusted PAT 2156.63 Equity Capital 218.21 Promoter Holding (%) 52.01 Inst. Holding (%) 29.6

Though HUL is not considered an Wealth Creator anymore but its share price staged a comeback in the last few quarters

The dividend yield of the company is 2.10 % at present

Looking at the business volume and market shares, in the present situation adding HUL to your portfolio with a long term perspective is likely to provide it with stability