PROJECT SHAKTI“A BUSINESS INITIATIVE WITH

SOCIAL BENEFITS”

SURENDER CHORASIYA

MBA II Sem

HUL-About the company

• Hindustan Unilever Limited (HUL) formerly known as HLL, is India's largest FMCG Public company formed in the year 1933.

• Head quarters : Mumbai• Unilever sells Foods and Home and Personal

Care brands in about 100 countries worldwide. • HUL is also one of the country's largest

exporters

PRODUCT PROFILEHome & Personal Care : 2 categories1. Detergents: all the detergents and dishwashers are covered in this. For

example,Vim, Rin, Surf Exel.2. Personal Products: this comprises of all the products related to personal

care. These are as follows: Oral: toothpaste and toothbrush ( Pepsodent, Close Up)Skin: soaps, talcum powder, fairness cream, body lotion, winter cream ( Pears, Vaseline, Fair & Lovely, Ponds’)Hair: Sunsilk, Clinic All Clear

Food : Kissan squashes and jams, Annapurna salt and atta Knorr, kwality walls, Lipton tea, Bru coffee.

Water purifier : Puriet Water Purifier

HUL & RURAL DEVELOPMENT• HUL linked the company’s core business with rural development

initiatives as it is mutually beneficial to both the society at large and for the company..

• Rural sales contribute around 40% to HLL’s overall sales• HUL has been proactively engaged in rural development since 1976

with the initiation of the Integrated Rural Development Programme in Uttar Pradesh.

• LIFEBUOY SWASTHYA CHETANA • adoption of hygienic practices among rural Indians and aims to bring

down the incidence of diarrhoea • It has already touched 84.6 million people in approximately 43890

villages of 8 states.

PROJECT SHAKTI• Project Shakti was launched in the year 2001 in

the Nalgonda district situated in Andhra Pradesh• OBJECTIVE : To create income-generating

capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness.

• 4,00,000 VILLAGES

States covered by Project shakti

HOW IT WORKS • Villages with a population of about 2000–3000 are

selected • Personnel from HUL approach SHGs• Selection of the Shakti Amma • HUL vouches for Shakti Ammas with banks for credit• one Shakti entrepreneur is appointed for one village & Villages that are about 2 kilometres apart from her village(satellite villages ).

PRICING AND PACKAGING

• Rural consumers are price sensitive• Sachets and small packs of premium products.• Price doesn’t exceed Rs.5 per sachet.• Lux at Rs.5,• Lifebuoy at Rs.2, • Surf Excel sachet at Rs.1.50, • Pond's Talc at Rs.5, • Pepsodent toothpaste at Rs. 5, • Fair & Lovely Skin Cream at Rs.5,• Pond's Cold Cream at Rs.5, • Brooke Bond Taaza tea at Rs.5.

Distribution

It is the combination of the 3 ways:• Door to door selling (11% margin on sales)• Sells from own home (11% margin on

sales)• Retailers (3% margin)• averages sales :• Rs. 10,000 - Rs. 15,000/month, • profit - Rs.1,000 per month

Future plans

• Project Shakti plans to extend to the states of West Bengal, Punjab and Rajasthan.

• Partnership with other non-competitor companies to sell their products through the Shakti network.

• Nippo, TVS Motor for mopeds, insurance companies for LIC policies.

issues

• Low margins .• Difficulty in acquiring finance• transportation • Low disposable income (dependence on monsoon)

Vision 2010

100,000Entrepreneurs

500,000villages

600 millionConsumers

Shakti shall reach every home in every village, create sustainable livelihood opportunities, and enhance the quality of life in rural India

Now SHAKTI has been extended 80,000 villages in 15 states with 45,000 women entrepreneurs & generating Rs.700-1000 per month to each women.

CONCLUSION• Project Shakti is enabling families to live

with dignity and in better health & hygiene, education of the children and an overall betterment in living standards.

• it creates a win-win partnership between HUL and the rural consumers for mutual benefit and growth.

Profile of Indian rural Economy

Sector %Agriculture 78.0Manufacturing 7.1Service 5.8Trade 4.4Others 4.3

Why all these program

To take people aware To increase the consumption.To increase the income.To increase behavior in – Awareness & living standard Lifestyle Self consciousness.

WH

Y S

HA

KTI

???• It was soon felt that HUL's sales and

distribution system which had protected it from competitors would be soon replicated by its rivals and to maintain its edge, the company had to increase its reach beyond the urban markets

• Carrying and forwarding agents(CFA)• more than 70% of India's population lived in

villages and made a big market for the FMCG industry

BE

NE

FITS

• Earnings about 7%, after 3% goes towards principal and interest

• Improves her per-capita income by about 50% to 100%

• 100,000 entrepreneurs by 2010

Thank you