K.E.S’s SHROFF COLLEGE OF

ARTS & COMMERCE

SUBJECT:

Corporate Finance-1

Class : S.Y.B.F.M.

Semester : 3rd

PRESENTATION ON : Hindustan Unilever Limited

(HUL)

Submitted to : Prof.Shweta Mishra

Academic year : 2011-12

Group members

NAME ROLL NO.

PRIYANK DARJI 06

HARDIK NATHWANI 27

SHASHANK PAI 28

SAGAR PANCHAL 29

DHARMIK PATEL 32

KUSH SHAH 39

SIDDARTH TAWDE 46

Introduction to HUL :

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

HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €40 billion in 2009 Unilever has about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to help people feel good, look good and get more out of life with brands and services that are good for them and good for others.  It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

History of HUL :

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG).

 Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions.

Sustainability :

Consumers: Making a difference through our brands

We believe that our brands can grow by addressing some of the most important social and environmental challenges facing the country today.This process has been carried out across all our key categories. Social and environmental considerations are now integrated with innovation plans for our major brands.We believe we can make a difference – through our brands and behaviour change campaigns in the space of nutrition and hygiene, and by providing consumers, from all income groups, access to a better life.

Employees: Building responsible leaders

Our employees are our biggest assets. Every step taken by our team boosts our growth exponentially. We endeavour to constantly strengthen our team's capabilities and develop innovative business solutions for a competitive, profitable, and sustainable future. We have clear action plans aimed at building responsible leaders, ensuring employee health and safety, and promoting sound human resource practices and policies. Over the years, our approach towards nurturing leaders has been very successful.

Society: Creating a positive impac t .

In 2009, HUL contributed INR 30 crores towards community related initiatives. Our contribution in 2009, went either to long-term community investment partnerships or to commercial initiatives, with mutual benefits for both our business and our partners.

The United Nations reports that people need a minimum of 50 litres of water a day for drinking and other basic needs. In India, more than 50%of the population lives on less than 10 litres of water a day. Approximately 70% of the total water is consumed by the agriculture sector. India is an agri-economy, and as its population grows, there will be an increase in water consumption by the agriculture sector. These issues are likely to be exacerbated by climate change, making access to water an issue for farmers and society.

Investors: Ensuring returns through sustainable growth

The company created history when it was listed in the Bombay, Calcutta, and Madras Stock Exchanges in 1956 and offered 10% of its equity to Indian shareholders. It became the first subsidiary of a foreign company in India to offer equity to the Indian public. Today, HUL shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

1. Rewarding shareholders

At HUL, we believe in creating long term value for our shareholders. HUL has a history of consistent dividend payment to its shareholders.  As on March 31, 2010, HUL has

over 3.5 lakh shareholders, of which more than 3.4 lakh are retail investors.

To mark the completion of the 75th year of our operation in India, HUL, in 2007, declared a special Platinum Jubilee Dividend to the shareholders at the rate of INR 3 per share.  A share buy-back scheme, announced in the same year, further strengthened the Earning Per Share (EPS) for the shares of the Company.  For 2009-10, HUL has declared a total dividend of INR 6.5 per share of INR 1 each.

2. Communication to shareholders

Effective communication of information is an essential component of corporate governance. It is a process of sharing information, ideas, thoughts, opinions and plans to all stakeholders, and promotes management shareholder relations. HUL regularly interacts with shareholders through multiple channels of communication, such as the results announcement, annual report, media releases, company website and other subject specific communications. Quarterly, half-yearly and annual results are published in leading newspapersThe Annual General Meeting of Shareholders is an important annual event where the shareholders of the Company come in direct communication with the Board of Directors and management. The Board engages with shareholders and answers their queries on varied subjects whether relating to financials, performance of the Company or otherwise.

Our vision :Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great

because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more

out of life with brands and services that are good for them and good for others.

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

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of people’s lives and in doing the

right thing. As our business grows, so do our responsibilities.

We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

The vision of Hindustan Lever is to integrate social, economical, and environmentalconsiderations into its business and brands. The company also aims to focus on climatechange, water, packaging and sustainable agricultural resources as our key sustainabilitythemes. The company also focuses on making global partnerships on nutrition andhygiene issues.

Purpose & principles :

Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility.

Positive impact  

We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. 

Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations  

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment.

Awards & recognition :

HUL ranked fourth in the ‘Top Companies for Leaders, 2009' (Asia Pacific region) and 10th place in the global rankings in a survey carried out by Hewitt Associates

Awarded Customer and Brand Loyalty Award by Business India & Business Standard in 2009

Project Shakti won the Silver Trophy at the EMPI-Indian Express Indian Innovation Awards, 2009

HUL's Goa factory won a Gold Trophy at the Greentech Awards in 2009 the manufacturing sector category for their outstanding work in Safety Management

CSR activities : 

Greening Barriers HUL's Water Conservation and Harvesting project has two major objectives:a). to reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew;b). help adjacent villages to implement appropriate models of watershed development.                       SHAKTI - Changing Lives in Rural   India  Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the iShakti community portal. In general, rural women in India are underprivileged and need a sustainable source of income. NGOs, governmental bodies and other institutions have been working to improve the status of rural women.

Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation. 

Health & Hygiene Education Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in 2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra, Orissa) with the objective of spreading awareness about the importance of washing hands with soap. The need for a program of this nature arose from the fact that diarrhoeal diseases are a major cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10 seconds and one third of these deaths are in India. According to a study done by the London School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene practices leads to high mortality rates in rural India.

Economic Empowerment of Women The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs and support in the areas of education, career and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic empowerment platform and the Foundation is an extension of this promise. The Foundation has renowned Indian women, from various walks of life, as its advisors. Among them are educationists, NGO activists, physicians. The Foundation is implementing its activities in association with state governments.

Conclusion :

The main objective of the project is to get the full knowledge of the products of the HUL and what are they doing to get the customer loyalty, to maintain there market. This is also to find the preferences of customer and there market knowledge and product information, information about the presence of the rivals of HUL and all the other options they have in the market. What are the techniques they adopt to know about the preferences and changing needs of the customer? HUL are also looking to tap the market in rural sector, so they also taking into consideration the needs and wants of the people there.

They are also studying the consumption habits of the rural people. Like most of them are daily wage earners or small peasants, so they are studying the buying patterns of them also.