OFFERING AT THE LOTUS FEET FEET

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Team

HINDUSTAN UNILEVER LIMITED

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Team

FMCG SECTOR

Presence Fourth largest sector in the economy Size - US$13.1 billion Strong MNC Presence Well established distribution network Competition between organized and unorganized

sector Low Costs of labour and Easy availability of key

raw materials

FMCG – MAJOR DOMESTIC PLAYERS

Domestic Players Britannia India Ltd (BIL) Dabur India Ltd Indian Tobacco Corporation Ltd (ITCL) Marico Nirma Limited

FOREIGN PLAYERS

Hindustan Unilever Ltd (HUL)Cadbury India Ltd (CIL)CargillCoca ColaColgate-Palmolive IndiaH J Heinz CoNestle India Ltd (NIL)PepsiCoProcter & Gamble Hygiene and Health Care

Limited

HINDUSTAN UNILEVER LTD

India’s largest FMCG Company Headquartered in Mumbai Over 700 million consumers More than 15,000 employees, including

1,300 managers More than 200 highly qualified scientists and

technologists

HUL – MISSION

MissionUnilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

SWOT ANALYSIS

Strong parentage and R&D, healthy cash coffers to support innovation

Strong position in most of the categories of its presence

Unmatched distribution network , a must to cater rural markets

Presence across price points to straddle across entire income pyramid

Healthy Shareholder Returns in the form of RoE and dividend yield

Native Know How

STRENGTHS

SWOT ANALYSIS

49% of HUL's sales come from detergents and personal wash

Increase in Ad Spending, which may affect the margins

WEAKNESSES

SWOT ANALYSIS

• Change in Rural India’s source of income

• Government Focus• Rural Market Potential

Growing opportunities in Rural India

• Favorable Demographics(demographic dividend)

• Increasing Consumer aspirations

Consumer sector on a growth trend

• Consumer expenditure in food sector rose by 13%

• Valued at USD240mn – packaged foods – 5%, 14%(g)

• Modern retailing gaining coverage

• zzzzzzzzzzzzzzzzzzzzzzOpportunity in Food Sector

OPPORTUNITIES

SWOT ANALYSIS

Losing market share in most of the categories , Matured and Growing

Stiff competition from local as well as MNC players

Receding pricing power

- Rural income is yet dependant on agriculture and in turn monsoon- Spurious Products

THREATS

HUL – PRODUCT PORTFOLIOSegment Sub-Segment Brand Comment

Household Care

Fabric Wash Market Share: 38%

Surf Patented Technology, Premium SegmentRin Largest Selling detergent barSunlight Unilever’s oldest, first brand WB, KeralaWheel Largest Selling Indian detergent

Dish WashMarket Share: 58% Vim First & largest selling dish washer barSurface Cleaning Domex

Personal WashMarket Share: 52%

Lifebuoy World’s largest selling Soap Lux Global brandDove Global Brand: Premium, Skin friendlyPears Premium SegmentBreeze Basic SegmentLiril Focuses on young female populationHamam South Indian Regional Brand – TN

Personal Products 

Hair care Market Share: 47%

Clinic Shampoo India’s largest selling shampoo (D,ND)Dove Global Brand: Premium, Hair friendlySunsilk Largest beauty shampoo brandAyush Herbal - Doing well in South India

Skincare Market Share: 52%

Ponds Global brand, First mover (1947)Fair & Lovely Patented Formulation, Asian brandLakme Skin Care Bought from Tatas, Salon Business

Vaseline Global brand, Monopoly in Indian Petro-JellyAviance Customized Personal care Solutions

HUL – PRODUCT PORTFOLIO

Segment Sub-Segment Brand Comment

Personal Products

ToothpasteMarket Share: 30%

Close-up India’s first Gel, Youth brand

Pepsodent Second largest selling toothpasteToothbrush    DeodorantsMarket Share: 32% Axe, Rexona Clear leader in deodorant segmentColour Cosmetics Lakme Natural ColorantsInfant Care Huggies

Food & Beverages 

Processed Foods

Kissan Jam Squeeze, KetchupKnorr Soups & Ready to CookAnnapurna Salt, Flour

Beverages

TeaMarket Share: 23%

3 Roses Mindsharp, Taj, Brooke Bond, Lipton -

CoffeeMarket Share: 45% Bru

Ice Cream & Bakery Products

Gelato, Quality Walls  

Pure-it    

Beauty and Wellness

  

Lakme Beauty Salons

Moving from products to Services in Premium segments

Ayush Therapy Centres

Moving from products to Services in Premium segments

PERSONAL WASH

SEGMENT: TARGET MARKET REASON TARGETED PRODUCT POSITIONING OF THE PRODUCT

PERSONAL WASH(ON THE BASIS OF SOCIO ECONOMIC FACTORS)

AFFLUENTINCOME >500000

HIGH MARGIN GROWING ,AND PREMIUM SECTOR

DOVE,PEARS PREMIUM PRODUCT APPEALING TO THE PSYCHOLOGY.LOW CHEMICAL& NATURAL FACTOR

ASPIRINGINCOME B/W 200000-500000

HIGH GROWTH POTENTIAL

LUX,HAMAM BOTH A PREMIUM AND SKIN CARE,BEAUTY FACTOR. BOLLYWOOD STARS PROMOTING THE PRODUCT.

STRIVINGINCOME <200000

BOTTOM OF THE PYRAMID.YET TO BE PENETRATED

LIFEBUOY,BREEZE BASIC & HYGIENE.AD SHOWING HYGIENE

INDIA - 2013

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