Supply Chain & Logistics Management

Project Report

HINDUSTAN UNILEVER LIMITED (HUL) a) Company profile Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been working its way into India since 1888 (Formerly known as Hindustan Lever Limited). The Group's principal activities are to manufacture and market consumer products. Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. b) Mission Unilever's mission is to add Vitality to life. They meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Their deep roots in local cultures and markets around the world give them strong relationship with consumers and are the foundation for their future growth. A key requirement is building in the quality expectations of their consumers into their products. To win consumers confidence and loyalty, they need to consistently deliver branded products of excellent quality. The Quality Policy describes the principles that everyone in Unilever follows, wherever they are in the world, to ensure that they are recognised and trusted for their integrity, the quality of their brands and products, and the high standards they set. c) Principles of the Quality Policy Putting the safety of their products and consumers first. HUL has stringent mandatory quality standards in place against which compliance is verified through regular audits and self-assessments. These standards ensure they design, manufacture and supply products that are safe, of excellent quality, and conform to the relevant industry and regulatory standards in the countries in which they operate. They actively engage consumers and customers, translating their needs and requirements into products and services, thus creating consumer value wherever they position their products. Quality is a shared responsibility Quality and consumer safety is the responsibility of every Unilever employee and Unilever demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all that they do, is a passion reflected in their brand development, manufacturing and customer service processes.

Supply Chain Analysis of HUL (FMCG Sector)

Supply Chain & Logistics Management

Project Report

d) Present position Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, with 35 brands, 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 tonnes and sales of nearly Rs. 21,736 crores (financial year 2011 - 2012). 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 16,000 employees, including over 1,500 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. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, 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, comprises of about 4,000 redistribution stockists, covering 6.5 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 Centres in India have over 200 highly qualified scientists and technologists, many with postdoctoral experience acquired in the US and Europe. Group operates through seven segments: Soaps and Detergents, Personal Products, Exports, Beverages, Foods, Ice Creams and Other. The products include home and personal care products, foods and beverages, industrial and agricultural products. Home and personal care products consists of personal and fabric wash, household, oral care, skin and hair care, deodorants, perfumery, colour cosmetics and baby care. Foods and beverages includes tea, coffee, cooking fats and oils, bakery fats, ice creams, tomato products, fruit and vegetable products, rice, salt, atta and rawa, marine products and mushrooms. Industrial and agricultural products includes specialty chemicals, bulk chemicals, fertilisers, animal feeds, seeds, plant growth nutrients, processed-tri-glycerides and agri commodities, yeast, leather, footwear and carpets, thermometers and plantations. Its brands are spread across 20 consumer product categories. Hindustan Unilever markets consumer goods throughout India. The company faces competition from international, local and regional players. The company derives 48.1% of its revenues from soaps and detergents, 31.0% from personal care products, 11.8% from beverages, 6.2% from packaged foods and the rest
Supply Chain Analysis of HUL (FMCG Sector) 2

Supply Chain & Logistics Management

Project Report

from ice creams, exports, and other products. As counterfeit trade increases, the company stands to lose on its brand equity and exclusivity.

Supply Chain Analysis of HUL (FMCG Sector)