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PESTEL/PESTAnalysisOfHindustanUnilever(HUL)|FreePESTELAnalysis

PESTEL/PEST Analysis of Hindustan

Unilever (HUL)
by adamkasi | Dec 18, 2015 | Companies | 0 comments

Hindustan Unilever is one of the fastest growing companies in India. It is present

in India even before independence. With headquarter in Mumbai; it has more
than 18000 employees and over 1800 business partners. It owns famous brands
Search
like Lux, Ponds, Vaseline, Lipton, Pureit etc in India. It owns 29 manufacturing
facilities and has revenue of around Rs. 30170 Crore (INR) in 2014-15. It is no. 1
in homecare, hair care, laundry care and skin care but no. 2 in oral care and
beverages. The products are aggressively marketed and known to be used by
two out of three Indians. (HUL, 2015)

Political
Indias deregulatory environment has helped MNCs in India to expand into
various products and services, after 1991 HUL also took advantage of this
situation and merged with Tata Oil Mills Company and Lakme Limited enabling
HUL to enter new markets of cosmetics and food oil of which it was not part
before and wanted to enter. Later on in 1994 it took over Kimberly Clark
Corporation in order to take over marketing of Huggies diapers and Kotex
sanitary pads. HUL does not support any political party or government by
funding its operations since it is a business entity and wants to restrict its
operations to that eld only, also it knows how sensitive people of India are in
terms of political alliances. However, such MNCs, due to large funds reserved for
helping the government in improving the livelihood of people they sometimes
tend to exert pressure on government to pass out a certain law thats favoring
them. (BUSINESS OVERVIEW OF HINDUSTAN UNILEVER)

Economic
In 2009 when the whole world faced a major economic crisis, Asian countries
were least hit due to their not-so-strong reliance on interest based investments.
When Unilever was making in most of the countries abroad it remained
protable in India although prots declined. Raw material sourcing is the rst
step of supply chain and uctuation in them could disturb the pricing of the
products. The brands that Unilever sells are everyday products so people are
sensitive to their pricing and constant price changes can put them o`. Chemicals
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and palm oil are the major raw material used and ination keeps eating the
bottom line for soaps and detergents which are formed from these raw
materials. India stands on lowest level when it comes to per capita consumption
on personal care products; HUL has been trying to change that perception for
years. In India HUL faces direct competition not only by MNCs but also local
producers who are successful to the extent that it is almost impossible to break
their market share and loyalty. (Wikinvest)

Social
HUL launched program Shakti for women in rural areas to empower them and
make them independent, earning their own livelihood and spending that income
on improving lifestyle of whole family. The project started o` with one woman
being selected from each village as Shakti woman who would buy Unilever
products from company representatives at a discount and sell these products for
a prot at her own village. Another initiative by HUL includes increasing
awareness among villagers about the importance of cleanliness through
Lifebuoy Hand washing Programme since 2010. Through Pureit it is providing
clean drinking water to millions of people. It has also controlled environmental
pollution by curtailing CO2 emissions, reducing waste products and usage of
water. HUL also promotes Equal Employment Opportunity to all and encourage
women to be a part workforce even after marriage and children and make it
easy for them to maintain a balance in their worklife and household
responsibilities, by opening daycares at o ces, providing exi timings and work
home facility.

Technological
For HUL technological development in India means more connectivity to people.
Now there are apps available which would inform the consumers when their
favorite brands are being restocked at their nearest supermarkets. For HUL it
has become easier to manage its large supply network and monitor the
inventory situation. Factories have been installed with automated operations
which have eliminated the errors that manual work could produce and also
increased the productivity and e ciency.

Environmental
HUL has been in highlight for breaching environmental laws of dumping
hazardous chemical on a nearby land endangering lives of citizens and
employees. This incident happened at Kodaikanal factory where Unilever was
accused of dumping and selling scrap of glass material containing Mercury, when
this was brought under light, HUL not only closed down the factory but also
launched investigation and tried to trace all the material that has been sold to
the dealer. The results of investigation showed that illegal selling of scrap
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Mercury did take place which is the breach in code of conduct however the
manufacturing process itself was safe as was duly audited by both the company
and relevant authority. The company then had to clean all the scrap waste from
the soil and o`ered to stop the contaminated water from down the valley
through placement of silt traps. They took permission from both Indian and U.S.
government to transport back the waste material to U.S. for further processing.
(Kodaikanal, India, 2015)

Law/Legal
HUL makes sure it adheres to all local laws of the state in which it is operating.
For example in Gujarat due to oods and drought the government put
restrictions on prices of all goods and services available in order to provide some
relief to people, HUL could not increase price of its brands despite of high cost of
production. Moreover at some states there are certain environmental laws which
must be followed and HUL has to abide by those. Basic laws are more or less the
same with slight variations and Unilever has to make sure that it does not violate
any laws due to negligence, thinking that same laws will be applied everywhere.

Bibliography
BUSINESS OVERVIEW OF HINDUSTAN UNILEVER. (n.d.). Retrieved December 15,
2015, from UK Essays: http://www.ukessays.com/essays/marketing/businessoverview-of-hindustan-unilever-marketing-essay.php
HUL. (2015). Hindustan Unilever Limited Factsheet . Retrieved December 15,
2015, from HUL: https://www.hul.co.in/Images/hul-factsheet_tcm1255436331_en.pdf
Kodaikanal, India. (2015, August). Retrieved December 15, 2015, from Unilever:
https://www.unilever.com/sustainable-living/what-matters-to-you/kodaikanalindia.html
Wikinvest. (n.d.). Hindustan Unilever. Retrieved December 15, 2015, from
Wikinvest: http://www.wikinvest.com/stock/Hindustan_Unilever_(BOM:500696)
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