Unilever Nepal (UNL) is a subsidiary company of Unilever ltd, which is operating

in 190 countries with more than 2B users of product each day. Since, the business
model of Unilever Nepal focuses on growth through sustainable living plan, I will be
exploring whether the company's business model is working efficiently or not through
the analysis of annual report published.
UNL is a blue chip company in the Nepali stock market that pays highest dividend to its
shareholders. It is the only blue chip company in manufacturing and production
category listed at NEPSE. Unilever Nepal Limited posted a net profit of Rs965 million in
the fiscal year 2016-17, which is 13 percent higher than in 2015-16. The five-year
distribution of the company's dividend indicates the trend of the growth of the value.
From FY2011/12 to FY2015/17, the company has distributed per share dividend of Rs
590, Rs 680, Rs 760, Rs 990, Rs 1,020 and Rs 1270 respectively. Observing a
competitive growth throughout the 25 years of operations in Nepal. The growth has
been consistent from FY 2005/06 to FY 2015/16,”. The company's annual sales grew
from Rs 1.4 billion to Rs 3.9 billion in this period. As per the financial report of the third
quarter of FY2016/17, UNL's earning per share (EPS) is Rs 348 and net worth per share
is Rs 2,479. Overall, what can be assessed is that the company is performing incredibly
well over the course of time to achieve its business model.
The future shall never be the same. The world is embracing IT and especially for Nepal
the political situation has never been much stable. So, the question is will Unilever be
able to improve revenue and profit in the uncertainties of politics, culture and social
conditions along with changes in technological improvement? Just in case, during major
blockade last year in Nepal, the quarterly report of unilever shows massive decline in
ROE, EPS and profit. But, this is a case of certain period affected by political situation.
Interestingly, the profits were high later during the year. So, ofcourse, changes in one
factor may reduce the revenue and profit. But, what makes Unilever ahead of the game
is that, UNL has been maintaining an impactful brand presence in Nepal by promoting
healthy living and positive social changes with its product use. UNL is the producer of
world-class brands such as Dove, Sunsilk, Fair & Lovely, Lifebuoy, Pepsodent, Clinic
Plus and Lux, among others. Its products are available in almost every location across
the country with special initiatives such as "Swasta Nepal” and "Lifebuoy: Help a
children reach 5”: Goal to change hygienic behavior through washing hand. UNL has
been maintaining an impactful brand presence in Nepal by promoting healthy living and
positive social changes with its product use. Moreover, currently UNL is embracing
technology to reduce up to 15% of plastic use in packaging, partnership with Facebook
and innovating to produce quality product such as Lifebuoy clini-care10 is a soap that
delivers ten times better germ protection than other leading products.
Furthermore, Unilever runs different social campaigns not out of compassion but for the
well-being of society and growth of business. "Sustainable living is the Unilever way of
working. The business model drives growth that is consistent, profitable, competitive
and responsible. In recent years, the company's focus is on conservation of water by
sustainable utilization of resources to tackle the global water scarcity. UNL has been
honored with Environmental Friendly Factory Award in 2074 BS for its environment
protection initiatives. Hence, in short, UNL sustainable living plan shows the company's
Hugh growth prospectus in revenue and profit considering the several changing
variables.
References
Pearce, J. A., Robinson, R. B., & Subramanian, R. (1997). Strategic management:
Formulation, implementation, and control. Chicago, Illinois: Irwin.
https://www.hul.co.in/about/introduction-to-unilever-nepal-limited/