Introduction to HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs.19, 400 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44 billion in 2011. Unilever has about 52% shareholding in HUL. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. It estimates that two out of three Indians use its many home and personal care products, food and beverages.

Company structure
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has about 15,000 employees, including over 1400 managers The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the companys nationwide operations.

Board of Directors
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholders interest.

Management Committee
The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board.

Our history
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. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the

companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of Pureit water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2,000 crore sales milestone in 2008. On 17th October 2008 , HUL completed 75 years of corporate existence in India.

HUL at a glance
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands touch the lives of two out of three Indians. They endow the company with turnover of Rs.19, 400 crores (for the 12 month period April 1, 2010 to March 31, 2011). The mission that inspires HUL's more than 16,000 employees, including over 1,500 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.

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 peoples 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.

HUL uses out-of-home to push foods business

The countrys largest fast moving consumer goods (FMCG) company, Hindustan Unilever (HUL), is using out-of-home aggressively to grow its foods business. Out-of-home here means initiatives undertaken beyond just selling products. The move comes at a time when the over $50-billion Unilever is looking to double its turnover in 10 years. Foods business, which includes packaged foods, beverages, ice creams, etc, would have to grow at 50 per cent per annum, Unilever Chief Executive Officer Paul Polman had said during his India visit last week, if the objective of doubling the turnover had to be achieved. HULs foods business is growing at 15 per cent per annum, according to analysts tracking the company. It constitutes 17 per cent of the companys Rs 17,524-crore turnover, according to its 2009-10 Annual Report. In contrast, Unilevers global foods business constitutes 52 per cent of its turnover, growing at 10 per cent per annum. Polman had said out-of-home had a key role to play in galvanising its foods business in India. HUL Managing Director Nitin Paranjpe agreed: Out-of-home is a very significant opportunity. And we will look to leverage that. The company has taken few steps in that direction, with the launch of three Bru cafes in three cities, including Mumbai, recently. Bru is the coffee brand of HUL. The move, say FMCG analysts, is to build traction for the brand on the ground, something Paranjpe doesnt deny. He said, We will systematically approach the business of foods, enter categories, take up initiatives, where Unilever has an advantage and where we will be able to build the market for the longterm. Even as it steps into the cafe space, HUL is also ramping up its Swirls ice-cream parlours. At the moment, we have 130 of them, said Paranjpe. We will add rapidly to the number in 2011, possibly one a week. On packaged foods, while there is no plan to do anything out-of-home, the company has been using experiential marketing tools to increase awareness and improve sampling. During the launch of Knorr soupy noodles last year, vans dishing out portions of it were posted at different locations in cities such as Mumbai. As HUL attempts to push its foods business using out-of-home, analysts say the success of it will depend on how much business these outlets can generate. Paranjpe does not get into the details of how much these outlets, especially the Swirls parlours, are generating at the moment. But the service model has been a difficult one for other FMCG companies. Amul, for instance, is looking to discontinue its pizza and ice cream parlours. According to Shripad Nadkarni, director at Marketgate Consulting, the skill sets for a retail business are totally different as opposed to an FMCG business. Quite often, the reason for

stepping into the retail or out-of-home space is more brand-building than for commercial purposes, he said.

About OOH
OOH is an arm of HUL that caters to the on-premise f&b requirements, using state-of-the-art vending machines, with branded product mixes enabling people to sip their favorite beverages when outside the comfort of their homes. So whether one is at work, or at a mall / multiplex, or in a college cafeteria, or simply waiting at the airport / railway station, they can enjoy their favourite drink at the push of a button. We also supply our products directly to caterers, confectionary manufacturers, ship chandlers and others to meet their bulk requirements.

We would like you to get in touch with us for any of your requirements. We would also be happy to respond to any of your queries or clarifications. We may provide references if you so require.

How we work
We employ more than 6000 R&D professionals in six global research centers, 13 global product development centres and regional & country development & implementation centers. Our aim: making a difference Our R&D mission is to 'differentiate, deliver, sustain and grow'. This means creating distinctive new products with proven benefits that address real consumer needs. By doing this well, we will also contribute to Unilever's sustained growth. Setting the R&D agenda The process starts with defining our R&D agenda, taking into account our brands' and categories' strategies as well as cross-category areas such as key consumer benefits and science and technology platforms. These broad research areas are defined by Unilever's Executive Board. Global research Our scientists scout for new ideas and emerging science, integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects. Global product development Our global product developers design products, integrating scientific findings (for example, a new functional ingredient) with other criteria including product performance, stability, packaging and cost. Regional/country development & implementation Our regional development and country implementation teams roll out innovations and renovations in the regions, countries and factories. This can include adaptation of a product formulation to use specific local raw materials, allow factory-specific production processes to take place, or conform to local nutrition or regulatory requirements. The regional and country teams also feed back local insights (for example, local taste preferences) to the global product development teams. Working with external partners Across the R&D process, we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology, inside and outside of Unilever. One example is our Centre for Molecular Informatics. This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science, business and consumers alike.

Our vision
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.Sustainability is at the heart of our business, and through our brands, we seek to inspire people to take small everyday actions that can add up to a big difference for the world. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers a truly multi-local multinational. Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners.

Our purpose
At the heart of the corporate purpose, which guides us in our approach to doing business, is the drive to serve consumers in a unique and effective way. This purpose has been communicated to all employees worldwide.

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.

Safety & environmental assurance centre

Safety is an essential element of a successful and sustainable business. We take our responsibility to protect our consumers, our employees and the environment we live in very seriously. Safety comes first Our dedicated Safety & Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes. Safety decisions are made independently of commercial considerations. Wide-ranging expertise The centre is based at Colworth, UK, and is responsible for carrying out the assessment and approval of product and supply chain technology design, considering consumer safety, occupational safety and the environment. We have experts in chemistry, environmental science, mathematics, statistics, modelling, medicine, microbiology, occupational & process safety, physical hazards and toxicology. Tackling complex issues Our multidisciplinary project teams tackle complex issues, and highly challenging projects, working in partnership with R&D colleagues from the initial stages of product development and scientific research to approve new ingredients, technologies & processes, applications & uses and novel delivery routes. World-class reputation Safety is about making decisions on what risks are acceptable and what are not. Risk Assessment is the core process used to identify hazard, quantify exposure and thereby determine potential risk. Based on Risk Assessment, a risk management decision can be made including any control measures necessary for the safe use of ingredients and processes for new and existing Unilever products. Our team has gained a world-class reputation and plays a key role in developing international methods and approaches in this area. Working with others Our scientists interact with policy makers, regulators and other authorities, contributing to the development of safety legislation. We also work with a variety of organisations, companies and trade associations, using our up-to-date scientific knowledge to promote and improve standards in consumer safety, occupational safety, and the environment. The aim is to assure the safety of consumers, customers, employees and the environment everywhere we operate.

Consumers: Making a difference through our brands

Making a difference through our brands Despite advances in science and increasing prosperity, millions of people still lack access to basic sanitation, nutrition and healthcare. We believe that our brands can grow by addressing some of the most important social and environmental challenges facing the country today. In 2005, we started to embed the sustainability agenda into our brands by using a process called Brand Imprint. It is a rigorous, diagnostic process that analyses the social and economic value, as well as the negative impacts of a brand. 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.

Hygiene Our brands can make a difference but achieving lasting improvements depends on people changing their everyday habits.

Nutrition We are improving the nutritional quality of our food products and encouraging consumers to live healthier lives.

Well-being for all People everywhere, whatever their income level, aspire to use high-quality and innovative products.

Product responsibility Product safety and responsible marketing communication