Company Analysis

Chanakya Kumar
[COMPANY NAME]  [Company address]

Name -Ayushi Shah

Roll No: 55 Specialization: PGDM
GENERAL
1 Company Name:

 
HUL
1. Strengths
 HUL has a strong brand equity and a large legacy as it is a very old
and well-rooted company with a variety of popular brands and
products.
 The company has its presence across the length and breadth of India
with over 8 million+ retail stores where its products are available.
2. Weaknesses
 HUL runs in a very competitive environment and there are highly
established and rising companies that are little product-focused and
hence, eat up the market share of the company.
 HUL currently doesn’t have any ayurvedic or natural products in
their portfolio, which is a negative aspect of the company as the
current population’s trend is shifting to herbal products and many
focused companies are making the best use of it.
3. Opportunities
 With increasing disposable incomes, education and youth
2 SWOT Analysis :
population, the FMCG sector in rural and semi-urban areas is
expected to grow very rapidly as compared to urban areas. The
company can use this very well as it already has a brand image and a
wide chain of distributors.
 The company can use its healthy cash reserve position and brand
image legacy to acquire various products to diversify its portfolio.
4. Threats
 HUL runs in a highly competitive environment, with 100% FDI
allowed by the Govt. of India and new multinational companies
setting their feet, the company faces a high threat from its
competitors.
 The company is highly dependent on raw material prices. Inflation
can shrink the margins for the company as it runs in a sector that is a
high-volume, low-margin one.
 Population’s shift to organic and healthy products can help some
unorganized and small companies to increase their market share,
 which can be a threat to HUL.

 
3 Company Belongs to which sector? Consumer Goods , FMCG 
4 Establishment year: 1931  
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company, touching the lives of two out of three Indians with over 20
distinct categories in Home & Personal Care Products and Foods &
Beverages. It is a subsidiary of Unilever, a British company. Its products
include foods, beverages, cleaning agents, personal care products, water
purifiers and other fast-moving consumer goods. HUL was established in
1931 as Hindustan Vanaspati Manufacturing Co. and following a merger of
constituent groups in 1956, it was renamed Hindustan Lever Limited. The
company was renamed in June 2007 as Hindustan Unilever Limited. As of
5 Brief of the company: 2019, Hindustan Unilever's portfolio had 35 product brands in 20 categories
The mission that inspires HUL's more than 15,000 employees, including
over 1,400 managers, is to “add vitality to life". The company 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 about 52 % of
the equity.

6 Name of CEO /MD of the company:

Sanjiv Mehta 

7 Is it multinational Company? Yes 

8 Head Office/ Corporate office:  Mumbai
9 Is it NSE/ BSE Listed? Yes 
10 What is their Current share Price? 2698.25  
11 How many branches/Unit across World? Unilever is operated in 195 countries

12 How many branches/Unit across India?  28

13 Total Turnover in(US $) Turn Over in India (INR): Rs 453 billion

 With 44 brands spanning 14 distinct categories such as fabric solutions,

home and hygiene, life essentials, skin cleansing, skincare, hair care, colour
cosmetics, oral care, deodorants, tea, coffee, ice cream & frozen desserts,
foods and health food drinks, the Company is a part of the everyday life of
millions of consumers across India. Its portfolio includes leading household
15 Products and services offered: brands such as Lux, Lifebuoy, Surf excel, Rin, Wheel, Glow & Lovely,
Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup,
Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s, Horlicks and
Pureit.

16 Major Competitors (Products specific)  ITC, Marico, Cafe Coffee Day and Coca-Cola European Partners 

 HULof demographic, geographic and psychographic segmentation variable
s to address the changing needs of the customers. It uses
differentiating targeting strategies to make the products available to the
17 Customers Segments: customer accordingly as per their choice.

Bollywood actor Akshay Kumar as the brand ambassador of its adult

18 Brand Endorsement:
nutrition brand Horlicks Protein Plus.

WORKING TOWARDS PLANETARY HEALTH

HUL has taken necessary steps to work towards the planet like:
Responsible use of Plastic
 They are committed to make 100% of our plastic packaging
reusable, recyclable or compostable by 2025 and we will help collect
19 Current News about the company: and process more plastic packaging than we sell.
 Since 2018, HUL has facilitated safe disposal of more than 1.2 lakh
tons of post-consumer use plastic waste with the help of collection
and disposal partners across India.
 In partnership with the Government of India and United Nations
Development Programme, HUL has set up four material recovery
facilities called Swachhta Kendras in Mumbai ensuring end to end
plastic waste management from collection, segregation and
processing including behaviour change among consumers. Through
 the project we have reached out to over 40,000 households, collected
over 4000 tonnes of plastic waste and trained more than 800 Safai
Saathis (sanitation workers).
 They have also partnered with international organisation Xynteo,
where along with the Education Department of Maharashtra, HUL
and Xynteo have rolled out ‘Waste No More’ - a digital school
curriculum focused on the importance of segregation, collection, and
safe disposal of waste. The programme has reached out to more than
1 lakh students.
Net Zero Emissions by 2039
 They are committing to net zero emissions from all our products by
2039 – from the sourcing of the materials we use, up to the point of
sale of our products.
 They have reduced CO2 emissions per tonne of our production by
91% compared to 2008 baseline through reduction in total energy
20 CSR Policy HUL’s CSR Policy is supported by the following principles:

1. They are committed to conducting our operations with integrity and

respect, in the interest of our stakeholders, and in line with our Code
of Business Principles.
2. They believe growth and environmental sustainability need not be
conflicting. Our business model is designed to deliver sustainable
growth. The inputs to the model are our brands, our people and our
operations. The outputs to the model are sustained growth, lower
environmental impact and positive social impact.
3. They collaborate and engage with different stakeholders including
Governments, NGOs, IGOs, Suppliers, Farmers, and Distributors to
tackle the challenges faced by the society.
I. CSR Obligations

In accordance with Section 135(5) of the Companies Act, 2013 (the Act),
HUL is committed to spend 2% of its average net profits made during the
three immediately preceding financial years in some of the identified
activities that are listed in Schedule VII (as amended) to the Act. This will
 include the spends through activities undertaken by Hindustan Unilever
Foundation (HUF), our not-for-profit subsidiary Company, aimed at
building capacities to conserve water and to further community development
initiatives.

Such CSR expenditure shall also include all direct and indirect expenditure
incurred towards CSR programs as may be admissible under the regulatory
framework. The overall amount to be committed towards CSR will be
approved by the Board of Directors as a part of its Annual Action Plan. If
HUL spends any amount over and above such 2% of average net profits, the
same is to be considered as excess CSR expenditure which can be set-off in
the immediate succeeding three financial years subject to the conditions as
prescribed under the Act.

II. Selection:

The CSR activities can be undertaken either directly or through an

implementing agency. The Implementing Agency should meet the statutory
eligibility criteria laid down under the Companies Act, 2013. Additionally,
the Company shall conduct appropriate due diligence of the implementation
agency before associating the agency. Such due diligence shall inter alia
cover aspects of financial position of the agency, credibility, history and
experience in the relevant area, any potential conflict of interest and existing
22 Impact and Response to Covid 19 and
The past litigations.
COVID-19 pandemic is one of the biggest challenges faced by the world
in recent times. As a Company driven by purpose, Hindustan Unilever
Limited stands united with the nation.
Product Donations
As manufacturers of hygiene and sanitation products that form the first line
of defence against this virus, they have worked closely with the
Government, NGOs and various other partners to ensure that our consumers
and communities have continued access to essential items and other daily
necessities.
Healthcare partnerships
they have collaborated with medical institutions and governments to
strengthen health infrastructure across the country that has helped in
responding better to the COVID-19 crisis.