An investigative study on market potential and performance analysis of Hindustan Unilever Ltd

This study throws light on sales and profitability pattern, market potential and the performance level of Hindustan Unilever Limited. Hindustan Unilever Limited, the Indian arm of the Anglo-Dutch company was established as a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. The company was renamed in late June 2007 as “Hindustan Unilever Limited”. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited. Hindustan Unilever Limited (HUL), formerly Hindustan Lever Limited, India's largest consumer products company established in 1933 as Lever Brothers India Limited, was headquartered in Mumbai, India with its 16,000 employees headed by Harish Manwani, the non-executive chairman of the board. HUL efforts were also greatly rewarded with HUL brands finding place in the ‘Top 10 brands’ list for the year 2008 published in The Economic Times. For 70 years, Unilever, the undisputed market leader now encounters tough competition from Proctor & Gamble and Colgate-Palmolive. HUL is also known for its strong distribution network in India. In order to further strengthen its distribution in the rural areas and to empower the local women, HUL launched a project Shakti in 2000 in a district in Andhra Pradesh. As a matter of fact, HUL occupies its position as the market leader in Indian products such as tea, soaps, detergents, as its products have become daily household name in India. To mention few brands: Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakme beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dish wash, Ala bleach and Domex disinfectant,Rexona,Modern Bread and Axe. Over the time HUL has founded a viable & competitive sourcing base worldwide in Home and Personal Care, Foods & Beverages category of products. HUL Exports offers high level of service with flexibility and aggressive responsiveness throughout the supply chain. With a dedicated organizational structure to support this endeavor, there has been remarkable business growth. Intrinsic cost reduction in supply chain along with appropriate technology and competitive capital investment while delivering best quality makes possible for HUL to position itself as a key sourcing hub in FMCG goods inasmuch as to become a preferred partner for Global customers. HUL's key focus in the exports business is on two broad categories-- in Home & Personal Care (HPC) and Food and Beverages (F&B). It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories – Branded Rice, Marine Products and Castor and its Derivatives, in which, India has competitive advantage. HUL enjoys international recognition for its quality, reliability and its promptness of service. HUL's Exports geography comprises, at present, countries like Europe, Asia, Middle East, Africa, Australia, and North America etc. Here in this research, the performance analysis was undertaken by the researcher taking 10 year financial data from 2002–2012 and the key financial ratios were analyzed. The SWOT analysis was done to know the threat & opportunities of HUL in present market structure. The future opportunities for FMCG products were taken into account considering the increased disposable income of customers to forecast the future demand of HUL.