hindustan unilever limited.docx

8/13/2019 Hindustan Unilever Limited.docx

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Hindustan Unilever Limited(HUL) (BSE:500696)is India's largestfast moving consumer

goodscompany. TheAnglo-DutchcompanyUnileverowns a 52% majority stake.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as

Hindustan Lever Limited through a merger ofLever Brothers,Hindustan Vanaspati Mfg. Co.

Ltd. and United Traders Ltd. It is headquartered inMumbai,Indiaand has an employee strengthof 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 inIndia. It estimates that two out of three Indians use its many home and personal care products,food and beverages

Brands

Wheel Detergent ad in rural Nepal area.

HUL is the market leader in Indian consumer products with presence in over 20 consumercategories such as soaps, tea, detergents and shampoos amongst others with over 700 millionIndian consumers using its products. Sixteen of HULs brands featured in theACNielsenBrand

Equity list of 100 Most Trusted Brands Annual Survey (2008).[3]According to Brand Equity,

HUL has the largest number of brands in the Most Trusted Brands List. It has consistently hadthe largest number of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian

brands.[4]

Its brands includeKwality Wall'sice cream,Knorrsoups & meal makers,Lifebuoy,

Lux,Pears,Breeze,Liril,Rexona,Hamamand Moti soaps,Pureitwater purifier,Liptontea,

Brooke Bond(3 Roses, Taj Mahal, Taaza, Red Label) tea,Brucoffee,PepsodentandClose Up
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toothpaste and brushes, andSurf,RinandWheellaundry detergents,Kissansquashes and jams,

Annapurna salt and atta,Pond'stalcs and creams,Vaselinelotions,Fair and Lovelycreams,

Lakmbeauty products, Clear, Clinic Plus, Clinic All Clear,SunsilkandDoveshampoos,Vimdishwash, Ala bleach,Domexdisinfectant,Modern Bread,Axedeosprays andComfortfabric

softeners.

Leadership

HUL has produced many business leaders for corporate India; one of these,Harish Manwani[5]

,

has become a member of Unilever's Executive (UEx).

HUL's leadership-building potential was recognized when it was ranked 4th in theHewittGlobal

Leadership Survey 2007 with onlyGE,P&GandNokiaranking ahead of HUL in the ability toproduce leaders with such regularity.

[6][7][8]

Other awardsHUL is one of the country's largest exporters; it has been recognised as a Golden Super Star

Trading House by the Government of India.[2]

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25

years byBusinessworld,one of Indias leading business magazines.[9]

The rating was based on acompilation of the magazine's annual survey of Indias most reputed companies over the past 25

years.

HUL was one of the eight Indian companies tobe featured on the Forbes list of Worlds Most

Reputed companies in 2007.

[10]

HUL was ranked 39th inThe Brand Trust Report(2011) published by Trust Research Advisory.

Fair and Lovelycreams also was listed in the same report.

Research facilities

The Hindustan Unilever Research Centre (HURC) was set up in 1967 inMumbai,and Unilever

Research India inBangalorein 1997. Staff at these centres developed many innovations inproducts and manufacturing processes. In 2006, the company's research facilities were brought

together at a single site in Bangalore.[11]

Community services

HUL also renders services to the community, focusing on health &hygieneeducation,

empowerment of women, andwater management.It is also involved in education and
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rehabilitation of underprivileged children, care for the destitute andHIV-positive,andrural

development.HUL has also responded to national calamities, for instance with relief and

rehabilitation after the2004 tsunamicaused devastation in South India.[2]

In 2001, the company embarked on a programme called Shakti, through which it createsmicro-

enterprisesfor rural women. Shakti also includes health and hygiene education through theShakti Vani Programme, which now covers 15 states in India with over 45,000 women

entrepreneurs in 135,000 villages. By the end of 2010, Shakti aims to have 100,000 Shakti

entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL isalso running a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavours

to induce adoption of hygienic practices among rural Indians and aims to bring down the

incidence ofdiarrhoea.So far it has reached 120 million people in over 50,000 villages.[2]

Direct Selling Division

HUL also runs Hindustan Unilever Network (HULN), adirect sellingbusiness arm. Under

HULN, health products are marketed byAYUSHin collaboration with Arya Vaidya Pharmacy,Coimbatore; beauty products byAviance;home products by Lever Home, and male grooming by

DIY.[disambiguation needed]

There are also premium products forbeauty salonsand others.

Controversy

Mercury pollution

In 2001 athermometerfactory inKodaikanalrun by Hindustan Unilever was accused of

dumping glass contaminated withmercuryin municipal dumps, or selling it on to scrap

merchants unable to deal with it appropriately.

[12]

Skin lightening creams

Hindustan Unilever's "Fair and Lovely" is the leadingskin-lighteningcream for women in

India.[13]

The company was forced to withdraw television advertisements for the product in 2007.

Advertisements depicted depressed, dark-complexioned women, who had been ignored by

employers and men, suddenly finding new boyfriends and glamorous careers after the cream hadlightened their skin.

[14]In 2008 Hindustan Unilever made former Miss WorldPriyanka Chopraa

brand ambassador forPond's,[15]

and she then appeared in a mini-series of television

commercials for another skin lightening product, White Beauty, alongsideSaif Ali Khanand

Neha Dhupia;these advertisements were widely criticised for perpetuating racism.[16]

Triclosan

Several academic papers have pointed out the firm's continued use of theantibacterialagent

Triclosan('Active B') in India because is under review by the AmericanFood and Drug

Administration(FDA)
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