About HUL ppt

2. Abdul Gafoor
Asif Pasha
Neelesh. J
Raghu.N
Ravindra Appugol
Shiva Kumar .K

5. HUL Present Head Quarters in
Mumbai

6. Our vision
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.
Unilever's mission is to add Vitality to life.
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.

7. 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.
 The Company has over 16,000 employees and has
an annual turnover of around Rs.19, 401 crores
(financial year 2010 - 2011).

8.  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, Pond‟s, Vaseline, Lakmé, Dove, Clinic Plus,
Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru,
Knorr, Kissan, Kwality Wall‟s and Pureit.

9.  HUL is a subsidiary of Unilever, one of the world‟s
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.
 The company has a distribution channel of 6.3
million outlets and owns 35 major Indian brands.

10. HUL – The Journey so far…
1931: HUL set up its first subsidiary
1956: HUL offered 10% of its equity to the Indian public
1972: Lipton Acquisition
1984: Brooke Bond Acquisition
1986: Pond‟s Acquisition
2000: Modern Foods Acquisition
A little bit of the History of HUL formation

11. Segment classification of
Plants
Nothern Southern
Bangalore(KA)
Solan(HP)
Chennai(TM)
Basti(UP)
Cochin(Kerala)
Etah(UP)
Dharwad(KA)
Haridwar(Uttaranchal)
Hydrabad(AP)
Jalaun (UP)
Hosur(TN)
Rajpur(Punjab) Mangalore(KA)
Hamirpur(Punjab) Pondichery

12. Western Eastern
Mumbai(MH)
Kalwa(MH)
Haldia(WB)
Daman&Diu Jalpaiguri(WB)
Nasic(MH)
Pune(MH)
Kolkata(WB)
Kandla(Gujrat)
Chinnadwara(MP)
Silvasa
Goa Assam

13. Manufacturing locations
Assam
Uttaranchal
Himachal Pradesh
Pondicherry
Dadra & Nagar Haveli

14. HUL Product Profile

15. Segment Sub-Segment Brand Comment
Surf Patented Technology, Premium Segment
Rin Largest Selling detergent bar
Fabric Wash Sunlight Unilever‟s oldest, first brand WB, Kerala
Market Share: 38% Wheel Largest Selling Indian detergent
Dish Wash
Market Share: 58% Vim First & largest selling dish washer bar
Surface Cleaning Domex
Lifebuoy World‟s largest selling Soap
Lux Global brand
Dove Global Brand: Premium, Skin friendly
Pears Premium Segment
Breeze Basic Segment
Household Personal Wash Liril Focuses on young female population
Care Market Share: 52% Hamam South Indian Regional Brand – TN
Clinic Shampoo India‟s largest selling shampoo (D,ND)
Dove Global Brand: Premium, Hair friendly
Hair care Sunsilk Largest beauty shampoo brand
Market Share: 47% Ayush Herbal - Doing well in South India
Ponds Global brand, First mover (1947)
Fair & Lovely Patented Formulation, Asian brand
Lakme Skin Care Bought from Tatas, Salon Business
Personal Skincare Vaseline Global brand, Monopoly in Indian Petro-Jelly
Products Market Share: 52% Aviance Customized Personal care Solutions

16. Segment Sub-Segment Brand Comment
Toothpaste Close-up India‟s first Gel, Youth brand
Market Share: 30% Pepsodent Second largest selling toothpaste
Toothbrush
Deodorants
Market Share: 32%Axe, Rexona Clear leader in deodorant segment
Colour Cosmetics Lakme Natural Colorants
Personal Infant Care Huggies
Products Feminine Care Kortex Late entrant - Smaller Player
Kissan Jam Squeeze, Ketchup
Knorr Soups & Ready to Cook
Processed Foods Annapurna Salt, Flour
Tea 3 Roses Mindsharp, Taj, Brooke Bond,
Market Share: 23% Lipton -
Coffee
Beverages Market Share: 45% Bru
Ice Cream &
Food & Bakery Products Gelato, Quality Walls
Beverages Brain Food Amaze Demographic advantage of India
Pure-it Creating new markets
Lakme Beauty Moving from products to Services in
Salons Premium segments
Beauty and Ayush Therapy Moving from products to Services in
Wellness Centres Premium segments

17. SWOT Analysis
Strong R&D, healthy cash coffers to support
innovation
Strong position in most of the categories of
its presence
Unmatched distribution network , a must to
cater rural markets
STRENGTHS
Presence across price points to straddle
across entire income pyramid
Healthy Shareholder Returns in the form of
RoE and dividend yield
Native Know How

18. 49% of HUVR's sales
come from detergents and
personal wash
WEAKNESSES
Increase in Ad Spending,
which may affect the
margins

19. OPPORTUNITIES
• Change in Rural India‟s • Favorable • Consumer expenditure
source of income Demographics in food sector rose by
• Government Focus • Increasing Consumer 13%
• Futures Market aspirations • Valued at USD240mn –
packaged foods – 5%,
• Increase in MSP • Buoyant topline for 14%(g)
• Massive Election FMCG companies
• Modern retailing gaining
Spending coverage
Growing Consumer Opportunity
sector on a in Food
opportunities secular
in Rural India Sector
growth trend

20. Losing market
Stiff competition
share in most of
from local as well
the categories ,
as MNC players
Matured and
Growing
THREATS
- Rural income is yet
Receding pricing dependant on
power agriculture and in
turn monsoon
- Spurious Products

22. HUL – Product Portfolio
Revenue Share
Soaps and Detergents
Ice Creams
Other 2% Personal Products
Operations 8%
Beverages
Foods (Bakery)
1% Soaps and Exports
Exports
4% Detergents
48% Foods (Bakery)
Beverages
11% Other Operations ( Water
etc.)
Personal Ice Creams
Products
26%

23. HUL’s distribution system
 7,000 redistribution stockiest covering about one
million retail outlets.
 The general trade comprises grocery
stores, chemists, wholesale, kiosks and general stores.
 Hindustan Unilever provide tailor made services to
each of its channel partners.
 HUL is using the point of purchase method for much
higher level of direct contact, through in-store
facilitators, sampling, education and experience.

24. Distribution at the Villages
 The company has brought all markets with
populations of below 50,000 under one rural
sales organization.
 In rural India, the network directly covers about
50,000 villages, reaching 250 million consumers
Distribution at the Supermarkets

25. HUL aim is not only to enable easy access to their
brands, but also to touch consumers with a 3 way
convergence of:
•Product availability
•Brand communication
•And higher levels of brand experience

26. Hierarchical network for distribution of product
factory
Just in time depot
Customer service
provider
Big box retailer
consumer

27. CSR
 HUL also renders services to the
community, focusing on health
& hygiene education, empowerment of
women, and water management.
 It is also involved in education and rehabilitation of
underprivileged children, care for the destitute
and HIV-positive, and rural development.
 HUL has also responded to national calamities, for
instance with relief and rehabilitation after the 2004
tsunami caused devastation in South India

28. RESEARCH, DEVELOPMENT
AND INNOVATIONS
 The R&D Centre started in Mumbai in 1958 by the
Company, continues to produce a stream of high value
technologies which differentiate the brands with strong consumer
propositions.
 The R&D Centre has now undergone significant expansion with
more than 700 highly qualified scientists and technologists working
at the R&D laboratories in Mumbai and Bangalore.
 The R&D programme in India is strongly aligned with Unilever‟s
global R&D priorities and geared towards delivering bigger, better
and faster innovations with a robust pipeline of radically new
technologies with innovative consumer propositions in Health and
Hygiene, Laundry, Skin Care, Water Purification, Tea, Ice Cream
and Naturals segments.

35. “ An information system (IS) can
be any organized combination of
people, hardware, software, communications
networks, and data resources that stores and
retrieves, transforms, and disseminate
information in an organization”.

36. CLASSIFICATION OF
INFORMATION SYSTEM

40. MEANING
A transaction processing system (TPS)is an
information system that records company
transactions.( a transaction is defined as an
exchange between two or more business entities.)

41. A Transaction Processing System (TPS) is a
type of information system that
collects, stores, modifies and retrieves the data
transactions of an enterprise.

42.  Data entry
 Data capture
 Data validation
 Processing and revalidation
 Data storage
 Output generation

43. MAJOR TRANSACTIONS OF
HUL
 Gross sales of the company is Rs 20305.54
crores.
 Net sales of HUL during the year is Rs 19401
crores.
 Purchases made during the year(2009-10) is Rs
15480 crores.
 Raw materials purchased during the year(2010-
11)is Rs 17900 crores.
 New recruitments being 500 employees in 2011.
 Total salaries paid during the year is 85 crores.

45. Internet An Organization‟s
TPS
Financial
TPS
Business
transactions
Drill down reports
Accounting
Transaction Databases TPS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
TPS Scheduled reports
Business
transactions Databases Human
of
Resources Etc.
external
data TPS
Extranet
Etc.

46. TPS IN RAW-
MATERIAL
DEPARTMENT

47. SUPPLIERS
 Company had purchased the Raw-material of Rs
17900 crores.
 PUSHPAK PRODUCTS INDIA PVT LTD
 Radiant Commodities Private Limited
 Arsh Plastics
 FFC Aromas Pvt. Ltd.
 PAN FOODS LIMITED
 International Print O Pac Limited
 BALAJI INDUSTRIES
 SUPERFCHEM CONSUPACK COMPANY
 Gears & Pinions Pvt Ltd
 AmolRaj Printers

48. Raw material cost
 - FY2011 profitability affected by higher raw material cost:
During FY2011 Hindustan Unilever Ltd (HUL)'s adjusted
(consolidated) bottom line remained almost flat at Rs2,134.4
crore despite a double-digit top line growth of about 11% year on
year (YoY) during the year. The bottom line was flat mainly on
account of a 243-basis-point year-on-year (Y-o-Y) decline in the
operating profit margin (OPM) on account of higher raw material
prices.
- Operating cash flows declined YoY: The net cash generated
from the operating activities stood at Rs1,910.2 crore in FY2011
as against Rs3,479.6 crore in FY2010. The decline in the cash
generated from operations can largely be attributed to the
increase in the commodity prices during the year.
- Return ratios remained strong: The return ratios remained
strong with the return on equity (RoE) and return on capital
employed (RoCE) standing at 79.4% and 101.1% respectively in
FY2011 as against 87.7% and 103.5% respectively in FY2010.

49. TPS IN SALES
&MARKETING
DEPARTMENT

50. MARKETING
 Sales and marketing -- Sales function deals
with all aspects of selling to customers; the
marketing function carries out marketing
research, organizes advertising and product
promotion
 Company‟s total sales during the year is
Rs20305.54
 Company‟s net sales during the year is Rs
19401.11
 Hindustan Unilever ltd share price in the market is
391.50

52. Segmentation of net sales
1. Soaps and
detergent-
8653crores.
2. Personal products-
5762 crores.
3. Beverages-2308
crores
4. Processed foods-
892 crores.
5. Ice creams-272
6. Exports-1086
7. Others-4268
crores.

55. TPS IN DISTRIBUTION
DEPARTMENT

56. HUL’s distribution system
 7,000 redistribution stockiest covering about one
million retail outlets.
 The general trade comprises grocery
stores, chemists, wholesale, kiosks and general stores.
 Hindustan Unilever provide tailor made services to
each of its channel partners.
 HUL is using the point of purchase method for much
higher level of direct contact, through in-store
facilitators, sampling, education and experience.

57. Distribution Strategy
Distribution at the Villages
 The company has brought all markets with populations of below
50,000 under one rural sales organization.
 The team comprises an exclusive sales force and exclusive
redistribution stockists.
 The team focuses on building superior availability of products.
 In rural India, the network directly covers about 50,000
villages, reaching 250 million consumers, through 6000 sub-
stockists.
Distribution at the Supermarkets
 HUL has set up a full-scale sales organisation, for this channel to
serve modern retailing outlets.
 Product tests and in-store sampling is provided to consumers.

58. DISTRIBUTION NETWORK
 The operations involve over 2,000 suppliers
and associates.
 HUL's distribution network, comprising
about 7,000 redistribution stockiest.
 6.3 million retail outlets reaching the entire
urban population, and about 250 million rural
consumers.
 The products of HUL are manufactured in 40
factories across India.

59. Hierarchical network for distribution of product
factory
Just in time depot
Customer service
provider
Big box retailer
consumer

60. TPS IN FINANCE & ACCOUNTS
DEPARTMENT

61. Income segments
 Soaps and detergents - 1295.66crores
 Personal products - 701.82
 Beverages - 293.62
 Food products - 26.69
 Exports - 107.97
 Ice-creams - 53.39
 Other operations - 213.54

62. HUL – Product Portfolio
Revenue Share
Soaps and Detergents
Ice Creams
Other 2% Personal Products
Operations 8%
Beverages
Foods (Bakery)
1% Soaps and Exports
Exports
4% Detergents
48% Foods (Bakery)
Beverages
11% Other Operations ( Water
etc.)
Personal Ice Creams
Products
26%

64. REPORT TO WHOM?
 Each department prepares reports at the bottom
level and these reports send to departmental
managers with some suggestions.
 Finance manager - Pavan Chaturvedi
 Marketing manager - Srinivasa Madhavan
 HR manager - Anish Singh
 Accounting manager- Ramesh Doraiswami
 Production manager - Ameya Borker

65. Suggestions
 from all the above analysis the operational level
management came to know about two things.
 1) The raw-material cost during the year is more.
 2) The revenues generated from Ice-creams and
bakery products is very less.
 feed back from the customer tells that the taste
of bakery items should be improved. So we
suggest the management to take some measures
to make it profitable.

67. MIS meaning
“ Management Information system
(MIS) is a network of
communication channels and
information processing centers
collecting information from
difference sources for the purpose
of decision making”.

68. MIS functions in HUL
Collect data from various
data base (TPS)
Store process & analyze
the data collected by TPS.
Reporting or presenting
the information to DSS

69. MIS in HUL
Entering Pass:
Software used - Setup gate pass software
Details required - Name:-
Age:-
Sex:-
Qualification:-
Arriving & Departing time:-
Name of Concern person:-
Photo Identification:-
Purpose of Meeting etc:-

70. SAP in HUL
 SAP is the largest European software enterprise.
 SAP is the 3rd largest software company in the world.
 It ranked after Microsoft, IBM, in terms of market
capitalization.
 Sap stands for:-
“System , Application and products in data processing”.

71. Internet An Organization‟s
MIS
Financial
MIS
Business
transactions
Drill down reports
Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports
Business
transactions Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.

72. Strength of having MIS in HUL
 To retrieve information about internal operations
from databases that have been updated by TPS
 To obtained data about the business
environment from external sources so as to
process them to serve the managers in a better
way which is a key to success of HUL
 To provide managerial end users with information
products that support much of their day to day
decisions making needs.
 To make available, right information at right place
at the right time and the lowest cost which was
seen in the year 2009-10 in case of raw material
scarcity and inflation.

74. “Knowledge Management System
(KM System) refers to a system for
managing knowledge in
organizations for supporting
creation, capture, storage and
dissemination of information”.

76. KMS in HUL
 All Departments of all units of HUL are connected
through Intranet
 Each employee is given separate login id.
 employee can excess only with that department
 Linkage of all employees
CONCERN
USE KANDLA
SEZ
EMPLOYEE
R
 Internet is provided to only specific class employees

77. CONT….
 LAN is used to connect all departments in HUL
(K-SEZ unit).
 All computers are taken on Rental Bases to reduce
cost.

78. Telecommunication in HUL
 All engineers & management level employees are
provided mobile & SIM connection by company
 All were connected through Reliance, but now they
changed the SIM of all and now they all are Connected
through Airtel.

79. KMS is comprised of four
components
 Content management applications
 Expertise locator applications
 Collaboration
 Portal

80. Why KMS is a Strengths of
HUL?
 They have built a strong data infrastructure
that has comparatively better edge over the
competitors like Emami, Nirma, Dabur
India, Godrej Consumer Product, P & G
Hygiene, etc..
 Any small change in organization structure
has almost no negative impact on the HUL..
(eco..
 HUL are more successful to use their
human skills, technology more efficiently

81. Benefits & Issues of KMS in
HUL
 In HUL, Sharing of valuable
organizational information throughout
organizational hierarchy right from the
CEO or top management to worker
supervisors.
 There is no overlapping of any kind
irrelevant or junk data in HUL which Can
avoid re-inventing the wheel, reducing
redundant work.

82.  Also have reduced the training time for
new employees of HUL since last
financial years.
 Retention of Intellectual Property after
the employee leaves if such knowledge
can be codified.
 As the fast moving consumer goods
(i.e., FMCG) is mainly involved in HUL
the proper Time management right from

83. Suggestions
 As the operational level
Management suggest that the cost
of raw-material increased & the
sales of Ice-Cream & food product
reduced, Finally, KMS suggest the
top level management to take a
wise decision to overcome these
problems.

85. DECISSION SUPPORT
SYSTEM
A Decision Support System
(DSS) is a collection of
integrated software
applications and hardware
that form the backbone of an
organization‟s decision
making process.

86. Conceptual Model of a DSS
Database Model base
Access to the
internet, networks, External database
and other computer access
systems
Dialogue manager

87. Characteristics and Capabilities of
DSS
1. Provide support in semi-structured and
unstructured situations, includes human judgment
and computerized information
2. Support for various managerial levels
3. Support to individuals and groups
4. Support to interdependent and/or sequential
decisions

88. CON….
5. Support all phases of the decision-making
process
6. Support a variety of decision-making
processes and styles
7. Are adaptive
8. Have user friendly interfaces
9. Goal: improve effectiveness of decision
making
10. The decision maker controls the decision-
making process

89. CON…
11. End-users can build simple systems
12. Utilizes models for analysis
13. Provides access to a variety of data sources,
formats, and types

90. Benefits of DSS in HUL
 Improves personal efficiency
 Speed up the process of decision
making
 Increases organizational control
 Encourages exploration and discovery
on the part of the decision maker
 Speeds up problem solving in an
organization

91. CON…
 Facilitates interpersonal
communication
 Generates new evidence in support
of a decision
 Creates a competitive advantage
over competition
 Helps automate managerial
processes

92. Application of DSS in HUL
 HUL has a dynamic decision support system to
predict the value of customer for new product
development.
 In recent years, HUL have focused on how to
enter markets and meet customer requirements
by improving product attributes and processes to
boost their market share and profits.
 HUL adopts reporting tools, processes, and
methodologies for decision support system and
provide end users with rich
reporting, monitoring, and data analysis

93. CON…
 HUL estimate the net customer lifetime
value from customer purchasing
behavior toward a specific product by
adopting DSS
 HUL rely on decision support
tools, techniques, and models to help
them assess and resolve everyday
business questions
 HUL adopts DSS for the formulation of
effective marketing strategies that

94. Suggestion
Since the middle level management
suggest to solve the problem, DSS
takes decision after a careful analysis
that we have decided to purchase raw
material from the various place & reduce
the cost of production & add various
favors to the ice-cream & the bakery
items to improve the quality & overcome
the problem.

96. Executive Support System(ESS) or
EIS
“An executive information system
(EIS) is a type of management
information system intended to facilitate
and support the information and
decision-making needs of senior
executives by providing easy access to
both internal and external information
relevant to meeting the strategic goals of
the organization. It is commonly
considered as a specialized form of
decision support system (DSS).”

97. Components of an ESS
 Executive work stations depend on mainframe
or minicomputer systems for access to ESS
software. This package work with DBMS and
telecommunication software to provide easy
access to internal, external and special database
with almost instantaneous response times.
Executives, through ESS can „drill down‟
quickly to lower levels of detail in areas of
particular interest to them.
 ESS also stresses trend analysis and exception
reporting. Thus, an executive can quickly discover
the direction the key factors are heading and the
extent that critical factors are deviating from
expected result.

98. Characteristics of ESI
 Flexibility and ease of use.
 Produces validated, correct, relevant and timely
information.
 Involve user friendly interface, self help Graphical
User Interfaces (GUI)
 Access from various locations providing
secure, reliable, confidential access.
 Is customised/tailor made to suit the management
style.

99. Applications of ESS:
 Forecasting-EIS provides an approach to sales
forecasting for the year 2012, which can allow the market
executive to compare sales forecast with past sales of
2011.
 Manufacturing – since HUL is a huge company with many
products, manufacturing operational control focuses on
day-to-day operations like working capital, inventory etc
and the central idea of this process is effectiveness and
efficiency.
 Financial -- A financial executive needs to use financial
ratios and cash flow analysis to estimate the trends and
make capital investment decisions as they are likely to
enter into many new products and services in upcoming
financial years 2012-2015.

100. TPS Data MIS
Data
DSS
OA Model
S
Dat
a
ESS Administrative
program Support
Workstation
Executive
work station
Graphic Report ESS
s s Model
Architecture of ESS

101. Strengths of having ESS in
HUL :
 As HUL deals with the lots of product lines, the
Flexible data management capabilities is very
important.
 decision-maker participation.
 Estimating current and future potential for the
targeted market areas.
 Monitoring short-term corrective measures and
developing long-term strategic plans.
 Filters data for management, improves tracking
information.
 Provides timely delivery of company summary
information.

102. INFORMATION TECHNOLOGY
 The Company continues to invest in Information
Technology, leveraging it as a source of competitive
advantage.
 The enterprise-wide SAP platform forms the
backbone of IT and encompasses all core
business processes in the Company and for
collaboration with our suppliers and customers.
 It provides a comprehensive data warehouse
with analytics capability that helps in better and
speedier decisions.

103. Contin… IT
 All distributors run a standard distributor
management system.
 The distributors‟ salesmen use handheld devices
for accepting retail orders which enable faster
tracking and real-time sales information.

104. Contin… IT
 As the IT systems become more sophisticated
and mission critical, there is a continuous focus
on IT security and reliable disaster recovery
management processes.
 These are periodically reviewed and tested for
efficiency and adequacy.