Hindustan Unilever Limited

Our History
In the summer of 1888, visitors to the Kolkata harbor 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 the 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. 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 Ice-cream 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 Ice-cream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. 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 Rs 1,000 Cr sales mark the same year followed by Wheel which crossed the Rs.2,000 Cr sales milestone in 2008. On 17th October 2008, HUL completed 75 years of corporate existence in India. On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India at New Delhi. In March, 2012 HULs state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai

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. 21,736 crores (financial year 2011 - 2012). 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 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

Vision
The vision of Hindustan Lever is to integrate social, economical, and environmental considerations into its business and brands. The company also aims to focus on climate change, water, packaging and sustainable agricultural resources as our key sustainability themes. The company also focuses on making global partnerships on nutrition and hygiene issues

Mission
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 getmore out of life

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 over 16,500 employees, including over 1500 managers

Executive Directors

Mr. Nitin Paranjpe CEO and Managing Director

Mr. R. Sridhar - Chief Financial Officer

Mr Pradeep Banerjee Executive Director, Supply Chain

Non-Executive Directors

Mr. Harish Manwani Chairman

Mr. A. Narayan Independent Director

Mr. S. Ramadorai Independent Director

Dr. R. A. Mashelkar Independent Director

Mr. O. P. Bhatt Independent Director

Management Committee

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. R. Sridhar Chief Financial Officer

Mr. Hemant Bakshi Executive Director, Home & Personal Care

Ms. Geetu Verma, Executive Director, Foods

Mr. Manish Tiwary Executive Director, Sales and Customer Develop ment

Mr Pradeep Banerjee Executive Director, Supply Chain

Ms. Leena Nair Executive Director, HR

Mr Dev Bajpai Executive Director, Legal and Company Secretary

Brands
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Seventeen of HULs brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2011). The company also happens to have the highest number of brands in this list, with six brands featuring in the top 15 list. The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.

Food Brands
HUL is one of Indias leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice

Brooke Bond 3 Roses Exquisite taste in a cup of tea that is also good for your health!

Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.

Brooke Bond Red Label Bond over a cup of tasty Red Label and stay healthy. In other words Swast rahein mast rahein.

Brooke Bond Taj Mahal

Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Bru, it makes moments with loved ones more magical

Eat Happily. Grow Happily

Knorr helps families make meal times special, nutritious, tasty and healthy.

KWALITY WALLS SHARE HAPPY. Happiness is a sweet treat waiting to be eaten.

Lipton has a range of vitality teas that truly encompass the goodness of tea.

Modern A Wholesome & Nourishing, Hygienically produced & Reliably Safe Bread

BB Sehatmand Jo Sehatmand Woh Aage Har Dum!! (One who is healthy is a step ahead. Always)

Home Care Brands

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.

Active Wheel Haazaron Phoolo ki Khusbhu, Nimbu ke Shakti ke Saath!

Cif- the best cleaner to let you shine.

Comfort makes your familys clothes feel cared for and comfortable.

The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.

Rin provides best in class whiteness which is demonstrable.

Sunlight keeps colours looking as beautiful as you

Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains

Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Personal Care Brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognized and love by consumers across India. They help consumers to look good and feel good and in turn get more out of life.

Aviance enables women actualize their unique potential through expert customized beauty solutions.

Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.

Axe with Best Quality Fragrance

New CLEAR with Nutrium 10 goes 3 layers deep** into the scalp to nourish such that Dandruff Wont Come Back*!

LEVER Ayush aims to help a new generation of Indians rediscover everyday health and vitality through customized Ayurvedic solutions

Clinic Plus - makes hair inside strong, outside long!

Freshness that brings you Closer

Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful!

Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin

More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the Worlds No.1 Fairness cream.

Sunsilk has had a restyle!

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.

Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family.

Pepsodent India is committed to improve the overall Oral health of Indians.

Liril 2000-Now come closer to your loved ones

Get the expert to look after your skin

Lux For soft and smooth skin!

Rexona gives you silky skin irresistible to touch that keeps the romance alive!

Pears the purest and most gentle way to skincare!

Your skin is amazing. It deserves to be treated as such.

Water

Pureit is the worlds most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability.

Our Culture
MISSION
HUL'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.

CORPORATE PURPOSE
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 behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact.

CODE OF BUSINESS PRINCIPLES

HUL has earned a reputation for conducting its business with integrity and with respect for the interests of those their activities can affect. This reputation is an asset, just as real as their people and brands. HULs first priority is to be a successful business and that means investing for growth and balancing short term and long term interests. It also means caring about their consumers, employees and shareholders, their business partners and the world in which they live.

STANDARDER OF CONDUCT
HUL conducts their operation with honesty, integrity and openness, and with respect for the human rights and interests of their employees. They similarly respect the legitimate interests of Those with whom they have relationships.

OBEYING THE LAW

HUL companies and their employees are required to comply with the laws and regulations of the countries in which they operate.

EMPLOYEES
HUL is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of their company. They recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. They are committed to safe and healthy working conditions for all employees. They do not use any form of forced, compulsory or child labor. They are committed to working with employees to develop and enhance each individual's skills and capabilities. They respect the dignity of the individual and the right of employees to freedom of association. They maintain good communications with employees through company based information and consultation procedures.

CONSUMER
HUL is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services are accurately and properly labeled, advertised and communicated.

SHAREHOLDERS
HUL conducts its operations in accordance with internationally accepted principles of good corporate governance. They provide timely, regular and reliable information on their activities, structure, financial situation and performance to all shareholders.

BUSINESS PARTNER
HUL is committed to establishing mutually beneficial relations with their suppliers, customers and business partners. In their business dealings they expect their business partners to adhere to business principles consistent with their own.

PUBLIC ACTIVITIES
HUL companies are encouraged to promote and defend their legitimate business interests. HUL co-operates with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. HUL neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests.

ENVIRONMENT
HUL is committed to making continuous improvements in the management of their environmental impact and to the longer-term goal of developing a sustainable business. HUL will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice.

INNOVATION
In their scientific innovation to meet consumer needs they respect the concerns of their consumers and of society. HUL works on the basis of sound science applying rigorous standards of product safety.

COMPITITION
HUL believes in vigorous yet fair competition and supports the development of appropriate competition laws. HUL companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.

BUSINESS INTEGRITY
HUL does not give or receive whether directly or indirectly bribes or other improper advantages for business or financial gain. No employee may offer give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe are rejected immediately and reported to management. HUL accounting records and supporting documents are accurately described and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset are established or maintained.

CONFLICT OF INTREST
All HUL employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. HUL employees must not seek gain for themselves or others through misuse of their positions. This is our road to sustainable, profitable growth, creating long- term value for our shareholders, our people, and our business partners.

CONTROLLING IN HUL
Internal Control: Audit committee meet six times Review the internal control measures & providing an update to the Board Looks into controls and security of the Companys critical IT applications Into all major divisions, and look after deviations from the Code of Business Principles reduction in specific energy and water consumption levels by the use of alternative sources of energy and recycling/reuse of energy / water the continuing excellence in TPM implementation across units

CONTROLLING TOOLS IN HUL

MFG-PRO Process

Step-1: Getting order Get online order Consolidate all orders from website to excel sheet Send excel sheet to Operation Department MRP (Material Requirement Planning) is done in MFG/PRO MFG/PRO will calculate how much is in stock & how much is required Step -2 : Raw material Management Required Material is ordered to supplier. Raw material received from supplier. MFG/PRO Prepares GRR (Goods Receipt Report)

Step 3 : Quality Control Material will be transferred to Q.C. Department: (1) Q.C. Pending (2) Q.C. Accepted (3) Q.C. Rejected Q.C. Accepted is transferred to warehouse. Q.C. Rejected is sent back to suppliers. MFG/PRO does accounting entry of it. Step 4 : Production Raw Material is Transferred to Production unit. MFG/PRO prepares Production Report Daily Production is recorded. Step 5 : Dispatch MFG/PRO will guide how much to dispatch. Remaining will be stored in warehouse. MFG/PRO will sent mail to the head office. Step 6 : Payment Payment to Supplier : MFG/PRO gives Message to central department, after 1 week of receipt of material & payment will be done centrally. When payment is done, MFG/PRO will make entry of it.

Employee Reward System In HUL

1) Star Of The Month (SOM):1. This is a performance based award. Rating of the employees is done on the grade basis. According to company rules. 2.These grades are given on the basis of achievements of targets by manager or supervisors, best five should be selected. This is monthly awarded. The ratings are as follows: E Exceeded the targets

i.e. achieved targets more than assigned. F Fully achieved the targets

i.e. achieving exact targets as assigned. P Partially achieved target

i.e. achieving some of the assigned targets N Not achieved the targets at all

2)

Customer Delight:1.This is a performance based award. An employee has to deal with internal and external customer both. 2.The employees get to fill a customer delight form on the basis of which candidate is selected. 3.Maximum of 5 employees can be selected for this award. The employees must possess these qualities to get this award: Least number of complaints, Most speedy delivery, Most accurate data, Most orderly data.

3) Achievement Talking Book (A-T Book): 1.All achievements of the employees can be talked in this monthly book & gives them recognition. 2.This is a very good way of public recognition. 3.As every employee loves to be recognized at his working place and amongst the people he works with, this is a very effective form and way of recognizing ones performances. 4.This book will be circulated at the beginning of every month. This book consists of: Detailed information about the employees who have achieved some milestone during the month The detail of the day and month of the achieved milestone. Birthday wishes are sent to the employees through this book. Various articles or precious experiences of employees.

4) Successfully Achieved Quarter (SAQ): 1.This is a performance based award. 2.Rating system is required. 3.These grades are given on the basis of achievements of targets, best five should be selected. 4.This is a quarterly award where employees are rated for a quarter and then the deserving candidate is awarded.

The ratings are as follows: E Exceeded the targets

i.e. achieved targets more than assigned. F Fully achieved the targets

i.e. achieving exact targets as assigned. P Partially achieved target

i.e. achieving some of the assigned targets N Not achieved the targets at all.

5) Think Out Of The box (TOTB): 1.This is the way of idea/suggestion management. 2.An issue can be put up and employees can be asked to give their suggestions or ideas on the concerned issue. 3.Web based applications like emails can be used to collect and evaluate the suggestions/ideas. 4.Idea/suggestion board can be put up in the cafeteria and learning center, as these places are easily accessible to all employees. 5.Best ideas would be collected on the monthly basis but rewarded on the quarterly basis. Feedback can be given to the employee through: 6) Web Through phone, Voice mails etc.

On the Spot Award :

1.This is an on the spot award 2.This award can be given to the employees for their on the spot attitude towards some particular situation 3. This is a mere recognition for good and humble gestures towards peer and presence of mind throughout. 4. Their managers give this award to the employee as they can keep a constant observation on their employees. According to this scheme employees can be awarded: To the employees for their on the spot attitude towards some particular situation

For good and humble gestures towards peer and presence of mind throughout