HINDUSTAN UNILEVER LIMITED

INTRODUCTION Hindustan Unilever Limited also called Hindustan

Lever Limited (HLL) was established in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. The company was renamed in late June 2007 to “Hindustan Unilever Limited”

Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods Company, with a customer base of 2 out of every 3 Indian in the category of Home & Personal Care Products and Foods & Beverages.

The company has combined volumes of about 4 million tones and sales of Rs. 13,718 crores. HLL is also one of the country's largest exporters.

Head quartered in Mumbai, India has an employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people.

The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007.

The Government of India has recognized HLL as a Golden Super Star Trading House.

It is a mission HUL shares with its parent company,

Unilever, which holds 52.10% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.

MISSION

Hindustan 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.

STANDARD OF CONDUCT We conduct our operations with honesty,

integrity and openness, and with respect for the human rights and interests of our employees.

We shall similarly respect the legitimate interests of those with whom we have relationships.

CULTURE & VALUES

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 it requires the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners.

The company recognises that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques.

The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them.

MANAGEMENT STRUCTURE Hindustan Unilever Limited is India's largest Fast Moving

Consumer Goods (FMCG) company. HUL and Group companies have about 15,000 employees, including 1200 managers.

The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company’s nationwide operations.

For this, HUL is organised into two self-sufficient divisions - Home & Personal Care and Foods & Beverages - supported by certain central functions and resources to leverage economies of scale wherever relevant.

Board At the apex is the Board, headed by the

Chairman, and comprising 5 whole time Directors and 5 independent non-executive Directors. The day to day operations are supervised by the National Management comprising the Vice Chairman, Managing Director (HPC), Managing Director (Foods) and the Finance Director.

Divisions Each division is self-sufficient with dedicated resources and assets in sales, marketing, commercial, and manufacturing. The two divisions are further reorganised into categories.

Typically, each category and each function - Sales, Commercial, Manufacturing - is headed by a Vice President. They with their respective Managing Director, comprise that Division's Management Committee.

For managing sales operations, HUL divides the country into four regions, with regional branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a Regional Manager, they comprise Regional Sales Managers and Area Sales Managers, assisted by dedicated field forces, comprising Sales Officers and Territory Sales Incharges.

In Marketing, each category has a Marketing Manager who heads a team of Brand Managers dedicated to each or a group of brands.

The commercial team of a Division is responsible for its supply chain management. There are teams dedicated to sourcing, planning and logistics.

Each Division has a nationwide manufacturing base, with each factory peopled by teams of Production, Engineering, Quality Assurance, Commercial and Personnel Managers.

BRANDS

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

HOME & PERSONAL CAREFOODSHINDUSTAN UNILEVER NETWORKEXPORTWATER

HOME & PERSONAL CARE

Lux

Lifebuoy Liril Hamam Breeze Dove Pears Rexona

Surf Excel Rin Wheel Sunlight

  PERSONAL WASH LAUNDRY

HOME & PERSONAL CARE

Fair & Lovely Pond’s Vaseline Aviance Sunsilk Naturals Clinic

Pepsodant Closeup Axe Rexona

SKIN CARE & HAIR CARE ORAL CARE &DEODRANTS

HOME & PERSONAL CARE

Lakme Ayush

COLOUR COSMETICS AYURVEDIC PERSONAL & HEALTH CARE

FOODS

Brooke Bond Lipton Brooke Bond Bru

Kissan Annapurna Knorr Kwality Wall’s

TEA & COFEE FOODS & ICE CREAM

HINDUSTAN UNILEVER NETWORK

Started in 2003, Hindustan Unilever Network (HUN) is HUL's Direct Selling arm. It is a multi-category direct selling business offering a wide range of high-quality, high-performance products for its consumers and also exciting business and personal development opportunities for its consultants. It already has about 7 lakh consultants - all independent entrepreneurs, trained and guided by HUN's expert managers and trainers.

HUN has already spread to 1500 towns and cities, backed by 28 offices and over 130 service centers' across the country.

HUN’S RANGE OF STAR PRODUCTS Lever Home – Detergents Lever Home - Home cleaning Aviance - Personal care & cosmetics for Men &

Women Ayush Spa range, Aviance and DYI - Soaps Mentadent - Oral Care Ayush Therapy - Health Care DIY - Male Grooming Ayush Poshak Rasayana - Children's Nutrition Ayush Rakshak Rasayana - Adult Nutrition

EXPORTS

HUL is also a global marketing arm for select licensed Unilever brands and also works on building categories with core country.

HUL Exports offers high level of service with flexibility and responsiveness thorough out the supply chain. It has a dedicated organization structure to support this endeavor and this has helped in growth of these businesses in particular.

HUL’s key focus in the exports business is on two broad categories. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies to other Unilever companies.

HUL enjoys international recognition within Unilever and outside for its quality, reliability and speed of customer service.

WATER

Pureit, a breakthrough offering of Hindustan Unilever (HUL), comes with many unique benefits – complete protection from all water-borne diseases, unmatched convenience and affordability.

Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting.

FINACIAL DATA

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Sales 7120,06 8342,75 10215,24 10917,69 11392,14 11781,30 10951,61 11096,02 10888,38 11975,53

Profit After Taxation(crores) 412,70 580,25 580,25 1069,94 1310,09 1540,95 1731,32 1804,34 1199,28 1354,51

BUSSINES ACHIVEMENT Successfully trimmed unsuccessful brands. Leading brands increased from 75% to 93%. 12 brands with sales of 1 B+. Consistent growth in Home & Personal Care. Improved overall quality & growth profile of Food

portfolio. Global procurement programs have delivered 2.4B,

excess of 1.6B target. Improved capital efficiency. Operating assets have improved by 9%,exceeding 6%

target.