HUL- India’s FMCG Leader

Author - Aman Aditya



Hindustan Unilever is India’s largest Fast-moving Consumer Goods (FMCG) company. With a history of almost 80 years in India. It all started in the year 1888 when the new era of branded fast-moving consumer goods started and After few years Unilever started its first Indian subsidiary named Hindustan Vanaspati Manufacturing company in India in the year 1931. And it was a matter of just few years when two more subsidiaries were formed namely Lever brothers India Limited in the year 1933 and United Traders Limited in the year 1935. In the year 1956, all these three companies got merged and formed HUL (Hindustan Unilever Limited). After that since the year 1992 the company has done many mergers and demergers to name a few, Tata Oil Mills company merged into HUL in the year 1993, Bon Limited got merged into HUL in the year 2009.

Recently Hindustan Unilever Ltd (HUL) has completed the merger of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) with itself, the company has additionally paid Rs3,045 crore to acquire the Horlicks brand for India from GSK after seeking approval from the board of directors of HUL. Apart from Horlicks, brands such as Boost, Maltova, and Viva which were part of GSKCH now came to HUL’s brand portfolio by virtue of this merger.


According to HUL, nine out of ten Indian households use one or more HUL brands. They have divisions like Homecare, Beauty & Personal Care, Foods & Refreshments. They have also launched new brand- Nature Protect- which will include over half a dozen products in the hygiene segment, as part of its strategy to launch plant-based products in the backdrop of the COVID-19 outbreak. Their Brand Visibility, Innovations, Integrated Distribution System are a few of their strengths to count on. With the increase in the local players, there is a tough competition for HUL and the threat to lose the market share is on them. But having said that they have opportunities like the market is expanding and they can utilize that, the income levels are also increasing for the people in India.


They are the company who believed in women empowerment, their flagship project “Project Shakti” enables rural women in villages across India to nurture an entrepreneurial mindset and become financially independent by selling the HUL products in the villages. Through this, the regular income would be provided to these women (micro-entrepreneurs). They have nearly 1.20 lakh women micro-entrepreneurs across 18 states. Recently they have partnered with UNICEF to support India’s fight against COVID-19 with the national mass-communication campaign titled '#BreakTheChain #VirusKiKadiTodo'.


SWOT Analysis of HUL -


Strength

  1. Brand Visibility

  2. Market Leader in Consumer Goods.

  3. Innovative FMCG Firm

  4. Integrated Distribution System

  5. High Brand Awareness

  6. Market Share

  7. Share of Wallet.

Weakness

  1. Decreasing Market Share

  2. Large number of brands in product categories.

Opportunities

  1. Expanding Market.

  2. Increasing Income Level.

  3. Awareness of Usage rate of consumer goods.

Threat

  1. Competition in the Market

  2. Price of Commodities.

  3. Buyers Power


Distribution Network of HUL






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