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4 4  
5 5  = Overview =
6 6  
7 -Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India. On any given day, nine out of ten Indian households use its products to feel good, look good and get more out of life – giving it a unique opportunity to build a brighter future.
7 +Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India. On any given day, nine out of ten Indian households use its products to feel good, look good and get more out of life – giving it a unique opportunity to build a brighter future.{{footnote}}https://www.hul.co.in/about/who-we-are/introduction-to-hindustan-unilever/{{/footnote}}
8 8  
9 -[[https:~~/~~/www.hul.co.in/about/who-we-are/introduction-to-hindustan-unilever/>>url:https://www.hul.co.in/about/who-we-are/introduction-to-hindustan-unilever/]]
10 -
11 -
12 12  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.
13 13  
14 -
15 15  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.
16 16  
17 -
18 18  The Company has about 21,000 employees and has sales of INR 38,273 crores (the financial year 2019-20). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products with sales in over 190 countries and an annual sales turnover of €52 billion in 2019. Unilever has over 67% shareholding in HUL.
19 19  
15 += Brands =
20 20  
17 +The company make some of the best known brands in the world, and those brands are used by 2 billion people every day.{{footnote}}https://www.hul.co.in/brands/{{/footnote}}
21 21  
19 +== Foods & Refreshment ==
22 22  
23 -Brands
21 +* Boost
22 +* Cornetto
23 +* Horlicks
24 +* Horlicks Cardia+
25 +* Horlicks Growth+
26 +* Horlicks Lite
27 +* Horlicks Protein+
28 +* Junior Horlicks
29 +* Knorr
30 +* Lipton
31 +* Magnum
32 +* Mother's Horlicks
33 +* Women's Horlicks
34 +* Bru
35 +* Annapurna
36 +* Brooke Bond 3 Roses
37 +* Brooke Bond Red Label
38 +* Brooke Bond Taaza
39 +* Brooke Bond Taj Mahal
40 +* Kissan
41 +* Kwality Wall’s
24 24  
25 -The company make some of the best known brands in the world, and those brands are used by 2 billion people every day.
43 +== Beauty & Personal Care ==
26 26  
27 -[[https:~~/~~/www.hul.co.in/brands/>>url:https://www.hul.co.in/brands/]]
45 +* Axe
46 +* Dove
47 +* Lifebuoy
48 +* Love Beauty and Planet
49 +* Lux
50 +* Pepsodent
51 +* Pond’s
52 +* Sunsilk
53 +* Sure
54 +* TRESemmé
55 +* Vaseline
56 +* Aviance
57 +* Citra
58 +* Breeze (soap)
59 +* Clear
60 +* Close Up
61 +* Fair & Lovely
62 +* Lakmé
63 +* Pears
64 +* TIGI
65 +* TONI&GUY
66 +* Brylcreem
67 +* Clinic Plus
68 +* Elle 18
69 +* Hamam
70 +* Indulekha
71 +* Liril
72 +* Lever ayush
73 +* Rexona
74 +* Pure Derm
28 28  
76 +== Home Care ==
29 29  
30 -Foods & Refreshment
78 +* Cif
79 +* Comfort
80 +* Active Wheel
81 +* Domex
82 +* Rin
83 +* Surf excel
84 +* Vim
85 +* Sunlight
86 +* Love & Care
31 31  
88 += Water Purifier =
32 32  
33 -Boost
90 +* Pureit
34 34  
35 -Cornetto
92 += Industry Overview =
36 36  
37 -Horlicks
94 +Hindustan Unilever Limited operates in the Fast-Moving Consumer Goods (FMCG) industry which continues to be one of the biggest structural opportunities that its country offers. Despite being one of the fastest growing markets globally for FMCG products, the per capita FMCG consumption in India is still amongst the lowest in the world, giving the industry a long runway for growth. The complexity and volatility continue to rise. In the last quarter of financial year 2019-20, Hindustan Unilever has seen an unprecedented global breakout of the COVID-19 pandemic leading to a humanitarian crisis, lockdown across many countries and a significant economic fallout. Around the world, growth has decelerated markedly. In India, the economic impact of COVID-19 is trickling in on the backdrop of an already challenging macro-economic environment. In 2019, the company also witnessed some weather disruptions in the form of late onset of monsoon in parts of the country, post-monsoon heavy showers and a delayed winter. Global trade dynamics, volatile commodity cycles and climate concerns continue to increase the uncertainty further. Conditions like these create challenges for companies and categories across the spectrum. On the other hand, new technologies are changing the landscape of the consumer goods market, bringing opportunities for brands and consumers alike. Consumers are shopping through more diverse channels and smaller local brands as well as digital-first brands are increasingly entering the market.{{footnote}}https://www.hul.co.in/Images/annual-report-2019-20_tcm1255-552034_1_en.pdf{{/footnote}}
38 38  
39 -Horlicks Cardia+
40 -
41 -Horlicks Growth+
42 -
43 -Horlicks Lite
44 -
45 -Horlicks Protein+
46 -
47 -Junior Horlicks
48 -
49 -Knorr
50 -
51 -Lipton
52 -
53 -Magnum
54 -
55 -Mother's Horlicks
56 -
57 -Women's Horlicks
58 -
59 -Bru
60 -
61 -Annapurna
62 -
63 -Brooke Bond 3 Roses
64 -
65 -Brooke Bond Red Label
66 -
67 -Brooke Bond Taaza
68 -
69 -Brooke Bond Taj Mahal
70 -
71 -Kissan
72 -
73 -Kwality Wall’s
74 -
75 -
76 -Beauty & Personal Care
77 -
78 -Axe
79 -
80 -Dove
81 -
82 -Lifebuoy
83 -
84 -Love Beauty and Planet
85 -
86 -Lux
87 -
88 -Pepsodent
89 -
90 -Pond’s
91 -
92 -Sunsilk
93 -
94 -Sure
95 -
96 -TRESemmé
97 -
98 -Vaseline
99 -
100 -Aviance
101 -
102 -Citra
103 -
104 -Breeze (soap)
105 -
106 -Clear
107 -
108 -Close Up
109 -
110 -Fair & Lovely
111 -
112 -Lakmé
113 -
114 -Pears
115 -
116 -TIGI
117 -
118 -TONI&GUY
119 -
120 -Brylcreem
121 -
122 -Clinic Plus
123 -
124 -Elle 18
125 -
126 -Hamam
127 -
128 -Indulekha
129 -
130 -Liril
131 -
132 -Lever ayush
133 -
134 -Rexona
135 -
136 -Pure Derm
137 -
138 -
139 -Home Care
140 -
141 -Cif
142 -
143 -Comfort
144 -
145 -Active Wheel
146 -
147 -Domex
148 -
149 -Rin
150 -
151 -Surf excel
152 -
153 -Vim
154 -
155 -Sunlight
156 -
157 -Love & Care
158 -
159 -
160 -Water Purifier
161 -
162 -Pureit
163 -
164 -
165 -
166 -
167 -Industry Overview
168 -
169 -Hindustan Unilever Limited operates in the Fast-Moving Consumer Goods (FMCG) industry which continues to be one of the biggest structural opportunities that its country offers. Despite being one of the fastest growing markets globally for FMCG products, the per capita FMCG consumption in India is still amongst the lowest in the world, giving the industry a long runway for growth. The complexity and volatility continue to rise. In the last quarter of financial year 2019-20, Hindustan Unilever has seen an unprecedented global breakout of the COVID-19 pandemic leading to a humanitarian crisis, lockdown across many countries and a significant economic fallout. Around the world, growth has decelerated markedly. In India, the economic impact of COVID-19 is trickling in on the backdrop of an already challenging macro-economic environment. In 2019, the company also witnessed some weather disruptions in the form of late onset of monsoon in parts of the country, post-monsoon heavy showers and a delayed winter. Global trade dynamics, volatile commodity cycles and climate concerns continue to increase the uncertainty further. Conditions like these create challenges for companies and categories across the spectrum. On the other hand, new technologies are changing the landscape of the consumer goods market, bringing opportunities for brands and consumers alike. Consumers are shopping through more diverse channels and smaller local brands as well as digital-first brands are increasingly entering the market.
170 -
171 -[[https:~~/~~/www.hul.co.in/Images/annual-report-2019-20_tcm1255-552034_1_en.pdf>>url:https://www.hul.co.in/Images/annual-report-2019-20_tcm1255-552034_1_en.pdf]]
172 -
173 -
174 -
175 175  In this year, before the breakout of COVID-19, the macro-economic environment had been challenging with lower GDP growth rates, liquidity crunch, and peaking unemployment rate. This is reflected in sluggish demand and weakening consumer sentiment. FMCG markets witnessed deceleration from the highs of 2018 with rural markets seeing sharper rate of consumption slowdown than urban markets. Overall, market also saw disparate trends across divisions with discretionary categories like Beauty & Personal Care seeing the biggest adverse impact of slow down, while Home Care and Foods and Refreshment categories being relatively more insulated due to their essential nature.
176 176  
177 177  Government has initiated various measures to boost the economy including direct benefit transfer, increased allocations to key sectors like infrastructure, agriculture, MSMEs etc. Reserve Bank of India has cut repo rate by 185 bps on a cumulative basis this year to support the aggregate demand and private investment as well as ease liquidity given the COVID-19 situation. The reduction in corporate tax rate is a big boost to the industry; it makes India much more competitive globally and should accelerate investments in the economy. The slew of policy measures and announcements are welcome and signal the Government’s strong commitment to arrest and reverse the slowdown.
... ... @@ -180,21 +180,18 @@
180 180  
181 181  During the year, the company, in line with its commitment to participate in the ‘Make in India’ initiative of the Government of India, decided to form a new 100% Subsidiary to leverage the growth opportunities in a fast-changing business environment and this will help the company in becoming more agile and customer-focused.
182 182  
183 -
184 184  Societies are becoming more diverse and fragmented. Hindustan Unilever is seeing, for example, growing splits between generations, rising affluence in the middle-income tier, growing young and working population and changing family structures. As people increasingly interact with each other and with businesses online, consumers are making more decisions based on their values. Digitally connected shoppers are over-indexed on consumption across all categories and especially in niche categories. They are also using both online and offline channels to find better, more personalised products and services more easily and quickly. In this landscape, brands have to be more visible, convenient and part of the conversation – taking a stand and action on the issues people care about. The fragmentation of consumer expectations and retail channels creates both challenges and opportunities for companies like ours.
185 185  
186 186  Hindustan Unilever is cognizant of the non-linear consumer journey today that traverses across different channels as consumers go through the lifecycle of awareness-consideration-purchaseexperience-repeat-loyalty. Hence, Hindustan Unilever is focused on creating an end-to-end solution for a seamless experience and route-to-market disruption. The company continue to stay close to its consumers. The company continue to put unequivocal focus on building brands with purpose that take a stance and make a positive difference to the society and environment. Underpinned by its Compass belief that brands with purpose grow, its brands are on a journey of becoming purposeful such as Lifebuoy preventing life-threatening diseases, Domex improving sanitation, Red Label promoting inclusivity and togetherness and Wheel empowering women. This enables its brands to connect with consumers at a deeper emotional level.
187 187  
188 -
189 189  The beginning of 2020 has witnessed the global spread of COVID-19, i.e. coronavirus. Global threat from COVID-19 is continuing to grow, and at a rapidly accelerating rate. Governments in many countries announced lockdowns and asked people to stay indoors. Around the world, these coronavirus lockdowns have driven professional and social life out of the physical world and into the virtual realm. The economic fallouts of this is still difficult to assess as the situation is still evolving.
190 190  
191 191  In these unprecedented times, Hindustan Unilever is falling back on the fundamentals to drive agility and responsiveness across its value chain. Hindustan Unilever has structured its response around five key imperatives, drawing strength from its values and guiding its strategic framework. The five workstreams that are serving as a foundation of its business and serving its multiple stakeholders during this crisis are – People, Supply, Demand, Community and Cost & Cash.
192 192  
112 += Business Overview =
193 193  
194 -Business Overview
114 +== Beauty & Personal Care ==
195 195  
196 -Beauty & Personal Care
197 -
198 198  In the Beauty & Personal Care (BPC) division, Hindustan Unilever has a wide-spread portfolio of more than 900 Stock Keeping Units (SKUs) spread across one or more of the categories with many products tailored for the 14 consumer clusters that Hindustan Unilever has identified in India. Hindustan Unilever is ensuring that each product portfolio straddles the pricebenefit pyramid so that the brands are accessible and aspirational across the length and breadth of the country. The penetration and consumption of the categories in which the company operate, have a healthy headroom to grow, indicating the long-term potential in the BPC market.
199 199  
200 200  The BPC category being discretionary in nature is more affected on account of the challenging macro-economic environment and weather disruptions. Within the category, Personal Products have delivered good growth this year. Hindustan Unilever is working on its Skin Cleansing portfolio to strengthen the competitiveness by taking decisive interventions in the areas of product, proposition, pricing and communication. The company's Skin Cleansing brands command a strong consumer salience and Hindustan Unilever is confident that its ongoing and planned interventions will spur growth in this segment.
... ... @@ -209,9 +209,8 @@
209 209  
210 210  The company continue to focus on the key growth channels of Modern Trade, e-Commerce and Health & Beauty. The company's premiumisation journey is accelerated through the touch and feel benefits of Modern Trade. This channel also helps it in educating consumers on the premium benefit proposition through assisted selling and counters. Hindustan Unilever is also leveraging the fastest growing channel of e-Commerce by making all its brands available across platforms and playing a differentiated portfolio strategy curated for this channel. The Health & Beauty channel continues to grow ahead of the market and Hindustan Unilever has strengthened its position in this channel with sharply differentiated portfolio, differential distribution models and future-fit capabilities.
211 211  
130 +== Home Care ==
212 212  
213 -Home Care
214 -
215 215  The company's Home Care business sustained its robust volume-driven and profitable growth during the year in both Fabric Solutions and Home and Hygiene. The consistency and resilience of its performance in Home Care, in what has been a challenging market, reflects the discipline and rigour with which Hindustan Unilever is managing its business and executing its strategy The premiumisation opportunity in its core categories remains extremely strong in the country. Hindustan Unilever is well-placed to lead this trend with a strong portfolio of brands including Surf excel, Rin, Comfort and Vim liquid. On the back of continuing premiumisation with Surf excel and Rin, its Fabric Solutions business has delivered a strong performance this year. Hindustan Unilever is driving access to its premium brands with introduction of low unit price packs. In line with this strategy, the company launched Love & Care, a premium expert care solution tailor made for special fabrics like fine cottons, silk and woollens. In the Life Essentials segment, as well, Hindustan Unilever has sharpened the focus on premium portfolio in line with the evolving needs of consumers. Pureit continues its thrust on winning consumers through value added innovations and channel differentiating products. This year, the company launched Pureit Copper+, an innovation inspired by the age-old tradition of storing water in Copper vessels, which adds goodness of copper to RO purified water.
216 216  
217 217  At the same time, its focus on the mass and popular segment also remains unchanged and the company continue to benefit from a large portfolio that straddles the economic pyramid with strong presence
... ... @@ -222,9 +222,8 @@
222 222  
223 223  The company's focus is to build a portfolio of liquid detergents that is spread across the price-benefit map. Surf excel started this journey with the first detergent liquid launch of Matic designed for washing machines and in 2019, the company launched Surf excel Easy Wash liquid into the handwashing segment. This year, the company also launched Sunlight liquid detergent in select geographies and a premium expert care solution range under its new detergents brand, Love & Care. With this liquid portfolio, Hindustan Unilever is not only driving the future formats but also creating a modernised image of its brands in the minds of new-age consumers and thereby, keeping its brands relevant over time. The company also continue to drive the growth of adjacencies i.e. the fabric conditioner category through market development activities and relevant communication to break the barriers of entry into this new category. The company continue the emphasis on building this category of future with launch of Comfort Perfume Deluxe range in select geographies offering longer lasting benefits on fragrances. The company also introduced a unique ancillary product, ‘Magic’ Rinse Powder sachet, which eases the rinsing process by reducing the foam and thereby, requiring less water. This is specially designed to battle the water crisis in areas of Tamil Nadu where people are facing unparalleled challenges. Rin bar was also relaunched in South India, with visual cues. In Home and Hygiene, Vim entered in Dish Wash applicator space, through the launch of Vim scrubber. Hindustan Unilever is building the reach of Vim liquids using digital media and precision marketing to deliver multiple messages to surpass the barriers that consumers may have in adopting this new category. Hindustan Unilever is also adopting a differentiated strategy in toilet cleaners by launching Domex powder in select geographies, which is a unique solution for Indian squat toilets.
224 224  
142 +== Foods & Refreshment ==
225 225  
226 -Foods & Refreshment
227 -
228 228  The Foods & Refreshment division delivered yet another year of healthy competitive and profitable growth across categories. The business displayed resilience in the wake of macro-economic headwinds and continued its growth momentum driven by the strategy built on the following four pillars.
229 229  
230 230  The company continue to focus on strengthening the core portfolio through improved innovation, increased penetration and its Winning in Many Indias (WiMi) strategy. In Foods category, the core portfolio of Jams and Ketchup delivered good growth this year. Kissan Ketchup continued its focus on sharper activations basis its differentiated consumer insights and further cemented its market leadership in the segment. The company's deep understanding of consumers and cluster-wise patterns help it to customise its portfolio offering to different consumer tastes and preferences. Kissan range of international sauces which was launched last year saw good traction in the market and is now available nationally. This year also marked the launch of globally loved brand, Hellmann’s Mayonnaise, in Kolkata. In Tea, all its brands continued to focus on serving consumers with superior products at the right price. New advertisements across the brands continued to strengthen their franchise. Taaza continued to upgrade consumers along the quality pyramid by offering superior value at low price points. Fundamental consumer understanding in rural, right price points and targeted communication have been instrumental in the strong growth curve seen by Taaza. The company launched a new communication on Taj Mahal tea to bring alive the brand’s purpose of promoting Indian classical music. In Coffee, the company introduced an improved instant coffee product by leveraging state-of-the-art roasting and extraction
... ... @@ -235,21 +235,15 @@
235 235  
236 236  The conundrum its F&R business has been facing is that Hindustan Unilever has a strong existing business; but the company play in relatively slower growing and highly penetrated categories. This has been a driver for its foray into leveraging mergers and acquisitions to expand its portfolio. In this aspect, the last year has been significant with two key transactions: Integration of Adityaa Milk and merger of Nutrition Business of GSK CH. The company successfully integrated the business of Adityaa Milk Ice creams, which has strengthened its geographical presence in the South of India, unlocked physical availability through cabinets expansion in key markets and enhanced its bottom-of-pyramid offerings.
237 237  
154 += Financial Highlights =
238 238  
239 -Financial Highlights
240 240  
157 +On April 30th, 2020 Hindustan Unilever Limited (HUL) announced its results for the quarter ending 31st March 2020.{{footnote}}https://www.hul.co.in/Images/mq-20-results_tcm1255-550931_1_en.pdf{{/footnote}}
241 241  
242 -On April 30th, 2020 Hindustan Unilever Limited (HUL) announced its results for the quarter ending 31st March 2020.
243 -
244 -[[https:~~/~~/www.hul.co.in/Images/mq-20-results_tcm1255-550931_1_en.pdf>>url:https://www.hul.co.in/Images/mq-20-results_tcm1255-550931_1_en.pdf]]
245 -
246 -
247 247  The Company’s turnover for the financial year ended 31st March, 2020 was Rs. 38,273 crores as against turnover of Rs. 37,660 crores for the financial year ended 31st March, 2019.
248 248  
249 -
250 250  The Profit before tax was Rs. 9092 crores as against Rs. 8,522 crores for the corresponding year. Depreciation / amortization for the year was Rs. 938 crores as against Rs. 524 crores in the corresponding year. Exceptional Items for the period amounted to a loss of Rs. 197 crores as against loss of Rs. 227 crores in the corresponding year.
251 251  
252 -
253 253  The spread of COVID 19 impacted the business from mid-March, which culminated into scaling down of operations post the national lockdown. Domestic Consumer Growth declined by 9% with a decline of 7% in Underlying Volume Growth. Reported EBITDA margin reduced by 40 bps (160 bps reduction on comparable basis after adjusting for accounting impact of Ind AS 116). Profit after tax (PAT) was lower by 1%. In this challenging economic context, HUL performance has been competitive with corporate market share gains.
254 254  
255 255  For FY 2019-20, Domestic Consumer Growth was 2% with Underlying Volume Growth of 2%. The company's EBITDA margin improved by 100 bps on comparable basis, PAT (bei)*, grew by 11% to Rs. 6743 Cr. and PAT at Rs. 6738 Cr. was up by 12%. The company sustained its track record of strong cash generation. The Board of Directors have proposed a final dividend of Rs. 14 per share, subject to the approval of the shareholders at the AGM. Together with the interim dividend of Rs. 11 per share, the total dividend for the financial year ending 31st March 2020 amounts to Rs. 25 per share; an increase of 14%.
... ... @@ -256,4 +256,6 @@
256 256  
257 257  Demand patterns are changing, and Hindustan Unilever is likely to see an upswing in categories like health, hygiene and nutrition. In the near term, Hindustan Unilever is also likely to see some adverse impact on discretionary categories and out of home channel. Hindustan Unilever has a strong pipeline of relevant innovations and are staying close to consumers to adapt to the emerging demand patterns in the short term and prepare for any structural changes in the medium term. Hindustan Unilever has redesigned its communications to stay relevant to the consumers in the current environment.
258 258  
259 -.
169 += References =
170 +
171 +{{putFootnotes/}}
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