INTRODUCTION TO HINDUSTAN UNILEVER

LIMITED
In the summer of 1888, visitors to the Kolkata harbour 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 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.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The
growth process has been accompanied by judicious diversification, always in line with Indian opinions
and aspirations.

The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the
Group's growth curve. Removal of the regulatory framework allowed the company to explore every single
product and opportunity segment, without any constraints on production capacity.

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 1995, 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
Icecream 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 July 1993, 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 Icecream
Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were
acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had
significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a
common distribution system since 1993 for Personal Products. The two also had a common management
pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale
economies both in domestic and export markets and enable it to fund investments required for
aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods
to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to
private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business.
In 2002, HUL acquired the government's remaining stake in Modern Foods.

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.
OVER 100 YEARS LINK WITH INDIA
YEAR MILESTONES
1888 Sunlight soap introduced in India.

Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and
1895
Karachi.
1902 Pears soap introduced in India.
1903 Brooke Bond Red Label tea launched.
1905 Lux flakes introduced.
1913 Vim scouring powder introduced.
1914 Vinolia soap launched in India.
Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens,
1918
Verschure Creameries, and Hartogs.
1922 Rinso soap powder introduced.
1924 Gibbs dental preparations launched.
1925 Lever Brothers gets full control of North West Soap Company.
1926 Hartogs registers Dalda Trademark.
1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.
Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory
1931
site bought.
1932 Vanaspati manufacture starts at Sewri.
Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever
1933
Brothers India Limited incorporated on October 17.
Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden
1934
Reach Factory, Kolkata rented and expanded to produce Lever brands.
1935 United Traders incorporated on May 11 to market Personal Products.
1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.
1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as
 a brand.
Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own
1941
sales force.
Unilever takes firm decision to "train Indians to take over junior and senior management
1942
positions instead of Europeans".
1943 Personal Products manufacture begins in India at Garden Reach Factory.
Reorganisation of the three companies with common management but separate marketing
1944
operations.
1947 Pond's Cold Cream launched.
Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad
1951
Vanaspati factories bought.
1955 65% of managers are Indians.
Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity
1956
participation.
1957 Unilever Special Committee approves research activity by Hindustan Unilever.
1958 Research Unit starts functioning at Mumbai Factory.
1959 Surf launched.
Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are
1961
Indians.
1962 Formal Exports Department starts.
1963 Head Office building at Backbay Reclamation, Mumbai, opened.
Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo
1964
launched.
1965 Signal toothpaste launched; Indian shareholding increases to 14%.
Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian
1966 shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea
launched.
1967 Hindustan Unilever Research Centre, opens in Mumbai.
Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals
1968
Unit commissioned at Andheri; informal price control on soap begins.
1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special
1971
Committee - plan approved; Clinic shampoo launched.
1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.
Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn;
1974
Liril marketed.
Ten-year modernisation plan for soaps and detergent plants; Jammu project work begins;
1975 statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste
launched.
Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins
1976
functioning.
1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.
1979 Sodium Tripolyphospate plant at Haldia commissioned.
Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in
1980
the company comes down to 51%.
1982 Government allows 51% Unilever shareholding.
1984 Foods, Animal Feeds businesses transferred to Lipton.
Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out;
1986
Khamgaon Soaps unit and Yavatmal Personal Products unit start production.
1988 Launch of Lipton Taaza tea.
1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.
1991 Surf Ultra detergent launched.
1992 HUL recognised by Government of India as Star Trading House in Exports.
HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company
with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger
1993
ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the
UB Group.
1994 HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark Corporation
form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and
Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and
 Milkfood 100% brandnames and distribution assets. HUL introduces Wall's.
HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever
1995 Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading
House.
Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group
1996 company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1; HUL
introduces branded atta; Surf Excel launched.
Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation
1997
Centres also come up.
Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998.
1998
HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.
Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever
2000 Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector
company to be disinvested by the Government of India.
HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush
2002
Therapy Centres.
2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group
2005 Launch of "Pureit" water purifiers
2006 Brookefields food operations moved to Mumbai
Company name formally changed to Hindustan Unilever Limited after receiving the
approval of share holders during the 74th AGM on 18 May 2007
2007
Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark
2008 HUL completes 75 years on 17th October 2008
PRESENT STATURE

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching
the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products
and Foods & Beverages. The company’s Turnover is Rs. 20, 239 crores (for the 15 month period –
January 2008 to March 31, 2009) .

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 €40.5 billion in
2008. Unilever has about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the list of “Global Top
Companies for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune
magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in
India.

The mission that inspires HUL's more than 15,000 employees, including over 1,300 managers, is to “add
vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands
that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent
company, Unilever, which holds 52.10% of the equity.

HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India.
Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in
1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June
25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first
foreign subsidiary company to do so. Today, the company has more than 360675 resident shareholders.

HUL’s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up,
Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names
across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded
staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in
backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's
distribution network covers 6.3 million retail outlets including direct reach to over 1 million.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The
Hindustan Unilever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

HUL believes that an organisation’s worth is also in the service it renders to the community. HUL focuses
on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint. It is
also involved in education and rehabilitation of special or underprivileged children, care for the destitute
and HIV-positive, and rural development. HUL has also responded in case of national calamities /
adversities and contributes through various welfare measures, most recent being the relief and
rehabilitation of the people affected by the Tsunami disaster, in India.
HUL’s Project Shakti is a rural initiative that targets small villages populated by less than 2000
individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby
improving their livelihood and the standard of living in rural communities. Shakti also provides health
and hygiene education through the Shakti Vani programme. The program now covers 15 states in India
and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly
reaching to 150 million rural consumers.

HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavours to
induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of
diarrhoea. It has already touched 120 million people in approximately 50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in
identifying itself with Indian aspirations and needs in every walk of life.
RESEARCH METHODOLOGY
2.1 Statement of the Research
To prepare Company profile and analyze its Secondary data and to draw
conclusions.

2.2 Purpose of the study

Company Profile Study followed of Hindustan Unilever Ltd. Followed by its
SWOT analysis.
2.3 Objectives
 To do company analysis based on.

 P/L account
 Balance Sheet
 Cash flows.
 quaterly, half yearly, nine monthly results
 raw material data.
 finished goods data.
 Finantial Structure.
 Finantial ratios.
 To do SWOT analysis.

2.4 Sources of Data

I have collected the data for the study from Secondary sources..Secondary
data is collected through books, articles, leaflets, etc.
2.8 Data Collection Tool

The data for the purpose of the study has been collected through secondary
sources such as books, articles, internet, leaflets, dealers etc.
2.9 Research Instrument
Keeping in mind the objectives of study, I have drawn various conclusions.
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 get more out of life.

CODE OF BUSINESS PRINCIPLES

Introduction

Unilever has earned a reputation for conducting its business with integrity and with respect for all those
whom our activities affect. This reputation is an asset, just as valuable as our people and our brands.

To maintain this reputation requires the highest standards of behaviour – consistently observed by all of
us. Unilever’s Code of Business Principles sets out these standards and we expect all our employees to
adhere to them.

Being a successful business does not just mean investing for growth and balancing short and long term
interests. It also means caring about our consumers, employees and shareholders, our business partners
and the world in which we live.

We therefore want this Code to be more than a collection of high sounding statements. It must have
practical value in our day-to-day business lives and each of us must follow these principles both in the
spirit and the letter.

If we do so, Unilever’s reputation will be enhanced, our business will perform better and our professional
lives will be all the more fulfilling.

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.

Obeying the Law

Unilever companies and our employees are required to comply with the laws and regulations of the
countries in which we operate.
Employees

Unilever 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 our company.

We will recruit, employ and promote employees on the sole basis of the qualifications and abilities
needed for the work to be performed.

We are committed to safe and healthy working conditions for all employees. We will not use any form of
forced, compulsory or child labour.

We are committed to working with employees to develop and enhance each individual's skills and
capabilities.

We respect the dignity of the individual and the right of employees to freedom of association.

We will maintain good communications with employees through company based information and
consultation procedures.

Consumers
Unilever 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 will be accurately
and properly labelled, advertised and communicated.

Shareholders
Unilever will conduct its operations in accordance with internationally accepted principles of good
corporate governance. We will provide timely, regular and reliable information on our activities,
structure, financial situation and performance to all shareholders.

Business Partners
Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and
business partners.

In our business dealings we expect our business partners to adhere to business principles consistent with
our own.

Community Involvement
Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfil our
responsibilities to the societies and communities in which we operate.
Public Activities
Unilever companies are encouraged to promote and defend their legitimate business interests.

Unilever will co-operate with governments and other organisations, both directly and through bodies such
as trade associations, in the development of proposed legislation and other regulations which may affect
legitimate business interests.

Unilever neither supports political parties nor contributes to the funds of groups whose activities are
calculated to promote party interests.

The Environment
Unilever is committed to making continuous improvements in the management of our environmental
impact and to the longer-term goal of developing a sustainable business.

Unilever will work in partnership with others to promote environmental care, increase understanding of
environmental issues and disseminate good practice.

Innovation
In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of
society. We will work on the basis of sound science applying rigorous standards of product safety.

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

Business Integrity
Unilever 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 must be rejected immediately and
reported to management.

Unilever accounting records and supporting documents must accurately describe and reflect the nature of
the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or
maintained.

Conflicts of Interests
All Unilever employees are expected to avoid personal activities and financial interests which could
conflict with their responsibilities to the company.

Unilever employees must not seek gain for themselves or others through misuse of their positions.
Compliance – Monitoring – Reporting
Compliance with these principles is an essential element in our business success. The Unilever Board is
responsible for ensuring these principles are applied throughout Unilever.

The Chief Executive Officer is responsible for implementing these principles and is supported in this by
the Corporate Code Committee chaired by the Chief Legal Officer, Members of the Committee are the
Group Secretary, the Chief Auditor, the SVP HR and the SVP Communications. The Global Code Officer
is Secretary to the Committee. The Committee presents quarterly updates to the Corporate Responsibility
and Reputation and the Audit Committee, half-yearly reports to the Unilever Executive and an annual
report to the Board.

Day to day responsibility is delegated to all senior management of the regions, categories, functions and
operating companies. They are responsible for implementing these principles, if necessary through more
detailed guidance tailored to local needs, and are supported in this by Regional Code Committees
comprising the Regional General Counsel together with representatives from all relevant functions and
categories. Assurance of compliance is given and monitored each year. Compliance with the Code is
subject to review by the Board supported by the Corporate Responsibility and Reputation Committee and
for financial and accounting issues the Audit Committee.

Any breaches of the Code must be reported in accordance with the procedures specified by the Chief
Legal Officer. The Board of Unilever will not criticise management for any loss of business resulting
from adherence to these principles and other mandatory policies and instructions. The Board of Unilever
expects employees to bring to their attention, or to that of senior management, any breach or suspected
breach of theseprinciples. Provision has been made for employees to be able to report in confidence and
no employee will suffer as a consequence of doing so.

Paul Polman
CEO
ENVIRONMENT POLICY

Introduction

Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of
consumers and industry. In doing so, the Company is committed to exhibit the highest standards of
corporate behaviour towards its consumers, employees, the societies and the world in which we live.

The company recognises its joint responsibility with the Government and the Public to protect
environment and is committed to regulate all its activities so as to follow best practicable means for
minimising adverse environmental impact arising out of its operations.

The company is committed to making its products environmentally acceptable, on a scientifically

established basis, while fulfilling consumers' requirements for excellent quality, performance and safety.

The aim of the Policy is to do all that is reasonably practicable to prevent or minimise, encompassing all
available knowledge and information, the risk of an adverse environmental impact arising from
processing of the product, its use or foreseeable misuse.

This Policy document reflects the continuing commitment of the Board for sound Environment
Management of its operations. The Policy applies to development of a process, product and services, from
research to full-scale operation. It is applicable to all company operations covering its plantations,
manufacturing, sales and distribution, research & innovation centres and offices. This document defines
the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid
down.

The Vision
Our vision is to continue to be an environmentally responsible organisation making continuous
improvements in the management of the environmental impact of our operations.

We will achieve this through an Integrated Environment Management approach, which focuses on People,
Technology and Facilities, supported by Management Commitment as the prime driver.

The Environment Policy

Hindustan Unilever Ltd. (HUL) is committed to meeting the needs of customers and consumers in an
environmentally sound manner, through continuous improvement in environmental performance in all our
activities. Management at all levels, jointly with employees, is responsible and will be held accountable
for company's environmental performance.
Accordingly, HUL's aims are to:
 Ensure safety of its products and operations for the environment by using standards of environmental
safety, which are scientifically sustainable and commonly acceptable.

 Develop, introduce and maintain environmental management systems across the company to meet the
company standards as well as statutory requirements for environment. Verify compliance with these
standards through regular auditing.

 Assess environmental impact of all its activities and set annual improvement objectives and targets
and review these to ensure that these are being met at the individual unit and corporate levels.

 Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.

 Involve all employees in the implementation of this Policy and provide appropriate training. Provide
for dissemination of information to employees on environmental objectives and performance through
suitable communication networks.

 Encourage suppliers and co-packers to develop and employ environmentally superior processes and
ingredients and co-operate with other members of the supply chain to improve overall environmental
performance.

 Work in partnership with external bodies and Government agencies to promote environmental care,
increase understanding of environmental issues and disseminate good practice.

Responsibilities

Corporate
The Board and the Management Committee of HUL is committed to conduct the company operations in
an environmentally sound manner. The Management Committee will:

 Set mandatory standards and establish environmental improvement objectives and targets for HUL as
a whole and for individual units, and ensure these are included in the annual operating plans.

 Formally review environment performance of the company once every quarter.

 Review environment performance when visiting units and recognise exemplary performance.

 Nominate:
- A senior line manager responsible for environmental performance at the individual HUL site.
- HUL environmental coordinator.

The Management Committee, through the nominated environmental coordinator will:

 Ensure implementation of HUL Policy on environment and compliance with Unilever and HUL
environmental standards and the standards stipulated under relevant national / local legislation. When
believed to be appropriate, apply more stringent criteria than those required by law.

 Assess environmental impact of HUL operations and establish strategies for sound environment
management and key implementation steps.

 Encourage development of inherently safer and cleaner manufacturing processes to further raise the
standards of environment performance.

 Establish appropriate management systems for environment management and ensure regular auditing
to verify compliance.

 Establish systems for appropriate training in implementation of Environment Management Systems at

work.

 Ensure that all employees are made aware of individual and collective responsibilities towards
environment.

 Arrange for expert advice on all aspects of environment management.

 Participate, wherever possible, with appropriate industry and Government bodies advising on
environmental legislation and interact with national and local authorities concerned with protection of
environment.

Individual Units
The overall responsibility for environment management at each unit will rest with the Unit Head, who
will ensure implementation of HUL Policy on environment at unit level. Concerned line managers / heads
of departments are responsible for environmental performance at department levels.

In order to fulfill the requirements of the Environment Policy at each site, the Unit Head will:

 Designate a unit environment coordinator who will be responsible for co-ordinating environmental
activities at unit, collating environmental statistics and providing / arranging for expert advice.

 Agree with the Management Committee Member responsible for the unit, specific environmental
improvement objectives and targets for the unit and ensure that these are incorporated in the annual
objectives of the concerned managers and officers and are reviewed periodically.

 Ensure that the unit complies with Unilever and HUL mandatory standards and the relevant national
and state regulations with respect to environment.

 Ensure formal environmental risk assessment to identify associated environmental aspects and take
appropriate steps to control risks at acceptable levels.
 Ensure that all new operations are subjected to a systematic and formal analysis to assess
environmental impact. Findings of such exercises should be implemented prior to commencement of the
activity.

 Manage change in People, Technology and Facilities through a planned approach based on training,
risk assessment, pre-commissioning audits and adherence to design codes.

 Regularly review environment performance of the unit against set objectives and targets and strive for
continual improvement.

 Sustain a high degree of environmental awareness through regular promotional campaigns and
employee participation through training, safety committees, emergency drills etc.

 Ensure dissemination of relevant information on environment within the unit and to outside bodies,
and regularly interact with Government authorities concerned for protection of environment.

 Maintain appropriate emergency procedures consistent with available technologies to prevent / control
environmental incidents.

 Provide appropriate training to all employees.

 Ensure periodic audits to verify compliance with environment management systems and personally
carry out sample environment audits to check efficacy of the systems.

 Report environmental statistics to HUL Corporate Safety & Environment Group on a monthly basis.

Research and Innovation Centres

Since most new products and processes are developed in these Units, certain additional responsibilities
devolve on them to ensure implementation of the Environment Policy of the company. In addition to the
Unit Head's responsibilities outlined above, the heads of these units will:

 Ensure that a formal and systematic risk assessment exercise is undertaken during the process/product
development stage with specific reference to environmental impact.

 Transfer technology to the pilot plant and main production through a properly documented process
specification which will clearly define environmental impact and risks associated with processes,
products, raw material and finished product handling, transport and storage.

 Ensure that treatment techniques are developed for any wastes generated as a result of the new
product/process and is incorporated into the process specifications.

QUALITY POLICY
Quality is fundamental to our Business Success

Unilever’s mission is to meet everyday needs for nutrition, hygiene and personal care with brands
that help people feel good, look good and get more out of life. And a key requirement is building
in the quality expectations of our consumers into our products.

To win consumers’ confidence and loyalty, we need to consistently deliver branded products of
excellent quality. We understand the different needs of our consumers and customers and strive to
develop and deliver superior brands to ensure that they’re the preferred choice. And by applying
consistently high standards, we’re able to do things right first time, cut waste, reduce costs and
drive profitability.

Our Quality Policy describes the principles that everyone in Unilever follows, wherever they are
in the world, to ensure that we are recognised and trusted for our integrity, the quality of our
brands and products, and the high standards we set.

Principles of the Quality Policy

• Putting the safety of our products and our consumers first.

We have stringent mandatory quality standards in place against which compliance is verified
through regular audits and self assessments. These standards ensure we design, manufacture and
supply products that are safe, of excellent quality, and conform to the relevant industry and
regulatory standards in the countries in which we operate. Comprehensive management
procedures are in place to mitigate risks and to protect our consumers and markets.

• Putting consumers and customers at the heart of our business

We actively engage our consumers and customers, translating their needs and requirements into
our products and services, thus creating consumer value wherever we position our products. This
is at the very heart of our innovation process.

• Quality is a shared responsibility

Quality and consumer safety is the responsibility of every Unilever employee and Unilever
demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all that
we do, is a passion reflected in our brand development, manufacturing and customer service
processes and is also expected of our business partners. We partner with stakeholders to provide
leadership, promote transparency and share best practice. And we’ve forged effective working
relationships with suppliers and contract manufacturers.
• Building and maintaining excellent systems to ensure the quality and safety of our
products
We’re proactively and continuously developing our systems and processes to ensure quality and
safety throughout the whole value chain, and we’re setting a benchmark for the business. We
provide appropriate training and resources, and will ensure that we deliver our quality objectives
and targets. We regularly measure and improve our performance using both internal and external
measures.

We actively promote our Quality Policy and have a quality assurance organisation in place to
ensure consistency and visibility of quality standards, processes and performance indicators
across all Unilever businesses at all levels, and to anticipate and develop future quality capability
requirements.

AFFIRMATIVE ACTION POLICY

HINDUSTAN UNILEVER LIMITED
POLICY ON AFFIRMATIVE ACTION

Hindustan Unilever Limited is a signatory to the CII Code of Conduct on Affirmative Action and
affirms the recognition that its competitiveness is interlinked with the well being of all sections of
the Indian Society.

The Company believes that equal opportunity in employment for all sections of the society is a
component of its growth and competitiveness. It further believes that inclusive growth is a
component of growth and development of the country.

The Company affirms the recognition that diversity to reflect socially disadvantaged sections of
the society in the workplace has a positive impact on business.

The Company does not practice nor support conscious discrimination in any form.

HUL does not bias employment away from applicants belonging to disadvantaged sections of
society if such applicants possess competitive skills and job credentials as made public.

The Company’s selection of business partners is not based on any considerations other than
normal business parameters. In case of equal business offers, the Company will select a business
partner belonging to a socially disadvantaged section of society.

The Company has a written policy statement on Affirmative Action in the workplace.

The Company has an employment policy that is in the public domain. It will place such policies
and employment opportunities on its website to encourage applications from socially
disadvantaged sections of society.

The Company makes all efforts for upskilling and continual training of employees from socially
disadvantaged sections of society in order to enhance their capabilities and competitive skills.

The Company has a partnership programme with educational institutions to support and aid
students from socially disadvantaged sections of society.

The Executive Director, Human Resources is accountable to the CEO to oversee and promote its
Affirmative Action policies and programmes. The ED HR will present a biannual report to the
Board of the Company about such policies and programmes.

The Company further maintains records on Affirmative Action.

The Company makes available its learning and experiences as a good corporate citizen in
Affirmative Action to other companies desiring to incorporate such policies in their own
business.

SAFETY AND HEALTH POLICY

Introduction

Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of
consumers and customers. In doing so, the Company is committed to exhibit the highest standards of
corporate behavior towards its consumers, employees, the societies and the environment in which we
operate.

Towards this, the Company recognises its responsibility to ensure safety and protection of health of its
employees, contractors and visitors in all its operating sites, which include manufacturing, sales and
distribution, research laboratories and offices during work and work related travel.

This Policy document defines the vision, principles, aim, required actions and scope of the policy
application as well as the responsibility for execution.

Our Vision
Our vision is to be an injury free organisation.

Our Mission
We will bring safety on top of mind for all employees and will integrate it with all business processes. We
will realise our Vision through an Integrated Safety Management approach, which focuses on People,
Processes, Systems, Technology and Facilities, supported by demonstrated leadership and employee
commitment at all levels as the prime drivers for ensuring a safe and healthy work environment.

Safety Principles
HUL's Occupational Safety and Health Policy is based on and supported by the following eight
Principles.

These Principles have the same status as the Company's Code of Business Principles:

 All injuries and occupational illnesses are preventable

 All operational exposures can be safeguarded
 Safety evaluation of all business processes is vital
 Working safely is a condition of employment
 Training all employees to work safely is essential
 Management audits are a must
 Employee involvement is essential  All deficiencies must be reported and corrected promptly

Note: In order to facilitate operationalisation of the Safety Principles, a separate document has been
prepared, which covers:
a) Safety Principles
b) Success Criteria
c) Illustrative KPI

This document will form the basis for the concerned Line / Organisations in developing KPI's for their
respective functions / sites.

Scope of Application
This section defines the scope of application of this Policy (where, when and to whom is this Policy
applicable).

Where does this policy apply?

 All own/leased sites – Manufacturing, Research/Innovation, Offices, Depots, Warehouses
 In-house purchased services i.e. canteen, travel desk, IT implementation etc.
 Sites of associates with HUL holding > 24%
while carrying out operations of making, handling, using, transporting, selling or disposing off of our
products

Who does the policy apply to?

 All employees at business anywhere
 Contractors and visitors while at our own sites

When does it apply?

 At work (our employees, contractors and visitors)

 Travel between home and work of our employees

 Business related travel including stay out of headquarter

 All Company organised business events i.e. training programmes, conferences, business related get-
togethers, annual sports etc.

Implementation Responsibility
HUL Management at all levels is responsible for Policy implementation. Every site shall prepare a
responsibility matrix with respect to this Policy. Such SHE responsibilities shall form an integral part of
overall job responsibilities of all employees.
All Unilever and HUL Standards, Rules and Procedures on Occupational Safety and Health, including
those that may be specific to a site are integral to this Policy and its implementation. All employees are
required to ensure strict adherence.

MERGERS AND ACQUISITIONS

 Appointed Effective Date of
Merging company Merged with Share ratio Value of fraction
date date allotment
(Rs.)

Kothari General Foods

Brooke Bond India Ltd. 1-Jan-92 1-Jan-92 30-Jun-92 21:1 7.00
Corporation Ltd.

Tea Estates India Ltd. Brooke Bond India Ltd. 1-Jan-93 1-Jun-93 24-Aug-93 10:12 35.25

Doom Dooma India Ltd. Brooke Bond India Ltd. 1-Jan-93 1-Jun-93 24-Aug-93 10:11 35.25

20-Jan-
Kissan Products Ltd. Brooke Bond India Ltd. 1-Apr-93 22-Jan-94 1:100 Not applicable
94

Lipton India Ltd. Brooke Bond India Ltd.

[name changed to 9-Mar-
1-Jul-93 16-May-94 10:9 48.99
Brooke Bond Lipton 94
India Ltd. (BBLIL)]

The Tata Oil Mills Company 28-Dec-

Hindustan Lever Ltd. 1-Apr-93 5-Apr-95 15:2 38.86
Ltd. 94

21-Mar-
BBLIL Hindustan Lever Ltd. 1-Jan-96 16-May-97 20:9 52.82
97

15-Oct-
Pond's (India) Ltd. Hindustan Lever Ltd. 1-Jan-98 3-Mar-99 4:3 525.00
98

Industrial Perfumes Ltd. Hindustan Lever Ltd. 1-Jan-99 9-Feb-00 23-Feb-00 5:2 Not applicable

26-Sep-
International Bestfoods Ltd. Hindustan Lever Ltd. 1-Jun-01 20-Oct-01 3:2* 73.84
01

Not Not Not

25-Sep-
Aviance Limited Hindustan Lever Ltd. 1-Jun-01
01
Applicabl Applicabl Applic
e e able

Tea Estates India Ltd. Demerger from

1-Dec- Not
(Formerly known Hindustan Lever 1-Apr-05 02-Dec-05 ^
05 Applicable
as’Thiashola Tea Limited
Company Limited’) (TEI)
Doom Dooma Tea
Company Ltd (Formerly Demerger from
1-Dec- Not
known as ‘Daverashola Hindustan Lever 1-Apr-05 02-Dec-05 ^^
05 Applicable
Tea Company Limited’) Limited
(DDT)
Lever India Exports Hindustan Lever Ltd. 1-Apr-05 30- Not Not Not
Limited Dec-05 Applicabl Applicabl Applicable
 e e
Not Not
Lipton India Exports Hindustan Lever 30- Not
1-Jan-05 Applicabl Applicabl
Limited Limited Dec-05 Applicable
e e
Not Not
Merryweather Food Hindustan Lever 30- Not
1-Jan-05 Applicabl Applicabl
Products Limited Limited Dec-05 Applicable
e e
TOC Disinfectants Hindustan Lever 30- Not
1-Apr-05 26-Apr-06 500:1 **
Limited Limited Dec-05 Applicable
Vashisti Detergents Hindustan Lever 28-
1-Jul-05 10-Apr-06 10:1**** 28.00
Limited Limited Feb-06
Modern Food Industries
Not Not
(India) Limited & Modern Hindustan Lever 30- Not
1-Oct-06 Applicabl Applicabl
Food and Nutrition Limited Mar-07 Applicable
e e
Industries Limited
Shamnagar Estates Private
Limited, Jamnagar
Properties Private Limited Demerger of certain
Not Not
and Hindustan Kwality Units from 1-Nov- 29- Not
Applicabl Applicabl
Walls Foods Private Hindustan Lever 06 Mar-07 Applicable
e e
Limited (now known as Limited
Daverashola Estates
Private Limited)
Notes : *Swap based on Rs. 10 share of International Bestfoods Ltd. for Re. 1 share of Hindustan Lever.

** Swap based on Rs.5/- share of TOC Disinfectants Limited (TOC) for Re.1/- share of Hindustan Lever Limited

*** Swap based on Rs.100/- share of International Fisheries Limited (IFL) for Re.1/- share of Hindustan Lever Limited

**** Swap based on Rs.10/- share of Vashisti Detergents Limited (VDL) for Re.1/- share of Hindustan Lever Limited

^ 49,50,000 Equity Shares of Rs.10/- each and 10,00,000 Preference Shares of Rs.100/- each were allotted to HLL pursuant to the
demerger by TEI

^^ 4,88,000 Equity Shares of Rs.100/- each and 10,00,000 Preference Shares of Rs.100/- each were allotted to HLL pursuant to the
demerger by DDT

1. MANAGEMENT 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 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
Board

The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also
the protectors of shareholder’s interest.
This Apex body comprises of a Non- Executive Chairman, four whole time Directors and five
independent Non – Executive Directors. The Board of the Company represents the optimum mix of
professionalism, knowledge and experience.

BOARD OF DIRECTORS

1.Harish_Manwani
Chairman

A distinguished alumnus in statistics & economics and MBA from Mumbai University, Mr.
Manwani joined HUL in 1976. Following several Sales and Marketing assignments, he became
Divisional Vice President - Marketing. Mr. Manwani joined the Board of HUL in 1995,
responsible for the Personal Products business. In addition, he held regional responsibility as the
Category Leader for Personal Products for the then Central Asia and Middle East (CAME)
Business Group.
Mr. Manwani then moved to the UK as Senior Vice President for the Global Hair Care and Oral
Care Categories and in early 2001 was appointed President of the Home & Personal Care (HPC) -
Latin America Business Group.
In 2004, he was appointed President and Chief Executive Officer of the HPC - North America
Business Group. In April 2005, he was elevated to the Unilever Executive as President Asia &
Africa. He is now President Asia, Africa & Central & Eastern Europe.
Mr. Manwani has attended the Advanced Management Programme (AMP) at Harvard Business
School.

2. Nitin_Paranjpe
CEO and Managing Director
Mr. Nitin Paranjpe joined the Company as a Management Trainee in 1987 after obtaining a degree in BE
(Mech) and MBA in Marketing (JBIMS) from Mumbai. In his early years in the Company, Mr. Paranjpe
worked as an Area Sales Manager – Detergents, in Delhi Branch and then as a Brand Manager in the
Household Cleaning Category.
In April 1996, he became the Branch Manager, Chennai and in February 1999 was appointed a member of
the Project Millennium team. In 2000, he moved to Unilever, London and was involved in a review of the
Organisation Structure. During 2001, he became the Personal Assistant to the Unilever Chairman in
London. On his return to India in 2002, he became the Category Head – Fabric Wash & Regional Brand
Director (Asia) for some Laundry and Household Cleaning (HHC) Brands. In 2004, he became Vice
President – Home Care (Laundry & HHC) India, responsible for the top and bottom-line of the Homecare
business and in March 2006, he was appointed as the Executive Director for the Home & Personal Care
business. Mr. Paranjpe was appointed as the CEO and Managing Director of the Company in February
2008.

3. R.Sridhar
Chief Financial Officer

4. Gopal_Vittal
Executive Director, Home & Personal Care

Management committee
The day-to-day management of affairs of the Company is vested with the Management Committee which
is subjected to the overall superintendence and control of the Board. The Management Committee is
headed by Mr. Nitin Paranjpe and has functional heads as its members representing various functions of
the Company

HOME AND PERSONAL CARE

1.PERSONAL WASH

i. LUX
Since 1929, Lux in step with the changing trends and evolving beauty needs of the consumers,
offers an exciting range of soaps and Body Washes with unique elements to make bathing time
more pleasurable. One can choose from a range of skincare benefits like firming, fairness and
moisturising.

Lux stands for the promise of beauty and glamour as one of India's most trusted personal care
brands. Lux Believes in passion for beauty .It continues to be a favourite with generations of users
for the experience of a sensuous and luxurious bath. Lux believes that femininity shouldn’t be
denied. Since its launch in India in the year 1929, Lux has offered a range of soaps in different
sensuous colours and world class fragrances. Lux is a beauty soap of film stars, Lux recognized
the need for a compelling message about beauty that would resonate with women of today.

Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and Lux
Peach & Cream contain a blend of succulent fruits & luscious Chantilly cream that melts down
into your skin making it soft and smooth.

ii. Breeze
Breeze Scent Magic is the soap which fulfills the aspirations of women of rural India. Breeze has
offered them 'beauty at an affordable price', making them look and feel beautiful.

Breeze comes in 4 exotic fragrances – Rose, Sandal, Lime and Rajnigandha. All this at a very
affordable price for the masses.

iii. Dove
Dove soap, which was launched by Unilever in 1957, has been available in India since 1995. It provides a
refreshingly real alternative for women who recognise that beauty is not simply about how you look, it is
about how you feel.

The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to be alkaline, with pH higher than 9.
Dove is formulated to be pH neutral (pH between 6.5 and 7.5) and to be mild on skin. This makes it
suitable for all skin types for all seasons. While Dove soap bar is widely available across the country,
Dove Body Wash is available in select outlets.

Globally, Dove has been extended to many other countries. Since the 1980s, for example, Unilever has
launched a moisturising body-wash, deodorants, body lotions, facial cleansers and shampoos and
conditioners, providing a comprehensive range of solutions to bring out true inner beauty.

iv. LIFEBUOY
Lifebuoy’s vision is, “Making a billion Indians feel safe and secure by meeting all their health and
hygiene needs”.
True to its vision, the world's largest selling soap, offers a compelling health benefit to the entire family.
Launched in 1895, Lifebuoy, for over 100 years, has been synonymous with health and value. The honest
& hard working soap, with its distinctive perfume and popular jingle, has carried the Lifebuoy message of
health across the length and breadth of the country.

The relaunch of the soap in 2002, 2004 & again in 2006 have been turning points in its history. The new
mix includes a new formulation and a repositioning to make it more relevant to both new and existing
consumers.

Lifebuoy is now in a superior formulation offering a new health fragrance and a contemporary shape. The
new formulation offers a significantly superior bathing experience and skin feel. This new mix has
registered conclusive and clear preference among existing and new users.

Apart from Lifebuoy total, it has also strongly built its other core variants like Lifebuoy deofresh –
targeted at freshness, Lifebuoy nature – containing all the goodness of nature and Lifebuoy care – for
sensitive skin.

Lifebuoy also offers specific health benefits through specialised product formats like Lifebuoy HandWash
& Lifebuoy Clearskin, which provides treatment and protection against acne.

2. LAUNDRY

SURF EXCEL
 pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded
itself over the years, to answer the constantly changing washing needs of the Indian
homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range
of stains. This means that mothers now have the freedom to let their kids experience
life without worrying about stains.

Surf Excel quick wash is powered with a path-breaking technology- it reduces water
consumption and time taken for rinsing by 50%. It is a significant benefit, given the
acute water scarcity in most of India.

Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf
Excel Automatic. So whatever be the need, Surf Excel hai na.

3. SKIN CARE

i. FAIR & LOVELY

 A women's passion for beauty is universal and catering to this strong need is Fair & Lovely.
Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was
launched in 1978.

The Hindustan Lever Research Centre (it is among the largest research establishments in
India's private sector, including pharmaceutical companies, with facilities in Mumbai and
Bangalore) deployed technology, based on pioneering research in the science of skin
lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts safely
and gently with the natural renewal process of the skin, making complexion fairer over a
period of six weeks.

Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacinamide that is
known to control dispersion of melanin in the skin. It is a patented and proprietary
formulation, which has been in the market for 25 years. Niacinamide (Vitamin B3) is a water-
soluble vitamin and is widely distributed in cereals, fruits and vegetables - and its use in
cosmetic formulations has been known for various end benefits. The UV components of the
formulation are scientifically chosen and used at optimum levels to provide wide spectrum
protection against UV rays of the sun. Specifically, this patented formulation offers a high
UVA protection, which is more relevant to Asian skin than plain SPF protection creams sold
in the West. All the active ingredients in the Fair & Lovely formulation function
synergistically to lighten skin colour through a process that is natural, reversible and totally
safe.The brand today offers a substantive range of products, including Ayurvedic Fair &
Lovely Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness
Gel, Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the
Perfect Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.

ii. PONDS
Pond's has been synonymous with skin care in India since 1947.
 The impressive track record of Pond's began when Theron T Pond, a pharmacist from Utica
New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based wonder product.
In 1914, Pond's Cold Cream and Vanishing Cream marked the brand's evolution to a beauty
icon. In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987
Unilever purchased Chesebrough-Pond's. By this time the Pond's brand had built up a
powerful international presence.

From one man in a tiny home-made laboratory, to today's state of the art R&D facilities led
from Bangkok, Mumbai, New York and Tokyo, the Pond's promise has remained the same
across 58 countries - to deliver products that make a real difference to women's skin and the
way they live their lives.

iii. VASELINE
Vaseline is a trusted brand worldwide associated with daily skin care and healthy skin for the
entire family. Vaseline has been keeping skin healthy since 1870.
 The Vaseline Philosophy: The need for Vaseline is based on real skin facts. We believe our
skin is amazing. It protects us, heals itself, connects us to the world, transmits emotions. And
this amazing skin needs to be looked after. We believe nobody knows skin, and how to keep it
at its healthy best, better than Vaseline. Which is why we make products that maintain our skin
condition at its best and enhance its natural health.

Vaseline Petroleum Jelly I.P. : Vaseline Petroleum Jelly is a mixture of Mineral oils, Paraffin
and microcrystalline waxes, that when blended together, create something remarkable- it
literally melts into your body, protecting the skin from within.
Vaseline petroleum Jelly serves two functions. First it helps keep the outside world out – it
protects skin from effects of weather and exposure. Second it acts like a sealant to keep the
inside world in, thereby acting as a barrier to the natural water loss from our skin. So Skin that
is dry and chapped is protected from drying elements, enabling skin softening moisture to
build up naturally from inside the skin itself.

Vaseline Total Moisture Body Lotion: Beneath the surface, your skin is 90% water, enabling
it to act as a moisture and nutrient reserve. So keeping your skin well hydrated is critical to
your well-being.
Unfortunately however, our body tends to lose moisture throughout the day. Bathing, casual
contact, washing, sitting in the AC for too long, seasonal changes, all robs the body of its
moisture. Vaseline Total Moisture is a fast-absorbing lotion enriched with Soya and Oat
protein that are known to nourish the skin from deep inside while Vitamin E feeds your skin
with the nutrient that is essential to keep it glowing. Together they result in healthy looking
skin.
Vaseline Aloe Cool and Fresh Body Lotion: With the goodness of Cucumber and Aloe Vera,
this light moisturising body lotion is especially made to meet your skin needs in summer.
Cucumber is a surprising beauty secret for the skin with its hydrating, cooling and soothing
properties. Aloe Vera on the other hand, is an unparalleled moisturiser and cell rejuvenator
which is excellent for dry skin. Together, these two ingredients can keep your skin looking and
feeling its healthiest best.

1. HAIR CARE

i. SUNSILK
 Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country.
Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offers the
consumer a shampoo that gives her the desired results.

The benefits are more compelling and relevant since the variants are harmonised in terms
of the product mix - fragrance, colour and ingredients are all well linked to cue the
overall synergy. The range comes in premium packaging and design. The accent is on "It
knows you, and hence knows exactly what your hair needs".

ii. CLINIC
Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest
selling shampoo, offering the five most important hair health benefits: strengthens weak
hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and
contains anti-dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual
shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to
make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for
everyday use.

2. ORAL CARE

i. PEPSODENT
 Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent
to address the consumer need of checking germs even hours after brushing.

Pepsodent packs included a Germ Indicator in February-May 2002, which allowed

consumers to see the efficacy in fighting germs for themselves. As a follow-up, in
October 2002, Pepsodent offered Dental Insurance to all its consumers to demonstrate
the confidence the company has in the technical superiority of the product.

Pepsodent connects directly with kids and their parents. Pepsodent has always worked in
the direction of an overall awareness of dental health. The relaunch campaign in October
2003 widened the context to "sweet and sticky" food and leveraged the truth that children
do not rinse their mouths every time they eat, demonstrating that this makes their teeth
vulnerable to germ attack.

Pepsodent's most recent campaign aims at educating consumers on the need for germ
protection through the night.

Pepsodent also includes a range of toothbrushes.

ii. CLOSE UP
Closeup is the original youth brand of India.The first brand targeting youth in the oral
care market, with an edgy and youthful image which stays relevant till date. Ever since
its launch in 1975, Closeup has broken every rule in the book on how toothpastes should
behave!

Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste
segment ever since. In 2004, Closeup was re-launched with a bang. And this time it was
packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins,
Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for
fresher breath and stronger, whiter teeth. Closeup became the first Gel toothpaste with
Fluoride in the Indian Market!The brand umbrella also includes Closeup Lemon Mint,
gel toothpaste with the whitening benefits of lemon.

The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new
toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format,
with white milk calcium nutrient on the inside and a refreshing blue gel on the outside.

3. DEODORENT
 i. AXE
Axe, the deodorant that is considered cool, fashionable and stylish by young men was
launched in India in 1999. Available in more than 60 countries around the world, it is a
world leader in male toiletries.

Axe has a mix that is completely harmonised globally – from its proposition and
communication to the product, as available on the shelf.

Axe is available in five fragrances: Java, Pulse, Dimension, Voodoo and Phoenix. Axe
has become the leading male deodorant brand in India within just one year of its launch.

Consumers associate a lifestyle of cool clubs, cool music and cool fashion with Axe. The
youth view it as an icon which introduces many 'firsts' to their world of music and dance
– like the first "World's Longest Dance Party" and the first ever 'Axe Voodoo Island
Party'

4. COLOUR COSMETICS

i. LAKME
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty
brand was born. At a time when the beauty industry in India was at a nascent stage,
Lakme tapped into what would grow to be amongst the leading, high consumer interest
segments in the Indian Industry - that of skincare and cosmetic products. Armed with a
potent combination of foresight, research and constant innovation, Lakme has grown to
be the market leader in the cosmetics industry.

Lakme today has grown to have a wide variety of products and services that cover all
facets of beauty care, and arm the consumer with products to pamper herself from head
to toe. These include products for the lips, nails, eyes, face and skin, and services like the
Lakme Beauty Salons.
5. AYURVEDIC PERSONAL AND HEALTH CARE
i. AYUSH
Ayush was launched in 2002. With Ayush HLL brings to you a range of Ayurvedic
Health Care & Personal Care Products with a superior sensory experience, scientifically
tested and proven functionality and international standards of quality and safety, for a
uniquely pleasurable and holistic Ayurvedic experience.

For the first time, the eternal truths of Ayurveda and the rigours of modern science have
been combined. The Ayurvedic purity of Ayush's formulation is endorsed by Arya
Vaidya Pharmacy, Coimbatore.

The Ayush range comprises shampoos, hair oil, skin cream, soap and nutritional
supplements.

The Ayush Therapy Centres provide personalised service and advice in positive health
and stress relief, aches and pain relief, skin and hair care and weight loss consultation.
FOODS
1. TEA AND COFFEE

i. BROOKE BOND
In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond – ever since
the launch of Brooke Bond Red Label in 1903. It is India's single largest tea brand. It has
touched millions of consumers with a range of tea offerings appealing to the diversity of their
tastes.It has the strongest foothold amongst any of the tea brands in India and touches the
homes of over 500 million consumers.

To de-commoditise the tea category, Brooke Bond is focusing its efforts on building four
powerful sub-brands, namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond
Taaza & Brooke Bond 3 Roses. The range offers a full variety of propositions as well as price
points to appeal to various sections

ii. LIPTON
Lipton, the world's largest selling tea brand, is an iconic brand for the youth through both its
hot and cold formats.

Lipton Yellow Label is Unilever's global tea brand and sells in many countries across the
world, with tea bags, packet tea and Lipton Ice Tea.

Lipton Ice Tea, the international ice tea drink, is available in India in Lemon and Peach
flavours. It is available in 250 ml glass bottles, 200 ml vending cups, 245 ml cans and one litre
tetra packs.

The company has created an alliance with Pepsi to market, sell and distribute Lipton Ice Tea.
The company itself has over 15,000 vending machines. The alliance will further strengthen the
out-of-home consumption of tea and coffee.
 iii. BRU

Bru, launched in 1969, created history in the first year of launch by growing to a record market share of
21%. Ever since, it has grown from strength to strength.

Bru has been instrumental in virtually creating the entire Instant Coffee category as it exists today. It has
been at the forefront of most innovations in the Instant Coffee category - whether in coffee-chicory
blends, refill packaging, vending operations, or more recently the Low-unit-price packs.

The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast & Ground Coffee
brand, and Bru Malabar Roast & Ground which is available in select geographies.

2. FOODS

i. KISSAN

Acquired by Hindustan Lever Limited in 1994, the Kissan category consists of 'deliciously
wholesome products for kids to grow up.'

The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink
products. For mothers and children, Kissan is today one of the most trusted brands in the
country.

Kissan continues to be a pioneer in the categories that it operates in.

3. ICE CREAM
i. KWALITY WALLS
Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality
Wall's has combined state-of-the art technical know-how of Unilever - the global leader in
ice cream - with a deep insight of the Indian market, to deliver a range of superior quality
products under its international brands.

Key launches include Cornetto, Feast, Viennetta, and Paddlepop. Kwality Wall's ensures that
while each of its offerings is unique in taste and flavour, they are also accessible to more
consumers through breakthrough cost reengineering, value delivery and a chain of exclusive
Kwality Wall's Swirl's Parlours.
 4. WATER

i. PURE IT
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’s unique Germkill Battery technology kills all harmful viruses and bacteria and removes parasites
and pesticide impurities, giving you water that is ‘as safe as boiled’. It assures your family 100%
protection from water-borne diseases like jaundice, diarrhoea, typhoid and cholera. What’s more, it
doesn’t need gas, electricity or continuous tap water supply.

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

You will be further reassured to know that Pureit meets the stringent germ-kill criteria of the
Environmental Protection Agency (EPA), the toughest regulatory agency in the USA. The performance of
Pureit has also been tested by leading scientific and medical institutions in India and abroad.

This patented technological breakthrough has been developed by HUL. This state-of–the-art engineering
developed by a team of over 100 Indian and international experts from HUL and Unilever Research
Centres has made Pureit possible at the consumer price of just Rs. 2000.

Pureit runs with a unique ‘Germkill battery Kit’™ that typically lasts for 1500 litres* of water. The
Germkill Battery Kit™ is priced at Rs.350. This means consumers will get four litres of water that is ‘as
safe as boiled water’ ™ for just one rupee. Which works out to an extremely affordable 23 paise per litre.
HUL EXPORTS
, HUL is one of India’s Largest exporters of branded Fast Moving Consumer Goods. It has been
recognized by the Government of India as a Golden Super Star Trading House.

Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in
Home and Personal Care & Foods & Beverages category of products. HUL is also a global marketing arm
for select licensed Unilever brands and also works on building categories with core country advantage
such as branded basmati rice.

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 endeavour and this has helped in growth of
these businesses in particular. Intrinsic cost competitiveness in the end to end Supply chain with
appropriate technology and competitive capital investment operations while delivering best in class
quality enables HUL to position itself as a key sourcing hub for Unilever and also become a preferred
partner for Global customers in categories we operate.

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. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in
three categories in which India, as a country, has competitive advantage – Branded Rice, Marine Products
and Castor and its Derivatives . HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.

HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East, Africa,
Australia, North America etc

A brief on HUL's Exports portfolio

HPC:
The categories under HPC include products in Skin care, Oral care, Pears ,Personal Wash & Lakme range.

- Skin Portfolio includes Mass & Masstige Skin (Cream & lotions under Fair & Lovely and Dove brands),
Shampoos and Conditioners (under Sunsilk brands), Vaseline & Talc (under Ponds brands). In the past
the focus market was in Middle East and Asia, which is now slowing changing with current exports to
European countries and robust plans to source different products to US in the near future.

- Oral Care consists of Tooth Paste and Tooth Brush (under Pepsodent, Close-up, Mentadant and Signal
brands). The exports are to Asian and European countries.

- Pears Category consists of Bars, Hand Wash, Body Wash and Shower Gel. Pears is being sold globally
including to North America / UK to the GCC / African countries extending up to Singapore and Australia.
While the bar remains the most popular product, the brand has now extended to hand wash, shower gel,
body wash and face wash. Currently Pears is celebrating its 200 year anniversary which shows the rich
heritage and the strong brand equity it enjoys over generations.

- Personal wash category predominantly consists of Lux, Fair & Lovely Soap, Lifebuoy Hand wash

- Lakme Products are mainly exported to the countries with Indian Ethnic population or to geographies
where the brand enjoys strong equity. The markets include Nepal, Bangladesh, United Kingdom &
Maldives.

F&B:
The categories under F&B include products in Tea, Coffee & Processed Foods range.

- Tea Category Includes: Tea Bags (includes Tea Bags, Flavored Tea Bags and Square Tea Bags), Instant
Tea, Bulk Tea & Packet Tea. The branded packet tea, and instant tea are for Unilever's ready-to-drink tea
business. The branded teas are Brooke Bond, Brooke Bond Red label, Brooke Bond Taj Mahal, Lipton,
Lipton Yellow Label, Lipton Green Label, Lipton Brisk and Lipton 3-in-1 premix.

- Coffee Category consists of Instant coffee & special coffee Beans (under Bon and Bru brands). The
focus market for Bon is CIS markets while Bru is mainly sold to Ethnic markets / Indian diaspora world-
wide. Both Bon and Bru straddle the entire gamut of formats comprising of spray dried coffee, granulated,
freeze dried and pre mixes.

- Processed Foods categories include Fruit Spreads / Jams, Soup Powders, Salt, Wheat Flour, Tomato
Ketchup and Custard Powder. The branded processed food items consists of Kissan, Knorr, Annapurna,
Captain Cook, Brown & Polson brands.

Marine Products:
HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to Shrimps and several value-
added products. Among its customers is Icelandic, the world's third largest seafood company. In addition,
HUL has also become a part of Unilever's supply chain in seafoods for Europe too. HUL's Marine
Products brands are Ocean Diamond, Ocean Excellence, Shogun, Hima, Gold Seal, Tara and Prima.

Rice:
The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice meals. The brands are Gold
Seal, Indus Valley, Rozana and Annapurna.
CONCLUSION
 HLL enjoys a formidable distribution network covering over 3400 distributors and 16 million
outlets. This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The
new sales organization named 'One HLL' brings "Household and Personal Care" and foods
distribution networks together, thereby aligning all the units towards the common goal of
achieving success. HLL has been continuously able to grow at a rate more than growth rate for
FMCG Sector, thereby reaffirming its future stronghold in Indian market.

 Project Shakti - Rural India is spread across 627,000 villages and possesses a serious distribution
challenge for FMCG Cos. HLL has come up with a unique and successful initiative wherein the
women from the rural sector market HLL products, and hence, are able to reach the same
wavelength as of the common man in village. Apart from product reach, the initiative also creates
brand awareness amongst the lower strata of society. This has brought about phenomenal results.

 HLL's market dominance, originating from its extensive reach and strong brand presence, allowed
it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes
decreased, the margins grew, and company was able to earn more profits. But higher margins
attracted competition in areas of operations. HLL's strategy remained focused on creating power
brands and earning higher margins. It was not left with any other option but to try cutting down
the costs in order to protect volumes, if not increase it.

 Domestic Consumer business grows 8%;Operating profit grows16% and PBIT margins improve
140 bps o Double digit growth in Personal Products and Foods maintained o Brand Investments
stepped up by 320 bps - PAT before exceptional items(bei) grows 9.5%; PAT(bei) before mark to
market charge grows 14.4%

 Hindustan Unilever Limited (HUL) announced its results for September Quarter 2009. Domestic
consumer sales including water grew 8%. FMCG sales grew by 7%, driven by strong growth in
Personal Products and Foods. Soaps & Detergents grew modestly due to significant down trading
in Detergents. Net Sales grew 5% with planned reduction in exports and underlying volume
growth was 1% in the quarter.
 HPC business grew 6%, driven by strong volume led growth in Personal Products. Soaps &
Detergents grew 1% impacted by low growth in the mass segment. Surf grew well - driving
premium laundry growth and competitiveness in the mass portfolio has been strengthened. The
Personal wash portfolio has been rejuvenated with improved consumer value across all the brands.
The premium soaps segment (Dove, Pears and Liril) grew strongly.

 Personal Products grew strongly at 13%.In Hair category all brands grew well – Dove shampoo
grew rapidly with the introduction of a new range, the relaunch of Clear and Clinic Plus was well
received and Sunsilk continued to grow and develop the conditioner segment. Equally growth was
broad based across all brands in the skin category – the premium face care portfolio was
strengthened with a successful relaunch of Ponds White Beauty, while FAL equity is being
strengthened with the launch of ‘winter fairness’ variant. In Oral, both Close Up and Pepsodent
delivered good volume growth with Pepsodent being relaunched in this quarter.

 Foods business grew at 13% driven by Tea, Coffee and Ice Cream. Beverages was up 18% with all
brands in Tea growing well- Lipton Green Tea was introduced, Tea Bags were relaunched in the
quarter; Instant Coffee growth was driven by low unit packs. In Processed Foods, investment in
market and category development continued, with successful relaunch of Knorr soups. Ice-Cream
continued its volume led growth.

 Pure-It is making excellent progress and rapidly building a strong franchise across the country,
with nearly 3 million households now protected. The business has expanded its reach to smaller
towns and is focusing on product innovation and channel development.

 Operating margin improved by 140bps, through a combination of carry forward impact of pricing,
improved mix, step-up in cost saving programmes, and better operating leverage. PBIT grew
16.5% with operating margin improving to 14.3%, after absorbing 320 bps increase in brand
investments. A&P expenditure grew by 38%, driven by relaunches, substantial step-up in media
support and mix impact of higher Personal Products sales. Excluding the mark to market (MTM)
charge on forex exposures, PAT (bei) grew by 14.4%. On a reported basis, PAT bei grew by 9.5%.
Net Profit declined by 21.6% due to exceptional gains from property disposal in the prior year and
exceptional charge, largely due to a provision related to the settlement signed with erstwhile
workers of a closed unit, in the current period.

 The Board declared an interim dividend of Rs 3.00 per share for the accounting year ending March
31, 2010.
SWOT ANALYSIS
1. Strengths
HLL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets.
This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The new sales
organization named 'One HLL' brings "Household and Personal Care" and foods distribution networks
together, thereby aligning all the units towards the common goal of achieving success. HLL has been
continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its
future stronghold in Indian market.

Project Shakti - Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos.
HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and
hence, are able to reach the same wavelength as of the common man in village. Apart from product reach, the initiative also
creates brand awareness amongst the lower strata of society. This has brought about phenomenal results.
2. Weaknesses
HLL's market dominance, originating from its extensive reach and strong brand presence, allowed it to
raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the
margins grew, and company was able to earn more profits. But higher margins attracted competition in
areas of operations. HLL's strategy remained focused on creating power brands and earning higher
margins. It was not left with any other option but to try cutting down the costs in order to protect volumes,
if not increase it.

As shown in above figure, the key differentiators for an FMCG player are ability to call shots and pricing power, and HLL has
shown weakness over both these factors.

HLL's weakness was its inability to transform its strategies at the right time. They continued with the
same old strategy which helped them gain profits but was not genuine in this changed environment.
HLL's risk aversion and market myopia led to stagnation of business, and ferocity of competition forced it
into a defensive mode. Lack of pricing power in core business and absence of growth drivers have put
HLL on a deflationary mode.
3. Opportunities
 India is one of the world's largest producer of FMCG goods but its exports are miniscule as compared
to production. Though Indian Cos. have been going global, their focus is more towards Asian countries
because of the similar preferences. HLL is one of the top companies exporting FMCG goods from India.
An expansion of horizons towards more and more countries would help HLL grow its consumer base and
henceforth the revenues.

 Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities for
HLL to diversify its brand and strength its food division. It could look at introducing products from its
parents stable like margarines and could also look at expanding its Knorr range of products.

 Well-placed to take advantage of future FMCG Growth - HLL reach out 80% of 207 million
households in the country through various brands. It has a very well-defined product portfolio spread
across many product categories.

Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%)
and processed foods, continue to remain low offerings but great growth opportunities products.
4. Threats
 ITC has reduced its dependence on the cigarettes business - Contribution of the core business in
revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five years, ITC has
extended its presence into areas like foods, retailing, hotels, greetings, agri, paper, etc. These are
businesses that can give it growth impetus in the long run. With ITC gaining momentum in each of these
businesses, it is turning into a consumer monolith, and hence, the greatest threat to HLL's Business.

SSKI India has gone on to say, "We maintain Out performer on ITC with a price target of Rs. 2200, while
our Under performer call on HLL remains unaltered (price target of Rs. 160)."

Figure: ITC Has Overtaken HLL in Gross Sales

Balance Sheet ------------------- in Rs. Cr. -------------------

Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

12 mths 12 mths 12 mths 12 mths 15 mths

Sources Of Funds
Total Share Capital 220.12 220.12 220.68 217.75 217.99
Equity Share Capital 220.12 220.12 220.68 217.75 217.99
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 1,871.92 2,084.84 2,502.14 1,220.82 1,842.85
Revaluation Reserves 0.67 0.67 0.67 0.67 0.67
Networth 2,092.71 2,305.63 2,723.49 1,439.24 2,061.51
Secured Loans 1,453.06 24.50 37.13 25.52 144.65
Unsecured Loans 18.06 32.44 35.47 63.01 277.30
Total Debt 1,471.12 56.94 72.60 88.53 421.95
Total Liabilities 3,563.83 2,362.57 2,796.09 1,527.77 2,483.46
Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

12 mths 12 mths 12 mths 12 mths 15 mths

Application Of Funds
Gross Block 2,314.22 2,375.11 2,462.69 2,669.08 2,881.73
Less: Accum. Depreciation 891.08 989.61 1,061.94 1,146.57 1,274.95
Net Block 1,423.14 1,385.50 1,400.75 1,522.51 1,606.78
Capital Work in Progress 94.42 98.03 110.26 185.64 472.07

2,229.56 2,148.72 2,522.22 1,440.81 332.62

Investments
Inventories 1,470.44 1,321.77 1,547.71 1,953.60 2,528.86
Sundry Debtors 489.27 522.83 440.37 443.37 536.89
Cash and Bank Balance 102.98 103.77 170.80 200.11 190.59
Total Current Assets 2,062.69 1,948.37 2,158.88 2,597.08 3,256.34
Loans and Advances 1,013.04 902.04 1,150.06 1,083.28 1,196.95
Fixed Deposits 595.07 251.26 246.15 0.75 1,586.76
Total CA, Loans & Advances 3,670.80 3,101.67 3,555.09 3,681.11 6,040.05
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,730.64 3,077.97 3,362.52 4,028.41 4,440.08
Provisions 1,123.46 1,293.39 1,429.71 1,273.90 1,527.98
Total CL & Provisions 3,854.10 4,371.36 4,792.23 5,302.31 5,968.06
Net Current Assets -183.30 -1,269.69 -1,237.14 -1,621.20 71.99
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 3,563.82 2,362.56 2,796.09 1,527.76 2,483.46

Contingent Liabilities 476.41 468.33 476.40 494.46 417.26

Book Value (Rs) 9.50 10.47 12.34 6.61 9.45
Profit & Loss account ------------------- in Rs. Cr. -------------------

Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

12 mths 12 mths 12 mths 12 mths 15 mths

Income
Sales Turnover 10,996.72 12,108.86 13,189.70 14,937.88 21,927.23
Excise Duty 939.61 914.98 945.68 1,057.32 1,422.95
Net Sales 10,057.11 11,193.88 12,244.02 13,880.56 20,504.28
Other Income 171.12 218.01 512.60 428.37 276.54
Stock Adjustments -76.69 -48.12 129.97 162.06 434.33
Total Income 10,151.54 11,363.77 12,886.59 14,470.99 21,215.15
Expenditure
Raw Materials 5,413.77 6,170.98 6,687.30 7,542.78 11,380.05
Power & Fuel Cost 164.77 168.74 180.79 198.89 301.37
Employee Cost 574.84 591.32 642.81 767.81 1,152.12
Other Manufacturing Expenses 193.84 191.82 187.37 204.10 297.34
Selling and Admin Expenses 1,713.73 2,010.10 2,328.51 2,561.12 3,857.48
Miscellaneous Expenses 377.93 429.09 541.52 691.49 985.31
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 8,438.88 9,562.05 10,568.30 11,966.19 17,973.67
Dec '04 Dec '05 Dec '06 Dec '07 Mar '09
 12 mths 12 mths 12 mths 12 mths 15 mths

Operating Profit 1,541.54 1,583.71 1,805.69 2,076.43 2,964.94

PBDIT 1,712.66 1,801.72 2,318.29 2,504.80 3,241.48
Interest 129.98 19.19 10.73 25.50 25.32
PBDT 1,582.68 1,782.53 2,307.56 2,479.30 3,216.16
Depreciation 120.90 124.45 130.16 138.36 195.30
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 1,461.78 1,658.08 2,177.40 2,340.94 3,020.86
Extra-ordinary items 56.29 44.04 -0.21 1.67 48.53
PBT (Post Extra-ord Items) 1,518.07 1,702.12 2,177.19 2,342.61 3,069.39
Tax 320.74 294.00 321.80 417.14 572.94
Reported Net Profit 1,197.34 1,408.10 1,855.37 1,769.06 2,500.71
Total Value Addition 3,025.11 3,391.08 3,881.00 4,423.41 6,593.62
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 1,100.62 1,100.62 1,325.48 1,976.12 1,634.51
Corporate Dividend Tax 145.53 159.62 185.90 355.50 277.79
Per share data (annualised)
Shares in issue (lakhs) 22,012.44 22,012.44 22,067.76 21,774.63 21,798.76
Earning Per Share (Rs) 5.44 6.40 8.41 8.12 11.47
Equity Dividend (%) 500.00 500.00 600.00 900.00 750.00
Book Value (Rs) 9.50 10.47 12.34 6.61 9.45
Cash Flow ------------------- in Rs. Cr. -------------------

Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

12 mths 12 mths 12 mths 12 mths 15 mths

Net Profit Before Tax 1505.32 1604.47 1861.68 2184.53 3025.12

Net Cash From Operating
1301.60 2018.13 1594.82 1680.11 2028.65
Activities
Net Cash (used in)/from
315.04 386.16 -197.95 1023.76 878.19
Investing Activities
Net Cash (used in)/from
-1725.06 -2748.25 -1344.73 -2921.34 -1330.36
Financing Activities
Net (decrease)/increase In
-108.42 -343.96 52.15 -217.47 1576.49
Cash and Cash Equivalents
Opening Cash & Cash
806.46 698.99 364.79 418.33 200.86
Equivalents
Closing Cash & Cash
698.05 355.03 416.94 200.86 1777.35
Equivalents
Quarterly Results ------------------- in Rs. Cr. -------------------

Dec '08 Mar '09 Mar '09 Jun '09 Sep '09

Sales Turnover 4,378.67 4,035.37 4,035.37 4,502.63 4,269.23

Other Income -- 20.26 20.26 33.54 47.28
Total Income 4,378.67 4,055.63 4,055.63 4,536.17 4,316.51
Total Expenses 3,614.65 3,439.05 3,546.14 3,787.60 3,617.27
Operating Profit 764.02 596.32 489.23 715.03 651.96
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary
-- -- -- -- --
Income/Expenses
Total Extraordinary
-46.79 -107.09 -- 6.53 -135.18
Income/Expenses
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary
-- -- -- -- --
Income/Expenses
Gross Profit 764.02 616.58 509.49 748.57 699.24
Interest -29.15 2.21 2.21 5.17 1.48
PBDT 746.38 507.28 507.28 749.93 562.58
Depreciation 40.57 41.25 41.25 42.49 46.24
Depreciation On Revaluation Of
-- -- -- -- --
Assets
PBT 705.81 466.03 466.03 707.44 516.34
Tax 90.07 71.04 71.04 164.25 87.81
Net Profit 615.74 394.99 394.99 543.19 428.53
Prior Years Income/Expenses -- -- -- -- --
Depreciation for Previous Years
-- -- -- -- --
Written Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share 2.83 1.81 1.81 2.49 1.96
Book Value -- -- -- -- --
Equity 217.95 217.99 217.99 218.05 218.09
Reserves -- -- -- -- --
Face Value 1.00 1.00 1.00 1.00 1.00
Half Yearly Results ------------------- in Rs. Cr. -------------------

Jun '07 Dec '07 Jun '08 Dec '08 Sep '09

6 mths 6 mths 6 mths 6 mths 6 mths

Sales Turnover 6,665.72 7,052.03 8,009.61 8,489.58 8,771.86

Other Income 197.12 265.56 161.19 -- 80.82
Total Income 6,862.84 7,317.59 8,170.80 8,489.58 8,852.68
Total Expenses 5,791.80 6,040.24 7,050.30 7,196.49 7,404.87
Operating Profit 873.92 1,011.79 959.31 1,293.09 1,366.99
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary
-- -- -- -- --
Income/Expenses
Total Extraordinary
80.20 76.21 20.56 92.23 -128.65
Income/Expenses
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary
-- -- -- -- --
Income/Expenses
Gross Profit 1,071.04 1,277.35 1,120.50 1,293.09 1,447.81
Interest 16.17 9.33 -92.14 -70.04 6.65
PBDT 1135.07 1344.23 1233.20 1455.36 1312.51
Depreciation 66.19 72.17 74.21 79.84 88.73
Depreciation On Revaluation Of
-- -- -- -- --
Assets
PBT 1068.88 1272.06 1158.99 1375.52 1223.78
Tax 182.91 232.56 219.86 213.17 252.06
Net Profit 885.97 1,039.50 939.13 1,162.35 971.72
Prior Year Income/Expenses -- -- -- -- --
Depreciation for Previous Years
-- -- -- -- --
Written Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share(Rs) 4.01 4.77 4.31 5.33 4.46
Book Value(Rs) -- -- -- -- --
Equity 220.70 217.75 217.83 217.95 218.09
Reserves -- -- -- -- --
Face Value(Rs) 1.00 1.00 1.00 1.00 1.00
Nine Months ------------------- in Rs. Cr. -------------------

Sep '04 Sep '05 Sep '06 Sep '07 Sep '08

Sales Turnover 7,326.12 8,074.24 8,947.29 10,030.35 12,281.71

Other Income 227.29 238.87 247.57 302.98 --
Total Income 7,553.41 8,313.11 9,194.86 10,333.33 12,281.71
Total Expenses 6,308.67 7,140.70 7,799.26 8,708.85 10,601.86
Operating Profit 1,017.45 933.54 1,148.03 1,321.50 1,679.85
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary
-- -- -- -- --
Income/Expenses
Total Extraordinary
21.91 -26.68 287.95 78.96 129.29
Income/Expenses
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary
-- -- -- -- --
Income/Expenses
Gross Profit 1,244.74 1,172.41 1,395.60 1,624.48 1,679.85
Interest 97.66 14.88 8.91 22.92 -133.03
PBDT 1,168.99 1,130.85 1,674.64 1,680.52 1,942.17
Depreciation 87.82 95.33 95.94 101.48 113.48
Depreciation On Revaluation Of
-- -- -- -- --
Assets
PBT 1,081.17 1,035.52 1,578.70 1,579.04 1,828.69
Tax 233.21 214.42 230.01 285.01 342.96
Net Profit 847.96 821.10 1,348.69 1,294.03 1,485.73
Prior Years Income/Expenses 15.73 36.75 -4.50 -- --
Depreciation for Previous Years
-- -- -- -- --
Written Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share 3.85 3.73 6.11 5.86 6.82
Book Value -- -- -- -- --
Equity 220.12 220.12 220.64 220.77 217.92
Reserves -- -- -- -- --
Face Value 1.00 1.00 1.00 1.00 1.00
Yearly Results ------------------- in Rs. Cr. -------------------

Dec '05 Dec '06 Dec '07 Dec '08 Mar '09

Sales Turnover 11,060.55 12,103.39 13,717.75 16,660.38 20,601.56

Other Income 304.78 354.52 462.68 -- 205.55
Total Income 11,365.33 12,457.91 14,180.43 16,660.38 20,807.11
Total Expenses 9,617.22 10,455.33 11,832.05 14,216.51 17,561.37
Operating Profit 1,443.33 1,648.06 1,885.70 2,443.87 3,040.19
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary
-- -- -- -- --
Income/Expenses
Total Extraordinary
53.59 315.70 156.41 82.50 -25.11
Income/Expenses
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary
-- -- -- -- --
Income/Expenses
Gross Profit 1,748.11 2,002.58 2,348.38 2,443.87 3,245.74
Interest 19.19 10.74 25.50 -162.18 25.32
PBDT 1,782.51 2,307.54 2,479.29 2,688.55 3,195.31
Depreciation 124.45 130.16 138.36 154.05 195.30
Depreciation On Revaluation Of
-- -- -- -- --
Assets
PBT 1,658.06 2,177.38 2,340.93 2,534.50 3,000.01
Tax 294.00 322.01 417.14 433.03 503.56
Net Profit 1,364.06 1,855.37 1,923.79 2,101.47 2,496.45
Prior Years Income/Expenses 44.04 -- 1.68 -- --
Depreciation for Previous Years
-- -- -- -- --
Written Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share 6.20 8.41 8.83 9.64 11.45
Book Value -- -- -- -- --
Equity 220.12 220.68 217.75 217.95 217.99
Reserves 2,084.84 2,502.14 1,220.82 -- 1,842.85
Face Value 1.00 1.00 1.00 1.00 1.00

------------------- in Rs. Cr.

Raw Materials Mar 2009
-------------------
Product Name Unit Quantity Value
Chemicals & Perfumes Metric Tonnes 1,411,011 3,292.49
Oils, Fats & Resin Metric Tonnes 339,192 1,440.86
Tea Leaf Metric Tonnes 117,606 1,059.66
Others Not Reported NA 663.79
Coffee Metric Tonnes 27,247 268.44
Total 6725.24
 ---------------------- in Rs. Cr.
Finished Products Mar 2009
---------------------
Product Name Unit Installed Production Sales Sales
Capacity Quantity Quantity Value
Personal Products Metric 108,624 6,548,242.00 16,759,728.00 5,616.13
Tonnes
Detergents Synthetic Metric 294,013 1,106,915.00 1,528,391.00 4,908.46
Tonnes
Soaps Metric 169,744 4,364.00 4,535.00 4,301.90
Tonnes
Tea Metric 157,000 80,140.00 127,878.00 2,156.72
Tonnes
Others - NA NA 1,486.00 1,440.42
Coffee Metric 22,060 20,126.00 26,173.00 645.14
Tonnes
Canned And Processed - NA 44,567.00 47,175.00 483.06
Fruits & Vegetables
Products
Branded Staple Food - NA NA 265,996.00 385.37
Service Income - NA NA NA 277.72
Frozen Foods & Agricultural Metric 16,500 16.00 22.00 229.45
Products Tonnes
Special Chemicals - NA NA 8,514.00 54.20
Processed (Tri - NA NA 2,380.00 18.48
Glycerides)/Hydrogenated
Oils/Vanaspati
Cleaners Litres 10,000,000 NA NA 0.00
Scourers Metric 43,569 NA NA 0.00
Tonnes
Processed Foods - NA 28,624.00 NA 0.00
Desserts Millions Litres 17 NA NA 0.00
Perfumery & Cosmetic Numbers 55,000,000 NA NA 0.00
Products
Packet Tea - NA NA NA 0.00
Fabric Softener - NA NA NA 0.00
Fatty Acids Metric 65,000 NA NA 0.00
Tonnes
Other Fiscal Benefits - NA NA NA 0.00
Instant Tea Metric 4,553 1,508.00 NA 0.00
Tonnes
Glycerine (Refined) Metric 5,000 4,166.00 NA 0.00
Tonnes
Other Operating Income - NA NA NA 0.00
Total 20517.05
Key Financial Ratios ------------------- in Rs. Cr. -------------------

Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00 1.00
Dividend Per Share 5.00 5.00 6.00 9.00 7.50
Operating Profit Per Share (Rs) 7.00 7.19 8.18 9.54 13.60
Net Operating Profit Per Share
45.69 50.85 55.48 63.75 94.06
(Rs)
Free Reserves Per Share (Rs) 8.38 9.34 11.20 5.45 8.30
Bonus in Equity Capital 59.82 59.82 59.67 60.47 60.40
Profitability Ratios
Operating Profit Margin(%) 15.32 14.14 14.74 14.95 14.46
Profit Before Interest And Tax
13.86 12.87 13.50 13.78 13.35
Margin(%)
Gross Profit Margin(%) 15.59 15.03 15.80 15.86 13.50
Cash Profit Margin(%) 12.86 13.52 15.99 13.56 12.54
Adjusted Cash Margin(%) 12.46 12.43 13.21 12.90 12.54
Net Profit Margin(%) 11.68 12.42 14.94 12.58 12.05
Adjusted Net Profit Margin(%) 11.28 11.33 12.16 11.91 12.05
Return On Capital Employed(%) 45.08 67.66 65.89 138.72 121.06
Return On Net Worth(%) 57.23 61.09 68.14 122.97 121.34
Adjusted Return on Net
55.25 55.75 55.43 116.49 116.82
Worth(%)
Return on Assets Excluding
16.14 20.91 24.45 25.90 29.59
Revaluations
Return on Assets Including
16.14 20.91 24.45 25.90 29.59
Revaluations
Return on Long Term Funds(%) 47.07 69.33 67.65 147.26 145.85
Liquidity And Solvency Ratios
Current Ratio 0.89 0.70 0.73 0.68 0.92
Quick Ratio 0.48 0.33 0.34 0.25 0.51
Debt Equity Ratio 0.70 0.02 0.03 0.06 0.20
Long Term Debt Equity Ratio 0.63 -- -- -- --
Debt Coverage Ratios
Interest Cover 12.36 83.27 171.62 83.09 118.70
Total Debt to Owners Fund 0.70 0.02 0.03 0.06 0.20
Financial Charges Coverage
13.29 89.76 183.74 88.52 126.41
Ratio
Financial Charges Coverage
11.14 80.85 185.99 75.81 107.47
Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 6.97 8.57 8.02 7.20 9.26
Debtors Turnover Ratio 20.95 22.12 25.42 31.41 41.83
Investments Turnover Ratio 8.23 9.97 9.27 8.20 9.26
Fixed Assets Turnover Ratio 7.91 8.47 9.30 9.80 7.81
Total Assets Turnover Ratio 2.97 5.14 4.67 10.53 9.22
Asset Turnover Ratio 4.69 5.11 5.35 5.64 7.81

Average Raw Material Holding 80.44 66.11 68.95 84.20 72.27

Average Finished Goods Held 28.71 23.60 27.53 29.81 34.18
Number of Days In Working
-6.56 -40.83 -36.37 -42.05 1.58
Capital
Profit & Loss Account Ratios
Material Cost Composition 53.83 55.12 54.61 54.34 55.50
Imported Composition of Raw
19.70 17.32 16.89 16.67 21.65
Materials Consumed
Selling Distribution Cost
13.30 14.16 15.75 15.56 15.98
Composition
Expenses as Composition of
13.15 12.93 11.72 10.68 9.47
Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 104.07 89.49 81.45 131.80 76.47
Dividend Payout Ratio Cash
94.53 82.23 76.11 122.23 70.93
Profit
Earning Retention Ratio -7.80 1.94 -0.12 -39.13 20.58
Cash Earning Retention Ratio 2.41 10.59 7.83 -28.52 26.54
AdjustedCash Flow Times 1.15 0.04 0.04 0.05 0.16
 Dec '04 Dec '05 Dec '06 Dec '07 Mar '09

Earnings Per Share 5.44 6.40 8.41 8.12 11.47

Book Value 9.50 10.47 12.34 6.61 9.45

Capital Structure
Period Instrument --- CAPITAL (Rs. cr) --- -PAIDUP-
From To Authorised Issued Shares (nos) Face Value Capital
2008 2009 Equity Share 214.75 214.75 2147483647 1 214.75
2007 2007 Equity Share 214.75 214.75 2147483647 1 214.75
2006 2006 Equity Share 214.75 214.75 2147483647 1 214.75
2005 2005 Equity Share 214.75 214.75 2147483647 1 214.75
2004 2004 Equity Share 214.75 214.75 2147483647 1 214.75
2003 2003 Equity Share 214.75 214.75 2147483647 1 214.75
2002 2002 Equity Share 214.75 214.75 2147483647 1 214.75
2001 2001 Equity Share 214.75 214.75 2147483647 1 214.75
1999 2000 Equity Share 214.75 214.75 2147483647 1 214.75
1996 1998 Equity Share 214.75 199.17 199167286 10 199.17
1994 1996 Equity Share 214.75 145.84 145838573 10 145.84
1993 1994 Equity Share 150 145.84 145838573 10 145.84
1992 1993 Equity Share 150 139.99 139986912 10 139.99
1990 1992 Equity Share 140 139.99 139986912 10 139.99
1987 1990 Equity Share 100 93.32 93324608 10 93.32
1983 1987 Equity Share 100 93.32 93324608 10 93.32
1981 1983 Equity Share 100 93.32 93324608 10 93.32
1979 1981 Equity Share 50 46.66 46662304 10 46.66
1978 1979 Equity Share 35 29.16 29163940 10 29.16
1977 1978 Equity Share 35 21.87 21872955 10 21.87
1974 1977 Equity Share 25 18.36 16852955 10 16.85
1970 1974 Equity Share 16.85 16.85 16852955 10 16.85
1966 1970 Equity Share 14.45 14.45 14445390 10 14.45
1965 1966 Equity Share 11.56 11.56 11556312 10 11.56
1962 1965 Equity Share 9.25 9.25 9141332 10 9.14
1956 1962 Equity Share 9.09 8.24 8243600 10 8.24
1952 1956 Equity Share 5.57 5.57 5570000 10 5.57
1937 1952 Equity Share 2 2 2000000 10 2
1933 1937 Equity Share 2.8 0.28 280000 10 0.28