Abstract

Unilever's Indian subsidiary, Hindustan Lever Limited (HLL), is the country's largest fast moving consumer goods (FMCG) company. HLL has brands spread across 20 distinct consumer categories. The company touches the lives of two out of three Indians. In the early 2000s, HLL faced various concerns. Competition had become severe in segments such as soaps, detergents and oral care, where margins remain stagnant. In the foods and ice creams business, the company faced intense competition from well- entrenched local producers. HLL is in the midst of a major management and operational restructuring, at a time when it is locked in a bruising price war with arch rival Procter & Gamble in detergents and shampoo. There is speculation that the current management structure is a holding operation until a permanent successor to the incumbent chairman, MS Banga is found, either from within HLL or from outside. It remains to be seen if the restructuring at the top level can help HLL turn things around in its favour.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Unilever, Hindustan Lever Limited, HLL, Project millennium, Corporate restructuring, Procter & Gamble, P&G, Strategy, Strategic management, Brooke Bond, Distribution, Information technology, IT, Brand portfolio restructuring, Leveraging Internet, Innovation, Surf, Nirma