Unilever in India: Beyond Project Millennium

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Case Details:

Case Code : BSTA030
Case Length : 20 Pages
Period : 1888 - 2004
Organization : Unilever, Hindustan Lever Limited (HLL)
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Packaged Goods

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

In the summer of 1888, visitors to the Kolkata harbor 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 FMCG goods in India. Lifebuoy was introduced in 1895 and other famous brands like Pears, Lux and Vim followed...

Organizational Structure

The very factors like HR policies that made HLL the most coveted employer during the 1980s and early 1990s later came under scrutiny as situation changed forcing the management to think anew. As the need for speed and flexibility in decision-making and strategy implementation increased, HLL attempted to empower managers across the company's nationwide operations...

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Business Segments

HLL had five main divisions, Soaps & Detergents, Personal Products, Beverages, Foods and Ice creams (See Exhibit V). HLL also had a separate exports division. In 2002, HLL's growth was driven by strong performance in Personal wash (11.3%), Fabric wash (8%), Dish wash (19.4%) and Skin care (21.8%)...

Project Millennium

For over 100 years, HLL had sustained profitable growth, year after year. Since the late 1990s, HLL had witnessed slow growth though profits had grown through effective cost management. Launched in 2000, Project Millennium was essentially a blueprint for growth, aimed at creating rewarding professional opportunities for people in the company and continuing to create value for shareholders...

Brand Portfolio Restructuring

The 30 brands termed as "Power Brands" collectively contributed more than 70% of the total FMCG sales of the company. HLL pumped additional resources into these brands. By 2003, they accounted for 93% of the company's domestic consumer business...

Human Resources

Long considered as the managers' Mecca, HLL had lost its hallowed status in the late 90s. The slow journey to the top that even the super achievers faced had suddenly made the company a less coveted employer than it had been in the past...

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