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 Contd...

Leveraging the Internet

HLL's Internet vision had three planks, Business Connectivity, Consumer Connectivity and Consumer Commerce. Success in the Internet world was dependent on three factors - Consumer Insight, Physical Fulfillment and Technology...

New Business Opportunities

HLL explored new growth opportunities in five areas - confectionery, consumer healthcare, water, direct consumer distribution and rural marketing. In the water business, the company looked at organic entry as well as brand acquisitions...

Distribution

Around 700 million people, or 70% of India's population, lived in 6,27,000 villages in rural areas. 90% of the rural population was concentrated in villages with a population of less than 2000. Over the years, HLL had improved its distribution network to ensure availability of all its products, in all outlets, at all times...

Technology

HLL had developed its R&D capabilities over time. The Hindustan Lever Research Centre (HLRC), with facilities in Mumbai and Bangalore, and global technology centres in India had over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe...

Changes at The Top

Despite the various initiatives launched in the late 1990s, HLL's business had failed to grow and hit a negative note by 2003 (-2%). HLL announced sweeping changes in its management structure on April 15, 2004...

The Road Ahead

Between 1993 and 1999, HLL's sales had surged five-fold to Rs 10,142 crore. But since 2000, they had stagnated at about Rs 10,000 crore. In most of its business, HLL faced severe concerns. HLL had seen its main product lines like soaps & detergents and personal care struggling to grow...

Exhibits

Exhibit I: HLL - Key Financials
Exhibit II: HLL - Ten-Year Performance
Exhibit III: HLL - Board
Exhibit IV: HLL - Management Committee
Exhibit V: HLL - Division Wise Performance
Exhibit VI: HLL - Product Portfolio
Exhibit VII: HLL - Layers of Distribution
Exhibit VIII: Marketplace in India
Exhibit IX: HLL - Strengths/Weaknesses
Exhibit X: HLL - Key Ratios

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