Introduction to HULHindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company with a heritage of over 80 years in India and touches the
lives of two out of three Indians.
HUL works to create a better future every day and helps people feel good,
look good and get more out of life with brands and services that are good
for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps,
detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea,
coffee, packaged foods, ice cream, and water purifiers, the Company is a
part of the everyday life of millions of consumers across India. Its portfolio
includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin,
Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk,
Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls
and Pureit.
The Company has over 16,000 employees and has an annual turnover of
INR 30,170 crores (financial year 2014 15). HUL is a subsidiary of
Unilever, one of the worlds leading suppliers of fast moving consumer
goods with strong local roots in more than 100 countries across the globe
with annual sales of 48.4 billion in 2014. Unilever has 67.25%
shareholding in HUL.
VISIONSales and Distribution of HULEvolution over timeThe HULs distribution network has evolved over time.It can be categorise
into three different phases.
*The first phase of the HUL distribution network had wholesale placing
orders directly with the company. Large retailers also placed direct orders,
which comprised almost 30% of the total collected orders.The company
salesman grouped all these orders and placed an indent with the head
office.The salesman then collected and distributed the products to
respective wholesalers, against cash payment and the money was
remitted to the company.
The focus of the second phase, which spanned the decades of the 40s
was to provide desired products and quality service to the companys
customers. In order to achieve this one wholesaler in each market was
appointed as a registered wholesaler a stock point for the companys
products in that market. The appointed company salesman then
distributed stocks from the Registered Wholesale via various distribution
channels.
The third phase highlighted the concept of Redistribution Stockist who
replaced the Registered Wholesalers.It focuses on the establishment of
thecompany Depots system.This system helped in transhipment, bulk

breaking and as a stockpoint to minimise stock-outs at the RS level.In

recent past the company depot system has been replaced by the third
party Carrying and Forwarding Agents(C&Fas). The C&Fas acts as a buffer
stock-points to ensure that stock-outs did not take place.The C&FA
system has also resulted in cost savings in terms of direct transportation
and reduced time lag in delivery.
DISTRIBUTION SYSTEM OF HULHULs products are distributed through a network of 4,000 redistribution
stockists, covering 6.3 million retial outlets reaching the entire urban
population,and about 250 million rural consumers.There are 35 C&Fas in
the country who feed these redistribution stockists regularly. The general
trade comprises grocery,chemists,wholesale,kiosks and general stores.It
has developed customer management and supply capabilities for
partering emerging self-serviced stores and supermarkets.
(DIAGRAM)
DISTRIBUTION AT RURAL AND URBAN MARKETHUL approached the rural market with two criteria-the accessibility and
viability .It appointed a redistribution stockist who was responsible for all
outlets and all business within its particular town.In the 25% of the
accessible markets with low business potential, HUl assigned a sub
stockitst who was responsible to access all the villagers at least once in a
fortnight and send stocks to those markets