History of HUL

•In 1885 Lever Brothers set up “William Hesketh Lever” in England.

•In 1888, company entered India by exporting its laundry soap “Sunlight”.
•In 1895, Lifebuoy soap was launched in India followed by “Pears” in 1902,“Lux”
in 1905 and “Vim” powder in 1913.
•In 1930 the company merged with “Margarine Unie” to form Unilever.
•In 1931 Unilever set up its first Indian subsidiary for production of vanaspati.
•Lever Brother India Ltd. and United Traders Ltd. were established in 1933 and
1935 respectively for the distribution of personal products.
•In 1951, HUL purchased plants at Trichy, Shamnagar and Ghaziabad to expand
its vanspati production.
•In 1956, the three Indian subsidiaries merged to form Hindustan Lever Ltd.
(HLL).
•In 1964, HLL launched its dairy product “Anik Ghee” and “Sunsilk Shampoo”.
•In 1967, Hindustan Lever Research Centre was set up.
•In 1969, “Rin” detergent and “Bru” coffee was launched.
•In 1971, “Clinic” shampoo was launched followed by “Liril” bathing soap in
1974.
•In 1975, company enterd into its oral segment with “Close Up”.
• In 1974, a plant was set up in Taloja, in 1976 at Haldia and in 1977 at Jammu for its
industrial chemicals.
• In 1978, company launched “Fair & Lovely” cream.
• In 1983, unit was set up in Chandwana for manufacturing synthetic detergents.
• In 1986, a unit was set in Hyderabad to diversify into agro products.
• In 1987, they launched “Breeze” soap and in 1988 they set up a manufacturing plant in
Pondicherry for its personal care products.
• In 1989, a detergent soap plant was set up in Sumerpur and a toilet soap plant in Orai.
• In 1992, HUL was recognized as “Star Trading House” by Government and in the same
year it launched “Pepsodent” and “Mentadent-G”
• In 1993 (April), HUL merged with Tata Oil Mills Company and in the same year it
launched “Vim” dish-wash bar.
• In 1994, HUL and US-based company Kimberely-Clark Corporations formed a 50-50 joint
venture and launched Huggies diapers and feminine care products.
• In 1995, HUL formed another 50-50 joint venture with another Tata company, Lakme Ltd
to market cosmetics.
• In 1996, Brooke Bond Lipton India Ltd. merged with HUL to market tea and in the same
year it also merged with Pond’s India Ltd.
• In 2000, HUL acquired 74% stake in Modern Food Industries Ltd., the first public sector
company to be divested by Government of India.
Step toward Retail Innovation for tapping
Rural Market.
• Prior to the late 1990’s, traditional modes of reaching to rural markets through
wholesalers and retailers were used.
• Used van campaigns.
• Vans replaced by vans belonging to redistribution Stockists who served
selected group of market.
• 25% of the villages was tapped and a vast section of rural market was left out.
• In 1998, “Project Streamline” was conceptualized to tap more rural market and
reach out 1,00,000 retail outlets by 1999.
• Project aimed at covering 50% rural market by 2003.
• HLL appointed Rural Distributor and they were attached to 15-20 sub-
stockists who were expected to drive distribution in neighboring villages
through unconventional modes.
• This project helped HUL in extending rural reach upto 37% in 1998.
• Consumption of personal products by rural consumers was very low.
• In 1998, the Personal Product Divison of HUL started “Project Bharat”
which was a massive rural home-to-home exercise to overcome the above
stated issue.
• Company vans visited villages to educate customers across the country and
distributed low-unit price samples of personal care products.
• products benefits and usage were shown with the help of product
demonstration and video shows.
• In Phase I HUL targeted villages having population 5000 and above and in
Phase II targeted villages with population 2000-5000.
• Micro credit was offered by banks to group of villagers below the poverty
line and HUL trained them to use it to buy company’s products and sell
them at profit.
Phases In Retail Innovation
 Phase 1- Project Bharat- Awareness
• HUL implemented Major Direct Consumer
Program called Project Bharat.
• It covered 2.2 crore homes.
• Each home was given a box at a special price
of Rs.15 comprising of low unit pack of
» Hair-care ( Clinic shampoo)
» Dental ( Pepsodent toothpaste)
» Skin-care ( Fair& lovely)
» Body care ( Pond’s dream flower talc)
» Educational leaflets
• It was supported by audio-visual demonstrations,
film songs and mythological serials interspersed
with ads of Lever products.
• 160 vans and over thousand promoters were
used. (sales staff of the distributors or some
other private operator)
• The cost came up to roughly Rs. 13 crore.
• Each van, equipped with a TV, VCR and 6
promoters.
• The Project helped eliminate barriers to trial, and
strengthened salience of both perticular
categories and brands.
 Phase-2 Operation Streamline-
Accessibility
• Launches in 1998 to extend their distribution.
• Goods distributed from C&F agents to the Re-
distributor who in turn passes to Star sellers.
• Star Sellers sells everything.
• Opened new distribution channels that covered
territories beyond 7,500 distributors.
• Doubled the reach of the company.
• Distribution channel now covers 60% of the villages
with population greater than 2,00 having motorable
roads.
• For additional 30,000 villages it created a super
stockiest: sub stockiest structure.
• Super stockiest in bigger towns service the sub
stockiest.
• Sub stockiest are paid 1-2 percent more margins than
the retailers.
• This is given to cover sub-stockiest’s costs in servicing
retailers in his area.
• Under the Indirect Coverage method, company vans
replaced by vans belonging to distribution Stockiest.
• They serviced a select group of neighbouring markets.
 Phase III – Project Shakti
• A Shakti Entrepreneur
Project Shakti

Project Shakti: Shaded areas

 Product Innovation
• In 1988-In order to counter Nirma they have
launched non-soap detergent powder in name
of Wheel in the rural market

• Within a decade Nirma and Wheel targeting

the rural consumer started sharing equal
market share of 38 %.
• In 1980-In order to meet the challenges given
by CavinKare(by launch of chick
Shampoo),HUL launched Clinic and Sunsilk
shampoo in small sachets.
• LUP packs was successful in rural market to
convert the consumer from soap to shampoo.
• 95 % of the total sales of shampoo in the rural
market is through sachets till early 90’s.
• In early 2000- in order to increase penetration of
HUL products in rural market they introduced
Surf Excel,Pond’s talcum powder ,Fair and lovely
etc. in LUP packs.
• In May 2000 HUL launched AIM toothpaste to
compete with Dabur toothpaste was price at
Rs.3per 20gm,Rs. 8 per 50 gm and Rs.16 for 100
gm for rural consumer in plastic flow wraps
rather than traditional cartons, so the they could
be hanged along side of the store.
• But after few months of its launch they decided
to withdraw the product from the market and
decided to put its effort to increase the
penetration of Pepsodent and Closeup.
• Rather than 30 seconds advertisement, in order
to increase the awareness of their products in
rural market they start using unconventional
media through colorful flyers, entertaining
jingles, street plays, cinema vans etc.
Phase V –Replication of Project Shakti

• The Anglo-Dutch company Unilever which owns a

majority stake (52%) in Hindustan Unilever Limited has
begun replicating Project Shakti Model in several
international markets.

• Project Shakti is being customised and adapted in other

Unilever markets such as Sri lanka, Bangladesh,Vietnam
etc .
 Shaktimaans to Power rural reach

• Hindustan Unilever Ltd will push 25,000

“shaktimaans (distributors on cycles)” into action in 1.5
lakh villages of India.

• HUL has completed a pilot project of “Shaktimaans” in

Orissa

• HUL plans to triple its rural presence in India in a

years time using “shaktimaans” model.
 Conclusion
• Through Project Shakti and Shaktimaan, HUL will
considerably increase its sales and revenues from the rural
markets of India.
• The initiatives by HUL such as above will further increase
competition between HUL,ITC and Godrej Consumer
Products to attract the rural consumers of India.
• HUL has touched the life of Indian masses with two out of
three Indians using the company’s products.
• HUL is also one of the country's largest exporters, it has
been recognised as a Golden Super Star Trading House by
the Government of India which signifies HUL’s importance
in the fast moving consumer goods segment in India.