HUL Business Empire |This Brand Controls Your Life | How HUL controls Every Household in India|
Summary
TLDRHindustan Unilever Limited (HUL), India's sixth-largest company by market capitalization, operates in the FMCG sector with a diverse portfolio of over 50 brands. Originating from the 1930 merger of Lever Brothers and Margarine Unie, HUL's journey in India has been marked by strategic mergers and acquisitions, adapting to local market conditions. With iconic brands like Surf Excel, Lipton, and Dove, HUL has become an integral part of Indian households, reflecting the country's economic liberalization and the company's commitment to the Indian consumer.
Takeaways
- 🌐 Hindustan Unilever Limited (HUL) is India's sixth-largest company by market capitalization and operates in the fast-moving consumer goods (FMCG) sector.
- 🏭 HUL's parent company, Unilever, originated from the merger of a Dutch margarine company and a British soap maker, forming Unilever in 1930.
- 📈 HUL's growth in India is marked by significant historical events, including the Swadeshi movement, price control policies, and economic liberalization.
- 🏛️ HUL's first soap factory in India was established in Mumbai in 1934, showcasing its commitment to local manufacturing.
- 🛒 HUL's product portfolio includes over 50 brands across Home Care, Food and Refreshment, and Beauty and Personal Care categories.
- 🔄 The company has strategically grown through mergers and acquisitions, such as the acquisition of Tata Oil Mills Company (TOMCO) and GlaxoSmithKline Consumer Healthcare.
- 🌟 Some of HUL's most recognized brands include Surf Excel, Lipton, Brooke Bond, Lux, Dove, and Clinic Plus.
- 🔢 In the financial year 2021-2022, HUL sold products worth 50,000 crores, highlighting its significant market presence.
- 🏪 HUL products are available in approximately 90 lakh retail outlets across India, making them accessible to a vast consumer base.
- 🌱 HUL has adapted to Indian market dynamics by focusing on the needs of the Indian middle class and integrating its brands into everyday Indian life.
Q & A
Which company owns popular brands like Boost, Surf, and Pepsodent?
-Hindustan Unilever Limited (HUL) owns popular brands such as Boost, Surf, and Pepsodent.
What does FMCG stand for and what type of products does HUL operate in?
-FMCG stands for Fast-Moving Consumer Goods. HUL operates in the FMCG segment, which includes packaged products that are sold quickly and at relatively low prices.
What is the history behind the formation of Unilever, the parent company of HUL?
-Unilever was formed through the merger of Lever Brothers, a soap-making company from England, and Margarine Unie, a Dutch company producing margarine. This merger took place in 1930.
How did Unilever become successful globally, and what was its initial product?
-Unilever became successful globally by introducing a popular soap called Sunlight in the 1890s, which was the idea of William Haskett Lever, the founder of Lever Brothers.
What was the turning point in the history of HUL in India?
-The turning point in HUL's history in India was the liberalization of the Indian economy in 1991, which allowed private companies to operate freely and expand through mergers and acquisitions.
How did HUL respond to the price control policy imposed by the Indian government in 1973?
-HUL responded to the price control policy by introducing a low-cost soap called Janatha and persuading the government to lift price controls on all soaps.
What was the impact of the government's regulation in the 1970s on foreign companies like HUL?
-The government's regulation in the 1970s stated that foreign companies could not own a majority share in Indian companies. HUL decided to work with the government and retained a 51% stake by promising significant investment in core sectors and exports from priority sectors.
Which famous tea brand is part of HUL's portfolio?
-The famous tea brand Brook Bond is part of HUL's portfolio.
What is the significance of the mergers and acquisitions for HUL's growth in India?
-The mergers and acquisitions have been significant for HUL's growth in India as they allowed the company to acquire market share in a rapidly growing and competitive market.
How has HUL integrated itself into the daily lives of Indian consumers?
-HUL has integrated itself into the daily lives of Indian consumers by offering a wide range of products across categories such as Home Care, Food and Refreshment, and Beauty and Personal Care, making its brands household names.
What are some of the challenges HUL faced in its history in India?
-Some challenges HUL faced in its history in India include the swadeshi movement leading to a decline in soap sales, the price control policy of 1973 causing massive losses, and the government's regulation in the 1970s that restricted foreign ownership.
Outlines
🌟 Introduction to Hindustan Unilever Limited
The paragraph introduces Hindustan Unilever Limited (HUL), India's sixth-largest company by market capitalization, and its parent company, Unilever. It explains that HUL operates in the FMCG sector, with products that are packaged, sold quickly, and have low prices. The history of Unilever is traced back to its beginnings with the soap maker company, Lever Brothers, in England, which introduced the popular 'Sunlight' soap. The paragraph also discusses the merger of Lever Brothers with Margarine Unie, a Dutch company, to form Unilever in 1930. It then outlines HUL's origins, starting with the import of 'Sunlight' soap to India, the launch of 'Lifebuoy' in 1895, and the formation of HUL in 1956 after the merger of three companies: Hindustan Vanaspati Manufacturing Company, Lever Brothers India, and United Traders Limited.
📈 The Evolution and Growth of HUL
This paragraph delves into the challenges and strategic decisions that shaped HUL's growth in India. It discusses the impact of the Swadeshi movement in the 1930s, which led to a decline in soap sales as Indians boycotted imported goods. HUL's response was to start manufacturing in India, setting up its first soap factory in Mumbai in 1934. The paragraph also covers the price control policy of 1973, which forced HUL to sell products below cost, leading to significant losses. The company's strategy to introduce a low-cost soap, 'Janatha', successfully persuaded the government to lift price controls. The narrative continues with HUL's acquisition of Lipton in 1972 and the establishment of Lipton Tea Limited in India in 1977. The paragraph concludes with the challenges faced during the government's drive in the 1970s, which restricted foreign ownership, and HUL's decision to retain a 51% stake by promising significant investment in core sectors and exports from the priority sector.
🌐 HUL's Expansion and Market Presence
The final paragraph highlights HUL's expansion and market presence in India. It mentions the liberalization of the Indian economy in 1991, which allowed private companies to operate freely and facilitated HUL's growth through mergers and acquisitions. Key acquisitions include Tata Oil Mills Company (TOMCO) in 1993, which was known for the soap brand 'Hamam', and the Kisan brand from United Breweries Group, giving HUL entry into the food business. In 1996, HUL entered the ice cream business, and in 1998, it acquired Lakme, a cosmetics brand. The paragraph also notes the merger with GlaxoSmithKline Consumer Healthcare in 2020, adding iconic health drink brands Horlicks and Boost to HUL's portfolio. The brands under HUL are categorized into Home Care, Food and Refreshment, and Beauty and Personal Care, with each category having well-known brands. The paragraph emphasizes HUL's deep integration into Indian households and its adaptation to the Indian market, making its brands synonymous with the products they represent.
Mindmap
Keywords
💡Hindustan Unilever Limited (HUL)
💡Fast-Moving Consumer Goods (FMCG)
💡Unilever Limited
💡Swadeshi Movement
💡Economic Liberalization
💡Mergers and Acquisitions
💡Price Control Policy
💡Global Network
💡Inorganic Growth
💡Home Care, Food and Refreshment, Beauty and Personal Care
Highlights
Hindustan Unilever Limited (HUL) is India's sixth-largest company by market capitalization and operates in the FMCG segment.
Unilever's history began with the soap maker company named Lever Brothers in England, introducing the popular soap 'Sunlight' in the 1890s.
In 1930, Unilever was formed by the merger of Margarine Unie and Lever Brothers, creating a strong global network.
HUL's journey in India started with the success of 'Sunlight' soap, followed by the launch of 'Lifebuoy' in 1895.
HUL faced challenges during the Swadeshi movement in 1930, leading to the establishment of its first soap factory in Mumbai in 1934.
The price control policy in 1973 imposed by the Indian government led to HUL introducing 'Janatha' soap to lift price controls.
In response to the government's regulations in the 1970s, HUL chose to retain a 51% stake and promised significant investment in core sectors.
HUL's growth has been significantly through mergers and acquisitions, such as the acquisition of Tata Oil Mills Company (TOMCO) in 1993.
In 1996, HUL entered the beauty and personal care segment with the joint venture Lakme Unilever Limited.
HUL's acquisition of GlaxoSmithKline Consumer Healthcare in 2020 brought iconic brands like Horlicks and Boost into its portfolio.
Today, HUL's products are used by 9 out of 10 Indian households, with over 50 brands under its umbrella.
HUL's product offerings are categorized into Home Care, Food and Refreshment, and Beauty and Personal Care.
HUL's Home Care brands include Vim, Surf Excel, and Wheel, while Food and Refreshment brands consist of Brooke Bond, Lipton, and Kissan.
In Beauty and Personal Care, HUL owns popular brands like Pepsodent, Dove, Lux, and Vaseline.
HUL has integrated its brands into every aspect of Indian life, becoming synonymous with the products they offer.
Despite some failures like Ayush and Annapurna, HUL has successfully catered to the Indian middle class, making its brands household names.
Transcripts
let me read out some brand names boost
flux light boy surf Excel pepsodent
Vaseline and Clinic plus I'm sure you
know all these Brands and use at least
one of these products in your daily life
so what is common among all these Brands
all of them are owned by Hindustan
Unilever limited or hul is India's sixth
largest company in terms of market
capitalization HL operates in fast
moving consumer goods or efmcg segment
fmcg products are those products which
come in package are sold very quickly
and they have relatively low price
before we understand the history of hul
we need to know a little bit about
Unilever limited which is the parent
company of Hindustan Unilever Limited
Unilever began with the soap maker
company named liver Brothers in England
this company introduced a soap called
sunlight in 1890s this was the idea of
William haskett liver the founder of
liver Brothers it was a success in
United Kingdom moreover this so become
popular globally and helped liver
Brothers to expand their business
worldwide on the other side in
Netherlands in 1872 two businessmen
Georgians and Vandenberg created a
company that produces margarine
margarine is a plant-based fat just like
dalda since there were many competitions
in the margarine industry in 1920s
judging and Vandenberg decided to
strengthen their company by joining
hands with other marginal manufacturers
in the country in 1927 Georgian and
Vandenberg merged with two other
companies to form a company called
margarine uni
in 1930 Marjorie nuni merged with liver
Brothers to form Unilever limited this
was an unusual merger where two
companies are from different Industries
liver brothers were selling soaps and
margarine uni was selling oil normally
mergers happened between the companies
within the same industry but these two
companies had the same vision that by
doing this merger they wanted to create
a strong Global Network that would
create new opportunities since then
Unilever was kept growing and today it
is one of the world's largest consumer
goods company it is truly a global
company there is no exaggeration
Unilever is present in 190 plus
countries which covers almost every
country in the world 3.4 billion people
use their products every day which is
almost half of the world's population
and it employs over 1 lakh 48 000 people
worldwide
so far we are just talking about
Unilever limited its Indian subsidiary
is Hindustan Unilever Limited
but how did a company that started in
Europe became the biggest fmcg brand in
India let's look at the origins of
Hindustan Unilever Limited
88 people
bars with
printed on them made in England by lever
Brothers as I told you earlier sunlight
soap was a success in England and the
same was imported to India by liver
Brothers within no time sunlight soap
became the favorite soap for Indians
with the success of sunlight soap they
launched live boy in 1895 and other
famous Brands like Piers Lux and Vim
were also launched in Indian market in
the following years and in 1930 as I
told you earlier Unilever limited was
formed with the merger of marginal uni
and liver Brothers in 1903 the company
launched red Liberty in India after
which unilio company also started doing
tea business by the way the famous tea
brand Brook bond is part of hul in 1931
Unilever set up its first Indian
subsidiary Hindustan vanaspati
manufacturing company and in the
following years two other companies were
also formed with the name liver Brothers
India and United Traders limited for
different businesses in 1956 these three
companies were merged to form Hindustan
Unilever limited and that's how Hol was
born but the Indian market hasn't been
easy h1's journey in India has been
closely tied up with the ups and downs
of Indian history for example soap cells
suddenly declined in 1930 when the
swadeshi movement was at its peak and
Indians were boycotting imported goods
to protest against British rule one
option for Unilever was to stop doing
business in India but the company
dismissed this idea and instead decided
to start Manufacturing in India the
first soap Factory of liver Brothers was
set up in Mumbai in May 1934. in 1972
hul also bought the Lipton company and
in 1977 Lipton tea limited was
established in India the turning point
in the history of hul was the price
control policy in 1973. the government
had imposed price controls on several
manufactured products including soap and
vanaspati in an effort to control
inflation which means companies had to
sell products at a price decided by the
government which was very low as a
result company had no choice but to sell
all its products below the cost price
which led to massive losses for the
first time in company's history then
chairman of the company T Thomas decided
to introduce a low-cost soap for the
Common Man Called janatha to persuade
the government to lift the price
controls on all soaps the strategy paid
off and the government has grabbed the
price controls
the next big challenge for hul was the
government's Drive in the 1970s When
government brought in regulation which
said the foreign companies cannot own
majority share in Indian company in case
of hul Unilever had the majority
shareholding options were clear sell
your share to Indian company or leave
India some well-known Brands like
Coca-Cola IBM and shell petroleum left
India during this time but h2l decided
to take more difficult path of working
with the government hul had the choice
to leave India but they decided to win
Indian Market at any cost Unilever
convinced Indian government to allow it
to retain 51 percent stake in the
company but how did government got
convinced hul promised that it would
ensure that 60 of the sales would come
from investment in core sectors and 10
percent of its exports would constitute
items from the priority sector such as
agricultural products this strategy
worked very well for their company
during the same time Beauty brand ponds
joined h2l limited has been operating in
India since 1947 but the company was
acquired by Unilever in 1986.
however the biggest turning point for HL
was the liberalization of Indian economy
in 1991. for the first time India
allowed private companies to operate
freely and privatization has started
this allowed the companies to expand
into new areas through mergers and
Acquisitions in 1993 Tata oil Mills
company or TOMCO which was known for the
so brand hamam merged with hul in the
same year h2l sub brand Brook Bond India
acquired kisan brand from United
bravery's group giving h2l an entry into
food business and in the same year
Quality Ice Cream business was also
acquired in 1996 hql and yet another
Tata company Lakme limited formed a 50
50 joint venture Lakme Unilever limited
to Market Lakme cosmetics and other
ritual products subsequently in 1998
Lakme sold its business to Hol another
Big Brand addition for hul happened in
2020 when glaxosmith client consumer
Healthcare merged with Hindustan
Unilever Limited in you must not have
heard about this company but it was the
owner of iconic health drink Brands
horlicks and boast now part of hul
If You observe closely much of the h2l's
growth came from mergers and
Acquisitions which is also called as
inorganic growth where companies grow by
acquiring other companies these
Acquisitions were very important for hul
to acquire market share in the Indian
market which is growing rapidly and
competition was increasing day by day
today 9 out of 10 Indian households use
one or more of the actual Brands and
there are 50 plus brands are under its
umbrella in the financial year 2122
itself company sold products worth 50
000 crores and its products are
available in 90 lakh retail outlets in
India the products offered by h2l can be
divided into three categories Home Care
food and refreshment Beauty and personal
care let's now look at Famous Brands
under each category
under Home Care they have well-known
dishwasher liquid brand Vim they also
have to make surface and toilet cleaners
pureed water purifiers and this one is
interesting the detergent Brands Rim
surf Excel and wheel including the
fabric conditioner Comfort all are owned
by h2l
under food and refreshment segment they
have popular coffee powder brand bro and
tea brands like three roses red label
Taj Mahal Lipton and Taza all are owned
by hul but the list doesn't end here
horlicks and boost the kisan jam nor
noodles and soaps and finally everyone's
favorite quality Walls ice cream is also
part of h2l
beauty and personal care is the largest
segment and brings in majority of the
revenue under Oral Care they have
pepsudent close up and Irish under skin
care segment they have the ultra famous
Dio X other well-known brands from h2l
include Lux Dove Pierce life boy hamam
Lira rexona Vaseline ponds Lakme and
glow and lovely under hair care they
have the common man's favorite Clinic
place and other brands like sun silk
Tresemme and clear are all owned by H1
you see hitrail is operating in India
for more than 100 years and over the
years hul Brands became household names
it is truly amazing how this brand times
became synonymous with the product we
never call it detergent powder it is
served we never call it dishwashing
liquid we call it Wim and we never call
it petroleum jelly it is Vaseline just
like any other company there were
failures in the history of hul Brands
like ayush and Annapurna are not working
very well but HCL was able to
successfully run its business in India
by catering to the Indian middle class
you look at any product they sell they
target middle class simply the history
of Independent India is closely tied
with the history of h2l the brands of
h2l are integrated into every nook and
corner of India it doesn't matter if
they are Indian brands or foreign Brands
they have become household names in
India and I think we can confidently say
that not a day goes by without using a
chill product
thanks for watching see you in the next
one
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