HUL Business Empire |This Brand Controls Your Life | How HUL controls Every Household in India|

Summary

Hindustan 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

00:00

🌟 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.

05:00

📈 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.

10:01

🌐 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.

Keywords

💡Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited is India's sixth-largest company in terms of market capitalization and operates in the Fast-Moving Consumer Goods (FMCG) sector. It is a subsidiary of Unilever, a global consumer goods company. HUL's history is tied closely with India's economic and social development, as it has adapted to various challenges and opportunities, such as the Swadeshi movement and economic liberalization. The company has a diverse portfolio of brands that cater to various consumer needs, as mentioned in the script with brands like Surf Excel, Pepsodent, and Vaseline.

💡Fast-Moving Consumer Goods (FMCG)

FMCG refers to products that are sold quickly and at relatively low prices, typically in packaged forms. These include everyday items like soap, detergents, and packaged foods. The FMCG sector is a significant part of the retail industry and is characterized by high consumer demand and frequent purchases. In the script, HUL is described as operating in this segment, with products like soaps and detergents being part of their FMCG offerings.

💡Unilever Limited

Unilever Limited is the parent company of Hindustan Unilever Limited and is a multinational consumer goods company with a presence in over 190 countries. It was formed through the merger of Lever Brothers and Margarine Unie in 1930. The company's global reach and diverse product portfolio make it one of the world's largest consumer goods companies. The script highlights Unilever's history and its impact on HUL's operations and growth in India.

💡Swadeshi Movement

The Swadeshi Movement was an economic self-reliance movement in India that emerged in the early 20th century as a form of protest against British rule. It encouraged the use of Indian-made goods and boycott of foreign products. The script mentions how the movement led to a decline in soap sales for HUL, prompting the company to start manufacturing in India to adapt to the changing market dynamics.

💡Economic Liberalization

Economic liberalization in India refers to the series of economic reforms in 1991 that led to the opening up of the Indian economy to private and foreign investment. This marked a significant shift from the previous era of state-controlled economy and protectionism. The script describes how HUL benefited from these reforms, allowing it to expand its operations and enter new markets through mergers and acquisitions.

💡Mergers and Acquisitions

Mergers and acquisitions (M&A) are processes through which companies grow by combining with or buying other companies. This can lead to increased market share, access to new technologies, or entry into new markets. The script highlights HUL's growth strategy, which has heavily relied on M&A to expand its portfolio and strengthen its presence in the Indian market, with examples like the acquisition of Tata Oil Mills Company (TOMCO) and Lakme.

💡Price Control Policy

Price control policy refers to government regulations that set maximum prices for certain goods and services to control inflation and ensure affordability. The script mentions how HUL faced challenges due to price controls imposed by the Indian government in the 1970s, which led to the company selling products below cost. This situation prompted HUL to introduce a low-cost soap and negotiate with the government to lift price controls.

💡Global Network

A global network refers to a company's widespread presence and operations across different countries and regions. The script discusses how Unilever's vision for creating a strong global network through mergers and acquisitions has contributed to its success as a multinational corporation. HUL's operations are part of this global network, leveraging Unilever's international reach and resources.

💡Inorganic Growth

Inorganic growth is a business strategy where a company expands by acquiring or merging with other companies rather than growing organically through internal development. The script emphasizes HUL's use of inorganic growth through mergers and acquisitions to quickly gain market share and diversify its product offerings in the Indian market.

💡Home Care, Food and Refreshment, Beauty and Personal Care

These are the three main categories of products offered by HUL. Home Care includes cleaning and maintenance products like Vim and Surf Excel. Food and Refreshment encompasses coffee, tea, and food items such as Horlicks and Kissan. Beauty and Personal Care covers a wide range of products for personal hygiene and grooming, including brands like Dove and Lux. The script outlines the extensive product range of HUL under these categories, showcasing its diverse portfolio and market reach.

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

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