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Corporate Governance

Hindustan Unilever Ltd

Sunil Bhati Ashish Chanchlani Pankaj Godhwani Anoop Nair Anurag Premchandani Yogesh Punjabi Umesh Ramchandani

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Introduction. Mission & Values. Product line. SWOT analysis. Companys philosophy on corporate governance. Risk management. Future prospects.


Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods (FMCG) company owned by the European company Unilever. The Anglo-Dutch company Unilever owns a 52% majority stake. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.

The company was renamed in June 2007 as Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 1million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. The company claims that two out of three Indians use its many home and personal care products, food and beverages.


Unilevers mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

Always working with Integrity Positive Impact Continuous Commitment Setting out Aspirations Working with Others.

Product line

SWOT analysis

Largest market share. Efficient man power having 15000 employees over 1300 managers. Strong distribution network. Reaching out 135000 villages and directly reaching to 150 million to rural consumers through there shakti program. Every brand of HUL has its own high brand value.

Strong Competitors. Low Export Level (At Present). Changing consumption pattern. High advertising costs.

Large Domestic Market. Untapped rural Market. Changing Life Styles of consumer. Increasing the consumer income.

Tax & Regulatory Structure. Mimic of Brands. New Entrants. Increasing Raw Material cost.

Companys philosophy on corporate governance.

The three cornerstones of corporate governance at HUL are: Fairness Transparency Accountability HUL complies with the requirements of clause 49 of listing agreement with the stock exchange.

Corporate governance

In relation to Shareholders provides timely, regular & reliable information, financial situation & performance to all shareholders. In relation to Consumers committed to providing branded products & services which consistently offer value in terms of price & quality. In relation to Community it strives to be a trusted corporate citizen by fulfilling responsibilities towards society &

Corporate governance- Employees

HUL follows the following principles in regard to its employees: HUL recruits, employs and promotes employees on the sole basis of the qualifications and abilities needed for the work to be performed. committed to safe and healthy working conditions for all employees develop and enhance each individual's skills and capabilities. respect the dignity of the individual and the right of employees to freedom of association.

National Corporate Governance Award-2011

By Institute of Company Secretaries of India (ICSI)

ICSI bestows this award every year to those it considers to be the two best-governed companies in India The selection is made by a jury of distinguished practitioners Evaluation process involved a number of rounds of screening, including feedback from Independent Directors of the company on governance practices.

Key areas of Corporate Governance

Profitable growth
Consistent shareholder value enhancement and value enhancement for other stakeholders

Transparency compliances



Corporate Social Responsibility


Board System and Procedure. Other good corporate governance initiatives. Shareholders / Investors Grievance Committee. Other good corporate governance initiatives.

Risk management
Unlisted risk: Crucial need to strategically place brands on strong position. Hard to differentiate blue competitive brands, cash brands. Avoid multiple price wars. Proliferation product line.

Future plans

HLL has drawn up a comprehensive plan to expand its portfolio in the area of Health Care and Contraceptives. Chemicals business (encompassing Flavours, Fragrances and other Specialty Chemicals), as well as several non-FMCG export businesses such as Thermometers and Mushrooms. HLL has been pepping up its rural distribution systems and has launched low unit price variants of its popular brands to draw in new users in the rural areas.


HLL has been pepping up its rural distribution systems and has launched low unit price variants of its popular brands to draw in new users in the rural areas.