Organizational Behaviour Assignment Rajashavi
Organizational Behaviour Assignment Rajashavi
Introduction-
Hindustan Unilever Limited has always believed that business must have a purpose beyond
profits. This belief has shaped our journey of more than nine decades, enabling us to build a
future-fit organization that thrives on the core values of Integrity, Respect, Responsibility and
Pioneering. HUL is a subsidiary of Unilever, one of the world’s leading manufacturers of Food,
products and other consumer staples. HUL was established in 1931 as Hindustan Vanaspati
Manufacturing Co. Following a merger of constituent groups in 1956, it was renamed
Hindustan Lever . Hindustan Unilever Limited (HUL) is an Indian fast-moving consumer
goods company, headquartered in Mumbai. It is a subsidiary of the British company
Unilever. Its products include foods, beverages, cleaning agents, personal care Limited. The
company was renamed again in June 2007 as Hindustan Unilever Limited
Hindustan Unilever's corporate headquarters are located in Andheri, Mumbai. The campus is
spread over 12.5 acres of land and houses over 1,600 employees. The campus is designed by
Mumbai-based architecture firm Kapadia Associates.
The company's previous headquarters were located in Backbay Reclamation, Mumbai at the
Lever House, where it was housed for more than 46 years.
The Hindustan Unilever Research Centre (HURC) was set up in 1966 in Mumbai, and Unilever
Research India in Bangalore in 1997. In 2006, the company's research facilities were brought
together at a single site in Bangalore. Hindustan Unilever Ltd was incorporated on 17 October
1933 as Lever Brothers India Ltd. Hindustan Unilever Limited (HUL) is Indians largest Fast-
Moving Consumer Goods company with its products touching the lives of nine out of ten
households in the country.
The Company is in the fast-moving consumer goods (FMCG) business comprising primarily
into four business segments such as, home care, personal care, foods and refreshments. Soaps
and detergents include soaps, detergent bars, detergent powders and scourers. Personal products
include products in the categories of oral care, skin care (excluding soaps), hair care, talcum
powder and color cosmetics. Beverages include tea and coffee. Foods include staples (atta, salt
and bread) and culinary products (tomato-based products, fruit-based products and soups). Ice
creams include ice creams and frozen desserts. HUL is a subsidiary of Unilever, one of the
world's leading suppliers of Food, Home Care, Personal Care and Refreshment products with
sales in over 190 countries. With a 90-year legacy in India, boasts a substantial Rs. 58,154+ crore
turnover in the financial year 2022-23.
Hindustan Unilever Limited (HUL) is committed to operate and grow its business in a socially
responsible way.
The Vision Statement of Unilever -is to "To make new sustainability normal," says Unilever's
business vision. Says Unilever's business vision. " We feel that this is the finest long-term
strategy for our company's expansion." The concentration in this vision statement is on
sustainability, particularly among customers. In Unilever's vision statement, the following
elements stand out:
Unilever recognizes the significance of sustainability as well as other market changes that are
influencing the sector. Furthermore, the company's idea of sustainability as a means of sustaining
commercial growth is reflected in the vision statement. This vision statement is in line with
Unilever's corporate social responsibility approach for consumer products sector. Company's
vision is to grow our business whilst reducing the environmental impact of company’s operations
and increasing company's positive social impact. Over the years the company has strived to serve
the communities through various initiatives. The company needs to bridge the divide to a fairer,
more socially inclusive world. A world where we all live with, rather than at the expense of,
nature and the environment
Core Values
It takes a team to live according to the Unilever Code of Business Principles. The common
values of our workers make up a large part of Unilever's strength. Our aspirations don't end
there. We want to have a good impact across our value chain; therefore, we're working with
partners, distributors, and other third parties to raise the bar on human rights and anti- --bribery
and corrupt concerns.
Integrity
Respect
Responsibility
Pioneering
"To impart energy to live," says Unilever's business mission statement. With brands that help
people feel well, look good, and get something out of life, we satisfy everyday demands for
nutrition, cleanliness, and hygiene products." The company's mission statement emphasizes how
it serves clients in numerous areas of their life. Unilever's mission statement has the following
important components:
In Unilever's corporate purpose statement, adding energy to life is a broad indicator of business
strategy. The value that customers may anticipate from the company's products is full of
liveliness. The corporate purpose also identifies the elements of life to which such energy is
brought. Unilever's food items, for example, cater to consumers' nutritional requirements
ORAGANANIZATIONAL STRUCTURE
Unilever’s main products include food, condiments, ice cream, cleaning agents, beauty products,
and personal care. The company is the largest producer of soap in the world and its products are
available in around 190 countries. Some of Unilever’s largest brands include Ben & Jerry’s,
Hellman’s, Axe, and Sunsilk.
In its time, Unilever has made numerous corporate acquisitions of companies which include
Lipton, Best Foods, and Dollar Shave Club. The company has a primary listing on the London
Stock Exchange, is a constituent of the FTSE 100 Index, and also has a listing on the New York
Stock Exchange.
In November 2020, Unilever’s UK and Dutch arms merged to form a single London-based
entity.
The company announced that it was to move away from its previous matrix structure and
organize itself around the five Business Groups mentioned earlier. Each Unilever Business
Group is fully responsible and accountable for its own strategy, growth, and profit delivery
globally.
In early 2022, Unilever announced huge changes to its organizational structure to make it a
“simpler, more category-focused business”. One of the primary advantages of a
functional/divisional structure is its support for innovation and product development. As we
highlighted, each Business Group at Unilever operates almost autonomously and is responsible
for its own growth. This means that employees who fall within each Business Group are more
determined to take ownership of their roles because they can more easily see the impact that their
work has on the wider organization.
One of the disadvantages of Unilever’s approach is its lack of support at the regional level.
Although there are some geographic elements to the company’s organizational structure, the core
focus of it is on its Business Groups and the brands and products that fall under them. This
means that there’s potentially limited support for market-specific operations depending on how
each Business Group chooses to manage its operations.
Divisions and Departments in the organization - The company has a strong presence across
India, with more than 9 out of 10 households using a brand of HUL.The company’s portfolio
comprises three divisions: home care, beauty care, personal care, and food and refreshment. It
includes 14 brands in 44 different categories. From shampoos (Lifebuoy) to detergents (Surf
Excel), HUL boasts iconic brands trusted by millions. The company employs 21,000 people and
has 31 factories, working with over 1150 suppliers to make its products available at more than 8
million outlets across India.
1.Board of Director
3. Functional Heads
Head of Finance
Head of Legal and Corporate Affairs
Head of Supply Chain
Head of Research and Development (R&D)
Head of Sales and Marketing
Head of Sustainability and Communications
HUL is organized into various business units to manage different product categories, such
as:
Home Care
Personal Care
Food & Refreshment
Health & Wellness
Each of these divisions is led by a senior executive or business leader who focuses on
managing that specific product category
5. Regional Managers
- HUL operates across different regions (e.g., North, South, East, West) in India and
internationally. Regional managers are responsible for implementing the company’s
strategies and ensuring operational excellence within their respective regions.
8. Entry-Level Employees
- These are employees at the beginning of their careers, typically in roles such as
associates, analysts, and assistants, working under supervisors or managers.
The hierarchy of Hindustan Unilever Limited (HUL) is structured to manage its diverse
operations across various functions like marketing, finance, operations, and human resources.
Below is a general overview of the organizational hierarchy:
1. Board of Directors
2. Executive Leadership
3. Functional Heads
Head of Finance
Head of Legal and Corporate Affairs
Head of Supply Chain
Head of Research and Development (R&D)
Head of Sales and Marketing
Head of Sustainability and Communications
HUL is organized into various business units to manage different product categories, such as:
Home Care
Personal Care
Food & Refreshment
Health & Wellness
Each of these divisions is led by a senior executive or business leader who focuses on managing
that specific product category.
5. Regional Managers
HUL operates across different regions (e.g., North, South, East, West)
in India and internationally. Regional managers are responsible for
implementing the company's strategies and ensuring operational
excellence within their respective regions.
8. Entry-Level Employees
Shiva Krishnamurthy join the HUL Management Committee as Executive Director, Foods
and Refreshment. Shiva, currently Vice President, Foods and Beverages, South Asia, joined
HUL in 2000. He has successfully led Lifebuoy and Lux in Skin Cleansing in India, Radiant
(Rin) innovation for Homecare in South East Asia and has been leading South Asia’s Tea
business since 2015. Under his leadership, the team galvanized HUL to be the market leader in
Tea in India by localizing the product mix and building a strong innovation pipeline. The
communication campaigns under his leadership have been recognized with industry awards in
India and globally.
Srinandan Sundaram, currently Executive Director, Foods and Refreshment, will take over as
the Executive Director, Homecare, HUL. Srinandan, in his current role as Executive Director,
Foods and Refreshment, HUL has successfully led the business, with Tea having sustained its
leadership in the category and competitive growth in the Health Foods Drink business, which has
been fully integrated into HUL during his tenure. Srinandan has also established the foundation
for strong growth in the Foods business, with existing and new categories and has led the
acceleration of HUL’s agenda on Regenerative Agriculture and Nutritional value in products.
Deepak, in his current role as Executive Director Homecare, HUL has led the business to deliver
strong results on topline and bottom-line in both Fabric Care and Home & Hygiene categories
delivering robust volume growth and
premiumization. He has also led the sustainability agenda for HUL, helping build an integrated
ESG strategy for the Company
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
These three companies merged to form HUL in November 1956; and HUL offered 10% of its
equity to the Indian public, being the first among the foreign subsidiaries to do so.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had
launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.
Brooke Bond joined the Unilever fold in 1984 through an international acquisition.
Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977
Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India
since 1947. It joined the Unilever fold through an international acquisition of Chesebrough
Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus
of economic growth. The growth process has been accompanied by judicious diversification,
always in line with Indian opinions and aspirations. The liberalization of the Indian economy,
started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of
the regulatory framework allowed the company to explore every single product and opportunity
segment, without any constraints on production capacity. Simultaneously, deregulation permitted
alliances, acquisitions and mergers. In one of the most visible and talked about events of India's
corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective
from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a
50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and
other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its
brands to HUL and divested its 50% stake in the joint venture to the company. HUL had formed
a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark
Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads
MAJOR MILESTONES-HUL also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL),
and its factory represents the largest manufacturing investment in the Himalayan kingdom. The
UNL factory manufactures HUL’s products like Soaps, Detergents and Personal Products both
for the domestic market and exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the
Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General
Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan
business from the UB Group and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies
of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India
merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and
ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the
Wall’s range of Frozen Desserts. By the end of the year, the company entered into a strategic
alliance with the Kwality Ice-cream Group families and in 1995 the Milkfood 100% Ice-cream
marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond’s (India) Limited (PIL) with HUL in
1998. The two companies had significant overlaps in Personal Products, Speciality
Chemicals and Exports businesses, besides a common distribution system since 1993 for
Personal Products. The two also had a common management pool and a technology base.
The amalgamation was done to ensure for the Group, benefits from scale economies both
in domestic and export markets and enable it to fund investments required for
aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public sector
undertakings (PSU) to private sector partners. HUL’s entry into Bread is a strategic extension of
the company’s wheat business. In 2002, HUL acquired the government’s remaining stake in
Modern Foods. HUL launched a slew of new business initiatives in the early part of 2000’s.
Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by
less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as
it benefits business.
Hindustan Unilever Network, Direct to home business was launched in 2003 and this was
followed by the launch of ‘Pureit’ water purifier in 2004.
In 2007, the Company name was formally changed to Hindustan Unilever Limited after
receiving the approval of shareholders during the 74th AGM on 18 May 2007. Brooke Bond and
Surf excel breached the Rs 1,000 crore sales mark the same year followed by Wheel which
crossed the Rs.2,000 crore sales milestone in 2008.
On 17th October 2008, HUL completed 75 years of corporate existence in India. In January
2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation,
Mumbai to the new campus in Andheri (E), Mumbai.
On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India
at New Delhi.
In March, 2012 HUL’s state of the art Learning Centre was inaugurated at the Hindustan
Unilever campus at Andheri, Mumbai.
In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the
Hindustan Unilever campus at Andheri, Mumbai
In 2013, HUL launched ‘Prabhat’ (Dawn) - a Unilever Sustainable Living Plan (USLP) linked
program to engage with and contribute to the development of local communities around its
manufacturing sites. Also, Unilever’s first aerosol plant in Asia was inaugurated in Khamgaon,
Maharashtra in 2013.
In October 2013, Sanjiv Mehta took over as the CEO and Managing Director of HUL.
In 2014, The ‘Winning in Many Indias’ operating framework, piloted in 2013, launched
nationally. Sales offices expanded from four to seven with the launch of offices in Lucknow,
Indore and Bangalore in addition to the existing sales offices in Delhi, Kolkata, Mumbai and
Chennai.
In 2015, HUL acquired Indulekha, a premium hair oil brand with strong credentials around
Ayurveda.
HUL announced signing of an agreement for the sale and transfer of its bread and bakery
business under the brand “Modern” to Nimman Foods Private Limited.
In 2016, HUL unveiled ‘Suvidha’ a first-of-its-kind urban water, hygiene and sanitation
community centre in Azad Nagar, Ghatkopar, one of the largest slums in Mumbai.
In 2018, HUL signed an agreement with Vijaykant Dairy and Food Products Limited (VDFPL)
and its group company to acquire its ice cream and frozen desserts business consisting of its
flagship brand ‘Adityaa Milk’ and front-end distribution network across geographies.
In 2020, HUL announced acquisition of VWash, the market leader in female intimate hygiene
category to enter the currently underpenetrated and rapidly growing market segment.
In 2020, with the Merger of GSK Consumer Healthcare with Hindustan Unilever Limited, Iconic
health food drink brands – Horlicks and Boost enter the foods & refreshment portfolio of HUL,
making it the largest F&R business in India.
In July 2022, Unilever India Limited's new Home Care factory and an automated distribution
centre were inaugurated in Sumerpur, Uttar Pradesh. The factory is a zero-carbon factory and
Unilever South Asia's first gender-balanced factory.
In March 2023, Rohit Jawa has been appointed as the CEO and Managing Director of HUL with
effect from June 27, 2023.
OBJECTIVES OF THE HINDUSTAN UNILIVER LIMITED
Back in 1883, Sunlight Soap was launched in the UK by our founder – it was pioneering, it was
innovative and it had a purpose to popularize cleanliness and bring it within the reach of ordinary
people. That was sustainable living, even then. Unilever now has over 400 brands that are driven
by the same sense of purpose.
We want to do better for our planet and our society, not just less harm. We want to act on the
social and environmental issues facing the world and we want to enhance people’s lives with our
products. Unilever has been a pioneer, innovator and future-maker for over 130 years. We plan
to continue doing that and more so, sustainably. Unilever is driven by a strong desire to promote
sustainable living across the globe. The company aspires to be a world leader in sustainable
business practices. Unilever's core values underline the importance of integrity, responsibility,
respect, and a pioneering spirit in achieving its mission and vision.
MARKET DEMAND
Industry analysis
Hindustan Unilever Limited is part of FMCG industry, which is one of biggest long-term
sustainable business opportunities which India offers. Even though India is one of fastest
growing markets globally for FMCG products, its per capita FMCG consumption is still amongst
lowest globally, which provides a huge runway for growth.
India continues to undergo rapid digitization and new-age technologies are transforming FMCG
market. As a result, there are opportunities for brands, consumers, and customers alike. Digital
commerce continues to gain more relevance as consumers are moving between online and offline
channels of trade. Traditional trade players continue to reinvent their business models to play
critical role in new digital India.
Indian FMCG industry is expected to compound at ~14.9% and should grow from US$110
billion in 2020 to US$220 billion in 2025 and to US$615 billion by 2027. Growth is expected to
come from increased focus on growing small-pack segment to improve penetration. Focus
should be on increasing footprint in geographies which show greater potential for growth, in both
rural and urban markets. India’s USD 70 Bn FMCG market is the major contributor to India’s
GDP. The household and personal care segment is the primary driver and accounts for 50% of
India’s FMCG sales. HUL continues to strengthen its market position in the BPC segment by
driving penetration in core brands, such as Dove, Ponds, Sunsilk, and dominate the hair care and
skincare category market.
With 50+ brands across 15 distinct categories, HUL dominates the FMCG market in India. 90%
of households in India use one or more HUL brands. It has also entered the top 15 global
consumer staple stocks list with a current market cap of USD 75Bn. So, let us see some
interesting facts in this HUL company analysis.
#1 in 8 product categories (Skincare, skin cleansing, hair care, fabric wash, household care, tea,
health drinks, ketchup).
Leading fabric wash brand (surf excel) generates Rs. 5,000+ Cr. revenue. And with a market
share of ~18%, it accounts for 14% of its revenue and 45% of its laundry segment sales.
#Unmute Campaign
To support the agenda of ending the silence on domestic violence, company launched ‘Unmute’
to create awareness around women's safety in our workplace and in our extended value chain.
Leadership development is one of the core tasks of the Management Committee at Hindustan
Unilever. “Senior management devotes enormous time in the leadership development process,”
says Leena Nair, Executive Director HR. In every fortnightly management review meeting,
talent review session is an integral part of the overall agenda. Top management at Hindustan
Unilever invests anywhere between 30 to 40% of their time in grooming and mentoring leaders
for the future. They get involved at various stages -- from redefining the talent identification
process, to identifying talent, to grooming and coaching, to creating opportunities for growth and
exposure.
The critical role of a “leader” at HUL is to create talent and capability for the future. Each
identified leader is expected to create leaders within and draft their succession plan. “As Head of
Human Resources, I need to ensure that I have identified and am grooming a couple of people
who can take over my role today, another couple who could take over my role in 2 to 3 years and
in 5 to 7 years -- that is my responsibility as a leader,” says Leena Nair.
In the process of identifying leadership talent, Performance and Behavior are considered equally
important. “You need to be delivering great performance, but just that is not sufficient. The
demonstrated behaviors or ‘Standards of Leadership’ as we call them at Unilever, will also
determine your potential for future growth and success,” says Leena. Unilever uses the
Leadership Differentiation Tool (LDT), a 3x3 grid of performance vs potential to differentiate
amongst its talent pool. These principles are applied to around 5,000 people as part of talent
assessment across the company.
Information on performance is taken from the appraisal review process & KRAs on the job,
while information on behaviors and potential is taken from multiple sources: a 360-degree
profiling (done once every two years), behaviors demonstrated on the job & GPS (Global People
Survey) results. GPS is an employee survey that captures insights into employee engagement
levels across various teams,
CONCLUSION
While HUL’s legacy is impressive, the future holds new challenges. Intense competition,
evolving consumer preferences, and a complex economic landscape demand continued
innovation and adaptation. However, HUL’s deep understanding of the Indian market and its
focus on strategic initiatives like rural outreach and sustainability position it well. By leveraging
its digital capabilities and commitment to responsible growth, HUL can not only maintain its
leadership in the Indian FMCG industry but also set a global example for the future of the sector.
‘Trade, Ties, and Transformation, this is how India, and HUL Intertwined’