OPERATIONS MANAGEMENT FMCG FIRM
A study on Hindustan Unilever Ltd.
ABOUT
HUL was known as HLL earlier Company HUL is a subsidiary U.K. based Company of the
Transnational
Unilever. Indias one of the biggest exporter. Uses the best quality of raw materials & latest technology. Having 6 type of products categories i.e. Home , Personal care products ,Foods & Beverages , nutrition, water, healthhygiene and beauty.
Hul products:-
Vision:-
Mission: They bring safety on top of mind for all employees and will integrate it with all business processes and ensuring a safe and healthy work environment. HUL AHEAD OF OTHER FIRMS:-
Operations Process
Demand Planning
Customer Service
Sales and Marketing
Manufacturing
Supply Chain
MARKETING STRATEGIES
Urban Focuses on short supply chain for distribution. Meet every need of people everywhere. Build segments & market for the future Emphasis on Direct selling, Franchisee to reach everyone Rural For long term benefit HUL started PROJECT STREAMLINE in 1997. Appointed 6000 sub stockists that directly covers about 50000 villages & 250 million customers. Integrate economic, environment, & social objective with Business Agenda.
PROMOTIONAL AND DISTRIBUTION STRATEGIES
PROMOTION
Project Shakti Hindustan Unilever Network (HUN) Lifebuoy Swasthya Chetana Out-of-Home Health and Beauty services
DISTRIBUTION
Mission is to meet the everyday needs of people everywhere 7,000 redistribution stockists covering about one million retail outlets Provide tailor-made services to its channel partners Powered distribution RSNet online interaction on orders, dispatches, information sharing and monitoring Rural distribution through Projects Streamline and Shakti
HUMAN RESOURCES
Attracting, Motivating and Retaining the Best Talent Fair day's work 36,000 employees, including about 1,400 managers 200,000 indirect jobs Environment for Empowering the people The manager works in different functions across villages and international locations Progress is based on:
Merit Ability and Performance Adhering to the Company's Code of Business Principles
The values of Truth, Courage, Action and Caring form the bedrock of these business principles Creating a new generation of Industrial Workmen
FINANCE STRATEGIES
Company launching new products and brand extensions with investments being made towards brand-building and increasing its market share High dividend yield, steady growth and strong market standing in its product categories Sustained improvement in cost saving program Tight focus on discretionary costs.
HINDUSTAN UNILEVER PLANT (LOTE, CHIPLUN)
Detergents and Soaps division Plant Location Plot No. B-7, Lote Parshuram MIDC, Khed Taluka, Dist. Ratnagiri City: Chiplun State: Maharashtra Pincode: 415722 Coordinates: 1737'1"N 73 28'35"E
STRATEGIC LOCATION
Both sides of Mumbai-Goa highway Twelve kilometers from Chiplun Taluka Seventeen kilometers from Khed Taluka Seven kilometers from Chiplun Railway Station Near to Koyna Dam and Hydraulic Power Station Accessible to Pune, Satara and Kolhapur
MIDC
HUL could get numerous advantages by taking a plot of land in any of the industrial areas of MIDC. Plot in recognized Industrial Zone with approach road facility Location in a well laid out industrial neighbourhood. Plots of different sizes to meet the requirements of different industries Reasonable premium rates in the developed areas and subsidized rates in the developing areas with a guarantee of clear title. No separate non-agriculture (N.A.) permission of zoning clearance is necessary. Adequate filtered water supply is assured. MIDC industrial area will not be included within the limit of any Municipal Council or Corporation at least for 25 Years.
LIFEBUOY
Personal wash Oldest product Main raw material
Glycerin Palm Oil
Market Leader since 117 years Discontinued use of Carbolic Acid Earlier used for washing clothes and cleaning floors Changed to bathing and handwash soap in 1933
SURF EXCEL
Fabric wash Surfactant Chemical- Sulphonate Available in powder and bar Used for cleaning fabric
PLANT CAPACITY
Best Unit in India 110,000 Tonnes per annum 45% Soap 55% Detergents Waste management system Reduction of CO2 emissions Used waste to burn fuel
SOURCING OF RAW MATERIALS
Sustainable sourcing Palm Oil from local farmers, imports and agricultural processing units Chemicals imported and sourced from local MIDC companies Low cost of sourcing Green Certificates in sourcing
SOAP MAKING PROCESS
Splitting Mixing Cooling Milling Finishing
DETERGENT MAKING PROCESS
Agglomeration Drying Pulverizing
FINANCIAL ANALYSIS
BALANCE SHEET
Increase in Equity Share Capital Increase in Profits Increase in Reserves and surplus Increase in Current Investments Increase in Net Assets
Income Statement
Increase in Sales Increase in Expenses Increase in EPS
Graphical Representation of Sales
Particulars Percentage distribution of SALES 48% 31% 19%
Soaps, Detergents & Household Care Personal products
Foods
Chemicals, Agri, Fertilisers & Animal Feeds 0%
Others 2%
2%
Percentage wise distribution of sales
0%
Soaps, Detergents & Household Care
Personal Products Foods
19%
31%
48%
others Chemicals, Agri, Fertilisers & Animal Feeds
CORPORATE SOCIAL RESPONSIBILITY
Sustainability : reducing carbon footprint - Target of 25% reduction in CO2 from energy in manufacturing operations per tonne of production by 2012, against a baseline of 2004 by using agri-waste to fuel its boilers in factories - New process of manufacturing soap based on 'Plough Share Mixer' technology . Eliminates the need for steam in soap making. Since soaps are a sizeable part of business, the new technology cuts carbon emissions by 15,000 tons per year Chiplun factory received the CII Award 2011 for the efforts being taken to enhance Safety & Health initiatives 2011- Golden Peacock Award for CSR and Golden Peacock Award for Environmental Management Water Conservation and Harvesting, Aasha Daan, Ankur, Sanjivani, Lifebuoy Swasthya Chetana, Project Shakti
THANK YOU
