Hll Case Study
HLL – Juggernaut- The dilemma of Growth
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This case study has been developed by Rajan Saxena Vice chancellor NMIMS University for class room discussion.
HLL – Juggernaut- The dilemma of Growth
Hindustan Lever Ltd in India is a 51.4%-owned subsidiary of its global parent Unilever Group. Formed in 1956, the company has since expanded its operations through organic growth and mergers and acquisitions to become the largest fast-moving consumer goods company in India. Hindustan Lever is one of India’s oldest consumer goods companies with brands that are household names. In line with the global revamp of its regional structure, Hindustan Lever also changed its organizational structure in India in 2005 with the setting up of a new management committee and the appointment of a new chairman. The company also appointed an expatriate CEO, Doug Baillie to take over the reigns of the company. This was the first time the company appointed a non-Indian CEO in around 50 years. In 2007, meanwhile, the company changed its name from Hindustan Lever Ltd to Hindustan Unilever Ltd. The new name reflects the right balance between the Indian heritage of the Company and the synergies of its global alignment with Unilever. The new logo symbolizes the Company’s mission of ‘Adding Vitality to Life’.
Hindustan Lever’s broad product portfolio spans soap, detergents, personal products and food. Soap, detergents and scourers generate roughly 46% of revenues, while the rest is largely accounted for by personal products (26%), beverages (11%), other products (2%) and exports (10%). Processed foods and ice cream and other products collectively contribute a miniscule 5% towards total turnover. The company has a significant share of most products in which it operates, with the exception of packaged food. It is among the leading players in cosmetics and toiletries, non-alcoholic beverages and household care in India.
Exhibit 1: Showing the contribution of the different
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This case study has been developed by Rajan Saxena Vice chancellor NMIMS University for class room discussion.
HLL – Juggernaut- The dilemma of Growth
Hindustan Lever Ltd in India is a 51.4%-owned subsidiary of its global parent Unilever Group. Formed in 1956, the company has since expanded its operations through organic growth and mergers and acquisitions to become the largest fast-moving consumer goods company in India. Hindustan Lever is one of India’s oldest consumer goods companies with brands that are household names. In line with the global revamp of its regional structure, Hindustan Lever also changed its organizational structure in India in 2005 with the setting up of a new management committee and the appointment of a new chairman. The company also appointed an expatriate CEO, Doug Baillie to take over the reigns of the company. This was the first time the company appointed a non-Indian CEO in around 50 years. In 2007, meanwhile, the company changed its name from Hindustan Lever Ltd to Hindustan Unilever Ltd. The new name reflects the right balance between the Indian heritage of the Company and the synergies of its global alignment with Unilever. The new logo symbolizes the Company’s mission of ‘Adding Vitality to Life’.
Hindustan Lever’s broad product portfolio spans soap, detergents, personal products and food. Soap, detergents and scourers generate roughly 46% of revenues, while the rest is largely accounted for by personal products (26%), beverages (11%), other products (2%) and exports (10%). Processed foods and ice cream and other products collectively contribute a miniscule 5% towards total turnover. The company has a significant share of most products in which it operates, with the exception of packaged food. It is among the leading players in cosmetics and toiletries, non-alcoholic beverages and household care in India.
Exhibit 1: Showing the contribution of the different
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References: 2. Brand Equity, May 23, The Economic Times, May 22, 2001. 7. India report (2008) Euromonitor 2009 8