PROJECT SHAKTI

“A BUSINESS INITIATIVE WITH

SOCIAL BENEFITS”

SURENDER CHORASIYA
MBA II Sem
 HUL-About the company
• Hindustan Unilever Limited (HUL) formerly
known as HLL, is India's largest FMCG Public
company formed in the year 1933.
• Head quarters : Mumbai
• Unilever sells Foods and Home and Personal
Care brands in about 100 countries worldwide.
• HUL is also one of the country's largest
exporters
 PRODUCT PROFILE
Home & Personal Care : 2 categories
1. Detergents: all the detergents and dishwashers are covered in this. For example,
Vim, Rin, Surf Exel.
2. Personal Products: this comprises of all the products related to personal care.
These are as follows:
Oral: toothpaste and toothbrush ( Pepsodent, Close Up)
Skin: soaps, talcum powder, fairness cream, body lotion,
winter cream ( Pears, Vaseline,
Fair & Lovely, Ponds’)
Hair: Sunsilk, Clinic All Clear

Food : Kissan squashes and jams, Annapurna

salt and atta Knorr, kwality walls, Lipton tea,
Bru coffee.

Water purifier : Puriet Water Purifier

 HUL & RURAL DEVELOPMENT
• HUL linked the company’s core business with rural development
initiatives as it is mutually beneficial to both the society at large and
for the company..
• Rural sales contribute around 40% to HLL’s overall sales
• HUL has been proactively engaged in rural development since 1976
with the initiation of the Integrated Rural Development Programme
in Uttar Pradesh.

• LIFEBUOY SWASTHYA CHETANA

• adoption of hygienic practices among rural Indians and aims to bring
down the incidence of diarrhoea
• It has already touched 84.6 million people in approximately 43890
villages of 8 states.
 PROJECT SHAKTI
• Project Shakti was launched in the year 2001 in
the Nalgonda district situated in Andhra Pradesh
• OBJECTIVE : To create income-generating
capabilities for underprivileged rural women, by
providing a sustainable micro enterprise
opportunity, and to improve rural living standards
through health and hygiene awareness.
• 4,00,000 VILLAGES
States covered by Project shakti
 HOW IT WORKS
• Villages with a population of about 2000–3000 are
selected
• Personnel from HUL approach SHGs
• Selection of the Shakti Amma
• HUL vouches for Shakti Ammas with banks for credit
• one Shakti entrepreneur
is appointed for one village &
Villages that are about 2 kilometres
apart from her village
(satellite villages ).
 PRICING AND PACKAGING

• Rural consumers are price sensitive

• Sachets and small packs of premium products.
• Price doesn’t exceed Rs.5 per sachet.
• Lux at Rs.5,
• Lifebuoy at Rs.2,
• Surf Excel sachet at Rs.1.50,
• Pond's Talc at Rs.5,
• Pepsodent toothpaste at Rs. 5,
• Fair & Lovely Skin Cream at Rs.5,
• Pond's Cold Cream at Rs.5,
• Brooke Bond Taaza tea at Rs.5.
 Distribution
It is the combination of the 3 ways:
• Door to door selling (11% margin on sales)
• Sells from own home (11% margin on
sales)
• Retailers (3% margin)
• averages sales :
• Rs. 10,000 - Rs. 15,000/month,
• profit - Rs.1,000 per month
 Future plans
• Project Shakti plans to extend to the
states of West Bengal, Punjab and
Rajasthan.
• Partnership with other non-competitor
companies to sell their products through
the Shakti network.
• Nippo, TVS Motor for mopeds, insurance
companies for LIC policies.
 issues
• Low margins .
• Difficulty in acquiring
finance
• transportation
• Low disposable income
(dependence on monsoon)
Vision 2010

100,000 500,000 600 million

Entrepreneurs villages Consumers

Shakti shall reach every home in every village, create

sustainable livelihood opportunities, and enhance the
quality of life in rural India

Now SHAKTI has been extended 80,000 villages in 15

states with 45,000 women entrepreneurs & generating
Rs.700-1000 per month to each women.
 CONCLUSION
• Project Shakti is enabling families to live
with dignity and in better health &
hygiene, education of the children and an
overall betterment in living standards.
• it creates a win-win partnership between
HUL and the rural consumers for mutual
benefit and growth.
Profile of Indian rural Economy
Sector %
Agriculture 78.0
Manufacturing 7.1
Service 5.8
Trade 4.4
Others 4.3
 Why all these program
 To take people aware
 To increase the consumption.
 To increase the income.
 To increase behavior in –
 Awareness & living standard Lifestyle
 Self consciousness.
WHY SHAKTI???

• It was soon felt that HUL's sales and

distribution system which had protected it
from competitors would be soon replicated by
its rivals and to maintain its edge, the
company had to increase its reach beyond
the urban markets
• Carrying and forwarding agents(CFA)
• more than 70% of India's population lived in
villages and made a big market for the FMCG
industry
 • Earnings about 7%, after 3% goes
BENEFITS

towards principal and interest

• Improves her per-capita income by about

50% to 100%

• 100,000 entrepreneurs by 2010

Thank you