Introduction to HUL

Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods company, touching the
lives of two out of three Indians with over 20 distinct categories in home & personal care products and
food & beverages. They endow the company with a scale of combined volumes of about 4 million tones
and sales of over Rs. 13,000 crores. HUL is also one of the country's largest exporters; it has been
recognized as a Golden Super Star Trading House by the Government of India. The Anglo-
Dutch company Uni lever owns a majority stake (52%) in Hindustan Unilever Limited.
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. It is headquartered in Mumbai, India and has an employee strength of over 15,000
employees and contributes for indirect employment of over 52,000 people. The company was renamed in
June 2007 to ³Hindustan Unilever Limited´.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by
Business world, one of India’s leading business magazines. The rating was based on a compilation of the
magazine’s annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market
leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea,
detergents and shampoos amongst others with over 700 million Indian consumers using its products. It
has over 35 brands. Sixteen of HUL’s brands featured in the AC Nielsen Brand Equity list of 100 Most
Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands
in the Most Trusted Brands List. It’s a company that has consistently had the largest number of brands in
the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its
products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India. It
has 39 factories in the country. Two out of three Indians use the company’s products and HUL products
have the largest consumer reach being available in over 80 per cent of consumer homes across India.
HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed
companies in 2007.
Hindustan Unilever Limited (HUL) has had a heritage of over 80 years in India. On any given day, nine
out of ten Indian households use our products to feel good, look good and get more out of life – giving us
a unique opportunity to build a brighter future.

HUL works to create a better future every day and helps people feel good, look good and get more out of
life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care,
toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the
Company is a part of the everyday life of millions of consumers across India. Its portfolio includes
leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s,
Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr,
Kissan, Kwality Wall’s and Pureit.

The Company has about 18,000 employees and has a net sales of INR 33895 crores (financial year 2016-
17). 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 and an annual sales turnover of €52.7
billion in 2016. Unilever has over 67% shareholding in HUL

CORPORATE GOVERNANCE
Hindustan Unilever Limited believes that for a Company to be successful, it must maintain global
standards of Corporate Conduct towards all its stakeholders. The Company's foundation has therefore
been rooted to stringent Corporate Governance principles. At Hindustan Unilever, we believe that the
principles of fairness, transparency and accountability are the cornerstones for good governance. The
HUL Code of Business Principles reflects the Company's commitment to these principles. It is the
Company's endeavour to continue to achieve highest governance levels.
As regards the compliance with the requirements of Clause 49 of the Listing Agreement with the Stock
Exchanges, the Company is in full compliance with the norms and disclosures. I believe that for a
Company to be successful it must maintain global standards of Corporate Conduct towards all its
stakeholders and The Hindustan lever Company's foundation has therefore been rooted to stringent
Corporate Governance principles. At Hindustan Unilever, we believe that the principles of fairness,
transparency and accountability are the cornerstones for good governance. The HUL Code of Business
Principles reflects the Company's commitment to these principles. It is the Company's endeavour to
continue to achieve highest governance levels.
As regards the compliance with the requirements of Clause 49 of the Listing Agreement with the Stock
Exchanges, the Company is in full compliance with the norms and disclosures.

Brands around the world

.

Our vision
Unilever is a unique company, with a proud history and a bright future. We have ambitious plans
for sustainable growth and an intense sense of social purpose.

A clear direction for us

Our purpose is to make sustainable living commonplace. We work to create a better future every
day, with brands and services that help people feel good, look good, and get more out of life.

In 2009, we launched The Compass – our strategy for sustainable growth. It sets out our clear
and compelling vision to double the size of the business, while reducing our environmental
footprint and increasing our positive social impact and gives life to our determination to build a
sustainable business for the long term. This is captured in the Unilever Sustainable Living Plan.

By combining our multinational expertise with our deep roots in diverse local cultures, we’re
continuing to provide a range of products to suit a wealth of consumers. We’re also
strengthening our strong relationships in the emerging markets we believe will be significant for
our future growth.
 And by leveraging our global reach and inspiring people to take small, everyday actions, we
believe we can help make a big difference to the world.

"We cannot close our eyes to the challenges that the world faces. Business must make an explicit
and positive contribution to addressing them. I’m convinced we can create a more equitable and
sustainable world for all of us by doing so,” says Unilever CEO Paul Polman.

“But this means that business has to change. The Unilever Sustainable Plan is a blueprint for
sustainable growth. And in 2014 we are strengthening our Plan with new commitments to drive
further transformational change.”

Our Priorities and Ideologies

Unilever is committed to supporting sustainability and providing our consumers around

the world with the products they need to look good, feel good and get more out of life.

Five key priorities provide the foundation for our brand’s campaigns. Read some
examples of how different brands are upholding these principles.

A better future for children

 Our oral care brands Signal and Close-Up encourage children to brush their teeth day and night
for optimal dental health. We also partner the FDI World Dental Federation, supporting oral
health programmes around the world
 Brands such as Omo and Persil have helped parents believe the unconventional philosophy that
Dirt is Good. Children learn through play, and mud spatters and grass stains can easily be
removed with effective laundry products
 Unilever also partners the World Food Programme and launched the Together for Child Vitality
initiative to bring our expertise in nutrition to children in some of the world’s poorest countries.

A healthier future
 Our Flora/Becel margarine brands have been scientifically proven to help reduce cholesterol
levels
 Vaseline has launched the Vaseline Skin Care Foundation, providing research into skin
conditions and support for people affected by them
 Lifebuoy soap has long had a presence in developing markets around the world, and its campaign
to promote handwashing with soap was celebrated by 200 million people across 53 countries in
2013.

A more confident future

 Dove’s Campaign for Real Beauty uses real women instead of models in its advertising
campaigns. The brand has also launched the Dove Self Esteem Fund which educates and inspires
millions of young women
 Our Sunsilk hair care brand has partnered some of the world’s leading hair specialists to co-
create formulas tailored to treat conditions such as hair-fall, frizz, limp locks and uncontrollable
curls
 Close-Up toothpaste provides an affordable oral care solution for consumers in developing
markets, allowing them to take care of their dental health and closer with confidence.

A better future for the planet

 We’re aiming to grow our business while reducing our environmental footprint and working
across the supply chain for every brand to do so
 Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the Cleaner Planet
Plan together, encouraging consumers to change their laundry habits to reduce water and energy
consumption
 Our Lipton tea brand backs sustainable forest management projects in Africa

A better future for farming and farmers

 Many of our brands contain ethically and sustainably sourced ingredients that are independently
certified
 Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben & Jerry’s
ice cream, which includes Fairtrade vanilla and almonds in various flavours
 Around half our raw materials come from agriculture and forestry, so we’re working towards
making our key crops 100% sustainable.

Principles Of HUL

PRINCIPLE 1: ETHICS, TRANSPARENCY AND

ACCOUNTABILITY

BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS,

TRANSPARENCY AND ACCOUNTABILITY

CODE OF BUSINESS PRINCIPLES

The Code of Business Principles comprises of thirteen principles covering business integrity and
responsibilities relating to employees, consumers and the environment. All employees, suppliers,
distributors and other third parties who work with your Company are expected to observe the
CoBP.
Compliance with these principles is an essential element in your Company’s business success.
The Chief Executive Officer (CEO) through the Management Committee and Business / Unit
Heads is responsible for ensuring that the Code is understood and implemented throughout the
Company. Your Company periodically cascades the principles embodied under CoBP across the
organisation.
Complaints, issues and concerns received under the CoBP framework are duly dealt with and
reviewed by the CoBP Committee(s). During 2015-16, a total of 119 grievances and issues from
employees and business partners were reported under the CoBP framework and the same were
investigated and dealt with in accordance with the CoBP protocols of the Company.
Your Company also has a Whistle Blower Policy which allows employees to bring to the
attention of the Management, promptly and directly, any unethical behaviour, suspected fraud or
irregularity in the Company practices which is not in line with the CoBP. Your Company has
provided dedicated e-mail addresses - whistleblowing.hul@unilever.com and
cobp.hul@unilever.com for reporting such grievances. Alternatively, employeescan also send
written communication to the Company. Employees are encouraged to raise any concerns by
way of whistle blowing without any fear or threat of being victimised.
The Company Secretary is the designated officer for effective implementation of the Policy and
dealing with the complaints registered under the Policy. All cases registered under the CoBP and
the Whistle Blower Policy of the Company are reported to the members of the Management
Committee and are subject to review by the Audit Committee.

PRINCIPLE 2: PRODUCTS LIFECYCLE SUSTAINABILITY

BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND
CONTRIBUTE TO SUSTAINABILITY THROUGHOUT THEIR LIFECYCLE

It is important for your Company to manage the impacts of its product lifecycle for the success
of USLP. The lifecycle of a product covers the entire value chain from sourcing of raw materials,
to product manufacture, distribution, consumer use and disposal.
LIFECYCLE ASSESSMENT
Lifecycle assessment (LCA) is one of the many techniques your Company uses to understand the
impacts of its products on the environment. Your Company uses LCA in three ways:
1. New product design
When designing new products your Company routinely uses LCA to compare new and existing
products and to measure the differences in their respective environmental profiles.
2. Existing product assessment
Your Company conducts LCA on the existing products and ingredients to help identify
improvement opportunities, to improve data quality and relevance to the Company’s studies and
also to support external communications.
3. Science and methodological development
Your Company works on an ongoing basis with partners to develop scientific approaches for
LCA. It actively engages in, and promotes the development of new science to improve both the
robustness and scope of lifecycle-based approaches and assessment.

Useful information from LCAs is then embedded into the brand communication and used to
inform consumers of the social and environmental benefits of the products. In many ways, LCA
is the first step to create socially relevant brands.

SOCIALLY RELEVANT BRANDS

Your Company’s brands are crafted with a purpose to make a positive difference to the society.
These brands not just create consumer value but are the brands that consumers really value.

Brands such as Lifebuoy, Pureit and Domex have helped to improve health by promoting better
health and hygiene habits. Lifebuoy runs one of the largest handwashing programmes in India
and has scaled up its programmes year on year with around 65 million people benefiting from it
since 2010. Pureit, your Company’s innovative water purifier, helps prevent disease, ultimately
helping to save lives. It has made purifiers more affordable to low-income consumers.
Your Company’s recent ‘Swachh Aadat, Swachh Bharat’ programme is another example of how
brands can play a role in the societal progress. The programme is in line with Government of
India’s Swachh Bharat Abhiyan (Clean India Mission) to promote good health and hygiene
practices. Given the scale of challenges that India faces in the areas of WASH (water, sanitation
and hygiene), this programme is an effort to help India realise the goals of Clean India Mission
by 2019. It is a first-of-its-kind programme synergising the efforts of your Company’s leading
brands Lifebuoy, Domex and Pureit in the area of WASH. This programme promotes good
health and hygiene practice by stressing the need to adopt three simple good habits (‘Swachh
Aadat’) – washing hands five times a day, using a toilet for defecation and adopting safe
drinking water practices.

PRINCIPLE 3: EMPLOYEES’ WELL-BEING

BUSINESSES SHOULD PROMOTE THE WELL-BEING OF ALL EMPLOYEES

Your Company encourages employees to live healthy and work safely, both at work and outside
it. The aim is to create a working environment supportive of employees’ personal lives, while
meeting your Company’s business needs. Healthier employees are more motivated and more
productive.
OCCUPATIONAL HEALTH, SAFETY AND WELL-BEING
Your Company aims to prevent work-related illness and occupational diseases as well as ensure
good ergonomics at the workplace.The CEO heads the Central Safety, Health & Environment
Committee, which reviews the health & safety performance of the Company. Safety performance
is monitored through a set of key performance indicators and reviewed regularly by the
Company’s management committee.
By end of 2015, your Company achieved over 70% reduction in Total Recordable Frequency
Rate (TRFR) compared to 2008 baseline for accidents in the factories and offices.
This has been achieved through rigorous deployment of Unilever’s global BeSafE initiatives,
implementation of advanced equipment safety standards and adoption of DuPont Behavioural
Safety methodology across the operations.
OPPORTUNITIES FOR WOMEN
Your Company owns the first ever all-women run factory in the FMCG industry. The 100%
women employee factory at Haridwar is a testimony to your Company’s ‘diversity’ initiatives
which seek to promote gender-balance and accelerate the advancement of high-potential women
talent in the Company. The final onboarding of the all female team in this factory was done in
December 2014. Prior to that, comprehensive training was completed for the team to ensure
smooth transition. The training included technical classroom sessions by an external ITI
(Industrial Training Institute) professor and four weeks of on-the-job training to ensure business
continuity. The ‘all women team’ delivered success in the first quarter of taking over operations.
In addition, your Company has a well-defined agile working policy which includes work from
home, flexi-timing and hot desking. The thrust is to build an agile and inclusive organization that
celebrates differences and leverages the diversity.
FAIR LABOUR PRACTICES
Your Company has an excellent record on industrial relations and since 2015 has maintained a
record of zero loss of man days due to industrial unrest. Your Company currently has around
3,800 employees who are employed on contractual / temporary basis.
FREEDOM OF ASSOCIATION, PARTICIPATION AND COLLECTIVE BARGAINING
The rights of workers to freedom of association and collective bargaining are recognised and
respected. Workers are not intimidated or harassed in the exercise of their right to join or refrain
from joining any organisation.
There are 105 employee associations in the Company. Nearly 11,000 permanent employees are
members of these associations. During the last year, your Company entered into long term
settlements with around 850 employees covering eight factories / branches across India.
There are over 122 permanent female blue-collar employees and over 21 permanent blue-collar
employees with disabilities in your Company’s factories.

PRINCIPLE 4: STAKEHOLDER ENGAGEMENT

BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE
TOWARDS ALL STAKEHOLDERS, ESPECIALLY THOSE WHO ARE
DISADVANTAGED, VULNERABLE AND MARGINALISED.
Stakeholder engagement helps your Company in decision making, in delivering USLP
commitments, in strengthening relationships and succeeding in the business.
Your Company actively engages with governments, inter-governmental organisations,
regulators, customers, suppliers, investors, civil society organizations and the consumers to
create an environment that is supportive of solutions.
CONSUMERS
As the country’s leading consumer goods company, your Company constantly seeks to
understand what motivates the consumers, how to inform them and how to engage with them.
• Winning In Many India’s:
Your Company undertook the ambitious transformation agenda of ‘Winning In Many India’s’
(WIMI) to leverage the diversity of people, culture, habits, economics and demographics that
exists across India. 2015 has been a year of strengthening the WIMI thinking across markets,
embedding it into your Company’s daily ways of working. This helped the Company to move the
needle on quality of servicing and in-market execution by getting closer to the customers,
shoppers and consumers. This approach has strengthened your Company’s connect with
customers, consumers and shoppers across geographical clusters, and will be a source of
continuing competitive advantage.
• Social Initiatives:
The Sales and Marketing teams continued the journey of executing the mass contact programme.
Through this programme, your Company reached more than 2.5 million rural consumers and
contacted 0.8 million school children, driving the message of health and hygiene through the
Lifebuoy handwashing programme. This has become a key part of the Company’s effort on
supporting the Swachh Bharat Initiative. This programme is now active in over 8,000 villages
across the country.
CUSTOMERS
Your Company has undertaken some important initiatives like establishing call centres, creating
joint business plans etc during the year to become more customer centric and win in the
marketplace. Read details on this in Principle 9 (Customer Value).
SHAREHOLDERS AND INVESTORS
It has been your Company’s constant endeavour to provide best of the services to its valuable
shareholders and maintain highest level of corporate governance in the Company. In order to
improve and constantly meet higher service standards your Company regularly interacts with its
shareholders and investors through results announcements, annual report, media releases,
Company’s website and subject specific communications.
The Annual General Meeting of shareholders is an important annual event where the
shareholders of the Company come in direct communication with the Board of Directors and the
management. The Board engages with shareholders and answers their queries on varied subjects.
Your Company’s Investor Service Department regularly engages with the shareholders to resolve
queries, grievance, if any, and provide guidance for shares / shareholder related matters. Your
Company has a designated e-mail id for shareholders.
Your Company has continued to maintain high standards on Investor Relations and has been
recognized on various counts. In 2015, the HUL Investor Relations Team was recognised by the
sell side analysts to be amongst the Top 3 in the ‘Best IR Team’ and ‘Best Analyst Day’
Rankings across Asia in the Consumer Sector, as published by ‘Institutional Investor, New
York’. Your Company has been recognised for its IR practices at various other forums over the
years.
GOVERNMENT
All interactions with the Government, legislators and regulators are done by duly authorised and
appropriately trained individuals with honesty, integrity, openness and in compliance with local
laws and in accordance with the CoBP and Policy.
The Investor Relations team also interacts regularly with investors and analysts, through
quarterly results calls, one-on-one and group meetings, participation at investor conferences and
the annual investors meet.
NGOs
Your Company engages with a number of NGOs through Hindustan Unilever Foundation
(HUF). The water conservation programme undertaken through collective action and in
partnership with several NGOs, communities, other co-funders and partners across India has
created cumulative and collective potential of 200 billion litres.
MEDIA
Your Company engages with media to keep its stakeholders updated about the developments in
the Company. Regular interactions with the electronic, print, television and online media take
place through press releases, media events and during the financial results announcements.
EMPLOYEE ENGAGEMENT
Your Company has several communication processes instituted to ensure a two-way
communication channel with the employees. These include:
• CEO Report back: Quarterly performance update from the CEO to all employees.
• Annual Review: All managers are invited to the Annual Review which is conducted in four
major metros.
• Others: The Company has other in-house communication channels, which help employees to
connect, bond, inspire, express and celebrate their achievements.
PRINCIPLE 5: ENVIRONMENT
BUSINESS SHOULD RESPECT, PROTECT AND MAKE EFFORTS TO RESTORE
THE ENVIRONMENT
By 2020 your Company’s goal is to halve the environmental footprint of the making and use of
its products while growing its business.
It makes business sense to reduce the business risk by securing sustainable sources of supply for
raw materials, to cut costs through reducing packaging materials and higher manufacturing
efficiencies, and to appeal to more consumers with sustainable brands.
• in manufacturing, per tonne of production in India - against the baseline of 2008, your
Company achieved 42% reduction in CO2 emissions, 48% reduction in water usage and 92%
reduction in disposed waste generation.
• Your Company created 200 billion litres of water conservation potential through Hindustan
Unilever Foundation (HUF) partnerships.
• 398 tea estates were certified as sustainable estates by Rainforest Alliance and trustea in India.
• 100% tomatoes used in Kissan Ketchup were sourced from sustainable sources.
MONITORING PROGRESS
The progress on sustainability is monitored at different levels as mentioned below:
• Sustainability Governing Council: The top leadership from respective business verticals and
functions constitute the Governing Council. The Company has a governance mechanism and
score card to monitor the progress on USLP commitments. The Council reports the progress to
the Management Committee and CEO on a quarterly basis
• Environment Sub-Committee: This is led by the Executive Director, Supply Chain, and has
members from various departments like Safety and Environment, Finance, Engineering, R&D
and Legal. The team engages every two months to review environment performance and define
the implementation strategy.
RISK ASSESSMENT
All the emissions / waste generated by your Company are generally within the permissible limits
given by respective state PCB (Pollution Control Board).
The Pond’s HLL ex-Mercury Employees Welfare Association, representing the ex-employees of
the former thermometer factory at Kodaikanal, had filed a petition in the Hon’ble Madras High
Court in February 2006 seeking economic rehabilitation. This petition was filed more than four
years after your Company had made a full and final settlement with the ex-employees in
November 2001. The severance package offered to the ex-employees at the relevant time was
significantly higher than the statutory requirement. The ex-employees were also offered
alternative jobs in another unit of the Company, however, they opted out of service. Several
expert studies have been conducted since the factory’s closure and all have concluded that our
ex-employees were not harmed by working in the former thermometer factory at Kodaikanal.
Following the settlement with former workers in Kodaikanal, your Company continues to
actively engage with the Tamil Nadu Pollution Control Board (TNPCB) on the issue relating to
soil remediation and is committed to address the clean-up of the former thermometer factory site.

PRINCIPLE 6: CUSTOMER VALUE

BUSINESS SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR
CUSTOMERS AND CONSUMERS IN A RESPONSIBLE MANNER
Your Company’s business partners and suppliers are extremely important for the Company’s
operations. They ensure that the Company units are able to manufacture, market and
continuously improve the products it sells every day.
Your Company’s strong distribution network comprises millions of outlets serviced by over
2,500 stockists and associates who helped deliver Company’s products.
Your Company has undertaken some important initiatives to become more customer centric and
win in the marketplace. These initiatives include:
• Call centres:
Establishing dedicated call centres for distributors as well as retailers to reach out to the
Company. The call centres set up for retailers have helped many of your Company’s traditional
trade customers reach out directly to the Company. Your Company receives more than 3,000
calls every month from distributors and retailers. The calls received from retail outlets provide
useful insights and help the Company understand issues and opportunities in the marketplace
better and address them effectively.
• Partner of choice:
Your Company saw strong growth across all key modern trade retail partners, driven by strong
joint business plans. The e-commerce opportunity is evident, and growing exponentially in India.
Your Company has made significant investment in capability building in e-commerce, and is
committed to being the best FMCG player in e-commerce. A strong, high quality team with
diverse talent has been put in place and they are working closely with all key e-commerce
partners to create competitive advantage for the business.
RESPONSIBLE MARKETING AND COMMUNICATION
Your Company constantly tries to provide value to its customers and engage with its consumers
in a responsible way. One way it ensures responsible communication to its consumers is by
clearly defining marketing and communication guidelines to all forms of advertising.
Your Company is aware that its marketing and advertising can influence consumer choices. So it
is important to advertise and market the products responsibly. There are clearly defined
marketing and communication principles which provide guidance to the brand managers. Your
Company’s commitment applies to all forms of advertising and marketing, including but not
limited to TV, radio, print advertising, internet (third-party and company-owned websites), social
media, apps, online games, direct marketing, product packaging, labeling, point of sale materials
and all other forms of communication. Your Company ensures that all the claims made in
advertising are backed by sound scientific substantiation and that all such communication passes
the test of being ‘legal, decent and honest’.
Your Company has four clearly defined principles that guide its communications with
consumers:
• Your Company is committed to building trust through responsible practices and through
transparent communication – both directly to consumers and indirectly through other key
stakeholders and thought-leaders.
• It is your Company’s responsibility to ensure that its products are safe and that the Company
provides clear information on their use and any risks that are associated with their use.
• Your Company fully supports a consumer’s right to know what is in the products and is
transparent in terms of ingredients, nutrition values and the health and beauty properties of its
products.
• Your Company uses a combination of channels, which includes product labels, websites, care-
line phone numbers and/or consumer leaflets to communicate openly with its consumers.
LABELS AND PACK INFORMATION
All Company products comply with the applicable regulations such as the Drugs and Cosmetics
Act, Legal Metrology Act, Bureau of Indian Standards Specifications, Trademark Act and
Copyright Act, Food Safety and Standards Act, Tea Act, Tea Board Regulations, for Labels and
Pack Information. The food and beverage products also carry a nutritional information table on
the back of pack in compliance with local legislation. Your Company has initiated Guideline
Daily Amount (GDA) labelling on its packs in 2014, where applicable and legally allowed in
accordance with industry agreements.
In addition to national laws and self-regulatory codes in India, your Company also applies
Unilever’s principles to the marketing and advertising for all the food and beverage products
directed at children. These principles require that marketing practices:
• do not convey misleading messages
• do not undermine parental influence. Advertisements always show parents as gatekeepers to the
product being consumed
• do not encourage pester power
• do not suggest time or price pressure
• do not encourage unhealthy dietary habits
• do not blur the boundary between promotion and content.
Your Company does not advertise food and beverage products to children under 12 years and
does not make communication related to food and beverage products in primary schools, except
for products which fulfill specific nutrition criteria that are based on accepted scientific evidence
and/or applicable under national and international dietary guidelines.

Corporate Social Responsibility Policy

HUL is committed to operate and grow its business in a socially responsible way. Our vision is
to grow our business whilst reducing the environmental impact of our operations and increasing
our positive social impact.

This policy outlines our Corporate Social Responsibility agenda. Our aim is to achieve
responsible growth and we will inspire to bring this to life by encouraging people to take small
everyday actions that will add up to make a big difference.

We have embraced Unilever Sustainable Living Plan (USLP) which contributes to activities
listed in the Schedule VII of Section 135 of the Companies Act, 2013. The USLP has three
global goals namely help more than a billion people take action to improve their health and
wellbeing, reduce the environmental footprint of our products and enhance the livelihoods of
people as we grow our business.

Additionally, considering India as a water scarce region and the water availability is expected to
go down further, HUL has identified water as a key area of intervention. We will focus in this
area by creating capacities in conserving water through significant investments in partnership
with relevant stakeholders with the objective of water conservation.

Corporate Social Responsibility (CSR) Principles:

HUL’s CSR Policy is supported by the following principles:

We are committed to conducting our operations with integrity and respect, in the interest of our
stakeholders, and in line with our Code of Business Principles.

We believe growth and environmental sustainability need not be conflicting. Our business model
is designed to deliver sustainable growth. The inputs to the model are our brands, our people and
our operations. The outputs to the model are sustained growth, lower environmental impact and
positive social impact. The differentiator in our business model is our USLP and the goal of
sustainable living.

We collaborate and engage with different stakeholders including Governments, NGOs, IGOs,
Suppliers, Farmers, and Distributors to tackle the challenges faced by the society.
In accordance with Section 135(5) of the Companies Act, 2013 (the Act), HUL is committed to
spend at least 2% of its average net profits made during the three immediately preceding
financial years in some of the identified activities that are listed in Schedule VII (as amended) to
the Act. This will include the spends through activities undertaken by Hindustan Unilever
Foundation (HUF), our not for profit subsidiary Company, aimed at building capacities to
conserve water and to further community development initiatives.

Governance mechanism:

We follow structured governance procedures to monitor CSR activities. Our CSR Policy is
governed by the Board of Directors of the Company. The Board has constituted a CSR
Committee comprising of an Independent Chair and a majority of Independent Directors to
monitor the Policy and the programmes from time to time.

The activities described in Annexure A appended hereto are covered under Schedule VII (as
amended) of the Act that lists down permitted activities that constitute such activities. These
activities undertaken by the Company are not expected to lead to any additional surplus beyond
what would accrue to the Company in the course of normal operations.

The Policy issued pursuant to the Corporate Social Responsibility Policy Rules, 2013 has been
recommended by the CSR Committee of the Board and adopted by the Board of Directors.

CSR activities of HUL

Industry Sector: FMCG and Consumer Durables.

Products/Services: Food brands; Homecare Brands; Personal Brands; and Water Purifier Brand

CSR Activities: Trust/Foundation of CSR – Hindustan Uniliver Vitality Foundation

CSR Areas:

1. Community Welfare;

2. Disaster Relief;

3.Education;

4. Employee Welfare;

5. Environment;
6. Healthcare;

7. Poverty Eradication;

8. Rural Development,

9. Vocational Training.

Some of the major CSR activities of HUL are as follows

1. Greening Barrens (Water Conservation & Harvesting):

It has 2 main objectives:

a) To reduce water consumption in its own operations and generate sub-soil water tables at its
own sites through the principles of 5R – Reduce, Reuse, Recycle, Recover & Renew.

b) Help adjacent villages to implement appropriate models of watershed development.

2. Shakti – Changing Lives in Rural India:

Shakti is HUL’s rural initiative, which targets small villages with population of less than 2000. It
seeks to empower under privileged rural women by providing income-generating opportunities,
health & hygiene education through Shakti Vani program and creating access to relevant
information through the Shakti Community Portal.

3. Health & Hygiene Education:

Lifebuoy Swastya Chetna is a rural health and hygiene initiative, started in 2002, was initiated in
media dark villages in UP, MP. Bihar, WB, Maharashtra aand Orissa for spreading awareness
about washing hands with Lifebuoy soap.

4. Economic Empowerment of Women:

The Fair & Lovely Foundation is HUL’s initiative which aims at economic empowerment of
women across India. It aims to achieve this through providing information, resources, inputs and
support in the areas of education, career and enterprise.
5. Special Education & Rehabilitation:

Under the Happy Home initiative, HUL supports special education and rehabilitation of children
with challenges.

a) Asha Daan: Initiated in 1976, HUL supported Mother Teresa and Missionaries in Charity to
set up a home in Mumbai for abandoned, challenged children and the destitute.

b) Ankur: In 1993, HUL’s Doom Dooma Plantation Division set up Ankur for special education
of challenged children aged between 5 and 15 years. Ankur provides educational. Vocational and
recreational activities to over 35 children with range of challenges like hearing or sight
impairment, polio, cerebral palsy and several learning difficulties.

c) Kappagam: Encouraged by Ankur’s success Kappagam (Shelter), the second center for
special education of challenged children, was set up in 1998 on HUL Plantations in South India.
It has 17 children.. The focus is same as that of Ankur.

d) Anbagam: This is another day care center (Center of Love), which was started in 2003 in
south India plantations. It takes care of 11 children. Besides medical care and meals, they too are
being taught skills such that they can become self-reliant and pursue elementary studies.

1. GREENING BARRENS - Water Conservation and Harvesting

HLL's Water Conservation and Harvesting project has two major objectives:
a) to reduce water consumption in its own operations and regenerate sub-soil water tables at its
own sites through the principles of 5R -- reduce, reuse, recycle, recover and renew;
b) help adjacent villages to implement appropriate models of watershed development.
Water scarcity is one of the biggest crises facing India in terms of spread and severity. Water
conservation and harvesting in HLL's own operations will help conserve and regenerate this
scarce resource. An attendant benefit will be reduction in the consumption of energy that would
have been spent in converting and using that water. The support to communities in developing
watersheds will help in the economic development of areas adjacent to HLL sites.
Water management is a focus area for all HLL factories. Water conservation has been made one
of the key performance indicators of an HLL factory. Through a series of technology innovations
and novel processing routes HLL has reduced its ground water consumption by over 50%. HLL
has also applied technologies that recycle effluent water after treatment – 70% of HLL sites are
now zero discharge sites. There are many other measures -- Reverse Osmosis Plants and Solar
Evaporation Ponds to name a few. A simultaneous benefit is saving in energy that otherwise
would have been consumed in drawing, pumping or converting water into steam -- HLL's energy
consumption per unit of production has come down by 61% since 1996. Since 2003, all HLL
sites have begun to harvest rain water. Rain water falling on factory premises is accumulated in
ponds, thereby renewing sub-soil water tables.
HLL is also committed to extending its efforts on water management to the larger community,
and has engaged in community projects in water adjacent to manufacturing sites.
The Khamgaon soap factory is located in a dry and arid region of Maharashtra and gets limited
rainfall. Seven years back the factory started a pilot on ‘Watershed Management’ on a 5-hectare
plot to prevent soil degradation and conserve water. The efforts have resulted in the creation of a
green belt, which is the only visible green patch in the area. The 5-hectare green belt is now a
veritable forest of about 6300 trees, including over 1400 ornamental plants and over 600
fruitbearing plants.
There has also been a remarkable improvement in the quality of soil, and significant
conservation of water. This has been documented in a booklet, 'Greening Barrens', so that
industry, government bodies and communities adopt this widely. Encouraged by the results, HLL
has extended the model to a neighbouring village, Parkhed, in association with the TERI and the
Bharatiya Agro Industries Foundation. The community at Parkhed has already constructed 37
check dams. More than 20,000 saplings have been planted during the 2003 monsoon. For the
first time, villagers were able to collect water and utilise it for irrigation post monsoon. The
initiative received appreciation at the Johannesburg World Summit on Sustainable Development.
In association with an NGO, Vanrai, HLL's Silvassa manufacturing hub (in the Union Territory
of Dadra & Nagar Haveli) too has embarked on a long-term project of water harvesting, which
aims to dramatically change water availability, taking it up to year-round availability from 4
months at present. At Karchond village, near the Silvassa site, the community has built 18 bunds.
Seven of them are on a river running through the village, and 11 smaller ones at different water
run-off points. This has enabled the community to sow a second crop, thereby significantly
increasing their incomes. Through an Integrated Village Development Programme, the project's
ambit also includes alternate income-generating activities through SHGs, forestry management,
education of children, nutrition.
The programme of watershed management is being progressively extended to other factories.
The Hosur Coffee Factory has set an example in low-cost water harvesting methods. Another
example is the Yavatmal Personal Products Factory, which has worked with the Social Forestry
Department of the Maharashtra Government to improve sub-soil water table in the area.
HLL's vision is to continuously innovate technologies to further reduce water consumption and
further increase conservation in its operations. Simultaneously, HLL sites will progressively help
communities, wherever required, to develop watersheds.

2. Project Shakti business model

INTRODUCTION:
With the urban market saturated, FMCG companies are now targeting the rural markets. In spite
of the income imbalance between urban and rural India, rural holds great potential since 70% of
India's population lives there. Due to the recent government measures like waiver of loans, national
rural employment guarantee scheme and increasing minimum support price, disposable income in
rural India has been rapidly increasing. However, rural markets present their own sets of problems.
These include poor infrastructure, dispersed settlements, lack of education and a virtually
nonexistent medium for communication. Furthermore, retailers cannot be present in all the centres
as many of them are so small that it makes them economically unfeasible. Hindustan Unilever
Limited (HUL) to tap this market conceived of Project Shakti. This project was started in 2001
with the aim of increasing the company's rural distribution reach as well as providing rural women
with income-generating opportunities. This is a case where the social goals are helping achieve
business goals.
The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of HUL
identifying the uncovered village. The representative of the company meets the panchayat and the
village head and identify the woman who they believe will be suitable as a SA. After training she
is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products
are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes
a 10% margin on the products she sells.

An initiative which helps support Project Shakti is the Shakti Vani programme. Under this
programme, trained communicators visit schools and village congregations to drive messages on
sanitation, good hygiene practices and women empowerment. This serves as a rural
communication vehicle and helps the SA in their sales.

The main advantage of the Shakti programme for HUL is having more feet on the ground. Shakti
Ammas are able to reach far flung areas, which were economically unviable for the company to
tap on its own, besides being a brand ambassador for the company. Moreover, the company has
ready consumers in the SAs who become users of the products besides selling them.

Although the company has been successful in the initiative and has been scaling up, it faces
problems from time to time for which it comes up with innovative solutions. For example, a
problem faced by HUL was that the SAs were more inclined to stay at home and sell rather than
going from door to door since there is a stigma attached to direct selling. Moreover, men were not
liable to go to a woman's house and buy products. The company countered this problem by hosting
Shakti Days. Here an artificial market place was created with music and promotion and the ladies
were able to sell their products in a few hours without encountering any stigma or bias.

This model has been the growth driver for HUL and presently about half of HUL's FMCG sales
come from rural markets. The Shakti network at the end of 2008 was 45,000 Ammas covering
100,000+ villages across 15 states reaching 3 m homes. The long term aim of the company is to
have 100,000 Ammas covering 500,000 villages and reaching 600 m people. We feel that with this
initiative, HUL has been successful in maintaining its distribution reach advantage over its
competitors. This programme will help provide HUL with a growing customer base which will
benefit the company for years to come.

Summary
Launched in 2001, Project Shakti, aims to empower underprivileged rural women by training them
in health and hygiene and allowing them to undertake income-generation activities.

Key program components

The women, known as Vanis (communicators), sell soap, shampoo and other personal care
products through social forums such as schools and village gatherings. There are currently over
45,000 Shakti entrepreneurs in more than 135,000 villages across 15 Indian states. Unilever
provides training in sales practices, commercial knowledge and bookkeeping to help them become
micro-entrepreneurs.
Project Shakti also consists of public awareness programs focusing on health and hygiene, as well
as an i-Shakti initiative that allows villagers to access information through kiosks. By the end of
2007, more than 45,000 Shakti entrepreneurs covered 3 million homes in 100,000 villages in 15
Indian states. Unilever aims to increase the number of Shakti entrepreneurs that they recruit, train
and employ from 45,000 in 2010 to 75,000 in 2015.
Hindustan Lever has built alliances with telecom & banking companies to increase the income of
the Shakti family with the sale of telecom prepaid currency, sim activations and acting as a banking
correspondent.
Shakti is now being adapted in other Unilever markets such as Sri Lanka, Viet Nam and
Bangladesh, and is also being considered for Latin American and African markets. At the end of
2007, Sri Lanka had over 3,500 entrepreneurs covering 275,000 households in 4,000 villages, and
4,250 entrepreneurs in Bangladesh were covering 400,000 households in 8,000 villages.

CASE STUDY
Forty-two-year-old Sudharkar Sahoo is a farmer in Sarapari village in Orissa’s Khurda district.
Till a few months back, he used to till land for a part of the day and had nothing to do for the
rest. Financially, Sudharkar’s family of four was not overstretched considering that his wife,
Suprabha too earned an income. Being a ‘shakti amma’, Suprabha was an entrepreneur
distributing consumer products for multinational giant Hindustan Unilever (HUL). Now,
Sudharkar’s family income is about to more than double as he has been picked up for a specific
task by the maker of Lux soap and Wheel detergent. The company is utilizing the skills of the
likes of Sudharkar to distribute its products in remote villages which have a demand for such
products, but don’t have a distribution network.

Sudharkar must be happy that the hike in income will take his family closer to the comfort zone.
What he may not be aware of is the importance of the role he is about to play in a mission that is
going to triple HUL’s rural reach in a year’s time. He is among the first lot of ‘shaktimaans’ who
have been roped in by HUL to fulfill its ambition of reaching villages with population of less
than 2,000 and are beyond the reach of the company’s redistribution stockists (RS). Every day,
Sudharkar sets out on a bicycle which has been provided by HUL for him to commute to villages
to distribute products and sachets of popular brands like Wheel, Lifebuoy, Pond’s, Brooke Bond,
among others, to aspiring consumers. Earlier, these consumers had to satisfy their needs by
purchasing products from nearby villages where the company has direct distribution. Now, their
needs will be met in their own villages by the visiting Shaktimaans.

EMERGING PERSPECTIVES:

The above case study reveals significant emerging perspectives for a renewed CSR as follow:

 The company can reach out rural poor with the help of the project.

 It can try to market any product in rural areas since the trust of the consumers have already
developed.

 Maximization of sale and profitability can be targeted very easily.

 Since rural consumers are also adapting to changes, introduction of a new product becomes
very easy.

 The customer base can be improved without much effort.

 Social capital can be created while serving the bottom of pyramid.

 The reputation of the company also gets elevated

3. LIFEBUOY SWASTYA CHETNA

The Lifebuoy Swasthya Chetna programme was initiated in 2002 as a rural health and hygiene
initiative in India. In India, over 600,000 children under the age of five die annually from
diarrhoea.
Studies have shown that almost half these deaths could have been prevented by simply
washinghands with soap.
In partnership with local government bodies, the Lifebuoy Swasthya Chetna programme is
designed to spread awareness about the importance of washing hands with soap.
It also promotes general hygiene in rural areas that are difficult to reach through usual marketing
campaigns such as television, press or in-store advertising and promotions. Communication
Swasthya Chetna, which means 'Health Awakening', is a multi-phased activity that works
towards effecting hand washing behavior change in rural communities. The main message of the
campaign is "Visibly clean is not really clean".

The campaign has three communication tasks:

 To establish the presence of germs, even on clean hands, through the use of a 'glow germ
demo kit' that has been developed by Unilever for use in Lifebuoy Swasthya Chetna. The
simple and powerful tool makes unseen germs visible.

 To establish the consequences of these hidden germs, which when ingested, can cause
stomach infections and diarrhoea, or be transferred to eyes causing painful eye infections,
or infecting wounds.

 To establish how current practice is not enough to fight these germs by using the glow
germ demo kit to demonstrate that washing with water is not enough, and that it is
necessary to wash hands with soap for germ protection.
Tools used to communicate the central Swasthya Chetna message are adapted according to the
specific audience. Engagement Lifebuoy teams visit each village several times, engaging all
segments of the community and ensuring the formation of local 'self-help communities' that can
sustain the message. School children, being initiators of change, make excellent ambassadors
of communication, provided they find it fun and engaging. The element of Lifebuoy Swasthya
Chetna that involves children focuses on fun, using stories, games, songs and quizzes. Efforts are
made to ensure that the learning does not fade over time. Additionally, these visits also include a
meeting with the Panchayat (village elders).

Covering 130 million people in 30,000 villages since 2002, the Lifebuoy Swasthya Chetna
programme has made its mark as the single largest private hygiene education project in the
world. The Swasthya Chetna programme will be re-launched in 2009, and will cover even more
villages in India as part of the Lifebuoy brand's crusade.

Key project activities:

Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting handwashing
behavior change among the rural communities it touches.

The central message of the campaign is:

Visibly clean is not really clean.

The communication tasks were to:

Establish the presence of germs even on clean-looking hands, using a simple but extremely
powerful, low-cost demonstration tool called the “glow germ demo kit.” Developed by Unilever
for use in Swasthya Chetna, it brings to the target audience the idea that hands are only truly
clean if washed with soap.Establish the consequences of these hidden germs on hands.
Background
The Lifebuoy Swasthya Chetna (“Health Awakening”) program began in 2002 as a rural health
and hygiene education initiative in India. The project was designed to spread awareness about
the importance of washing hands with soap and to promote general hygiene in rural villages. The
program has reached more than 100 million people, and its teams have reached at least 44,000
villages in rural India. Swasthya Chetna is one of the world’s largest self-sustained and self-
funded hygiene promotion projects.
Communicating the message to children:
School children are change initiators and, in this context, the program works with them to take
the messages home and into their communities. Children are also excellent communicators if
they find the topic or activity fun and involving. The tools to communicate the central Swasthya
Chetna message are adapted according to the specific audience, and schools have proven
excellent entry points into communities. The element of Swasthya Chetna that involves children
focuses on how to position hygiene as fun and uses stories, games, songs and quizzes.
Key factors to success of the program:
Continuous monitoring and evaluation is at the core of the program – each year, program
activities are evaluated on both awareness of hygiene moments and effective behavior changes.
Improvements can be made to the subsequent year’s program to make it more effective in
achieving its goals.
Cost-effectiveness of the program – the cost per village is approximately £50 for the three
exposures, including implementation and development of the materials.
Commitment of the operating company – Swasthya Chetna is now central to what the brand does
in India, and the operating company (Hindustan Unilever Limited) has invested more than US$5
million.
Unilever Values
Unilever’s mission is to add vitality to life. We meet every day needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life. As a
multi-local multinational, Unilever aims to play its part in addressing global environmental and
social concerns through its own actions, and working in partnership with stakeholders at local,
national and international levels.
On April 7, 2006, on the occasion of World Health Day, the Department of Posts released a
special Lifebuoy 'Swasthya Chetna Postal Cover'. Lifebuoy, a leading soap brand from
Hindustan Lever Limited (HLL), the Indian subsidiary of Unilever, became India's first brand to
be featured on a postal cover. The Special Postal Cover was released in recognition of the work
done by Lifebuoy and HLL to increase awareness of health and hygiene in rural India, through
the Lifebuoy 'Swasthya Chetna' (LSC) initiative.
LSC was a five-year campaign launched in 2002 in eight states across India. The objective of
this program was to educate around 200 million people in rural and urban areas about the
importance of adopting good 'health and hygiene' practices. The program aimed to debunk
the misconception that 'visibly clean is safe clean'.

HLL's senior product manager for Lifebuoy, Harpreet Singh Tibb (Tibb) said, "People believe
that 'visible clean' is 'safe' clean and hence tend to overlook simple hygiene practices such as
washing hands with soap. But the fact is that there are invisible pathogens, which are responsible
for many infectious diseases. We hence aim to educate people on the presence of invisible germs
and raise concern on their consequences."

LSC also spread awareness about germs and their adverse impact on health, and how proper
'health and hygiene' practices, such as bathing and washing hands with soap could prevent
diseases like diarrhea, the second largest cause of death among children in India. The LSC
program was implemented in various phases. In the initial phase, the company representatives
interacted with schoolchildren and key influencers in the community like medical practitioners,
Panchayat members, etc. People were educated through lectures, Glo-germ demonstrations, use
of visual aids such as flip charts, and quizzes.

The program also used media vehicles like cinema vans, wall paintings, weekly markets, fairs
and festivals. The program was later extended to the parents and other adults. The messages on
health and hygiene were reinforced through regular contact programs. HLL also introduced a
smaller bar (18 gram) of Lifebuoy soap priced at two rupees, to encourage people with low
incomes to use soap.

Finally, children and parents were recruited as volunteers to start health clubs that would help
sustain the initiative. HLL sought to involve the local community in this campaign at all stages
so that the beneficiaries saw this as their own initiative and felt a sense of ownership. On the
whole, HLL had committed US$ 5.4 million to fund this five year campaign. By the end of 2005,
HLL had covered over 17,000 villages, and planned to cover an additional 10,000 villages in
2006.

According to HLL, LSC was not a philanthropic activity, but a marketing program with asocial
benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who
never used soap. In the process, the company sought to bring about a behavioral change by
convincing people to use soaps more frequently, thus creating more users for its brand. The sales
of Lifebuoy had increased by 20 percent in 2003-04, with strong sales observed in the eight
states covered under the program.
In 2005, the Lifebuoy brand grew by 10 percent and sturdy growth of the brand was expected to
continue in 2006. The program also generated goodwill for the company among customers, the
government, and the media.
By the end of 2005, the campaign had touched 86 million rural consumers and registered a 30
percent increase in their awareness of germs, 20 percent increase in understanding the
association of germs with diseases and an increase in current user base by 33 percent compared
to pre-campaign status in activity villages.

4. Happy homes -special education & rehabilitation

Under the Happy Homes initiative, HUL supports special education and rehabilitation of
children with challenges.
Asha Daan: Home in Mumbai for abandoned The initiative began in 1976, when HUL supported
Mother Teresa and the Missonaries of Charity to set up Asha Daan, a home in Mumbai for
abandoned, challenged children, the HIV-positive and the destitute. At any point of time, about
370 inmates comprising of boys, girls, men and women are housed at the Home. Food, clothing
and medicines required by inmates are taken care of by the donations received from the locals of
Mumbai city. The needs of the abandoned/challenged children are met through special classes of
basic skills, physiotherapy, etc. being taken care of by the Sisters of the Home. Wherever
necessary, corrective surgery is also arranged for in the city hospitals by the Home. Until
November 2008, 15,933 individuals were benefited from Ashadaan.
Ankur: Special education of challenged children In 1993, HUL's Doom Dooma Tea Plantation
Division set up Ankur, a centre for special education of challenged children. Since 2006, HUL
Personal Products Factory, Doom Dooma took over the reign from the Tea Divisions. The centre
takes care of children with challenges, aged between 5 and 15 years. Ankur provides educational,
vocational and recreational activities to over 50 children with a range of challenges. Since
inception it has covered more than 80 children. Ankur received the Lawrie Group’s World aware
Award for Social Progress in 1999 from Her Royal Highness in London.
Kappagam: Shelter for challenged children Encouraged by Ankur's success, Kappagam
("shelter"), the second centre for special education of challenged children, was set up in 1998 on
HUL Plantations in South India. The focus of Kappagam is the same as that of Ankur. The centre
has 17 children, who are taught self-help skills and useful vocational activities. So far it covers
about 28 children.
Anbagam: Day care centre Yet another day care centre, Anbagam ("shelter of love"), has been
started in 2003 also in the South India Plantations. It takes care of 11 children. Besides medical
care and meals, they too are being taught skills such that they can become self-reliant and
elementary studies. Over 16,000 individuals have benefited from the Happy Homes initiatives
since inception.

5. Fair & Lovely (FAL) Foundation - Women’s Empowerment

About the Fair & Lovely Foundation

The Fair and Lovely Foundation is a non-profit foundation set up under the aegis of the
Hindustan Lever Educational and Welfare Trust. This foundation seeks to encourage economic
empowerment of Indian women through information and resources in the areas of education,
career and enterprise. Comprising an advisory body of leading individuals, this foundation will
undertake various projects and initiatives in keeping with its vision of taking women to a brighter
future.

Hindustan Lever Limited announced the launch of the Fair & Lovely Foundation, an initiative
whose mission is to encourage economic empowerment of women across India through
information and resources in the areas of education, career and enterprise.

The advisors to the Foundation are Dr Snehalata Deshmukh, Ex-Vice Chancellor, Mumbai
University; Dr Malika Sarabhai, Director- Darpana Academy and Dr Rekha Sheth, President,
Cosmetologist Society of India. The Foundation has already launched programmes in the areas
of careers and enterprise with partners like Andhra Pradesh Government and Dr Reddy's
Foundation amongst others.

The series of projects that have been drawn up to achieve the vision include the following:

Careers:
Project Disha aims at providing career guidance by organising career fairs in over 20 cities
across the country, offering counselling in as many as 110 careers. So far, over 45,000 students
have benefited from these career fairs.

Project Jagruti aims at providing guidance to women in Gujarat through innovative live
television broadcast and interactive learning sessions.

Education:
Project Saraswati aims to provide women with scholarships for education such that it opens
career avenues for them. There will be 100 rural scholarships for women students passing their
10th grade, given across 5 districts with the lowest HDI (Human Development Index) in select
States.

In the urban phase of this project, the Foundation will give 20 scholarships for postgraduate
studies.offers scholarships to deserving women in rural & urban India.

Enterprise:
Project Sanjeevani is a three month Home Healthcare Nursing Assistant's Course in partnership
with Dr. Reddy's Foundation. It will cater to young women between the ages 18 and 30 who
have formal educational backgrounds ranging from the 8th grade to intermediate levels. The
programme will run under the aegis of The Fair and Lovely Academy for Home Care Nursing
Assistants and will provide a unique training opportunity for young women who possess no entry
level skills and, therefore, are not employable in the new economy job market.

Project Kaladarshan is a pioneering effort towards skill development in the areas of embroidery
and garment designing for the DWCRA Self Help Groups of Andhra Pradesh. This is being done
in collaboration with the Commissionerate of Women Empowerment & Self Employment and
Employment Generation Mission, Government of Andhra Pradesh.

Project Sneha is a unique initiative that attempts to provide young women, who have been unable
to complete formal education, with the opportunity to obtain training in various aspects of home
care. This training will equip them with the requisite skills to gain employment in households
and thus provide them with economic independence.

Project Saundarya in association with CSI (Cosmetology Society of India), is a first of its kind
professional course for aspiring beauticians.

Speaking at the launch, Sangeeta Pendurkar, Marketing Manager, Skincare - Hindustan Lever
Limited, said, "Fair & Lovely Foundation will serve as a catalyst for the economic empowerment
for women across India. We believe that there are lakhs and lakhs of women, who though
immensely talented and capable, need a guiding hand to help them take the leap forward. At the
same time, achievers need to be acknowledged, to further boost their confidence and help serve
as role models for countless others. Through the Fair & Lovely Foundation we want to make a
difference to the lives of women by providing guidance and recognition; thereby helping them
achieve their potential."

Pendurkar further added, "Our association with leading women and organisations who have done
credible work in the area of economic empowerment of women will help us achieve this
objective. We will continue to identify and work on several such initiatives that will help us
ignite this spark in other women and make a difference to their lives."
Said Dr Malika Sarabhai, "Speaking on behalf of all members on this foundation, we are very
happy and proud to join hands with the Fair &Lovely Foundation. The projects this foundation
has already committed itself to are definitely steps in the right direction and we look forward to
identifying and working on many more such intitiatives. In the long run we are confident that the
Fair and Lovely Foundation will make a difference to the lives of many women."

SWOT ANALYSIS
SWOT analysis is a tool that originated in the business world (Learned et al., 1969) but is useful
for any kind of strategic planning. It's a relatively quick way to look at your Strengths,
Weaknesses, Opportunities and Threats. Although it is not a substitute for an in-depth analysis, it
can set the stage for one.

STRENTH
HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million
outlets. This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The
new sales organization named 'One HUL' brings "Household and Personal Care" and foods
distribution networks together, thereby aligning all the units towards the common goal of
achieving success. HUL has been continuously able to grow at a rate more than growth rate for
FMCG Sector, thereby reaffirming its future stronghold in Indian market.
Project Shakti - Rural India is spread across 627,000 villages and possesses a serious distribution
challenge for FMCG Cos. HUL has come up with a unique and successful initiative wherein the
women from the rural sector market HUL products, and hence, are able to reach the same
wavelength as of the common man in village. Apart from product reach, the initiative also
creates brand awareness amongst the lower strata of society. This has brought about phenomenal
results.

WEAKNESS
HUL's market dominance, originating from its extensive reach and strong brand presence,
allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the
volumes decreased, the margins grew, and company was able to earn more profits. But higher
margins attracted competition in areas of operations. HUL's strategy remained focused on
creating power brands and earning higher margins. It was not left with any other option but to try
cutting down the costs in order to protect volumes, if not increase it.
The key differentiators for an FMCG player are ability to call shots and pricing power, and HUL
has shown weakness over both these factors.
HUL's weakness was its inability to transform its strategies at the right time. They continued
with the same old strategy which helped them gain profits but was not genuine in this changed
environment. HUL's risk aversion and market myopia led to stagnation of business, and ferocity
of competition forced it into a defensive mode. Lack of pricing power in core business and
absence of growth drivers have put HUL on a deflationary mode.

OPPORTUNITIES
India is one of the world's largest producers of FMCG goods but its exports are miniscule as
compared to production. Though Indian Cos. have been going global, their focus is more towards
Asian countries because of the similar preferences. HUL is one of the top companies exporting
FMCG goods from India. An expansion of horizons towards more and more countries would
help HUL grow its consumer base and henceforth the revenues.
Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities for
HUL to diversify its brand and strength its food division. It could look at introducing products
from its parents stable like margarines and could also look at expanding its Knorr range of
products.
It's well-placed to take advantage of future FMCG Growth - HUL reach out 80% of 207 million
households in the country through various brands. It has a very well-defined product portfolio
spread across many product categories
Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste
(48%) and processed foods, continue to remain low offerings but great growth opportunities
products.

THREATS
ITC has reduced its dependence on the cigarettes business - Contribution of the core business in
revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five years, ITC
has extended its presence into areas like foods, retailing, hotels, greetings, agri, paper, etc. These
are businesses that can give it growth impetus in the long run. With ITC gaining momentum in
each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to
HUL's Business.
SSKI India has gone on to say, "We maintain Out performer on ITC with a price target of Rs.
2200, while our Under performer call on HUL remains unaltered (price target of Rs. 160)."

CONCLUSION
Thus from the study of HUL it can be understood that being so large and so extensive in brands
it has allocated equal importance to each of its product and services. Moreover being so evident
in each of its segment which is widely used by Indian as well as world wide customers; HUL is
not only focusing in major brands but also on those brands which are not performing well and
new products are brought into market by viewing the importance of Innovation in this changing
environment. As bees are treated as social insects, committed to prioritising the colony's needs
and working together. Such team work and a passionate commitment to achieve a shared goal is
what helps HUL create milestones.
Need for CSR
What is CSR?
Benefits
Challenges in implementation
OR
Implementation process
&
Summary / Lessons learnt
Conclusion
Bibliography
EXECUTIVE SUMMARY

Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever.Both
Unilever and HUL have established themselves well in the Fast MovingConsumer Goods
(FMCG) category. In India, the company offers many householdsbrands like, Dove, Lifebuoy,
Lipton,Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts werealso
rewarded when four of HUL brands found place in the ‘Top 10 brands’ list forthe year 2008
published in The Economic Times.Unilever was a result of the merger between the Dutch
margarine company,Margarine Unie, and the British soap-maker, Lever Brothers, way back in
1930. For70 years, Unilever was the undisputed market leader but now faces toughcompetition
from Proctor & Gamble and Colgate-Palmolive.HUL is also known for its strong distribution
network in India. In order to furtherstrengthen its distribution in the rural areas and to empower
the local women, HULlaunched a Project Shakti in 2000 in a district in Andhra Pradesh. The
idea behindthis project was to create women entrepreneurs and provide them with micro-
creditand training in enterprise management, which would enable them to create self-help groups
and become direct-to-home distributors of HUL products. Today ProjectShakti is present across
80,000 villages in 15 states and is helping manyunderprivileged women earn their livelihood.As
the per-capita income of India is increasing along with the Indian population. So,the future for
the FMCG Companies is bright. To analysis the past performance &the future demand of HUL,
FMCG products we have considered following points:

*We have a listed the different FMCG product lines of HUL.

*We have done competitor’s analysis in which the market share of top FMCGcompanies are
analysed & the market share of HUL’S different categoriesproduct are analysed with comparison
to its competitors.

*Then performance analysis is made by taking 10 year financial data from1998-2007. The profit
& sales growth is analysed.
https://www.scribd.com/document/30381173/HUL-Project-Report