UNILEVER NEPAL

LIMITED (UNL)

Presented By:
Niswarth Tola
 BACKGROUND
• The journey of Unilever Nepal started in 1992 when Nepal Lever Limited, set up a factory in Makwanpur
district with an initial investment of 73.65 million NPR.
• The factory started with the production of detergents, cleaning powders, toothpaste and toilet soaps.
The manufacturing activity of UNL commenced with the commercial production of Wheel washing
powder in one kg packaging in February 1994.
• UNL began exporting its products from 1995 and started to earn profits from the third year of production.
• The exports gradually decreased from the early 2000 and stopped completely in 2004.
• UNL then explored the option of shifting focus on expanding Nepalese markets and that was when the
company was renamed to Unilever Nepal Limited.
 ABOUT
Unilever Nepal Limited (UNL) has established itself as the largest FMCG manufacturer in Nepal
.Unilever Nepal Limited; formerly Nepal Lever Limited is the Nepali subsidiary company of Anglo-
Dutch FMCG Company Unilever. Its products include foods, beverages, cleaning agents and personal
care products.
Headquarters: Basamadi, Hetauda
Traded as: NEPSE: 52 Week High-Low:23889 - 17803 180 Days Average: 22,398.86
Founded: 1992
Parent organizations: Unilever, Hindustan Unilever
 VALUES
 Provides direct employment to 243 people and indirectly to more than 20,000 people across the
value chain.
 Has leading market share in all operating categories within Nepal.
 Unilever Nepal is the highest dividend yielding stock listed on NEPSE (The Nepal Stock Exchange
Limited) (19013)
 As per the annual report for FY 2016-17, UNL has reported:
 Net sales of 4.87 billion NPR
 Net profit of 999 million NPR
 Turnover Growth of 9.6 per cent
 Market Capitalization of UNL is 23 Billion NPR (approx.)
 PRODUCTS
With over 28 brands spanning eight distinct categories and a strong focus on quality and consumer
satisfaction, Unilever is one of the most trusted corporates in Nepal.
 FINANCIAL STATISTICS
Ø UNL is a blue chip company in the Nepali stock market that pays highest dividend to its shareholders. It
is the only blue chip company in manufacturing and production category listed at NEPSE.
Ø from FY2011/12 to FY2015/16, the company has distributed per share dividend of Rs 590, Rs 680, Rs
760, Rs 990 and Rs 1,020 respectively.
“We have observed a competitive growth throughout the 25 years of operations in Nepal.
Ø The growth has been consistent from FY 2005/06 to FY 2015/16,” says Chauhan. According to him, the
company’s annual sales grew from Rs 1.4 billion to Rs 3.9 billion in this period.
Ø the Company has 920,700 listed shares with the market capitalization of Rs 27,574,965,000.
Ø UNL’s parent company Hindustan Unilever Limited holds 80 percent of the shares while the remaining
20 percent or 184,180 units are owned by Nepali investors.
Ø As per the financial report of the third quarter of FY2016/17, UNL’s earning per share (EPS) is Rs 348.
 r ti l achievements
Operational i t in
i 2009
 Good broad-based underlying sales growth of 3.5%
 Underlying volume growth of 2.3% – accelerating through the year
 Increased investment behind our brands
 Return to strategic acquisitions including TIGI and Baltimor
 Named International Supplier of the Year by Tesco for the fourth year running
 Competition
Multinational companies like
• Unilever,
• Carlsberg
• Coca-Cola,
• PepsiCo,
• ITC and
• Dabur have been able to excel in the FMCG market in
Nepal. Competition for Unilever
• The Chaudhary Group,
• BLC,
• Sharda Group,
• Khetan Group,
• Kedia Organization,
• TM Dugar Group
• Laxmi Group.
 CURRENT MARKET
STRATEGIES
According to Chauhan, UNL’s sustainable business model drives growth that is consistent by reducing
risks, is more competitive through inspiring innovations, is more profitable by reducing costs and is more
responsible – leading to enhanced trust in the products. He states that further binding the category
strategies together are the company’s compass pillars which define how Unilever wins with consumers.
They are:
• Winning with brands and innovation
• Winning in the marketplace
• Winning through continuous improvement
• Winning with people
 Environmental (Eleven years as sector leader of
the Dow Jones Sustainability Indexes.)
Our goal is to double the size of the business whilst at the same time reducing our environmental footprint.
This encompasses the whole value chain – from the sourcing of raw materials through to consumer use
and disposal of our products.

• We are committed to sourcing all palm oil

from certified sustainable sources by 2015
• 15% of the tea we use globally is sourced
from Rainforest Alliance Certified farms
• Over the period 1995–2009 we have
achieved reductions of:
• 41% in CO2 emissions
• 65%
73% inin water usage*
total waste
 TARGET AUDIENCE
• “Our products are more about developing right habits among the consumers. Making the consumers
conscious about their personal hygiene and giving them the right value by continuing to specialize in all
the categories of personal hygiene is the pillar of our growth," shares Chauhan.
• The initiative forms part of UNL’s Joint Business Planning to promote performance culture in the
distributor sales team.
• The company seeks to enhance the depth of market coverage of distributors by training them and the
sales team to penetrate all types of market categories.
 SWOT
I
ANALYSIS
 Unilever’s Strength
Strengths are internal strategic factors based on the company’s conditions, such as human resources,
production processes, organizational structure and investments. The following strengths are significant in
Unilever’s consumer goods business:
 Strong brands
 Broad product mix
 Economies of scale
 Strong global market presence
 Unilever’s Weaknesses
Despite its strong market position, Unilever has weaknesses that limit its potential growth. Unilever must
address the following weaknesses:
• Limitable products
• Limited business diversification
• Dependence on retailers
 OPPORTUNITIES FOR
UNILEVER
Unilever must take advantage of growth opportunities in consumer goods markets around the world. The
following opportunities are significant in Unilever’s external environment:
• Business diversification
• Product innovation for health
• Business enhancement for environmental conservation
• Market development
 THREATS FACING UNILEVER
A variety of external factors can limit or reduce Unilever’s business performance. The following are the
threats relevant to Unilever’s consumer goods business:
• Tough competitive rivalry
• Product imitation
• Increasing popularity of retailers’ house brands
 UNILEVER’S SWOT ANALYSIS –
RECOMMENDATIONS
Ø This SWOT analysis of Unilever highlights a number of internal and external strategic factors that
managers must include in strategy development.

For example, the weaknesses of limited business diversification and imitable nature of products are
significant because they influence business stability and performance. In this regard, a recommendation
is to diversify Unilever’s business through acquisition of related firms not in the consumer goods industry.

Also, Unilever needs to consider product innovation as an opportunity to boost business performance. It
is recommended that the company must use its strengths, such as economies of scale, for product
innovation to address competition and the threat of imitation.
 I OBJECTIVES
MEDIA I
The company altogether has five major social initiatives. Among them, the following are brand-led
activities: • Lifebuoy - Help a Child Reach 5
• Pepsodent- Oral Hygiene
• Clinic plus- Encouraging Girl Child Talent
• Fair & Lovely Foundation- Enhancing Women Livelihood
• Consumer awareness programme