hindustan unilever case study questions and answers

• Candlesticks Book
• Stock Compare
• Superstar Portfolio
• Stock Buckets
• Nifty Heatmap
• *Now Available in Hindi

Hindustan Unilever Limited (HUL) Case Study 2021 – Industry, SWOT, Financials & Shareholding

by Team Trade Brains | Mar 3, 2021 | Case Study , Stocks | 0 comments

HUL Case Study and analysis 2021: Hindustan Unilever Limited (HUL) is India’s biggest fast-moving consumer goods company . In this article, we will look into the fundamentals of HUL, focusing on both qualitative and quantitative aspects. Here, we will perform the SWOT Analysis of HUL, Michael Porter’s 5 Force Analysis, followed by looking into HUL  key financials. We hope you will find the Hindustan Unilever Limited (HUL)  case study helpful.

Disclaimer: This article is only for informational purposes and should not be considered any kind of advisory/advice. Please perform your independent analysis before investing in stocks, or take the help of your investment advisor. The data is collected from Trade Brains Portal .

Table of Contents

About HUL and its Business Model

With a legacy of over 80 years, Hindustan Unilever Limited (HUL) is India’s biggest fast-moving consumer goods company. Actually, the very first product of the company was launched in 1888 named Sunlight Soap. In 1931 Unilever set up its subsidiary in India and in 1956, its subsidiaries consolidated to form Hindustan Leer Limited.

In 2007, the name was renamed Hindustan Unilever Limited. In 2013, the parent company Unilever increased the market stake in HUL to 67% and in 2018, the market cap of HUL passed $50bn.

 HUL primarily has three divisions:

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon ! Get the book now!

• Beauty and Personal Care
• Food and Refreshment

Hindustan Unilever has a pan India access and it is found that more than 9 out of 10 households in India use a brand of HUL. Currently, the company has 14 brands in 44 different categories including Skin Cleansing, Tea, Deodrants, HFD, etc. Famous Brands like Surf Excel, Rin, Wheel, Vaseline, Pepsodent, Clinic Plus are included in the portfolio of the company.

On April 1, 2020, HUL also acquired leading brands like Horlicks and Boost. The company has 21,000 employees working under it with 31 factories, more than 1150 suppliers, and the products are available at more than 8million outlets in India.

HUL Case Study – Industry Analysis

FMCG sector is the fourth largest sector in India, which has surged from 840 Billion USD in 2017 to 1.1 Trillion USD in FY20 and is expected to grow at 10% a year. Personal Care and Household dominates with 50% of FMCG sales in India. Rapid urbanisation, increasing disposable incomes and better lifestyles have been the main growth drivers for the FMCG sector.

55% of the sales come from the urban segment, however, for the last few years, it has witnessed faster growth in the rural segment as compared to the urban segment. In rural India, the sector grew at 10.6% in the Q3 FY20, majorly due to better agricultural output.

It is expected that the rural FMCG market will rise to USD 220 billion by the end of 2025, at the same time, the market share of the unorganised market is expected to fall rapidly.

Michael Porter’s 5 Force Analysis of HUL

1. rivalry amongst competitors.

• FMCG industry is a very competitive one with many brands available, and new products coming in each quarter make innovation very important. FMCG business is highly dependent on advertisement and companies spent a big percentage on it.
• The switching costs for the customers are very low in this sector as the product differentiation is moderately low, which intensifies the competition.

2. A Threat by Substitutes

• Substitute in the FMCG sector is highly dependent on the particular product. For example, it is way easier to find Colgate toothpaste at a local shop than a homemade organic dentifrice. On the other hand, the substitute product for biscuits is rusk which is easily available. Since switching costs are very less, the threat of substitutes is relatively on the higher side.

3. Barriers to Entry

• Barriers to entry in the FMCG sector are far less as compared to the others. FMCG business is majorly dependent on brand identification and this can be developed with unique qualities, logo, advertisement; basically, proper market strategy.
• The distribution network is very large and branched in the FMCG sector, which further eases out barriers of entry.

4. Bargaining Power of Suppliers

• In FMCG business, companies have long term business with the suppliers, which helps them to negotiate the price. Moreover, the number of suppliers is ample; hence, decreasing the bargaining power of suppliers. However, companies need to make sure that they are getting the supplies at the cheapest possible prices as the industry is a high-volume, low-margin business.

5. Bargaining Power of Customers

• Factors like a high number of similar product companies available, very low switching costs and similar products available at similar quality and in almost the same price range increase the bargaining power of customers. The only thing that can make them stay is brand loyalty for a product.

HUL Case Study – SWOT Analysis

Now, moving forward in our HUL case study, we will perform the SWOT analysis.

1. Strengths

• HUL has a strong brand equity and a large legacy as it is a very old and well-rooted company with a variety of popular brands and products.
• The company has its presence across the length and breadth of India with over 8 million+ retail stores where its products are available.

2. Weaknesses

• HUL runs in a very competitive environment and there are highly established and rising companies that are little product-focused and hence, eat up the market share of the company.
• HUL currently doesn’t have any ayurvedic or natural products in their portfolio, which is a negative aspect of the company as the current population’s trend is shifting to herbal products and many focused companies are making the best use of it.

3. Opportunities

• With increasing disposable incomes, education and youth population, the FMCG sector in rural and semi-urban areas is expected to grow very rapidly as compared to urban areas. The company can use this very well as it already has a brand image and a wide chain of distributors.
• The company can use its healthy cash reserve position and brand image legacy to acquire various products to diversify its portfolio.
• HUL runs in a highly competitive environment, with 100% FDI allowed by the Govt. of India and new multinational companies setting their feet, the company faces a high threat from its competitors.
• The company is highly dependent on raw material prices. Inflation can shrink the margins for the company as it runs in a sector that is a high-volume, low-margin one.
• Population’s shift to organic and healthy products can help some unorganized and small companies to increase their market share, which can be a threat to HUL.

Asian Paints Case Study 2021 – Industry, SWOT, Financials & Shareholding

HUL’s Management

There are 9 members in the board of directors committee of the company, out of which 6 are Independent Directors including one female member.

Mr Sanjiv Mehta has been serving as the Chairman and Managing Director of the company since 2018. Chartered Accountant by degree, Sanjiv Mehta is also the President of Unilever South Asia (Pakistan, Bangladesh, Sri Lanka and Nepal). In 2019, he was awarded the “Business Leader of The Year” award by the All India Management Association.

Mr Willem Uijen is the Executive Director, Supply Chain of Hindustan Unilever Limited. He has been with the company since 1999 and was a part of various demographical projects of the company, especially in Latin America. In January 2020, he joined his current position.

Financial Analysis of HUL

• 44% of the company’s revenue comes from Beauty and Personal Care, followed by Home Care (34%). Foods & Refreshment contributes 19% and only 3% comes from others.
• In terms of Operating profit, Beauty and Personal care products contribute the maximum (55%), 29% comes from Home Care, 14% and 3% from Foods and others respectively.
• The company has a 54% market share in the Skin Care Segment, which makes it the market leader. In Dishwashing Detergents, 55% of the market share is dominated by the company. 47% and 37% is the respective market share which company owns in Shampoo and Personal Care Segment.
• As of Sept’20, the company spent 9.79% on advertisements as a % of total sales, which has shown a good rise from 7.46 of June’20.
• Net Profit Margin for the company is 14.77% as of FY20, which has surged from 13.59% as that of FY19. Current NPM is the highest of that in the last 5 financial years and the 3 Yrs. Avg. Net Profit Margin is 14.26%. Source: Trade Brains Portal ]

• In FY20, HUL showed a Revenue Growth of 1.2% from the previous FY. 3-year CAGR is 6.16%, which means that in recent years, the revenue growth has been subdued. A similar trend is visible from Net Profit Growth, 1-year CAGR is 11.46% whereas 3-year CAGR (14.66%) is higher.

• The company has a very healthy and consistent cash flow from Operating Activities. Outflow in cash flow from financing activities surged in FY20 as the company paid a higher dividend than the previous year.

HUL Case Study Financial Ratios

1. profitability ratios.

• EBITA Margin for the company has been increasing for the last 5 financial years except for FY19, in which it witnessed a small dip from 20.7 to 19.91. As of FY20, EBITDA Margin is 21.54%.
• Hindustan Unilever has the premium RoE of 84.15 (FY20), and a consistent rise in the same has been visible for the last 4 years. The 3 years avg RoE is 79.76%.
• The company enjoys 3-digit RoCE, which is very well respected by the market and a similar rising trend is visible in RoCE as that of RoE. As of FY20, RoCE is 114.67% and the Avg ROCE for 3 years is 110.16%.

2. Leverage Ratios

• As of FY20, Quick Ratio and Current Ratio for the company are 1.02 and 1.32 respectively, which indicated its good liquidity position. These levels have been more or less the same for the last 5 financial years, which is a positive sign for the company.
• HUL is a 100% debt-free company and its Interest Coverage Ratio is 48.69% as of FY20. Although this level is very good currently, it was 261.73 in FY19.

3. Efficiency Ratios

• Currently, the asset turnover ratio for the company is 2.4, which is slightly lower than the previous year but this figure has been almost constant in the recent financial years.
• The inventory turnover ratio witnessed a continuous rise from FY16 (12.04%) to FY19(17.53%), which later dipped to 17.18 in FY20 due to virus outbreak disruptions.
• The number of receivable days has decreased (12.79% in FY19 to 11.83% in FY20) and the number of payable days has increased (90.77% in FY19 to 92.86% in FY20), indicating the company’s increased bargaining power over the buyers and suppliers.

Shareholding Pattern of HUL

• Promoters own 61.9% of the company as of December quarter 2020. Although it has been the same for the last 3 quarters, a fall was seen from the level of 67.18% in March 2020. The best part is that promoters do not pledge a single share.
• FIIs hold 14.92% of shares of the company as of December 2020, which has surged from the level of 12.32% in the same period the previous year.
• DIIs own nearly 10.72% shares of the company, which was around 6.68% a year back. Both FIIs and DIIs have increased their shareholding in the previous years.
• Public shareholding has witnessed a fall in the recent quarters, from the level of 14.95% in Jun2020 to 12.46% in Dec 2020.

Closing Thoughts

In this article, we tried to perform a quick Hindustan Unilever Limited (HUL) case study. Although there are still many other prospects to look into, however, this guide would have given you a basic idea about HUL.

What do you think about HUL fundamentals from the long-term investment point of view? Do let us know in the comment section below. Take care and happy investing!

Start Your Stock Market Journey Today!

Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Search Topic or Keyword

Trending articles.

Recent IPO’s

• Awfis Space Solutions IPO Review – GMP, Financials And More
• Go Digit IPO Review 2024 – GMP, Financials And More
• Aadhar Housing Finance IPO Review – GMP, Financials And More
• TBO TEK IPO Review – GMP, Financials And More
• Indegene IPO Review – GMP, Financials, And More

Easiest Stock Screener Tool!

Best stock discovery tool with +130 filters, built for fundamental analysis. Profitability, Growth, Valuation, Liquidity, and many more filters. Search Stocks Industry-wise, Export Data For Offline Analysis, Customizable Filters.

• — Stock Screener
• — Compare Stocks
• — Stock Buckets
• — Portfolio Backtesting

Start your stock analysis journey with Trade Brains Portal today. Launch here !

Keep the Learning On!

Subscribe to Youtube to watch our latest stock market videos. Subscribe here .

FMCG Giant Hindustan Unilever Limited (HUL) Case Study

Devashish Shrivastava , Anik Banerjee

Hindustan Unilever Limited (HUL) is a British-Dutch assembling organization headquartered in Mumbai, India. The items of Hindustan Unilever Ltd incorporate nourishments, drinks, cleaning specialists, individual consideration items, water purifiers, and purchaser merchandise. HUL was set up in 1933 as Lever Brothers and following the merger of its constituent gatherings in 1956, HUL was renamed Hindustan Lever Limited. The organization was then renamed in June 2007 as "Hindustan Unilever Limited".

At the start of 2019, the Hindustan Unilever Limited portfolio had 35 items marked in 20 classifications and utilized 18,000 representatives with offers of Rs. 34,619 crores in 2017-18. In December 2018, HUL reported its procurement of Glaxo Smithkline's India business for $3.8 billion out of an all value merger manage ratio of 1:4.39.

However, the joining of 3800 representatives of GSK stayed questionable as HUL expressed there was no provision for maintenance of workers in the deal. In January 2019, HUL said that it hopes to finish the merger with Glaxo Smith Kline Consumer Healthcare (GSKCH India) this year.

History And Journey Of Hindustan Unilever Brands And Products Of Hindustan Unilever Business Model of HUL Business Growth In India Expected Future Growth

History And Journey Of Hindustan Unilever

Hindustan Unilever Limited (HUL) is India's biggest quick-moving customer merchandise organization. HUL works in seven business sections.

The cleanser segment incorporates cleansers, cleanser bars, cleanser powders, and scourers. Individual items incorporate items in the classifications of oral consideration, healthy skin (barring cleansers), hair care bath powder, and shading beautifiers. Refreshments incorporate tea and espresso.

Nourishments incorporate staples (atta salt and bread) and culinary items (tomato-based items natural product-based items and soups). Frozen yogurts incorporate frozen yogurts and solidified treats. Others incorporate synthetic substances and water business.

HUL's item portfolio incorporates family unit brands—for example, Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair and Lovely, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, and Bru, Knorr, Kissan, and Kwality Wall's. HUL is a backup of Unilever, one of the world's driving providers of food products , home care, personal care, and refreshment items with deals in more than 190 nations and a yearly turnover of $6.08 billion in 2020.

Hindustan Unilever Limited traces its origins to Unilever, a British-Dutch multinational company, which is the parent of HUL. William Hesketh Lever was a popular social reformer and is regarded as one of the main propagators of several significant employee benefits options like benefits of health, savings, and more. Thus, his ideologies largely seeped into Unilver and resulted in developing its strong sense of corporate responsibility and leadership. This culture was invariably passed on to the Hindustan Unilever Limited (HUL).

The British-Dutch company Unilever, which emerged as a result of the merger of the operations of Dutch Margarine Unie and British soapmaker Lever Brothers, when it first came to India, discovered the rich and largely unexplored potential of the Indian market. Soon after, the establishment of Hindustan Vanaspati Mfg. Co. Ltd. followed in 1931, which was succeeded by the foundation of Lever Brothers India Limited (1933) and United Traders Limited (1935). The Indian subcontinent had only been importing FMCG products, branded under Lever Brothers since then, the first of which were spotted as early as 1888. Following this, brands like Lifebuoy stepped in 1895, along with other famous companies like Pears, Lux, and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

The 3 Unilever companies - Hindustan Vanaspati Manufacturing Company, Lever Brothers India Limited, and United Traders Limited eventually merged together to form HUL in November 1956. HUL offered 10% of its equity to the Indians and soon swooped into the news, being the first foreign subsidiary to do so.

The organization obtained Lipton in 1972, and Lipton Tea (India) Ltd was consolidated in 1977. Brooke Bond joined the Unilever overlap in 1984 through a global obtaining. Lake's (India) Ltd joined the Unilever overlap through a worldwide securing of Chesebrough Pond's USA in 1986.

The progression of the Indian economy, which began in 1991, denoted an enunciation in the organization's development bend. The expulsion of the administrative structure enabled the organization to investigate every item and open-door section with no imperatives on the creation limit. At the same time, deregulation allowed acquisitions and mergers .

The Tata Oil Mills Company (TOMCO) converged with the organization with effect from April 1, 1993. In 1996, Unilever and Lakme Ltd framed a 50:50 joint endeavor, Lakme Unilever Ltd, to advertise Lakme's market-driven beautifiers and other suitable results. In 1998, Lakme Ltd offered its brands to Unilever and stripped its half stake in the joint venture.

In 1994, the organization and US-based Kimberly Clark Corporation framed a 50:50 joint endeavor—Kimberly-Clark Lever Ltd—which markets Huggies Diapers and Kotex Sanitary Pads. The organization likewise set up a backup in Nepal called Unilever Nepal Limited (UNL). UNL's production line speaks to the biggest assembling interest in the Himalayan kingdom. In the1992, Brooke Bond gained Kothari General Foods with critical interests in instant coffee.

In 1993, HUL acquired Kissan from the UB Group and the Dollops ice-cream business from Cadbury India. Tea Estates and Doom Dooma, two major organizations of Unilever, were converged with Brooke Bond. At that point, in 1994, Brooke Bond India and Lipton India converged to shape Brooke Bond Lipton India Ltd (BBLIL) to empower more noteworthy concentration and guarantee collaboration in the customary beverages business. BBL converged with Unilever with effect from January 1, 1996.

The internal rebuilding finished with the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two organizations had huge covers in personal products, specialty chemicals, and export organizations; other than a typical appropriation framework since 1993 for personal products. The two additionally had a typical administration pool and an innovation base.

In January 2000, the administration chose to grant 74% value in Modern Foods to Unilever. This started the divestment of government value in open division endeavors (PSU) to private area accomplices. The organization's entrance into bread production is a key augmentation of the organization's wheat business. In 2002, the organization procured the administration's residual stake in Modern Foods.

In 2002, the organization made its entry into Ayurvedic well-being with its Ayush item range and Ayush therapy centers. In 2003, the organization procured the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, an innovator in marine products trades. Additionally, the organization propelled Hindustan Unilever Network Direct to home business. In 2004, the organization launched the 'Pureit' water purifier.

In 2005, Lever India Exports, Lipton India Exports Ltd, Merry climate Food Products, Toc Disinfectants Ltd, and International Fisheries Ltd were amalgamated within Unilever. In February 2006, Vasishti Detergents Ltd (VDL) converged with Unilever. In September 2006, Modern Foods Industries (India) Ltd & Modern Foods and Nutrition Industries Ltd were included. In October 2006, Unilever stripped its 51% controlling stake in Unilever India Shared Services Ltd, currently known as Capgemini Business Services Pvt. Ltd., to Cap Gemini SA.

In March 2007, Sangam Direct, a non-store home conveyance retail business managed by Unilever India Exports Ltd (UIEL) and a completely possessed auxiliary, was moved to Wadhavan Foods Retail Pvt Ltd (WFRPL) in a droop deal business. Likewise, Unilever completed the demerger of its operational offices in Shamnagar, Jamnagar, and Janmam and shaped three autonomous organizations —Shamnagar Estates Ltd., Jamnagar Properties Ltd, and Hindustan Kwality Walls Foods Ltd. In June 2007, the organization changed its name from Hindustan Lever Ltd to Hindustan Unilever Limited.

In 2008, the organization reported its coordinated efforts with the Indian Dental Association (IDA) related to World Dental Federation (FDI) through the Pepsodent brand to help improve the oral well-being and cleanliness benchmarks in India. In April 2008, the organization demerged and moved certain immovable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the organization introduced its new corporate office.

In April 2010, Unilever affirmed the plan of amalgamation of Bon Ltd, an entirely possessed backup of Hindustan Unilever Limited, with it. The selected date for the previously mentioned plan was 1 April 2009 and the plan was made viable from April 28, 2010. Ensuing to the amalgamation, Bon Ltd stopped being an auxiliary of the company.

During 2010-11, Kissan forayed into a new market fragment in three major classifications. It propelled Kissan Fruit and Soya, a delightful mix of organic product juice and soya milk, which appreciated a separated suggestion in this market. The brand likewise went into the Indian (non-sweet) spreads showcase with the dispatch of Kissan Creamy Spread over key towns. In the bakery division, the organization propelled two new items—Chapi and Cream Rolls. The organization stripped 43.31% stake in Hindustan Field Services Pvt Ltd for Smollan Group (the JV accomplice).

Along these lines, Hindustan Field Services Pvt. Ltd. stopped being a backup organization. Lakme Lever Pvt Ltd, a completely claimed auxiliary of HUL, extended the system of Lakme Beauty Salons in that year with the opening of 11 franchises and oversaw salons alongside 18 franchisees' salons.

In December 2011, the organization demerged the FMCG sends-out business, including explicit fares related to assembling units of the organization, into its entirely claimed backup Unilever India Exports Ltd (UIEL). The plan wound up successful on January 1, 2012.

In 2012, the organization went into a concurrence with Unilever to showcase Brylcreem in India. During the year under audit, Unilever and elements of Piramal Realty (Ajay Piramal Group) consented to an arrangement for the task of HUL's leasehold privileges of the land and building named Gulita arranged at Worli Sea Face Mumbai for an exchange estimation of Rs. 452.5 Crore.

On 22 January 2013, the Board of Directors of HUL affirmed a proposition to consent to another arrangement with its parent organization Unilever for the arrangement of innovation exchange imprint permit, trademark registration, and other services on 1 February 2013. This new understanding underlined that the loyalty cost of 1.4% of turnover payable by HUL to Unilever will increment in a staged way to an eminence cost of 3.15% of turnover, no later than the money-related year finishing 31 March 2018.

The expansion in eminence cost in the period from 1 February 2013 to 31 March 2014 is assessed to be 0.5% of turnover and from there on in the scope of 0.3% to 0.7% of turnover in each money related year, paving the way to a complete evaluated sovereignty cost increment of 1.75% of turnover contrasted with existing courses of action no later than the monetary year finishing 31 March 2018.

In 2014, Unilever reported an organization with Internet.org, a Facebook-directed coalition of accomplices to see how web access can be expanded to contact millions of individuals crosswise over India. The organization additionally dispatched Prabhat activity for network improvement in towns around its industrial facilities during the year under survey. Furthermore, the organization also went into association with MTV to embrace its brands during the year under review. In 2015, the organization propelled The Unilever Foundry.

During the year under audit, the organization was perceived as the most inventive advertiser at the Mobile Marketing Association (MMA). The organization additionally resuscitated Ayush with e-dispatch during the year. Besides, it also propelled the 'Swachh Aadat Swachh Bharat' program in India during the year under review. On 8 September 2015, HUL reported that it has further consented to bring forth an arrangement for the deal and the transfer of its bread and pastry shop business under the brand Modern to Nimman Foods Private Limited, an investee organization of the Everstone Group, for an undisclosed amount.

Brands And Products Of Hindustan Unilever

HUL is the market chief in Indian buyer items with products in more than 20 purchaser classes (for example, cleansers, tea, cleansers, and shampoos among others). Sixteen of HUL's brands were included in the ACNielsen Brand Equity rundown of 100 Most Trusted Brands Annual Survey (2014) which was completed by Brand Equity, an enhancement of The Economic Times. There are many brands and products owned by Hindustan Uniliver:

Food Products

• Annapurna salt and Atta (once known as Kissan Annapurna)
• Brooke Bond 3 Roses, Taj Mahal, Taaza and Red Label tea
• Kissan squashes, kinds of ketchup, squeezes and sticks
• Lipton ice tea
• Knorr soups and supper creators and soupy noodles
• Kwality Wall's solidified treat
• Modern Bread, prepared to eat chapattis and other pastry shop things (presently offered to Everstone Capital)
• Magnum (ice cream)

Homecare Brands

• Wheel cleaner
• Cif Cream Cleaner
• comfort cleansing agents
• Domex disinfectant/toilet and bathroom cleaner
• Rin detergent products
• sunlight cleanser and shading care
• Surf Excel cleanser and delicate wash
• Vim dishwash
• magic – Water Saver

Personal Care Brands

• Aviance Beauty Solutions and products
• Axe deodorant and aftershave lotion and soap and accessories
• Lever Ayush Therapy ayurvedic health care and personal care products and items
• International breeze
• Brylcreem hair cream, hair gel and hair products
• Clear anti-dandruff hair products
• Clinic Plus shampoo and oil
• Close Up toothpaste
• Dove skin cleansing & hair care range: bar, lotions, creams, and antiperspirant deodorants
• Denim shaving products
• Fair and Lovely, skin lightening cream
• Indulekha ayurvedic hair oil
• Lakmé beauty products and salons
• Lifebuoy soaps and handwash range
• Liril 2000 soap
• Lux soap, body wash, and deodorant
• Pears soap, body wash
• Pepsodent toothpaste
• Pond's talcs and creams
• Sunsilk shampoo
• Sure antiperspirant
• Vaseline petroleum jelly, skincare lotions
• Vaseline and relevant products

Water Purifier Products

• Pureit water purifier

Business Model of HUL

Hindustan Unilever is an FMCG company that leverages its Direct to Consumer (D2C) business model and has made over 50 billion in revenue, as discovered in 2017. The company has crossed INR 50,000 cr ($6.55 bn) in turnover during FY21, as per the reports on April 2022. HUL is the first pure FMCG brand to hit such a milestone.

The business model of Hindustan Unilever is propelled with the idea of making living sustainable feasible for the masses. With sustainable living, HUL wants to bring about:

• Bettering the future of the children
• A future full of confidence
• A future full of health
• A future that is better for the planet
• A future that is better for the farming and farmers of India

The beauty and personal care segment of Hindustan Unilever helps the company see the most profit, while the food and refreshments segment is declared as the fastest-growing segment of the company. Home care is another segment of the company among its 3 primary segments.

The Hindustan Unilever company gets its competitive advantage from the global footprint it has and the track record of the company for enhancing value for its consumers around the globe.

Some of the prominent patterns that are noticeable in the business model of HUL are:

Reverse Innovation

Reverse innovation refers to the process of building products for industrial countries and then adapting them to the emerging markets. The technique of reverse innovation is what is truly wielded by HUL, which has been a prominent inspiration for many other big brands. The 'Knorr Stock Pot’ that the brand came up with is an excellent example of leveraging reverse innovation. This technique was mastered by HUL by taking references from the famous ‘Dense Soup treasure,’ which was the first major example of reverse innovation, launched in China in 2007.  

Focussing on the financially weak

In contrast to the other foreign subsidiaries, HUL ideated to focus on the financially weaker sections of the country, which led them to focus on the majority of the Indian people. Citing the discovery of Wheel detergent powder is one of the examples where Hindustan Unilever created products for the majority of the Indian consumers. Wheel had lower oil-to-water ratio, which enabled Indian to wash textiles even in rivers with hands. Wheel was then made available cleverly by the brand in the local corner shops as well as via door-to-door representatives.

Staying keen on the Triple Bottom Line

While most of the companies solely focus on the profit part of the follow the Triple Bottom Line with only a little focus on the other segments, HUL has a new approach where the brand decided aimed for the other segments, thereby caring for people and the planet.  

HUL largely focuses on the people, including its consumers and others. For instance, the company changed the name of one of its popular products "Fair and Lovely" to "Glow and Lovely", following the All Black Lives Matter movement that raged globally. This instantly made HUL a favourite!  

Significant Distribution Strategy

The distribution strategy that Hindustan Unilever follows is exemplary! It focuses on hyperlocal markets, retail stores, wholesalers, hypermarkets convenience stores, ecommerce, and more. This hugely helps in the promotion of the HUL products and moving them fast to the consumers!

Business Growth In India

FMCG giant Hindustan Unilever Limited (HUL) announced a 15.98% development in solidified net benefit at Rs 6,060 crore for the monetary year finished March 31, 2019, when contrasted with Rs 5,225 crore in 2018. The net profit that HUL witnessed in FY21 rose by 18% YoY at Rs 7,954 crore.

Remarking on the profit, HUL Chairman and Managing Director Sanjiv Mehta stated, "We have conveyed a solid execution for the quarter regardless of some balance in rustic market development. Our attention to fortifying the center and driving business sector advancement has been reliably conveying great outcomes. We have now developed top line and primary concern for the eighth continuous year and our 2019 outcomes were a demonstration of both our technique and execution."

"Given the large-scale monetary pointers, close term advertise development has directed. Notwithstanding, the medium-term viewpoint remains positive. As an association, we are well-situated to react with speed and nimbleness to address the issues of our shoppers. We stay concentrated on our vital plan of conveying predictable, focused, beneficial, and dependable development," he included.

"Together with the between time profit of Rs 9 for each offer, the all-out profit for the money-related year closure March 31, 2019, adds up to Rs. 22 for every offer," the organization said. "Combined income for 2018-19 remained at Rs 39,860 crore, up from Rs 36,622 crore a year sooner," HUL said in a document to the Bombay Stock Exchange.

HUL's business in India developed by 12%, driven by 10% volume development in the household advertise. In the January-March quarter, the organization posted 13.84% development in its independent net benefit at Rs 1,538 crore when contrasted with Rs 1,351 crore in a similar quarter a year ago. The offers of the organization remained at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, enrolling a development of 8.95%. The working benefit (EBITDA) for the March quarter was up 13% year-on-year at Rs 2,321 crore and the EBITDA edge was up 90 bps.

The organization said that the edge improved because of judicious administration of instability in costs (unrefined and money driven) alongside improved blend and working influence.

HUL reported that its Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 11,324 crore, while the EBITDA margin was reported to be 25% during FY21.

Also read : Unknown Facts About Famous Brands | A Case Study

Expected Future Growth

Hindustan Unilever NSE 0.01 % (HUL) may clock 9-10% development in June quarter benefit despite a slight balance in volumes because of value climbs crosswise over classes. IIFL Institutional Equities expects the FMCG major to report a 6% volume development, a slight control from the 7% volume development recorded in the past quarter.

"Our channel checks give us a feeling that the organization has started value climbs crosswise over classes, (for example, cleansers, espresso), among others. We along these lines gauge a business development of 9%, like the past quarter level. We expect the slight withdrawal in gross edge to be counterbalanced by influence in promotion spending and different costs. In general, EBITDA and PAT are relied upon to develop at 13% and 12%, individually," IIFL said. IDFC Securities expects HUL to report 10.3% to ascend in benefit at Rs 1,728 crore. It sees deals developing at 8% to Rs 10,250 crore.

"We expect 6% volume development and factor in deals development of 11% in home consideration and 7% in close to home consideration portions. Lower advertisement spends (down 80 bps YoY) and commands over different overheads will help EBITDA edges," it stated while proposing edge at 24.3% against 23.7% the previous year. Edelweiss sees income, Ebitda, and benefit development at 7.3%, 8.6%, and 7.7% YoY.

"We anticipate that HUL's volume should grow 5% YoY on a high base of 12% YoY development. Q1FY18 was affected by GST dispatch thus the best approach to take a gander at volume development is three years' normal, which will be 5.6%. Delicate quality in the second 50% of Q4FY19 proceeded for the full quarter in Q1FY20. Provincial development is presently at a similar level as urban development. A mixed value climb of 2.5% has been taken. On EBITDA edge front, we expect 20-30 bps YoY development," the business said.

What is Hindustan Unilever origin?

Hindustan Unilever or Hindustan Unilever Limited (HUL) is an Indian subsidiary of Unilever, which sprung from its Dutch-British roots. HUL is headquartered in Mumbai.  

Who is the owner of Hindustan Unilever Limited?

HUL is owned by Unilever, its British multinational parent, headquartered in London.

What is HUL?

HUL is the acronym for Hindustan Unilever Limited.

Who are Hindustan Unilever founders?

Hindustan Unilever founders can be cited as 3 parent companies - Hindustan Vanaspati Mfg. Co. Ltd., Lever Brothers India Limited, and United Traders Limited, which were merged to form HUL.

Must have tools for startups - Recommended by StartupTalky

• Manage your business smoothly- Google Workspace

Groww Business Model - How Does Groww Earn Money?

With 2024 beginning, the millennials have already crossed their 30s, they have become parents, and have got responsibilities on their shoulders. To begin a family and have a smooth-running life, you ought to have investments and should know at least the basics of the market. Especially when you live in

The Future of Indian Hospitality: A Perfect Blend of AI and Human Touch

This article has been contributed by Mr. Ameet Patil, Tech. Entrepreneur & Founder, CEO of Ecobillz Private Limited. The Indian hospitality sector is poised for a transformative era driven by Artificial Intelligence (AI). This isn't just about flashy gadgets or gimmicks; it's about fundamentally reshaping guest experiences and operational efficiency. Fueled

PR Agency Founders Shares How Compelling Storytelling Impacts Brand Visibility

Why are stories important for businesses, and what makes them effective? That's what we're exploring next. The art of storytelling has a unique ability to catch attention and leave a lasting impression on people. To understand this better, StartupTalky connected with some awesome PR agency founders and asked them about

How PR Impacts Market Visibility in Crowded Industries: Insights from PR Agency Founders

In today's crowded industries, standing out can be a challenge for companies. Public relations (PR) plays a crucial role in enhancing market visibility and establishing a strong brand presence. But how exactly does PR make a difference, and what data backs up its effectiveness? With the Advertising market in India

Market Capitalization

As of 7 th Feb 2024, the total market cap of Hindustan Unilever is around 68.69 billion dollars.

At the beginning of 2007, the market cap of HUL was just 7.28 billion dollars. 

Whether a food and beverage product or a healthcare item, Hindustan Unilever is used by nine out of ten Indian households!

The products of Hindustan Unilever are as follows

1.  Home care products – Laundry detergents, fabric conditioners, dishwashing liquids, and toilet cleaners. (Surf Excel, Rin, Wheel)

2.  Personal care products – Soaps, shampoos, skin care products, hair care products, deodorants, oral care products. (Lux, Sunsilk, fair & lovely, Tresemme, axe and closeup, etc.

3.  Beverages – Tea. (Lipton, brooke bond)

4.  Foods – Packaged foods.

5.  Water Purifier – Pureit water purifier.

6.  Healthcare products – Health drinks. (Boost, Horlicks)

7.  Baby care products – Baby soaps, shampoos, and body lotions. (Dove, Johnson’s Baby)

8.  Cosmetic – Cosmetic and beauty products. (Lakme) 

Business Model and Marketing Strategy

The company’s wide range of products enables it to hold the top spot in the market for industrial consumer goods. They have well-known brands in several areas, and their revenue is greatly influenced by consumer recognition of their brands.

Its primary focus is innovation; a sizable amount of its revenue is allocated to creating new items and enhancing its existing line of products.

HUL has an extensive distribution network that reaches both rural and urban locations. Additionally, they invest heavily in all forms of promotion, including print, digital, and sponsorship.

They typically focus on comprehending customer demands and needs because this enables them to develop product lines that cater to consumer preferences

Branding Strategy

What’s in the name? Though everyone has heard this saying at some point in their lives, it is essential to remember that reputation and brand are everything. The company employs various graphics and logos for its many products, but its distinctive logo is printed on each one, making it easy for the general public to recognize them.

Let’s take a close look at the company’s finances to better understand its success.

Based on the aforementioned financial data, it is clear that the company’s revenue as well as profit has been increasing in the last 3 years.

Let’s now examine the company’s balance sheet year over year to examine its financial situation.

The company’s current assets have increased while the non-current assets have shown a small increase as compared to current assets.

If we compare that with the data from 2022, however, non-current liabilities have fallen and current liabilities have increased.

Shareholding Pattern

As of December 2023, the company’s promoters own over 61.9% of the company’s shares, while Domestic Institutional Investors hold about 12.3%, Foreign Institutional Investors (FIIs) account for roughly 13.64%, and the public owns 12.08% of the company’s shares.

SWOT analysis

1.  The company’s primary strength is its widespread presence in India, with more than 8 million locations where customers can purchase its product. Its supply chain is excellent, well-managed, and efficient.

2.  HUL has a long history , which they can preserve because of the money they currently spend on product development and research.

3.  The company’s financial outcomes demonstrate the impact of its excellent performance.

1.  A company’s market share might be reduced by any business that focuses on a certain product.

2.  Since more and more consumers are turning to herbal items, the corporation may suffer from the lack of any Ayurvedic or natural products in its product line.

3.  Due to its extensive product portfolio, HUL may encounter difficulties in effectively managing and allocating resources to it.

Opportunities

1.  The country’s population is likely to have more disposable income in the next few years, which will cause the FMCG sector to grow significantly .

2.  The business can quickly buy out companies that manufacture goods outside of its current product line, which will aid in product diversification .

3.  They can expand their customer base and increase revenue by utilizing e-commerce platforms.

1.  The business operates in a highly competitive market , and with the advent of globalization, numerous international brands have established themselves in the country.

2.  Their margins may be impacted by regulatory changes made by the Indian government on food packaging ingredients, labeling, etc.

3.  A downturn in the nation’s economy may affect consumer buying habits, affecting a company’s profitability.

The organization has achieved global recognition through its strategic planning and marketing approach. The economy’s overall performance determines HUL’s success, as does the population’s disposable income, which increases company profits.

We have tried to clarify every statistic and data about HUL in this case study, covering everything from their financials, history, and shareholding patterns.

However, always consider your risk tolerance and time horizon before making any investing decisions.

Frequently Asked Questions (FAQs)

Q1. Where is the headquarters of Hindustan Unilever located?

Ans. The headquarters of Hindustan Unilever is located in Mumbai, Maharashtra, India.

Q2. What was Hindustan Unilever’s former name?

Ans. Hindustan Vanaspati Manufacturing Company was the former name of Hindustan Unilever Ltd.

Q3. How many factories of HUL are there in India?

Ans. HUL currently has 29 factories nationwide.

Q4. How many businesses are part of Hindustan Unilever?

Ans. There are more than 50 brands connected with Hindustan Unilever.

Q5. What is HUL’s market capitalization ranking in the FMCG sector?

Ans. Hindustan Unilever ranked at the top among FMCG companies, having a market capitalization of around 6.05 Lakh Crore INR as of 7 Feb 2024.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

Related Posts

Adani Enterprises Case Study: Business Model And SWOT Analysis

MCX Exchange Case Study: Evolution, Products, And Financials

Jio Financial Services: Business Model And SWOT Analysis

Pocketful is an advanced trading platform that empowers traders with cutting-edge technology. we provide innovative tools and resources to make trading more accessible and practical., quick links.

• Open an Account
• Pocketful Web
• Pocketful App
• Investment Tool
• Trading Tool
• Support Portal
• Referral Program
• Calculators
• Stocks Pages
• Government Schemes
• Index Heat Map
• Stock Screener
• Mutual Funds
• Terms & Conditions
• Policies & Procedures
• Privacy Policy
• Press & Media

We are a concern of PACE Group. Pocketful is an investing platform that helps people be better investors. Pocketful unlocks the discoverability of new investment and trading ideas.

Join the waitlist.

Add your details and start your journey toward a better future with Pocketful in your investing career.

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Hindustan Unilever Limited Change location

Case studies

• Global Finance
• Personal Finance
• Youth Finance
• Entrepreneur Case Studies
• Entrepreneur Interviews
• Success Stories
• Softwares & Reviews
• Advertisements
• Digital Marketing
• Social Media
• Health & Wellness
• Home & Decor
• Infotainment
• Recreation & Entertainment
• Shopping Trends
• Travel & Tourism
• Career Tips
• Entrepreneurship
• Ethics & Social Responsibility
• BU eMagazine Editions
• Entrepreneur Stories
• Case Study Centre

Ensure Your E-Commerce Success with Flipkart Seller Login

In search of efficiency: which is the best pos system for small businesses, unveiling airtel business login: a comprehensive guide, businessman read- guide to integrating term insurance into corporate risk management, top 10 stocks: an overview and comprehensive guide for you, apps for making money: earn money easily without investment, dixon share price: a look at the consumer electronics powerhouse, yes bank share price: a roller coaster ride, navigating entrepreneurship, finance, and technology: the inspiring journey of vinod menon, empowering businesses through legal brilliance: the inspiring journey of nitika khanna, revolutionizing human capital management: tymeline’s incredible journey with shrikar nag, igniting creativity and redefining animation – the inspiring journey of sanjana bhatia with cinevire, doctrina ai review: a comprehensive guide for you, airtel night plan code: an useful guide for your night plan, free fire max download apk: best battle royale experience, budget-friendly 4 best phone under 10000 in india, leverage benefits by hiring the best seo company in india, best press release distribution platforms, digital marketing in the tech age: trends and tactics, revolutionising reality tv: glance partners with bigg boss 17, the ultimate trendsetting taper fade haircuts for men, boba tea: a deep dive into your favourite drink, best time to visit nepal: things you must know before visiting, pear body shape: everything you wanted to know, comparing prince2 vs pmp in different industry sectors, payroll herb: a comprehensive guide to payroll management, navigating the world of moocs: top platforms for data science learning, time management techniques for a productive life, enrich your music listening experience with spotify.com/pair, how to unlist from truecaller from www.truecaller.unlisting, use bsnl number check code to know bsnl mobile number, a useful guide to your whatsapp status download, allmovieshub in 2023: a case study on the popularity and legality of movie download platforms, soaring through the skies: a comprehensive case study on drone camera and their impact on photography and videography, the health benefits of olives, nutrition facts, and side effects: a comprehensive case study, know the entrepreneurial journey of shark tank india judge namita thapar.

A Case Study on Hindustan Unilever Limited (HUL)

Article Overview

Introduction

Hindustan Unilever Limited (HUL) is one of India’s wide-ranging consumer goods companies, spreading with two out of three people of Indian with above 20 wonderful categories in personal care products, home as well as meals & beverages. They provide the Company with combined volumes of an estimated four million tones and income of more than Rs. 13,000 crores. The HUL is likewise the U.S.A.’s Major exporting country; through the participation of the Indian authorities, it is recognized as a very famous gold trading center. The Anglo-Dutch company’s junior leverage holds a 52% majority stake in Hindustan Unilever Co. Ltd. In 1888, when the box was picked up during the day, the Lever Brothers started their royal business in India, cleaning soap bars enchase with the phrases like “ Made in England with the aid of Lever Brothers ” had been transferred to the Port of Kolkata and is the beginning of a generation of fast-paced product advertising and marketing of FMCG in HUL which When the Leverage Brothers India was suspended in 1933 and established in 1956, its shape changed to Hindustan Lever restrained with a combination of Lever Brothers, United buyers Ltd and Hindustan Vanaspati Mfg. Co. Ltd. The company is headquartered in Mumbai, India, powers more than 15,000 workers, and indirectly employs more than 52,000 employees. In the months of June 2007, the company changed its name to Hindustan Unilever Co. Ltd. The main motive of carrying out the case research changed into to seriously examine various characteristics of operating of these companies in popular and methods followed for accomplishing strategic pliability . These studies are carried out in stages based on evolution to Pursue strategic agility through the dynamic talents of excellent manufacturing companies. In addition, it examines popular popularity, general performance indicators, and economic indicators, as well as dynamic skill systems. an in-depth evaluation of the research has been completed and their consequences have portrayed the industrial framework concerning the research objective. 

Business Strategy of HUL

HUL’s nutrients strategy specializes in better products, better diets, better lives, and better products. Here Good products have a long history in HUL. They have got a protracted background in contributing definitely to humans’ diets. Their brands which include Knorr and Lipton have supplied healthful and terrific-tasting merchandise for over 100 years. They have got set ambitious vitamins goals which might be embedded into the enterprise and R&D approach. 

Related Article: Deepinder Goyal: Delving into the Business Strategies of Indian Food Delivery King

Nutrition Strategy of HUL

Better merchandise :.

They usually enhance the nutritional nice of our merchandise even as now they can not compromise on taste. The Lipton tea and Brooke Bond Purple Label are delicious, healthy drinks that refresh and moisturize. kids’ fit to be eaten Frozen or Ice Dessert products have strict vitamins standards. They also are gradually reducing the sodium content material of  Kissan ketchup/sauces and Knorr Soups portfolio to get the sodium benchmarks in line with Unilever’s maximum nutrition standards. 

Better Nutrition :

Through their advertising, they inspire more nutritious cuisine. They sell wholesome recipes on the product % and online. They have constantly supported and keep lending our support to mothers in making scrumptious yet wholesome food for his or her youngsters. 

Better Lives :

Their campaigns inspire human beings to undertake more healthy diets and existence, for instance, the Lipton green Tea ‘domestic to domestic, The facts of fats’ marketing campaign . 

Company facilities of HUL

Hindustan Unilever owns 45 foremost units and has over 50 1/3 birthday celebration gadgets in India with quite a number 65 brands crossing 20 awesome classes inclusive of food and healthcare , skincare, soaps, shampoos, detergents and pores, kinds of toothpaste, tea, cosmetics, coffee , water purifiers, and deodorants,  etc. Its principal portfolio consists of main household manufacturers including Lux, Surf Excel, Lifebuoy, Rin, fair & cute, Wheel,  Pond’s, Lakmé, Vaseline, Dove, Sunsilk, hospital Plus, Pepsodent, Closeup, Brooke Bond, Bru, Kissan, Kwality Walls, Knorr, Pureit and awl. The organization has over 16,000 personnel and has an annual turnover of around Rs.21.736 crore (FY 2011-2012). HUL is a subsidiary of Unilever, one of the global’s leading providers of rapid-moving consumer items with sturdy nearby as the company is rooted in more than 100 countries around the world, with annual sales in 2011 of approximately 46.5 billion euros. Unilever owns approximately 52% of HUL. 

Financial Growth of HUL

It is observed that 44% of the organization’s sales come from beauty and personal care , accompanied by using domestic Care (34%). foods & Refreshment contributes 19% and handiest three% comes from others. In terms of working income, beauty and personal care products make a contribution the most (55%), 29% get home care, and 14% and 3% from food and other things. In the skincare phase, employers occupy 54% of the market, making it the market leader. In Dishwashing Detergents, 55% of the marketplace proportion is dominated by using the agency. 47% and 37% is the respective marketplace proportion which agency owns in Shampoo and private Care phase. As of September 20, the company has issued 9.79% of the total income which has shown an increased spike in total sales as of 20th June. Internet profit Margin for the business enterprise is 14.77% in FY20, up from 13.59% in FY2019 contemporary NPM is the best of that inside the remaining 5 financial years and the 3 Yrs. Avg. internet earnings Margin is 14.26%. HUL net earnings Margin In FY20, HUL confirmed a sales increase of 1.2% from the preceding FY. 3-year CAGR is 6.16%, which means that sales growth this year is moderate. A comparable fashion is visible from the internet earnings boom, 1-12 months CAGR is eleven.46% whereas 3-yr CAGR (14.66%) is higher. HUL as a fall, look at sales profit and bottom line. The employer has completely healthy and regular coins that go with the flow from working sports. Outflow in coins waft from financing sports surged in FY20 as the agency paid a better dividend than the preceding 12 months.

The SWOT Analysis of HUL

HUL has a strong logo equity and a huge legacy as it’s miles a very antique and properly-rooted organization with a selection of famous brands and products. The organization has its presence across the duration and breadth of India with over 8 million+ retail stores in which its merchandise is to be had.

HUL runs in a completely competitive environment and there are noticeably hooked up and rising agencies that might be little product-centered and consequently, consume up the market proportion of the organization. HUL presently doesn’t have any ayurvedic or herbal merchandise in their portfolio, that’s a bad element of the business enterprise because the modern populace’s fashion is transferring to natural merchandise and lots of targeted companies are making fine use of it.

Opportunities

With increasing disposable incomes, education, and kids population, the FMCG quarter in rural and semi-urban areas is predicted to develop very rapidly compared to city regions. The agency can use this very well as it already has a brand image and an extensive chain of vendors. The organization can use its healthful cash reserve position and emblem picture legacy to acquire various merchandise to diversify its portfolio.

HUL runs in a rather aggressive surrounding, with 100% FDI allowed via the government of India and new multinational corporations placing their toes, the organization faces an excessive danger from its competitors. The agency is exceptionally dependent on uncooked cloth charges. Inflation can cut back the margins for the business enterprise because it runs in a zone that may be an excessive-quantity, low-margin one. Populace’s shift to natural and healthful products can help a few unorganized and small agencies to grow their marketplace share, which may be a risk to HUL.

Unilever has pursued this advertising and marketing approach since the consumers in developing enterprise sectors are profoundly targeted around value. it could give close-by contenders the brink, besides if an organization can find out a technique to tug in clients with deal costs just as better items. Unilever accepts the reality that productivity improvement should likewise be chargeable for improvement. Unilever’s effective picture advancement program is upheld with a huge degree of showcasing and publicizing physical games which includes a maximum of the media structures. As there are various open doors in the unfamiliar commercial enterprise sectors, yet the inclination of danger is similar to circumstances. The brilliant studies and development (R&D) wing, improved and separate product offerings, and marketplace research are terrific large additives that reason an organization to make the maximum of its latent capacity and extremely good piece of the general enterprise inside the unusual market. To keep up a more fruitful brand an incentive there should be first-rate coordination and incorporation among the emblem chiefs inside the showcasing department.

Also Read : Soaring Through the Skies: A Comprehensive Case Study on Drone Camera and Their Impact on Photography and Videography

• business case studies
• business case study
• business case study examples
• business story
• case study of company
• case study on international business
• company history
• company timeline
• consumer goods

Latest news

Thespark shop boy & girl clothes online: things you must know.

Related news

Business upside.

Business Upside has established itself as a rapidly growing news research and analysis website. It offers invaluable information and updates related to several genres that include in-depth analysis of crucial sectors of the economy. Visit Business Upside for updated and unique information related to every thing that is happening under the sun with inputs from business, finance, industrial verticals, entrepreneurship, lifestyle, science, healthcare, personal financial growth, technology, and the latest developments from across the globe.

Email For Newsletter

How to refer amazon pay know the step by step process, what happens when you force stop an app – an overview, cozy & cute thesparkshop.in:product/baby-girl-long-sleeve-thermal-jumpsuit, meesho online shopping: a great online shopping option, a comprehensive guide on kuttymovies.com 2023, why should you use techy hit tools for free, wellhealthorganic.com:ayurveda-dinner, a case study on infosys, thesparkshop.in:product/bear-design-long-sleeve-baby-jumpsuit, every whatsapp text tricks you need to know, how to resolve the iphone error “last line no longer available”, a case study on britannia, a case study on swiggy: the path to its success, a comprehensive guide on meesho online shopping all products, tilak mehta – the youngest entrepreneur of india 2021, popular categories.

• Write for Us
• Collaboration Inquiry
• Privacy Policy
• Cookie Policy
• Terms & Condition

© Business Upside India | All rights reserved

• Harvard Business School →
• Faculty & Research →
• August 2023
• HBS Case Collection

Reimagining Hindustan Unilever (A)

• Format: Print
• | Language: English
• | Pages: 16

About The Author

Sunil Gupta

Related work.

• Faculty Research

Reimagining Hindustan Unilever (B)

• Reimagining Hindustan Unilever (B)  By: Sunil Gupta and Rachna Tahilyani

Product details

Brought to you by:

Hindustan Unilever Ltd.: Creating Shared Value in a VUCA World

By: Tulsi Jayakumar

Hindustan Unilever Ltd. can trace its current-day profitable business operations in its Doom Dooma factory in the conflict-ridden northeastern state of Assam (India) to its proactive corporate…

• Length: 13 page(s)
• Publication Date: Dec 19, 2013
• Discipline: Strategy
• Product #: W13539-PDF-ENG

What's included:

• Teaching Note
• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

Hindustan Unilever Ltd. can trace its current-day profitable business operations in its Doom Dooma factory in the conflict-ridden northeastern state of Assam (India) to its proactive corporate responsibility initiatives since the start of its operations. A spurt in sales in the personal care segment has led the company to consider capacity expansion. The company needs to decide whether to continue to invest in Assam despite three challenges: operational risks posed by the area's continuing insurgency, the possibility of labour disruptions and the imminent discontinuance of fiscal incentives.

Learning Objectives

Learning Objective: To understand the nature of a volatile, uncertain, complex and ambiguous external business environment and the challenges such an environment poses for carrying out sustainable business operations. To learn about the strategic drivers of investments in zones characterized by such an environment in emerging economies. To understand the role of corporate responsibility in value creation in such a business environment. To understand the process of value creation for sustainable business operations.

Dec 19, 2013 (Revised: Dec 19, 2013)

Discipline:

Geographies:

Ivey Publishing

W13539-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

• Social Issue
• Public Figure
• Global Warming

Select Page

Case Study Of HINDUSTAN UNILEVER LIMITED (HUL)

Posted by Kaustubh Bokey | Feb 25, 2020 | Case Studies | 0 |

INTRODUCTION : 

Case Study Of HINDUSTAN UNILEVER LIMITED ​- It 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 tonnes 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. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words “Made in England by Lever Brothers” were shipped to the Kolkata harbor and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Hindustan Lever Limited 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, has an employee strength of over 15,000 employees, and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 to ³Hindustan Unilever Limited´. The objective of carrying out case studies was to critically analyze various facets of working of these organizations in general and the processes followed for achieving strategic flexibility. These case studies were conducted in a phased manner starting from the evolution of the need for achieving strategic flexibility with the help of dynamic capabilities in different manufacturing organizations. The present status, performance and financial indicators, and the process of dynamic capabilities achieved have also been studied. A detailed analysis of the case studies has been carried out and their results have depicted the industrial scenario regarding the research objective.

Business Strategy :

Our nutrition strategy focuses on better products, better diets, and better lives. a long heritage of quality products. We have a long heritage of contributing positively to people’s diets. Our brands such as Knorr and Lipton have offered wholesome and great-tasting products for over 100 years. We have set ambitious nutrition targets that are embedded into our business and R&D strategy.

HUL Approach :

We ensure our program on nutrition responds to people’s concerns and is aligned with guidance from public health authorities, such as the WHO Global Action Plan for the Prevention of Non-Communicable Diseases 2013–20.

HUL nutrition strategy encompasses :

Better products: We continually improve the nutritional quality of our products while not compromising on taste. Our tea brands Brooke Bond Red Label and Lipton are tasty, healthy beverages that are refreshing and hydrating. Our children’s Edible Ice/Frozen Dessert products meet strict nutrition standards. We are also gradually reducing the sodium content of Knorr Soups and Kissan ketchup/sauces portfolio to meet the sodium benchmarks in line with Unilever’s Highest Nutrition standards.

Better diets: Through our marketing communication, we encourage more nutritious cooking. We promote healthy recipes on the product pack and online. We have always supported and continue to lend our support to mothers in making delicious yet wholesome meals for their children.

Better lives: Our campaigns encourage people to adopt more healthy diets and lifestyles, for instance, the Lipton Green Tea ‘Home to Home, The Facts of Fat’ campaign.

Company Facilities :

Hindustan Unilever owns 45 main units and has over 50 third-party units in India with a range of 65 brands spanning 20 distinct categories such as food and healthcare, soaps, detergents, shampoos, skin care, toothpaste, deodorants, cosmetics, tea, coffee, and water purifiers, etc. Its main 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 Walls and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 – 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast-moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

Business Performance of HUL :

For the year 2017-2018, the domestic consumer business of the company grew by 20% with 11% underlying volume growth. Profit Before Interest and Tax (PBIT) grew by 27% with the PBIT margin improving 146 basis points. Profit After Tax but before exceptional items, PAT (bei), grew by 24% to Rs.2,790 crore with Net Profit at Rs.2,891 crore growing 21%. About 63% of the total portfolios of the company were touched by innovations during last year. About one million new stores were added by the company, and the coverage doubled during last year. The company’s net profit grew by 19%.

Human Resources :

The Company has a very large employee base with over 16,000 employees working for the organization. The company gives special emphasis on organizing various programs for imparting training and knowledge to the employees to enhance their skill level. One such management trainee program is the Unilever Future Leaders Programme (UFLP) which has trained managers who have later occupied leadership positions across Unilever globally.

HUL Leadership management :

The company also gives special emphasis on providing multiple forums for learning. These forums include quarterly webcasts, continuous guest sessions with industry leaders, and learning portals to ensure an informal flow of best practice sharing among employees. The employees are encouraged to work anytime or from anywhere as long as business needs are fully met and performance is determined by results, not ‘time’ or ‘attendance’. Many initiatives to support the personal vitality and work-life balance of the employees have been taken by the company. These include a daycare center for children of the employees at head office, options for games and physical fitness on campus, and a platform called ‘My Clubs’ which helps employees form collaborative interest groups. These interest groups include a food club and a dance club. The company’s Human Resource agenda for the year was focused on strengthening four key areas: building a robust and diverse talent pipeline, enhancing individual and organizational capabilities for future readiness, driving greater employee engagement, and strengthening employee relations further through progressive people practices at the shop floor.

R&D, Innovation, and technology :

Hindustan Unilever Limited has a very strong R&D base with R&D labs in Mumbai and Bangalore. These labs are significantly aligned to the company’s global R&D. The R&D programs of the company are focused on the development of breakthrough and proprietary technologies with innovative consumer propositions. The R&D team of over 750 people includes highly qualified scientists and technologists working in the areas of Health and Hygiene, Laundry, Household Care, Skin Care, Water Purification, Beverages, Frozen Dessert, and Naturals. The R&D group also comprises critical functional capability teams in the areas of Regulatory, Clinicals, Patents, Information Technology, Safety, and Open Innovation functions. > Some of the major innovations during 2011-2012 include : •Launching of Fair & Lovely Spot Corrector Pen, Pond’s White Beauty daily spot-less lightening cream with proprietary photoprotection technology delivering SPF 20 PA++ and Fair & Lovely Anti-Marks •In Skin Cleansing, the company has launched Lux and Hamam soaps, including a new variant on Lux, Lux liquid hand wash and body wash along with a range of facial cleansing products from Pond’s, Fair & Lovely, Vaseline, and Dove. •New variants of the Dove hair care range, including shampoo, and conditioner were launched. Clear shampoo was re-launched with a superior formula and a separate range for men and women. •Pepsodent Germicheck was re-launched with an improved formulation last year. Fire-Freeze, the new dual-sensation extra-freshness variant of Closeup was introduced during the year. •Food R&D of the company made a significant contribution in 2011-12 by delivering several innovations in the market. Among them was an exciting range of instant soups under Knorr with the great taste of soups and crunch of croutons. •In the Instant Coffee segment, R&D delivered two major products and packaging innovations – Bru Gold, a premium agglomerated 100% instant coffee, and Bru Exotica, a range of single-origin freeze-dried coffee, both packed in an innovative triangular glass bottle design. R&D contributed towards the re-launched formulation and packaging of Kissan tomato ketchup and Jams. •In the frozen dessert segment, the company’s flagship brand Fruttare made with real fruits was launched. A premium range of Selection Tubs was launched with a global packaging design and 3 new flavors. •R&D made a significant contribution in developing a premium range of flavored tea bags under the Taj Mahal brand and a range of ready-to-drink and ready-to-prepare ice tea under the Lipton brand. The detailed study of HUL reveals that the company has its main focus on R & D for the improvement of its products. The company does not develop technology on its own but it buys or outsources the technology. The company has recently imported packing machines from Germany. The use of oil-fired boilers has been completely stopped and now the use of biomass boilers has been started. The company is very much clear about the technological issues like what technology to buy, where to buy, and when to buy.

The company has recently formed joint marketing plans with leading customers like Walmart, Metro, and Tesco. The company created an alliance with Tata Teleservices Limited (TTSL) for the distribution of telecom products, leveraging its rural distribution footprint. The Company has enhanced the distribution alliance with TTSL to four states covering over 150 channel partners. This distribution arrangement is aimed at accelerating rural growth by enabling the Company to go deeper into rural India due to improved viability for channel partners.

Strategic Flexibility of HUL :

The company has high flexibility as far as the launching of new products is concerned. HUL has launched many new products as per the customer’s requirements in the recent past. In the Skin Care category, the company launched the vaseline men range of products with improved features and benefits with distinctive packaging and formats. In the beauty and skincare segment, the company introduced new products like Fair & Lovely Spot Corrector Pen, and Pond’s White Beauty daily spot-less lightening cream.

The business initiatives taken by HUL depict their success story against competitors. The reduction of market share is unavoidable due to tough competition, but still, HUL has been able to be a market leader in the areas like Health and Hygiene, Laundry, Household Care, Skin Care, Water Purification, and Beverages. The strong in-house R&D base, implementation of information and communication technology in a phased manner, and strong support of vendors and suppliers have helped the company to achieve different dimensions of strategic flexibility, quality, productivity, cost-cutting, and achieving a short delivery time of new or modified products. The company needs to further enhance its technological competence and continually employ VA/VE techniques in-house and at vendors’ places to further improve the various business performances.

Performance :

Major factors of importance for achieving strategic flexibility that needs to be closely monitored in the case of HUL with equal importance are enhancing technological capabilities, strengthening human resources, expanding the vendor network, and encouraging in-house R & D.

The snapshot of the achieved milestone at HUL :

1888 •Sunlight soap Bar was introduced in India. 1895 •Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. 1902 •Pears soap introduced in India 1903 •Brooke Bond Red Label tea launched 1905 •Lux flakes introduced. 1913 •Vim scouring powder introduced 1914 •Vinolia soap launched in India. 1918 •Vanaspati was introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs. 1922 •Rinso soap powder was introduced. 1925 •Lever Brothers get full control of North West Soap Company. 1926 •Hartogs registers Dalda Trademark. 1930 •Unilever is formed on January 1. 1931 •Hindustan Vanaspati Manufacturing Company registered on November 27 •Sewri factory site bought. 1932 •Vanaspati manufacture starts at Sewri. 1933 •Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. 1934 •Soap manufacture begins at Sewri factory in October; North West Soap Company’s Garden Reach Factory, Kolkata rented and expanded to produce Lever brands. 1935 •United Traders incorporated on May 11 to market Personal Products. 1939 •Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand. 1941 •Agencies in Mumbai, Chennai, Kolkata, and Karachi took over. 1943 •Personal Products manufacture begins in India at Garden Reach Factory. 1947 •Pond’s Cold Cream launched. 1951 •Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories were bought. 1956 •Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation. 1957 •Unilever Special Committee approves research activity by Hindustan Unilever. 1958 •Research Unit starts functioning at Mumbai Factory. 1959 •Surf launched. 1962 •Formal Exports Department starts. 1963 •Head Office building at Backbay Reclamation, Mumbai opened. 1964 •Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched. 1965 •Signal toothpaste launched; Indian shareholding increases to 14%. 1966 •Lever’s baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched. 1967 •Hindustan Unilever Research Centre opens in Mumbai. 1968 •Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins. 1969 •Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched 1971 •Clinic shampoo launched. 1974 •Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed. 1975 •Ten-year modernization plan for soaps and detergent plants; Jammu project work begins; Close-up toothpaste launched. 1976 •Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. 1977 •Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%. 1978 •Fair & Lovely skin cream launched. 1979 •Sodium Tripolyphosphate plant at Haldia commissioned. 1982 •Government allows 51% Unilever shareholding. 1984 •Foods, Animal Feeds businesses transferred to Lipton. 1986 •Agri-products unit at Hyderabad starts functioning – first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production. 1988 •Launch of Lipton Taaza tea. 1991 •Surf Ultra detergent launched. 1992 •HUL was recognized by the Government of India as a Star Trading House in Exports. 1993 •The erstwhile Brooke Bond India acquires the Kissan brand from the United Breweries Group, giving HUL an entry into the foods business. 1994 •HUL’s largest competitor, Tata Oil Mills Company (TOMCO), merges with the company, the biggest such in the Indian industry till that time. 1995 •HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark Corporation form a 50:50 joint venture – Kimberley-Clark Lever Ltd. – to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and Milkfood 100% brand names and distribution assets. HUL introduces Walls. 1996 •HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint ventures – Lakme Lever Ltd.; HUL enters branded staples business with salt; HUL recognized as Super Star Trading House. 1996 •Merger of Group company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded atta; Surf Excel launched. 1997 •Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up. 1998 •Group Company, Pond’s India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories, and Lakme Ltd.’s 50% equity in Lakme Lever Ltd. 2000 •HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India. 2002 •HUL enters the Ayurvedic health & beauty center category with the Ayush range and Ayush Therapy Centres. 2003 •Launch of Hindustan Lever Network; acquisition of the Amalgam Group 2004 •Launch of “Pureit” water purifiers 2006 •Brookefields food operations moved to Mumbai 2007 •Company name formally changed to Hindustan Unilever Limited after receiving the approval of shareholders during the 74th AGM on 18 May 2007 2010 •HUL head office shifted from the landmark Lever House, at Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. 2012 •HUL’s state-of-the-art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. •Customer Insight & Innovation Centre (CiCi) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. •Won the Golden Peacock Occupational Health and Safety Award for 2012 in the FMCG category for its safety and health initiatives and continuous improvement on key metrics

“Empowering women in rural India. Project ‘Shakti’ is a program that wholly embraces the Unilever philosophy of doing well by doing good.” –     Hindustan Unilever Limited (HUL).

Read More: Best Swiggy Case Study | Marketing Strategy & business model

About The Author

Kaustubh Bokey

Always, I Draw my mind on Canvas. - [email protected]

Related Posts

Indian Premier League (IPL)

April 7, 2020

Case Study of Zomato | Zomato Business Model

March 14, 2020

Swiggy Case Study | Swiggy Marketing Strategy & Business Model

March 16, 2020

Best Fitness Center in Nanded

February 2, 2022

Leave a reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search for: Search Button

RECENT NEWS

• Health & Wellness
• Airtel DLT Support Number | Email | Person | Timing
• INDIAN PREMIER LEAGUE
• Sofortüberweisung in Online-Casinos: Ein umfassender Leitfaden
• Valentine’s Day Quote’s
• Case Studies
• CoronaVirus
• Current Affairs
• Customer care
• Digital Marketing
• Entertainment
• General Knowledge
• Tiger Reserve
• Uncategorized

Recent Comments

• Latonya on Bandipur Tiger Reserve: Your Journey into Tiger Country
• Savitribai Phule Jayanti - Biography / Massages / Quotas / Images.... on Swami Vivekanand Punyatithi
• Safe Proxies on World Nature Conservation Day Quotes
• Archie Halligan on Surajkund Crafts Mela
• Braided Hairstyles on Paper Bag Day Quotes

Announcements Updates: Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

Hindustan Unilever Stocks Updates: Hindustan Unilever Stock Price History

Hindustan unilever stocks updates: hindustan unilever bonus updates, hindustan unilever stocks updates: hindustan unilever sees minor decline in stock price, sma7 reflects stable trend, hindustan unilever stocks live updates: hindustan unilever sees slight dip in price, investors watch market trends, hindustan unilever stocks live updates: hindustan unilever sees minor decline in stock price, 1-year returns show negative trend, hindustan unilever stocks live updates: hindustan unilever dividend updates, hindustan unilever stocks live updates: hindustan unilever sees minor decline in stock price, sma3 indicates stability, hindustan unilever stocks live updates: hindustan unilever sees marginal decline in stock price, reports 1.65% 3-year returns, hindustan unilever stocks live updates: hindustan unilever sees minor decline in stock price, showing lower volatility in market, hindustan unilever stocks live updates: hindustan unilever sees marginal decline in stock price with sma5 showing positive momentum, hindustan unilever stocks live updates: hindustan unilever news, hindustan unilever stocks live updates: hindustan unilever shows resilience with 5-year returns of 35.93% despite minor dip in current price, hindustan unilever stocks live updates: hindustan unilever sees marginal decline in stock price, weekly returns positive, recos updates: prabhudas lilladher issues positive recommendation for hindustan unilever , predicts 7.16% upside potential, hindustan unilever stocks live updates: hindustan unilever sees minor decline with ema7 holding firm at rs 2341.13, hindustan unilever stocks live updates: hindustan unilever sees minor dip in price with ema3 holding steady at 2344.07, hindustan unilever stocks live updates: hindustan unilever stock details, hindustan unilever stocks live updates: hindustan unilever sees minor decline in price with average daily volatility holding steady, moving averages updates: hul breaks above 100-day sma, price at rs 2383.25 with 0.03% daily gain, hindustan unilever stocks live updates: hindustan unilever closes at rs 2382.5 with -0.48% 3-month return, hindustan unilever stocks live updates: hindustan unilever closes at rs 2382.5 with 2.68% weekly return, hindustan unilever stocks live updates: hindustan unilever closes at rs 2382.5 with 6-month beta of 0.43: a beacon of stability in market volatility, hindustan unilever stocks live updates: hindustan unilever records strong 1-month return of 5.29% at previous day close of rs 2382.5, hindustan unilever stocks live updates: hindustan unilever closes at rs 2382.5 with 0.66% gain and trading volume of 1,614,718 shares.

Comments are moderated and will be allowed if they are about the topic and not abusive.

Characters remaining ( 1500 )

To post this comment you must

Log In/Connect with:

Fill in your details:

Share this comment:.

Please answer this simple math question.

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Reason for reporting:

Your Reason has been Reported to the admin.

• Tata Steel share price
• 174.85 -0.37%
• HDFC Bank share price
• 1,530.50 0.17%
• ITC share price
• 428.90 -0.60%
• State Bank Of India share price
• 830.90 -0.38%
• Infosys share price
• 1,466.20 -0.37%

NEET UG 2024 answer key expected soon at exams.nta.ac.in/NEET/. How to download, challenge the solution

Neet ug 2024 answer key: the nta is expected to release the provisional answer key of the national eligibility cum entrance test undergraduate (neet ug) exam 2024 anytime soon. according to some media reports, the neet ug answer key 2024 is likely to be released tomorrow, i.e. may 28, 2024.

NEET UG 2024 Answer Key: The National Testing Agency (NTA) is expected to release the Provisional Answer Key of the National Eligibility cum Entrance Test Undergraduate (NEET UG) exam 2024 anytime soon. According to some media reports, the NEET UG Answer Key 2024 is likely to be released tomorrow, i.e. May 28, 2024. However, NTA has not made any official announcement regarding the expected release date and time of the NEET Answer Key 2024.

Candidates can download the answer keys from the official website of the NTA NEET at exams.nta.ac.in/NEET/, once it is released. NTA NEET will host the NEET UG Answer Key 2024 for all the question paper codes.

Along with the NEET UG Answer Key 2024, the NTA will also upload the scanned images of OMR sheets of nearly 24 lakh students (over 10 lakh male, 13 lakh female) who wrote the medical entrance test in 557 cities across the country and 14 overseas cities on May 5, 2024.

Also Read | DU PG Admission 2024: Delhi University extends registration till June 5

As per the notification, the NTA is supposed to release the results of the NEET UG 2024 exam on June 14.

The NEET UG answer key helps a candidate evaluate his performance in the exam and estimate his potential score. By comparing his answers with the answer key, a student can identify the mistakes he may have committed during the exam. This includes errors in understanding questions, calculation mistakes, or misinterpretation of concepts.

Also Read | JNU PG Admission 2024: Last date to register for PG courses tomorrow

Neet ug answer key 2024: a step-by-step guide to download the answer key.

• Go to the official website of NTA NEET: exams.nta.ac.in/NEET OR neet.ntaonline.in
• Click on ‘NEET UG 2024 OMR Sheet’ and " NEET UG 2024 Provisional Answer Key " link available on the homepage
• A new window will open; enter your login credentials, such as Application Number and Date of Birth.
• The NEET UG 2024 OMR Sheet and NEET UG 2024 Provisional Answer Key will be displayed on the screen
• Download the NEET UG 2024 OMR Sheet and Provisional answer key
•  Print and save it for further reference

NEET UG Answer Key 2024: Answer Key Challenge Fee

The NEET UG 2024 answer key can be challenged with a fee of ₹ 200, which is non-refundable. Candidates must pay the required fee to object to the response within the stipulated time.

Also Read | CUET UG 2024: Admit card for May 29 exam in Delhi, Silchar centres out

Neet ug answer key 2024:  how to challenge neet 2024 answer keys.

• Go to the official website of NEET 2024: exams.nta.ac.in/NEET OR neet.ntaonline.in
• Click ‘Apply for Answer Key Challenge’
• Select the Test Booklet Code
• Login with your Application Number, DOB and Security PIN
• Click on submit
• The questions will be displayed in sequential order
• If you wish to challenge, you can use any one or more of the options given in the next four columns by clicking the check box
• Upload the supporting documents, select ‘Choose File’ and upload
• Click ‘Save your Claim’ 
• A new window will open, displaying your challenges
• Click on ‘Save your Claim and Pay Fee Finally’
• Pay ₹ 200 through Credit/Debit Card, Net Banking or Paytm
• Save and print the NEET 2024 Answer Key Challenge receipt

The NEET UG entrance exam was conducted in the pen-and-paper (offline) mode on May 5 across 571 cities in India and 14 cities abroad from 2 pm to 5:20 pm, spanning 3 hours and 20 minutes.

Also Read | ICSI CS 2024 June admit card out at icsi.edu. Steps to download the hall ticket

A total of 23,81,833 students have registered for NEET UG 2024. The exam was conducted for undergraduate medical programmes in 645 medical, 318 dental, 914 AYUSH and 47 BGVSc and AH colleges nationwide.

Milestone Alert! Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Wait for it…

Log in to our website to save your bookmarks. It'll just take a moment.

You are just one step away from creating your watchlist!

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

Your session has expired, please login again.

Congratulations!

You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.

Subscribe to continue

This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp

Open Demat Account and Get Best Offers

Start Investing in Stocks, Mutual Funds, IPOs, and more

• Please enter valid name
• Please enter valid mobile number
• Please enter valid email
• Select Location

I'm interested in opening a Trading and Demat Account and am comfortable with the online account opening process. I'm open to receiving promotional messages through various channels, including calls, emails & SMS.

The team will get in touch with you shortly