operation fmcg

7/29/2019 operation fmcg

1/22

OPERATIONS MANAGEMENT

FMCG FIRM

A study on Hindustan Unilever Ltd.


2/22

ABOUT

HUL was known as HLL earlier

Company HUL is a subsidiary of the

U.K. based Company Transnational

Unilever.

Indias one of the biggest exporter.

Uses the best quality of raw materials &

latest technology.

Having 6 type of products categories

i.e. Home , Personal care products ,Foods

& Beverages , nutrition, water, health-

hygiene and beauty.


3/22

Hul products:-


4/22

Vision:-


5/22

Mission:-

They bring safety on top of mind for all

employees and will integrate it with all business

processes and ensuring a safe and healthy work

environment.

HUL AHEAD OF OTHER FIRMS:-


6/22

Operations Process

Demand

Planning

Manufacturing

Supply Chain

Sales and

Marketing

CustomerService


7/22

MARKETING STRATEGIES Urban

Focuses on short supply chainfor distribution.

Meet every need of people everywhere.

Build segments & market for the future

Emphasis on Direct selling, Franchisee to

reach everyone

Rural

For long term benefit HUL started PROJECT

STREAMLINE in 1997.

Appointed 6000 sub stockists that directlycovers about 50000 villages & 250 million

customers.

Integrate economic, environment, & social

objective with Business Agenda.


8/22

PROMOTIONAL AND DISTRIBUTION

STRATEGIES

PROMOTION Project Shakti

Hindustan Unilever Network (HUN)

Lifebuoy Swasthya Chetana

Out-of-Home Health and Beauty services

DISTRIBUTION Mission is to meet the everyday needs of people everywhere

7,000 redistribution stockists covering about one million retail

outlets Provide tailor-made services to its channel partners

Powered distribution RSNet online interaction on orders,dispatches, information sharing and monitoring

Rural distribution through Projects Streamline and Shakti


9/22

HUMAN RESOURCES Attracting, Motivating and Retaining the Best Talent

Fair day's work

36,000 employees, including about 1,400 managers

200,000 indirect jobs

Environment for Empowering the people

The manager works in different functions across villagesand international locations

Progress is based on: Merit

Ability and Performance Adhering to the Company's Code of Business Principles

The values of Truth, Courage, Action and Caringform the bedrock of these business principles

Creating a new generation of Industrial Workmen


10/22

FINANCE STRATEGIES

Company launching new products

and brand extensions with

investments being made

towards brand-building andincreasing its market share

High dividend yield, steady growth

and strong market standing in its

product categories

Sustained improvement in cost saving

program

Tight focus on discretionary costs.


11/22

HINDUSTAN UNILEVER PLANT

(LOTE, CHIPLUN)

Detergents and Soaps division

Plant Location

Plot No. B-7, Lote ParshuramMIDC,Khed Taluka,Dist. RatnagiriCity: ChiplunState: Maharashtra

Pincode: 415722 Coordinates: 1737'1"N 73

28'35"E


12/22

STRATEGIC LOCATION

Both sides of Mumbai-Goahighway

Twelve kilometers from ChiplunTaluka

Seventeen kilometers fromKhed Taluka

Seven kilometers from ChiplunRailway Station

Near to Koyna Dam andHydraulic Power Station

Accessible to Pune, Satara andKolhapur


13/22

MIDC

HUL could get numerous advantages by taking a plot of land in anyof the industrial areas of MIDC.

Plot in recognized Industrial Zone with approach road facility

Location in a well laid out industrial neighbourhood.

Plots of different sizes to meet the requirements of differentindustries

Reasonable premium rates in the developed areas and subsidizedrates in the developing areas with a guarantee of clear title.

No separate non-agriculture (N.A.) permission of zoning clearance isnecessary.

Adequate filtered water supply is assured.

MIDC industrial area will not be included within the limit of anyMunicipal Council or Corporation at least for 25 Years.


14/22

LIFEBUOY

Personal wash

Oldest product

Main raw material Glycerin

Palm Oil Market Leader since 117 years

Discontinued use of Carbolic Acid

Earlier used for washing clothesand cleaning floors

Changed to bathing andhandwash soap in 1933


15/22

SURF EXCEL

Fabric wash

Surfactant

Chemical- Sulphonate Available in powder and bar

Used for cleaning fabric


16/22

PLANT CAPACITY

Best Unit in India

110,000 Tonnes per annum

45% Soap 55% Detergents

Waste management system

Reduction of CO2 emissions Used waste to burn fuel


17/22

SOURCING OF RAW MATERIALS

Sustainable sourcing Palm Oil from local farmers,

imports and agricultural processingunits

Chemicals imported and sourced

from local MIDC companies Low cost of sourcing

Green Certificates in sourcing


18/22

SOAP MAKING PROCESS

Splitting

Mixing

Cooling

Milling

Finishing

DETERGENT MAKING PROCESS

Agglomeration

Drying

Pulverizing


19/22

FINANCIAL ANALYSIS

BALANCE SHEET

Increase in Equity Share Capital

Increase in Profits

Increase in Reserves and surplus Increase in Current Investments

Increase in Net Assets

Income Statement

Increase in Sales

Increase in Expenses

Increase in EPS


20/22

Graphical Representation of Sales

Particulars Percentage distribution of SALESSoaps, Detergents & Household Care 48%

Personal products 31%

Foods 19%

Chemicals, Agri, Fertilisers & Animal Feeds 0%

Others 2%

48%

31%

19%

2%

0%

Percentage wise distribution of salesSoaps, Detergents & Household Care

Personal Products

Foods

others

Chemicals, Agri, Fertilisers & Animal

Feeds


21/22

Sustainability : reducing carbon footprint

- Target of 25% reduction in CO2 from energy in manufacturing

operations per tonne of production by 2012, against a baseline of

2004 by using agri-waste to fuel its boilers in factories

- New process of manufacturing soap based on 'Plough Share Mixer'

technology . Eliminates the need for steam in soap making. Since

soaps are a sizeable part of business, the new technology cuts

carbon emissions by 15,000 tons per year

Chiplun factory received the CII Award 2011 for the efforts being

taken to enhance Safety & Health initiatives

2011- Golden Peacock Award for CSR and Golden Peacock Award for

Environmental Management

Water Conservation and Harvesting, Aasha Daan,

Ankur, Sanjivani, Lifebuoy Swasthya Chetana,

Project Shakti

CORPORATE SOCIAL RESPONSIBILITY


22/22

THANK YOU

operation fmcg

Documents