PREFACE

The first real insight of an organization for management student comes only during his
preparation of project work because student first interacts with real practical work. This is first
introduction to industry and its working. This project work synthesize the theoretical concept
learn in the class room and its practical orientation in organization.
In my project I have studied the A comparative study of customer satisfaction with services
provided by private and public sector bank.
The First chapter introductory stage of this research report is based on introduction of Public
sector and private sector bank, its objective, importance, scope & limitation.
The Second chapter deals with research methodology. The process of carrying out the whole
research problem is defined in it. It contains information about the objectives of the research,
methods of data collection, sampling and sample design.
The Third chapter is data analysis and interpretation. This is the most important section of the
project work. This section contains the analysis of all the data collected so far and they are
interpreted to produce the final conclusion. It contains all the tables and charts which depicts the
result.
The four chapter contains the finding and recommendation of the research. This is based on the
data analyzed and interpreted in the previous chapter. This is the most important section of the
research report for a report is evaluated on the validity ad correctness of findings.
The fifth chapter depicted conclusion which concludes the whole report, that is, gives a brief
description of the process employed so far. And later chapters contain bibliography. Which

describes the list of sources from where the matter and information is collected? It contains the
list of books, authors, web sites use etc.

ACKNOWLEDGEMENT
Many thanks to the God, who has sent me on this earth and by mercy of him, I would be
able to accomplish this research.
A person who has always encouraged me towards positive and used to say Nothing can be
impossible if you are working hard with heart and soul. The Word regard is very small for
him and I dont know what word will be appropriate for him, that person is my elder Brother
Md. Moaz Ansari.
I express my deep sense of gratitude and regards to Mr. Vijay Kumar Pandey
(Lecturer, Dept. of management studies, T.E.R.I., P.G. College affiliated to Veer Bahadur
Singh Purvanchal University) under whose guidance I completed this project, I am thankful to
her valuable guidance, gentle encouragement and pains she took in guiding me throughout the
study.
Some of my Friend, Dipika, Priti, and anshu. Whose suggestion for what is Right or
Wrong has shown my aim and objectives of life.
Again, I heartily express my regard to all the above person mentioned and pray to the
God May live them long.

Juhi Pandey
BBA 6th Sem.

INTRODUCTION
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians with over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. The companys Turnover is Rs. 20, 239 crores
(for the 15 month period January 1, 2008 to March 31, 2009).
Hindustan unilever limited is a subsidiary of Unilever, one of the worlds leading suppliers of
fast moving consumer goods with strong local roots in more than 100 countries across the globe
with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL.
Hindustan Unilever was recently rated among the top four companies globally in the list of
Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership
with Fortune magazine and the RBL Group. The company was ranked number one in the AsiaPacific region and in India.
The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is
to add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal
care, with brands that help people feel good, look good and get more out of life. It is a mission
HUL shares with its parent company, Unilever, which holds about 52 % of the equity.
Heritage
HULs heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in
India. Local manufacturing began in the 1930s with the establishment of subsidiary companies.
They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan
Unilever Limited on June 25, 2007). The company created history when it offered equity to

Indian shareholders, becoming

the first foreign subsidiary company to do so. Today, the

company has more than three lakh resident shareholders.

HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk,

Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls are household names across the country and span many categories - soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in
over 35 factories, several of them in backward areas of the country. The operations involve over
2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets
including direct reach to over 1 million.
HUL has traditionally been a company, which incorporates latest technology in all its operations.
The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in
1958
Doing well by doing good
HUL believes that an organisations worth is also in the service it renders to the community.
HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases
and water footprint.It is also involved in education and rehabilitation of special or
underprivileged children, care for the destitute and HIV-positive, and rural development. HUL
has also responded in case of national calamities / adversities and contributes through various
welfare measures, most recent being the relief and rehabilitation of the people affected by the
Tsunami disaster, in India.

HULs Project Shakti is a rural initiative that targets small villages populated by less than 5000
individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural women,
thereby improving their livelihood and the standard of living in rural communities. Shakti also
provides health and hygiene education through the Shakti Vani programme.The program now
covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to
100,000 villages and directly reaching to over three million rural consumers.
HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme
endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down
the incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676
villages across India.
If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded
in identifying itself with Indian aspirations and needs in every walk of life.

Type

Public company BSE: 500696

Industry

Fast Moving Consumer Goods FMCG)

Founded

1933

Headquarters Mumbai, India

Key people

Harish Manwani (Chairman), Nitin Paranjpe (CEO

and Managing Director)

Products

Home & Personal Care, Food & Beverages

Revenue

17,873.44 crore (US$3.97 billion) (2009-2010)

Net income

2,202.03 crore (US$488.85 million)

Employees

Over 65,000 direct & indirect employees

Parent

Unilever Plc (52%)

Website

www.hul.co.in

History of HUL
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
These three companies merged to form HUL in November 1956; HUL offered 10% of its equity
to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds
52.10% equity in the company. The rest of the shareholding is distributed among about 360,675
individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had
launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.

Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile
Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977
Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold
through an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HUL has vigorously responded to the stimulus of economic growth.
The growth process has been accompanied by judicious diversification, always in line with
Indian opinions and aspirations. The
liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and
the Group's growth curve. Removal of the regulatory framework allowed the company to explore
every single product and opportunity segment, without any constraints on production capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company
(TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata
company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market
Lakme's market-leading cosmetics and other appropriate products of both the companies.
Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the
joint venture to the company.
HUL formed a 50-50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has
also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the

largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures
HUL's products like Soaps, Detergents and Personal Products both for the domestic market and
exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and
Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with
significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB
Group and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies
of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India
merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and
ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the
Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic
alliance with the Kwality Ice-cream Group families and in 1995 the Milk-food 100% Ice-cream
marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies
had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses,
besides a common distribution system since 1993 for Personal Products. The two also had a
common management pool and a technology base. The amalgamation was done to ensure for the
Group, benefits from scale economies both in domestic and export markets and enable it to fund
investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public sector
undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of
the company's wheat business. In 2002, HUL acquired the government's remaining stake in
Modern Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam
Group of Companies, a leader in value added Marine Products exports.
HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was
started in 2001. It is a rural initiative that targets small villages populated by less than 5000
individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits
business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages
across 15 states and reaching to over 3 million homes.
In 2002 In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the
Ayush product range and Ayush Therapy Centr es. Hindustan Unilever Network, Direct to home
business was launched in 2003 and this was followed by the launch of Pure-it water purifier in
2004.
In 2007, the Company name was formally changed to Hindustan Unilever Limited after
receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and
Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which
crossed the Rs.2,000 crore sales milestone in 2008.
On 17th October 2008, HUL completed 75 years of corporate existence in India

Vision of Hindustan unilever limited

Unilever products touch the lives of over 2 billion people every day whether that's through
feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and
clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
A clear direction
The four pillars of our vision set out the long term direction for the company where we want to
go and how we are going to get there:
We work to create a better future every day
We help people feel good, look good and get more out of life with brands and services that are
good for them and good for others.
We will inspire people to take small everyday actions that can add up to a big difference for the
world.
We will develop new ways of doing business that will allow us to double the size of our
company while reducing our environmental impact. We've always believed in the power of our
brands to improve the quality of peoples lives and in doing the right thing. As our business
grows, so do our responsibilities. We recognise that global challenges such as climate change
concern us all. Considering the wider impact of our actions is embedded in our values and is a
fundamental part of who we are.
Purpose & principles of hul

Our corporate purpose states that to succeed requires "the highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and the environment on
which we have an impact."
Always working with integrity
Conducting our operations with integrity and with respect for the many people, organisations and
environments our business touches has always been at the heart of our corporate responsibility.
Positive impact
We aim to make a positive impact in many ways: through our brands, our commercial operations
and relationships, through voluntary contributions, and through the various other ways in which
we engage with society.
Continuous commitment
We're also committed to continuously improving the way we manage our environmental impacts
and are working towards our longer-term goal of developing a sustainable business.
Setting out our aspirations
Our corporate purpose sets out our aspirations in running our business. It's underpinned by our
code of business Principles which describes the operational standards that everyone at Unilever
follows, wherever they are in the world. The code also supports our approach to governance and
corporate responsibility.
Working with others

We want to work with suppliers who have values similar to our own and work to the same
standards we do. Our Business partner code, aligned to our own Code of business principles,
comprises ten principles covering business integrity and responsibilities relating to employees,
consumers and the environment.

MARKETING STRATEGYOF HINDUSTAN UNILEVER LIMITED

1)HULS NEW GROWTH STRATEGY:

After having fought a bitter price battle for market share with its rivals, Hindustan Unilever Ltd
(HUL), Indian subsidiary of the Anglo- Dutch consumer goods company Unilever Plc, is now
working on a new growth strategy for its laundry business.
Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passe, insists
Sudhanshu Vats, category head, home care. Our strategy for growth, now is focused on product
innovation, new consumer and retail trends and aggressive marketing and promotions, he said.
This comes even as Unilever is scouting for a potential buyer for its laundry business in the US.
HUL says it is quite upbeat about the segment and says the laundry segment is one of its key
growth areas. We have done key innovations across the product portfolio and it is working for
us, says Vats. We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart
Srimatiwhich was rolled out in 2006is also on the right track.
HULs market share in the laundry segment grew to around 37.8% in the quarter ended June
from 35.5% in the same period last year, according the market research firm ACNielsen.
However, this time, the increase was not at the expense of price war with its multinational rival
Procter & Gamble Co. P&G also gained 0.5 percentage points, up to a 7.6% share. Nirma Ltd,
the Ahmedabad- based manufacturer, however, saw its market share dip by 1.7% percentage
points to 13.5%.
Wheel, a value brand that, according to Vats contributes around 50% of HULs laundry segment
revenues, increased its market share by 2 percentage points in the same period, with a total share
of about 18%.

According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in 2006 and
rose 8.4% over 2005. HUL doesnt report its laundry revenues separately but puts them under the
soaps and detergent category.
In 2006, HULs soaps and detergents segment contributed around Rs5,596 crore to the
companys total sales of Rs12,103 crore. Laundry has been an attractive segment in the past and
is likely to keep growing in the near future. The recent price war between companies led to
erosion in their profitability but now, the industry is stabilizing, says Unmesh Sharma, an
analyst at Macquarie Securities here.
According to Vats, the laundry business is witnessing a surge in demand from cities and HUL is
focusing on Tier I and II cities to tap that demand.

FIVE PS OF MARKETING
Product

Satisfaction suffices. But delight dazzles the average company will compete for customer by
conforming to her expectation consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step additional benefits which she would never
have imagined possible. Hindustan Unilever Ltd(HUL) offer such product. The wide variety
products offered by the company include:
The companys popular products include:
Bathing soaps : Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and Rexona
Laundry items : Surf Excel, Rin and Wheel
Skin care: Fair & Lovely, Ponds and Vaseline
Hair care: Sunsilk and Clinic
Oral care: Pepsodent and Close up
Deodorants : Axe and Rexona
Colour cosmetics : Lakme
Ayurvedic: Ayush
Tea: Brooke Bond and Lipton
Coffee : Bru
Foods: Kissan, Annapurna and Knorr
Ice cream:kwality walls

Pricing

Make no mistake. Second P of marketing is not another name for blindly lowering prices and
relying on this strategy alone to increase sales dramatically.
The strategy used by Hindustan Unilever Ltd(HUL) is for matching the value that customer pays
to buy the product with the expectation they have about what the production is worth to them.
Hindustan Unilever Ltd(HUL) has launched various products which cater to all customer
segments. So every customer segment has different price expectation from the product.
Therefore maximizing the returns involves identifying right price level for each segment, and
then progressively moving through them.

Physical Distribution
Place BRAND ISNT THE ONLY ANY MORE.Marketers and finance manager need a new
term to evaluate their business:
Distribution Equity. It takes much more time and effort to build, but once built, distribution
equity is much together to erode.
The fundamental axiom of Indian consumer market is this:
You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block,
swamp prime television with best Ads, but the end of it all, you would be know of selling your
products. The cardinal task before the Indian market is managing is to shoe-horn its product on
retail shelves. Buyers are paying for distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in India? With technology and
competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique
product differentiation for ling period. In a product and price parity situation, the brand that sells
more is the one that reaches the highest number of customers.
India The operations involve over 2,000 suppliers and associates. HUL's distribution network,
comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the
entire urban population, and about 250 million rural consumers.television has already primed and
population for consumption, and the marketer who can get to the to the consumer ahead of
competition will give a hard to overtake lead.
But getting their means managing wildly different terrains-climate, language, value system, life
style, transport and communication network. And your brand equity isnt going to help when it
comes to tackling these issues. Own distribution network consist of clearing and forwarding
(C&F) agents & distribution stockiest. This network of distribution can either contact
wholesalers and which in turn retailers or the distributors can contact to the retailers directly.
Once the stock product reaches retailers, the prospective customers can have access to the
product. Hindustan Unilever Ltd(HUL) distributes the product in the manner stated above.
Hindustan Unilever Ltd(HUL) distribution network has expanded. Beside use of improved
logistics, Hindustan Unilever Ltd(HUL) is also attempting to improve the distribution quality. To
address the issue of product stability, it has installed visi colors at several outlets. This helps in
maintaining consumption in summer when sales usually drops due to the fact that the heal effects
product quality and thereby off takes.

Looking at the low penetration of few products, a distribution expansion would itself being
incremental volume. The other reason is arch rival Procter & Gamble Co. reaches more than a
million retailers. This increase in distribution is going to be accompanied by reduction in channel
costs. Hindustan Unilever Ltd(HUL) marketing costs, at 18% of total costs, is much higher than
Procter & Gamble Co. The company is looking to reduce this parity level. At Hindustan Unilever
Ltd(HUL), they believe that selling FMCG is it like selling soft drinks.
Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to, and
be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly
explicit. It often both attracts and generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality that good advertising shares with
much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first ensure exposure,
grab her attention evoke her comprehension, grab her acceptance and then extract retention
competing with thousands of other units of communication trying to do the same.
Finding showed that the adults felt too conscious to be seen consuming a product actually meant
for children. The strategic response address the emotional appeal of the band to the child within
the adult.Naturally, that produced just the value vacuum that Hindustan Unilever Ltd(HUL)was
looking to fill.
Thereafter it was the job of the advertising to communicate customer the wonderful feeling that
he could experience by re-discoursing the careful, unself conscious, pleasure seeking child
within himself a graft these feeling onto the Ad campaign like hasso to khul k hasso for

close up, cream bathing bar for dove soap and daag ache hai for surf excel have been
sure shot winner with the audience.
It has also launched Pureit, a home water purifier which supplies drinking water without
boiling/need of electricity , As well as outdoor and radio ads, ad agency contract has created
communication for cinemas and even ATM machines for the brand.
All ICICI s ATM a message flashes on the screen as soon as customer insert his ATM card.
Something familiar is planned for phone-book as well. In cinemas, Hindustan Unilever(Ltd)has a
message on-screen just before the lights are dimmed to give them a chance to get their product
There will also be after dinner sampling in restaurants to begin with, 30 catteries in Mumbai
have been selected. Ad spend in 2000 was about 14% of sales and the management said that
plans to maintain as spend at this level in the current year also.
And since any discussion today would be incomplete without mention e word, the management
plans to tap this new channel of marketing. Beside the company website (i.e.
www.unilever.com), that the company has launched, it had also entered into various marketing
relationship with other portals, specially targeted during festivals and events such as Valentines
day, etc.
Its a combination of spiffing up its key brand, researching and improving the newer products
that havent taken off,supported with high ad spends that Hindustan Unilever(Ltd) hopes will
see it emerges stronger after the current slowdown, as well as expand the market.

Positioning
In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the
1980s, consumers began to demand more for same, and the discounting era grew strong.
Todays consumer demanding more for less, and the winner will be that super value
marketers. Some of todays most successful companies recognize those customers are more
educated and able to recognize true customer value
Positioning is simply concentrating on an idea or even a word defines that company in the
mind of the consumer. It is more efficient to market one successful concept to one large group of
people than 50 product or service ideas to 50 separate group
Positioning is a must when customer attitude have changed and product have strayed away from
the consumers long standing perception of them Hindustan Unilever(Ltd) is an anchor in sea
of consumer products. As a variety of competitive claims assails her senses, today customer uses
complicated decision making process to assess the alternative before making a purchase.
Since Hindustan Unilever(Ltd) is more clearly associated with a particular set of attributes in
terms of benefits and prices, the quicker becomes her search process. Positioning of individual
product:

Lifebuoy is one of Unilevers oldest brands with more than a hundred-year history, as
www.unilever.com informs. Lifebuoy has become more than just a red bar of soap
today the brand provides hygiene and health solutions for families

Fair & Lovely, a hot-selling fairness cream, which promises a lighter skin tone for
many of Indias complexion-conscious consumers

HINDUSTAN UNILEVERS MARKET SEGMENTATION

Market place for any product is comprised of many different segments of consumers,
each with different needs and wants. Markets segmentation can be defined in a

number of ways such as:

Demographic variables (e.g. Consumers are groups, gender, material states income

etc)
The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might be

consumed.
Hindustan Unilever(Ltd) takes into account all these factors when producing a range

of products. It targets different segments within the market, such as the:

Break segment products which are normally consume as a snatched break and

often with tea and coffee.

Impulse segment these products are often purchase on impulse, used these and

then. They include product such as close up.

Take home segment this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.

AN UNMATCHED BRAND PORTFOLIO

DIVERSIFICATION OF HINDUSTAN UNILEVER LIMITED

HOME CARE PRODUCTS:

Surf Excel was introduced in 1959. It is apioneer in the Indian detergent powder market, Surf
Excel has constantly upgraded itself over the years, to answer the constantly changing washing
needs of the Indian homemaker. Today Surf Excel offers outstanding stain removal ability on a
wide range of stains. Surf Excel quick wash is powered with a path-breaking technology- it
reduces water consumption and time taken for rinsing by 50%. It is a significant benefit, given
the acute water scarcity in most of India.

VIM BAR

Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to
create unbeatable results over a hundred years later.

Key Facts

Vim was the original hand dishwashing brand: so we invented the whole category!

Vim is sold in four continents, is the leading hand dishwashing brand in twenty countries,
and is available to more than 2 billion people around the world.

Vim began life as a soap (both in England, and in Thailand, where King Rama V asked
Unilever to supply his household with soap), but is now available as a complete range of hand
dishwashing including bars, powders and liquids.

Cif- The Worlds leading cream cleaner which gives you the power to deal with the toughest dirt
is now in India.
Key Facts

Cif is the number 1 cream cleaner in the World.

It is the number one cleaner in various countries including France, Germany, Russia.

Its a 500 million Euro Brand.

Cif is Sold in 51 countries around the globe.

Food brands
HUL is one of Indias leading food companies. Our passion for understanding what people want
and need from their food - and what they love about it - makes our brands a popular choice

In the year 1962, Brooke Bond India creates the branded roast and ground coffee segment
launching Deluxe Green Label. 1968 gave birth to the first instant coffee chicory mix under the
brand name Bru.
Key Facts

Number 1 Coffee brand in India

Unilever's only Coffee brand

Enjoys a rich heritage, came into existence in 1962 under the brand name Deluxe Green
Label

Consistently offering better and newer products to the consumer through improved
packaging solutions and innovative product formats

Enjoys a strong presence at various out of home locations.

Unilever is the world's biggest ice cream manufacturer, operating under the Heartbrand.

Heartbrand products are sold in more than 40 countries worldwide and has an annual
turnover of 5 billion

Also sold as Algida in Italy & Turkey, Langnese in Germany, Kibon in Brazil, Streets in
Australia and Ola in the Netherlands

TAJ MAHAL

Taj Mahal was launched in 1966 by Brooke Bond.

Taj Mahal is the most premium brand of tea in the Indian market.

It was the first brand to launch tea bags and is the only tea brand in India to be sold in

Vacuum sealed packs.

Since 2006, Saif Ali Khan is the brand ambassador.

Personal care brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognised
and love by consumers across India. They help consumers to look good and feel good and in
turn get more out of life.

Launched first in the US in 1957; is one of the leading brands of Unilever globally.

Dove has its footprint in 80 countries worldwide with a range of superior products from
bar, lotions, body washes, face care and creams.

It is the leading bar brand in UK, US and Canada.

Fastest growing hair category brand in India

LAKME

Lakme was the first major beauty brand in India and takes pride in being the expert on Indian
Beauty for over 50 years.

It is complete beauty brand spanning colour cosmetics, skin care & hair styling products
and extending to beauty services through the network of Lakme Beauty Salons.

Its bond with beauty and fashion is manifested through the Lakme Fashion Week, which
is now the largest fashion event of its kind in the country.

Lakme has a foot print of over 1200 assisted sales outlets, which is the largest span of
outlets with Beauty Advisors in the country.

Lifebuoy, an undisputed market leader for 112 years, has a compelling vision to make 5 billion
people across the world, feel safe and secure by meeting their personal care hygiene & health
needs
Key facts

Undisputed Leader in the soaps market of India, with 18.4% share.

Turnover of 350 million a year globally, 200 million in India.

Has a consumer base of 140 Million households in India

The iconic jingle of Lifebuoy tandrusti ki raksha.. is almost like the health anthem
of India and Indians

Recent Awards:Voted in the top 10 most trusted brands in India in the Brand Equity
Survey (came in at No. 9 in 2008 as well)Marketing excellence awards for its recent
innovations and activations:

Gold at the Emvies 2008 for best use of media innovation

ASIA Pacific CSR Award 2007, for Lifebuoy Swasthya Chetna

WATER

Pureit is the worlds most advanced in-home water purifier. Pureit, a breakthrough offering of
Hindustan Unilever (HUL), provides complete protection from all water-borne diseases,
unmatched convenience and affordability.
Pureits unique Germkill Battery technology kills all harmful viruses and bacteria and removes
parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures
your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and
cholera. Whats more, it doesnt need gas, electricity or continuous tap water supply.
Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless
and good-tasting. Pureit does not leave any residual chlorine in the output water The output
water from Pureit meets stringent criteria for microbiologically safe drinking water, from one of
the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency).

PRODUCT INNOVATIONS
Clean clothes, less water

Rinsing clothes is the most water- and time-consuming part of hand washing. How are we
helping?

Helping hand wash

In India, our laundry detergent Surf Excel is used mostly for hand washing. When washing
clothes by hand, its rinsing that often takes most time and uses most water water that is
extremely scarce, especially if you live in the dry, southern states of Andhra Pradesh and Tamil
Nadu.

Understanding the problem

We were asked if we could improve Surf Excel so less rinsing is needed, while still getting
clothes as clean as before. This is the challenge our innovation team took up.
First we had to understand the hand wash process really well. Typically people keep rinsing till
all the lather has gone. That often takes four rinses, which means four buckets of water.
We knew we could cut the number of rinses by adding one of a number of anti-foam ingredients
commonly used in machine-washing detergents. That would make the lather rinse more quickly.
But we also know that people like the foam when theyre washing because its a sign that things
are getting clean.

Reduced rinsing

So we had to find just the right ingredient that doesnt suppress lather significantly during the
main wash, yet aids significant foam reduction during the rinsing step. We tested several until we
found one that doesnt kick in until the concentration of surfactant active is lower in other
words when washing is complete and rinsing begins - then rebalanced the formulation until we
got it just right.
This is how new Surf Excel Quick Wash can deliver a good lather at the washing stage, and
reduce the need for the rinsing saving two bucketfuls of water per wash.
We have supported the launch of Surf Excel Quick Wash with an advertising campaign that
promotes the message that you can have cleaner clothes with less lather with the aim of helping
to reduce the water used in washing even more in the future.

Knorr: a revolution in stock

Knorr helps home-cooks provide natural and nutritious meals for their families in a convenient
way.

Closer to home
By interacting closely with consumers, we realised that the jelly format of Knorr Stock Pot is
very close to home-made bouillon in how it looks and smells and how you use it. Unilever chefs
and product developers worked closely together to cook and stabilise, in a natural way, rich

bouillons with big and fresh pieces of vegetables and herbs. We have applied for patents around
this innovative technology.
Knorr Stock Pot is easy to use and melts naturally into food, developing a great aroma and taste,
while keeping the salt dosage in the end dish flexible. The protected packaging locks in the
goodness of the bouillon, requiring no artificial preservatives.

Global launch
Consumers around the world are enjoying Knorr Stock Pot. The first country to launch in 2007
was China, where there was no bouillon cube market, and soup-consumption is very high.
Chinese home-cooks love the convenient way to create the dense soups their mothers and
grandmothers made. Now, home-cooks in the UK, Ireland, France, Spain, Belgium, Greece and
many countries to follow are expanding their repertoire and creating wonderful, wholesome
dishes for their families.

Pioneering technology for Magnum Temptation

Since its launch in Europe in the early 90s, Magnum has grown to be one of Unilevers biggest
brands, bringing real chocolate indulgence to the adult ice cream market. However it became
widely imitated and there was a need to re-establish both its superiority and leadership.

The idea
In line with the consumer trend for experiencing greater sensory pleasure, we decided to launch a
new product platform that delivered a premium and complex experience the blow me away
concept. This would allow the more discerning consumer to trade up to a super premium level
compared with the core range of Magnum.

Different challenges
The total offering required a step change in the visual, tactile and organo-leptic experience. In
other words, a unique new sensual shape, perfect finish on the chocolate coating and exceptional
ice cream quality.
We wanted to incorporate the highest ever levels of inclusions. For instance, one would have
sauce combined with chocolate and brownie chunks. Another, almond pieces smothered in
chocolate and caramel sauce. And we wanted it delivered in an impulse format, by which we
mean ice cream on a stick rather than in a tub.

All of this demanded inspired creativity from our ice cream R&D experts.

New technology
We developed a new forming process based around continuous extrusion that allowed us to
shape in three dimensions whilst dosing the inclusions. Evolved over a decade by the team at
Colworth, this pioneering cold roller technology was set to revolutionise the stick format.
Extensive testing included a continuous 3-day production trial. We also had to secure patents,
design registrations and freedom to operate agreements. To deliver this innovation on time and in
full required outstanding collaboration between R&D, Brand Development, Supply Chain and all
support functions.

Packaging design
Developed through Open Innovation with a strategic partner, the novel and visually attractive
packaging is integral to the premium nature of the concept. Smart design struck the right balance
of minimal environmental impact through renewable material use with effective product
protection. Whats more, it establishes a consumer ritual: remove the seal and open the box to
reveal the naked product on a soft cellulose inlay, surrounded by the gold inside of the carton.
Reminiscent of a jewellery box in function and graphic design, each variant has its own signature
colour within the carton.

In-market results
In 2007, we launched Magnum Temptation in Italy, Spain and Switzerland. In 2008, we went
into the rest of Europe with a dark chocolate variant. In 2009, we expanded capacity and
introduced a fruit variant to cover the range of consumer preference.
As a breakthrough innovation Magnum Temptation has achieved the expected success delivering
incremental sales. This means that it did not impact the sales of the core range. The products are
now being rolled out across the world.

Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when its
needed most, giving people the confidence to face the day's more stressful situations.

The challenge
Instances of stress whether expected or unforeseen can make people sweat more than usual.
However, at times like these most deodorants cant cope. Our challenge was to develop a product
that offered extra protection at such moments, delivering additional freshness and giving
consumers the confidence that comes from knowing they look in control.

Responsive technology
Since deodorants deal primarily with physical sweat, we set about developing a technology that
could also cope with emotional sweat. In partnership with key suppliers, our scientists developed
a new anti-perspirant Rexona Activreserve whose special micro-capsules of odour protection
are activated when the body responds to stressful situations.
These capsules sit on the skins surface. When pressure or stress cause a sudden, uncontrollable
burst of sweat in the underarms, the sweat dissolves the capsules giving extra odour protection
when its most needed. So whether an individual is sweating a lot or a little, the technology will
always release the right amount of protection.

Smoother, straighter hair

Theres a good reason why sunsilk is the number one hair care brand in Asia, Latin American and
the Middle East, and the fastest-growing in Europe - tip-targeting technology.

Smooth & straight without heaviness

We recently launched a new sunsilk Silky Straight and Smoothing range especially for those of
you looking for a smooth, sleek and straight look. We saw that older products out there
sometimes just made hair look heavy and greasy, instead of naturally silky.

Technology that knows the difference

So we focused our research on why, and what we could do about it. From our extensive research
on hair fibres, we know that the roots and tips of our hair have different surface chemistries that,
ideally, require slightly different treatment - not an easy thing to do standing under the shower in
a hurry to get to work.

Acting where it is needed?

We developed a new technology that within one shampoo can target conditioning actives to
go to work where they are needed most. A bifunctional polymer, possessing one domain that
attaches to droplets of conditioning active and a second domain that seeks out weathered or
damaged hair, is used. Conditioning droplets, covered by these polymers, deposit preferentially

where conditioning is needed typically the tips smoothing kinks and frizz and helping to
naturally weight your hair to look silky straight.
Now we also have a Sunsilk Silky Straight conditioner and a Straightening Cream, all helping
your hair to look naturally smooth and sleek, root-to-tip, without heaviness or greasiness. To help
you look good, and feel good.

Patanjali
The conceptualization of the Patanjali Food and Herbal Park Limited at Padartha Haridwar is
the result of initiative shown by the Special Purpose Vehicle (SPV), constituted for the
purpose, headed by Acharya Balkrishan Ji, International Authority in Ayurveda, and the
Ministry of Food Processing Industry, Govt. of India under Vision 2015 of Ministry of Food
Processing Industries. Vision 2015 of Ministry of Food Processing Industries aims to raise the
processing of perishables in the country from existing 6 % to 20 %, value addition from 20 %
to 35 % and the share in global food trade from 1.5 % to 3 % by year 2015. Under their Mega
food park scheme, the Ministry of Food Processing Industries (MoFPI), Govt. of India,
encourages the like minded entrepreneurs to form a special group called SPV with the specific
aim of developing basic infrastructure for an agglomeration of food industries enabling them

to grow into a thriving agro- based industrial hub. The larger purpose is to provide a growth
stimulus to the rural economy by creating a demand for their conventional and
nonconventional produce and also to meet the growing demand for quality based products in
the urban world. A successful backward and forward linkage makes the model an engine for
uplifting the rural economy of the country out of the vortex of stagnation, where it finds itself
today.

With the first of its kind in the country coming up at Padartha, Haridwar surrounded by an
appropriate catchment area of an impoverished hilly economy of Uttarakhand, this initiative is
a great challenge for the present and holds a great promise for the future.
By creating post harvest handling infrastructure PFHPL will also help reduce post harvest
losses of perishables from the current levels of 30% - 35% which is approximately Rs. 50,000
Crores per annum. To realize the Vision 2015, MoFPI has pledged support under the Mega
Food Park Scheme (MFPS). Each Mega Food Park (MFP) will be subsidized with an amount
of Rs. 50 Cr on a milestone & progress achievement basis.
Central State Minister for the Food Processing Industries, Govt. of India, Shri. Subodh Kant
Sahay, laid the foundation stone of this park. An estimated investment of Rs. 500 crores is being
invested on this project, covering an approximate area of 100 acres. It is estimated that about
20,000 people will get an employment opportunity through this project. This food park will
produce agricultural products, products related to nature and products related to herbs and plants.
This project aims to make the farmers economically strong, as they will get their own market to
sell their products at a right price. As per the visionaries of the project, it is just the beginning
and there is a long way to go from here. In the long run India will be the sole provider of food

materials to the Middle East and hence, will be playing a major role in removing the food crisis
of the world.

Vision, Values and Objectives

Vision of Patanjali Trust

To build a disease free world by making every individual physically strong,

emotionally balanced, socially responsible and spiritually awakened

Values:
Patanjali derives their values from MAHARISHIPATANJALI:
P-Purity of Products for our loving people
A-Attend the needs of our customers with care
T-Truthful to the people we share their problems

A-Attend the needs of our customers with care

N-Nature to be our best Teacher-alround harmony
J-Joy of work, Team spirit, Stress Free environment for a friendly work place.
A-Add value to products innovate always
L-Live with our Scriptures back to Vedas ,Shashtras,Upanishds
I-Inculcate Unity of Self ,family ,nation and the world through Yoga

Idea behind establishment of Patanjali Food and Herbal Park

India had been a called Golden Bird for it had a climate, cultivable conditions and resources that
formed a perfect combination for agriculture. Our country has been an agri-based economy, but
the present conditions do not seem to be very positive for our coming generations. The mass
suicide of 16,000 farmers every year proves that our defunct government on one hand raises
issues of food security for our country but on other hand is unable to give the farmers of our
country good price of their production, resulting in huge debts on them and leading them to a
path of ending their and their familys life or finding other easy means of crime to raise money.
The Green Revolution in year 1960 brought with it a huge change in Indian agricultural scenario.
But, we did not realize that this introduction of new seeds, fertilizers and techniques will lead to
huge costs of production in future due to the increasing costs of these technologies and
decreasing size of land holdings.

It is not only the monetary losses, but excessive use of fertilizers and chemicals lead to increased
level of pollution in our soil and water bodies. These poisonous chemicals also kill nature
friendly bacterias which have proved to be a resistive mechanism for various diseases. The
present condition is that these chemicals get transferred to infants via feeding and are laying a
foundation for increasing instances of dangerous diseases like cancer, diabetes, blood pressure,
heart problems etc. According to a statistical data 24 lakh people every year develop cancer.
Also, according to the medical departments around 8 crore people in India who have highest
chances of developing cancer are those who are either involved in spraying of these chemicals or
are anywhere exposed to these chemicals. Every year around 90 thousand metric tons of
pesticides and insecticides in solid form, 1crore litres of it in liquid form and 1.90 crore metric
tons as fertilizer is sprayed. Unfortunately only 2% of these chemicals are actually utilized and
rest 98% is resulting in adding to the pollution to our atmosphere.
The need for present conditions calls for a total switchover from these harmful chemicals to
natural fertilizers like vermin compost, manures etc. Patanjali Food and Herbal Park is trying to
contribute in promoting the natural manures based, zero budget agriculture for the health and
prosperity of our country.
This food park is a step to create and implement a whole plan of food processing not only in
states like; Uttarakhand, Haryana, Punjab, UttarPradesh, Himachal, Rajasthan, Gujrat; but to
almost whole of India based on natural techniques of agriculture.

Rationale of Patanjali Herbal Park

Keeping in mind the strategy to combine our resources to write a blueprint for a developed
agriculture in India, Patanjali Food and Herbal Park has a goal to address some burning issues
related to agriculture.

Providing farmers with high quality seeds keeping in mind their nutritional content and
help in increasing the agricultural produce.

In alignment with World Trade Organization attempting to reduce production costs and
providing people with quality food products.

Development of natural resources and their proper utilization in providing masses with
food of high quality.

Use of natural manures to maintain ecological balance and eradication of chemicals from
our environment.

Integration of small and landless farmers for protection of their rights and promoting
production of herbs to them.

Promoting agri-based businesses for eradication of poverty and value addition for
increasing employment opportunities.

Bringing agricultural practices to international standards for reduction of cost of

production and standardization.

Providing farmers with excellent seeds and resources for cultivating and nurturing a goal
for healthy world.

Saving the cultivable land from being used for other purposes.

Sensitizing people with nutritional aspects related with various foods and their
promotion.

Promotion of minimizing the use of pesticides and insecticides.

Developing techniques for water resource management and their promotion.

To dismantle the multi-layer commission agencies in the existing supply chain.

Encourage public private partnership in agro industry.

Encourage non-conventional farming for traditional agro-products.

Objectives of Patanjali Food park

The various objectives are:
1) Improve value chain: To build up a sustainable and viable value chain from farm to fork,
for all agro based products. The various interventions to overcome the challenges in the
prevailing value chain system is to;
i.
Create new infrastructure and upgrade the existing infrastructure
ii.
Trade facilitation
iii.
Market demand driven Production
iv. Meeting global standards of Quality
v. Linking farmers to the markets

2) To maximize the returns to the farmers for their farm produce by buildings strong and
rich backward linkage while slashing the intermediaries and introducing concepts like
journal marketing etc.
3) To produce quality yet affordable agro based consumables for all market segments that
include the world market as well.
4) Revitalizing the rural and hilly economy of the catchment area of the processing centre,
by creating a reliable, reachable and round the year market for the farmers produce.
5) Stimulate investments in the agro and food processing industry
6) Establish state of the art infrastructure for the processing centres of agro products and
showcase a successful, modern and efficient agro based business venture to the world
7) Establish a platform for the business interactions, discussions, and workshops for the
various stakeholders like farmers, retailers, banks, industrialists, academicians and
government.
8) To be a knowledge resource to the agriculture sector in terms of markets, quality and
quantity of production, diversifications of farming activities, organize farming, microirrigation etc.

Organization Structure:
The organisation structure of Patanjali Food Park is depicted in the diagram below:
The management team consists of Board of Directors assisted by Managing Director and Chief
Operating Officer. PFHPL will manage the project in a manner that it is structured in its
hierarchy with delegated and clearly defined roles and responsibilities of each member. The well
structured hierarchy helps in achieving the results with higher efficiency.
The management team is aided by a capable advisory and executive team of professionals to
meet the financial requirements, legal regulations and other techno commercial aspects required
to run a successful agri-business project. The team consists of highly skilled people from various
prestigious institutes across the country including the IIMs.

Patanjali Food and Herbal Park

The Patanjali Mega Food Park (PMFP) has been envisaged to help in creation of enabling infrastructure
for food processing and a comprehensive farm-to-plate supply chain system. This is aimed at reducing
wastages and ensuring value addition, especially in perishables like fruits and vegetables. This is further
aimed at reviving the agricultural sector by increasing the returns for farmers besides making processing
more economically viable and help creating large employment opportunities particularly in the rural
areas.
The scheme also will create opportunity to attract investment in the infrastructure for food processing in
general paving the way for processing a range of value added products. Additionally the scheme is
expected to help the efforts of the Government of India to promote secondary agriculture in the country.

O
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Establishment of Mega Food Parks is one such important step towards creation of agri
infrastructure with various other added advantages. The Mega Food Park, Patanjali Food and
Herbal Park Limited (PFHPL) will be an appropriate platform which can be suitable to address
the problems of wastages of fresh produce, further augmenting the availability of fruits,
vegetables and other perishables to the consumers round the year and also reward the farmers
with improved stable prices with assured buyback mechanisms.
Furthermore, the Mega Food Park aims to provide the state of the art infrastructure for food
processing in the state on the basis of a pre-identified cluster. This will establish a raw material
supply chain for each cluster and facilitate induction of latest technology and foster inter-agency
linkages for pooling of resources for activities complementary to food processing it will provide
quality assurance through better process control and capacity building, also give major
importance to quality control and cold chains scheme.

In our country where farmers often do not get their right share financially, for their products at
present, the Food Park Scheme comes as a rescuer. Intermediaries cheat these poor farmers and
hinder the urban economic growth from reaching the downtrodden farmers. With the opening up
of this food park, industries will approach the farmers directly and farmers will get their own
market. Improper and unhealthy food is the biggest reason of diseases in this world. With the
advent of this food park, people will get uncontaminated and pure food. In a nutshell, it can be
summarized that this food park will give prosperous life to the 40 crore people of the rural
population and promote healthy living to the 70 crore population. This project which initiated at
Rs. 5000 crore is expected to expand and grow upto Rs. 1 lakh crore. In its own way, this food
park is a unique one. The main objective of this park is to smoothen the supply of products to
people and in this way farmers will earn profit. The scheme visualizes the farmers and laborers
as self-reliant and self-sufficient. And aims produce fruit and vegetable extracts, flour with herbal
technology, so that it is beneficial for the health of the people in general.
It is planned that daily 650 tons of material will be processed in this food park. The food park
would have all the facilities from the procurement of material to the final product dispatch.
Processing and packaging will be done here using the state of art technologies. In this way, it
would be the largest food park of the world. It is estimated that if the all the farmers of in
Uttarakhand, alone, are involved in this project, then just 3 months material can be made
available for the food park. Production and procurement of raw materials needs to be increased,
and therefore farmers and laborers from Himachal Pradesh, Punjab, Haryana, Rajasthan Jammu
and Kashmir are being called in to assist in this project. The central government is investing Rs.
50 crores and Patanjali is investing Rs. 500 crores in this project.

This huge project aims at implanting 32 processing units, through which high quality fruit
extracts, pulp, candies, herbal products and many more beneficial products can be extracted.
Many industrialists will be participating in this mega project as a co-operative service provider to
build up mutual basic infrastructure.
The food park is a boon for the vegetable and food growers as they will be able to dispose of
their entire farm production in bulk to this mega park. In addition to this, producers will be given
training to grow suitable plants like amla and alovera in vacant barren lands. Patanjali yogapeeth
will develop such 100 centres which will provide high quality seeds and fertilizers to the farmers.
The complete project will remove the role of intermediaries and provide economical benefits to
the farmers, producers and other people of the area. This project will lead our country to a new
era of health and prosperity. The day the farm products will turn into the raw materials for the
processing units, their farmers will get their right financial share and improve their economic
condition. This is only possible by adopting the direct disposal of farm produce to food and
processing industries.
Apart from setting up a unit for manufacturing the herbal ashes, a unit for manufacturing biodiesel from crude palm oil is also planned. This unit would be launched in the second phase of
the project. Also there is a plan to establish a biodiesel plant and a cattle farm to promote
indigenous and self dependency. To achieve this, farmers will be encouraged for the Jetroffa
cultivation and cattle breeding. Machines have already been placed to produce essence made
from cow urine (Gomutra).The waste products left after food and herbal processing will be used
for the production of bio gas and electricity. The leftovers after getting bio gas and electricity
will be utilized for making bio fertilizers and bio pesticides. More than 100 centres of Patanjali

Yogpeetha across the entire Uttarakhand region will provide techniques of getting high quality
seeds and fertilizers and also impart training about improved methods of farming. With the help
of these centres, the farm produce will be brought to the food park. In this way the farmers will
get the maximum benefits on their farm production in terms of money and will bring revolution
in the farming practices of India. After the complete construction of Patanjali Food and Herbal
Park, it will become the worlds largest juice factory with the capacity of producing 400 metric
ton juices every day. The plant has already been procured from Sweden. For the production of
packaged food, contracts are concluded with the farmers to grow related crops.

4.1. Product Categorization

According to the nature of the product we can also categories these products into
three major parts. This areA. Ayurvedic Medicine
B. Cosmetics
C. Processed Food

Business Model
Under this initiative, farmers are being directly connected to the processors. The initiative aims
to seek maximum value addition by backward as well as forward integration between the
farmers, factory and the market. We can say that here the supply chain doesnt have any
intermediator in between but rather its a direct from supplier to producer to consumer. This also
helps in reducing the cost because it avoids the unnecessary commission cost and other related
charges of the intermediateries.

Farmer

Produce
r

Consum
ers

Around
20-25 farmers form a self help group after being motivated by Patanjali and plan specific
production. There are a number of such groups forming clusters in various places . These clusters
collect their harvest and turn them in the collection centres operated by the company. There are 5
primary processing centres to which the collection centre sends all the food products collected.
Four PPCs located in Uttarakhand region are in Bijnaur, Saharanpur, Meerut and Muzzafarnagar.
From there PPC the collection is sent to the Central Processing Centre in Addak for the last
phase value addition.
The PPC have their own warehouse and the company promotes contract farming. It also provides
the farmers technical aids and environment friendly fertilizers under the contracts. There is a
fixed common minimum rate for the farmers produced which is decided with the inclusion of

local government. In case the requirement of certain products is not fulfilled, the company
outsources from outside.

Strategy for Low Cost Operation

Patanjali has been well connected, through the backward integration, with the farmer community.
As discussed earlier in this document we have situations in which agricultural products are
thrown out in the road because of lack of markets and at the same time the country witnesses
situations in which the same product is sold at alarmingly high price in other part of the country,
Patanjali Food and Herbal Park is an attempt to control this disparity. It aims to reduce the
wastage, give better standards of living to farmers and also to make products available at a
cheaper rate to a wider market.
1. Backward Integration:

In an attempt to reduce the wastage and help the farmers the Patanjali Food Park has took the
following steps in the backward integration process:

Identification of areas, villages, SHGs, farmers for growing crops of desired standard

both in quality and quantity.

Provide necessary technology and knowhow to the farmers attached to the company.
Provide financial assistance to the registered farmers.
To enter into forward marketing contract with the registered farmers.
Ensuring direct and decent remunerations to the farmer
As in this step there is no involvement of third party, a huge part of excess cost is saved
here.
2. Procurement:
The authorities then collect the farm products from these farmers through their own Mobile
Collection Centres and Primary collection centres which cut downs the cost of the commission
and intermediateries. They collect the farm products which are produced by these farmers
promptly thus helping the farmers avoid storage costs and loss due to perished crops. Moreover
they also collect products which are going waste due to unavailability of markets in huge
quantity. For eg: Recent procurement of 15 tonnes of C-grade apples from farmers in the
Chamoli district.
They have their own mobile collection centres located in vicinity of the areas of agricultural
production and also they go for bulk procurement of agricultural products.
3.

Logistics:

Safe and quick transportation of agricultural products from collection centre to the main
processing centres with a view to reduce wastage of perishable produce.

Excellent Logistic facilities help them transport things from their mobile collection centres
to processing centres which avoids wastage
4.

Operation:

Low cost processing of farm produce by ensuring high volume processing which in turn ensures
economy of scale and capacity utilization. They also make sure that nothing from the procured
raw material is being wasted. Even the waste which comes after processing is collected and is
used for many purposes; like a part of it is turned in to ashes and spread over the farms to
increase the fertility of the land. Taking a completely eco-friendly measure, a biogas plant for
power generation has also been planned and the waste generated from the plant is to be used for
making bricklets to be used in boilers.
High volume production which will ensure economies of scale and the effective re-usage of
waste products also helps in reducing costs.
5.

Sales and Distribution:

Supply of Quality products through a wide net work of Patanjali sale centres throughout

the country.
They also provide online shopping, post office counters also sell their product
6. Promotion:
Promotion of their product is done by their own trusts.
New Marketing Strategies & Plans are being developed as the Food Park aims to provide
access to retail markets.

Food processing Industry in India

Indian Food Processing Industry ranks 5 th in the world in terms of production, consumption,
exports and expected growth. It is the largest producer of milk, pulses, sugarcane and tea in the

world and a major producer of wheat, rice, fruits and vegetables. The Indian food industry is
estimated to be worth over US$ 200 billion and is expected to grow to US$ 310 billion by 2015.
The Indian food processing industry is estimated at US$ 70 billion. It contributed 6.3 per cent to
Indias GDP in 2003 and had a share of 6 per cent in the total industrial production. India is one
of the worlds major food producers but accounts for only 1.7 per cent (valued at US$ 7.5
billion) of world trade in this sector this share is slated to increase to 3 per cent (US$ 20
billion) by 2015. India with arable land of 184 million hectares, produces annually 90 million
tonnes of milk (highest in the world), 150 million tonnes of fruits & vegetables (second largest),
485 million livestock (largest), 204 million tonnes food grain (third largest), 6.3 million tonnes
fish (3rd largest), 489 million Poultry and 45,200 million eggs. Processing level is very low i.e.
around 2% for fruits & vegetables, 26% for marine, 6% for poultry and 20% for buffalo meat, as
against 60-70% in developed countries The share of Indias export of processed food in global
trade is only 1.5%. Average Growth rate of FPI during the last five years (upto 2003-04) has been
7.15%.
7.1Food Processing Units In Organised Sector (Numbers)

Source : Ministry of Food Processing Industries, Annual Report

Major players in food processing industry

Some of the major players in the Indian Food processing Industry are:
Company
DABUR INDIA
Ltd

Products
Fruit juices, cooking paste, honey
Branded wheat flour, biscuits, ready to-eat food,

ITC

confectionary
Ice cream, branded wheat flour, bread,
HUL
RASNA (PIOMA
INDUSTRIES)

sauces, jams.
Instant drink, health drink, soft drink

PEPSI
CARGILL

concentrates, flavours
Soft drinks, potato chips, snack food, fruit juices
Vegetable oils
Coffee, chocolates, confectionary,

NESTLE

instant noodles, milk products,

beverages, health drinks

GLAXOSMITH
KLINE

Health drinks

Market and Competition

Indian FMCG market is a market which has a very wide range of customers. There are many
competitors in all the categories and although they all have similar products available at almost
similar prices, Patanjali is trying to prove itself different through their marketing strategies.
However, entry to this business is easy (low entry barriers) and this fact has been utilized very
efficiently to result in combined benefit for both Patanjali and the consumers.
Competitive Grid

Product
Sharbat/Squash

Patanjali Brands
Competitor Brands
Amla, Bel, Brahmi, Gulab, Kissan Squash, Rooh-afza,
Keshar

Badam,

Orange, Minute Maid, Rasna

Juice
Jam

Nimbu, Mango
AloeVera,Anar, Amla, orange
Seb ,Pineapple and Mix Jam

Real and Kissan Juices

Kissan, SIL, Tops, Druk

Salt
Chayawanprash

Saindha Namak
Sada.Special Chyawanprash,

Tata, Annapurna
Dabur,
Baidyanath,

Flour

Aarogya Aata

Zandkesari Jiwan
Aashirwad, Annapurna

Candy

Amla, Anardana

Hajmola

As seen from the above table the major products of the Patanjali Food park are

Sharbath (Juice

concentrates), Jam ,Salt, Chyawanaprash, Flour and candy. The advantage with all these products is that
these are made of natural products and dont have any side effects at all. But as there are so many players
existing in the market, that Patanjali products have a tough competition to face with.

Marketing System of Patanjali

Marketing of the Patanjali group is viable through the detailed marketing strategy which addresses each
target group. Broadly the marketing strategy includes the following:
i.

The most important promotional activity involvs yoga campaign by Baba Ramdev and the

ii.

Patanjali Trust.
Advertising through business journals and newspapers in India and abroad with the help of an

iii.

advertising agency.
The Company has established a web site in the Internet. This will ensure international visibility

iv.
v.
vi.

and marketing.
Group regularly Interact to Industry and Business Associations.
Group also has interaction with foreign embassies/trade counsels in India.
They are also bringing out attractive brochures and other literature with the help of advertising
agency.

Research and Development in Patanjali

In order to keep in pace with the latest developments in the Agricultural sector and also to look
for new innovative methods of production, Patanjali has to its credit a well developed Research
and Development section. The main aims of their R&D section are:

To conserve and preserve more agricultural lands and increase their productivity

To introduce more hybrid varieties of seeds and crops

To retain the nutritional content in the processed food.

To study the botanical behaviour at various geographies and to find the best possible
techniques of cultivation and suitable crops accordingly

Search and unearth the age old homely and Ayurvedic recipes using natural ingredients to
replace the chemical contents of shampoos and soaps.

To develop agro- technology of potential agricultural plants.

To avoid problems of adulterants and artificial synthesizers in the food.

To prepare more herbarium specimen sheets and establishment of Herbarium of dried

specimens of all the economic useful plant species e.g. roots, leaves, flowers, seeds, bark,
fruits etc.

To multiply agricultural plants through tissue culture and biotechnology.

To develop agro technology based on indigenous methods of seed selection and organic
farming etc.

SWOT Analysis
Strengths:

Natural products without any kind of side effects.

Innovative Aspects.
Presence of Established distribution networks in urban areas.
Solid Base of the trust.
Social Responsibility to make people healthy.

Weaknesses:

Strong Competitors & availability of substitute products.

Low exports levels.
High price of some products.
Absence of Established distribution networks in rural areas.
Very less promotional activities.

Opportunities:

Large domestic market over a billion populations .

Untapped rural market.
Changing Lifestyles & Rising income levels, i.e. increasing per capita income of

consumers.
Export potential and tax & duty benefits for setting exports units.

Threats:

Tax and regulatory structure.

Controversy created by other groups regarding Patanjali products.
Removal of import restrictions resulting in replacing of domestic brands.
Temporary Slowdown in Economy can have an impact on FMCG Industry.

Schemes for welfare of farmers at Patanjali Food and Herbal Park

A.Food Processing Research and Development
For the testing and development of of new technologies, full-fledged laboratories
have been established at the food park. In order to develop techniques at par with
international standards; individuals specializing in botany, microbiology etc. life

sciences study and experiment various aspects. The various aspects looked after by
this branch of food park are;

Establishment of aryurvedic, cosmetic, packaging technology, business centers etc.

Proper utilization of natural resources at Food and Herbal Park, eventually generating
employment opportunities for 30 thousand people at park itself and self employment

opportunities for others.

Promotion of plantation of herbs that will not only increase their production but will also help in

their conservation.
Training of farmers from time to time.
To promote increase in consumption of natural and healthy foods and also organizing campaigns
for sensitizing people about ill-effects of fast foods.

B.Natural Resource and Environment Management

This is an attempt to make natural resources environment friendly with proper use
of technology and conserve them.

Developing proper technology to clean environment by using the natural waste and cow dung to
make manure by proper methods.

Promoting and making available the technology of vermin-compost.

Conservation of cows of Indian breed and telling people about their proper care and
utilization.

C.Research on Organic Resources and Agriculture

This division includes the use of technology for protection of environment. Genetic engineering
will be used to make anti-pest resistant species, use of technology to identify water-bodies by
presence of chemicals like arsenic, fluoride, nitrogen etc and their treatment so that our
environment could be protected by harmful poisonous pollutants.

D.Value Addition of Organic Waste Material

In this project the waste generated out of agricultural processes would be value added as it would
be used for making bio-gas. A captive power plant is being established. This would be the first
plant in country to totally run a factory by using waste materials.
E.Food ecurity and Quality Management
Food industry plays a very important role in economy of a country. So is the role of quality of
food. Keeping in mind ISO 4000 and ISO 22000 is to be implemented. With the use of hazard
analysis critical control point based security mechanism quality control Patanjali food park is
probably worlds best and it is Indias first USA, FDA food processing plant. To match our
products standards with the best of worlds standards, world class clean room and packaging
facilities are implemented.

F.Establishment of Multi Chamber Cold Storage

Storage of perishable food products is a major problem in our country. To save the produce from
any kind of wastes a multi chamber cold storage facilities have been developed. With this facility
other value adding facilities like grading, packing, pre cooling are also available at the plant.
With the working of this plant all seasonal fruits and vegetables will be available throughout the
year.
G.Technical Assistance and Implementation
The communication of latest trends and technologies to masses plays a crucial role in agricultural
development. This food park aims at maximum participation of farmers in the knowledge

management and creates a blueprint to pick best technologies, and carries out their evaluation
and feedback programmes with farmers. Self help groups at village level like sehkari samiti,
farmers interest groups etc are also at focus for giving technical assistance and facilities of loans
etc.
H.Creating Common Perception about Food Processing among Masses and Government
Patanjali as an organization is trying to create a common platform for masses and government for
proper utilization of the resources and proper implementation of schemes of Government.
Various public organizations like APEDA, National Horticultural Board will be brought in the
picture for making a strong backward linkage and managing a proper supply chain. This will
further help in,

Cutting down wastage which will further lead to food security.

Increase the share of revenue that farmer gets for his produce.
Maintain a responsive and efficient supply chain.
Cutting down on the commission that agents get in between every stage and making the

produce cheap for masses.

Setting international standards at every stage of food industry.
Creating facilities which will help in catering to seasonal needs for processing,

packaging, storage etc.

To establish 5 processing and 10 collection centers at the initial stage of implementation.

I.Organizing Food Expo, Fairs and Exhibitions

Trade center is being established at Patanjali for trade and agri expos, food and technology expo
etc. Under this, one roof information about all the technologies and developments, that take
around the world will be available and masses will be sensitized with healthy eating habits.

J.Inclusion of women in agriculture and women empowerment

This center aims for the empowerment of women and their inclusion in the agriculture as
throughout India 60-70 % of agricultural work is done by women. The plan is to develop groups
of women which will be trained and guided for a collective production. They will be trained for
the secondary activities related to agriculture like animal husbandry etc. and women self help
groups will be promoted.

Various units inside Food Park

Food processing unit
Flour mills for grain processing
These mills will cater to Arogya atta, Navratna atta and Organic atta. These mills use the
technology to slowly grind the grains so that they do not lose their nutritional content. Dalia
making unit has also been established.
Spices and Pulses processing unit
The main aim of this unit is to do proper processing of grains and they can be value added. All
pulses will be processed in this unit.
Juice Unit

Establishment of Juice Plant for processing of Fruits and vegetables. This is the first ultramodern
technology based Juice palnt in India where processing of more than 400 tons of fruits and
vegetables can be done daily.
Products of patanjali food park are of high standard, free of preservatives and have medicinal
properties. They will be available at minimum cost to people. On priority basis in the beginning
juices of Amla, Aloeveera, gourd, carrot, bitter gourd, tomato, wheat extract, tulsi, mint etc will
be sold for better health of the people.
Ayurvedic Unit
According to Shastras, Ayurveda is the basic mantra to know the life that can give a new life to
man. Production of Ayurvedic herbs and plants can bring prosperity to farmers. Today there is a
need to develop Ayurvedic medication according to standards. Patanjali Ayurved is working in
this field with great precision to provide high quality medicines to people at the lowest cost.
According to the demand of the people of the country, Patanjali has established an Ayurvedic
Medicine unit in a very vast area
Herbs/Extract Unit
This unit is established to store herbs, fruits and vegetables for a long time and to make them
easily available to people. In the beginning this unit will make powder of Amla, Aloe Vera, Bitter
gourd, gourd etc.
Patanjali Food Park and Patanjali family is promoting Organic Farming at war scale. It will not
only provide employment to more than 30000 people but it will also provide self-employment to
people related with farming, labor selling etc. Through Food Park eatables will be properly

processed and will be made healthy. An extraction unit is also being set up at Food Park which
will help in extracting maximum medicinal values from the herbs. The biggest cold storage is
also established at Food Park where raw and semi processed produced to be used by various
processing units can be stored.
Beauty Products Unit
Patanjali Ayurved is producing high quality beauty products like soaps, shampoo, creams,
toothpaste etc.. These products will help in keeping the body pure and clean.
Detergents Unit
This unit is established to manufacture washing soaps and powders which are made up of
harmless chemicals and herbs.

SUGGESTIONS AND RECOMMENDATIONS

As it is obvious from the study the products of HUL have approached the high water
mark of sale in the global consumer market. However, there are genuine reasons to
observe that they have yet to attain the cutting edge status on many counts. In this regard
a few suggestions can be made to give the required boost to the marketing prospects of

HUL products. These can be summed up as follows:

An attempt should be made by HUL management to tap all the potentials offered by the
global market by devoting a more substantial, efficient and better equipped resource base.
This task can be accomplished in the first place by implementing a stronger and more
ending distribution channel for various products so that even those sections of consumers

who are not accessible so easily, can be covered with greater ease.
Efficient infrastructural base coupled with better and more comprehensive advertising
strategies should be resorted to; though HUL is presently surfing ahead of others on the
path of taking some great initiatives it should be more concerned about it for the purpose
of corporate image building.

The price structure for various products should be more within the limit of affordability
for consumers; the grassroots consideration in this regard should not be ignored. Here,
the policy of loco-centric rather than uniform price structure would certainly be more

advantageous.
HUL should go for more planned and sensible marketing and advertising strategies with a

view to accomplishing the task of global brand image buildings.

Hyper marketing and retailing network should get special attention as vital components
of HULs marketing policy

CONCLUSION
In recent years, the FMCG sector declined due to down trading. Also because of presence of
large number of companies trying to seize this opportunity, this force the old HUL for the change
and thus, their transformation has resulted in a new HUL, which has successfully faced this
challenge and reversed this trend. It has done so by substantially strengthening their brands and
building capabilities. This has already begun to yield benefits and they are returning to growth.
Volume growth is being followed by value growth, which in turn is bringing profit growth.
India is one of the most exciting markets offering great potential.Over the next 10 years, the per
capita income in India is likely to double. In FMCG, there is an opportunity to catalyze
penetration, increase usage, and upgrade consumers. As a result, the FMCG market is expected
to grow to over Rs.100,000 crores from its current base of Rs.40,000 crores.
The new Hindustan Lever see an exciting opportunity for growth. They have 35 powerful brands
covering all segments, with leading market positions in most. Today, these are stronger and more
relevant to the consumer than ever. The people are energized by the scale of the opportunity and

determined to seize it. The scale of the business and operations gives them the resources
needed.They are delivering good services and the changes they brought in the products are well
taken by the customers, by this they are generating sustainable profitable growth