RELATED TO TWO COMPANIES HUL & ITC HUL (Hindustan Unilever Ltd. ) This Company is earlier known as Hindustan Lever Ltd. This is India’s largest FMCG sector company with all type of household products available with it. It has Home & Personal Care products, and also food and Water Purifier available with it. According to Brand Equity, HUL has largest no of brands in most trusted brands list. 16 of HUL’s brands featured in AC-Nielson Brand Equity list of 100 most trusted brands in 2008 in an annual survey.
For the entire year ending March – 2009 net turnover of company is Rs. 20’239. 33 Crore which is 47. 99% higher than 31st December 2007’s Rs. 13675. 43 Crore driven mainly by dom estic FMCG’s with net profit stood at Rs. 2’496. 45 Crore. Products of HUL are: Annapurna; Ayush; Axe; Breeze; Bru; Brooke bond; Clinic; Dove; Fair & Lovely; Hamam; Liril; Lux; Pears; Ponds; Pepsodent; Pureit; Rexona; Rin; Sunlight; Surfexcel; Vaseline; Wheel. ITC Limited This Company was earlier known as Imperial Tobacco Company of India Ltd.
It is Currently headed by Yogesh Chander Deveshwar. Company mainly operates in the industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year ending Mar-2009 the turnover of company is at Rs. 15388 Crore which is 10. 3% higher than previous year’s Rs. 13947. 53 Crore, driven mainly by robust 20% growth in non cigarette FMCG business with net profit stood at Rs. 3324 Crore. ANALYSIS OF BOTH COMPANIES
HUL & ITC are major companies in FMCG market in India. When we compare both companies on the basis of their strategies i. e. , their competitive strategies in the present market. When we look at the present segment breakup for both of the companies then we came to know that their different products vary too much in the market. HUL | ITC| Hindustan Unilever (HUL) is the largest pure-play FMCG company in the country and has one of the widest portfolios of products sold via a strong distribution channel.
It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams. | ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes. | Performance | Performance | After stagnating between 1999 and ’04, the company is back on the growth track.
In the past three years, till 2008 HUL’s net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. | Despite diversification, ITC’s reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-generating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth. | ITC Segment Breakup HUL SEGMENT BREAKUP POWER BRANDS, THE NEW FMCG MANTRA Three men, one voice.
Indian fast moving consumer goods companies like HLL, Godrej Consumer Products Limited and Marico Industries are completely sold on the concept of “power brands”. But in their rush to put their best brands forward, are these big companies in danger of overlooking the potential offered by some of the also-ran brands? It’s been almost five years since these three FMCG giants opted to manage their brand portfolios on the basis of the power brand strategy. How have they fared? And what does the future hold?