Motilal Oswal 7 th Annual Global Investor Conference 23 rd August 2011
Safe harbour statement This Release / Communication, except for t he hist orical informat ion, may contain statements, including the words or phrases such as ‘ expects, anticipates, intends, will, would, undertakes, aims, est imates, contemplat es, seeks t o, obj ective, goal, proj ects, should’ and similar expressions or variat ions of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated development s and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense compet ition and the pricing environment in the market, consumpt ion level, ability t o maint ain and manage key customer relationship and supply chain sources and those fact ors which may affect our ability t o implement business strategies successfully, namely changes in regulat ory environment s, political instability, change in international oil prices and input costs and new or changed priorit ies of the trade. The Company, therefore, cannot guarantee that the forward looking statements made herein shall be realized. The Company, based on changes as stat ed above, may alter, amend, modify or make necessary corrective changes in any manner t o any such forward looking statement contained herein or make written or oral forward looking statements as may be required from t ime t o time on the basis of subsequent developments and events. The Company does not undert ake any obligation t o update forward looking st atements that may be made from time t o t ime by or on behalf of the Company t o reflect the events or circumstances aft er the date hereof.
What are some of the trends? Increasing Affluence
Increasing affluence 2003 2013 180 mn households 230 mn households Rich Classes Top End Business 11 Affluent 3 Changing at t it udes >$ 5000 p.a. Aspiring Classes 46 Aspirers 124 Trebling $ 1000-5000 p.a. Credit Cult ure Strivers 131 96 S triving Classes <$ 1000 p.a. B.O.P Opport unit y The shape of India … from a pyramid to a diamond S ource : Nat ional Council of Agricult ure & Economic Research
Changing attitudes : from Minimalism to Materialism Bitten by the Travel Bug
Media Explosion
Connected anytime anywhere ….. Where I find all my friends
Women : many roles I drive my children to school I am a best friend I am a homemaker I am a CEO I am a teacher
Modern Trade : growing rapidly, Mall Culture
What are some of the trends? Increasing Affluence Changing Attitudes Connected, anytime anywhere Women : many roles Modern Trade
Changing consumer aspirations Demand Elasticity Personal Care/Beauty/Foods Explosion LSM 1 LSM 2-4 LSM 5-7 LSM 8 LSM 8+ (new categories) 7.7 x LSM 8+ 4.9 x LSM 5-7 3.1 x LSM 2-4 1.7 x LSM 1 1x Laundry, Cleansing Pers Prod Foods 0 2000 4000 6000 8000 10000 Exp per HH / year (INR) HUL Participating Categories Source : Family Budget Survey, Consumer Panel
What are some of the trends? Increasing Affluence Changing Attitudes Connected, anytime, anywhere Women : many roles Modern Trade Sustainability
HUL STRATEGY Winning Today & Winning Tomorrow
How will we win tomorrow? Consumers & Segments of tomorrow: Portfolio Channel of tomorrow : Modern Trade Geography of tomorrow: Rural Capabilities for tomorrow Winning Sustainably
Shaping the portfolio of tomorrow
Building segments of tomorrow: Hair Conditioners • Conditioners: Market growing 30-40% • HUL Conditioner: Now, market leader Availability across price points driving consumption Market growth / share source: AC Nielsen
Building segments of tomorrow: Facial Cleansing • Facial Cleansing: Market growing >40% 48 47 47 304 • Deployed full portfolio 128 100 • Business size doubles in 2008 2009 2010 Market Growth% HUL Indexed Sales FY 10-11 Market growth / share source: AC Nielsen
Building segments of tomorrow : Premium Skin Care Premium Skin Lightening Hand & Body 94 Market Size in Euro Mln Market Size in Euro Mln VHW Share 160 HUL Share 140 60 120 42 PWB >7% of HUL Face Care 2008 2009 2010 2008 2009 2010 Male Grooming Anti Aging Premium Mid Priced Mass Market growth / share source: AC Nielsen
Building segments of tomorrow: Foods & Beverages Building Savoury Gaining share in Driving Dish Developing a soup drinking habit afternoon snacks Penetration Expanding in-home & impulse Expanding Kissan Franchise consumption through innovations Kissan Creamy Spread Entry in Refreshment Platform Kissan Juice & Soya Kissan Nutri Smart
Expanding OOH footprint Experimenting with 150+ Swirl Parlours Beverages retail services 140+ Lakme Salons
Accelerating growth from categories of future Core Categories Future Categories *Chart depicts FY 2010-11 contribution to Domestic Consumer Business
Winning in Channel of Tomorrow : Modern Trade eQ* at 89 (world class level) Increasing Market Shares MT Share > GT Shares Continuous improvement in (145 bps gain in 09) Customer Service Improvement in Profitability 2008 2009 2010 *Nielsen Equity Management Program Score
Winning in Geography of Tomorrow : Rural Every village in the country mapped Technology leveraged for blueprinting Shakti network leveraged in v small villages Rigorous ROI Model for each state
Building capabilities for tomorrow: Winning in Personal Care Transforming beauty experience Integrated Communication
Driving 360 Engagement Owning Content Micro Marketing Way to Integrated Experential Engage Campaign Marketing Mobile Alternative Marketing Media Using New Media
Winning through continuous improvement: Quality & Service Superior Products 3X 2X X Excellence in Customer Service FH'09 DQ'10 123 125 June'11 100 Indexed % of blind product wins 2007 2009 Current Indexed CCFOT
Winning Sustainably : HUL SLP Improve health and Reduce wellbeing Enhance livelihoods environmental Impact by increasing through our Water, Waste and GHG awareness of & access value chain to hygiene & nutrition
HUL Sustainable Living Plan – Progress vs Target
Winning through People Engaged Organization # 1 Best Employer in India, 2011 Awarded by AonHewitt Indexed Employee Engagement Scores
In Summary Rapid and Significant Change Point of view on the future Develop capabilities today to win tomorrow
Motilal Oswal 7 th Annual Global Investor Conference 23 rd August 2011
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