hul and tcs final

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INTERNATIONAL BUSINESS STRATEGY OF HINDUSTAN UNILEVER & TATA CONSULTANCY SERVICES Presented By : Jolly . J Thekkiniyath 61 Krishna Thombre 62 Avantika Udas 63 Neeraj U 64

Company Profile :

Company Profile India’s largest FMCG company. Anglo-Dutch giant Unilever owns 52% share In India touching the lives of 2 out of 3 Indians. HUL has more than 100 factories for manufacturing its products. The brands spread across 20 consumer categories Mission that inspires more than 65000 employees With 35 power brands it meets everyday needs for nutrition, hygiene and personal care. Introduced first Sunlight soap HUL was formed in 1933 as Levers brothers India Limited. Three companies merge to form Hindustan Unilever Limited with 10% equity participation. HUL completed 75 years on 17 oct 2008. Turnover is RS.20,869.57 crore crores.

Mission :

Mission To add vitality your life “ We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. ’’ “ to earn the love and respect of India by making a real difference to every Indian.” Mr. Nitin Paranjape- CEO and MD

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Logo Speaks Adding Vitality

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Product portfolio Food Care Personal Care Home Care Water HUL’s product mix extends to 11 product lines ans more than 35 brands to suit Vitality needs of Indian people.

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Product MIX The length of product mix refers to total number of items In the product mix. Length= 35 brands The width of product mix refers to number of different product lines. Width =11 lines The depth of product mix refers to number of variants of variants of each product offered in line Eg: if Lux soap comes in 2 sizes and 9 variants then the depth of product is 18. Consistency refers to how closely product lines are in end use, production requirements, distribution channels. Etc. Eg: Fair & Lovely shows consistency because of its wide Distribution and reach even to rural interiors .

Example of LUX soap :

Example of LUX soap Lux brand launched in 1916 as washing bar. Brand value is more that Rs. 1000 crores. In India it was launched in 1929 and first brand ambassador was Ms. Leena Chitnis U.S.P Lux offers number of product variants Tangible , non- durable and convenience good Comes into 3 segments. Market share of Lux - more than 15%

P-Place :

P-Place HUL uses Network of More than 7000 stockiest And 6.3 Retail Outlets

P- Place :

P- Place Wholesalers Redistribution stockists Carrying and forwarding agents Company Depots Mother Depot and Just in time Project Leap OOH media

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Distribution Overview

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Project Streamline To cover rural areas with help of sub stockists and star sellers Goods distribution through C &F to rural distributors Unconventional means of transport. HLN Direct selling channel Independent entrepreneurs Customised offerings Urban coverage Project Streamline And HLN

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Operation Bharat Promotion

Promotion:

Operation Bharat Sponsoring TV shows OOH media Lifebuoy Swasthya Chetana Health and Beauty services Promotion

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Skimming pricing Low pricing Premium pricing Value pricing Pricing strategy of HUL

Mergers and Acquisitions :

In 1992 Broke bond acquired Kothari general foods with interest in Instant Coffee In 1993, acquired Kissan from UB group Dollops ice cream from cadbury india Formed 50:50 joint venture with Kimberly Clark Corporation in 1994 In 1994 strategic alliance and distribution rights from Kwality Ice cream group Amalgamation of Brooke Bond Lipton India in 1996-97, Pond’s India in 1998. In 2000 govt awarded 74% equity in Modern foods And in 2002 HUL acquired remaining stake in Modern Foods Mergers and Acquisitions

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HUL acquired Tata Oil Mills Company Ltd in 1993 Share swap ratio 2:15 With this entered into oil markets and created competition for Marico’s Parachute With this they acquired low priced brand Hamam. In 1993 share price of HLL was Rs. 375 as against 52.50 for TOMCO Dispute between Management and Labour union. HUL Acquires TOMCO

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With more than 400 Leverites HUL is CEO factory To keep people ahead of their talents thresholds by adding world class capabilities Our goal Our Approach HUL @ Human Resources

Employee Motivation :

Project Millenium Project Sankalp Vitality Index Changing roles after every 2-2.5 years Familiarization Brand management International Stint Business Project Factory Stint Rural consumer stint Business Orientation Program Sales stint Employee Motivation

Indian Brains In Demand :

Heavy move of HUL managers to join parent operations Emerging markets in AAC Majority of mangers are placed in the AAC operations External orientation of Indian managers. Dhaval Buch-VP Unilever Global Sanjay Dubey –Chairman, Unilever, Poland and Baltics One Unilever plan Greater cohesion No transition issues Indian Brains In Demand

Finance @HUL :

Market cap is Rs. 59, 369 crores For Q4, HUL posted growth in revenue as well as volume by 8% and 11% Net profit grew by 47% All categories registered double digit growth Revenue Rs. 17523 Crores Net profit Rs. 2202.03 Crores Category Wise Turnover Soaps and Detergents: RS. 8,180.29 Personal Products Rs.4,969.36 Beverages RS.2,119.44 Foods Rs. 713.97 Ice creams RS.228.94 Exports RS.1,000.15 Others RS. 315.50 Finance @HUL

Finance @HUL :

Market cap is Rs.60744.87 crores For Q4, HUL posted growth in revenue as well as volume by 8% and 11% Net sales rose to Rs 4316 crore from Rs 3989 crore. Net profit grew by 47% All categories registered double digit growth Revenue Rs. 17725.33 Rs. Crores Net profit Rs. 2749.97 Rs. Crores Finance @HUL

Revenue Share:

Revenue Share

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Companies Background and history Type : Public- Subsidiary of Tata Group Industry : IT services IT Consulting Founded : 1968 Headquarters : Mumbai, Maharashtra Key people : Ratan Tata (Chairman) S. Ramadorai(Vice Chairman) S. Chandrasekharan(CEO&MD) Services : Outsourcing BPO Software Products

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Vision Global Top 10 by 2010 Mission To help customers achieve their business objectives, by providing innovative, best-in-class consulting, IT solutions and services To make it a joy for all stakeholders to work with us Values Leading change. Integrity. Respect for the individual. Excellence. Learning and Sharing VISION values Mission

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies TQM Financial information Recent developments

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138 Offices in 42 countries 96 Solution Centres in 18 countries 1,26,150 * associates) 29,884# overseas TCS GLOBAL

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Indian branches Global units Africa : South Africa , Morocco [16] Asia (outside India) : Bahrain , China [17] , Hong Kong , Indonesia , Israel , Japan , Malaysia , Saudi Arabia , Singapore , South Korea , Taiwan , Thailand , UAE Australia : Australia Europe : Belgium , Denmark , Finland , France , Germany , Hungary , Iceland , Ireland , Italy , Luxembourg , Netherlands , Norway , Portugal , Spain , Sweden , Switzerland , United Kingdom North America : Canada , Mexico , USA South America : Argentina , Brazil , Chile , Colombia , Ecuador , Uruguay , Peru Branches of TCS Globally

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies TQM Financial information Recent developments

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TCS Broad Portfolio of Offerings IT Services Consulting Business process outsourcing IT Infrastructure solution Engineering and industrial services Product based solution Over 900 clients in 55 countries › Repeat business from more than 96% clients annually › 6 of Top 10 have been clients for over 5 years › 49 of the Top 100 Fortune 500 U.S. Companies

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Industry Expertise Unmatched Breadth and Depth of Industry Knowledge Banking / financial services Insurance Energy resources & utilities Government Life Sciences & Healthcare Manufacturing Retail & consumer goods Telecom & media High technology Travel transportation hospitality

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies TQM Financial information Recent developments

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IBM Microsoft Google Oracle Corporation SAP AG Accealor Accenture Computer Sciences Corporation Yahoo! Tata Consultancy Services

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies Financial information Recent developments TQM

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NO Acquisition date Company Business Country value 1 2 3 4 5 6 Nov 2008 Nov 2005 Oct 2005 Oct 2005 Nov 2006 May 2005 Tks-Technosoft Comicrom FNS Pearl Group TCS Management Sitar Banking product Banking BPO Core Banking Insurance IT service IT Service Switzerland Chile Australia United Kingdom Australia Sweden US$505 mn US$ 23.7 mn US$ 26 mn US$ 94.7 mn US$ 13.0 mn US$ 4.8 mn

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global Strategies TQM Financial information Recent developments

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The Global Network Delivery Model (GNDM) is a truly global network. The GNDM enables TCS’s delivery centers to collaborate on projects. The Company became the first organization in the world to be certified enterprise-wide for ISO 9001- 2000,ISO27001:2005 and ISO 20000:2005 in January 2007. Global Network Delivery Model

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International acquisition Competitors Global strategies TQM Financial information Recent developments

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GLOBAL STRATEGIES Employing overseas expert: US & UK for business revenue market India for skilled workers Global delivery centers Customer Centric Strategic Alliances Acquisition strategy

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Customer satisfaction forms a main part of strategy Process deployment Uniformity Customer satisfaction Quality Cost Delivery Time

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Market Penetration Strategy Current Markets: USA and Europe Current Products: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: As most large clients in US and Europe are cutting costs, TCS needs to be more aggressive on cost and quality Front . Market Development Strategy New/Emerging Markets: India, Middle-east and Australia Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: Since these are fast developing IT market, TCS needs a paradigm shift in focus from US and EU markets to these markets

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International acquisition Competitors Global strategies TQM Financial information Recent developments

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TCS takes responsibility for the products and services it delivers It adopts a systematic approach to problems and encourages experimentation, innovation and creativity in finding feasible solutions TCS also provides warranty periods in its contracts with its customers for after-delivery service in the case of a defect. TQM

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies TQM Financial information Recent developments

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Authorized Capital: The authorized capital of the company on its incorporation is Rs 6.00 Crores. Issued Equity Capital: 177 Lakhs comprising of 17.7 Lakhs of equity shares of Rs 10/ each introduction. Revenue: 30,028.92 crore ( US$ 6.52 billion)(2010) Operating income : 30,028.92 crore ( US$ 6.52 billion)(2010) Profit : 7,092.66 crore ( US$ 1.54 billion)(2010) Total Asset : $6.112 billion (2010) Total employees : 160,429 (As on 31 March 2010) FINANCIAL INFORMATION

Foreign Revenue growth:

Foreign Revenue growth

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INTERNATIONAL BUSINESS OF TCS Branches of TCS Globally International Services provided GNDM International Acquisition Competitors Global strategies TQM Financial information Recent developments

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Recent international development Jun 15, 2010 Tata Consultancy Services And Xynteo To Collaborate On Solutions For Low-Carbon Economy Mar 16, 2010 TCS bags five-year IT contract from Malaysia Airlines

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FUTURE INTERNATIONAL PLAN TCS is planning to expand further in the globally in order to capture new markets like China, Philippines, Asia-pacific, South America, Mexico and Eastern Europe .

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Thank You!!