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Hindustan Unilever Ltd.

BSE: 500696 Sector: Consumer
NSE: HINDUNILVR ISIN Code: INE030A01027
BSE 00:00 | 28 Oct 2390.00 -7.00
(-0.29%)
OPEN

2400.00

HIGH

2415.95

LOW

2368.30

NSE 00:00 | 28 Oct 2389.65 -6.95
(-0.29%)
OPEN

2400.00

HIGH

2416.00

LOW

2368.00

OPEN 2400.00
PREVIOUS CLOSE 2397.00
VOLUME 86609
52-Week high 2859.10
52-Week low 2043.80
P/E 67.23
Mkt Cap.(Rs cr) 561,554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2400.00
CLOSE 2397.00
VOLUME 86609
52-Week high 2859.10
52-Week low 2043.80
P/E 67.23
Mkt Cap.(Rs cr) 561,554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hindustan Unilever Ltd. (HINDUNILVR) - Chairman Speech

Company chairman speech

We have been able to bring down the curtains on the financial year 2020-21 with arobust set of numbers. We reported a turnover of Rs 45311 crores.

Dear Shareholders

The year 2020-21 has been challenging for each one of us. The Covid-19 pandemic has hada significant impact on lives livelihoods and the business. Operational challengesmounted due to restricted movement and disrupted supply lines during the first few monthsof the pandemic. As the second wave of the pandemic unfolds with predictions of a thirdwave in the offing our focus continues to be on our people's health & safetyensuring uninterrupted supplies of Covid relevant portfolio meeting the demand arisingout of evolving consumer needs caring for the communities in which we operate andfinally protecting our business model.

The relentless commitment and dedication of every member of the Hindustan Unileverfamily helped the business overcome many challenges in the past year. As a result we havebeen able to bring down the curtains on the financial year 2020-21 with a robust set ofnumbers. We reported a turnover of Rs 45311 crores growing by 18% and Domestic ConsumerGrowth* was 6%. Profit after tax at Rs 7954 crores was up 18%.

We managed Covid challenges well and sustained strong cash generation. The Board ofDirectors has proposed a final dividend of Rs 17 per share subject to approval ofshareholders at the AGM. Together with interim dividend of Rs 14 per share the totaldividend for the financial year ending 31st March 2021 amounts to Rs 31 per share. Duringthe year special dividend of Rs 9.5 per share was also paid. If we add up the totaldividend payout during the year will be over Rs 9500 crores.

Last year saw significant change in what consumers buy and where they shop — fromonline shopping to a rising concern about health hygiene sanitation and nutrition. Ourbrands strived to meet these changing needs by launching innovations building awarenessthrough communication shifting to newer ways of reaching consumers and connecting withcommunities through purpose-led initiatives.

In the pandemic the humble bar of soap became the first line of defense resulting inan unprecedented demand for Skin Cleansing and hand hygiene products. To serve the peopleof our country Lifebuoy launched 15 new product variations in the hand hygiene portfoliowithin just 30 days. We completed the acquisition of female intimate hygiene brand VWashthat is off to a good start. This year we launched our Positive Beauty vision to drivepositive change for people and the planet through our brands. We took a decisive step toembrace diversity and promote inclusion across our Beauty and Personal care portfolio andrenamed the iconic Fair & Lovely brand to Glow & Lovely. Dove furthered thisvision through its #StopTheBeautyTest campaign and Clinic Plus on Women's Day launchedits new campaign pledging to educate 100000 women across our ecosystem to stand upagainst domestic violence.

As people continued to stay home our Home Care portfolio had a major role to play. Welaunched the Surf excel Active Hygiene and introduced the Lifebuoy Laundry Sanitiser. Wesaw a significant rise in dishwasher sales in the country. Vim launched a new ‘matic'range for dishwasher users and also addressed the growing need for hygiene with the launchof the anti-bacterial variant in bars and liquids.

Domex launched a campaign highlighting its unique formulation with sodium hypochloritethat is proven to kill coronavirus within 60 seconds. In line with the growing consumertrend of natural hygiene solutions we launched Nature Protect with a neem-basedportfolio comprising surface cleaners laundry fruit-and-veggie cleaners and on-the-gocleaner. Last September we announced our Clean Future vision that aims to give peopleaffordable high-performing products that are kinder to both them and the environment.

Our Foods & Refreshment brands continued to focus on providing healthy options forthe growing in-home eating trend and address the need for immunity. Our Tea business saw asignificant rise in market share driven by robust growth across brands like Taaza BrookeBond Red Label and Taj Mahal. We expanded our fortified foods range and launchedHellmann's mayonnaise an excellent source of good fats nationally. We also launchedKissan Peanut Butter that is naturally a source of protein and zinc. To ensure that ourconsumers have access to their favourite ice-creams we partnered with Swiggy and Zomato.Last year we completed the merger of GSK Consumer Healthcare into HUL and welcomed theiconic brands Horlicks and Boost virtually during the national lockdown. To address theneed for building immunity we launched the new Horlicks with added zinc and donated it tohospitals frontline workers and even vulnerable children. The year saw Unilever launchits new Future Foods ambition to support a fairer healthier and more sustainable globalfoods system. Through the new commitments in India we aim to create healthier andfortified foods that will address the challenges of unbalanced diet and micronutrientdeficiency.

Across our Supply Chain and Sales our top priority was the safety of our people and ofthose who work with us. We were one of the first companies to provide Covid-19 medicalinsurance for all those who work at the front-end. Our eB2B app Shikhar enabled ourretailer partners to place contactless orders conveniently and now we have over 5 lakhretailers ordering through Shikhar. We have nearly 136000 Shakti Entrepreneurs whoplayed an important role and continue to do so in educating people on hand hygiene andensuring critical supply of essential products in rural areas during the pandemic.

We made significant progress in our sustainability agenda. We reduced CO2emissions per tonne of production by 91% compared to 2008 baseline. We collected andsafely disposed more than 1 lakh tonnes of post-consumer use plastic waste since 2018.Starting this year we have committed to collect more plastic than we use in ourpackaging. Through interventions at the grassroot level the Hindustan Unilever Foundationhas created water potential of more than 1.3 trillion litres. Through our WASHinitiatives we have reached over 154 million people across the country till now.

The Unilever Sustainable Living Plan paved the way for the new Unilever CompassCommitments that were announced this year to address the key challenges of our time suchas plastic waste gender equality human rights and fair value—plus of courseclimate change and social inclusion. I would like to assure you that we continue to standwith the nation during this challenging phase of Covid-19. We were among the firstcompanies to commit Rs 100 crores to the nation in its fight against coronavirus.Recently we leveraged the strength of the larger Unilever ecosystem and have swiftlyprocured over 5000 oxygen concentrators to be made available to the most impacted areasin the country. We continue to donate essential health and hygiene products such as soapsand disinfectants to the frontline and to vulnerable communities including tea growingcommunities in Assam along with our partners UNDP and UNICEF. Despite our best effortswe lost several Hindustan Unilever colleagues to the Covid-19 pandemic. Our thoughts goout to their families and friends and indeed to all those whose lives have been impacted.The pandemic tested us in unprecedented ways. It tested the resilience of our businesscharacter of our people agility of our operations and the depth of our financialstrength. It has made us a more resilient business that is better prepared for thevagaries of the fast-changing world.

Our five growth fundamentals – Purposeful Brands Improved Penetration ImpactfulInnovations Design 4 Channel and Fuel for Growth combined with a clear focus on the fourpriorities of People Supply Demand Cash & Cost and the technology muscle that wehave built over last few years positions us well for the future.

I would like to take this opportunity to thank all our people who have been tirelesslyworking to ensure that we continue to serve the people of this country through thisextremely challenging year. Most importantly I would like to thank you our shareholdersfor your overwhelming trust support and confidence in Hindustan Unilever Limited.

Warm regards

Sanjiv Mehta

Chairman and Managing Director

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