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HUL Share Price – Analysis & History

Asefa Hafeez
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About Hindustan Unilever Ltd

 

Hindustan Unilever Limited (NSE: HINDUNILVR) is India’s largest Fast Moving Consumer Goods company, having over 80 years of experience in the country. On any given day, nine out of ten Indian households use its goods to feel well, look good, and get more out of life, providing the company with a unique opportunity to build a brighter future.  HUL strives every day to create a better future and helps people feel great, look good, and get more out of life with products and services that are both beneficial to them and their consumers.

 

With over 35 brands covering 20 various categories, including soaps, detergents, shampoos, skin care, toothpaste, deodorants, cosmetics, tea, coffee, packaged goods, ice cream, and water purifiers, the Company is an integral part of the daily lives of millions of Indian consumers. Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kwality Wall’s, and Pureit are among the portfolio’s most prominent household brands.

 

The company has over 21,000 people and generates approximately INR 51,193 crores in revenue (the financial year 2021-22). HUL is a subsidiary of Unilever, one of the world’s top providers of Food, Home Care, Personal Care, and Beverage goods, with sales in over 190 countries.

 

 

Hindustan Unilever Ltd – History

 

Hindustan Unilever (HUL) is the largest manufacturer of fast-moving consumer goods in India, with market-leading positions in Home & Personal Care Products and Foods & Beverages. Two out of every three Indians are touched by the brands of HUL, which span 20 key consumer sectors. 

 

In the summer of 1888, travellers to the Kolkata harbour observed boxes filled with Sunlight soap bars bearing the inscription “Made in England by Lever Brothers.” With it, a new era of advertising Fast Moving Consumer Goods began (FMCG). Lifebuoy was introduced in 1895, followed by other well-known brands such as Pears, Lux, and Vim. Vanaspati was introduced in 1918, and the well-known Dalda brand appeared on the market in 1937.

 

Hindustan Vanaspati Manufacturing Company was Unilever’s first Indian affiliate, established in 1931, followed by Lever Brothers India Limited (1933) and United Traders Limited (1934). (1935). These three firms united to become HUL in November 1956, and HUL was the first foreign subsidiary to give 10% of its shares to the Indian public.

 

The presence of Brooke Bond in India dates back to 1900. In 1903, the business introduced Red Label tea to the country. Brooke Bond & Co. India Limited was founded in 1912. Brooke Bond joined Unilever through an international acquisition in 1984. The old Lipton established ties with India in 1898. In 1972, Unilever purchased Lipton, and in 1977, Lipton Tea (India) Limited was established.

 

Since 1947, Pond’s (India) Limited has been present in India. In 1986, Chesebrough Pond’s USA was acquired by Unilever in a worldwide transaction. Since its inception, HUL has responded fiercely to stimulating economic growth. The path of expansion has been accompanied by sensible diversification, which has always been consistent with Indian opinions and aspirations.

 

Beginning in 1991, the liberalization of the Indian economy marked a distinct inflexion point in HUL’s and the Group’s growth trajectory. The elimination of the regulatory framework enabled the corporation to investigate every product and potential category without production capacity limits.

 

Meanwhile, deregulation allowed for alliances, acquisitions, and mergers. Effective April 1, 1993, the former Tata Oil Mills Company (TOMCO) amalgamated with HUL in one of India’s most prominent and widely discussed business events. In 1996, HUL and another Tata firm, Lakmé Limited, established a 50:50 joint venture, Lakmé Unilever Limited, to promote Lakmé’s market-leading cosmetics and other suitable items of both companies. In 1998, Lakmé Limited subsequently sold its brands to HUL and divested its 50% ownership in the joint venture to HUL.

 

1994 saw the formation of Kimberly-Clark Lever Ltd, a joint venture between HUL and the US-based Kimberly Clark Corporation that markets Huggies Diapers and Kotex Sanitary Pads. Unilever Nepal Limited (UNL) is HUL’s subsidiary in Nepal, and its factory marks the largest manufacturing investment in the Himalayan nation. The UNL facility produces HUL’s Soaps, Detergents, and Personal Products for both the domestic market and international exports. A number of significant mergers, acquisitions, and partnerships occurred in the food and beverage industry throughout the 1990s. In 1992, Brooke Bond bought Kothari General Foods, a company with extensive Instant Coffee interests. In 1993, it bought the Kissan and Dollops Ice – cream businesses from the UB Group and Cadbury India, respectively.

 

Unilever’s Tea Estates and Doom Dooma plantation companies were combined with Brooke Bond as a measure of backward integration. Then, in 1994, Brooke Bond India and Lipton India amalgamated to establish Brooke Bond Lipton India Limited (BBLIL), allowing for better concentration and synergy in the traditional Beverage business. BBLIL introduced the Wall’s line of frozen desserts in 1994. The company formed a strategic agreement with the Kwality Icecream Group families by the end of the year, and in 1995 it also acquired the marketing and distribution rights to Milkfood 100% Ice Cream.

 

With effect from January 1, 1996, BBLIL amalgamated with HUL. The internal restructuring culminated in 1998 when Pond’s (India) Limited (PIL) merged with HUL. Significant overlaps existed between the two firms’ products, speciality chemicals, and export sectors, in addition to a shared distribution infrastructure for Personal Products since 1993. In addition, they shared a management pool and a technical foundation. The merger was conducted to provide the Group with economies of scale on both domestic and international markets and to enable it to fund expenditures necessary for aggressively creating new categories.

 

In January 2000, the government made the historic decision to award 74% of Modern Foods to HUL, initiating the sale of government stock in public sector enterprises (PSU) to private sector partners. The debut of HUL into the bread market is a strategic expansion of the company’s wheat business. In 2002, HUL purchased the remaining government interest in Modern Foods.

 

HUL developed a number of new business ventures at the beginning of the twenty-first century. In 2001, Project Shakti was initiated. It is a rural initiative aimed towards tiny settlements with fewer than 5,000 inhabitants. It is a novel initiative that fosters rural prosperity while also benefiting businesses.

 

The Direct to Home business of Hindustan Unilever Network was launched in 2003, followed by the Pureit water filter in 2004. In 2007, the Company formally changed its name to Hindustan Unilever Limited after getting shareholder approval at the 74th Annual General Meeting on 18 May 2007. Brooke Bond and Surf Excel surpassed Rs 1,000 crores in sales in the same year, followed by Wheel in 2008, which surpassed Rs 2,000 crores in sales.

 

On October 17, 2008, HUL’s existence in India reached 75 years. In January 2010, the HUL headquarters relocated from the historic Lever House in Backbay Reclamation, Mumbai, to a new campus in Andheri (East), Mumbai.

 

The Unilever Sustainable Living Plan was officially launched in India on November 15, 2010, in New Delhi. The state-of-the-art HUL Learning Center was inaugurated in March 2012 on the Hindustan Unilever campus in Andheri, Mumbai.

 

In April 2012, the Hindustan Unilever campus in Andheri, Mumbai, unveiled the Customer Insight & Innovation Center (CiiC).

 

On October 17, 2013, HUL marked 80 years of corporate existence in India.

 

HUL established ‘Prabhat’ (Dawn) in 2013 as an initiative linked to the Unilever Sustainable Living Plan (USLP) to engage with and contribute to the development of local communities surrounding its manufacturing facilities. In 2013, Unilever inaugurated its first aerosol facility in Asia in Khamgaon, Maharashtra.

 

The “Winning in Many Indias” operating framework, which was piloted in 2013, went national in 2014. The number of sales offices increased from four to seven with the addition of offices in Lucknow, Indore, and Bangalore to the existing offices in Delhi, Kolkata, Mumbai, and Chennai.

 

HUL bought Indulekha in 2015, a premium hair oil brand with strong Ayurvedic origins. Nimman Foods Private Limited and HUL have signed an agreement for the sale and transfer of HUL’s bread and baking business under the brand name “Modern.”

 

In 2016, HUL presented ‘Suvidha,’ first-of-its-kind urban water, hygiene, and sanitation community center in one of Mumbai’s major slums, Azad Nagar, Ghatkopar. On March 11, 2017, a state-of-the-art manufacturing facility was inaugurated in Doom Dooma Industrial Estate, Assam.

 

HUL struck an agreement with Vijaykant Dairy and Food Products Limited (VDFPL) and its parent firm in 2018 to purchase its ice cream and frozen desserts business, including its main brand ‘Adityaa Milk’ and its front-end distribution network across regions.

 

HUL stated in 2020 that it will acquire VWash, the market leader in the category of female intimate hygiene, in order to access the currently underpenetrated and quickly expanding market segment. In 2020, with the merger of GSK Consumer Healthcare and Hindustan Unilever Limited, the iconic health food drink brands Horlicks and Boost will be added to HUL’s foods & refreshment portfolio, making it India’s largest F&R business.

 

In 2022, HUL’s revenue surpassed 50,000 thousand rupees. The new Home Care factory and automated distribution centre of Unilever India Limited were opened in Sumerpur, Uttar Pradesh, in July 2022. The factory is Unilever South Asia’s first zero-carbon and gender-balanced facility.

 

Top Hul’s Share holder

 

Below is a list of the top shareholders of HUL as of 30 August 2022.

 

Shareholder No. of Shares Shares (%)
Unilever PLC 1,11,43,70,148 47.43
Unilever Group Limited 10,67,39,460 4.54
Unilever UK & CN Holdings Limited 6,00,86,250 2.56
Unilever Overseas Holdings AG 6,87,84,320 2.93
Unilever South India Estates Limited 5,27,47,200 2.24
Unilever Assam Estates Limited 3,28,20,480 1.40
Life Insurance Corporation of India 12,00,87,627 5.11
SBI Arbitrage Opportunities Fund 2,78,72,718 1.19
Mutual Funds 8,55,78,291 3.64
Foreign Portfolio Investors 31,25,90,331 13.30

 

Top Management of Hul’s Share / Stock

 

Below is a list of top management of HUL as on 30 August 2022

Name  Designation
Sanjiv Mehta Chief Executive Officer & Managing Director
Ritesh Tiwari Executive Director, Finance & IT and Chief Financial Officer
Dev Bajpai Executive Director, Legal & Corporate Affairs and Company Secretary
Willem Uijen Executive Director, Supply Chain
Anuradha Razdan Executive Director, Human Resources
Srinandan Sundaram Executive Director, Food & Refreshment
Vibhav R Sanzgiri Executive Director, R&D
Kedar Lele Executive Director, Customer Development
Madhusudhan Rao Executive Director, Beauty & Personal Care
Deepak Subramanian Executive Director, Home Care

 

Highlights From HUL’s Latest Quarterly Results – Q1 FY 23

 

 

 

 

 

Key Points of Q1 FY 2023

 

 

 

 

 

 

 

 

Revenue As Per HUL’s Q1 FY 23 Results

 

 

 

 

 

Management’s Take

 

“In an environment which remains challenging, marked by unprecedented inflation and consequential impact on consumption, we have delivered yet another quarter of robust topline and bottom-line performance. We have grown competitively whilst protecting our business model by maintaining margins in a healthy range. While there are near-term concerns around inflation, the recent softening of commodities, forecast of a normal monsoon, and monetary/ fiscal measures taken by the government augur well for the industry.,” said Sanjiv Mehta, CEO and Managing Director, HUL.

 

FAQs

 

 

HUL’s share price is INR 2,663.90 as of 21 September 2022. HUL has provided a return of approximately -3.58% in the past 1 year as on 21 September 2022.

 

 

As on 30 August 2022 the 52 Weeks high and low of HUL’s share is listed below:

 

 

Key metrics to analyze HUL’s Share Price or any other share price are: 52-week high, a 52-week low, 1-year return, 5-year return, etc. 

 

 

Peers of Hindustan Unilever Ltd include Dabur India Ltd, ITC Ltd, Patanjali, Marico Ltd, etc.

 

 

The market cap of HUL’s Share and Stocks is INR 6.2 Lakh Crore as on 21 September 2022

 

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