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    Itc Vs Hul

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    k07011994
    This document compares Hindustan Unilever Limited (HUL) and ITC Limited. HUL is India's largest FMCG company with popular brands like Lux and Lifebuoy. ITC was originally a tobacco company but is diversifying into non-tobacco businesses like foods, personal care, hotels, and agriculture. While HUL focuses only on FMCG, ITC still relies heavily on cigarettes. Both companies emphasize core values like integrity and customer focus. HUL faces risks from inflation and competition, while ITC faces regulatory risks for tobacco and challenges building new brands. In the long run, ITC's diversification may allow stronger growth if execution is successful.

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    © All Rights Reserved
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    Itc Vs Hul

    Uploaded by

    k07011994
    386 views14 pages
    This document compares Hindustan Unilever Limited (HUL) and ITC Limited. HUL is India's largest FMCG company with popular brands like Lux and Lifebuoy. ITC was originally a tobacco company but is diversifying into non-tobacco businesses like foods, personal care, hotels, and agriculture. While HUL focuses only on FMCG, ITC still relies heavily on cigarettes. Both companies emphasize core values like integrity and customer focus. HUL faces risks from inflation and competition, while ITC faces regulatory risks for tobacco and challenges building new brands. In the long run, ITC's diversification may allow stronger growth if execution is successful.

    Original Description:

    DIFFERENCE BETWEEN ITC AND HUL ON DIFFT BASIC

    Original Title

    itc vs hul

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    This document compares Hindustan Unilever Limited (HUL) and ITC Limited. HUL is India's largest FMCG company with popular brands like Lux and Lifebuoy. ITC was originally a tobacco company but is diversifying into non-tobacco businesses like foods, personal care, hotels, and agriculture. While HUL focuses only on FMCG, ITC still relies heavily on cigarettes. Both companies emphasize core values like integrity and customer focus. HUL faces risks from inflation and competition, while ITC faces regulatory risks for tobacco and challenges building new brands. In the long run, ITC's diversification may allow stronger growth if execution is successful.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    386 views14 pages

    Itc Vs Hul

    Uploaded by

    k07011994
    This document compares Hindustan Unilever Limited (HUL) and ITC Limited. HUL is India's largest FMCG company with popular brands like Lux and Lifebuoy. ITC was originally a tobacco company but is diversifying into non-tobacco businesses like foods, personal care, hotels, and agriculture. While HUL focuses only on FMCG, ITC still relies heavily on cigarettes. Both companies emphasize core values like integrity and customer focus. HUL faces risks from inflation and competition, while ITC faces regulatory risks for tobacco and challenges building new brands. In the long run, ITC's diversification may allow stronger growth if execution is successful.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    Made by:Kiran 015121

    Kirti Prakash Pathak 015122


    Komal Shukla 015123

    ITC limited
    ITC was incorporated on August
    24, 1910 under the
    name Imperial Tobacco
    Company of India Limited.
    Now known as India Tobacco
    Company Limited from 1970.
    Headed by Yogesh Chander
    Deveshwar.

    Brands

    Foods, Personal Care, Cigarettes and Cigars, Branded


    Apparel, Education and Stationery Products, Incense
    Sticks and Safety Matches, Hotels, Paperboards &
    Specialty Papers, Packaging, Agri-Business and
    Information Technology

    HUL
    Hindustan Unilever Limited (HUL)
    is India's largest FMCG Company
    with a heritage of over 80 years
    in India.
    Incorporated in the year 1933
    Chairman Mr. Harish Manwani
    HUL is a subsidiary of Unilever,
    one of the worlds leading
    suppliers of fast moving
    consumer goods with strong local
    roots in more than 100 countries
    across the globe.

    Brands

    soaps, detergents, shampoos, skin care, toothpastes, deodorants,


    cosmetics, packaged foods, ice cream, and water purifiers.
    Its portfolio includes leading household brands such as Lux,
    Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline,
    Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
    Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

    COMPARATIVE
    ANALYSIS

    COMPANIES BUSINESS
    HUL
    HUL is the largest pure-play
    FMCG company in the
    country and has one of the
    widest portfolio 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
    ITC is not a pure-play
    FMCG company, since
    cigarettes is its primary
    business.
    It is diversifying into nontobacco.
    FMCG segments like foods,
    personal care, paper
    products, hotels and agribusiness to reduce its
    exposure to cigarettes.

    CORE VALUES
    HUL
    Always working with
    integrity
    Positive impact
    Continuous commitment
    Setting out our
    aspirations
    Working with others

    ITC
    Trusteeship
    Customer Focus
    Respect For People
    Excellence
    Innovation
    Nation Orientation

    RISK
    HUL

    ITC

    Being an MNC operating in


    India, HUL is more
    conservative in its strategies
    than its Indian counterparts.
    Moreover, given increasing
    competition, it faces the risk
    of being overtaken by
    domestic players in various
    categories. Prolonged
    inflation may lead to margin
    contraction, in case HUL is
    not able to pass on this
    burden to consumers.

    Increased regulatory clamps on


    tobacco, along with rising tax
    burden. With its foray into the
    conventional FMCG space, ITC
    has entered the high-clutter
    branded products market. This
    will burden its resources in
    terms of ad spend and brandbuilding. Creating brand recall
    and building market share in
    new products are ITCs key
    challenges. Export ban and
    rising crop prices pose a threat
    for its agri-business, taxing its
    margins

    SUSTAINABILITY POLICIES
    HUL
    Health & hygiene
    Improving nutrition
    Greenhouse gases
    Sustainable sourcing
    Enhancing livelihoods
    Empowering
    communities
    Stakeholder
    engagement

    Life-cycle Sustainability

    ITC

    Responsible Sourcing
    Diversityand Equal
    Opportunity
    Human Rights
    consideration
    of Stakeholders beyond
    the
    Workplace
    Environment, Health &
    Safety
    Policy on Prohibition of
    Child Labor and Prevention

    OVERALL STRATEGY
    HUL

    ITC

    HUL always believes in


    customer friendly products with
    major emphasis on low cost
    overall without compromising on
    the quality of the product.

    ITC is focusing on delivering


    value at competitive prices. Its
    tremendous reach through
    extensive distribution chain has
    been a competitive advantage.

    They are leveraging the


    capabilities and scale of the
    parent company and focusing
    on the value of execution.

    Additionally, the company's echoupal model for direct


    procurement is well known
    under which ITC partners with
    over 100,000 farmers for
    spices and wheat procurement
    and an even larger number for
    oilseeds. This kind of rural
    pedigree is hard to beat

    The entire product portfolio is


    also being tweaked to include
    premium offerings such as
    Ponds Age Miracle and dove
    shampoo in skin and hair care.

    GROWTH DRIVERS
    HUL

    ITC

    The Company has been


    launching new products and
    brand extensions, with
    investments being made
    towards brand-building and
    increasing its market share. HUL
    is also streamlining its various
    business operations, in line with
    the One Unilever philosophy
    adopted by the Unilever group
    worldwide. Introduction of
    premium products and addition
    of new consumers via market
    expansion will be HULs growth
    drivers.

    ITCs backward integration to


    ensure that its products pass
    efficiently from the farms to
    consumers has helped it to cut
    down supply and procurement
    costs. ITCs non-cigarette FMCG
    business leverages the large
    distribution network the
    company has developed by
    selling cigarettes over the
    years. A rich product mix, along
    with ramp-up of investments in
    its new sectors, will be
    instrumental in charting ITCs
    growth path.

    CONCLUSION
    HULs up-and-running business model is a treat for
    investors seeking exposure in the FMCG segment.
    The company has delivered in the past and has
    the potential to do better in future. In the small
    and medium term. ITCs growth story is still
    evolving.
    ITC is eyeing the pie which HUL and other FMCG
    players currently enjoy. Though risky, the
    companies business model will pay off in the long
    run. ITC has proved its expertise in the cigarettes,
    hotels, paper and agri-businesses. Investors who
    want to bank on its execution ability in FMCG can
    consider the stock with a long-term horizon.

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