The Origins and Evolution of Hindustan Unilever: Unraveling the Mystery
One of the common questions that arise when discussing Hindustan Unilever (HUL) is why it’s not classified as an Indian company but prominently features the term "Hindustan" in its name. This article aims to delve into the historical context, corporate structure, and operational aspects that explain this unique naming convention.
Global Presence and Indian Identity
To show that the London-based company has a significant presence in India, the term "Hindustan" has been added to its Indian establishment's name. This move was strategic, reflecting the company's commitment to establishing a strong foothold in the Indian market while still maintaining its international identity. Lever Brothers, a British company, began its operations in India in the early 20th century. Over time, it evolved into the global behemoth we know today as Hindustan Unilever.
Corporate Structure and Evolution
HUL's evolution is a fascinating tale of corporate mergers and strategic alliances. The company was established in 1933 as Lever Brothers, a subsidiary in India. In 1956, due to a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd., and United Traders Ltd., HUL was reconstituted as Hindustan Lever Limited. This merger was a pivotal moment in the company's history, solidifying its position within the Indian market.
HUL is now a subsidiary of Unilever, a multinational company headquartered in London. Unilever retains a controlling stake of 67%, ensuring that Indian operations remain closely aligned with global corporative goals while maintaining their distinct identity.
Branding and Market Strategy
The decision to incorporate "Hindustan" in the name serves multiple purposes. Firstly, it clearly communicates to the Indian market that HUL is a homegrown entity. This resonates with the local consumer’s identification with words carrying cultural significance. Secondly, it reinforces the company's commitment to Indian consumers, showcasing its dedication to the region.
BAR-CODE and UPC
While the name "Hindustan" highlights the company's Indian identity, HUL also complies with international standards in retail product tagging. For example, products sold in India bear UP (Universal Product Code) barcodes, which are prefixed with the code 890. This is in line with GS1, an international body that provides guidelines for barcode tagging on retail products. The use of UPC codes ensures that products are easily traceable, reducing confusion and improving supply chain efficiency.
Conclusion
Through strategic branding and operational decisions, Hindustan Unilever manages to strike a delicate balance between global corporate identity and regional market focus. This approach not only strengthens the company's position in the Indian market but also ensures its continued success on a global scale.
The naming convention and use of UPC codes reflect the company's commitment to bridging the gap between international standards and local market needs. HUL's journey from Lever Brothers to Hindustan Unilever serves as a testament to the company's adaptability and its ability to evolve with the changing dynamics of the global and Indian markets.