History of Hindustan Unilever: A Legacy of Innovation and Social Impact Since 1931

As one of the largest players in the global fast-moving consumer goods (FMCG) industry, Hindustan Unilever’s ability to keep up with consumers’ changing needs dates back to the 1930s. For business owners, marketers, and those intending to learn from successful business stories, the history of Hindustan Unilever is one of innovation, resilience, and social impact.

At Business2Community, we’ve consulted a range of sources to deliver a comprehensive account of Hindustan Unilever’s journey from a branded goods distributor to an Indian FMCG industry giant.

Who Owns Hindustan Unilever?

Hindustan Unilever Limited (HUL) is owned by parent company Unilever PLC and other shareholders. As of March 2024, the shareholding structure was as follows:

• Promoters/founders – 61.9% with Unilever PLC holding the largest share.
• Domestic institutional investors – 13.28% with SBI Funds Management Ltd. holding the largest stake, at 1.572%
• Foreign institutional investors – 12.67%
• Public – 12.16%

Hindustan Unilever’s origins can be traced back to 1888. The first Sunlight soap bars arrived on India’s shores, marking the beginning of the branded FMCG market.

Over the next four decades, the Lever Brothers (now the British-Dutch conglomerate, Unilever) released other famous brands like Pears, Lux, and Vim, eventually setting up subsidiaries throughout the 1930s. These three subsidiaries were merged to form Hindustan Unilever Ltd (then known as Hindustan Lever Limited) in November 1956, and were originally:

• Hindustan Vanaspati Manufacturing Company (1931)
• Lever Brothers India Limited (1933)
• United Traders Limited (1935)

The company offered 10% of its equity (557,000 shares of ₹10 each at a premium of 5 paise per share) to the Indian public, becoming one of the first foreign subsidiaries to do so.

The issue was oversubscribed six times, and 21,623 Indians came to own a part of Hindustan Lever Limited.

Indian shareholding increased to 14% in 1965 and 15% in 1966. To comply with Foreign Exchange Rate Act (FERA) legislation, in Unilever brought its shareholding down to 51% in 1977. However, by 2014, Unilever had managed to increase its stake Hindustan Unilever to 67%.

The company’s shares are listed and traded at the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).

As of May 2024, the Hindustan Unilever share price was ₹2,320.35 ($27.84 at the time) and the company had a net worth or market capitalization of ₹5.48 lakh crore ($65.47 billion).

Who is the Hindustan Unilever CEO?

The CEO of Hindustan Unilever is Rohit Jawa, who has held the position since June 27, 2023, when he took over from managing director and CEO Sanjiv Mehta.

With a proven track record of sustained business results across India, Southeast Asia, and North Asia, Jawa has the expertise to steer Hindustan Unilever through its next phase of growth.

Often referred to as the CEO factory, Hindustan Unilever has had iconic leaders whose strategies and leadership skills have shaped the company into the global powerhouse it is today.

Growth and Development of Hindustan Unilever

Headquartered in Mumbai, India, Hindustan Unilever Limited serves over 700 million consumers in India, making it one of the biggest and most important companies in the world. The company’s 50+ brands spanning 15 distinct categories are used in 90% of households and sold in over 9 million retail outlets across the country.

Its equally successful subsidiaries include:

• Unilever India Exports
• Lakme Lever Private Limited
• Hindustan Field Services Private Limited
• Lakme Lever Private Limited
• Unilever Nepal Limited
• Unilever Nepal HomeCare
• Jamnagar Properties Private Limited
• Zywie Ventures Private Limited
• Hindustan Unilever Network
• Unilever Europe Business Center

Below, we track Hindustan Unilever’s key developments and milestones over nine decades.

1931-1939: Unilever Subsidiaries Gain Traction

In one of the biggest industrial amalgamations in European history, Unilever was formed on January 1, 1930, through the merger of Lever Brothers and Margarine Union.

Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company in 1931, following the successful launch of key products into the Indian market in 1888. Other subsidiaries soon followed. Lever Brothers India Limited was launched in 1933, and United Traders Limited opened in 1935.

The next few years saw the opening of a soap plant and the leasing of the North West Soap Company for increased soap production for Lever brands.

1940-1949: Unilever Prepares for Expansion

By the early 1940s, Unilever had purchased two factories: the Sewri factory site to ramp up the production of vanaspati (vegetable oil products) and North West Soap Company’s Garden Reach factory to expand its personal care products.

The company also focused on its marketing and sales efforts. Local sales agencies in Mumbai, Chennai, Kolkata, and Karachi were acquired and the company started training Indians to occupy management positions.

1950-1959: Forming HUL

The 1950s saw the purchase of three new factories, the appointment of the company’s first Indian Director, and an Indian majority (65%) management team.

In November 1956, three Unilever Indian corporations merged to form Hindustan Unilever Limited (then known as Hindustan Lever Limited).

By 1958, Hindustan Unilever had launched Surf and established a research unit at its Mumbai factory.

1960-1969: Price Controls Threaten Operations

In 1961, the company appointed the first Indian Chairman in Hindustan Unilever history, Mr. Prakash Tandon.

Over the next two years, a formal export department was established and the company opened its first Head Offices in Mumbai.

Despite challenges such as a statutory price control on vanaspati (1966) and an informal price control on soap (1968), Hindustan Unilever prioritized expansion and diversification.

With revenues of ₹93.28 crore in 1967 ($12,4 million at the time). Hindustan Unilever was ranked among the top five private sector firms in India in terms of sales.

By the end of the 1960s, the company had significantly diversified its operations with an animal feed plant in Ghaziabad, nickel catalyst production, a new Hindustan Unilever Research Centre in Mumbai, and a fine chemicals unit in Andheri.

The product portfolio now included brands such as:

• Surf
• Pond’s Cold Cream
• Etah Diary
• Anik Ghee
• Sunsilk Shampoo
• Signal toothpaste
• Levers Baby Food
• Taj Mahal Tea
• Rin Bar
• Bru Coffee

1970-1979: Diversification Drives Growth

In 1971, the Unilever Special Committee approved Hindustan Lever’s diversification into chemicals. A pilot plant for industrial chemicals followed three years later, as did the much-needed withdrawal of the informal price control on soaps.

Price controls were removed from vanaspati and baby foods in 1975, allowing the company to re-establish the Dalda brand.

Throughout the 1970s, the Hindustan Unilever research center pioneered the use of indigenous materials. For example, the use of unconventional oils for soapmaking significantly reduced India’s reliance on costly tallow imports.

By the end of the decade, the company had developed four chemicals from lemongrass, five from citronella, and one from turpentine.

These efforts strengthened Hindustan Unilever’s reputation with the Indian Government and worked in the company’s favor during complex FERA legislation negotiations. The FERA legislation mandated that all companies not engaged in “core” or non-technology industries had to bring their shareholding down to 40%.

The company continued developing technology for processing minor oils such as neem oil and rice bran oil, as well as catalyst manufacture. It also began sodium tripolyphosphate (STPP) production in Haldia.

These ambitious efforts were recognized as sophisticated technology and Hindustan Unilever was allowed to hold 51% equity in 1980 under the following conditions:

• 60% of the company’s turnover had to be in core or high-technology sectors.
• The company would also need to export 10% of its production.

1980-1989: HUL Cultivates New Markets

In 1980, Dr. Ashok Ganguly, a scientist, took over from Thomas as Chairman. By then, Hindustan Unilever had become India’s second-largest private sector exporter, not only exporting 10% of its own products but also carpets, shoes, garments, and other products processed under its specifications.

In 1984, Hindustan Unilever’s foods and animal feed businesses were transferred to Lipton India, saving the ailing tea company from bankruptcy.

With liberalization on the horizon, the company embarked on its largest marketing development initiatives to date. Realizing the wealth hidden in rural India, the company took to targeting this segment with low-cost shampoos and conditioners.

The company also sought licenses and expanded across India in search of new opportunities. By 1988, the company had launched its first range of hybrid seeds and Lipton Taaza Tea.

1990- 1999: Liberalization Ushers in A New Era

When the liberalization of the Indian economy started in 1991, Hindustan Unilever doubled down its growth plans, exploring multiple product segments. In 1992, the government recognized Hindustan Unilever as a Star Trading House in Exports and this would eventually go up to Super Star Trading House in 1996.

By 1993, the company was the first FMCG firm in India to exceed ₹1,000 crore ($282 million) in earnings.

Throughout the 1990s, Hindustan Unilever prioritized strategic mergers and acquisitions. The company:

• Merged with competitor Tata Oil Mills Company (TOMCO) in 1994, resulting in the largest corporate merger in history at the time.
• Formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994 to market Huggies Diapers and Kotex Sanitary Pads.
• Set up a subsidiary in Nepal, Unilever Nepal Limited (UNL) in 1994.
• Merged with Brooke Bond Lipton India in 1996 to create India’s largest private sector company.
• Formed a joint venture, Lakme Lever Ltd with Indian cosmetics giant Lakme Ltd in 1996.
• Merged with Pond’s India Ltd and acquired the Lakme brand, factories, and Lakme Ltd.’s 50% equity in Lakme Lever Ltd.
• Divested 15 non-FMCG businesses including animal feeds, specialty chemicals, nickel catalysts, adhesives, thermometers, and mushrooms.

In 1998, the Securities and Exchange Board of India (SEBI) ordered the prosecution of five Hindustan Unilever directors for insider trading. The regulator also directed the company to pay ₹3.04 crore ($736,598 at the time) as compensation.

By the end of the decade, Hindustan Unilever had opened 8 new factories and entered profitable segments such as the branded staples market. The company also established an international research laboratory in Bangalore and opened new regional innovation centers.

2000-2009: Project Millennium Begins

Hindustan Unilever kicked the year 2000 off with Project Millennium, its strategic plan to:

• Study new growth opportunities
• Increase cost efficiency
• Boost knowledge sharing
• Attract and retain talent

One of the first major developments of the year was the acquisition of a significant 74% stake in Modern Food Industries Ltd: the first public sector company to be divested by the Government of India. >That same year, Hindustan Unilever was forced to shut down its thermometer factory after Tamil Nadu state authorities discovered it was contaminating the environment by dumping tonnes of toxic waste.

In 2002, the company acquired the government’s remaining stake in Modern Foods and subsequently entered the bread market. Moreover, 35 “Power” brands, out of a total of 110 brands, were identified and upgraded for higher growth. Examples included the launch of Surf Excel and the revamping of Lifebuoy soap.

By 2005, the company had launched its direct-to-home business, Hindustan Lever Network, the Pureit water purifier, and officially founded Unilever India Exports Limited.

Meanwhile, revenues were ₹11,976 crore ($2.8 billion), a 68% increase from 1996 revenues of ₹7,120 crore ($2 billion).

In 2007, the company’s name changed to Hindustan Unilever Limited. The company also formed a joint venture with Smollan Holdings in South Africa to focus on in-store executions and field services for modern trade in India.

Additionally, sales of Brooke Bond and Surf Excel breached the ₹1,000 crore ($250 million) sales mark. The next year sales of Wheel hit a significant ₹2,000 crore ($500 million) sales milestone.

2010-2019: Social Initiatives Take Off

In 2010, Hindustan Unilever moved its headquarters to Unilever House in Andheri, Mumbai. The company launched the Unilever Sustainable Living Plan and established the Hindustan Unilever Foundation to support socio-economic development.

Two years later, a Learning Center and a Customer Insight Innovation Center were inaugurated at the Hindustan Unilever campus in Andheri. This was followed by the inauguration of Unilever’s first aerosol plant in Khagamon in 2013.

By 2016, the company’s revenue had hit ₹31,987 crore ($4.77 billion). Six brands, namely Surf Excel, Brooke Bond, Wheel, Lifebuoy, Rin, and Fair & Lovely had crossed the ₹2,000 crore mark ($300 million), while Surf Excel had crossed the ₹3,000 crore mark ($448 million).

Following a lengthy dispute over poisoning allegations at its factory in Tamil Nadu, Hindustan Unilever reached an undisclosed settlement deal with a workers association representing 591 former employees and their families in 2016.

.@RedLabelChai encourages us to hold the hands of those who made us who we are. Watch the heart-warming video #ApnoKoApnao pic.twitter.com/P3mZCsltmt

— Hindustan Unilever (@HUL_News) March 7, 2019

In March 2019, a Red Label Tea ad shared on Twitter landed the FMCG firm in hot water. Consumers felt that the ad derided Kumbh Mela, a mass pilgrimage and the largest gathering of Hindus in the world. This resulted in calls for a complete boycott of Hindustan Unilever products and the hashtag #BoycottHindustanUnilever going viral.

As the decade came to a close, Hindustan Unilever commissioned a new manufacturing facility in Assam. It also strengthened its presence in the ice cream and frozen desserts business through an acquisition deal with Vijaykant Dairy and Food Products Limited (VDFPL).

2020 – Present: HUL Explores New Horizons

To enter the underpenetrated and rapidly growing feminine intimate hygiene market segment, Hindustan Unilever acquired market leader VWash in 2020.

In a move that made it the largest F&R business in India, Hindustan Unilever merged with GSK Consumer Healthcare. This brought health drink brands such as Horlicks and Boost to the company’s foods & refreshment portfolio.

The company also changed the name of its Fair & Lovely skin-lightening cosmetics and pledged to stop using terms such as “whitening” in its marketing. This was after coming under fire for engaging in anti-racism activism while profiting from products promoting colorism.

By 2021, the company had reduced its carbon emissions by 91%, become plastic neutral, and achieved zero waste to landfill. Project Shakti has also empowered over 150,000 rural women entrepreneurs since 2011.

In July 2022, the company opened a new home care factory and automated distribution center in Sumerpur, Uttar Pradesh. This was not only a zero-carbon factory but also Unilever South Asia’s first gender-balanced factory.

The company’s turnover crossed the ₹50,000 crore ($6.7 billion) mark in 2022 and in 2023, turnover increased to ₹58,154 crore ($7.05 billion).

Hindustan Unilever Dividend History

Hindustan Unilever has always prioritized shareholder value and wealth creation. Between 1956 and 1969, Hindustan Lever remitted dividends of £7.8 million or ₹13.85 crore to Unilever.

The company has declared 50 dividends since 2001.

• Between 1992 and 2001, the dividend per share increased from ₹0.42 to ₹5.00.
• Between 2002 and 2011, the dividend per share increased from ₹5.00 to ₹7.00.
• Between 2012 and 2021, the dividend per share increased from ₹16.50 to ₹32.

Dividends of ₹36 per share were paid in 2022, with this increasing to ₹40 per share in 2023. Overall, dividend payouts continue to show an upward trend consistent with the company’s increasing profitability.

History of the Hindustan Unilever Logo

The Hindustan Unilever logo has had only one significant redesign in its history.

1956 – 2007: The Green ‘H’

The first Hindustan Unilever logo was an abstract green emblem with the words ‘Hindustan Lever Limited’ in bold black uppercase letters below it. While the inspiration behind this logo remains unclear, it saw the company through five decades of growth.

2007-Present: The Blue ‘U’

When the company’s name changed to Hindustan Unilever Limited in 2007 to reflect the “One Unilever” philosophy, the logo was updated to 25 distinct dark blue icons fashioned in the shape of a ‘U’.

Under it, the words “Hindustan Unilever Limited” appear in a custom stylized blue font. Each icon stands for an aspect of Unilever’s business and is a visual expression of the company’s commitment to sustainable living.

The Future of Hindustan Unilever

Hindustan Unilever Limited’s success reflects the importance of understanding one’s market to overcome macro-environmental challenges and deliver what customers truly need.

The company’s focus on market research, product development, and innovation has enabled it to develop products locally. In turn, this has helped cut costs and allowed Hindustan Unilever to respond to market conditions quickly.

With the Indian beauty market rapidly shifting due to:

• Changing lifestyles
• Increased disposable income
• Exposure to global trends
• A growing emphasis on self-care and wellness

The company plans to invest in its best-selling beauty brands, digital transformation, and enhancing its capabilities across the supply chain.

It also plans to prioritize sustainability in the four areas that have the most material impact on its business — climate, nature, plastics, and livelihood.

Based on its history, Hindustan Unilever is well-positioned to enhance its portfolio and capabilities to keep meeting the evolving needs of Indian consumers.

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