Lifebuoy, Lux, Wheel Sustain Strong Growth; Innovations Spur Surf Excel, Rin Supreme

Lifebuoy, the 107-year-old brand, continued to post strong double-digit growth. A new Lifebuoy Active Green, with neem and tulsi, has been introduced. The anti-pimples Lifebuoy Active Gold has been relaunched with an improved formulation. Lifebuoy has now also entered the talc category. These extensions, coupled with the relaunch of 2001, have fuelled Lifebuoy's double-digit growth quarter on quarter and strengthened brand imagery.

Lux has posted good growth, even at a premium, despite the market decline, proving once again the efficacy of HLL's Power Brands strategy. The Lux range has been relaunched, with significant upgradation in sensorials and aesthetics. It now even more sharply focuses on beauty needs. Lux is now the clear market leader in the category, by value, sustaining market share gain quarter on quarter.

In detergents, Wheel sustained its third consecutive year of strong growth, and strengthened its position as the market leader in the category. A new variant, Wheel Active, has been introduced to upgrade consumers to a higher order product. Despite higher price, it has been growing robustly, despite intense low-cost competition and market sluggishness.

The premium brand, Surf Excel, was relaunched with a major new innovation. The new formulation continues to offer the best stain removal, but with 50% less effort behind rinsing and water consumption. This has resulted in growth, in a segment which has been declining. The price of Surf Excel sachets has been made even more attractive to widen the user base of premium brands. The heritage brand, Surf, has been migrated to the Surf Excel franchise.

Rin Supreme Bar has undergone a fundamental transformation. HLL has innovated a technology, which eliminates insoluble fillers in detergent bars, delivering superior whiteness. The relaunched Rin Supreme Bar has begun to register good growth.

February 2004

STRONG DOUBLE-DIGIT GROWTH IN PERSONAL PRODUCTS
POWERED BY ALL BRANDS

The Personal Products business of Hindustan Lever Limited (HLL) posted strong double-digit growth, powered by all its 12 brands. This achievement is a result of impactful and well-executed innovation and activation, in line with the company's Power Brands strategy.

The Skin Care portfolio posted strong double-digit growth for the third consecutive year. Fair & Lovely, with new Anti Marks and Deep Skin variants, has doubled its turnover in three years, and increased market share significantly.

The Oral Care business has rebounded back, also with double-digit growth. Both Pepsodent and Close-up have posted growth, despite a decline in the oral care market. This was achieved by strong activation, new price points and effective communication

The Hair Care business has regained momentum with growth in all brands. HLL's shampoo volumes have grown by strong double digits after the introduction of 50 paise and Re.1 sachets. Sunsilk Naturals has been relaunched with improved formulations and customised variants, strengthened with natural ingredients.

In Colour Cosmetics, Lakme posted very strong double-digit growth with a number of innovations. They include a Face Magic Souffle, and a very impactful relaunch of True Wear Nail Enamel. Lakme's sun care, moisturising and winter protection products continued to enjoy high acceptance. On the services front, 52 Lakme Beauty Salons have been set up across the country. The salons now offer advanced Skin and Hair Care services.

Even as HLL provided top of the line products to top-end urban consumers, it has taken steps to increase consumption among low-income consumers and in rural markets. Brand strengthening initiatives have been accompanied by appropriate price points. For example, in 2003, HLL sold about 450 crore units of shampoo sachets. Similarly packs of skin care products and toothpastes, at prices like Rs.5 and Rs.10, have allowed more consumers to buy into the high quality and aspirational offerings of the company's leading personal care brands.

February 2004

BROOKE BOND MASTER BRAND REVITALISES BEVERAGES

Hindustan Lever Limited's (HLL) Beverages business has been revived, with a major relaunch of the mega tea brand, Brooke Bond. The relaunch, in the second half of 2003, has begun to deliver results, even as easy availability of loose tea at record low prices led to further proliferation of low-price regional brands and a double digit decline in the packet tea market due to downgradation to loose tea.

Brooke Bond's relaunch was the culmination of a two-year exercise to identify fundamental consumer needs. The research also highlighted that for consumers Brooke Bond is synonymous with branded tea. Accordingly, Brooke Bond has been positioned as the master brand, with its 130-year heritage of understanding tea, with four sharply differentiated sub-brands, Taj Mahal, the premium indulgence brand, Red Label & 3 Roses (in the South) for the entire family, and Taaza, the mass market refreshment offering. Product quality has been significantly upgraded. All the sub-brands are being made available across the country, backed with impactful communication, micro-marketing initiatives and affordably priced pack sizes from Rs.2 to Rs.20.

Lipton, the highly successful international brand, has led HLL's foray into the youth segment. Lipton Ice Tea, launched in Bangalore and Chennai with world class visibility and wide distribution in all formats, is delivering impressive results in these markets. Lipton Yellow Label tea bags have also been introduced.

HLL's focus on the out-of-home channel continued to generate handsome growth. The company now has more than 15000 vending machines, and also kiosks at select locations. The channel offers a comprehensive range of hot tea and coffee, including different flavour options. The channel has witnessed both expansion and increase in number of cups sold per outlet.

Bru, HLL's Power Brand in coffee, witnessed yet another successful year, gaining volumes well ahead of the market. This has been achieved through geographical expansion, affordable packs, and innovative market activation.

Focus on the beverages supply chain accompanied brand building. Streamlining manufacturing operations, process simplification and leveraging of scale and expertise have added to the gains already made in the previous year.

February 2004

KNORR ANNAPURNA, KISSAN SUSTAIN
DOUBLE-DIGIT SURGE IN FOODS

Hindustan Lever Limited's (HLL) Foods business has bounced back with strong and sustained double-digit growth in 2003. All the brands and categories have posted excellent topline growth, and market share increases with new launches and relaunches, building on the gains of focus on Power Brands and profitability improvement made in the previous year.

Knorr Annapurna has made a deeper foray into the cooking and culinary area. Knorr Annapurna Iodised Salt, relaunched in 2003, has become the market leader in rural and a close number two in the overall branded salt market. It is successfully upgrading consumers to its differentiated offering, whose patented stable iodine technology ensures that iodine in salt is not lost in storage and Indian cooking conditions. Annapurna Atta has further strengthened its national market leadership, while continuing to improve profitability. Annapurna chapatis have recorded good volume growth in Mumbai, Pune, Bangalore and Chennai, where it is now available.

A significant launch of the year was Knorr Annapurna Soupy Snax, a delicious snack for break times containing munchies. The initial response is encouraging. This differentiated product, meant for any time during the day, takes Knorr into a new category beyond its traditional forte of soups, where it is already a dominant market leader with a wide number of flavours.

Kissan similarly has surged ahead with its platter for children and family nutrition. In jams and ketchup, Kissan posted excellent topline growth and significant market share gains. Kissan too has been extended beyond its traditional categories. Kissan Atta Bread has been launched, offering the goodness of whole wheat for the entire family. Kissan Mr. Fruit has entered the cold beverages category, with an orange juice concentrate containing real fruit pieces and orange powder. Kissan Greedy Bistix has made a firm footing in the healthy snacks market.

The business has also begun to leverage the scale benefits of its re-engineered supply chain. Manufacturing locations have been sited close to big consumption centres. Procurement has been widened across the country. The new supply chain ensures freshest products, optimum availability and superior cost-effectiveness, making the business fit for sustainable, profitable growth.

February 2004

HLL SETS UP DEDICATED RURAL SALES ORGANISATION;
SHARPER FOCUS ON MODERN TRADE IN METROS

Hindustan Lever Limited (HLL) has revamped its sales organisation for deeper penetration in the rural markets to meet emerging needs of consumers, and for sharper focus on modern retailing outlets in the metros.

To fully meet the emerging needs and increased purchasing power of the rural population, HLL has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists, under the charge of dedicated managers. The team focuses on building superior availability, while enabling brand building in the deepest interiors.

To service modern trade, HLL has set up a full-scale sales organisation, comprising Key Account management and activation, to impactfully engage and service modern retailers as they emerge. The focus is on providing superior point-of-purchase activation as well as customer service. This new system has already helped build higher shares for all HLL brands in the channel.

Post stabilisation in the second half of 2003, the new system has already begun to deliver higher growth.

Aligning the objectives of redistribution stockists with growth was another key initiative introduced during 2003. A new scheme allows HLL stockists to earn significant incentives by delivering the required service levels and growth. The scheme is being implemented in large towns.

HLL’s stockists across the country are powered by RSNet, which connects stockists through an Internet-based system. It provides linkages with the stockists’ transaction systems, enables monitoring of stocks and secondary sales, and optimises their orders and inventories.

February 2004

HINDUSTAN LEVER NETWORK BECOMES INDIA'S 2ND LARGEST
AMONG DIRECT SELLING INITIATIVES

Hindustan Lever Network (HLN), the direct selling initiative of Hindustan Lever Limited (HLL), has emerged as India's second largest Home & Personal care (HPC) direct selling initiative within one year of its launch in January 2003.

HLN has expanded its operation by over three times, with about 2.5 lakh consultants. They service 1400 towns and cities, backed by 42 offices across the country. HLN offers a comprehensive range of exclusive products, including Soaps, Detergents, Home Care, Hair Grooming, Oral Care, Health Care, Personal Care for women, Male Grooming and Confectioneries. A series of launches, including Foods and Nutritional Supplements, are planned throughout 2004, along with further expansion in offices and the consultant base.

The rapid success of HLN lies in its focus on continuous training of its consultants to build sustainable, profitable businesses and self-development. Several HLN consultants have already begun to earn over Rs.100,000 a month.

Sangam expands in Mumbai
Sangam, HLL's e-tailing service in Mumbai city, has made firm progress. It now has a customer base of about 39,000 homes. As per plan, the service, which started in Thane, now covers Navi Mumbai, the eastern suburbs of Mumbai and the Dadar area. It will be further expanded in 2004. Sangam home-delivers about 5,000 branded and un-branded products on order by phone or through its website, backed by a call centre and two despatch centres in Thane and Chembur. In addition to dedicated activation and marketing initiatives, Sangam is also being popularised in a tie-up with Hindustan Lever Network.

Exclusive sales force for Confectioneries
HLL's Max range of Confectioneries has further consolidated its growth in the hard-boiled sugar confectioneries market. HLL is setting up an exclusive sales force for Confectioneries to sharply focus on distribution. Dedicated distribution and launch of more innovative products will further fuel business growth. In 2003, HLL expanded the original launch portfolio of ChocoMax, MaxMagik and MaxMasti. ChocoMax, the most popular variant, has been ralunched. Three new candies have been launched -- ToffyMax, MaxMint and MaxCrackler, an affordable crackling candy, hitherto available in India only through imports.

February 2004

AYUSH PENETRATES LIST OF INDIA'S MOST TRUSTED BRANDS

Hindustan Lever Limited's (HLL) ayurvedic brand, Ayush, has entered 5 million homes within a year of national extension, with repeat purchase rates higher than the FMCG industry average. It has an awareness level of over 90%, and it is among India's most trusted brands. Ayush has also emerged as India's only ayurvedic product and services brand. Besides personal and health care products, Ayush is the only national player to launch ayurvedic theraphy centres.

The brand has performed as per HLL's action standards, and the company is expanding the business in a focused manner in line with the objective to carve a significant presence in the category.

The Ayush franchise comprises a personal care range (shampoo, hair oil and soap) and a health care range (pain balm and cough syrup). The personal care range was nationally extended in October 2002. The shampoo is already India's largest selling ayurvedic shampoo, with strong share in discerning markets like Kerala. The health care range is still under test-market in Chennai, where the entire Ayush range was first launched in June 2002.

HLL has already set up 8 ayurvedic theraphy centres, on a franchisee model, in Chennai and Bangalore, based on encouraging response to the first such centre in Chennai. The theraphy centres provide personalised service and advice in positive health and stress relief, aches and pain relief, skin and hair care, and weight loss consultation. About 30 such centres will be opened in 2004 in top cities across the country.

Besides the range available in retail stores, HLL has also launched an exclusive Ayush Spa range, through the Hindustan Lever Network of direct selling. This was based on the learning that Ayush forms strong bonding with consumers, who tend to recommend the brand among their circles. Ayush Spa has the same core of Ayush (authentic ayurveda), but is more premium in sensorials.

HLL has recruited experts in ayurveda to develop relevant products. This resource base is in addition to the support of its partner, AVP-Coimbatore, India's best-known name in Ayurveda. HLL has also recruited top pharmaceutical technologists because it has adopted the principles and rigour of the pharma industry to clinically evaluate its product range so that Ayush indeed combines the proof of science with the truth of ayurveda.

February 2004

ICE CREAM BUSINESS IMPROVES COST BASE FURTHER

Hindustan Lever Limited's (HLL) Ice Cream business launched a slew of differentiated products backed by aggressive innovation and activation in 2003. Simultaneously it sustained its focus on the supply chain, further improving the cost base. This is in line with HLL's strategy, launched in 2002 with encouraging success, for the business's turn-around through focus on the Power Brand Kwality Walls, differentiated products, concentration on key markets of the major metros, and a re-engineered supply chain.

Among the major launches of the year were premium products, like Viennetta Cappucino Nut, Double Sundaes, Super Cornetto Triple Choc, and Feast Almond Fudge. Kwality Wall's Max, for children, was relaunched with exciting offerings, like Rainbow and Twister, supported by a new look Max lion, new advertising and an innovative activation, 'Bano Toonstar'. The market responded well to the innovations. Max Twister is produced in India with the help of a unique patented Unilever technology.

The entire Ice Cream industry, however, was impacted by a severe winter in the North at the beginning of the year and the nationwide transport strike in the peak season of April. HLL's Ice Cream business also faced these adversities.

The business responded back in the second half with another exciting range of innovative eats, coinciding with the festival season. Among them is Vanilla Surprise, strongly differentiated from the low-price commodity vanilla products. New Sundaes include Kool Khubani, Choco Dry Fruit

Dhamaka and Kamaal Karamel, along with other offerings, like Max Rocket, Max Chakri, Cornetto Honey Fudge and a Kulfi stick. These launches, supported by an aggressive 'Teen Vardaan' activation programme, have helped the business leverage emerging trends in the second half of 2003.

February 2004

HELP, HOPE, HAPPINESS
HLL's initiatives in Corporate Social Responsibility

Corporate Social Responsibility (CSR) in Hindustan Lever Limited (HLL) is rooted in its Corporate Purpose - the belief that "to succeed requires the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live". HLL's CSR philosophy is embedded in its commitment to all stakeholders -- consumers, employees, the environment and the society that the organisation operates in. HLL believes that it is this commitment which will deliver sustainable, profitable growth.

HLL's key CSR initiatives are undertaken with a long-term view. Initiatives that are sustainable, have long-term benefits and an ongoing business purpose linked to them are accorded priority focus. As early as in the 1950s, HLL focused on import substitution when balance of payments was an issue. Since the 1980s, most of HLL's investments have been in designated backward areas and zero-industry districts, spreading industrialisation. HLL has revived sick industries and has developed local entrepreneurship

Furthering this rich tradition of contributing to the community, HLL is focusing on health & hygiene education, women empowerment, and water management. In addition to these important platforms, HLL is also involved in a number of community support activities, like providing audio-visual packages for basic education in primary schools, education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development.

In recognition of these initiatives, HLL received the prestigious TERI-CSR Special Award for the year 2002-03 from The Energy and Resources Institute (TERI). As is well-known, TERI, which was established in 1974, is world famous for its commitment to and initiatives in every aspect of sustainable development.

Among HLL's major CSR initiatives are:

PROJECT SHAKTI - Changing Lives in Rural India

Project Shakti is HLL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities. Project Shakti also aims to improve the standard of living of the rural community, by providing health and hygiene education.

In general, rural women in India are underprivileged and need a sustainable source of income. NGOs, governmental bodies and other institutions have been working to improve the status of rural women. Project Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Project Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation.

Started in 2001, Project Shakti has already been extended to about 12000 villages in over 100 districts in 8 States - Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh and Orissa. The respective state governments and several NGOs are actively involved in the initiative.

Project Shakti already has about 2800 women entrepreneurs in its fold. A typical Shakti entrepreneur earns a sustainable income of over Rs.1,000 per month, which is double their average household income. Project Shakti is thus creating opportunities for rural women to live in improved conditions and with dignity, while improving the overall standard of living in their families. In addition, it involves health and hygiene programmes, which help to improve the standard of living of the rural community. The project's ambit already covers about 15 million rural population. Plans are also being drawn up to bring in partners involved in agriculture, health, insurance and education to catalyze overall rural development.

HLL's vision for Project Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2005.

LIFEBUOY SWASTHYA CHETANA -- Health & Hygiene Education

Lifebuoy Swasthya Chetana is the single largest rural health and hygiene educational programme ever undertaken in India. Its objective is to educate people about basic hygienic habits.

It has been developed around the insight that people mistakenly believe “visible clean is safe clean”. The programme establishes the existence of “invisible germs” and the associated risk of infection. In India this is important, because diarrhoea, caused by invisible germs, is the second largest cause of death among children below the age of 5. The project will help reduce incidence of such diseases, by raising awareness of preventive hygienic practices.

The campaign has been divided into various phases. In the initial phase, a Health Development Facilitator (HDF) and an assistant initiates contact and interacts with students and influencers of the community, like village community representatives, medical practitioners, school teachers etc. A number of tools like a pictorial story in a flip chart format, a "Glo-germ demonstration", and a quiz with attractive prizes to reinforce the message are used. The "Glo-Germ demonstration" is a unique tool to make unseen germs visible and emphasize the need to adopt hygienic practices. The first interaction with students is then replicated with the rest of the community. Subsequently, follow-up visits and communication are undertaken at periodic intervals which reinforce the message and learnings.

Started in 2002, the programme has as of now covered about 15000 villages in 8 states -- Uttar Pradesh, Bihar, Jharkhand, West Bengal, Orissa, Madhya Pradesh, Chattisgarh and Maharashtra; it has already touched about 70 million people, imparting hygiene education to over 25 million children. The vision of this on-going project is to make a billion Indians feel safe and secure by focussing on their health and hygiene needs.

FAIR & LOVELY FOUNDATION -- Economic Empowerment of Women

The Fair & Lovely Foundation is HLL’s initiative which aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs and support in the areas of education, career and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic empowerment platform and the Foundation is an extension of this promise. The Foundation has renowned Indian women, from various walks of life, as its advisors. Among them are educationists, NGO activists, physicians. The Foundation is implementing its activities in association with state governments.

In India, low-income families, albeit unwillingly, tend to discriminate against girl children, in providing opportunities for education and enterprise, because of resource constraints. The support provided by Fair & Lovely Foundation will help girl children avail opportunities of higher education and acquire skills in appropriate professions. The series of projects that have been drawn up to achieve the vision include the following:

Careers: Career guidance by organising career fairs. About 100,000 students have benefited from these career fairs in 42 towns and cities in 2003, getting acquainted with over 200 career options. The programme offers workshops for career guidance, resume-writing skills, personality development. A career guidance programme has also been specially designed for television, and is running on three TV channels. Career columns are being written and sponsored in different magazines.

Education: Scholarships for education such that it opens career avenues, specifically targetting low-income groups are being provided. 2003 was the first year of scholarships -- 147 students have received scholarships in 2003.

Enterprise: Vocational training
a) a three-month Home Health Care Nursing Assistant’s Course
b) skill development in the areas of embroidery and garment designing
c) professional course for aspiring beauticians.

In all, 215 women have been trained in 2003.

Launched in 2003, Fair & Lovely Foundation seeks to impact the lives of about 5000 women by 2005. This will be done through scholarships and enterprise initiatives. For career guidance, it seeks to touch millions of aspiring women and students in an ongoing programme, currently covering three states and all main metros in the country.

GREENING BARRENS -- Water Conservation & Harvesting

HLL's Water Conservation and Harvesting project has two major objectives: a) to reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R -- reduce, reuse, recycle, recover and renew; b) help adjacent villages to implement appropriate models of watershed development.

Water scarcity is one of the biggest crises facing India in terms of spread and severity. Water conservation and harvesting in HLL's own operations will help conserve and regenerate this scarce resource. An attendant benefit will be reduction in the consumption of energy that would have been spent in converting and using that water. The support to communities in developing watersheds will help in the economic development of areas adjacent to HLL sites.

Water management is a focus area for all HLL factories. Water conservation has been made one of the key performance indicators of an HLL factory. Through a series of technology innovations and novel processing routes HLL has reduced its ground water consumption by over 50%. HLL has also applied technologies that recycle effluent water after treatment – 70% of HLL sites are now zero discharge sites. There are many other measures -- Reverse Osmosis Plants and Solar Evaporation Ponds to name a few. A simultaneous benefit is saving in energy that otherwise would have been consumed in drawing, pumping or converting water into steam -- HLL's energy consumption per unit of production has come down by 61% since 1996. Since 2003, all HLL sites have begun to harvest rain water. Rain water falling on factory premises is accumulated in ponds, thereby renewing sub-soil water tables.

HLL is also committed to extending its efforts on water management to the larger community, and has engaged in community projects in water adjacent to manufacturing sites.

The Khamgaon soap factory is located in a dry and arid region of Maharashtra and gets limited rainfall. Seven years back the factory started a pilot on ‘Watershed Management’ on a 5-hectare plot to prevent soil degradation and conserve water. The efforts have resulted in the creation of a green belt, which is the only visible green patch in the area. The 5-hectare green belt is now a veritable forest of about 6300 trees, including over 1400 ornamental plants and over 600 fruit-bearing plants. There has also been a remarkable improvement in the quality of soil, and significant conservation of water. This has been documented in a booklet, 'Greening Barrens', so that industry, government bodies and communities adopt this widely. Encouraged by the results, HLL has extended the model to a neighbouring village, Parkhed, in association with the TERI and the Bharatiya Agro Industries Foundation. The community at Parkhed has already constructed 37 check dams. More than 20,000 saplings have been planted during the 2003 monsoon. For the first time, villagers were able to collect water and utilise it for irrigation post monsoon. The initiative received appreciation at the Johannesburg World Summit on Sustainable Development.

In association with an NGO, Vanrai, HLL's Silvassa manufacturing hub (in the Union Territory of Dadra & Nagar Haveli) too has embarked on a long-term project of water harvesting, which aims to dramatically change water availability, taking it up to year-round availability from 4 months at present. At Karchond village, near the Silvassa site, the community has built 18 bunds. Seven of them are on a river running through the village, and 11 smaller ones at different water run-off points. This has enabled the community to sow a second crop, thereby significantly increasing their incomes. Through an Integrated Village Development Programme, the project's ambit also includes alternate income-generating activities through SHGs, forestry management, education of children, nutrition.

The programme of watershed management is being progressively extended to other factories. The Hosur Coffee Factory has set an example in low-cost water harvesting methods. Another example is the Yavatmal Personal Products Factory, which has worked with the Social Forestry Department of the Maharashtra Government to improve sub-soil water table in the area.

HLL's vision is to continuously innovate technologies to further reduce water consumption and further increase conservation in its operations. Simultaneously, HLL sites will progressively help communities, wherever required, to develop watersheds.

HAPPY HOMES - Special Education & Rehabilitation

Under the Happy Homes initiative, HLL supports special education and rehabilitation of children with challenges.

Asha Daan: The initiative began in 1976, when HLL supported Mother Teresa and the Missonaries of Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged children, and the destitute. Subsequently, Asha Daan has also become a home to the HIV-positive. The objective in supporting Asha Daan was and continues to be to share the organsation's prosperity in supporting the Mother's mission of serving the "poorest of the poor". Asha Daan has been set up on a 72,500-square feet plot belonging to HLL, in the heart of Mumbai city. HLL bears the capital and revenue expenses for maintenance, upkeep and security of the premises. The destitute and the HIV-positive are provided with food, shelter and medication for the last few days of their lives. The needs of the abandoned challenged children are also met through special classes of basic skills, physiotherapy and, if possible, corrective surgery. At any point of time, it takes care of over 300 infants, destitute men and women and HIV-positive patients.

Over the years, HLL has opened schools for challenged children with a sharper objective of supporting families of such children, helping the children become self-reliant by learning appropriate skills to be productive members of the household.

Ankur: In 1993, HLL's Doom Dooma Plantation Division set up Ankur, a centre for special education of challenged children. The centre takes care of children with challenges, aged between 5 and 15 years. Ankur provides educational, vocational and recreational activities to over 35 children with a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral palsy and severe learning difficulties. These physically and mentally challenged children are taught skills, such as cookery, painting, embroidery, bamboo crafts, weaving, stitching, etc depending on their aptitudes. The centre has rehabilitated 10 children, including self-employment for 6 children by providing them with shops, and 3 girls have been provided employment as creche attendants. It has also moved to normal schools 18 children. Since inception it has covered about 80 children. Ankur received the Lawrie Group Worldaware Award for Social Progress in 1999 from HRH Princess Royal in London.

Kappagam: Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of challenged children, was set up in 1998 on HLL Plantations in South India. It has 17 children. The focus of Kappagam is the same as that of Ankur. The centre has 17 children, being taught self-help skills, useful vocational activities like making of paper covers, greeting cards, wrapping papers, fancy stationery, napkins, brooms made out of coconut leaves, candles, and also some home care products. About 12 of the children have become relatively self-reliant by earning through crafts learnt at the centre. Since inception, it has covered about 28 children.

Anbagam: Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are being taught skills such that they can become self-reliant and elementary studies.

Over 20,000 individuals have benefitted from the Happy Homes initiatives since inception. HLL is wholeheartedly involved with all four centres and will continue to be involved in the future.

Among HLL's other significant CSR initiatives are:

Yashodadham

HLL has reconstructed a village in the Bhachau Taluka of Gujarat's Kachchh district. The village, which has been named Yashodadham, was dedicated to its 1100 residents in December 2002. The residents belong to Nani Chirai village, which was completely wrecked by the devastating earthquake of January 2001.

Yashodadham, spread over 25 acres, comprises 289 homes. HLL has also provided a school building, an exclusive playground for children and a multi-purpose community centre, including a crèche, health centre, community room and village administration office. All the structures are earthquake and cyclone-resistant. Space has been left all along the village for parks and public squares, where villagers subsequently will plant trees.

Each house is of 400 sq. ft built-up area, with running water and electricity, in a 1600 sq. ft plot. As desired by the villagers, the design and foundation of houses and the plot size is such that they have the scope to build extra rooms in the future. HLL has constructed both an underground reservoir and an overhead tank for water.

HLL, which had launched immediate relief after the quake in areas adjacent to its Kandla Exports factory, subsequently decided to reconstruct a village, which was completely wrecked. The objective was to help a completely wrecked village, because such settlements had the greatest need for help. Forty such villages were inspected, around Kandla factory, and Nani Chirai was chosen.

Vindhya Valley

In 2002, the company took up a project in Madhya Pradesh, which will impact the entire state's rural population. The mainstay of Madhya Pradesh's economy is agriculture. Prosperity thus means increasing the income of farmers and small town and village entrepreneurs engaged in agro-processing and cottage industries.

This is where HLL is contributing its expertise. It has helped the state government create 'Vindhya Valley', an umbrella brand, and support software for its marketing, manufacturing and distribution. The state government has been substantially investing every year to finance small town and village entrepreneurs. But the lack of marketing skills and market access denied them the desired success and eventually resulted in most of these ventures becoming unsustainable. The launch of 'Vindhya Valley', with support software from HLL, is helping overcome the impediment. It is a truly unique and sustainable form of livelihood generation. This has resulted as of now in the establishment of 20 small units, based in rural areas, providing direct engagement to about 1000 families involved in the production of spices, honey, papad, pickles, agarbatti etc.

The success of 'Vindhya Valley has been recognised by various state governments. HLL has recently begun work with the Karnataka Government in similar projects to improve the income and quality of life of rural communities. An umbrella brand, 'Stree Shakti', is being created for Self-Help Groups (SHGs). The initiative will generate higher sales and higher returns for the SHGs.

In its business operations and in its principles and practices, Hindustan Lever thus straddles the Indian corporate world, single-mindedly identifying itself with Indian aspirations and needs in every walk of life.