Unilever PLC, 1932–2004

Unilever PLC is a case of FDI in the fast moving consumer product industry. It is also an example of oldest multinational enterprises in India and the world over. This chapter discusses the process by which Unilever developed a market from nothing — none of its products were in use and there was no support industry and basic infrastructure to conduct its business. The task of building awareness of its products with the potential consumers and a distribution network across the length and breadth of India, which had little road transport and communication, was the challenge for this company. This case also reveals how the company invested in all related businesses to complement its main business of manufacturing personal care products such as soaps, detergents, toiletries, and packaged food products. The analysis involves the study of nature and timing of investments of the company in its main business and complementary market functions, the manner in which it aligned itself to the requirements of the GOI, the issues of localization of management and ownership and its financial performance in India. The detailed confirmatory statistical analysis of the case, however, is provided in Chapter 7.