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Working Capital Analysis of Hul

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WORKING CAPITAL PERFORMANCE ANALYSIS OF HINDUSTAN UNILEVER LIMITED COMPANY

An Overview of FMCG Companies in India
Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be categorized into three segments which are: 1. Household items as soaps, detergents, household accessories, etc, 2. Personal care items as shampoos, toothpaste, shaving products, etc and finally 3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.

A look at some factors that will drive growth in this sector: * Increasing rate of urbanization, expected to see major growth in coming years. * Rise in disposable incomes, resulting in premium brands having faster growth and deeper penetration. * Innovative and stronger channels of distribution to the rural segment, leading to deeper penetration into this segment. * Increase in rural non-agricultural income and benefits from government welfare programmes. * Investment in stock markets of FMCG companies, which are expected to grow constantly.

Objectives
The study aims at analyzing the working capital management of FMCG (fast moving consumer goods) Sector in India. The main objectives are:
 To analyze the working capital trends in FMCG sector;
 To discover the relative importance of various current assets components;
 To draw conclusion on the effectiveness of working capital management;
 To study: How the companies handle debtors how they handle inventories How they

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