Co-headquartered in Rosterdam and London this British Dutch company is one of the largest FMCG companies.
Sales ($ Bn): 68
Profits ($ Bn): 7
Assets ($ Bn): 58.39
Market Value ($ Bn): 84.34
It is famous for its products like Lipton, Lux, Knorr, Dove, Ponds etc. Founded in 1929 with merger of Lever brothers and Margarine Unie this company mainly deals in food, beverages, cleaning agents and personal care products. Unilever has over 400 brands operational and claims to touch lives of over 2 billion people every day through its products. Unilever has its business divided into 4 major segment of which personal care segment is the highest revenue generating business. Till 1997 Unilever had a huge present in chemical manufacturing but then it divested its chemical business as ICI and focus mainly on consumer segment.
It its 100 years of history Unilever made series of acquisition like Lipton, Brooke Bond, Ben and Jerry's etc. In 2014 Unilever recorded over $68.5 billion in revenue and $7.8 billion in profits .Although it lacks behind in terms of revenue compared to the top 2, it aims for a sustainable business models which is visible by its activities around the globe. By 2020 it has promised to reduce the carbon footprints produced by its manufacturing units to half and improve sustainability in terms of agriculture sourcing benefiting lives of thousands of its suppliers. Having vast operations across the world owning over 400 brands and subsidiaries in almost 100 countries this company is clearly poised to give a tough fight to top 2 in terms of revenues, profits as well as brand equity. Unilever has followed a subsidiary model partnering with local intelligence to market their products. Hindustan UniLever is their notable subsidy in which it holds 67.25% of stake.
Step 1: Top 10 FMCG companies were shortlisted based on their market capitalization on London Stock Exchange
Step 2: 4 parameters were considered to arrive at ranking namely Revenues, Profits, Total Assets and Market Capitalization
Step 3: Asset turnover ratio (Sales/ Total Assets), Profits and Market capitalization values were normalized using min-max normalization
Step 4: Weighted score of Asset turnover ratio, profits and market cap with 0.3, 0.5 and 0.2 respectively was computed to get final ranks