HLL RECEIVES LARGEST WEALTH CREATOR AWARD

MUMBAI, January 11, 2002: Hindustan Lever Limited (HLL) has received the Motilal Oswal ‘Largest Wealth Creator’ Award for the period 1996-2001. HLL’s Finance Director, Mr. D. Sundaram, received the award on behalf of the company at a function here today. This is the 5th time that HLL has been conferred with this distinction.

HLL has improved its ROCE from 53% in 1996 to 65% in 2000, achieved through growth, margin improvement and capital productivity. “HLL is on the right track towards providing long term value to shareholders. Even in the challenging market conditions of the last few years, HLL has continued profitable growth while conserving capital. This is reflected in the company’s

‘negative’ working capital and higher quantum of cash released from operations,” Mr. Sundaram said while accepting the award.

For the 9 month period ended 30th September 2001, HLL’s Net Sales were Rs.8208.98 crores (+3.2%). Profit After Tax was Rs.1030.97 crores (+

18.2%), while Net Profit was Rs.1204.93 crores (+ 36.8%

HLL APPOINTS MINDSHARE FOR MEDIA PLANNING &

BUYING

Mumbai Jan 19, 2001

Hindustan Lever Limited (HLL) has assigned the media planning and buying of all its brands to MindShare, a part of the WPP group. The decision follows a comprehensive review by HLL last year of its media operations.

Under the new arrangement, MindShare will also play a key facilitating role alongside the company's brand teams and creative advertising agencies for HLL's new Communication Channel Planning Process, which aims to

establish the most effective combination of marketing vehicles for its brands.

Prior to consolidation, HLL's strategic media planning assignment was split between different agencies. Agency of Record responsibility for traditional media buying was handled by HTA-Fulcrum, a WPP group company, while the Outdoor and Rural Media was handled by another WPP Group Company,

Ogilvy and Mather.

This consolidation of HLL's media planning and buying does not lead to any change in HLL's creative agency assignments. The creative agencies will continue to do the creative work for their respective accounts.

Mr. M. S. Banga, Chairman of HLL said: "HLL is focussing its marketing effort behind fewer, larger brands. Our move to a consolidated media assignment reinforces HLL's commitment to simplify and focus its marketing investment for maximum return. This consolidated approach will improve the

productivity for our leading brands".

According to Mr. K. S. Srinivasa Murty, Head of Strategic Services of HLL,

"The communication channel landscape continues to grow and fragment, creating an increasingly large and complex planning environment. Our goal was to make our significant investment in brand communications work harder.

Consolidation will provide a seamless linkage as we move from broad marketing communications mix planning, through strategic media planning to tacticalimplementation".

He added: "MindShare was selected for this assignment because they offered the best combination of strategic resources and buying capabilities." Within MindShare, a group of specialists will focus on the increasing complexity of

specific communication channels while another group will manage the

planning of individual brands.

HLL started the media review in October 2000. The consolidation of media resource will be implemented in a phased manner to give the media agency adequate time to establish its new organisation. It is expected that transition of business will be completed in the next few months.

About MindShare :

MindShare, a part of the WPP Group, is the world's largest media investment management company with annual billings in excess of $17 billion. Globally, MindShare operates in over 50 countries. In India, MindShare will handle the combined media operations of JWT and O&M Agencies.

MindShare was launched in September 1997 as a global concept with the goal of pooling the media planning, implementation and research operations of JWT (HTA

HLL announces e-commerce initiatives Mumbai

HLL has launched a number of Commerce initiatives that will bring E-Business to the heart of the Company's operations.

HLL's vision is "Connect, Attract and Fulfil" on a massive scale. In the supply chain for example, the vision is to link in Phase I with some 3000 stockists, 30,000 retailers and 100 suppliers spread over some 1000 locations. The size

of the ambition is based on HLL's unique ability to leverage on scale and technology and the development in the telecom infrastructure.

HLL believes that success on the E-Business domain will depend on three factors - Technology, Consumer Insight and Physical fulfillment. HLL has unique strengths in consumer understanding and the backbone of the vast distribution system to enable physical fulfillment. Technology will be sourced

through partnerships.

HLL's Internet vision encompasses three opportunity segments - Business Connectivity, Consumer Connectivity and Consumer Commerce.

In the area of Business Connectivity, much has already been achieved leveraging existing technologies. The Internet gives the opportunity for the next quantum leap. HLL is creating an extranet covering its key stockists and retailers to optimise the supply chain right up to the front end. Similarly, an extranet is also being created covering the suppliers, factories and the purchasers with the aim of achieving real time, vendor-managed inventory. E-Banking initiatives are also being piloted to enable paperless financial settlements. The Aviance business, for example, is being configured to be mainly run through the Net.

In the area of Consumer Connectivity, HLL has already progressed some distance through the Pond's interactive website, Hello Hindustan and Mera Hindustan initiatives in the detergents business as well as events like Close Up Antakshari on the Net. Interactive kiosks for the Lakme and Pond's ranges are being tested out in a few cities - these enable a consumer to try out how various beauty products will look on the screen before buying them. However, increasingly, interactive communication on the Net will be consumer centric, rather than brand centric. Internationally, Unilever has announced ventures

such as the JV with iVillage, a woman's portal and participation in start ups such as Wowgo. HLL is exploring similar opportunities in India.

Consumer Commerce is the third leg of the opportunity. India is likely to take up E-tailing in a major way simultaneously and probably even faster than the development of supermarkets. HLL will participate in a major way in this development.

Dedicated and focussed organisation within HLL comprising young managers has already been formed in each of the three opportunity segments. A web of relationships with the partners offering technology, financial services and connectivity is also being built