114 Corporate Finance
The company diversified into chemicals and fertilizers in the 1980s. In 1993, Hindustan Lever acquired
TOMCO, a manufacturer of soaps and detergents; and acquired Brooke Bond and Ponds India in 1996 and
1998 respectively. Here is a break-up of HLL’s business:
- Soaps and detergents (43 percent)
- Personal products (11 percent)
- Beverages (tea and coffee) accounts for 20 percent
- Oils and vanaspati (7 percent)
- Animal feed stuff (3 percent)
- Dairy products (1 percent)
- Others (15 percent)
HLL has more than 100 brands and 50 manufacturing units. Its financial statements are presented in
Exhibits 5.1(a) and 5.1(b).
Exhibit 5.1(a) Financial statements of Hindustan Lever Ltd
(Rs crore)Balance sheet 2000 2001
Assets
Gross fixed assets 1,669.75 1,889.45
Net fixed assets 1,158.24 1,302.55
Revalued assets 0.67 0.67
Leased assets 0.00 0.00
Investments 1,832.24 1,668.93
Marketable investment 935.61 586.83
In group/associate cos. 81.84 81.82
Quoted investment 935.61 586.83
Market value of Q.I. 969.97 593.85
Deferred tax 0.00 349.61
Inventories 1,182.09 1,240.05
Receivables 1,055.05 1,268.70
Cash and bank balance 522.09 913.15
Miscellaneous expenses
Not written off 47.32 22.38
Total assets 5,797.03 6,765.37
Liabilities
Net worth 2,488.24 3,043.69
Share capital 220.06 220.12
Bonus equity capital 131.69 131.69
Reserves and surplus 2,268.18 2,823.57
Direct addition to reserves 0.01 5.08
Total borrowings 111.60 83.73
Bank borrowings 55.54 24.70
Short-term 55.54 24.70
Other borrowings 56.06 59.03
Exhibit 5.1(a) contd.