Unilever Overseas - Anatomy of Multinational, 1895-1965

629 Pages·1978·22.627 MB·English

by  David K. Fieldhouse

Unilever Overseas
ThAena toomfay Multinational
1895-1965
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Contents
List of Tables
List of Figures
Notes on Terms
Preface 3
1. Introduction 9
2. Metropolitan Unilever: the Central Organisation 24
3. Unilever in Australia and South Africa 64
Australia 64
(a) Origins of the Business, 1888-1914 64
(b) The ‘Classical’ Period, 1914-45 71
(c) Rationalisation, Diversification and Integration, 1945-65 78
South Africa 96
(a) The Establishment of Lever Brothers in South Africa,
to 1915 97
(b) Rationalisation and Consolidation, 191545 109
(c) Diversification, Localisation and the Colour Bar,
1945-65 122
(d) Profits in Australia and South Africa, 1945-64 143
4. Unilever in India and Pakistan 148
The Origins of Local Manufacture in India, 1917-34 148
Unilever in Imperial India, 193240: the Classical Period 174
Unilever in the New India, 1941-65 182
Unilever in Pakistan, 1947-65 244
5. Unilever in Indonesia and Ceylon (Sri Lanka) 264
Indonesia 264
(a) The Origins of Local Manufacture to 1941 265
(b) Unilever in NEI, 1934-41: the ‘Classical’ Period 277
(c) Rehabilitation and Growth, 1945-57 282
(d) Guided Democracy and Business Decay, 1957-65 299
Ceylon (Sri Lanka) 313
(a) The Economic Background 314
(b) From Trading to Manufacture, 1914-39 317
(c) Local Manufacture, 1940-65 321
6. Unilever in Black Africa 339
Lever Brothers (Nigeria) Ltd 340
(a) Origins of Local Manufacture to 1923 340
(b) WASCO, 1923-40 345
(c) Expansion and the Effects of Decolonisation, 1940-65 357
The Belgian Congo (Zaire): SAVCO/MARSAVCO 379
East African Industries, Ltd, Nairobi 387
Ghana: the Genesis of Lever Brothers (Ghana) Ltd 405
7. Unilever in Turkey Sheila Fieldhouse 419
8. Lever’s Pacific Plantations Ltd. 448
Plantations and Business Strategy 448
Origins of the Solomon Islands Plantations 451
LPPL, 1907-42 464
Rehabilitation, 1945-61 476
Diversification, 1961-5 484
The Profitability of LPPL 491
9. Huileries du Congo Beige 494
The Establishment of HCB, 1911-31 497
Modernisation, 1931-60 521
Independence, 1960-5 541
Epilogue: Unilever Plantations in the Later Twentieth
Century 545
10. Conclusions 556
Motives for Investment Overseas 556
The Character and Profitability of Manufacturing
Subsidiaries 560
Unilever and the Host Countries 576
Decolonisation and the Multinational 598
Index 609
TABLES
3.1 Australia: All Companies’Trading Summary, 1923-47 71
3.2 Australia: All Companies’ Sales Volume of Main Products,
1923-46 72
3.3 Australia: All Companies’ Trading Summary, 1946-65 82
3.4 Australia: NSV and Volume of Main Products, 1946-65 84
3.5 Australia: Comparative Profitability of Main Products,
1954-65 86
3.6(a) South Africa: Imports of Soap from UK, 1910-21 98
3.6(b) South Africa: Sales of Soap and Edible Fats and Oils,
1904-45 98
3.7 South Africa: Lever Brothers (South Africa) (Pty) Ltd
Profits and (Losses), 1911-30 108
3.8 South Africa: Profits and Losses 1931-45 116
3.9 South Africa: Nett Profit in Relation to Capital
Employed in Five Unilever Companies before 1945 117
3.10 Costs, Tax Rates and Profits, Lever Brothers (Australia)
Sydney, and Lever Brothers (South Africa) (Pty) Ltd,
1936 and 1937 118
3.11 South Africa: Product Sales and Market Shares, 1946-64 126
3.12 South Africa: Trading Summary, 1946-65 144
4.1 India: Soap Exports to India, 1913-22 150
4.2 India: Sales of Lever Brothers Soap, 1921/2-1928/9 160
4.3 India: Imports of Vegetable Product to India and Burma,
1927/8-1930/1 170
4.4 India: Growth of Capacity and Sales of Unilever
Factories, 1931-41 176
4.5(a) India: Earnings as a Percentage of Capital Employed,
Soap and Vanaspati 1935-8 177
4.5(b) India: Profit as a Percentage of Capital Employed in
Soap Manufacture, 1935-8 177
4.6 India: Turnover, Trading Results and Nett Profitability
of Unilever Sales in India, Burma and Ceylon through
United Traders Ltd, 1935-8 179
4.7 India: Pre-tax Profits on Soap Imported to India,
1925-9 and Manufactured in India, 1936-8 180
4.8 India: Rates of Effective Protection on Soap and
Glycerine, 1961 189
4.9 India: Sales of Unilever Soap and Vanaspati, 1941-8 206
4.10 India: Profit (before tax) as a Percentage of Turnover,
HVM and LB (I), 1945-55 206
4.11 India: Profits and Turnover of HVM/Edibles Division
of Hindustan Lever, 1951-65 207
4.12 India: Unilever’s Share in Vanaspati Production,
1948-65 208
4.13 India: Detergent Sales and Profits, 1947-65 209
4.14 India: UTL Turnover and Profits after Tax, 1937-44 210
4.15 India: Price Indices for Hindustan Lever Detergents
and Edibles, 1953-61 216
4.16 India: Turnover and Profitability of Toilet
Preparations, 1953-65 219
4.17(a) India: Return to Capital 1935-65 (all Concern
Companies in India to 1956, thereafter Hindustan Lever) 230
4.17(b)India: Profits made by Unilever in India, 1935-8 and
1962-5 231
4.18(a) India: Gross Profit as a Percentage of Capital Employed
in Select Private Sector Companies, 1960-4 233
4.18(b) India: Gross Profit as a Percentage of Capital Employed
in the Edible Oils Industry, 1962 233
4.18(c) India: Average Post-tax Profits of Hindustan Lever as a
Percentage of GCE Compared with Average Post-tax
Profits of the Subsidiaries of other UK Companies
Overseas as a Percentage of Nett Operating Assets, 9 year
average, 1956-64 234
4.19 India: Hindustan Lever’s Sources of Finance, 1957-65 236
4.20 India: Unilever Companies’ (Including UTL) Allocation
of Income, 1945-65 237
4.21 India: Hindustan Lever’s Balance of Payments Effects,
1956-65 238
4.22 Pakistan: Volume of Sales, 1948-65 254
4.23 Pakistan: Comparative Profitability of Edibles and
Detergents, 1953-65 255
4.24 Pakistan: Nett Profit after Statistical Tax as a
Percentage of Average Gross Capital Employed, 1953-65 256
4.25 Pakistan: Profits and Costs in Relation to NSV, 1953-65 257
5.1 NEI: Total and Gossage Shipments from United
Kingdom of Households and Fancy Soap to Borneo,
Sumatra and Netherlands East Indies, 1910-21 266
5.2 NEI: Soap Exports by Lever Bros Ltd and Associated
Companies from (1) UK and (2) Australia to
Netherlands East Indies, 1923-34 267
5.3 NEI: Margarine Union/Unie and Unilever Exports of
Margarine to NEI, 1923-38, and Shares of Each
Component Company, 1923-9 274
5.4 NEI: Sales and Profitability of the Batavia Soap
Factory, 1935-40 278
5.5 NEI: Sales and Profitability of Edible Products, 1936-40 279
5.6(a) Indonesia: Soap Sales, 1947-65 289
5.6(b) Indonesia: Distribution of Laundry Soap Sales in
Indonesia, 1955-6 290
5.7 Indonesia: Sales of Edible Fats and Oil Products, 1947-65 291
5.8 Indonesia: Sales of Toilet Preparations, 1947-65 293
5.9 Indonesia: Results, 1946-65 295
5.10 Indonesia: Remittances to Holland, 1948-65 296
5.11 Ceylon: Lever Bros/Unilever Exports of Soap to
Ceylon, 1910-35 318
5.12 Ceylon: Unilever Sales of Soap Products, 1938-48 322
5.13(a) Ceylon: Sales of Soap, 1949-65 and Share of Market 324
5.13(b)Ceylon: Sales of Toilet Preparations and Share of Market 324
5.13(c) Ceylon: Sales of Edibles and Share of Market (Including
Imports) 325
5.14 Ceylon: Trading Summary, 1941-65 336
6.1 Nigeria: Sales of Soap made at Apapa, 1924-40 346
6.2 Nigeria: WASCO’s Share of Total Soap Sales in Nigeria,
1929-43 347
6.3 Nigeria: WASCO Profits (Losses) in Relation to Capital
Employed, 1924-40 349
6.4(a) Nigeria: Cost of Palm Oil to WASCO, 1935-46 353
6.4(b) Nigeria: WASCO Fixed Expenses and Profits per Ton
of Soap, 1935-47 353
6.5(a) Nigeria: WASCO Soap Sales, 1941-60 358
6.5(b) Nigeria: Sales of Non-soapy Detergents, 1954-60 358
6.6(a) Nigeria: Actual Post-tax Profits in Relation to Capital
Employed, 1941-65 359
6.6(b) Nigeria: Return to Capital, 1955-65 360
6.6(c) Nigeria: Costs in Relation to Gross Profit, 1956-65 378
6.7 Congo: SAVCO Soap Sales (Including Exports) and
Profits, 1923-45 382
6.8 Congo: MARSAVCO Sales of Soap, 1946-62 385
6.9 Congo: MARSAVCO Sales of Edible Fats and Oils,
1950-62 386
6.10 Congo: MARSAVCO Trading Summary, 1945-65 388
6.11 East Africa: Exports of Soap by Unilever to East Africa,
1929-52 392
6.12 East Africa: Sales of Unilever Soap in East Africa,
1954- 65 400
6.13 East Africa: Sales of Unilever Edible Fats and Oils in
East Africa, 1955-65 401
6.14 East Africa: EAI Capital, Turnover and Profits, 1954-65 402
7.1 Turkey: Unilever-Is Sales (by Brand), 1953-65 432
7.2 Turkey: Unilever-Is Trading Summary, 1956-65 434
8.1 LPPL: Native Labour on The Solomon Islands
Plantations, 1923-37 466
8.2(a) LPPL: Profits and Losses, 1902-10 467
8.2(b) LPPL: Production and Profitability, 1911-42, Excluding
Commonwealth Copra 468
8.2(c) LPPL: Production and Profitability, 1923-39 469
8.3 LPPL: Acreage under Cultivation, Labour Force and
Copra Production, 1948-65 478
8.4 LPPL: Trading Summary, 1956-65 479
9.1 HCB: Production and Export of Palm Oil and Kernels,
1911-31 (Including those Bought by SEDEC) 508
9.2 HCB: Profits as Shown in the Accounts, 1911-55 510
9.3 HCB/PLC: Profits 1955-65 542
9.4(a) Comparative Yield on Gross Capital Employed: All
Unilever Plantations, 1955-65 548
9.4(b) Average Return to GCE of the Plantation Companies,
1955- 65 550
9.4(c) Relative Size of Plantations, Labour Force and NSV,
1959 551
10.1 Post-tax Profitability of 13 Unilever Overseas
Manufacturing Subsidiaries, 1956-65, Compared with all
Unilever Companies in Europe 567
10.2 Unilever Sales, Capital Employed and Profits by Region,
1955-65 568
10.3 Income, Costs and Expenses of Majority-owned Foreign
Affiliates of US Manufacturing Industries, 1966 584
10.4 Allocation of Income by Hindustan Lever, 1965 584
10.5 Allocation of Pre-tax Trading Profit of Six Unilever
Manufacturing Companies, 1963 585
FIGURES
1 The Structure of Unilever, 1973 51
2 Product Co-ordination in Britain and Europe, 1973 52
3 Companies under the Overseas Committee, 1973 53
4 The United Africa Group, 1973 54
MAP
The Belgian Congo, Showing the Relative Situation of the
Concession Areas Defined by the 1911 Convention 501
TO EDGAR GRAHAM