Hindustan Unilever board gives nod for a new subsidiary

By

Maverick Martins

Published
Feb 25, 2020

The board of FMCG major Hindustan Unilever Limited (HUL) has given its nod for the formation of a new subsidiary that will be fully owned by the company.
 

The new company will be formed with an authorised share capital of Rs 2,000 crore ($277.4 million).
 
"This new subsidiary has been formed to leverage the growth opportunities in a fast-changing business environment and will help HUL in becoming more agile and customer-focused," HUL said in a statement.

Hindustan Unilever Ltd had reported a 13 percent rise in its consolidated net profit at Rs 1,631 crore for the December quarter with sales revenue of Rs 9,953 crore.
 
The company’s beauty and personal care segment has been witnessing poor sales, due to the ongoing economic slowdown. The segment’s sales had dropped 3 percent to Rs 4,448 crore for the last quarter.
 
With the new subsidiary, HUL is hoping to revive its fortunes amidst challenging economic conditions in the country.
 
Hindustan Unilever is the country’s largest consumer goods company and is expecting stable demand for the financial year 2020, due to the recent initiatives taken by the government.