Hindustan Unilever to focus on premiumisation, expects stable demand in FY20
FMCG major Hindustan Unilever (HUL) is expecting stable demand for the financial year 2020 due to the initiatives taken by the government and plans to focus on premiumisation of its products to tap the youth for future growth.
The company feels that initiatives such as increases in minimum support prices coupled with a host of other benefits will help it deliver strong growth for the fiscal year.
Hindustan Unilever had reported a net profit of Rs 1,538 crore ($222.4 million) for the fourth quarter ended March 31, 2019.
For the financial year 2018-19, Hindustan Unilever’s sales stood at Rs 37,660 crore with a net profit of Rs 6,036 crore.
"The demand trends in the markets are stable and the government initiatives such as increases to Minimum Support Price (MSP), provision of health insurance, direct income distribution among many others will lend further impetus to the rural economy," in a statement said HUL chairman and managing director Sanjiv Mehta.
"Commodity inflation, potential disruptions due to global events and a below normal monsoon this year are possible headwinds which the business will need to navigate with caution," Mehta added.
HUL is a leading player in the country’s FMCG sector. Its beauty and personal care business has been witnessing strong growth in India and is the highest contributor to the company’s overall revenue.
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