Current Affairs On Hindustan Unilever Ltd.

Hindustan Unilever Ltd

 Hindustan Unilever Limited (HUL) is one of India’s largest and most prominent fast-
moving consumer goods (FMCG) companies.

Founded: 1933 (as Lever Brothers India Limited)

Headquarters: Mumbai, Maharashtra, India
Parent Company: Unilever plc (British multinational)
Chairman: Nitin Paranjpe
CEO & MD: Rohit Jawa (as of 2023)
Website: https://www.hul.co.in

NSE Symbol: HINDUNILVR

BSE Code : 500696

Business Summary

Hindustan Unilever Limited (HUL) is one of India’s largest fast-moving consumer

goods (FMCG) companies. It is known for its wide portfolio of trusted brands across
categories like personal care, home care, foods, and beverages.

HUL operates in rural and urban markets, reaching over 9 million retail outlets
across India, and its products are used by more than 700 million consumers every day.

Product Categories

HUL’s major business segments:

1. Beauty & Personal Care – Skin care, hair care, soaps, oral care, deodorants
2. Home Care – Detergents, surface cleaners, dishwashers
3. Foods & Refreshments – Tea, coffee, health drinks, jams, sauces, ice creams
Financial Highlights (FY 2023–24) (approximate figures)

 Revenue: ₹60,000+ crore

 Profit After Tax: ₹10,000+ crore
 Market Cap: Over ₹6 lakh crore (~$72 billion)

Influencing Factors

1.GST Changes

Adjustments in GST rates and FDI norms have influenced HUL's pricing strategies and
investment decisions.

(Source: HUL: HUL cuts prices of select products post GST - The Economic Times)

 The reduction of GST rates from 28% to 18% on various consumer goods
significantly influenced HUL's pricing strategy. In alignment with this change,
HUL implemented price reductions ranging from 7% to 10% across nearly 600
stock-keeping units (SKUs), with some products experiencing up to a 20%
decrease. Notable examples include:

Fair & Lovely 15g pack: Reduced from ₹25 to ₹20

Sunsilk Shampoo 340ml: Reduced from ₹204 to ₹165
Wheel 1kg detergent: Reduced from ₹52 to ₹48

 These adjustments were not only a response to regulatory changes but also aimed
at enhancing consumer demand, particularly in rural markets. HUL's CEO,
emphasized the company's commitment to passing on the benefits of GST
reductions to consumers, either through lower prices or increased product
quantities.
 Additionally, HUL increased the grammage of certain products without altering
their prices. For instance, the Surf Excel bar's weight was increased from 95g to
105g while maintaining the same price point.

2.FDI Policy Changes Impact on HUL Products:

FDI policy changes have directly contributed to HUL’s ability to expand its product
portfolio, increase production capabilities, and improve market access across India. For
HUL (The majority-owned by Unilever, UK), the following changes have been particularly
significant

(Source:The $452 million Unilever-GSK deal had to be changed because India’s love for
Horlicks is worth billions - The Economic Times)

 Horlicks and Boost

 Acquisition (2020): HUL acquired Horlicks and Boost from GSK.
 Impact: Horlicks holds 40-45% market share in India’s health drink
segment, growing 5-6% after the acquisition.
 Knorr
 Local Manufacturing: FDI enabled investment in local production for soups
and seasonings.
 Growth: Double-digit sales growth post-investment in local manufacturing.
 Dove
 Expansion: Premium personal care products like Dove DermaSpa were
introduced.
 Market Leadership: Dove leads the premium skin and hair care market in
India.
 TRESemmé
 Premium Hair Care: FDI helped expand availability in modern retail and e-
commerce.
 Growth: Contributed to a 9% increase in HUL’s hair care sales.
 Surf Excel
 Localized Production: Improved efficiency and cost-cutting in laundry
products.
 Growth: 10% growth in the laundry segment.

3.Rural Development Programs

 Government initiatives aimed at rural development have positively impacted

HUL's sales, especially in the home care segment.

(Source:HUL's cautious optimism: Can stable prices and rural recovery ease the FMCG
path? - The Economic Times)
March 2025 quarter, rural India's consumer demand outpaced urban areas for the fifth
consecutive quarter, with the overall fast-moving consumer goods (FMCG) market seeing an
11% growth in value, largely driven by rural regions . HUL's home care segment, including
brands like Surf Excel, Vim, and Domex, reported an 8% growth, showcasing high-single-
digit volume growth

4.Sustainability and Natural Products

HUL has observed a growing consumer preference for sustainable and natural products,
leading to innovations in biodegradable packaging and eco-friendly product lines.

(Source:Home and Personal Care industry focusses on eco-friendly ingredients for

sustainability)

Key products include:

 Dove: Promotes natural ingredients and eco-friendly packaging, capitalizing

on the clean beauty trend.
 Surf Excel: Focuses on energy-saving and eco-friendly detergent solutions,
tapping into the demand for sustainable household products.
 Knorr: Sourcing sustainable ingredients and catering to the growing health-
conscious food market.
 TRESemmé: Offers natural hair care, aligning with premium and eco-
conscious beauty trends.
 Pureit: Provides eco-friendly water purifiers, addressing clean water access in
emerging markets.These products align with rising consumer demand for
sustainability, offering long-term growth opportunities. HUL’s innovation,
brand loyalty, and progress toward sustainability targets make it a strong for
investment.

5.Health and Hygiene Focus

 HUL's post-pandemic focus on health and hygiene has strengthened its market
position, with strong growth in this essential segment (12% in FY21). Its trusted
brands (Lifebuoy, Domex), quick product innovation, and strong social
responsibility make HUL a resilient and low-risk stock. For investors, HUL
 offers steady returns, long-term growth potential, and defensive value—ideal
for a stable portfolio in uncertain times.

(Source:Investors | Unilever)

6.Project Shikhar

 It positively influences HUL’s stock by boosting rural sales, improving

operational efficiency through digital tools, and strengthening its competitive
edge. This enhances investor confidence, supports long-term growth, and
contributes to stable or rising stock prices.

(source;HUL's Shikhar user interface made seamless as popular social media apps |
Company News - Business Standard)

7.AI-Driven Supply Chain

 HUL has implemented AI and machine learning to enhance supply chain efficiency,
including predictive analytics for inventory management and demand forecasting.

8.Partnership with Brookfield:

HUL teamed up with Brookfield to set up a 45 MW solar energy park in Rajasthan,

advancing its sustainability efforts and net-zero goals. This move enhances HUL’s
environmental credentials and could lead to long-term cost savings, appealing to
ESG-focused investors and boosting stock market confidence.

(Source: https://www.unilever.com/news/news-search/2025)
  Acquisition of Minimalist: HUL acquired a 90.5% stake in the premium beauty
brand Minimalist for ₹2,955 crore. This expands HUL’s presence in the growing
premium beauty segment, which is expected to drive higher revenue and margins,
positively influencing investor sentiment and stock price.

(Source : https://www.angelone.in/news/)

9.Net-Zero Emissions Commitment

•The company aims to achieve net-zero emissions in its operations by 2030 and across
its value chain by 2039.

HUL's strong Environmental, Social, and Governance (ESG) performance enhances investor
confidence, attracting ESG-focused investors and potentially leading to higher demand for its
stock. The company's proactive approach to sustainability reduces regulatory risks and
positions it for long-term growth, which can positively impact its stock price .

10.Plastic Reduction and Recycling

 HUL has committed to reducing its virgin plastic use by 30% by 2026 and 40%
by 2028. Additionally, the company aims to ensure that 100% of its rigid plastic
packaging is reusable, recyclable, or compostable by 2030, with flexible plastics
 to follow by 2035. As of 2024, 21% of HUL's global product portfolio uses
recycled plastic, and 57% of its plastic packaging is designed for recycling

Source: https://trellis.net/article/)

Financial Statement
Profit And Loss

Sales Growth: Sales have grown steadily, with a 7% annual growth, reaching an estimated
₹63,121 crores by March 2025.
Operating Profit: Operating profit has increased significantly, maintaining a stable margin
of 16%-25%, indicating solid operational efficiency.
Net Profit: Net profit has grown strongly, reflecting the company's ability to control costs
and maintain margins
Dividend Payout: HUL has a high dividend payout ratio (70%-80%), showing a shareholder-
friendly approach.
Stock Price CAGR: The stock has grown at an impressive 11% annual rate, reflecting
investor confidence.
Return on Equity (ROE): ROE has grown at 29% annually, demonstrating effective use of
shareholder capital to generate profits.

Inference:

These create confidence and demand, leading to a positive impact on the stock market
price of HUL.
National & International News

 HUL-Bira 91 Partnership Market

 Reaction: Neutral to slightly positive
 Reason: Alcohol is a non-core category for HUL, despite demonstrating
innovation and diversification. Instead of viewing it as a primary source of
income, investors might view it as experimental.
 Stock Implication: If it doesn't scale profitably, it will have little immediate effect.
 The personal care market's response to price increases has been positive in the short to
medium term.
 Reason: Illustrates HUL's pricing strength and margin-protecting capabilities in
inflationary times.
 Stock Implication: Assures analysts by supporting operating margins and earnings.

 Market Response to "Smart Fill" Refill Stations: Long-term favorable.

 Reason: Attracts institutional investors who are concerned with sustainability and
is in line with ESG (Environmental, Social, Governance) investing trends.
 Implication for Stock: Improves HUL's long-term brand equity and ESG score.
Stock may not move right away, but adds future value.
 Unilever’s Global Restructuring (2024)
 Market Reaction: Neutral to slightly negative (depends on market adaptation).
 Reason: Streamlining operations, possible redundancies, and refocusing strategies
globally.
 Stock Implication: Short-term volatility due to restructuring costs, but long-term
efficiency gains could stabilize the stock.
 Shift to Sustainable Palm Oil (Global)
 Market Reaction: Positive (long-term focus on sustainability).
 Reason: Aligning with global sustainability standards to address environmental
concerns.
 Stock Implication: Initial costs could pressure margins, but the long-term benefit
includes improved brand image and customer loyalty.
 HUL’s Export Expansion to Africa & SAARC
 Market Reaction: Positive (growth potential in emerging markets).
 Reason: Expansion into high-growth regions with a focus on herbal and Ayurvedic
products.
 Stock Implication: Potential revenue growth from new markets, but requires
successful market penetration and localization.
 Supply Chain Digitization with IBM (2023)
 Market Reaction: Positive (efficiency and technological advancement).
 Reason: AI-driven predictive planning to optimize supply chain operations.
 Stock Implication: Initial investment may impact short-term profit, but long-term
cost savings and operational efficiencies can enhance profitability.
 Product Recalls in GCC Markets (2024)
 Market Reaction: Negative (short-term).
 Reason: Triggers quality concerns, especially in sensitive product categories like
skincare.
 Stock Implication: Minor revenue hit, but larger reputational risk. Temporary dip
in stock possible.
Unilever is transforming its R&D by integrating bioscience, data science, and AI, with its
India labs playing a key global role. This shift enables faster, smarter product
innovation, leveraging consumer data to stay competitive. For investors, this signals a tech-
forward, future-ready FMCG leader with strong potential for long-term growth,
especially as India becomes a global innovation hub. However, high R&D costs and
growing competition are risks to watch. Overall, Unilever is a solid investment for those
seeking innovation-led growth in the FMCG space.
Indian consumers are increasingly buying premium FMCG products, driving a 16% CAGR
in volumes (2022–24). This shift reflects a move toward quality and branded goods over
traditional value buys.This trend benefits FMCG leaders like HUL, boosting margins and
long-term growth prospects making such stocks attractive for investment.