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HUL to drive competitiveness of its brands

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KOLKATA: Consumer goods major Hindustan Unilever Ltd (HUL) is looking at strengthening the core of its business and drive competitiveness of its brands in the market.

“We continue to strengthen the core of our business and drive the competitiveness of our brands in the market. At the same time, we are leading market development in relatively nascent categories such as packaged foods and premium personal care with strong results,” said HUL chairman Harish Manwani.

Talking about the packaged food segment, Kolkata-based Microsec Research said, “It was the fifth successive quarter of double digit growth in packaged foods segment, led by Kissan and Kwality Walls.”

On brand investments, Manwani added: “Brand investments were sustained at competitive levels across all segments even as competitive intensity stepped up in the commodity linked categories.”

It should be noted that from food and beverages to personal care, HUL’s brands are part of everyday life. “Our brands play a major part in helping us achieve our sustainable living aims of helping more than a billion people improve their health and well-being; halving the environmental footprint of our products and sourcing 100 per cent of our agricultural raw materials sustainably. Given the fast changing external environment, we are managing our business dynamically for sustained volume led growth and margin improvement,” the company said.

From last two quarters, input costs were benign with a fall in crude oil prices and this has started to reflect in the lower cost of goods sold, the company further said.

To pass on the benefits of reduced inputs costs, the FMCG major has reduced the prices of soaps and detergents, which accounted for around 50 per cent of its revenues in the last quarter.

When a city based analyst was called, he said in the current quarter one can expect price cut in skin cleansing products and tea and other verticals, which did not see any price correction.

Since price cuts are expected to take place in premium brands as well apart from mass brands, as the company hinted, HUL is aiming see consumers upgrading themselves, the analyst said.

As per Microsec Research, Pureit delivered another good quarter of double digit growth led by the premium segment.

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