However, the total income during the quarter increased to Rs 15,441 crore in the fourth quarter as against Rs 15,375 crore in the corresponding quarter a year ago, HUL said in a regulatory filing.
India’s elite classes are becoming pickier consumers, fueling the success of organic personal-care brands backed by slick social media marketing campaigns. The rise of companies like local upstart Honasa Consumer Ltd, and the inroads made by global names including Estee Lauder Companies Inc. and Clinique Laboratories LLC, is forcing Hindustan Unilever to spend more on product development and advertising.
FMCG ad volumes on TV grew by over 3% in the last calendar year, with strong growth in the second and third quarters of the year. The top 10 advertisers collectively contributed 69% of TV ad volumes, with Hindustan Unilever dominating the list.
HUL exploring selling ice-cream business after making it a separate unit. Ice-cream requires unique manufacturing and distribution. Market competition includes Magnum, Amul, and Kwality. Unilever focuses on similar segments, aiming to improve gross margins.
"The scheme has had a good impact and incentive disbursements have also picked up," Rajesh Kumar Singh, top bureaucrat at India's Department for Promotion of Industry and Internal Trade, told Reuters.
Honasa Consumer diversifies into colour cosmetics with Staze, targeting young consumers with affordable products. The company's strategic expansion aims to capture a share of the growing beauty market by introducing new brands and categories.
L Catterton has formed a joint venture with former Hindustan Unilever chief Sanjiv Mehta to develop a consumer-focused investment vehicle in India. Mehta will become executive chairman of the fund in India from April 4, 2024, and will be involved with L Catterton Asia and its other global fund platforms. Mehta has over 30 years of experience at Unilever, including serving as president of Unilever South Asia and chairman of Hindustan Unilever.
India's FMCG sector is adapting to digital transformation by investing in digital advertising and engaging in direct-to-consumer trends. Legacy companies face challenges from local brands and digital-first startups as market dynamics evolve.
More than 70% of the new products launched by India's largest consumer goods maker Hindustan Unilever in last two years were in the premium segment. Around 65% of all new personal care product launches were in the premium segment for ITC Ltd, doubling the contribution of such products to the division's sales in the last four years to 38%. For the largest biscuit maker Parle Products, around 60-65% of new launches were in the premium segment as compared to 40% pre-Covid.
Orion India, a subsidiary of South Korea’s Orion Holdings, is expanding its Indian snacks portfolio by introducing new products and increasing production capacity. The company has also enlisted Palak Tiwari to promote its Turtle Chips franchise in India.
"As far as the Indian ice cream business is concerned, we are evaluating the various options in light of this announcement. We will discuss this with the HUL Board and Unilever management in the coming months. Once the approach is finalised, we will communicate further," said a HUL spokesperson in response to a query over the impact of Unilever's decision on the Indian business.
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