Hindustan Unilever (HUL), the country’s largest fast-moving consumer goods company, is much ahead of market in premiumisation and, on average over the past 10 years, the firm has increased its contribution from premiumisation by 100 basis points every year, Sanjiv Mehta, managing director and chief executive officer, told analysts after its earnings conference call.
The maker of LUX soaps expects its premium products will keep driving margins.
He said: “I don’t think premiumisation as a trend will stop so long as the country keeps growing at 6 per cent (or) 7 per cent … and then when you take into account the inflation you’re talking about a nominal growth rate of 13 per cent (or) 14 per cent even when you look at the salaried class. All surveys are indicating that salary increases this year are going to be anywhere in the vicinity of 8 per cent to 10 per cent. So money will definitely come in if the economy keeps
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
HUL Q4 net profit up 10% YoY, FMCG giant declares dividend of Rs 22/share
Price hikes to drive HUL Q4 revenue, ad-spends to dent margin: Analysts
Hindustan Unilever's royalty hike move hits investor mood, stock dips 4%
OZiva buyout to improve HUL's health and wellbeing in long-run: Analysts
Two internal candidates in race for Hindustan Unilever CEO position
FAME subsidy saga: Ola to repay customers for separately billed chargers
Jalan-Kalrock Consortium has missed flight to relaunch Jet Airways: Experts
Waiting to resolve subsidy deadlock, recover Rs 500 cr: Hero Electric CEO
Green energy firm Serentica Renewables secures $250 million from KKR
Muthoot Microfin expects 50% of its collections to come digitally by Sept