Hindustan Unilever (HUL-BY)
236.80
1.40 (0.59%)
as of Apr 01, 3:58 PM IST
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See all Bulls Reasons Bulls: Reasons To Buy Price of key raw materials have fallen. Price of key raw materials have fallen.
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Related Blog Posts Prices of key raw materials e.g. palm oil have fallen as much as 60% compared to those of Apr'08. HUL had increased its 0 votes • Growth product prices across almost every segment and there are no 0% stocks: chances of decreasing the price in near future. So profit agree Riddhi margins are expected to be higher in coming months. Siddhi View or Edit Reason Gluco Biols Add your own Bulls Reason
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Hindustan Unilever Ltd. (BSE:HUL) makes fast-moving consumer goods (FMCG) such as detergents, toiletries, and food staples. The company has a distribution channel of 6.3 million outlets and 35 major Indian brands.[1]. HUL recorded 20.02% year over year (yoy) growth in revenue at Rs 16660.38 crores during the year ended Dec'08.[2] Its Soaps and Detergents business was its largest contributor to revenues with 46% of total revenues where as Personal Care products contributed the most (46%) towards EBIT (Earnings before Income Tax).[3] Raw material prices for palm oil and other chemicals increased of 31% from Nov'07Apr'08 [4], which led the company to implement a price hike by a weighted average of 10% from April to June 2008 in order to protect its margins.[5] From April to October 2008, however, palm oil prices declined 62.2% so Hindustan has accrued higher revenue on lower volume sales in late 2008, early 2009. [5] Increase in per capita income in urban, as well as rural areas, of India has a positive effect on demand of consumer goods along with a shift in demand towards high end lifestyle
products. Long a provider of low cost consumer goods, HUL has recently launched products in its high end segments.
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1 Company Overview o 1.1 Business and Financial Metrics o 1.2 Business Segments 2 Trends and Forces o 2.1 Increasing raw material prices drives HUL to raise its prices o 2.2 Increasing per capita income drives FMCG sector growth o 2.3 Per Capita consumption of personal care products in India is one of the lowest among developing economies of the world. o 2.4 Highly Competitive FMCG Sector limits profit margins of HUL. 3 Competition o 3.1 Market Share 4 References
[edit] Company Overview