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Indian <keyword id="34523" type="CITY" weightage="100" keywordseo="fmcg">FMCG</keyword> brands are giving a tough time to foreign brands. While much hullabaloo is about Yoga guru <keyword id="6369109" type="PERSON" weightage="20" keywordseo="Ramdev">Ramdev</keyword>’s Patanjali, <keyword id="26280" type="COMPANY" weightage="20" keywordseo="amul">Amul</keyword> is all set to give a tough time to <keyword id="6365619" type="CITY" weightage="100" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> now. Amul, marketed by the <keyword id="110794" type="ORGANIZATION" weightage="20" keywordseo="Gujarat-Co-operative-Milk-Marketing-Federation">Gujarat Co-operative Milk Marketing Federation</keyword>, plans to zoom ahead Hindustan <keyword id="45009" type="CITY" weightage="20" keywordseo="Unilever">Unilever</keyword> as the country’s largest FMCG firm over next two years. As GCMMF is growing at a CAGR of 19% for last seven years and confident to continue such high pace of growth Amul’s managing director RS Sodhi expressed the positivity, while talking to The Economic Times. GCMMF touched Rs 27,000 crore sales in 2016-17, while Hindustan Unilever had touched Rs 31,987 crore revenue in 2015-16. Hindustan Unilever is yet to declare its result for last fiscal, according to the ET. "Around 13-14% of our growth will come from milk procurement expansion and 6-7% from the average price hike. We are expanding milk procurement outside <keyword id="6354766" type="COMPANY" weightage="20" keywordseo="Gujarat">Gujarat</keyword> in states like Uttar Pradesh, Rajasthan, Haryana, Punjab, West Bengal and Maharashtra," Sodhi told the financial daily.

This Indian brand will overtake FMCG king Hindustan Unilever by 2018-19

<ul><li><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> Limited has cut prices for <keyword id="6616182" type="UNKNOWN" weightage="20" keywordseo="Lifebuoy">Lifebuoy</keyword>, <keyword id="119472" type="ENTERTAINMENT" weightage="20" keywordseo="Lux">Lux</keyword> and Dove in lieu of low demand. </li><li>The Indian economic slowdown has hit FMCG companies.</li><li>Biscuit manufacturers Parle G and Brittania too have a worried outlook for the <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword>. </li></ul>One of the biggest FMCG companies in India – Hindustan Unilever Limited – has cut prices for some of its most popular <a href="https://www.livemint.com/industry/retail/hul-reduces-lifebuoy-lux-prices-in-latest-sign-of-weak-demand-1566928904118.html">soaps </a>– Lifebuoy, Lux and Dove. While demand is one reason for it, tapering commodity prices also allowed them to take a call and pass on the benefits, the company told <a href="https://www.livemint.com/industry/retail/hul-reduces-lifebuoy-lux-prices-in-latest-sign-of-weak-demand-1566928904118.html">Mint.</a> While the price of Lux range will go down by 4%, that of Lifebuoy will go down by 6%. The Indian economic slowdown has impacted all major companies in the FMCG sector. Parle G, a leading biscuit manufacturer said it is planning to slash 10,000 jobs due to weak demand. Even though <a href="https://www.hindustantimes.com/india-news/fair-tax-gst-and-big-job-cut-parle-clears-air-on-layoffs/story-G2N4IYsC5aQ0x9rINe8EHN.html">Parle G</a> has denied the same, it has also said it is “an eventuality if our demand for lesser tax rates is not met.” In the <a href="https://www.dnaindia.com/business/report-consumers-thinking-twice-before-buying-a-rs-5-pack-britannia-2781047">latest earnings conference call</a> of Britannia, the company’s MD Varun Berry raised some serious concerns about the Indian economy. "We've grown only 6% and the market is growing slower than that. And that's a little bit of a worry, because even for a ₹5 product if the consumer is thinking twice before buying it, then there is some serious issue in the economy,” he said. See Also: <a href="https://www.businessinsider.in/indian-villagers-are-not-buying-clothes-and-cutting-back-on-hair-oil/articleshow/70856804.cms">After biscuits, Indian villagers are cutting down on clothes and hair oil too</a>

Lifebuoy and Lux get cheaper as HUL reduces prices because of low demand

<keyword id="6365619" type="CITY" weightage="20" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> is planning on competing with <keyword id="6355107" type="PERSON" weightage="20" keywordseo="Baba-Ramdev">Baba Ramdev</keyword>’s <keyword id="6356684" type="UNKNOWN" weightage="20" keywordseo="patanjali">Patanjali</keyword> and the former is looking forward to launch Ayurvedic personal care products. 
 
Patanjali has turned into a Rs 5,000-crore company within a decade. Although still small compared with HUL's Rs 30,000 crore plus revenue, it has caught the attention of all fast-moving consumer goods giants. 
 And above all that, Ramdev hasn’t been modest about its success and recently he said Patanjali can beat multinational giants such as <keyword id="45009" type="CITY" weightage="20" keywordseo="Unilever">Unilever</keyword> (HUL's parent), Colgate and <keyword id="75190" type="CITY" weightage="20" keywordseo="Nestle">Nestle</keyword>. 
 
HUL, the maker of Lux, Dove and Rin, will launch around 20 products - toothpaste and skin cream to soaps and shampoos - under its existing Ayurveda brand Ayush. 
 
Ayush was launched in 2001 as a premium brand but had lost momentum by 2007. Now, the positioning will be mass market - price points between Rs 30 and Rs 130. 
 
HUL has already been in such desi feud earlier. In mid-1980s, Ahmedabad-based Karsanbhai Patel's Nirma, a detergent brand, toppled HUL's Surf from the shelves of middle class and lower middle class Indian homes. The Indian unit of the Anglo-Dutch FMCG Company rolled out Wheel, a low-priced option. 
 
Given Hindustan Unilever's determination to take on Patanjali, and the latter's aggressive future plans, 2017 may see another classic corporate battle in the FMCG space. 
 
"Ayurveda is a growing trend. Lever Ayush is designed to attract and retain consumeRs with authentic Ayurvedabased offerings,” Sandeep Kohli, executive director, peRs onal care, HUL, told ET. 
 
Patanjali's rise has led to otheRs exploring the Ayurveda and herbal products space. L'Oreal launched a hair care range under Garnier Ultra Blends made with "natural ingredients,. Colgate brought Cibaca Vedshakti to the market. 
 
HUL's personal care business accounts for nearly half its sales and 60% profits, mainly due to a large portfolio of premium products.

HUL is gearing up to give a tough fight to Patanjali. Here’s how

A few days ago, yoga guru <keyword id="6355107" type="PERSON" weightage="100" keywordseo="Baba-Ramdev">Baba Ramdev</keyword> had taken a <a href="http://www.businessinsider.in/Weirdest-comment-of-the-day-Ramdev-Baba-says-Patanjali-will-shut-the-gate-in-Colgate-make-Nestles-bird-disappear/articleshow/52027530.cms">direct dig</a> at the rivals of his FMCG firm <keyword id="6356684" type="UNKNOWN" weightage="100" keywordseo="patanjali">patanjali</keyword>, saying, "Patanjali will shut the 'gate' on <keyword id="73802" type="COMPANY" weightage="100" keywordseo="Colgate">Colgate</keyword>. The birds in Nestle's nest (logo) will also fly away." 
 
His confidence has come because of Patanjali achieving the 5000 crore mark, and successfully <a href="http://www.businessinsider.in/Indias-herbal-market-has-got-a-new-life/articleshow/51104012.cms">bringing Ayurveda back</a> into the daily lives of Indians, just the way he had brought Yoga back to the its country of origin many years ago. 
 
And now, Patanjali is all set to overpower traditional FMCG biggies like <a href="http://www.businessinsider.in/Patanjali-takes-over-the-entire-Ayurveda-industry/articleshow/51453997.cms">Hindustan Unilever, Nestle, Marico and Dabur</a>, and we say this basis data and records. 
 
Patanjali has <a href="http://www.businessinsider.in/Everyone-wants-to-be-a-part-of-Patanjalis-success-as-FMCG-giant-aims-Rs-1000-crore-this-fiscal/articleshow/51682270.cms">put a dent</a> on these companies in the past four months, and investors think that Ramdev's company will further impact their market share and consumer preferences. 
 
This year, so far, the BSE FMCG index, a gauge of the FMCG stocks on BSE, has already slumped 9%, even though the consumption demand has revived, along with the expectation of good monsoon, which would up rural wages and further support demand growth. 
 "I think the market is growing. So there is room for everyone, but there will be some give and take in market shares. Patanjali has this ayurvedic halo around it and Baba Ramdev is a great brand," Pradip P Shah, Chairman, <keyword id="1539139" type="ORGANIZATION" weightage="100" keywordseo="IndAsia-Fund-Advisors">IndAsia Fund Advisors</keyword>, told ET. 
 
"There is a natural feeling that these products are good and the price points are lower compared with the premium products available in the market. There is a great product out there and their distribution and packaging are pretty good," he said. 
 
One might be forced to think that the success of this 10-year old FMCG firm is just because of Baba's charm. Raamdeo Agrawal, Co-Founder &amp; Joint MD of MOFSL, says, "It will definitely <a href="http://www.businessinsider.in/BabaRamdevs-Patanjali-is-already-spelling-doom-for-this-global-brand-in-India/articleshow/51303845.cms">take away market shares</a> in some segments. They have a segment where they will thrive. So it is a marketing challenge for the rest of the pack, be it <keyword id="6365619" type="CITY" weightage="100" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> or Colgate or <keyword id="40233" type="COMPANY" weightage="100" keywordseo="emami">Emami</keyword>, whosoever is hurt by Patanjali products." However, he also added that, "Patanjali will have some challenges coming in later on product superiority, because one needs to see whether product superiority or just the blind faith in Baba Ramdev's brand equity is driving them" 
 
Some, however, are of the view that the market is big enough for the competitors to survive. "Clearly, Patanjali is making inroads, but that does not mean the Unilevers of the world will fade away. They are astute. They have excellent marketing. They will come out with different products. They will come out with different prices," Pradip P Shah of IndAsia Fund Advisors told ET. 
 
<a href="http://www.himalayanmail.com/newsadmin/Photo/562011175926119.jpg">Image source</a>

Is Patanjali actually going to displace traditional biggies from the market, or is it just Baba Ramdev’s charm?

<ul><li>The consumer pharma major <keyword id="143013" type="COMPANY" weightage="20" keywordseo="GlaxoSmithkline-Consumer-Healthcare">Glaxosmithkline Consumer Healthcare</keyword> GSK’s decision to dump its holding in <keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> (<keyword id="44863" type="DOMAIN" weightage="20" keywordseo="HUL">HUL</keyword>) sparked a selling spree in the last one week. </li><li><keyword id="119621" type="COMPANY" weightage="20" keywordseo="Societe-Generale">Societe Generale</keyword>, which is a French investment company, bought 12.9 million shares of HUL. </li><li>And that led to a 3% rally on Friday at 11:40 am, according to Bombay Stock Exchange (BSE). </li><li>The company witnessed a 7% decline in sales volume between Jan-March 2020 and that came as a shocker for investors.</li></ul>The investors in India’s largest consumer staples company Hindustan Unilever (HUL) have recovered from a short-lived panic attack. Aside from disappointing earnings, the consumer pharma major <keyword id="78710" type="COMPANY" weightage="20" keywordseo="GlaxoSmithKline">Glaxosmithkline</keyword> Consumer Healthcare’s (GSK) decision to dump its holding in HUL, sparked a selling spree in the last one week. With its merger with GSK, Hindustan Unilever was set to become the biggest food company in India. However, as the HUL share price plunged, a new investor, Societe Generale, which is a French investment bank, was waiting to lap up GSK’s offer. Investors are ready to pay higher prices now, given the future growth expectations. And that led to a 3% rally on Friday at 11:40 am. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2299205" data-url="https://flo.uri.sh/visualisation/2299205/embed"></div>]]></cdata></div> Societe Generale bought <a href="https://www.business-standard.com/article/markets/hul-surges-4-after-societe-generale-buys-1-29-crore-shares-via-bulk-deal-120050800300_1.html">12.9 million shares of HUL</a> priced at ₹1,902. This came after GSK dropped its 5.7 per cent stake in the Indian fast-moving consumer goods major, amounting to nearly ₹25,480 crore (nearly $3.3 billion). <div type="Article" hostid="261" msid="75621896" title="Top ten Indian stocks that can gain another 10%-30% even after the April rally, according to Macquarie" mstype="2" mssubtype="0"></div> ‘<keyword id="1157853" type="PERSON" weightage="20" keywordseo="HUL-shares">HUL shares</keyword> can rally another 18% in the next one year’ HUL has always been one of the most valued companies in India, based on price-to-earnings ratio ⁠— a valuation metric that indicates the price that an investor is willing to pay for every rupee of profit earned by the company. Based on that, the recent sell-off has made India’s fast-moving consumer goods giant even more attractive at these levels. Therefore, another investment bank Macquarie has put HUL as one of the top ten stocks that investors should buy with a target price of ₹2,500 (an implied gain of over 18% compared to the closing price on May 5 when the report was compiled). <div type="Article" hostid="261" msid="75615861" title="ICICI Bank’s earnings on May 9 will reveal the level of economic damage caused by COVID-19 at the level of small borrowers" mstype="2" mssubtype="0"></div> The earnings debacle that led to the recent correction in HUL India only shut down its economy on March 25; shops were open for nearly the entire quarter except for the last week. Even after that, people were hoarding, panic buying essentials every few days as the lockdown continued to extend, and is now scheduled to end on May 17. Several HUL products fall under essentials like sanitizers and hand wash in its brands. However, there was a larger downtrend as the weakness in demand became increasingly clear. In the last one month, the shares of India’s largest fast-moving consumer goods major slumped by 16% — since April 8. A lot of it has to do with a <a href="https://www.businessinsider.in/business/news/hul-fourth-quarter-earnings-report-volume-growth-and-share-price-chart/articleshow/75472021.cms">7% decline in sales volume</a> between Jan-March 2020 and that came as a shocker for investors. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2250243" data-url="https://flo.uri.sh/visualisation/2250243/embed"></div>]]></cdata></div> If one week's lockdown could cause a 7% fall in volume growth, investors fear about what six weeks can do.<a href="https://www.businessinsider.in/stock-market/news/when-warren-buffett-feels-fear-global-markets-quake/articleshow/75538855.cms"> Investors in HUL lost over $3.5 billion</a> as the stock slumped over 5% on May 4 and 5. Now that the expectations of a weak performance is priced in, and the fact that investors are looking for safe bets at a time when the economy and market is in the grip of a crisis, the shares of HUL seem to be attracting buyers again. See also: <a href="https://www.businessinsider.in/stock-market/news/when-warren-buffett-feels-fear-global-markets-quake/articleshow/75538855.cms">When Warren Buffett feels 'fear', global markets quake</a> <a href="https://www.businessinsider.in/policy/economy/news/hul-ceo-had-hoped-for-a-v-shaped-economic-recovery-from-covid-19-crisis-but-investors-fear-a-lot-worse/articleshow/75547375.cms">HUL CEO had hoped for a V-shaped economic recovery from COVID-19 crisis ⁠— but investors fear a lot worse</a> <a href="https://www.businessinsider.in/finance/news/sbi-share-price-and-hdfc-bank-share-value-comparison/articleshow/75535265.cms">SBI, India's largest bank, is only worth a third of HDFC Bank — and the COVID-19 lockdown is making it bleed even more</a>

HUL shares are red hot as investors look past recent hiccups

<ul><li>The third quarter for 2018-19 was expected to be marked by slowing <keyword id="45663" type="ORGANIZATION" weightage="20" keywordseo="Revenue">revenue</keyword> growth and lower margins for India Inc. </li><li>However, three of India’s largest companies, <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword>, <keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword> and Hindustan Unilever bucked the trend. </li><li>All posted solid earnings results, but this was largely due to the base effect from the year-ago period and the rupee’s depreciation. </li></ul>The third quarter for 2018-19 was expected to be an unmemorable one in terms of real earnings for India Inc. But the results posted at least by three major Indian companies have bucked the trend. Towards the end of the year, revenue growth for the corporate sector was slowing, according to CRISIL, a ratings agency. In fact, India’s corporate sector was forecast to record <a href="https://www.crisil.com/en/home/newsroom/press-releases/2019/01/india-inc-revenue-growth-seen-down-400-500-bps-in-q3.html">a 4-5% decline</a> in <keyword id="4121031" type="PERSON" weightage="20" keywordseo="Q3">Q3</keyword> revenue growth amid a sluggish festive season <a href="https://www.businessinsider.in/heres-why-indias-central-bank-is-hiking-rates-consecutively-for-the-first-time-since-2013/articleshow/65243193.cms">and consecutive rate hikes</a> by the Reserve Bank of India (RBI). Those factors hurt demand for automobiles - in particular - and raw materials costs were higher, especially for imported inputs, thereby putting profits under pressure. However, in nominal terms, India Inc recorded a boost since the year-ago quarter in 2017-18, which was marked by the lingering effects of the demonetisation and the flawed implementation of GST. In addition, the rupee had weakened nearly 10% year-on-year, thereby increasing earnings for exporters and companies with a large international presence. The aforementioned factors were mostly seen in the Q3 results of India’s market leaders, which counted on their strong urban presence and scale to offset subdued rural demand. This defied the larger performance of India’s corporate sector. Reliance Industries, India’s largest company by market capitalisation, posted a 9% rise in its net <keyword id="6362247" type="UNKNOWN" weightage="20" keywordseo="Profit">profit</keyword> to ₹102.5 billion for the quarter ended December 2018, buoyed by revenue growth at its highly leveraged telecom unit, Jio, and petrochemical businesses, which benefited from a year-on-year increase in oil prices. As a result of accelerated store expansion, its retail unit bucked the trend and posted strong festive sales, nearly doubling its quarterly revenue to ₹358 billion. The consumer unit’s expansion has been supported by profits from the petrochemicals business. IT major TCS, the country’s second largest firm by market cap, reported a 24% rise in net income to ₹81.1 billion, based on strong earnings from its cloud computing and analytics business in international markets like the UK and Europe. Its overall margins were, however, weighed down by higher costs such as hiring expenses as it onboarded a lot more employees during the quarter in order to meet its higher deal order. Meanwhile, consumer goods giant HIndustan Unilever Ltd, fresh off <a href="https://www.businessinsider.in/hindustan-unilever-and-glaxosmithklines-domestic-consumer-unit-are-merging-in-what-is-said-to-be-indias-largest-consumer-goods-deal-ever/articleshow/66933852.cms">its deal with GlaxoSmithKline</a>, saw sales rise 12% to ₹93.4 billion as revenue from the home care and beauty segments rose in the double digits owing to price hikes. The company’s profits increased by 9% to ₹14.4 billion - the slowest pace of income growth in a year but in line with analysts’ expectations. Looking ahead to 2019-2020, <a href="https://www.businessinsider.in/no-low-inflation-is-not-always-a-good-thing-heres-why/articleshow/67541528.cms">a depressed inflation outlook </a>will hamper revenue growth further. India Inc will count <a href="https://indianexpress.com/article/business/india-inc-rbi-governor-pitches-rate-cut-liquidity-shaktikanta-das-5543853/">on a rate cut </a>by India’s central bank and increase liquidity support to banks in order to offset external pressures such as oil price volatility, global trade tensions and rate hikes in developed markets. Ahead of general elections, the government’s attempts to boost rural consumption will likely pay off in higher revenue growth in the first six months of 2019 but companies will have limited pricing power. SEE ALSO: <a href="https://www.businessinsider.in/reliance-industries-just-beat-tata-consultancy-services-to-become-indias-highest-valued-company/articleshow/65212268.cms">Reliance Industries just beat Tata Consultancy Services to become India’s highest-valued company</a> <a href="https://www.businessinsider.in/hindustan-unilever-and-glaxosmithklines-domestic-consumer-unit-are-merging-in-what-is-said-to-be-indias-largest-consumer-goods-deal-ever/articleshow/66933852.cms">Hindustan Unilever and GlaxoSmithKline’s domestic consumer unit are merging in what is said to be India’s largest consumer goods deal ever</a>

You Searched For "hindustan unilever price" and got 6 results

This Indian brand will overtake FMCG king Hindustan Unilever by 2018-19

BI India Bureau

Lifebuoy and Lux get cheaper as HUL reduces prices because of low demand

Sanchita Dash

HUL is gearing up to give a tough fight to Patanjali. Here’s how

BI India Bureau

Is Patanjali actually going to displace traditional biggies from the market, or is it just Baba Ramdev’s charm?

BI India Bureau

HUL shares are red hot as investors look past recent hiccups

Prerna

Sriram

India Inc’s market leaders had a solid end to 2018 but their gains were largely due to external factors

Dilsher Dhillon

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