India, the biggest market by volume for Unilever Plc, will overtake the U.S. to become the largest by value for the consumer goods giant, according to Hindustan Unilever Ltd.'s Chief Executive Sanjiv Mehta.
Indian consumers are increasingly giving up foreign brands in favour of Indian brands, Mehta told the Financial Times. “As a nation and in this generation, we're leaving behind the colonial past. There is pride in India, which is very apparent,” the FT report quoted him as saying. “Now Indian brands get as much respect, if not more respect, than imported brands.”
“I clearly see a day when HUL will become the largest Unilever business,” the report said, adding that he didn't give a timeframe.
According to the report, the Indian subsidiary accounts for about 10.7% of Unilever group sales and is one of its best performing units for the maker of Dove shampoo.
HUL reported a consolidated annual revenue of more than Rs 52,446 crore in FY22. And it has a market capitalisation of more than Rs 6.23 lakh crore.
Earnings growth for HUL is set to accelerate in six months through March as inflation headwinds subside, and demand environment improves, Jefferies said in a Sept. 22 report note. It forecasts 12% annual growth in revenue with 60-basis-point improvement in operating margin.
Shares of HUL were trading 0.73% higher on Tuesday at 1:20 p.m. compared with a 2.18% rise in the benchmark Sensex. Of the 42 analysts tracking the company, 31 maintain 'buy', nine suggest 'hold' and two recommend 'sell', according to Bloomberg data. The return potential of the stock is 5.5%
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