HUL sees modest volume growth in FY25, signalling some respite for demand-starved FMCG sector

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Also read | With premium coffees and pricey hair serums, consumer goods makers woo the well-heeledHUL’s turnover in the financial year ended 31 March increased 2.5% year-on-year to ₹59,579 crore, while profit after tax rose 1.5% to ₹10,114 crore. Volumes grew 2%.While HUL is focused on expanding its premium products portfolio, Paranjpe is hopeful of a recovery at the mass-end of the market.“It is really the mass-end of the business where inflation had squeezed discretionary incomes of people and curtailed demand.

That’s the recovery we hope to see as we move forward," Paranjpe said, adding that organized trade continues to provide growth opportunities.In the March quarter, India’s FMCG industry reported 6.6% growth in value terms, with volumes increasing 6.5%, according to market researcher NIQ. In March, rural demand outpaced urban markets for the first time in 15 months.Also read | Rural demand is finally taking off.

FMCG firms capitalize with strategic movesEarlier this year, HUL’s parent, the UK-based Unilever Plc., decided to spin off its €7.9-billion ice cream unit by the end of 2025 to focus on its beauty and wellbeing, personal care, homecare, and nutrition businesses. HUL is yet to decide on its ice cream business, Paranjpe said.As for Unilever’s decision in March to slash 7,500 jobs globally as part of a programme that’s expected to save it about €800 million over the next three years, Paranjpe said the impact on the India business will be “modest".Globally, Unilever employs 128,000 people; in India, it employs over 19,000 people.“India is a high-priority country amongst the top countries as far as Unilever is concerned," Paranjpe said.