HINDUNILVR

Oct 23 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• Q2 UNDERLYING VOLUME GROWTH FLAT

• ANTICIPATE NORMAL TRADING CONDITIONS STARTING EARLY NOV, ONCE PRICES STABILISE

• QUARTER SAW TRANSITORY IMPACT AS MARKET ADJUSTED TO GST REFORMS

• EBITDA MARGIN EXPECTED TO REMAIN AT CURRENT LEVELS IN NEAR TERM

• IN NEAR TERM PRICE GROWTH TO BE IN LOW-SINGLE DIGIT

Further company coverage: HLL.NS

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Rewrites, updates shares, adds broker comments

Sept 29 (Reuters) - Indian consumer giant Hindustan Unilever HLL.NS pared most losses after falling as much as 2.7% on Monday as investors sought comfort from an expected recovery in demand after a consumption tax reform-led hit to sales.

The shares were down 0.2% at 2,506.50 rupees as of 12:32 IST, while the benchmark Nifty 50 .NSEI was flat. Hindustan Unilever's shares, rated "buy" on average by 39 analysts, as per data compiled by LSEG, have risen about 8% so far this year.

India cut taxes from September 22 on a wide range of consumer goods ranging from soaps to air conditioners, to boost domestic demand as the economy faces pressure from steep U.S. tariffs.

Hindustan Unilever said on Friday that the tax reforms led to a temporary hit to sales in September, which may persist through October as sellers clear older inventory and consumers delay purchases in anticipation of lower prices.

However, it expects a recovery in demand starting November as prices stabilise post the tax cuts.

Inventory-related headwinds will affect other Indian consumer goods firms as well in the July to September quarter, Jefferies said, adding that it expects a better third-quarter. "The GST rate cuts along with recent income tax cuts should help several consumption categories," the brokerage said.

BofA Securities echoed the optimism, projecting that restocking activity combined with a business recovery could drive growth for Hindustan Unilever in the second half of the financial year ending March 31.

The firm estimates consolidated business growth to remain flat to low single digits percent for the September quarter.

(Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair and Mrigank Dhaniwala)

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Sept 26 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• GST REFORMS REDUCE RATES TO 5% FOR 40% OF HUL'S PORTFOLIO

• EXPECT CONSOL BUSINESS GROWTH TO BE NEAR FLAT TO LOW-SINGLE DIGIT FOR QUARTER ENDING 30 SEPT

• GST BENEFITS PASSED ON TO CONSUMERS FROM 22ND SEPTEMBER ONWARDS

• ANTICIPATE RECOVERY STARTING NOVEMBER AS PRICES STABILISE

• GST REFORMS LED TO SHORT-TERM IMPACT ON SALES FOR THE CO IN SEPTEMBER

• EXPECT SALES IMPACT TO CONTINUE INTO OCTOBER AS WELL

Source text: ID:nBSE39XM1d

Further company coverage: HLL.NS

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NEW DELHI, Sept 4 (Reuters) - Indian Finance Minister Nirmala Sitharaman unveiled tax cuts for hundreds of consumer items, from soap to cars, in the biggest overhaul of the goods and services tax (GST), set to take effect from September 22.

Here are key highlights:

MAJOR CHANGES

India will have two key tax rates of 5% and 18% from September 22, versus four now. A new tax slab of 40% will apply to high-end goods, but all additional levies above that are to be abolished, bringing down effective tax rates on mid-size and big cars.

REVENUE LOSS, INFLATION IMPACT

The government estimates the cuts will cause revenue loss of 480 billion rupees ($5.5 billion), far lower than economists' estimate ranging from 1 trillion rupees to 1.8 trillion rupees.

Citi said India's inflation could ease as much as 1.1 percentage points if the cuts are fully passed through to consumers. India's retail inflation rate fell in July to its lowest in eight years.

TAX CUTS ON DAILY ITEMS

A tax panel approved lower GST of 5% on items of everyday use such as packaged food, medicines, toothpaste, fruit, milk products, talcum powder and shampoo, against 12% to 18% now.

The cut is expected to lift the sales of fast-moving consumer goods firms such as Hindustan Unilever HLL.NS, Nestle NEST.NS and Godrej Industries GODI.NS, while lowering costs for farmers.

It will abolish tax on individual life and health insurance products sold by companies such as LIC LIFI.NS, SBI Life Insurance SBIL.NS and ICICI Prudential Life Insurance ICIR.NS.

HOLIDAY BOOST TO SALES

The government has cut taxes on items such as cars, TVs and even cement, which could boost sales during the festival season that typically runs from the last week of September until November. India's tax panel also cut GST on air conditioners, ambulances, dishwashers, three-wheelers and hybrid vehicles.

Carmakers such as Maruti MRTI.NS and Toyota 7203.T, and manufacturers of consumer applicance such as LG Electronics LGEL.NS and Sony 6758.T are set to benefit immediately when the new rates kick in.

The tax panel also lowered the effective tax for big cars to 40% from the current rate of as much as 50%, making cars from Mercedes-Benz AGMBGn.DE, AUDI Aktiengesellschaft and BMW BMWG.DE attractive. GST on EVs was kept at 5%, giving relief to carmakers such as Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS after a panel recommended an increase.

The government lowered taxes on fertiliser and tractors to help lower costs for farmers, recently come in the spotlight as Prime Minister Narendra Modi vowed to protect them following a breakdown in India-U.S. trade talks.

MAIN LOSERS

GST was raised to 18% from 12% on apparel and clothing accessories that cost more than 2,500 rupees, which could hurt global brands such as Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.

The tax on coal went to 18% from 5%, but the effective tax rate on fizzy drinks make by PepsiCo PEP.O and Coca-Cola KO.N was held at 40%.

($1=87.5060 Indian rupees)

(Reporting by Aftab Ahmed; Editing by Clarence Fernandez)

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By Nikunj Ohri

NEW DELHI, Sept 3 (Reuters) - Indian state and federal ministers will meet for two days from Wednesday to weigh the biggest cuts to consumption tax in eight years, aimed at spurring domestic demand in the face of economic headwinds from U.S. tariffs.

Coupled with cuts in personal tax unveiled in February, the cuts in the Goods and Services Tax (GST) are expected to boost consumption in the South Asian nation, whose economy grew at an unexpectedly higher pace of 7.8% in the quarter to June.

A panel on the tax, headed by Finance Minister Nirmala Sitharaman with ministers from all Indian states, will decide on a plan to cut the tax on more than 400 items, ranging from hair oil to small cars.

"With U.S. tariffs clouding exports in textiles, autos and possibly pharmaceuticals, India must pivot towards domestic consumption as the primary growth engine," said Manoj Mishra, a partner at Grant Thornton Bharat LLP.

The move is expected to boost sales of FMCG firms such as Hindustan Unilever and Godrej Industries, and consumer electronics companies such as Samsung Electronics 005930.KS, LG Electronics 066570.KS and Sony 6758.T.

Among automakers Maruti, Toyota Motor 7203.T and Suzuki Motor 7269.T are expected to be big winners.

The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance, when he vowed to lower GST by October, aiming to counter the U.S. tariffs of up to 50%.

TWO RATES INSTEAD OF FOUR

The ministers will consider a two-rate structure of 5% and 18%, instead of four now, with additional tax bands of 12% and 28%. It will also consider a higher tax of 40% on some luxury and "sin" goods such as cigarettes.

The plan is to sweep into the 5% category all items of daily use now in the category of 12%.

The panel will also consider lowering taxes on consumer items such as toothpaste and shampoo to 5% from 18%, and on small cars, air conditioners, and televisions to 18% from 28%.

Economists expect the cuts to cost $21 billion in revenue losses, with states set to lose more than the federal government.

While the states are broadly on board, there could be heated discussion on ways to make up their loss of revenue.

The panel is likely to discuss raising taxes on high end electric vehicles priced at more than 2 million rupees.

It will also consider raising tax to 18% from 12% on apparel priced above 2,500 rupees ($29), which would affect the premium offerings of Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.

Taxes on air travel in the premium and business classes could also go to 18% from 12%.

($1=87.5060 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Clarence Fernandez)

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Corrects analyst name in paragraphs 4

By Bharath Rajeswaran and Vivek Kumar M

MUMBAI, Sept 1 (Reuters) - India's world-beating economic growth is failing to translate into gains for equity markets as weakening pricing power and U.S. tariffs weigh on corporate earnings, turning foreign investors away.

Gross domestic product (GDP) in India grew at a faster-than-expected 7.8% in the April-June quarter in real terms. However, nominal growth, which represents output at current market prices, fell to 8.8% from 10.8% in the previous three months, indicating a drop in inflation.

This trend was also seen in corporate earnings, with revenue growth of the top 3,000 listed Indian companies slipping to a seven-quarter low of 3.4% on-year, down from 5.1% in the previous three months and 6.8% a year ago, according to Mumbai-headquartered ICICI Bank Global Market Research.

"The core corporate earnings outlook is weak and for the next few quarters at least we remain underweight," said Sat Duhra, portfolio manager at Janus Henderson Investors, adding that higher U.S. tariffs are an impediment to growth that India cannot afford right now.

"Weaker credit growth, weaker nominal GDP growth and warnings of weakening asset quality at the banks will continue to keep foreign investors on the sidelines," Duhra said.

Equity analysts in India see corporate earnings growth as more closely correlated with nominal growth. Slower nominal GDP growth translates into weaker corporate revenue and profits, which can make stocks look overvalued.

Nominal GDP growth for the current financial year is expected to be 8.5%-9%, the lowest in two decades outside the COVID-19 pandemic, which could keep earnings and equity markets under pressure, analysts at Jefferies said in a report on Friday.

India's benchmark Nifty index has risen about 4% so far this year, making it the third worst-performing across MSCI Asia countries this year, after Thailand and Indonesia.

Foreign investors have sold a net $15 billion in Indian equities so far, including $4 billion in outflows in August, when U.S. President Donald Trump hit India with tariffs of as much as 50%.

Indian consumer staples struggled in the April-June quarter, with Hindustan Unilever HLL.NS reporting subdued revenue growth of 4% and Colgate Palmolive India COLG.NS posting a 4% decline.

"In our view, markets remain on the expensive side, and we expect the impact of tariffs to lead to further earnings downgrades over the next 1-2 months," said Peeyush Mittal, portfolio manager at Matthews Asia.

"Accordingly, our near-term is cautious."

Punitive tariffs are expected to lead to a 0.6-0.8 percentage point hit to real GDP growth if they stay in place for a year, according to economists.

But the indirect impact, via job losses in sectors like textiles and gems and jewelry, alongside a delay in investment plans, could mean a more significant impact.

ATTRACTIVE ENTRY POINT

The underperformance of Indian markets relative to emerging market peers has narrowed the valuation gap, according to some fund managers who also expect domestic measures, such as tax cuts, to help improve earnings performance across consumer-oriented sectors.

"The current environment presents a potentially attractive entry point considering the pullback that started late last year has helped to deflate some of the frothy valuations – although India still trades near its long-term historical average," said Rita Tahilramani, investment director of Asian equities at Aberdeen Investments.

Despite trading at premium valuations, India still offers compelling opportunities across key sectors from banking and infrastructure to domestic consumption, she said.

Portfolio managers are also looking at plans to fast-track economic reforms, including a tax revamp, to revive spending.

Prime Minister Narendra Modi's government will put to vote a proposal to reform its goods and services tax (GST) this week, which could help lift consumption of items from biscuits to air conditioners.

"Over the next six to 12 months, stronger consumption recovery could trigger a virtuous cycle of private capex and credit expansion," said Hari Shyamsunder, senior institutional portfolio manager of Indian emerging markets equity at Franklin Templeton.

(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; writing by Ira Dugal; Editing by Sam Holmes)

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Aug 21 (Reuters) - Hindustan Unilever HLL.NS named Niranjan Gupta as its chief financial officer on Thursday, succeeding Ritesh Tiwari.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Krishna Chandra Eluri)

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Adds details of planned tax changes paragraphs 1-3, context

By Nikunj Ohri and Shilpa Jamkhandikar

NEW DELHI, Aug 15 (Reuters) - India's government will slash the consumption tax it charges consumers and businesses by October, a top official said on Friday, hours after Prime Minister Narendra Modi announced sweeping tax reforms to boost the economy in the face of a trade conflict with Washington.

The federal government will propose a two-rate structure of 5% and 18%, doing away with the 12% and 28% tax that was imposed on some items, said the government official, who declined to be named as the plans are still private.

The plan is to bring "99%" of all the items that are in 12% category to 5%, the official said. That tax slab includes butter, fruit juices, and dry fruits, and any cuts to the basket could benefit the likes of Nestle NESN.S to Hindustan Unilever HLL.NS to Procter & Gamble PG.N.

The tax cut plan comes amid growing tensions between New Delhi and Washington on steep U.S. tariffs on Indian goods. Modi on Friday made a public appeal to promote domestic products, and his supporters have been calling for boycott of American products.

Addressing the nation on its 79th independence day, Modi earlier said that the goods and services tax would be reformed and taxes lowered by Diwali, the Hindu festival of lights, set to be celebrated in October this year.

"This Diwali, I am going to make it a double Diwali for you. Over the past eight years, we have undertaken a major reform in goods and services tax. We are bringing next-generation GST reforms that will reduce the tax burden across the country," Modi said.

The final decision will be taken by the GST (goods and services taxes) Council, which is chaired by the finance minister and has all the state's finance ministers as members, the official said. The council is set to meet by October.

Citi estimates that about 20% of items - including packaged food and beverages, apparel and hotel accommodation - fall under the 12% GST slab, accounting for 5-10% of consumption and 5-6% of GST revenue.

If most of these are moved to the 5% slab and some to the 18% slab, it could lead to a revenue loss of around 500 billion rupees, or 0.15% of GDP, potentially taking the total policy stimulus for households in the current 2025-26 financial year to 0.6%-0.7% of GDP, the brokerage said.

(Reporting by Shilpa Jamkhandikar, YP Rajesh, Nikunj Ohri and Chandini Monnappa; Editing by Aditya Kalra, Raju Gopalakrishnan and Christina Fincher)

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Updates with more details, background throughout

Aug 1 (Reuters) - India's Hindustan Unilever (HUL) HLL.NS extended gains on Friday to climb as much as 8%, hitting a nine-month high, after it reported a higher first-quarter profit, with growth in revenue and sales volume pointing to a gradual earnings recovery.

HUL, which is home to brands such as Dove soap and Surf Excel detergent, has been under pressure from dull urban consumption trends for several quarters.

However, analysts see HUL's results as reflective of a gradually easing environment, with its stock receiving two ratings upgrades and at least 17 price-target hikes since Thursday.

Its median target price from 39 analysts now stands at 2,607.50 rupees from 2,500 rupees a month earlier.

The company's first-quarter volume growth was slightly better than estimated, noted brokerage Macquarie. "A gradual recovery of rural (demand) continued, while urban showed signs of a pickup."

HUL was the top percentage gainer on the benchmark Nifty 50 index .NSEI, flattish on the day, and among the top percentage boosts on the fast-moving consumer goods sub-index .NIFTYFMCG, which ticked 1.5% higher.

It closed 3.44% higher on Thursday after it announced its results, and was last trading 3% higher on Friday.

Brokerage HSBC said it liked HUL's "volume-led growth strategy" amid intensifying competition.

"Improving revenue growth to support outperformance," said JP Morgan.

HUL's shares have gained 11% so far this year, compared to a 4.7% gain in the Nifty 50 and a 0.3% dip in the Nifty FMCG index.

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman )

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Adds background in paragraphs 4 and 9, margin outlook in paragraph 8, shares in paragraph 7

July 31 (Reuters) - Consumer goods maker Hindustan Unilever HLL.NS reported a nearly 8% increase in quarterly profit on Thursday, driven by an ongoing recovery in rural sales and higher demand for its revamped brands including Ponds.

The Indian unit of UK's Unilever ULVR.L, home to the Dove and Surf Excel brands, said its profit rose to 27.32 billion rupees ($311.8 million) for the first quarter ended June 30, from 25.38 billion rupees a year earlier.

Rural areas, which account for just over a third of overall consumer goods sales, have helped offset weak urban demand for the last two years as higher costs of living and slow wage growth weigh on city dwellers.

Hindustan Unilever has also been investing heavily to launch premium variants of its packaged goods, expand into new categories under existing brands — such as a floor cleaner at Vim, known for dishwash — and reach more online consumers.

Revenue climbed 4% to 157.47 billion rupees, with sales volumes growing 3%, led by brands including Ponds, Surf Excel and Vaseline.

"Going forward, I expect this gradual recovery to be sustained," CEO Rohit Jawa said. Priya Nair will take over as new CEO on August 1.

Shares rose 3.6% after the results as lower tax expenses partly helped support profit despite margin pressures.

Consolidated gross margin shrank by 190 basis points year-on-year to 49.5%. Hindustan Unilever said it would improve sequentially, with growth in the first half of fiscal 2026 outpacing the previous half.

The profit rise comes despite elevated prices of raw materials, including palm oil and coffee, factors that have prompted consumer goods makers to hike product prices.

Last week, Nestle India NEST.NS reported a 12% profit drop on higher input costs and manufacturing expansion expenses.

($1 = 87.6300 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema and Nivedita Bhattacharjee)

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July 29 (Reuters) - Procter & Gamble PG.N said on Monday CEO Jon Moeller is stepping away from the top job after four years in the role, and that he would be succeeded by Chief Operating Officer Shailesh Jejurikar.

The reshuffle in the top position comes amid a string of similar announcements from consumer-facing companies globally.

In the United States, companies are removing their CEOs at the fastest pace in two decades, with data showing that at least 41 CEOs have exited S&P 500 companies so far this year, compared with 49 for all of 2024.

Here are some examples of major CEO changes in the past year:

(Reporting by Neil J Kanatt in Bengaluru; Editing by Alan Barona)

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July 11 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• HUL CLARIFIES NEWS ON CFO'S GLOBAL ROLE

• RITESH TIWARI CONTINUES AS EXECUTIVE DIRECTOR AND CFO

Source text: ID:nBSE4fN4YF

Further company coverage: HLL.NS

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July 10 (Reuters) - Hindustan Unilever HLL.NS on Thursday named Priya Nair as its new CEO, replacing Rohit Jawa, who will step down.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Savio D'Souza)

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June 25 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• HINDUSTAN UNILEVER LTD - HUL RECEIVES LETTER FROM UNILEVER REGARDING SHARE PURCHASE AGREEMENT

• HINDUSTAN UNILEVER LTD - KWIL TO BECOME SUBSIDIARY OF TMICC HOLDCO

• HINDUSTAN UNILEVER - MAGNUM ICE CREAM TO ACQUIRE 61.9% OF KWALITY WALL’S FROM UNILEVER GROUP

Source text: ID:nBSE15VxF7

Further company coverage: HLL.NS

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May 8 (Reuters) - India's consumer goods sector reported an 11% growth in value in the March quarter, as rural growth outpaced that in urban areas for the fifth straight quarter, market research firm NielsenIQ said on Thursday.

Rural areas - which account for just over a third of overall consumer goods sales - have become a bright spot for an industry that is struggling with higher living costs and slow wage growth in large cities.

"Rural markets continue to drive growth, whereas urban metros continue to see a shift toward E-commerce," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said.

Although rural consumption growth slowed in the March quarter, with volumes rising 8.4% compared to 9.2% in the previous three months, it still outpaced urban demand, where growth decelerated to 2.6% from 4.2%.

Price increases also contributed to the overall value growth, with the cost of staples such as edible oil rising 5.6% during the quarter, compared with just 0.3% in the same period a year ago.

Low base, rural growth, and easing inflation are helping smaller players, which saw 17.8% growth in value, outpacing the broader FMCG market, the report said.

Indian consumer goods maker Marico MRCO.NS reported fourth-quarter profit above analysts' expectations, boosted by improving rural demand and price increases for its key packaged oil brands—underscoring the strength of non-urban markets.

The company also said it plans to expand its presence in villages across India.

Smaller manufacturers are driving consumption compared to larger players, whose volume growth has halved compared to the December quarter, NielsenIQ said.

Hindustan Unilever HLL.NS and Nestle India NEST.NS reported weaker fourth-quarter profits, with Hindustan Unilever cutting its margin forecast amid high commodity costs and sluggish urban demand.

Going ahead, NielsenIQ said revised tax slabs and a favorable monsoon forecast could further lift consumption in the coming quarters.

(Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema)

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Adds share move in paragraph 7, Hindustan Unilever comment in paragraph 11, analyst comment in paragraph 12, details throughout

By Shivani Tanna and Praveen Paramasivam

April 24 (Reuters) - India's Hindustan Unilever HLL.NS reported fourth-quarter profit on Thursday that narrowly missed estimates, as rising expenses and weak urban demand for packaged food and affordable personal care products squeezed margins, sending shares down.

The Indian unit of UK's Unilever ULVR.L, home to brands such as Pears bath soap and Surf Excel detergent, reported a standalone net profit of 24.93 billion rupees ($291.15 million) for the quarter ended March 31.

Analysts had estimated 24.98 billion rupees, according to data compiled by LSEG.

Surging food prices and slow wage rises have eroded urban consumers' purchasing power, pressuring earnings of top consumer goods makers such as Hindustan Unilever and Nestle India NEST.NS.

Profits at Hindustan Unilever, which gets roughly 60% of its sales from urban India, have fallen in three of the last five quarters.

The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) margin shrunk 30 basis points to 23.1%, as total expenses for the firm shot up close to 3%.

The stock was last trading down 3.9% at 2,330.4 rupees, nearly wiping out its gains this year. On the day, it has lost the most in terms of percentage on the benchmark Nifty 50 .NSEI.

Revenue from its foods business - which accounts for a quarter of overall revenue - edged lower, with the company citing "continued category" pressure in its nutrition drinks business, which houses its Horlicks and Boost brands.

The skin care and makeup segment posted a low-single digit sales decline as well, dragged by soft demand for affordable products.

However, growth in its other segments led to a 2% increase in total revenue to 150 billion rupees.

Hindustan Unilever projected a gradual sales volume-led growth in fiscal 2026, with performance in the first half likely to improve over the previous six months on new launches and improving demand.

However, Axis Securities analyst Preeyam Tolia said its shift in focus towards volume-led growth could add further pressure on margins in the coming quarters.

($1 = 85.6250 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivani Tanna in Bengaluru; Editing by Janane Venkatraman)

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** UBS upgrades Colgate Palmolive (India) COLG.NS to "buy" from "sell", raises PT by 38% to 3,100 rupees

** Brokerage upgrades Hindustan Unilever HLL.NS, ITC ITC.NS and Trent TREN.NS to "buy" from "neutral"

** Says Indian consumer stocks set to rebound on the back of 13% estimated earnings growth in FY2026, lower valuations, and defensive play in a turbulent market

** COLG rises 3.3% on the day, while HLL adds 1.1%

** UBS downgrades Asian Paints ASPN.NS and Jubilant Foodworks JUBI.NS to "sell" from "buy", Dabur India DABU.NS to "sell" from "neutral"

** Says even though the decorative paints industry is lucrative, it faces competition from new entrant Grasim Industries GRAS.NS, which may weigh on margins

** On JUBI, UBS says stock price factors in same-store sales growth turning positive

(Reporting by Vivek Kumar M)

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April 21 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• HINDUSTAN UNILEVER LTD - COMPLETES ACQUISITION OF UPRISING SCIENCE

Source text: ID:nBSEbXJZYp

Further company coverage: HLL.NS

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** Consumer stocks Hindustan Unilever HLL.NS and Nestle India NEST.NS drop 1.5% and 2.5%, respectively, after BofA downgrade

** BofA says, "Growth recovery for HLL seems to be far slower than we had imagined earlier"; downgrades to "neutral" from "buy"

** Cuts HLL's Q4 FY25 earnings estimate by 2% and FY26-FY27 earnings estimate by 4%-5%, citing macro and inflationary volatility

** Also downgrades NEST to "underperform" from "neutral", citing subdued growth, soft demand and cost pressures

** Says general softness in consumption continues with urban India slowdown, while rural recovery has been gradual

** YTD, HLL loses 4%, while NEST gains 3% vs a 6.3% drop in consumer index .NIFTYFMCG

(Reporting by Bharath Rajeswaran in Bengaluru)

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March 17 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• INDIA COMPETITION REGULATOR: APPROVES ACQUISITION OF UPRISING SCIENCE BY HINDUSTAN UNILEVER

Source text: [ID:]

Further company coverage: HLL.NS

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By Aditya Kalra

NEW DELHI, March 6 (Reuters) - Indian consumer products distributors have filed an antitrust case against big fast-delivery businesses of Zomato, Swiggy and Zepto, calling for an investigation into alleged deep discounting practices, legal papers show.

India's e-commerce sector has faced intense scrutiny over how products are priced online. An antitrust investigation last year found Amazon and Walmart's Flipkart favour select sellers and resorted to "predatory pricing", which hurts smaller retailers. The companies have denied the allegations.

Quick commerce, in which companies deliver consumer products within 10 minutes from neighbourhood warehouses, is popular with customers but has upset smaller retailers as shoppers use apps to order everything from milk to pulses. Bernstein estimates India's quick commerce sector will reach $35 billion in 2030, from $200 million in 2021.

The All India Consumer Products Distributors Federation (AICPDF), in a case filing with the Competition Commission of India, has asked for an investigation into many business practices of Zomato's ZOMT.NS Blinkit, Swiggy's SWIG.NS instamart, and Zepto, including how discounts are doled out.

"An alarming trend of predatory pricing and deep discounting practices by Q-commerce platforms resulted in unfair pricing models," said the group's filing, which is not public but was reviewed by Reuters.

Zomato and Swiggy did not respond to Reuters' requests for comment. Zepto declined comment. The CCI did not respond.

The filing could increase headaches for Zomato and Swiggy. A separate CCI investigation last year found their food delivery businesses breached competition laws. The case is ongoing.

Zepto is preparing for an IPO after raising funds at a valuation of $5 billion last year.

The watchdog will review the case filing and can order its investigation unit to look at the matter closely. This can take several months and may require companies to explain their businesses. It can dismiss the case if it finds no merit in it.

AICPDF has 400,000 distributors as members, who supply products of brands such as Nestle NEST.NS, Unilever ULVR.L and Tata to 13 million retail shops across India.

A recent Datum Intelligence survey of 3,000 Indian quick commerce shoppers showed 36% had reduced shopping at supermarkets and 46% cut back purchases from small independent stores.

In its filing, AICPDF said local brick-and-mortar stores "cannot match" the quick commerce giants' discounts. It compared online and offline pricing of 25 products, including of Nestle and Hindustan Unilever HLL.NS.

A variant of a Nescafe coffee jar which a small independent Indian retailer receives from companies for about 622 rupees ($7.14) is offered for 514 rupees on Zepto, 577 rupees on Swiggy Instamart and 625 rupees on Blinkit, according to the filing.

Asia's richest man, Mukesh Ambani, is mimicking the strategy to offer fast deliveries, as are Amazon and Flipkart in limited areas.

Datum estimates Blinkit has a 40% market share in India's quick commerce market, with 1,007 small warehouses, while Zepto has more than 900 stores and a 29% market share. Swiggy's Instamart service holds a 26% share.

(Reporting by Aditya Kalra, Editing by Timothy Heritage)

((Email: [email protected]; X: @adityakalra;))

Feb 6 (Reuters) - Solid demand in rural areas, as well as higher prices of staples including edible oil and wheat flour, helped the consumer goods sector report a 10.6% sales growth in the December quarter, market researcher NielsenIQ said on Thursday.

India's rural areas - which account for just over a third of consumer goods sales - have proven a bright spot for an industry struggling with an inflation-led spending slowdown in large cities.

"Rural markets (continued) to lead the charge, outpacing urban consumption (during the December quarter)," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said in a statement.

Sales volume jumped 9.9% in rural areas in the December quarter, up from 5.7% in the previous quarter - double the 5% increase in urban centers, NielsenIQ said. But it added urban pockets also improved from the September quarter's 2.6% growth.

Rural areas have outperformed urban locations for the last four quarters, benefiting from income support schemes rolled out by several Indian states, while slowing salary increases in cities have squeezed consumer spending.

In the October-December quarter, overall volume rose by 7.1% - the highest in over a year - driven by demand for laundry products and edible oil, even as prices rose by 3.3%, according to NielsenIQ.

Dabur India DABU.NS and Hindustan Unilever HLL.NS reported a higher December-quarter profit on recovering rural demand.

However, large consumer goods makers, with topline exceeding 50 billion rupees ($571.2 million) are also facing stiff competition from smaller rivals, whose sales increased roughly twice as fast during the festive quarter, NielsenIQ said.

Consumer goods makers have also raised product prices to counter price increases in commodities such as copra and cocoa, with cooking oil maker Adani Wilmar ADAW.NS and Hindustan Unilever warning of further hikes.

Indians also preferred smaller product packs during the quarter, NielsenIQ said, echoing comments from Hindustan Unilever.

($1 = 87.5400 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)

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By Praveen Paramasivam

Feb 1 (Reuters) - India's plans to cut personal income tax rates will put more disposable income in the hands of the people and eventually boost consumption in the world's fifth-largest economy, executives from automobile and consumer firms said on Saturday.

This comes after the government said that people earning up to 1.28 million rupees ($14,800) per year will not have to pay any taxes, raising its threshold from 700,000 rupees. It also cut tax rates for people earning above the new threshold.

Consumption in the Indian economy has been under stress in the last few quarters as shoppers tightened their purse strings amid stubborn inflation and modest wage growth.

"Tax reforms benefiting the middle class will increase disposable income, further fuelling demand across essential and aspirational categories," Aasif Malbari, CFO of Godrej Consumer Products GOCP.NS, said.

The government's announcement sent the shares of consumer goods .NIFTYFMCG, autos .NIFTYAUTO and realty <.NIFTYREAL> firms up by 1.7%-3.6% on Saturday.

"The tax cut is going to be a helpful factor in accelerating demand for various kinds of consumer products," RC Bhargava, chairman of Maruti Suzuki India MRTI.NS, told TV channel ET Now.

(Reporting by Praveen Paramasivam; Editing by Dhanya Skariachan and Sonia Cheema)

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Jan 31 (Reuters) - Nestle India NEST.NS reported a quarterly profit below market expectations on Friday, as a slowdown in consumer spending in major cities and higher product prices dampened its sales.

The Indian entity of the Swiss food giant Nestle NESN.S reported a profit of 6.96 billion rupees ($80.34 million) for the third quarter ended Dec. 31, compared with 6.56 billion rupees a year earlier.

Analysts, on average, had expected a profit of 7.31 billion rupees, according to data from LSEG.

($1 = 86.6370 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Sherry Jacob-Phillips)

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Jan 23 (Reuters) - Shares of Hindustan Unilever HLL.NS fell as much as 3.5% on Thursday to their lowest level since May after the Indian consumer goods maker forecast near-term margin pressure.

The stock was the top loser on the benchmark Nifty 50 index .NSEI, which was up 0.23%.

The 'Clinic Plus' shampoo maker on Wednesday forecast near-term margins at the lower end of its previous forecast range of 23%-24% as costs of key commodities such as palm oil and tea continue to rise and urban demand hit a two-year low in November.

The company posted a marginal rise in its third-quarter profit and a 2% increase in revenue.

Hindustan Unilever appeared to be more cautious about the demand outlook than at the previous analyst meet, Jefferies analyst Vivek Maheshwari said, calling it "a worry".

For the consumer goods industry, growth in urban pockets - which also accounts for two-thirds of the company's revenue - has lagged that in rural areas over the past year and has been an area of concern for most firms.

The FMCG index .NIFTYFMCG was trading 0.2% lower on the day, with rival Nestle India NEST.NS, which is yet to report its quarterly results, falling about 1%.

Meanwhile, Citi analyst Vismaya Agarwal said the modest rise in revenue was "completely pricing led", referring to the higher commodity costs.

With inflation continuing to remain sticky and moderate price hikes in effect, consumers shifted to smaller product sizes, Hindustan Unilever said after reporting flat quarterly volumes.

Its shares, which are rated "buy", on average, extended their 12-month loss to nearly 7% on Thursday.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Sonia Cheema)

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Adds analyst comment in paragraph 5, details on deal in paragraph 4, sales details in paragraph 12

By Praveen Paramasivam and Ananta Agarwal

Jan 22 (Reuters) - Consumer goods maker Hindustan Unilever HLL.NS said on Wednesday it would buy the 'Minimalist' skin care brand and projected near-term margins at the lower end of its forecast range as it grapples with slowing urban demand.

This is Hindustan Unilever's latest investment in the beauty space as the conglomerate bets on Indian consumers splurging on skin and hair care.

The maker of soap brands 'Dove' and 'Pears' said it will buy a 90.5% stake in Uprising Science, which operates under the brand 'Minimalist', valuing the latter at 29.55 billion rupees ($342.3 million), including debt.

The deal for Uprising Science, which reported a revenue of 3.47 billion rupees in the 2024 financial year, will close in the April-June quarter, according to Hindustan Unilever, which is the Indian unit of UK's Unilever ULVR.L.

The acquisition will contribute less than 1% to the firm's total revenue, said Amit Purohit, equity analyst at Elara Capital.

"It is not significant enough to move the needle but it's a step in the right direction."

Separately, the 'Clinic Plus' shampoo maker forecast near-term margins at the lower end of its previous forecast range of 23%-24% as subdued urban demand outweighed a revival in rural demand and as commodity costs rose.

Hindustan Unilever's third-quarter core profit margin shrank 20 basis points to 23.5% year on year.

"(Consumer goods) demand trends remained subdued with continued moderation in urban growth while rural sustained its gradual recovery," said CEO Rohit Jawa.

Hindustan Unilever gets roughly 60% of its overall sales from urban markets.

It posted a 0.2% increase in its profit before exceptional items and tax to 34.69 billion rupees for third quarter ended Dec. 31.

Revenue rose 2% to 151.95 billion rupees on demand recovery in rural India and price hikes. But sales volume was flat due to declines in the food and beverage and personal care segments.

($1 = 86.3180 Indian rupees)

(Reporting by Ananta Agarwal and Manvi Pant in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema)

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Jan 10 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• HINDUSTAN UNILEVER LTD - INCORPORATES WHOLLY OWNED SUBSIDIARY KWALITY WALL'S (INDIA) LIMITED

Source text: ID:nNSE8r62QC

Further company coverage: HLL.NS

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** Shares of Hindustan Unilever HLL.NS rise 2.3% to 2,456 rupees, on track for best day in over a month

** Stock top pct gainer on Nifty 50 Index .NSEI, which is down 0.46%

** The consumer goods major is in talks to acquire skincare brand Minimalist at a valuation of 30 bln rupees ($349.4 mln), Business Standard had reported

** With 100% own capacity and differentiated approach to address skin and hair care needs, Minimalist targets revenue of 10 bln rupees in coming 3 years - Emkay Research

** If deal materialises, HLL will have opportunity to enhance its play in beauty care and gain higher consumer base - brokerage

** Emkay reiterates "buy" rating and TP of 2,675 rupees on HLL

** HLL rated "buy" on avg, same as rivals Dabur India DABU.NS and Marico MRCO.NS; Nestle India NEST.NS and Britannia Industries BRIT.NS rated "hold"- LSEG data

** Stock fell 12.3% in 2024 vs a 0.33% fall in Nifty FMCG Index .NIFTYFMCG

($1 = 85.8690 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Dec 31 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• JAGATJIT INDUSTRIES LTD - TERMINATES AGREEMENT WITH HINDUSTAN UNILEVER

Source text: ID:nBSE8HrDR4

Further company coverage: HLL.NS

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Corrects media packaging code; no changes to text

By Sethuraman N R

Dec 9 (Reuters) - Shares of India's Godrej Consumer Products GOCP.NS slumped 9% on Monday, set for their worst day since March 2020 and dragging down its peers in the fast moving consumer goods sector after the firm warned of stress on demand and profit margins in the third quarter.

The stock fell to its lowest since Jan. 18, its biggest one-day percentage drop since the onset of the pandemic. The decline dragged down the consumer goods index .NIFTYFMCG by 2.2%. The benchmark Nifty 50 .NSEI was down about 0.1% on the day.

Including Monday's decline, the consumer index has shed about 14% so far this quarter and is set for its worst ever quarterly performance as Indian consumer companies continue to feel the pinch of still-high inflation and a consequent fall in demand.

Godrej Consumer said on Friday that two-thirds of its India business is under demand and margin stress due to higher raw material costs and unfavourable weather.

The company's update will "likely add to investor concerns" on the consumer industry as a whole, which has been facing a slowdown, Jefferies said in a note.

To partly offset higher costs in palm oil, a key ingredient for Godrej's soap business that contributes one-third to its standalone revenue, the company undertook measures including price increases during the quarter.

"Such pricing actions typically have minimal impact on category consumption but do result in reduced inventory across wholesale and household pantry," Godrej said.

The warning by Godrej will also impact peers, Jefferies said, adding that recent analyst meetings with Hindustan Unilever HLL.NS and Colgate-Palmolive India COLG.NS have not provided confidence about a recovery in consumption.

(Reporting by Sethuraman NR; Editing by Sonia Cheema)

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