HINDUNILVR

By Praveen Paramasivam and Chandini Monnappa

CHENNAI/BENGALURU, June 8 (Reuters) - From smaller packs on shelves to higher prices at checkout, Indian companies are scrambling to protect their margins as surging oil, freight and insurance costs - and strained household budgets - pile on pressure.

The U.S.-Israeli war on Iran has disrupted trade routes and lifted input costs globally, hitting import-reliant economies like India harder, where a weaker rupee is adding to inflation and complicating pricing decisions as demand remains uneven.

"We are among the world's most vulnerable countries," economist Jayati Ghosh said, warning higher oil and fertiliser costs, weaker Gulf demand, softer remittances and potential capital outflows could stoke inflation and slow growth.

Consumer goods makers Hindustan Unilever HLL.NS, Godrej Consumer Products GOCP.NS and Dabur India DABU.NS have already rolled out low- to mid-single-digit price hikes across categories, with Britannia BRIT.NS preparing similar moves.

Pricing power remains weak in mass segments, with companies holding the line on 10- to 20-rupee (11- to 21-cent) packs and shrinking product sizes instead of raising prices outright.

"We are reducing grammage because we can't breach those price points," said Mohit Malhotra, global CEO at Dabur.

Automakers Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Tata Motors Passenger Vehicles TAMO.NS and Hyundai Motor India HYUN.NS have also hiked prices.

"We were left with no choice," said Partho Banerjee, Maruti's senior executive officer for marketing and sales, adding that raising prices was not good for customers, especially first-time buyers.

Airlines IndiGo INGL.NS and Air India are trimming capacity, especially on fuel-heavy international routes, and increasing fares to offset higher aviation fuel costs.

Consumers are feeling the squeeze.

"I have no family to feed, no school fees, and no monthly payments on a car. I'm still watching my spending as prices are up for almost everything, from travel to packaged food," said Aditi Anjana, a Mumbai-based communications professional who is in her 30s.

BELT-TIGHTENING MODE

With limited room to pass on costs, companies are turning inward and cutting costs to cushion margins.

Hindustan Unilever HLL.NS has cut advertising spend, while others are trimming non-essential travel and marketing costs.

"The scope for further cost-cutting is gradually narrowing," Axis Direct analyst Uttam Kumar Srimal said, adding prolonged commodity and fuel inflation could force sharper price hikes or margin hits.

Sectors with high global exposure, including aviation, oil and gas, chemicals, logistics and capital goods, may remain under margin pressure, said Shweta Rajani, associate director at Anand Rathi Wealth.

RESETTING SUPPLY CHAINS

Firms are also reworking supply chains to manage disruptions. Companies with Middle East exposure are rerouting shipments, diversifying sourcing, and shifting production.

Dabur, an Indian rival of Colgate-Palmolive, is using alternative routes via Egypt and Turkey, while packaged goods maker Britannia is bringing some production back home.

Some firms are also front-loading purchases and closely tracking demand to avoid overstocking, underscoring tighter working capital discipline.

Arvind Fashions ARVF.NS has advanced inventory buys to lock in costs and is relying more on local suppliers, while Tata Group retailer Trent TREN.NS is tweaking raw materials, packaging, and product development.

"My priority is not to take prices up," said Umashan Naidoo, head of customer and beauty at Trent, which offers Gen-Z-focused affordable trendwear through its brand ​Zudio.

($1 = 94.9450 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Chandini Monnappa in Bengaluru; Additional reporting by Surbhi Misra; Editing by Dhanya Skariachan and Himani Sarkar)

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Adds Wendy's

May 20 (Reuters) - Fast-food chain Wendy's WEN.O on Wednesday named industry veteran Robert Wright as president and chief executive officer, the latest global consumer goods company to bet on a change at the top amid tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global retailers and consumer goods companies in 2025 and 2026:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru, Vera Dvorakova in Gdansk; Editing by Sriraj Kalluvila and Maju Samuel)

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Rewrites with comments from earnings call

May 7 (Reuters) - India's Dabur DABU.NS signaled a second round of price hikes after implementing a 4% increase across parts of its portfolio, as war in the Middle East drives up manufacturing and transportation costs.

A surge in energy prices caused by the war is rippling through global supply chains for common consumer goods, making materials like chemicals and plastics more expensive.

"We want to increase the margins from last year to the current year and mitigate all the inflation through price increases," Dabur said in a call with analysts after reporting results on Thursday.

Peers including Dove soapmaker Hindustan Unilever HLL.NS and cooking oil manufacturer AWL Agri Business AWLA.NS are also the tightening costs and raising prices to account for rising raw material costs.

Dabur is also shrinking the size of products priced at 10-20 rupees — a key price band for budget-conscious consumers — to manage inflation, after increasing pack sizes when India cut consumption taxes last year.

Along with the raw material inflation due to the regional conflict, the honey-to-toothpaste maker also faces sales pressure as the Middle East contributes 30%-35% of its international business.

Middle East and North Africa revenue climbed 1%, while most other regions posted double-digit growth. Dabur attributed the disparity partly to an exodus of expatriates from the Gulf, which in recent years has become a focus area for Indian consumer goods makers.

Separately, Dabur beat quarterly profit estimates, helped by steady demand after consumption tax cuts in India.

Consolidated profit jumped 15% to 3.69 billion rupees ($39.15 million), while revenue rose 7% to 30.38 billion rupees.

($1 = 94.2500 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru and Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee and Ronojoy Mazumdar)

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Recasts paragraph 1; adds revenue forecast in paragraph 3, company comment in paragraph 10; updates shares in paragraph 5

By Surbhi Misra and Praveen Paramasivam

May 5 (Reuters) - India's Marico MRCO.NS forecast annual revenue above estimates on Tuesday, betting on steady volume growth and expansion in its premium segments, even as it warned of price hikes and shrinking margins after Middle East tensions drove up input costs.

The consumer goods major, which is known for its Parachute and Saffola brands of oils, has made a strong push into the premium tier in the foods and personal care segments, adding brands such as Plix, True Elements, Beardo and Just Herbs over the last decade. The shift away from oils is a move that peer AWL Agri Business AWLA.NS is also pursuing.

Marico forecast consolidated revenue crossing 150 billion rupees ($1.57 billion) for the ongoing fiscal year ending March 2027, above estimates of 146.94 billion rupees, according to data compiled by LSEG.

The segment accounted for around 23% of its overall revenue in fiscal 2026, the company said, expecting the segment to grow to around 33% by fiscal 2030.

Shares closed 2.9% higher, reversing course from losses of 2.7%, after the firm said it aspired to deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in the high-teen percentage range in fiscal 2027, subject to "stable" macro conditions.

MARGIN PRESSURES

Ongoing geopolitical tensions have pushed Brent crude prices to above $110, eating into the company's EBITDA margin, which shrank 114 basis points to 15.6% for the fourth quarter ended March 31.

Marico, echoing consumer goods peers - including bellwether Hindustan Unilever HLL.NS - said it would cut costs and raise prices to protect its margins.

"Vegetable oils and other crude‑linked inputs continue to exhibit an inflationary bias, following the ongoing geopolitical developments in the Middle East," the company said, adding that a decline in prices of copra, a key ingredient for coconut oil, will help alleviate potential crude-related pressures.

For the fourth quarter, revenue climbed 22% to 33.33 billion rupees, while profit rose 14% to 3.91 billion rupees, beating estimates of 3.85 billion rupees.

($1 = 95.2800 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)

(([email protected] | X: https://twitter.com/SurbhiMisra_))

** Shares of India's Hindustan Unilever HLL.NS jump as much as 5.1% to 2,365.80 rupees; last up 3.36%

** Co top gainer on Nifty FMCG .NIFTYFMCG index, which is up ~0.65%

** Shares were trading when co reported results on Thursday and closed 2.7% lower

** Consumer staples major reported 18% y/y rise in Q4 profit, maintained its mid-term forecast for core earnings margin at 22.5%–23.5%

** Nomura lifts PT by 50 rupees to 2,650 rupees; forecasts EPS CAGR of ~9.5% over FY26–FY28

** BOB Capital Markets upgraded HLL to "buy" and raises PT to 2,598 rupees, citing a positive medium-term growth outlook

** Phillip Capital expects near-double-digit FY27 sales growth, driven by price hikes and volume recovery

** YTD, stock up ~0.9% vs Nifty FMCG's decline of ~7.1%

($1 = 94.9450 Indian rupees)

(Reporting by Bipasha Dey in Bengaluru)

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Adds executive comment from earnings call in paragraph 3, analyst comment in paragraph 5; updates shares in paragraph 6

By Praveen Paramasivam

April 30 (Reuters) - Hindustan Unilever Ltd HLL.NS said on Thursday it is relying on cost cuts and price increases to counter commodity volatility stemming from the Middle East war, after reporting an 18% jump in quarterly profit.

Rising raw material costs, driven by a war-led spike in crude prices, are expected to squeeze margins for consumer goods makers, with India particularly vulnerable as the world's third-largest oil consumer depends heavily on Middle East energy imports.

Material cost inflation is roughly at 8% to 10%, while price hikes that Hindustan Unilever has implemented so far are between 2% and 5%, finance chief Niranjan Gupta said on an earnings call.

The company is reducing pack sizes for certain products and raising prices for some others, while stepping up cost cuts, including in advertising, to offset what it called "short-term impacts from Middle East situation."

"Hindustan Unilever and peers face a margin squeeze: input costs are rising quickly, but consumer resistance, competition, and the need to protect volumes prevent full and immediate pass-through," consumer goods consultant Akshay D'Souza said.

Shares fell 4% post-results, making the stock the third-biggest loser on the benchmark Nifty 50 .NSEI in a broadly weaker market.

The pressures reflect a broader industry trend, with peers such as bottled water maker Bisleri and Fortune cooking oil maker AWL Agri Business AWLA.NS also leaning on ​price hikes to shield margins.

The Dove soapmaker, however, maintained its mid-term forecast for core earnings margin at 22.5%-23.5%.

Also on Thursday, parent Unilever ULVR.L said it would raise prices as the Iran war drives up costs, even as it reported quarterly underlying sales growth ahead of analysts' forecasts.

For the March quarter, Hindustan Unilever's profit rose to 29.30 billion rupees ($307.57 million), helped by consumption tax cuts, while revenue climbed 7% to 155.99 billion rupees.

Margins on earnings before interest, tax, depreciation, and amortisation (EBITDA) improved 10 basis points year-on-year to 23.9%.

Hindustan Unilever expects its fiscal 2027 performance to be better, as it sharpens its focus on premium products and doubles down on "fewer, bigger bets" including its Horlicks protein drink, it said.

($1 = 95.2638 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Sonia Cheema)

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By Praveen Paramasivam

April 29 (Reuters) - Indian consumer goods maker AWL Agri Business AWLA.NS is grappling with a roughly 20% surge in some crude-linked input costs as the Middle East conflict drives up prices for fuel, chemicals and packaging materials, its CEO said.

The pressures reflect a broader industry trend, with peers such as bottled water maker Bisleri and Dove soapmaker Hindustan Unilever HLL.NS raising prices to counter higher conflict-linked input costs.

"Costs have gone up for us in terms of chemicals, packing material and coal, so that is something which remains a cause of concern even today," Shrikant Kanhere, AWL's managing director and CEO, told Reuters in an interview.

AWL, home of brands including Fortune cooking oil and Kohinoor rice, is adjusting prices in line with market movements, absorbing part of the increase while passing the rest on to consumers, Kanhere said, without giving details.

Input costs for some crude-linked materials have risen by about 20% since the conflict began, translating into a cost impact of roughly 25 to 50 basis points, he added.

Global oil prices have surged amid fears of supply disruptions. Brent crude has climbed from the low $70s a barrel before the Middle East conflict to above $110, market data show.

The company, which is cutting packaging and fuel use at its plants to limit the hit to profits, expects per-ton margins to be broadly stable in fiscal 2027.

AWL is also expanding distribution and investing heavily in online channels and large-format grocers, which together posted nearly 50% growth last year, in a push to scale up volumes.

Kanhere forecast sales volume growth of 8% to 9% in fiscal 2027, nearly double last year's pace, with edible oils growing at a mid-single-digit rate and foods posting double-digit growth.

(Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya Skariachan)

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Adds Best Buy in paragraph 1 and table

April 22 (Reuters) - U.S. electronics retailer Best Buy BBY.N named Jason Bonfig as its new CEO, the latest global consumer goods company to bet on a change at the top amid tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global retailers and consumer goods companies in 2025 and 2026:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru, Vera Dvorakova in Gdansk; Editing by Sriraj Kalluvila)

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** ICICI Securities raises PT on Hindustan Unilever HLL.NS to 2,800 rupees from 2,700 rupees, maintains "buy"

** Says consumer goods major is better positioned to navigate rising input cost pressures, aided by strong pricing power and brand strength

** Expects shift from volume-led growth to pricing-led growth; adds near-term margins may soften due to lag in price hikes

** Adds, inflationary cycles could aid market share gains as smaller players face cost pressures

** Expects revenue, PAT to rise 10%, EBITDA to advance 11% in FY25–28

** HLL up 1.72% to 2,269 rupees vs Nifty FMCG .NIFTYFMCG up 0.5%; YTD, stock down nearly 3% vs sub-index's near 7% fall

(Reporting by Devika Nair in Bengaluru)

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Adds Conagra

April 13 (Reuters) - Conagra CAG.N has named John Brase as its new CEO, becoming the latest consumer goods company to make a change at the top as the sector navigates tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global retailers and consumer goods companies in 2025 and 2026:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru, Vera Dvorakova in Gdansk; Editing by Anil D'Silva, Alan Barona, Arun Koyyur and Shreya Biswas)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, April 10 (Reuters Breakingviews) - As India’s busiest beer season approaches, Carlsberg CARLb.CO is readying its taps. The Tuborg-maker is preparing a $700 million listing of its India arm in a market that offers room for growth at a time when the brewer is grappling with high debt and sluggish beer sales in the West. A premium valuation, possible in a country where wealthy drinkers are trading up, could help the brewer pay down its chunky deal-making tab.

Carlsberg has spent 20 years building its India business. The $18 billion brewer reckons its high-end Tuborg brand is the “most-consumed” in the world’s fourth-largest economy. It has also seen its share of the 639 billion rupees ($6.86 billion) beer market increase to 22% from just about 5% in 2011. But debt has been hanging over the brewer since its $4 billion acquisition of soft drinks maker Britvic in 2024. Since that deal, its net debt-to-EBITDA ratio roughly doubled to 3.25 in the year ended December 2025, well above its 2.5 target.

An India listing gives Carlsberg a shot at a richer valuation that can help bring down this debt. Carlsberg trades at about 13 times its expected earnings this year, trailing rival Anheuser-Busch InBev’s ABI.BR over 17 times. Heineken HEIN.AS-owned United Breweries UBBW.NS in India, by comparison, trades at 80 times. That valuation gap is not unique: Nestlé India NEST.NS at 73, Hindustan Unilever HLL.NS at 47 and LG Electronics India LGEL.NS at 54 trade at multiples higher than their parent companies.

Carlsberg can also use the proceeds from the listing to help fund its expansion plans in India. The growing beer market looks compelling as booze loses pull in ageing, health-conscious populations in Europe and North America. India's beer consumption is still very low - just 2 litres per person annually, according to market research firm IMARC Group. That's far below consumption levels in the U.S. and Europe, suggesting significant room for growth. Meanwhile, the market is expected to grow over 5% annually, compared to Europe’s 2% and North America’s 4%, amid a surge of demand from affluent Indians.

Still, India won’t be an easy win. The sector faces complex state regulations, high levies, and increasing competition from local beer makers and giants like United Breweries and AB InBev. United Breweries, India’s listed beer market leader, is also pushing further into the premium segment in a bid to restore its net profit margin which has halved since 2019. But a local listing will hand Carlsberg's CEO Jacob Aarup-Andersen a currency to strike deals in the country. And with a lighter debt load, he has a shot at growing beyond India too.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Carlsberg CEO Jacob Aarup-Andersen on February 4 said that the company was exploring a potential listing of its India business.

Carlsberg has appointed three banks - Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co and Citigroup - for the potential listing of its India arm, Bloomberg reported on February 23, citing people familiar with the matter. This offering could raise as much as $700 million.

A draft red herring prospectus could be filed as early as May.

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Adds Dollar General

March 24 (Reuters) - Dollar General DG.N has named Jerry Fleeman Jr. as its CEO, becoming the latest consumer goods company to make a change at the top as the sector navigates tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global retailers and consumer goods companies in 2025 and 2026:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru, Vera Dvorakova in Gdansk; Editing by Anil D'Silva, Alan Barona, Arun Koyyur and Shreya Biswas)

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March 20 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• HINDUSTAN UNILEVER - CLARIFIES NO DISCUSSIONS REGARDING FOODS PORTFOLIO DIVESTMENT

Source text: ID:nBSE2LQyLW

Further company coverage: HLL.NS

(([email protected];))

March 4 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• COMPLETED SALE OF ENTIRE SHAREHOLDING IN NUTRITIONALAB FOR 3.07 BILLION RUPEES

Source text: ID:nnAZN4SJHFJ

Further company coverage: HLL.NS

(([email protected];;))

Feb 18 (Reuters) - India's Hindustan Unilever HLL.NS said on Wednesday it will invest 20 billion rupees ($220.54 million) over two years to expand manufacturing capacity in its fast-growing premium categories across beauty, wellbeing and home care.

($1 = 90.6870 Indian rupees)

(Reporting by Nishit Navin)

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** Hindustan Unilever HLL.NS posted 15% y/y drop in Q3 earnings on Thursday, pressured by thinner margins

** Shares of consumer goods major fall nearly 2% to 2,358.10 rupees

EARNINGS INFLECTION KEY

** UBS ("buy", TP: 2,950 rupees) says volume growth stood out despite GST disruption, but notes margin pressure; Q4 momentum would be key for potential re-rating trigger

** J.P. Morgan ("overweight", TP: 2,700 rupees) says pivot to volume-led growth and organisational simplification supports FY27 acceleration; near-term stock consolidation likely until sustained volume improvement becomes visible

** HSBC ("hold", TP: 2,650 rupees) cuts FY27 EPS on lower growth assumptions; adds that clearer guidance and stronger earnings acceleration are needed for re-rating

** Morgan Stanley ("equal-weight", TP: 2,330 rupees) points to stable margins and gradual consumption recovery, but notes management stopped short of committing to double-digit earnings growth timelines

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

** India's Hindustan Unilever HLL.NS rises 0.4% to 2,471.10 rupees

** Consumer staples major report set to report third-quarter results on the day

** In Q2, co's sales volumes were hit by temporary disruption after goods and services tax cuts, as distributors ran down inventories ahead of implementation

** Investors to watch if demand normalised in the December quarter after company said disruption would ease from November onwards

** FMCG rivals including Dabur DABU.NS, Godrej Consumer GOCP.NS and Marico MRCO.NS flagged improving demand trends in third quarter results

** HLL rated "buy" on average by 37 analysts, median PT at 2780 rupees - data compiled by LSEG

** HLL gained 1.2% in 2025, stock up 6.35% so far in 2026

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

Jan 19 (Reuters) - Hindustan Unilever Ltd HLL.NS:

• LIC RAISES STAKE IN HINDUSTAN UNILEVER TO 6.740% FROM 4.731% - EXCHANGE FILING

Source text: ID:nBSE4MCpS9

Further company coverage: HLL.NS

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Adds Heineken

Jan 12 (Reuters) - Dutch brewer Heineken HEIN.AS announced the departure of its CEO Dolf van den Brink, the latest consumer goods company to make a change at the top as the sector navigates tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global consumer goods companies in 2025 and 2026:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru, Vera Dvorakova in Gdansk; Editing by Anil D'Silva, Alan Barona and Arun Koyyur)

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Jan 8 (Reuters) - Indian consumer goods firm Hindustan Unilever HLL.NS said on Thursday it had received an order from a tax authority seeking 15.6 billion rupees ($173.6 million).

The company, Unilever's ULVR.L Indian arm, said it would appeal the order, adding that this would have no material impact on its financials or operations.

($1 = 89.8880 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Shreya Biswas)

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Updates to add Coty CEO change

Dec 22 (Reuters) - U.S. cosmetics maker Coty COTY.N named Procter & Gamble veteran Markus Strobel interim CEO, the latest consumer goods company to change its top boss this year as the sector grapples with tariff pressures and choppy consumer spending.

Here are some of the major CEO changes among global consumer goods companies in 2025:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru; Editing by Anil D'Silva, Alan Barona and Arun Koyyur)

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Adds Kraft Heinz

Dec 16 (Reuters) - Kraft Heinz KHC.O on Tuesday became the latest global consumer goods company to make top-level changes this year, tapping industry veteran and former Kellanova head Steve Cahillane as its new CEO, ahead of a planned split.

Here are some of the major CEO changes among global consumer goods companies in 2025:

(Reporting by Neil J Kanatt, Sanskriti Shekhar and Koyena Das in Bengaluru; Editing by Andrea Ricci, Anil D'Silva and Alan Barona)

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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) - Indian consumer major Hindustan Unilever HLL.NS said on Friday that recent goods and services tax cuts on a broad range of consumer products led to a temporary disruption in sales, as distributors and retailers worked to clear existing inventory at old prices.

(Reporting by Manvi Pant; Editing by Sonia Cheema)

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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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NEW DELHI, Sept 3 (Reuters) - India has decided to cut taxes on hundreds of consumer items ranging from soaps to small cars to spur domestic demand in the face of economic headwinds from U.S. tariffs, two state ministers told reporters on Wednesday.

The new goods and services tax (GST), which will become effective from September 22, will lead to an estimated revenue loss of 477 billion rupees, West Bengal minister Chandrima Bhattacharya said after the GST council meeting.

(Reporting by Nikunj Ohri; Editing by YP Rajesh)

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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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