Companies

HUL slashes prices of select product portfolios

Our Bureau Mumbai | Updated on August 27, 2019 Published on August 27, 2019

HUL products in a shop in New Delhi (file photo)   -  RAVEENDRAN

Move to pass on the benefit of softening input costs

FMCG bellwether Hindustan Unilever (HUL) has cut prices across some of its product portfolios to pass on the benefit of softening input costs.

“HUL does selective and judicious price changes across its portfolio in the normal course of its business. Given that the commodity prices are expected to remain benign for certain time period, we have taken price reductions in range of 4-6 per cent in Lux and Lifebuoy portfolio while it may be higher on certain packs in order to pass on the benefits to the consumers,” said Company Spokesperson.

Last month, during the post-results analysts call, the company management had called out the possibility of reducing prices. “That’s really passing on the right value equation given that the commodity is expected to remain benign for a certain period of time. And it’s only rightful to pass on some of these benefits to the consumers,” Srinivas Phatak, CFO, HUL, had said on July 23, 2019.

“We are making certain decisive interventions, whether it is on products, whether it’s on proposition, whether it’s on price. So when we have looked at all of those levers, we have taken a view of what is the outlook for the commodity. We have taken the potential on cost, which is coming from what has happened to the budget. Factoring all of those into account, we are still in a position to actually take down the pricing, give the right value equation to the consumer and drive growth into this,”Sanjiv Mehta, Chairman, CEO and MD, HUL, had said.

Hindustan Unilever, the country’s largest consumer goods company, had reported its lowest volume growth in seven quarters during the April-June period (Q1FY20) on the back of slowing consumer demand. HUL saw 5 per cent volume growth as against 12 per cent in the year-ago period. This was the second straight quarter when HUL has posted single-digit volume growth. In the March quarter, volume growth was 7 per cent.

Published on August 27, 2019
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