Domestic growth for Unilever’s India subsidiary, HUL was at 19%, with home and personal care growing at 20.6% and foods business growing at 10.6% for the quarter ending June 30 according to DNA India.. Net profit for the three months through June rose to $240 million and overall sales grew 14% to 62.50 billion rupees from 54.96 billion rupees, India’s largest consumer goods maker by sales said. During the same period, Colgate Palmolive India sales rose 20%, and it increased market share in toothpastes and toothbrushes as reports in the Wall Street Journal India.
Other CPG companies traded in India Marico, Dabur, ITC, Tata Global Beverages and Godrej Consumer Products have fared better than HUL in the same quarter. The largest homegrown CPG company, Dabur credited categories such as health supplements, shampoos and foods for the 21% growth in its consolidated net sales.
What this means:
Despite some concerns, India’s CPG/FMCG companies are finding that the growing middle class and their rising incomes have supported substantial gains in size, staff and profits even as Europe and America falter. New entrants to India should look at this carefully.
