Hindustan Unilever Ltd., the Indian arm of Anglo-Dutch consumer group Unilever Plc., reported an 18 percent rise in quarterly profit, beating estimates, helped by a revival in consumer spending and lower raw material cost. India is on track to become the global consumer giant’s largest market by sales, overtaking the United States. The company leads the Indian market in more product categories than any other company in a major economy, including China.
The unit, which makes everything from Dove deodorant to Knorr soup, dominates the fast-moving consumer goods in the emerging market and has an equity value of $47 billion. Unilever expects India will generate almost one quarter of its global growth in its home care business – one of its four major categories – over the next five years.
An improvement in profit margins is one reason that Hindustan Unilever’s stock is up 64 percent in the past year. India’s recent budget is projected to improve the economy of its rural population, a big driver of consumption growth.
