Company Update: Hindustan Unilever

Company Update: Hindustan Unilever

Hindustan Unilever (HUL) has hiked prices of products by 1-28% across categories such as tea, detergent, soap, shampoo and personal care since October.

Among key price moves, HUL hiked prices of Lux 100 gm soap bar by 6%, Surf Excel Quick Wash detergent by 5-6%, and Surf Excel Blue by 12-13%. It has also hiked prices of Brooke Bond Red Label tea and Taj Mahal tea by 8-14% between mid-October and early November.

The company also soft launched Knorr culinary pastes in Maharashtra, made packaging changes and introduced promotion offers on select products.

The price hike move comes even as other FMCG firms were considering options to pass on the benefit of a fall in prices of raw materials such as soda ash and palm oil to consumers.

Amid price hikes, HUL has also launched Red label Tea in an experimental standing pouch in 200 gm, priced at Rs40.

Apart from packaging, there has been no change in quality or blend of tea. HUL also introduced new packaging for its Lux international soaps, while hiking the price by about 6%to Rs18 (100 gm unit).

We maintain NEUTRAL view on the stock.