Hindustan Unilever Share Price: Tea, soap, oil to detergent, HUL focusses on volume growth
ICICI Securities believes that HUL is likely at the cusp of a period of volume growth acceleration, even if that means sacrificing gross margins to an extent. ICICI Securities note HUL’s comments in Q2 FY21 earnings call stating the change in thought process. This strategy is already playing out in tea and soaps, where HUL has taken a much lower price hike versus competition and versus commodity inflation, in a bid to gain market share. Even in detergents, HUL has been quick in passing input cost benefits, again ahead of competition.
HUL’s comment in Q2 FY21 call, management said that the right thing for them to do is to focus on competitive volume-led growth: Reuters