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HUL, Dabur & Colgate see steady consumer demand for personal care goods in India

Posted on : 21 Aug, 2012

 

Increased focus on rural India and wider distribution have contributed to the earnings of fast moving consumer goods (FMCG) companies, including big players like Hindustan Unilever (HUL), Dabur India and Colgate Palmolive (India). They reported strong sales despite a slowdown in demand in urban India owing to factors such as rupee depreciation, inflation and monsoon. HUL reported a 9%volume growth, Dabur reported 12%, while Colgate posted 11% volume growth which reflected a steady consumer demand of daily necessities like toilet soaps, shampoos and toothpastes.

 

Home and personal care growth for HUL stood at 20.6%. On the other hand, Colgate saw not just a sales rise of 20%, but also an increased market share in toothpastes and toothbrushes.  Chief Financial Officer of HUL, R. Sridhar said that while the June quarter has seen a double-digit growth, both in urban and rural India, and largely led by price increases in the soaps and detergents category, the next 2-3 quarters might pose some challenges, depending on how the monsoon, rupee depreciation and inflation turn out.

 

During the quarter which ended in June, HUL’s total income increased almost 20%. Harish Manwani, Chairman of HUL attributed the company’s performance to rural focus. He added that the Indian rural market was expected to grow to a $100 billion opportunity for retail spending by 2025.

 

Dabur’s net profit for the first quarter marked a 16.9% surge, while Colgate grew by 17%.

 

At the 12^th Asia Surfactants Personal & Home Care Markets on 04-05 September in Shanghai key experts will share a detailed overview of the growth, challenges, market trends and other aspects of not just India but Asia’s personal and home care sector. Register here to gain the latest industry updates. Or forward your enquiries to Ms. Grace at grace@cmtsp.com.sg   

 

Source: Dnaindia.com