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Despite global commodity prices coming down, consumer goods maker Hindustan Unilever (HUL) is unlikely to pass on the benefits to the consumers soon.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
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