Hindustan Unilever (HUL) Chief Executive Officer Rohit Jawa called the slowdown a ‘temporary’ thing and exuded confidence that the urban market will revive soon.
During the CNBCTV18 Global Leadership Summit on Thursday, Jawa said, “Long-term prospects of the Indian consumer sector far outweigh the near-term weakness,” and added, “Slowdown in urban is a temporary, just the way rural was”.
Talking about the 90-year-old journey of HUL, Jawa said, “India is Unilever’s hub for talent, leadership, Research and Development, science and technology, and innovation”. He made a forecast about a massive unlock in different categories in the Asian market including, India, China, and Indonesia in the next four years.
“We will continue to build products that upgrade the quality of life and the price and value that suits the Indian pocket,” Jawa added.
On the consumption habits of Indians, he said, “The macro picture of the consumption story of consumer goods is that every consumer wants to spend on better quality of life”. Therefore, he said the vital thing for HUL is ” to give a better product at a better price”.
The HUL CEO said that the company would focus on “market share, increase the quality of brand so that they are unmissable and keep investing on market development”.
According to him, “The Indian market is at a turning point with rapid urbanization, digitization, and a growing appetite for high-quality products at affordable prices. Our vision is to stay deeply connected with consumers by offering products that resonate with their needs and values,” Jawa added.
HUL reported a 4 percent drop in its standalone net profit to Rs 2,612 crore due to higher expenses amid a slowdown in the urban markets, compared to Rs 2,717 crore in the corresponding period last year.
The fast-moving consumer goods (FMCG) giant’s total revenue from operations rose nearly 1.5 percent to Rs 15, 508 crore in Q2 FY 25 compared to Rs 15,276 crore in the year-ago period.
HUL’s total expenses were Rs 12,581 crore in the September quarter, up 3.03 percent year-on-year (YoY).