Despite market estimates, Hindustan Unilever Ltd, India’s largest consumer goods company, posted an 18% increase in net profit for the quarter ended June. It posted the highest growth in its personal care business, which has grown 19.4%. According to Harish Manwani, chairman of the company, the double-digit growth in its personal care business was achieved through strict business planning and cost control measures.
The company has also reportedly reduced its advertisement spend on soaps because of the sluggishness in the market. There is increased competition in this category while the commodity cost of making the products has gone up. However, the cut in advertising and promotional spend has had an adverse impact, slowing down HUL's sales in the market. To make up for this, HUL has increased pricing on some of its products.