InvestorQ : How do you see the prospects of Hindustan Unilever once the lockdown is lifted and normal business resumes?
NISHA Nayak made post

How do you see the prospects of Hindustan Unilever once the lockdown is lifted and normal business resumes?

Answer
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4 months ago


The top management of Hindustan Unilever has affirmed that they expect a revival in economic activity by the end of the year, perhaps in the last quarter. The CEO, Sanjiv Mehta, has himself expressed confidence on a sharp revival. Mehta also mentioned that they were expecting a bigger package to help stimulate consumption demand. COVID-19 had created severe disruptions for FMCG firms and their distributors and even impelled a temporary scaling down of production and movement of goods. Hindustan Unilever never had to fully shut down production due to being classified as an essential good. However, now with the phased withdrawal, the production has bounced back to 90% of capacity. However, this fiscal is likely to see growth in FMCG being cut from 10% to around 6%. Mehta, however, also cautioned that rural demand was taking longer to pick up and that could be a major hindrance to future growth.