
Cap MNC royalty payments, demands RSS affiliate
The call has come against the backdrop of the decision by HUL to increase the royalty payment to parent company Unilever, from 2.65% to 3.45% over three years till 2025.
The call has come against the backdrop of the decision by HUL to increase the royalty payment to parent company Unilever, from 2.65% to 3.45% over three years till 2025.
HUL’s 3Q results were in line with expectations; however, hikes in royalty and central service fees remained key concerns.
Growth was ahead of the market with more than 75% of the business winning market shares, says HUL.
The investment in two D2C brands is part of HUL’s strategy to boost its presence in the health and wellness segment post acquisition of Horlicks.
FMCG companies were on a price-hike spree for the past two years. But the change in tactic is because there is a clear softening of rural demand, a big driver for FMCG revenues at 65-70%.
State-owned insurer LIC’s stake in Hero has increased to 11.2%, while in CAPRI and HUL, its shareholding rose to 7.05% and 5%, respectively.
With hybrid work culture becoming a way of life, the FMCG major is experimenting with employment models.
The maker of Dove shampoo said Madhusudhan Rao will be appointed as executive director, Beauty & Wellbeing and Personal Care.
The company said it will move away from its current matrix structure and will be organised around five distinct business groups.
Chairman & MD Sanjiv Mehta says the company will ensure its general trade distributors get a fair ROI. In Q3 of FY22, HUL's volume growth was 2%.