Unilever spots value growth in India amid decline in volumes

NEW DELHI: Indian markets are reporting weakness in consumption due to impact of inflation that is especially hurting demand in India villages, Unilever Plc’s chief executive officer Alan Jope said on Thursday. Despite this Indian markets continue to grow in value even as volumes are declining.

The company is, however, making “significant investments” in its supply chain networks in India—among its priority markets.

The maker of Dove soaps and Vim detergent bar reported quarterly earnings on Thursday. The company’s sales volumes declined 1.6% during the third quarter, it said.

Turnover increased 17.8% year-on-year.

The company raised its fullyear sales forecast. Meanwhile, commenting on India the company said market performance remained broad-based despite a challenging demand environment.

Last week, the company’s local arm Hindustan Unilever Ltd., reported a 4% jump in domestic volumes; profit was up 20% year-on-year, the company announced. HUL said its growth was “significantly” ahead of the market with more than 75% of the company’s business winning value and volume market shares.

“The Indian markets are growing in value, but market volumes are declining. This consumption weakness is due to the impact of inflation on the Indian consumers, particularly those in rural areas. We are confident of HUL’s ability to continue to grow ahead of the market and we see that reflected in very strong market share performance,” Jope said during an investors call.

MINT The company has raised its full-year sales forecast.