HUL Q3: Rising mobility helping demand, Sebamed spat had no impact on volumes, says management

Fast moving consumer goods (FMCG) major Hindustan Unilever Ltd (HUL) reports an in-line set of third quarter earnings with domestic volume growth at 4 percent. Sanjiv Mehta, CMD of HUL and Srinivas Phatak, CFO of HUL discussed the company's quarterly performance and what lies ahead.

The demand has been muted because of lack of mobility and despite that the company has grown in double-digits, said Mehta.

“I think there would be a compensation. I expect laundry business to move up as people step out. We are very extremely pleased with the way the government has managed the crisis. What is going to further help the cause of demand is rapid rollout of vaccine. Together with vaccination, increase in mobility will result in increase in demand,” Mehta mentioned.

“Sebamed has no impact on our volumes,” he added.

In terms of demand for hygiene products and sanitizers, Mehta said, “It has been tapered off. Some of the behavior change that we are seeing in terms of better practices, more hygiene, frequent washing your hands with soaps those are practices which are bound to remain. Because people have realized the benefit of the right practice.”

“For discretionary and out-of-home, there are clear indicators that in urban India as more people start going out to work, start stepping out of homes this is having a very clear positive impact on these categories,” Mehta mentioned.