HUL had issues with GSK factories in Q2… related to COVID outbreak in one of the facilities, labour strike in another facility.
So…the Horlicks, Boost - supplies were hurt in Q2.
Both issues now stand resolved. Management hopes to regain business momentum in Q3 wrt erstwhile GSK portfolio.
Quoting from what I remember from the Concall audio.
Expecting others to follow suit as well. If companies start claiming its 99.9% effective along with necessary legal formalities we’ll end up seeing people use them daily like we use toothpaste. Currently only big player is Listerine owned by J&J.
This mouthwash with CPC is made by P&G in USA. Cetylpyridinium Chloride (CPC) is a well-known, broad-spectrum antimicrobial agent used in over-the-counter mouthwash in USA.
(Crest® PRO-HEALTH™ Mouthwash, Procter & Gamble).
So if HUL brings a CPC mouth wash in India,
P& G india is also expected to bring it’s product from USA .
Now also , you can get Crest mouth wash in Amazon …but they will import and deliver to you…
Actual price in USA 3 to 4 USD for 150 ml …but if we import it we have to pay 20 USD import duties
Came to know about this after seeing the products recommended at Amazon. These has got highly positive reviews.
HUL seems to be silently growing its Pureit brand. It lists it under the category “Life Essentials” and it has only this water purifier brand under this category. Interestingly this brand started as a very simple water purifier catering to the then mass market and very basic filtering but now I observe it right at the top end of the spectrum with intricate ROs and presence in all types of water purification. The product looks like from a top notch consumer durable company and competes in all leading stores and ecommerce site with top players in the category.
Point is - 1. Does Unilever operate in any consumer durable area worldwide other than water purifiers?
2. How and Why did HUL venture into consumer durable area?
3. And How well is it faring in terms of growth, investments and margins?
I am sure it is currently not moving any needle, but seing the quality and depth of their water purifier products, it shows their seriousness in consumer durable area - I fail to understand why such seriousness in a non core area and what maybe the strategy around it, if any…
Their water purifier range is also available in Bangladesh, Sri Lanka and Vietnam. Pureit is the first durables foray by any Unilever group company.
They also were in air purifiers. And that also had a website. Currently I can’t find it anywhere. Maybe that range wasn’t very successful.
https://www.flipkart.com/pureit-h101-portable-room-air-purifier/p/itmetzsdd7a6qrzm
Please read this HBR case study.
In fact the successful foray of HUL in durables category made me very much bullish on HUL’s long term chances. That they can become successful in new territories as well.
Can’t find anything related to Company’s Air Purifier segment in Annual Report or the latest concall
Their website is missing too. Can find some items still in stock at Amazon but it seems like stock clearing is going on. Customer review is very poor.
Afternoon.
I was reading HUL on screener and going thru ratios.
There is “ROCE” and it is 39%, way too low compare to past 10 years where it is always stayed around 3 digit.
Can anyone please explain why such a deep fall?
is this a good thing or neutral ?
Insider buying
Refer to Page 45 in AR FY2021
HUL management has tendency to operate with lowest capital employed possible. They have in past, taken approval to utilise accumulated reserves for past years to be approved as dividend and optimise networth (hence capital employed). Since GSK accumulated reserve got added in networth, the networth got bloated. I would expect same to be distributed to shareholders as dividend over 2-4 years period. My understanding may be wrong.
Discl: Hold nominal position in the company for last 8 years. No change in last 1 month
Was pleasantly surprised by this when FIIs have been net sellers. Although the situation might have changed this quarter. 
Return on Net Worth, Return on Capital Employed and Debt Equity ratio have dropped in financial year 2020-21 on account of increase in shareholders’ equity pursuant to the merger of GSK CH.
Disc: Invested
