HUL signals cruise control on consumption journey

Lower food inflation, falling interest rates, rain cues promise greater demand ahead

- Suneera Tandon & Gaurav Laghate

NEW DELHI/MUMBAI: Stars have aligned favourably for India's consumption economy, Hindustan Unilever Ltd (HUL) indicated on Thursday, expressing confidence that its next six months will be considerably better than the last.

Lower food inflation, falling interest rates and a positive monsoon promise greater demand in the days ahead, India's largest packaged consumer goods maker said, after reporting earnings that met Street estimates.

"We feel this is a good moment for the consumer packaged goods industry. Macros are turning favourable," chief executive officer and managing director Rohit Jawa said at a post-earnings meeting. "Rural markets have recovered, and have been resilient and robust over the last few quarters. Monsoons have been good, projections have been decent, reservoirs are full, and agri output is strong."