Investors welcomed continued management reshuffles at the company, alongside optimism sweeping the FMCG sector ahead of GST rate cuts on household essentials.
Shares of Hindustan Unilever (HUL) gained ground on Tuesday after parent company Unilever named Srinivas Phatak as its new chief financial officer, saying the board was unanimous in its decision following his “strong” performance as acting CFO earlier this year.
Phatak has been serving in the role since February, when Unilever unexpectedly ousted CEO Hein Schumacher and promoted then-finance chief Fernando Fernandez to the top job.
String Of Leadership Changes At HUL
The appointment adds to a series of leadership transitions at HUL this year. In July, the company named Priya Nair as its first woman CEO and managing director, succeeding Rohit Jawa.
Nair, who was president of Unilever’s beauty and wellbeing division, officially took charge on Aug. 1.
In August, HUL also announced that Niranjan Gupta will take over as CFO and executive director, finance, from November 1, replacing Ritesh Tiwari, who moves to London to lead global M&A and treasury at Unilever.
GST Rate Cuts Lift FMCG Sector Optimism
Meanwhile, the broader FMCG sector has been buoyed by optimism after the GST Council’s recent decision to lower taxes on household essentials.
Effective September 22, the GST on shampoos and face powders will decrease to 5% from 18%, while hair oil, toothpaste, soaps, and shaving cream will also be moved into the lower 5% bracket. Butter, ghee, cheese, dairy spreads, and packaged namkeens will fall from 12% to 5%.
HUL Rolls Out Retailer Bonanza
Companies have been quick to pass on the benefit. HUL launched a “Retailer Bonanza” from September 11 to 20, offering upfront trade discounts across soaps, shampoos, oils, oral care, beverages and packaged foods to smooth the transition to new GST rates and drive volumes.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.
Hindustan Unilever’s stock has risen 11.3% so far in 2025.
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