X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
The winner is Unilever - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jun 7, 2000

    The winner is Unilever

    Unilever finally rested control of US food company Bestfoods in all cash deal worth $20.3 bn or $ 73 per share. After the merger Unilever will rank as the world’s largest food conglomerate with annual sales of $ 52.3 bn and profits of $ 6.2 bn. The companies estimate that their combination will lead to savings of up to $750 m annually.

    Unilever will benefit with well-known brands of Bestfoods, which includes Knorr, Thomas English muffins, Skippy peanut butter and Hellmann's mayonnaise. The acquisition provides Unilever inroads into emerging markets where Bestfoods already has established a presence. Bestfoods’ Knorr soups, corn oil and starches products ranks number one in market share across all Latin America and Asia. This will open the door for Unilever in becoming leader in these markets. Also the merged entity would be able to negotiate the prices to improve their operating margins.

    Unilever has recently acquired product line of ice cream maker Ben & Jerry’s Homemade Inc. and diet food company Slim-Fast for more than $2.6 bn. The acquisition Bestfoods will enhance its present product portfolio, which consist of packaged goods such as Lipton tea, Dove soap and Elizabeth Taylor fragrances. Bestfoods key brands will drive Unilever’s food business forward making the company number one in dry soups and mayonnaise giving stiff competition to Nestle SA, which is the world’s biggest food company.

    The move is expected to benefit Unilever’s subsidiary HLL in India. HLL the largest consumer products and food company in India would be able to leverage on the brands of Bestfoods. In the domestic market HLL with 115 brands enjoys a leadership in soaps, detergents, color cosmetics, ice cream and packed tea segments. In future the new products from the parent’s product basket which now consist of brand like Knorr will be launched through HLL increasing its existing food product portfolio. This will give stiff competition to the companies like Nestle. HLL, which is increasing its presence in the foods segment, will also be able to improve its topline growth in future, which registered marginal growth of 7% in the current year.

     

     

    Equitymaster requests your view! Post a comment on "The winner is Unilever". Click here!

      
     

    More Views on News

    GSK Consumer: On the Recovery Path (Quarterly Results Update - Detailed)

    Jun 20, 2017

    While GSK consumer reported muted revenue growth, volumes are seen to be recovering.

    HUL: A Slow End to a Dull Year... (Quarterly Results Update - Detailed)

    May 9, 2016 | Updated on May 11, 2016

    HUL announced its results for the quarter and year ended March 2016. While revenues rose by 4% YoY, net profits increased by 7% YoY.

    Hindustan Unilever: Deflationary Pressures Curb Growth (Quarterly Results Update - Detailed)

    Jan 21, 2016

    HUL announced its results for the quarter ended December 2015. While revenues were up by 3% YoY, profits came in lower by 22% YoY.

    Hindustan Unilever: Fails to meet expectations (Quarterly Results Update - Detailed)

    Oct 16, 2015

    HUL announced its results for the quarter ended September 2015. While revenues were up by 4% YoY, profits came in lower by 3% YoY.

    A Little Gem in the FMCG Sector (Sector Info)

    Jul 18, 2016

    Will investing in Bajaj Corp yield high returns on account of a rural revival in sight?

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    HIND. UNILEVER SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK HIND. UNILEVER

    • Track your investment in HIND. UNILEVER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON HIND. UNILEVER

    HIND. UNILEVER - AMAR REMEDIES COMPARISON

    Compare Company With Charts

    COMPARE HIND. UNILEVER WITH

    MARKET STATS