FMCG major Hindustan Unilever Ltd (HUL) on Monday said it will set up a new subsidiary with an authorised share capital of Rs 2,000 crore.

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The company’s board has approved a proposal to set up the subsidiary, it said in a statement. This new subsidiary has been formed to leverage the growth opportunities in a fast-changing business environment and will help HUL in becoming more agile and customer-focused.

In 2018-19, HUL reported a revenue of Rs 38,224 crore. Shares of HUL on Monday settled at Rs 2,216 apiece, down 1.42 percent, on the BSE.

The company recently reported an 11.9 percent year-on-year growth in the December quarter profit at Rs 1,616 crore, driven by lower commodity cost and other expenses.

HUL said home-care continued its trajectory of good performance with double-digit top-line growth, though the beauty and personal care segment was impacted by a higher-than-expected slowdown to market growth and delayed winter.

Revenue from foods and refreshment business grew by 7.9 percent YoY to Rs 1,865 crore, with healthy EBIT growth of 28 percent and 280bps rise in the margin.

First Published:Feb 24, 2020 6:43 PM IST