Business Standard

Street positive in Hindustan Unilever's ability to scale up VWash

Strong distribution network and company's cost efficiency would help increase sales of the acquired high-margin portfolio

HUL unilever
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Shreepad S Aute
The stock of Hindustan Unilever (HUL) surged 7.6 per cent to Rs 2,011 on Tuesday, outperforming the 3.2 per cent rise in the Nifty FMCG index. Besides the broader market recovery (Nifty50 was up 2.5 per cent) and the economic package indicated by the finance minister, the acquisition of VWash brand and portfolio announced on Monday, after market hours, supported the stock.

What made the Street positive about the deal — despite the minuscule size of the category where VWash is a market leader — were expectations of expansion of the market and brand size under HUL.

VWash is feminine

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