ITC versus Hindustan Unilever: Different tales of their FMCG business

While ITC's non-cigarette FMCG business revenue comprising foods, personal care and retailing, among others, grew at 11 per cent on a comparable basis, the same for HUL was at 16 per cent

Hindustan Unilever (HUL) raced past ITC on Friday to become India’s largest listed fast moving consumer goods (FMCG) company by market capitalisation. Strong March quarter (Q4) results, robust outlook driven by recovery in rural consumption and the company’s brand reach and leadership are expected to keep the volume momentum strong. In fact, after it results last week, the stock has gained 6  per cent, with market cap around the Rs 3.5 trillion mark. 

While both companies have significant overlap across FMCG categories, HUL leads ITC both in volume growth and segment leadership. This coupled with higher profitability in the business