HUL expects inflation for next few quarters

NEW DELHI: FMCG major HUL expects the operating environment to remain challenging in the near term as inflation is likely to continue for the next few quarters. In order to overcome the challenge, the company is adopting a ‘bridge pack strategy’, under which it will introduce products packs priced between the existing highest and the lowest prices, according to company officials.

While the company will continue to drive savings ‘harder’, it will also take calibrated price increases but foresees a decline in margins in the short term. “Looking ahead, the near-term operating environment will remain challenging. We expect to see more sequential inflation. Growth will be predominantly price-led. We will continue to drive savings harder and take calibrated pricing actions,” HUL CFO Ritesh Tiwari said.