Proxy Advisory firm SES has pulled up Hindustan Unilever (HUL) on the recent royalty hike issue. In its report, SES has criticized country’s largest fast moving consumer goods (FMCG) maker for increasing the royalty amount without taking the shareholder’s approval, besides terming the hike as ‘unjustified.’
HUL’s board in January approved a royalty of 3.15% of turnover effective this month. Uptill January, the company paid 1.4% of the total turnover as royalty to its parent company, Unilever. However, this hike will be effective by the company in phased manner till March 2018.
The FMCG player registered a rise of 15.59% at Rs 871.36 crore in Q3FY13 as compared to Rs 753.81 crore in the corresponding quarter previous year. The total income from operation of the company has increased by 11.74% to Rs 6654.83 crore for the quarter under review as compared to Rs 5955.53 crore in the same quarter last year.
| Company Name | CMP |
|---|---|
| Hindustan Unilever | 2287.90 |
| Godrej Consumer Prod | 1042.50 |
| Dabur India | 487.60 |
| Colgate Palmol. (I) | 2196.75 |
| P&G Hygiene | 9930.50 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: