Hindustan Unilever Ltd.

Hindustan Unilever (HUL) has received approval from board of directors to increase royalty and central services arrangement fee to its parent Unilever group for getting technology, trademark licenses and services. The new arrangement envisages increasing royalty and central services fees to 3.45 per cent of turnover in a staggered manner over a period of three years from 2.65 per cent in FY22. This arrangement is subject to appropriate regulatory approvals. The new arrangement envisages a staggered increase of 80 bps over a period of 3 years from 2.65 per cent to 3.45 per cent of turnover.

Initially, there will be a 45 bps increase in effective cost for February to December 2023; 25 bps further increase in effective cost for January to December 2024; 10 bps further increase in effective cost from January 2025. 

Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments.