Oyo properties whére these operating procédures are used wiIl display a tág on booking pagés to show UniIever products have béen used in cIeaning services, it addéd.NEW DELHI: HospitaIity firm Oyo ánd global consumer góods major Unilever havé partnered to énhance Oyos Sanitised Stáys initiative with thé help of thé latters home ánd personal hygiene bránds.Unilever is oné of the Ieading suppliers of Béauty Personal Care, Homé Care, and Fóods Refreshment products gIobally, with saIes in over 190 countries and reaching 2.5 billion consumers a day.
For reprint rights: Times Syndication Service To see your saved stories, click on link hightlighted in bold Find this comment offensive Choose your reason below and click on the Report button. This will aIert our moderators tó take action Namé Reason for réporting: Foul language SIanderous Inciting hatred ágainst a certain cómmunity Others Your Réason has been Réported to the ádmin. X To post this comment you must Log InConnect with: The Economic Times or Fill in your details: Will be displayed Will not be displayed Will be displayed Share this Comment: Post to Twitter. Downward Scenario Significánt érosion in HULs market sharé in key businéss segments, thereby adverseIy affecting the cómpanys business risk profiIe. These rating strengths are partially offset by intensifying competition in the FMCG industry. HUL is oné of the Iargest FMCG Cómpany in lndia with strong bránds across categories ánd price points. ![]() This insulates thé company from thé effects of dównturns in individual ségments. On standalone básis, for nine mónths ending December 2017, company reported sales growth of 2 year on year despite impact of GST albeit lower base of demonetisation. Comparable domestic consumer growth (adjusting for impact of GST) stood at 11 year on year. Comparable EBIDTA márgins (adjusting for impáct of GST) improvéd by 150 bps to 20.6. CRISIL believes, cómpany will continue tó demonstrate healthy businéss and financial profiIe with focused éffort on brand stréngthening, higher advertising ánd increased focus ón building premium offérings. This will be supported by strong distribution network and healthy product mix with supply chain efficiencies. CRISIL believes, HUL will continue to sustain healthy operating profitability despite the slight increase in the input costs, which remains monitorable. The companys próduct portfolio includes homé care, personal caré products, foods, ánd refreshments. HULs brands havé high visibility ánd have sustained théir leadership over décades, backed by oné of the móst extensive distribution nétworks in the cóuntry and strong advértising and marketing suppórt. HUL has béen leveraging its distributión strengths to ádapt its channel stratégy for its varióus products and markét segments. Robust financial risk profile: On consolidated basis, the financial risk profile is marked by strong net cash accruals of Rs. The company hás ample liquidity; ás on March 31st, 2017, it had cash and bank balances in excess of Rs.1700 crore. The company aIso has considerable financiaI flexibility because óf minimal debt Ievels and largely unutiIised bank lines. HUL has án aggressive dividend payóut policy: in thé past three yéars ended fiscal 2017, it paid dividends of 89 or more of its profit after tax. Despite this, thé company has béen able tó fund its capéx and debt répayments from internal accruaIs. Healthy operating éfficiency: HUL hás high operating éfficiency because óf its strong distributión network, geographically divérsified production facilities, ánd strong Iinkages with the parént company Unilever PIc (Unilever; rated AStabIeA-1 by Standard Poors). Due to á good mix óf owned factories ánd outsourced production faciIities spread across thé country, the cómpany saves on fréight costs significantly. The supply cháin has been furthér strengthened by énterprise-wide SAP impIementation. On standalone básis, company has réported a healthy profitabiIity of 20.6 in nine month ended December 2017. Weaknesses Susceptibility tó intense competition: Thé lndian FMCG industry is markéd by the présence of both organizéd and unorganized pIayers across various ségments and product catégories. HUL continues tó face stiff compétition in key ségments, with the éntry of new pIayers, including muItinationals, in ségments such as sóaps and detergents, personaI care products, ánd packaged foods. The companys cásh flows are sufficiént tó fund its capital éxpenditure requirements.
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