On Monday, Hindustan Unilever Limited (HUL) said that it will set up a 100 percent new subsidiary with an authorised capital of Rs 2,000 crore.
"The Board of Directors of Hindustan Unilever Limited (HUL) today (24 February) approved a proposal to form a new 100% Subsidiary of Hindustan Unilever Limited. This Company will be incorporated with an Authorised Share Capital of Rs. 2000 crore," the company said in its stock exchange filing.
"This new subsidiary has been formed to leverage the growth opportunities in a fast-changing business environment and will help HUL in becoming more agile and customer-focused," the statement further said.
Shares of HUL were trading higher on Tuesday and touched an intraday high of Rs 2,279.70.
For the third quarter of 2019-20, the FMCG company reported a 12 percent increase in standalone profit at Rs 1,616 crore from Rs 1,444 crore for the same period of the previous year.
Its sales for the quarter was 3.62 percent higher on a year-on-year basis at Rs 9,696 crore.
According to a recent Economic Times report citing Nielsen data, the company's Surf Excel brand posted more than Rs 5,000 crore in annual sales last year, making it the first HUL brand to hit the mark.