The total revenue of the FMCG market is projected to grow at a CAGR of 27.9 percent from 2021 to 2027, reaching nearly $615.87 billion. In 2022, the urban areas accounted for 65 percent of total annual FMCG sales, while rural India contributed over 35 percent. In 2024, consumer spending in India stood at Rs. 2,08,51,200 crore ($2.4 trillion) and is projected to grow nearly Rs. 3,73,58,400 crore ($4.3 trillion) by 2030.
According to CRISIL, India’s dairy industry is forecasted to achieve a robust revenue growth of 13-14 percent in FY25, fueled by strong consumer demand and increased raw milk supply.
This article provides a comparative overview of Nestlé India Limited and Hindustan Unilever Limited, focusing on their latest FY25 revenue segmentation and business performance to assess which company is gaining a competitive advantage in India’s evolving FMCG landscape.
Price Movement
Shares of Nestle India Limited moved up by nearly 1.36 percent on BSE to Rs. 2,462.95 on Friday. The stock has delivered negative returns of around 3 percent in one year, as well as about 0.10 percent returns in one month.
Meanwhile, shares of Hindustan Unilever Limited surged nearly 1.28 percent to Rs. 2,309.55 on BSE. The stock has delivered negative returns of around 6.26 percent in one year, as well as about 3.03 percent returns in one month.
Business Overview
Nestlé India Limited, one of the biggest players in the FMCG segment, primarily operates in the food business with categories including milk products and nutrition, prepared dishes and cooking aids, powdered and liquid beverages, and confectionery. It manufactures and markets products under well-known brand names, including Nescafé, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid, and Nestea.
Originally incorporated as Lever Brothers India Ltd., HUL operates in the FMCG sector, with its business primarily divided into four key segments: Home Care, Beauty & Wellbeing, Personal Care and Foods.
The Personal Care segment covers products such as oral care, skin care (excluding soaps), hair care, talcum powder, and colour cosmetics. The Foods segment comprises staples like atta, salt, and bread, along with culinary products such as tomato-based items, fruit-based products, and soups. The Beverages segment includes tea and coffee. The “Others” category includes chemicals and the water business.
Segmental Revenue
In FY25, HUL generated around 36.4 percent of its total revenue, amounting to Rs. 22,958 crore, from its Home Care segment. The Beauty & Wellbeing segment contributed 21.4 percent or Rs. 13,523 crore, while Personal Care accounted for 14.5 percent or Rs. 9,166 crore. The Foods segment made up 24.2 percent of revenue, totalling Rs. 15,294 crore, and the remaining 3.4 percent, or Rs. 2,180 crore, came from Other segments.
Meanwhile, as of February 2025, Nestle’s revenue breakdown was as follows: Milk Products & Nutrition segment contributed 39 percent, Prepared Dishes and Cooking Aids segment accounted for 31 percent, Confectionery segment made up 16 percent, and Powdered & Liquid Beverages segment contributed the remaining 14 percent.
Financial Performance
In Q4 FY25, Nestle India reported a marginal YoY jump in revenue from operations by nearly 4 percent YoY to Rs. 5,504 crores, while the net profit declined by around 5.2 percent YoY to Rs. 885 crores.
Additionally, the key financial indicators show a Return on Equity (RoE) of 83 percent and a Return on Capital Employed (RoCE) of 95.7 percent. The stock currently trades at a price-to-earnings (P/E) ratio of 75.8, compared to the industry average of 68.5, and has a debt-to-equity ratio of 0.28.
In contrast, HUL reported a marginal growth in YoY revenue from operations by nearly 3 percent to Rs. 15,670 crores in Q4 FY25, but its net profit decreased around 3.3 percent YoY to Rs. 2,475 crores.
In terms of key financial metrics, the company has a RoE of 20.7 percent and a RoCE of 27.8 percent. Further, the stock has a P/E ratio of 54, compared to the industry’s P/E ratio of 53.9, and its debt-to-equity ratio stands at 0.03.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
