Unilever Seeks Greater Control Over Indian Unit Hindustan Unilever

Unilever is investing $5.4 billion to boost its ownership and control over Hindustan Unilever Ltd., which last year achieved a 37 percent increase in earnings selling brands custom-designed to appeal to Indian consumers. Competition in the $42 billion Indian market for beauty, home care and packaged food products is fierce. Competitors like P&G and Colgate-Palmolive (CL) Co. are pushing hard to gain market share, though so far Hindustan Unilever has a lock on the consumer products market. With the investment, Unilever hopes to increase its stake in Hindustan Unilever from 52.5 percent to 75 percent by offering shareholders a 21 percent premium – an “obscene valuation” according to analysts – over the current price. If completed, the transaction will be Unilever’s biggest since its 2000 purchase of Best Foods Ltd.