Unilever and Nestlé offer two flavours of India [Reuters]
Unilever PLC (UL)
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Source: Reuters
MUMBAI, May 2 (Reuters Breakingviews) - Two global consumer goods majors are offering contrasting tastes of the world's most populous country. The $63 billion Hindustan Unilever last week reported a 1.5% year-on-year dip in earnings, to $307 million, for the three months to end-March. Demand for staples catering to rural shoppers, such as the company's Brooke Bond tea and Lifebuoy soap, has weakened due to what it described as “high levels of cumulative inflation” over the past few years while a dry spell last year hurt agricultural incomes. Smaller regional players are also taking a bite out of HUL's dominant market share. In response, HUL has cut prices in some categories. The consumption picture is very different across India's cities, where purchasing power of well-heeled households is rising and shoppers are shifting toward more premium products. Those trends helped the $29 billion Nestlé India , which relies on urban customers for 80% of its top line, grow quarterly net pro
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