MAM
HUL ramps up ad spends in second Covid2019 quarter
BENGALURU: FMCG major and the largest player in terms of advertising and marketing spends, Hindustan Unilever (HUL) upped its advertising spends by 43 per cent during the second Covid2019 quarter – (Q2 2021, the quarter ended 30 September 2020, quarter or period under review) as compared to the immediate trailing quarter Q1 2021. The company had pared quarter over quarter (q-o-q) and year-on-year (y-o-y) advertisement expenses in the first quarter of fiscal 2020 (Q1 2021, quarter ended 30 June 2020) during which the Covid2019 lockdown was in place by over 30 per cent to Rs 800 crore from Rs 1,175 crore (down 31.9 per cent) in Q4 2020 and Rs 1,167 crore (down 31.4 per cent) in Q2 2020 respectively. For the period under review, HUL spent Rs 1,144 crore towards advertisement expenses as compared to Rs 1,200 crore in the corresponding year ago quarter. All numbers in this report are consolidated numbers unless stated otherwise.
The company reported 15.2 percent y-o-y and 8.2 percent q-o-q increase in total revenue at Rs 11,776 crore as compared to Rs 10,223 crore in Q2 2020 and Rs 10,885 crore in Q1 2021 respectively. However, in terms of percentage of total income (operating revenue plus other income), HUL’s ad spends during fiscal 2021 were down when compared to previous periods. The FMCG major’s ad spends in Q2 2021 of Rs 1,144 crore were 9.7 percent of operating revenue of 11,776 crore. Please refer to the figure below:
For the half year ended 30 September 2020 (H1 2021) the company had spent Rs 1,944 crore (8.6 percent of total revenue), which was 17.9 per cent lower than the Rs 2,367 crore (11.4 per cent of total revenue) during the corresponding year ago quarter. For FY 2020 and FY 2019, HUL had spent Rs 4,688 crore (11.9 per cent of total revenue) and Rs 4,552 crore (11.7 per cent of total revenue) respectively.
The company reports numbers for four segments, the largest of which in terms of revenue is the beauty segment, followed by the home, foods & refreshments, and ‘Others’.
The company has reported y-o-y revenue growth for the four segments. In an earnings press release, HUL said that growth in Q2 2021 was competitive and profitable with reported turnover growth of 16 per cent and domestic consumer growth (excluding the impact of merger of GSK CH and acquisition of ‘VWash’) of 3 per cent. The FMCG player avers that the strength of its portfolio is demonstrated by the fact that 70 per cent of its business was gaining penetration and that health, hygiene and nutrition products, which formed cumulatively 80 per cent of its portfolio, grew in double digits.
Company Speak:
HUL chairman and managing director Sanjiv Mehta said: “In the context of a challenging economicenvironment, our growth has been competitive and profitable. We continue to demonstrate execution prowess,agility, adaptability, resilience, and passion of our people. We have expanded our portfolio with consumerrelevant innovations and have invested strongly behind our brands. Our operations and service levels are now back to pre-COVID levels and we have accelerated the pace of digitizing our operations under the ‘Re-imagine HUL’ agenda. The economic outlook has improved given the various initiatives taken by the Government and Reserve Bank ofIndia. In our sector, rural markets have been resilient but the demand in urban India especially in metropolitancities has been muted. We believe that the worst is behind us and we are cautiously optimistic on demand recovery.”
Segment Results
Excerpts from the HUL Q2 2021 earnings release
Home Care:
Household Care delivered strong performance across all segments led by continued penetrationgains. We have stepped up our innovation intensity to address the ‘clean living’ needs of consumers; ‘Domex’ range is now available nationally. In Fabric Wash, we have reduced our prices to pass on benefits of lowercommodity costs to consumers. Category consumption of Laundry has been adversely impacted due to confinedliving. Continued focus on driving market development has enabled us to grow our Liquids and Fabric Sensationsegments strongly.
Beauty & Personal Care:
Skin Cleansing grew in double digits on back of a very strong performance in ‘Lifebuoy’and a good delivery in ‘Lux’. Hand Sanitizers and Handwash segments continue to gain penetration and havedelivered robust growths. Oral care grew in double digits with accelerated momentum in ‘Close Up’. Hair Care alsogrew in double digits; our portfolio interventions along with repurposed communications are resonating well withconsumers and driving salience. In Skin Care, ‘Glow & Lovely’ and ‘Glow & Handsome’ have successfully landed onshelves across the nation and we continue the journey towards a more inclusive vision of beauty. While theessential part of Skin Care saw pickup in demand, ‘winter portfolio sell-in’ was impacted due to muted tradesentiment and liquidity constraints.
Foods & Refreshment:
Foods, Tea and Coffee sustained the high growth momentum and grew in double digits; ourconsumer-focused activations and innovations are leveraging the ‘in-home consumption’ trend. Our prudent anddynamic management of unprecedented inflation in Tea has enabled all our brands to grow in double digits andthis positions us well. Performance of our Nutrition business was competitive and disrupted supply lines are nowfully restored. In the quarter, we expanded ‘Boost’ nationally with the narrative of ‘Play a bigger game’ andlaunched a special film on ‘Horlicks’ to celebrate the deeper meaning of growth that stems from courage andconfidence. While we saw sequential improvement, Ice Creams, Foods Solutions and Vending businesses continueto be impacted due to out-of-home consumption loss.
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Finding the best gold loan, however, takes more than simply visiting the closest branch because there are several banks and NBFCs (Non-Banking Financial Companies) vying for your business. It necessitates a strategic grasp of how lenders set their product prices. The cost of borrowing in 2026 is no longer a “one-size-fits-all” number; rather, it is a variable that depends on your loan amount, the state of the market, and particular regulation slabs. You may make sure that you leverage your gold holdings at the best gold loan interest rates by taking a methodical approach.
Recognise the Tiered LTV Framework for 2026
The Reserve Bank of India’s (RBI) introduction of tiered Loan-to-Value (LTV) criteria is one of the biggest changes. Depending on your unique financial needs, this policy directly affects which lender can provide you with the best gold loan.
The LTV limitations for 2026 are set up as follows:
- Loans up to ₹2.5 Lakh: 85% LTV eligibility
- Loans up to 80% LTV are eligible for those between ₹2.5 Lakh and ₹5 Lakh
- Loans over ₹5 lakh are eligible for up to 75% LTV
You must match your borrowing with these levels to determine the lowest gold loan interest rate. Because there is less risk involved, a lender may frequently give a cheaper rate for a 75% LTV plan than for an 85% LTV plan. Choosing a lower LTV bracket is a tried-and-true method to get the finest gold loan conditions if you don’t require the highest amount of cash on hand.
Compare the Offerings of Banks and NBFCs
The best gold loan is determined by your preference for quickness or cheaper cost. The service and pricing differences between ordinary banks and specialised gold lending NBFCs have grown.
Public and Private Banks: The interest rates on gold loans offered by public and private banks are often the lowest on the market, frequently beginning as low as 8.75% to 9.50% annually. Borrowers seeking a long-term or overdraft-like facility who already have a savings account will find it appropriate.
NBFCs: They are the industry leader in offering a genuine, rapid gold loan experience, even if their interest rates may be a little higher than those of banks. They are frequently the best gold loan option for urgent needs when speed surpasses a 1% yearly cost difference, thanks to doorstep services and quick disbursals.
Make Use of Purity’s Power
The most potent “multiplier” in your loan computation is the karat of your jewellery. Lenders have shifted to highly standardised assaying procedures. Declaring high-purity materials helps you get a higher valuation and a better loan amount.
Make sure you are offering hallmarked jewels in order to receive the best gold loan. Because the collateral risk is essentially zero, hallmarked gold (BIS 916) lowers the lender’s uncertainty during appraisal and frequently enables them to provide a more alluring gold loan interest profile.
Consider the Mode of Repayment
The best gold loan is one that doesn’t negatively impact your monthly cash flow. Below are a few repayment options you may consider:
- Bullet Repayment: At the conclusion of the term, which is usually 12 months, you pay the whole amount. Although the cumulative interest cost of the gold loan may be somewhat greater, this is great for short-term liquidity.
- Monthly Interest Payment: You just pay the interest each month; the principal is paid at the end. As a result, the monthly burden is minimal.
- EMI (Principal + Interest): The most organised approach to loan closure is through EMI (principal + interest), which progressively lowers your principal and, as a result, your overall interest expense.
Use a computerised gold loan calculator to determine which option delivers the biggest savings before you sign the contract. Even a 0.5% change in the repayment schedule might save you thousands of rupees on a big loan in the expensive year of 2026.
Be Aware of Unexpected Fees and Penalties
High administrative costs can occasionally be concealed by a low headline interest rate on gold loans. Searching for the finest gold loan requires you to consider the “Total Cost of Credit.”
- Processing costs: For loans up to ₹3 lakh in 2026, several banks provide “Nil” processing costs.
- Make sure valuation fees are clear and do not represent a portion of the loan balance.
- Prepayment and Foreclosure Penalties: You shouldn’t have to pay a large penalty if you decide to end your gold loan early.
- Late Payment Fees: Examine gold loan interest “steps up” if you fail to make a payment. Some lenders charge 2% monthly punitive interest on the past-due balance, which can easily get out of hand.
Conclusion
Finding the greatest gold loan in 2026 requires striking a balance between the historic worth of your gold, i.e., ₹14,440 per gram, and a lender who understands your desire for quickness and transparency. You may make sure that your gold is a bridge to your financial objectives rather than a burden by comparing the tiered LTV brackets and selecting a repayment schedule that corresponds with your income. The knowledgeable borrower usually prevails in a market where gold loan interest rates are more competitive than ever. Spend some time evaluating at least three lenders, confirming that they are in accordance with the RBI as of 2026, and confidently discovering the actual worth of your assets.
FAQs
How much can I borrow in gold today, per gram?
The maximum credit amount for loans under ₹2.5 lakh (85% LTV) is around ₹12,274 per gram as of February 21, 2026, when 22K gold is valued at ₹14,440 per gram. Make sure your decorations are made of pure gold with minimal stone deductions to receive the greatest gold loan value.
Does my gold loan interest rate depend on my credit score?
In general, no. The majority of lenders offering a quick gold loan do not significantly rely on your CIBIL score because it is a secured loan. However, with certain private banks in 2026, having a solid credit history might help you get greater loan amounts or “preferred” gold loan interest rates.
How can I figure out how much interest is due on a gold loan?
The straightforward calculation is as follows: Principal x Annual Rate x Tenure (in years). Many lenders include a best gold loan calculator on their smartphones for a more accurate 2026 figure. This tool automatically adjusts for your selected repayment method and particular LTV tier.
In 2026, would I be able to obtain a gold loan for 18K jewellery?
Yes, most lenders accept 18K gold. However, the interest rate on the gold loan and the value per gram will be different because the purity is 75% as opposed to 91.6% for 22K. Before using the current market cost of ₹14,440 per gram, lenders first convert your 18K weight into a 22K equivalent.
If I close my gold loan early, will I be penalised?
Prepayment penalties are not imposed by the majority of respectable lenders providing the best gold loan in 2026. However, if you end the loan nearly immediately after disbursement, some may demand a minimum interest payment of seven to fifteen days. Verify your agreement’s “Foreclosure” clause at all times.
