MAM
HUL’s ad spend up 15.7% to Rs 28.3 bn in FY’11
MUMBAI: For broadcasters who are clamouring for increase in advertising rates, there is a piece of good news.
Hindustan Unilever, the largest ad spender in the country, has upped its spending on a consolidated basis for the fiscal ended 31 March 2011, more than offsetting Marico‘s marginal drop.
India‘s largest household products and consumer goods maker has increased its spend on advertising and promotions by 15.68 per cent to Rs 28.33 billion during the fiscal, up from Rs 24.49 billion in the year-ago period.
Ad spending on a standalone basis also rose 15.59 per cent to Rs 27.64 billion for the fiscal, from Rs 23.91 billion.
However, HUL has cut down its standalone ad spend for the fourth quarter, albeit marginally. The company, which owns brands such as Dove soap, Clinic shampoo and Closeup toothpaste, spent Rs 6.23 billion towards advertising and sales promotion, down from Rs 6.26 billion a year ago.
For the quarter, HUL increased brand investment in the personal products and food segment.
“A&P spends, at Rs.6.23 billion, remained competitive at 12.7 per cent of sales, with increased brand investment in personal products and foods,” the company said in a statement.
The company said net profit in the fourth quarter ended March fell to Rs 5.69 billion, from Rs 5.81 billion a year ago.
The company‘s cost of goods sold went up by 290 basis points in the quarter.
Marico had earlier announced a marginal drop in its ad spend for the fiscal. The company, which manufactures hair-oil brand Parachute, had spent Rs 3.46 billion towards advertising and sales promotion for the year ended 31 March 2011. In the previous fiscal, Marico had an ad spend of Rs 3.51 billion.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
