Revolutionizing Soaps: How HUL changing the Structure of Soap making!
Day 6 of covering FMCG
Ritesh Tiwari , CFO of Hindustan Unilever in his latest conference highlighted to the analyst about the revolutionary change HUL is bringing in their Soap segment.
About 75-80% of the soap bar is made out of TFM(Total fatty Matter) which is insoluble and only adds to the structure of the soap. This portion of the soap is usually considered wasteful as it doesn’t add to the cleansing process, alternatively destroying the environment.
TFM stands for Total Fatty Matter . It is a key measurement of soap production that indicates the amount of fat based substances present in the soap. It is blend of Fats and oils.
To tackle this , HUL has bring a new technology called STRATOS and it has been patented by the R&D team of HUL. This technology removed the non functional part of the Soap (TFM) and replaces it with the proprietary mix of plant-derived polysaccharides, vitamin blends, and skin care actives. This change not only reduced the waste but also bring health benefits to the skin.
The new soap formulation has been clinically tested independently and over lab test too ,showing superior results across India. This new formulation will reduce the need of Palm oil as their raw material and it will reduce dependent upon forex commodity.
While it may not contribute significantly on the margins, it will certainly provide benefits during periods of high inflation and geopolitical tension.-as stated by Ritesh Tiwari.
Due to certain changes in soap segment, company has reported low single digit growth v/s high single digit decline in previous year same quarter.
