ITC vs Hindustan Unilever (HUL): Which Is Better?

Are you aware that leading FMCG Companies in India produce the products you use daily, such as body wash, toothpaste, and fruit juice? As an FMCG company, HUL and ITC are the names with which almost every household is familiar.

In this blog, we will compare Hindustan Unilever Ltd. (HUL) and India Tobacco Company Ltd. (ITC).

ITC Ltd. Overview

ITC Ltd. was established in 1910 and was then known as the Imperial Tobacco Company of India Limited. The business changed its name thrice: first as Indian Tobacco Company in 1970, then as I.T.C. Limited in 1974, and was finally renamed as ITC Limited in 2001. The company’s headquarters are in Kolkata.

Over the last 10 years, the firm has developed a wide range of over twenty-five premium Indian brands. Their “Nation First: Sab Saath Badhein” ideology aims to create a prosperous and globally competitive enterprise. ITC Limited has been using renewable sources of energy to meet nearly 50% of its energy needs. The company began operating in the hospitality industry in 1975, opening its first hotel in Chennai. In 2001, the company entered the branded packaged foods industry, selling items such as biscuits, noodles, and confectionery. Today, the company has been active in six different sectors, including FMCG, hotels, Agri Business, paperboards & specialty papers, information technology, and packaging.

Read Also: ITC Case Study

HUL Overview

The history of Hindustan Unilever dates back to 1888 when the individuals at the Kolkata harbor noticed crates of Sunlight soap bars. Sunlight soap was the first product that the Lever brothers, founded by William Hesketh Lever and James Darcy Lever, introduced in the Indian market. However, the soap had the label “Made in England by Lever Brothers” on it. In 1895, Lifebuoy and other famous brands like Pears, Lux, and Vim were launched soon after.

Hindustan Vanaspati Manufacturing Company, Unilever’s Indian subsidiary, was established in 1931. Soon, the  Lever Brothers India Limited and United Traders Limited were established in 1933 and 1935, respectively. These businesses came together to form Hindustan Lever Ltd. in 1956. The company renamed itself Hindustan Unilever Limited later in 2007. The company’s headquarters is in Mumbai. In June 2023, Rohit Jawa replaced Sanjiv Mehta as CEO of Hindustan Unilever Limited.

In 2020, the firm bought GlaxoSmithKline Consumer Healthcare Limited, which helped them increase their market share and diversify their product line to include brands like Boost and Horlicks. HUL’s diverse product line includes personal care, beverages, packaged foods, water purifiers, and others. 

Read Also: Hindustan Unilever Case Study

Company’s Comparative Study

Particular	ITC Ltd.	HUL
Current Share Price	INR 399	INR 2,495
Market Capitalization (In INR Crores)	4,99,832	5,86,247
52-Week High Price	INR 499	INR 2,805
52-Week Low Price	INR 390	INR 2,136
FIIs Holdings (%)	37.97	10.18
DIIs Holdings (%)	46.93	16.07
Book Value Per Share	INR 60.08	INR 210.26
PE Ratio (x)	14.74	69.84

Financial Statements Comparison

Income Statement Comparison (FY 2025)

Particular	ITC Ltd.	HUL
Sales	75,323	63,121
Total Income	77,853	64,138
Total Expenditure	50,991	49,320
Net Profit	19,926	10,679

Balance Sheet Comparison (FY 2025)

Particular	ITC Ltd.	HUL
Non-Current Liabilities	2,987	13,488
Current Liabilities	13,690	16,537
Non-Current Assets	44,253	57,414
Current Assets	41,065	22,051
Shareholder Funds	57,950	49,402

Cash Flow Statement Comparison (FY 2025)

Particular	ITC Ltd.	HUL
Cash Flow From Operating Activities	17,627	11,886
Cash Flow From Investing Activities	-395	6,473
Cash Flow From Financing Activities	-17,037	-13,101

Key Performance Indicators

Particular	ITC Ltd.	HUL
Net Profit Margin (%)	46.38	16.91
ROE (%)	49.61	21.55
ROCE (%)	36.41	22.91
Current Ratio	3.06	1.33
Debt to Equity Ratio	0	0

Conclusion

To sum up, ITC and HUL are well-known FMCG companies with a diverse range of products. To expand their market share, both companies have bought several local competitors. The demand and earnings for fast-moving consumer goods (FMCG) remain stable and will rise in tandem with population growth and an increase in disposable income. Before making any investing decisions, it is advised to consult a financial advisor.  

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