HUL changes strategy to 'Victory in New India' aiming for profit growth through sales volume

In August, there was some upturn in India's services sector, which includes industries such as hospitality, restaurants, banking, IT, transport, and telecommunications. The HSBC India Services PMI business activity index increased from 53.3 in July to 54.1 in August, indicating business growth for companies compared to the previous month. Nevertheless, the growth rate remains moderate, being the second lowest after March 2022.

The PMI indicator reflects companies' views on whether their turnover increased, decreased, or remained the same compared to the previous month; a figure above 50 indicates growth, and below 50 indicates a decline. In August, service companies received new orders and work from the public and businesses, which contributed to an increase in their turnover.

Despite business growth, some companies reported issues related to weakening bookings, increased market competition, and reduced activity in the transport sector, which prevented the growth rate from accelerating. The most positive news from this report was the development in employment: service companies continued to hire in August, and job creation rates reached the highest level in the last 15 months. This means that the demand for employees in companies such as hotels, banks, IT, transport, and other service enterprises has increased, leading to active recruitment.

On the other hand, company expenses also rose. More funds were allocated to electricity payments, personnel costs, digital platforms, marketing, and other operational needs. The rise in expenses was reflected in the prices companies set for customers, showing the fastest growth since March. However, inflationary pressure has not significantly intensified yet. Simply put, corporate business is growing, but they have to spend more money to maintain their operations.

Indian service companies also benefited from international orders. In August, new foreign orders remained stable, maintaining rates similar to those in July. Companies received business from countries such as Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka, and the UAE. Thus, Indian service companies receive support from both domestic demand and foreign clients.

Regarding next year, company confidence remained at about the same level as in July. Although they have hope for improved business and demand in the future due to the increase in new requests and technology adoption, their confidence is currently below the long-term average level.

In August, India's composite private sector business activity index, known as the composite PMI, stood at 54.3. This is the second weakest figure after February 2022. This suggests that the growth rate in the manufacturing sector, i.e., in companies engaged in goods production, was somewhat slowed down. However, the growth in the services sector compensated for this manufacturing weakness.

The Chairman of Grasim Industries, Kumar Mangalam Birla, stated that the company plans to achieve consolidated revenue of 2 trillion rupees in the fiscal year 2027. This figure is almost double the level from five years ago and is driven by a diversified portfolio that includes building materials, financial services, digital commerce, and renewable energy.

Grasim, the holding company of flagship enterprises of the Aditya Birla Group such as UltraTech Cement, Aditya Birla Capital, Birla Opus, Aditya Birla Renewables, and Birla Pivot, previously reported a record consolidated revenue of 1.75 trillion rupees for the fiscal year 2026. At the 79th Annual General Meeting on Friday, Birla noted that Grasim, which will celebrate its 80th anniversary on August 25, currently manages 10 business verticals and has a market capitalization exceeding 2 trillion rupees.

He emphasized that Grasim's revenue structure is becoming increasingly balanced: established businesses generate strong cash flows, while new growth engines are rapidly scaling up their capacities. Birla expressed confidence that in the fiscal year 2027, Grasim is poised to reach consolidated revenue of 2 trillion rupees, nearly doubling the level of five years ago, thereby demonstrating what reliable institutions can achieve with clarity, conviction, and focus.

In the fiscal year 2026, Grasim continued to strengthen its diversified positions. According to Birla, the company maintained momentum in core segments, advanced in new growth areas, and remained focused on prudent capital allocation, operational excellence, and creating long-term shareholder value.

Regarding the construction sector, he reported that UltraTech Cement reached an annual capacity of 200 million tonnes for grey cement production in April this year. Furthermore, the paint business, Birla Opus, became a significant player in the decorative paints segment two years after its launch. Birla Opus increased its revenue year-on-year and captured a 10% share of the decorative paints market in India on a standalone basis in the fiscal year 2026, becoming the second largest by capacity.

Along with the plastering business, Birla White, the group's share in the decorative paints market reached 'early teenage' levels. Birla also mentioned that the B2B e-commerce platform Birla Pivot surpassed its projected annual revenue of 8,500 crore rupees a year earlier, indicating the group's ability to create digital ventures parallel to manufacturing operations.

Birla noted that the cellulosic fiber business remains focused on innovation, sustainability, and global competitiveness, while the chemical business continues to serve critical industries and strengthen its position through integration, scale, and efficiency. The financial platform Aditya Birla Capital continues to expand access to financial solutions for millions of Indians.

He concluded that the common thread across all these verticals is that Grasim is helping shape the next chapter of India's growth. Concerning Aditya Birla Renewables, he stated that it is rapidly transforming into one of the Group's most promising growth platforms. He added that the platform, which was once 2 GW, has quickly transformed into a national renewable energy business with a clear visibility of around 10 GW and ambitions to scale to 20 GW and beyond in the coming years.

Birla stressed that Grasim's next phase of growth will be defined by capabilities and capital. The company is investing in digital tools, analytics, automation, and technology-driven decision-making across all its verticals. These capabilities enhance agility, productivity, customer service quality, and execution discipline.