Unilever to increase stake in Indian unit by $5.4bn
In response to sluggish sales in Europe and the US, Unilever announced plans to increase the stake in its Indian subsidiary by $5.4 billion. The Anglo-Dutch consumer goods giant and manufacturer of Lipton tea is seeking greater control over local operations and would own 75% of Hindustan Unilever, compared to 52% now. The move comes as growth slowed markedly in North America and Europe, the latter having recorded the slowest quarterly growth in two years. Hindustan Unilever, which owns a third of India's consumer goods market, is expected to benefit from India's growing economy, company's expansion into rural areas and lower raw material prices. Its market share is projected to increase to 44 percent, or $14.2bn, by 2017. The acquisition is the company's biggest since its 2000 purchase of Best Foods for $23bn.