FMCG giant disputes tax authority’s FY21 assessment; says order won’t affect business or financial performance
Hindustan Unilever (HUL) on Friday said that it has received a tax demand order amounting to around USD 226 million (approximately Rs 1,885 crore) from India’s tax authorities for the financial year 2020–21.
The FMCG giant, which operates as the Indian subsidiary of UK-based Unilever Plc, said the order pertains to disputes over the valuation of certain related-party transactions and depreciation claims. However, it did not disclose further specifics of the tax authority’s assessment.
“There is no material impact on financials, no impact on operation or other activities of the Company due to the Order,” HUL stated in a regulatory filing with the BSE. The company added that it intends to challenge the order and “will file an appeal before the appellate authority within the permissible timeline.”
Also Read | HUL Profit Rises On One-Off Tax Gain, Volumes Flat
Last month, HUL had reported modest growth in profit and revenue for the September quarter, with flat underlying volume growth due to the transitory impact of GST changes and prolonged monsoon conditions in some parts of India.
In October, HUL reported a 3.8 per cent year-on-year rise in consolidated net profit to Rs 2,694 crore for the quarter ended September 30, 2025. Revenue grew 2.1 per cent to Rs 16,034 crore compared to Rs 15,703 crore in the same quarter last year.
HUL, known for household brands such as Dove, Surf Excel, and Lifebuoy, assured that the tax notice would not affect its overall financial position or day-to-day operations.
