Hindustan Unilever Ltd

In early 2008 an analyst at a prominent Investment Bank in India was analyzing the dividend policy of Hindustan Unilever Limited (HUL), a well-known multinational. The case's protagonist, an equity analyst, must figure out the implications of the firm's dividend policy on the investment and financing activities and the valuation of the firm. She also has to decide what investment recommendation she should give in the light of the analysis. The case describes the Indian FMCG industry as India enters the new millennium. The case details HUL's financial position in an era of increasing competition. Priya must decide whether the dividend policy of HUL is sustainable.