New Delhi: Global investors have reduced their holdings in Hindustan Unilever Ltd to a four-year low, reflecting concerns over the company's struggle with weak consumer demand and heightened competition. Foreign funds now own 12.7 percent of India’s largest staples company, down from 14.5 percent in June last year, according to reports in several media.

The firm’s shares have plunged by more than 9 percent over the past year, making it the second worst performer in the NSE Nifty 50 Index. Investors are selling off Hindustan Unilever and similar consumer-giant peers due to difficulties in justifying their expensive valuations amid slowing sales growth. The company is facing stiff competition from new-age brands, and lower agricultural yields have further impacted demand among its rural customer base.

Furthermore, Hindustan Unilever's struggle comes amidst a broader trend of investors reevaluating their exposure to Indian consumer goods companies. The sector, once considered a safe bet, is now facing scrutiny as investors reassess the challenges of sustaining growth in a rapidly evolving market landscape. Rising competition, changing consumer preferences, and economic uncertainties are reshaping the investment outlook for companies like Hindustan Unilever. 

As a result, the company finds itself at a critical juncture, needing to adapt its strategies to navigate these challenges and regain investor confidence in the long term.

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