Mumbai, Feb 24 (IANS): The country's largest consumer goods company, Hindustan Unilever Ltd (HUL), on Monday approved a proposal to form a new 100 per cent subsidiary, which will be incorporated with an authorised share capital of Rs 2,000 crore.

The company, in a regulatory filing, said that the new subsidiary has been formed to leverage the growth opportunities in a fast-changing business environment and will help HUL in becoming more agile and customer-focused.

"The Board of Directors of Hindustan Unilever Limited (HUL) today approved a proposal to form a new 100 per cent Subsidiary of Hindustan Unilever Limited. This company will be incorporated with an Authorised Share Capital of Rs 2,000 crore," the company said in they filing.

The FMCG major had reported a revenue of Rs 38,224 crore in 2018-19. It reported a 12 per cent year-on-year growth in the December quarter profit at Rs 1,616 crore.

"In the short term, demand outlook and market growth continues to be challenging... This quarter witnessed an overall challenging market environment mainly reflecting a sharp slowdown in rural and discretionary spending," CMD Sanjiv Mehta said on the company's performance in the last quarter.

HUL shares closed 1.42 per cent lower at Rs 2,216 a share on the BSE.